[BRIEFING.COM] The major averages finished a choppy Friday modestly lower, with the S&P 500 (-0.3%) and Nasdaq Composite (-0.5%) declining while the DJIA ended near its flatline. The market saw relatively little movement during the afternoon after an eventful morning shaped by Fed Chair Kevin Warsh's Jackson Hole address, rising Treasury yields, and a sharp retreat in semiconductor stocks. Despite today's losses, all three major averages secured gains for the week.

Warsh's remarks were the main driver of the session. The Fed Chair emphasized that inflation remains above the central bank's 2% target and said price stability should be its predominant focus at this point. His comments prompted a significant repricing of near-term policy expectations, with the probability of a 25-basis-point rate hike at the September FOMC meeting rising sharply to 57.5% from 35.4% yesterday.

Treasury yields climbed in response, with the pressure particularly pronounced at the shorter end of the curve. The move weighed more heavily on smaller stocks, leaving the Russell 2000 (-1.4%) and S&P Mid Cap 400 (-1.2%) with considerably wider losses than the major averages.

The major averages initially took the hawkish policy shift in stride, rallying to session highs during the morning behind strength in non-semiconductor mega-cap stocks. Those gains moderated as the session progressed, but remained enough to lift the consumer discretionary (+1.7%) and communication services (+1.6%) sectors to the top of the sector standings behind solid gains in Amazon (AMZN 266.43, +10.17, +3.97%) and Alphabet (GOOG 342.88, +5.17, +1.53%) .

Apple (AAPL 319.70, +5.12, +1.63%) and Microsoft (MSFT 513.53, +8.47, +1.68%) also advanced, providing some support for the major averages despite weakness elsewhere in the information technology sector (-1.3%).

Semiconductor stocks were the largest source of pressure, sending the PHLX Semiconductor Index down 3.5%. NVIDIA (NVDA 217.48, -10.50, -4.61%) gave back a sizable portion of yesterday's post-earnings surge, while Marvell (MRVL 216.62, -24.83, -10.28%) was a notable laggard following its quarterly report.

Software stocks also surrendered some of yesterday's earnings-driven gains, although the selling was considerably less pronounced. The iShares Expanded Tech-Software Sector ETF declined 0.7%, with Workday (WDAY 204.72, +11.15, +5.76%) standing out on the upside following its earnings report.

Six S&P 500 sectors ultimately finished lower. In addition to the information technology sector, the utilities (-1.1%) and industrials (-1.0%) sectors were among the main laggards.

While the financial sector (+0.3%) notched a modest gain, PayPal (PYPL 53.66, -7.81, -12.71%) finished as the worst-performing S&P 500 component after Bloomberg reported that the Advent/Stripe consortium abandoned its planned leveraged buyout valued at more than $50 billion, although the companies could resume discussions at a later date.

Ultimately, Fed Chair Warsh's Jackson Hole address set the tone for Friday's session, driving a hawkish repricing of September policy expectations and pushing Treasury yields higher, particularly at the shorter end of the curve. Strength in several non-semiconductor mega-cap stocks helped limit the damage at the headline-index level, but weakness in semiconductors and smaller stocks left the broader market under pressure. Even so, the major averages held onto enough of their earlier weekly gains to finish the week in positive territory.

U.S. Treasuries had a rough finish to the week with yields on 3-year and 5-year note yields hitting fresh highs for the year while the long bond outperformed but could not secure a higher finish. The 2-year note yield settled up 12 basis points to 4.35% (+12 basis points this week), and the 10-year note yield settled up five bais points to 4.72% (-2 basis points this week). 

• Russell 2000: +19.8% YTD
• S&P Mid Cap 400: +14.4% YTD
• Nasdaq Composite: +13.6% YTD
• S&P 500: +12.7% YTD
• DJIA: +11.4% YTD

Reviewing today's data:

• August Chicago PMI 47.1 (Briefing.com consensus 57.0); Prior 57.6
• August Univ. of Michigan Consumer Sentiment - Final 51.7 (Briefing.com consensus 51.0); Prior 51.0
  • The key takeaway from the report is that persistent inflation concerns are undercutting consumer sentiment.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (flat) remain little changed from previous levels with just half an hour left in the session. Though stocks largely ceded their earlier gains, the major averages remain on track for a modestly higher week-to-date finish.

Workday (WDAY 205.74, +12.17, +6.29%) is poised to end the day as the best-performing S&P 500 component after Q2 results exceeded FactSet earnings expectations and slightly topped revenue estimates, with investors focusing on improving profitability, measurable AI traction, and a new repurchase authorization.

Broader weakness in the software space has the iShares GS Software ETF down 0.8%.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.1%) continue to trade in a steady range, modestly lower as the market enters the final hour of the session.

Afternoon developments have been relatively quiet compared to this morning's address from Fed Chair Kevin Warsh, which generated some choppiness in both the equity and bond markets.

On a related note, crude oil futures settled $0.23 lower (-0.3%) at $83.38 per barrel today amid a lack of geopolitical news.

[BRIEFING.COM] The S&P 500 (-0.31%) is in second place on Friday afternoon, down about 24 points.

Briefly, S&P 500 constituents PayPal (PYPL 53.77, -7.70, -12.53%), PG&E (PCG 16.47, -1.48, -8.25%), and Coinbase Global (COIN 176.22, -14.50, -7.60%) pepper the bottom of the standings. PLPL falls as the collapse of Advent and Stripe's takeover bid removes a key valuation catalyst, refocusing investors on the company's competitive and growth challenges, while PCG dips after California lawmakers blocked Governor Newsom's proposed wildfire-liability plan, raising uncertainty around utilities' exposure to catastrophic fire losses and insurer claims, with COIN's losses once again tied directly to declines in cryptocurrencies across the market.

Meanwhile, Domino's Pizza (DPZ 352.45, +20.39, +6.14%) rises near the top of the average despite a dearth of corporate news.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.41%) is in last place on Friday afternoon, down about 110 points.

Gold futures settled $134.10 lower (-2.9%) at $4,529.90/oz, as a more hawkish tone from Fed Chair Kevin Warsh at Jackson Hole boosted Treasury yields and reduced expectations for near-term rate cuts. A stronger dollar has added further pressure, sending gold down -3.22% this week.

Meanwhile, the U.S. Dollar Index is up about +0.6% to $99.71.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.11%) is in "first" place on Friday afternoon, down less than 58 points as more aggressive losses are being had elsewhere.

A look inside the DJIA shows that NVIDIA (NVDA 218.79, -9.19, -4.03%), 3M (MMM 174.12, -4.71, -2.63%), and Cisco (CSCO 109.99, -2.16, -1.93%) are some of today's top laggards.

Meanwhile, Amazon (AMZN 265.40, +9.14, +3.57%) enjoys decent gains.

The DJIA is now +0.44% higher week-to-date.

Also, at the top of the hour, Baker Hughes (BKR 62.42, +0.31, +0.50%) announced a weekly U.S. rotary rig count of 588, flat w/w and +52 yr/yr.

[BRIEFING.COM] The major averages have slipped to their session lows just after midday, with the S&P 500 (-0.3%) and Nasdaq Composite (-0.6%) moving lower while the DJIA (-0.1%) trades near its flatline. The relatively subdued index moves mask a choppy morning that featured an early mega-cap-driven rally before semiconductor weakness and rising Treasury yields weighed on the broader market.

Stocks spent the first hour of the session little changed as investors digested Fed Chair Kevin Warsh's address at the Jackson Hole Symposium. Mr. Warsh emphasized that inflation remains above the Fed's 2% target and said the central bank's predominant focus should currently be on price stability. The comments prompted a notable repricing of near-term policy expectations, with the CME FedWatch Tool assigning a 61.7% probability to a 25-basis-point rate hike at the September FOMC meeting, up from 35.4% yesterday.

Treasury yields moved higher alongside the shift in rate expectations. The 2-year note yield is up 11 basis points to 4.34%, while the 10-year note yield has risen four basis points to 4.72%. The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.5%) have unsurprisingly struggled against that backdrop.

The major averages initially took the hawkish policy shift in stride, climbing to session highs around 11:00 a.m. as non-semiconductor mega-cap stocks widened their gains. That strength has faded somewhat but remains evident in the communication services (+1.3%) and consumer discretionary (+1.4%) sectors, which continue to outperform behind gains in Alphabet (GOOG 342.12, +4.41, +1.31%) and Amazon (AMZN 265.42, +9.16, +3.57%). Apple (AAPL 320.96, +6.38, +2.03%) and Microsoft (MSFT 517.10, +12.04, +2.38%) are also higher, helping offset some of the weakness elsewhere in the information technology sector (-0.8%).

Semiconductor stocks have been the biggest source of pressure as the morning has progressed. The PHLX Semiconductor Index (-3.0%) has fallen sharply, with NVIDIA (NVDA 219.82, -8.16, -3.58%) giving back a portion of yesterday's post-earnings surge and Marvell (MRVL 217.51, -23.94, -9.92%) sinking following its own results. The weakness has left the information technology sector (-0.8%) among the day's laggards.

Software stocks are also giving back some of yesterday's earnings-driven surge, with the iShares Expanded Tech-Software Sector ETF down 0.8%. Workday (WDAY 205.25, +11.68, +6.04%) is higher following its earnings report, although CrowdStrike (CRWD 216.92, -11.04, -4.84%) and other recent winners have come under renewed pressure.

Selling has also spread beyond technology as the session has progressed. The industrials sector (-1.0%) is among the weaker groups, while six S&P 500 sectors now trade lower after eight had been positive shortly after the open. Decliners outpace advancers by roughly a 3-to-2 margin on the NYSE and a 2-to-1 margin on the Nasdaq, reflecting the broader deterioration beneath the major averages.

Overall, the morning has featured a notable shift from the initially constructive response to Warsh's remarks. Strength in non-semiconductor mega-caps continues to provide support for the major averages, but rising Treasury yields, a sharp semiconductor retreat, and weakening breadth have erased the earlier gains and left the market near its session lows just after midday.

Reviewing today's data:

• August Chicago PMI 47.1 (Briefing.com consensus 57.0); Prior 57.6
• August Univ. of Michigan Consumer Sentiment - Final 51.7 (Briefing.com consensus 51.0); Prior 51.0
  • The key takeaway from the report is that persistent inflation concerns are undercutting consumer sentiment.

[BRIEFING.COM] The major averages are back near session lows just after midday.

U.S. Treasuries are also under pressure, with the 10-year note yield now up four basis points to 4.72%.

In addition to concentrated weakness in the information technology sector (-1.0%), strength in the broader market has waned, withsix S&P 500 sectors now trading lower. Decliners now outpace advancers by a roughly 3-to-2 margin on the NYSE and a roughly 2-to-1 clip on the Nasdaq.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.3%), and DJIA (+0.1%) are off their session highs as the information technology sector (-0.9%) comes under pressure, with particular weakness across semiconductor stocks.

Marvell (MRVL 216.80, -24.65, -10.21%) is one of the worst-performing S&P 500 components today following its Q2 (Jul) results, as investors appeared to want more upside after the stock's 40%+ rally since late July. While Q2 revenue grew 36.5% yr/yr to a record $2.74 billion and Q3 guidance was above consensus at the midpoint, EPS upside was modest, and gross margin is expected to contract slightly in Q3. Importantly, however, Marvell raised its FY27 revenue outlook to $12 billion (+45%) from $11.5 billion and FY28 revenue guidance to $18 billion (+50%) from $16.5 billion (+45%), reinforcing the increasingly bullish long-term AI infrastructure story. Marvell's results reinforce the strength of its AI infrastructure opportunity, but the near-term reaction reflects elevated expectations rather than a fundamental deterioration in the story. After the stock rallied more than 40% since late July and following NVIDIA's (NVDA 220.76, -7.22, -3.17%) strong quarter this week, investors were likely looking for more upside in Q2 and a clearly above-consensus Q3 outlook. That said, the more important takeaway is the significant improvement in Marvell's longer-term outlook, with FY27 and FY28 revenue targets both raised materially.

The PHLX Semiconductor Index is now down 3.5%.

[BRIEFING.COM] The major averages remain on track for a higher finish to the week, with the S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.4%) sitting near session highs just before midday.

The major averages spent the first hour or so of the session little changed as investors digested commentary from Fed Chair Kevin Warsh at the Jackson Hole symposium. Mr. Warsh confirmed that the Fed's attention will be on price stability as inflation remains above target. Following Mr. Warsh's address, the CME FedWatch tool now assigns a 57.5% probability to a 25-basis-point rate hike at the September FOMC meeting, up from 35.4% yesterday.

The shift in expectations caused a spike in shorter-dated Treasury yields, with the 2-year note yield up nine basis points to 4.32%.

Unsurprisingly, the Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.5%) are lower. However, the major averages continue to hold decent gains, which is largely a result of strength in non-semiconductor mega-cap stocks, which lagged amid yesterday's earnings-driven tech gains. The Vanguard Mega Cap Growth ETF is up 0.6%. 

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+0.4%) are moving higher as non-semiconductor mega-cap stocks widen their gains for the day.

Strength in Apple (AAPL 321.92, +7.34, +2.33%) and Microsoft (MSFT 515.48, +10.42, +2.06%) has pushed the information technology sector (+0.3%) into positive territory, while Alphabet (GOOG 344.92, +7.21, +2.13%) and Amazon (AMZN 266.80, +10.54, +4.11%) lead the communication services (+2.3%) and consumer discretionary (+2.0%) sectors firmly higher.

The Vanguard Mega Cap Growth ETF is now up 0.8%.

[BRIEFING.COM] The major averages remain largely unchanged near their baselines.

Fed Chair Kevin Warsh reiterated that while the employment side of the Fed's mandate is doing well, the numbers are more concerning on the price-stability side. Mr. Warsh noted, " The Fed's preferred measure of inflation, the 12-month change in the PCE price index, stands at 3.7 percent, while the six-month change is 4.1 percent. The comparable measures from the consumer price index are also elevated, as are the core measures of both PCE and CPI inflation. None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2 percent target. So the Fed's predominant focus right now should be on prices."

Separately, the final reading for the University of Michigan Consumer Sentiment Index for August increased to 51.7 (Briefing.com consensus: 51.0) from the preliminary reading of 51.0. The final reading for July was 55.2. In the same period a year ago, the index stood at 58.2.

The key takeaway from the report is that persistent inflation concerns are undercutting consumer sentiment.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.1%), and DJIA (+0.1%) are little changed as Fed Chair Kevin Warsh begins his address at the Jackson Hole Symposium.

The information technology sector (-0.3%) has given back a touch of yesterday's strength, with weakness concentrated across semiconductor stocks. NVIDIA (NVDA 225.34, -2.64, -1.16%) moves lower, and the PHLX Semiconductor Index is down 1.1%.

However, mega-cap stocks outside of the information technology sector are rebounding from a mostly lower showing yesterday, helping the communication services (+1.2%) and consumer discretionary (+0.8%) sectors outperform. A total of eight S&P 500 sectors trade higher so far.

On the economic data front, the Chicago PMI registered at 47.1 in August (Briefing.com consensus 57.0), down from the prior level of 57.6.

The final reading of the August University of Michigan Consumer Sentiment Index expanded slightly to 51.7 (Briefing.com consensus 51.0) from the previous level of 51.0.

The stock market remains on track for a mixed open ahead of Fed Chair Kevin Warsh's address at the Jackson Hole Symposium.

There are some notable earnings-based moves in the mix, though the developments are largely company-specific as investors wait to see if Mr. Warsh's commentary will be market-moving.

The S&P 500 futures currently trade in line with fair value. 

Equity indices in the Asia-Pacific region ended the week on a mixed note with South Korea's Kospi (-1.8%) showing relative weakness. Japan's Prime Minister Takaichi confirmed plans to make changes to her cabinet in the second half of September. Japan's 2-yr JGB auction saw weak demand amid building expectations for more rate hikes from the Bank of Japan. Australian furniture retailer Harvey Norman said that retail conditions became more variable in the last reporting period with little improvement expected in the near term. Standard & Poor's affirmed China's A+ sovereign rating with a Stable outlook.

• In economic data:
  • Japan's August Tokyo CPI 1.9% yr/yr (last 1.8%) and Tokyo Core CPI 1.8%, as expected (last 1.7%). July jobs/applications ratio 1.18 (expected 1.19; last 1.18) and July Unemployment Rate 2.4% (expected 2.5%; last 2.5%)
  • India's July Industrial Production 6.7% yr/yr (expected 6.0%; last 8.8%) and Manufacturing Output 7.3% m/m (last 9.5%)

---Equity Markets---

• Japan's Nikkei: +0.4% 
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.1%
• India's Sensex: +0.4%
• South Korea's Kospi: -1.8% 
• Australia's ASX All Ordinaries: +0.6%

Major European indices are looking for a higher finish to the week. France's Q2 GDP was revised down to show no growth and there was also a small contraction in nonfarm payrolls during the second quarter. French Finance Minister Lescure said that the economy suffered greatly after the summer heatwave, adding that data for Q3 will also be impacted. Meanwhile, Spain saw slightly hotter-than-expected inflation in August.

• In economic data:
  • Eurozone's August Business and Consumer Survey 98.4 (expected 97.5; last 97.1)
  • Germany's July Import Price Index 0.2% m/m (expected 0.3%; last -0.7%); 6.8% yr/yr (last 6.1%). August Unemployment Change 4,000, as expected (last 6,000) and Unemployment Rate 6.4%, as expected (last 6.4%)
  • France's Q2 GDP 0.0% qtr/qtr (expected 0.2%; last -0.2%); 0.5% yr/yr (expected 0.7%; last 0.9%). August CPI 0.7% m/m, as expected (last 0.6%); 2.4% yr/yr (last 2.1%). July Consumer Spending 0.5% m/m (expected 0.1%; last 0.6%).Q2 nonfarm payrolls -0.1% qtr/qtr (last -0.1%)
  • Italy's June Industrial Sales -1.0% m/m (last 0.5%); 3.1% yr/yr (last 5.2%). August Business Confidence 89.9 (expected 90.0; last 89.7) and Consumer Confidence 94.5 (expected 95.0; last 94.2)
  • Spain's August CPI 0.7% m/m (expected 0.6%; last 0.3%); 4.3% yr/yr (expected 4.2%; last 3.6%). August Core CPI 2.9% yr/yr (last 3.0%). July Retail Sales -0.3% yr/yr (last 0.6%)
  • Swiss August KOF Leading Indicators 106.7 (expected 103.0; last 104.2)

---Equity Markets---

• STOXX Europe 600: +0.5% 
• Germany's DAX: +0.7% 
• U.K.'s FTSE 100: +0.2% 
• France's CAC 40: +1.1% 
• Italy's FTSE MIB: +0.8% 
• Spain's IBEX 35: +0.7% 

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

Headlines are relatively quiet ahead of Fed Chair Warsh's address at 10:00 a.m. ET.

Crude oil is moving modestly lower this morning, currently down $0.76 (-0.9%) to $82.77 per barrel. Oil settled higher yesterday following reports that the White House does not wish to return to the terms of the June memorandum of understanding with Iran. However, CNBC reports that Iranian foreign minister Seyed Abbas Araghchi said "putting diplomacy back on track isn't impossible.

Equity futures point to a slightly lower open this morning as the market awaits a 10:00 a.m. ET address from Fed Chair Kevin Warsh at the Jackson Hole Symposium.

Monetary policy expectations have shifted considerably throughout the year, with the market expecting two rate cuts by the end of the year in January before those expectations shifted to expect at least one hike as a result of oil-driven inflation. Currently, the CME FedWatch tool assigns a 36% probability to a 25-basis point rate hike at the September FOMC meeting, which leaves the market anticipating any color from Mr. Warsh this morning.

Stocks are coming off a winning Thursday in which all three major indices notched gains and moved into positive territory for the week as a strong round of tech earnings, including chip giant NVIDIA (NVDA 226.96, -1.02, -0.5%) propelled the market higher. Leadership was narrow, however, and the information technology sector was the only S&P 500 sector that finished with a gain.

In corporate news:

• Autodesk (ADSK 259.99, -10.59, -3.9%) beat EPS expectations by $0.18, beat revenue expectations, guided Q3 EPS below consensus with revenues above consensus, and guided FY27 EPS in-line with revenues above consensus.
• Marvell (MRVL 221.30, -20.15, -8.4%) beat EPS expectations by $0.01, reported revenues in-line, and guided Q3 EPS and revenues in-line.
• Ulta Beauty (ULTA 532.00, -8.10, -1.5%) beat EPS expectations by $0.35, beat revenue expectations, and raised FY27 EPS, revenue, and comparable sales guidance.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended the week on a mixed note with South Korea's Kospi (-1.8%) showing relative weakness. Japan's Nikkei: +0.4%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.1%, India's Sensex: +0.4%, South Korea's Kospi: -1.8%, Australia's ASX All Ordinaries: +0.6%.

In news: 

• Japan's Prime Minister Takaichi confirmed plans to make changes to her cabinet in the second half of September.
• Japan's 2-year JGB auction saw weak demand amid building expectations for more rate hikes from the Bank of Japan.
• Australian furniture retailer Harvey Norman said that retail conditions became more variable in the last reporting period with little improvement expected in the near term.
• Standard & Poor's affirmed China's A+ sovereign rating with a Stable outlook.

In economic data: 

• Japan's August Tokyo CPI 1.9% yr/yr (last 1.8%) and Tokyo Core CPI 1.8%, as expected (last 1.7%). July jobs/applications ratio 1.18 (expected 1.19; last 1.18) and July Unemployment Rate 2.4% (expected 2.5%; last 2.5%)
• India's July Industrial Production 6.7% yr/yr (expected 6.0%; last 8.8%) and Manufacturing Output 7.3% m/m (last 9.5%)

Major European indices are looking for a higher finish to the week. STOXX Europe 600: +0.4%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.2%, France's CAC 40: +1.0%, Italy's FTSE MIB: +0.8%, Spain's IBEX 35: +0.5%.

In news: 

• France's Q2 GDP was revised down to show no growth and there was also a small contraction in nonfarm payrolls during the second quarter.
• French Finance Minister Lescure said that the economy suffered greatly after the summer heatwave, adding that data for Q3 will also be impacted.
• Meanwhile, Spain saw slightly hotter-than-expected inflation in August.

In economic data: 

• Eurozone's August Business and Consumer Survey 98.4 (expected 97.5; last 97.1)
• Germany's July Import Price Index 0.2% m/m (expected 0.3%; last -0.7%); 6.8% yr/yr (last 6.1%). August Unemployment Change 4,000, as expected (last 6,000) and Unemployment Rate 6.4%, as expected (last 6.4%)
• France's Q2 GDP 0.0% qtr/qtr (expected 0.2%; last -0.2%); 0.5% yr/yr (expected 0.7%; last 0.9%). August CPI 0.7% m/m, as expected (last 0.6%); 2.4% yr/yr (last 2.1%). July Consumer Spending 0.5% m/m (expected 0.1%; last 0.6%).Q2 nonfarm payrolls -0.1% qtr/qtr (last -0.1%)
• Italy's June Industrial Sales -1.0% m/m (last 0.5%); 3.1% yr/yr (last 5.2%). August Business Confidence 89.9 (expected 90.0; last 89.7) and Consumer Confidence 94.5 (expected 95.0; last 94.2)
• Spain's August CPI 0.7% m/m (expected 0.6%; last 0.3%); 4.3% yr/yr (expected 4.2%; last 3.6%). August Core CPI 2.9% yr/yr (last 3.0%). July Retail Sales -0.3% yr/yr (last 0.6%)
• Swiss August KOF Leading Indicators 106.7 (expected 103.0; last 104.2

[BRIEFING.COM] Technology stocks powered the major averages higher on Thursday, with another round of strong earnings reactions allowing the Nasdaq Composite (+1.6%) to outperform the S&P 500 (+0.7%) and DJIA (+0.2%). The gains returned all three major averages to positive territory for the week, although the strength at the index level masked a notably weaker showing across most of the market.

The information technology sector (+3.4%) was the only S&P 500 sector to finish higher, supported by substantial gains across both semiconductor and software stocks. NVIDIA (NVDA 227.91, +18.25, +8.70%) surged after another strong earnings report and bullish commentary surrounding the AI buildout, putting further distance between the stock and its 50-day moving average following its recent seven-session losing streak. The PHLX Semiconductor Index (+2.3%) finished firmly higher.

Software stocks provided even stronger leadership, sending the iShares Expanded Tech-Software Sector ETF up 7.7%. Salesforce (CRM 252.10, +46.48, +22.60%) led both the S&P 500 and DJIA after its results featured encouraging forward demand indicators and expectations for accelerating organic revenue growth in the second half. CrowdStrike (CRWD 227.96, +38.78, +20.50%) was another major post-earnings winner, adding to the broad strength across software names.

The concentration of today's gains was evident in the S&P 500 Equal Weighted Index (-0.3%), which finished lower despite the solid advance for its market-cap-weighted counterpart. Defensive groups were among the weakest performers, with the consumer staples sector (-1.5%) finishing at the bottom of the sector standings. Hormel Foods (HRL 21.28, -2.44, -10.27%) finished as the worst-performing S&P 500 component after its earnings release. The health care sector (-1.1%) also lagged as Moderna (MRNA 142.77, -6.89, -4.60%) faced pressure again after last week's monumental surge.

Retail stocks remained another source of weakness. The consumer discretionary sector (-1.0%) finished firmly lower as disappointing earnings reactions from Best Buy (BBY 83.58, -3.86, -4.41%) and Burlington Stores (BURL 289.89, -24.10, -7.68%) weighed on the group, helping send the State Street SPDR S&P Retail ETF down 1.8%.

Oil prices provided a late-session crosscurrent after spending much of the day lower. WTI crude rallied sharply during the afternoon following a report that the White House has no intention of returning to the terms of the June memorandum of understanding with Iran, eventually settling $1.36 higher (+1.7%) at $83.61 per barrel. The move helped the energy sector (-0.4%) recover from a larger decline and finish with the narrowest loss among the ten sectors that ended lower.

Ultimately, Thursday's advance was almost entirely a technology-driven affair, as strong reactions to NVIDIA, Salesforce, CrowdStrike, and other earnings reports outweighed rotational weakness throughout the rest of the market. Attention remains on the earnings calendar after the close, with Marvell (MRVL 241.45, -3.66, -1.49%) and Workday (WDAY 193.57, +2.82, +1.48%) set to report, but the focus will shift back toward monetary policy tomorrow when Fed Chair Kevin Warsh delivers his keynote address at the Jackson Hole Symposium. With the CME FedWatch Tool assigning roughly a one-in-three probability to a September rate hike, Warsh's comments could provide the next major catalyst for rates and the broader market.

U.S. Treasuries recorded slim losses on Thursday after a sideways session concluded with a late slip to lows alongside an uptick in the price of oil. The U.S. Treasury completed this week's note auction slate with a good $44 billion 7-year note offering. The 2-year note yield settled up one basis point to 4.23%, and the 10-year note yield settled up one basis point to 4.67%.

• Russell 2000: +21.5% YTD
• S&P Mid Cap 400: +15.7% YTD
• Nasdaq Composite: +14.2% YTD
• S&P 500: +12.9% YTD
• DJIA: +11.5% YTD

Reviewing today's data:

• July Adv. Intl. Trade in Goods -$118.8 bln; Prior was revised to -$101.4 bln from -$101.5 bln
• July Adv. Retail Inventories 0.7%; Prior 0.0%
• July Adv. Wholesale Inventories 1.3%; Prior 0.3%
• Weekly Initial Claims 203K (Briefing.com consensus 210K); Prior was revised to 207K from 206K, Weekly Continuing Claims 1.778 mln; Prior was revised to 1.796 mln from 1.799 mln
  • The key takeaway from the report is that initial claims continue hovering just above the 200,000 mark, showing little change in overall layoff activity while continuing claims are just above their lowest level of the year.