[BRIEFING.COM] The information technology sector (+0.4%) and PHLX Semiconductor Index (+0.5%) have both given up over half of their early gains, forcing the S&P 500 (flat) and Nasdaq Composite (flat) back to their base lines. Microsoft (MSFT 514.11, +16.18, +3.25%) remains near its opening highs, keeping the DJIA (+0.3%) in positive territory.

The final reading for the University of Michigan Consumer Sentiment Index for September increased to 48.1 (Briefing.com consensus: 47.8) from the preliminary reading of 47.8. The final reading for August was 51.7. In the same period a year ago, the index stood at 55.1. The key takeaway from the report is that high prices continue to adversely affect consumer sentiment, souring the short-run outlook for business conditions and expectations for year-ahead personal finances.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) hold similar gains this morning, supported by a rebound in tech stocks and easing oil prices.

The information technology sector (+0.9%) is a standout this morning as semiconductor stocks reclaim yesterday's losses, with the PHLX Semiconductor Index up 1.2%. Select software names are also surging higher, with Datadog (DDOG 278.46, +21.54, +8.38%) leading all S&P 500 names and a solid gain in Microsoft (MSFT 516.84, +18.90, +3.80%) keeping the Dow on pace with the other major indices.

The industrials sector (+0.7%) is also firmly higher, supported by electrical product names such as Generac (GNRC 205.83, +7.78, +3.93%) and Vertiv (VRT 252.48, +7.18, +2.93%) that often move in tandem with semiconductor stocks.

Action is relatively muted elsewhere, with the majority of S&P 500 sectors in close proximity to their unchanged levels. The energy sector (-1.0%) is a laggard as crude oil moves $1.27 (-1.3%) lower to $93.34 per barrel, while Meta Platforms (META 757.35, -20.24, -2.60%) gives back some of its recent strength, weighing on the communication services sector (-0.6%).

Just released, the final September University of Michigan Consumer Sentiment Index came in at 48.1 (Briefing.com consensus 47.8), slightly above the preliminary reading of 47.8.

Equity futures remain on track for a higher open this morning as oil prices move lower and Treasuries remain stable

Durable goods orders were flat month-over-month in August (Briefing.com consensus: -0.4%) following a downwardly revised 0.9% increase (from 1.1%) in July. Excluding transportation, orders were up 0.3% month-over-month (Briefing.com consensus: 0.5%) following an upwardly revised 0.7% increase (from 0.4%) in July.

The key takeaway from the report-and the breakthrough of note-is that nondefense capital goods orders, excluding aircraft, which are a proxy for business spending, jumped a robust 1.6% month-over-month.

The S&P 500 futures currently trade 19 points above fair value. 

Equity indices in the Asia-Pacific markets finished mixed on Friday, with Japanese stocks benefiting from some relief in oil and bond markets while Hong Kong remained under pressure and mainland Chinese markets were closed for the Mid-Autumn Festival. Japan's Nikkei 225 rose 1.4% to 66,364 for a fifth straight gain as Japan's 10-year yield eased from its highest level since 1996 and the yen weakened after President Trump reportedly expressed concern to Japan at the UN meeting earlier in the week about the weak yen. Technology shares led the advance, with Kioxia Holdings (+2.2%), Advantest (+2.8%), and Ibiden (+4.2%) higher, while Mitsubishi UFJ (+4.0%), Sumitomo Mitsui (+3.6%), and Mizuho Financial (+4.2%) paced financials. Hong Kong's Hang Seng fell 1.0% to 24,510 for a third consecutive decline as elevated global yields and inflation concerns continued to weigh on sentiment, with AIA (-2.8%), Xiaomi (-2.3%), and HKEX (-1.7%) among the laggards. Investors also digested the Trump-Xi summit and awaited China's PMI data, while the Shanghai Composite remained closed for the holiday.

European markets trade higher, carrying forward the improved tone as falling oil prices and easing government bond yields offer some relief to equities. Germany's DAX rises 0.7%, with Commerzbank (+2.4%), Deutsche Bank (+2.0%), and Siemens Energy among the leaders, despite German consumer sentiment weakening more than expected heading into October. France's CAC 40 gains 0.2% despite a 0.1% quarterly decline in private-sector payrolls, with Socit Gnrale (+2.9%), STMicroelectronics (+2.9%), and Schneider Electric (+2.0%) outperforming. The FTSE 100 advances 0.3% as miners rally, including Glencore (+3%), Anglo American (+3%), and Antofagasta and Fresnillo (+2%), while BP (-2%) and Shell (-1%) retreat with crude. Reports of a potential phased US-Iran agreement that could reopen the Strait of Hormuz provide the primary catalyst for the improved risk tone, while UK consumer confidence improved for a third consecutive month.

• In economic data:
  • Germany's October GfK Consumer Climate fell to -30.6 (expected -27.1; prior -26.8).
  • The U.K.'s September GfK Consumer Confidence improved to -13 (expected -16; prior -14).
  • France's Q2 nonfarm payrolls declined 0.1% quarter-over-quarter (expected -0.1%; prior -0.1%).
  • Spain's Q2 GDP increased 0.7% quarter-over-quarter (expected 0.7%; prior 0.6%) and 2.6% year-over-year (expected 2.7%; prior 2.7%).

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

Just released, durable goods orders were flat month-over-month in August (Briefing.com consensus -0.4%) after a revised 0.9% increase (from 1.1%) in July.

Excluding transportation, durable goods orders were up 0.3% month-over-month (Briefing.com consensus 0.5%) after increasing a revised 0.7% (from 0.4%) in July.

Equity futures point to a higher opening this morning as crude oil prices move lower and Treasury yields retreat from their overnight highs, providing some relief from two of the primary headwinds that pressured stocks yesterday.

Crude oil is moving lower amid renewed indications of potential diplomatic progress between the U.S. and Iran. Iranian Foreign Minister Abbas Araghchi presented a new proposal that would reopen the Strait of Hormuz within seven days and restart negotiations toward a "final deal." A White House official responded that the U.S. remains in a strong position and is in no rush to reach an agreement, according to CNN.

Treasury yields are also easing from their overnight highs following another sharp increase yesterday. The recent backup in rates continues to filter through the economy, with the 30-year fixed mortgage rate reaching 7.45%, according to CNBC.

The major averages enter Friday on track for a mixed week-to-date finish following considerable volatility in oil prices, Treasury yields, and technology stocks. The DJIA is on pace for a fourth consecutive weekly decline.

Today's remaining economic calendar:

• 8:30 AM ET: August Durable Orders; Briefing.com consensus -0.4%; prior 1.1%
• 8:30 AM ET: August Durable Goods -ex transportation; Briefing.com consensus 0.5%; prior 0.4%
• 10:00 AM ET: September Univ. of Michigan Consumer Sentiment - Final; Briefing.com consensus 47.8; prior 47.8

In corporate news:

• Senate Republicans planning vote on House-passed data center Ratepayer Protection Act next week, according to Politico.
• Akamai Technologies (AKAM 132.00, +21.59, +19.55%) signed an $11.6 billion, seven-year cloud deal with Anthropic, with potential expansion of up to $9 billion.
• Costco (COST 890.00, -6.48, -0.7%) beat EPS expectations by $0.21, reported revenues in-line, and reported comparable sales on an adjusted basis of +6.7%

Reviewing overnight developments:

According to Nikkei, trading in the Asia-Pacific region was mixed, while mainland Chinese and South Korean markets were closed for holidays.

In news:

• Nikkei reported that Japan's 10-year yield eased from its highest level since 1996, while the yen weakened after President Trump reportedly expressed concern about the currency.
• According to Nikkei, investors digested the Trump-Xi summit and awaited China's PMI data.

In economic data:

• There was no economic data of note

Equity Markets

• Japan's Nikkei: +1.4%
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: closed for holiday
• India's Sensex: +0.4%
• South Korea's Kospi: closed for holiday
• Australia's All Ordinaries: -0.6%

European trading has featured strength in banks, miners, and selected technology shares, while energy shares have lagged alongside lower crude oil prices.

In news:

• Reports of a potential phased U.S.-Iran agreement that could reopen the Strait of Hormuz have contributed to lower oil prices and government bond yields.

In economic data:

• Germany's October Gfk Consumer Climate -30.6 (expected -27.1; prior -26.8)
• U.K.'s September Gfk Consumer Confidence -13 (expected -16; prior -14)
• France's Q2 nonfarm payrolls -0.1% qtr/qtr (expected -0.1%; prior -0.1%)
• Spain's Q2 GDP 0.7% qtr/qtr (expected 0.7%; prior 0.6%) and 2.6% yr/yr (expected 2.7%; prior 2.7%)

Equity Markets:

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100: +0.3% Frances's CAC 40: +0.2%
• Italy's FTSE MIB: +1.0%
• Spain's IBEX 35: +1.1%

[BRIEFING.COM] The major averages recovered from a sharp morning decline to finish little changed on Thursday, as crude oil retreated substantially from its session high and alleviated one of the pressures that weighed on stocks early in the day. The S&P 500 and Nasdaq Composite ended flat, while the DJIA (-0.3%) logged a modest loss. The Russell 2000 (-0.1%) also finished near its flat line, while the S&P Mid Cap 400 declined 0.4%.

The session began on a considerably weaker note as crude oil surged above $96 per barrel and Treasury yields remained at multi-year highs. The combination weighed particularly heavily on growth stocks, sending the Nasdaq firmly lower and producing broad losses across the market. The tone improved considerably after a Reuters report indicated that a potential phased reopening of the Strait of Hormuz is being discussed. Oil quickly backed away from its highs, easing concerns that another sharp increase in energy prices would add to inflation pressures. WTI crude ultimately settled $2.22 higher (+2.4%) at $94.68 per barrel, still well below its intraday peak.

Treasury yields remained another significant headwind, with an attempted recovery in Treasuries ultimately failing amid concerns about additional Fed tightening, elevated government debt levels, and another soft Treasury auction. New York Fed President John Williams (voting FOMC member) said it is reasonable to expect another rate increase this year, while Philadelphia Fed President Anna Paulson (voting FOMC member) said that "some modest further tightening may be warranted" if conditions evolve as she expects.

The continued pressure on Treasuries made the recovery in technology and other growth stocks more notable, as those groups rebounded even without meaningful relief from the recent backup in rates. The information technology sector (-0.3%) consequently finished with a relatively modest loss after being down more than 1.0% earlier, while the PHLX Semiconductor Index (-0.3%) staged a similarly sharp recovery. Oracle (ORCL 139.52, -5.04, -3.48%) remained a notable laggard after Bloomberg reported that the company sent a "force majeure" notice to the developer of its New Mexico data center project.

Meta Platforms (META 777.59, +33.49, +4.50%) moved firmly in the opposite direction and provided an outsized boost to the major averages. Shares reached year-to-date highs and extended their gain since the beginning of September to roughly 36%, with the rally accelerating following the launch of Muse. The early reception to the AI agent has given investors a clearer path toward monetizing META's substantial AI investments, helping propel the communication services sector (+1.9%) to the top of the standings.

The health care sector (+0.7%) was another standout, supported by continued strength in Moderna (MRNA 194.82, +12.71, +6.98%) and Eli Lilly (LLY 1183.79, +32.80, +2.85%), while the energy sector (+0.4%) finished higher alongside the increase in crude oil. The financials sector ended flat.

Most other areas remained in negative territory despite the recovery in the headline averages. The materials (-1.0%), utilities (-1.0%), and consumer staples (-1.0%) sectors recorded the widest losses, followed by the industrials sector (-0.7%) and real estate sector (-0.4%). That weakness was reflected in market breadth, with decliners outpacing advancers by nearly 2-to-1 on the NYSE and roughly 3-to-2 on the Nasdaq late in the session.

There were also several pronounced stock-specific moves. Everpure (P 121.83, +12.18, +11.11%) surged to record highs following a bullish Analyst Day, while MGM Resorts (MGM 33.68, -4.17, -11.02%) was among the S&P 500's weakest performers after confirming that People Incorporated (PPLI 35.93, -0.04, -0.11%) withdrew its acquisition proposal.

Thursday's session ultimately looked considerably different at the close than it did near the morning lows. The retreat in oil from above $96 per barrel helped alleviate one of the market's primary early pressures, allowing technology, semiconductors, and mega-cap stocks to recover much of their early weakness despite Treasury yields remaining elevated. That helped the S&P 500 and Nasdaq erase their losses, although negative breadth and declines across most sectors pointed to a weaker underlying session than their flat finishes suggested.

U.S. Treasuries tried to recover from yesterday's sell-off, but that effort ultimately failed, even as reports suggested the U.S. and Iran are exploring discussions about a phased reopening of the Strait of Hormuz.  Like yesterday's 5-year note auction, today's $44 billion 7-year note auction saw some relatively soft dollar demand and foreign interest. Renewed selling hit the market after the results were released at 1:00 p.m. ET and left most securities at, or near, their highs for the session at the cash close. The 2-year note yield setteld up two basis points to 4.91%, and the 10-year note yield settled up seven basis points to 5.18%. 

• Nasdaq Composite: +15.9% YTD
• Russell 2000: +14.4% YTD
• S&P 500: +12.5% YTD
• S&P Mid Cap 400: +10.1% YTD
• DJIA: +6.8% YTD