Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.0%), and DJIA (+0.3%) are charting session highs at midday, fueled by broadening strength that leaves just the real estate sector (-0.1%) with a slight loss. 

The consumer discretionary sector (+0.5%) was one of the last sectors to move into positive territory, as Amazon (AMZN 249.31, -0.01, +0.00%) has yet to benefit from today's mega-cap strength. 

McDonald's (MCD 305.12, +5.91, +1.98%) is trading higher following its Q3 earnings release, as investors look past an EPS miss and in-line revenue to focus on stronger-than-expected same-store sales momentum in both global and U.S. markets.

Meanwhile, treasury yields are rising this morning due to a confluence of factors. The ISM Services Index for October (52.4%; Briefing.com consensus 50.9%) surprised to the upside, reinforcing the view that the services economy and the inflation pressures tied to it remain resilient. The ADP Employment Change report for October also beat expectations, pointing to ongoing labor market strength.

In addition, early questioning in the Supreme Court tariff authority case is fueling speculation that tariffs could be overturned. That could require refunding previously collected revenue, potentially widening the deficit and lifting rate expectations None of the members of the Supreme Court have brought up the issue of tariff refunding, though the hearing is ongoing. The 10-year yield is up seven basis points to 4.16 percent, though it remains about 60 basis points below January levels.