Stock Market Update

[BRIEFING.COM] The stock market had a relatively eventful session, with a slate of noteworthy earnings reports and plenty of oil-driven volatility leading to some choppy action. The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.6%) finished the session modestly higher, with the DJIA notching a record closing high. The Russell 2000 (+0.9%) outperformed, and the S&P Mid Cap 400 (+0.1%) finished flattish.

Stocks opened broadly lower as oil prices and Treasury yields surged following a Reuters report that Iran's Supreme Leader said the country's enriched uranium should remain in Iran. That report was later disputed, allowing oil prices and Treasury yields to stabilize, though stocks remained mostly lower through the morning. Sentiment shifted again shortly after midday, when reports from Middle Eastern sources indicated that a final draft of a mediated peace agreement between the U.S. and Iran could be announced within hours.

Stocks moved broadly higher as yields and oil moved lower, with crude oil futures settling today's session $1.91 lower (-2.0%) at $96.28 per barrel.

Eight S&P 500 sectors finished in positive territory. Unsurprisingly, the energy sector (-1.0%) reversed its early gain amid the intraday retreat in oil prices, while the consumer staples sector (-1.6%) finished sharply lower as Walmart (WMT 121.32, -9.53, -7.29%) disappointed investors with its Q1 earnings report.

The company reported in-line EPS on above-consensus revenue, issued below-consensus EPS guidance for Q2, and reaffirmed its EPS guidance for FY27, ultimately finishing as one of the worst-performing S&P 500 names.

The industrials sector (-0.1%) also faced some post-earnings weakness from Deere (DE 531.41, -29.05, -5.18%) after the company topped estimates and reaffirmed its full-year earnings guidance.

Meanwhile, the top-weighted information technology sector (+0.3%) managed to notch a modest gain despite NVIDIA (NVDA 219.51, -3.96, -1.77%) moving lower after its own eagerly anticipated earnings report.

The company delivered another standout beat-and-raise report, which included a massive jump in revenues and impressive forward guidance. However, the stock struggled to build on recent gains as investors have increasingly come to expect blowout results from NVIDIA, especially with shares entering earnings near record highs after an extended rally tied to AI enthusiasm.

Other semiconductor names faced some choppiness with the broader market, but finished the day as relative outperformers, with the PHLX Semiconductor Index advancing 1.3%.

Elsewhere in the technology sector, shares of IBM (IBM 253.02, +28.02, +12.45%) soared after the company and the U.S. Department of Commerce confirmed plans to build America's first purpose-built quantum foundry, supported by a proposed $1 billion CHIPS award.

Ralph Lauren (RL 374.80, +45.56, +13.84%) captured a similar gain after a strong earnings beat, while Williams-Sonoma (WSM 191.92, +11.68, +6.48%) moved higher after earnings. The stocks led strength in the consumer discretionary sector (+0.8%), which was also supported by strength across oil-sensitive and rate-sensitive names.

The defensive utilities sector (+1.0%) outperformed this morning as the broader market lagged, trading in a steady range throughout the session.

Overall, today's session reflected a market still highly sensitive to shifts in the macro backdrop, with intraday swings in oil prices and Treasury yields driving much of the action. Even so, continued strength across semiconductors and selective post-earnings winners helped support broader participation, while NVIDIA's muted reaction despite another exceptional report underscored how elevated expectations remain across the AI trade.

U.S. Treasuries endured some volatility on Thursday, but longer tenors ultimately reclaimed their early weakness while shorter tenors recovered some of their losses but could not avoid a lower finish. The 2-year note yield settled up five basis points to 4.09%, and the 10-year note yield settled up one basis point to 4.59%.

• Russell 2000: +14.6% YTD
• Nasdaq Composite: +13.1% YTD
• S&P Mid Cap 400: +10.2% YTD
• S&P 500: +8.8% YTD
• DJIA: +4.6% YTD

Reviewing today's data

• April Housing Starts 1.465 mln (Briefing.com consensus 1.420 mln); Prior was revised to 1.507 mln from 1.502 mln, April Building Permits 1.442 mln (Briefing.com consensus 1.380 mln); Prior was revised to 1.363 mln from 1.372 mln
  • The key takeaway from the report is that there was broad-based weakness across all regions for both single-family starts and single-family building permits, underscoring the headwind posed for builders by rising costs for financing, materials, and labor.
• Weekly Initial Claims 209K (Briefing.com consensus 210K); Prior was revised to 212K from 211K, Weekly Continuing Claims 1.782 mln; Prior was revised to 1.776 mln from 1.782 mln
  • The key takeaway from the report is that there is nothing to see here, meaning there is nothing in these latest numbers that would suggest there has been a sea change in a labor market environment that remains characterized by low firing and low hiring activity.
• May Philadelphia Fed Index -0.4 (Briefing.com consensus 15.5); Prior 26.7
• May S&P Global U.S.Manufacturing PMI - Prelim 55.3; Prior 54.5
• May S&P Global U.S. Services PMI - Prelim 50.9; Prior 51.0

[BRIEFING.COM] The major averages are moving off their session highs following more oil-driven volatility, though they remain in modestly positive territory.

The pullback follows a post from Al Arabiya on X that said, "High-level source for Al Arabiya: The Pakistani Army Chief will not head to Tehran tonight". Earlier reports that the Army Chief was heading to Tehran fueled speculation of a mediated ceasefire between the U.S. and Iran.

Crude oil futures settled today's session $1.91 lower (-2.0%) at $96.28 per barrel, but crude has since moved higher, currently down $0.64 (-0.7%) to $97.62 per barrel.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.6%) trade modestly higher as the market enters the final hour of the session.

Strength is broad-based, with only the consumer staples (-1.5%) and energy (-1.3%) sectors remaining in negative territory. The consumer discretionary sector (+1.1%) now sits atop the sector leaderboard, supported by a handful of sharp post-earnings gains and solid mega-cap leadership from Tesla (TSLA 418.95, +1.69, +0.41%) and Amazon (AMZN 268.40, +3.39, +1.28%).

Tesla is continuing a bounce after a sharp selloff that began late last week and carried into Tuesday. The weakness was partly driven by positioning and sentiment pressure tied to the anticipation of the SpaceX (SPCX) IPO prospectus, which was released yesterday afternoon, as investors worried it could trigger capital rotation away from Tesla into a new Musk-linked public offering. With that catalyst now in the market, some of the pre-event de-risking appears to be reversing.

The Vanguard Mega Cap Growth ETF (+0.3%) is now modestly higher, though NVIDIA (NVDA 219.70, -3.78, -1.69%) remains a "magnificent seven" laggard.

[BRIEFING.COM] The S&P 500 (+0.28%) is in second place on Thursday afternoon, up about 20 points.

Briefly, S&P 500 constituents Ralph Lauren (RL 379.66, +50.42, +15.31%), Lumentum (LITE 964.46, +96.39, +11.10%), and Williams-Sonoma (WSM 193.44, +13.19, +7.32%) dot the top of the standings. For its part, RL surges after strong Q4 earnings and a meaningful guidance beat, plus upbeat FY27 outlook for mid-single-digit revenue growth, margin expansion, and a higher dividend signaling confidence in sustained brand-driven growth and profitability. WSM rallies after Q1 earnings and revenue modestly beat expectations, with solid comps across all brands and reaffirmed FY26 and long-term growth/margin guidance reinforcing confidence in steady execution despite macro and tariff headwinds.

Meanwhile, Intuit (INTU 307.81, -76.12, -19.83%) is firmly lower despite an earnings beat and raised guidance because investors likely viewed the outlook as not strong enough versus high expectations, with concerns about growth deceleration and post-earnings "sell-the-news" profit-taking after a strong run-up.

[BRIEFING.COM] The Nasdaq Composite (+0.46%) is in second place on Thursday afternoon, up about 120 points.

Gold futures settled $7.20 higher (+0.2%) at $4,542.50/oz, as uncertainty surrounding U.S./Iran nuclear negotiations supported safe-haven demand. Gains were limited by higher Treasury yields and a firmer U.S. dollar amid concerns that inflation could keep the Fed cautious on rate cuts.

Meanwhile, the U.S. Dollar Index is now flat at $99.14.