[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.2%), and DJIA (+0.7%) are mostly lower as chipmaker names extend their recent losses, while the broader market trends higher.

The information technology sector (-2.5%) is one of just two S&P 500 sectors that trade lower this morning, pressured by a 5.4% slide in the PHLX Semiconductor Index. Memory names, AI-infrastructure names, and large chipmakers are all under pressure, while Corning (GLW 116.34, -27.02, -18.85%) holds the widest loss after earnings.

Meanwhile, Coca-Cola (KO 89.38, +5.32, +6.32%) and Sherwin-Williams (SHW 352.74, +25.47, +7.78%) trade sharply higher after earnings, contributing to the outperformance of the DJIA. The S&P 500 Equal Weighted Index (+0.7%) also outperforms this morning, highlighting that weakness is concentrated in large technology stocks.

Just released, the Conference Board's Consumer Confidence Index decreased to 90. 8 in July (Briefing.com consensus 92.1) from a revised 92.2 (from 91.2) in June.

The stock market remains on track for a mixed open as continued weakness across semiconductor names offsets strength in the broader market that follows a solid batch of earnings reports and optimism on the geopolitical front.

The S&P Case-Shiller Home Price Index increased 1.6% in May (Briefing.com consensus 1.3%) from an upwardly revised prior reading of 1.2% (from 1.1%).

The FHFA Housing Price Index increased 0.3% in May (Briefing.com consensus 0.0%), from a prior decrease of 0.1%.

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

Equity indices in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-10.8%) plunging to its lowest level since mid-April with SK Hynix falling nearly 15% ahead of tomorrow's release of its quarterly results. South Korean regulators are expected to announce deposit requirements for ETF purchases on Friday. There was some concern about China's reported mass production of Deep Ultraviolet chip fabrication tools, though that technology is still behind the latest Extreme Ultraviolet technology used by ASML. Japan's Prime Minister Takaichi plans to lower the food tax to 1% from 8% and is likely to raise the minimum wage.

• In economic data:
  • Japan's May BoJ Core CPI 2.7% yr/yr (last 2.7%)
  • South Korea's July Consumer Confidence 106.8 (last 106.6)

---Equity Markets---

• Japan's Nikkei: -4.0%
• Hong Kong's Hang Seng: +0.4%
• China's Shanghai Composite: -1.2%
• India's Sensex: -0.1%
• South Korea's Kospi: -10.8%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade on a mostly lower note. The Swiss National Bank is expected to keep its rate at zero until the end of next year. Several large companies reported their results with Mercedes beating expectations but trimming its guidance. Military contractor Safran raised its guidance for the year while Orange and Barclays beat their quarterly expectations and raised their outlooks. Unilever reported strong volume growth for the quarter.

• In economic data:
  • France's July Consumer Confidence 86 (expected 85; last 84)
  • Italy's non-EU trade surplus EUR2.55 bln (last surplus of EUR3.84 bln)
  • Spain's June Retail Sales 0.5% yr/yr (last 1.3%) and Q2 Unemployment Rate 9.87% (expected 10.1%; last 10.8%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.4%
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.7%
• Spain's IBEX 35: -0.2%

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

Just released, the advance reading for the July goods trade balance came in at -$101.5 billion, up from the prior reading of -$105.8 billion.

The advance reading for June retail inventories was flat, from a prior increase of 0.6%.

June advance Wholesale Inventories increased 0.3%, from a prior increase of 0.3%.

Equity futures point to a mixed open this morning as continued weakness across the semiconductor space weighs against further easing in oil prices and a relatively solid batch of earnings reports. Similar factors saw the major averages finish mixed yesterday, though strength in the broader market remained firm under the surface.

WTI crude oil is currently down $0.81 (-1.0%) to $81.80 per barrel, with The Wall Street Journal reporting that Iran and Oman are discussing an agreement to reopen the Strait of Hormuz, hoping an arrangement would restart peace talks between the U.S. and Iran.

Meanwhile, chipmaker names move lower again in the premarket after an intense selloff in the Korean market overnight. Bloomberg also reports that increased competition from Chinese chipmakers adds pressure to the group as investors assess the sustainability of the AI-buildout spending boom.

In addition to a hefty batch of earnings reports, the market will also receive several economic data releases this morning, including the Consumer Confidence reading for July at 10:00 a.m. ET (Briefing.com consensus 92.1).

In corporate news:

• Coca-Cola (KO 86.92, +2.85, +3.4%) beat EPS expectations by $0.04, beat revenue expectations, and raised its FY26 organic revenue growth and comparable EPS growth guidance.
• Corning (GLW 120.80, -22.56, -15.7%) beat EPS expectations by $0.02, beat revenue expectations, and guided Q3 EPS and revenues in-line.
• Sherwin-Williams (SHW 347.87, +20.60, +6.3%) beat EPS expectations by $0.18, beat revenue expectations, and guided Q3 revenues above consensus while also raising its FY26 EPS and revenue guidance.

Reviewing overnight devlopments

Equity indicies in the Asia-Pacific region ended Tuesday on a mixed note with South Korea's Kospi (-10.8%) plunging to its lowest level since mid-April with SK Hynix falling nearly 15% ahead of tomorrow's release of its quarterly results. Japan's Nikkei: -4.0%, Hong Kong's Hang Seng: +0.4%, China's Shanghai Composite: -1.2%, India's Sensex: -0.1%, South Korea's Kospi: -10.8%, Australia's ASX All Ordinaries: +0.5%.

In news: 

• South Korean regulators are expected to announce deposit requirements for ETF purchases on Friday.
• There was some concern about China's reported mass production of Deep Ultraviolet chip fabrication tools, though that technology is still behind the latest Extreme Ultraviolet technology used by ASML.
• Japan's Prime Minister Takaichi plans to lower the food tax to 1% from 8% and is likely to raise the minimum wage.

In economic data:

• Japan's May BoJ Core CPI 2.7% yr/yr (last 2.7%)
• South Korea's July Consumer Confidence 106.8 (last 106.6)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.6%, France's CAC 40: +0.3%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: +0.2%.

In news:

• The Swiss National Bank is expected to keep its rate at zero until the end of next year.
• Several large companies reported their results with Mercedes beating expectations but trimming its guidance.
• Military contractor Safran raised its guidance for the year while Orange and Barclays beat their quarterly expectations and raised their outlooks.
• Unilever reported strong volume growth for the quarter.

In economic data:

• France's July Consumer Confidence 86 (expected 85; last 84)
• Italy's non-EU trade surplus EUR2.55 bln (last surplus of EUR3.84 bln)
• Spain's June Retail Sales 0.5% yr/yr (last 1.3%) and Q2 Unemployment Rate 9.87% (expected 10.1%; last 10.8%)

[BRIEFING.COM] After opening firmly higher, stocks surrendered most of their early gains as another bout of weakness across semiconductor stocks offset broad strength fueled by a sharp decline in oil prices. The S&P 500 finished little changed, while the Nasdaq Composite slipped 0.2% and the DJIA gained 0.5%.

Semiconductor stocks remained under pressure throughout the session despite improved sentiment surrounding Asian technology stocks overnight. The information technology sector fell 1.0%, while the PHLX Semiconductor Index lost 2.2% as weakness across memory and AI infrastructure names continued. NVIDIA (NVDA 196.53, -10.31, -4.98%) finished as the worst-performing "Magnificent Seven" stock, reinforcing the group's outsized influence on the broader indices.

The weakness in semiconductors contrasted with strength elsewhere in technology. Apple (AAPL 336.91, +3.89, +1.17%) climbed to another all-time high, while software stocks significantly outperformed. The iShares Expanded Tech-Software Sector ETF (IGV) gained 3.3%, with many of the day's best-performing S&P 500 components coming from the software industry.

Broader market participation remained constructive despite the mixed finish for the major averages. The S&P 500 Equal Weight Index (+0.7%) outperformed its market-cap-weighted counterpart, while the Russell 2000 gained 0.7% and the S&P MidCap 400 added 0.3%. Seven of the 11 S&P 500 sectors finished higher, underscoring that today's weakness remained concentrated in a relatively small group of large-cap semiconductor stocks.

The communication services sector rose 1.5% as Alphabet (GOOG 326.57, +7.48, +2.34%) rebounded from last week's post-earnings selloff. The consumer staples (+1.6%) and financials (+1.0%) sectors also finished among the market leaders.

Tesla (TSLA 309.22, -3.81, -1.22%), however, remained under pressure following last week's earnings report, limiting gains in the consumer discretionary sector (+0.8%) despite a strong showing from its oil- and rate-sensitive components.

Energy was the weakest-performing sector, falling 2.0% as crude oil prices tumbled. Bloomberg reported that President Trump said there is a "good chance" of reaching a deal with Iran after previous reports that the U.S. has halted military strikes, helping send crude oil futures down $6.69 (-7.5%) to settle at $82.65 per barrel. Baker Hughes (BKR 60.59, +3.34, +5.83%), however, bucked the broader sector weakness following a better-than-expected earnings report.

Investors now turn their attention to one of the busiest weeks of earnings season, with several mega-cap technology companies set to report alongside key inflation data and Wednesday's FOMC policy decision. While semiconductors continue to drive much of the day-to-day movement in the major averages, today's session suggested that broader participation remains on firmer footing beneath the surface.

U.S. Treasuries began the week with a modest extension of their gains from Friday, though the market made little intraday progress past its higher start. Treasuries made it back to their opening levels as equities struggled to sustain their starting gains, holding steady after the U.S. Treasury sold $69 bln in 2-year notes to good demand. The market edged to fresh highs in the early afternoon but dipped back to starting levels with some pressure from a weak $70 bln 5-year note sale. The 2-year note yield settled down one basis point to 4.32% and the 10-year note yield settled down four basis points to 4.64%. 

• Russell 2000: +18.8% YTD
• S&P Mid Cap 400: +14.8% YTD
• DJIA: +8.6% YTD
• S&P 500: +8.3% YTD
• Nasdaq Composite: +7.3% YTD

Reviewing today's data:

• Durable goods orders rose 0.3% month-over-month in June (Briefing.com consensus 2.0%) after an upwardly revised 4.0% decrease (from -4.5%) in May. Excluding transportation, durable goods orders were up 0.6% month-over-month (Briefing.com consensus 0.9%) after increasing an upwardly revised 1.8% (from 1.3%) in May.
  
  • The key takeaway from the report is that the headline miss masked upward revisions to readings from May and concealed a 0.9% increase in new orders for nondefense capital goods excluding transportation, which is considered a proxy for business spending. On a year-over-year basis, these orders are up 9.3%.