Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.8%) sit mostly lower shortly after midday as solid strength in the market's largest names is becoming increasingly overshadowed by some softness in the broader market. Stocks largely advanced steadily throughout the session but are now retreating from session highs. 

Seven S&P 500 sectors trade higher, though the energy sector (+1.0%) is the only sector to hold a gain wider than 0.5%. A $1.65 (+2.8%) increase in the price of oil to $61.01 per barrel supports the sector, though it has actually shed a large chunk of its previous gain. 

Meanwhile, the information technology (+0.6%) and consumer discretionary (+0.6%) sectors also hold solid gains, largely due to a strong day for mega-cap stocks. Microsoft (MSFT 468.17, +17.03, +3.77%), NVIDIA (NVDA 187.56, +2.72, +1.47%), and Amazon (AMZN 239.36, +5.02, +2.14%) are among the mega-caps with firm gains, sending the Vanguard Mega Cap Growth ETF 0.6% higher, though it too is off of its best levels.

Strength across mega-caps has been particularly important for growth in the technology sector today, as the sector faces pressure across many of its chipmaking components. Intel (INTC 45.06, -9.26, -17.04%) is a catalyst of the weakness, selling off after issuing disappointing Q1 guidance yesterday after the close. The PHLX Semiconductor Index is down 1.7%. 

Earnings weakness also weighs on the financials sector (-1.5%), which is the worst-performing S&P 500 sector today.  Capital One (COF 218.12, -16.95, -7.21%) is pulling back after the company missed EPS expectations and announced its acquisition of Brex Inc. 

Elsewhere, the health care (-1.0%), industrials (-1.0%), and utilities (-0.8%) sectors are also widening their losses as the market now faces some selling pressure in the early afternoon. 

Outside of the S&P 500, the Russell 2000 (-1.6%) and S&P Mid Cap 400 (-1.2%) are giving back previous strong gains that saw them outperform the major averages. 

Though today's session started with a surprising resilience in mega-cap stocks that have struggled this year, the broader market is now trending lower from session-best levels. Currently, the major averages, along with the Russell 2000 and S&P Mid Cap 400, now all sit in modestly negative week-to-date territory. 

Reviewing today's data

• January S&P Global U.S. Manufacturing PMI - Prelim 51.9; Prior 51.8
• January S&P Global U.S. Services PMI - Prelim 52.5; Prior 52.5
• January Univ. of Michigan Consumer Sentiment - Final 56.4 (Briefing.com consensus 54); Prior 54
  • The key takeaway from the report is that consumer sentiment, while improved a bit, is still guarded due to lingering concerns about high prices and softening labor markets.
• Leading Economic Index -0.3%; Prior -0.1%