[BRIEFING.COM] Stocks finished broadly lower on Tuesday as a steep reversal across semiconductor and other momentum-oriented stocks outweighed gains in several defensive and commodity-linked areas. The S&P 500 (-0.7%) and Nasdaq Composite (-1.3%) suffered the largest declines, while the DJIA (-0.2%) fared considerably better thanks to its limited semiconductor exposure and strength in several of its defensive components.

Technology was at the center of the retreat. The information technology sector (-1.9%) finished at the bottom of the sector standings as the PHLX Semiconductor Index tumbled 5.0%, erasing yesterday's advance and then some. Memory stocks were among the weakest areas after rallying Monday, while pronounced selling across optical and electronic manufacturing names added to the pressure.

Fabrinet (FN 482.52, -116.06, -19.39%) plunged despite reporting better-than-expected Q4 results and issuing above-consensus Q1 guidance. Although Fabrinet is not an S&P 500 component, related names Lumentum (LITE 873.31, -95.59, -9.87%), Coherent (COHR 306.12, -45.10, -12.84%), and Teradyne (TER 404.29, -38.85, -8.77%) were among the index's worst performers, adding to the weakness across the semiconductor-related trade.

The selloff also spilled into industrial names tied to the semiconductor and AI infrastructure buildout, helping push the industrials sector (-1.5%) firmly lower. Separately, Caterpillar (CAT 840.83, -40.82, -4.63%) was another notable laggard after posting a solid gain yesterday.

Weakness among the market's largest growth stocks added to the pressure, with the Vanguard Mega Cap Growth ETF falling 1.1%. Meta Platforms (META 543.67, -25.30, -4.45%) was a notable laggard and weighed on the communication services sector (-0.6%) as opening arguments began in a child social-media addiction case.

Persistently high borrowing costs remained another obstacle for growth stocks, even as Treasury yields backed away from their highest levels of the morning. The rate backdrop also remained particularly relevant for housing after today's economic data showed a sharp decline in July housing starts and a larger-than-expected drop in pending home sales.

There were still meaningful pockets of strength. The health care (+1.6%) and consumer staples (+1.1%) sectors benefited from the rotation toward defensive stocks, helping the DJIA avoid the steeper losses seen elsewhere. Johnson & Johnson (JNJ 271.12, +8.75, +3.33%) and Coca-Cola (KO 88.82, +1.84, +2.12%) were among the positive contributors, while Amgen (AMGN 425.28, +5.90, +1.41%) rose to a fresh all-time high, extending its advance since the company's Q2 beat-and-raise earlier this month.

On the earnings front, Home Depot (HD 337.67, -0.21, -0.06%) gave up a firm gain following a solid Q2 report in which adjusted earnings, revenue, total comparable sales, and U.S. comps topped expectations. The company nevertheless maintained its FY27 outlook as management continued to point to challenging housing conditions and weakness in larger discretionary projects.

The energy sector (+1.8%) topped the sector standings as crude oil continued its recent climb amid renewed geopolitical uncertainty. WTI crude approached $85 per barrel as the market digested an overnight strike on a cargo ship in the Strait of Hormuz and President Trump's acknowledgment that another ceasefire with Iran is not being pursued. Crude ultimately settled $0.42 higher (+0.5%) at $84.88 per barrel.

The market's underlying tone also deteriorated as the session progressed. Early strength across several sectors had initially kept the broader market relatively insulated from the technology selloff, but the weakness eventually spread, leaving the Russell 2000 (-1.3%) and S&P MidCap 400 (-1.6%) with sizable losses alongside the major averages. Tuesday's session ultimately reflected a pronounced unwind in some of the market's strongest momentum trades, led by semiconductors and related AI infrastructure names. Defensive and energy stocks offered meaningful support, particularly to the DJIA, but elevated rates, higher oil prices, and increasingly broad selling left the market with a considerably weaker finish than the relatively narrow technology-driven decline seen earlier in the day.

U.S. Treasuries staged a modest rebound on Tuesday, but not before opening selling briefly lifted the 30-year yield to a fresh high for the year (5.326%). The 2-year note yield finished unchanged at 4.18%, and the 10-year note yield settled down two basis points to 4.71%. 

• Russell 2000: +21.6% YTD
• S&P Mid Cap 400: +16.6% YTD
• Nasdaq Composite: +13.1% YTD
• S&P 500: +12.4% YTD
• DJIA: +11.0% YTD

• July Housing Starts 1.239 mln (Briefing.com consensus 1.360 mln); Prior was revised to 1.415 mln from 1.427 mln, July Building Permits 1.443 mln (Briefing.com consensus 1.390 mln); Prior was revised to 1.374 mln from 1.367 mln
  • The key takeaway from the report, though, is the broad-based weakness in single-unit starts seen in July, which is a month that featured rising interest rates that increased the cost of financing.
• July Import Prices -0.4%; Prior was revised to -0.3% from 0.3%
• July Import Prices ex-oil 0.4%; Prior was revised to 0.1% from 0.4%
• July Export Prices -1.3%; Prior was revised to -0.7% from -0.6%
• July Export Prices ex-ag. -1.5%; Prior -0.7%
• July Industrial Production 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.1%, July Capacity Utilization 76.3% (Briefing.com consensus 76.3%); Prior was revised to 76.2% from 76.1%
  • The key takeaway from the report is that gains were registered by all three major industry groups, led by a 0.5% increase in utilities that stemmed from hot weather increasing air-conditioning use.
• July Pending Home Sales -2.3% (Briefing.com consensus 1.3%); Prior was revised to -4.8% from -5.4%

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.3%), and DJIA (-0.1%) remain in a familiar range as the market enters the final half hour of the session.

Fabrinet (FN 477.02, -121.56, -20.31%) is a notable post-earnings laggard despite beating expectations in its Q4 (Jun) report last night. Adjusted EPS of $4.10 came in nicely above expectations, while revenue growth continued to accelerate, rising 44.6% year-over-year to $1.32 billion. Fabrinet also guided Q1 nicely above expectations, with EPS of $4.10-4.25 and revenue of $1.375-1.425 billion. Overall, the underlying demand environment appears to remain quite strong despite the negative stock reaction. The company also reorganized its revenue reporting into Data Center, Communications Infrastructure, and Automotive, Industrial, and Other to better reflect the end markets it serves.

Fabrinet itself is not an S&P 500 component, but related optical and electronic manufacturing names such as Lumentum (LITE 872.75, -96.15, -9.92%) , Coherent (COHR 309.50, -41.72, -11.88%) , and Teradyne (TER 399.85, -43.29, -9.77%) are among the worst-performing S&P 500 components today.

[BRIEFING.COM] The major averages continue to track toward a lower finish as tech remains under firm pressure this afternoon.

The session has progressed with little in the way of geopolitical developments. Crude oil futures settled today's session $0.42 higher (+0.5%) at $84.88 per barrel, with the recent upswing in oil prices a headwind for a market that is also dealing with elevated Treasury yields and possible monetary tightening from the Fed.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.2%), and DJIA (-0.1%) remain little changed from previous levels as the session stretches on without any notable new catalysts.

Though the price action of Home Depot (HD 339.76, +1.88, +0.55%) has been choppy today, retailer names as a whole have shown resilience amid a busy week of earnings for the group. The State Street SPDR S&P Retail ETF is up 0.2% as TGT and Low both trade modestly higher ahead of their earnings reports tomorrow morning.

Target (TGT 152.80, +1.79, +1.19%) heads into its Q2 (Jul) report with sentiment elevated after a steady run higher and a recent push to a new 52-week high. The setup matters because investors are looking for proof that the turnaround seen in Q1 (Apr) can extend, especially as the company works through a major center-store grocery reset and broader merchandising changes.

Meanwhile, Lowe's (LOW 217.87, +2.06, +0.95%) heads into its Q2 report with a fairly balanced setup. The company has been posting steady, modest beats, but management previously warned that quarterly EPS should decline year-over-year as it invests competitively and absorbs acquisition and transportation costs. Rival Home Depot provided an encouraging industry read-through before today's open by beating Q2 earnings and revenue expectations and generating positive comparable sales, although its decision to reaffirm rather than raise FY27 guidance suggests the broader home-improvement recovery remains gradual and uncertain. With Lowes shares up about 4% since July 30, investors will likely want evidence that Pro, online, home services, and seasonal demand can offset continued DIY softness and preserve the company's full-year outlook.

[BRIEFING.COM] The 10-yr note yield, at 4.71%, has backed down from 4.74% seen earlier today. That isn't a big move, but it is fair to say that there is some equity risk aversion in it.

Stocks have struggled today, especially high-beta stocks, which have seen a momentum reversal triggered in part by rising bond yields around the globe. Japan's 10-yr note yield hit its highest level (2.954%) in more than 40 years, while Germany's 30-yr bund hit its highest level (3.779%) in 15 years.

The Invesco S&P 500 High Beta ETF (SPHB 146.76, -4.86, -3.21%) is a good proxy for the pressure high-beta stocks are feeling in today's trade; meanwhile, the relative strength of the Invesco S&P 500 Low Volatility ETF (SPLV 76.28, +0.54, +0.72%) reflects some rotational interest away from the momentum runners.

[BRIEFING.COM] Things don't look too great today at the headline level for the major indices, all of which are lower, plagued by losses in the semiconductor stocks and pockets of weakness in the mega-cap space.

Meta Platforms (META 548.82, -20.15, -3.54%) is among the notable mega-cap laggards, with opening statements being heard today in a case filed by 29 state attorneys general that, according to Bloomberg, alleges the company's Facebook and Instagram services were designed in a way "to encourage compulsive use among young users."

It is thought that an adverse ruling could possibly lead to a penalty up to as much as $1.4 trillion.

Elsewhere, things aren't as bad. Breadth is negative at the NYSE and Nasdaq, yet the equal-weighted S&P 500 is flat for the session, aided in particular by gains in the health care (+1.6%), energy (+1.5%), and consumer staples (+1.3%) sectors.

[BRIEFING.COM] The S&P 500 (-0.5%) and DJIA (-0.2%) are modestly lower shortly after midday, while the Nasdaq Composite (-1.0%) underperforms as elevated Treasury yields and a sharp retreat across semiconductor and other mega-cap technology stocks pressure the market.

Longer-term Treasury yields remain near multi-year highs, creating a challenging backdrop for growth stocks even as expectations for additional near-term Fed tightening have eased following last week's inflation reports. The elevated-rate environment is particularly evident across technology and other higher-duration areas of the market, while this morning's weak housing data provided another reminder of the pressure higher borrowing costs continue to exert on the economy.

The information technology sector (-1.9%) holds the widest loss as the PHLX Semiconductor Index tumbles 5.3%, reversing yesterday's strong showing. Memory stocks are among the notable laggards, while Coherent (COHR 309.55, -41.67, -11.86%) is the weakest S&P 500 component. The weakness extends across much of the semiconductor-related trade, with electrical equipment names contributing to the industrials sector's (-1.2%) underperformance, while Caterpillar (CAT 839.85, -41.80, -4.74%) also moves sharply lower afer a nice gain yesterday.

Mega-cap stocks elsewhere are also under pressure, leaving the Vanguard Mega Cap Growth ETF down 0.8%. Meta Platforms (META 550.62, -18.35, -3.23%) is a notable laggard and weighs on the communication services sector (-0.3%) as opening arguments in a child social-media addiction case are set to begin today. Still, today's weakness remains concentrated heavily in technology and other momentum-oriented areas rather than reflecting an indiscriminate market selloff.

Seven S&P 500 sectors trade higher even as decliners outpace advancers by roughly 3-to-2 on the NYSE and 5-to-3 on the Nasdaq. The S&P 500 Equal Weighted Index (+0.1%) holds on to a slight gain.

Defensive groups are providing some of the strongest leadership. The health care (+1.7%) and consumer staples (+1.4%) sectors are among the top performers, with Johnson & Johnson (JNJ 271.16, +8.79, +3.35%), Amgen (AMGN 425.32, +5.94, +1.42%), and Coca-Cola (KO 88.65, +1.67, +1.92%) helping the DJIA hold a considerably narrower loss than the Nasdaq. The DJIA also has relatively limited exposure to today's semiconductor selloff outside of NVIDIA (NVDA 220.40, -4.60, -2.05%).

Home Depot (HD 339.89, +2.01, +0.60%) is another positive contributor after reporting a solid Q2 beat, with adjusted earnings, revenue, total comparable sales, and U.S. comps all exceeding expectations. The company nevertheless reaffirmed its FY27 outlook as management remains cautious about housing conditions and larger discretionary projects. That caution was underscored by this morning's housing data, which showed a sharp decline in July housing starts and a larger-than-expected drop in pending home sales.

The energy sector (+1.4%) is another standout as crude oil rises modestly amid continued uncertainty surrounding the U.S.-Iran conflict. President Trump said there are currently no talks scheduled with Iran and that the U.S. naval blockade remains in effect, while maintaining that the Strait of Hormuz is open and operating.

Overall, elevated long-term interest rates and a sharp reversal in semiconductor stocks are weighing heavily on the major averages, particularly the Nasdaq. However, strength across seven S&P 500 sectors and pronounced leadership from defensive groups have kept the broader market from matching the magnitude of the selloff in technology.

Reviewing today's data:

• July Housing Starts 1.239 mln (Briefing.com consensus 1.360 mln); Prior was revised to 1.415 mln from 1.427 mln, July Building Permits 1.443 mln (Briefing.com consensus 1.390 mln); Prior was revised to 1.374 mln from 1.367 mln
  • The key takeaway from the report, though, is the broad-based weakness in single-unit starts seen in July, which is a month that featured rising interest rates that increased the cost of financing.
• July Import Prices -0.4%; Prior was revised to -0.3% from 0.3%
• July Import Prices ex-oil 0.4%; Prior was revised to 0.1% from 0.4%
• July Export Prices -1.3%; Prior was revised to -0.7% from -0.6%
• July Export Prices ex-ag. -1.5%; Prior -0.7%
• July Industrial Production 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.1%, July Capacity Utilization 76.3% (Briefing.com consensus 76.3%); Prior was revised to 76.2% from 76.1%
  • The key takeaway from the report is that gains were registered by all three major industry groups, led by a 0.5% increase in utilities that stemmed from hot weather increasing air-conditioning use.
• July Pending Home Sales -2.3% (Briefing.com consensus 1.3%); Prior was revised to -4.8% from -5.4%

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.1%), and DJIA (-0.1%) continue to trade in a relatively stable range.

Apple (AAPL 310.43, +4.84, +1.58%) is a mega-cap standout today, helping somewhat soften losses in the information technology sector (-2.0%) amid a significant selloff across semiconductor stocks. The company announced changes to its business terms for apps in the European Union, following close collaboration with the European Commission. These changes resolve Apple's disagreements with the Commission over business terms and alternative distribution. They also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms. Developers can sign the new terms today, and changes will go into effect on October 1.

[BRIEFING.COM] The major averages remain little changed from previous levels at midday.

The Wall Street Journal reported that KKR (KKR 107.65, -1.18, -1.08%) recently bid $9 billion for UGI Corp (UGI 39.09, +4.00, +11.40%), offering to buy the natural gas and electricity distribution company for $42.50 per share.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.3%), and DJIA (-0.2%) are lower today as a sharp retreat across semiconductor and other mega-cap technology stocks has turned an otherwise quiet session into a more considerable decline.

The PHLX Semiconductor Index is down 5.6%, weighing heavily on the information technology sector (-2.1%). Memory names such as Sandisk (SNDK 1643.60, -143.24, -8.02%) are particularly weak, giving back some of yesterday's solid gains.

Meanwhile, the defensive health care (+1.6%) and consumer staples (+1.5%) sectors are outperforming amid today's weakness in the momentum trade, with Coca-Cola (KO 88.68, +1.70, +1.95%) and Amgen (AMGN 423.45, +4.07, +0.97%) among the names helping the DJIA outperform the other major averages.

The energy sector (+1.5%) is another standout as oil prices move higher. Treasury yields are relatively stable today but remain elevated, providing another headwind for growth stocks.

Outside the S&P 500, the Russell 2000 (-1.0%) and S&P MidCap 400 (-1.2%) are also firmly lower.

[BRIEFING.COM] The major averages remain little changed from previous levels. 

Home Depot (HD 343.88, +6.00, +1.78%) holds a nice gain after reporting a solid Q2 beat, with adjusted earnings, revenue, total comparable sales, and U.S. comps all exceeding expectations.The company decied to reaffirm FY27 guidance despite the stronger quarter, as management cited frozen housing conditions, consumer uncertainty, rising input costs, and persistent weakness in larger discretionary projects. Still the quarter provides better evidence that Home Depot can gain share and generate positive comps without help from a housing recovery, but the composition of growth remains important. Higher ticket, acquisitions, digital expansion, and Pro initiatives are carrying more of the load while customer transactions and financing-dependent remodeling activity remain soft.

That dynamic is particularly relevant following another weak batch of housing data this morning, as July housing starts fell sharply and pending home sales declined more than expected.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.1%), and DJIA (-0.1%) have moved in a relatively stable range so far this morning.

With the DJIA's exposure to the semiconductor trade limited to NVIDIA (NVDA 220.04, -4.97, -2.21%), the index holds a much narrower loss than its peers. A solid showing from healthcare names such as Johnson & Johnson (JNJ 269.12, +6.76, +2.57%) and Amgen (AMGN 423.71, +4.33, +1.03%) add support, while Coca-Cola (KO 88.35, +1.37, +1.58%) is a standout for consumer staples stocks today.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.1%), and DJIA (-0.1%) are lower this morning as pronounced weakness in semiconductor names weighs against a broader market that is holding up relatively well despite another rise in oil prices.

The information technology sector (-1.9%) is firmly lower, with the PHLX Semiconductor Index (-5.0%) giving back yesterday's gain and much more. Coherent (COHR 316.00, -35.22, -10.03%) is the worst-performing S&P 500 component, while memory names are also sharply lower after a solid showing yesterday.

Mega-cap tech outside of the information technology sector also remains under pressure, with Meta Platforms (META 547.47, -21.50, -3.78%) facing another steep loss ahead of a child social media trial that is slated to begin opening arguments today. The Vanguard Mega Cap Growth ETF is down 1.1%.

Meanwhile, the S&P 500 Equal Weighted Index (+0.1%) clings to a slight gain as much of the broader market recovers from a weak showing yesterday. The defensive health care (+1.7%), consumer staples (+1.0%), and utilities (+0.8%) sectors are standouts amid the weakness in technology.

The energy sector (+1.1%) also moves higher amid a bump in oil prices, with crude oil currently up $0.60 (+0.7%) to $84.34 per barrel.

Industrial production increased 0.2% month-over-month in July (Briefing.com consensus: 0.3%) following an upwardly revised 0.3% increase (from 0.1%) in June. The capacity utilization rate was 76.3% (Briefing.com consensus: 76.3%) versus an upwardly revised 76.2% (from 76.1%) in June. Total industrial production was up 1.1% year-over-year. The capacity utilization rate was 3.1 percentage points below its long-run average.

The key takeaway from the report is that gains were registered by all three major industry groups, led by a 0.5% increase in utilities that stemmed from hot weather increasing air-conditioning use.

Just released, pending home sales decreased 2.3% in July (Briefing.com consensus 1.3%) from an upwardly revised 4.8% decrease (from-5.4%).

Equity futures continue to point to a lower opening this morning as semiconductor stocks retreat after yesterday's highs against a backdrop of higher oil prices and Treasury yields.

Housing starts declined 12.4% month-over-month in July to a seasonally adjusted annual rate of 1.239 million (Briefing.com consensus: 1.360 million). Single-unit starts were down in every region of the country. Building permits increased 5.0% month-over-month to a seasonally adjusted annual rate of 1.443 million (Briefing.com consensus: 1.390 million). The good news there is that permits for single units-a leading indicator-were up 2.5% month-over-month.

The key takeaway from the report, though, is the broad-based weakness in single-unit starts seen in July, which is a month that featured rising interest rates that increased the cost of financing.

Just released, industrial production increased 0.2% month-over-month in July (Briefing.com consensus: 0.3%) following an upwardly revised 0.3% increase in June (from 0.1%).

The capacity utilization rate was 76.3% (Briefing.com consensus: 76.3%), up from an upwardly revised 76.2% (from 76.1%) in June.

The S&P 500 futures currently trade 34 points below fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-1.6%) approaching a five-week high before reversing. Investor sentiment was hurt by news that a ship traversing the Strait of Hormuz was hit by a missile. South Korea is reportedly discussing military cooperation with U.S. forces in the Middle East. There are growing concerns that China's consumer subsidies pulled past demand forward rather than create sustainable growth. China's National Bureau of Statistics expects CPI to continue increasing mildly in the second half.

• In economic data:
  • Australia's August Westpac Consumer Sentiment 6.0% (last 4.1%)

---Equity Markets---

• Japan's Nikkei: -2.5%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: +0.2% 
• India's Sensex: -0.6%
• South Korea's Kospi: -1.6%
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade on a mostly lower note after it was reported that a ship traversing the Strait of Hormuz was hit by a missile. Technology stocks are under pressure while energy names outperform. European Central Bank Chief Economist Lane said that inflation is expected to remain around 3.0% for the remainder of the year. Germany's ZEW Economic Sentiment for August (34.2; expected 30.1) beat expectations, reflecting benefit from infrastructure spending.

• In economic data:
  • Eurozone's August ZEW Economic Sentiment 31.4 (expected 25.9; last 23.4)
  • Germany's August ZEW Economic Sentiment 34.2 (expected 30.1; last 26.3) and ZEW Current Conditions -61.1 (expected -68.8; last -77.6)
  • U.K.'s June three-month Employment Change 83,000 (last 147,000), June Average Earnings Index + Bonus 4.1% yr/yr (expected 4.0%; last 4.4%), June Unemployment Rate 4.9% (expected 4.8%; last 4.9%). July Claimant Count Change -11,000 (expected 16,500; last -6,400). Q1 Labor Productivity 0.5% (expected -0.5%; last -0.7%)

---Equity Markets---

• STOXX Europe 600: -0.5%
• Germany's DAX: -0.4%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.6%
• Spain's IBEX 35: +0.3%

Major European indices trade on a mostly lower note after it was reported that a ship traversing the Strait of Hormuz was hit by a missile. Technology stocks are under pressure while energy names outperform. European Central Bank Chief Economist Lane said that inflation is expected to remain around 3.0% for the remainder of the year. Germany's ZEW Economic Sentiment for August (34.2; expected 30.1) beat expectations, reflecting benefit from infrastructure spending.

• In economic data:
  • Eurozone's August ZEW Economic Sentiment 31.4 (expected 25.9; last 23.4)
  • Germany's August ZEW Economic Sentiment 34.2 (expected 30.1; last 26.3) and ZEW Current Conditions -61.1 (expected -68.8; last -77.6)
  • U.K.'s June three-month Employment Change 83,000 (last 147,000), June Average Earnings Index + Bonus 4.1% yr/yr (expected 4.0%; last 4.4%), June Unemployment Rate 4.9% (expected 4.8%; last 4.9%). July Claimant Count Change -11,000 (expected 16,500; last -6,400). Q1 Labor Productivity 0.5% (expected -0.5%; last -0.7%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -0.5%
• U.K.'s FTSE 100: +0.3%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.5%
• Spain's IBEX 35: +0.4%

The S&P 500 futures currently trade 36 points below fair value.

Just released, housing starts decreased 12.4% month-over-month in July to a seasonally adjusted annual rate of 1.239 million units (Briefing.com consensus: 1.360 million).

Building permits-a leading indicator-increased 5.0% month-over-month to a seasonally adjusted annual rate of 1.443 million (Briefing.com consensus: 1.390 million).

Import prices decreased 0.4% in July following a downwardly revised 0.3% decrease in June (from 0.3%).

Excluding oil, import prices decreased 0.4% after a downwardly revised 0.1% increase (from 0.4%) in June.

Export prices decreased 1.3% in July on the heels of a 0.7% decrease (from -0.6%) in June.

Excluding agriculture, export prices decreased 1.5%, after falling 0.7% in June.

Equity futures point to a lower opening this morning as oil prices and Treasury yields rise in reaction to escalating tensions in the Middle East. CNBC reports that a ship was attacked while traversing the Strait of Hormuz, and President Trump has ruled out extending a ceasefire with Iran.

Rising oil prices contributed to the lower finish of the major averages yesterday, with stocks steadily retreating through the afternoon as crude surged. Semiconductor stocks, which provided an important counterweight to the broad weakness and helped limit losses at the index level, are moving firmly lower in the premarket.

A small batch of earnings and relatively quiet corporate news flow largely keeps the market focused on macro pressures.

There are several economic data releases on the calendar this morning, including July Housing Starts (Briefing.com consensus 1.360 million) and Building Permits (Briefing.com consensus 1.390 million).

In corporate news:

• Airlines debate cutting ticket prices as jet fuel prices ease, according to Financial Times.
• Home Depot (HD 342.25, +4.37, +1.3%) beat EPS expectations by $0.19, beat revenue expectations, and reaffirmed its FY27 EPS and revenue guidance.
• Meta Platforms (META 563.29, -5.68, -1.0%) social media addiction trial begins today, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-1.6%) approaching a five-week high before reversing. Japan's Nikkei: -2.5%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: +0.2%, India's Sensex: -0.6%, South Korea's Kospi: -1.6%, Australia's ASX All Ordinaries: -0.1%.

In news:

• Investor sentiment was hurt by news that a ship traversing the Strait of Hormuz was hit by a missile.
• South Korea is reportedly discussing military cooperation with U.S. forces in the Middle East.
• There are growing concerns that China's consumer subsidies pulled past demand forward rather than create sustainable growth.
• China's National Bureau of Statistics expects CPI to continue increasing mildly in the second half.

In economic data:

• Australia's August Westpac Consumer Sentiment 6.0% (last 4.1%)

Major European indices trade on a mostly lower note after it was reported that a ship traversing the Strait of Hormuz was hit by a missile. STOXX Europe 600: -0.5%, Germany's DAX: -0.4%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.4%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: +0.3%.

In news:

• Technology stocks are under pressure while energy names outperform.
• European Central Bank Chief Economist Lane said that inflation is expected to remain around 3.0% for the remainder of the year.
• Germany's ZEW Economic Sentiment for August (34.2; expected 30.1) beat expectations, reflecting benefit from infrastructure spending.

In economic data:

• Eurozone's August ZEW Economic Sentiment 31.4 (expected 25.9; last 23.4)
• Germany's August ZEW Economic Sentiment 34.2 (expected 30.1; last 26.3) and ZEW Current Conditions -61.1 (expected -68.8; last -77.6)
• U.K.'s June three-month Employment Change 83,000 (last 147,000), June Average Earnings Index + Bonus 4.1% yr/yr (expected 4.0%; last 4.4%), June Unemployment Rate 4.9% (expected 4.8%; last 4.9%). July Claimant Count Change -11,000 (expected 16,500; last -6,400). Q1 Labor Productivity 0.5% (expected -0.5%; last -0.7%)

[BRIEFING.COM] Stocks started the week on a weaker note, with an afternoon surge in oil prices adding to selling pressure that had already been evident across much of the broader market. The S&P 500 (-0.5%), Nasdaq Composite (-0.3%), and DJIA (-0.5%) all finished lower, while strength in semiconductor stocks helped limit the Nasdaq's decline.

The market had already displayed a negative bias beneath the surface during the morning, but losses widened as geopolitical concerns pushed oil prices higher in the afternoon. President Trump told reporters that he does not think Iran will agree to the deal he views as necessary ahead of today's expiration of the 60-day ceasefire agreement between the U.S. and Iran. WTI crude oil futures settled $2.06 higher (+2.5%) at $84.46 per barrel.

The late climb in oil left the energy sector (+0.9%) as the only S&P 500 sector to finish higher and overshadowed what had been a strong showing from semiconductor stocks earlier in the session. The PHLX Semiconductor Index (+1.6%) still outperformed considerably, though it surrendered a sizable portion of an earlier gain that had topped 2.5%. Memory stocks remained a bright spot, with Sandisk (SNDK 1786.85, +145.74, +8.88%) extending its recent surge after Commerce Secretary Howard Lutnick said the Trump administration does not want Apple (AAPL 305.59, -0.34, -0.11%) purchasing Chinese memory chips. Applied Materials (AMAT 535.31, +28.13, +5.55%) also rebounded sharply after moving lower on Friday despite delivering a strong beat-and-raise earnings report.

The fading semiconductor rally, combined with weakness across other large technology names, ultimately pulled the information technology sector (-0.2%) into negative territory. Continued enthusiasm surrounding the AI trade provided some support after Anthropic reported a massive jump in revenue, while outside the sector, SpaceX (SPCX 146.23, +6.23, +4.45%) extended its recovery from post-IPO lows following regulatory filings showing newly disclosed positions from NVIDIA (NVDA 225.01, -0.15, -0.07%) and Advanced Micro Devices (AMD 506.00, -8.39, -1.63%).

Weakness remained broad elsewhere. The communication services sector (-1.5%) was among the worst performers as Meta Platforms (META 568.97, -20.88, -3.54%) remained under pressure ahead of opening arguments Tuesday in a child social-media addiction case.

The consumer staples sector (-1.5%) matched that loss amid weakness in alcoholic beverage names. The consumer discretionary (-1.0%) and financials (-1.0%) sectors also lagged. Apparel and homebuilder stocks weighed on consumer discretionary, with NIKE (NKE 39.09, -1.64, -4.03%) falling to its lowest level since late 2014. Homebuilders faced an additional headwind from elevated longer-term Treasury yields after the 30-year yield reached a fresh 19-year high during the session.

The weakness extended beyond the large-cap benchmarks, with the Russell 2000 (-0.4%) and S&P MidCap 400 (-0.3%) also finishing lower.

Monday's session ultimately highlighted the market's inability to capitalize on another strong showing from semiconductor and AI-related stocks. Chip strength provided an important counterweight through much of the day, but broad sector weakness and the afternoon jump in oil prices as the U.S.-Iran ceasefire expired proved too much to overcome, leaving the major averages near their lows at the close.

U.S. Treasuries began the week with steady selling in longer tenors, driving the 30-year note yield to a fresh high for the year while the front end resisted, but also eventually gave in to the pressure. The 2-year note yield settled up one basis point to 4.18%, the 10-year note yield settled up three basis points to 4.72%, and the 30-year note yield settled up four basis points to 5.31%. 

• Russell 2000: +23.2% YTD
• S&P Mid Cap 400: +18.5% YTD
• Nasdaq Composite: +14.6% YTD
• S&p 500: +13.1% YTD
• DJIA: +11.2% YTD

Reviewing today's data:

• August Empire State Manufacturing 20.6 (Briefing.com consensus 11.0); Prior 15.6
• August NAHB Housing Market Index 35 (Briefing.com consensus 34); Prior 34