Stock Market Update

[BRIEFING.COM] Selling has deepened approaching midday, with the major averages continuing to set fresh session lows. The Nasdaq Composite is down 0.8%, while the S&P 500 and DJIA are lower by 0.5% and 0.7%, respectively. Small caps remain under added pressure, with the Russell 2000 down 0.9%.

Darden Restaurants (DRI 209.90, -3.78, -1.77%) is moving lower following a mostly in-line fiscal first-quarter report. Adjusted earnings of $2.05 per share matched expectations, while revenue increased 5.1% year-over-year to $3.20 billion. The softer response centers on blended same-restaurant sales growth slowing to 3.1% from 4.6% in the prior quarter, including moderation at Olive Garden, its largest brand.

There were some encouraging demand signals beneath the headline figures. Management said traffic improved sequentially during the quarter, with August the strongest month and positive traffic accelerating further in September. LongHorn Steakhouse also remained a notable offset with 6.8% comparable-calendar same-restaurant sales growth. The company reaffirmed its fiscal 2027 earnings outlook of $11.10-$11.35 per share, indicating that management does not view the first-quarter moderation as a lasting demand break.