Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.2%), and DJIA (+1.3%) are at session highs just after midday as strong post-earnings moves from a host of blue-chip stocks and another retreat in oil prices help offset continued weakness across semiconductor stocks.

Eight S&P 500 sectors trade higher, with the latest batch of earnings reports contributing to today's biggest gains. The consumer staples sector (+2.5%) leads the advance as investors rotate into more defensive holdings amid the weakness in technology, while Coca-Cola (KO 87.92, +3.86, +4.59%) is a standout after topping earnings expectations. The health care (+2.2%) and materials (+2.1%) sectors hold similar gains, boosted by strong advances in IQVIA (IQV 242.12, +28.90, +13.55%) and Sherwin-Williams (SHW 353.89, +26.62, +8.13%) following their respective earnings releases.

Earnings-driven strength across several blue-chip names, combined with solid participation beneath the surface, has contributed to the DJIA's outperformance today.

Unsurprisingly, the S&P 500 Equal Weight Index (+1.1%) outperforms the market-weighted S&P 500 (+0.3%), although mega-cap stocks outside of the semiconductor space have also moved to their best levels of the session. Alphabet (GOOG 333.84, +7.27, +2.23%), in particular, trades firmly higher, extending yesterday's rebound from last week's post-earnings lows. Apple (AAPL 339.79, +2.88, +0.85%) is trading at another all-time high for the second consecutive session, while Microsoft (MSFT 398.84, +9.74, +2.50%) is also helping soften losses in the information technology sector (-0.6%).

Despite improving from its session lows, the sector remains firmly lower as the PHLX Semiconductor Index (-3.6%) extends its month-to-date decline to nearly 22%. Memory stocks are again among the weakest performers following a soft showing in Korean markets overnight ahead of SK hynix Inc.'s (SKHY 133.32, -9.70, -6.78%) earnings release.

Corning (GLW 121.00, -22.36, -15.60%) is the worst-performing S&P 500 component after topping earnings expectations but issuing an essentially in-line third-quarter outlook.

Elsewhere, the energy sector (-1.3%) has slipped to the bottom of the leaderboard as crude oil accelerated lower just before midday. WTI crude is down $4.12 (-5.0%) to $78.49 per barrel amid reports that Iran's Islamic Revolutionary Guard Corps wants Saudi Arabia to remove the blockade on Yemen.

Investors now turn their attention to another busy stretch of earnings reports this afternoon, with today's session once again highlighting the market's willingness to look beyond semiconductor weakness when earnings results and broader participation remain supportive.

Reviewing today's data:

• June Adv. Intl. Trade in Goods -$101.5 bln; Prior was revised to -$105.9 bln from -$105.8 bln
• June Adv. Retail Inventories 0.0%; Prior was revised to 0.5% from 0.6%
• June Adv. Wholesale Inventories 0.3%; Prior 0.3%
• May FHFA Housing Price Index 0.3% (Briefing.com consensus 0.0%); Prior -0.1%
• May S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.3%); Prior was revised to 1.2% from 1.1%
• July Consumer Confidence 90.8 (Briefing.com consensus 92.1); Prior was revised to 92.2 from 91.2
  • The key takeaway from the report is that consumers don't appear to be overly enthused about current business conditions or future business conditions.