[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (flat), and DJIA (-0.1%) are modestly improved as the top-weighted information technology sector (+0.2%) moves into modestly positive territory.

In particular, semiconductor stocks are beginning to shake their early weakness, with the PHLX Semiconductor Index (+0.6%) now trading higher. onsemi (ON 78.85, +6.42, +8.86%) is the best-performing S&P 500 component today.

Though not a component of the S&P 500, Taiwan Semiconductor Manufacturing (TSM 367.52, -7.58, -2.02%) trades lower after topping earnings estimates and guiding Q2 revenues above consensus.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (-0.2%) remain modestly lower amid mixed strength in the broader market and a sluggish early showing from mega-cap stocks.

Abbott Labs (ABT 97.22, -4.34, -4.27%) is one of the worst-performing S&P 500 components today after reporting solid Q1 results highlighted by strong revenue growth, though another round of lowered EPS guidance for Q2 and FY26 overshadowed the quarter and validated investor concerns following last quarter's guide-down. Abbott projects FY26 comparable sales growth of 6.5% to 7.5%. Of note, the EPS guidance includes $0.20 of dilution related to the recent acquisition of Exact Sciences, a cancer diagnostics company.

Abbott delivered a good quarter operationally, particularly with strong performance in Medical Devices and a healthy top-line beat, but the investment narrative remains clouded by ongoing earnings pressure. The repeated guidance cuts are difficult to overlook, even with the explanation of acquisition-related dilution and temporary headwinds like a weak respiratory season.

Other medical devices and diagnostics companies, such as Intuitive Surgical (ISRG 460.82, -7.54, -1.61%) and Danaher (DHR 194.73, -3.41, -1.72%), also trade lower, and the health care sector (-0.4%) is missing out on some rotational buying that pushes the consumer staples (+0.5%) and utilities (+0.4%) sectors higher.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.4%), and DJIA (-0.1%) are modestly lower shortly after the open, though opening gains pushed the S&P 500 and Nasdaq Composite to fresh record intraday highs.

Mega-cap tech has seen some of its previous momentum modestly stalled. The consumer discretionary sector (-1.0%) retreats with Tesla (TSLA 385.07, -6.88, -1.76%) and Amazon (AMZN 245.19, -3.31, -1.33%) moving lower, and the Vanguard Mega Cap Growth ETF (-0.4%) is down modestly.

The information technology sector (-0.4%) is also off to a weaker start. Software names continue to trade higher, with the iShares GS Software ETF up 0.9%, but relative weakness across chipmaker names pushes the PHLX Semiconductor Index 0.5% lower.

However, there is some rotational interest across the broader market that largely sat out yesterday's rally.

The consumer staples sector (+0.7%) is rebounding from recent weakness, with PepsiCo (PEP 157.70, +2.86, +1.84%) trading higher after topping earnings estimates and reaffirming its FY26 guidance.

The materials sector (+0.7%) is also bouncing back from a weaker showing yesterday, with particular strength across chemical names.

Meanwhile, the energy sector (+1.5%) holds the widest gain as crude oil trades $2.15 (+2.4%) higher at $90.28 per barrel.

The S&P 500 futures currently trade 11 points above fair value.

Industrial production declined 0.5% month-over-month in March (Briefing.com consensus: 0.1%) following an upwardly revised 0.7% increase (from 0.2%) in February. The capacity utilization rate was 75.7% (Briefing.com consensus: 76.4%), versus a downwardly revised 76.1% (from 76.3%) in February.

The key takeaway from the report is that the headline decline is not as bad as it looks when taking into account the large upward revision to industrial production in February, which effectively offsets the decline in March.

Equity futures point to a modestly higher open as the market looks to build on yesterday's record-setting gains. Big tech shows a positive premarket bias, with software names positioned to extend their recent rally. With the S&P 500 and Nasdaq Composite setting record highs in the prior session while the DJIA retreated, the focus now shifts to whether those gains will begin to broaden.

Just released, industrial production decreased 0.5% month-over-month in March (Briefing.com consensus: 0.1%) following an upwardly revised 0.7% increase in February (from 0.2%).

The capacity utilization rate was 75.7% (Briefing.com consensus: 76.4%), down from a downwardly revised prior reading of 76.1% (from 76.3%) in February.

The S&P 500 futures currently trade nine points above fair value.

Initial jobless claims for the week ending April 11 decreased by 11,000 to 207,000 (Briefing.com consensus: 215,000). Continuing jobless claims for the week ending April 4 increased by 31,000 to 1.818 million, but the four-week moving average of 1,813,250 is the lowest since June 1, 2024.

The key takeaway from the report is that it refutes any notion that the labor market is cracking in a way that will lock up discretionary spending. Initial jobless claims-a leading indicator-continue to run at historically low levels.

The Philadelphia Fed Index jumped to 26.7 in April (Briefing.com consensus: 12.7) from 18.1 in March. The dividing line between expansion and contraction for this series is 0.0, so the April reading implies manufacturing activity in the Philadelphia Fed region accelerated versus the prior month.

The key takeaway from the report is that price increases have become more widespread, yet the demand is still there, evidenced by a pickup in the new orders index to 33.0 from 8.6.

The S&P 500 futures currently trade ten points above fair value.

Equity indices in the Asia-Pacific region had a generally positive showing with Japan's Nikkei (+2.4%) rallying to a fresh record high while South Korea's Kospi (+2.2%) approached its record from late February. China's President Xi pledged to increase cooperation with Russia after meeting with Russia's Foreign Minister Lavrov. Russia's President Putin is expected to visit China in late May. China's Q1 GDP was in line with expectations, but Retail Sales growth in March decelerated to its slowest pace since December. Australia saw in-line job growth in March.

• In economic data:
  • China's Q1 GDP 1.3% qtr/qtr, as expected (last 1.2%); 5.0% yr/yr (expected 4.8%; last 4.5%). March Fixed Asset Investment 1.7% yr/yr (expected 1.9%; last 1.8%), March Industrial Production 5.7% yr/yr (expected 5.4%; last 6.3%), March House Prices -3.4% yr/yr (last -3.2%), and March Retail Sales 1.7% yr/yr (expected 2.4%; last 2.8%)
  • Australia's April MI Inflation Expectations 5.9% (last 5.2%). March Employment Change 17,900 (expected 19,100; last 49,700) and full Employment Change 52,500 (last -27,700). March Unemployment Rate 4.3%, as expected (last 4.3%), and March Participation Rate 66.8% (expected 66.9%; last 66.9%)

---Equity Markets---

• Japan's Nikkei: +2.4% 
• Hong Kong's Hang Seng: +1.7%
• China's Shanghai Composite: +0.7% 
• India's Sensex: -0.2%
• South Korea's Kospi: +2.2%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the green. The U.K. reported strong growth for February, prompting an opinion from Deutsche Bank that Q1 growth could be well ahead of expectations. However, Gilt yields are lower this morning, suggesting the market believes the strength is temporary. European Central Bank officials are reportedly skeptical about an April rate hike due to little evidence of knock-on effects from the energy price spike. The European Banking Authority noted that private credit does not pose a systemic risk to banks in the EU.

• In economic data:
  • Eurozone's March CPI 1.3% m/m (expected 1.2%; last 0.6%); 2.6% yr/yr (expected 2.5%; last 1.9%). March Core CPI 2.3% yr/yr, as expected (last 2.4%) o U.K.'s February GDP 0.5% m/m (expected 0.1%; last 0.1%), February Manufacturing Production -0.1% m/m (expected 0.3%; last 0.2%); -0.5% yr/yr (expected -0.3%; last 1.3%). February Industrial Production 0.5% m/m (expected 0.3%; last -0.1%); -0.4% yr/yr (expected -0.9%; last 0.5%). February Construction Output 1.0% m/m (expected -0.4%; last 0.5%); -1.0% yr/yr (expected -0.4%; last -1.9%). February trade deficit GBP18.79 bln (expected deficit of GBP19.40 bln; last deficit of GBP15.08 bln)
  • Italy's March CPI 0.5% m/m, as expected (last 0.7%); 1.7% yr/yr, as expected (last 1.5%)
  • Swiss March PPI 0.2% m/m (expected 0.5%; last -0.3%); -2.7% yr/yr (last -2.7%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.3%

The S&P 500 futures currently trade 11 points above fair value.

Just released, initial jobless claims for the week ending April 11 decreased by 11,000 to 207,000 (Briefing.com consensus: 215,000) from a downwardly revised 218,000 (from 219,000).

Continuing jobless claims for the week ending April 4 increased by 31,000 to 1.818 million, from a downwardly revised 1.787 million (from 1.794 million).

The Philadelphia Fed Index expanded to 26.7 in April (Briefing.com consensus 12.7), from a prior reading of 18.1.

Equity futures point to a modestly higher opening after yesterday's session resulted in fresh record highs for the S&P 500. The gains came on solid performances across mega-cap and tech names (the financials sector also charted gains with a few notable earnings moves), which saw the Nasdaq Composite notch record highs as well. At the same time, pressure in the broader market pushed the DJIA modestly lower.

The market continues to be supported by an easing geopolitical backdrop, which has stabilized oil prices around the $90 per barrel mark. Bloomberg reports that Pakistan is pushing for a longer ceasefire between the U.S. and Iran in hopes that a more permanent peace plan can be negotiated.

In addition to easing geopolitical volatility, a wave of AI partnerships and announcements has sprung forth recently, which has restored momentum to some of the market's largest components.

Q1 earnings season is also progressing with some solid reports from the big banks. Additionally, a few reports from outside of the financials sector are beginning to trickle in.

On the data front, the market will receive the weekly initial jobless claims report this morning (Briefing.com consensus 215K). Recent labor data still suggests a strong "low firing, low hiring" trend, though labor conditions are likely to come further into focus as rate cut expectations shift in response to oil-driven inflation stemming from the Iran conflict.

In corporate news:

• Abbot Laboratories (ABT 99.05, -2.51, -2.5%) beat EPS expectations by $0.01, beat revenue expectations, and guided Q2 and FY26 EPS below consensus.
• PepsiCo (PEP 156.48, +1.63, +1.1%) beat EPS expectations by $0.07, beat revenue expectations, and reaffirmed its FY26 EPS and revenue guidance.
• Tesla (TSLA 395.13, +3.18, +0.8%) CEO Elon Musk asks chip suppliers to move ahead with his Terafab chip making plan, according to Bloomberg.
• Travelers (TRV 295.00, -4.33, -1.5%) beat EPS expectations by $0.64, missed revenue expectations, and raised its quarterly dividend.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a generally positive showing with Japan's Nikkei (+2.4%) rallying to a fresh record high while South Korea's Kospi (+2.2%) approached its record from late February. Japan's Nikkei: +2.4%, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: +0.7%, India's Sensex: -0.2%, South Korea's Kospi: +2.2%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China's President Xi pledged to increase cooperation with Russia after meeting with Russia's Foreign Minister Lavrov.
• Russia's President Putin is expected to visit China in late May.
• China's Q1 GDP was in line with expectations, but Retail Sales growth in March decelerated to its slowest pace since December.
• Australia saw in-line job growth in March.

In economic data:

• China's Q1 GDP 1.3% qtr/qtr, as expected (last 1.2%); 5.0% yr/yr (expected 4.8%; last 4.5%). March Fixed Asset Investment 1.7% yr/yr (expected 1.9%; last 1.8%), March Industrial Production 5.7% yr/yr (expected 5.4%; last 6.3%), March House Prices -3.4% yr/yr (last -3.2%), and March Retail Sales 1.7% yr/yr (expected 2.4%; last 2.8%)
• Australia's April MI Inflation Expectations 5.9% (last 5.2%). March Employment Change 17,900 (expected 19,100; last 49,700) and full Employment Change 52,500 (last -27,700). March Unemployment Rate 4.3%, as expected (last 4.3%), and March Participation Rate 66.8% (expected 66.9%; last 66.9%)

Major European indices trade in the green. STOXX Europe 600: +0.3%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.2%.

In news:

• The U.K. reported strong growth for February, prompting an opinion from Deutsche Bank that Q1 growth could be well ahead of expectations.
• However, Gilt yields are lower this morning, suggesting the market believes the strength is temporary.
• European Central Bank officials are reportedly skeptical about an April rate hike due to little evidence of knock-on effects from the energy price spike.
• The European Banking Authority noted that private credit does not pose a systemic risk to banks in the EU.

In economic data:

• Eurozone's March CPI 1.3% m/m (expected 1.2%; last 0.6%); 2.6% yr/yr (expected 2.5%; last 1.9%). March Core CPI 2.3% yr/yr, as expected (last 2.4%) o U.K.'s February GDP 0.5% m/m (expected 0.1%; last 0.1%), February Manufacturing Production -0.1% m/m (expected 0.3%; last 0.2%); -0.5% yr/yr (expected -0.3%; last 1.3%). February Industrial Production 0.5% m/m (expected 0.3%; last -0.1%); -0.4% yr/yr (expected -0.9%; last 0.5%). February Construction Output 1.0% m/m (expected -0.4%; last 0.5%); -1.0% yr/yr (expected -0.4%; last -1.9%). February trade deficit GBP18.79 bln (expected deficit of GBP19.40 bln; last deficit of GBP15.08 bln)
• Italy's March CPI 0.5% m/m, as expected (last 0.7%); 1.7% yr/yr, as expected (last 1.5%)
• Swiss March PPI 0.2% m/m (expected 0.5%; last -0.3%); -2.7% yr/yr (last -2.7%)

[BRIEFING.COM] The stock market saw another day of strong gains in mega-cap and tech stocks, pushing the S&P 500 (+0.8%) to new intraday (7,026.24) and closing (7,022.95) highs. The tech-heavy Nasdaq Composite (+1.6%) notched an even wider gain, capturing a record closing high of its own.

Meanwhile, weakness in the broader market saw the DJIA (-0.2%) face a modest retreat as gains were largely confined to growth-oriented pockets of the market.

Equities remain supported by an improving geopolitical backdrop, as reports circulated that the U.S. and Iran may soon meet for another round of negotiations aimed at extending the current ceasefire. Importantly, oil prices remain stable, with crude oil futures settling today's session $0.01 lower (-0.01%) at $91.30 per barrel.

Gains were led by the top-weighted information technology sector (+2.1%), which extended its week-to-date gain to 5.6%. Software names led the advance, with Microsoft (MSFT 411.22, +18.11, +4.61%) a notable "magnificent seven" standout and packaged software names such as Datadog (DDOG 121.06, +10.49, +9.49%) and ServiceNow (NOW 94.19, +6.40, +7.29%) posting even wider gains. The iShares GS Software ETF finished 4.4% higher.

Semiconductor names were relative underperformers, though the PHLX Semiconductor Index (+0.2%) eked out a slight gain. Sandisk (SNDK 891.72, -52.74, -5.58%) deepened yesterday's reversal from a record high, while AI-infrastructure stocks such as KLA Corporation (KLAC 1748.11, -47.80, -2.66%) lagged after ASML (ASML 1481.77, -36.53, -2.41%) topped earnings estimates but lowered its Q2 guidance. Broadcom (AVGO 396.72, +15.94, +4.19%) still captured a nice gain after announcing an expanded partnership with Meta Platforms (META 673.10, +10.60, +1.60%) to support the company's rapidly scaling artificial intelligence compute infrastructure.

Meta's gain contributed to strength in the communication services sector (+1.1%), while the consumer discretionary sector (+1.4%) captured a similar gain as Tesla (TSLA 391.95, +27.75, +7.62%) moved sharply higher.

All told, the Vanguard Mega Cap Growth ETF advanced 1.9%, which contributed to the outperformance of the market-weighted S&P 500 (+0.8%) relative to the S&P 500 Equal Weighted Index (flat).

The financials sector (+0.8%) was the only other S&P 500 sector to notch a gain today, supported by a solid gain from Morgan Stanley (MS 191.60, +8.26, +4.51%) after topping earnings estimates and Robinhood Markets (HOOD 87.32, +8.23, +10.41%) finishing as one of the top-performing S&P 500 components after the SEC approved a proposal from FINRA to eliminate the current day trading margin requirements.

As for the broader market, losses were relatively modest in nature, though there were some notable underperformers.

The industrials sector (-1.2%) underperformed, with names such as Caterpillar (CAT 770.17, -24.08, -3.03%) and Carrier Global (CARR 58.55, -6.11, -9.45%) lagging. Recent Fed commentary suggests rates will remain unchanged for some time in response to oil-driven inflation, and the sector is particularly sensitive to higher rates given its capital-intensive nature and the reliance of its customers on financing for large equipment and infrastructure projects.

Elsewhere, the materials (-1.3%) sector saw a continuation of recent weakness, while the defensive utilities (-0.9%), health care (-0.7%), and consumer staples (-0.4%) underperformed amid the strength in growth stocks.

Outside of the S&P 500, the Russell 2000 (+0.3%) managed to capture a modest gain, while the S&P Mid Cap 400 (-0.3%) lagged.

Today's session marked an important milestone for the market as it looks to leave the Iran war in the rearview, with the S&P 500 eclipsing its previous record high from late January. Mega-cap and tech stocks are back in the driver's seat, which is important for index-level growth, especially since the group was off to a relatively subdued start to the year before the conflict in Iran prompted sharp losses. While the full impact of the surge in oil prices on inflation (and, in turn, rate cut expectations) remains to be seen, the market is back on firmer ground as Q1 earnings begin to ramp up.

U.S. Treasuries dipped on Wednesday, giving back the bulk of their Tuesday gains in an otherwise quiet midweek session. The 2-year note yield settled up two basis points to 3.77%, and the 10-year note yield settled up three basis points to 4.28%. 

• Russell 2000: +9.3% YTD
• S&P Mid Cap 400: +8.0% YTD
• Nasdaq Composite: +3.3% YTD
• S&P 500: +2.6% YTD
• DJIA: +0.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.8%; Prior -0.8%
• April Empire State Manufacturing 11.0 (Briefing.com consensus 0.0); Prior -0.2 March Import Prices 0.8%; Prior was revised to 0.9% from 1.3%
• March Import Prices ex-oil 0.6%; Prior was revised to 0.8% from 1.1%
• March Export Prices 1.6%; Prior was revised to 1.9% from 1.5% March Export Prices ex-ag. 1.7%; Prior was revised to 2.1% from 1.7%
• April NAHB Housing Market Index 34 (Briefing.com consensus 38); Prior 38