[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.4%), and DJIA (+0.2%) are charting session highs as strength in mega-cap tech names pushes the major averages higher despite weak breadth. The smaller-cap Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.3%) have improved from session lows but remain in negative territory.

Unsurprisingly, today's action comes on lower than average volume, with subdued action keeping the major averages flat for much of the morning. 

The information technology sector (+0.7%) began a steady ascent from session lows in negative territory around 10:00 a.m. NVIDIA (NVDA 188.12, +4.43, +2.41%) leads the advance and is one of the best-performing S&P 500 names today. Notably, the office of the United States Trade Representative announced that it will be placing tariffs on semiconductors from China, but the tariff rate will remain at 0% for 18 months. 

Broadcom (AVGO 348.04, +6.58, +1.93%) also trades higher, though the PHLX Semiconductor Index (+0.4%) holds a more modest gain as other chipmaker names put up mixed performances. 

The communication services sector (+0.9%) holds the widest gain, with strong leadership coming from Alphabet (GOOG 315.28, +3.95, +1.27%). Strength across the market's largest names seats the Vanguard Mega Cap Growth ETF with a 0.5% gain, contributing to the outperformance of the market-weighted S&P 500 over the S&P 500 Equal Weighted Index (-0.3%). 

Five S&P 500 sectors currently hold gains amid weak breadth figures that see decliners outpace advancers by a roughly 3-to-2 margin on the NYSE and a roughly 5-to-3 clip on the Nasdaq. 

Losses are modest in nature, with the real estate (-0.3%) sector holding the widest loss. The defensive health care (-0.2%) and consumer staples (-0.2%) sectors are also among today's laggards. 

Corporate news flow has been light, which is not surprising given the upcoming holidays. Novo Nordisk A/S (NVO 52.26, +4.16, +8.66%) trades sharply higher after becoming the first company to gain FDA approval for an oral GLP-1 weight-loss pill, while ServiceNow (NOW 153.00, -3.68, -2.35%) trades lower after agreeing to acquire Armis for $7.5 billion. 

Meanwhile, the market received a sizable batch of economic data this morning. In particular, the GDP advanced at a 4.3% year-over-year rate in Q3 (Briefing.com consensus 3.0%), which was hotter than expected. The stock market opened flat following the delayed data release, though it did prove to send treasury yields higher. The 2-year note yield is up three basis points to 3.54%, and the 10-year note yield is back to its unchanged level at 4.17%. 

Reviewing today's data:

• Q3 GDP-Adv. 4.3% (Briefing.com consensus 3.0%); Prior 3.8%, Q3 GDP Deflator-Adv. 3.8% (Briefing.com consensus 2.7%); Prior 2.1%
  • The key takeaway from the report is that the U.S. economy was certainly running on the warm side in Q3. That will stir some concerns about the Fed's recent decision to cut rates in December and the risk of stoking increased inflation in pursuit of keeping the economy on a growth trajectory.
• October Durable Orders -2.2% (Briefing.com consensus 0.3%); Prior was revised to 0.7% from 0.5%, October Durable Goods - ex transportation 0.2% (Briefing.com consensus -1.1%); Prior was revised to 0.7% from 0.6%
  • The key takeaway from the report is that it was a better indicator of growth than meets the headline eye, evidenced by the 0.7% month-over-month increase in shipments and 0.5% month-over-month increase in new orders for nondefense capital goods excluding aircraft.
• November Industrial Production 0.2% (Briefing.com consensus 0.1%); Prior -0.1%, November Capacity Utilization 76.0% vs (Briefing.com consensus 77.4%); Prior 75.9%
  • The key takeaway from the report is that the uptick in November was driven entirely by mining output, which offset the absence of growth in manufacturing output and a 0.4% decline in utilities output.
• December Consumer Confidence 89.1 vs (Briefing.com consensus 89.0); Prior was revised to 92.9 from 88.7
  • The key takeaway from the report is that confidence sagged in December due largely to worries about labor market conditions.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.4%), and DJIA (+0.2%) hover at session highs shortly after midday. 

ServiceNow (NOW 152.53, -4.15, -2.65%) announced a big acquisition in the cybersecurity space this morning. ServiceNow will acquire Armis for $7.75 billion in cash. Armis is a leader in cyber exposure management and cyber-physical security. It manages cyber risk across the full attack surface in IT, operational technology (OT), medical devices, and other environments. The acquisition will expand ServiceNow's current security workflow offerings.

The deal could also drive cross-sell and upsell opportunities into ServiceNow's large enterprise customer base. However, ServiceNow shares are trading lower, likely because the acquisition comes at a premium valuation (~23 Armis's current ARR), which raises concerns about near-term dilution and integration risk, particularly given ServiceNow's recent string of acquisitions (Moveworks, Veza) and leverage.

[BRIEFING.COM] The major averages continue to chart session highs as the information technology sector (+0.6%) trades higher, with the S&P 500 currently trading just a few points below its all-time closing high (6,901).

NVIDIA (NVDA 187.94, +4.25, +2.31%) leads the advance and has moved back above its 50-day moving average (185.64). Mixed performances across other chipmakers seat the PHLX Semiconductor Index (+0.4%) with a more modest gain. 

In particular, First Solar (FSLR 266.20, -18.39, -6.46%) gives back almost the entirety of yesterday's 6.6% advance that was the best among S&P 500 names. 

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.2%) hold modest gains just before midday amid another relatively uneventful holiday week session. 

The major averages moved modestly higher after a morning spent flat, tracking improvements to the information technology sector (+0.5%), which now trades at session highs. NVIDIA (NVDA 186.92, +3.23, +1.76%) once again provides solid leadership, with Apple (AAPL 271.86, +0.89, +0.33%) and Microsoft (MSFT 486.20, +1.28, +0.26%) holding more modest gains. 

Alphabet (GOOG 315.22, +3.89, +1.25%) also trades higher, lifting the communication services sector (+0.8%) to the top of the leaderboard. 

The Vanguard Mega Cap Growth ETF is up 0.4%, helping the major averages trade higher despite relatively weak breadth figures, with decliners outpacing advancers by a roughly 3-to-2 margin on the NYSE and a roughly 9-to-2 clip on the NASDAQ. 

Meanwhile, the Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.5%) lag after outperforming yesterday.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (-0.3%), and DJIA (+0.2%) now trade higher across the board. 

Novo Nordisk A/S (NVO 52.16, +4.06, +8.44%) is trading sharply higher after the FDA approved the Wegovy pill for weight loss, making it the first oral GLP-1 receptor agonist approved for chronic weight management. The Wegovy pill delivered weight loss comparable to injectable Wegovy 2.4 mg in the OASIS-4 trial, while reaffirming the well-known safety and tolerability profile of semaglutide.

The FDA approval of the Wegovy pill is a meaningful positive catalyst for Novo Nordisk, as it expands the GLP-1 franchise into a far more patient-friendly format that could significantly broaden adoption. Oral delivery should improve compliance and expand access, particularly among needle-averse patients, while also offering potential cost advantages over injectables. That said, competition is quickly heating up, with Eli Lilly (LLY 1075.04, -1.44, -0.13%) and Pfizer (PFE 25.14, -0.07, -0.27%) both emerging as formidable threats in the obesity market. While today's news helps stabilize sentiment after a challenging period for NVO, long-term upside will depend on execution, pricing power at higher doses, and the company's ability to defend share as rival oral GLP-1s reach the market.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (flat), and DJIA (flat) continue to trade in a tight range near their baselines as several sectors oscillate around their unchanged levels. 

Meanwhile, the small-cap Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.5%) face some selling pressure after outperforming their larger-cap counterparts in yesterday's action. 

The Conference Board's Consumer Confidence Index dropped to 89.1 in December (Briefing.com consensus 89.0) from an upwardly revised 92.9 (from 88.7) in November. In the same period a year ago, the index stood at 109.5.

The key takeaway from the report is that confidence sagged in December due largely to worries about labor market conditions.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (flat), and DJIA (flat) sit flattish shortly after a subdued opening.

Five S&P 500 sectors hold gains, but only the communication services sector (+0.7%) advances more than 0.3% as Alphabet (GOOG 315.06, +3.73, +1.20%) is an early mega-cap standout. 

Losses are also modest and paced by the consumer staples sector (-0.3%), which has struggled in December amid some renewed buying interest across growth names. 

On the data front, industrial production increased 0.2% month-over-month in November (Briefing.com consensus 0.1%) following a 0.1% decline in October. The capacity utilization rate was 76.0% (Briefing.com consensus 77.4%) versus 75.9% in October. Total industrial production increased 2.5% yr/yr, while the capacity utilization rate was 3.5 percentage points below its long-run average.

The key takeaway from the report is that the uptick in November was driven entirely by mining output, which offset the absence of growth in manufacturing output and a 0.4% decline in utilities output.

Just released, the Conference Board's Consumer Confidence Index decreased to 89.1 in December (Briefing.com consensus 89.0) from an upwardly revised 92.9 (from 88.7) in November.

The stock market is now on track for a modestly lower opening amid an economic data-heavy morning.

Real GDP increased at an annual rate of 4.3% in the third quarter (Briefing.com consensus: 3.0%), paced by the contributions from personal spending and exports. The GDP deflator, meanwhile, increased 3.8% (Briefing.com consensus: 2.7%) following a 2.1% increase in the second quarter.

The key takeaway from the report is that the U.S. economy was certainly running on the warm side in Q3. That will stir some concerns about the Fed's recent decision to cut rates in December and the risk of stoking increased inflation in pursuit of keeping the economy on a growth trajectory.

Durable goods orders declined 2.2% month-over-month in October (Briefing.com consensus: 0.3%), with transportation equipment orders (-6.5%) acting as the drag. Excluding transportation, durable goods orders increased 0.2% month-over-month (Briefing.com consensus: -1.1%) following an upwardly revised 0.7% increase (from 0.6%) in September.

The key takeaway from the report is that it was a better indicator of growth than meets the headline eye, evidenced by the 0.7% month-over-month increase in shipments and 0.5% month-over-month increase in new orders for nondefense capital goods excluding aircraft.

Just released, industrial production increased 0.2% month-over-month in November (Briefing.com consensus 0.1%) following a 0.1% decrease in October.

The capacity utilization rate was 76.0% in November (Briefing.com consensus 77.4%), up from the previous reading of 75.9%. 

The S&P 500 futures currently trade 13 points below fair value.

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday. The Japanese yen extended yesterday's bounce off this year's low territory against the dollar after Finance Minister Katayama said that the Bank of Japan and the Ministry of Finance are ready and willing to intervene in the foreign exchange market. Japan will keep its general budget below JPY30 trln for fiscal 2026 and assume long-term rates of about 3.0%, representing a 20-year high. The Standing Committee of China's National People's Congress said it will support reasonable financing needs of developers and property firms. New Zealand reached a trade agreement with India.

• In economic data:
  • Japan's October BoJ Core CPI 2.2% yr/yr, as expected (last 2.2%)
  • Singapore's November CPI 0.3% m/m (last 0.0%); 1.2% yr/yr (expected 1.3%; last 1.2%). November Core CPI 1.2% yr/yr, as expected (last 1.2%)

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -0.1%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.1%
• South Korea's Kospi: +0.3%
• Australia's ASX All Ordinaries: +1.1%

Major European indices trade on a mostly lower note amid reduced participation ahead of tomorrow's Christmas Eve closure in Germany, Switzerland, and Italy and early closes in the U.K., Spain, and France. European Central Bank policymaker Schnabel said that a rate hike should not be expected in the near future, echoing recent comments from other policymakers. A spokesperson from the Russian government said that the recent talks in Florida about ending the war in Ukraine should not be seen as a breakthrough.

• In economic data:
  • Germany's November Import Price Index 0.5% m/m (expected 0.2%; last 0.2%); -1.9% yr/yr (last -1.4%)
  • Italy's November non-EU trade surplus EUR6.92 bln (last surplus of EUR5.32 bln)
  • Spain's November PPI -2.5% yr/yr (last 0.8%). Q3 GDP 0.6% qtr/qtr, as expected (last 0.7%); 2.8% yr/yr, as expected (last 2.9%)
  • Swiss December ZEW Expectations 6.2 (last 12.2)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: -0.2%
• Spain's IBEX 35: -0.2%

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

Just released, the first estimate for Q3 GDP registered at 4.3% (Briefing.com consensus 3.0%), from a final Q2 level of 3.8%.

The GDP price deflator checked in at a preliminary level of 3.8% (Briefing.com consensus 2.7%), from a final Q2 level of 2.1%.

Durable goods orders decreased 2.2% month-over-month in October (Briefing.com consensus 0.3%) following an upwardly revised 0.7% increase (from 0.5%) in September.

Excluding transportation, durable goods orders decreased 0.2% (Briefing.com consensus -1.1%) following an upwardly revised 0.7% increase (from 0.6%) in September

Equity futures point to a flat opening this morning after the third consecutive winning session for the S&P 500 yesterday. 

The major averages advanced in broad fashion yesterday, each gaining around 0.5% amid a quiet, low-volume session to kick off the holiday week. The recent winning streak for stocks saw the S&P 500 close roughly 20 points below its all-time closing high from December 11 and just over 40 points below its all-time intraday high from October 29. 

Headlines are once again quiet this morning, which is unsurprising given the upcoming holiday schedule. The market will close at 1:00 p.m. ET Wednesday for Christmas Eve and will be closed all day Thursday for the Christmas holiday.

However, market participants will receive a full slate of economic data today, which includes the first estimate of Q3 GDP (Briefing.com consensus 3.0%) and October Durable Orders (Briefing.com consensus 0.3%) at 8:30 a.m. ET, followed by the November Industrial Production (Briefing.com consensus 0.1%) and Capacity Utilization (Briefing.com consensus) readings at 9:15 a.m. ET, and finally the December Consumer Confidence Index (Briefing.com consensus 89.0) at 10:00 a.m. ET.

In corporate news:

• President Trump is considering putting seized Venezuelan oil in the strategic petroleum reserve, according to CNBC.
• Johnson & Johnson (JNJ 205.19, -2.13, -1.0%) will appeal the $1.5 billion talc cancer payout that a jury ordered, according to Reuters.
• Novo Nordisk A/S (NVO 51.66, +3.56, +7.4%) shares are higher after the FDA approved a pill version of the company's GLP-1 weight loss drug Wegovy, making it the first oral GLP-1. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Tuesday. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -0.1%, China's Shanghai Composite: +0.1%, India's Sensex: -0.1%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: +1.1%.

In news:

• The Japanese yen extended yesterday's bounce off this year's low territory against the dollar after Finance Minister Katayama said that the Bank of Japan and the Ministry of Finance are ready and willing to intervene in the foreign exchange market.
• Japan will keep its general budget below JPY30 trln for fiscal 2026 and assume long-term rates of about 3.0%, representing a 20-year high.
• The Standing Committee of China's National People's Congress said it will support reasonable financing needs of developers and property firms.
• New Zealand reached a trade agreement with India.

In economic data:

• Japan's October BoJ Core CPI 2.2% yr/yr, as expected (last 2.2%)
• Singapore's November CPI 0.3% m/m (last 0.0%); 1.2% yr/yr (expected 1.3%; last 1.2%). November Core CPI 1.2% yr/yr, as expected (last 1.2%)

Major European indices trade on a mostly lower note amid reduced participation ahead of tomorrow's Christmas Eve closure in Germany, Switzerland, and Italy and early closes in the U.K., Spain, and France. STOXX Europe 600: +0.2%, Germany's DAX: +0.1%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.3%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.4%.

In news:

• European Central Bank policymaker Schnabel said that a rate hike should not be expected in the near future, echoing recent comments from other policymakers.
• A spokesperson from the Russian government said that the recent talks in Florida about ending the war in Ukraine should not be seen as a breakthrough.

In economic data:

• Germany's November Import Price Index 0.5% m/m (expected 0.2%; last 0.2%); -1.9% yr/yr (last -1.4%)
• Italy's November non-EU trade surplus EUR6.92 bln (last surplus of EUR5.32 bln)
• Spain's November PPI -2.5% yr/yr (last 0.8%). Q3 GDP 0.6% qtr/qtr, as expected (last 0.7%); 2.8% yr/yr, as expected (last 2.9%)
• Swiss December ZEW Expectations 6.2 (last 12.2)

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) spent the first session of the Christmas week trading in a stable range, capturing decent gains on broad strength. The Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.9%) notched even wider gains. 

Ten S&P 500 sectors finished higher, with four advancing 1.0% or further. 

The materials sector (+1.4%) captured the widest gain as silver and gold both set fresh record highs today, with Newmont Corporation (NEM 104.88, +3.59, +3.54%) and Freeport-McMoRan (FCX 50.64, +1.49, +3.03%) outperforming as a result. 

Oil prices were also higher today, amid reports that the U.S. is pursuing a third sanctioned tanker off the coast of Venezuela. Crude oil futures settled today's session $1.50 higher (+2.7%) at $58.03 per barrel, keeping the energy sector (+1.1%) near the top of today's leaderboard. 

Elsewhere the financials sector (+1.3%) was supported by solid gains in its investment manager and major banking names, while aerospace and defense stocks boosted the industrials sector (+1.1%). 

While the information technology sector (+0.4%) was not one of the day's top performers, its modest gain highlights some lingering enthusiasm around the AI trade. Strength in chipmakers saw the PHLX Semiconductor Index close 1.1% higher. NVIDIA (NVDA 183.69, +2.70, +1.49%) provided solid leadership, with Reuters reporting that the company looks to begin H200 shipments to China by mid-February. Additionally, Micron (MU 276.59, +10.67, +4.01%) extended its post-earnings run, and First Solar (FSLR 284.59, +17.61, +6.60%) was the top-performing S&P 500 name.

Only the defensive consumer staples sector (-0.4%), which was a laggard last week amid renewed optimism in the AI trade, finished lower. 

In corporate news, Paramount Skydance (PSKY 13.61, +0.56, +4.29%) once again garnered a fair share of coverage today in its takeover bid for Warner Bros. Discovery (WBD 28.75, +0.98, +3.53%). Paramount amended its $30 per share all-cash offer for Warner Bros. Discovery to include an irrevocable personal guarantee of $40.4 billion of the equity financing from Larry Ellison.

There was no economic data of note, and Fed commentary had a minimal impact on the market's rate-cut expectations for 2026. Fed Governor Stephen Miran (voting FOMC member) told Bloomberg that more rate cuts are needed to avoid risks of a recession, while Cleveland Fed President Beth Hammack (voting FOMC member in 2026) said interest rates should remain unchanged for several months. 

All told, today's session progressed in a relatively uneventful manner, which is unsurprising given the holiday week. Though gains were not as wide as the tech-fueled rally of last Thursday and Friday, the major averages still advanced on broad strength, lifting the S&P 500 to the doorstep of another record high. 

U.S. Treasuries began the Christmas week on a modestly lower note, with shorter tenors leading a quiet Monday dip as today's $69 billion 2-year note auction was met with weak demand. The 2-year note yield settled up two basis points to 3.51%, and the 10-year note yield settled up two basis points to 4.17%. 

• Nasdaq Composite: +21.3% YTD
• S&P 500 : +17.0% YTD
• Russell 2000: +14.7% YTD
• DJIA: +13.7% YTD
• S&P Mid Cap 400: +8.3% YTD