Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+0.2%) trade higher just before midday as investors continue to buy the recent dip across semiconductor names while the broader market has improved since the open.

The PHLX Semiconductor Index is up 4.4%, buoyed by bullish commentary from Applied Materials' (AMAT 608.02, +37.52, +6.58%)CEO and enthusiasm across memory names after reports that SK Hynix's (SKHY) ADS debut is more than seven times oversubscribed. The information technology sector (+1.6%) holds the widest gain so far.

Despite the enthusiasm across semiconductor stocks today, the S&P 500 Equal Weighted Index (+0.9%) is outperforming the market-weighted S&P 500 (+0.5%). Seven S&P 500 sectors trade higher, with solid gains across cyclical sectors, including financials (+0.9%) and industrials (+0.7%), after yesterday's oil-driven retreat. Crude oil is currently down $1.40 (-1.9%) to $72.12 per barrel despite the U.S. and Iran continuing to exchange fire. The energy sector (-1.1%) is giving back some of yesterday's advance as a result.

The Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.7%) are benefiting from the retreat in oil prices, which has also pushed Treasury yields lower across the curve.

[BRIEFING.COM] The major averages remain modestly higher.

Amid the enthusiasm across semiconductor stocks today, the defensive consumer staples sector (-1.4%) is a laggard, with a few corporate news items contributing to the retreat.

PepsiCo (PEP 136.96, -5.54, -3.89%)  is trading lower after reporting a narrowly better-than-expected Q2 this morning. Core EPS of $2.20 modestly beat expectations, while revenue rose 6.4% to $24.18 billion, roughly in line. PEP also reaffirmed FY26 guidance for 5-7% core EPS growth and 4-6% reported revenue growth. However, North America was softer than anticipated, with both foods and beverages losing momentum from Q1. That overshadowed positive global volume growth and continued international strength. Management also sounded more cautious, now expecting a more gradual improvement in North America through the balance of the year.

Costco (COST 909.30, -43.83, -4.60%) holds a similar loss after reporting June adjusted comparable sales of +7%, which was lower than the 8% reported in May.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.2%), and DJIA (+0.2%) hold on to modest early gains. Semiconductor stocks have come down some from their opening highs, but that has been balanced out by improvements in the broader market, with seven S&P 500 sectors now trading higher.

Existing home sales decreased 2.4% month-over-month in June to a seasonally adjusted annual rate of 4.09 million (Briefing.com consensus: 4.20 million) from an upwardly revised 4.19 million (from 4.17 million) in May. Sales were up 2.8% on a year-over-year basis.

The key takeaway from the report is that affordability conditions improved across all regions as wage growth outpaced home price growth; however, overall sales were still pressured by high prices and elevated mortgage rates.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (+0.1%) are modestly higher as another strong showing from semiconductor names outweighs mixed strength elsewhere.

The top-weighted information technology sector (+1.4%) leads the advance, buoyed by a 5.1% gain in the PHLX Semiconductor Index, which now trades firmly higher for the week. Applied Materials (AMAT 625.76, +55.26, +9.69%) is extending yesterday's rally, while Lam Research (LRCX 364.52, +31.36, +9.41%) and KLA Corporation (KLAC 244.59, +23.41, +10.58%) hold similar gains.

Gains are more modest elsewhere, though several cyclical sectors that traded lower yesterday, such as the industrials (+0.6%) and financials (+0.5%) sectors, are rebounding today.

Meanwhile, PepsiCo's (PEP 135.38, -7.12, -4.99%) earnings weigh on the consumer staples sector (-1.7%), while Paramount Skydance (PSKY 8.94, -0.81, -8.32%) is the worst-performing S&P 500 name, weighing on the communication services sector (-1.4%) amid reports that states could sue to block the merger with Warner Bros. Discovery (WBD 26.30, +0.14, +0.55%).

The energy sector (-1.1%) is also a laggard as crude oil gives back some of yesterday's gains, though reports indicate shipping through the Strait of Hormuz remains at a near standstill.

Just released, existing home sales decreased 2.4% month-over-month in June to a seasonally adjusted annual rate of 4.09 million (Briefing.com consensus 4.20 million) from an upwardly revised 4.19 million (from 4.17 million) in May.

The stock market is on track for a higher open as continued enthusiasm across semiconductor stocks helps offset some oil-driven volatility in the broader market.

For the week ending July 4, initial jobless claims decreased by 2,000 to 215,000 (Briefing.com consensus: 220,000), which is the same level they were at in December 2025. For the week ending June 27, continuing jobless claims increased by 8,000 to 1.814 million, which is roughly where they stood in March.

The key takeaway from the report is the same key takeaway as other recent reports: the low level of initial jobless claims continues to reinforce the understanding that layoff activity remains quite low overall.