Stock Market Update

[BRIEFING.COM] The stock market is enjoying its best session of the week so far, with the S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.2%) holding gains shortly after midday as a reprieve in long-term interest rates and a busy batch of corporate news fuel a broadening-out trade.

Stocks received a boost shortly before the open after the U.S. Department of the Treasury announced that it will at least double the size of its liquidity-support buyback operations for longer-dated nominal securities beginning September 9. The announcement has provided some relief in a Treasury market that has been a persistent source of pressure recently, helping rate-sensitive and other areas of the equity market rebound.

The improvement beneath the surface is particularly notable following the narrow weakness seen earlier this week. Nine S&P 500 sectors trade higher, while the S&P 500 Equal Weighted Index (+0.9%) comfortably outperforms its market-cap-weighted counterpart.

Th health care sector (+2.7%) sits atop the sector standings following positive results for an experimental cancer vaccine from Moderna (MRNA 151.18, +88.22, +140.13%) and Merck (MRK 149.94, +14.77, +10.93%). Moderna has more than doubled in value, while Merck is also posting a double-digit gain.

The materials sector (+2.1%) is another standout as higher precious metals prices lift Newmont Corporation (NEM 124.83, +8.85, +7.63%) and other mining names.

Consumer staples (+1.0%) also outperforms, helped by a sharp post-earnings gain in Estee Lauder (EL 98.56, +14.29, +16.96%).

There are several sources of strength within the consumer discretionary sector (+1.7%). Retail stocks are outperforming following the latest batch of earnings, with Target (TGT 161.28, +8.80, +5.77%) and Lowe's (LOW 220.76, +5.12, +2.38%) moving firmly higher after their quarterly reports. Homebuilders are also benefiting from the relief in long-term yields, while Amazon (AMZN 264.17, +4.72, +1.82%) and Tesla (TSLA 347.42, +10.55, +3.13%) participate in a rebound across non-semiconductor mega-cap stocks.

That recovery extends to communication services, where Meta Platforms (META 552.90, +9.23, +1.70%) is bouncing back after yesterday's sharp decline amid the opening arguments in a child social-media addiction case.

However, the information technology sector (-0.4%) is one of just two sectors trading lower as the PHLX Semiconductor Index falls 1.6%, extending yesterday's sharp retreat. The industrials sector (-0.6%) is the other laggard, with weakness in semiconductor-related electrical equipment names continuing to weigh on the group.

Stocks are also weathering another increase in oil prices, with WTI crude up $1.45 (+1.8%) to $85.51 per barrel. For now, however, the relief in long-term rates and a number of positive company-specific catalysts are having the greater influence, allowing the market to broaden beyond the technology-heavy leadership that has characterized much of the recent advance.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -0.4%; Prior 3.6%