[BRIEFING.COM] Stocks are off to their best start of the week, supported by broad gains amid relative stability in oil prices and Treasury yields this morning. Crude oil is up $0.50 (+0.5%) to $90.73 per barrel, though it remains below its overnight high near $92 per barrel. Similarly, the 10-year note yield is unchanged at 4.80%, off its overnight high of 4.82%.

The S&P 500 (+0.6%), Nasdaq Composite (+0.5%), and DJIA (+0.6%) sit at session highs just before midday, as do the smaller-cap Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.6%). Strength has broadened considerably since the open, with advancers outpacing decliners by a roughly 2-to-1 ratio on the NYSE and a roughly 5-to-3 margin on the Nasdaq.

Eight S&P 500 sectors trade higher, with steel and other metals names leading the materials sector (+1.6%) to the top of the sector standings. The communication services sector (+1.5%) holds a similar gain, supported by broad strength and leadership from its mega-cap components.

The Vanguard Mega Cap Growth ETF is up 0.5%, though the S&P 500 (+0.6%) and S&P 500 Equal Weighted Index (+0.5%) sport similar gains, reflecting a broader rebound effort across equities today.

[BRIEFING.COM] The major averages are charting session highs as stocks continue to improve from a mixed open.

Dell (DELL 440.18, +15.18, +3.57%) is firmly higher after the company delivered an exceptionally strong quarter, with the combination of a massive EPS beat, record infrastructure results, and an unusually strong Q3 outlook leaving investors with little to criticize. The most important takeaway is that the AI opportunity continues to expand at a pace that is exceeding expectations. The increase in FY27 AI-Optimized Servers revenue guidance to $74 billion from $60 billion is particularly significant because it suggests management is becoming more confident that the current AI infrastructure spending cycle will remain durable. Importantly, the strength is no longer confined to AI servers. Traditional Servers and Networking grew 122%, while Storage increased 26%, indicating that broader data-center modernization is gaining traction as customers upgrade infrastructure to support both AI and conventional workloads.

While the stock still holds a solid gain, it has surrounded the bulk of its earlier strength. Similarly, peer HP Inc. (HPQ 31.36, +0.04, +0.11%) opened firmly higher in sympathy to Dell's earnings but now trades near its flat line.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.4%), and DJIA (+0.7%) are moving firmly higher as strength broadens, with tech and mega-cap stocks starting to get in on the early gains.

The Vanguard Mega Cap Growth ETF (+0.4%) has moved into positive territory alongside the information technology sector (+0.2%) and PHLX Semiconductor Index (+0.4%).

Meanwhile, the communication services sector (+1.5%) holds a wider gain as Meta Platforms (META 595.11, +16.57, +2.86%) is a "Magnificent Seven" standout while Charter Comm (CHTR 153.08, +6.89, +4.71%) and Paramount Skydance (PSKY 11.03, +0.48, +4.55%) are among the top-performing S&P 500 components.

Factory orders increased 0.9% month-over-month in July (Briefing.com consensus: 0.6%) following an upwardly revised 0.2% decline (from -0.3%) in June. Excluding transportation, factory orders increased 0.6% on the heels of a 0.1% decline in June. Shipments of manufactured goods increased 0.8% after being flat in June.

The key takeaway from the report is that factory orders were running at a good clip in July for durable and nondurable goods. Although business spending was flat, that was likely just a normal slowdown from the solid increases registered in May and June.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.5%) are mostly higher as stocks look to recover from two lower finishes to start the week.

Crude oil and U.S. Treasury yields have both come down from their overnight highs, providing the market with some relief this morning. WTI crude oil is down $0.71 (-0.9%) to $89.53 per barrel, while the 10-year note yield is down one basis point to 4.79%. As a result, the Russell 2000 (+0.7%) is outperforming the major averages so far. Action is mixed, with five S&P 500 sectors holding gains.

The health care sector (+1.3%) is a standout as pharmaceutical stocks such as Johnson & Johnson (JNJ 277.49, +6.30, +2.32%) trade higher, while the materials sector (+1.3%) holds a similar gain, with steel names Steel Dynamics (STLD 242.70, +8.62, +3.68%) and Nucor (NUE 259.62, +7.70, +3.06%) among the top-performing S&P 500 components this morning.

Dell (DELL 450.24, +25.24, +5.94%) is the best-performing S&P 500 component after an impressive beat-and-raise earnings report, though the information technology sector (-0.1%) moves slightly lower as software stocks lag after Palo Alto Networks (PANW 328.42, -33.67, -9.30%) earnings, while semiconductors are also under pressure.

Elsewhere, the financials sector (+0.7%) holds a decent gain, with several of its major banking components contributing to the outperformance of the DJIA.

Just released, factory orders increased 0.9% month-over-month in July (Briefing.com consensus: 0.6%) following an upwardly revised 0.2% decline (from -0.3%) in June.

Futures point to a mixed open as stocks have improved in premarket trading, with both the 10-year note yield and crude oil prices pulling back from their overnight highs. The easing in both has helped alleviate some of the pressure that weighed on equities earlier this morning. Still, elevated yields and oil prices remain key headwinds following yesterday's broad market retreat.

The S&P 500 futures continue to move modestly lower as overseas weakness and rising sovereign yields remain in focus.

Equity indices in the Asia-Pacific region had a weak showing on Wednesday with South Korea's Kospi (-4.0%) falling toward last week's low. South Korea and Japan will deepen their cooperation on energy, critical minerals, and carbon rules. Continued weakness in Japanese debt sent JGB yields on all tenors to fresh highs for the year, though the long end finished slightly higher. Treasury Secretary Bessent said during yesterday's G20 meeting of finance ministers and central bankers that China continues to flood the world with cheap exports due to overcapacity. The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.75%, as expected.

• In economic data:
  • The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.75%, as expected.
  • South Korea's August CPI increased 0.2% month-over-month (expected 0.3%; last -0.2%) and 3.1% year-over-year (expected 3.2%; last 2.8%).
  • Australia's Q2 GDP increased 0.4% quarter-over-quarter (expected 0.3%; last 0.3%) and 2.1% year-over-year (expected 1.8%; last 2.5%).
  • Australia's August AIG Construction Index rose to -6.9 from -40.8.
  • Australia's August AIG Manufacturing Index rose to -16.6 from -19.3.
  • New Zealand's July Building Consents decreased 4.3% month-over-month after declining 3.7% in June.

---Equity Markets---

• Japan's Nikkei: -3.0%
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: -1.0%
• India's Sensex: -0.5%
• South Korea's Kospi: -4.0%
• Australia's ASX All Ordinaries: -1.1%

Major European indices trade in the red while regional sovereign debt also trades lower with 10-yr yields in Germany, France, and the U.K. hitting fresh 2026 highs. Discount carrier Ryanair lowered its passenger traffic target for fiscal 2027 due to rising fuel prices. Intercontinental Hotels outperforms after an upgrade. European Central Bank policymaker Nagel acknowledged that the market is all but certain about a rate hike later this month.

• In economic data:
  • France's July budget deficit widened to EUR145.9 billion from EUR106.8 billion.
  • Italy's July PPI increased 2.4% month-over-month (last 0.0%) and 7.8% year-over-year (last 5.8%).
  • Spain's August unemployment increased by 44,400 (expected 15,400; last 19,500).

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -0.4%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: +0.1%

The S&P 500 futures currently trade one point above fair value.

The August ADP Employment Change Report showed private payrolls increasing by 38,000 (Briefing.com consensus: 47,000), while the prior month's increase was revised to 46,000 from 44,000.

Goods-producing industries shed 10,000 jobs, while service-providing industries added 48,000. According to ADP Pay Insights, base pay for private-sector workers increased 3.2% year-over-year, while gross pay rose 4.7%. Base pay increased 3.0% for job-stayers and 4.7% for job-changers, while gross pay rose 4.4% and 7.3%, respectively.

Equity futures point to a mostly lower opening this morning following Tuesday's relatively sharp retreat. A surge in oil prices and pronounced weakness across technology stocks weighed heavily on the broader market, while strength in energy and defensive stocks provided only a partial offset.

Crude oil is easing modestly from yesterday's highs, with WTI back below $90 per barrel, but elevated U.S. Treasury yields are adding another headwind for equities and contributing to the cautious tone ahead of the open.

On the U.S. data front:

• 08/29 MBA Mortgage Applications Index 0.8%; prior -1.0%

Today's remaining economic calendar:

• 8:15 AM ET: August ADP Employment Change; Briefing.com consensus 47K; prior 44K
• 10:00 AM ET: July Factory Orders; Briefing.com consensus 0.6%; prior -0.3%
• 10:30 AM ET: 08/29 EIA Crude Oil Inventories; prior +4.41M
• 2:00 PM ET: September Beige Book

In corporate news:

• GitLab (GTLB 54.85, +9.76, +21.65%) beat quarterly earnings and revenue expectations and issued guidance for the September quarter.
• Dell Technologies (DELL 460.09, +35.41, +8.34%) beat quarterly earnings and revenue expectations, supported by record Infrastructure Solutions Group revenue, and guided fiscal third-quarter and full-year earnings and revenue above consensus.
• Palo Alto Networks (PANW 352.68, -9.41, -2.6%) beat EPS expectations by $0.04, beat revenue expectations, guided Q1 EPS above consensus with revenues above consensus, and guided FY27 EPS above expectations with revenues above consenusus.

Reviewing overnight developments:

Asia-Pacific equity markets had a weak session, while continued selling in Japanese government debt pushed yields across the curve to fresh highs for the year. Japan's Nikkei: -3.0%, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: -1.0%, India's Sensex: -0.5%, South Korea's Kospi: -4.0%, Australia's ASX All Ordinaries: -1.1%.

In news:

• South Korea and Japan agreed to deepen cooperation on energy, critical minerals, and carbon rules.
• Treasury Secretary Bessent said China continues to flood global markets with inexpensive exports due to overcapacity.
• The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.75%, as expected.

In economic data:

• South Korea's August CPI 0.2% m/m (expected 0.3%; last -0.2%); 3.1% yr/yr (expected 3.2%; last 2.8%)
• Australia's Q2 GDP 0.4% qtr/qtr (expected 0.3%; last 0.3%); 2.1% yr/yr (expected 1.8%; last 2.5%). August AIG Construction Index -6.9 (last -40.8) and AIG Manufacturing Index -16.6 (last -19.3)
• New Zealand's July Building Consents -4.3% m/m (last -3.7%)

Major European markets trade lower alongside weakness in regional sovereign debt, with benchmark yields in Germany, France, and the U.K. reaching fresh 2026 highs. STOXX Europe 600: -0.7%, Germany's DAX: -0.6%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.5%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: UNCH.

In news:

• European Central Bank policymaker Nagel acknowledged that markets are nearly certain of a rate hike later this month.

In economic data:

• France's July budget deficit EUR145.9 bln (last deficit of EUR106.8 bln)
• Italy's July PPI 2.4% m/m (last 0.0%); 7.8% yr/yr (last 5.8%)
• Spain's August Unemployment Change 44,400 (expected 15,400; last 19,500)

[BRIEFING.COM] The major averages finished broadly lower on Tuesday as a sharp surge in oil prices, escalating U.S.-Iran hostilities, and weakness across technology and other growth stocks weighed on the market. The S&P 500 (-0.7%), Nasdaq Composite (-1.0%), and DJIA (-0.8%) all ended with sizable losses, while the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.1%) also struggled.

Crude oil was the central influence on today's action, extending its intraday surge to settle $4.45 higher (+5.2%) at $90.28 per barrel. Oil prices had already been sharply higher during the morning before the geopolitical situation escalated around midday, when U.S. Central Command confirmed that U.S. forces had begun striking Islamic Revolutionary Guard Corps targets in Iran following recent attempted attacks against commercial shipping in the Strait of Hormuz and American service members deployed to the region.

President Trump later said via Truth Social that the U.S. was conducting "large and powerful" strikes against Iranian targets near the Strait of Hormuz in retaliation for Iran's attack on Jordan. He also warned that any Iranian retaliation would be met with strikes at a "much harder and higher level" and suggested an even larger attack remains an option. Iran issued threats of retaliation of its own, with Axios reporter Barak Ravid quoting the IRGC as saying, "A severe punishment awaits the aggressors. The United States will regret its latest attacks."

The escalation erased an earlier attempt by the major averages to recover from their opening losses and kept pressure on equities through the afternoon. Higher Treasury yields provided an additional headwind, particularly for technology and other growth-oriented stocks, while increased expectations for a rate hike at this month's FOMC meeting also remained in focus.

The information technology sector (-1.0%) finished among the weakest performers as both semiconductor and software stocks came under pressure. The PHLX Semiconductor Index fell 2.1%, while the iShares Expanded Tech-Software Sector ETF dropped 3.5%, with packaged software names among the day's notable laggards. Apple (AAPL 325.13, +8.28, +2.61%) was an important exception, advancing as John Ternus officially took over as CEO and helping offset some of the broader technology weakness.

Several technology names also faced pronounced selling ahead of earnings reports after the close. Dell (DELL 424.82, -31.18, -6.84%) retreated sharply ahead of its Q2 report, with expectations elevated following the company's strong Q1 results and outlook, while Palo Alto Networks (PANW 362.09, -20.04, -5.24%) also lagged ahead of its fiscal Q4 report.

The consumer discretionary sector (-1.9%) finished at the bottom of the sector standings amid broad pressure on oil- and rate-sensitive names. Amazon (AMZN 254.92, -4.85, -1.87%) and Tesla (TSLA 356.09, -11.86, -3.22%) were notable mega-cap laggards, contributing to the broader weakness across growth stocks. The Vanguard Mega Cap Growth ETF finished 1.0% lower.

The industrials sector (-1.4%) was another major source of weakness as the surge in oil prices pressured many of its components. Axon (AXON 518.30, -48.26, -8.52%) finished as the worst-performing S&P 500 component. The materials (-1.4%) and financials (-0.9%) sectors also posted sizable losses as cyclical stocks joined growth names in underperforming.

The other side of today's rotation was evident across energy and defensive areas of the market. The energy sector (+1.5%) finished comfortably higher as crude oil surged above $90 per barrel, while the utilities (+0.7%), health care (+0.6%), and consumer staples (+0.2%) sectors also ended in positive territory as investors sought more defensive positions.

Edison (EIX 58.79, +4.81, +8.91%) and PG&E (PCG 14.06, +0.78, +5.92%) were notable standouts in the utilities sector after KCRA News reporter Ashley Zavala reported that the California Assembly will kill the wildfire liability plan agreed to by lawmakers and Gov. Newsom just days ago. The proposed plan had been a source of concern for PG&E and Southern California Edison because it would not have allowed the utilities to shift future wildfire costs to insurance.

Meanwhile, Moderna (MRNA 154.27, +13.93, +9.93%) continued to experience sharp swings following its recent surge on positive melanoma-vaccine results.

Ultimately, Tuesday's session was dominated by the sharp rise in crude oil and escalating U.S.-Iran hostilities. The midday U.S. strikes and subsequent threats of further escalation from both sides pushed crude above $90 per barrel and reinforced the pressure already facing equities from elevated Treasury yields. Energy and defensive sectors benefited from the resulting rotation, but broad weakness across technology, cyclical stocks, and smaller companies left the major averages firmly lower to begin what has historically been one of the weakest months for the stock market.

U.S. Treasuries tried to fight off early weakness on Tuesday but could not escape selling pressure that sent yields on 10-year note and shorter tenors to fresh highs for the year. The 2-year note yield settled up four basis points to 4.39%, and the 10-year note yield settled up four basis points to 4.80%. 

• Russell 2000: +17.7% YTD
• S&P Mid Cap 400: +12.6% YTD
• Nasdaq Composite: +12.3% YTD
• S&P 500: +11.5% YTD
• DJIA: +9.8% YTD

Reviewing today's data:

• August S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 53.2
• July Construction Spending -0.5% (Briefing.com consensus 0.2%); Prior was revised to 0.0% from -0.1%
  • The key takeaway from the report is the weakness in the residential sector and particularly in new single-family construction, which is being tested by higher financing costs.
• August ISM Manufacturing Index 54.6% (Briefing.com consensus 55.3%); Prior 55.6%
  • The key takeaway from the report is that slower growth was indicated across most report categories. The notable exception was prices, which increased at the same pace as the prior month.
• July JOLTs - Job Openings 7.271 mln (Briefing.com consensus 7.390 mln); Prior was revised to 7.182 mln from 7.359 ml