Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.4%), and DJIA (+0.4%) are mostly higher just after midday as broadening participation across the market and strength in several mega-cap technology names offset a bout of profit-taking in semiconductor stocks. Compared to the relatively quiet news flow that characterized much of this week, today's session has featured a busier slate of corporate developments and earnings reports.

While chipmakers are taking a breather after leading the market higher over the past two sessions, weakness has remained largely contained. The PHLX Semiconductor Index is down 5.4%, with weakness across large chipmakers, memory names, and AI infrastructure stocks suggesting today's pullback is more mechanical in nature than driven by an industry-specific event. Corning (GLW 220.25, -35.18, -13.77%) and KLA Corporation (KLAC 270.16, -31.55, -10.46%) are the worst performing S&P 500 names.

Even so, the broader information technology sector (-1.4%) has recovered from a steeper opening decline. The resilience stems from strength elsewhere within the technology complex. Software stocks continue to outperform, lifting the iShares Expanded Tech-Software ETF (IGV) 3.9% higher. Palantir Technologies (PLTR 126.79, +10.12, +8.67%) is among the group's standout performers after President Trump's latest financial disclosure showed he purchased between $100,000 and $250,000 worth of the company's shares.

Apple (AAPL 294.20, +4.84, +1.67%) and Microsoft (MSFT 386.45, +13.43, +3.60%) are also posting solid gains, while Meta Platforms (META 616.79, +53.50, +9.50%) has surged after Bloomberg reported the company plans to build a cloud business that would sell access to AI computing infrastructure. Together, those gains have helped keep the Vanguard Mega Cap Growth ETF (+0.2%) in positive territory despite the retreat in semiconductor stocks.

The communication services sector (+3.2%) holds the widest gain thanks to Meta, while the consumer discretionary sector (+1.5%) is another leader. Amazon (AMZN 242.39, +4.05, +1.70%) and Tesla (TSLA 426.96, +6.37, +1.51%) are providing solid support, and NIKE (NKE 42.44, +1.39, +3.39%) is higher after reporting better-than-feared quarterly results. Although management offered cautious near-term guidance, investors appear encouraged by improving wholesale trends and early signs of stabilization in Greater China.

The financials sector(+2.7%) is also outperforming in broad fashion. FactSet (FDS 248.70, +18.62, +8.09%) is one of the S&P 500's top performers after topping earnings expectations, while Coinbase Global (COIN 163.14, +16.95, +11.59%) and Robinhood Markets (HOOD 107.83, +7.55, +7.53%) benefit from a rebound in Bitcoin prices.

Elsewhere, the tone is more mixed. The defensive consumer staples sector (-0.5%) is lower, though General Mills (GIS 37.56, +2.76, +7.95%) holds a solid gain after the company topped quarterly earnings expectations, returned to year-over-year revenue growth, and issued fiscal 2027 earnings guidance that was broadly in line with expectations.

Walmart (WMT 108.07, -5.19, -4.58%), however, is under pressure after CNBC's David Faber reported that Cleveland Research issued a negative report citing slowing comparable sales and warning the retailer may need to lower prices to clear excess inventory. Constellation Brands (STZ 134.88, -4.21, -3.03%) is also lower despite beating earnings expectations and reaffirming its fiscal 2027 earnings and organic sales outlook.

The utilities sector (-1.1%) continues to lag.

Outside the S&P 500, the Russell 2000 (+0.5%) has climbed to another all-time high, while the S&P Mid Cap 400 (-0.1%) trades modestly lower.

On the policy front, Fed Chair Kevin Warsh reiterated his commitment to price stability during the ECB Forum while also emphasizing his desire to continue shrinking the Federal Reserve's balance sheet.

So far, today's action suggests investors remain willing to rotate within technology rather than away from it altogether. Semiconductor stocks are pausing after a powerful two-day advance, but continued strength across software, mega-cap growth stocks, financials, and consumer-oriented names has kept the broader market on solid footing.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.0%; Prior 1.0%
• June ADP Employment Change 98K (Briefing.com consensus 112K); Prior 122K
• June S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 55.7
• May Construction Spending 0.1% (Briefing.com consensus 0.5%); Prior was revised to 0.3% from 0.4%
  • The key takeaway from the report is that public construction spending was the driver of the modest growth in total construction spending in June. Private construction spending activity was disappointing.
• June ISM Manufacturing Index 53.3% (Briefing.com consensus 53.8%); Prior 54.0%
  • The key takeaway from the report is that there was a general slowdown indicated versus May across most components of the report, yet the slowdown that will matter most is the one seen in the prices index, which is still quite high but nonetheless moving in the preferred direction.