Stock Market Update

[BRIEFING.COM] Stocks have faced choppy action so far as a rebound in oil prices has put broad pressure on the market. Some lingering strength across tech names helps the Nasdaq Composite (+0.1%) outperform the S&P 500 (-0.1%) and the DJIA (-0.6%). The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.5%) are underperforming. 

Stocks opened little changed following the release of the February CPI report (0.3%; Briefing.com consensus: 0.3%), which came in line with expectations, though the February reading does not yet reflect the recent surge in oil prices. 

Hostilities in the Strait of Hormuz continue to drive headlines, with CNBC reporting that three cargo ships have been struck by projectiles, with the U.S. sinking several Iranian minelaying vessels as well.

Oil fell toward its overnight low (81.79) after the IEA confirmed that its 32 member states will release 400 million barrels from their strategic reserves, but that drop has been reversed entirely, with the price holding steady after the latest weekly inventory report from the EIA showed a 3.82 million barrel build against expectations for a smaller increase. Currently, crude oil is up $3.96 (+4.8%) to $87.41 per barrel. 

The energy sector (+1.9%) holds the widest gain by a considerable margin, moving into positive week-to-date territory. 

The information technology sector (+0.2%) trades modestly higher, though it too has spent time in negative territory amid today's choppiness. 

Oracle (ORCL 163.59, +14.19, +9.50%) is the best-performing S&P 500 stock after an impressive beat-and-raise earnings report. However, other software names are among today's laggards, with the iShares GS Software ETF (-0.4%) trading modestly lower. 

On a related note, Financial Times reported that JPMorgan Chase (JPM 287.12, -1.60, -0.56%) is marking down loans held by private credit firms, targeting software company loans in particular amid renewed fears of AI disruption.

Asset managers such as Ares Management (ARES 104.71, -3.97, -3.65%) and Apollo Global Management (APO 104.96, -3.22, -2.97%) are among the worst performers in the financials sector (-1.0%). 

Elsewhere, the consumer staples sector (-1.1%) holds a similar loss, with particular weakness across food names after Campbell Soup (CPB 23.26, -1.42, -5.77%) missed earnings expectations. 

In total, eight S&P 500 sectors trade lower at this juncture, though the losses are relatively modest in nature. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 3.2%; Prior 11.0%
• February CPI 0.3% (Briefing.com consensus 0.3%); Prior 0.2%, February Core CPI 0.2% (Briefing.com consensus 0.2%); Prior 0.3%
  
  • The key takeaway from the report is that it matched expectations at the headline and core levels, which is mildly positive since the recent surge in energy prices will increase the market's expectations for a hotter reading in March.