[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (+0.3%) are on pace to cap a strong week on a higher note, with each index holding a week-to-date gain of 3% or wider.

Crude oil futures settled today's session $0.92 higher (+1.2%) at $78.19 per barrel. Oil has dropped since the settlement level after reports that Oman and Iran are making progress, and a deal to reopen the Strait of Hormuz is expected soon.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+1.0%), and DJIA (+0.2%) hold on to their gains as the market enters the final hour of the session.

Just released, consumer credit increased to $14.17 billion in June (Briefing.com consensus $9.0 billion), up from the downwardly revised level of -$1.08 billion (from -$0.2 billion).

[BRIEFING.COM] The S&P 500 (+0.38%) is in second place on Friday afternoon, up about 29 points.

Briefly, S&P 500 constituents Microchip (MCHP 85.54, +11.18, +15.03%), Moderna (MRNA 58.87, +5.01, +9.30%), and Newmont Corporation (NEM 112.29, +6.86, +6.51%) dot the top of the standings. MCHP is higher after earnings, while gains in gold futures propel NEM higher.

Meanwhile, ResMed (RMD 206.72, -16.52, -7.40%) is near the bottom of the average after management issued weaker-than-expected FY27 sales guidance and said halted Astral ventilator sales weighed on results, overshadowing a modest quarterly earnings beat.

[BRIEFING.COM] The Nasdaq Composite (+0.99%) is in first place on Friday afternoon, up about 281 points.

Gold futures settled $100.10 higher (+2.3%) at $4,399.70/oz, after a weaker-than-expected U.S. jobs report fueled expectations that the Federal Reserve could delay additional interest rate hikes, while a weaker U.S. dollar and lower Treasury yields boosted demand for the safe-haven metal. Easing energy price concerns also supported sentiment by reinforcing hopes for a less restrictive monetary policy path. The yellow metal ended +7.1% higher on the week.

Meanwhile, the U.S. Dollar Index is down about -0.4% to $99.55.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.18%) is in last place on Friday afternoon, up about 98 points.

A look inside the DJIA shows that Salesforce (CRM 191.36, +4.59, +2.46%), Honeywell (HON 246.06, +5.32, +2.21%), and Sherwin-Williams (SHW 369.24, +5.82, +1.60%) are some of today's top gain getters.

Meanwhile, Visa (V 363.75, -6.72, -1.81%) is underperforming.

The DJIA is poised to end +2.86% higher week-to-date.

Also, at the top of the hour, Baker Hughes (BKR 62.36, -0.16, -0.26%) announced a weekly U.S. rotary rig count of 588, flat w/w and +49 yr/yr.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+1.1%), and DJIA (+0.2%) are higher just after midday as investors respond favorably to a softer-than-expected July employment report that has eased expectations for additional Federal Reserve tightening.

The report showed no payroll growth in July alongside a sizable downward revision to June, prompting a pullback in Treasury yields and a notable shift in rate-hike expectations. The probability of a 25-basis point increase at the September FOMC meeting has fallen to 43.9% from 55.0% yesterday, while the odds of at least one hike by October have dropped to 58.9% from 71.0%, according to the CME FedWatch tool. That friendlier rate backdrop is showing up across several growth-oriented and interest-sensitive areas of the market.

The information technology sector (+0.9%) is among the leaders as the PHLX Semiconductor Index (+2.1%) extends this week's rebound, while software stocks are also enjoying a strong session. The iShares GS Software ETF (IGV) is up roughly 3.0%, supported by a positive post-earnings reaction in Cloudflare (NET 306.71, +22.28, +7.83%) and another sharp gain in Palantir Technologies (PLTR 170.06, +14.14, +9.07%). Datadog (DDOG 238.68, +9.39, +4.10%) and AppLovin (APP 345.70, +10.03, +2.99%) are also reclaiming a portion of yesterday's post-earnings losses.

The consumer discretionary sector (+1.4%) is another standout, with gains in Amazon (AMZN 275.14, +2.88, +1.06%) and Tesla (TSLA 327.89, +8.36, +2.62%) combining with a strong post-earnings move in Airbnb (ABNB 174.50, +22.86, +15.07%) and notable strength across homebuilders. The iShares U.S. Home Construction ETF is up 2.0% as lower yields provide support to housing and other rate-sensitive areas.

Participation remains broad beyond the largest stocks. The Russell 2000 (+0.9%) and S&P MidCap 400 (+1.3%) also hold solid gains, reinforcing the idea that today's advance is being driven by more than just another rush into mega-cap technology.

There are still a few pockets of weakness. The communication services sector (-0.3%) is among the weakest S&P 500 groups as The Trade Desk (TTD 13.96, -3.71, -20.98%) plunges following its earnings report, while Alphabet (GOOG 354.26, -2.36, -0.66%) continues to face pressure after reports earlier this week of several senior AI departures. Alphabet is currently the only "Magnificent Seven" component with a week-to-date loss.

The energy sector (-0.4%) also lags despite another increase in crude oil prices. WTI crude is up $0.95 (+1.2%) to $78.23 per barrel, but the group is giving back some of yesterday's outsized gain.

So far, today's action reflects a clear shift in the market's focus from yesterday's oil-driven pressure to a more supportive policy backdrop. Lower yields and reduced expectations for further Fed tightening are helping revive demand for growth and rate-sensitive stocks while keeping participation relatively broad across the market as stocks look to cap an impressive week on a higher note.

Reviewing today's data:

• The July employment report falls into the domain of "bad news is good news." Participants are recognizing that nonfarm payroll growth was weak (actually, there was no growth), that wage inflation disinflated, and that the labor force participation rate continues to dwindle.
  • The key takeaway from the report is that it was soft enough, presumably, to keep Fed officials in a wait-and-see mode, such that they could see a better case now for not raising the target range for the fed funds rate at the September FOMC meeting.

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

The communication services sector (-0.4%) remains one of the weakest S&P 500 sectors today, as a sharp loss in The Trade Desk (TTD 13.92, -3.74, -21.19%)combines with continued weakness in Alphabet (GOOG 353.50, -3.12, -0.87%) after reports of the departure of senior AI staff earlier this week. The stock is currently the only "Magnificent Seven" member that holds a week-to-date loss (-0.6%).

[BRIEFING.COM] The major averages remain higher at midday, though the gains of the S&P 500 (+0.6%) and Nasdaq Composite (+1.2%) are considerably firmer than that of the DJIA (+0.1%).

First Solar (FSLR 254.74, +10.60, +4.34%)and other solar names sport gains today after President Trump signed a proclamation that puts a 15% ad valorem tariff on derivative products that are downstream of polysilicon to encourage the onshoring of these industries.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+1.3%), and DJIA (+0.3%) are rebounding from an underwhelming finish yesterday with a solid showing today. Gains are broad, and leadership from mega-cap and other growth-oriented pockets of the market is showing up at the index level.

The market received a boost just before the open in the form of the July employment report, which came in softer than expected, showing no payroll growth in July and a large downward revision to the June figures. The report has tempered expectations for additional tightening from the Fed. The probability of a 25-basis point rate hike at the September FOMC meeting has fallen to 41.9% from 55.0% yesterday, while the probability of at least one hike by October has dropped to 57.3% from 71.0%.

The shifting outlook has been particularly supportive of growth stocks so far. The Vanguard Mega Cap Growth ETF is up 1.0%, the PHLX Semiconductor Index is up 2.3%, the Russell 2000 is up 0.9%, and the S&P Mid Cap 400 is up 1.3%. Treasury yields are lower across the curve, with sharp gains in homebuilders and other interest-sensitive names (alongside strength in mega-caps) helping the consumer discretionary sector (+2.0%) outperform.

[BRIEFING.COM] The major averages continue to trade in a relatively stable range.

Software names continue to outperform, with the iShares GS Software ETF (IGV 102.37, +2.95, +2.97%) firmly higher. Cloudflare (NET 304.48, +20.06, +7.05%)is a standout after earnings, while Palantir Technologies (PLTR 170.45, +14.53, +9.32%) soars higher again to add to impressive gains from earlier in the week. Yesterday's post-earnings laggards, Datadog (DDOG 235.20, +5.91, +2.58%) and AppLovin (APP 345.37, +9.70, +2.89%), are also taking back a chunk of their previous weakness.

[BRIEFING.COM] The Nasdaq Composite (+0.9%), S&P 500 (+0.4%), and DJIA (+0.2%) are holding on to their early gains despite some choppiness across semiconductor stocks.

Earnings continue to be a driver of notable stock-specific moves, with Airbnb (ABNB 175.89, +24.25, +15.99%) the best-performing S&P 500 component after delivering one of its strongest quarters in years and, more importantly, raising its full-year revenue and profitability outlook as booking momentum accelerated across the platform.

Meanwhile, The Trade Desk (TTD 14.14, -3.54, -20.01%) is the index's worst performer after disappointing with its Q2 report last night, reinforcing concerns over its ongoing growth deceleration. Revenue increased just 3% year-over-year to $715 million, falling short of expectations and TTD's prior guidance of at least $750 million, while its Q3 revenue guidance of at least $650 million was well below expectations. The guidance implies a roughly 12% year-over-year decline, which would mark TTD's first quarterly revenue decline since Q2 2020.

[BRIEFING.COM] The stock market is off to a solid start this morning, with the tech-heavy Nasdaq Composite (+0.7%) out in front while the S&P 500 (+0.3%) and DJIA (+0.2%) hold more modest gains.

Growth-oriented stocks are outperforming early after a softer July employment report increases the likelihood of the FOMC staying in "wait and see" mode in the near term.

The consumer discretionary sector (+1.6%) leads the advance, with Tesla (TSLA 325.46, +5.92, +1.85%) and Amazon (AMZN 276.88, +4.62, +1.70%) sporting strong early gains while Airbnb (ABNB 175.40, +23.76, +15.67%) is a post-earnings standout.

The information technology sector (+0.7%) is another outperformer, supported by a 1.2% gain in the PHLX Semiconductor Index. Software names are also moving higher this morning following the latest batch of earnings reports after the group underperformed yesterday.

Meanwhile, the energy sector (-1.6%) is the only S&P 500 sector that holds a loss wider than 0.4%. Crude oil is flat as the market waits for more color on Iran's draft plan for the Strait of Hormuz.

The stock market is now on track for a firmly higher opening following the release of the July employment report.

The July employment report falls into the domain of "bad news is good news." Participants are recognizing that nonfarm payroll growth was weak (actually, there was no growth), that wage inflation disinflated, and that the labor force participation rate continues to dwindle.

The key takeaway from the report is that it was soft enough, presumably, to keep Fed officials in a wait-and-see mode, such that they could see a better case now for not raising the target range for the fed funds rate at the September FOMC meeting.

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

Equity indices in the Asia-Pacific region ended the week on a mixed note. China reported a larger-than-expected trade surplus for July, though the total was down from June's record level of $125 bln. Chinese AI models from Alibaba and Moonshot are becoming more expensive. President Trump implemented a 15% tariff on polysilicon products from China and announced a price floor.

• In economic data:
  • China's July trade surplus $112.50 bln (expected surplus of $108.60 bln; last surplus of $125.62 bln). July Imports 27.5% yr/yr (expected 27.9%; last 36.0%) and Exports 23.9% yr/yr (expected 22.2%; last 27.0%)
  • Japan's June Household Spending -6.4% m/m (expected -3.1%; last 3.7%); -3.3% yr/yr (expected 0.8%; last -0.4%). June Leading Index 116.4 (expected 116.5; last 116.4) and Coincident Indicator 0.3% m/m (expected 0.4%; last -0.2%)

---Equity Markets---

• Japan's Nikkei: -0.1% 
• Hong Kong's Hang Seng: +0.5% 
• China's Shanghai Composite: +1.0% 
• India's Sensex: -0.6% 
• South Korea's Kospi: -0.6% 
• Australia's ASX All Ordinaries: -0.1%

Major European indices trade in the green. FT reported that the European Central Bank was not aware of the Fed's participation in the yen intervention last week. Insurer Allianz beat profit expectations for Q2 while Daimler reported weak results.

• In economic data:
  • Germany's June trade surplus EUR15.4 bln (expected surplus of EUR17.2 bln; last surplus of EUR19.4 bln). June Imports 4.4% m/m (expected 1.0%; last -2.6%) and Exports 0.9% m/m (expected 0.2%; last 1.1%). June Industrial Production 0.2% m/m (expected 0.2%; last 0.7%); 0.0% yr/yr (last -0.1%)
  • France's Q2 Unemployment Rate 8.3% (expected 8.2%; last 8.1%). June trade deficit EUR5.8 bln (expected deficit of EUR6.5 bln; last deficit of EUR7.7 bln). June Current Account deficit EUR1.40 bln (last deficit of EUR1.20 bln) 
  • Swiss Q3 SECO Consumer Climate -33 (expected -34; last -40)

---Equity Markets---

• STOXX Europe 600: +0.7% 
• Germany's DAX: +1,0% 
• U.K.'s FTSE 100: +0.6% 
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.5% 
• Spain's IBEX 35: +0.5% 

The S&P 500 futures currently trade 20 points above fair value.

Just released, nonfarm payrolls decreased by 23,000 in July (Briefing.com consensus 86,000), from a downwardly revised prior increase of 20,000 (from 57,000).

Nonfarm private payrolls increased by 30,000 (Briefing.com consensus 69,000), from a downwardly revised prior increase of 30,000 (from 49,000).

The unemployment rate decreased to 4.1% (Briefing.com consensus 4.2%), from the previous level of 4.2%.

Average hourly earnings increased by 0.1% (Briefing.com consensus 0.3%), following a prior increase of 0.3%.

The average workweek remained unchanged at 34.3 hours (Briefing.com consensus 34.3).

Equity futures point to a higher open this morning after stocks finished mostly lower yesterday. Action was relatively subdued, but a notable intraday surge in oil prices followed reports of escalating tensions in the Middle East, weighing on the broader market.

Crude oil is moving modestly lower this morning despite Bloomberg reporting that Iran wants to require compensation from "hostile countries" before they are allowed to use the Strait of Hormuz, with the U.S. insisting on free transit through the Strait of Hormuz.

Investors are awaiting an important labor data point at 8:30 a.m. ET in the form of the July Employment Situation Report, which is expected to show nonfarm payrolls increasing by 86,000 (Briefing.com consensus) and the unemployment rate remaining steady at 4.2% (Briefing.com consensus).

Additionally, the market has plenty of earnings results to assess from yesterday afternoon and this morning, and while there are some notable moves in the mix, the most recent slate lacks some of the market-moving potential from previous rounds this week.

While the past two sessions have been relatively underwhelming, the major averages are still on track for impressive weekly gains due to big moves from hyperscalers and semiconductors earlier in the week.

In corporate news:

• Airbnb (ABNB 162.88, +11.24, +7.4%) beat EPS expectations by $0.11, reported revenues in-line, guided Q3 revs above consensus, and expects FY26 revenue growth to improve to at least mid-teens. 
• Alphabet (GOOG 356.78, +0.16, +0.0%) plans on consolidating AI leadership in the U.S., according to Financial Times.
• Cloudfare (NET 328.95, +44.52, +15.7%) beat EPS expectations by $0.02 and beat revenue expectations.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: -0.1%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +1.0%, India's Sensex: -0.6%, South Korea's Kospi: -0.6%, Australia's ASX All Ordinaries: -0.1%.

In news:

• China reported a larger-than-expected trade surplus for July, though the total was down from June's record level of $125 bln.
• Chinese AI models from Alibaba and Moonshot are becoming more expensive.
• President Trump implemented a 15% tariff on polysilicon products from China and announced a price floor.

In economic data:

• China's July trade surplus $112.50 bln (expected surplus of $108.60 bln; last surplus of $125.62 bln). July Imports 27.5% yr/yr (expected 27.9%; last 36.0%) and Exports 23.9% yr/yr (expected 22.2%; last 27.0%)
• Japan's June Household Spending -6.4% m/m (expected -3.1%; last 3.7%); -3.3% yr/yr (expected 0.8%; last -0.4%). June Leading Index 116.4 (expected 116.5; last 116.4) and Coincident Indicator 0.3% m/m (expected 0.4%; last -0.2%)

Major European indices trade in the green. STOXX Europe 600: +0.7%, Germany's DAX: +0.8%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.4%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.3%.

In news:

• FT reported that the European Central Bank was not aware of the Fed's participation in the yen intervention last week.
• Insurer Allianz beat profit expectations for Q2 while Daimler reported weak results.

In economic data:

• Germany's June trade surplus EUR15.4 bln (expected surplus of EUR17.2 bln; last surplus of EUR19.4 bln). June Imports 4.4% m/m (expected 1.0%; last -2.6%) and Exports 0.9% m/m (expected 0.2%; last 1.1%). June Industrial Production 0.2% m/m (expected 0.2%; last 0.7%); 0.0% yr/yr (last -0.1%)
• France's Q2 Unemployment Rate 8.3% (expected 8.2%; last 8.1%). June trade deficit EUR5.8 bln (expected deficit of EUR6.5 bln; last deficit of EUR7.7 bln). June Current Account deficit EUR1.40 bln (last deficit of EUR1.20 bln)
• Swiss Q3 SECO Consumer Climate -33 (expected -34; last -40)

[BRIEFING.COM] After a relatively quiet start, stocks drifted lower on Thursday as an intraday surge in oil prices outweighed an early rebound across technology stocks and another generally encouraging batch of corporate earnings. The S&P 500 slipped 0.2%, giving back an early gain but finding some support near the 7,700 level, while the Nasdaq Composite edged 0.1% lower and the DJIA lagged with a 0.9% decline. The Russell 2000 (-0.6%) and S&P MidCap 400 (-0.3%) also retreated from yesterday's record highs.

Technology initially provided a stabilizing influence after opening the session under pressure. Sandisk (SNDK 1258.58, -91.92, -6.81%) and Western Digital (WDC 451.52, -67.65, -13.03%) both suffered sharp opening losses following their earnings reports, but recovered considerably from their worst levels as the morning progressed. Sandisk delivered strong quarterly results, though its guidance disappointed investors, while Western Digital appeared to face some profit-taking after its recent rally as investors looked for a more robust report. The recovery in both memory names helped spark an early rebound across the broader semiconductor group. The PHLX Semiconductor Index climbed more than 1.0% before surrendering most of that advance to finish just 0.3% higher. Gains were relatively modest but consistent across much of the group, with Advanced Micro Devices (AMD 489.28, +7.23, +1.50%) reclaiming a portion of its post-earnings decline.

The information technology sector (+0.1%) finished as one of just three S&P 500 sectors in positive territory. Software remained a weak spot within the sector. AppLovin (APP 335.67, -82.13, -19.66%) plunged after reporting in-line earnings and weaker-than-expected revenue, while Datadog (DDOG 229.29, -53.88, -19.03%) sold off as investors focused on a slowdown in sequential growth. Those declines weighed on the iShares GS Software ETF (IGV 99.46, -1.86, -1.83%), though continued strength in Microsoft (MSFT 499.86, +12.40, +2.54%) helped offset some of the weakness.

The early rebound in technology took some momentum away from the broader market, which had initially benefited from strength across more defensive and cyclical areas. The tone shifted late in the morning, however, after reports that Houthi forces had attacked a Saudi-flagged tanker in the Red Sea sent oil prices sharply higher. Reuters later reported that a draft version of the proposed U.S.-Iran agreement, which is expected to be voted on by Iran's parliament, would prohibit U.S.- and Israel-linked vessels from transiting the Strait of Hormuz. WTI crude oil futures settled $2.09 higher (+2.8%) at $77.27 per barrel, leaving the energy sector (+1.6%) as the clear standout. The increase in oil prices also pushed Treasury yields higher, contributing to a less supportive backdrop for stocks throughout the remainder of the session.

The health care sector (+0.1%) eked out a modest gain shortly before the close, joining energy and information technology as the only sectors to finish higher.

Meanwhile, the communication services sector (-0.7%) ranked among the day's weakest performers. Alphabet (GOOG 356.62, -3.51, -0.97%) remained under pressure following reports yesterday that several high-profile AI leaders are leaving the company. Bloomberg also reported that the company is preparing to raise approximately $25 billion through a bond offering. The Trade Desk (TTD 17.67, -1.29, -6.80%) added to the sector's weakness ahead of its earnings report after the close.

The industrials sector (-0.8%) also lagged as Honeywell (HON 240.74, -7.38, -2.97%) and Axon (AXON 522.46, -87.03, -14.28%) suffered sharp post-earnings declines. The group faced additional pressure from oil-sensitive airline and trucking names as crude prices climbed.

Elsewhere, the materials sector (-0.9%) pulled back following its strong start to the week, while the utilities (-0.9%) and real estate (-1.0%) sectors continued to underperform.

Today's action marked another pause following the market's strong rally earlier this week, as investors continued to reward solid earnings while holding technology companies to a high bar. Attention now turns to Friday's July Employment Situation Report and next week's Consumer Price Index, with the latter taking on added significance after the Financial Times reported that Fed Chair Kevin Warsh remains open to raising rates at the upcoming FOMC meeting if inflation fails to cool.

U.S. Treasuries retreated on Thursday, pulling back from three days of steady gains. The 2-year note yield settled up seven basis points to 4.25% and the 10-year note yield settled up five basis points to 4.67%. 

• Russell 2000: +20.9% YTD
• S&P Mid Cap 400: +16.0% YTD
• Nasdaq Composite: +13.4% YTD
• S&P 500: +12.6% YTD
• DJIA: +12.1% YTD

Reviewing today's data:

• Q2 Productivity - Prel 1.4% (Briefing.com consensus 0.8%); Prior was revised to 0.8% from 0.3%, Q2 Unit Labor Costs - Prel 1.3% (Briefing.com consensus 1.7%); Prior was revised to 1.3% from 1.8%
  • The key takeaway from the report is that rising productivity helped keep labor costs in check.
• Weekly Initial Claims 199K (Briefing.com consensus 200K); Prior was revised to 198K from 197K, Weekly Continuing Claims 1.801 mln; Prior was revised to 1.777 mln from 1.782 mln
  • The key takeaway from the report, once again, is the extraordinarily low level of initial jobless claims, which reflects an environment in which employers are still reluctant to cut staff. That will be read as a good sign for economic demand.
• June Wholesale Inventories 0.2% (Briefing.com consensus 0.3%); Prior 0.3%