Stock Market Update

[BRIEFING.COM] The stock market's strong opening pushed the S&P 500 (flat) and Nasdaq Composite (+0.3%) to fresh record highs this morning after the announcement of a trade deal between the U.S. and EU with a 15% tariff rate on European imports, markedly lower than the 30% threatened rate.

There is also lingering optimism about the potential for a more favorable trade deal between the U.S. and China, with the U.S. expected to extend the current lower tariff rate by 90 days as negotiations continue.

At its peak the S&P 500 briefly eclipsed the 6,400 mark, reaching 6,401.07.

The Nasdaq Composite established a new high at 21,202.18.

The early enthusiasm waned amid a lack of major developments after the opening, with the markets anticipating a massive batch of earnings reports and key economic data later in the week.

Relatively broad-based selling pressure has kept eight S&P 500 sectors trading in negative territory, though strength in the energy (+1.0%), consumer discretionary (+0.9%) and information technology (+0.4%) sectors preserves modest gains in the major averages.

The consumer discretionary sector leads the way, with its top component Amazon (AMZN 233.05, +1.61, +0.7%) trading higher ahead of its earnings report on Thursday. 

Additionally, Tesla (TSLA 329.07, +13.01, +4.1%) continues to rebound from a lackluster earnings report last week, while NIKE (NKE 79.08, +2.80, +3.7%) continues its impressive rally from its own more favorable earnings report just over a month ago.

Meanwhile, the energy sector is seeing support from a rising price of oil as WTI crude climbs $1.30, or 2.0%, to $66.46 per barrel, rising back above its 50-day moving average (65.93), which acted as resistance last week.

Energy stocks are also benefitting from news that the EU will purchase $750 billion worth of energy products from the U.S. as part of a trade deal.

The technology sector rounds out today's advancers, with a strong performance in chipmakers pushing the PHLX Semiconductor Index up 1.3%.

Treasuries are little changed following this morning's 2-year note auction and ahead of this afternoon's 5-year note auction.

The 2-year note yield is up one basis point at 3.93%, the 5-year note yield is up two basis points at 3.97%, and the 10-year note yield is up two basis points at 4.41%.