Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.3%), and DJIA (-0.3%) are lower this morning as the latest round of earnings reports drives some impressive moves across a host of notable stocks. Most notably, the Nasdaq Composite trails the other major averages by a significant margin as Alphabet (GOOG 283.51, -38.38, -11.92%) sinks after last night's earnings miss.

The communication services sector (-6.2%) is unsurprisingly the worst-performing S&P 500 sector, though renewed concerns around AI investment returns also weigh on semiconductor and other tech stocks. The PHLX Semiconductor Index is down 1.6%, and the information technology sector is down 0.8%. ServiceNow (NOW 114.08, -36.04, -24.01%) is the worst-performing S&P 500 name after an earnings miss of its own.

The weakness across mega-cap tech extends to Amazon (AMZN 245.88, -8.72, -3.42%) ahead of its own earnings release after the close, weighing on the consumer discretionary sector (-0.4%). Meanwhile, the broader market is seeing some solid rotational action, with several other notable earnings releases contributing to the enthusiasm. The health care sector (+2.8%) leads the advance following solid earnings results from Eli Lilly (LLY 1389.59, +101.29, +7.86%) and Merck (MRK 147.68, +6.75, +4.79%), with relative strength across more defensive stocks today boosting the consumer staples (+1.0%) and utilities (+1.0%) sectors as well.

Mastercard (MA 638.05, +27.74, +4.55%) leads the financials sector (+1.7%) higher after earnings, while the real estate sector (+1.5%) also holds a solid gain.

While the pronounced weakness in tech and mega-cap stocks weighs on the major averages, the S&P 500 Equal Weighted Index (+0.6%) is decently higher, highlighting the rotational gains under the surface.