[BRIEFING.COM] The stock market has seen another day of muted action so far, with the S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) currently sitting mixed. 

Sector strength is fairly solid, with seven S&P 500 sectors trading higher, which starkly contrasts yesterday's action that saw only the information technology sector finish with a gain. Additionally, today's breadth figures (advancers outpace decliners by a roughly 2-to-1 margin on the NYSE and a roughly 5-to-3 clip on the Nasdaq) are an almost perfect inversion of yesterday's negative breadth figures, reflecting some back-and-forth action in the market ahead of tomorrow's FOMC decision. 

Gains and losses are relatively modest, with the energy sector (+1.0%) moving the furthest from its unchanged level despite a $0.66 (-1.1%) decrease in the price of oil to $58.22 per barrel. Exxon Mobil (XOM 118.87, +2.89, +2.49%) holds a solid gain after updating its 2030 outlook, now targeting $25 billion of earnings growth and $35 billion of cash flow growth. 

CVS Health (CVS 78.80, +2.27, +2.96%) also posts a solid gain after lifting its outlook, though the broader health care sector (-0.4%) holds the widest loss today as the sector continues to struggle in December. Dow component Merck (MRK 96.63, -2.30, -2.32%) is a notable laggard. 

The consumer discretionary sector (+0.4%) has done a nice job of reversing an early loss, aided by Tesla (TSLA 451.75, +12.17, +2.77%) recovering the bulk of yesterday's weakness. 

Meanwhile, a loss in Meta Platforms (META 655.74, -11.06, -1.66%) prevents the communication services sector (flat) from breaching its unchanged level and reflects the mixed disposition of the market's largest names today. The Vanguard Mega Cap Growth ETF is flat. 

The financials sector (flat) has trended in the other direction, losing a solid early gain as JPMorgan Chase (JPM 305.01, -10.20, -3.24%) slips following comments at the Goldman Financial Services Conference. Importantly, management says they see investment banking fees to be up low single digits year-over-year and Q4 markets revenue to be up low teens year-over-year at this point.

The market received a few earnings reports before the open, with AutoZone (AZO 3474.21, -292.75, -7.77%) lagging after an earnings miss and Campbell Soup (CPB 28.33, -1.71, -5.71%) seeing outsized losses in reaction to poor guidance. 

Investors did not receive any economic data of note, which adds to the subdued tone ahead of tomorrow's FOMC meeting. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (flat) are off of their best levels of the session, sitting near their flatlines shortly after midday. 

AutoZone (AZO 3491.17, -275.79, -7.32%) is the worst-performing S&P 500 name today after reporting its Q1 (Nov) results this morning. The company missed EPS expectations, which declined 4.6% to $31.04 and now marks six consecutive quarters of falling short of estimates. Revenue increased 8.2% year-over-year to $4.63 billion, which was just in line with expectations.

The company's Q1 tells a familiar two-sided story. It delivered solid top-line growth and healthy comparable sales, which, while a bit lower than last quarter, were still respectable. On the other side, another EPS miss, driven by a sizable $98 million LIFO charge and higher growth-related expenses, extends a now-lengthy streak of falling short of estimates and keeps a cloud over margin visibility, even if LIFO remains more of an accounting and cost-timing headwind than a structural issue. 

[BRIEFING.COM] The major averages continue to trade modestly higher at midday. 

CVS Health (CVS 78.63, +2.10, +2.74%) boosted its FY25 outlook again, lifting EPS to $6.60--$6.70 from $6.55--$6.65, and revenue to at least $400 billion from $397.3 billion, marking its fourth EPS upward revision and sending shares sharply higher. FY26 EPS guidance of $7.00-$7.20 aligns with consensus, while FY26 revenue of at least $400 billion trails expectations, suggesting measured top-line growth against tighter utilization trends. Still, long-term goals impressed: CVS now targets mid-teens adjusted EPS CAGR through 2028, supported by improving claims costs, higher-margin care delivery, PBM repricing tailwinds, cost discipline, and scaling of its value-based primary care platform.

Meanwhile, the broader health care sector (-0.3%) now holds the widest loss of S&P 500 sectors, giving back a nice opening gain and furthering the sector's slide in December (-4.3% MTD) after outperforming in November. 

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.1%), and DJIA (+0.3%) hold modest gains shortly before midday amid a relatively uneventful session as investors await tomorrow's FOMC meeting. 

The small-cap Russell 2000 (+0.4%) holds a slightly higher gain, continuing this month's trend of outperformance, while the S&P MidCap 400 (+0.3%) holds a similar gain.

Eight S&P 500 sectors trade higher, though subdued performance across the market's largest names (the Vanguard Mega Cap Growth ETF is flat) limits gains at the index level. 

Only the communication services sector (-0.5%) holds a loss wider than 0.1% as Meta Platforms (META 655.21, -11.59, -1.74%) trades lower while Paramount Skydance (PSKY 14.20, -0.37, -2.57%) gives back some of yesterday's gains that followed the company's unsolicited bid to acquire Warner Bros. Discovery (WBD 27.66, +0.42, +1.56%). 

In other stock-specific news, AutoZone (AZO 3542.58, -224.38, -5.96%) and Campbell Soup (CPB 28.83, -1.21, -4.03%) move lower following their earnings reports, while CVS Health (CVS 79.02, +2.50, +3.26%) and KeyCorp (KEY 20.22, +0.84, +4.31%) both move higher after issuing upside guidance. 

[BRIEFING.COM] The major averages remain pinned near their flatlines as the session trudges on in an uneventful fashion.

The financials sector (+0.6%) is off to a solid start this morning, with Apollo Global Management (APO 144.20, +6.82, +4.97%) leading the strength against a backdrop of solid participation. 

KeyCorp (KEY 20.32, +0.93, +4.80%) holds a similar gain after providing investor updates, with the company reporting that it is on pace to meet or exceed all financial metrics. 

Though not yet a member of the sector, Ares Management (ARES 177.28, +13.02, +7.93%) trades higher following news that it will join the S&P 500. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.1%), and DJIA (+0.2%) continue to trade in a subdued, mixed fashion this morning. 

Homebuilder names are under trading lower again today, with the iShares U.S. Home Construction ETF down 0.6% after a 2.1% slide in yesterday's action. 

Toll Brothers (TOL 132.62, -3.58, -2.63%) posted mixed 4Q25 results with EPS significantly missing while revenue of $3.42 billion slightly beat expectations, driving shares sharply lower amid soft FY26 guidance and margin pressure. FY26 deliveries outlook of 10,300-10,700 homes fell short of expectations, signaling caution for another tough year despite a strong balance sheet.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (-0.2%), and DJIA (+0.3%) sit mixed as mega-cap and tech names rebound from opening losses against a backdrop of solid participation in the broader market. 

Nine S&P 500 sectors trade higher after yesterday's broad-based retreat, though gains are modest with the exception of the energy sector (+1.3%).

The information technology (-0.1%) and consumer discretionary (+0.1%) sectors have both rebounded nicely after wider opening losses, with the improvements helping push the S&P 500 into positive territory. 

NVIDIA (NVDA 184.34, -1.21, -0.65%) trades lower despite President Trump's announcement that the company will be able to sell its advanced H200 chips in China, while Apple (AAPL 279.54, +1.65, +0.59%) recovers yesterday's loss. 

Tesla (TSLA 442.43, +2.85, +0.65%) also sees a modest bounce off of yesterday's lows but has quite a bit of ground to cover to make up for yesterday's 3.4% slide.

Meanwhile, the communication services sector (-0.8%) remains firmly lower as Alphabet (GOOG 313.00, -1.45, -0.46%) and Meta Platforms (META 655.71, -11.09, -1.66%) move lower again today. 

The stock market is on track for a slightly lower opening this morning amid relatively few notable developments as investors await tomorrow's FOMC decision.

Tech names are mostly lower in the pre-market, suggesting some profit-taking in the wake of yesterday's advance that limited losses at the index level.  

The cautious tone reflects a broader wait-and-see stance across the market as investors look towards the next meaningful catalyst.

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

Equity indices in the Asia-Pacific region were mostly lower Tuesday, registering modest losses on a lack of buyer conviction ahead of Wednesday's closely watched FOMC decision. The Reserve Bank of Australia kicked things off Tuesday, voting unanimously to leave its cash rate unchanged at 3.60%, as expected; however, it was a more hawkish-minded decision, as RBA Governor Bullock reportedly said in the Q&A that rate hikes would need to be considered if inflation remains persistent. Japan had a JGB 5-yr auction that was met with okay demand. Finance Minister Katayama conveyed an intervention-minded tone, saying the action in the bond market is being closely monitored and that FX moves are concerning. The Bank of Korea, aiming to stabilize rising rates, is making its first bond purchase since 2022. Separately, China's President Xi talked up the idea of reinforcing growth momentum, while President Trump said he is going to allow NVIDIA to ship its H200 chips to approved customers in China, with 25% of any sales going to the U.S.

• In economic data:
  • Japan's M2 Money Stock 1.8% yr/yr (expected 1.4%; prior 1.6%); November Preliminary Machine Tool Orders 14.2% (prior 16.8%)
  • Australia's November NAB Business Confidence 1 (prior 6); October Building Approvals -6.4% m/m (expected -6.4%; prior 12.0%)

---Equity Markets---

• Japan's Nikkei: +0.1%
• Hong Kong's Hang Seng: -1.3%
• China's Shanghai Composite: -0.4%
• India's Sensex: -0.5%
• South Korea's Kospi: -0.3%
• Australia's All Ordinaries: -0.4%

Major European indices are mixed, with buyers and sellers lacking conviction ahead of key central bank decisions this week and next. The FOMC is expected to announce a "hawkish cut" on Wednesday. The BOE and ECB have policy meetings next week. France has a key vote today on its social security budget; the UK registered some relatively weak retail sales heading into the holiday season; and ThyssenKrupp is down over 7% after its FY26 adjusted EBIT guidance failed to live up to stronger expectations.

• In economic data:
  • Germany's October Exports 0.1% m/m (expected -0.2%; prior 1.5%) and Imports -1.2% m/m (expected 0.2%; prior 3.1%)
  • UK's November BRC Retail Sales Monitor 1.2% (expected 2.6%; prior 1.5%)

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: +0.3%
• UK's FTSE 100: flat
• France's CAC 40: -0.5%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.1%

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

CVS Health (CVS 78.75, +2.22, +2.9%) is up nicely in the premarket after the company raised its FY25 guidance. The company also expects FY26 EPS to be in-line, with revenues below consensus. 

Equity futures point to a flattish opening amid another relatively quiet morning as investors await tomorrow's FOMC decision. 

The market has nearly priced in a 25-basis point rate cut at the December meeting, though the expectation is that the Fed will dampen the odds of an additional cut in January. 

Stocks mostly retreated yesterday, with ten S&P 500 sectors finishing lower, though a solid gain in the information technology sector limited losses and kept the major averages at or above their unchanged levels for December. 

NVIDIA (NVDA 187.01, +1.44, +0.8%) is up again in the premarket this morning after President Trump announced via Truth Social that he will allow the company to sell its advanced H200 chips to China in exchange for the U.S. government receiving 25% of the profits. 

Investors will receive a modest batch of economic data today, including the preliminary Q3 Productivity (Briefing.com consensus 3.5%) and Unit Labor Cost (Briefing.com consensus 0.9%) readings, along with the September JOLTS Job Openings Report. 

The November NFIB Small Business Optimism checked in at 99.0 (Briefing.com consensus 98.3) from a prior reading of 98.2.

In corporate news:

• OpenAI could pause side projects to focus on making improvements to ChatGPT, according to The Wall Street Journal.
• Autozone (AZO 3,675.00 -91.96, -2.4%) missed EPS expectations by $1.67 and reported revenues in-line.
• Home Depot (HD 342.80, -7.11, -2.0%) trades lower after reaffirming its FY26 outlook, expecting a 5% EPS slide. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were mostly lower Tuesday, registering modest losses on a lack of buyer conviction ahead of Wednesday's closely watched FOMC decision. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -1.3%, China's Shanghai Composite: -0.4%, India's Sensex: -0.5%, South Korea's Kospi: -0.3%, Australia's All Ordinaries: -0.4%.

In news:

• The Reserve Bank of Australia kicked things off Tuesday, voting unanimously to leave its cash rate unchanged at 3.60%, as expected; however, it was a more hawkish-minded decision, as RBA Governor Bullock reportedly said in the Q&A that rate hikes would need to be considered if inflation remains persistent.
• Japan had a JGB 5-yr auction that was met with okay demand. Finance Minister Katayama conveyed an intervention-minded tone, saying the action in the bond market is being closely monitored and that FX moves are concerning.
• The Bank of Korea, aiming to stabilize rising rates, is making its first bond purchase since 2022.
• Separately, China's President Xi talked up the idea of reinforcing growth momentum, while President Trump said he is going to allow NVIDIA to ship its H200 chips to approved customers in China, with 25% of any sales going to the U.S.

In economic data:

• Japan's M2 Money Stock 1.8% yr/yr (expected 1.4%; prior 1.6%); November Preliminary Machine Tool Orders 14.2% (prior 16.8%)
• Australia's November NAB Business Confidence 1 (prior 6); October Building Approvals -6.4% m/m (expected -6.4%; prior 12.0%)

Major European indices are mixed, with buyers and sellers lacking conviction ahead of key central bank decisions this week and next. STOXX Europe 600: -0.1%, Germany's DAX: +0.2%, UK's FTSE 100: +0.2%, France's CAC 40: -0.6%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.1%.

In news:

• The FOMC is expected to announce a "hawkish cut" on Wednesday.
• The BOE and ECB have policy meetings next week. France has a key vote today on its social security budget; the UK registered some relatively weak retail sales heading into the holiday season; and ThyssenKrupp is down over 7% after its FY26 adjusted EBIT guidance failed to live up to stronger expectations.

In economic data:

• Germany's October Exports 0.1% m/m (expected -0.2%; prior 1.5%) and Imports -1.2% m/m (expected 0.2%; prior 3.1%)
• UK's November BRC Retail Sales Monitor 1.2% (expected 2.6%; prior 1.5%)

[BRIEFING.COM] The stock market moved lower in the first session of a week that is likely to be defined by Wednesday's FOMC decision.

Stocks have seen some muted back-and-forth action leading up to this week's FOMC meeting, with the S&P 500 (-0.4%), Nasdaq Composite (-0.1%), and DJIA (-0.5%) all moving lower today as gains in the information technology sector (+1.0%) could not outweigh broader-market weakness. 

The other ten S&P 500 sectors finished with losses, the widest being that of the communication services sector (-1.8%). While the sector's underperformance is more easily attributed to weakness in its mega-cap components, Alphabet (GOOG 314.45, -7.64, -2.37%) and Meta Platforms (META 667.07, -6.35, -0.94%), new headlines around the takeover of Warner Bros. Discovery (WBD 27.23, +1.15, +4.41%) garnered the lion's share of media coverage today. 

Paramount Skydance's (PSKY 14.57, +1.20, +9.02%) unsolicited $30-per-share all-cash offer for Warner Bros. Discovery marks a new escalation in the takeover fight, directly challenging WBD's earlier cash-and-stock agreement with Netflix (NFLX 96.82, -3.42, -3.41%). According to The New York Post, WBD CEO David Zaslav has told associates he believes the Ellison family could raise its bid high enough to cover Netflix's breakup fee.

Netflix faced additional pressure after being downgraded to Neutral from Buy at Rosenblatt.

Tesla (TSLA 439.58, -15.42, -3.39%) also moved lower following a downgrade today, with Morgan Stanley downgrading the stock to Equal Weight from Overweight, citing valuation concerns.

The consumer discretionary sector (-1.5%) finished near the bottom of today's leaderboard as a result. Weakness in homebuilder names sent the iShares U.S. Home Construction ETF 2.1% lower.

Mega-cap weakness saw the Vanguard Mega Cap Growth ETF finish 0.2% lower, though soft participation across the broader market still saw the market-weighted S&P 500 (-0.4%) slightly outperform the S&P 500 Equal Weighted Index (-0.6%). 

Decliners outpaced advancers by a nearly 2-to-1 ratio on the NYSE and a roughly 5-to-4 clip on the Nasdaq, putting pressure on high-beta-heavy and defensive sectors alike. Six S&P 500 sectors faced a retreat of 1.0% or wider.

The information technology sector (+1.0%) was the lone bright spot, with some particularly strong performances across the sector's largest names. 

NVIDIA (NVDA 185.57, +3.16, +1.73%) and Broadcom (AVGO 401.10, +10.86, +2.78%) contributed to a 1.1% gain in the PHLX Semiconductor Index, with Broadcom trading higher after reports that Microsoft (MSFT 491.02, +7.86, +1.63%) is interested in shifting its custom chips business to the company. 

Meanwhile, Oracle (ORCL 220.56, +2.98, +1.37%) traded higher ahead of its earnings release Wednesday after the close. 

While the major averages did not successfully push toward record highs today, the technology sector's leadership kept the major averages at or above their unchanged levels for the month of December. The sector holds a 2.3% month-to-date gain for December, while the S&P 500 is flat over the same time period. 

Looking ahead, market participants continue to lean on expectations that the Fed will deliver a 25-basis-point rate cut on Wednesday, though sentiment has increasingly shifted toward the idea of a "hawkish "cut"-one in which the Fed eases policy this week but signals that additional reductions may be slow to follow.

U.S. Treasuries saw some modest selling interest in the overnight trade, tried to recover early in the cash session, but then came under renewed selling pressure that pushed yields higher across the curve despite some otherwise decent results for the $58 billion 3-year note auction. The 2-year note yield settled up two basis points to 3.58%, and the 10-year note yield settled up three basis points to 4.17%.

There were no economic data releases of note today. 

• Nasdaq Composite: +21.9% YTD
• S&P 500: +16.4% YTD
• Russell 2000: +13.0% YTD
• DJIA: +12.2% YTD
• S&P MidCap 400: +5.8% YTD