[BRIEFING.COM] Stocks remain broadly higher just after midday, with the S&P 500 (+0.9%), Nasdaq Composite (+1.3%), and DJIA (+1.1%) just off their session highs.

While the consumer staples sector (+0.3%) has managed to surface above its baseline, food stocks remain one of the weaker groups today. Tyson Foods (TSN 51.98, -3.82, -6.85%) is sharply lower after lowering its FY26 revenue guidance, while The Campbell's Company (CPB 21.50, -2.28, -9.61%) (which is no longer an S&P 500 component) trades even lower after its Q4 (July) earnings report saw EPS and revenues in-line with expectations, though FY27 guidance was below expectations.

Kraft Heinz (KHC 25.39, -0.87, -3.30%) and J.M. Smucker (SJM 128.73, -2.71, -2.06%) are among the other related names that trade lower.

[BRIEFING.COM] The major averages continue to widen their gains at midday.

The financials sector (+1.4%) remains one of several particularly strong pockets of the market, with several major banking names such as Goldman Sachs (GS 1038.72, +34.30, +3.41%)posting solid gains.

However, Robinhood Markets (HOOD 123.23, +16.24, +15.18%) and Coinbase Global (COIN 194.54, +19.58, +11.19%) surge even higher, leading all S&P 500 names as Bitcoin rises nearly 5% today, crossing the $80,000 mark. Coinbase CEO Brian Armstrong has recently expressed confidence that the CLARITY Act, which will define jurisdiction for the SEC over digital assets, will pass the Senate closure vote on September 15.

[BRIEFING.COM] Stocks are building upon yesterday's rebound, with the S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+1.0%) sitting at session highs just before midday and moving into positive week-to-date territory.

Similar to yesterday's session, some relief across U.S. Treasuries contributes to the broad advance, with the 10-year note yield down five basis points to 4.75%. Yields moved lower this morning in response to commentary from Fed Governor Christopher Waller, which the market took as dovish with regard to recent data showing signs of disinflation.

Gains are broad, with nine S&P 500 sectors trading higher. The communication services (+1.8%) and consumer discretionary (+1.7%) sectors lead the advance amid particular strength across mega-cap stocks, with the Vanguard Mega Cap Growth ETF up 1.6%.

The information technology sector (+1.1%) is also at session highs, as a strong showing from software names combines with a semiconductor group that has considerably narrowed its losses since the open. The PHLX Semiconductor Index was down over 2% as Broadcom (AVGO 348.12, -19.12, -5.21%) retreats after earnings, but is now down just 0.4%.

[BRIEFING.COM] The major averages are maintaining their solid opening gains on relatively broad strength today.

Despite the relative outperformance of mega-cap tech stocks today, semidoncudtors continue to be a laggard both for the session and the week. The PHLX Semiconductor Index is down 1.2% as Broadcom (AVGO 345.89, -21.35, -5.81%) trades sharply lower after its earnings release. The stock is down despite reporting upside results for EPS and revenue in Q3 (Jul), as investors appear to have been looking for an even larger AI-driven beat and a more aggressive Q4 (Oct) outlook.

Broadcom's comments around FY27 and FY28 suggest that hyperscaler demand remains well ahead of its ability to supply the market. The company's exposure is also becoming increasingly diversified across Anthropic, Google, OpenAI, and Meta, reducing reliance on any single AI customer. At the same time, the quarter highlights an emerging margin trade-off. As AI accelerators and their increasingly large memory content represent a greater proportion of revenue, gross margin is expected to decline. The overall Q4 forecast needed to be substantially above consensus to generate a positive reaction. The near-term pullback therefore appears more related to elevated expectations than to any deterioration in Broadcom's AI opportunity.

[BRIEFING.COM] Stocks continue to trade mostly higher this morning, with the S&P 500 (+0.5%), Nasdaq Composite (+0.9%), and DJIA (+0.6%) holding on to solid gains. The Nasdaq Composite is now in positive week-to-date territory, while the S&P 500 and DJIA hold just modest losses for the week.

The ISM Services PMI increased to 55.4% in August (Briefing.com consensus: 54.1%) from 54.1% in July. The dividing line between expansion and contraction is 50.0%, so the August reading reflects services sector activity growing at a faster pace than the prior month.

The key takeaway from the report is that it shows services organizations haven't seen any relief in the prices they are paying for materials and services. That invites the risk of pass-through to customers and sustained inflation issues.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.6%) are off to another solid start this morning as Treasury yields continue to ease. The 10-year note yield is currently down five basis points to 4.75%.

Additionally, expectations for a September rate hike have eased following comments from Fed Governor Waller. While Waller acknowledged that inflation remains meaningfully above the Fed's 2.00% target and left open the possibility of another rate hike if progress stalls, markets appear more focused on his view that recent data have shown encouraging signs of disinflation. The CME FedWatch Tool now assigns a 49.6% probability to the Fed leaving rates unchanged at its September meeting, up from 36.8% yesterday.

Eight S&P 500 sectors trade higher, with some solid gains across mega-cap stocks pushing the communication services (+1.5%) and consumer discretionary (+1.2%) sectors to the top of the leaderboard. Meta Platforms (META 612.59, +19.74, +3.33%) and Tesla (TSLA 373.10, +16.09, +4.51%) are among the standouts, and the Vanguard Mega Cap Growth ETF is up 1.0%.

Meanwhile, the information technology sector (+0.3%) holds a narrower gain as Broadcom (AVGO 344.23, -23.01, -6.26%) leads the semiconductor group lower after its earnings report. The PHLX Semiconductor Index is down 2.1%.

However, software stocks are bouncing back from a sharp retreat yesterday, with an impressive earnings beat from Snowflake (SNOW 374.73, +68.89, +22.52%) contributing to strength in the iShares GS Software ETF (IGV 106.88, +3.46, +3.35%).

The defensive consumer staples (-0.5%) and health care (-0.4%) sectors trade lower, with Tyson Foods (TSN 52.89, -2.92, -5.23%) falling sharply after lowering its FY26 revenue guidance, while the materials sector (-0.5%) also trades lower.

On the data front, the final reading of the August S&P Global U.S. Services PMI registered at 56.5, down from the previous reading of 56.8.

The ISM Services PMI edged up to 55.4% in August (Briefing.com consensus: 54.1%) from 54.1% in July.

Equity futures now point to a modestly higher open following this morning's slate of economic data and some commentary on monetary policy. Fed Governor Waller (FOMC voter) offered a somewhat conditional view of the policy outlook, acknowledging that inflation remains well above the Fed's 2.00% target while leaving the door open to either a rate hike or an extended pause. Waller indicated that a lack of further progress in the August inflation data could strengthen the case for another increase. Still, markets appear more focused on his observation that recent data have shown some encouraging signs of disinflation, which, if sustained, would favor leaving rates unchanged at the September FOMC meeting.

The CME FedWatch tool now shows a 49.6% probability of the Fed leaving rates unchanged at the September FOMC meeting, up from just 36.8% yesterday.

The trade deficit widened to $88.6 billion in July (Briefing.com consensus: -$89.6 billion) from an upwardly revised -$71.2 billion (from -$73.3 billion) in June, as imports were $10.8 billion more than June imports and exports were $6.6 billion less than June exports.

The key takeaway from the report is that the widening deficit will be a drag on Q3 GDP growth estimates.Q2 productivity was 1.4%, unchanged from the advance estimate and as expected.

Unit labor costs, though, were revised down to 1.2% (Briefing.com consensus: 1.3%) from 1.3% in the advance estimate.

The key takeaway from the report is that the downtick in unit labor costs from the advance estimate helped keep inflation concerns in check.

Initial jobless claims for the week ending August 29 increased by 2,000 to 206,000 (Briefing.com consensus: 205,000). Continuing jobless claims for the week ending August 22 increased by 8,000 to 1.779 million.

The key takeaway from the report is that the low level of initial jobless claims continues to connote a low-firing environment.

The S&P 500 futures currently trade 16 points above fair value

Equity indices in the Asia-Pacific region ended Thursday on a mixed note with most markets staying inside a narrow range. The yen has rallied back to its September high against the dollar after Treasury Secretary Bessent said yesterday that he knows what Japan is planning on doing, fueling speculation that he is foreshadowing a rate hike from the Bank of Japan. Separately, the Japanese government is reportedly looking to guide 40% of household assets into equities, investment trusts, and bonds by 2040, up from the current 25%. China Securities Journal expects the yuan to continue appreciating moderately this year.

• In economic data:
  • China's August RatingDog Services PMI rose to 51.4 (expected 50.6; last 50.4).
  • Japan's August Services PMI rose to 52.5 (expected 52.3; last 51.2).
  • Hong Kong's August Manufacturing PMI fell to 49.5 (last 51.0).
  • Australia's August Services PMI slipped to 53.2 (expected 52.9; last 53.6).
  • Australia's July trade surplus narrowed to AUD1.923 bln (expected surplus of AUD1.400 bln; last surplus of AUD2.341 bln).
  • Australia's July imports fell 2.5% m/m (last -0.7%), while exports fell 3.3% m/m (last 9.1%).
  • New Zealand's Q2 Terms of Trade Index fell 9.0% qtr/qtr (expected -2.1%; last -1.9%).
  • India's August Services PMI rose to 54.1 (expected 54.5; last 53.3).

---Equity Markets---

• Japan's Nikkei: -0.2%
• Hong Kong's Hang Seng: -0.4%
• China's Shanghai Composite: UNCH
• India's Sensex: -0.6%
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: +0.4%

Major European indices trade near their flat lines. Germany's Chancellor Merz will meet with ECB officials ahead of next week's policy meeting, which is expected to result in a rate hike. August Services PMI readings from the region showed a deeper-than-expected contraction in France (48.0; expected 48.4) and Germany (49.7; prior 49.8) while other economies reported continued growth. Germany's IfW raised the domestic growth forecast for 2026 to 1.3% from 0.8% while the ifo Institute raised its domestic growth forecast to 1.4% from 0.8%.

• In economic data:
  • The Eurozone's August Services PMI slipped to 51.6 (expected 51.7; last 51.7).
  • The Eurozone's July PPI increased 1.6% m/m (expected 1.2%; last -0.3%) and 5.8% yr/yr (last 4.6%).
  • Germany's August Services PMI slipped to 49.7 (expected 48.5; last 49.8).
  • The U.K.'s August Services PMI rose to 52.5 (expected 52.8; last 52.1).
  • France's August Services PMI fell to 48.0 (expected 48.4; last 49.6).
  • Italy's August Services PMI rose to 55.2 (expected 53.6; last 52.5).
  • Spain's August Services PMI slipped to 57.8 (expected 59.0; last 58.3).
  • Swiss Q2 GDP increased 1.9% qtr/qtr (expected 1.5%; last 0.6%) and 2.8% yr/yr (last 0.5%).
  • Swiss August CPI increased 0.4% m/m (expected 0.0%; last -0.1%) and 0.8% yr/yr (expected 0.5%; last 0.4%).

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: +0.6%
• Spain's IBEX 35: +0.9%

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

Just released, the trade deficit widened to $88.6 billion in July (Briefing.com consensus: -$89.6 billion) from a revised -$71.2 billion (from -$73.3 billion) in June.

Nonfarm business sector labor productivity increased 1.4% in the second quarter (Briefing.com consensus: 1.4%), unchanged from the preliminary Q2 reading.

Unit labor costs were up 1.2% (Briefing.com consensus: 1.3%) following the preliminary Q2 reading of 1.3%.

Initial jobless claims for the week ending August 29 increased by 2,000 to 206,000 (Briefing.com consensus 205,000) from last week's revised total of 204,000 (from 203,000).

Continuing jobless claims for the week ending August 22 decreased by 8,000 to 1.779 million from last week's revised total of 1.771 million (from 1.778 million).

Equity futures point to a modestly lower opening this morning following a broad rebound effort from stocks yesterday.

Crude oil is moving higher this morning, near $93 per barrel as hostilities continue in and around the Strait of Hormuz. However, U.S. Treasury yields are easing slightly, extending the stabilization seen yesterday after the recent surge in rates had emerged as a significant headwind for equities. That moderation helped provide some relief for stocks in Wednesday's session and could help offset some of the renewed pressure from rising oil prices this morning.

Investors had several notable tech earnings reports to assess after the bell yesterday, with Broadcom (AVGO 354.97, -12.27, -3.3%) moving lower despite a solid report and other semiconductor stocks following suit. However, there is some early momentum across software names after the latest round of earnings and pronounced weakness across the group yesterday.

Today's remaining economic calendar:

• 8:30 AM ET: July Trade Balance; Briefing.com consensus -$89.6B; prior -$73.3B
• 8:30 AM ET: Q2 Productivity-Rev.; Briefing.com consensus 1.4%; prior 1.4%
• 8:30 AM ET: Q2 Unit Labor Costs-Rev; Briefing.com consensus 1.3%; prior 1.3%
• 8:30 AM ET: 08/29 Initial Claims; Briefing.com consensus 205K; prior 203K
• 8:30 AM ET: 08/22 Continuing Claims; prior 1778K
• 9:45 AM ET: August S&P Global U.S. Services PMI - Final; prior 56.8
• 10:00 AM ET: August ISM Non-Manufacturing Index; Briefing.com consensus 54.1%; prior 54.1%
• 10:30 AM ET: 08/29 EIA Natural Gas Inventories; prior +15 bcf

In corporate news:

• Broadcom (AVGO 354.97, -12.27, -3.3%) beat EPS expectations by $0.10, beat revenue expectations, and guided Q4 revenues above consensus. 
• Snowflake (SNOW 379.06, +73.22, +23.94%) is sharply higher after beating quarterly earnings and revenue expectations and issuing third-quarter and full-year product revenue guidance.
• Five Below (FIVE 257.24, +14.16, +5.83%) beat quarterly expectations, reported comparable-sales growth of 14.1%, guided third-quarter earnings and revenue above consensus, and raised its full-year outlook.
• Ciena (CIEN 364.00, +9.84, +2.78%) topped quarterly earnings and revenue expectations and guided fourth-quarter revenue above consensus.

Reviewing overnight developments:

Asia-Pacific markets ended mixed, with most indices staying within narrow ranges. The yen rallied to its September high against the dollar amid speculation about a potential Bank of Japan rate hike. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -0.4%, China's Shanghai Composite: UNCH, India's Sensex: -0.6%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +0.4%.

In news:

• Treasury Secretary Bessent said he knows what Japan is planning, fueling speculation that he was foreshadowing a Bank of Japan rate hike.
• Japan's government is reportedly looking to increase the share of household assets held in equities, investment trusts, and bonds to 40% by 2040 from 25% currently.
• China Securities Journal expects the yuan to continue appreciating moderately this year.

In economic data:

• China's August RatingDog Services PMI 51.4 (expected 50.6; last 50.4)
• Japan's August Services PMI 52.5 (expected 52.3; last 51.2)
• Hong Kong's August Manufacturing PMI 49.5 (last 51.0)
• Australia's August Services PMI 53.2 (expected 52.9; last 53.6). July trade surplus AUD1.923 bln (expected surplus of AUD1.400 bln; last surplus of AUD2.341 bln). July Imports -2.5% m/m (last -0.7%) and Exports -3.3% m/m (last 9.1%)
• New Zealand's Q2 Terms of Trade Index -9.0% qtr/qtr (expected -2.1%; last -1.9%)
• India's August Services PMI 54.1 (expected 54.5; last 53.3)

Major European indices trade near their flat lines as investors digest mixed services data and look ahead to next week's ECB policy meeting. STOXX Europe 600: +0.2%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.3%, France's CAC 40: -0.3%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.4%.

In news:

• Germany's Chancellor Merz will meet with ECB officials ahead of next week's policy meeting, which is expected to result in a rate hike.
• Germany's IfW and ifo Institute raised their 2026 domestic growth forecasts.

In economic data:

• Eurozone's August Services PMI 51.6 (expected 51.7; last 51.7). July PPI 1.6% m/m (expected 1.2%; last -0.3%); 5.8% yr/yr (last 4.6%)
• Germany's August Services PMI 49.7 (expected 48.5; last 49.8)
• U.K.'s August Services PMI 52.5 (expected 52.8; last 52.1)
• France's August Services PMI 48.0 (expected 48.4; last 49.6)
• Italy's August Services PMI 55.2 (expected 53.6; last 52.5)
• Spain's August Services PMI 57.8 (expected 59.0; last 58.3) Swiss Q2 GDP 1.9% qtr/qtr (expected 1.5%; last 0.6%); 2.8% yr/yr (last 0.5%). August CPI 0.4% m/m (expected 0.0%; last -0.1%); 0.8% yr/yr (expected 0.5%: last 0.4%)

[BRIEFING.COM] The stock market enjoyed a broad rebound in the midweek session after rising oil prices and Treasury yields pressured equities through the first two sessions of the week. While both remain elevated, relative stability in crude oil and yields today provided some relief for equities, helping the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.6%) recoup a portion of their recent losses. The Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.7%) posted even stronger gains.

WTI crude settled $0.68 higher (+0.8%) at $90.96 per barrel, remaining below its overnight high near $92, while the 10-year note yield finished unchanged at 4.80% after reaching 4.82% overnight. The relatively contained moves in both stood in contrast to the sharper increases that pressured equities earlier in the week, helping create a more supportive backdrop for Wednesday's rebound.

The strength was widespread, with ten of the 11 S&P 500 sectors finishing higher. The S&P 500 Equal Weighted Index (+0.6%) matched the gain in its market-cap-weighted counterpart, while the outperformance of the Russell 2000 provided another indication of solid participation beyond the largest stocks.

Several cyclical areas were among the beneficiaries of the broader rebound. The materials sector (+1.5%) finished atop the sector standings, supported by strength in steel names such as Steel Dynamics (STLD 247.64, +13.55, +5.79%) amid some focus on U.S.-Canada trade negotiations, while other metals names also outperformed.

The financials sector (+0.8%) also participated in the advance, with several of its largest components contributing to the outperformance of the DJIA.

Meanwhile, the communication services sector (+1.3%) was another source of strength, with Charter Comm (CHTR 158.97, +12.78, +8.74%) and Reddit (RDDT 158.11, +13.47, +9.31%) among the day's stronger S&P 500 performers and the sector's mega-cap components also contributing to the advance.

The information technology sector (+0.3%) finished with a modest gain despite a sharp divide beneath the surface. Semiconductor stocks provided support, lifting the PHLX Semiconductor Index 0.5% as NVIDIA (NVDA 224.40, +6.96, +3.20%) posted a solid gain. Attention now turns to Broadcom's (AVGO 367.24, -2.44, -0.66%) earnings report after the close, with investors looking for further evidence that strong AI demand can support the company's ambitious growth expectations.

Dell (DELL 492.00, +67.00, +15.76%) was another notable technology winner following its better-than-expected earnings report. The company delivered a sizable earnings beat and raised its FY27 AI-Optimized Servers revenue outlook to $74 billion from $60 billion, reinforcing expectations for continued strength in AI infrastructure demand. The results also provided a positive read-through for Hewlett Packard Enterprise (HPE 51.86, +0.98, +1.94%), which moved higher ahead of its own earnings report after the close.

Software stocks moved sharply in the opposite direction, leaving the iShares Expanded Tech-Software Sector ETF down 2.6% and extending what has already been a difficult week for the group. Palo Alto Networks (PANW 328.39, -33.70, -9.31%) fell sharply despite beating Q4 expectations and issuing an above-consensus FY27 outlook, with its negative reaction appearing more reflective of elevated expectations than a meaningful deterioration in underlying execution. MongoDB (MDB 375.40, -58.81, -13.54%) also struggled following its earnings report, while Palantir Technologies (PLTR 169.44, -10.48, -5.83%) and CrowdStrike (CRWD 203.42, -11.65, -5.42%) added to the broader software weakness.

The real estate sector (-0.8%) was the lone S&P 500 sector to finish in negative territory, providing one of the few areas of weakness in an otherwise broadly positive session.

On the policy front, the Federal Reserve's Beige Book indicated that economic activity continued to expand modestly since early July, with the outlook remaining positive despite uncertainty surrounding higher energy prices, policy developments, and international conflicts. The 10-year note yield showed little reaction to the report and remained at 4.80%.

Ultimately, Wednesday's rebound provided some relief following the weakness that began the week. The absence of another sharp increase in crude oil or Treasury yields allowed buying interest to broaden across nearly the entire sector lineup, with smaller-cap stocks also participating in the advance. Persistent software weakness remained a notable blemish, but strength across several other areas helped the market recover a portion of its recent losses.

U.S. Treasuries finished Wednesday near their unchanged levels, but the flat finish masked a brief morning dip that sent yields on the 10-year note and shorter tenors to fresh highs for the year. The 2-year note yield finished unchanged at 4.39%, and the 10-year note yield finished unchanged at 4.80%. 

• Russell 2000: +19.0% YTD
• S&P Mid Cap 400: +13.4% YTD
• Nasdaq Composite: +12.8% YTD
• S&P 500: +12.0% YTD
• DJIA: +10.4% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.8%; Prior -1.0%
• August ADP Employment Change 38K (Briefing.com consensus 47K); Prior was revised to 46K from 44K
• July Factory Orders 0.9% (Briefing.com consensus 0.6%); Prior was revised to -0.2% from -0.3%
  • 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.