[BRIEFING.COM] The major averages remain near session highs, supported by broad participation despite continued weakness in semiconductor stocks.

Cybersecurity stocks are exhibiting notable strength, extending their recent gains amid growing demand for security solutions as cyber threats increase and AI adoption expands. Zscaler (ZS 230.97, +14.16, +6.53%), Palo Alto Networks (PANW 416.06, +17.56, +4.41%), SailPoint (SAIL 20.73, +0.71, +3.54%), Okta (OKTA 229.50, +9.29, +4.22%), CrowdStrike (CRWD 273.01, +10.00, +3.80%), and Fortinet (FTNT 193.88, +4.78, +2.53%)) are among the standouts, with Okta reaching a new 52-week high and Fortinet hitting an all-time high.

The iShares Expanded Tech-Software Sector ETF (IGV) is up 2.2%, helping offset weakness across semiconductor stocks and providing some support to the information technology sector.

[BRIEFING.COM] The stock market is enjoying a broadly positive session on Friday, with the major averages trading near their highs of the day as gains extend well beyond the largest technology stocks. The S&P 500 (+0.6%), Nasdaq Composite (+0.6%), and DJIA (+0.8%) are all firmly higher, while the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.4%) are also participating in the advance.

A steady stream of corporate developments is shaping today's sector performance, producing some notable divergences despite the generally positive market backdrop. One of the more consequential headlines involves SpaceX (SPCX 162.52, +1.94, +1.21%), which announced an agreement to acquire a nationwide wireless spectrum portfolio from Grain Management. The development has weighed on established wireless carriers, including AT&T (T 22.08, -2.51, -10.20%), Verizon (VZ 41.23, -4.41, -9.67%), and T-Mobile US (TMUS 149.82, -21.49, -12.55%), amid concerns about increased competition from Starlink's expanding mobile ambitions. The communication services sector (+0.2%) is a relative laggard.

The same announcement is benefiting communications tower operators, including American Tower (AMT 179.50, +12.76, +7.66%), Crown Castle (CCI 78.14, +9.25, +13.43%), and SBA Comm (SBAC 181.26, +11.25, +6.62%), on expectations that a larger terrestrial wireless network could generate additional demand for tower infrastructure. Their strength has helped propel the real estate sector (+1.5%) toward the top of the sector rankings.

The consumer discretionary sector (+1.5%) is another standout, supported by gains in Tesla (TSLA 383.64, +8.64, +2.30%) after Reuters reported that September sales of Shanghai-built Model 3 and Model Y vehicles increased 5% year-over-year, accelerating from August's 3.6% growth. Amazon (AMZN 261.36, +7.30, +2.87%) is also advancing, contributing to a generally positive showing among mega-cap stocks.

However, that strength has not extended uniformly across the market's largest names. Apple (AAPL 335.03, -5.39, -1.58%) is a notable laggard following a Nikkei report that the company asked some suppliers to reduce component production for its iPhone refresh by as much as 20%. The news has also pressured supplier Skyworks (SWKS 77.06, -3.69, -4.57%), adding to the weakness in the information technology sector (+0.2%).

Semiconductor stocks are another source of relative weakness, with the PHLX Semiconductor Index down 0.7% after initially opening higher. Early encouragement followed reports that OpenAI's annualized revenue remains on track to meet or exceed $70 billion, easing concerns raised by yesterday's Financial Times report suggesting a figure closer to $50 billion. However, that relief has not translated into sustained buying across chipmakers, leaving the information technology sector trailing most of the broader market.

Elsewhere, the financials sector (+0.9%) is outperforming, while the consumer staples sector (-0.1%) is the only sector trading modestly lower after outperforming during yesterday's technology-led decline. The health care sector (+1.5%) is also benefiting from a sharp advance in Humana (HUM 435.24, +48.12, +12.43%), which regained four-star status for a major Medicare Advantage contract, restoring eligibility for bonus payments in 2028.

The broader market's advance is taking place with relatively little movement in crude oil prices or Treasury yields, allowing company-specific developments and improving participation to remain the dominant influences. Advancers outnumber decliners on both the NYSE and Nasdaq, reinforcing the breadth of today's gains despite continued semiconductor weakness.

The S&P 500, Nasdaq Composite, and DJIA are all positioned to finish the week higher if the current gains hold through the close, with Friday's broad participation providing an encouraging contrast to the concentrated technology selling seen in Thursday's session.

Reviewing today's data:

• The preliminary reading for the University of Michigan Consumer Sentiment Index for October decreased to 46.3 (Briefing.com consensus: 48.1) from the final reading of 48.1 for September. In the same period a year ago, the index stood at 53.6.
  • The key takeaway from the report is that consumer sentiment continues to deteriorate as the frustrations with the higher cost-of-living increase.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.6%), and DJIA (+0.7%) remain at session highs just after midday.

Stocks continue to see broad participation, leaving just the consumer staples sector (-0.1%) in negative territory.

However, the top-weighted information technology sector (+0.2%) holds the narrowest gain of the other ten S&P 500 sectors, which limits growth at the index level. In addition to relative weakness across semiconductor stocks (the PHLX Semiconductor Index is down 0.7%), Apple (AAPL 334.51, -5.91, -1.74%) is a mega-cap laggard after Nikkei reported that the company asked some suppliers to reduce component production for the iPhone refresh by up to 20%. Apple supplier Skyworks (SWKS 76.55, -4.20, -5.20%) is among the worst-performing S&P 500 names as a result.

[BRIEFING.COM] The major averages remain in a relatively steady range at midday, holding modest gains as positive market breadth continues to support the broader market.

On the earnings front, Delta Air Lines (DAL 80.79, -1.35, -1.64%) trades lower after missing Q3 earnings and revenue estimates and cutting its FY26 earnings and free cash flow outlooks. While demand and pricing remain strong, rising fuel costs and elevated operating expenses continue to pressure profitability, with the airline now anticipating a $6 billion increase in full-year fuel expenses.

Separately, crude oil is off its earlier lows, currently up $0.45 (+0.5%) to $91.94 per barrel.

[BRIEFING.COM] The major averages are trading near session highs just before midday, with the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) supported by solid participation across the broader market. The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) are also posting modest gains.

Market breadth is positive, with advancers outpacing decliners by roughly 7-to-5 on the NYSE and 11-to-8 on the Nasdaq. Nine S&P 500 sectors are higher, led by the real estate sector (+1.4%), the consumer discretionary sector (+1.3%), and the health care sector (+1.0%). Company-specific developments are contributing to sector mechanics.

The communication services sector (-0.2%) is lagging as wireless carriers retreat following SpaceX's (SPCX 163.33, +2.76, +1.72%) spectrum acquisition announcement, while the same development is lifting communications tower operators in the real estate sector.

Among mega-cap stocks, Tesla (TSLA 383.67, +8.67, +2.31%) is a standout, helping the consumer discretionary sector outperform, while the information technology sector (+0.2%) is having a more subdued showing amid a 0.3% decline in the PHLX Semiconductor Index.

[BRIEFING.COM] The major averages continue to edge higher, with several company-specific developments influencing today's sector performance.

The consumer discretionary sector (+1.5%) leads the market, supported by strength in Tesla (TSLA 387.07, +12.07, +3.22%) after Reuters reported that September sales of Shanghai-built Model 3 and Model Y vehicles rose 5% year-over-year to 95,366, accelerating from August's 3.6% growth. The figures include exports, highlighting improving overseas demand.

Meanwhile, Lumentum (LITE 1122.69, +74.09, +7.07%) is rallying and lifting optical networking peers Applied Optoelectronics (AAOI 112.34, +6.44, +6.08%) and Coherent (COHR 310.38, +8.02, +2.65%)) after CEO Michael Hurlston told Bloomberg that the company's optical component capacity is sold out through early 2029. The comments are helping the group recover from yesterday's AI-related selloff, while subsequent reporting suggests the discrepancy in OpenAI's reported revenue expectations largely reflected accounting differences rather than weakening demand

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.5%), and DJIA (+0.4%) are steadily rising to new session highs this morning as participation remains solid across stocks.

The preliminary reading for the University of Michigan Consumer Sentiment Index for October decreased to 46.3 (Briefing.com consensus: 48.1) from the final reading of 48.1 for September. In the same period a year ago, the index stood at 53.6.

The key takeaway from the report is that consumer sentiment continues to deteriorate as the frustrations with the higher cost-of-living increase.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) are modestly higher this morning after stocks opened to relatively broad gains, though some lingering weakness in technology stocks is limiting the advance.

The information technology sector (-0.1%) and PHLX Semiconductor Index (-0.3%) both opened higher following reports that OpenAI's annualized revenue is still expected to meet or exceed $70 billion, easing concerns raised by yesterday's Financial Times report suggesting the figure could fall closer to $50 billion, although both have since surrendered their early gains.

However, semiconductor weakness has not extended to all mega-cap names, with Tesla (TSLA 384.94, +9.94, +2.65%) and Amazon (AMZN 258.45, +4.39, +1.73%) advancing and helping the consumer discretionary sector (+1.1%) outperform.

Several company-specific developments are also influencing sector performance. The health care sector (+1.2%) is rebounding from yesterday's decline after Humana (HUM 433.50, +46.38, +11.98%) secured a four-star rating, up from 3.5 stars, for its 2.4 million-member Medicare Advantage contract, restoring eligibility for CMS bonus payments in 2028.

Meanwhile, the real estate sector (+1.0%) is benefiting from strength in communications tower operators such as Crown Castle (CCI 76.02, +7.12, +10.34%) following SpaceX's (SPCX 162.53, +1.96, +1.22%) agreement to acquire a nationwide wireless spectrum portfolio from Grain Management.

On the data front, the preliminary October University of Michigan Consumer Sentiment Index fell to 46.3 (Briefing.com consensus 48.1) from September's final reading of 48.1.

The S&P 500 futures currently trade 24 points above fair value.

Asian markets finished mixed on Friday, with easing oil prices and bond yields helping equities recover from early weakness while investors continued to scrutinize valuations across the AI trade. Japan's Nikkei 225 finished virtually flat after clawing back most of its losses following reports that OpenAI expects annualized revenue to reach at least $70 bln by year-end, although SoftBank Group (-4%), Murata Manufacturing (-4%), and Kioxia Holdings (-2%) remained under pressure. China's Shanghai Composite was little changed, while the Shenzhen Component gained 0.2% as attention shifted toward China-EU trade discussions and lingering tensions surrounding rare earths and critical minerals. Chinese technology shares were mixed, with SMIC (+1%) and Cambricon Technologies (+1%) advancing while Eoptolink Technology (-2%), NAURA Technology (-1%), and Zhongji Innolight (-1%) declined. Hong Kong's Hang Seng Index rallied 1.8%, snapping a two-session losing streak, with Xiaomi (+10%) surging after strong vehicle pre-orders while Kuaishou (+6%), Tencent (+3%), AIA (+3%), and SMIC (+2%) also gained. South Korean markets were closed for Hangul Day, while investors now look toward China's September inflation and trade data following the Golden Week holiday.

• In economic data:
  • Japan's August Household Spending fell 3.1% yr/yr (expected -3.5%; prior -3.6%) and rose 0.1% m/m (expected 0.5%; prior 0.5%).
  • Japan's September Machine Tool Orders increased 60.4% yr/yr (prior 64.7%).

European markets are rebounding this morning, with easing geopolitical concerns pulling oil prices and bond yields lower after President Trump ruled out a U.S. attack on Iran before the November midterm elections and pointed to progress in talks with Tehran. Germany's DAX rises 1.0% after touching a two-month low a day earlier, with Zalando (+3%), SAP (+3%), and Heidelberg Materials (+3%) among the gainers, while Deutsche Telekom (-6%) tumbles on concerns about increased competition for T-Mobile US following SpaceX's spectrum acquisition. France's CAC 40 gains 0.7%, snapping back from two sessions of losses as easing pressure on yields also prompts markets to pare expectations for ECB rate hikes, although concerns surrounding France's fiscal and political outlook remain in focus. London's FTSE 100 advances 0.9%, led by Sage Group (+4%), RELX (+3%), and miners Antofagasta (+3%) and Fresnillo (+3%), while Tesco (+3%) extends its post-earnings advance following positive analyst reactions to its improved outlook. The broader improvement in risk sentiment lifts the STOXX Europe 600 by 0.8%, while Italy's FTSE MIB (+0.8%) and Spain's IBEX 35 (+0.8%) also advance. Italian industrial production fell a weaker-than-expected 1.3% m/m in August, reversing the prior month's increase.

• In economic data:
  • Italy's August Industrial Production fell 1.3% m/m (expected 0.0%; prior 0.6%) and was unchanged yr/yr (prior -0.1%).
  • Switzerland's September SECO Consumer Climate fell to -36 (expected -32; prior -33).

The S&P 500 futures currently trade 27 points above fair value.

Lumentum (LITE 1,116.06, +67.46, +6.4%) trades higher in the premarket after the company's CEO says the company's optical components are "completely sold out", according to Bloomberg.

Equity futures point to a higher open this morning, supported by a rebound in semiconductor and other AI-related stocks following yesterday's sharp selloff. A Bloomberg report indicating that OpenAI's annualized revenue is still expected to meet or exceed $70 billion has provided some relief after a Financial Times report yesterday suggested the figure could fall closer to $50 billion, raising concerns about the outlook for AI spending.

Modestly lower crude oil prices and easing sovereign bond yields are also providing a more favorable backdrop for equities, helping sentiment recover following yesterday's technology-led decline.

The S&P 500 and DJIA enter Friday's session with modest week-to-date gains, while the Nasdaq Composite is essentially flat for the week amid weakness in technology stocks.

Still, there are a lot of moving parts in the energy market. Hurricane Isaias is expected to make landfall on the Gulf Coast this weekend as a Category 2 storm, according to the Weather Channel, and the preliminary October University of Michigan Consumer Sentiment Index is due at 10:00 a.m. ET.

In corporate news:

• Humana (HUM 443.00, +55.88, +14.43%) said 95% of its Medicare Advantage members are enrolled in plans rated four stars or better for 2027, including its pivotal 2.4 million-member contract, restoring eligibility for 2028 CMS bonuses.
• Apple (AAPL 332.80, -7.62, -2.24%) told suppliers to reduce production of iPhone 18 Pro components due to weaker-than-expected demand following price increases, according to Nikkei.
• American Express (AXP 303.00, -5.10, -1.66%) agreed to pay a $350 million penalty to resolve regulatory reviews.
• Delta Air Lines (DAL 80.86, -1.28, -1.56%) missed the earnings consensus but beat revenue expectations, issued in-line fourth-quarter EPS guidance and guided revenue above consensus. Its full-year EPS midpoint was below consensus, though the CEO said bookings have not slowed.
• SpaceX (SPCX 167.20, +6.63, +4.13%) agreed to acquire low-band spectrum licenses, prompting weakness in AT&T (T 22.92, -1.96, -7.88%), Verizon (VZ 42.82, -3.53, -7.62%), and T-Mobile US (TMUS 158.43, -12.88, -7.52%).

Reviewing overnight developments:

According to Nikkei, Asian markets finished mixed as easing oil prices and bond yields helped equities recover from early weakness, while investors continued to scrutinize AI-related valuations.

In news:

• Nikkei reported that updated expectations for OpenAI's annualized revenue helped Japanese equities recover much of their early weakness, although several technology names remained under pressure.
• Nikkei said attention in China remained on China-EU trade discussions and tensions involving rare earths and critical minerals. South Korean markets were closed for Hangul Day.

In economic data:

• Japan's August Household Spending -3.1% yr/yr (expected -3.5%; prior -3.6%) and 0.1% m/m (expected 0.5%; prior 0.5%); September Machine Tool Orders 60.4% yr/yr (prior 64.7%)

Equity Markets:

• Japan's Nikkei: flat
• Hong Kong's Hang Seng: +1.8%
• China's Shanghai Composite: 0.1%
• India's Sensex: +1.2%
• South Korea's Kospi: closed for holiday
• Australia's All Ordinaries: +0.6%

European markets are rebounding as geopolitical concerns ease, pulling oil prices and bond yields lower after President Trump ruled out a U.S. attack on Iran before the November midterm elections and cited progress in talks with Tehran.

In news:

• Lower yields have prompted markets to pare expectations for ECB rate hikes, although France's fiscal and political outlook remains in focus.
• Technology, materials, and mining shares are among the areas showing strength.

In economic data:

• Italy's August Industrial Production -1.3% m/m (expected 0.0%; prior 0.6%) and 0.0% yr/yr (prior -0.1%)
• Switzerland's September SECO Consumer Climate -36 (expected -32; prior -33)

Equity Markets:

• STOXX Europe 600 : +0.8%
• Germany's DAX : +1.0%
• U.K.'s FTSE 100 : +0.9%
• France's CAC 40 : +0.7%
• Italy's FTSE MIB : +0.8%
• Spain's IBEX 35 : +0.8%

[BRIEFING.COM] Thursday's session ended with a notable divergence between technology stocks and the broader market, as a sharp semiconductor selloff kept the S&P 500 (-0.5%) and Nasdaq Composite (-1.3%) firmly lower despite improving participation elsewhere. The DJIA (+0.1%) finished slightly higher, while the Russell 2000 (flat) recovered substantially from earlier losses and the S&P Mid Cap 400 (+0.4%) outperformed.

Technology stocks were the central source of weakness, particularly after a Financial Times report that OpenAI's annualized revenue is running $20 billion below earlier estimates raised fresh questions about the pace of revenue growth supporting the AI infrastructure buildout. The report intensified selling across semiconductor and other AI-related stocks, leaving the PHLX Semiconductor Index down 3.4% and the information technology sector (-1.8%) at the bottom of the sector rankings. NVIDIA (NVDA 230.48, -6.99, -2.94%) was a notable mega-cap laggard, while b302.38, -32.18, -9.62%) and Corning (GLW 152.81, -10.44, -6.40%) were among the hardest-hit S&P 500 components.

Mega-cap performance was mixed overall, although the Vanguard Mega Cap Growth ETF fell 1.3%, underscoring the pressure on several of the market's largest growth names. Amazon (AMZN 254.06, -5.86, -2.25%) was another notable laggard, contributing to a 0.5% decline in the consumer discretionary sector.

Elsewhere in the sector, Chipotle Mexican Grill (CMG 32.65, +1.88, +6.10%) rallied following a Financial Times report that Starbucks (SBUX 93.21, -0.37, -0.40%) had worked with advisers on a potential takeover of the restaurant chain.

The day's weakness initially extended well beyond technology stocks as another surge in crude oil prices and elevated Treasury yields weighed on sentiment. WTI crude climbed more than 5.0% amid reports of escalating attacks on tankers in the Strait of Hormuz and earlier comments from President Trump suggesting that reaching a deal with Iran was not a priority. Oil subsequently retreated from its highs after President Trump said via Truth Social that the U.S. was engaged in productive discussions with Iran and would not launch additional attacks before the November 3 midterm elections. WTI crude ultimately settled $3.25 higher (+3.7%) at $91.47 per barrel, still a sizable increase but well below its intraday peak.

Treasury yields also reversed their earlier climb, providing some relief to the broader market. The 10-year note yield reached 5.35% before retreating as Treasuries benefited from the president's comments and solid demand at a $22 billion 30-year bond reopening. The pullback in yields helped stabilize several rate-sensitive areas, although it did little to arrest the selling in semiconductor stocks.

The improvement became increasingly evident beneath the surface as the session progressed. Six S&P 500 sectors finished higher, led by the energy sector (+2.9%), which benefited from the jump in crude oil prices. The consumer staples sector (+2.1%) was another standout as investors favored defensive stocks, with Coca-Cola (KO 87.77, +1.95, +2.27%) advancing alongside PepsiCo (PEP 128.88, +5.15, +4.16%), which reported better-than-expected quarterly earnings and revenue but lowered its FY26 earnings outlook.

The financials sector (+0.9%) also posted a solid gain, providing important support for the DJIA. Meanwhile, the health care sector (-0.4%) recovered considerably from its midday lows after biotechnology stocks and major pharmaceutical names faced pronounced selling pressure earlier in the session.

Market breadth illustrated the extent of the afternoon improvement. Advancers ultimately outnumbered decliners by roughly 8-to-5 on the NYSE after trailing by nearly 2-to-1 earlier in the session. Participation remained firmly negative on the Nasdaq, however, reflecting the persistent weakness across technology and semiconductor stocks.

The broader recovery was not enough to rescue the major averages, with the Nasdaq's 1.3% decline erasing its week-to-date gain. Still, the relative strength in small- and mid-cap stocks, improving breadth on the NYSE, and gains across six sectors suggested that the day's losses were increasingly concentrated in technology and AI-related names rather than reflecting uniform selling across the market.

U.S. Treasuries finished Thursday with gains across the curve after recovering from a poor start. Treasuries turned positive shortly after comments from President Trump indicating that no additional strikes on Iran were planned ahead of the midterm elections, with gains extending following a strong 30-year bond auction that built on yesterday's well-received 10-year note reopening. The 2-year note yield settled down one basis point to 4.76%, and the 10-year note yield settled down five basis points to 5.23%.

• Nasdaq Composite: +17.0% YTD
• S&P 500: +13.4% YTD
• Russell 2000: +12.6% YTD
• S&P Mid Cap 400: +10.4% YTD
• DJIA: +6.6% YTD

Reviewing today's data:

• For the week ending October 3, initial claims decreased 2,000 to 197,000 (Brieifng.com consensus: 200,000). Continuing claims for the week ending September 26 were up 17,000 to 1.716 million.
  
  • The key takeaway from the report is a broken (but pleasant-sounding) record: layoff activity continues to run at low levels that reflect a solid demand environment.
• Wholesale Inventories were up 0.5% month-over-month in August (Briefing.com consensus 0.7%) after increasing a revised 1.4% (from 1.3%) in July.