Stock Market Update

[BRIEFING.COM] Today's trade features a negative bias. The major indices all show losses ranging from 1.2% to 2.5%. Decliners lead advancers by a 5-to-2 margin at the NYSE and by a 3-to-1 margin at the Nasdaq.

Just about everything is participating in a broad retreat fueled by normal consolidation activity. Some of the most influential losers in the market today sit on huge gains for the year. NVIDIA (NVDA 110.57, -8.79, -7.4%) and Broadcom (AVGO 154.10, -8.72, -5.3%) are standouts in that respect. NVDA shares are still 123% higher in 2024 and AVGO shares are 38% higher.

Other semiconductor stocks are also lagging the broader market, leading the PHLX Semiconductor Index (SOX) to trade 6.3% lower. The SOX is still 15.8% higher this year. 

Mega cap stocks are also relatively weak today. The Vanguard Mega Cap Growth ETF (MGK) trades 2.2% lower. 

Tesla (TSLA 214.40, +0.25, +0.1%), which reported a jump in sales in China and is reportedly aiming to introduce the robotaxi at a Warner Brothers (WBD 7.48, -0.36, -4.6%) studio, has gone against the grain with a modest gain.

Eli Lilly (LLY 964.77, +4.75, +0.5%) also trades higher with no specific catalyst to account for the movement.

Molson Coors Brewing (TAP 57.06, +3.09, +5.7%) is another winning standout, leading S&P 500 components, completing a previously announced sale of four craft breweries to Tilray Brands (TLRY 1.67, -0.03, -2.0%), supporting its portfolio premiumization goals.

Treasury yields are sliding alongside equities, reflecting the market's emerging fears about economic prospects that sent yields sharply lower in August. The 10-yr note yield is down seven basis points to 3.84% and the 2-yr note yield is down six basis points to 3.87%.

Reviewing today's economic data:

• August S&P Global US Manufacturing PMI - Final 47.9; Prior 48.0
• August ISM Manufacturing Index 47.2% (Briefing.com consensus 47.5%); Prior 46.8%
  • The key takeaway from the report is that it has reinforced the understanding that conditions in the U.S. manufacturing sector are weak.
• July Construction Spending -0.3% (Briefing.com consensus 0.2%); Prior was revised to 0.0% from -0.3%
  • The key takeaway from the report is that new single-family construction was weak in July.