After Hours Report

The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.6%) have moved progressively higher throughout the session as the stock market sees widening participation in a rebound from yesterday's retreat. 

All eleven S&P 500 sectors hold gains, with the mega-cap-heavy communication services (+1.5%), consumer discretionary (+0.9%), and information technology (+0.7%) sectors among the stronger performers. The Vanguard Mega-Cap Growth ETF is up 0.7%, with strength in Alphabet (GOOG 283.60, +5.54, +1.99%) and Meta Platforms (META 638.76, +11.44, +1.82%) contributing to the communication services sector's outperformance. 

NVIDIA (NVDA 201.36, +2.68, +1.35%) adds to the positive sentiment, helping the PHLX Semiconductor Index (+3.2%) recover the bulk of its 4.0% slide yesterday.

Advanced Micro Devices (AMD 255.86, +5.81, +2.32%) is charting session highs after reporting record revenue, beating expectations on both the top and bottom lines, and guiding Q4 above expectations. While that seems like an appropriate response to a strong earnings report, the price action of the stock was viewed by investors as an important test of market sentiment in the context of yesterday's action, which saw Palantir Technologies (PLTR 185.65, -5.09, -2.67%) slip despite a stellar earnings report. Shares of AMD moved lower after hours following the company's earnings release but have since reversed course to a solid gain.

Importantly, tech names are not the sole driver of today's index-level gains, as a stretch of particularly weak breadth contributed to yesterday's sell-off amid concerns of stretched valuations. Defensive sectors lagged early in the session but have since improved to hold solid gains as well. 

Advancers outpace decliners by a roughly 2-to-1 ratio on both the NYSE and the Nasdaq. 

The small-cap Russell 2000 (+1.7%) and S&P Mid Cap 400 (+1.2%) outperform as the market displays a less defensive posture today. 

Additionally, the VIX Volatility Index is down 1.69 points to 17.31 (-8.8%), suggesting investors are expecting fewer near-term swings in the S&P 500 as sentiment improves. 

On the earnings front, McDonald's (MCD 305.71, +6.50, +2.17%) moves higher despite an EPS miss, Humana (HUM 259.33, -22.54, -8.00%) moves lower due to lowered GAAP EPS guidance and concerns about future Medicare Advantage (MA) plan ratings, and CAVA Group (CAVA 52.01, +0.31, +0.60%) bounced off of session lows after reporting an EPS miss. 

The market also received several economic data releases this morning, which reflected a resilient U.S. economy, pressuring treasury yields higher in response. The 10-year note yield is up six basis points to 4.15%. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -1.9%; Prior 7.1%
• October ADP Employment Change 42K (Briefing.com consensus 26K); Prior was revised to -29K from -32K
• October S&P Global U.S. Services PMI - Final 54.8; Prior 54.2
• October ISM Services 52.4% (Briefing.com consensus 50.9%); Prior 50.0%
  • The key takeaway from the report is that it is not a data point that falls in favor of a rate cut in December. Business activity for the nation's largest sector accelerated in October, while the prices index (which measures prices paid for materials and services by services organizations) hit its highest level in three years.