[BRIEFING.COM] Stocks finished little changed on Wednesday after recovering from their afternoon lows, with a relatively balanced showing beneath the surface despite some weakness among the major averages. The S&P 500 finished flat, while the Nasdaq Composite (-0.1%) and DJIA (-0.2%) logged slim declines ahead of NVIDIA's (NVDA 209.95, -3.10, -1.46%) highly anticipated earnings report after the close.

The July Personal Income and Spending report did little to meaningfully alter the inflation picture, with the year-over-year headline and core PCE rates unchanged from June at 3.7% and 3.3%, respectively. Rate expectations initially shifted modestly in response, with the CME FedWatch Tool briefly raising the probability of a 25-basis-point rate hike at the September FOMC meeting to 40% from 36%, but those odds returned to 36% by the close.

Despite the muted index-level performance, participation was relatively balanced. Four S&P 500 sectors finished higher, breadth was nearly even on the NYSE, and the S&P 500 Equal Weighted Index (+0.3%) outperformed its market-cap-weighted counterpart. Decliners held a roughly 7-to-5 advantage over advancers on the Nasdaq.

The industrials sector (+1.1%) stood out on relatively broad strength within the group. Courier stocks were particularly strong, with C.H. Robinson (CHRW 151.73, +8.07, +5.62%) ranking among the top-performing S&P 500 components.

The information technology sector (+0.4%) also provided support despite weakness in NVIDIA (NVDA 209.95, -3.10, -1.46%) ahead of its earnings report. The PHLX Semiconductor Index (+0.2%) eked out a small gain following a choppy session, while software stocks were a relative bright spot despite post-earnings weakness in Intuit (INTU 345.88, -11.58, -3.24%).

Several company-specific developments remained influential elsewhere. The communication services sector (-0.7%) was among the laggards even as Meta Platforms (META 576.14, +6.09, +1.07%) finished higher following a volatile session.

The stock fluctuated after the company reached a proposed settlement with a bipartisan coalition of state attorneys general over claims that Facebook and Instagram harmed younger users. The consumer discretionary sector (-0.6%) also finished lower as NIKE (NKE 38.59, -0.89, -2.25%) and other athletic apparel stocks extended their retreat following Dick's Sporting Goods' (DKS 129.71, +5.40, +4.34%) disappointing earnings report Tuesday.

There was a notable exception outside the S&P 500, as Abercrombie & Fitch (ANF 147.68, +38.78, +35.61%) surged following its Q2 beat, with encouraging underlying sales trends beyond a sizable tariff-refund benefit providing some support to other retail and apparel names.

Meanwhile, the health care sector (-1.0%) finished at the bottom of the sector standings as Moderna (MRNA 149.66, -9.17, -5.77%) gave back more of its gains following last week's triple-digit surge on positive melanoma vaccine results, while Eli Lilly (LLY 1190.03, -43.63, -3.54%) was also a laggard. 

Oil prices generated some afternoon volatility but ultimately finished little changed. WTI crude had traded near $80 per barrel before the open before reversing sharply higher following reports that Iran and Oman agreed on a revenue-sharing arrangement for traffic through the Strait of Hormuz, although an IRGC spokesperson said the U.S. was still preventing the strait from reopening. The spike in crude coincided with the stock market's move to session lows, but oil subsequently surrendered the advance and settled $0.04 lower (-0.1%) at $82.25 per barrel. The energy sector (+0.3%) nevertheless finished with a modest gain.

Ultimately, Wednesday's session reflected a relatively balanced market awaiting its next major catalyst. The morning's inflation data produced little lasting change in rate expectations, while company-specific developments and swings in oil drove much of the intraday action. Attention now turns squarely to NVIDiA's earnings report after the close, which could set the tone for the semiconductor trade and broader technology sector on Thursday.

U.S. Treasuries retreated on Wednesday, pulling back from two days of solid gains in longer tenors. The U.S. Treasury sold $70 billion in 5-year notes to softer demand than what was seen at yesterday's 2-year note offering. The 2-year note yield settled up two basis points to 4.22%, and the 10-year note yield settled up three basis points to 4.66%. 

• Russell 2000: +21.1% YTD
• S&P Mid Cap 400: +15.7% YTD
• Nasdaq Composite: +12.4% YTD
• S&P 500: +12.1% YTD
• DJIA: +11.2% YTD

Reviewing today's data: 

• Weekly MBA Mortgage Applications Index -1.0%; Prior -0.4%
• July Personal Income 0.4% (Briefing.com consensus 0.2%); Prior 0.2%, July Personal Spending 0.2% (Briefing.com consensus 0.2%); Prior 0.3%, July PCE Prices 0.2% (Briefing.com consensus 0.1%); Prior -0.1%, July PCE Prices - Core 0.2% (Briefing.com consensus 0.2%); Prior 0.1%
  • The key takeaway from the report is that year-over-year rates for the PCE Price Index (3.7%) and the core-PCE Price Index (3.3%) remained at levels from June, so the report did little to alter the market's view of the latest income and spending trends, aside from an improvement in the personal savings rate.
• Q2 GDP - Second Estimate 1.5% (Briefing.com consensus 1.5%); Prior 1.5%, Q2 GDP Deflator - Second Estimate 6.4% (Briefing.com consensus 6.3%); Prior 6.3%
  • The key takeaway from the report is that the overall growth reading held steady as an upward revision to real final sales to private domestic purchasers (to 4.2% from 3.9%) offset a higher drag from imports.
• July Durable Orders 1.1% (Briefing.com consensus 0.5%); Prior was revised to 0.5% from 0.3%, July Durable Goods - ex transportation 0.4% (Briefing.com consensus 0.5%); Prior was revised to 1.1% from 0.6%
  • The key takeaway from the report is that the headline beat was driven by a 12.7% jump in orders for nondefense aircraft and parts while growth in orders excluding transportation undershot expectations slightly due in part to a pullback in new orders for computers and electronic products (-1.1%). However, these orders are still up a healthy 14.3% year-over-year.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.1%) are maintaining their slightly positive tilt with just half an hour left in the session.

In addition to NVIDIA's (NVDA 210.68, -2.37, -1.11%)earnings release after the close today, the market will hear from CrowdStrike (CRWD 190.66, +5.28, +2.85%) and Salesforce (CRM 204.91, -0.78, -0.38%) this evening, while a slate of retailer names are set to report before the open tomorrow.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.2%) are mixed as the market enters the final hour of the session.

The PHLX Semiconductor Index (+0.3%) is back in positive territory, which helps the information technology sector (+0.6%) move decently higher this afternoon as software stocks put together a solid showing.

NVIDIA (NVDA 211.17, -1.88, -0.88%) is still a relative laggard, trading lower ahead of its much-anticipated Q2 (Jul) earnings results today after the close. The stock enters the print with an extraordinarily high bar after Q1 Data Center revenue surged 92% to $75.2 billion. Investors likely need more than a routine beat. Sentiment hinges on whether NVIDIA can raise its outlook meaningfully and provide confidence that the Blackwell-to-Rubin transition will support another leg of growth. The bullish case remains straightforward: AI infrastructure spending continues to accelerate, Blackwell demand remains strong, NVIDIA's networking business is growing rapidly, and Rubin provides another major product cycle. But the market is increasingly focused on the size and durability of future growth rather than whether NVIDIA can beat estimates again. The biggest potential upside surprise could come from China, where the current outlook assumes no Data Center compute revenue. Conversely, investors will watch closely for signs of margin pressure, customer concentration, competition from custom silicon, or any moderation in hyperscaler AI spending.

[BRIEFING.COM] The S&P 500 (-0.04%) is hosting shallow losses to this point on Wednesday, down just 3 points.

Briefly, S&P 500 constituents Lumentum (LITE 940.22, +54.65, +6.17%), Arista Networks (ANET 201.74, +10.80, +5.66%), and Williams Cos (WMB 74.25, +3.17, +4.46%) dot the top of the standings despite a dearth of corporate news.

Meanwhile, Reddit (RDDT 155.96, -6.49, -4.00%) is near the bottom of the average after news that Meta Platforms (META 577.22, +7.17, +1.26%) reached an agreement with state AGs over claims that Facebook and Instagram harmed younger users.

[BRIEFING.COM] The Nasdaq Composite (-0.15%) is in second place on Wednesday afternoon, down about 39 points.

Gold futures settled $41.20 lower (-0.9%) at $4,653.30/oz, as hotter-than-expected U.S. inflation boosted expectations for higher-for-longer interest rates. A stronger dollar and uncertainty over Fed policy ahead of Chair Kevin Warsh's Jackson Hole remarks also weighed on the non-yielding metal.

Meanwhile, the U.S. Dollar Index is now about +0.3% higher to $99.17.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.21%) is in last place on Wednesday afternoon, down about 113 points.

A look inside the DJIA shows that Nike (NKE 38.61, -0.87, -2.20%), IBM (IBM 229.97, -4.22, -1.80%), and Goldman Sachs (GS 1041.22, -17.66, -1.67%) are underperforming.

Meanwhile, Honeywell (HON 219.73, +4.05, +1.88%) is today's top gain getter.

The DJIA is +0.35% higher week-to-date.

Elsewhere, recent action saw the 10-yr note and shorter tenors slip past their morning lows while the long bond remains a touch above its worst level of the day. Overall, intraday action has been confined to the downside after the complex retreated from opening highs in response to today's batch of economic data. Treasuries have held at their lows in immediate reaction to the just completed $70 bln 5-yr note offering, which drew weaker demand than yesterday's 2-yr note sale, though it was not bad. Today's auction drew a high yield of 4.393%, tailing the when-issued yield by 0.2 bps, while the bid-to-cover ratio (2.37x vs 2.38x average) and indirect takedown (61.5% vs 63.7% average) were a touch below average. This week's note auction slate will be capped off with a $44 bln 7-yr note offering tomorrow.

[BRIEFING.COM] The major averages initially saw relatively subdued trading following a full slate of economic data this morning, but stocks have since moved lower alongside a reversal in oil prices. The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.3%) are trading near their session lows shortly after midday.

The July Personal Income and Spending report did little to meaningfully alter the inflation picture, with the year-over-year headline and core PCE rates unchanged from June at 3.7% and 3.3%, respectively. Still, the CME FedWatch Tool now assigns a 40% probability to a 25-basis-point rate hike at the September FOMC meeting, up from 36% immediately before the data.

The tone beneath the surface has deteriorated as oil prices have climbed, leaving just four S&P 500 sectors in positive territory. Despite the broader market weakness, there has been no shortage of company-specific developments generating several notable moves across individual stocks. Meta Platforms (META 575.48, +5.44, +0.95%) has seen choppy trading following its proposed settlement with a bipartisan coalition of state attorneys general over claims that Facebook and Instagram harmed younger users. The stock currently trades higher, but broader weakness across the communication services sector (-1.0%) leaves the group among the worst-performing S&P 500 sectors today.

The consumer discretionary sector (-1.1%) is down similarly as NIKE (NKE 38.58, -0.90, -2.29%) and other athletic apparel stocks continue to retreat following Dick's Sporting Goods'(DKS 128.73, +4.42, +3.56%) disappointing earnings report yesterday. However, Abercrombie & Fitch (ANF 144.84, +35.94, +33.00%), which is not an S&P 500 component, has surged following its Q2 results, providing some support to other retail and apparel names.

The health care sector (-1.0%) is another laggard as Moderna (MRNA 146.78, -12.05, -7.59%) gives back some of its recent gains.

Meanwhile, the information technology sector (-0.1%) has oscillated around its flatline, with NVIDIA (NVDA 209.58, -3.48, -1.63%) among the mega-cap laggards ahead of its highly anticipated earnings report after the close. The PHLX Semiconductor Index is down 0.5%.

There are still some notable pockets of strength. The industrials sector (+0.9%) has outperformed since the open, with courier stocks such as C.H. Robinson (CHRW 152.41, +8.75, +6.09%) ranking among the top-performing S&P 500 components.

More recently, the energy sector (+1.2%) has moved to the top of the sector standings following reports that Iran and Oman agreed on a revenue-sharing arrangement for traffic through the Strait of Hormuz, although an IRGC spokesperson said the U.S. is still preventing the strait from reopening. WTI crude, which traded near $80 per barrel before the open, is now up $0.56 (+0.7%) at $82.92 per barrel, with the reversal in oil coinciding with the broader market's slide to session lows.

Overall, the market's initially muted response to this morning's economic data has given way to increased selling as the rebound in crude oil adds another source of uncertainty. With breadth weakening attention remains split between developments surrounding the Strait of Hormuz and NVIDIA's earnings after the close.

Reviewing today's data: 

• Weekly MBA Mortgage Applications Index -1.0%; Prior -0.4%
• July Personal Income 0.4% (Briefing.com consensus 0.2%); Prior 0.2%, July Personal Spending 0.2% (Briefing.com consensus 0.2%); Prior 0.3%, July PCE Prices 0.2% (Briefing.com consensus 0.1%); Prior -0.1%, July PCE Prices - Core 0.2% (Briefing.com consensus 0.2%); Prior 0.1%
  • The key takeaway from the report is that year-over-year rates for the PCE Price Index (3.7%) and the core-PCE Price Index (3.3%) remained at levels from June, so the report did little to alter the market's view of the latest income and spending trends, aside from an improvement in the personal savings rate.
• Q2 GDP - Second Estimate 1.5% (Briefing.com consensus 1.5%); Prior 1.5%, Q2 GDP Deflator - Second Estimate 6.4% (Briefing.com consensus 6.3%); Prior 6.3%
  • The key takeaway from the report is that the overall growth reading held steady as an upward revision to real final sales to private domestic purchasers (to 4.2% from 3.9%) offset a higher drag from imports.
• July Durable Orders 1.1% (Briefing.com consensus 0.5%); Prior was revised to 0.5% from 0.3%, July Durable Goods - ex transportation 0.4% (Briefing.com consensus 0.5%); Prior was revised to 1.1% from 0.6%
  • The key takeaway from the report is that the headline beat was driven by a 12.7% jump in orders for nondefense aircraft and parts while growth in orders excluding transportation undershot expectations slightly due in part to a pullback in new orders for computers and electronic products (-1.1%). However, these orders are still up a healthy 14.3% year-over-year.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.4%), and DJIA (-0.3%) are charting session lows just after midday.

The energy sector (+1.2%) is now the best-performing S&P 500 sector after Bloomberg reported that Iran and Oman have agreed on a revenue-sharing agreement for traffic through the Strait of Hormuz, though a spokesperson for the IRGC said the U.S. is still preventing the strait from being reopened. WTI crude was down near the $80 per barrel mark this morning before the open, but is now $0.74 (+0.9%) higher at $83.10 per barrel.

[BRIEFING.COM] The major averages remain in a stable range near their baselines at midday.

Intuit (INTU 339.63, -17.83, -4.99%)  is one of the worst-performing S&P 500 names today despite a strong Q4 (Jul) earnings report and a 15% dividend increase, as investors focus on softer-than-expected Q1 (Oct) and FY27 guidance. Revenue rose a healthy 13.7% year-over-year to $4.35 billion, topping expectations, while management outlined a deliberate shift toward accelerating customer acquisition and market share growth. The initial FY27 outlook calls for revenue growth of +9-10%, down from +13.9% in FY26, although the guidance is less concerning when accounting for a significant change in non-GAAP reporting that will now include share-based compensation expenses.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (-0.2%), and DJIA (-0.2%) are little changed just before midday, with the market showing a muted response to mostly in-line inflation data as attention remains centered on a busy slate of corporate developments.

Strength is relatively evenly split, with six S&P 500 sectors trading higher, led by the industrials sector (+1.1%) as courier and defense stocks outperform. Abercrombie & Fitch (ANF 149.72, +40.82, +37.48%) is a major standout after its Q2 beat featured encouraging underlying sales trends beyond a sizable tariff-refund benefit, helping lift some apparel and retail names, though atheltic apparel stocks continue to trend lower after Dick's Sporting Goods (DKS 128.81, +4.50, +3.62%) disappointing earnings yesterday.

Elsewhere, Meta Platforms (META 581.57, +11.52, +2.02%) has been volatile after reaching a proposed settlement with state attorneys general over teen social-media claims, while Moderna (MRNA 148.12, -10.71, -6.74%) continues its volatile stretch following last week's triple-digit surge and weighs on the health care sector (-0.6%).

The information technology sector (+0.1%) is little changed as NVIDIA (NVDA 210.63, -2.42, -1.14%) trades lower ahead of its highly anticipated earnings report after today's close.

[BRIEFING.COM] The major averages remain mostly lower, little changed from previous levels.

Meta Platforms (META 584.35, +14.30, +2.51%)  has fluctuated between modest losses and gains since announcing a proposed settlement with a bipartisan coalition of 51 attorneys general from states, territories, and the District of Columbia over claims that Instagram and Facebook harmed younger users. The agreement requires META to pay at least $12.1 billion and potentially up to $17.1 billion over ten years, while recording an approximately $10 billion Q3 legal expense that was not contemplated in its July expense outlook, exchanging a highly uncertain trial outcome for a large but more quantifiable liability.

META will introduce a default two-hour daily time limit for teens across Facebook and Instagram that can only be disabled with parental permission. The platforms will also restrict teen access between midnight and 6:00 a.m., mute notifications during school hours, and provide prompts after extended screen time. While the agreement reduces some regulatory uncertainty for META, it could establish a framework for other social-media platforms, with Snap (SNAP 5.50, -0.42, -7.01%) particularly exposed given its younger-skewing user base.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.4%), and DJIA (-0.3%) are now modestly lower as tech and mega-cap stocks begin to slip. The information technology sector (-0.2%) is now modestly lower, and the Vanguard Mega Cap Growth ETF (-0.3%) is moving below its flatline.

Meanwhile, retail and apparel stocks are mostly higher following Abercrombie & Fitch's (ANF 144.39, +35.49, +32.59%)Q2 results this morning, extending the group's recent strength. The apparel retailer beat expectations on both the top and bottom lines, with results encouraging even beyond a sizable tariff-refund benefit as underlying operating performance also exceeded expectations. Peers such as Urban Outfitters (URBN 78.97, +3.19, +4.21%) and American Eagle (AEO 17.40, +0.66, +3.97%) trade higher as well, and the State Street SPDR S&P Retail ETF is up 0.9%.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (flat) are little changed shortly after the open as strength is relatively evenly mixed this morning.

Six S&P 500 sectors trade higher, with the industrials sector (+1.1%) pacing the gains as courier names such as Ferguson Enterprises (FERG 239.29, +6.62, +2.85%) and C.H. Robinson (CHRW 147.82, +4.16, +2.90%) outperform amid another retreat in oil prices.

The materials sector (+0.6%) is another outperformer, while the information technology sector (+0.3%) holds a more modest gain. Several large software stocks such as Oracle (ORCL 149.33, +4.57, +3.16%) and Datadog (DDOG 233.83, +10.84, +4.86%) trade firmly higher, and the iShares Expanded Tech Software ETF (+0.3%) is up modestly, while PHLX Semiconductor Index is flat.

Meanwhile, the health care sector (-0.6%) lags as Moderna (MRNA 151.08, -7.74, -4.88%) continues to see choppy action following last week's triple-digit gain, while the sector's largest component, Eli Lilly (LLY 1205.13, -28.53, -2.31%) , also moves lower.

The communication services sector (-0.5%) holds a similar loss, with Meta Platforms (META 575.32, +5.27, +0.92%) already facing several sharp price swings this morning after reaching a settlement with state attorneys general in a teen social media addiction case.

So far, the market has not reacted strongly to this morning's economic data, which featured mostly in-line inflation readings. The CME FedWatch tool now assigns a 40% probability to a 25-basis-point rate hike at the September FOMC meeting, up from 36% immediately before the release of this morning's data.

Equity futures point to a mostly lower open, little changed in reaction to this morning's slate of economic data.

Personal Income increased 0.4% month-over-month in July (Briefing.com consensus 0.2%), personal spending was up 0.2% (Briefing.com consensus 0.2%), the PCE Price Index was up 0.2% (Briefing.com consensus 0.1%), and the core-PCE Price Index also rose 0.2% (Briefing.com consensus 0.2%). On a year-over-year basis, the PCE Price Index was up 3.7% versus 3.7% in June, and the core-PCE Price Index was up 3.3% versus 3.3% in June.

The key takeaway from the report is that year-over-year rates for the PCE Price Index (3.7%) and the core-PCE Price Index (3.3%) remained at levels from June, so the report did little to alter the market's view of the latest income and spending trends.

Durable goods orders rose 1.1% month-over-month in July (Briefing.com consensus 0.5%) after a revised 0.5% increase (from 0.3%) in June. Excluding transportation, durable goods orders were up 0.4% month-over-month (Briefing.com consensus 0.5%) after increasing a revised 1.1% (from 0.6%) in June.

The key takeaway from the report is that the headline beat was driven by a 12.7% jump in orders for nondefense aircraft and parts while growth in orders excluding transportation undershot expectations slightly due in part to a pullback in new orders for computers and electronic products (-1.1%). However, these orders are still up a healthy 14.3% year-over-year.

The second estimate of Q2 GDP showed no revision from the advance estimate of 1.5% (Briefing.com consensus 1.5%). The GDP Chain Deflator was revised up to 6.4% (Briefing.com consensus 6.3%) from 6.3% in the advance estimate.

The key takeaway from the report is that the overall growth reading held steady as an upward revision to real final sales to private domestic purchasers (to 4.2% from 3.9%) offset a higher drag from imports.

The S&P 500 futures currently trade 21 points below fair value. 

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note, though gains were limited to no more than 1.0%. Japan's Corporate Services Price Index grew 3.6% yr/yr, representing the fastest pace of increase since early 2015, while Australia's July CPI decelerated to 3.5% yr/yr from 3.8% against expectations for a bigger slowdown. Bank of Japan Governor Ueda will not attend the Jackson Hole Economic Symposium. Policymaker Tamura, who is a known hawk, will represent the BoJ at the upcoming meeting.

• In economic data:
  • Japan's July Corporate Services Price Index 3.6% yr/yr (expected 3.2%; last 3.4%)
  • Australia's July MI Leading Index 0.0% m/m (last 0.1%), July CPI 3.5% yr/yr (expected 3.3%; last 3.8%), and Q2 Construction Work Done -2.1% qtr/qtr (expected 0.5%; last 4.3%)
  • Singapore's July Industrial Production 2.3% m/m (expected 3.0%; last -7.0%); 6.8% yr/yr (expected 6.7%: last 7.5%)

---Equity Markets---

• Japan's Nikkei: +0.6%
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.6%
• India's Sensex: -0.2%
• South Korea's Kospi: +1.0%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade near their flat lines while France's CAC (+0.4%) outperforms slightly with leadership from ArcelorMittal and some industrial names. Expectations for a September rate hike from the ECB are solidifying, but additional increases are not expected at this time. ECB policymaker Schnabel said that rates must rise with the extent of the increase determined by data. Softwareone has climbed more than 10% after reporting strong results for the first half of the year.

• In economic data:
  • U.K.'s August CBI Distributive Trades Survey -48 (expected -35; last -26)
  • Swiss August ZEW Expectations 12.1 (last 10.0)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.7%
• Italy's FTSE MIB: +0.7%
• Spain's IBEX 35: +0.6%

The S&P 500 futures currently trade 20 points below fair value. 

Just released, Personal income increased 0.4% month-over-month in July (Briefing.com consensus: 0.2%) after a 0.2% increase in June, personal spending jumped 0.2% (Briefing.com consensus: 0.2%) after increasing 0.3% in June, the PCE Price Index was up 0.2% (Briefing.com consensus: 0.1%) after a 0.1% decrease in June, and the core-PCE Price Index rose 0.2% (Briefing.com consensus: 0.2%) after a 0.1% increase in June.

The second estimate for Q2 GDP was unchanged at 1.5% (Briefing.com consensus 1.5%), while the GDP Deflator was revised up to 6.4% from 6.3% (Briefing.com consensus 6.3%).

Durable goods orders rose 1.1% month-over-month in July (Briefing.com consensus 0.5%) after a 0.3% increase in June.

Excluding transportation, durable goods orders were up 0.4% month-over-month (Briefing.com consensus 0.5%) after increasing an upwardly revised 1.1% (from 0.6%) in June.

Equity futures are little changed this morning as the market prepares for what could easily be the most catalyst-driven session of the week. Investors will receive a full slate of economic data this morning, featuring the Personal Income and Spending report for July, which includes the PCE Price Index, the Fed's preferred inflation gauge. Currently, the CME FedWatch tool shows a 36% chance of a 25 basis point rate hike at the September FOMC meeting.

Stocks are coming off a winning session, boosted by strength in semiconductor stocks. NVIDIA (NVDA 2121.90, -0.15, -0.0%) was among the winners ahead of its earnings report after the close this afternoon.

Elsewhere, crude oil continues to move lower, with Secretary of State Marco Rubio telling allies that "for the time being" the U.S. is not expected to initiate new strikes against Iran, according to Axios.

In corporate news:

• Intuit (INTU 324.35, -33.46, -9.4%) beat EPS expectations by $0.45, beat revenue expectations, guided OctQ EPS and revenues below consensus, and guided FY27 EPS and revenues below consensus.
• Meta Platforms (META 578.20, +8.15, +1.4%) is discussing with state Attorney Generals a mid-trial settlement in a teen social media addiction case, according to Bloomberg.
• SoftBank (SFTBY) is mulling a $10-20 billion bond sale to finance a stake in OpenAI, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note, though gains were limited to no more than 1.0%. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.6%, India's Sensex: -0.2%, South Korea's Kospi: +1.0%, Australia's ASX All Ordinaries: -0.4%.

In news:

• Japan's Corporate Services Price Index grew 3.6% yr/yr, representing the fastest pace of increase since early 2015, while Australia's July CPI decelerated to 3.5% yr/yr from 3.8% against expectations for a bigger slowdown.
• Bank of Japan Governor Ueda will not attend the Jackson Hole Economic Symposium.
• Policymaker Tamura, who is a known hawk, will represent the BoJ at the upcoming meeting.

In economic data: 

• Japan's July Corporate Services Price Index 3.6% yr/yr (expected 3.2%; last 3.4%)
• Australia's July MI Leading Index 0.0% m/m (last 0.1%), July CPI 3.5% yr/yr (expected 3.3%; last 3.8%), and Q2 Construction Work Done -2.1% qtr/qtr (expected 0.5%; last 4.3%)
• Singapore's July Industrial Production 2.3% m/m (expected 3.0%; last -7.0%); 6.8% yr/yr (expected 6.7%: last 7.5%)

Major European indices trade near their flat lines while France's CAC (+0.4%) outperforms slightly with leadership from ArcelorMittal and some industrial names. STOXX Europe 600: +0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: -0.2%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.3%.

In news: 

• Expectations for a September rate hike from the ECB are solidifying, but additional increases are not expected at this time.
• ECB policymaker Schnabel said that rates must rise with the extent of the increase determined by data.
• Softwareone has climbed more than 10% after reporting strong results for the first half of the year.

In economic data:

• U.K.'s August CBI Distributive Trades Survey -48 (expected -35; last -26)
• Swiss August ZEW Expectations 12.1 (last 10.0)

[BRIEFING.COM] Stocks ended Tuesday with modest gains as renewed buying interest in semiconductor stocks helped offset a mixed showing across the broader market. The Nasdaq Composite (+0.7%) led the major averages, while the S&P 500 (+0.3%) and DJIA (+0.3%) logged smaller advances during a session that otherwise featured relatively limited conviction.

Chip stocks provided the clearest source of leadership after coming under considerable pressure over the past several sessions. The PHLX Semiconductor Index gained 1.4%, lifting the information technology sector (+1.0%) to the top of the sector standings. NVIDIA (NVDA 212.95, +4.47, +2.14%) broke a seven-session losing streak ahead of its earnings report Wednesday after the close, while Super Micro Computer (SMCI 38.45, +3.28, +9.33%) ranked among the best-performing S&P 500 components after Cisco (CSCO 111.11, +0.88, +0.80%) expanded its NVIDIA AI partnership to include Supermicro rack-scale systems in its Secure AI Factory.

Strength among large chipmakers also helped the Vanguard Mega Cap Growth ETF rise 0.6%, although performance among mega-cap stocks outside of the semiconductor trade was less consistent. SpaceX (SPCX 137.97, +2.97, +2.20%) was a notable standout after confirming that construction of its Starbase launch facility in Louisiana will begin in 2027, while Meta Platforms (META 570.05, +11.03, +1.97%) provided support for the communication services sector (+0.5%).

The health care sector (+0.3%) also edged higher, with Moderna (MRNA 158.83, +19.94, +14.36%) again standing out. The stock continued its volatile stretch following last week's triple-digit surge on positive melanoma vaccine results, rebounding sharply after some recent profit-taking.

The positive finish for the major averages contrasted with weakness across several areas that had performed better recently. Retail stocks generally struggled, contributing to a 0.9% decline in the consumer staples sector and a 0.3% loss in the consumer discretionary sector. Athletic apparel stocks were a particularly weak pocket following Dick's Sporting Good's (DKS 124.31, -55.02, -30.68%) earnings report, which featured disappointing results from Foot Locker. NIKE (NKE 39.48, -1.28, -3.13%) finished as the worst-performing DJIA component, while Deckers Outdoor (DECK 88.74, -3.34, -3.63%) and lululemon athletica (LULU 118.33, -4.45, -3.62%) were also notable S&P 500 laggards as the results weighed on sentiment across the group.

Oil provided another notable crosscurrent. WTI crude settled $2.69 lower (-3.2%) at $82.29 per barrel amid a relatively quiet day of geopolitical headlines, sending the energy sector (-1.7%) to the bottom of the sector standings. The decline in crude was more constructive for oil-sensitive areas of the market, while Treasury yields also moved lower across the curve.

Ultimately, Tuesday's advance was driven more by a return to semiconductor stocks than by broad-based buying. The rebound in chips was enough to lift the major averages and give the Nasdaq a clear edge, while broader participation was mixed. The subdued overall tone came ahead of a potentially more consequential Wednesday, when the July Personal Income and Spending report will provide an update on the Fed's preferred inflation gauge before NVIDIA reports earnings after the close.

U.S. Treasuries had a solid outing on Tuesday, adding to their gains from the start of the week with some help from falling energy prices. The U.S. Treasury kicked off this week's note auction slate with a good $69 billion 2-year note offering ahead of tomorrow's $70 billion 5-year note sale. The 2-year note yield settled down four basis points to 4.20%, and the 10-year note settled down seven basis points to 4.64%.

• Russell 2000: +21.3% YTD
• S&P Mid Cap 400: +15.0% YTD
• Nasdaq Composite: +12.5% YTD
• S&P 500: +12.2% YTD
• DJIA: +11.5% YTD

Reviewing today's data:

• June FHFA Housing Price Index 0.0%; Prior 0.3%
• July S&P Case-Shiller Home Price Index 2.1% (Briefing.com consensus 1.8%); Prior 1.6%
• August Consumer Confidence 89.4 (Briefing.com consensus 90.6); Prior was revised to 90.2 from 90.8
  • The key takeaway from the report is that the overall decrease in sentiment was owed to another worsening in the Expectations Index, which was somewhat offset by a rebound in the Present Situation Index after three months of deterioration.
• July New Home Sales 607K (Briefing.com consensus 620K); Prior was revised to 678K from 628K
  • The key takeaway from the report is that changes in monthly sales varied greatly by region, but the overall pace of sales slowed. This increased the month's supply of new homes for sale, which could result in some pressure on prices.