[BRIEFING.COM] The S&P 500 (-1.3%), Nasdaq Composite (-1.7%), and DJIA (-1.1%) continue to chart session lows, with today's weakness sending the S&P 500 firmly below its 50-day moving average (6,882.21). 

While Alphabet's (GOOG 317.57, -15.77, -4.73%) massive capital expenditure plans briefly sent semiconductor stocks higher this morning, the gains have been ceded, and the information technology sector (-1.5%) is now firmly lower.  The PHLX Semiconductor Index (-1.6%) is down similarly. 

Qualcomm (QCOM 134.28, -14.61, -9.81%) is a notable laggard, falling to its lowest level since mid-April. The company beat Q1 EPS expectations and issued below-consensus guidance for Q2. BofA Securities downgraded the stock to Neutral from Buy with a $155 target, while Susquehanna downgraded shares to Neutral from Positive with a $140 target.

[BRIEFING.COM] The S&P 500 (-1.0%), Nasdaq Composite (-1.3%), and DJIA (-0.7%) sit lower across the board amid weakness in the broader market and sustained pressure across mega-cap stocks. 

Alphabet (GOOG 319.84, -13.50, -4.05%) is lower after its earnings report, sending the communication services sector (-2.1%) lower, while Amazon (AMZN 222.39, -10.60, -4.55%) holds a similar loss ahead of its earnings after the close, providing weak leadership for the consumer discretionary sector (-2.5%). 

The Vanguard Mega Cap Growth ETF is down 1.8% early in the session. 

Unlike previous sessions this week that have benefitted from broad strength, only the defensive consumer staples (+0.4%), health care (+0.2%), and utilities (+0.1%) sectors hold gains. 

The materials (-1.1%) and energy (-1.1%) sectors are among the underperformers as gold and oil prices both move lower after a solid rebound yesterday. 

Just released, the December Job Openings and Labor Turnover report saw 6.542 million job openings in December, down from the downwardly revised previous level of 6.928 million (from 7.146 million). 

The stock market is on track for a lower opening this morning as tech names remain under pressure. Mega-cap stocks are mostly lower after Alphabet's (GOOG 316.93, -16.41, -4.9%) earnings release, which will likely pressure the major averages at the open.

Initial jobless claims for the week ending January 31 increased by 22,000 to 231,000 (Briefing.com consensus: 210,000). Continuing jobless claims for the week ending January 24 increased by 25,000 to 1.844 million.

The key takeaway from the report was the jump in initial claims, which hit their highest level since early December. That created some headline surprise, but to be fair, the absolute level isn't that bad.

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

Equity indices in the Asia-Pacific region ended Thursday on a lower note with South Korea's Kospi (-3.9%) pulling back from its blistering start to 2026. Precious metals had a volatile night, contributing to overall caution among investors. There was some speculation that Japan's Prime Minister Takaichi might not live up to her pledge to cut taxes on food due to worries about the fiscal impact. Expectations for a near-term reserve requirement ratio cut from the People's Bank of China are on the low side, though the potential for a cut in the second quarter remains alive.

• In economic data:
  • Australia's December trade surplus AUD3.373 bln (expected surplus of AUD3.420 bln; last surplus of AUD2.597 bln). December Imports -0.8% m/m (last -0.2%) and Exports 1.0% m/m (last -4.0%)
  • Singapore's December Retail Sales -5.4% m/m (last -0.2%); 2.7% yr/yr (last 6.2%)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: +0.1%
• China's Shanghai Composite: -0.6%
• India's Sensex: -0.6%
• South Korea's Kospi: -3.9%
• Australia's ASX All Ordinaries: -0.5%

Major European indices trade in the red. Military contractor Rheinmetall has been pressured by weak guidance while shipper Maersk announced that some corporate positions will be cut and confirmed resumption of transit through the Red Sea. The Bank of England voted 5-4 to keep its bank rate at 3.75%, which was expected. The European Central Bank will release its own policy statement at 8:15 ET, but it too is expected to keep policy steady. There has been some speculation that European Central Bank President Lagarde could try to talk down the euro after the single currency reached its highest level against the dollar since mid-2021.

• In economic data:
  • Eurozone's December Retail Sales -0.5% m/m (expected -0.2%; last 0.1%); 1.3% yr/yr (expected 1.6%; last 2.4%)
  • Germany's December Factory Orders 7.8% m/m (expected -1.8%; last 5.7%)
  • U.K.'s January S&P Global Construction PMI 46.4 (expected 42.2; last 40.1)
  • France's December Industrial Production -0.7% m/m (expected 0.2%; last 0.1%)
  • Italy's December Retail Sales -0.8% m/m (expected -0.4%; last 0.5%); 0.9% yr/yr (last 1.3%)

---Equity Markets---

• STOXX Europe 600: -0.4%
• Germany's DAX: -1.2%
• U.K.'s FTSE 100: -0.7%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -1.2%
• Spain's IBEX 35: -1.8%

The S&P 500 futures currently trade 31 points below fair value. 

Just released, initial jobless claims for the week ending January 31 increased by 22,000 to 231,000 (Briefing.com consensus: 210,000).

Continuing jobless claims for the week ending January 24 increased by 25,000 to 1.844 million, from a downwardly revised prior level of 1.819 million (from 1.827 million).

Equity futures point to a lower opening this morning after the major averages finished mostly lower in yesterday's trade. Mega-cap and tech stocks faced another session of considerable pressure, with semiconductors among the worst performers yesterday. Meanwhile, select defensive and cyclical sectors garnered some strong rotational interest, helping somewhat ease losses at the index level. 

Alphabet (GOOG 318.64, -14.70, -4.4%) is under pressure after beating earnings estimates, with investors showing caution after the company guided for FY26 capital expenditure of $175-$185 billion. However, the massive spending plans are seen as a positive for the broader AI trade, sending select chipmakers and related stocks higher in the premarket. 

There are plenty of other earnings reports for investors to assess this morning, with over 100 S&P 500 companies set to report by the end of the week.

Elsewhere, the price of oil is falling this morning as diplomatic discussions between the U.S. and Iran are now once again set to take place in Oman tomorrow, according to The New York Times. 

Bitcoin is also moving lower, with a sharp intraday retreat coinciding with the stock market's worst levels of the session. The cryptocurrency has moved below the $70,000 mark this morning. 

This morning also brings about some important labor market data. In addition to the weekly initial claims report (Briefing.com consensus 210K) at 8:30 a.m. ET, the December Job Openings and Labor Turnover report, which was initially scheduled to be released on Tuesday, will be released at 10:00 a.m. ET. 

In corporate news:

• Alphabet (GOOG 318.64, -14.70, -4.4%) beat EPS expectations by $0.19, beat revenue expectations, and reported Google Cloud growth of 48%. The company guided for FY26 capital expenditure of $175-$185 billion.
• Qualcomm (QCOM 131.90, -16.99, -11.4%) beat EPS expectations by $0.11 and reported revenues in-line. The company guided Q2 EPS below consensus with revenues below consensus. 
• SpaceX is mulling an early index entry for its massive IPO, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended Thursday on a lower note with South Korea's Kospi (-3.9%) pulling back from its blistering start to 2026. Japan's Nikkei: -0.9%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.6%, India's Sensex: -0.6%, South Korea's Kospi: -3.9%, Australia's ASX All Ordinaries: -0.5%.

In news:

• Precious metals had a volatile night, contributing to overall caution among investors.
• There was some speculation that Japan's Prime Minister Takaichi might not live up to her pledge to cut taxes on food due to worries about the fiscal impact.
• Expectations for a near-term reserve requirement ratio cut from the People's Bank of China are on the low side, though the potential for a cut in the second quarter remains alive.

In economic data:

• Australia's December trade surplus AUD3.373 bln (expected surplus of AUD3.420 bln; last surplus of AUD2.597 bln). December Imports -0.8% m/m (last -0.2%) and Exports 1.0% m/m (last -4.0%)
• Singapore's December Retail Sales -5.4% m/m (last -0.2%); 2.7% yr/yr (last 6.2%)

Major European indices trade in the red. STOXX Europe 600: -0.8%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.9%, Spain's IBEX 35: -1.5%.

In news:

• Military contractor Rheinmetall has been pressured by weak guidance while shipper Maersk announced that some corporate positions will be cut and confirmed resumption of transit through the Red Sea.
• The Bank of England voted 5-4 to keep its bank rate at 3.75%, which was expected.
• The European Central Bank will release its own policy statement at 8:15 ET, but it too is expected to keep policy steady.
• There has been some speculation that European Central Bank President Lagarde could try to talk down the euro after the single currency reached its highest level against the dollar since mid-2021.

In economic data:

• Eurozone's December Retail Sales -0.5% m/m (expected -0.2%; last 0.1%); 1.3% yr/yr (expected 1.6%; last 2.4%)
• Germany's December Factory Orders 7.8% m/m (expected -1.8%; last 5.7%)
• U.K.'s January S&P Global Construction PMI 46.4 (expected 42.2; last 40.1)
• France's December Industrial Production -0.7% m/m (expected 0.2%; last 0.1%)
• Italy's December Retail Sales -0.8% m/m (expected -0.4%; last 0.5%); 0.9% yr/yr (last 1.3%)

The midweek session unfolded in a similar fashion to yesterday's action, with significant losses across tech and mega-cap stocks pressuring the S&P 500 (-0.5%) and Nasdaq Composite (-1.5%) while the DJIA (+0.5%) benefited from rotational strength into other corners of the market. 

While the DJIA made a run towards fresh record highs this morning, the S&P 500 dipped below its 50-day moving average (6,878.02) as selling pressure increased in the early afternoon, though the index recovered and closed just above the key technical level. 

Meanwhile, the Nasdaq Composite remains below its own 50-day moving average (23,390.10), with today's losses moving the index into negative territory for the year. 

The top-weighted information technology sector (-1.9%) widened its year-to-date loss to 5.2%. While the sector lagged for the entirety of the session, it is worth noting that some support kicked in after an early afternoon slide that saw the sector's losses for the day expand past 3.0% amid a sharp retreat in bitcoin.

Still, the PHLX Semiconductor Index (-4.4%) faced a considerable retreat as shares of Advanced Micro Devices (AMD 200.19, -41.92, -17.31%) plummeted despite beating earnings expectations and delivering upside Q1 guidance. NVIDIA (NVDA 174.19, -6.15, -3.41%) had a poor showing, though the sector's other "magnificent seven" components, Apple (AAPL 276.49, +7.01, +2.60%) and Microsoft (MSFT 414.19, +2.98, +0.72%), fared better. 

Even with the modest gain in Microsoft, software stocks faced an extension of yesterday's pressure, sending the iShares GS Software ETF 1.8% lower. 

Pressure across mega-cap names elsewhere pushed the communication services (-1.7%) and consumer discretionary (-1.2%) sectors lower as well. Alphabet (GOOG 333.34, -7.36, -2.16%) was a laggard ahead of its earnings report after the close. 

The Vanguard Mega Cap Growth ETF finished 1.4% lower, widening its negative start to 2026. 

With the exception of a modest pullback in the utilities sector (-0.4%), which outperformed yesterday, the broader market saw another solid day of rotational interest. 

Seven S&P 500 sectors finished higher, with five boasting a gain of 1.0% or wider. As a result, the S&P 500 Equal Weighted Index (+0.9%) outperformed the market-weighted S&P 500 (-0.5%) by a considerable margin.

The energy sector (+2.3%) once again captured the widest gain as crude oil futures settled today's session $1.97 higher (+3.1%) at $65.13 a barrel. Axios reported that diplomatic talks between the U.S. and Iran have hit a roadblock regarding nuclear negotiations. 

The materials sector (+1.8%) also saw an extension of yesterday's gains. Smurfit Westrock plc (SW 44.38, +3.48, +8.51%) led the advance after the company announced it would increase its quarterly dividend, while Amcor (AMCR 48.58, +3.66, +8.16%) finished similarly after topping EPS estimates and reaffirming its FY26 EPS guidance. 

Meanwhile, the health care sector (+1.2%) notched a solid gain after a lower finish yesterday, with Eli Lilly (LLY 1107.75, +104.29, +10.39%) and Amgen (AMGN 366.20, +27.61, +8.15%) among the top performers after beating earnings estimates. 

The real estate sector (+1.5%) advanced on broad strength, rounding out the top five, while the financials (+0.8%) and industrials (+0.2%) sectors captured more modest gains. 

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

Overall, the session reinforced the market's recent tug-of-war between persistent pressure on tech and the resulting rotational strength elsewhere. The market has more key mega-cap earnings on tap, which will likely be key in determining whether leadership stabilizes or the current rotation continues.

U.S. Treasuries had another steady showing on Wednesday, keeping yields near levels seen during Tuesday's sideways session. The 2-year note yield settled down one basis point to 3.56%, and the 10-year note yield finished unchanged at 4.28%. 

• S&P Mid Cap 400: +5.8% YTD
• Russell 2000: +5.8% YTD
• DJIA: +3.0% YTD
• S&P 500: +0.5% YTD
• Nasdaq Composite: -1.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -8.9%; Prior -8.5%
• January ADP Employment Change 22K (Briefing.com consensus 43K); Prior was revised to 37K from 41K
• January S&P Global U.S. Services PMI - Final 52.7; Prior 52.5
• January ISM Non-Manufacturing Index 53.8% (Briefing.com consensus 53.7%); Prior was revised to 53.8% from 54.4%
  • The key takeaway from the report is that activity in the services sector grew at a steady pace in January at the same time prices paid for materials and services increased.