[BRIEFING.COM] The major averages finished lower today, with the S&P 500 (-0.5%), Nasdaq Composite (-1.5%), and DJIA (-0.2%) retreating as another bout of weakness across semiconductor stocks, coupled with late selling in several other mega-cap technology names, outweighed continued rotational strength elsewhere in the market. While underlying participation remained relatively constructive, concentrated weakness across growth-oriented stocks ultimately dictated the direction of the major averages.

Semiconductor stocks remained the primary source of weakness throughout the session, with the PHLX Semiconductor Index falling 4.3%. Today's selling followed another double-digit overnight decline in SK hynix Inc.'s (SKHY 152.31, -24.15, -13.69%) Korean-listed shares, while Taiwan Semiconductor Manufacturing (TSM 410.06, -9.42, -2.25%) faced sell-the-news pressure despite delivering a beat-and-raise earnings report.

Memory stocks again bore the brunt of the weakness, with Sandisk (SNDK 1411.08, -203.92, -12.63%) and Seagate Tech (STX 745.49, -82.81, -10.00%) ranking among the worst-performing S&P 500 components.

Apple (AAPL 333.26, +5.76, +1.76%) and Microsoft (MSFT 401.10, +5.47, +1.38%) posted solid gains that helped cushion some of the pressure on the information technology sector (-1.8%), though they were not enough to offset the broader weakness across chipmakers.

Selling broadened across other mega-cap growth stocks as the afternoon progressed. The communication services sector (-3.0%) finished as the worst-performing S&P 500 sector after Alphabet (GOOG 353.81, -16.40, -4.43%) moved sharply lower on a Bloomberg report that the launch of its Gemini 3.5 Pro model has been delayed after missing internal performance targets. Meta Platforms (META 664.54, -16.77, -2.46%) also finished lower, while Netflix (NFLX 74.35, +0.67, +0.91%)edged higher ahead of its earnings report after the close.

Amazon (AMZN 249.89, -5.07, -1.99%) added to the weakness in the consumer discretionary sector (-0.3%), and the Vanguard Mega Cap Growth ETF fell 1.4%.

Even so, underlying participation remained stronger than the major averages suggested. The consumer staples sector (+2.9%) finished with the widest gain as broad-based strength, including solid advances in Coca-Cola (KO 84.92, +2.47, +3.00%) and Walmart (WMT 114.95, +2.42, +2.15%), helped cushion losses in the DJIA.

The health care sector (+2.2%) was another standout, supported by strong post-earnings gains in UnitedHealth (UNH 423.38, +4.86, +1.16%) and Abbott Labs (ABT 98.82, +9.55, +10.70%).

The real estate sector (+2.1%) also outperformed, while the S&P 500 Equal Weight Index (+0.9%) substantially outpaced the market-weighted S&P 500 (-0.5%).

The industrials sector finished little changed after a mixed slate of earnings reactions. GE Aerospace (GE 345.73, -14.62, -4.06%) traded lower despite delivering a beat-and-raise earnings report, while United Airlines (UAL 118.84, -2.13, -1.76%)declined after third-quarter guidance came in just below consensus despite a second-quarter earnings beat. Offsetting some of that weakness, J.B. Hunt Transport (JBHT 298.41, +22.13, +8.01%) rallied to a fresh record high after delivering a sizable earnings beat and offering encouraging commentary on its earnings call.

Meanwhile, the energy sector (+1.0%) extended this week's relative outperformance even as crude oil settled modestly lower following a comparatively quiet day of geopolitical headlines surrounding the U.S. and Iran.

Outside the S&P 500, the Russell 2000 (-0.3%) gave back its earlier gains, while the S&P Mid Cap 400 (+0.4%) managed to finish modestly higher.

Although today's session initially featured encouraging rotational strength outside of technology, renewed weakness across semiconductor stocks and late selling in several other mega-cap growth names ultimately overwhelmed that trend. Defensive sectors and the equal-weighted S&P 500 continued to demonstrate healthy underlying participation, but persistent pressure on the market's largest growth stocks remained the dominant influence on index-level performance.

U.S. Treasuries had a soft overnight session that was driven by selling across the curve that was mirrored by losses in other sovereign bond markets. The losses for the Treasury market dissipated as the cash session progressed, aided by a faltering stock market, a retreat in oil prices despite more saber rattling by Iran, and some technical resistance as the 10-yr note yield challenged the 4.60% level. The 2-year note yield settled up three basis points to 4.16%, and the 10-year note yield settled up two basis points to 4.57%. 

• Russell 2000: +19.9% YTD
• S&P Mid Cap 400: +14.9% YTD
• Nasdaq Composite: +11.4% YTD
• S&P 500: +10.1% YTD
• DJIA: +9.3% YTD

Reviewing today's data:

• July Philadelphia Fed Index 41.4 (Briefing.com consensus 11.0); Prior 10.3
• June Retail Sales 0.2% (Briefing.com consensus 0.3%); Prior was revised to 1.0% from 0.9%, June Retail Sales, ex-auto -0.2% (Briefing.com consensus 0.1%); Prior was revised to 1.0% from 0.8%
  • The key takeaway from the report is that the headline disappointments are misleading, as they were driven primarily by gasoline station sales (-5.3%). Excluding gasoline stations, retail sales were up a solid 0.7% in June on the heels of a 0.9% increase in May.
• Weekly Initial Claims 208K (Briefing.com consensus 219K); Prior was revised to 216K from 215K, Weekly Continuing Claims 1.805 mln; Prior was revised to 1.821 mln from 1.814 mln
  • The key takeaway from the report is that initial jobless claims remain historically low and a signpost for a labor market that is still light overall on layoff activity.
• May Business Inventories 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.6% from 0.5%
• July NAHB Housing Market 34 (Briefing.com consensus 37); Prior was revised to 36 from 35
• June Pending Home Sales -5.4% (Briefing.com consensus 0.4%); Prior was revised to 3.5% from 3.8%

[BRIEFING.COM] The major averages continue to chart session lows with just half an hour left in today's session.

Within the communication services sector (-2.9%), Netflix (NFLX 73.67, -0.01, -0.01%) has given back its earlier gain ahead of its earnings release after the close. Expectations are tempered by its own downside Q2 guide in April, even after a strong Q1 beat. The stock has been mostly range-bound into the print and remains well below its 50-day and 200-day averages, suggesting investors want proof that revenue growth, ad monetization, and margin discipline are still on track. This report likely matters most for what management says about the back half of 2026.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.4%), and DJIA (-0.4%) are at session lows as the market enters the final hour of the session.

The decisive turn lower is partly due to Alphabet (GOOG 356.30, -13.91, -3.76%) moving sharply lower after Bloomberg reported that the company's Gemini 3.5 Pro model is being delayed because the model missed internal goals. With Alphabet's loss, the communication services sector (-2.5%) now holds the widest loss across S&P 500 sectors, though semiconductor names have not shown any late improvement, keeping the information technology sector (-1.7%) firmly lower as well.

[BRIEFING.COM] The S&P 500 (-0.53%) is in second place, down about 40 points.

Briefly, S&P 500 constituents Robinhood Markets (HOOD 106.87, -8.67, -7.50%), Coherent (COHR 276.60, -22.78, -7.61%), and Super Micro Computer (SMCI 24.86, -2.02, -7.53%) dot the bottom of the average. HOOD slides as crypto shows solid losses on Thursday afternoon, while SMCI falls as the U.S. ITC launched a patent infringement investigation into Samsung DRAM chips used in AI products from Super Micro and other major technology companies, raising concerns over potential supply chain disruptions.

Meanwhile, Erie Indemnity (ERIE 229.23, +19.04, +9.06%) is near the top of today's standings, recovering some of yesterday's steep losses.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-1.18%) is in last place on Thursday afternoon, down about 309 points.

Gold futures settled $59.70 lower (-1.5%) at $3,992.10/oz, as a stronger U.S. dollar and higher Treasury yields pressured bullion prices. Investors also worried that rising Middle East tensions could lift energy prices and keep the Federal Reserve cautious on cutting interest rates.

Meanwhile, the U.S. Dollar Index is up +0.3% to $100.78.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.06%) is in "first" place on Thursday afternoon, down just 30 points, with more aggressive losses being had elsewhere.

A look inside the DJIA shows that Salesforce (CRM 173.02, +6.02, +3.60%), Merck (MRK 127.98, +4.37, +3.54%), and Nike (NKE 44.19, +1.42, +3.32%) hold solid gains.

Meanwhile, Goldman Sachs (GS 1097.88, -54.19, -4.70%) is underperforming.

The DJIA -1.24% lower compared to last week's all-time highs.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.8%), and DJIA (+0.1%) are mostly lower just after midday as another wave of selling across semiconductor stocks gradually outweighs the broader rotational strength seen earlier in the session. 

The information technology sector (-1.7%) is the worst-performing S&P 500 sector, pressured by a 4.2% decline in the PHLX Semiconductor Index. Today's weakness follows another double-digit overnight slide in SK hynix Inc.'s (SKHY 160.50, -15.96, -9.04%) Korean-listed shares, while Taiwan Semiconductor Manufacturing (TSM 406.76, -12.72, -3.03%) has faced sell-the-news pressure despite delivering a beat-and-raise earnings report.

Memory stocks continue to bear the brunt of the selling, with Sandisk (SNDK 1451.37, -163.63, -10.13%) and Western Digital (WDC 462.40, -51.44, -10.01%) ranking among the worst-performing S&P 500 components. Corning (GLW 156.76, -17.65, -10.12%) is another notable laggard, while NVIDIA (NVDA 207.43, -5.07, -2.39%) is the weakest-performing "Magnificent Seven" component.

Weakness has also spread across other growth-oriented stocks as the session has progressed. The Vanguard Mega Cap Growth ETF is down 0.9%, while Tesla (TSLA 388.78, -5.68, -1.44%) and Meta Platforms (META 670.47, -10.84, -1.59%) have also turned lower.

Even so, underlying participation remains stronger than the major averages suggest. The health care (+2.2%) and consumer staples (+2.1%) sectors lead the advance, supported in part by strong post-earnings gains in UnitedHealth (UNH 432.41, +13.89, +3.32%) and Abbott Labs (ABT 99.22, +9.95, +11.15%).

The real estate sector (+1.6%) is another relative standout, while the energy sector (+0.9%) remains higher despite crude oil trading modestly lower amid a relatively quiet day of geopolitical headlines.

The S&P 500 Equal Weight Index (+0.7%) continues to considerably outperform the market-weighted S&P 500 (-0.3%), while the Russell 2000 (+0.2%) and S&P Mid Cap 400 (+0.3%) also remain modestly higher, reinforcing the broader rotational nature of today's action.

Meanwile, industrials sector (-0.3%) is another laggard following several notable earnings reactions. GE Aerospace (GE 340.78, -19.56, -5.43%) trades lower despite delivering a solid beat-and-raise earnings report, while United Airlines (UAL 118.58, -2.40, -1.98%) is under pressure after third-quarter guidance came in just below consensus despite a second-quarter earnings beat. Offsetting some of that weakness, Uber (UBER 73.54, +0.87, +1.20%) remains higher after formally announcing a cash offer for Delivery Hero valued at approximately $14.8 billion.

Although today's session initially featured encouraging rotational strength outside of technology, renewed selling across semiconductor stocks has gradually pulled the major averages back toward their session lows. Defensive sectors, the equal-weighted S&P 500, and small- and mid-cap stocks continue to outperform, though persistent weakness across chipmakers remains the market's dominant influence.

Reviewing today's data:

• July Philadelphia Fed Index 41.4 (Briefing.com consensus 11.0); Prior 10.3
• June Retail Sales 0.2% (Briefing.com consensus 0.3%); Prior was revised to 1.0% from 0.9%, June Retail Sales, ex-auto -0.2% (Briefing.com consensus 0.1%); Prior was revised to 1.0% from 0.8%
  • The key takeaway from the report is that the headline disappointments are misleading, as they were driven primarily by gasoline station sales (-5.3%). Excluding gasoline stations, retail sales were up a solid 0.7% in June on the heels of a 0.9% increase in May.
• Weekly Initial Claims 208K (Briefing.com consensus 219K); Prior was revised to 216K from 215K, Weekly Continuing Claims 1.805 mln; Prior was revised to 1.821 mln from 1.814 mln
  • The key takeaway from the report is that initial jobless claims remain historically low and a signpost for a labor market that is still light overall on layoff activity.
• May Business Inventories 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.6% from 0.5%
• July NAHB Housing Market 34 (Briefing.com consensus 37); Prior was revised to 36 from 35
• June Pending Home Sales -5.4% (Briefing.com consensus 0.4%); Prior was revised to 3.5% from 3.8%

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-1.0%), and DJIA (-0.1%) are back near session lows as selling pressure amps up both across semiconductor names and the broader market.

The Vanguard Mega Cap Growth ETF is down 0.9%, with NVIDIA (NVDA 207.29, -5.21, -2.45%) the worst-performing "Magnificent Seven" name amid the broader weakness across chipmakers today.

Outside of the technology sector, Tesla (TSLA 388.98, -5.48, -1.39%) and Meta Platforms (META 670.19, -11.12, -1.63%) are also laggards.

[BRIEFING.COM] The major averages remain little changed from previous levels at midday.

The industrials sector (-0.1%) is now modestly lower, with several notable corporate news items.

GE Aerospace (GE 342.82, -17.53, -4.86%) trades lower despite a solid beat-and-raise earnings report, while United Airlines (UAL 117.77, -3.20, -2.65%) also lags after delivering a mixed earnings update in which Q2 adjusted EPS topped expectations, but Q3 guidance came in just below consensus and kept investors focused on the timing of the fuel-cost recovery.

Meanwhile, Uber (UBER 73.48, +0.80, +1.11%) holds a a solid gain after formally announcing a cash offer for Delivery Hero valued at approximately $14.8 billion for 100% of the company, a transaction that would expand UBER's combined reach to 99 countries while increasing the number of markets offering both Mobility and Delivery from 34 to 58.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.5%), and DJIA (+0.3%) have spent the morning in a relatively tight range, with continued weakness across semiconductor names weighing against broad gains elsewhere.

The information technology sector (-1.7%) is the only S&P 500 sector that trades lower, weighed down by a 3.4% slide in the PHLX Semiconductor Index. Today's weakness across semiconductor names follows another double-digit slide in SK hynix Inc.'s (SKHY 162.85, -13.61, -7.71%) Korean-listed shares overnight, while Taiwan Semiconductor Manufacturing (TSM 412.33, -7.15, -1.70%) has faced some sell-the-news pressure despite a beat-and-raise earnings report.

Mega-cap tech names outside of the semiconductor space are showing resilience, though they are not extending yesterday's index-moving rally.

Meanwhile, the broader market has seen some solid rotational strength today that helps limit losses at the index level. Defensive-oriented sectors are posting the widest gains amid the weakness in tech today. The health care sector (+2.2%) holds the widest gain, supported by strong post-earnings moves in UnitedHealth (UNH 433.28, +14.76, +3.53%) and Abbott Labs (ABT 98.98, +9.70, +10.87%), while the consumer staples sector (+2.1%) holds a similar gain. The S&P 500 Equal Weighted Index (+0.8%) considerably outpaces the market-weighted S&P 500 (-0.1%).

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.6%) hold solid gains, supporting the idea of a broader rotational trade.

[BRIEFING.COM] The major averages remain mixed as weakness across semiconductor names continues to weigh against strength in the broader market.

Taiwan Semiconductor Manufacturing (TSM 412.77, -6.71, -1.60%) is slipping despite a strong Q2 report because the market appears to be treating the results as a sell-the-news event in a weak semiconductor tape rather than a fresh upside surprise. Taiwan Semi reported one of its largest EPS beats in years, driven by surging AI-related demand and continued strength in its leading-edge chip manufacturing business. While the stock is pulling back modestly following the report, the company raised its full-year outlook, guided Q3 revenue above expectations, and expressed unwavering confidence in the multiyear AI spending cycle.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.5%), and DJIA (+0.2%) remain mostly lower, but off their worst levels of the session as strength broadens, leaving just the information technology sector (-1.4%) in negative territory. 

Meanwhile, the health care sector (+2.3%) continues to lead the advance, with UnitedHealth (UNH 437.47, +18.95, +4.53%) trading sharply higher after delivering a much stronger-than-expected Q2 and lifting its FY26 adjusted EPS outlook to $19.50-$20.00 from prior guidance of greater than $18.25. Adjusted EPS of $6.38 beat consensus by roughly $1.50 on revenue of $112.03 billion, while management paired the numbers with a more constructive tone around execution, Medicare performance, and Optum trends. The key driver appears to be growing confidence that the company is converting pricing, care management, and operating discipline into a more durable earnings recovery, especially after investors had been focused on whether margin improvement was sustainable. The main offset is that not all cost pressures are easing: commercial medical cost trend remains stubbornly high and modestly above the prior ~11% expectation, while Medicaid margins are still expected to stay pressured.

UnitedHealth delivered the type of quarter investors had been waiting for following last year's sharp earnings reset. The combination of a decisive earnings beat, a much better-than-expected medical care ratio, and another sizeable guidance increase suggests the company's turnaround is progressing more quickly than expected. The upgraded FY26 outlook, better Medicare cost experience, and steadier Optum commentary all support the idea that 2026 can serve as a cleaner earnings base into 2027.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-0.8%), and DJIA (flat) are mostly lower as semiconductor stocks face an extension of this week's pressure while the broader market trends mostly higher.

After another volatile showing from SK hynix Inc.'s (SKHY 164.32, -12.14, -6.88%) SKHY's Korean-listed shares overnight, memory names such as Sandisk (SNDK 1512.85, -102.15, -6.33%) are facing sharp losses again today.

A host of other semiconductor names, including Corning (GLW 162.15, -12.26, -7.03%) face similar losses, and the PHLX Semiconductor Index is down 2.8%, putting pressure on the top-weighted information technology sector (-1.6%).

Elsewhere, investors are rotating into more defensive-oriented pockets of the market, with the health care (+2.5%) and consumer staples (+1.9%) sectors sporting wide gains. UnitedHealth (UNH 451.97, +33.45, +7.99%) trades sharply higher after topping earnings expectations, helping the DJIA outpace the other major averages.

Just released, Business Inventories increased 0.3% in May (Briefing.com consensus 0.3%, from an upwardly revised previous increase of 0.6% (from 0.5%).

The NAHB Housing Market Index contracted to 34 in July (Briefing.com consensus 37), from an upwardly revised prior reading of 36 (from 35).

Pending Home Sales decreased 5.4% in June (Briefing.com consensus 0.4%), from a downwardly revised previous increase of 3.5% (from 3.8%).

The stock market remains on track for a lower opening after a busy slate of economic data.

Total retail sales were up 0.2% month-over-month in June (Briefing.com consensus: 0.2%) following an upwardly revised 1.0% increase (from 0.9%) in May. Excluding autos, retail sales were down 0.2% month-over-month (Briefing.com consensus: 0.1%) following an upwardly revised 1.0% increase (from 0.8%) in May.

The key takeaway from the report is that the headline disappointments are misleading, as they were driven primarily by gasoline station sales (-5.3%). Excluding gasoline stations, retail sales were up a solid 0.7% in June on the heels of a 0.9% increase in May.

Initial jobless claims for the week ending July 11 decreased by 8,000 to 208,000 (Briefing.com consensus: 219,000). Continuing jobless claims for the week ending July 4 were down 16,000 to 1.805 million. The key takeaway from the report is that initial jobless claims remain historically low and a signpost for a labor market that is still light overall on layoff activity.

The Philadelphia Fed Index surged to 41.4 in July (Briefing.com consensus: 11.0) from 10.3 in June. The dividing line between expansion and contraction for this report is 0.0, so the July reading marks a notable acceleration in manufacturing activity in July in the Philadelphia Fed region versus the prior month.

The key takeaway from the report is that its strength was concentrated in new orders, shipments, and employment conditions, all of which were pitted against a relatively tame bump in the prices paid index.

The S&P 500 futures currently trade 32 points below fair value. 

Equity indices in the Asia-Pacific region were mostly lower, pressured once again by the extreme volatility of South Korea's Kospi (-6.4%) that cut risk appetite. That move occurred alongside the Bank of Korea's first rate hike in 3 1/2 years (+25 bps to 2.75%, as expected) and the Financial Services Commission's proclamation that it is meeting emergently to discuss the volatility and will soon have an announcement with respect to single, leveraged ETFs. The Kospi's weakness was paced by an 11% drop in SK Hynix that set a nervous tone for semiconductor stocks elsewhere. Taiwan Semi (TSM) posted better-than-expected Q2 results and Q3 guidance but is still down more than 4.0% ahead of the U.S. open. Japan's Nikkei (-2.8%) was another notable loser despite several key product announcements between NVIDIA (NVDA) and Japanese companies. Higher JGB yields pressured the Nikkei, yet the country's finance minister aimed to stem the rise with a claim that efforts will be made to improve the attractiveness of JGBs for individuals. Separately, China's AI Conference begins Friday with a keynote address from President Xi.

• In economic data:
  • Australia's July MI Inflation Expectations 4.7% (prior 5.5%)

---Equity Markets---

• Japan's Nikkei: -2.8%
• Hong Kong's Hang Seng: +1.3%
• China's Shanghai Composite: -1.9%
• India's Sensex: flat
• South Korea's Kospi: -6.4%
• Australia's ASX All Ordinaries: flat

Major European indices are modestly lower with risk sentiment being held in check by rising bond yields, ongoing geopolitical tension, and the high volatility of the semiconductor stocks that had a downside bias in Asian trading. The UK released a large batch of economic data, including Q2 GDP that slightly exceeded the month-over-month expectation and industrial production for May that was weaker than expected. The corporate news flow is relatively light, as macro conditions have been a focal point; however, Uber's (UBER) $14.8 billion cash acquisition of Delivery Hero is drawing some special attention. Separately, reports indicate the ECB is expected to sit tight with its policy rate settings at next week's meeting.

• In economic data:
  • Eurozone's May Trade Balance EUR -7.8 bln (EUR2.8 bln expected; prior EUR -1.2 bln)
  • UK's May GDP 0.1% m/m (0.0% expected; prior -0.1%) and 1.3% yr/yr (1.4% expected; prior 1.1%); May Trade Balance GBP -18.66 bln (GBP -23.10 bln expected; prior GBP -24.58 bln); May Industrial Production -0.5% m/m (-0.1% expected; prior 0.2%); May Construction Output -0.8% m/m (-0.3% expected; prior -0.1%)
  • Italy's June CPI 0.0% m/m (0.0% expected; prior 0.4%) and 3.0% yr/yr (3.0% expected; prior 3.2%)

---Equity Markets---

• STOXX Europe 600: -0.7%
• Germany's DAX: -1.1%
• U.K.'s FTSE 100: -0.6%
• France's CAC 40: -1.0%
• Italy's FTSE MIB: -0.9%
• Spain's IBEX 35: -0.8%

The S&P 500 futures currently trade 42 points below fair value.

Just released, total retail sales increased 0.2% month-over-month in June (Briefing.com consensus: 0.3%) following an upwardly revised 1.0% increase (from 0.9%) in May.

Excluding autos, retail sales decreased 0.2% (Briefing.com consensus: 0.1%) on the heels of an upwardly revised 1.0% increase in May (from 0.8%).

For the week ending July 11, initial jobless claims decreased by 8,000 to 208,000 (Briefing.com consensus: 219,000) from an upwardly revised previous level of 216,000 (from 215,000).

For the week ending July 4, continuing jobless claims decreased by 16,000 to 1.805 million from an upwardly revised previous level of 1.821 million (from 1.814 million).

The Philadelphia Fed Index expanded to 41.4 in July (Briefing.com consensus 11.0) from the prior reading of 10.3.

Equity futures point to a mostly lower opening this morning as semiconductor stocks face an extension of yesterday's pressure. The semiconductor group lagged yesterday, though broad strength and solid gains across other meg-cap tech names helped the major averages finish higher.

This morning's pressure follows an 11% drop in Korean-listed shares of memory powerhouse SK Hynix, with the stock's ADR debut on the Nasdaq last Friday contributing to recent choppiness across the group.

Elsewhere, oil prices are little changed this morning, though Bloomberg reports the U.S. hit a sanctioned Iranian oil tanker as traffic in the Strait of Hormuz dwindles.

Investors have a decent batch of earnings reports to assess this morning as Q2 earnings season begins to broaden beyond the financials sector.

Additionally, today's economic data slate is also relatively full and features the June Retail Sales report (Briefing.com consensus 0.3%) at 8:30 a.m. ET.

In corporate news:

• GE Aerospace (GE 352.55 -7.80, -2.2%) beat EPS expectations by $0.42, beat revenue expectations, and guided FY26 EPS above consensus.
• Taiwan Semiconductor Manufacturing (TSM 399.00, -20.48, -4.9%) beat EPS expectations by $0.50, reported revenues in line, and guided Q3 revenues above consensus.
• UnitedHealth (UNH 443.00, +24.48, +5.9%) beat EPS expectations by $1.50, beat revenue expectations, and guided FY26 EPS above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were mostly lower, pressured once again by the extreme volatility of South Korea's Kospi (-6.4%) that cut risk appetite. Japan's Nikkei: -2.8%, Hong Kong's Hang Seng: +1.3%, China's Shanghai Composite: -1.9%, India's Sensex: flat, South Korea's Kospi: -6.4%, Australia's ASX All Ordinaries: flat.

In news:

• The Bank of Korea delivered its first rate hike in 3 1/2 years (+25 bps to 2.75%, as expected) and the Financial Services Commission's proclamation that it is meeting emergently to discuss the volatility and will soon have an announcement with respect to single, leveraged ETFs.
• The Kospi's weakness was paced by an 11% drop in SK Hynix that set a nervous tone for semiconductor stocks elsewhere. Taiwan Semi (TSM) posted better-than-expected Q2 results and Q3 guidance but is still down more than 4.0% ahead of the U.S. open.
• Japan's Nikkei (-2.8%) was another notable loser despite several key product announcements between NVIDIA (NVDA) and Japanese companies.
• Higher JGB yields pressured the Nikkei, yet the country's finance minister aimed to stem the rise with a claim that efforts will be made to improve the attractiveness of JGBs for individuals.
• Separately, China's AI Conference begins Friday with a keynote address from President Xi.

In economic data:

• Australia's July MI Inflation Expectations 4.7% (prior 5.5%)

Major European indices are modestly lower with risk sentiment being held in check by rising bond yields, ongoing geopolitical tension, and the high volatility of the semiconductor stocks that had a downside bias in Asian trading. STOXX Europe 600: -0.5%, Germany's DAX: -0.9%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.8%, Italy's FTSE MIB: -0.6%, Spain's IBEX 35: -0.6%.

In news:

• The UK released a large batch of economic data, including Q2 GDP that slightly exceeded the month-over-month expectation and industrial production for May that was weaker than expected.
• The corporate news flow is relatively light, as macro conditions have been a focal point; however, Uber's (UBER) $14.8 billion cash acquisition of Delivery Hero is drawing some special attention.
• Separately, reports indicate the ECB is expected to sit tight with its policy rate settings at next week's meeting.

In economic data:

• Eurozone's May Trade Balance EUR -7.8 bln (EUR2.8 bln expected; prior EUR -1.2 bln)
  UK's May GDP 0.1% m/m (0.0% expected; prior -0.1%) and 1.3% yr/yr (1.4% expected; prior 1.1%); May Trade Balance GBP -18.66 bln (GBP -23.10 bln expected; prior GBP -24.58 bln); May Industrial Production -0.5% m/m (-0.1% expected; prior 0.2%); May Construction Output -0.8% m/m (-0.3% expected; prior -0.1%)
• Italy's June CPI 0.0% m/m (0.0% expected; prior 0.4%) and 3.0% yr/yr (3.0% expected; prior 3.2%)

[BRIEFING.COM] The major averages finished higher across the board today, with the S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (+0.3%) overcoming another bout of weakness across semiconductor stocks as encouraging inflation data and continued strength among several other mega-cap technology names supported the broader market. Investors also digested another slate of earnings reports, Fed commentary, and geopolitical developments.

Semiconductor stocks remained a notable source of weakness, though they recovered well off their session lows into the close. The PHLX Semiconductor Index finished down 2.1% after falling more than 4% earlier in the session. ASML (ASML 1815.27, +39.63, +2.23%) delivered a beat-and-raise earnings report before the open, but the stock and the broader semiconductor space reversed course after initially pointing toward another day of gains, though the afternoon saw a solid intraday recovery.

Memory names such as Micron (MU 904.28, -78.84, -8.02%), Sandisk (SNDK 1615.00, -142.82, -8.12%), and, outside the S&P 500, SK hynix Inc. (SKHY 176.46, -17.46, -9.00%) were among the group's biggest laggards.

The information technology sector (-0.1%) also rebounded sharply from its intraday lows, finishing just shy of unchanged as strength across several of its largest components helped offset semiconductor weakness. Microsoft (MSFT 395.63, +10.70, +2.78%) and Apple (AAPL 327.50, +12.64, +4.01%) were "Magnificent Seven" standouts, with Apple benefiting from a report from The Information that the company is exploring acquisitions to bolster its AI chip capabilities.

Alphabet (GOOG 370.21, +12.88, +3.60%) and Amazon (AMZN 254.96, +7.47, +3.02%) also posted solid gains, helping lift the communication services (+2.8%) and consumer discretionary (+1.4%) sectors. The Vanguard Mega Cap Growth ETF rose 1.0%, underscoring continued leadership across growth-oriented stocks outside of the semiconductor space.

The financials sector (+0.7%) was another relative outperformer following another busy round of corporate news. BlackRock (BLK 1093.40, +67.96, +6.63%) finished sharply higher after earnings, while Morgan Stanley (MS 228.42, +0.75, +0.33%) ended flattish despite also topping expectations.

Elsewhere, PayPal (PYPL 55.52, +8.15, +17.20%) was the best-performing S&P 500 component after Reuters reported that Stripe and Advert International have offered to acquire the company for approximately $53 billion.

The industrials sector (-0.2%) recovered alongside semiconductor stocks during the afternoon, though Pentair (PNR 64.33, -11.35, -15.00%) remained a notable drag after sharply lowering its second-quarter and full-year guidance, citing weaker pool equipment demand driven by a more pronounced inventory realignment and deteriorating business conditions.

The energy sector (-0.8%) gave back a portion of its gains from earlier in the week as WTI crude oil futures settled today's session $0.22 higher (+0.3%) at $79.62 per barrel following a relatively quiet day of geopolitical headlines involving the U.S. and Iran. Oil prices moved higher after the settlement, however, after U.S. Central Command announced a second wave of strikes against Iran.

The utilities sector (-1.0%) was another laggard as investors continued rotating away from more defensive areas of the market in favor of growth-oriented stocks.

On the policy front, another favorable inflation reading reinforced yesterday's encouraging CPI report, as the June PPI fell 0.3% month-over-month (Briefing.com consensus: 0.1%). The report further reduced the market's expectations for a near-term rate hike, with the CME FedWatch Tool's implied probability of the FOMC leaving rates unchanged at its September meeting rising to 51.9% from 41.9% yesterday. New York Fed President John Williams (FOMC voting member) said there are encouraging reasons to believe inflation has peaked, while Fed Governor Lisa Cook (FOMC voting member) reiterated that she would support tighter policy if inflation fails to show further signs of cooling.

Despite another volatile session for semiconductor stocks, today's trading demonstrated that investors remained willing to reward other growth-oriented areas of the market when the inflation backdrop improved. While chipmakers remained an important source of day-to-day volatility, strength across the broader mega-cap technology complex ultimately proved sufficient to lift the major averages higher.

U.S. Treasuries had a solid showing today, primarily shorter-dated securities, which were bolstered by a market-friendly PPI reading this morning that kept rate-hike concerns for the July FOMC meeting in check. The 2-year note yield settled down six basis points to 4.13%, and the 10-year note yield settled down four basis points to 4.55%. 

• Russell 2000: +19.9% YTD
• S&P Mid Cap 400: +14.3% YTD
• Nasdaq Composite: +13.0% YTD
• S&P 500: +10.6% YTD
• DJIA: +9.6% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.7%: Prior -2.2%
• June PPI -0.3% (Briefing.com consensus 0.1%); Prior was revised to 0.6% from 1.1%, June Core PPI 0.2% (Briefing.com consensus 0.4%); Prior was revised to 0.1% from 0.4%
  • The key takeaway from the report is that it is an encouraging monthly marker of how the inflation data can improve with a decline in energy prices; however, it also reveals on a year-over-year basis that wholesalers are still dealing with high prices. Net-net, this report conveys the need for more improvement in bringing down wholesale prices, but it was better-than-feared when also factoring in the downward revisions to the prior month.
• July Empire State Manufacturing 15.6 (Briefing.com consensus 8.5); Prior 5.7