Stock Market Update

[BRIEFING.COM] The stock market has seen some choppy action this morning, ceding solid early gains and then recapturing a portion of them. The S&P 500 (flat), Nasdaq Composite (-0.3%), and DJIA (-0.3%) now sit modestly lower shortly before midday. 

Equity futures surged higher following a stronger-than-expected January Employment Situation Report, which saw 130K payrolls added (Briefing.com consensus 68K). While the market opened higher as the report is favorable to the U.S. growth outlook, it likely further delays the next rate cut from the Fed, which has caused some choppiness in stocks and sent treasury yields higher. 

Despite the major averages sitting flattish, strength remains relatively broad, with eight S&P 500 sectors trading higher. 

The consumer staples sector (+1.2%) holds one of the widest gains as it rebounds from modest losses that followed a flat December retail sales report yesterday. Several cyclical sectors also trade with nice gains. 

Meanwhile, the information technology sector (+0.4%) has had a roller coaster of a session, opening nicely higher before a sharp retreat, which it has since recovered from. Software names are under pressure after stabilizing yesterday, while memory storage stocks outperform. 

Elsewhere, the communication services (-1.2%) and consumer discretionary (-0.7%) sectors face pressure in their mega-cap components, while the financials sector (-1.1%) faces broad weakness. 

Outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-0.3%) also ceded solid early gains.