Stock Market Update

[BRIEFING.COM] It has been a relatively quiet Tuesday for the stock market so far, with the S&P 500 (+0.3%), Nasdaq Composite (+0.6%), and DJIA (+0.1%) holding modest gains just after midday. The market is relatively devoid of new catalysts today, which has kept the major averages in a stable range ahead of tomorrow's action, which will feature the July Personal Income and Spending report as well as NVIDIA's (NVDA 212.44, +3.96, +1.90%) earnings after the close.

NVIDIA, which is looking to snap a seven-session skid, trades higher today as semiconductor stocks finally garner some support after pronounced weakness in recent sessions. The PHLX Semiconductor Index is up 1.4%, keeping the information technology sector (+0.9%) at the top of the S&P 500 sector standings.

Mega-cap performance outside the semiconductor space is mixed, though strength among large chipmakers has lifted the Vanguard Mega Cap Growth ETF 0.6%.

Gains are more limited across the rest of the market, leaving the S&P 500 Equal Weighted Index (-0.1%) modestly lower as investors rotate out of some of the areas that have recently outperformed. The health care sector (+0.5%) is another bright spot, with Moderna (MRNA 157.40, +18.50, +13.32%) leading all S&P 500 names as last week's triple-digit surge that followed headlines of a melanoma vaccine breakthrough continues to generate sharp swings in the stock.

Meanwhile, the consumer staples sector (-0.9%) holds the widest loss after finishing as one of the market's leaders yesterday.

The energy sector (-0.9%) is down similarly as crude oil continues to retreat, currently down $2.77 (-3.3%) to $82.23 per barrel amid a quiet day of geopolitical headlines. Treasury yields are lower across the curve as a result.

There is also some notable weakness across athletic apparel names following Dick's Sporting Good's (DKS 127.53, -51.80, -28.89%) earnings report, which featured particularly disappointing results from Foot Locker. NIKE (NKE 39.80, -0.95, -2.33%) is the worst-performing DJIA component, while Deckers Outdoor (DECK 89.12, -2.96, -3.22%) and lululemon athletica (LULU 117.68, -5.10, -4.15%) are among the S&P 500's laggards as the report weighs on sentiment across the group.

Overall, Tuesday's subdued action has featured some rotation back into semiconductor stocks following their recent selloff, but relatively little conviction elsewhere in the market. With few fresh catalysts driving today's trade, attention is increasingly shifting toward Wednesday's PCE inflation data and NVIDIA's earnings for potential direction.

Reviewing today's data:

• June FHFA Housing Price Index 0.0%; Prior 0.3%
• July S&P Case-Shiller Home Price Index 2.1% (Briefing.com consensus 1.8%); Prior 1.6%
• August Consumer Confidence 89.4 (Briefing.com consensus 90.6); Prior was revised to 90.2 from 90.8
  • The key takeaway from the report is that the overall decrease in sentiment was owed to another worsening in the Expectations Index, which was somewhat offset by a rebound in the Present Situation Index after three months of deterioration.
• July New Home Sales 607K (Briefing.com consensus 620K); Prior was revised to 678K from 628K
  • The key takeaway from the report is that changes in monthly sales varied greatly by region, but the overall pace of sales slowed. This increased the month's supply of new homes for sale, which could result in some pressure on prices.