Stock Market Update

[BRIEFING.COM] The major averages are trading sharply lower this morning, with selling pressure intensifying across technology stocks following another round of disappointing earnings reactions. The S&P 500 (-1.2%) and Nasdaq Composite (-2.2%) are facing sizable losses, while the DJIA (-0.4%) is holding up somewhat better. The retreat has pushed the major averages mostly into negative territory for the week, with the S&P 500 struggling to hold its week-to-date flat line.

The information technology sector (-3.4%) is bearing the brunt of the selling, with Intel (INTC 65.18, -26.89, -29.21%) plunging following its disappointing guidance. Semiconductor stocks are facing particularly pronounced pressure, sending the PHLX Semiconductor Index down 5.7%, while NVIDIA (NVDA 207.76, -5.90, -2.76%) is another notable mega-cap laggard. Software stocks are also extending their recent weakness.

The selling extends beyond the information technology sector, with Amazon (AMZN 237.75, -6.04, -2.48%) retreating following its earnings report and weighing on the consumer discretionary sector (-1.3%). Alphabet (GOOG 279.60, -2.72, -0.96%) continues to slide following yesterday's disappointing earnings reaction, while Reddit (RDDT 98.81, -30.79, -23.76%) is another notable post-earnings laggard, weighing on the communication services sector (-0.5%).

The Vanguard Mega Cap Growth ETF (-2.5%) highlights the continued pressure on the market's largest growth stocks.

Unlike yesterday's session, when strength was widespread outside mega-cap technology, today's gains are considerably more concentrated. Five S&P 500 sectors are trading higher, led by the energy sector (+2.1%) as crude oil climbs back above $104 per barrel. Defensive areas are also attracting interest, with the consumer staples (+1.8%), health care (+1.7%), and utilities (+0.8%) sectors posting solid gains amid the technology selloff and some encouraging earnings reactions of their own. The real estate sector (+0.5%) is also modestly higher as safe-haven buying in Treasuries pushes yields lower, providing support for interest-rate-sensitive stocks.

On the data front,tThe October Chicago PMI came in at 55.3 (Briefing.com consensus 55.9), down from 58.8 in September.