Stock Market Update

[BRIEFING.COM] Modest gains in the S&P 500 (+0.3%), Nasdaq Composite (+0.6%), and DJIA (+0.8%) lifted each index to new record highs, with strength in the mega-caps keeping the major averages in positive territory despite broader market softness.

The information technology (+0.9%) and consumer discretionary (+0.8%) sectors underpin the advance as several of their largest components hold solid gains. The Vanguard Mega-Cap Growth ETF is up 0.6%, and the market-weighted S&P 500 (+0.3%) outperforms the S&P 500 Equal Weighted Index (-0.5%).

Tesla (TSLA 465.92, +13.50, +2.98%) is a standout among the mega-cap names, widening its week-to-date gains past 7.0%. Amazon (AMZN 229.22, +2.25, +0.99%) also displays strong leadership despite reports that the company will reduce 14,000 roles. 

Elsewhere in the sector, cruise lines trade lower after Royal Caribbean (RCL 291.26, -29.00, -9.06%) beat EPS expectations but issued downside Q4 EPS guidance. The industry faces additional uncertainty as Hurricane Melissa is set to make landfall in Jamaica as a devastating Category 5 storm. 

In the technology sector, Microsoft (MSFT 542.70, +11.18, +2.10%) is a standout after announcing details pertaining to its partnership with OpenAI. 

NVIDIA (NVDA 194.48, +2.99, +1.56%) holds a solid gain, with chipmakers recently rebounding from some early sluggishness, sending the PHLX Semiconductor Index 0.5% higher. The company announced a strategic partnership with Nokia (NOK 7.94, +1.58, +24.91%) to enable the accelerated development and deployment of next-generation AI-native mobile networks and AI networking infrastructure.

Skyworks (SWKS 83.74, +7.90, +10.42%) is the top-performing S&P 500 stock after entering a definitive agreement with Qorvo (QRVO 100.73, +8.60, +9.33%) to combine the two companies in a cash-and-stock transaction that values the combined enterprise at approximately $22 billion.

Elsewhere, the materials sector (+0.5%) holds a solid gain as Dow component Sherwin-Williams (SHW 352.46, +16.38, +4.87%) and Nucor (NUE 153.51, +9.35, +6.49%) both move higher after beating earnings expectations. 

While eight other S&P 500 sectors trade lower, losses are modest, with the exception of the real estate (-1.9%) and utilities (-1.3%) sectors. 

The real estate sector faces pressure from Alexandria RE (ARE 64.80, -13.07, -16.78%) after an earnings miss. 

Other notable moves driven by earnings include PayPal (PYPL 76.18, +5.93, +8.44%) (which separately announced a partnership with OpenAI), Wayfair (W 106.30, +19.86, +22.97%), and Zebra Tech (ZBRA 263.00, -47.57, -15.32%). 

While earnings have provided some notable stock-specific price action, the market largely awaits more consequential reports from a slate of mega-cap companies later this week. 

On the trade front, The Wall Street Journal reported that the U.S. and China are nearing a deal to cut tariffs in exchange for increased soybean purchases and a crackdown on fentanyl. The headline adds to the increasingly optimistic developments between the two nations, boosting the major averages to new session highs just after midday. 

Reviewing today's data:

• August FHFA Housing Price Index 0.4% (Briefing.com consensus 0.1%); Prior was revised to 0.0% from -0.1%
• August S&P Case-Shiller Home Price Index 1.6% (Briefing.com consensus 1.9%); Prior 1.8%
• October Consumer Confidence 94.6 (Briefing.com consensus 94.2); Prior was revised to 95.6 from 94.2
  • The key takeaway from the report is that there wasn't much change in consumer confidence in October, as a small uptick in views about the present situation was offset by a small drop in views about the outlook.