[BRIEFING.COM] The major averages remain little changed from previous values shortly after midday.

Sector strength now has a positive tilt, with seven S&P 500 sectors trading at or above their baselines.

The information technology sector (+1.4%) remains a standout, supported by broad strength across its semiconductor and software components.

Microsoft (MSFT 426.26, +13.59, +3.29%) is a "Magnificent Seven" standout, moving higher following a report from The Information that the company will soon unveil a new AI-powered coding framework.

[BRIEFING.COM] The major averages are higher across the board at midday.

Several retailer names are posting wide gains today following the latest batch of earnings reports.

Best Buy (BBY 75.74, +11.20, +17.35%) is among the top-performing S&P 500 names following a better-than-expected Q1 earnings report in which the consumer electronics retailer topped both EPS and revenue estimates, posted a sharp operating margin expansion, and reaffirmed its full-year guidance, demonstrating resilience in a challenging tariff and macroeconomic environment.

Dollar Tree (DLTR 112.64, +16.76, +17.49%) holds a nearly identical gain after topping earnings expectations and issuing upside EPS guidance.

Though not a component of the S&P 500, Kohl's (KSS 15.14, +2.22, +17.18%) holds a similar gain after a better-than-feared earnings report.

The State Street SPDR S&P Retail ETF is up 1.8%.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (flat) are mostly higher just before midday, with the S&P 500 capturing a fresh all-time high.

Stocks opened under pressure after reports that the U.S. and Iran exchanged strikes sent oil prices and Treasury yields higher. Less than an hour after the open, however, Axios reported that U.S. and Iranian negotiators reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and begin negotiations over Iran's nuclear program, though the deal still awaits President Trump's approval. Oil prices moved lower in response, and Treasury yields are now modestly lower across the curve.

As a result, losses across the broader market, particularly in cyclical sectors, have narrowed considerably from their earlier levels.

Meanwhile, the top-weighted information technology sector (+1.2%) has made a decisive move higher. The sector had been little changed earlier in the session as strong gains across software names following the latest batch of earnings reports offset weakness in semiconductors, but the PHLX Semiconductor Index has since turned higher and now sports a 1.2% gain.

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 continue to trade mostly higher, with tech names now driving the gains.

Snowflake (SNOW 236.02, +60.76, +34.67%) is surging following a blowout Q1 earnings report, raised FY27 guidance, a landmark $6 bln multi-year AWS strategic collaboration agreement, and a definitive agreement to acquire Natoma, collectively signaling that Snowflake has reached an inflection point in enterprise agentic AI monetization.

This was a landmark quarter for Snowflake on virtually every dimension. The 34% product revenue growth acceleration, 126% NRR, and $9.21 billion RPO paint a picture of a platform actively monetizing AI in production, not merely benefiting from enthusiasm. CoCo and Snowflake Intelligence are now contributing meaningfully to revenue while driving a virtuous loop of accelerating platform consumption. The $6 billion AWS deal secures Snowflake's infrastructure roadmap and deepens its go-to-market reach, while the Natoma acquisition fills a critical gap in secure, governed AI agent connectivity across the enterprise application ecosystem. With reaccelerating revenue growth and expanding margins occurring simultaneously, the key variables to watch are CoCo and Snowflake Intelligence monetization trajectories and whether the AWS partnership translates into measurable large-account expansion in the back half of FY27.

Though not a member of the S&P 500 itself, Snowflake's blowout report has translated to some enthusiasm across the software space, with names such as Oracle (ORCL 203.17, +12.21, +6.39%) and ServiceNow (NOW 107.30, +5.18, +5.07%) posting strong gains.

Elsewhere in the information technology sector (+0.9%), semiconductor names have shaken off their early weakness, with the PHLX Semiconductor Index now up 0.6%.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (flat) are now mostly higher, with the S&P 500 notching a fresh all-time high after Axios reported that U.S. and Iranian negotiators reached an agreement on a 60-day memorandum of understanding that would extend the ceasefire and launch negotiations over Iran's nuclear program, though President Trump has not yet approved the deal.

Crude oil has moved back below $89 per barrel, and Treasury yields are now modestly lower across the curve.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (flat), and DJIA (-0.2%) are flattish this morning as a spike in oil prices puts relatively broad pressure on the market.

Losses are widest in cyclical pockets of the market, such as the industrials (-1.1%), materials (-1.0%), and consumer discretionary (-0.6%) sectors, with homebuilders, railroad, and metals names among the underperformers.

Meanwhile, the top-weighted information technology sector (+0.1%) holds a modest gain. Semiconductor names are extending yesterday's pullback, but several strong earnings reports from software companies have the iShares GS Software ETF up 2.1%.

The energy sector (+0.6%) outperforms amid the increase in oil prices, while the health care sector (+0.9%) holds the widest gain, supported by broad strength and a sharp gain in A after the company topped earnings estimates.

Just released, new home sales decreased 6.2% month-over-month in April to a seasonally adjusted annual rate of 622,000.

The stock market is now on track for a modestly higher opening following several key economic data releases.

Personal income for April decreased slightly, resulting in an unchanged month-over-month reading (Briefing.com consensus 0.5%) after a revised 0.5% increase (from 0.6%) in March. Personal spending rose 0.5% month-over-month (Briefing.com consensus 0.4%) following a revised 1.0% increase (from 0.9%) in March. The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus 0.5%), leaving it up 3.8% yr/yr versus 3.5% in March. The core PCE Price Index rose 0.2% (Briefing.com consensus 0.3%), leaving it up 3.3% yr/yr versus 3.2% in March.

The key takeaway from the report is that the lack of income growth combined with an acceleration in the year-over-year core PCE Price Index (to 3.3% from 3.2%) will invite stagflationary concerns, especially if this dynamic continues in the following months.

Separately, the second estimate of Q1 GDP showed a downward revision to an annual rate of 1.6% (Briefing.com consensus 2.0%) from 2.0% in the advance estimate. The GDP Chain Deflator was revised down to 3.5% (Briefing.com consensus 4.5%) from 3.6% in the advance estimate.

The key takeaway from the report is that investment and consumer spending in Q1 were weaker than previously estimated while government spending and the impact of trade were essentially unchanged from the advance estimate.

Initial jobless claims for the week ending May 23 increased by 5,000 to 215,000 (Briefing.com consensus 214,000) from last week's revised reading of 210,000 (from 209,000), while continuing jobless claims for the week ending May 16 rose to 1.786 million from a revised 1.771 million (from 1.782 million) in the prior week.

The key takeaway from the report is that even with this increase in initial and continuing claims, the overall level of jobless claims remains relatively low.

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

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note while markets in India were closed for a holiday. Overall investor sentiment was dampened by reports of U.S. strikes on Iranian targets. Japan's extra budget bill will be sent to the parliament next week. The Bank of Korea left its policy rate at 2.50%, as expected, though a couple of rate hikes are being planned for the next six months.

• In economic data:
  • Hong Kong's April trade deficit HKD29.5 bln (last deficit of HKD89.1 bln). April Imports 44.4% m/m (last 41.2%) and Exports 42.9% m/m (last 35.8%)
  • Australia's Q1 Building Capital Expenditure -3.8% qtr/qtr (last 2.5%), Q1 Private New Capital Expenditure 6.5% qtr/qtr (expected 1.2%; last 0.7%, and Q1 Plant/Machinery Capital Expenditure 18.1% qtr/qtr (last -1.3%)
  • New Zealand's January Budget deficit NZD9.31 bln (last deficit of NZD14.80 bln)

---Equity Markets---

• Japan's Nikkei: -0.5%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: +0.1%
• India's Sensex: CLOSED
• South Korea's Kospi: -0.5%
• Australia's ASX All Ordinaries: -1.4%

Major European indices trade mostly lower amid some concerns about the lasting power of the U.S.-Iran ceasefire. European Central Bank Chief Economist Lane said that secondary effects of inflation will be visible for a while even if the energy shock starts to recede, contributing to the market's view that a rate hike will be announced in June. The EU is looking to tighten limits on duty-free steel imports from China.

• In economic data:
  • Eurozone's May Business and Consumer Survey 93.5 (expected 92.8; last 93.2)
  • France's April PPI -2.1% m/m (last 1.9%); 2.1% yr/yr (last 0.0%)
  • Italy's May Business Confidence 87.9 (expected 87.5; last 87.9) and Consumer Confidence 93.4 (expected 90.1; last 90.8). April PPI 0.3% m/m (last 4.4%); 6.8% yr/yr (last 4.2%)
  • Spain's April Retail Sales 0.8% yr/yr (last 4.1%)

---Equity Markets---

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

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

Personal income for April was flat month-over-month (Briefing.com consensus: 0.5%) following a downwardly revised 0.5% increase (from 0.6%) for March.

Personal spending jumped 0.5% month-over-month (Briefing.com consensus: 0.4%) following an upwardly revised 1.0% increase (from 0.9%) in March.

The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus: 0.5%), leaving it up 3.8% yr/yr versus 3.5% in MArch.

The core PCE Price Index rose 0.2% (Briefing.com consensus: 0.3%), leaving it up 3.3% yr/yr versus 3.2% in March.

The Second Estimate Q1 GDP report showed real GDP increasing at an annual rate of 1.6% (Briefing.com consensus: 2.0%) versus the advance estimate of 2.0%

The GDP Chain Deflator was up 3.5% (Briefing.com consensus: 4.5%) following the advance estimate of 3.6%

Durable goods orders increased 7.9% month-over-month in March (Briefing.com consensus: 1.7%) following an upwardly revised 1.3% increase (from 0.8%) in March.

Excluding transportation, orders were up 1.1% month-over-month (Briefing.com consensus: 0.5%) following an upwardly revised 1.1% increase (from 0.9%) in March.

Initial jobless claims for the week ending May 23 increased by 5,000 to 215,000 (Briefing.com consensus: 214,000), from an upwardly revised prior level of 210,000 (from 209,000). 

Continuing jobless claims for the week ending May 16 increased by 15,000 to 1.786 million, from a downwardly revised prior level of 1.771 million (from 1.782 million). 

Equity futures point to a modestly lower opening this morning as an escalation in hostilities between the U.S. and Iran sends oil prices higher. Stocks are coming off a slightly higher finish that saw the DJIA notch fresh record highs and the S&P 500 capture a record closing high, though gains were limited by some profit-taking across semiconductor names after the group rallied earlier this week.

This morning's weakness is attributed to fresh U.S. strikes against Iran and reports that Iran retaliated against a U.S. airbase in response, according to NBC News. Crude oil is currently up $2.66 (+3.0%) to $91.34 per barrel, which has pushed Treasury yields modestly higher across the curve. However, yields and oil prices are both firmly lower for the week.

Outside of geopolitics, the market has a moderate batch of earnings reports to assess this morning, with several tech and retailer names poised for sharp opening gains after topping expectations.

This morning is also relatively heavy on the economic data front, with notable releases including the April Personal Income and Outlays report, which features the PCE Price Index (Briefing.com consensus 0.5%), weekly initial jobless claims (Briefing.com consensus 214K), and April New Home Sales.

In corporate news:

• Dell (DELL 318.30, +12.98, +4.3%) was awarded a $9.69 billion single-award, firm-fixed-price blanket purchase agreement under the Department of War Enterprise Software Initiative.
• Dollar Tree (DLTR 106.95, +11.08, +11.6%) beat EPS expectations by $0.21, reported revenues in-line, and guided Q2 and FY27 EPS above consensus with revenues in-line.
• Snowflake (SNOW 241.53, +66.27, +37.8%) trades sharply higher in the premarket after a beat-and-raise earnings report and signing a multi-year strategic collaboration agreement with Amazon Web Services.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note while markets in India were closed for a holiday. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: +0.1%, India's Sensex: CLOSED, South Korea's Kospi: -0.5%, Australia's ASX All Ordinaries: -1.4%.

In news:

• Overall investor sentiment was dampened by reports of U.S. strikes on Iranian targets.
• Japan's extra budget bill will be sent to the parliament next week.
• The Bank of Korea left its policy rate at 2.50%, as expected, though a couple of rate hikes are being planned for the next six months.

In economic data:

• Hong Kong's April trade deficit HKD29.5 bln (last deficit of HKD89.1 bln). April Imports 44.4% m/m (last 41.2%) and Exports 42.9% m/m (last 35.8%)
• Australia's Q1 Building Capital Expenditure -3.8% qtr/qtr (last 2.5%), Q1 Private New Capital Expenditure 6.5% qtr/qtr (expected 1.2%; last 0.7%, and Q1 Plant/Machinery Capital Expenditure 18.1% qtr/qtr (last -1.3%)
• New Zealand's January Budget deficit NZD9.31 bln (last deficit of NZD14.80 bln)

Major European indices trade mostly lower amid some concerns about the lasting power of the U.S.-Iran ceasefire. STOXX Europe 600: -0.8%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -1.1%, France's CAC 40: -0.6%, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: -0.6%.

In news:

• European Central Bank Chief Economist Lane said that secondary effects of inflation will be visible for a while even if the energy shock starts to recede, contributing to the market's view that a rate hike will be announced in June.
• The EU is looking to tighten limits on duty-free steel imports from China.

In economic data:

• Eurozone's May Business and Consumer Survey 93.5 (expected 92.8; last 93.2)
• France's April PPI -2.1% m/m (last 1.9%); 2.1% yr/yr (last 0.0%)
• Italy's May Business Confidence 87.9 (expected 87.5; last 87.9) and Consumer Confidence 93.4 (expected 90.1; last 90.8). April PPI 0.3% m/m (last 4.4%); 6.8% yr/yr (last 4.2%)
• Spain's April Retail Sales 0.8% yr/yr (last 4.1%)

[BRIEFING.COM] The stock market had a relatively quiet session, with some profit-taking across semiconductor names limiting gains across the S&P 500 (flat) and Nasdaq Composite (+0.1%), while another retreat in oil prices supported strength in the broader market, sending the DJIA (+0.4%) to fresh record highs.

While the S&P 500 managed to capture a record closing high, the index spent much of the session in negative territory, which was largely due to weakness in the information technology sector (-0.4%). The sector finished well off its session lows, but semiconductor names remained a point of weakness following yesterday's Micron-led rally.

Micron (MU 928.41, +32.53, +3.63%) and other memory storage names managed to finish the session with gains, but large chipmakers such as NVIDIA (NVDA 212.60, -2.26, -1.05%) and Intel (INTC 121.77, -1.75, -1.42%) traded lower, while Qualcomm (QCOM 233.40, -15.42, -6.20%) was a notable laggard.

The PHLX Semiconductor Index finished 1.4% lower.

The information technology sector was one of five S&P 500 sectors to finish lower today, though losses elsewhere were generally modest.

The financials sector (-0.8%) was another laggard, with particular weakness across investment manager and insurance names. JPMorgan Chase (JPM 299.28, -7.46, -2.43%) traded lower after CEO Jamie Dimon said at a conference that the bank could commit $10 billion to $20 billion toward an acquisition in the coming years.

Elsewhere, the energy sector (-1.5%) finished with the widest loss as optimism surrounding a potential peace agreement between the U.S. and Iran sent oil prices sharply lower again today. The White House denied reports from Iranian state media suggesting the two sides are close to finalizing a memorandum of understanding that would restore traffic through the Strait of Hormuz, though Secretary of State Marco Rubio said during a cabinet meeting that some progress has been made toward a peace agreement.

Crude oil futures settled today's session $5.29 lower (-5.6%) at $88.60 per barrel.

Airlines, cruise lines, and homebuilders all outperformed again today, with the latter two groups helping lift the consumer discretionary sector (+1.9%). Treasury yields also moved modestly lower, and the iShares U.S. Home Construction ETF advanced 1.6%.

Elsewhere in the sector, Amazon (AMZN 271.85, +6.56, +2.47%) provided solid mega-cap leadership, while MGM Resorts (MGM 41.95, +3.50, +9.10%) was among the best-performing S&P 500 components after several brokerage upgrades.

The consumer staples sector (+1.0%) also outperformed as investors did some bargain hunting following yesterday's retreat, while Meta Platforms (META 635.26, +22.92, +3.74%) moved higher this afternoon after TechCrunch reported that the company plans to introduce global consumer subscription offerings, helping lift the communication services sector (+0.7%) to its best levels of the session.

Overall, stocks remained near record levels despite some consolidation across semiconductor names, while falling oil prices continued to reinforce optimism that a U.S.-Iran agreement is becoming increasingly plausible. At the same time, investors have continued to show a willingness to buy dips across semiconductors and other AI-related names, which could fuel another push further into record territory.

U.S. Treasuries padded this week's gains during an otherwise quiet Wednesday session. Treasuries set fresh lows after today's $70 billion 5-year note auction met weaker demand than yesterday's solid 2-year note sale, but the last couple hours saw a return to pre-auction levels. The 2-year note yield settled down two basis points to 4.03%, the 5-year note yield settled down one basis point to 4.18%, and the 10-year note yield settled down one basis point to 4.48%. 

• Russell 2000: +17.7% YTD
• Nasdaq Composite: +14.8% YTD
• S&P Mid Cap 400: +12.4% YTD
• S&P 500: +9.9% YTD
• DJIA: +5.4% YTD

Reviewing today's data:

• The weekly MBA Mortgage Index fell 8.5% to follow last week's 2.3% decrease. The Purchase Index was down 0.4% while the Refinance Index fell 18.1%.