[BRIEFING.COM] The stock market is mixed just after midday, with strength in select large-cap technology stocks helping offset weakness in the broader market. The S&P 500 (+0.2%), Nasdaq Composite (+0.5%), and DJIA (-0.3%) are mostly higher, trading in a relatively stable range throughout the session as the market's most important drivers came before the open.

The primary catalyst today is a surge in crude oil prices after reports that Iran has stopped messaging the U.S. in protest of Israel's strikes in Lebanon. Axios reported that Hezbollah has signaled readiness for a full ceasefire with Israel, but crude oil remains $6.93 (+7.9%) higher at $94.29 per barrel.

Technology stocks are providing an important offset. NVIDIA (NVDA 221.83, +10.69, +5.06%) and Microsoft (MSFT 462.04, +11.80, +2.62%) are higher after announcing a partnership to build a secure Windows platform for on-device AI agents as part of NVIDIA's push deeper into the personal computer market. The news is also driving strength in Dell (DELL 454.33, +33.42, +7.94%), while software stocks broadly continue their recent rebound effort.

Outside of technology sector (+1.9%), however, participation remains limited, with many mega-cap stocks trading lower and broader market measures, including small- and mid-cap stocks, underperforming. The consumer discretionary (-2.4%) and utilities (-2.4%) are among the weakest groups as the jump in oil prices pressures sentiment, though nine total S&P 500 sectors trade lower.

The major averages have traded within a relatively stable range since the open, although several M&A-related headlines have generated notable stock-specific moves. MGM Resorts (MGM 50.52, +6.84, +15.67%) is sharply higher after confirming it received an acquisition proposal from IAC, while Taylor Morrison Home (TMHC 71.64, +13.14, +22.47%) is surging following news that Berkshire Hathaway Inc. (BRK-B 468.86, -5.62, -1.18%) agreed to acquire the company in an $8.5 billion all-cash transaction.

Separately, FedEx (FDX 334.52, -77.22, -18.76%) completed the spin-off of FedEx Freight (FDXF 156.52, -3.85, -2.40%), which began regular-way trading today as an independent publicly traded company.

In sum, strong gains in a handful of AI-related technology stocks are helping offset the broader headwinds created by the sharp spike in oil prices and renewed geopolitical uncertainty.

Reviewing today's data:

• May S&P Global U.S. Manufacturing PMI - Final 55.1 (May Prelim was 55.3)
• April Construction Spending: 0.4% vs Briefing.com consensus of 0.3%; March was revised to 0.2% from 0.6%
  • The key takeaway from the report is that it included a sharp downward revision to growth rate from March (0.2%), resulting in a weak report overall. New single-family construction spending increased a solid 1.4% in April but was still down 2.9% year-over-year.
• May ISM Manufacturing Index 54.0% vs Briefing.com consensus of 53.1%; April was 52.7
  • The key takeaway from the report is that it continued showing some stagflationary elements for the second consecutive month, as employment remained in contraction-though at a slower rate-while the prices index only dipped slightly from its sharpest increase since early 2022.

[BRIEFING.COM] The major averages remain little changed from previous levels. 

FedEx (FDX 335.83, -75.92, -18.44%) announced the completion of its spin-off of FedEx Freight (FDXF 155.88, -4.49, -2.80%), establishing FedEx Freight as an independent, publicly traded company and focused leader in the North American less-than-truckload (LTL) industry. FedEx Freight common stock will begin "regular way" trading today on the NYSE under the ticker symbol "FDXF." FedEx will continue to trade on the NYSE under the ticker symbol "FDX."

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) sit mostly higher at midday.

Despite the relatively muted action since this morning's premarket drivers, there are a few notable stock-specific moves today related to mergers and acquisitions.

MGM Resorts (MGM 50.10, +6.44, +14.74%) is the best-performing S&P 500 name after confirming that it received an offer today from People Incorporated (IAC) to acquire all of the outstanding shares of the Company that it does not already own for $48.30 per share in cash.

Elsewhere, Berkshire Hathaway Inc. (BRK-B 469.49, -4.99, -1.05%) agreed to acquire Taylor Morrison Home (TMHC 71.60, +13.10, +22.39%) in an all-cash transaction valued at approximately $8.5 billion, marking one of the first major strategic deals under new CEO Greg Abel and the conglomerate's most significant bet yet on the long-term recovery of the U.S. housing market. The offer price of $72.50 per share represents a 24% premium to Friday's close, and the deal is expected to close in 2H26 pending shareholder and regulatory approvals.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.2%), and DJIA (-0.3%) are mixed shortly before midday as solid tech leadership helps balance out broad weakness inflicted by a spike in oil prices.

Premarket coverage largely centered around NVIDIA (NVDA 219.51, +8.37, +3.96%) and Microsoft's (MSFT 460.85, +10.61, +2.36%) newly announced partnership to build a secure Windows platform for on-device AI agents. Dell (DELL 455.18, +34.26, +8.14%) also trades sharply higher on the announcement.

Elsewhere in the sector, software names are extending their recent rebound effort, with the iShares GS Software currently up 4.8%.

The energy sector (+2.3%) is the only other S&P 500 sector that trades higher, which is a result of a spike in oil prices just before the open that followed reports that Iran has stopped messaging the U.S. in protest of Israel's strikes in Lebanon. Crude oil is up $6.67 (+7.6%) to $94.03 per barrel, which weighs heavily on oil and rate-sensitive pockets of the market.

The consumer discretionary (-2.2%) and utilities (-2.2%) sectors currently hold the widest losses, while outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-0.5%) lag.

[BRIEFING.COM] The major averages remain mixed, with relatively weak participation in the broader market.

The ISM Manufacturing Index hit 54.0% in May (Briefing.com consensus 53.1%), up from 52.7% in April. The dividing line between expansion and contraction is 50.0%, so the May figure suggests an acceleration in the rate of change in manufacturing activity compared to April.

The key takeaway from the report is that it continued showing some stagflationary elements for the second consecutive month, as employment remained in contraction-though at a slower rate-while the prices index only dipped slightly from its sharpest increase since early 2022.

Construction spending increased 0.4% month-over-month in April (Briefing.com consensus 0.3%) after increasing a revised 0.2% (from 0.6%) in March. On a year-over-year basis, construction spending was up 0.9%.

The key takeaway from the report is that it included a sharp downward revision to growth rate from March (0.2%), resulting in a weak report overall. New single-family construction spending increased a solid 1.4% in April but was still down 2.9% year-over-year.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.1%), and DJIA (-0.2%) are now mixed as broader weakness continues to weigh against some solid gains in technology.

NVIDIA (NVDA 221.24, +10.10, +4.79%) is moving deeper into the PC market after unveiling RTX Spark, a new AI-focused superchip for Windows PCs that could create an entirely new category of AI-first computers capable of running sophisticated AI agents locally. NVIDIA partnered with Microsoft (MSFT 461.28, +11.04, +2.45%) to build a secure Windows platform for on-device AI agents, addressing privacy and security concerns that have limited broader adoption of AI assistants.

NVIDIA's RTX Spark announcement represents one of the company's most ambitious attempts yet to reshape the PC landscape. Rather than simply offering faster hardware, NVIDIA is positioning the PC as an AI-native platform capable of running advanced AI agents locally, potentially reducing reliance on cloud infrastructure for many everyday AI tasks. The strategy bears some resemblance to Apple's successful transition to vertically integrated silicon, bringing NVIDIA's CUDA, RTX, AI software, and hardware ecosystem together into a single platform. The broader significance is that NVIDIA is effectively challenging the long-standing dominance of Intel (INTC 109.02, -5.66, -4.94%) and Advanced Micro Devices (AMD 498.00, -18.10, -3.51%) in PC processors. If RTX Spark delivers competitive performance, battery life, and software compatibility, it could accelerate the adoption of Arm-based Windows PCs while establishing a new category of AI-first devices.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) are modestly lower as a sharp spike in oil prices weighs on the broader market, while another strong showing from tech names is helping limit losses at the index level.

Crude oil prices surged just before the open following reports that Iran has stopped messaging the U.S. in protest of Israel's strikes on Lebanon. WTI crude is currently $6.28 (+7.2%) higher to $93.64 per barrel.

The energy sector (+1.7%) is sharply higher, though the news results in weakness across the broader market, with nine S&P 500 sectors trading lower.

The information technology sector (+1.1%) is the only other sector that trades higher, with NVIDIA (NVDA 218.82, +7.68, +3.64%), Microsoft (MSFT 464.59, +14.35, +3.19%), and Dell (DELL 445.48, +24.57, +5.84%) all moving higher together following news of a collaboration on NVIDIA's push into personal computer processors. Software names are also extending their recent push, with the iShares GS Software ETF up 3%.

On the data front, the May S&P Global U.S. Manufacturing PMI came in at 55.1%, down slightly from the earlier reading of 55.3%.

Construction spending increased 0.4% month-over-month in April (Briefing.com consensus: 0.3%) following a downwardly revised 0.2% increase in March (from 0.6%).

The ISM Manufacturing Index checked in at 54.0% for May (Briefing.com consensus: 53.1%), up from the 52.7 reading in April.

The stock market remains on track for a modestly higher opening, with NVIDIA's (NVDA 216.06, +4.92, +2.3%) push into personal computer processors setting a host of tech names up for notable initial moves.

Meanwhile, oil prices have come down modestly from their highest levels this morning, with WTI crude oil back below the $90 per barrel mark. U.S. Central Command said the U.S. intercepted two Iranian ballistic missiles targeting U.S. forces in Kuwait, according to CNBC.

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

Equity indices in the Asia-Pacific region began the week on a mixed note with Japan's Nikkei (+0.9%) and South Korea's Kospi (+3.7%) setting fresh record highs. Japan reported much weaker than expected capital spending for Q1, fueling speculation that Q1 GDP reading will be revised down, though the market continues expecting a rate hike from the Bank of Japan in the near future. China's official PMI readings for May essentially reflected a standstill in activity while Australia's Manufacturing PMI expanded for the second consecutive month and Japan's reading expanded for the fifth month in a row.

• In economic data:
  • China's May Manufacturing PMI 50.0 (expected 50.2; last 50.3) and Non-Manufacturing PMI 50.1 (expected 49.5; last 49.4). RatingDog Manufacturing PMI 51.8 (expected 51.4; last 52.2)
  • Japan's Q1 Capital Spending 0.0% qtr/qtr (expected 4.1%; last 6.5%). May Manufacturing PMI 54.5, as expected (last 55.1)
  • South Korea's May trade surplus $26.95 bln (expected surplus of $24.30 bln; last surplus of $23.76 bln). May Imports 20.8% yr/yr (expected 21.5%; last 16.7%) and Exports 53.2% yr/yr (expected 48.4%; last 48.0%). May Manufacturing PMI 54.8 (last 53.6)
  • Australia's May Manufacturing PMI 50.7 (expected 50.2; last 51.3). May MI Inflation Gauge -0.3% m/m (last 0.6%) and May ANZ Job Advertisements 1.8% m/m (last -0.6%). May Commodity Prices 16.8% yr/yr (last 15.1%)
  • India's May Manufacturing PMI 55.0 (expected 54.3; last 54.7)

---Equity Markets---

• Japan's Nikkei: +0.9%
• Hong Kong's Hang Seng: +0.9%
• China's Shanghai Composite: -0.3%
• India's Sensex: -0.7%
• South Korea's Kospi: +3.7%
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade on a mixed note while Germany's DAX (+0.3%) outperforms with technology stocks contributing to the outperformance. Final May Manufacturing PMI readings from the region showed minimal expansion in Germany's reading (50.1) while the U.K.'s reading (53.9) recorded a four-year high. European Central Bank policymaker Schnabel lamented high energy prices while policymaker Pereira repeated that the central bank should act sooner rather than later, contributing to speculation that a rate hike will be announced this month.

• In economic data:
  • Eurozone's May Manufacturing PMI 51.6 (expected 51.4; last 52.2). April Unemployment Rate 6.3% (expected 6.2%; last 6.3%). April Private Sector Loans 3.0% yr/yr, as expected (last 3.0%), and loans to nonfinancials 3.4% yr/yr (expected 3.1%; last 3.2%)
  • Germany's April Retail Sales -0.3% m/m (expected -0.4%; last -0.3%); -0.3% yr/yr (last 2.7%). May Manufacturing PMI 50.1 (expected 49.9; last 51.4)
  • U.K.'s May Nationwide HPI -0.6% m/m (expected -0.1%; last 0.4%); 1.7% yr/yr (last 3.0%). May Manufacturing PMI 53.9 (expected 53.7; last 53.7)
  • France's May Manufacturing PMI 49.7 (expected 48.9; last 52.8)
  • Italy's May Manufacturing PMI 52.9 (expected 52.0; last 52.1)
  • Spain's May Manufacturing PMI 51.2 (expected 53.7; last 51.7)
  • Swiss Q1 GDP 0.7% qtr/qtr (expected 0.5%; last 0.2%); 0.5% yr/yr (last 1.0%). April Retail Sales 1.6% yr/yr (expected 0.2%; last 1.3%). May Manufacturing PMI 57.3 (expected 54.0; last 54.5)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: +0.4%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.1%

The S&P 500 futures currently trade 18 points above fair value.

Microsoft (MSFT 466.50, +16.26, +3.6%) trades higher in the premarket after news of its personal computer processor collaboration with NVIDIA (NVDA 215.77, +4.63, +2.2%), while several other manufacturers also trade sharply higher.

Equity futures point to a higher opening this morning as stocks look to add to their recent gains that saw the major averages close at record highs on Friday, marking the ninth consecutive winning week for the S&P 500.

The premarket gains come despite a request from President Trump to amend the deal with Iran, as he has asked for stronger language around Iran's nuclear material. President Trump's request started another round of negotiations, which could last several more days, according to Axios.

Crude oil is currently up $3.04 (+3.5%) to $90.41 per barrel, and Treasuries are modestly higher across the curve. Still, the premarket strength in the stock market indicates that the market does not expect the latest developments to push back expectations for a peace agreement in the near-term.

Futures are also getting a boost from NVIDIA (NVDA 215.99, +4.85, +2.3%), which trades higher in the premarket after announcing the company will expand into personal computer processors.

In corporate news:

• Dell (DELL 425.50, +4.59, +1.1%) introduced a redesigned XPS 13 laptop to compete with Apple (AAPL 309.52, -2.54, -0.8%), according to Bloomberg.
• NVIDIA (NVDA 215.99, +4.85, +2.3%) announced at Taiwan's Computex conference that the company will produce main processors for personal computers.
• Taylor Morrison Home (TMHC 71.75, +13.25, +22.7%) is set to be acquired by Berkshire Hathaway (BRK.B 473.39, -1.09, -0.2%) for $72.50 per share.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note with Japan's Nikkei (+0.9%) and South Korea's Kospi (+3.7%) setting fresh record highs. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: +0.9%, China's Shanghai Composite: -0.3%, India's Sensex: -0.7%, South Korea's Kospi: +3.7%, Australia's ASX All Ordinaries: +0.1%.

In news:

• Japan reported much weaker than expected capital spending for Q1, fueling speculation that Q1 GDP reading will be revised down, though the market continues expecting a rate hike from the Bank of Japan in the near future.
• China's official PMI readings for May essentially reflected a standstill in activity while Australia's Manufacturing PMI expanded for the second consecutive month and Japan's reading expanded for the fifth month in a row.

In economic data:

• China's May Manufacturing PMI 50.0 (expected 50.2; last 50.3) and Non-Manufacturing PMI 50.1 (expected 49.5; last 49.4). RatingDog Manufacturing PMI 51.8 (expected 51.4; last 52.2)
• Japan's Q1 Capital Spending 0.0% qtr/qtr (expected 4.1%; last 6.5%). May Manufacturing PMI 54.5, as expected (last 55.1)
• South Korea's May trade surplus $26.95 bln (expected surplus of $24.30 bln; last surplus of $23.76 bln). May Imports 20.8% yr/yr (expected 21.5%; last 16.7%) and Exports 53.2% yr/yr (expected 48.4%; last 48.0%). May Manufacturing PMI 54.8 (last 53.6)
• Australia's May Manufacturing PMI 50.7 (expected 50.2; last 51.3). May MI Inflation Gauge -0.3% m/m (last 0.6%) and May ANZ Job Advertisements 1.8% m/m (last -0.6%). May Commodity Prices 16.8% yr/yr (last 15.1%)
• India's May Manufacturing PMI 55.0 (expected 54.3; last 54.7)

Major European indices trade on a mostly lower note while Germany's DAX (+0.3%) outperforms with technology stocks contributing to the outperformance. STOXX Europe 600: -0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.2%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.3%.

In news:

• Final May Manufacturing PMI readings from the region showed minimal expansion in Germany's reading (50.1) while the U.K.'s reading (53.9) recorded a four-year high.
• European Central Bank policymaker Schnabel lamented high energy prices while policymaker Pereira repeated that the central bank should act sooner rather than later, contributing to speculation that a rate hike will be announced this month.

In economic data:

• Eurozone's May Manufacturing PMI 51.6 (expected 51.4; last 52.2). April Unemployment Rate 6.3% (expected 6.2%; last 6.3%). April Private Sector Loans 3.0% yr/yr, as expected (last 3.0%), and loans to nonfinancials 3.4% yr/yr (expected 3.1%; last 3.2%)
• Germany's April Retail Sales -0.3% m/m (expected -0.4%; last -0.3%); -0.3% yr/yr (last 2.7%). May Manufacturing PMI 50.1 (expected 49.9; last 51.4)
• U.K.'s May Nationwide HPI -0.6% m/m (expected -0.1%; last 0.4%); 1.7% yr/yr (last 3.0%). May Manufacturing PMI 53.9 (expected 53.7; last 53.7)
• France's May Manufacturing PMI 49.7 (expected 48.9; last 52.8)
• Italy's May Manufacturing PMI 52.9 (expected 52.0; last 52.1)
• Spain's May Manufacturing PMI 51.2 (expected 53.7; last 51.7)
• Swiss Q1 GDP 0.7% qtr/qtr (expected 0.5%; last 0.2%); 0.5% yr/yr (last 1.0%). April Retail Sales 1.6% yr/yr (expected 0.2%; last 1.3%). May Manufacturing PMI 57.3 (expected 54.0; last 54.5)

[BRIEFING.COM] The stock market ended a productive week on a record-setting note, with the S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.8%) all setting fresh record intraday and closing highs.

Leadership was narrow, with only the information technology (+1.9%) and financials (+0.6%) sectors finishing higher, though the tech rally was enough to offset broader weakness.

There was a strong earnings component to the gains, as Dell (DELL 421.30, +104.25, +32.88%) and NetApp (NTAP 174.29, +31.89, +22.39%) rocketed higher after topping expectations, bringing along other hardware names such as Hewlett Packard Enterprise (HPE 43.06, +4.85, +12.69%).

Elsewhere in the sector, software names posted solid gains of their own, sending the iShares GS Software ETF 6.3% higher. ServiceNow (NOW 124.37, +15.64, +14.38%) and Oracle (ORCL 225.81, +22.11, +10.85%) notched double-digit gains, while Microsoft (MSFT 450.24, +23.25, +5.45%) was a mega-cap standout for the second consecutive day.

Notably, semiconductor strength was mixed today, with the PHLX Semiconductor Index finishing flat.

The financials sector was the only other S&P 500 sector that traded higher, supported by strength across major banking names and a sharp gain in Robinhood Markets (HOOD 94.30, +9.46, +11.15%) after the company announced the official Trump Accounts app is now available for download.

Meanwhile, the consumer staples sector (-2.0%) finished with the widest loss, with Costco (COST 956.32, -38.88, -3.91%) disappointing investors after posting a mixed earnings report, while shares of Clorox (CLX 90.02, -6.18, -6.42%) plummeted after the company announced that CEO Linda Rendle would step down for health reasons.

Weakness across mega-cap stocks outside of the technology sector weighed on the communication services (-1.7%) and consumer discretionary (-1.1%) sectors, while the energy sector (-1.1%) finished lower as oil prices retreated.

Crude oil futures settled today's session $1.50 lower (-1.7%) at $87.42 per barrel amid optimism around a U.S.-Iran peace agreement. President Trump said on Truth Social earlier in the day that he was in a meeting in the Situation Room to finalize a decision regarding the memorandum of understanding that would extend the ceasefire and outline the next steps for nuclear negotiations, but the meeting concluded without a decision being announced.

Overall, today's session reinforced the market's strong upward momentum, even as participation remained relatively narrow beneath the surface. Continued leadership from technology and software stocks, combined with easing oil prices and optimism surrounding a potential U.S.-Iran agreement, helped push the major averages to another round of record highs heading into the weekend.

U.S. Treasuries finished the week on a mostly higher note, though a slight dip in the long bond prevented the complex from recording a perfect week. The 2-year note yield settled downone basis point to 4.01% (-11 basis points this week), and the 10-year note yield finished unchanged at 4.45% (-11 basis points this week). 

• Russell 2000: +17.6% YTD
• Nasdaq Composite: +16.1% YTD
• S&P Mid Cap 400: +12.7% YTD
• S&P 500: +10.7% YTD
• DJIA: +6.2% YTD

Reviewing today's data:

• May Chicago PMI expanded to 62.7 (Briefing.com consensus 49.5), from the prior reading of 49.2.
• Advance International Trade in Goods decreased to -$82.4 billion, from an upwardly revised prior level of -$85.3 billion (from -$87.9 billion).
• Advance Wholesale Inventories increased 0.5%, from an upwardly revised prior increase of 1.5% (from 1.3%).
• Advance retail inventories increased 0.7%, from a prior increase of 0.7%.