Stock Market Update

[BRIEFING.COM] The stock market sits mixed early this afternoon as mega-cap weakness keeps the S&P 500 (-0.3%) and Nasdaq Composite (-0.8%) beneath their baselines, while buying interest in some recently overlooked pockets of the market pushes the DJIA (+0.4%) to the precipice of a fresh record high. 

Yesterday afternoon's round of earnings reports featured three "magnificent seven" names, giving investors plenty to digest this morning. 

Meta Platforms (META 679.38, -72.29, -9.62%) comfortably beat expectations, but a substantial $15.9 billion non-cash income tax charge weighed on GAAP EPS and the stock post-earnings. Additionally, the company raised its FY25 spending plans and warned of even heavier AI infrastructure spending next year. 

Meta's loss would drag the communication services sector (-0.8%) even further beneath its flat line if not for a solid gain in Alphabet (GOOG 285.31, +10.14, +3.68%), which continues its push into record territory after the company crushed Q3 expectations, powered by ongoing AI adoption, a resurgence in core ad businesses, and a major cloud acceleration. 

Meanwhile, Microsoft (MSFT 525.47, -16.08, -2.97%) trades lower despite besting earnings estimates, with investors seemingly disappointed by in-line Q2 guidance, a smaller Azure upside surprise than prior quarters, and a broader tech rotation following the sector's recent rally.

The information technology sector (-1.1%) moves lower today, though it still holds a solid 3.6% week-to-date gain. NVIDIA (NVDA 202.98, -4.06, -1.96%) is also on the retreat, and the PHLX Semiconductor Index is down 0.7%. 

Mega-cap weakness is also apparent in the consumer discretionary sector (-1.4%), which holds the widest loss today. Tesla (TSLA 445.77, -15.74, -3.41%) is lower, while Chipotle Mexican Grill (CMG 33.73, -6.03, -15.17%) and eBay (EBAY 85.78, -13.76, -13.82%) hold the widest losses following their earnings reports. 

Although the market's largest names are largely on the defensive today, several recently underperforming sectors have garnered some buying interest. 

The financials sector (+1.0%) holds the widest gain, supported by strong leadership across its major banking names. S&P Global (SPGI 490.10, +17.05, +3.60%) trades higher after an earnings beat, while Fiserv (FI 66.42, -4.18, -5.91%) continues its recent plummet. 

The health care sector (+0.6%) moves higher following earnings beats from Eli Lilly (LLY 841.24, +27.70, +3.41%) and Cardinal Health (CAH 184.74, +20.27, +12.32%). Moderna (MRNA 27.55, +2.85, +11.54%) has made an impressive intraday move amid speculation of a buyout. 

While this week's mega-cap rally has at least temporarily come to a halt, the broader market has shown resilience and highlighted investors' willingness to do some bargain hunting in overlooked segments.  

The market will receive the earnings reports of Apple (AAPL 271.51, +1.81, +0.67%) and Amazon (AMZN 225.86, -4.44, -1.93%) after the close, which could reignite the rally to record highs or raise further questions around valuations and massive AI expenditures.