Stock Market Update

[BRIEFING.COM] The major averages sit mixed early this afternoon, with the S&P 500 (+0.4%) and Nasdaq Composite (+0.9%) supported by solid gains in mega-cap and tech names, while a mixed broader market and select earnings weakness weigh on the DJIA (-1.0%). Notably, the S&P 500 notched a fresh all-time high in today's trade. 

Five S&P 500 sectors trade higher, with the top-weighted information technology sector (+1.8%) a standout by a relatively wide margin. 

Apple (AAPL 261.21, +5.80, +2.27%) and Microsoft (MSFT 480.30, +10.02, +2.13%) continue to chart solid advances ahead of their earnings reports later this week. 

The Vanguard Mega Cap Growth ETF expands upon yesterday's strength and is up 0.9% today. 

NVIDIA (NVDA 189.76, +3.29, +1.76%) also holds a solid gain after trading lower at the open, contributing to a rebound in chipmaker names that boosts the PHLX Semiconductor Index (+2.8%). Memory storage names such as Micron (MU 409.10, +20.01, +5.14%) and Western Digital (WDC 253.76, +12.91, +5.36%) are rising in anticipation of Seagate Tech's (STX 380.42, +22.13, +6.18%) earnings release after the close. 

Elsewhere in the sector, Corning (GLW 111.28, +16.32, +17.19%) is the best-performing S&P 500 name after CNBC reported that Meta Platforms (META 667.21, -5.15, -0.77%) will pay Corning $6 billion for fiber optic cable in its AI data centers through 2030.

The utilities sector (+1.0%) also holds a solid gain, trading higher amid forecasts for more severe winter weather. 

Losses in the six S&P 500 sectors are modest with the exception of the health care sector (-1.6%), which faces sharp losses in its insurer components. 

Those stocks face pressure after the Trump administration called for a slight 0.09% net average year-over-year payment increase for Medicare Advantage and Part D policies versus an expected 4-6% increase.  Humana (HUM 209.96, -53.67, -20.36%) faces the widest loss, while UnitedHealth (UNH 282.25, -69.39, -19.73%) is down similarly, with the stock moving to its worst levels since August 2015. The company beat Q4 EPS expectations and issued mixed guidance for FY26.

UnitedHealth's sell-off weighs heavily on the DJIA, which, like the S&P 500, came into today's session less than 0.5% below its all-time high level. 

There are several other notable earnings-related moves in the mix today as the market sees a ramp in reporting during the final days of January. 

General Motors (GM 86.24, +6.82, +8.58%), UPS (UPS 110.62, +3.65, +3.41%), and Sysco (SYY 82.38, +6.74, +8.92%) are among the winners, while American Airlines (AAL 13.83, -0.74, -5.06%), Boeing (BA 245.34, -3.08, -1.24%), and Synchrony Financial (SYF 73.27, -4.24, -5.47%) trade lower. 

Outside of the S&P 500, the Russell 2000 (-0.2%) and S&P Mid Cap 400 (-0.3%) trade lower for a third consecutive session, unable to shake a recent stalling in momentum as the mega-caps reassert their leadership. 

With the S&P 500 back at record high levels due to a resurgence in mega-cap names, the onus is now on the four "magnificent seven" names that report earnings in the coming days to deliver solid reports and upside guidance to maintain the record push. 

Reviewing today's data:

• November FHFA Housing Price Index 0.6% (Briefing.com consensus 0.3%); Prior 0.4%
• November S&P Case-Shiller Home Price Index 1.4% (Briefing.com consensus 1.2%); Prior 1.3%
• January Consumer Confidence 84.5 (Briefing.com consensus 90.0); Prior was revised to 94.2 from 89.1
  • The key takeaway from the report is that consumer concerns about both the present situation and expectations for the future deepened, driving the overall index to a level that was lower than the depths seen during the COVID pandemic.