Stock Market Update

[BRIEFING.COM] The stock market has seen a modest pullback after the S&P 500 (-0.1%) and Nasdaq Composite (flat) captured new record highs on slim opening gains, with the DJIA (-0.2%) slightly lagging.

While the market advanced yesterday by way of its largest names, mega-caps are putting up mixed performances so far, with the Vanguard Mega Cap Growth ETF down 0.1%. Broad-based weakness currently seats seven S&P 500 sectors with losses, though recent improvements have the major averages off their session lows.

Currently, the utilities (-1.0%), real estate (-0.8%), and information technology (-0.4%) sectors hold the widest losses.

Meanwhile, the energy (+1.8%), consumer discretionary (+0.8%), health care (+0.3%), and consumer staples (+0.2%) sectors limit losses at the index level.

The energy sector has spent the entirety of the session distanced from its peers, benefitting from a $1.22 increase in the price of oil to $64.52, an increase of 1.9%.

The consumer discretionary sector also holds a healthy gain, with strong performances from Tesla (TSLA 421.37, +11.33, +2.76%) and Amazon (AMZN 235.08, +3.65, +1.58%) making it the top beneficiary of today's limited mega-cap strength. 

Within the underperforming information technology sector, Oracle (ORCL 303.38, +1.24, +0.41%) is set to keep its existing cloud deal with TikTok as a part of the framework agreement that will bring TikTok under U.S. control in the next 30-45 days, according to CNBC. The stock traded over 4.0% higher this morning but has since seen its gain eroded.

NVIDIA (NVDA 175.10, -2.65, -1.49%) moves lower following a report from Reuters that stated the company's new RTX6000D chip made for AI use in China has seen lukewarm demand.

Elsewhere in corporate headlines, Warner Bros. Discovery (WBD 17.92, -1.54, -7.89%) gives back some of its recent rally as TD Cowen downgraded the stock to Hold from Buy, citing downside risk if the proposed acquisition by Paramount Skydance (PSKY 17.90, -0.68, -3.66%) fails to materialize. 

Outside of the S&P 500, smaller cap names are facing relatively wider losses, with the Russell 2000 down 0.5% and the S&P Mid Cap 400 down 0.7%. 

The market received a hefty slate of economic data this morning that included a promising Retail Sales report for August (0.6%; Briefing.com consensus: 0.3%), though none of it moved the market in any significant way.

The market also learned that the Senate confirmed Stephen Miran to the Fed Board of Governors, and he will attend this week's meeting. An appeals court, however, rejected the plan to remove Lisa Cook from the Fed Board, ensuring she will also be casting a vote at the FOMC meeting.

The September FOMC meeting officially began today, but with no policy details expected until tomorrow afternoon's announcement and subsequent press conference, market participants are largely awaiting clarity on future monetary policy expectations before making decisive moves.

Reviewing today's data:

• August Retail Sales 0.6% (Briefing.com consensus 0.3%); Prior was revised to 0.6% from 0.5%, August Retail Sales ex-auto 0.7% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.3%
  
  • The key takeaway from the report is that it reflects a consumer still spending at a good clip. The retail sales data are not adjusted for price changes. Granted, higher prices accounted for some of the increased sales activity in August, but they didn't account for all of it.
• August Import Prices 0.3%; Prior was revised to 0.2% from 0.4%
• August Import Prices ex-oil 0.4%; Prior was revised to 0.0% from 0.3%
• August Export Prices 0.3%; Prior was revised to 0.3% from 0.1%
• August Export Prices ex-ag. 0.3%; Prior was revised to 0.3% from 0.1%
• August Industrial Production 0.1% (Briefing.com consensus 0.0%); Prior was revised to -0.4% from -0.1%, August Capacity Utilization 77.4% (Briefing.com consensus 77.4%); Prior was revised to 77.4% from 77.5%
  
  • The key takeaway from the report is that industrial production activity was driven in August by the production of motor vehicles and parts.
• July Business Inventories 0.2% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.0%
• September NAHB Housing Market Index 32 (Briefing.com consensus 33); Prior 32