[BRIEFING.COM] The DJIA (-0.8%) continues to chart session lows while some lingering strength in technology softens the losses of the S&P 500 (-0.1%) and Nasdaq Composite (-0.1%).

Crude oil futures settled today's session $2.09 higher (+2.8%) at $77.27 per barrel, contributing to a less supportive backdrop for stocks today. In addition to earlier reports that Houthi forces attacked a Saudi tanker in the Red Sea, Reuters reported that a draft version of the U.S.-Iran deal, which will be voted on in the Iranian parliament, calls for a ban on U.S. and Israel-linked vessels in the Strait of Hormuz.

[BRIEFING.COM] The S&P 500 (-0.07%) is in second place on Thursday afternoon, down about 5 points.

Briefly, S&P 500 constituents Host Hotels (HST 23.45, -1.68, -6.69%), The Trade Desk (TTD 17.85, -1.11, -5.85%), and Block (XYZ 79.44, -4.76, -5.65%) pepper the bottom of the average. HST and XYZ slide in reaction to earnings. TTD reports earnings tonight.

Meanwhile, Motorola Solutions (MSI 475.35, +37.21, +8.49%) is atop the standings after a strong Q2 earnings beat, record orders, and raised FY26 guidance fueled optimism for continued growth and improving profitability.

[BRIEFING.COM] The Nasdaq Composite (-0.07%) is in "first" place on Thursday afternoon, down about 19 points, as more aggressive losses are being had elsewhere.

Gold futures settled $5.60 lower (-0.1%) at $4,299.60/oz, as investors took profits following Wednesday's sharp rally and awaited Friday's U.S. jobs report for further clues on the Federal Reserve's interest rate path. Despite the modest decline, a weaker U.S. dollar and lower Treasury yields continued to provide support for gold prices.

Meanwhile, the U.S. Dollar Index is up almost +0.3% to $99.95.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.80%) is in last place on Thursday afternoon, down more than 430 points.

A look inside the DJIA shows that Salesforce (CRM 185.08, -7.90, -4.09%), Boeing (BA 232.20, -7.99, -3.33%), and UnitedHealth (UNH 403.46, -9.29, -2.25%) are firmly lower.

Meanwhile, Microsoft (MSFT 496.43, +8.97, +1.84%) holds steady atop the average.

The DJIA is now +2.73% higher week-to-date.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.1%), and DJIA (-0.7%) are modestly lower just after midday after a relatively subdued start gave way to broader selling alongside a sharp rise in oil prices.

Reports that Houthi forces claimed an attack on a Saudi-flagged tanker in the Red Sea sent oil to its highs of the day. WTI crude is now up $2.80 (+3.7%) to $78.02 per barrel, leaving the energy sector (+1.2%) as one of just two S&P 500 sectors in positive territory.

Before the late-morning downturn, trading was largely shaped by mixed earnings reactions and choppy sector performance rather than a clear directional catalyst. The information technology sector (+0.2%) opened lower, recovered to post a solid gain, and now oscillates near its flat line. Semiconductor stocks continue to show relative strength. Sandisk (SNDK 1280.68, -69.82, -5.17%) and Western Digital (WDC 460.99, -58.18, -11.21%) remain lower after both companies beat earnings expectations but issued somewhat underwhelming guidance. However, each stock has recovered considerably from its opening loss, helping lift the semiconductor group off its opening lows. The PHLX Semiconductor Index is currently off its session highs but still up 1.1%.

Software remains a weak spot within technology. AppLovin (APP 340.78, -77.02, -18.43%) and Datadog (DDOG 233.82, -49.35, -17.43%) face sharp post-earnings losses, weighing on the iShares GS Software ETF (IGV 98.81, -2.50, -2.47%), although another solid showing from Microsoft (MSFT 494.71, +7.25, +1.49%) helps offset some of that pressure.

Honeywell Aerospace (HONA 163.43, -40.21, -19.75%) and Axon (AXON 534.12, -75.37, -12.37%) are both sharply lower following their earnings reports, weighing on the industrials sector (-0.4%), which is also pressured by weakness across its oil-sensitive airline and trucking names.

The communication services sector (-0.8%) is among the worst-performing S&P 500 sectors today as Alphabet (GOOG 356.69, -3.44, -0.96%) continues to move lower after announcing several high-profile AI departures yesterday. Mega-cap stocks are having a subdued session, with the Vanguard Mega Cap Growth ETF (-0.2%) matching the S&P 500's retreat.

In other mega-cap news, SpaceX (SPCX 109.72, +1.44, +1.33%) has surrendered most of an early gain as investors digest the company's first post-IPO share unlock. The expiration makes an additional batch of shares eligible for sale, raising the prospect of increased supply and added volatility even though the actual impact will depend on how many early investors choose to sell.

So far, today's action marks another consolidation day following the market's powerful rally earlier this week. While a spike in oil prices weighed on sentiment late this morning, the broader backdrop remains constructive as earnings continue to exceed expectations, even if lofty expectations weigh on select tech names.

Reviewing today's data:

• Q2 Productivity - Prel 1.4% (Briefing.com consensus 0.8%); Prior was revised to 0.8% from 0.3%, Q2 Unit Labor Costs - Prel 1.3% (Briefing.com consensus 1.7%); Prior was revised to 1.3% from 1.8%
  • The key takeaway from the report is that rising productivity helped keep labor costs in check.
• Weekly Initial Claims 199K (Briefing.com consensus 200K); Prior was revised to 198K from 197K, Weekly Continuing Claims 1.801 mln; Prior was revised to 1.777 mln from 1.782 mln
  • The key takeaway from the report, once again, is the extraordinarily low level of initial jobless claims, which reflects an environment in which employers are still reluctant to cut staff. That will be read as a good sign for economic demand.
• June Wholesale Inventories 0.2% (Briefing.com consensus 0.3%); Prior 0.3%

[BRIEFING.COM] The major averages continue to move to session lows just after midday.

SpaceX (SPCX 108.90, +0.63, +0.58%) is giving back the bulk of its previous gain as the stock faces a meaningful test of investor demand as its first post-IPO lockup expiration makes an additional batch of shares eligible for sale. The unlock increases the stock's potential trading supply and could add volatility if early investors choose to reduce their holdings, though the actual impact will depend on how many newly eligible shares reach the market and whether buyers can absorb them.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.2%), and DJIA (-0.7%) are moving to session lows following a surge in oil prices.

Reports indicate that Houthi forces have claimed an attack on a Saudi-flagged tanker in the Red Sea, sending oil prices to session highs. WTI Crude oil is now up $2.40 (+3.2%) to $77.62 per barrel.

The energy sector (+1.5%) is now the only S&P 500 sector that remains in positive territory. 

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.5%) sit mixed near their baselines amid a relatively subdued session for stocks so far today.

There are plenty of notable earnings-related moves and some choppiness at the sector level, though none of it has been substantial enough to provide the market with a clear directional catalyst. In particular, the information technology sector (+0.3%) is one of the best-performing sectors as Sandisk (SNDK 1316.61, -33.89, -2.51%) and Western Digital (WDC 473.23, -45.94, -8.85%) continue to improve from sharp losses that followed their respective earnings reports yesterday afternoon. The PHLX Semiconductor Index is now up 1.9%.

AppLovin (APP 333.79, -84.01, -20.11%) and Datadog (DDOG 239.84, -43.33, -15.30%) 241.48, -41.69, -14.72%) face steeper losses after their own earnings, weighing on the iShares GS Software ETF (IGV 99.06, -2.26, -2.23%), though another solid showing from Microsoft (MSFT 494.71, +7.25, +1.49%) helps offset that weakness.

The energy sector (+1.1%) is the only other S&P 500 sector that holds a gain as crude oil moves $1.83 (+2.5%) higher to $77.03 per barrel. The market is still awaiting an official peace agreement between the U.S. and Iran. Losses in the broader market are modest, limited to 0.6% or narrower.

Outside the S&P 500, the Russell 2000 (+0.2%) and S&P Mid Cap 400 (+0.4%) hold modest gains.

[BRIEFING.COM] The major averages continue to trade in a steady range near their flat lines.

The DJIA (-0.3%) trails modestly, with its worst-performing components largely reflecting some broader trends today. UnitedHealth (UNH 405.16, -7.59, -1.84%) and Amgen (AMGN 403.25, -4.58, -1.12%) both retreat after posting solid gains yesterday. The health care sector (-0.5%) as a whole is facing some pressure today after finishing as one of the best-performing sectors yesterday.

Meanwhile, Salesforce (CRM 184.73, -8.25, -4.28%) is the worst-performing name in the 30-stock average amid a tough session for software names, pushing the iShares GS Software ETF (IGV 99.27, -2.04, -2.01%) firmly lower. However, Microsoft (MSFT 497.04, +9.58, +1.97%) has bucked that trend and is a mega-cap standout, adding to its gains from Monday and Tuesday that now seat it with a 7% week-to-date gain.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) remain mixed as the information technology sector (+0.4%) continues to improve while the broader market largely falls behind.

Sandisk (SNDK 1264.79, -85.71, -6.35%) continues to move off its worst levels of the session after another strong quarter that reinforces the powerful tailwinds across NAND. Adjusted EPS of $39.25 was again well above expectations, while revenue surged 51% sequentially and 371.6% year-over-year to $8.97 billion, also comfortably above expectations. However, SNDK's Q1 adjusted EPS guidance of $44-46 was only in line with expectations, while revenue guidance of $10.3-10.8 billion was slightly below, likely disappointing investors positioned for another sizable upside guide. While the guidance is weighing on SNDK shares today, this was a strong report overall that continues to reinforce NAND as a major beneficiary of rising AI data requirements. The Q1 outlook still implies approximately 15% sequential EPS growth and 18% revenue growth at the midpoint, suggesting today's weakness is more about elevated expectations than any deterioration in demand.

Western Digital (WDC 458.88, -60.30, -11.61%) is also improving but holds a wider loss after delivering a fiscal Q4 beat and guiding Q1 non-GAAP EPS above consensus, as investors appear to have been looking for a more decisive upside surprise after robust recent results from storage peers and a strong pre-earnings rally. While Q1 revenue guidance came in modestly above consensus, it was not strong enough to satisfy elevated expectations, leaving investors focused instead on slower-than-expected exabyte shipment growth, a gross margin outlook that trails Seagate Tech (STX 850.73, +13.07, +1.56%), and questions surrounding WDC's next-generation HAMR transition.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.1%) are little changed as tech names quickly rise off their opening lows, a move that has taken some early momentum out of the broader market.

Sandisk (SNDK 1273.45, -77.05, -5.71%) and Western Digital (WDC 452.08, -67.09, -12.92%) are firmly lower following some profit-taking after their respective earnings reports, though the stocks are considerably improved from their worst levels. The PHLX Semiconductor Index (+0.5%) has reclaimed its flatline, and the information technology sector (+0.2%) moves modestly higher.

Software continues to be a drag on the sector following the earnings of AppLovin (APP 335.52, -82.28, -19.69%) and Datadog (DDOG 235.96, -47.22, -16.67%), and the iShares GS Software ETF is down 2.8%.

The defensive consumer staples (+0.1%), health care (+0.1%), and utilities (+0.2%) sectors opened firmly higher, but have since retreated alongside the recovery in technology.

Currently, the energy sector (+0.6%) is the only S&P 500 sector with a gain or loss wider than 0.5%. WTI crude oil is up $0.84 (+1.1%) to $76.06 per barrel as investors await news of an official peace agreement between the U.S. and Iran.

Just released, wholesale inventories increased 0.2% in June (Briefing.com consensus 0.3%), from a prior increase of 0.1%

Equity futures continue to signal a mixed open as the latest batch of earnings reports weighs heavily on select tech names.

Nonfarm business sector labor productivity increased 1.4% in the second quarter (Briefing.com consensus: 0.8%) following an upwardly revised 0.8% increase (from 0.3%) in the first quarter. Unit labor costs were up 1.3% (Briefing.com consensus: 1.7%) following a downwardly revised 1.3% increase (from 1.8%) in the first quarter.

The key takeaway from the report is that rising productivity helped keep labor costs in check.

Initial jobless claims for the week ending August 1 increased by 1,000 to 199,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending July 25 increase by 24,000 to 1.801 million.

The key takeaway from the report, once again, is the extraordinarily low level of initial jobless claims, which reflects an environment in which employers are still reluctant to cut staff. That will be read as a good sign for economic demand.

The S&P 500 futures currently trade 10 points below fair value.

Equity indices in the Asia-Pacific region ended Thursday on a mixed note with South Korea's Kospi (-4.6%) facing renewed selling. Japanese debt outperformed after Finance Minister Katayama said that Japan will not rely on new debt issuance to make up for tax revenue shortfalls. There was also a solid 30-yr JGB auction. China's Ministry of Commerce will tighten restrictions on exports of drones to the U.S. Fitch opined that the Bank of Japan will have to continue hiking rates in order for the yen to continue its rise off a multi-decade low against the dollar.

• In economic data:
  • South Korea's June Current Account surplus $49.73 bln (last surplus of $38.61 bln)
  • Australia's June Building Approvals 7.2% m/m, as expected (last -1.6%); 8.9% yr/yr, as expected (last 5.5%). June trade surplus AUD1.929 bln (expected deficit of AUD1.060 bln; last deficit of AUD2.367 bln). June Imports -0.2% m/m (last 0.9%) and Exports 9.6% m/m (last -7.6%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: -1.5%
• China's Shanghai Composite: +0.6%
• India's Sensex: +0.5%
• South Korea's Kospi: -4.6%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade mostly higher with Spain's IBEX (+1.1%) pacing the advance with leadership from banks and industrial names. The European Central Bank's latest economic bulletin acknowledged elevated inflation and presence of risks to the upside. Siemens, Deutsche Telekom, and Persimmon reported strong results.

• In economic data:
  • Eurozone's June Retail Sales -0.3% m/m (expected 0.1%; last 0.4%); 0.7% yr/yr (expected 1.0%; last 1.9%)
  • Germany's June Factory Orders 3.1% m/m (expected 0.5%; last 0.3%)
  • France's final Q2 nonfarm payrolls -0.1% qtr/qtr, as expected (last -0.1%)
  • Italy's June Industrial Production -1.0% m/m (expected 0.3%; last -0.3%); -0.6% yr/yr (expected 1.0%; last 1.2%)
  • Spain's June Industrial Production 1.1% yr/yr (last 3.1%)
  • Swiss July Unemployment Rate 3.1%, as expected (last 3.1%)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: unch
• U.K.'s FTSE 100: +0.2%
• France's CAC 40: +0.6%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +1.2%

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

Just released, the preliminary reading for Q2 productivity checked in at 1.4% (Briefing.com consensus 0.8%), from the upwardly revised Q1 reading of 0.8% (from 0.3%).

The preliminary Q2 unit labor cost reading registered at 1.3% (Briefing.com consensus 1.7%), from the downwardly revised Q1 reading of 1.3% (from 1.8%).

Initial jobless claims for the week ending August 1 increased by 1,000 to 199,000 (Briefing.com consensus: 200,000) from the upwardly revised prior level of 198,000 (from 197,000).

Continuing jobless claims for the week ending July 25 increased by 24,000 to 1.801 million from the downwardly revised prior level of 1.777 million (from 1.782 million).

Equity futures point to a mixed open this morning as investors assess another sizable batch of earnings and monitor geopolitical developments in the Middle East.

The major averages are coming off a mostly lower finish in which select high-profile tech names finally met some resistance after a record-setting run. The S&P 500 notched a record intraday high before finishing lower for the day, the DJIA extended its record run, and the Nasdaq underperformed amid some volatility in semiconductor stocks.

Similarly, futures tied to the Nasdaq are lower this morning after the latest batch of earnings reports, with several key memory names moving lower on underwhelming guidance despite beating earnings estimates.

On the macro front, oil prices are stable this morning, with NBC News reporting the U.S. and Iran are close to reaching a deal to reopen the Strait of Hormuz, though Iran has insisted on some limited control of the waterway.

Additionally, Financial Times reports Fed Chairman Kevin Warsh will keep his style of limited communication, but is open to a September rate hike if inflation readings come in hot.

The market will receive preliminary Q2 productivity (Briefing.com consensus 0.8%) and unit labor cost (Briefing.com consensus 1.7%) readings at 8:30 a.m. ET, alongside the weekly initial jobless claims (Briefing.com consensus 200K).

In corporate news:

• Applovin (APP 338.80, -79.00, -19.0%) reported EPS in line and missed revenue expectations.
• SanDisk (SNDK 1,218.87, -131.63, -9.8%) beat EPS expectations by $4.29, beat revenue expectations, and guided Q1 EPS in-line with revenues below consensus.
• Western Digital (WDC 443.92, -75.25, -14.5%) beat EPS expectations by $0.25, beat revenue expectations, and guided Q1 EPS above consensus with revenues in-line.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a mixed note with South Korea's Kospi (-4.6%) facing renewed selling. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: -1.5%, China's Shanghai Composite: +0.6%, India's Sensex: +0.5%, South Korea's Kospi: -4.6%, Australia's ASX All Ordinaries: +0.5%.

In news:

• Japanese debt outperformed after Finance Minister Katayama said that Japan will not rely on new debt issuance to make up for tax revenue shortfalls.
• There was also a solid 30-yr JGB auction.
• China's Ministry of Commerce will tighten restrictions on exports of drones to the U.S. Fitch opined that the Bank of Japan will have to continue hiking rates in order for the yen to continue its rise off a multi-decade low against the dollar.

In economic data:

• South Korea's June Current Account surplus $49.73 bln (last surplus of $38.61 bln)
• Australia's June Building Approvals 7.2% m/m, as expected (last -1.6%); 8.9% yr/yr, as expected (last 5.5%). June trade surplus AUD1.929 bln (expected deficit of AUD1.060 bln; last deficit of AUD2.367 bln). June Imports -0.2% m/m (last 0.9%) and Exports 9.6% m/m (last -7.6%)

Major European indices trade mostly higher with Spain's IBEX (+1.1%) pacing the advance with leadership from banks and industrial names. STOXX Europe 600: +0.4%, Germany's DAX: +0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.6%, Italy's FTSE MIB: +1.0%, Spain's IBEX 35: +1.1%.

In news:

• The European Central Bank's latest economic bulletin acknowledged elevated inflation and presence of risks to the upside.
• Siemens, Deutsche Telekom, and Persimmon reported strong results.

In economic data:

• Eurozone's June Retail Sales -0.3% m/m (expected 0.1%; last 0.4%); 0.7% yr/yr (expected 1.0%; last 1.9%)
• Germany's June Factory Orders 3.1% m/m (expected 0.5%; last 0.3%)
• France's final Q2 nonfarm payrolls -0.1% qtr/qtr, as expected (last -0.1%)
• Italy's June Industrial Production -1.0% m/m (expected 0.3%; last -0.3%); -0.6% yr/yr (expected 1.0%; last 1.2%)
• Spain's June Industrial Production 1.1% yr/yr (last 3.1%)
• Swiss July Unemployment Rate 3.1%, as expected (last 3.1%)

[BRIEFING.COM] After a powerful four-session advance that lifted the S&P 500 nearly 6% while carrying it to fresh record highs, stocks took a breather on Wednesday as investors digested another busy round of earnings reports and corporate headlines. The S&P 500 (-0.2%) finished modestly lower, while the Nasdaq Composite slipped 0.8% and the DJIA gained 0.5%. Despite the mixed finish, the S&P 500, DJIA, Russell 2000 (-0.6%), and S&P Mid Cap 400 (-0.5%) all notched fresh record intraday highs before retreating from their best levels.

The broader tone nevertheless remained constructive, as another encouraging earnings backdrop and continued progress toward easing tensions in the Middle East helped offset some profit-taking after this week's powerful rally.

The communication services sector (-2.4%) finished as the market's weakest performer. Alphabet (GOOG 360.13, -15.22, -4.05%) came under pressure after The Wall Street Journal reported that Google Chief Scientist and AI strategy leader Jeff Dean will leave the company to launch a startup focused on scientific discovery.

The sector also faced pressure from wireless providers after SpaceX (SPCX 108.27, -17.06, -13.61%) said on its earnings call that it plans to enter the wireless market.

Weakness in Amazon (AMZN 272.65, -4.77, -1.72%) and Tesla (TSLA 321.55, -5.80, -1.77%) further highlighted today's pause across several of the market's recent mega-cap leaders, leaving the consumer discretionary sector (-0.3%) modestly lower despite relative strength elsewhere.

The information technology sector spent most of the session with a solid gain but retreated to finish little changed as the PHLX Semiconductor Index slipped 1.4% into the close. Advanced Micro Devices (AMD 482.05, -36.53, -7.04%) was a notable laggard after a strong run into its earnings report. NVIDIA (NVDA 219.22, +7.28, +3.43%) remained a notable source of support after SpaceX said on its earnings call that it plans to build exclusively on NVIDIA's Vera Rubin architecture, helping keep the sector out of negative territory.

Attention now shifts to another important test for the memory trade after the close, with Sandisk (SNDK 1350.50, -77.12, -5.40%) and Western Digital (WDC 519.17, -29.39, -5.36%) set to report earnings. Both stocks also came under pressure into the close ahead of their reports.

Outside of technology, leadership remained familiar. The materials sector (+1.5%) outperformed behind continued strength in precious metals prices, lifting Newmont Corporation (NEM 104.27, +6.54, +6.69%) among the day's best-performing S&P 500 components.

The health care sector (+1.3%) also finished near the top of the leaderboard as Eli Lilly (LLY 1168.77, +53.09, +4.76%) and Amgen (AMGN 407.83, +17.81, +4.57%) built on well-received earnings reports, with the latter helping support the DJIA.

The energy sector (-2.0%) remained under pressure as WTI crude oil futures settled down $0.55 (-0.7%) at $75.18 per barrel. The Wall Street Journal reported that Iran and Oman are finalizing a draft agreement to reopen the Strait of Hormuz that would prohibit Iran from charging tolls or transit fees, reinforcing expectations that disruptions to global oil shipments could continue to ease.

Elsewhere, the utilities sector (-1.0%) remained out of favor as investors continued rotating away from more defensive areas of the market.

Although today's session interrupted the market's recent string of outsized gains, the underlying backdrop changed little. Earnings results have generally continued to exceed expectations, geopolitical risks have eased further, and today's relatively orderly consolidation followed one of the strongest four-session advances of the year. Investors will now look to another round of semiconductor earnings to determine whether technology leadership can reassert itself after today's pause.

U.S. Treasuries inched higher on Wednesday, securing their third consecutive advance that pressured yields on longer tenors to one-week lows. The 2-year note yield settled down two basis points to 4.18%, and the 10-year note yield settled down one basis point to 4.62% . 

• Russell 2000: +21.7% YTD
• S&P Mid Cap 400: +16.4% YTD
• Nasdaq Composite: +13.4% YTD
• DJIA: +13.1% YTD
• S&P 500: +12.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.9%; Prior -6.4%
• July ADP Employment Change 44K (Briefing.com consensus 75K); Prior was revised to 95K from 98K
• July S&P Global U.S. Services PMI - Final 54.6; Prior 53.6
• July ISM Non-Manufacturing Index 54.1% (Briefing.com consensus 54.7%); Prior 54.0%
  • The key takeaway from the report is the understanding that services sector activity continues to run at a solid pace despite the persistence of ongoing cost pressures.