[BRIEFING.COM] The S&P 500 (-0.49%) is in second place on Friday afternoon, down about 33 points.

Briefly, S&P 500 constituents Insulet (PODD 220.26, -15.81, -6.70%), Freeport-McMoRan (FCX 56.12, -3.09, -5.22%), and TKO Group Holdings (TKO 193.37, -7.90, -3.93%) dot the bottom of the average. PODD slides after it disclosed a voluntary correction for a small number of Omnipod 5 pods due to insulin delivery issues, raising safety and reliability concerns despite limited scope and no expected shipment disruptions, while FCX declines are tied in part to losses in copper futures, while TKO dips ahead of Monday's ex-dividend.

Meanwhile, Ares Management (ARES 101.65, +5.15, +5.34%) is atop the standings is rallying despite a dearth of corporate news.

[BRIEFING.COM] The Nasdaq Composite (-0.97%) is in last place on Friday afternoon, down about 217 points.

Gold futures settled $64.10 lower (-1.3%) at $5,061.70/oz, extending weekly losses to about -1.9%, as a stronger U.S. dollar and rising Treasury yields weighed on the metal. The move comes as surging oil prices and ongoing geopolitical tensions have fueled inflation concerns, prompting markets to scale back expectations for near-term Federal Reserve rate cuts and sparking some profit-taking after gold's recent run higher.

Meanwhile, the U.S. Dollar Index gains about +0.6% to $100.33.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.03%) is just below flat lines, down about 15 points on the day.

A look inside the DJIA shows that Salesforce (CRM 193.48, -5.80, -2.91%), Apple (AAPL 251.08, -4.68, -1.83%), and Microsoft (MSFT 396.59, -5.27, -1.31%) are underperforming.

Meanwhile, Boeing (BA 209.71, +4.95, +2.42%) rises to the top of the average.

The DJIA is now poised to end the week -1.77% lower.

Also, at the top of the hour, Baker Hughes (BKR 55.07, -0.82, -1.48%) announced a weekly U.S. rotary rig count of 553, +2 w/w and -39 yr/yr.

[BRIEFING.COM] The stock market opened with broad gains this morning as oil prices moved lower, but a reversal in oil has since weighed on the broader market, pushing the major averages lower. The S&P 500 (-0.4%), Nasdaq Composite (-0.9%), and DJIA (-0.1%) remain firmly lower for the week early in Friday afternoon trading. 

Crude oil traded down near $92 per barrel this morning but has since made a decisive move higher, currently up $1.04 (+1.1%) to $96.79 per barrel. The Wall Street Journal reported that the Pentagon is sending more Marines and warships to the Middle East, potentially to help escort tankers through the Strait of Hormuz. For the time being, the market remains susceptible to volatility as oil continues to climb without a clear end in sight to the war in Iran. 

All eleven S&P 500 sectors traded higher this morning, and advancers outpaced decliners by a roughly 2-to-1 ratio. Only five S&P 500 sectors remain in positive territory, and decliners now modestly outpace advancers. 

The information technology sector (-1.0%) has had a particularly volatile session, trading more than 1.0% higher before retreating to a loss of equal magnitude. Software names are under pressure after several stronger sessions, with the iShares GS Software ETF down 1.2%. 

The PHLX Semiconductor Index (+0.1%) remains in positive territory for the time being, but it has pulled back considerably after trading more than 2.0% higher this morning. Broadcom (AVGO 324.30, -11.67, -3.47%) and Advanced Micro Devices (AMD 193.88, -3.86, -1.95%) are among the sector's weakest performers. 

Elsewhere in the sector, Adobe (ADBE 254.00, -15.78, -5.85%) lags despite topping earnings estimates after news that the company's CEO will depart once a replacement is named. 

The communication services sector (-1.0%) holds a comparable loss as Meta Platforms (META 615.85, -22.33, -3.50%) lags after reports that the company is delaying the release of its new AI model. 

Meanwhile, the defensive utilities (+1.3%) and consumer staples (+0.8%) sectors outperform amid the weakness in tech names today. 

On the data front, this morning's release of the PCE Price Index (0.3%; Briefing.com consensus: 0.3%) saw the index increase 2.8% on a year-over-year basis versus 2.9% in December, though the modest decrease in the year-over-year level offers little relief, with the market expecting higher readings in the coming months due to the increase in energy prices.

As a result, the market remains vulnerable to further increases in energy prices, which continue to dampen the market's rate cut hopes while weighing on equities.

Reviewing today's data:

• Q4 GDP was revised down to 0.7% (Briefing.com consensus 1.4%) from the advance estimate of 1.4%. The GDP Price Deflator was revised to 3.8% from 3.6% in the advance estimate.
  
  • The key takeaway from the report is that growth decelerated notably in Q4 while the Price Deflator was revised higher, which is a disappointing combination.
• Personal Income increased 0.4% month-over-month in January (Briefing.com consensus 0.4%) after rising 0.3% in December. Personal spending was also up 0.4% month-over-month (Briefing.com consensus 0.2%) following a 0.4% increase in December. The PCE Price Index rose 0.3% month-over-month (Briefing.com consensus 0.3%), while the core PCE Price Index, which excludes food and energy, rose 0.4% month-over-month (Briefing.com consensus 0.4%). On a year-over-year basis, the PCE Price Index increased 2.8% versus 2.9% in December, and the core PCE Price Index increased 3.1%, versus 3.0% in December.
  
  • The key takeaway from the report is that the Fed's preferred inflation measure, the core PCE Price Index, edged up in January, which presents a headwind to rate cut expectations.
• Durable goods orders were flat month-over-month in January (Briefing.com consensus 0.7%). Excluding transportation, durable goods orders rose 0.4% month-over-month (Briefing.com consensus 0.5%) after increasing a revised 1.3% (from 0.9%) in December.
• The key takeaway from the report is that the flat headline reading masked a solid 0.9% increase in nondefense capital goods orders, which is a proxy for business investment.
• The preliminary reading of the University of Michigan Consumer Sentiment for March fell to 55.5 (Briefing.com consensus 55.7) from the final reading of 56.6 for February. In the same period a year ago, the index stood at 57.0.
• The key takeaway from the report is that roughly half of the interviews were conducted before military action in Iran, which spurred a rally in energy prices. Therefore, the Consumer Sentiment Index is likely to be revised lower in the final reading for March.
• The January Job Openings and Labor Turnover (JOLTS) report saw 6.946 million job openings, up from an upwardly revised 6.550 (from 6.542 million).

[BRIEFING.COM] The major averages continue to trade in a relatively stable range, with the S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (+0.1%) sitting mostly lower. 

The price of oil continues to climb, with crude oil currently up $.144 (+1.5%) to $97.17 per barrel. Reuters reported that Iran cleared two LPG tankers through the Strait of Hormuz. 

Meanwhile, The Wall Street Journal reported that the Pentagon is sending more Marines and warships to the Middle East. 

[BRIEFING.COM] The major averages continue to sit mostly lower at midday.

Adobe (ADBE 252.44, -17.34, -6.43%) is trading sharply lower today after reporting Q1 results and upside Q2 guidance, as investors weigh solid execution and accelerating AI traction against a modestly light ARR outcome, pressure in the traditional Adobe Stock business, and news that long-tenured CEO Shantanu Narayen will transition out of the role once a successor is named. The company exceeded Q1 EPS and revenue expectations, with total ARR growing double digits and AI-first ARR more than tripling year-over-year, but leadership uncertainty and near-term ARR headwinds from freemium and AI cannibalization of stock are tempering the reaction.

Meanwhile, Ulta Beauty (ULTA 546.02, -78.68, -12.59%) is the worst-performing S&P 500 stock today following its Q4 (Jan) earnings report, as the company surprised investors with an EPS miss for the holiday quarter after posting five consecutive large EPS beats of $0.53+ in prior quarters. The company also guided FY27 EPS below analyst expectations, although it did deliver modest revenue upside in Q4 along with decent FY27 revenue guidance.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.6%), and DJIA (flat) sit mostly lower after a bounce in oil prices forced the major averages to cede their solid opening gains. The major averages traded nearly 1.0% higher this morning, though the recent pullback has each index back in negative week-to-date territory. 

Crude oil moved below $93 per barrel, though it is now back up $0.11 (+0.1%) to $95.84 per barrel.

The recent surge in energy prices continues to dampen the market's rate-cut hopes. This morning's release of the PCE Price Index (0.3%; Briefing.com consensus: 0.3%) saw the index increase 2.8% on a year-over-year basis versus 2.9% in December, though the modest surprise offers little relief, with the market expecting higher readings in the coming months due to the increase in energy prices. 

Today's trade now reflects a risk-off disposition, with the defensive utilities (+1.0%) sector out in front, while the consumer staples (+0.4%) and health care (+0.1%) sectors are also trading modestly higher. The financials sector (+0.6%) is an exception to the trend, supported by modest strength in major banking names and a solid rebound across asset managers, which have faced particular weakness in recent sessions. 

Meanwhile, the top-weighted information technology sector (-0.7%) now sits at the bottom of the leaderboard after trading more than 1.0% higher early in the session. Adobe (ADBE 252.28, -17.50, -6.49%) lags despite topping earnings estimates, and software names are once again under pressure after several resilient sessions. 

Outside of the S&P 500, the Russell 2000 (-0.2%) and S&P Mid Cap 400 (-0.2%) trade modestly lower. 

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (+0.1%) now sit mostly lower following an increase in oil prices. 

Crude is now up $0.21 (+0.2%) to $95.94 per barrel. The move has weighed on the market's early strength, leaving just five S&P 500 sectors in positive territory. 

[BRIEFING.COM] The major averages continue to hold decent gains an hour into today's session. 

The preliminary reading of the University of Michigan Consumer Sentiment for March fell to 55.5 (Briefing.com consensus 55.7) from the final reading of 56.6 for February. In the same period a year ago, the index stood at 57.0.

The key takeaway from the report is that roughly half of the interviews were conducted before military action in Iran, which spurred a rally in energy prices. Therefore, the Consumer Sentiment Index is likely to be revised lower in the final reading for March.

[BRIEFING.COM] The stock market opened to broad gains, with the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) reclaiming a meaningful chunk of yesterday's weakness, though they are off of their best opening levels.

Oil prices have seen some relief this morning, with crude oil currently trading at $1.57 (-1.6%) lower at $94.16 per barrel. 

All eleven S&P 500 sectors trade higher, with a solid gain in the top-weighted information technology sector (+1.0%). Semiconductor stocks, and in particular, memory storage names such as Western Digital (WDC 275.00, +13.82, +5.29%) and Micron (MU 423.54, +18.19, +4.49%) are among the outperformers, pushing the PHLX Semiconductor Index 2.0% higher. 

Other early outperformers include the utilities sector (+1.4%), which expands upon yesterday's strength, and the financials sector (+0.7%), which is supported by a rebound across asset manager names. 

The January Job Openings and Labor Turnover (JOLTS) report saw 6.946 million job openings, up from an upwardly revised 6.550 (from 6.542 million).

The preliminary University of Michigan Consumer Sentiment reading for March was 55.5 (Briefing.com consensus 55.7), from a final February level of 56.6. 

The stock market remains on track for a higher opening following a busy morning of economic data. 

Q4 GDP was revised down to 0.7% (Briefing.com consensus 1.4%) from the advance estimate of 1.4%. The GDP Price Deflator was revised to 3.8% from 3.6% in the advance estimate.

The key takeaway from the report is that growth decelerated notably in Q4 while the Price Deflator was revised higher, which is a disappointing combination.

Personal Income increased 0.4% month-over-month in January (Briefing.com consensus 0.4%) after rising 0.3% in December. Personal spending was also up 0.4% month-over-month (Briefing.com consensus 0.2%) following a 0.4% increase in December. The PCE Price Index rose 0.3% month-over-month (Briefing.com consensus 0.3%), while the core PCE Price Index, which excludes food and energy, rose 0.4% month-over-month (Briefing.com consensus 0.4%). On a year-over-year basis, the PCE Price Index increased 2.8% versus 2.9% in December, and the core PCE Price Index increased 3.1%, versus 3.0% in December.

The key takeaway from the report is that the Fed's preferred inflation measure, the core PCE Price Index, edged up in January, which presents a headwind to rate cut expectations.

Durable goods orders were flat month-over-month in January (Briefing.com consensus 0.7%). Excluding transportation, durable goods orders rose 0.4% month-over-month (Briefing.com consensus 0.5%) after increasing a revised 1.3% (from 0.9%) in December.

The key takeaway from the report is that the flat headline reading masked a solid 0.9% increase in nondefense capital goods orders, which is a proxy for business investment.

The S&P 500 futures currently trade 33 points above fair value

Equity indices in the Asia-Pacific region ended the week on a broadly lower note. Japan's Finance Minister Katayama said that she is in close contact with her counterparts in the U.S. after the Japanese yen hit its lowest level against the dollar since July 2024. U.S. Trade Representative Greer will join Treasury Secretary Bessent for next week's meetings with China's Vice Premier He. India is seeing urea from China while South Korea will limit exports of naphtha products.

• In economic data:
  • China's February New Loans CNY900.0 bln (last CNY4.71 trln) and total social financing CNY2.38 trln (last CNY7.22 trln)
  • Hong Kong's Q4 Industrial Production 5.7% yr/yr (last 5.4%)
  • New Zealand's February Business PMI 55.0 (expected 55.1). January External Migration & Visitors 4.1% yr/yr (last 1.6%)

---Equity Markets---

• Japan's Nikkei: -1.2% 
• Hong Kong's Hang Seng: -1.0% 
• China's Shanghai Composite: -0.8%
• India's Sensex: -1.9% 
• South Korea's Kospi: -1.7% 
• Australia's ASX All Ordinaries: -0.1%

Major European indices are mostly higher this morning. The U.K. reported no growth for January, inviting concerns about potential stagflation that would prevent the Bank of England from cutting rates. Germany's Chemicals Industry Association suspended all forecasts for the year, warning that the sector is facing mounting disruptions. The EU Commission released a statement assuring that its gas storage and oil stocks remain stable.

• In economic data:
  • Eurozone's January Industrial Production -1.5% m/m (expected 0.6%; last -0.6%); -1.2% yr/yr (expected 1.4%; last 2.2%)
  • Germany's February WPI 0.6% m/m (expected 0.3%; last 0.9%); 1.2% yr/yr (last 1.2%)
  • U.K.'s January GDP 0.0% m/m (expected 0.2%; last 0.1%); 0.8% yr/yr (expected 0.9%; last 0.7%). January Industrial Production -0.1% m/m (expected 0.3%; last -0.9%); 0.4% yr/yr (expected 0.6%; last 0.5%). January Manufacturing Production 0.1% m/m (expected 0.2%; last -0.5%); 1.3% yr/yr (expected 1.5%; last 0.5%). January Construction Output 0.2% m/m (expected 0.0%; last -0.5%); -0.2% yr/yr (expected -0.1%; last -0.3%). January trade deficit GBP14.45 bln (expected deficit of GBP22.20 bln; last deficit of GBP10.99 bln)
  • France's February CPI 0.6% m/m (expected 0.7%; last -0.4%); 1.1% yr/yr, as expected (last 0.4%)
  • Italy's January Industrial Production -0.6% m/m (expected 0.4%; last -0.5%); -0.6% yr/yr (expected 0.8%; last 2.7%)
  • Spain's February CPI 0.4% m/m, as expected (last -0.4%); 2.3% yr/yr, as expected (last 2.3%). February Core CPI 2.7% yr/yr, as expected (last 2.6%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: +0.3% 
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: UNCH
• Italy's FTSE MIB: +0.5% 
• Spain's IBEX 35: +0.5%

The S&P 500 futures currently trade 29 points above fair value. 

Durable goods orders were unchanged month-over-month in January (Briefing.com consensus: 0.7%), following an upwardly revised 0.9% decrease (from -1.4%) in December.

Excluding transportation, durable goods orders rose 0.4% month-over-month (Briefing.com consensus: 0.5%) following an upwardly revised 1.3% increase (from 0.9%) in December.

Personal income increased 0.4% month-over-month in January (Briefing.com consensus 0.4%) following a 0.3% increase in December.

Personal spending was up 0.4% month-over-month (Briefing.com consensus: 0.2%) following a 0.4% increase in December.

The PCE Price Index increased 0.3% month-over-month (Briefing.com consensus: 0.3%), while the core PCE Price Index, which excludes food and energy, rose 0.4% month-over-month (Briefing.com consensus: 0.4%).

The second estimate for Q4 GDP saw GDP increase at an annual rate of 0.7% (Briefing.com consensus: 1.4%) on the heels of a 1.4% increase from the first estimate. The GDP Price Deflator increased 3.8% (Briefing.com consensus: 3.7%) versus 3.6% from the first estimate. 

Equity futures point to a modestly higher opening this morning after stocks retreated in broad fashion yesterday amid another sharp spike in oil prices. The major averages all finished with losses wider than 1.0% as crude oil retested the $100 per barrel mark following comments from Iran's new Supreme Leader Mojtaba Khamenei's calls to keep the Strait of Hormuz closed. The major averages will enter today's action lower for the week and not far above their respective 200-day moving averages. 

Oil prices are seeing some relief this morning, which is likely contributing to the modest rise in equity futures. Currently, oil is down $1.77 (-1.9%) to $93.96 per barrel. 

Axios reported that President Trump told G7 members in a phone conference that "Iran is about to surrender," though the comments contradict the defiant tone that Iran has kept throughout the conflict. Additionally, The Wall Street Journal reported that Israeli intelligence officials believe the regime is not likely to fall soon. 

The conflict in Iran and the subsequent rise in energy prices have fueled inflation concerns, with the market now unsure if it will get a single 25-basis point rate cut this calendar year. Investors have an important inflation reading this morning in the January Personal Income (Briefing.com consensus 0.4%) and Spending (Briefing.com consensus 0.2%) reports, which includes the PCE Price Index (Briefing.com consensus 0.3%), the Fed's preferred inflation gauge. The January report will not reflect the recent surge in energy prices, though a hotter-than-anticipated print would be particularly damaging to the market's rate cut hopes. 

In corporate news:

• Airfares are increasing amid the rise in fuel prices, according to The Wall Street Journal.
• Adobe (ADBE 250.44, -19.34, -7.2%) beat EPS expectations by $0.19, beat revenue expectations, and guided Q2 EPS and revenues above consensus. The company's CEO will transition from his position after a successor has been appointed
• Meta Platforms (META 631.41, -6.66, -1.1%) is delaying the introduction of a new AI model, according to The New York Times. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a broadly lower note. Japan's Nikkei: -1.2%, Hong Kong's Hang Seng: -1.0%, China's Shanghai Composite: -0.8%, India's Sensex: -1.9%, South Korea's Kospi: -1.7%, Australia's ASX All Ordinaries: -0.1%.

In news:

• Japan's Finance Minister Katayama said that she is in close contact with her counterparts in the U.S. after the Japanese yen hit its lowest level against the dollar since July 2024.
• U.S. Trade Representative Greer will join Treasury Secretary Bessent for next week's meetings with China's Vice Premier He.
• India is seeing urea from China while South Korea will limit exports of naphtha products.

In economic data:

• China's February New Loans CNY900.0 bln (last CNY4.71 trln) and total social financing CNY2.38 trln (last CNY7.22 trln)
• Hong Kong's Q4 Industrial Production 5.7% yr/yr (last 5.4%)
• New Zealand's February Business PMI 55.0 (expected 55.1). January External Migration & Visitors 4.1% yr/yr (last 1.6%)

Major European indices are on track for a mixed finish to the week. STOXX Europe 600: +0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.3%.

In news:

• The U.K. reported no growth for January, inviting concerns about potential stagflation that would prevent the Bank of England from cutting rates.
• Germany's Chemicals Industry Association suspended all forecasts for the year, warning that the sector is facing mounting disruptions.
• The EU Commission released a statement assuring that its gas storage and oil stocks remain stable.

In economic data:

• Eurozone's January Industrial Production -1.5% m/m (expected 0.6%; last -0.6%); -1.2% yr/yr (expected 1.4%; last 2.2%)
• Germany's February WPI 0.6% m/m (expected 0.3%; last 0.9%); 1.2% yr/yr (last 1.2%)
• U.K.'s January GDP 0.0% m/m (expected 0.2%; last 0.1%); 0.8% yr/yr (expected 0.9%; last 0.7%). January Industrial Production -0.1% m/m (expected 0.3%; last -0.9%); 0.4% yr/yr (expected 0.6%; last 0.5%). January Manufacturing Production 0.1% m/m (expected 0.2%; last -0.5%); 1.3% yr/yr (expected 1.5%; last 0.5%). January Construction Output 0.2% m/m (expected 0.0%; last -0.5%); -0.2% yr/yr (expected -0.1%; last -0.3%). January trade deficit GBP14.45 bln (expected deficit of GBP22.20 bln; last deficit of GBP10.99 bln)
• France's February CPI 0.6% m/m (expected 0.7%; last -0.4%); 1.1% yr/yr, as expected (last 0.4%)
• Italy's January Industrial Production -0.6% m/m (expected 0.4%; last -0.5%); -0.6% yr/yr (expected 0.8%; last 2.7%)
• Spain's February CPI 0.4% m/m, as expected (last -0.4%); 2.3% yr/yr, as expected (last 2.3%). February Core CPI 2.7% yr/yr, as expected (last 2.6%)

[BRIEFING.COM] Stocks had another tough session as rising oil prices continue to put broad pressure on the market. The S&P 500 (-1.5%), Nasdaq Composite (-1.9%), and DJIA (-1.6%) finished firmly lower across the board, with each index now in negative week-to-date territory. 

Oil climbed before the stock market opened amid reports that more tankers had been struck in the Strait of Hormuz. CNBC reported that Iran's new supreme leader, Mojtaba Khamenei, seeks to keep the Strait of Hormuz closed.

Energy Secretary Chris Wright told CNBC that the U.S. Navy is not yet ready to escort tankers through the strait, though it aims to be able to do so by the end of the month.

In the meantime, the supply disruption continues to push oil prices higher, which has weighed heavily on the market's expectations for policy easing from the Fed this year. Crude oil futures settled today's session $8.84 higher (+10.2%) at $95.72 per barrel. At the same time, the market's implied probability of at least a 25-basis point rate cut does not eclipse 50% until the December FOMC meeting, according to the CME FedWatch Tool.

While the energy sector (+1.0%) notched a nice gain as oil prices surged higher, the market faced broad weakness today with eight S&P 500 sectors finishing lower. 

The industrials sector (-2.5%) logged the widest retreat as airline and trucking names such as Southwest Air (LUV 38.61, -3.24, -7.74%) and Old Dominion (ODFL 176.24, -12.54, -6.64%) continue to struggle amid rising fuel costs. 

Similarly, cruise lines such as Carnival (CCL 23.92, -2.05, -7.89%) were among the worst performers in the consumer discretionary sector (-2.2%). 

Elsewhere in the sector, homebuilder names also lagged as diminishing rate cut expectations push Treasury yields higher. The iShares U.S. Home Construction ETF finished 2.9% lower. 

Tesla (TSLA 395.01, -12.81, -3.14%) was also a "magnificent seven" laggard amid a tough day for mega-cap stocks, with the Vanguard Mega Cap Growth ETF retreating 1.8%. 

Weakness across mega-cap tech pushed the information technology (-1.7%) and communication services (-1.6%) sectors lower as well. Chipmakers were a point of significant weakness, sending the PHLX Semiconductor Index 3.4% lower. 

Elsewhere, the financials sector (-1.6%) logged a similar retreat as asset managers faced renewed pressure after Bloomberg reported that Morgan Stanley (MS 154.30, -6.59, -4.10%) and Cliffwater are capping withdrawals from private credit funds after investors rushed to redeem funds.

The defensive utilities (+0.7%) and consumer staples (+0.1%) sectors garnered some modest rotational interest today as growth and cyclical sectors lagged, though the health care sector (-1.8%) faced broad pressure.

Outside of the S&P 500, the Russell 2000 (-2.1%) and S&P Mid Cap 400 (-2.1%) trailed the major averages as growth stocks underperformed today. 

The major averages will enter the final session of the week in negative territory as rising oil prices continue to prompt inflationary concerns, creating a high-volatility environment. Investors will receive the January PCE Price Index (Briefing.com consensus 0.3%) and Core PCE Price Index (Briefing.com consensus 0.4%) tomorrow morning, and while the report will not yet reflect the surge in energy prices, expectations that future readings could run hotter due to the oil supply disruption make this release particularly important.

U.S. Treasuries retreated again on Thursday with shorter tenors leading the slide amid ongoing focus on the rising price of oil and the broader implications for the global economy. The 2-year note yield settled up 13 basis points to 3.76%, and the 10-year note yield settled up seven basis points to 4.27%.

• S&P Mid Cap 400: +1.2% YTD
• Russell 2000: +0.3% YTD
• S&P 500: -2.5% YTD
• DJIA: -2.9% YTD
• Nasdaq Composite: -4.0% YTD

Reviewing today's data:

• January Housing Starts 1.487 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.387 mln from 1.404 mln, January Building Permits 1.376 mln (Briefing.com consensus 1.392 mln); Prior was revised to 1.455 mln from 1.448 mln
  • The key takeaway from the report is that it beat expectations thanks to strong growth in multi-unit starts while single-unit housing starts were down 2.8% month-over-month.
• January Trade Balance -$54.5 bln (Briefing.com consensus -$67.9 bln); Prior was revised to -$72.9 bln from -$70.3 bln
  • The key takeaway from the report is that the monthly trade deficit returned to the $50 billion range, which has been a familiar zone since last year's implementation of tariffs.
• Weekly Initial Claims 213K (Briefing.com consensus 215K); Prior was revised to 214K from 213K, Weekly Continuing Claims 1.850 mln; Prior was revised to 1.871 mln from 1.868 mln
  • The key takeaway from the report is that claims remain just above the 200,000 mark, reflecting a low-firing environment.