[BRIEFING.COM] The stock market had a somewhat choppy start to the week, with mixed strength in the broader market weighing against another session of semiconductor leadership. The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) finished modestly higher, though it was enough to secure record highs for the S&P 500 and Nasdaq Composite.

The PHLX Semiconductor started the week with a 2.3% gain, helping the top-weighted information technology sector (+0.8%) secure a higher finish. Lumentum (LITE 1053.09, +149.29, +16.52%) was the best-performing S&P 500 component after headlines that the stock will join the Nasdaq 100 Index next Monday, May 18, while Coherent (COHR 379.69, +44.43, +13.25%) and Qualcomm (QCOM 237.53, +18.44, +8.42%) advanced after Bloomberg reported executives from both companies were invited to President Trump's China trip later this week.

Memory names also posted impressive gains, and NVIDIA (NVDA 219.44, +4.24, +1.97%) was a "magnificent seven" standout amid a mostly lower session for the group. Tesla (TSLA 445.08, +16.73, +3.91%) was another notable exception to this trend, limiting broad losses in the consumer discretionary sector (-0.6%).

Electronic production equipment names such as Vertiv (VRT 367.92, +27.95, +8.22%) also traded higher as investors increasingly view the AI-buildout cycle as a catalyst for the group, helping the industrials sector (+1.0%) notch a solid gain today.

The materials sector (+1.4%) was another top mover as chemical and precious metal companies outperformed, while the energy sector (+2.6%) captured the widest gain amid an increase in oil prices.

President Trump lamented Iran's response to the latest U.S. peace proposal as "totally unacceptable", later telling reporters that the ceasefire with Iran is now on "massive life support." Crude oil futures settled today's session $2.68 higher (+2.8%) at $98.07 per barrel.

Five S&P 500 sectors traded lower today, though the losses were relatively modest. Only the communication services sector (-2.3%) finished with a loss of 1.0% or wider, facing pressure across multiple notable components. Alphabet (GOOG 386.77, -10.28, -2.59%) was a mega-cap laggard, while Netflix (NFLX 85.45, -2.04, -2.33%) moved lower after the Texas Attorney General filed a suit against the company, and The Trade Desk (TTD 21.52, -1.56, -6.76%) faced pressure after HSBC downgraded the stock to Reduce from Hold.

Meanwhile, Fox (FOX 61.18, +4.58, +8.09%) outperformed after topping earnings estimates.

This week is notably lighter on the earnings front, with only 11 S&P 500 companies set to report results. While earnings growth has largely exceeded expectations and provided the market with a major tailwind, focus could shift back towards geopolitical volatility and energy prices, especially given tomorrow's release of the April CPI report (Briefing.com consensus 0.6%). Despite the relatively subdued finish, continued semiconductor leadership and resilience at the index level kept the broader uptrend intact.

U.S. Treasuries started the week on a lower note with the belly leading a Monday slide that lifted yields back to levels from last Tuesday. The U.S. Treasury kicked off this week's note auction slate with a weak sale of $58 bln in 3-year notes ahead of tomorrow's $42 bln 10-year note auction. The 2-year note yield settled up six basis points to 3.95%, and the 10-year note yield settled up five basis points to 4.41%.

• Russell 2000: +15.7% YTD
• Nasdaq Composite: +13.1% YTD
• S&P Mid Cap 400: +11.6% YTD
• S&P 500: +8.3% YTD
• DJIA: +3.4% YTD

Reviewing today's data:

• April Existing Home Sales 4.02 mln (Briefing.com consensus 4.05 mln); Prior was revised to 4.01 mln from 3.98 mln
  
  • The key takeaway from the report is that affordability conditions improved, with mortgage rates lower than a year ago and average income gains exceeding home price gains, yet overall sales activity remained tepid. The exact reason why is hard to pinpoint. A range of factors could be pertinent, from tight supply and not being able to find the right home to a bet that mortgage rates will come down more or to fraying confidence in job security.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (flat), and DJIA (+0.1%) are defending their baselines entering the final half hour of today's session.

The market will receive an important inflation reading tomorrow in the form of the April CPI report (Briefing.com consensus 0.6%), which will provide color on how much of the oil-driven shock due to the Iran war is passing through the economy. Energy remains the main inflation driver as oil prices have surged to nearly four-year highs since the U.S.-Iran conflict began in late February.

Crude oil futures settled today's session $2.68 higher (+2.8%) at $98.07 per barrel, as President Trump's disapproval and dismissal of Iran's latest peace proposal throws the current ceasefire into question.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (flat) continue to trade mostly higher as the market enters the final hour of the session.

Sector strength remains mixed, with six S&P 500 sectors trading higher.

As for today's laggards, the communication services (-2.2%) and consumer staples (-1.3%) sectors still occupy the bottom spots on today's leaderboard. While weakness is relatively broad in both sectors, there are a few stock-specific moves related to individual headlines today.

Netflix (NFLX 85.36, -2.12, -2.43%) trades lower after Texas AG Ken Paxton filed suit against the company for allegedly spying on Texas Kids and consumers by illegally collecting users' data without their knowledge or consent.

Meanwhile, Tyson Foods (TSN 66.58, -1.80, -2.64%) moves lower after The Wall Street Journal reported that President Trump will suspend beef import tariffs and increase imports to help curb high beef prices.

[BRIEFING.COM] The S&P 500 (+0.34%) is in first place this afternoon, up about 25 points.

Briefly, S&P 500 constituents Vertiv (VRT 36918, +29.21, +8.59%), Western Digital (WDC 518.86, +38.86, +8.10%), and Coinbase (COIN 216.30, +15.14, +7.53%) dot the top of the standings despite a dearth of corporate news.

Meanwhile, Zoetis (ZTS 76.79, -6.04, -7.29%) is near the bottom of the average, continuing its post-earnings slide now down more than 30% over the last 2+ sessions.

[BRIEFING.COM] The Nasdaq Composite (+0.30%) is in second place on Monday afternoon, up about 78 points.

Gold futures settled $2.30 higher (+0.1%) at $4,733/oz, as investors positioned ahead of upcoming U.S. inflation data and maintained safe-haven exposure amid ongoing geopolitical tensions and elevated energy-market risks. The move was also supported by relatively steady Treasury yields and a stable dollar, with analysts framing the uptick as positioning-driven rather than the result of a new macro catalyst.

Meanwhile, the U.S. Dollar Index is near flat lines at $97.91.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.10%) is taking a tick higher in recent trading, up about 48 points.

A look inside the DJIA shows that Nike (NKE 42.71, -1.43, -3.24%), Walt Disney (DIS 104.69, -3.33, -3.08%), and IBM (IBM 222.95, -6.81, -2.96%) are underperforming.

Meanwhile, Honeywell (HON 220.30, +7.18, +3.37%) is today's top gain getter.

The DJIA is now just +0.01% higher on the month.

Elsewhere, recent action saw the Treasury complex slip to fresh lows for the day alongside some renewed strength in energy prices, which has lifted WTI crude back toward $100/bbl after President Trump dismissed Iran's latest peace proposal as a non-starter. Treasuries dipped to fresh lows in immediate reaction to today's $58 bln 3-yr note sale, which met weak demand. The sale drew a high yield of 3.965%, which tailed the when-issued yield by 0.6 basis points while the bid-to-cover ratio (2.54x) was below average (2.60x). Indirect takedown (63.0%) made for a silver lining, coming in above average (57.9%). Tomorrow, the U.S. Treasury will sell $42 bln in 10-yr notes.

[BRIEFING.COM] The S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) are extending their push into record territory as semiconductor stocks extend their recent rally, while mixed strength in the broader market keeps the DJIA (-0.1%) near its flat line.

The PHLX Semiconductor Index is up 2.1% to start the week, supported by gains in names such as Lumentum (LITE 1063.00, +159.20, +17.61%) and Coherent (COHR 376.98, +41.72, +12.44%), which are also the best-performing S&P 500 components today. Corning (GLW 205.40, +18.46, +9.87%)also holds a nearly double-digit gain, while NVIDIA (NVDA 220.92, +5.73, +2.66%) is a "magnificent seven" standout.

Strength across semiconductor names decisively outweighs some weakness in software, and the information technology sector (+0.8%) holds a nice gain as a result.

Elsewhere, the energy sector (+2.4%) holds the widest gain amid an increase in oil prices today. President Trump labeled Iran's latest peace proposal as "totally unacceptable" this morning, with oil jumping to session highs after the president recently told reporters that the ceasefire with Iran is now on "massive life support." Crude oil is currently up $4.10 (+4.3%) to $99.52 per barrel, though the market's reaction has been relatively muted.

The materials sector (+1.5%) also outperforms, supported by strength across chemical and precious metals producers, while continued gains in electrical equipment names amid the AI rally lift the industrials sector (+1.0%) as well.

Meanwhile, five S&P 500 sectors trade lower, though the losses are largely modest. The communication services sector (-1.5%) is pressured by weakness in mega-cap names outside of the technology sector and a sharp retreat in The Trade Desk (TTD 21.40, -1.68, -7.30%) after HSB downgraded the stock, while the consumer staples sector (-1.3%) faces weakness across its discount store names.

Outside of the S&P 500, the Russell 2000 (+0.7%) outperforms, while the S&P Mid Cap 400 (-0.1%) lags.

Overall, the market appears to be looking past the spike in oil prices as semiconductor strength continues to drive fresh record highs. 

Reviewing today's data:

• April Existing Home Sales 4.02 mln (Briefing.com consensus 4.05 mln); Prior was revised to 4.01 mln from 3.98 mln
  
  • The key takeaway from the report is that affordability conditions improved, with mortgage rates lower than a year ago and average income gains exceeding home price gains, yet overall sales activity remained tepid. The exact reason why is hard to pinpoint. A range of factors could be pertinent, from tight supply and not being able to find the right home to a bet that mortgage rates will come down more or to fraying confidence in job security.

[BRIEFING.COM] The major averages continue to trade in a stable range, little changed from previous levels.

The materials sector (+1.4%) is one of the best-performing S&P 500 sectors today, supported by strength in chemical names such as CF Industries (CF 123.02, +8.00, +6.96%) and Albemarle (ALB 215.06, +11.54, +5.67%), while a nearly 7% jump in silver prices has Freeport-McMoRan (FCX 64.60, +2.94, +4.78%) and Newmont Corporation (NEM 120.28, +3.77, +3.24%) higher as well.

Despite the relatively broad strength in the sector, Mosaic (MOS 22.02, -0.17, -0.77%) has slid to new 52-week lows after its Q1 earnings release. The move lower reflects mounting investor concerns around weakening fertilizer market conditions, soft pricing, and uncertain near-term demand trends. Management's commentary struck a notably cautious tone, emphasizing production curtailments, working capital discipline, and additional potential cost actions rather than signaling confidence in a near-term recovery.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (flat) are mostly higher at midday.

Strength at the sector level is now mixed, with five S&P 500 sectors trading lower. However, losses remain modest for the most part, with only the consumer staples (-1.4%) and communication services (-1.3%) sectors holding losses wider than 0.3%.

Weakness in Target (TGT 118.13, -7.12, -5.68%) and discount stores weighs on the consumer staples sector, while Alphabet (GOOG 391.27, -5.78, -1.46%) and Meta Platforms (META 603.00, -6.62, -1.09%) provide weak mega-cap leadership for the communication services sector.

Additionally, The Trade Desk (TTD 21.26, -1.82, -7.86%) is the worst-performing S&P 500 name after being downgraded to Reduce from Hold at HSBC, with a target price of $20.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.1%) are modestly higher just before midday, with the modest gains resulting in fresh intraday all-time highs for the S&P 500 and Nasdaq Composite.

The market continues to monitor developments between the U.S. and Iran, with President Trump deeming Iran's latest peace proposal as "totally unacceptable." Crude oil is currently up $1.83 (+1.9%) to $97.25 per barrel.

The market is largely overlooking the bump in oil prices, which is due in part to another day of solid gains across semiconductor stocks. The PHLX Semiconductor Index is currently up 2.1%, helping the information technology sector (+1.0%) rise to its best levels of the session.

Lumentum (LITE 1054.94, +151.14, +16.72%) and Coherent (COHR 376.85, +41.59, +12.41%) are the best performing S&P 500 components, while NVIDIA (NVDA 221.52, +6.32, +2.94%) is a "magnificent seven" standout.

Outside of the S&P 500, the Russell 2000 (+0.6%) is outperforming, while the S&P Mid Cap 400 (-0.3%) is modestly lower.

[BRIEFING.COM] The major averages remain modestly higher this morning.

Lumentum (LITE 1045.62, +141.82, +15.69%)is the best-performing S&P 500 component following news that the company will join the Nasdaq 100 Index, replacing CoStar Group (CSGP 32.54, -0.24, -0.72%) prior to the market open on Monday, May 18, 2026.

Elsewhere, Moderna (MRNA 57.22, +2.87, +5.28%) is another top-mover today amid headlines that the company is researching a vaccine for hantavirus, which is responsible for several deaths aboard a Dutch cruise ship.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.1%) are now mostly higher as the top-weighted information technology sector (+0.7%) rises to its best levels of the session.

Existing home sales increased 0.2% month-over-month in April to a seasonally adjusted annual rate of 4.02 million (Briefing.com consensus: 4.05 million) from an upwardly revised 4.01 million (from 3.98 million) in March. Sales were unchanged on a year-over-year basis.

The key takeaway from the report is that affordability conditions improved, with mortgage rates lower than a year ago and average income gains exceeding home price gains, yet overall sales activity remained tepid. The exact reason why is hard to pinpoint. A range of factors could be pertinent, from tight supply and not being able to find the right home to a bet that mortgage rates will come down more or to fraying confidence in job security

[BRIEFING.COM] Modest early gains across the S&P 500 (+0.1%) and Nasdaq Composite (flat) pushed the indices to fresh record highs, while the DJIA (flat) is also little changed.

Sector strength has broadened since the open, with eight S&P 500 sectors now trading higher. The energy sector (+1.5%) holds the widest gain as President Trump's condemnation of Iran's latest peace proposal resulted in a bump in oil prices, with WTI crude currently trading $1.32 (+1.4%) higher at $96.74 per barrel.

The materials sector (+1.2%) holds a similar gain as chemical and precious metals names advance this morning.

Importantly, semiconductor names are also among the outperformers, pushing the PHLX Semiconductor Index 0.8% higher while the broader information technology sector advances 0.3%. Qualcomm (QCOM 233.05, +13.96, +6.37%) is one of the best-performing S&P 500 name, while memory names are also higher and NVIDIA (NVDA 218.01, +2.81, +1.31%) is a mega-cap standout.

Meanwhile, other "magnificent seven" names are mostly lower, which puts pressure on the communication services (-1.0%) and consumer discretionary (-0.7%) sectors.

Just released, existing home sales increased 0.2% month-over-month in April to a seasonally adjusted annual rate of 4.02 million (Briefing.com consensus 4.05 million) from an upwardly revised 4.01 million (from 3.98 million) in March.

Equity futures now point to a modestly lower opening as the market awaits further developments in the U.S.-Iran conflict, with the two nations stuck in an impasse over nuclear negotiations.

Currently, crude oil is up $1.26 (+1.3%) to $96.68 per barrel.

Despite the negative tilt in stock futures, select AI names, particularly memory names, are on track to extend their recent rally at the open.

The S&P 500 futures currently trade 14 points below fair value.

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (+4.3%) powering to a fresh record while Japan's Nikkei (-0.5%) set a fresh record before turning lower. Preparations are underway for President Trump's visit to Beijing later this week. Treasury Secretary Bessent will visit Japan and South Korea over the next couple days ahead of President Trump's trip to China. China reported a solid trade surplus for April, but the report also showed a sharp drop in crude oil imports. South Korea's exports through the first ten days of May were up 43.7% yr/yr with chip exports spiking 149.8%.

• In economic data:
  • China's April trade surplus $84.80 bln (expected surplus of $83.10 bln; last surplus of $51.13 bln). April Imports 25.3% yr/yr (expected 15.2%; last 27.8%) and Exports 14.1% yr/yr (expected 7.9%; last 2.5%). April CPI 0.3% m/m (expected -0.1%; last -0.7%); 1.2% yr/yr (expected 0.9%; last 1.0%). April PPI 2.8% yr/yr (expected 1.7%; last 0.5%)
  • Australia's March Building Approvals -10.5% m/m, as expected (last 31.0%); 9.0% yr/yr, as expected (last 16.1%). March Private House Approvals 0.9% m/m, as expected (last 2.0%)

---Equity Markets---

• Japan's Nikkei: -0.5%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: +1.1%
• India's Sensex: -1.7%
• South Korea's Kospi: +4.3%
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade on a mostly lower note while Italy's MIB (+0.2%) outperforms. Defiant British Prime Minister Starmer, who is arguably the least popular prime minister in the U.K.'s history, has refused to resign despite his party being trounced in local elections last week. European Central Bank Vice President de Guindos said that rates should be managed prudently as growth weakens while policymaker Kocher said that the risk of a stagflationary trend can't be ruled out.

• No data today

---Equity Markets---

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

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

Shares of Mosaic (MOS 20.90, -1.29, -5.8%) are under pressure in the premarket after the company missed EPS estimates by $0.19 and beat revenue estimates. The company withdrew its phosphate production guidance as record-high sulfur prices continue to eat into its margins.

Equity futures point to a flattish opening following the sixth consecutive higher weekly finish for the S&P 500 and Nasdaq Composite. Strong earnings and a seemingly relentless demand for AI compute have powered the indices to fresh record highs in recent weeks, with the market largely overlooking hostilities between the U.S. and Iran.

Momentum around earnings growth could take a backseat this week as there is a considerable drop in the number of companies set to report, with only 11 S&P 500 components on the calendar. Still, the market is attempting to look past volatility on the geopolitical front, with futures trading near fair value despite a bump in oil prices this morning.

President Trump said via Truth Social that Iran's latest peace proposal is "totally unacceptable", though the ceasefire continues to hold as both sides continue to jockey for position.

Bloomberg reports that 40 countries will meet today to discuss a mission to escort ships through the Strait of Hormuz, which comes ahead of President Trump's summit with Chinese President Xi later this week.

On the data front, the market will receive the April Existing Home Sales report (Briefing.com consensus 4.05 million) at 10:00 a.m. ET, the only data release on the calendar.

In corporate news:

• Apollo Global Management (APO 133.27, +0.06, +0.0%) is in discussions to sell MidCap Financial Investment Corporation (MIFC 11.47, -0.24, -2.1%), according to The Wall Street Journal.
• Cerebras (CBRS) increases its IPO range to $150-$160 per share, according to Reuters.
• Circle Internet Group (CRCL 116.85, +3.18, +2.8%) beat EPS expectations by $0.02 and missed revenue estimates. The company also announced the launch of Circle Agent Stack, a new set of services and tools designed for the agentic economy.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (+4.3%) powering to a fresh record while Japan's Nikkei (-0.5%) set a fresh record before turning lower. Preparations are underway for President Trump's visit to Beijing later this week. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: +1.1%, India's Sensex: -1.7%, South Korea's Kospi: +4.3%, Australia's ASX All Ordinaries: -0.4%.

In news:

• Treasury Secretary Bessent will visit Japan and South Korea over the next couple days ahead of President Trump's trip to China.
• China reported a solid trade surplus for April, but the report also showed a sharp drop in crude oil imports.
• South Korea's exports through the first ten days of May were up 43.7% yr/yr with chip exports spiking 149.8%.

In economic data:

• China's April trade surplus $84.80 bln (expected surplus of $83.10 bln; last surplus of $51.13 bln). April Imports 25.3% yr/yr (expected 15.2%; last 27.8%) and Exports 14.1% yr/yr (expected 7.9%; last 2.5%). April CPI 0.3% m/m (expected -0.1%; last -0.7%); 1.2% yr/yr (expected 0.9%; last 1.0%). April PPI 2.8% yr/yr (expected 1.7%; last 0.5%)
• Australia's March Building Approvals -10.5% m/m, as expected (last 31.0%); 9.0% yr/yr, as expected (last 16.1%). March Private House Approvals 0.9% m/m, as expected (last 2.0%)

Major European indices trade on a mostly lower note while Italy's MIB (+0.2%) outperforms. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -1.2%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.5%.

In news:

• Defiant British Prime Minister Starmer, who is arguably the least popular prime minister in the U.K.'s history, has refused to resign despite his party being trounced in local elections last week.
• European Central Bank Vice President de Guindos said that rates should be managed prudently as growth weakens while policymaker Kocher said that the risk of a stagflationary trend can't be ruled out.

There is no economic data of note. 

[BRIEFING.COM] The major averages ended a record-setting week on a mostly higher note, with the S&P 500 (+0.8%) and Nasdaq Composite (+1.7%) capturing fresh record intraday and closing highs amid solid tech leadership. Strength in the broader market was mixed and kept the DJIA on its flatline.

The PHLX Semiconductor Index spent the entire session well above its flatline as investors bought into yesterday's dip across its components. Memory names Micron (MU 746.79, +100.16, +15.49%) and Sandisk (SNDK 1562.34, +222.38, +16.60%) rocketed to fresh all-time highs, while Advanced Micro Devices (AMD 455.19, +46.73, +11.44%) and Intel (INTC 124.90, +15.28, +13.93%) captured similar gains.

Elsewhere in the information technology sector, Akamai Tech (AKAM 147.71, +31.02, +26.58%) was the top-performing S&P 500 component after a mixed earnings report that featured an announcement that a leading frontier model provider (which Bloomberg later reported to be Anthropic) has committed to $1.8 billion over seven years for cloud infrastructure.

The technology sector was the only S&P 500 sector to capture a gain wider than 0.5%, as the broader market had a relatively muted session amid the semiconductor rally.

There was some lingering strength across other mega-cap tech names, particularly Tesla (TSLA 428.29, +16.50, +4.01%), that helped the consumer discretionary (+0.5%) sector trade higher and the communication services sector finish flat despite broad weakness in its components.

The Vanguard Mega Cap Growth ETF (+1.2%) notched a nice gain, which contributed to the outperformance of the market-weighted S&P 500 (+0.8%) relative to the S&P 500 Equal Weighted Index (+0.3%).

Meanwhile, the defensive health care (-0.9%) and utilities (-0.9%) sectors finished with the widest losses amid the outperformance in tech stocks.

The consumer staples sector (+0.1%) avoided a loss, due in part to Monster Beverage's (MNST 86.31, +10.34, +13.61%) post-earnings rally.

On the geopolitical front, the market showed a muted reaction to the U.S. and Iran exchanging fire in the Strait of Hormuz as the U.S. awaits a response from Iran on its latest peace proposal. Crude oil futures settled today's session $0.50 higher (+0.5%) at $95.39 per barrel.

This morning's release of the Employment Situation report for April, which showed very strong headline nonfarm payrolls growth (115,000; Briefing.com consensus 67,000), but average hourly earnings (0.2%; Briefing.com consensus 0.3%) showed a smaller-than-expected increase, reflecting some pressure on spending power, especially when accounting for the recent inflationary shock.

Despite some mixed participation beneath the surface, the S&P 500 and Nasdaq Composite still finished firmly higher for the week as semiconductor and mega-cap technology stocks reasserted their leadership following Thursday's brief pullback. Continued AI-driven enthusiasm, solid earnings growth, and resilience across large-cap tech names helped keep the market's momentum firmly intact heading into next week.

U.S. Treasuries finished a bumpy week with modest gains across the curve, though the 2-year note just missed a higher finish for the week while longer tenors recorded slim gains for the week. The 2-year note yield settled down three basis points to 3.89% (unchanged this week), and the 10-year note yield settled down three basis points to 4.36% (-2 basis points this week).

• Russell 2000: +15.3% YTD
• Nasdaq Composite: +12.9% YTD
• S&P Mid Cap 400: +11.9% YTD
• S&P 500: +8.1% YTD
• DJIA: +3.2% YTD

Reviewing today's data:

• The April Employment Situation Report featured a 115,000 increase in nonfarm payrolls, a 4.3% unemployment rate, and a bump in the average workweek to 34.3 hours (from 34.2). This was not an indisputably strong employment report, however. Average hourly earnings growth was weaker than expected, the labor force participation rate dipped, and the U-6 unemployment rate, which accounts for unemployed and underemployed workers, increased.
  
  • The key takeaway from the report, though, may just be found in a number that looks good on the surface but could be a harbinger of lower spending activity if inflation pressures aren't controlled. We're talking about the 3.6% year-over-year increase in average hourly earnings, which leaves real earnings up just 0.3% when pitted against the March CPI report or up just 0.1% when measured against the latest PCE Price Index. That doesn't provide a lot of discretionary spending cushion without taking on debt or dipping into savings.
• The preliminary reading for the University of Michigan Consumer Sentiment Index for May dropped to 48.2 (Briefing.com consensus: 50.5) from the final reading of 49.8 for April. In the same period a year ago, the index stood at 52.2.
  
  • The key takeaway from the report is that consumers are clearly concerned about rising costs and their ability to out-earn the inflation.
• Wholesale inventories increased 1.3% in March (Briefing.com consensus 1.4%), from the revised previous increase of 0.9% (from 0.8%).