Stocks faced broad pressure today, which negated a chunk of yesterday's gains across the S&P 500 (-0.3%), Nasdaq Composite (-0.3%), and DJIA (-0.5%). The major averages will enter the final session of a holiday-abbreviated week mostly higher, though within close proximity to their flatlines. 

While losses throughout the broader market were relatively modest, they were widespread. Eight S&P 500 sectors logged a lower finish, including several of yesterday's outperformers. 

The financials sector (-0.9%) logged the worst finish, facing a combination of broad weakness and pressure across asset manager names such as Apollo Global Management (APO 118.34, -7.02, -5.60%) and Blackstone (BX 125.76, -7.14, -5.37%). The group faced pressure after Financial Times reported that Blue Owl Capital (OWL 11.58, -0.73, -5.93%) 11.12, -1.20, -9.71%) has halted redemptions in its private retail debt fund, though the company has since refuted the report. 

The top-weighted information technology sector (-0.5%) was another relative laggard after outperforming yesterday. EPAM Systems (EPAM 139.16, -28.53, -17.01%) was a laggard following its earnings, though it was the only real negative outlier in a sector that traded mostly modestly lower. The sector's mega-cap components took a step back, with Apple (AAPL 260.58, -3.77, -1.43%) a "magnificent seven" laggard.

The consumer discretionary sector (-0.5%) logged a similar retreat with several notable earnings moves in the mix. eBay (EBAY 84.75, +2.57, +3.13%) was a standout, while Pool (POOL 218.36, -36.97, -14.48%), Carvana (CVNA 332.86, -28.67, -7.93%), and Booking Holdings (BKNG 4007.45, -262.54, -6.15%) moved sharply lower. 

Meanwhile, the energy sector (+0.6%) notched another higher finish as crude oil futures settled today's session $1.43 higher (+2.2%) at $66.42 per barrel. Tensions between the U.S. and Iran remain high, with The Washington Post reporting this afternoon that President Trump appears ready to order an attack on Iran.

The prospect of a potential military conflict saw solid gains across some defense names today, including Huntington Ingalls (HII 442.93, +18.04, +4.25%) and Lockheed Martin (LMT 666.59, +16.78, +2.58%). The iShares DJ Aerospace ETF finished 1.3% higher, contributing to strength within the industrials sector (+0.8%). 

The sector was also supported by a strong gain in Deere (DE 662.00, +68.73, +11.58%) after the company topped earnings estimates. 

Elsewhere, the utilities sector (+1.1%) captured the widest gain, attracting some rotational interest amid a slower day for growth stocks. 

However, the strength did not translate to other defensive sectors, as the health care sector (-0.3%) faced broad pressure while the consumer staples sector (-0.4%) lagged as cautious guidance saw Walmart (WMT 124.87, -1.75, -1.38%) move lower following its earnings release. 

Outside of the S&P 500, the Russell 2000 (+0.2%) and S&P Mid Cap 400 (flat) reclaimed their unchanged levels late in the session after trading with modest losses for most of the day. 

All told, today's section reflected some caution in the market after a strong performance yesterday, with earnings and geopolitical headlines taking center stage as the market awaits its next catalyst. The market will not have to wait long, as tomorrow morning will bring the release of the December Personal Income/Outlays report, which includes the PCE Price Index (Briefing.com consensus 0.3%), the Fed's preferred inflation gauge. 

While the data is somewhat dated, lingering inflation concerns and generally favorable signals from the economy have caused recent Fed commentary to lean hawkish, meaning that a hotter-than-anticipated print could further delay the market's expectations of its next rate cut. 

U.S. Treasuries finished Thursday on a flat note after overcoming some early softness that briefly lifted yields back to their highs from Friday. The 2-year note yield settled up one basis point at 3.47%, and the 10-year note yield finished unchanged at 4.08%. 

• S&P Mid Cap 400: +8.5% YTD
• Russell 2000: +7.4% YTD
• DJIA: +2.8% YTD
• S&P 500: +0.2% YTD
• Nasdaq Composite: -2.4% YTD

Reviewing today's data:

• Weekly Initial Claims 206K (Briefing.com consensus 225K); Prior was revised to 229K from 227K, Weekly Continuing Claims 1.869 mln; Prior was revised to 1.852 mln from 1.862 mln
  • The key takeaway from the report is its confirmatory signal that the labor market is still operating in a low-firing environment.
• February Philadelphia Fed Index 16.3 (Briefing.com consensus 8.5); Prior 12.6
• December Trade Balance -$70.3 bln (Briefing.com consensus -$55.8 bln); Prior was revised to -$53.0 bln from -$56.8 bln
  • The key takeaway from the report is that the wider deficit will detract from Q4 GDP growth estimates.
• January Pending Home Sales -0.8% (Briefing.com consensus 1.4%); Prior was revised to -7.4% from -9.3%
• December Adv. Intl. Trade in Goods $98.5 bln; Prior $82.8 bln
• December Adv. Retail Inventories 0.0%; Prior -0.5%
• December Adv. Wholesale Inventories 0.2%; Prior 0.2%
• December Lending Economic Index -0.2%; Prior -0.3%