Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.4%) are mixed near their flat lines just after the open.

Weakness is relatively broad-based as oil prices and Treasury yields creep higher after moving lower yesterday. The 10-year note yield is up five basis points to 5.00%, which weighs on the utilities sector (-1.2%). The materials sector (-1.2%) holds a similar loss, with steel names sharply lower after several companies issued disappointing guidance.

Meanwhile, lingering strength in mega-cap and tech names keeps the Nasdaq in positive territory. Semiconductor stocks are extending yesterday's rally, with the PHLX Semiconductor Index up 1.2%. That keeps the information technology sector (+0.1%) above its baseline despite weakness elsewhere.

The communication services sector (+0.5%) is the only other S&P 500 sector in positive territory, supported by a solid early gain in Alphabet (GOOG 351.29, +7.61, +2.21%).

Just released, the leading economic index decreased 0.1% in August (Briefing.com consensus 0.2%) from a prior increase of 0.2%. 

Industrial production was unchanged month-over-month in August (Briefing.com consensus: 0.3%) following an unrevised 0.2% increase in July. The capacity utilization rate was 76.3% (Briefing.com consensus: 76.4%) and unchanged from July. Total industrial production was up 1.4% year-over-year. The capacity utilization rate was 3.1 percentage points below its long-run average.

The key takeaway from the report is that the softness stemmed from a decline in manufacturing output, yet that downturn could have been a simple case of attrition following increases in manufacturing output for seven consecutive months.