[BRIEFING.COM] Stocks started the week on a weaker note, with an afternoon surge in oil prices adding to selling pressure that had already been evident across much of the broader market. The S&P 500 (-0.5%), Nasdaq Composite (-0.3%), and DJIA (-0.5%) all finished lower, while strength in semiconductor stocks helped limit the Nasdaq's decline.

The market had already displayed a negative bias beneath the surface during the morning, but losses widened as geopolitical concerns pushed oil prices higher in the afternoon. President Trump told reporters that he does not think Iran will agree to the deal he views as necessary ahead of today's expiration of the 60-day ceasefire agreement between the U.S. and Iran. WTI crude oil futures settled $2.06 higher (+2.5%) at $84.46 per barrel.

The late climb in oil left the energy sector (+0.9%) as the only S&P 500 sector to finish higher and overshadowed what had been a strong showing from semiconductor stocks earlier in the session. The PHLX Semiconductor Index (+1.6%) still outperformed considerably, though it surrendered a sizable portion of an earlier gain that had topped 2.5%. Memory stocks remained a bright spot, with Sandisk (SNDK 1786.85, +145.74, +8.88%) extending its recent surge after Commerce Secretary Howard Lutnick said the Trump administration does not want Apple (AAPL 305.59, -0.34, -0.11%) purchasing Chinese memory chips. Applied Materials (AMAT 535.31, +28.13, +5.55%) also rebounded sharply after moving lower on Friday despite delivering a strong beat-and-raise earnings report.

The fading semiconductor rally, combined with weakness across other large technology names, ultimately pulled the information technology sector (-0.2%) into negative territory. Continued enthusiasm surrounding the AI trade provided some support after Anthropic reported a massive jump in revenue, while outside the sector, SpaceX (SPCX 146.23, +6.23, +4.45%) extended its recovery from post-IPO lows following regulatory filings showing newly disclosed positions from NVIDIA (NVDA 225.01, -0.15, -0.07%) and Advanced Micro Devices (AMD 506.00, -8.39, -1.63%).

Weakness remained broad elsewhere. The communication services sector (-1.5%) was among the worst performers as Meta Platforms (META 568.97, -20.88, -3.54%) remained under pressure ahead of opening arguments Tuesday in a child social-media addiction case.

The consumer staples sector (-1.5%) matched that loss amid weakness in alcoholic beverage names. The consumer discretionary (-1.0%) and financials (-1.0%) sectors also lagged. Apparel and homebuilder stocks weighed on consumer discretionary, with NIKE (NKE 39.09, -1.64, -4.03%) falling to its lowest level since late 2014. Homebuilders faced an additional headwind from elevated longer-term Treasury yields after the 30-year yield reached a fresh 19-year high during the session.

The weakness extended beyond the large-cap benchmarks, with the Russell 2000 (-0.4%) and S&P MidCap 400 (-0.3%) also finishing lower.

Monday's session ultimately highlighted the market's inability to capitalize on another strong showing from semiconductor and AI-related stocks. Chip strength provided an important counterweight through much of the day, but broad sector weakness and the afternoon jump in oil prices as the U.S.-Iran ceasefire expired proved too much to overcome, leaving the major averages near their lows at the close.

U.S. Treasuries began the week with steady selling in longer tenors, driving the 30-year note yield to a fresh high for the year while the front end resisted, but also eventually gave in to the pressure. The 2-year note yield settled up one basis point to 4.18%, the 10-year note yield settled up three basis points to 4.72%, and the 30-year note yield settled up four basis points to 5.31%. 

• Russell 2000: +23.2% YTD
• S&P Mid Cap 400: +18.5% YTD
• Nasdaq Composite: +14.6% YTD
• S&p 500: +13.1% YTD
• DJIA: +11.2% YTD

Reviewing today's data:

• August Empire State Manufacturing 20.6 (Briefing.com consensus 11.0); Prior 15.6
• August NAHB Housing Market Index 35 (Briefing.com consensus 34); Prior 34

[BRIEFING.COM] Stocks remain firmly lower following a notable intraday surge in oil prices this afternoon.

The bump in oil prices will keep investors on the lookout for any geopolitical developments this week, which is relatively devoid of other catalysts on the calendar. Tomorrow will be the market's busiest morning on the economic data front, with investors receiving July Housing Starts (Briefing.com consensus 1.360 million) and Building Permits (Briefing.com consensus 1.390 million) among other reports.

[BRIEFING.COM] The major averages continue to drift near their worst levels of the session as the market enters the final hour of today's action.

Crude oil futures settled today's session futures settled today's session $2.06 higher (+2.5%) at $84.46 per barrel. President Trump told reporters that he doesn't think Iran will agree to a deal that he thinks is necessary ahead of today's ceasefire expiration between the U.S. and Iran.The major averages continue to drift near their worst levels of the session as the market enters the final hour of today's action.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.3%), and DJIA (-0.5%) now trade in a relatively stable range near their session lows.

The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.2%) are also retreating from last week's record highs, with weakness in the small-cap Russell 2000 reflecting some upward pressure on Treasury yields this afternoon as oil ticks higher.

[BRIEFING.COM] The major averages remain near session lows as losses widen amid a surge in oil prices and Treasury yields.

Retailer stocks are among the underperformers ahead of a busy week of earnings for the group. The State Street SPDR S&P Retail ETF is down 1.6%.

Home Depot (HD 337.08, -1.78, -0.53%) heads into its quarterly report before the open tomorrow with expectations centered on steady execution rather than a sharp demand rebound. Management last quarter described underlying demand as similar to fiscal 2025, with Pro outperforming DIY and spring categories holding up, but larger discretionary projects and housing affordability pressures remained a drag. This print likely needs to show that comps, Pro share gains, and seasonal demand are still firm enough to support full-year targets while margin pressure stays contained.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.3%), and DJIA (-0.5%) sit at session lows as oil prices surge to their highest levels of the session. WTI crude is currently up $1.87 (+2.3%) to $84.27 per barrel.

Oil climbed roughly 5% last week as tensions between the U.S, and Iran continue to escalate. President Trump threatened to bomb Oman if "it gets in the way" of any U.S. measures to reopen the Strait of Hormuz.

[BRIEFING.COM] The S&P 500 (-0.2%) and DJIA (-0.3%) are modestly lower shortly after midday, while the Nasdaq Composite sits near its flatline as strength across semiconductor stocks helps offset broader weakness elsewhere in the market.

The PHLX Semiconductor Index (+2.6%) is a clear standout, keeping the information technology sector (+0.3%) in positive territory despite weakness in several of the market's largest technology stocks. Memory names are providing particularly strong leadership, with Sandisk (SNDK 1800.19, +159.08, +9.69%) extending its recent surge after Commerce Secretary Howard Lutnick said the Trump administration does not want Apple (AAPL 303.62, -2.31, -0.76%) purchasing Chinese memory chips. Applied Materials (AMAT 538.86, +31.68, +6.25%) is also rebounding after trading lower on Friday despite delivering a strong beat-and-raise earnings report.

The semiconductor strength comes alongside continued enthusiasm surrounding the AI trade after Anthropic reported a massive jump in revenue. Outside the information technology sector, SpaceX (SPCX 148.23, +8.23, +5.88%) is another standout, extending its recovery from post-IPO lows following regulatory filings showing newly disclosed positions from NVIDIA (NVDA 227.00, +1.84, +0.82%) and Advanced Micro Devices (AMD 511.35, -3.04, -0.59%).

The strength in chips is masking a considerably weaker showing beneath the surface. Eight S&P 500 sectors are lower, while the S&P 500 Equal Weight Index (-0.5%) trails its market-cap-weighted counterpart. Mega-cap stocks outside the semiconductor group are also under pressure, leaving the Vanguard Mega Cap Growth ETF down 0.3%. The communication services sector (-1.5%) holds the widest loss, with Meta Platforms (META 567.94, -21.91, -3.71%) under pronounced pressure ahead of opening arguments Tuesday in a child social-media addiction case.

The consumer staples (-1.2%) and consumer discretionary (-1.0%) sectors are also notable laggards. Alcoholic beverage names such as Constellation Brands (STZ) and Molson Coors (TAP) weigh on the former, while weakness across apparel and homebuilder stocks pressures the latter. NIKE (NKE 39.00, -1.74, -4.26%) has fallen to its lowest level since late 2014, contributing to the DJIA's underperformance.

Homebuilders are also struggling as longer-dated Treasury yields climb, with the 30-year yield reaching a fresh 19-year high. The iShares U.S. Home Construction ETF has slipped below both its 50-day and 200-day moving averages, providing another headwind for the consumer discretionary sector.

Geopolitical developments also remain in focus as the 60-day ceasefire agreement between the U.S. and Iran expires today. Iran has reportedly threatened to shift from a fully defensive to an offensive posture if a peace agreement is not reached, though the relatively restrained reaction in crude oil has limited the market impact so far. The energy sector (+0.5%) is higher as oil prices post only a modest gain.

Overall, today's action highlights a notable divergence between continued enthusiasm for semiconductor and AI-related stocks and a softer showing across much of the rest of the market. Chip strength has kept the Nasdaq near unchanged and limited the S&P 500's decline, but weak breadth, pressure across non-semiconductor mega-caps, and rising long-term yields have kept the broader tone subdued.

Reviewing today's data:

• August Empire State Manufacturing 20.6 (Briefing.com consensus 11.0); Prior 15.6
• August NAHB Housing Market Index 35 (Briefing.com consensus 34); Prior 34

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (flat), and DJIA (-0.3%) continue to trade in a stable range.

Shares of Meta Platforms (META 569.16, -20.70, -3.51%) continue to move lower, weighing on the communication services sector (-1.3%). CNBC reports that opening arguments against the company in a child social-media addiction case are set to begin on Tuesday, with some experts saying this could be a "Big Tobacco" moment if Meta is found liable.

[BRIEFING.COM] The major averages are little changed from previous levels at midday.

SpaceX (SPCX 149.14, +9.14, +6.53%) is trading with solid gains today, extending its recent recovery after shares sank to post-IPO lows earlier this month. The stock has now rebounded sharply from that trough, building on two consecutive weekly advances as investors reassess the company following its first quarterly report as a public company.

Today's rally comes on the heels of regulatory filings showing newly disclosed SPCX positions from NVIDIA (NVDA 227.57, +2.41, +1.07%) and Advanced Micro Devices (AMD 512.67, -1.72, -0.33%), adding support from two prominent semiconductor companies. Those holdings provide another vote of confidence in SPCX's long-term rocket, satellite-connectivity, and AI-infrastructure opportunities, although additional share unlocks could continue to create near-term volatility.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.3%) are mixed just before midday as another strong showing from semiconductor names is largely stymied at the index level by broader weakness.

Continued strength in memory names and general enthusiasm across the AI-trade following a massive revenue jump from Anthropic has the PHLX Semiconductor Index up 2.7%, keeping the information technology sector (+0.5%) seated with a solid gain despite pronounced weakness in other mega-cap tech names such as Microsoft (MSFT 484.31, -11.09, -2.24%).

Outside of tech, the broader trend is lower, with eight S&P 500 sectors holding losses. The S&P 500 Equal Weighted Index (-0.7%) trails the market-cap weighted benchmark as a result.

On the macro front, oil is modestly higher today ahead of the expiration of the U.S.-Iran ceasefire, keeping investors on the lookout for any headlines about the conflict heading into the afternoon.

[BRIEFING.COM] The major averages remain mixed, with the DJIA (-0.5%) beginning to lag.

The consumer discretionary sector is underperforming amid weakness across apparel and homebuilder names. NIKE (NKE 39.50, -1.23, -3.02%) is a notable laggard, falling to its lowest level since late 2014 and contributing to the DJIA's (-0.5%) steady move below its flatline.

Homebuilders are also under pressure as longer-dated Treasury yields climb, with the 30-year yield reaching a fresh 19-year high. The iShares U.S. Home Construction ETF (ITB 97.86, -0.92, -0.93%) has slipped back below both its 50-day (98.28) and 200-day (98.69) moving averages. Renewed geopolitical uncertainty is also in the mix as the 60-day ceasefire agreement between the U.S. and Iran expires today.

[BRIEFING.COM] The major averages are now modestly lower an hour into today's action.

The energy sector (+0.5%) is now the best-performing sector despite crude oil staying just below its flatline amid little geopolitical news ahead of the expiration of the U.S.-Iran ceasefire.

Still, longer-dated Treasury yields remain elevated, adding to the market's pressures this morning.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (flat), and DJIA (-0.3%) are mostly lower this morning as broad weakness outweighs a strong opening from semiconductor stocks.

The PHLX Semiconductor Index is up 1.9%, helping keep the information technology sector (+0.2%) above its baseline. Sandisk (SNDK 1777.40, +136.29, +8.30%) and other memory names are particularly strong after Secretary of Commerce Howard Lutnick said the Trump administration does not want Apple (AAPL 305.28, -0.64, -0.21%) buying Chinese memory chips.

Meanwhile, weak breadth figures leave seven S&P 500 sectors moving lower. Mega-cap weakness outside of the semiconductor space weighs on the communication services (-0.6%) and consumer discretionary (-0.6%) sectors, with Meta Platforms (META 578.96, -10.90, -1.85%) the early "Magnificent Seven" laggard.

Elsewhere, the consumer staples sector (-0.9%) holds the widest loss, with alcoholic beverage names such as Constellation Brands (STZ 132.76, -6.42, -4.61%)and Molson Coors Brewing (TAP 41.15, -1.62, -3.79%) among the worst-performing S&P 500 names.

Just released the NAHB Housing Market Index checked in at 35 in August (Briefing.com consensus 34), from the priro reading of 34. 

Equity futures continue to point to a mixed opening this morning, with mega-cap and semiconductor stocks putting the Nasdaq Composite on track for the strongest open as the market enters the back half of a productive August.

Both groups have outperformed so far this month, with the PHLX Semiconductor Index up nearly 10% month-to-date, while the Vanguard Mega Cap Growth ETF is up 5%.

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

Equity indices in the Asia-Pacific region began the week on a mostly higher note while South Korea's markets were closed for a holiday. China's growth figures for July were shy of expectations while Japan's flash Q2 GDP report (0.3% qtr/qtr; 0.5% expected) was also underwhelming, hurt by high prices and lower business spending. JGBs retreated despite the miss since the market remains on watch for more rate hikes from the Bank of Japan. President Trump scaled back annual joint U.S.-South Korea military exercises. Alphabet is planning to sell Australia dollar-denominated debt.

• In economic data:
  • China's July Industrial Production 4.5% yr/yr (expected 5.0%; last 5.3%), July Fixed Asset Investment -6.7% yr/yr (expected -6.2%; last -5.7%), July Retail Sales 0.6% yr/yr (expected 1.5%; last 1.0%), July Unemployment Rate 5.2% (expected 5.1%; last 5.0%)
  • Japan's flash Q2 GDP 0.3% qtr/qtr (expected 0.5%; last 0.5%); 1.1% yr/yr (expected 2.0%; last 1.9%). Q2 GDP Capital Expenditure -1.2% qtr/qtr (expected 0.4%; last -1.0%), Q2 GDP External Demand 0.5% qtr/qtr (expected 0.3%; last 0.3%). Q2 GDP Private Consumption 0.0% qtr/qtr (expected 0.5%; last 0.5%). Q2 GDP Price Index 2.6% yr/yr (expected 2.4%; last 3.2%). June Industrial Production 1.9% m/m (expected 1.3%; last 0.1%) and Capacity Utilization 4.1% m/m (last 0.1%)
  • South Korea's July trade surplus $30.39 bln (expected $30.32 bln; last $36.09 bln). July Imports 26.5% yr/yr, as expected (last 30.0%) and Exports 63.0% yr/yr (expected 62.8%; last 70.7%)
  • Singapore's July trade surplus SGD10.72 bln (last surplus of SGD13.87 bln). July non-oil Exports -0.3% m/m (last -8.8%); 24.2% yr/yr (last 24.4%)
  • New Zealand's July Performance of Services Index 50.6 (last 50.9). July Electronic Card Retail Sales 1.3% m/m (last -1.3%); 3.4% yr/yr (last 1.3%). July FPI 0.1% m/m (last 0.6%)

---Equity Markets---

• Japan's Nikkei: +0.7%
• Hong Kong's Hang Seng: +1.3%
• China's Shanghai Composite: +1.4%
• India's Sensex: -0.4%
• South Korea's Kospi: CLOSED
• Australia's ASX All Ordinaries: -0.4%

Major European indices trade near their flat lines while Italy's MIB (+0.4%) outperforms with help from STMicroelectronics, Ferrari, and select bank stocks. Swiss food distributor SIG Group is down more than 15% after announcing an unexpected CEO change. There is growing focus on the U.K.'s property market after Rightmove reported a sharp drop in average new listed asking prices for homes. Fitch affirmed the U.K.'s AA- rating with a Stable outlook.

• No data today

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: -0.1%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: -0.5%

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

Just released, the August Empire State Manufacturing Survey checked in at 20.6 (Briefing.com consensus 11.0), up from the previous reading of 15.6.

Equity futures point to a mostly higher open this morning as the stock market looks to kick off a week that could be relatively devoid of market-moving catalysts. The S&P 500 is set to open just above its baseline after a relatively quiet previous week, though the index did set new record highs and extended its weekly winning streak to three weeks.

A strong Q2 earnings season continues to wind down, though a host of notable retailer names are set to report results this week.

On the geopolitical front, oil is flat as the U.S.-Iran ceasefire is set to expire today. CNBC reports that tanker traffic through the Strait of Hormuz remains exceptionally low.

Stocks weathered higher oil prices last week, with some relief coming from easing expectations of Fed tightening after several tame inflation readings. There are only a few data points on the calendar this morning (none of which are typically market movers) to kick off a relatively quiet week of releases.

In corporate news:

• Alibaba (BABA 126.88, +3.07, +2.5%) is aiming to sell game developer unit Lingxi Games for more than $2 billion, according to Reuters.
• Memory names are trading higher in the premarket after U.S. Secretary of Commerce Howard Lutnick said that the Trump administration does not want Apple (AAPL 307.15, +1.22, +0.4%) buying Chinese memory chips, according to The Wall Street Journal.
• NVIDIA (NVDA 226.74, +1.58, +0.7%) downsized plans to guarantee a $250 billion OpenAI Ohio data center, according to The Wall Street Journal. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mostly higher note while South Korea's markets were closed for a holiday. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +1.3%, China's Shanghai Composite: +1.4%, India's Sensex: -0.4%, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: -0.4%.

In news:

• China's growth figures for July were shy of expectations while Japan's flash Q2 GDP report (0.3% qtr/qtr; 0.5% expected) was also underwhelming, hurt by high prices and lower business spending.
• JGBs retreated despite the miss since the market remains on watch for more rate hikes from the Bank of Japan.
• President Trump scaled back annual joint U.S.-South Korea military exercises.
• Alphabet is planning to sell Australia dollar-denominated debt.

In economic data:

• China's July Industrial Production 4.5% yr/yr (expected 5.0%; last 5.3%), July Fixed Asset Investment -6.7% yr/yr (expected -6.2%; last -5.7%), July Retail Sales 0.6% yr/yr (expected 1.5%; last 1.0%), July Unemployment Rate 5.2% (expected 5.1%; last 5.0%)
• Japan's flash Q2 GDP 0.3% qtr/qtr (expected 0.5%; last 0.5%); 1.1% yr/yr (expected 2.0%; last 1.9%). Q2 GDP Capital Expenditure -1.2% qtr/qtr (expected 0.4%; last -1.0%), Q2 GDP External Demand 0.5% qtr/qtr (expected 0.3%; last 0.3%). Q2 GDP Private Consumption 0.0% qtr/qtr (expected 0.5%; last 0.5%). Q2 GDP Price Index 2.6% yr/yr (expected 2.4%; last 3.2%). June Industrial Production 1.9% m/m (expected 1.3%; last 0.1%) and Capacity Utilization 4.1% m/m (last 0.1%)
• South Korea's July trade surplus $30.39 bln (expected $30.32 bln; last $36.09 bln). July Imports 26.5% yr/yr, as expected (last 30.0%) and Exports 63.0% yr/yr (expected 62.8%; last 70.7%)
• Singapore's July trade surplus SGD10.72 bln (last surplus of SGD13.87 bln). July non-oil Exports -0.3% m/m (last -8.8%); 24.2% yr/yr (last 24.4%)
• New Zealand's July Performance of Services Index 50.6 (last 50.9). July Electronic Card Retail Sales 1.3% m/m (last -1.3%); 3.4% yr/yr (last 1.3%). July FPI 0.1% m/m (last 0.6%)

Major European indices trade near their flat lines while Italy's MIB (+0.4%) outperforms with help from STMicroelectronics, Ferrari, and select bank stocks. STOXX Europe 600: +0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: +0.2%, France's CAC 40: -0.1%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: -0.2%.

In news:

• Swiss food distributor SIG Group is down more than 15% after announcing an unexpected CEO change.
• There is growing focus on the U.K.'s property market after Rightmove reported a sharp drop in average new listed asking prices for homes.
• Fitch affirmed the U.K.'s AA- rating with a Stable outlook.

There is no economic data of not today.

[BRIEFING.COM] Stocks ended a relatively quiet Friday session with modest losses, pulling back from yesterday's record-setting advance as weakness in mega-cap technology stocks and a midday rise in Treasury yields weighed on the major averages. The S&P 500 (-0.2%), Nasdaq Composite (-0.3%), and DJIA (-0.2%) finished lower, though the S&P 500 and Nasdaq Composite still notched modest gains for the week.

The major averages opened slightly higher before gradually slipping into negative territory as the morning progressed. The move coincided with a rise in longer-dated Treasury yields, with the 10-year note yield climbing six basis points to 4.70% despite a weaker-than-expected July retail sales report. The increase in yields provided a modest headwind following a week in which largely favorable CPI and PPI readings had eased concerns about additional Fed tightening.

Most of the pressure at the index level came from growth stocks. The Vanguard Mega Cap Growth ETF fell 0.5%, while the information technology sector (-0.4%) was among the laggards as some of yesterday's strongest areas gave back ground. The PHLX Semiconductor Index slipped 0.3%, with Applied Materials (AMAT 507.18, -27.36, -5.12%) facing some profit-taking following a solid earnings report and Broadcom (AVGO 392.99, -24.83, -5.94%) also among the large-cap chip laggards. Continued strength in memory stocks helped offset some of that weakness, as Sandisk (SNDK 1641.11, +113.00, +7.39%) extended its rally following yesterday's investor day after JPMorgan resumed coverage with an Overweight rating and a $2,250 price target.

Software stocks saw more pronounced profit-taking following yesterday afternoon's rally, leaving the iShares GS Software ETF (IGV) down 2.1%. Workday (WDAY 198.68, -7.77, -3.76%) also gave back some of yesterday's roughly 18% surge that followed reports that Silver Lake is in talks to acquire the company.

The consumer discretionary sector (-0.4%) also lagged amid weakness in mega-cap stocks and retail names ahead of a busy slate of earnings from the group next week.

Still, the broader market held up better than the major averages. Six S&P 500 sectors finished higher, and the S&P 500 Equal Weight Index ended flat, while the Russell 2000 (+0.5%) and S&P MidCap 400 (+0.3%) both advanced and reached fresh record highs during the session.

Energy (+1.4%) was the clear sector leader as crude oil resumed its climb despite little new geopolitical news. WTI crude settled $1.34 higher (+1.7%) at $82.40 per barrel, bringing its gain for the week to roughly 5%.

The utilities (+0.6%) and materials (+0.5%) sectors also outperformed, with higher precious metals prices supporting the latter.

Outside the current S&P 500 membership, Reddit (RDDT 177.97, +19.85, +12.55%) surged on news that the company will join the index next week.

Friday's subdued pullback ultimately looked more like consolidation following Thursday's record-setting advance than a meaningful shift in sentiment. The S&P 500 still finished the week higher after the July CPI and PPI reports helped ease concerns about additional Fed tightening, while the relative strength in the equal-weight index and smaller-cap stocks showed that Friday's weakness was concentrated largely in some of the market's biggest growth names.

U.S. Treasuries retreated on Friday, producing losses for the week in 10 and 30 year note yields while the front end also faced some pressure today, but the 2-year note still ended the week with a gain. The 2-year note yield settled up three basis points to 4.17% (-4 basis points this week), and the 10-year note yield settled up six basis points to 4.70% (+4 basis points this week). 

• Russell 2000: +23.6% YTD
• S&P Mid Cap 400: +18.8% YTD
• Nasdaq Composite: +15.0% YTD
• S&P 500: +13.7% YTD
• DJIA: +11.8% YTD

Reviewing today's data:

• July Retail Sales -0.6% (Briefing.com consensus 0.2%); Prior 0.2%, July Retail Sales, ex-auto -0.3% (Briefing.com consensus 0.2%); Prior -0.2%
  
  • The key takeaway from the report is that control retail sales dropped 0.4% month-over-month. This figure will feed into GDP forecasts, so there are apt to be some downward revisions to Q3 GDP forecasts.
• June Business Inventories 0.0% (Briefing.com consensus 0.1%); Prior was revised to 0.4% from 0.3%
• August Univ. of Michigan Consumer Sentiment - Prelim 51.0 (Briefing.com consensus 54.5); Prior 55.2
  
  • The key takeaway from the report is that only 8% of all consumers surveyed expect their income growth to exceed inflation in the year ahead. That expectation could ultimately translate into lower discretionary spending activity.