Stock Market Update

[BRIEFING.COM] Stocks are off to a mostly lower start this morning, with continued semiconductor weakness weighing on the Nasdaq Composite (-0.8%) and S&P 500 (-0.6%), while several defensive pockets of strength keep the DJIA (+0.1%) modestly higher.

While semiconductor stocks recovered the bulk of yesterday's weakness, the PHLX Semiconductor Index is down 2.4% this morning, weighing on the information technology sector (-1.1%).

Mega-cap tech is mostly lower this morning, partly due to the release of the September Consumer Price Index, which showed both total and core CPI rising year over year. In turn, the CME FedWatch Tool now puts the Fed's next policy decision at a coinflip, after showing roughly 80% odds of keeping rates steady at the October FOMC meeting.

Treasury yields are also moving higher, which weighs on the rate-sensitive utilities (-0.9%), real estate (-0.8%), and consumer discretionary (-0.8%) sectors.

The financials sector (-1.2%) is also a laggard, with Bank of America (BAC 49.62, -4.34, -8.05%) moving sharply lower after earnings.

Meanwhile, the health care (+1.6%) and consumer staples (+0.9%) sectors both show firm gains as investors rotate into more defensive holdings, while the energy sector (+0.4%) benefits from rising oil prices.