Stock Market Update

[BRIEFING.COM] The major averages remain little changed from previous levels as pronounced weakness in tech weighs against some solid rotational gains throughout the broader market. 

Meanwhile, U.S. Treasuries have dipped from their morning highs, though they continue holding solid gains with the 10-year yield back near its 50-day moving average (5.008%), which has been an area of congestion over the past week. Treasuries climbed after today's economic data included the advance Q3 GDP that showed a dip in the Core PCE Price Index to 2.5% from 3.3% in Q2. The gains were extended in immediate reaction to the European Central Bank's latest policy statement, which acknowledged that financing conditions have tightened since the last meeting. The central bank acknowledged that this is likely to weigh on inflation and growth, which in turn got the market thinking that the ECB's tightening cycle could be closer to an end than previously thought. That said, the post-ECB gains in Treasuries were short-lived as the market returned to levels seen after today's batch of U.S. data. The past few minutes have seen some light pressure in longer tenors after the U.S. Treasury completed this week's note auction slate with a decent sale of 7-year notes. The auction drew a high yield of 4.894%, which was right on the screws, but the offering looked a little worse when compared to the prior 12-auction averages, as the bid-to-cover ratio (2.46x vs 2.48x average) and indirect takedown (57.8% vs 63.0% average) came in a bit light.

The 2-year note yield is down seven basis points to 4.67%, and the 10-year note yield is down four basis points to 5.00%.