Stock Market Update

[BRIEFING.COM] Increasing pressure in the information technology sector (-0.5%) now seats the Nasdaq Composite on its flatline while the S&P 500 (+0.1%) and DJIA (+0.1%) trade slightly higher.

The sector faces pressure across a majority of its components, with weakness among chipmaker names pushing the PHLX Semiconductor Index down 0.5%. Texas Instruments (TXN 184.00, -11.74, -6.00%) is a notable laggard in the semiconductor realm.

The sector's top laggard, however, is Salesforce (CRM 236.38, -20.07, -7.83%). Despite beating EPS expectations with in-line revenues, the stock suffers from flat Q3 guidance.

The ISM Services PMI increased to 52.0% in August (Briefing.com consensus 50.5%) from 50.1% in July. The dividing line between expansion and contraction is 50.0%, so the August reading reflects services sector activity expanding at a faster pace versus the prior month.

The key takeaway from the report is that it is a mixed bag for policymakers, featuring faster growth overall but an ongoing contraction in employment and a continuation of price pressures for services organizations.