[BRIEFING.COM] The stock market faced a considerable retreat today, with losses across the S&P 500 (-2.6%), Nasdaq Composite (-4.2%), and DJIA (-1.4%), resulting in lower weekly finishes for each index. For the S&P 500, this week's lower finish ends an impressive win streak at nine weeks.

The major averages faced a combination of pressures today as tech stocks extended yesterday's slide, while the Employment Situation report for May (172,000; Briefing.com consensus 96,000) beat headline expectations by a wide margin, placing upward pressure on Treasury yields amid rising expectations for a rate hike. The CME FedWatch Tool now assigns roughly a 71% probability to a rate hike at the December FOMC meeting, up from around 50% yesterday.

Growth-oriented pockets of the market generally lagged as a result, which compounded with yesterday's selloff across semiconductor stocks. The PHLX Semiconductor Index finished 10.3% lower, weighing heavily on the information technology sector (-5.3%).

Weakness was broad across the semiconductor group, with Broadcom (AVGO 385.74, -33.17, -7.92%) extending its post-earnings skid, memory names such as Micron (MU 864.01, -131.99, -13.25%) facing double-digit retreats, and other large chipmakers, including Intel (INTC 99.17, -12.61, -11.28%) and NVIDIA (NVDA 205.11, -13.55, -6.20%), moving sharply lower.

Software stocks also lagged, with Oracle (ORCL 213.41, -22.93, -9.70%) a notable decliner ahead of its earnings report next week. The iShares GS Software ETF finished 4.2% lower.

The consumer discretionary (-2.4%) and communication services (-1.7%) sectors also lagged as their mega-cap components, including Tesla (TSLA 391.00, -27.45, -6.56%) and Meta Platforms (META 593.00, -34.57, -5.51%) faced sharp retreats of their own.

The Vanguard Mega Cap Growth ETF finished 3.7% lower, contributing to the underperformance of the market-weighted S&P 500 (-2.6%) compared to the S&P 500 Equal Weighted Index (-1.5%).

On the earnings front, lululemon athletica (LULU 114.23, -10.69, -8.56%) was a notable laggard in the consumer discretionary sector after cutting its full-year outlook.

More defensive-oriented pockets of the market did garner some rotational interest today, but it was nowhere near enough support to keep the major averages from a lower finish. The consumer staples sector (+1.6%) led the way, while the utilities (+0.8%) and health care (+0.7%) sectors also posted gains.

Elsewhere, the real estate sector (+0.7%) notched a similar gain, while the financials sector (+0.1%) finished slightly higher.

Outside of the S&P 500, the Russell 2000 (-3.5%) underperformed amid the spike in Treasury yields.

Overall, today's selloff reflected the combination of an ongoing unwind across semiconductor stocks and a sharp repricing of Fed expectations following the stronger-than-expected employment report. Rising Treasury yields amplified pressure on growth-oriented areas of the market, while the limited rotation into defensive sectors was not nearly enough to offset the broad weakness across technology and mega-cap stocks.

U.S. Treasuries finished the week with sharp losses in most tenors, sending the 2-yr yield to a fresh closing high for the year while yields in the belly finished at two-week highs. The 2-year note yield settled up 11 basis points to 4.16% (+4 basis points this week) and the 10-year note yield settled up six basis points to 4.54% (-2 basis points this week). 

• Russell 2000: +14.2% YTD
• S&P Mid Cap 400: +11.8% YTD
• Nasdaq Composite: +10.6% YTD
• S&P 500: +7.8% YTD
• DJIA: +5.8% YTD

Reviewing today's data:

• May Nonfarm Payrolls 172K (Briefing.com consensus 96K); Prior was revised to 179K from 115KMay Nonfarm Private Payrolls 120K , (Briefing.com consensus 89K); Prior was revised to 177K from 123K, May Unemployment Rate 4.3% (Briefing.com consensus 4.3%); Prior 4.3%, May Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior 0.2%, May Average Workweek 34.3 (Briefing.com consensus 34.3); Prior 34.3
  • The key takeaway from the report is that it is manna for headline writers but still lacks some important sustenance to suggest it is a marker of an economy running on a full stomach. To wit: real average hourly earnings on a year-over-year basis are down 0.4%; there were job losses in the retail trade (-1,100), information (-2,000), and financial (-22,000) industries; and the percentage of unemployed workers for 27 weeks or more increased to 27.5% from 25.3%, which we will assume speaks to the difficulty of finding a new job with comparable compensation to the prior one.
• Consumer credit increased by $20.7 billion in April (Briefing.com consensus: $17.5 billion) following a downwardly revised $22.3 billion increase (from $24.9 billion) in March.
  
  • The key takeaway from the report is that revolving credit growth outpaced nonrevolving credit growth in April, suggesting households may be using short-term borrowing to offset pressure from slowing real income growth and depleted savings. If this trend persists, it could support spending in the near term but raise concerns about household balance-sheet stress later.

[BRIEFING.COM] The major averages remain on a path of session lows as this week's action draws to a close. Losses are paced by the information technology sector (-5.4%), with components of the PHLX Semiconductor Index (-9.0%) among the laggards.

On the data front, consumer credit increased by $20.7 billion in April (Briefing.com consensus: $17.5 billion) following a downwardly revised $22.3 billion increase (from $24.9 billion) in March.

The key takeaway from the report is that revolving credit growth outpaced nonrevolving credit growth in April, suggesting households may be using short-term borrowing to offset pressure from slowing real income growth and depleted savings. If this trend persists, it could support spending in the near term but raise concerns about household balance-sheet stress later.

[BRIEFING.COM] The S&P 500 (-2.4%), Nasdaq Composite (-3.8%), and DJIA (-1.2%) continue to drift lower as the market enters the final hour of the session, with all three indices now on pace for a lower week-to-date finish.

Reuters reports that several states are prepping a lawsuit in an attempt to block Paramount Skydance's (PSKY 10.11, -0.57, -5.38%) acquisition of Warner Bros. Discovery (WBD 26.03, -0.97, -3.58%), citing antitrust concerns.

[BRIEFING.COM] The S&P 500 (-2.08%) is in second place on Friday afternoon, down about 158 points.

Briefly, S&P 500 constituents Sandisk (SNDK 1556.07, -203.61, -11.57%), Super Micro Computer (SMCI 41.56, -5.34, -11.39%), First Solar (FSLR 279.10, -35.85, -11.38%) pepper the bottom of the standings despite a dearth of corporate news.

Meanwhile, Kimberly-Clark (KMB 99.34, +6.15, +6.60%) is near the top of the average.

[BRIEFING.COM] The Nasdaq Composite (-2.92%) is down about 782 points this afternoon, slipping to two-weeks lows.

Gold futures settled $139.70 lower (-3.1%) at $4,365.30/oz, down about -4.9% on the week, after a stronger-than-expected U.S. jobs report boosted the dollar and Treasury yields, reducing expectations for near-term Federal Reserve rate cuts. The metal's nearly -5% weekly decline reflects fading safe-haven demand and growing expectations that interest rates could remain elevated for longer.

Meanwhile, the U.S. Dollar Index is up about +0.6% to $100.09.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.78%) is in "first" place on Friday afternoon, down about 401 points with more aggressive losses being had elsewhere.

A look inside the DJIA shows that IBM (IBM 283.40, -18.37, -6.09%), Cisco (CSCO 123.98, -6.02, -4.63%), and NVIDIA (NVDA 207.78, -10.88, -4.98%) are trading firmly lower.

Meanwhile, Procter & Gamble (PG 146.68, +5.90, +4.19%) is today's top gain getter.

The DJIA is poised to end about +0.25% higher this week.

Also, at the top of the hour, Baker Hughes (BKR 64.03, -2.08, -3.15%) announced a weekly U.S. rotary rig count of 563, +1 w/w and +4 yr/yr.

[BRIEFING.COM] The S&P 500 (-1.8%), Nasdaq Composite (-3.0%), and DJIA (-0.9%) are in the midst of their toughest session of the week, which is poised to end a nine-week winning streak for the S&P 500. Technology stocks, and in particular, semiconductors, are under considerable pressure again today, while a stronger payroll increase of 172,000 in the May Employment Situation Report (Briefing.com consensus 96,000) has added upward pressure to the market's expectations of a rate hike.

The information technology sector (-4.6%) is steadily charting session lows, with weakness in prominent semiconductor names such as Advanced Micro Devices (AMD 472.71, -50.49, -9.65%) and Micron (MU 896.88, -99.11, -9.95%) sending the PHLX Semiconductor Index 7.8% lower.

Prominent software names such as Oracle (ORCL 214.85, -21.49, -9.09%) are under pressure as well, leaving the iShares GS Software ETF 3.6% lower.

Mega-cap stocks elsewhere are not faring much better, with Tesla (TSLA 396.14, -22.31, -5.33%) and Meta Platforms (META 609.82, -17.74, -2.83%) among the "magnificent seven" laggards, contributing to weakness in the Vanguard Mega Cap Growth ETF (-2.6%).

The consumer discretionary (-1.0%) and communication services (-1.0%) sectors are lower as a result.

Elsewhere in the consumer discretionary sector, lululemon athletica (LULU 114.28, -10.64, -8.52%) trades sharply lower after cutting its full year guidance after narrowly topping earnings estimates.

Growth stocks are broadly weaker today as Treasury yields rise in response to the May employment report, which has prompted traders to increase their expectations for further Fed tightening. The CME FedWatch Tool now assigns roughly a 71% probability to a rate hike at the December FOMC meeting, up from around 50% yesterday.

There is some rotation into more defensive-oriented sectors today, with the consumer staples (+2.1%), health care (+1.5%), and utilities (+0.9%) sectors all trading higher. The real estate sector (+1.1%) is the only other S&P 500 sector that holds a gain.

Outside of the S&P 500, the Russell 2000 (-2.9%) is underperforming amid the spike in yields.

Overall, today's weakness reflects a continuation of the semiconductor-led pullback that began yesterday, as investors took profits following an extended rally across AI and chip-related names. The stronger-than-expected employment report added another layer of pressure by pushing Treasury yields higher and increasing expectations for further Fed tightening, accelerating the retreat in growth-oriented areas of the market.

Reviewing today's data:

• May Nonfarm Payrolls 172K (Briefing.com consensus 96K); Prior was revised to 179K from 115KMay Nonfarm Private Payrolls 120K , (Briefing.com consensus 89K); Prior was revised to 177K from 123K, May Unemployment Rate 4.3% (Briefing.com consensus 4.3%); Prior 4.3%, May Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior 0.2%, May Average Workweek 34.3 (Briefing.com consensus 34.3); Prior 34.3
  • The key takeaway from the report is that it is manna for headline writers but still lacks some important sustenance to suggest it is a marker of an economy running on a full stomach. To wit: real average hourly earnings on a year-over-year basis are down 0.4%; there were job losses in the retail trade (-1,100), information (-2,000), and financial (-22,000) industries; and the percentage of unemployed workers for 27 weeks or more increased to 27.5% from 25.3%, which we will assume speaks to the difficulty of finding a new job with comparable compensation to the prior one.

[BRIEFING.COM] The S&P 500 (-1.6%), Nasdaq Composite (-2.6%), and DJIA (-0.7%) continue to move lower as losses across tech and other growth stocks widen.

Coinbase Global (COIN 150.13, -14.00, -8.53%) and Robinhood Markets (HOOD 81.53, -6.80, -7.70%) are the worst-performing components of the financials sector (-0.3%) as Bitcoin sinks below the $60,000 mark, reaching its lowest level since October 2024.

Additionally, CNBC reports that Strategy Inc (MSTR 118.00, -11.37, -8.79%) sold a small amount of its Bitcoin holdings, weighing on sentiment and causing liquidations that exacerbated the pressure.

[BRIEFING.COM] The S&P 500 (-1.4%), Nasdaq Composite (-2.3%), and DJIA (-0.6%) are charting session lows at midday.

In addition to weakness across its semiconductor components, the information technology sector faces pressure from software names, with the iShares GS Softwar ETF down 3.2%. Oracle (ORCL 217.38, -18.96, -8.02%) is a notable mega-cap laggard.

Elsewhere, the consumer discretionary sector (-1.0%), which opened to a decent gain, is now firmly lower. Tesla (TSLA 400.62, -17.82, -4.26%) moves sharply lower while lululemon athletica (LULU 112.91, -12.01, -9.61%) continues to face pressure after a disappointing earnings report. The Vanguard Mega Cap Growth ETF is down 2.2%.

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-2.0%), and DJIA (-0.3%) are lower just before midday as another bout of semiconductor weakness and rising Treasury yields weigh on sentiment.

The top-weighted information technology sector (-3.2%) is once again moving sharply lower as investors continue to rotate out of semiconductor names. The PHLX Semiconductor Index is down 5.8%, with weakness across large chipmakers such as Advanced Micro Devices (AMD 485.90, -37.30, -7.13%) , memory names such as Micron (MU 928.92, -67.08, -6.74%) , and other AI- related infrastructure names including Corning (GLW 185.38, -12.32, -6.23%). 

Similar to yesterday's action, there is some rotation into other pockets of the market, though the buying action is not as strong as the previous session. The defensive consumer staples (+1.7%), health care (+1.4%), and utilities (+0.9%) sectors are among the outperformers as rising yields weigh on more growth-oriented sectors.

The spike in yields is attributed to a strong jobs report for May putting upward pressure on the market's overall rate expectations. The CME FedWatch tool now assigns a roughly 71% probability to a rate hike at the December FOMC meeting, up from around 50% yesterday.

[BRIEFING.COM] The major indices are little changed from previous levels.

The consumer staples sector (+1.4%) is the best-performing S&P 500 sector today, with investors rotating into the more defensive-oriented sector amid an increase in Treasury yields and weakness in tech stocks.

Walmart (WMT 119.95, +2.21, +1.88%) is providing solid leadership after announcing last night it will launch express delivery from in-store restaurants, starting with Subway. The financial impact is expected to be small, at least initially. However, it is just the latest sign of its effort to become a one-stop destination for an increasing share of consumers' everyday spending.

[BRIEFING.COM] The major averages are trading in a relatively stable range, with the S&P 500 (-1.0%) and Nasdaq Composite (-1.8%) incurring the worst of the semiconductor-driven losses, while the DJIA (-0.3%) holds a more modest loss.

On the earnings front, lululemon athletica (LULU 116.09, -8.83, -7.07%) is trading sharply lower after a modest Q1 beat was overshadowed by weak Q2 guidance, a full-year cut, and signs that the North America recovery is moving in the wrong direction. Q1 EPS of $1.69 beat by a penny, while revenue of $2.47 bln also beat, but comp sales increased just 1%, or declined 2% in CC, decelerating from +3%, or +2% in CC, in Q4. LULU also guided Q2 EPS and revenue well below expectations and lowered its FY26 EPS outlook to $10.95-11.15 from $12.10-12.30. Management said sales moderated exiting Q1 and into Q2, pressured by negative brand commentary, softer traffic, and product launches that did not meet expectations.

At the same time, Heidi O'Neill does not take over as CEO until September, meaning investors still do not have a clear view of what the next phase of the reset will look like. The sharp guidance cut only adds to that uncertainty, as weaker North America trends, rising clearance needs, and continued margin pressure suggest the turnaround may require more time and investment than previously expected. International remains a bright spot, especially China, but this report makes it harder to argue that the recovery is gaining traction ahead of the leadership transition.

[BRIEFING.COM] The S&P 500 (-1.1%), Nasdaq Composite (-1.9%), and DJIA (-0.3%) are lower across the board as the market faces a continuation of yesterday's weakness across tech names.

The top-weighted information technology sector (-2.9%) opened to considerable weakness, once again facing pressure in its semiconductor components as the PHLX Semiconductor Index slides 5.8%. Coherent (COHR 391.11, -30.79, -7.30%) and onsemi (ON 122.00, -9.82, -7.45%) are among some of the worst-performing S&P 500 components, while NVIDIA (b212.03, -6.63, -3.03%) also lags early.

Losses are relatively modest elsewhere so far, though the energy sector (-0.9%) pulls back as crude oil retreats to the $91.50 per barrel mark.

There is some rotational interest amid the sell-off across AI-related names, though the strength is not as broad compared to yesterday's action, and is relatively concentrated across the defensive consumer staples (+1.7%), health care (+0.8%), and utilities (+0.7%) sectors.

The stock market is on track for a mostly lower opening as semiconductor stocks are set to face an extension of yesterday's weakness. The question now is whether the broader market will be able to outweigh weakness across chipmakers, as in yesterday's trade, or whether investors will buy into the dip. A potential ten-week win streak is at stake for the S&P 500, with the index entering today's session with a 0.1% week-to-date gain.

Nonfarm payrolls surged by 172,000, aided by a 52,000 increase in government jobs; the unemployment rate held steady at 4.3%, along with the labor force participation rate (61.8%), and average hourly earnings increased 0.3% month-over-month.

The key takeaway from the report is that it is manna for headline writers but still lacks some important sustenance to suggest it is a marker of an economy running on a full stomach. To wit: real average hourly earnings on a year-over-year basis are down 0.4%; there were job losses in the retail trade (-1,100), information (-2,000), and financial (-22,000) industries; and the percentage of unemployed workers for 27 weeks or more increased to 27.5% from 25.3%, which we will assume speaks to the difficulty of finding a new job with comparable compensation to the prior one.

The S&P 500 futures currently trade 45 points below fair value. 

Equity indices in the Asia-Pacific region finished the week on a lower note with South Korea's Kospi (-5.5%) deepening its reversal from a record high while the won weakened to a 17-year low against the dollar. South Korea's President Lee will visit France during the G-7 summit between June 15 and 17. The Reserve Bank of India left its policy rate at 5.25%, as expected, and announced that foreign institutional investors will be exempt from capital gains taxes on sales or transfer of government securities. Indonesia will be exempt from some U.S. tariffs, according to its Economic Ministry.

• In economic data:
  • Japan's April Household Spending 1.6% m/m (expected 0.8%; last -1.3%); -0.5% yr/yr (expected -1.5%; last -2.9%). April Overall Wage Income 3.5% yr/yr (expected 3.1%; last 3.1%), and Overtime Pay 4.2% yr/yr (expected 3.2%; last 3.1%). April Leading Index 115.9 (expected 114.4; last 114.0) and Coincident Indicator 1.1% m/m (expected -1.7%; last 0.3%)
  • South Korea's April Current Account surplus $28.29 bln (last surplus of $37.93 bln)
  • Singapore's April Retail Sales 0.3% m/m (last 3.4%); 5.4% yr/yr (last 4.6%)
  • India's Q4 GDP 7.8% (expected 7.2%; last 7.8%)

---Equity Markets---

• Japan's Nikkei: -1.3%
• Hong Kong's Hang Seng: -1.2% 
• China's Shanghai Composite: -0.7% 
• India's Sensex: -0.2% 
• South Korea's Kospi: -5.5% 
• Australia's ASX All Ordinaries: -0.7%

Major European indices are on track for a higher finish to the week. Eurozone's Q1 GDP was revised down to -0.2% from +0.1%, reflecting the first contraction since 2021. France's transportation minister said that there should be no concerns about jet fuel or gasoline supply levels during the summer. The market is all but certain that the European Central Bank will announce a 25-basis point rate hike on Thursday with another hike expected later this year. Ukraine's president sent a letter to Russia's leader, proposing a bilateral meeting to end the war.

• In economic data:
  • Eurozone's Q1 GDP -0.2% qtr/qtr (expected 0.1%; last 0.1%); 0.3% yr/yr (expected 0.8%; last 1.2%). Q1 Employment Change 0.1% qtr/qtr, as expected (last 0.2%); 0.5% yr/yr, as expected (last 0.7%)
  • U.K.'s May Halifax House Price Index -0.1% m/m (expected 0.0%; last -0.1%); 0.5% yr/yr (expected 1.0%; last 0.4%)
  • France's April Industrial Production 0.1% m/m (expected -0.2%; last 1.4%). April trade deficit EUR5.6 bln (expected deficit of EUR6.2 bln; last deficit of EUR6.4 bln) and April Current Account deficit EUR200 mln (last deficit of EUR900 mln)
  • Italy's April Retail Sales 0.0% m/m (expected 0.4%; last 0.8%); 1.6% yr/yr (last 3.8%)

---Equity Markets---

• STOXX Europe 600: +0.1% 
• Germany's DAX: unch 
• U.K.'s FTSE 100: +0.4% 
• France's CAC 40: +0.3%
• Italy's FTSE MIB: -0.2% 
• Spain's IBEX 35: +0.9% 

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

Just released nonfarm payrolls increased by 172,000 in May (Briefing.com consensus 96,000), from an upwardly revised prior increase of 179,000 (from 115,000).

Nonfarm private payrolls increased by 120,000 in May (Briefing.com consensus 89,000), from a revised prior increase of 177,000 (from 123,000).

The unemployment rate remained unchanged at 4.3% (Briefing.com consensus 4.3%).

Average hourly earnings increased by 0.3% (Briefing.com consensus 0.3%) from the prior level of 0.2%.

The average workweek remained at 34.3 hours (Briefing.com consensus 34.3), unchanged from the prior level.

Equity futures point to a lower opening this morning as semiconductor stocks are poised for an extension of yesterday's weakness. Losses across chipmaker and select other tech stocks saw the Nasdaq Composite finish lower yesterday, though a solid effort from the broader market helped the S&P 500 and DJIA finish higher, with the DJIA capturing new all-time highs.

Headlines are relatively quiet this morning, including on the geopolitical front. Crude oil is little changed, and reports continue to indicate limited negotiation progress between the U.S. and Iran.

On the economic data front, the market is set to receive the May Employment Situation report at 8:30 a.m. ET.

In corporate news:

• U.S. officials are talking with AI companies about the U.S. government taking stakes in some of those firms, according to NOTUS.
• Docusign (DOCU 48.70, -2.24, -4.4%) beat EPS expectations by $0.10, reported revenues in-line, and guided Q2 revenues in-line with FY27 revenues above consensus.
• Lululemon Athletica (111.88, -13.04, -10.4%) beat EPS expectations by $0.01, beat revenue expectations, guided Q2 EPS and revenues below consensus, and lowered its FY27 EPS and revenue expectations below consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region finished the week on a lower note with South Korea's Kospi (-5.5%) deepening its reversal from a record high while the won weakened to a 17-year low against the dollar. Japan's Nikkei: -1.3%, Hong Kong's Hang Seng: -1.2%, China's Shanghai Composite: -0.7%, India's Sensex: -0.2%, South Korea's Kospi: -5.5%, Australia's ASX All Ordinaries: -0.7%.

In news:

• South Korea's President Lee will visit France during the G-7 summit between June 15 and 17.
• The Reserve Bank of India left its policy rate at 5.25%, as expected, and announced that foreign institutional investors will be exempt from capital gains taxes on sales or transfer of government securities.
• Indonesia will be exempt from some U.S. tariffs, according to its Economic Ministry.

In economic data:

• Japan's April Household Spending 1.6% m/m (expected 0.8%; last -1.3%); -0.5% yr/yr (expected -1.5%; last -2.9%). April Overall Wage Income 3.5% yr/yr (expected 3.1%; last 3.1%), and Overtime Pay 4.2% yr/yr (expected 3.2%; last 3.1%). April Leading Index 115.9 (expected 114.4; last 114.0) and Coincident Indicator 1.1% m/m (expected -1.7%; last 0.3%)
• South Korea's April Current Account surplus $28.29 bln (last surplus of $37.93 bln)
• Singapore's April Retail Sales 0.3% m/m (last 3.4%); 5.4% yr/yr (last 4.6%)
• India's Q4 GDP 7.8% (expected 7.2%; last 7.8%)

Major European indices are on track for a higher finish to the week. STOXX Europe 600: +0.3%, Germany's DAX: +0.3%, U.K.'s FTSE 100: +0.3%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +1.0%.

In news:

• Eurozone's Q1 GDP was revised down to -0.2% from +0.1%, reflecting the first contraction since 2021.
• France's transportation minister said that there should be no concerns about jet fuel or gasoline supply levels during the summer.
• The market is all but certain that the European Central Bank will announce a 25-basis point rate hike on Thursday with another hike expected later this year.
• Ukraine's president sent a letter to Russia's leader, proposing a bilateral meeting to end the war.

In economic data:

• Eurozone's Q1 GDP -0.2% qtr/qtr (expected 0.1%; last 0.1%); 0.3% yr/yr (expected 0.8%; last 1.2%). Q1 Employment Change 0.1% qtr/qtr, as expected (last 0.2%); 0.5% yr/yr, as expected (last 0.7%)
• U.K.'s May Halifax House Price Index -0.1% m/m (expected 0.0%; last -0.1%); 0.5% yr/yr (expected 1.0%; last 0.4%)
• France's April Industrial Production 0.1% m/m (expected -0.2%; last 1.4%). April trade deficit EUR5.6 bln (expected deficit of EUR6.2 bln; last deficit of EUR6.4 bln) and April Current Account deficit EUR200 mln (last deficit of EUR900 mln)
• Italy's April Retail Sales 0.0% m/m (expected 0.4%; last 0.8%); 1.6% yr/yr (last 3.8%)

[BRIEFING.COM] Stocks finished mostly higher today as rotational buying across the broader market helped offset a pullback in tech names. The weakness across technology stocks kept the Nasdaq Composite (-0.1%) without a gain for the day, but broader support sent the DJIA (+1.7%) to fresh record highs while the S&P 500 (+0.4%) also notched a decent gain.

Tech stocks were poised for a lower session following decisive moves lower from Broadcom (AVGO 418.91, -60.32, -12.59%), Ciena (CIEN 535.63, -84.74, -13.66%), and CrowdStrike (CRWD 719.09, -28.52, -3.81%) following their earnings reports.

Broadcom in particular set the stage for a weaker showing across semiconductor names, with the PHLX Semiconductor Index retreating 2.2%. However, it is worth noting that the index finished much improved from the early weakness that saw it retreat nearly 6% this morning.

Meanwhile, the consumer staples sector (-0.1%) was the only other S&P 500 sector to close with a loss as nine sectors finished at or above their baselines.

The health care sector was the top mover today as nearly all of its components traded higher, with managed care names such as Humana (HUM 349.89, +22.35, +6.82%) and UnitedHealth (UNH 396.47, +19.47, +5.16%) leading the advance.

The financials sector (+2.6%) posted a similar gain, with major banking names notching solid gains while asset managers such as Blackstone (BX 118.55, +8.27, +7.50%) traded even higher following a manageable BCRED redemption update that reassured investors about private credit flows and demand.

Notably, the financials and health care sectors are the worst-performing S&P 500 sectors on a year-to-date basis, highlighting the rotational aspect of today's action.

Elsewhere, the communication services sector (+2.1%) outperformed as investors bought into the recent dip in Alphabet (GOOG 369.37, +13.69, +3.85%) that followed the announcement of an $84.75 billion equity capital raise to expand AI infrastructure and compute.

Outside of the S&P 500, the Russell 2000 (+1.5%) outperformed as Treasury yields moved lower, while the S&P Mid Cap 400 (+0.4%) captured a more modest gain.

Overall, today's session reflected a healthy broadening in market participation, with investors rotating into financials, health care, and other previously lagging groups as technology stocks took a breather. The ability of the S&P 500 and DJIA to advance despite a notable semiconductor pullback suggests underlying market sentiment remains constructive, particularly as investors continue to buy weakness rather than retreat from risk assets.

U.S. Treasuries traded with a positive bias in the overnight session before losing some strength in the cash session. Yields, however, were still lower across the board, with the front end to the intermediate end of the curve exhibiting relative strength in a bull-steepener trade. The 2-year note yield settled down four basis points to 4.05%, and the 10-year note yield settled down one basis point to 4.48%. 

• Russell 2000: +18.3% YTD
• Nasdaq Composite: +15.4% YTD
• S&P Mid Cap 400: +13.9% YTD
• S&P 500: + 10.8% YTD
• DJIA: +7.3% YTD

Reviewing today's data:

• Q1 Productivity-Rev. 0.3% (Briefing.com consensus 0.8%); Prior 0.8%, Q1 Unit Labor Costs-Rev. 1.8% (Briefing.com consensus 2.3%); Prior 2.3%
  • The key takeaway from the report is the understanding that productivity has picked up nicely from a year ago (+2.8%), while unit labor costs (+0.5%) have come down, tempering concerns about labor-based inflation pressures.
• Weekly Initial Claims 225K (Briefing.com consensus 216K); Prior was revised to 212K from 215K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.785 mln from 1.786 mln
  • The key takeaway from the report is that there isn't any concerning key takeaway. Granted, initial jobless claims-a leading indicator-were up from the prior week, but they remain at levels that are consistent with an otherwise solid labor market.