Stock Market Update

[BRIEFING.COM] Stocks are mostly lower at midday, with the S&P 500 (-0.7%) and Nasdaq Composite (-1.3%) pulling back from record highs while resilience in the broader market helps the DJIA (flat) avoid a loss. The major averages are trading in a relatively rangebound fashion after early declines, reflecting pressure from tech weakness, rising oil prices, and earnings-driven volatility.

Semiconductor stocks remain a key source of weakness, extending losses after the PHLX Semiconductor Index snapped its 18-session win streak yesterday. The index is down 4.5% today, with added pressure from a Wall Street Journal report indicating that OpenAI missed internal revenue and user targets, raising concerns about its ability to fund future computing needs. NVIDIA (NVDA 210.33, -6.28, -2.90%) is a mega-cap laggard after outperforming yesterday, while Corning (GLW 155.19, -12.82, -7.63%) faces some profit taking after its earnings release this morning.

While semiconductors were also weaker in yesterday's session, the market benefited from strength across its largest components. That momentum has also stalled today, with the Vanguard Mega Cap Growth ETF down 1.3%, perhaps reflecting some caution as investors prepare to receive earnings from five "magnificent seven" companies this week.

Today's earnings slate was a mixed bag, with several sectors' best and worst performing components moving in reaction to earnings. Coca-Cola (KO 79.74, +4.30, +5.71%) is a notable standout, contributing to strength in the defensive consumer staples sector (+1.4%), while Pentair (PNR 83.57, -8.70, -9.43%) is the worst-performing S&P 500 component, weighing on the industrials sector (-1.3%).

Meanwhile, the energy sector (+1.9%) holds the widest gain as the price of oil increases 3.00 (+3.1%) to $99.37 per barrel.

Other notable earnings moves outside of the S&P 500 include Spotify (SPOT 427.36, -68.46, -13.81%) and BP (BP 46.50, +0.53, +1.15%).

Additionally, the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.1%) move lower amid the market's risk-off tone today.

So far, today's session reflects a cooling of recent momentum, as investors rotate defensively and position for a key week of earnings.

 Reviewing today's data:

• February FHFA Housing Price Index 0.0% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%
• February S&P Case-Shiller Home Price Index 0.9% (Briefing.com consensus 1.2%); Prior 1.2%
• April Consumer Confidence 92.8 (Briefing.com consensus 89.2); Prior was revised to 92.2 from 91.8
  • The key takeaway from the report is that consumer attitudes were helped in April by perceptions of the labor market and income expectations.