Stock Market Update

[BRIEFING.COM] The S&P 500 (+1.7%), DJIA (+1.9%), and Nasdaq Composite (+2.3%) are charting session highs just after midday, with the S&P 500 and DJIA also notching fresh all-time highs. The advance is fueled by a sharp rebound in semiconductor stocks, strong post-earnings gains across several influential names, and another sizable decline in oil prices.

After a particularly rough month of July, semiconductor stocks are off to a more jubilant start to August, with the PHLX Semiconductor Index up 6.5% today. The move comes after a more volatile session for the group yesterday that saw an early loss steadily turn into a modest gain. Coherent (COHR 335.36, +47.22, +16.39%) and Marvell (MRVL 221.29, +27.52, +14.20%) lead the advance, while Sandisk (SNDK 1440.93, +152.90, +11.87%) and Advanced Micro Devices (AMD 524.29, +39.65, +8.18%) also post solid gains ahead of their respective earnings releases later this week.

Unsurprisingly, the information technology sector (+4.0%) is a standout, with software names also contributing to the advance. Palantir Technologies (PLTR 162.69, +37.04, +29.48%) leads all S&P 500 components after a blowout earnings report, and the iShares Expanded Tech-Software Sector ETF (IGV) is up 4.3%.

Outside of technology, gains are more modest, though market breadth has strengthened steadily throughout the session. Advancers outpace decliners by roughly a 2-to-1 ratio on the NYSE and a nearly 3-to-1 margin on the Nasdaq.

Of the five S&P 500 sectors trading higher, several cyclical groups are among the market's leaders. The materials sector (+1.9%) is supported by gains in names such as Freeport-McMoRan (FCX 67.31, +3.66, +5.76%) as precious metals prices rise, while the industrials sector (+1.6%) benefits from a rebound in electrical equipment stocks and a strong post-earnings gain in Caterpillar (CAT 885.23, +55.20, +6.65%) after the company delivered a beat-and-raise quarter.

The financials sector (+1.0%) also moves higher, with major banking names such as Goldman Sachs (GS 1062.49, +35.43, +3.45%) and JPMorgan Chase (JPM 360.90, +8.26, +2.34%) contributing to the DJIA's record push today.

Elsewhere, losses across the remaining six S&P 500 sectors have narrowed throughout the session. The defensive utilities (-0.5%) and consumer staples (-0.2%) sectors continue to lag as investors favor higher-growth areas of the market, while the energy sector (-0.3%) retreats again as crude oil continues to move lower. WTI crude oil is currently down $4.21 (-5.2%) to $76.12 per barrel after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz. 

Additionally, the consumer discretionary sector (-0.5%) lags as Amazon (AMZN 278.75, -5.27, -1.86%) gives back some of yesterday's strong advance.

Today's rally reinforces the market's improving tone following last week's earnings-driven rebound, with semiconductor stocks attempting to reclaim leadership after a difficult July. Investors will continue to monitor another busy slate of technology earnings this week, though today's combination of stronger chip stocks, encouraging corporate results, and easing geopolitical tensions is providing a supportive backdrop for the major averages.

Reviewing today's data:

• June Trade Balance -$73.3 bln (Briefing.com consensus -$73.0 bln); Prior -$77.6 bln
  • The key takeaway from the report is that, while the real goods deficit narrowed to $94.5 billion in June from $99.8 billion in May, the Q2 average is still 18% greater than the Q1 average, so it will be factored in as a drag on Q2 GDP.
• June Factory Orders -0.3% (Briefing.com consensus 0.2%); Prior was revised to -1.1% from -1.3%
  • The key takeaway from the report is rooted in the strong business investment activity, which shows up in the 1.2% increase in new orders for capital goods, excluding aircraft, that followed a 1.9% increase in May.
• June JOLTs - Job Openings 7.359 mln; Prior was revised to 7.537 mln from 7.594 mln