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

Micron (MU 455.32, -6.42, -1.39%) is trading lower following its Q2 report, despite delivering a blowout beat-and-raise quarter, as investors appear to be taking profits and reacting cautiously to the company's aggressive capital spending plans. The company posted record revenue, margins, and EPS, with results and forward guidance far exceeding expectations, underscoring the powerful tailwinds from AI-driven memory demand. However, MU's announcement of a significant step-up in CapEx-particularly into FY27-has raised concerns about potential oversupply risk and capital intensity at the cycle's peak.

While the stock remains firmly lower for the day, it is worth noting that it has improved considerably from earlier session lows, which saw it trade more than 7.0% lower. 

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-0.9%), and DJIA (-0.9%) continue to trade lower an hour into today's session. 

The consumer discretionary sector (-1.5%) now sits near the bottom of the leaderboard. Tesla (TSLA 380.80, -11.98, -3.05%) is a "magnificent seven" laggard amid a tough day for mega-cap stocks, while DoorDash (DASH 158.45, -6.54, -3.96%) and Carvana (CVNA 276.92, -14.24, -4.89%) trade even lower. 

New home sales declined 17.6% month-over-month in January to a seasonally adjusted annual rate of 587,000 (Briefing.com consensus: 719,000), significantly undershooting expectations. On a year-over-year basis, new home sales were down 11.3%.

The key takeaway from the report is that sharp declines were registered in all regions, despite declines in both median and average selling prices, which suggests some demand attrition in the face of elevated mortgage rates and perhaps burgeoning concerns about job security.

[BRIEFING.COM] Stocks opened to broad pressure again this morning, with the S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and DJIA (-0.5%) all trading below their respective 50-day moving averages. 

Oil is up $0.69 (+0.7%) to $96.15 per barrel, helping the energy sector (+0.4%) extend this week's gains to 1.7%. Reports of Iran striking energy infrastructure targets in the Persian Gulf region has sent oil higher this morning and further stoked concerns that the conflict will last an extended period of time. 

Elsewhere, the health care sector (+0.2%) sees some modest bargain hunting after weakness in previous sessions. 

Meanwhile, rising energy costs and a severely diminished rate cut forecast have the broader market trending lower. While losses are widespread, they are relatively modest, though there are a few notable underperformers in the mix. 

The materials sector (-2.3%) holds the widest loss amid a considerable pullback in precious metals prices, with gold down 5.4% and silver down 10%.

The industrial sector (-1.3%) also moves firmly lower, with particular weakness across aerospace and defense names sending the iShares DJ Aerospace ETF 2.8% lower. 

Just released, new home sales declined 17.6% month-over-month in January to a seasonally adjusted annual rate of 587,000 units (Briefing.com consensus: 719,000) versus 745,000 units in December.

Wholesale inventories decreased 0.5% in January (Briefing.com consensus 0.2%), from a downwardly revised prior decrease of 0.1% (from 0.2%). 

The stock market is on track for another lower opening this morning as the market wrestles with rising oil prices and severely depleted odds of any easing from the Fed this year. 

Initial jobless claims for the week ending March 14 decreased by 8,000 to 205,000 (Briefing.com consensus: 215,000). Continuing jobless claims for the week ending March 7 increased by 10,000 to 1.857 million.

The key takeaway from the report is that the low level of initial jobless claims will keep the Fed preoccupied for now with the inflation side of its mandate, which is to say it won't be inclined to cut rates.

The S&P 500 futures currently trade 47 points below fair value.

Equity indices in the Asia-Pacific region slumped badly Thursday amid the fallout from post-FOMC selling in the U.S., rising energy prices, and the initial sell-the-news response to Micron's (MU) blowout earnings report. Ongoing concerns about the Iran war lasting longer than feared and doing more economic damage than feared through the channel of high energy prices weighed on investor sentiment. The Bank of Japan left its key policy rate unchanged at 0.75%, as expected, with the uncertainty about the Middle East unrest contributing to the decision. It was an 8-1 vote. The lone dissenter (Takata) wanted a 25-basis-point hike.

• In economic data
  • Japan's January Core Machinery Orders -5.5% m/m (expected -9.6%; prior 19.1%) and 13.7% yr/yr (expected 10.5%; prior 16.8%); January Industrial Production 4.3% m/m (expected 2.2%; prior 0.6%) and Capacity Utilization 2.9% (prior 0.5%)
  • Australia's February Employment Change 48.9K (expected 20.8K; prior 26.1K); February Unemployment Rate 4.3% (expected 4.1%; prior 4.1%)

---Equity Markets---

• Japan's Nikkei: -3.4%
• Hong Kong's Hang Seng: -2.0%
• China's Shanghai Composite: -1.4%
• India's Sensex: -3.3%
• South Korea's Kospi: -2.7%
• Australia's All Ordinaries: -1.8%

Major European indices are under selling pressure, clipped by the spike in energy prices that was precipitated by Iran's retaliation on Qatar's LNG facilities at Ras Laffan. Brent crude futures topped $118.00/bbl but are now at $114.34/bbl, up 6.5%. Concerns about a pickup in inflation and a slowdown in growth have cut risk appetite. At the moment, sovereign bond markets appear more concerned with the prospect of higher inflation and an extended delay for additional rate cuts. That concern is reflected in higher yields across European bond markets. The Swiss National Bank kept its key policy rate unchanged at 0.00%, as expected. Sweden's Riksbank said its repo rate is not likely to change for some time. The Bank of England and the ECB will be out with rate decisions later this morning. Both are expected to leave their key policy rates unchanged.

• In economic data:
  • Eurozone's Q4 Labor Cost Index 3.3% yr/yr (prior 3.4%)
  • U.K.'s February Claimant Count Change 24.7K (expected 25.8K; prior 4.7K); January Avg. Earnings Index plus Bonus 3.9% (expected 3.9%; prior 4.2%); January Unemployment Rate 5.2% (expected 5.3%; prior 5.2%)

---Equity Markets---

• STOXX Europe 600: -2.5%
• Germany's DAX: -3.0%
• U.K.'s FTSE 100: -2.8%
• France's CAC 40: -2.2%
• Italy's FTSE MIB: -2.5%
• Spain's IBEX 35: -2.5%

The S&P 500 futures currently trade 37 points below fair value. 

Just released, initial jobless claims for the week ending March 14 decreased by 8,000 to 205,000 (Briefing.com consensus 215,000).

Continuing jobless claims for the week ending March 7 increased by 10,000 to 1.857 million, from a downwardly revised prior level of 1.846 million (from 1.850 million). 

The Philadelphia Fed Index expanded to 18.1 in March (Briefing.com consensus 4.7), from a prior reading of 16.3.

Equity futures point to a lower opening this morning after stocks finished lower yesterday, with the Nasdaq Composite and DJIA closing below their 200-day moving averages, while the S&P 500 finished just modestly above its own. 

Stocks faced a combination of pressures yesterday, but the bulk of the losses were felt in the afternoon in response to the March FOMC meeting. The committee voted 11-1 to keep the fed funds target range unchanged, but the summary of economic projections (SEP) showed a bump in the median estimate for change in real GDP to 2.4% from 2.3% and PCE inflation to 2.7% from 2.4%. Fed Chair Jerome Powell noted in his press conference that officials are still looking for goods inflation to come down as tariffs work their way through the system and that the higher inflation expectations are not solely due to rising oil prices.

Developments on the energy front are back in focus this morning after Iran followed through on its promise to strike energy targets across the region in retaliation for an Israeli strike on an Iranian gas field. Qatari officials said Iranian missiles caused extensive damage at a key hub for liquefied natural gas, according to The Wall Street Journal. Additionally, Reuters reports that the Trump administration is sending thousands of troops to the Middle East, which could weigh on the market's expectations for a timely end to the war with Iran. 

Crude oil is currently up $1.88 (+2.0%) to $97.34 per barrel. 

On the earnings front, Micron (MU 430.19, -31.54, -6.8%) is the latest major tech company to move sharply lower despite a blowout beat-and-raise earnings report. 

In corporate news: 

• EU natural gas prices surged more than 20%, according to The Wall Street Journal.
• Elliot Investment Management builds a stake in Align Technology (ALGN 185.00, +12.59, +7.3%), according to Bloomberg. 
• Alibaba (BABA 127.56, -6.87, -5.1%) missed EPS estimates by RMB 4.42 and missed revenue expectations. 
• Micron (MU 430.19, -31.54, -6.8%) beat EPS expectations by $3.01, beat revenue expectations, guided Q3 EPS and revenues above consensus, and increased its dividend. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region slumped badly Thursday amid the fallout from post-FOMC selling in the U.S., rising energy prices, and the initial sell-the-news response to Micron's (MU) blowout earnings report. Japan's Nikkei: -3.4%, Hong Kong's Hang Seng: -2.0%, China's Shanghai Composite: -1.4%, India's Sensex: -3.3%, South Korea's Kospi: -2.7%, Australia's All Ordinaries: -1.8%.

In news:

• Ongoing concerns about the Iran war lasting longer than feared and doing more economic damage than feared through the channel of high energy prices weighed on investor sentiment.
• The Bank of Japan left its key policy rate unchanged at 0.75%, as expected, with the uncertainty about the Middle East unrest contributing to the decision.
• It was an 8-1 vote. The lone dissenter (Takata) wanted a 25-basis-point hike.

In economic data:

• Japan's January Core Machinery Orders -5.5% m/m (expected -9.6%; prior 19.1%) and 13.7% yr/yr (expected 10.5%; prior 16.8%); January Industrial Production 4.3% m/m (expected 2.2%; prior 0.6%) and Capacity Utilization 2.9% (prior 0.5%)
• Australia's February Employment Change 48.9K (expected 20.8K; prior 26.1K); February Unemployment Rate 4.3% (expected 4.1%; prior 4.1%)

Major European indices are under selling pressure, clipped by the spike in energy prices that was precipitated by Iran's retaliation on Qatar's LNG facilities at Ras Laffan. STOXX Europe 600: -2.1%, Germany's DAX: -2.4%, U.K.'s FTSE 100: -2.1%, France's CAC 40: -2.0%, Italy's FTSE MIB: -2.2%, Spain's IBEX 35: -2.1%.

In news:

• Brent crude futures topped $118.00/bbl but are now at $114.34/bbl, up 6.5%.
• Concerns about a pickup in inflation and a slowdown in growth have cut risk appetite.
• At the moment, sovereign bond markets appear more concerned with the prospect of higher inflation and an extended delay for additional rate cuts. That concern is reflected in higher yields across European bond markets.
• The Swiss National Bank kept its key policy rate unchanged at 0.00%, as expected.
• Sweden's Riksbank said its repo rate is not likely to change for some time.
• The Bank of England and the ECB will be out with rate decisions later this morning. Both are expected to leave their key policy rates unchanged.

In economic data:

• Eurozone's Q4 Labor Cost Index 3.3% yr/yr (prior 3.4%)
• U.K.'s February Claimant Count Change 24.7K (expected 25.8K; prior 4.7K); January Avg. Earnings Index plus Bonus 3.9% (expected 3.9%; prior 4.2%); January Unemployment Rate 5.2% (expected 5.3%; prior 5.2%)

[BRIEFING.COM] The stock market had an eventful session, with inflation readings, volatile oil prices, and developments from today's FOMC meeting putting broad pressure on the market. The S&P 500 (-1.4%) finished a touch above its 200-day moving average of 6,615, while the Nasdaq Composite (-1.5%) and DJIA (-1.6%) violated their respective 200-day moving averages. 

Stocks opened to more modest losses following the release of the February PPI (0.7%; Briefing.com consensus: 0.3%), which fueled inflation concerns, especially since the index does not yet reflect the recent surge in oil prices. Oil was also higher this morning amid reports that Iran threatened numerous Gulf energy sites following an Israeli strike on an Iranian gas field, though the action was choppy, and crude oil futures settled today's session $0.63 lower (-0.7%) at $95.42 per barrel. 

While there was some modest relief in oil prices, inflation concerns took center stage this afternoon with the March FOMC meeting. The FOMC voted 11-1 to leave the target range for the fed funds rate unchanged at 3.50-3.75% (Fed Governor Miran preferred a 25 bps cut), which was widely expected. 

What the market was particularly attuned to was the updated summary of economic projections (SEP), which showed a bump in the median estimate for change in real GDP to 2.4% from 2.3% and PCE inflation to 2.7% from 2.4%. There was no change in the median estimate of one rate cut this year and one rate cut next year, although the longer-run estimate for the fed funds rate ticked up to 3.10% from 3.00%.

The market's initial reaction to these updates was fairly muted, though stocks moved lower in broad fashion during Fed Chair Powell's press conference. Mr. Powell noted that officials are still looking for goods inflation to come down as tariffs work their way through the system and that the higher inflation expectations are not solely due to rising oil prices. 

Mr. Powell also warned, "The possibility that our next move might be an increase did come up at the meeting, as it did the last meeting. The vast majority of participants don't see that as their base case."

Ultimately, today's meeting weighed on stocks, with all eleven S&P 500 sectors finishing at session lows in negative territory. Eight of those sectors finished with losses of 1.0% or wider. 

The consumer staples (-2.4%) and consumer discretionary (-2.3%) sectors finished at the bottom of today's leaderboard amid the focus on inflation, with nearly all of their components trading lower. lululemon athletica (LULU 165.39, +6.12, +3.84%) and Williams-Sonoma (WSM 184.04, +1.87, +1.03%) managed a higher finish after their earnings reports but were well off their session highs by the close. 

The top-weighted information technology sector (-1.2%) was a relative outperformer this morning, though it faced increasing pressure this afternoon. Software stocks were a point of weakness, with the iShares GS Software ETF finishing 1.4% lower, while NVIDIA (NVDA 180.40, -1.53, -0.84%) and other chipmakers ceded their early gains. Micron (MU 461.73, +0.04, +0.01%) traded flat ahead of its earnings after the close. 

Outside of the S&P 500, the Russell 2000 (-1.7%) finished in line with the major averages, while the S&P Mid Cap 400 (-0.9%) closed with a more modest loss. 

Ultimately, the combination of sticky inflation and policy uncertainty leaves the market vulnerable, especially with key technical levels now in focus. Continued volatility in energy prices remains an added headwind for equities.

U.S. Treasuries had a tough day, and yields rose across the curve. The 2-year note yield settled up eight basis points to 3.75%, and the 10-year note yield settled up six basis points to 4.26%. 

• S&P Mid Cap 400: +1.8% YTD
• Russell 2000: -0.1% YTD
• S&P 500: -3.2% YTD
• DJIA: -3.8% YTD
• Nasdaq Composite: -4.7% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -10.9%; Prior was revised to 3.2% from
• February PPI 0.7% (Briefing.com consensus 0.3%); Prior 0.5%, February Core PPI 0.5% (Briefing.com consensus 0.4%); Prior 0.8%
  
  • The key takeaway from the report is that the uptick in producer prices was seen in both goods (+1.1%) and services (+0.5%), and the added point is that this higher inflation occurred before the war with Iran and subsequent surge in energy prices, which will foment concerns about a worsening inflation situation.
• January Factory Orders 0.1%; Prior was revised to -0.4% from -0.7%
  
  • The key takeaway from the report is the tepid level of business spending in January, evidenced by the 0.1% increase in new orders for nondefense capital goods excluding aircraft.