Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.4%), and DJIA (-0.2%) opened to losses as a surge in oil prices sends Treasury yields higher across the curve.

Reuters reported that Iran's Supreme Leader called for the country's enriched uranium to remain in Iran, which has cast doubt over yesterday's claim of negotiation progress. Crude oil is currently up $2.27 (+2.3%) to $100.50 per barrel, and the 10-year note yield is up three basis points to 4.60%.

Eight S&P 500 sectors trade lower. The consumer staples sector (-2.3%) is an outlier, which is largely due to a sharp pullback in Walmart (WMT 121.80, -9.06, -6.92%) after the company turned in a somewhat disappointing earnings report with EPS coming in at just in-line amid some pressure in consumer spending.

Losses are more modest elsewhere, but the real estate (-0.9%) sector is pressured by the backup in yields, while the consumer discretionary (-0.9%) and communication services (-0.8%) sectors also lag.

The information technology sector (flat) is actually one of the better performers, with the PHLX Semiconductor Index (+0.6%) up modestly despite a muted response to NVIDIA's (NVDA 221.94, -1.52, -0.68%) earnings report.

Elsewhere, the energy sector (+0.4%) outperforms as oil moves higher, while the utilities sector (+0.2%) garners some defensive rotational interest.

The preliminary S&P Global U.S. Manufacturing PMI for May checked in at 55.3, from the final April level of 54.5. The preliminary S&P Global U.S. Services PMI checked in at 50.9, from the final prior level of 51.0.