Stock Market Update

[BRIEFING.COM] There is a feeling in the stock market today that there is Microsoft (MSFT 444.47, +53.93, +13.81%) and the semiconductor stocks, and then there is everything else. That is an oversimplification, but it isn't too far afield.

There is a lot of red on stock monitors. Nine of the 11 S&P 500 sectors are lower, but if it wasn't for the gains in Amazon (AMZN 236.62, +9.97, +4.40%) and Tesla (TSLA 304.48, +6.15, +2.06%), we'd be talking about 10 S&P 500 sectors trading lower.

By and large, it is the mega-cap stocks and the growth factor that are carrying the indices today, which is a reversal of recent patterns that have favored value and low-volatility stocks. Illustrating that point is the fact that, while the Vanguard Mega Cap Growth Index Fund (MGK 84.66, +1.56, +1.87%) is up 1.9% today, it is down 0.1% for the week.

Apple (AAPL 331.23, -6.96, -2.06%) will be carrying the weight of the mega-cap cohort on its back when it reports after today's close, along with Amazon, which will also be shouldering some of the burden.

Separately, the S&P 500 is up 0.7% today but has faded from its earlier high (7,417), unable to retain a posture above the 7,400 level. From yesterday's cash settlement, the 10-yr note yield is up five basis points to 4.67%, but it is down four basis points from the overnight high of 4.71%. The fade from the overnight high has helped underpin today's gains in the stock market.