Stock Market Update

[BRIEFING.COM] The stock market notched a winning session to start the week, with the S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+1.1%) advancing on broad strength as the market rebounded from a mostly lower finish last week. The Russell 2000 (+1.0%) and S&P Mid Cap 400 (+0.9%) finished similarly after underperforming in the previous week. 

Stocks had a relatively easy session despite some volatility in other parts of the market. Gold and silver extended their pullback from recent record highs, Bitcoin and other cryptocurrencies faced a sharp retreat over the weekend, and a path towards negotiations between the U.S. and Iran sent oil prices sharply lower. Those factors were not completely absent from today's trade, as Robinhood Markets (HOOD 89.91, -9.57, -9.62%) was the worst performing S&P 500 name amid the weakness in crypto, and the energy sector (-2.0%) was the worst performing S&P 500 sector. 

However, they did not come to define today's session, as the market advanced with a strong "risk on" disposition. 

This morning's economic data added juice to a market that was arguably already primed for some buy-the-dip action after Friday's lower finish. The ISM Manufacturing Index (52.6%; Briefing.com consensus: 48.3%) showed manufacturing activity expanded in January, an encouraging sign for both economic and earnings growth. 

Growth names in turn rebounded from Friday's more defensive posturing, as evidenced by solid gains across smaller-cap indices, a 1.2% gain in the Invesco S&P 500 High Beta ETF, and a 1.7% gain in the PHLX Semiconductor Index. 

Strength was broad for the entirety of the session, with eight S&P 500 sectors finishing higher.

Though typically a more defensive sector, the consumer staples sector (+1.6%) finished with the widest gain, expanding upon a similar gain on Friday as Walmart (WMT 124.06, +4.92, +4.13%) and Costco (COST 968.36, +28.11, +2.99%) provided solid leadership. 

The industrials (+1.3%) sector finished similarly, with Caterpillar (CAT 690.91, +33.55, +5.10%) rebounding after a post-earnings slide, while airline names such as United Airlines (UAL 107.35, +5.03, +4.92%) and Delta Air Lines (DAL 69.08, +3.19, +4.84%) were boosted by the falling price of oil. 

The financials sector (+1.0%) rounds out the top three S&P 500 sectors, with strength also led by a rebound in several stocks that reported earnings last week, including Visa (V 333.84, +12.01, +3.73%).

Fifth Third (FITB 51.95, +1.73, +3.44%) notched a similar gain after announcing it has completed its merger with Comerica Incorporated (CMA 90.39, -2.47, -2.66%) to become the ninth largest U.S. bank. 

Meanwhile, the top-weighted information technology sector finished near the middle of the pack. 

Strength in the sector's mega-cap components was mixed today.  Apple (AAPL 270.01, +10.53, +4.06%) surged higher after a flattish response to an impressive earnings report on Friday, while Microsoft (MSFT 423.37, -6.92, -1.61%) continues to struggle after its earnings.

NVIDIA (NVDA 185.61, -5.52, -2.89%) also slid lower throughout the session, despite a relatively strong day for chipmakers.

The Vanguard Mega Cap Growth ETF (+0.2%) still notched a slight gain, with Amazon (AMZN 242.96, +3.66, +1.53%) and Alphabet (GOOG 344.90, +6.37, +1.88%) trading higher ahead of their earnings reports this week. 

In addition to the energy sector (-2.0%), the utilities (-1.5%), and real estate (-1.1%) sectors also finished lower. 

All told, today's session marked a solid rebound from a softer end to the previous week. Solid buy-the-dip interest combined with optimistic economic data lifted stocks in broad fashion, putting them on more solid footing ahead of another busy week of earnings. 

U.S. Treasuries began February with losses across the curve after backing down from their opening highs. The 2-year note yield settled up four basis points to 3.57%, and the 10-year note yield settled up three basis points to 4.28%. 

• Russell 2000: +6.4% YTD
• S&P Mid Cap 400: +4.9% YTD
• DJIA: +2.8% YTD
• S&P 500: +1.9% YTD
• Nasdaq Composite: +1.5% YTD

Reviewing today's data:

• January S&P Global U.S. Manufacturing PMI - Final 52.4; Prior 51.9
• January ISM Manufacturing Index 52.6% (Briefing.com consensus 48.3%); Prior 47.9%
  • The key takeaway from the report is that activity in the manufacturing sector revved up in January, breaking a streak of eleven straight months in a state of contraction, paced by the highest level in the new orders index since February 2022.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.6%), and DJIA (+1.1%) are little changed from previous values with just half an hour left in today's action. 

The market will see another modest batch of earnings after the close, with a larger batch to follow before the open tomorrow. 

Palantir Technologies (PLTR 147.20, +0.61, +0.42%) is among the names set to report this evening, with the stock having risen nearly 3% earlier in the session before faceing some pressure. 

Elsewhere, Merck (MRK 113.12, +2.85, +2.58%) and Marathon Petroleum (MPC 176.60, +0.41, +0.23%) area also set to deliver their earnigns before the opening bell tomrrow. 

[BRIEFING.COM] The major averages are closing in on solid gains with just an hour left in the first session of the month. 

Stocks have had a relatively easy session so far, steadily climbing despite falling oil, cryptocurrency, and gold prices. 

The CBOE Volatility Index is down 7.4% to 16.15, suggesting a rebound in sentiment after a choppy end to the previous week. 

[BRIEFING.COM] The S&P 500 (+0.75%) is in "last" place among the major averages, still up more than 50 points on the session.

Briefly, S&P 500 constituents Corning (GLW 109.81, +6.56, +6.35%), Old Dominion (ODFL 183.95, +10.75, +6.21%), and Micron (MU 436.59, +21.71, +5.23%) dot the top of the standings despite a dearth of corporate news.

Meanwhile, IDEXX Labs (IDXX 630.61, -39.85, -5.94%) is one of today's worst laggards despite a Q4 beat because FY26 guidance was slightly cautious, with EPS at the low end of consensus and modest revenue growth, falling short of elevated market expectations. Combined with its premium valuation, investors appear to be pricing in slower growth and taking profits.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.91%) is in second place with about two hours to go on Monday.

Gold futures settled $92.50 lower (-1.9%) at $4,652.60/oz, as markets repriced U.S. monetary policy expectations following signs of a potentially more hawkish Fed leadership, lifting the dollar and yields and weighing on non-yielding assets. The move was amplified by technical selling and position unwinds after higher futures margin requirements, turning a policy-driven pullback into a sharper short-term correction.

Meanwhile, the U.S. Dollar Index is up +0.7% to $97.70.