[BRIEFING.COM] The major averages continue to improve from their early lows as tech names pare their losses while the broader market continues to see healthy gains.

The health care sector (+2.5%) is one of today's top performers, extending its week-to-date gain to 5.6%, the best across S&P 500 sectors. Nearly all of the sector's components trade higher, with solid gains across some of its largest holdings such as Eli Lilly (LLY 1144.30, +27.04, +2.42%) and Johnson & Johnson (JNJ 247.54, +6.54, +2.71%).

Meanwhile, Bio-Techne (TECH 70.30, +11.43, +19.41%) holds the widest gain after news that the company will be acquired by Merck KGaA (MKKGY 33.32, +1.47, +4.62%) for $73 per share in cash.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (-0.5%), and DJIA (+1.4%) remain mixed, though tech names are starting to recover from a sharp move lower.

Micron (MU 1166.60, +118.68, +11.33%) is stabilizing after giving back nearly half of its opening gain. The company delivered a much larger-than-expected Q3 beat and an even stronger Q4 outlook, while management used the call to argue that the memory market is becoming more durable and less cyclical. Q3 EPS and revenue were both far above FactSet Consensus estimates, reflecting powerful AI-driven memory demand, tight DRAM and NAND supply, favorable pricing and mix, expanding strategic customer agreements, and record gross profitability, while Q4 guidance also came in well ahead of expectations despite a sharp CapEx ramp.

Micron's report significantly strengthens the case that the current memory upcycle is being driven by more than a short-lived pricing rebound. The key proof points are record gross margin, a Q4 outlook far above consensus, and take-or-pay strategic customer agreements with floor pricing, deposits, and minimum revenue commitments that support capacity planning. The main debate now is whether Micron should still be valued primarily as a classic cyclical memory company or increasingly as a contracted AI infrastructure supplier with better pricing visibility. That question is not settled, because rising CapEx, future supply additions, and eventual moderation in price increases still create execution risk. The next modeling challenge is determining how much of today's record profitability is structural, how much is cycle-driven, and what return MU can generate on the aggressive capacity buildout now underway.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.8%), and DJIA (-0.7%) are mixed amid a volatile morning across mega-cap and semiconductor stocks, though the broader market continues to see solid participation.

Micron (MU 1152.38, +104.46, +9.97%) led the market higher after delivering another massive beat-and-raise earnings report, which initially gave a boost to other memory names and many semiconductor stocks. However, the PHLX Semiconductor is now up just 0.4% after several sharpw swings.

The information technology sector (-1.0%) is firmly lower as its largest components all trade lower. Part of that weakness can be attributed to Micron's earnings release, which showed tight DRAM and NAND supply that will make other mega-cap scales pay a premium for what Micron delivers. Apple (AAPL 279.36, -13.72, -4.68%) is a particular laggard.

Elsewhere, Amazon (AMZN 228.05, -6.22, -2.66%) trades lower while Alphabet (GOOG 340.73, -4.30, -1.25%) extends this week's losses, pushing the communication services (-1.4%) and consumer discretionary (-1.2%) sectors firmly lower as well. The Vanguard Mega Cap Growth ETF is down 1.4%.

While the weakness across high-profile names weighs on the major averages, the broader market leans higher, with eight S&P 500 sectors sporting gains.

The industrials sector (+2.0%) holds the widest gain, with industrial machinery names such as Xylem (XYL 118.84, +6.80, +6.07%) leading the advance. Meanwhile, the health care (+1.4%) and utilities (+1.0%) sectors extend their run of outperformance this week.

The stock market remains poised for a higher opening this morning as semiconductor stocks move higher while investors assess a full slate of economic data.

Personal income increased 0.7% month-over-month in May (Briefing.com consensus: 0.3%) after being unchanged in April. Personal spending also rose 0.7% month-over-month (Briefing.com consensus 0.3%) following a downwardly revised 0.4% increase (from 0.5%) in April. The PCE Price Index was up 0.4%, as expected, and up 4.1% year-over-year versus 3.8% in April. The core PCE Price index, which excludes food and energy, increased 0.3%, also as expected, and was up 3.4% year-over-year versus 3.3% in April.

The key takeaway from the report is that, first, there weren't any headline shocks for the PCE price indexes. They were in line with expectations, allowing participants to assume that next month's readings will look better given the sharp decline in oil prices. Secondly, real PCE was up 0.3% month-over-month, demonstrating that spending was driven by increased demand and not just higher prices. This will be a nice input for Q2 GDP forecasts.

Q1 GDP was revised up to 2.1% (Briefing.com consensus: 1.6%) from the second estimate of 1.6%. The GDP Price Deflator was bumped up to 3.6% (Briefing.com consensus: 3.5%) from the second estimate of 3.5%.

The key takeaway from the report is that Q1 GDP was stronger than originally thought, due primarily to a downward revision to imports, which are a subtraction in GDP calculations.

Initial jobless claims for the week ending June 20 declined by 12,000 to 215,000 (Briefing.com consensus: 225,000), while continuing jobless claims for the week ending June 13 increased by 21,000 to 1.821 million.

The key takeaway from the report is that initial jobless claims continue to track at low levels, offering a nice cue that suggests the labor market, overall, remains on solid ground.

Durable goods orders declined 4.5% month-over-month in May (Briefing.com consensus: -3.2%) following an upwardly revised 8.5% increase (from 7.9%) in April. Excluding transportation, durable goods orders were up a sturdy 1.3% month-over-month (Briefing.com consensus: 0.5%) folliwing an upwardly revised 1.4% increase (from 1.1%) in April.

The key takeaway from the report is that there was a healthy pickup in business spending in May, evidenced by the 1.6% increase in new orders for nondefense capital goods excluding aircraft.

The S&P 500 futures currently trade 73 points above fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with Japan's Nikkei (+4.6%) settling at a fresh record high while Hong Kong's Hang Seng (-1.4%) fell to its lowest level since May 2025. Chip-related names were at the forefront of the overnight strength with SK Hynix, Samsung, and Kioxia leading the way after strong results from Micron. Bank of Japan policymaker Tamura said that the central bank needs to keep hiking rates every few months until reaching the neutral rate of about 2%. Japan's Prime Minister Takaichi said that her government is forming a plan for Japan to become an asset management nation. Thailand's central bank left its policy rate at 1.00%.

• In economic data:
  • Japan's April Leading Index 116.1 (expected 115.9; last 114.0) and Coincident Indicator 1.3% m/m (expected 1.1%; last 0.2%)
  • Australia's May Employment Change 40,300 (expected 31,200; last -40,700), May full employment change 5,200 (last -21,700), May Unemployment Rate 4.4%, as expected (last 4.5%), and May Participation Rate 66.7% (expected 66.7%; last 66.6%)
  • Hong Kong's May trade deficit HKD44.2 bln (last deficit of HKD29.5 bln). May Imports 42.0% m/m (last 44.4%) and Exports 40.8% m/m (last 42.9%)

---Equity Markets---

• Japan's Nikkei: +4.6%
• Hong Kong's Hang Seng: -1.4% 
• China's Shanghai Composite: +0.2%
• India's Sensex: +0.1%
• South Korea's Kospi: +5.4%
• Australia's ASX All Ordinaries: -0.7%

Major European indices trade in the green. Reports from the U.K. indicate that support continues forming around Andy Burnham to become the next prime minister. Discount air carrier EasyJet rejected the fourth takeover offer from Castlelake. Germany is planning to sell $138 bln of debt in Q3. European Central Bank policymaker Schnabel said that there has been an improvement in the short-term situation, but more rate hikes are needed.

• In economic data:
  • Germany's July GfK Consumer Climate -29.2 (expected -27.8; last -29.7)
  • U.K.'s June CBI Distributive Trades Survey -54 (expected -41; last -46)
  • France's June Consumer Confidence 84 (expected 83; last 82)
  • Italy's April Industrial Sales 0.3% m/m (last 1.8%); 3.2% yr/yr (last 4.2%)
  • Spain's Q1 GDP 0.6% qtr/qtr, as expected (last 0.8%); 2.7% yr/yr, as expected (last 2.7%). May PPI 10.5% yr/yr (last 8.3%)

---Equity Markets---

• STOXX Europe 600: +0.9%
• Germany's DAX: +1.1%
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.5%

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

Just released, personal income for May increased 0.7% (Briefing.com consensus 0.3%) after an unchanged reading in April.

Personal spending rose 0.7% month-over-month (Briefing.com consensus 0.3%) following a downwardly revised 0.4% increase (from 0.5%) in April.

The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus 0.4%), from a prior increase of 0.4%.

The core PCE Price Index rose 0.3% (Briefing.com consensus 0.3%), from an upwardly revised prior increase of 0.3% (from 0.2%).

The third estimate of Q1 GDP showed an upward revision to an annual rate of 2.1% (Briefing.com consensus 1.6%) from 1.6% in the second estimate.

The GDP Chain Deflator was revised up to 3.6% (Briefing.com consensus 3.5%) from 3.5% in the second estimate.

Durable goods orders decreased 4.5% month-over-month in May (Briefing.com consensus -3.2%) after increasing a revised 8.5% (from 7.9%) in April.

Excluding transportation, orders were up 1.3 % month-over-month (Briefing.com consensus 0.5%) following an upwardly revised 1.4% increase (from 1.1%) in April.

Initial jobless claims for the week ending June 20 decreased by 12,000 to 215,000 (Briefing.com consensus: 225,000) from a revised prior reading of 227,000 (from 226,000).

Continuing jobless claims for the week ending June 13 increased by 21,000 to 1.821 million, from the revised previous level of 1.800 million (from 1.810 million).

Equity futures point to a higher opening this morning as semiconductor stocks rally following a blowout earnings report from Micron (MU 1,235.38, +187.46, +17.9%) yesterday evening.

The major averages are coming off a mostly lower showing, with afternoon pressure across semiconductor stocks and other prominent tech names offsetting another session of broader market participation as oil prices and Treasury yields continued to fall.

The S&P 500 (-1.9% week-to-date), Nasdaq Composite (-3.9% week-to-date), and DJIA (+0.6% week-to-date) enter the back half of the week showing signs of bifurcation between tech names and the broader market this week, though Micron's earnings (and a host of other AI-related headlines) could help close the gap in today's session.

The market also has a full slate of economic data releases on the calendar this morning, which includes the May Personal Income and Spending report. Notably, that report contains the PCE Price Index (Briefing.com consensus 0.4%), which is the Fed's preferred inflation gauge.

In corporate news:

• IBM (IBM 268.75, +5.79, +2.2%) unveiled a major semiconductor breakthrough with the introduction of the world's first sub-1 nanometer chip technology.
• Micron (MU 1,235.38, +187.46) beat EPS expectations by $4.28, beat revenue expectations, and guided Q4 EPS revenues above consensus.
• Qualcomm (QCOM 217.75, +20.34, +10.3%) accelerates diversification with a strategy for Data Center and sees multiple inflection points over the next 3-5 years; sees Data Center revs above $15 billion by FY29

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with Japan's Nikkei (+4.6%) settling at a fresh record high while Hong Kong's Hang Seng (-1.4%) fell to its lowest level since May 2025. Japan's Nikkei: +4.6%, Hong Kong's Hang Seng: -1.4%, China's Shanghai Composite: +0.2%, India's Sensex: +0.1%, South Korea's Kospi: +5.4%, Australia's ASX All Ordinaries: -0.7%.

In news:

• Chip-related names were at the forefront of the overnight strength with SK Hynix, Samsung, and Kioxia leading the way after strong results from Micron.
• Bank of Japan policymaker Tamura said that the central bank needs to keep hiking rates every few months until reaching the neutral rate of about 2%.
• Japan's Prime Minister Takaichi said that her government is forming a plan for Japan to become an asset management nation.
• Thailand's central bank left its policy rate at 1.00%.

In economic data:

• Japan's April Leading Index 116.1 (expected 115.9; last 114.0) and Coincident Indicator 1.3% m/m (expected 1.1%; last 0.2%)
• Australia's May Employment Change 40,300 (expected 31,200; last -40,700), May full employment change 5,200 (last -21,700), May Unemployment Rate 4.4%, as expected (last 4.5%), and May Participation Rate 66.7% (expected 66.7%; last 66.6%)
• Hong Kong's May trade deficit HKD44.2 bln (last deficit of HKD29.5 bln). May Imports 42.0% m/m (last 44.4%) and Exports 40.8% m/m (last 42.9%)

Major European indices trade in the green. STOXX Europe 600: +0.7%, Germany's DAX: +0.7%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.6%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.3%.

In news:

• Reports from the U.K. indicate that support continues forming around Andy Burnham to become the next prime minister.
• Discount air carrier EasyJet rejected the fourth takeover offer from Castlelake.
• Germany is planning to sell $138 bln of debt in Q3.
• European Central Bank policymaker Schnabel said that there has been an improvement in the short-term situation, but more rate hikes are needed.

In economic data:

• Germany's July GfK Consumer Climate -29.2 (expected -27.8; last -29.7)
• U.K.'s June CBI Distributive Trades Survey -54 (expected -41; last -46)
• France's June Consumer Confidence 84 (expected 83; last 82)
• Italy's April Industrial Sales 0.3% m/m (last 1.8%); 3.2% yr/yr (last 4.2%)
• Spain's Q1 GDP 0.6% qtr/qtr, as expected (last 0.8%); 2.7% yr/yr, as expected (last 2.7%). May PPI 10.5% yr/yr (last 8.3%)

[BRIEFING.COM] The major averages finished the midweek session mostly lower as mounting losses across semiconductor and mega-cap names weighed on the S&P 500 (-0.1%) and Nasdaq Composite (-0.4%) this afternoon. The DJIA (+0.4%) escaped with a modest gain following another solid showing from the broader market that was supported by another retreat in oil prices and Treasury yields.

Stocks traded in a relatively stable range for the first half of the session. Semiconductor performance was mixed, despite premarket gains indicating a possible buy-the-dip move after yesterday's retreat and a solid rebound across South Korean tech stocks.

Meanwhile, other mega-cap tech names provided the market with the boost that some investors were expecting from the semiconductor group. At midday, all of the "magnificent seven" cohort traded higher, as mega-caps took part in the broader rally as oil prices and Treasury yields retreated. The gains would not hold.

Only one "magnificent seven" name would finish with a slight gain, sending the Vanguard Mega Cap Growth ETF (-0.4%) lower after it had held a nearly 1% gain earlier in the session.

The information technology sector (-0.6%) finished as one of the worst-performing S&P 500 sectors as its largest components reversed course. Losses ramped up across semiconductor names, but the group made a last-minute push higher ahead of Micron's (MU 1047.22, -4.55, -0.43%) earnings release that saw the PHLX Semiconductor Index (-0.2%) finish with just a modest loss.

The communication services sector (-0.6%) also finished lower, with Alphabet (GOOG 345.02, -1.06, -0.30%) reversing an earlier gain after Bloomberg reported that two additional artificial intelligence researchers have left the company to join Anthropic.

While the afternoon reversal across technology capped gains at the index level, the broader market continued to perform well, reinforcing analyst commentary that market leadership is steadily broadening beneath the surface.

Six S&P 500 sectors finished higher, with the industrials sector (+1.2%) leading the advance as progressing negotiations between the U.S. and Iran and increased traffic through the Strait of Hormuz sent oil prices and Treasury yields firmly lower. The lower-yield environment was particularly supportive of construction-related names such as Builders FirstSource (BLDR 85.41, +8.68, +11.31%), while airlines such as United Airlines (UAL 130.54, +8.99, +7.40%) benefited from the retreat in oil prices, with WTI crude dipping below $70 per barrel.

The consumer discretionary sector (+0.8%) fared similarly, with travel-related names such as Booking Holdings (BKNG 181.28, +12.34, +7.30%) and Expedia Group (EXPE 262.15, +17.08, +6.97%) moving sharply higher, while homebuilders including PulteGroup (PHM 135.70, +9.15, +7.23%) and Lennar (LEN 92.96, +5.61, +6.42%) also outperformed. The iShares U.S Home Construction ETF finished 6.2% higher.

The defensive utilities (+1.1%), health care (+0.8%), and consumer staples (+0.6%) also extended this week's outperformance amid the volatility across tech names.

Unsurprisingly, the energy sector (-1.7%) was a laggard amid the retreat in oil prices. Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.6%) escaped with a portion of their earlier gains.

Overall, today's session extended the recent trend of heightened volatility across semiconductor and other mega-cap technology stocks, but it did little to derail the market's improving underlying backdrop. The DJIA's year-to-date gain now stands at 7.9%, edging ahead of the S&P 500's 7.5% advance as investors continue rotating into other pockets of the market rather than exiting equities altogether. Attention now turns to Micron's earnings report after the close, which could determine whether semiconductor stocks once again attract a meaningful buy-the-dip bid following another volatile session.

U.S. Treasuries climbed on Wednesday, making for a swift continuation of yesterday's bounce, which followed the highest settlement in the 2-year note yield since February 2025.  The complex settled on highs even though the U.S. Treasury's $70 billion 5-year note auction at 13:00 ET met underwhelming demand. The 2-year note yield settled down five basis points to 4.14%, and the 10-year note yield settled down nine basis points to 4.40%. 

• Russell 2000: +20.3% YTD
• S&P Mid Cap 400: +14.6% YTD
• Nasdaq Composite: +9.6% YTD
• DJIA: +7.8% YTD
• S&P 500: +7.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.0%; Prior -3.8%
• Q1 Current Account Balance -$226.8 bln (Briefing.com consensus -$237.5 bln); Prior was revised to -$221.1 bln from -$190.7 bln
• May New Home Sales 580K (Briefing.com consensus 627K); Prior was revised to 626K from 622K
  • The key takeaway from the report is that new home sales in May were pressured by affordability constraints tied to rising mortgage rates. Notably, the West region, which features the highest-priced homes, saw the biggest hit to sales month-over-month; however, there was also weakness in the more affordable South region, which is the nation's largest homebuilding market.