[BRIEFING.COM] The major averages finished little changed today as strength across software and several other pockets of the market helped offset another sharp pullback in semiconductor stocks. The S&P 500 (-0.1%), Nasdaq Composite (-0.2%), and DJIA (-0.1%) all ended with modest losses, reflecting a market that remained selective rather than broadly risk-averse.

Technology was once again defined by a notable divergence beneath the surface. Chipmakers came under renewed pressure after The New York Times reported that OpenAI may delay its planned IPO until 2027 following SpaceX's (SPCX 153.23, +0.23, +0.15%) disappointing post-IPO performance, prompting investors to continue reducing exposure to AI infrastructure names.

The PHLX Semiconductor Index fell 5.3%, with memory names such as Sandisk (SNDK 2090.71, -244.29, -10.46%) giving back a portion of yesterday's post-Micron (MU 1132.33, -81.23, -6.69%) earnings gains. Company-specific developments added to the weakness. onsemi (ON 90.65, -28.09, -23.66%) was the S&P 500's biggest laggard after announcing a $7 billion all-stock acquisition of Synaptics (SYNA 121.00, -4.62, -3.68%), as investors weighed the strategic merits of the transaction against the near-term dilution associated with an all-stock deal.

Despite the pressure on chipmakers, the broader technology complex delivered a much more mixed performance. Software stocks emerged as a notable area of strength, with ServiceNow (NOW 98.34, +8.82, +9.85%) surging 9.0% and helping lift the iShares Expanded Tech-Software Sector ETF (IGV) 4.1% higher.

Apple (AAPL 283.78, +8.63, +3.14%) and Microsoft (MSFT 372.97, +20.14, +5.71%) also rebounded from yesterday's declines, leaving the Vanguard Mega Cap Growth ETF flat for the day even as the information technology sector (-1.1%) finished as one of the weakest S&P 500 sectors.

The industrials sector (-1.5%) also lagged as electrical equipment names continued to trade in sympathy with semiconductor stocks. FedEx Freight (FDXF 153.89, -4.64, -2.93%) added to the weakness after investors responded cautiously to the company's first earnings report as a standalone company.

Away from technology, market participation remained constructive. Six S&P 500 sectors finished higher, led by the health care sector (+3.2%), where Eli Lilly (LLY 1206.50, +78.82, +6.99%) traded sharply higher and Moderna (MRNA 67.27, +7.52, +12.59%) finished as the top-performing S&P 500 component after unveiling research and early development updates during its Science Day event.

The defensive consumer staples sector (+1.0%) and utilities sector (+0.8%) also emphasized strength across more defensive sectors, while gains across several large consumer names helped the consumer discretionary sector (+1.6%) finish among the session's leaders.

Outside the S&P 500, the Russell 2000 (+0.1%) and S&P Mid Cap 400 (-0.2%) also finished little changed, indicating that rotational buying was somewhat less pronounced than in recent sessions.

On the policy front, Minneapolis Fed President Kashkari, a voting member of the FOMC, told CNBC that he currently has one rate hike penciled in for 2026, though he emphasized that future policy decisions will remain dependent on incoming economic data.

Overall, today's session reinforced that investors continue to distinguish between individual areas of technology rather than treating the sector as a single trade. While AI infrastructure names remained under pressure, resilience across software, select mega-cap technology stocks, and several non-technology sectors helped keep the broader market stable.

U.S. Treasuries had a mixed finish to the week, as 10s and shorter tenors recorded their fourth day of gains in a row while the long bond underperformed, finishing with a slim loss. The 2-year note yield settled down three basis points (-9 basis points this week), and the 10-year note yield settled down two basis points to 4.37% (-8 basis points this week).

• Russell 2000: +21.3% YTD
• S&P Mid Cap 400: +15.5% YTD
• Nasdaq Composite: +8.8% YTD
• DJIA: +7.9% YTD
• S&P 500: +7.4% YTD

Reviewing today's data:

• May Adv. Intl. Trade in Goods -$105.8 bln; Prior was revised to -$83.0 bln from -$82.4 bln
• May Adv. Retail Inventories 0.6%; Prior 0.7%
• May Adv. Wholesale Inventories 0.3%; Prior was revised to 0.7% from 0.5%
• June Univ. of Michigan Consumer Sentiment - Final 49.5 (Briefing.com consensus 48.9); Prior 48.9
  • The key takeaway from the report is that sentiment was boosted by the moderation in gas prices; however, the higher cost of living in general remains a burden, as sentiment is still 13% below the level it stood at in February prior to the start of the Iran War and almost 20% less than the prior year period.

[BRIEFING.COM] The major averages remain just below their baselines late in the session, setting up for an uneventful, modestly lower finish to a choppy week.

From a pure calendar perspective, the holiday-abbreviated week ahead could also prove to be lackluster, with just a handful of earnings releases on the calendar and a lighter data batch, though there will be some important employment data releases.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (-0.3%), and DJIA (-0.1%) are back in modestly negative territory as the market enters the final hour of the session.

As it stands, the S&P 500 is on track for a weekly loss of 2.1%, while the Nasdaq Composite is on track to lose 4.7%. Much of that weakness is a result of losses across mega-cap tech, with the Vanguard Mega Cap Growth ETF down 4.7% this week.

[BRIEFING.COM] The S&P 500 (+0.06%) is in first place this afternoon, up about 5 points.

Briefly, S&P 500 constituents FactSet (FDS 229.94, +21.10, +10.10%), ServiceNow (NOW 97.14, +7.62, +8.51%), and Applovin (APP 482.19, +36.26, +8.13%) pepper the top of the standings. FDS rallies, bucking recent weakness (down about -22% this month into the open this morning).

Meanwhile, Western Digital (WDC 586.01, -89.38, -13.23%) follows broader weakness in tech/storage stocks.

[BRIEFING.COM] The Nasdaq Composite (+0.04%) is in second place this afternoon, up about 10 points.

Gold futures settled $48.70 higher (+1.2%) at $4,096.30/oz, rebounding from multi-month lows as a softer U.S. dollar and easing Treasury yields followed an in-line PCE inflation report that modestly reduced expectations for additional Federal Reserve rate hikes. Even with today's rally, bullion remains down roughly 3.5% for the week after a hawkish Fed outlook and stronger dollar fueled heavy selling earlier in the week, with investors continuing to weigh the prospect of higher-for-longer interest rates against gold's safe-haven appeal.

Meanwhile, the U.S. Dollar Index is now -0.1% lower to $101.37.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.07%) is in last place on Friday afternoon, up about 38 points.

A look inside the DJIA shows that Microsoft (MSFT 369.56, +16.73, +4.74%), IBM (IBM 270.54, +12.27, +4.75%), and Salesforce (CRM 156.78, +6.59, +4.39%) show solid gains.

Meanwhile, Caterpillar (CAT 1014.51, -42.50, -4.02%) is underperforming.

The DJIA is poised to end up about +0.77% on the week.

Also, at the top of the hour, Baker Hughes (BKR 56.38, -0.56, -0.98%) announced a weekly U.S. rotary rig count of 573, +10 w/w and +26 yr/yr.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.3%) have recovered from an early bout of weakness and now trade modestly higher just after midday, as continued strength across the broader market offsets a weaker session for semiconductor stocks.

Technology remains the primary source of divergence. The PHLX Semiconductor Index (-3.7%) is under pressure after The New York Times reported that OpenAI may delay its planned IPO until 2027 following SpaceX's (SPCX 157.76, +4.76, +3.11%) disappointing post-IPO performance, weighing on AI-related chipmakers after yesterday's post-Micron (MU 1180.70, -32.86, -2.71%) rally.

The group's weakness is compounded by company-specific developments. onsemi (ON 91.25, -27.49, -23.15%) is the worst-performing S&P 500 component after announcing a $7 billion all-stock acquisition of Synaptics (SYNA 126.48, +0.86, +0.68%), a deal that broadens the company's exposure to edge AI, wireless connectivity, and intelligent systems but also raises near-term dilution concerns.

Despite the semiconductor weakness, the broader technology complex has held up considerably better. Apple (AAPL 278.67, +3.52, +1.28%) and Microsoft (MSFT 370.06, +17.24, +4.88%) are both rebounding after yesterday's pullback, helping the Vanguard Mega Cap Growth ETF (+0.7%) climb to its session high. Even so, the information technology sector (-0.8%) remains under pressure as weakness across chipmakers outweighs gains elsewhere.

The industrials sector (-1.0%) is also lagging as electrical equipment names retreat alongside semiconductor stocks. FedEx Freight (FDXF 151.98, -6.54, -4.13%) adds to the weakness after its first earnings report as a standalone company delivered a mixed outlook that tempered investor enthusiasm.

Meanwhile, seven S&P 500 sectors trade higher, led by the health care sector (+2.5%), where Eli Lilly (LLY 1200.53, +72.84, +6.46%) extends its recent strength and Moderna (MRNA 66.49, +6.74, +11.28%) is the best-performing S&P 500 component after announcing research and early development updates during its Science Day event.

The consumer discretionary sector (+1.8%) is another standout as several mega-cap components rebound from yesterday's weakness, while the consumer staples sector (+1.5%) continues its recent run of outperformance.

The early semiconductor-led weakness proved short-lived at the index level as investors rotated into other technology leaders alongside cyclical and defensive sectors. That dynamic suggests market leadership continues to evolve rather than deteriorate, even as volatility remains elevated across AI infrastructure stocks.

Reviewing today's data:

• May Adv. Intl. Trade in Goods -$105.8 bln; Prior was revised to -$83.0 bln from -$82.4 bln
• May Adv. Retail Inventories 0.6%; Prior 0.7%
• May Adv. Wholesale Inventories 0.3%; Prior was revised to 0.7% from 0.5%
• June Univ. of Michigan Consumer Sentiment - Final 49.5 (Briefing.com consensus 48.9); Prior 48.9
  • The key takeaway from the report is that sentiment was boosted by the moderation in gas prices; however, the higher cost of living in general remains a burden, as sentiment is still 13% below the level it stood at in February prior to the start of the Iran War and almost 20% less than the prior year period.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (flat) now trade in a stable range near their baselines.

Minneapolis Fed President Kashkari (FOMC voter) notes he has one rate hike penciled in for 2026, but he will keep watching the data, according to CNBC. The CME FedWatch tool currently assigns a 30% probability to a rate hike at the July FOMC meeting, which jumps up to 60% at the September meeting.

[BRIEFING.COM] The major averages remain modestly higher at midday.

onsemi (ON 93.06, -25.68, -21.63%) will acquire Synaptics (SYNA 125.40, -0.22, -0.18%) in a $7 billion all-stock transaction. The deal is expected to close in mid-2027 and marks a significant strategic shift for onsemi as it expands beyond power and sensing chips into edge AI, connectivity, and intelligent system offerings. onsemi is down sharply, which is likely a combination of chip stocks being under pressure today plus the fact that this is an all-stock deal.

This supplier of power semiconductors and sensing chips is making a bold move to become a provider of complete intelligent systems for the AI era. Strategically, the acquisition makes considerable sense. onsemi has built a strong franchise in automotive, industrial automation, and energy-efficient power management, but those markets increasingly require more than just power chips. Customers are looking for integrated platforms that can sense, process, communicate, and make decisions locally. Synaptics fills that gap by adding Edge AI processors, wireless connectivity, and software capabilities that complement onsemi's existing strengths. The biggest opportunity is higher semiconductor content per customer. Rather than competing for only a few sockets inside an autonomous vehicle or industrial robot, onsemi can pursue a much larger share of the bill of materials by offering a more complete solution. That not only creates incremental revenue opportunities but also tends to produce stickier customer relationships and higher barriers to competitive displacement.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) have reversed their early weakness just before midday.

Beneath the surface, signs of divergence remain between select tech names and the broader market. A 4.4% pullback in the PHLX Semiconductor Index keeps the information technology sector (-0.8%) firmly lower, despite Apple (AAPL 279.06, +3.91, +1.42%) and Microsoft (MSFT 371.07, +18.24, +5.17%) rebounding from yesterday's slide.

The industrials sector (-1.0%) holds a similar loss as electrical product names continue to move in lockstep with semiconductors, while losses are more modest elsewhere.

Similar to recent sessions, the broader market leans higher, with investors continuing to rotate into more cyclical and defensive pockets of the market. The defensive health care (+2.8%) and consumer staples (+1.5%) sectors add to this week's gains, while the consumer discretionary sector (+1.8%) outperforms amid broad strength and a rebound in its mega-cap components. The Vanguard Mega Cap Growth ETF (+0.6%) sits at session highs, pushing the major averages to their best levels of the session.

[BRIEFING.COM] The major averages now trade near their flat lines after steadily chipping away at their opening losses.

On the earnings front, FedEx Freight (FDXF 147.34, -11.20, -7.06%) shares are lower after the company's first earnings report as a standalone company delivered mixed signals, with revenue rising 4.8% year-over-year to $2.40 billion and coming in ahead of the $2.28 billion FactSet consensus. The problem for the stock is that the revenue growth was driven primarily by fuel surcharges and higher weight per shipment, while lower shipment volumes, a slight decline in base revenue per hundredweight, spin-off cost noise, and a transition-period margin outlook that did not clearly exceed the prior-year comparison left investors without the clean standalone reset they wanted.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+flat), and DJIA (+0.1%) are rising off their opening lows as solid participation in the broader market helps offset weakness in chipmakers.

Additionally, mega-cap tech stocks outside of the semiconductor space have a slightly positive tilt, with the Vanguard Mega Cap Growth ETF up 0.1%.

The final reading for the University of Michigan Consumer Sentiment Index for June increased to 49.5 (Briefing.com consensus: 48.9) from the preliminary reading of 48.9. In the same period a year ago, the index stood at 60.7.

The key takeaway from the report is that sentiment was boosted by the moderation in gas prices; however, the higher cost of living in general remains a burden, as sentiment is still 13% below the level it stood at in February prior to the start of the Iran War and almost 20% less than the prior year period.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5), and DJIA (-0.1%) are modestly lower this morning as tech names face a continuation of recent weakness against a backdrop of mixed strength in the broader market.

The top-weighted information technology sector (-1.0%) is under pressure as its semiconductor components retreat from yesterday's highs. onsemi (ON 95.98, -22.76, -19.16%) is the worst-performing S&P 500 name after announcing the company will acquire Synaptics (SYNA 128.98, +3.36, +2.67%) in a $7 billion all-stock deal, while Micron (MU 1186.87, -26.69, -2.20%)gives back a chunk of yesterday's post-earnings gain. The PHLX Semiconductor Index is down 3.3%.

Weakness across semiconductor stocks weighs on electrical product names in the industrials sector (-0.8%), while the communication services sector (-0.8%) faces a continuation of weak leadership from Alphabet (GOOG 336.48, -5.71, -1.67%).

Meanwhile, six S&P 500 sectors trade higher, with the defensive health care (+2.8%) and consumer staples (+1.2%) sectors outperforming again.

Just released, the final reading of the June University of Michigan Consumer Sentiment Index rose to 49.5 (Briefing.com consensus 48.9) from the preliminary reading of 48.9.

The stock market remains on track for a lower opening this morning as tech (and particularly semiconductor names) face pressure this morning.

The major averages enter the final session of the week mostly lower, with the Nasdaq Composite (-4.4% week-to-date) and S&P 500 (-1.9% week-to-date) retreating amid the weakness in tech, while support from the broader market keeps the DJIA (+0.7% week-to-date) and S&P 500 Equal Weighted Index (+1.1% week-to-date) advancing.

The S&P 500 futures currently trade 22 points below fair value.

Equity indices in the Asia-Pacific region had a mostly lower finish to the week with Hong Kong's Hang Seng hitting a fresh 13-month low while markets in India were closed for a holiday. Japan's Tokyo CPI accelerated in June but remained below the Bank of Japan's 2.0% target for the fifth consecutive month. Japan's Prime Minister Takaichi indicated that her government plans to shift away from annual extra budgets in favor of annual bond issuance. Meanwhile, Finance Minister Katayama proposed a framework that would link spending to most predictable revenue streams like taxes, bond issuance, and spending cuts. The plan would include a 14-year, $2.3 trln, investment plan for AI and energy.

• In economic data:
  • Japan's June Tokyo CPI 1.7% yr/yr (prior 1.4%) and Tokyo Core CPI 1.6% yr/yr (expected 1.6%; prior 1.3%)
  • Singapore's May Industrial Production -0.7% m/m (expected 2.0%; last 6.2%); 13.0% yr/yr (expected 17.0%; last 16.5%)

---Equity Markets---

• Japan's Nikkei: -4.2% 
• Hong Kong's Hang Seng: -1.8% 
• China's Shanghai Composite: -2.3%
• India's Sensex: CLOSED 
• South Korea's Kospi: -5.8% 
• Australia's ASX All Ordinaries: +0.1%

Major European indices trade in the red. Manager Magazin reported that Volkswagen could cut up to 100,000 jobs as part of aggressive restructuring that would also include a spin-off of the passenger vehicle brand. Near-term consumer inflation expectations decelerated slightly to 3.5% from 3.9%, according to a survey from the European Central Bank.

• In economic data:
  • France's May jobseekers 3.116 mln (prior 3.100 mln)
  • Italy's June Business Confidence 88.4, as expected (prior 87.9) and Consumer Confidence 92.4 (expected 94.5; prior 93.4). May non-EU trade surplus EUR3.84 bln (prior surplus of EUR3.85 bln)

---Equity Markets---

• STOXX Europe 600: -1.3% 
• Germany's DAX: -1.5% 
• U.K.'s FTSE 100: -1.1% 
• France's CAC 40: -0.9% 
• Italy's FTSE MIB: -1.4% 
• Spain's IBEX 35: -0.7% 

The S&P 500 futures currently trade 18 points below fair value.

Just released, the advance reading for May wholesale inventories saw an increase of 0.3%, from a prior increase of 0.5%.

Retail inventories showed an increase of 0.6%, from a prior increase of 0.7%.

The international goods trade balance contracted to -$105.8 billion, from a prior reding of -$82.4 billion.

Equity futures point to a lower opening as semiconductor stocks move sharply lower in the premarket.

The group faced choppy action yesterday following Micron's (MU 1,150.23, -63.33, -5.2%) blowout earnings release, but ended the session with solid gains. That strength was not evident at the index level, as heightened demand for memory caused several "magnificent seven" companies to raise prices, setting up another day of weakness across mega-cap tech.

This morning, chipmakers are giving back their gains after reports that OpenAI may delay its IPO to 2027 due to recent volatility across SpaceX (SPCX 150.93, -2.07, -1.4%) and other AI-related names. Additionally, Axios reports that the Trump administration has asked OpenAI to delay the release of its latest model due to security concerns.

Outside of the tech space, oil prices continue to retreat, and futures linked to the DJIA hold the narrowest losses, suggesting another day of rotation into the broader market could be in store.

In corporate news:

• ON Semiconductor (ON 101.76, -16.98, -14.3%) agreed to acquire Synaptics (SYNA 130.00, +4.38, +3.5%) in an all-stock deal worth $7 billion.
• Samsung (SSNLF) and SK Hynix (SKHY) are planning to announce hundreds of billions of dollars worth of new investments next week, according to Bloomberg.
• SpaceX (SPCX 150.93, -2.07, -1.4%) is aiming to introduce a new Starlink mobile service for U.S. consumers, according to Financial Times.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower finish to the week with Hong Kong's Hang Seng hitting a fresh 13-month low while markets in India were closed for a holiday. Japan's Nikkei: -4.2%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: -2.3%, India's Sensex: CLOSED, South Korea's Kospi: -5.8%, Australia's ASX All Ordinaries: +0.1%.

In news:

• Japan's Tokyo CPI accelerated in June but remained below the Bank of Japan's 2.0% target for the fifth consecutive month.
• Japan's Prime Minister Takaichi indicated that her government plans to shift away from annual extra budgets in favor of annual bond issuance.
• Meanwhile, Finance Minister Katayama proposed a framework that would link spending to most predictable revenue streams like taxes, bond issuance, and spending cuts. The plan would include a 14-year, $2.3 trln, investment plan for AI and energy.

In economic data:

• Japan's June Tokyo CPI 1.7% yr/yr (prior 1.4%) and Tokyo Core CPI 1.6% yr/yr (expected 1.6%; prior 1.3%)
• Singapore's May Industrial Production -0.7% m/m (expected 2.0%; last 6.2%); 13.0% yr/yr (expected 17.0%; last 16.5%)

Major European indices trade in the red. STOXX Europe 600: -0.9%, Germany's DAX: -1.2%, U.K.'s FTSE 100: -1.3%, France's CAC 40: -0.8%, Italy's FTSE MIB: -1.2%, Spain's IBEX 35: -0.4%.

In news:

• Manager Magazin reported that Volkswagen could cut up to 100,000 jobs as part of aggressive restructuring that would also include a spin-off of the passenger vehicle brand.
• Near-term consumer inflation expectations decelerated slightly to 3.5% from 3.9%, according to a survey from the European Central Bank.

In economic data:

• France's May jobseekers 3.116 mln (prior 3.100 mln)
• Italy's June Business Confidence 88.4, as expected (prior 87.9) and Consumer Confidence 92.4 (expected 94.5; prior 93.4). May non-EU trade surplus EUR3.84 bln (prior surplus of EUR3.85 bln)

[BRIEFING.COM] The stock market finished mixed today as a strong rally across memory and semiconductor stocks was offset by continued weakness in several mega-cap technology names, while broad strength across cyclical and defensive sectors kept the underlying tone constructive. The S&P 500 finished flat, the Nasdaq Composite (-0.5%) finished modestly lower, and the DJIA (+0.1%) eked out a gain after touching another all-time intraday high.

Micron (MU 1213.56, +165.05, +15.74%) was among the session's top performers after delivering a stellar beat-and-raise earnings report that reinforced exceptionally strong demand across the memory market. The results sparked broad gains among memory-related names and helped the PHLX Semiconductor Index finish 3.6% higher, though not before the group endured another volatile session that saw the index surrender an opening gain of more than 5% before recovering into the close.

However, the same memory-pricing dynamics that benefited Micron weighed on several of the market's largest technology companies. Apple (AAPL 275.15, -17.93, -6.12%) and Microsoft (MSFT 352.83, -12.63, -3.46%) were among the weakest Dow components after both companies announced price increases tied to rising memory costs, while Amazon (AMZN 227.01, -7.26, -3.10%) and Alphabet (GOOG 342.19, -2.85, -0.83%) also finished lower.

As a result, the information technology (-0.1%), consumer discretionary (-1.8%), and communication services (-1.0%) sectors all lagged despite the strength across semiconductor stocks. The Vanguard Mega Cap Growth ETF declined 1.0%.

Away from mega-cap technology, the market continued to broaden. Six S&P 500 sectors finished higher, reinforcing the recent rotation into other areas of the market rather than away from equities altogether.

The industrials sector (+2.2%) captured the widest gain, with Caterpillar (CAT 1056.83, +62.38, +6.27%) notching all-time highs and finishing as the best-performing Dow component amid another strong session for industrial machinery names.

The health care sector (+1.5%) also outperformed, led by Bio-Techne (TECH 70.67, +11.80, +20.03%), which surged after agreeing to be acquired by Merck KGaA (MKKGY 33.59, +1.74, +5.46%) for $73 per share in cash.

The materials sector (+1.4%) benefited from strength across fertilizer and metals producers, while the energy sector (+1.0%) rebounded alongside crude oil after yesterday's retreat.

The S&P 500 Equal Weight Index (+0.6%) outperformed its market-weighted counterpart once again.

Outside the S&P 500, the Russell 2000 (+0.7%) and S&P Mid Cap 400 (+0.9%) also finished higher.

Overall, today's session continued to reinforce the market's evolving leadership. While elevated volatility persists across mega-cap technology stocks, strength has steadily broadened beneath the surface, with the DJIA's year-to-date gain (+8.0%) now surpassing that of the S&P 500 (+7.5%) as investors continue rotating within the equity market rather than exiting it. The contrasting reactions to Micron's earnings also underscored how the AI trade is becoming increasingly nuanced, with surging memory demand benefiting suppliers while simultaneously creating cost pressures for some of the market's largest technology customers.

U.S. Treasuries of most tenors recorded their third consecutive day of gains while the long bond underperformed, ending with a slight loss. The 2-year note yield settled down two basis points to 4.12%, and the 10-year note yield settled down one basis point to 4.39%. 

• Russell 2000: +21.2% YTD
• S&P Mid Cap 400: +15.7% YTD
• Nasdaq Composite: +9.1% YTD
• DJIA: +9.0% YTD
• S&P 500: +7.5% YTD

Reviewing today's data:

• May Personal Income 0.7% (Briefing.com consensus 0.3%); Prior 0.0%, May Personal Spending 0.7% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.5%, May PCE Prices 0.4% (Briefing.com consensus 0.4%); Prior 0.4%, May PCE Prices - Core 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.2%
  • The key takeaway from the report is that, first, there weren't any headline shocks for the PCE price indexes. They were in line with expectations, allowing participants to assume that next month's readings will look better given the sharp decline in oil prices. Secondly, real PCE was up 0.3% month-over-month, demonstrating that spending was driven by increased demand and not just higher prices. This will be a nice input for Q2 GDP forecasts.
• Q1 GDP - Third Estimate 2.1% (Briefing.com consensus 1.6%); Prior 1.6%, Q1 GDP Deflator - Third Estimate 3.6% (Briefing.com consensus 3.5%); Prior 3.5%
  • The key takeaway from the report is that Q1 GDP was stronger than originally thought, due primarily to a downward revision to imports, which are a subtraction in GDP calculations.
• May Durable Orders -4.5% (Briefing.com consensus -3.2%); Prior was revised to 8.5% from 7.9%, May Durable Goods 0 ex transportation 1.3% (Briefing.com consensus 0.5%); Prior was revised to 1.4% from 1.1%
  • The key takeaway from the report is that there was a healthy pickup in business spending in May, evidenced by the 1.6% increase in new orders for nondefense capital goods excluding aircraft.
• Weekly Initial Claims 215K (Briefing.com consensus 225K); Prior was revised to 227K from 226K, Weekly Continuing Claims 1.821 mln; Prior was revised to 1.800 mln from 1.810 mln
  • The key takeaway from the report is that initial jobless claims continue to track at low levels, offering a nice cue that suggests the labor market, overall, remains on solid ground.