Tech stocks lead S&P 500, Nasdaq higher
The S&P 500 is currently trading higher by 0.6%, although the market has come down slightly from prior highs. The Nasdaq Composite (+1.1%) leads amid strong gains in the semiconductor space, while the Dow Jones Industrial Average (-0.1%) trades lower amid a pullback in shares of Boeing (BA 182.79, -11.72, -6.1%). Most sectors are up, with the S&P 500 information technology (+1.2%) and real estate (+1.3%) sectors outperforming with gains over 1.0%, while the utilities (-0.2%) and industrials (unch) sectors lag. The latter is behind held back by Boeing after Norwegian Air and BOC Aviation reportedly canceled plane orders.The top-weighted tech sector can credit its outperformance to the semiconductor stocks following positive earnings-related news from Micron (MU 51.29, +2.17, +4.4%) and Xilinx (XLNX 97.62, +6.1%). Micron exceeded quarterly expectations and issued upside guidance, and Xilinx issued revenue guidance for its July and September quarters that was above consensus. The Philadelphia Semiconductor Index is up 2.0%. Separately, Fed Chair Powell and Treasury Secretary Mnuchin have just started answering questions before Congress regarding the economy and the CARES Act. The market will be tuning in for any new insight that wasn't already provided in Mr. Powell's prepared remarks, which were released beforehand. In M&A activity, Uber (UBER 31.14, +1.52, +5.2%) is reportedly in talks to acquire Postmates for $2.6 billion, while lululemon athletica (LULU 312.65, +18.14, +6.2%) agreed to acquire in-home fitness company Mirror for $500 million. UBER and LULU shares have reacted positively to the news. Reviewing today's economic data:The Conference Board's Consumer Confidence Index for June increased to 98.1 (Briefing.com consensus 92.0) from a downwardly revised 85.9 (from 86.6) for May. The improvement is welcome, yet the key takeaway from the report is that the index remains well below the February reading of 132.6, which predated the COVID-19 shutdown effort.The Chicago PMI for June increased to 36.6 (Briefing.com consensus 45.0) from 32.3 in May. The S&P Case-Shiller Home Price Index increased 4.0% in April (Briefing.com consensus 4.1%) following a 3.9% increase in March.