[BRIEFING.COM] Stocks ended a relatively quiet Friday session with modest losses, pulling back from yesterday's record-setting advance as weakness in mega-cap technology stocks and a midday rise in Treasury yields weighed on the major averages. The S&P 500 (-0.2%), Nasdaq Composite (-0.3%), and DJIA (-0.2%) finished lower, though the S&P 500 and Nasdaq Composite still notched modest gains for the week.

The major averages opened slightly higher before gradually slipping into negative territory as the morning progressed. The move coincided with a rise in longer-dated Treasury yields, with the 10-year note yield climbing six basis points to 4.70% despite a weaker-than-expected July retail sales report. The increase in yields provided a modest headwind following a week in which largely favorable CPI and PPI readings had eased concerns about additional Fed tightening.

Most of the pressure at the index level came from growth stocks. The Vanguard Mega Cap Growth ETF fell 0.5%, while the information technology sector (-0.4%) was among the laggards as some of yesterday's strongest areas gave back ground. The PHLX Semiconductor Index slipped 0.3%, with Applied Materials (AMAT 507.18, -27.36, -5.12%) facing some profit-taking following a solid earnings report and Broadcom (AVGO 392.99, -24.83, -5.94%) also among the large-cap chip laggards. Continued strength in memory stocks helped offset some of that weakness, as Sandisk (SNDK 1641.11, +113.00, +7.39%) extended its rally following yesterday's investor day after JPMorgan resumed coverage with an Overweight rating and a $2,250 price target.

Software stocks saw more pronounced profit-taking following yesterday afternoon's rally, leaving the iShares GS Software ETF (IGV) down 2.1%. Workday (WDAY 198.68, -7.77, -3.76%) also gave back some of yesterday's roughly 18% surge that followed reports that Silver Lake is in talks to acquire the company.

The consumer discretionary sector (-0.4%) also lagged amid weakness in mega-cap stocks and retail names ahead of a busy slate of earnings from the group next week.

Still, the broader market held up better than the major averages. Six S&P 500 sectors finished higher, and the S&P 500 Equal Weight Index ended flat, while the Russell 2000 (+0.5%) and S&P MidCap 400 (+0.3%) both advanced and reached fresh record highs during the session.

Energy (+1.4%) was the clear sector leader as crude oil resumed its climb despite little new geopolitical news. WTI crude settled $1.34 higher (+1.7%) at $82.40 per barrel, bringing its gain for the week to roughly 5%.

The utilities (+0.6%) and materials (+0.5%) sectors also outperformed, with higher precious metals prices supporting the latter.

Outside the current S&P 500 membership, Reddit (RDDT 177.97, +19.85, +12.55%) surged on news that the company will join the index next week.

Friday's subdued pullback ultimately looked more like consolidation following Thursday's record-setting advance than a meaningful shift in sentiment. The S&P 500 still finished the week higher after the July CPI and PPI reports helped ease concerns about additional Fed tightening, while the relative strength in the equal-weight index and smaller-cap stocks showed that Friday's weakness was concentrated largely in some of the market's biggest growth names.

U.S. Treasuries retreated on Friday, producing losses for the week in 10 and 30 year note yields while the front end also faced some pressure today, but the 2-year note still ended the week with a gain. The 2-year note yield settled up three basis points to 4.17% (-4 basis points this week), and the 10-year note yield settled up six basis points to 4.70% (+4 basis points this week). 

• Russell 2000: +23.6% YTD
• S&P Mid Cap 400: +18.8% YTD
• Nasdaq Composite: +15.0% YTD
• S&P 500: +13.7% YTD
• DJIA: +11.8% YTD

Reviewing today's data:

• July Retail Sales -0.6% (Briefing.com consensus 0.2%); Prior 0.2%, July Retail Sales, ex-auto -0.3% (Briefing.com consensus 0.2%); Prior -0.2%
  
  • The key takeaway from the report is that control retail sales dropped 0.4% month-over-month. This figure will feed into GDP forecasts, so there are apt to be some downward revisions to Q3 GDP forecasts.
• June Business Inventories 0.0% (Briefing.com consensus 0.1%); Prior was revised to 0.4% from 0.3%
• August Univ. of Michigan Consumer Sentiment - Prelim 51.0 (Briefing.com consensus 54.5); Prior 55.2
  
  • The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.

[BRIEFING.COM] The S&P 500 (-0.2%) and Nasdaq Composite (-0.4%) remain on track for lower finishes today, though both indexes are pacing for modest week-to-date gains. Meanwhile, the DJIA (-0.1%) is homing in on a modest retreat for the week.

Looking ahead, next week will be significantly lighter on the earnings front, though several notable retail names are set to report earnings.

On the data front, the market has plenty of reports to assess, though most are less market-moving in nature than this week's inflation readings.

[BRIEFING.COM] Not much has changed for the stock market this afternoon, which is reflected by the major averages staying in a stable range, modestly lower.

Crude oil futures settled today's session $1.34 higher (+1.7%) at $82.40 per barrel, keeping the energy sector (+1.5%) firmly atop the S&P 500's sector standings today despite a lack of news regarding the conflict in the Middle East. Crude oil finished the week roughly 5% higher.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (-0.1%) continue to drift in a stable range this afternoon.

Gold futures settled today's session $16.40 higher (+0.4%) at $4,436.90 per ozt. Newmont Corporation (NEM 117.97, +3.78, +3.31%) is an S&P 500 standout as a result, contributing to strength in the materials sector (+0.5%), which is one of today's strongest performers.

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

Cerebras Systems (CBRS 219.47, -11.54, -5.00%) is trading lower again today, extending weakness following yesterday's post-earnings decline and general weakness across chipmakers today.

Meanwhile, Expedia Group (EXPE 331.18, +2.87, +0.87%) traded to a new all-time high today, but is off its best levels. Shares traded lower to start the year but have been trending nicely higher since reaching a 52-wk low in late February, with EXPE now up roughly 79% from that low.

[BRIEFING.COM] The stock market has had a bit of a struggle today, unable to maintain the gains it saw after the open. Those gains started to fade shortly after 10:00 a.m. ET, which is when the 10-yr note yield took out its overnight high of 4.66% and kept going.

The yield on the 10-yr note is at 4.70% now, up six basis points for the day and up five basis points for the week. The 30-yr bond yield, meanwhile, is up seven basis points for the week to 5.27%.

Those moves by the inflation-sensitive securities don't fit this week's narrative that has featured seemingly market-friendly inflation readings for the July CPI and PPI reports. That data has quieted concerns about a possible rate hike at the September FOMC meeting, but other issues-namely, supply concerns, fiscal concerns, and, yes, lingering inflation concerns-have kept pressure on longer-dated yields.

Following this week's form, longer-dated Treasury securities did not attract buying interest despite a much weaker-than-expected retail sales report for July.

The bump in yields has been a headwind for stocks today, which are sporting modest losses ahead of the weekend.

[BRIEFING.COM] The stock market is having a quiet Friday session after yesterday's gains pushed the S&P 500 to new record highs. The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (-0.2%) trade in a narrow range below their baselines amid a lack of new developments today.

Many of the market's largest single-stock declines are within the information technology sector (-0.5%), which weighs on the major averages. Applied Materials (AMAT 508.10, -26.44, -4.95%) sees some profit-taking after a solid earnings report, while Broadcom (AVGO 393.50, -24.32, -5.82%) is a laggard among large chipmakers. The PHLX Semiconductor Index is down 0.9%. Those losses are somewhat softened by continued strength in memory names, with Sandisk (SNDK 1631.05, +102.94, +6.74%) among the top-performing S&P 500 components, extending yesterday's rally after JPMorgan resumed coverage with an Overweight rating and a target of $2250.

Software stocks made a strong run yesterday afternoon, which ate into the early gains of semiconductor stocks, but they too are giving back some of that strength. Workday (WDAY 199.21, -7.24, -3.51%) moves lower after yesterday's 18% surge that followed news that Silver Lake is in talks to acquire the company, and the iShares GS Software ETF is down 1.6%.

The health care sector (-0.5%) holds a loss similar to that of the technology sector, while losses elsewhere are confined to 0.2% or narrower.

Meanwhile, six S&P 500 sectors trade higher, which helps keep the S&P 500 Equal Weighted Index flat for the day. The energy sector (+1.6%) is the only sector with a gain wider than 0.5% as crude oil drifts modestly higher, currently up $0.66 (+0.8%) to $81.91 per barrel. Halliburton (HAL 34.35, +1.51, +4.60%) is a standout, though there has been a lack of new developments regarding the U.S. and Iran.

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.2%) reflect some underlying strength outside of mega-cap tech, with both indices notching fresh record highs again today.

With this week's key inflation readings meeting expectations and now in the rearview, the market is largely without a directional catalyst, which has translated to relatively muted action across equities today. That leaves the S&P 500 on track for a modest week-to-date gain, while the Nasdaq Composite is tracking for a flat weekly finish, and the DJIA is on pace for a modest loss.

Reviewing today's data:

• July Retail Sales -0.6% (Briefing.com consensus 0.2%); Prior 0.2%, July Retail Sales, ex-auto -0.3% (Briefing.com consensus 0.2%); Prior -0.2%
  
  • The key takeaway from the report is that control retail sales dropped 0.4% month-over-month. This figure will feed into GDP forecasts, so there are apt to be some downward revisions to Q3 GDP forecasts.
• June Business Inventories 0.0% (Briefing.com consensus 0.1%); Prior was revised to 0.4% from 0.3%
• August Univ. of Michigan Consumer Sentiment - Prelim 51.0 (Briefing.com consensus 54.5); Prior 55.2
  
  • The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (-0.2%) continue to move within a stable range modestly below their unchanged levels.

The consumer discretionary sector (-0.2%) is one of five S&P 500 sectors that trade lower ahead of a busy week of retail earnings. Walmart (WMT 115.28, -0.44, -0.38%), Home Depot (HD 338.65, -3.05, -0.89%), Target (TGT 154.66, -0.86, -0.55%), and others trade modestly lower ahead of their respective reports next week, pushing the State Street SPRD S&P Retail ETF 0.4% lower.

[BRIEFING.COM] The major averages remain modestly lower at midday.

Reddit (RDDT 180.22, +22.10, +13.98%) is trading sharply higher today following news that it will join the S&P 500 next week, an important milestone that should increase the stock's visibility and institutional ownership. Reddit, which operates a social platform built around highly engaged communities and authentic user-generated conversations, has been posting impressive financial growth. In late July, Reddit reported Q2 revenue of $805 mln, up 61% yr/yr, marking its eighth consecutive quarter of revenue growth above 60%. The company is also showing significant operating leverage, with operating cash flow, adjusted EBITDA, net income, and GAAP EPS all more than doubling year-over-year in Q2.

[BRIEFING.COM] It has been a quiet morning for the stock market, with the S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.2%) slowly drifting modestly lower amid a lack of market-moving developments.

The retreat to session lows coincides with the information technology sector (-0.5%) steadily moving to its worst levels of the session after leading the S&P 500 to fresh record highs yesterday. The PHLX Semiconductor Index is down 1.1%, with Broadcom (AVGO 393.61, -24.21, -5.79%) the worst-performing S&P 500 component, though memory names continue to outperform following yesterday's rally. The iShares GS Software ETF (IGV 104.65, -1.63, -1.53%) is down similarly as Workday (WDAY 198.39, -8.06, -3.90%) and several other software names give back some of yesterday afternoon's strength.

Elsewhere, strength is mixed, with a total of six S&P 500 sectors trading higher. The energy sector (+1.4%) is the only sector with a gain wider than 0.5% as crude oil drifts modestly higher amid a lack of geopolitical developments today.

Outside the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.2%) outperform, reflecting some strength in the broader market despite the weakness in tech today.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) are now modestly lower as the information technology sector (-0.4%) begins to face some pressure. The major averages remain modestly lower.

Applied Materials (AMAT 508.60, -25.94, -4.85%) is one of the worst-performing S&P 500 names after delivering another strong quarter and raising its Semiconductor Systems outlook again, but the weaker reaction appears to reflect just how high expectations had become following the stock's sharp run and strong results across the semi-cap equipment group. Applied Materials now expects CY26 Semiconductor Systems growth to exceed its prior outlook of more than 30%, while management also expects another sequential increase in fiscal Q1, underscoring the strength of the current ramp. Gross margin is expected to remain roughly flat sequentially despite the revenue increase as Applied Materials absorbs hiring and other ramp costs. Still, the underlying demand picture remains very strong, particularly across DRAM/HBM, leading-edge foundry-logic, and advanced packaging, with longer customer visibility supporting confidence in another strong growth year in 2027.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) are now modestly lower as the information technology sector (-0.4%) begins to face some pressure.

The preliminary reading for the University of Michigan Consumer Sentiment Index for August dropped to 51.0 (Briefing.com consensus: 54.5) from the final reading of 55.2 for July. In the same period a year ago, the index stood at 58.2.

The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.

[BRIEFING.COM] The major averages are little changed this morning as a quiet premarket translated into a subdued opening.

Breadth figures are relatively even, though the majority of S&P 500 sectors hold modest gains. The energy sector (+1.2%) is the big standout this morning, despite crude oil modestly retreating from yesterday's closing level amid another quiet morning of geopolitical developments.

Meanwhile, memory stocks are seeing a continuation of yesterday's momentum, with Sandisk (SNDK 1637.20, +109.09, +7.14%) and Seagate Tech (STX 985.35, +63.98, +6.94%) among the best-performing S&P 500 names.

However, weakness in other semiconductor-related names such as Broadcom (AVGO 398.47, -19.35, -4.63%) keeps the PHLX Semiconductor Index (-0.1%) near its flatline, while software names give back their gig gains from yesterday, weighing on the information technology sector (-0.1%).

The health care sector (-0.8%) is the only S&P 500 sector with a loss wider than 0.1%.

Just released, the preliminary reading of the August University of Michigan Consumer Sentiment Index checked in at 51.0 (Briefing.com consensus 54.5), down from the final July level of 55.2.

Business inventories were flat in June (Briefing.com consensus 0.1%), from an upwardly revised prior increase of 0.4% (from 0.3%).

Equity futures continue to point to a relatively subdued opening this morning.

Total retail sales declined 0.6% month-over-month in July (Briefing.com consensus: 0.2%) following a 0.2% increase in June. Excluding autos, retail sales declined 0.3% month-over-month (Briefing.com consensus: 0.2%) following a 0.2% decline in June.

The key takeaway from the report is that control retail sales dropped 0.4% month-over-month. This figure will feed into GDP forecasts, so there is apt to be some downward revisions to Q3 GDP forecasts.

Equity indices in the Asia-Pacific region had a mixed finish to the week with South Korea's Kospi (+2.4%) rising to a three-week high. Fitch expects to see modest growth in China's insurances sector for the remainder of the year amid some regulatory support. A former Japanese currency diplomat Furusawa said that the Bank of Japan plans another 50-75 basis points of rate hikes, adding that another U.S. intervention is possible if the yen returns to this year's low against the dollar. Australia's Prime Minister Albanese said that he appealed to President Trump to exempt Australia from additional tariffs.

• In economic data:
  • China's July New Loans -CNY340.0 bln (expected -CNY50.0 bln; last CNY1.61 trln), July Total Social Financing CNY1.41 trln (expected CNY1.20 trln; last CNY3.36 trln)
  • Hong Kong's Q2 GDP -0.6% qtr/qtr, as expected (last -0.6%); 4.3% yr/yr, as expected (last 4.3%)
  • Australia's Q2 Home Loans -1.9% qtr/qtr (last -3.5%)
  • New Zealand's July Business PMI 54.3 (last 60.1)
  • India's July WPI Inflation 9.78% yr/yr (expected 9.95%; last 9.87%)

---Equity Markets---

• Japan's Nikkei: +0.6% 
• Hong Kong's Hang Seng: -1.1%
• China's Shanghai Composite: UNCH 
• India's Sensex: -0.1% 
• South Korea's Kospi: +2.4%
• Australia's ASX All Ordinaries: -0.7% 

Major European indices trade near their flat lines while Germany's DAX (+0.8%) outperforms with SAP and Rheinmetall contributing to the strength. In the U.K., Reform leader Farage won a by election in Clacton, which was expected. Russia's Foreign Minister Lavrov said that an immediate ceasefire in Ukraine is not realistic.

• In economic data:
  • Eurozone's flash Q2 GDP 0.4% qtr/qtr, as expected (last 0.0%); 1.0% yr/yr, as expected (last 0.5%). Q2 Employment Change 0.1% qtr/qtr, as expected (last 0.1%); 0.5% yr/yr (expected 0.6%; last 0.5%). June trade surplus EUR8.6 bln (expected deficit of EUR2.2 bln; last deficit of EUR9.0 bln)
  • Germany's July WPI 0.2% m/m (expected -0.2%; last -0.7%); 5.3% yr/yr (last 4.9%)
  • France's July CPI 0.6% m/m, as expected (last -0.3%); 2.1% yr/yr, as expected (last 1.8%).
  • Swiss Q2 GDP 1.5% qtr/qtr (last 0.7%)

---Equity Markets---

• STOXX Europe 600: UNCH
• Germany's DAX: +0.9% 
• U.K.'s FTSE 100: UNCH 
• France's CAC 40: +0.1%
• Italy's FTSE MIB: UNCH 
• Spain's IBEX 35: +0.1% 

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

Just released, total retail sales were down 0.6% month-over-month in July (Briefing.com consensus: 0.2%) following a 0.2% increase in June.

Excluding autos, retail sales were down 0.3% month-over-month (Briefing.com consensus: 0.2%) following a 0.2% decrease in June.

Equity futures point to a mixed, flattish opening this morning after stocks finished mostly higher in yesterday's action, with another tame inflation reading and strength in tech stocks pushing the S&P 500 to fresh record highs.

The major averages enter Friday's action mostly higher for the week.

A retreat in crude oil prices and Treasury yields added to the constructive backdrop yesterday, though there was little in the way of geopolitical news regarding the U.S. and Iran. Bloomberg reports that Treasury Secretary Scott Bessent said in an interview that the U.S. will announce "unprecedented" economic isolation measures against Iran next week.

While the July CPI and PPI releases were the keystone economic data releases this week, the market has several important data points on the calendar this morning as well, including July Retail Sales (Briefing.com consensus 0.2%) at 8:30 a.m. ET and the preliminary University of Michigan Consumer Sentiment Index for August at 10:00 a.m. (Briefing.com consensus 54.5).

In corporate news:

• OpenAI's revenue run rate has reached $40 billion, according to Bloomberg.
• Applied Materials (AMAT 506.89, -27.65, -5.34) beat EPS expectations by $0.10, beat revenue expectations, and guided Q4 EPS and revenues above consensus.
• Sandisk (SNDK 1,631.79, +103.68, +6.78) was resumed with an Overweight at JPMorgan, with a target price of $2,250.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed finish to the week with South Korea's Kospi (+2.4%) rising to a three-week high. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: -1.1%, China's Shanghai Composite: UNCH, India's Sensex: -0.1%, South Korea's Kospi: +2.4%, Australia's ASX All Ordinaries: -0.7%.

In news:

• Fitch expects to see modest growth in China's insurances sector for the remainder of the year amid some regulatory support.
• A former Japanese currency diplomat Furusawa said that the Bank of Japan plans another 50-75 basis points of rate hikes, adding that another U.S. intervention is possible if the yen returns to this year's low against the dollar.
• Australia's Prime Minister Albanese said that he appealed to President Trump to exempt Australia from additional tariffs.

In economic data:

• China's July New Loans -CNY340.0 bln (expected -CNY50.0 bln; last CNY1.61 trln), July Total Social Financing CNY1.41 trln (expected CNY1.20 trln; last CNY3.36 trln)
• Hong Kong's Q2 GDP -0.6% qtr/qtr, as expected (last -0.6%); 4.3% yr/yr, as expected (last 4.3%)
• Australia's Q2 Home Loans -1.9% qtr/qtr (last -3.5%)
• New Zealand's July Business PMI 54.3 (last 60.1)
• India's July WPI Inflation 9.78% yr/yr (expected 9.95%; last 9.87%)

Major European indices trade near their flat lines while Germany's DAX (+0.8%) outperforms with SAP and Rheinmetall contributing to the strength. STOXX Europe 600: UNCH, Germany's DAX: +0.8%, U.K.'s FTSE 100: UNCH, France's CAC 40: +0.1%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: +0.2%.

In news:

• Reform leader Farage won a by election in Clacton, which was expected.
• Russia's Foreign Minister Lavrov said that an immediate ceasefire in Ukraine is not realistic.

In economic data:

• Eurozone's flash Q2 GDP 0.4% qtr/qtr, as expected (last 0.0%); 1.0% yr/yr, as expected (last 0.5%). Q2 Employment Change 0.1% qtr/qtr, as expected (last 0.1%); 0.5% yr/yr (expected 0.6%; last 0.5%). June trade surplus EUR8.6 bln (expected deficit of EUR2.2 bln; last deficit of EUR9.0 bln)
• Germany's July WPI 0.2% m/m (expected -0.2%; last -0.7%); 5.3% yr/yr (last 4.9%)
• France's July CPI 0.6% m/m, as expected (last -0.3%); 2.1% yr/yr, as expected (last 1.8%).
• Swiss Q2 GDP 1.5% qtr/qtr (last 0.7%)

[BRIEFING.COM] Stocks advanced on Thursday as a softer-than-expected July PPI report further eased Fed tightening concerns, while strength across mega-cap technology helped lift the S&P 500 to fresh record territory. The S&P 500 (+0.7%) crossed 7,800 for the first time and notched record intraday and closing highs, while the Nasdaq Composite (+0.8%) outperformed and the DJIA (+0.1%) eked out a modest gain.

July PPI was unchanged (Briefing.com consensus: 0.1%), while core PPI increased 0.2% (Briefing.com consensus: 0.3%), leaving both measures slightly below expectations despite modest upward revisions to the prior month's readings. Coming on the heels of Wednesday's in-line CPI report, the data reinforced the market's increasingly favorable view of the policy outlook. The shift was evident in fed funds futures, with the probability of a 25-basis-point rate hike at the September FOMC meeting now at 34.6%, according to the CME FedWatch tool. That compares with 40.6% just before this morning's PPI release and 55.0% a week ago.

The friendlier rate backdrop helped fuel another strong showing from growth stocks. The information technology sector (+1.0%) finished among the leaders, with memory stocks driving much of the early strength following positive takeaways from Sandisk (SNDK 1528.11, +183.82, +13.67%) investor day. Sandisk and Western Digital (WDC 487.29, +33.19, +7.31%) were among the top-performing S&P 500 components, while SK hynix Inc. (SKHY 165.65, +11.24, +7.28%) extended its August rebound and moved back toward its $170 July 10 IPO opening price after falling to post-IPO lows late last month.

Strength across the semiconductor group faded considerably during the afternoon, however, leaving the PHLX Semiconductor Index up just 0.5% after gaining more than 2.0% earlier in the session. Coherent (COHR 327.35, -28.29, -7.95%) was a notable laggard within the group following its earnings report. More broadly, the semiconductor retreat coincided with a sharp pickup in software stocks, suggesting some rotation within technology during the afternoon. The iShares Expanded Tech-Software ETF (IGV) jumped 3.1%, helped by an impressive surge in Workday (WDAY 206.45, +31.16, +17.78%) after Reuters reported that Silver Lake is in talks to acquire the company.

Mega-cap stocks also provided meaningful support after yesterday's weaker showing. The communication services sector (+1.6%) led all S&P 500 sectors as Meta Platforms (META 594.97, +16.12, +2.78%) ranked among the strongest "Magnificent Seven" names. Netflix (NFLX 78.24, +4.03, +5.43%) also advanced sharply following reports that Bill Ackman's Pershing Square fund established a new stake.

The real estate sector (+1.3%) was another standout as Treasury yields moved lower following the inflation data.

Oil provided another source of support, although the path lower was somewhat choppy. Crude moved around considerably without a meaningful geopolitical headline, contributing to the major averages' retreat from their opening highs before stocks recovered through the afternoon. WTI crude ultimately settled $2.20 lower (-2.6%) at $81.06 per barrel, while the energy sector (-0.1%) finished only modestly lower. 

The materials sector (-0.7%) was the day's weakest performer amid lower precious metals prices and weakness across fertilizer names.

Ultimately, Thursday's advance capped another constructive response to this week's inflation data, with softer producer prices further reducing expectations for additional Fed tightening and helping the S&P 500 establish fresh record highs. The afternoon rotation from semiconductors toward software kept technology firmly supportive even as the early chip rally faded, while lower Treasury yields and oil prices provided a favorable backdrop elsewhere in the market.

U.S. Treasuries took some solace in a July PPI report that reinforced the belief coming out of the July CPI report that the Fed won't be raising rates at its September FOMC meeting. The 2-year note yield settled down six basis points to 4.14%, and the 10-year note yield settled down four basis points to 4.64%. 

• Russell 2000: +23% YTD
• S&P Mid Cap 400: +18.4% YTD
• Nasdaq Composite:  +15.3% YTD
• S&P 500: +13.9% YTD
• DJIA: +12.0% YTD

Reviewing today's data:

• July PPI 0.0% (Briefing.com consensus 0.1%); Prior was revised to -0.1% from -0.3%, July Core PPI 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.2%
  • The key takeaway from the report is that, like the CPI, it was devoid of "new" inflation-baked surprises. Headline and core readings trended in the right direction of disinflation, which is an appeasement for today's trading dynamic, but of course the inflation rates themselves remain on the high side and need to come down much more to appease inflation hawks.
• Weekly Initial Claims 209K (Briefing.com consensus 205K); Prior was revised to 200K from 199K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.799 mln from 1.801 mln
  • The key takeaway from the report is the 4-week moving average for initial claims running below 200,000 (currently 199,000), which is an historically low number consistent with a labor market that is light on layoff activity.