Stock Market Update

[BRIEFING.COM] Considerable losses in mega-cap tech names have the S&P 500 (-0.6%) and Nasdaq Composite (-1.4%) facing pressure, while the DJIA now trades on its flatline after a nice early gain propelled the index to a fresh record high level (45,207.39). 

Only the communication services (-1.4%), information technology (-1.3%), energy (-0.4%), and consumer discretionary (-0.2%) sectors are in negative territory, though losses in key mega-cap components significantly weigh on the market.

Meta Platforms (META 754.72, -12.65, -1.65%) continues its slide this week, while Alphabet (GOOG 201.51, -2.78, -1.36%) and Netflix (NFLX 1205.55, -39.54, -3.18%) also put pressure on the communication services sector.

Within the technology sector, NVIDIA (NVDA 177.43, -4.58, -2.52%) and Microsoft (MSFT 510.51, -6.59, -1.27%) reiterate the broader theme of mega-cap underperformance, with NVIDIA's loss contributing to a 1.0% retreat in the PHLX Semiconductor Index.

Separately, Intel (INTC 25.34, +1.68, +7.12%) captures a sizable gain after news that Softbank Group made a $2 billion investment in the company. 

Losses in Tesla (TSLA 331.53, -3.63, -1.08%) and Amazon (AMZN 228.10, -3.39, -1.46%) seat the consumer discretionary sector in negative territory after a nice opening gain.

As a result, the Vanguard Mega Cap Growth ETF holds a 1.2% loss today, and the S&P 500 Equal Weighted Index (+0.4%) outperforms the market-weighted S&P 500 (-0.5%).

Small-cap stocks are overlooked today as well, with the Russell 2000 down 0.6%.

Meanwhile, the S&P Mid Cap 400 (+0.2%) sports a modest gain. 

The real estate (+1.2%), consumer staples (+1.0%), health care (+0.6%), utilities (+0.5%), materials (+0.4%), industrials (+0.1%), and financials (+0.1%) sectors have also advanced today, though not far enough to keep the major averages out of negative territory. 

Home Depot (HD 407.24, +12.54, +3.18%) trades higher after reaffirming its FY26 guidance despite an earnings miss. This morning's earnings kicks off a week of big box stores earnings, with most names set to report trading higher in anticipation. 

Elsewhere, homebuilder stocks trade higher morning's release of July Housing Starts data (1.428 million vs Briefing.com consensus 1.311 million), pushing the iShares U.S. Home Construction ETF up 1.6% today. 

Reviewing today's data:

• Housing starts increased 5.2% month-over-month in July to a seasonally adjusted annual rate of 1.428 million units (Briefing.com consensus: 1.311 million), with single-unit starts up 2.8% and multi-unit starts up 9.9%. Building permits decreased 2.8% month-over-month to a seasonally adjusted annual rate of 1.354 million units (Briefing.com consensus: 1.390 million), with single-unit permits up 0.5% and multi-unit permits down 8.2%.
  • The key takeaway from the report is that there wasn't much strength in single-unit starts or permits, which is relatively disappointing in the context of a housing market that needs more affordable, single-family homes for sale. In fact, single-unit starts were down in all regions except the South (+13.2%).