[BRIEFING.COM] The major averages faded off their prior levels after the FOMC minutes showed that many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year. The S&P 500 (+0.11%) is up about 7 points.

Participants noted that inflation had ticked higher and remained somewhat elevated, while economic activity continued to grow at a moderate pace. Job gains slowed and unemployment edged up, raising concerns about rising downside risks to the labor market. With that backdrop, many officials favored cutting rates, some were on the fence, and several opposed a reduction.

Further, participants urged a deliberate approach, noting that limited data and two-sided risks called for caution. Most agreed that shifting toward a more neutral stance would help prevent a sharper labor-market downturn, and with tariff effects on inflation appearing modest, many viewed some easing as appropriate to counter employment risks. At the same time, the FOMC warned that additional cuts, amid still-elevated inflation and only slow labor-market cooling, could risk entrenching inflation or signal wavering commitment to the 2 percent goal.

Overall, participants stressed the need to balance risks carefully and maintain well-anchored inflation expectations.

Treasury yields are narrowly higher compared to pre-minutes, with the yield on the 10-yr up less than one basis point at 4.117%.

[BRIEFING.COM] With about two hours to go the tech-heavy Nasdaq Composite (+0.40%) clings to a narrow lead among the majors, up almost 90 points.

Gold futures settled $16.30 higher (+0.4%) at $4,082.80/oz, as investors adopted a risk-off stance ahead of the Fed minutes and delayed U.S. jobs data, boosting safe-haven demand despite a firm dollar. Traders also leaned into gold on lingering expectations for a December rate cut, which supports non-yielding assets.

Meanwhile, the U.S. Dollar Index is up about +0.5% to $100.10.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.04%) is narrowly higher, peeking its head above flat lines for the first time this afternoon.

A look inside the DJIA shows that Boeing (BA 184.77, -74.86, -2.56%), Salesforce (CRM 227.91, -5.59, -2.39%), and Microsoft (MSFT 486.68, -7.11, -1.44%) are among today's top laggards.

Meanwhile, NVIDIA (NVDA 184.82, +3.46, +1.91%) holds a modest lead atop the standings.

The DJIA is now down -2.20% week-to-date.

Elsewhere, U.S. Treasuries of most tenors are back near their opening levels after a bounce off lows that were reached about an hour after the market tagged morning highs. The 2-yr note underperforms, remaining near its low amid falling December rate cut odds, while longer tenors are much closer to their highs, having shown a muted reaction to today's soft $16 bln 20-yr bond sale. The offering drew a high yield of 4.706%, which tailed the when-issued yield by 0.2 basis points. The bid-to-cover ratio (2.41x) was a bit below average (2.61x) and so was indirect takedown (59.5% vs 66.3% average). While there has been some volatility today, it has taken place inside a narrow range, keeping the 10-yr yield between 4.10% and 4.13%.

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.3%) opened to solid gains as mega-cap and tech names rebounded from recent weakness, while pockets of weakness kept the DJIA (-0.1%) near its flatline. That weakness recently spread to today's outperformers amid a further dampening of December rate cut expectations, negating the bulk of this morning's gains. 

Alphabet (GOOG 294.27, +9.31, +3.27%) traded to a fresh record high this morning following the release of its Gemini 3 AI, with its gain keeping the communication services sector (+0.8%) at the top of today's leaderboard. While the stock remains a standout today, it has retreated over 1.5% from session highs. 

The information technology sector (+0.6%) has also ceded nearly half of its early gain, which came by way of strength in its chipmaker components. The midday profit-taking is particularly evident in the PHLX Semiconductor Index, which is now up a modest 0.9% after previously holding a gain that approached 3.0%. 

NVIDIA (NVDA 184.78, +3.42, +1.89%) still trades with a solid gain ahead of its earnings release this afternoon. 

Strength in the broader market is mixed. As many as ten S&P 500 sectors held losses at recent session lows, while five S&P 500 sectors now hold gains. Decliners outpace advancers by a roughly 8-to-5 ratio on the NYSE and a roughly 3-to-2 clip on the Nasdaq. 

Losses are modest for the most part, with the exception of the energy sector (-1.3%), which trades lower due to a lower price of oil as WTI crude finds resistance near its 50-day moving average (61.00), falling $1.49, or 2.5%, to $59.18 per barrel. Today's loss leaves oil just $1 per barrel above its November low with little help from a bullish weekly inventory report that showed a draw of 3.43 million barrels against expectations for a much smaller decrease.

On the earnings front, Lowe's (LOW 232.25, +12.68, +5.77%) trades sharply higher after beating earnings expectations, while Target (TGT 86.48, -2.05, -2.32%) trades lower after topping earnings expectations but missing on revenues. 

The market was recently hit with a surprise macro headline as the BLS confirmed it will not publish the October Employment Situation Report. The BLS also confirmed that the September JOLTS report will not be published, and the October JOLTS report will be released Tuesday, December 9. Meanwhile, the November Employment Situation Report will be published Tuesday, December 16. 

The continuance of the recent data vacuum weighed heavily on the market's expectations for another rate cut in December, which has been largely reliant on cracks in the labor market for support. 

The CME FedWatch tool now assigns a 38.4% probability to a 25-basis point rate cut at the December FOMC meeting, down from 50.1% a day ago. 

Investors now eagerly await the 2:00 PM ET release of the October FOMC meeting minutes for further insight on the Fed's projected path for monetary policy. 

Reviewing today's data:

• The trade deficit was $59.6 billion in August (Briefing.com consensus: -$61.0 billion) versus an upwardly revised $78.2 billion (from $78.3 billion) in July. That was the result of exports being $0.2 billion more than July exports and imports being $18.4 billion less than July imports.
  • The key takeaway from the report is that it will factor favorably into the Q3 GDP report, given the positive contribution from the net export component.
• The MBA Mortgage Applications Index for the week ended November 15 decreased 5.2%, from a prior increase of 0.6%.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.2%) are approaching session lows as tech names begin to face some selling pressure. 

Chipmakers in particular are the subject of some renewed profit taking, with the PHLX Semiconductor Index up just 0.7% after holding a gain that neared 3.0%. NVIDIA (NVDA 184.29, +2.93, +1.61%) has given back nearly half of its early advance, and the broader information technology sector (+0.5%) has seen a similar pullback.

Tesla (TSLA 403.09, +1.84, +0.46%) faces similar pressure, with the consumer discretionary sector (-0.2%) retreating below its flatline. 

Alphabet (GOOG 295.20, +10.24, +3.59%) is still a beacon of strength across mega-cap names, though it too is nearly 1.5% off of session highs. 

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and DJIA (-0.2%) now trade in a steady range as the market awaits key developments this afternoon. 

Tesla (TSLA 405.64, +4.39, +1.09%) CEO Elon Musk stated at a Saudi investment forum that AI is an infrastructure and is revolutionizing every industry, adding in 10-20 years "work will be optional" because of AI.

NVIDIA (NVDA 185.12, +3.76, +2.07%) CEO Jensen Huang is also at the forum, though Mr. Musk's comments have not had a noticeable impact on either stock. 

[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.6%) jumped out to early gains as tech and mega-cap names rebounded from recent weakness, though the major averages are well off of session highs as weakness in the broader market pushes the DJIA (-0.2%) below its flat line. 

Only four S&P 500 sectors currently hold gains, but those of the communication services (+1.7%) and information technology (+0.9%) sectors are wide enough to promote growth at the index level. 

Alphabet (GOOG 298.24, +13.28, +4.66%) traded to a new record high this morning, while chipmakers advance ahead of NVIDIA's (NVDA 185.89, +4.53, +2.50%) earnings report after the close. 

Broadcom (AVGO 351.09, +10.59, +3.11%) and Lam Research (LRCX 148.46, +5.22, +3.64%) are standouts that contribute to a 1.6% gain in the PHLX Semiconductor Index. 

Weakness in the broader market has recently pushed breadth figures into slightly negative territory after a morning of relative strength. 

The energy sector (-1.7%) holds the widest loss, as the price of oil has decreased $1.38 (-2.3%) to $59.29. 

Meanwhile, the consumer staples (-0.9%) and real estate (-0.7%) sectors see some profit-taking after modest gains yesterday. 

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.1%) hold modest gains.

[BRIEFING.COM] The major averages are a touch off of session highs, with the DJIA (-0.2%) now beneath its flatline. 

The majority of the Dow's components in the health care sector (-0.1%) trade lower, reflecting a largely flat showing as investors show little interest in rotating into the sector today.

Meanwhile, the real estate sector (-0.8%) holds a loss after closing higher yesterday, while the consumer staples sector (-0.7%) also moves lower amid a more risk-on sentiment today. Walmart (WMT 100.49, -0.90, -0.89%) trades lower ahead of its earnings release tomorrow. 

[BRIEFING.COM] The S&P 500 (+1.0%), Nasdaq Composite (+1.7%), and DJIA (+0.4%) now trade in a steady range with solid gains as mega-cap and tech names continue to outperform. 

The Vanguard Mega Cap Growth ETF is up 1.8%, narrowing its week-to-date loss to 0.5%. 

Amazon (AMZN 221.01, -1.54, -0.69%) is a laggard among the mega-caps, but strength in Tesla (TSLA 409.90, +8.65, +2.16%) and gains across retailers following this morning's batch of earnings reports lift the consumer discretionary sector (+0.3%) to a modest gain. 

Lowe's (LOW 228.88, +9.31, +4.24%) is the sector's top mover after posting standout results and a relatively resilient outlook.  Despite macro headwinds, the company beat earnings expectations and maintained revenue growth, thanks to solid Pro business trends and the acquisition of Foundation Building Materials (FBM). Near-term results are hampered by consumer softness, but operational discipline, early positive Q4 comparable sales, and growth in appliances point to relative resilience. 

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+0.2%) are higher this morning as mega-cap and tech names see their best opening in several sessions. 

Alphabet (GOOG 300.32, +15.36, +5.39%), which has been largely resistant to the recent AI unwind, continues to be the new darling among the mega-caps, trading to a new record high and pushing the communication services sector (+2.5%) to an early lead. 

The information technology sector (+1.7%) is also off to a strong start, supported by a rebound in chipmaker names. NVIDIA (NVDA 186.45, +5.09, +2.81%) trades higher ahead of its earnings after the close, while Broadcom (AVGO 352.57, +12.07, +3.54%) and Lam Research (LRCX 149.26, +6.02, +4.21%) trade even higher. The PHLX Semiconductor Index holds a gain of 2.0%.

Meanwhile, the broader market continues yesterday's trend of solid participation. Seven S&P 500 sectors hold gains, and only the energy sector (-2.3%) holds a loss wider than 0.75% as the price of oil slips $1.83 (-3.0%) to $58.84 per barrel. 

The stock market is on track for a higher open as the major averages look to stop a recent skid that has seen the S&P 500 close lower for four straight sessions. 

Mega-cap tech is mixed in the premarket, with NVIDIA (NVDA 184.77, +3.41, +1.9%) and Tesla (TSLA 405.12, +3.87, +1.0%) outperforming. 

While sector strength was a nearly even split yesterday, and breadth figures leaned positive, weakness across mega-cap names prompted another day of index-level losses. 

The trade deficit was $59.6 billion in August (Briefing.com consensus: -$61.0 billion) versus an upwardly revised $78.2 billion (from $78.3 billion) in July. That was the result of exports being $0.2 billion more than July exports and imports being $18.4 billion less than July imports.

The key takeaway from the report is that it will factor favorably into the Q3 GDP report, given the positive contribution from the net export component. Of course, this report isn't as pertinent now, seeing that we are in the latter half of November, or well into Q4, and the updated trade data is a few months behind schedule due to the government shutdown.

(Editor's note: The original comment incorrectly identified the July trade deficit as being $60.2 billion. That was the original June deficit. The comment has been corrected to incorporate the correct amount for the July trade deficit.)

The S&P 500 futures currently trade 21 points above fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan Prime Minister Takaichi's cabinet is expected to approve stimulus spending on Friday with reports suggesting that the package could exceed the previously reported amount of JPY20 trln. Continued weakness in Japanese debt drove yields on most tenors to fresh highs for the year while expectations for a December rate hike from the Bank of Japan receded amid indications the central bank plans no hikes until March. China reinstated its ban against Japanese seafood amid growing political tension between the two nations.

• In economic data:
  • Japan's September Core Machinery Orders 4.2% m/m (expected 2.2%; last -0.9%); 11.6% yr/yr (expected 5.4%; last 1.6%)
  • Australia's October MI Leading Index 0.1% m/m (last 0.0%). Q3 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.4% yr/yr, as expected (last 3.4%)
  • New Zealand's Q3 Input PPI 0.2% qtr/qtr (expected 0.9%; last 0.6%) and Output PPI 0.6% qtr/qtr (expected 0.7%; last 0.6%)

---Equity Markets---

• Japan's Nikkei: -0.3%
• Hong Kong's Hang Seng: -0.4% 
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.6%
• South Korea's Kospi: -0.6%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade near their flat lines while Spain's IBEX (+0.7%) outperforms, fighting to stay above its November low. The U.K.'s inflation report for October showed a slight deceleration in the yr/yr rate to 2.1% from 2.2% while Core PPI remained at 2.4%. Still, expectations for a December rate cut from the Bank of England increased slightly. FT reported that the British government is preparing to sell British Steel after rescuing the company from insolvency in 2019. The Central Bank of Iceland lowered its policy rate by 25 basis points to 7.25%.

• In economic data:
  • Eurozone's October CPI 0.2% m/m, as expected (last 0.1%); 2.1% yr/yr, as expected (last 2.2%). October Core CPI 0.3% m/m, as expected (last 0.1%); 2.4% yr/yr, as expected (last 2.4%). Q3 Labor Cost Index 3.5% yr/yr (last 3.6%). September Current Account surplus EUR23.1 bln (expected surplus of EUR15.9 bln; last surplus of EUR22.2 bln)
  • U.K.'s October CPI 0.4% m/m, as expected (last 0.0%); 3.6% yr/yr (expected 3.5%; last 3.8%). October Core CPI 0.3% m/m (expected 0.4%; last 0.0%); 3.4% yr/yr, as expected (last 3.5%). October Input PPI -0.3% m/m (expected 0.0%; last -0.1%); 0.5% yr/yr (expected 0.7%; last 0.7%) and Output PPI 0.0% m/m (expected 0.1%; last 0.0%); 3.6% yr/yr (last 3.5%). October House Price Index 2.6% yr/yr (expected 3.0%; last 3.0%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: +0.1%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: +0.7%

The S&P 500 futures currently trade 16 points above fair value. 

TJX (TJX 149.61, +4.03, +2.8%) beat EPS expectations by $0.05, beat revenue expectations, reported comparable sales of 5%, and guided Q4 EPS below consensus. 

DoorDash (DASH 217.00, +4.92, +2.3%) trades higher after Jefferies upgraded the stock to Buy from Hold, with a target price of $260. 

Meanwhile, Home Depot (HD 339.50, +3.02, +0.9%) trades modestly higher in the premarket after sliding 6% yesterday following an EPS miss and lowered guidance. KGI Securities downgraded the stock to Neutral from Outperform with a price target of $320. 

Just released, the August trade deficit narrowed to $59.6 billion (Briefing.com consensus -$61.0 billion) from a downwardly revised deficit of $78 billion (from -$60.2 billion). 

Equity futures point to a modestly higher open this morning after yesterday's trade saw mixed action in the broader market while mega-cap weakness pushed the major averages lower. Stocks have run into some resistance in recent sessions, with the S&P 500 closing lower for the fourth consecutive day in a row. 

Mega-caps, chipmakers, and other AI plays have faced the brunt of recent weakness amid concerns over AI spending and valuations. NVIDIA's (NVDA 184.52, +3.16, +1.7%) earnings release after the close today will be closely watched as investors look for signs of continuous future growth potential in the AI trade. 

Before the close, the market will receive the FOMC minutes from the October meeting, which is also particularly important given a recent change in sentiment. A wave of hawkish commentary from Fed officials has dampened the market's odds of another rate cut in December to coin-flip probabilities. 

Meanwhile, the market is currently receiving a batch of earnings reports from big-box retailer names. 

The MBA Mortgage Applications Index for the week ended November 15 decreased 5.2%, from a prior increase of 0.6%. 

In corporate news:

• Lowe's (LOW 233.50, +13.93, +6.3%) beat EPS expectations by $0.09, reported revenues in-line, and issued mixed guidance for FY26. 
• Target (TGT 85.92, -2.61, -3.0%) beat EPS expectations by $0.07, reported revenues in-line, reaffirmed its sales guidance, and guided FY26 EPS in-line.
• Tesla (TSLA 406.49, +5.24, +1.3%) CEO Elon Musk and NVIDIA (NVDA 184.52, +3.16, +1.7%) CEO Jensen Huang will speak at a Saudi investment forum today, according to Reuters. 
• Warner Bros. Discovery (WBD 23.90, +0.21, +0.9%) reportedly wants Paramount Skydance (PSKY 16.15, +0.06, +0.4%) to lift its offer to around $30 per share, from $23.50 per share, according to Axios. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: +0.2%, India's Sensex: +0.6%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -0.2%.

• Japan Prime Minister Takaichi's cabinet is expected to approve stimulus spending on Friday with reports suggesting that the package could exceed the previously reported amount of JPY20 trln.
• Continued weakness in Japanese debt drove yields on most tenors to fresh highs for the year while expectations for a December rate hike from the Bank of Japan receded amid indications the central bank plans no hikes until March.
• China reinstated its ban against Japanese seafood amid growing political tension between the two nations.

In economic data:

• Japan's September Core Machinery Orders 4.2% m/m (expected 2.2%; last -0.9%); 11.6% yr/yr (expected 5.4%; last 1.6%)
• Australia's October MI Leading Index 0.1% m/m (last 0.0%). Q3 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.4% yr/yr, as expected (last 3.4%)
• New Zealand's Q3 Input PPI 0.2% qtr/qtr (expected 0.9%; last 0.6%) and Output PPI 0.6% qtr/qtr (expected 0.7%; last 0.6%)

Major European indices trade near their flat lines while Spain's IBEX (+0.5%) outperforms, fighting to stay above its November low. STOXX Europe 600: +0.1%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: +0.5%.

In news:

• The U.K.'s inflation report for October showed a slight deceleration in the yr/yr rate to 2.1% from 2.2% while Core PPI remained at 2.4%.
• Still, expectations for a December rate cut from the Bank of England increased slightly.
• FT reported that the British government is preparing to sell British Steel after rescuing the company from insolvency in 2019.
• The Central Bank of Iceland lowered its policy rate by 25 basis points to 7.25%.

In economic data:

• Eurozone's October CPI 0.2% m/m, as expected (last 0.1%); 2.1% yr/yr, as expected (last 2.2%). October Core CPI 0.3% m/m, as expected (last 0.1%); 2.4% yr/yr, as expected (last 2.4%). Q3 Labor Cost Index 3.5% yr/yr (last 3.6%). September Current Account surplus EUR23.1 bln (expected surplus of EUR15.9 bln; last surplus of EUR22.2 bln)
• U.K.'s October CPI 0.4% m/m, as expected (last 0.0%); 3.6% yr/yr (expected 3.5%; last 3.8%). October Core CPI 0.3% m/m (expected 0.4%; last 0.0%); 3.4% yr/yr, as expected (last 3.5%). October Input PPI -0.3% m/m (expected 0.0%; last -0.1%); 0.5% yr/yr (expected 0.7%; last 0.7%) and Output PPI 0.0% m/m (expected 0.1%; last 0.0%); 3.6% yr/yr (last 3.5%). October House Price Index 2.6% yr/yr (expected 3.0%; last 3.0%)

[BRIEFING.COM] The stock market saw some choppy action in today's trade, and while some pockets of the market posted solid performances, lingering weakness across tech and mega-cap names saw the S&P 500 (-0.8%), Nasdaq Composite (-1.2%), and DJIA (-1.1%) close below their 50-day moving averages for the second consecutive day. 

As many as nine S&P 500 sectors held losses at once during session lows, while nine sectors held gains at session highs. Ultimately, five sectors finished higher, but the underperformance of the consumer discretionary (-2.5%) and information technology (-1.7%) sectors was prominent through the entirety of the session. 

Home Depot (HD 336.48, -21.55, -6.02%) held the widest loss in the consumer discretionary sector after missing EPS estimates and lowering its FY26 guidance, which weighed on other retailers in the sector. 

Amazon (AMZN 222.55, -10.32, -4.43%) also lagged after Rothschild & Co. downgraded the stock to Neutral from Buy. 

The firm also downgraded Microsoft (MSFT 493.79, -13.70, -2.70%) to Neutral from Buy, which set the tone for early weakness in the technology sector. 

The sector faced pressure in its chipmaker components, which sent the PHLX Semiconductor Index 2.3% lower, widening its week-to-date loss past 9.0%. NVIDIA (NVDA 181.37, -5.23, -2.80%) traded lower ahead of its earnings report after the close tomorrow, while names like Advanced Micro Devices (AMD 230.29, -10.23, -4.25%) and Micron (MU 228.50, -13.45, -5.56%) faced even steeper losses. 

Meanwhile, Alphabet (GOOG 284.96, -0.64, -0.22%) faced some choppy action today, holding gains wider than 1.0% before ultimately closing below its flatline. Loop Capital upgraded the stock to Buy from Hold. 

Despite Alphabet ceding its gain, the communication services sector (+0.1%) still finished in positive territory. Warner Bros. Discovery (WBD 23.69, +0.95, +4.18%) led the way as it prepares to receive bids from prospective buyers, while Netflix (NFLX 114.09, +3.80, +3.44%) saw some buying interest after its 10-to-1 stock split took effect yesterday. 

The health care sector (+0.5%) unsurprisingly finished with one of the widest gains as investors continue to rotate into the sector amid valuation concerns that now surround the AI trade. 

Medtronic (MDT 100.80, +4.52, +4.69%) paced the gains after a solid beat-and-raise earnings report, while Merck (MRK 96.43, +3.57, +3.84%) finished higher after announcing it will increase its quarterly dividend to $0.85 per share from $0.81 per share. 

Elsewhere in the sector, managed care names including UnitedHealth (UNH 313.58, -6.94, -2.17%) and Elevance Health (ELV 324.53, -6.38, -1.93%) traded lower after President Trump lambasted health insurance companies in a Truth Social post this morning. 

The energy sector (+0.6%) ended up with the widest gain as crude oil futures settled today's session $0.76 higher (+1.3%) at $60.68 per barrel. 

Outside of the S&P 500, the Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) shook off some early sluggishness to the tune of solid gains. 

On the macro front, December rate cut expectations got a modest boost from the unexpected overnight release of some October weekly jobless claims data. Initial jobless claims for the week ending October 18 were 232K (prior revised to 219K from 218K); continuing jobless claims for the week ending October 11 were 1947K (prior revised to 1916K from 1926K). The CME FedWatch Tool now assigns a 51.1% probability to a 25-basis point rate cut at the December FOMC meeting, up from 42.4% yesterday. 

Ultimately, today's action reflected a further rotation out of AI and mega-cap names and into more value-oriented positions. While breadth figures ended the day modestly positive, and sector strength was an almost even split, a 1.4% slide in the Vanguard Mega Cap Growth ETF was more than enough to facilitate losses at the index level. 

The AI trade continues to stumble ahead of NVIDIA's earnings release tomorrow after the close, as not even headlines of a partnership between NVIDIA, Microsoft, and Anthropic, or the news that the U.S. is working on the sale of advanced chips to Saudi Arabia, triggered any buying interest. 

U.S. Treasuries traded firmly with a bull steepener trade in play, having digested several economic releases today. The 2-year note yield settled down three basis points to 3.58%, and the 10-year note yield settled down one basis point to 4.12%. 

• Nasdaq Composite: +16.2% YTD
• S&P 500: +12.5% YTD
• DJIA: +8.3% YTD
• Russell 2000: +5.3% YTD
• S&P Mid Cap 400: +1.1% YTD

Reviewing today's data:

• Weekly Initial Claims 232K; Prior was revised to 219K from 218K
• Weekly Continuing Claims 1.947 mln; Prior was revised to 1.916 mln from 1.926 mln
• August Factory Orders 1.4% (Briefing.com consensus 0.8%); Prior -1.3%
  • The key takeaway from the report is that business spending remained on an upswing, evidenced by back-to-back increases in new orders for nondefense capital goods, excluding aircraft, in July and August.
• November NAHB Housing Market Index 38 (Briefing.com consensus 36); Prior 37