Market Snapshot
| Dow | 46315.06 | +172.85 | (0.37%) | | Nasdaq | 22631.48 | +160.75 | (0.72%) | | SP 500 | 6664.35 | +32.40 | (0.49%) | | 10-yr Note |
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| | NYSE | Adv 936 | Dec 1797 | Vol 4.14 bln | | Nasdaq | Adv 1908 | Dec 2692 | Vol 14.89 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology |
| | Weak: Energy |
Moving the Market
Mega-cap names outperform amid broader market weakness
Major averages coming off of record-setting performances
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Mega-cap strength powers record highs while small caps lag
19-Sep-25 16:30 ET
Dow +172.85 at 46315.06, Nasdaq +160.75 at 22631.48, S&P +32.40 at 6664.35
[BRIEFING.COM] The stock market ended the week on a strong note, with the S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (+0.4%) all capturing fresh intraday and closing records. Gains were powered by outperformance in the mega-cap space, which masked negative breadth at the index level.
Meanwhile, smaller cap indices such as the Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.8%) gave back some of yesterday's gains.
The Vanguard Mega Cap Growth ETF gained 0.8% on the day, while the S&P 500 Equal Weighted Index (flat) underperformed the market-weighted S&P 500 (+0.5%) as decliners outpaced advancers by a roughly 2-to-1 ratio on the NYSE and a roughly 3-to-2 ratio on the Nasdaq.
Apple (AAPL 245.50, +7.62, +3.20%) remained a standout in the best-performing information technology sector (+1.2%) following the launch of its iPhone 17 lineup, with reports pointing to strong international demand and the company looking to boost production of its lower-cost model.
Oracle (ORCL 308.81, +12.19, +4.11%) reversed an early decline after President Trump described his call with Chinese President Xi as “productive,” adding “appreciate the TikTok approval.” U.S. and Chinese officials both described the call as productive, though a deal to bring TikTok under U.S. control has yet to be finalized.
Alphabet (GOOG 255.24, +2.91, +1.15%) and Tesla (TSLA 426.07, +9.22, +2.21%) contributed to gains in the communication services (+0.5%) and consumer discretionary (+0.3%) sectors, while the utilities (+0.7%), financials (+0.2%), industrials (+0.2%), and materials (+0.2%) sectors rounded out the seven advancing S&P 500 sectors.
While sector strength fluctuated throughout the day, only the energy sector (-1.3%) closed with a loss wider than 0.5%.
On the earnings front, FedEx (FDX 231.89, +5.39, +2.38%) captured a nice gain after an earnings beat and upside guidance, while Lennar (LEN 127.32, -5.55, -4.18%) slipped after reporting a miss on revenue expectations. The iShares U.S. Home Construction ETF slipped 1.7% today.
Bolstered rate cut expectations that drove yesterday's push to record highs remained steady today amid a lack of economic data. With the September FOMC meeting now in the rearview, Fed officials were free to add to the policy conversation. Fed Governor Stephan Miran (FOMC voting member) told CNBC he supports five rate cuts this year, arguing growth will improve in the second half, while Minneapolis Fed President Neel Kashkari (FOMC nonvoting member) said in a Bloomberg interview that he favors two more cuts in 2025.
All told, mega-cap strength drove record-setting gains for the major averages despite negative breadth.
U.S. Treasuries ended the week with losses across the curve, deepening their post-FOMC retreat with longer tenors remaining at the forefront of the selling. The 2-year note yield settled up one basis point to 3.58% and the 10-year note yield settled up four basis points to 4.14%.
- Nasdaq Composite: +17.2% YTD
- S&P 500: +13.3% YTD
- Russell 2000: +9.8% YTD
- DJIA: +8.9% YTD
- S&P Mid Cap 400: +5.2% YTD
There was no economic data of note today.
Major averages eye record closing highs to accompany all time highs
19-Sep-25 15:35 ET
Dow +188.01 at 46330.22, Nasdaq +126.78 at 22597.51, S&P +30.74 at 6662.69
[BRIEFING.COM] As the market enters the final half hour of trading, the S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and DJIA (+0.3%) have now all captured record highs today.
Meanwhile, smaller cap names have given back some of yesterday's gains, with the Russell 2000 and S&P Mid Cap 400 both down 0.7%.
A CDC panel has ended universal recommendation for COVID-19 vaccines, with CDC advisors voting to recommend COVID vaccine for people 6 months and older only after a consultation with a healthcare provider. Pharmacies will be considered healthcare providers. So far the announcement has not yet had a noticeable impact on vaccine stocks or the broader health care sector (+0.1%).
Major averages little changed from prior levels
19-Sep-25 15:05 ET
Dow +174.67 at 46316.88, Nasdaq +115.91 at 22586.64, S&P +27.38 at 6659.33
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.5%), and DJIA (+0.3%) are little changed from previous levels, as mega-cap strength continues to balance out negative breadth.
Despite the relatively poor breadth figures, nine S&P 500 sectors trade in positive territory.
Apple (AAPL 245.66, +7.78, +3.27%) remains a standout in the information technology sector (+0.8%) as the iPhone 17 is met with good demand, with The Information reporting that the company wants to increase production of the lower-cost phone.
In Washington, the House-passed bill to fund the government through November 21 failed to get the 60 votes needed to pass in the Senate, as expected.
S&P 500 gains 0.3% on Friday; Eversource, Uber, and FedEx lead, Dexcom slides nearly 10%
19-Sep-25 14:30 ET
Dow +130.21 at 46272.42, Nasdaq +93.51 at 22564.24, S&P +19.11 at 6651.06
[BRIEFING.COM] The S&P 500 (+0.29%) is in second place now on Friday afternoon, up about 19 points.
Briefly, S&P 500 constituents Eversource Energy (ES 67.35, +3.47, +5.43%), Uber (UBER 98.04, +3.34, +3.53%), and Fedex (FDX 232.41, +5.91, +2.61%) pepper the top of the standings. ES, along with other utes, rise today as a rotation into value comes despite a modest rise in yields, while FDX climbs after posting better-than-expected Q1 results and reaffirming its turnaround momentum with upbeat FY26 guidance, driven by cost efficiencies, pricing strength, and international demand.
Meanwhile, Dexcom (DXCM 68.56, -7.22, -9.53%) is today's top laggard, continuing yesterday's weakness after Hunterbrook was out with a cautious report on the shares.
Gold gains on Fed rate cut, softer dollar; ends week up 0.5% at $3,705.80/oz
19-Sep-25 14:00 ET
Dow +169.78 at 46311.99, Nasdaq +105.36 at 22576.09, S&P +21.65 at 6653.60
[BRIEFING.COM] With about two hours to go on Friday, the tech-heavy Nasdaq Composite (+0.47%) is in first place up more than 105 points.
Gold futures settled $37.50 higher (+0.7%) at $3,705.80/oz, finishing the week up +0.52%, as investors responded to the Fed's first rate cut since December and expectations of further easing. A softer dollar, lower Treasury yields, and continued safe-haven and central-bank demand added support, while Chair Powell's cautious tone kept some uncertainty in play.
Meanwhile, the U.S. Dollar Index is up about +0.3% to $97.60.
Apple's iPhone 17 debuts to long lines and high demand as company eyes upgrade cycle boost (AAPL)
Apple (AAPL) officially launched its iPhone 17 lineup today, and early signs point to strong demand, especially for the high-end Pro models. Long lines were reported across the U.S., Europe, and Asia, signaling strong consumer interest despite macro and competitive headwinds.
- Bloomberg reported strong early demand in Asia, with Pro models generating the most buzz in the U.S. and Europe.
- The launch follows a solid Q3 in which Apple posted 9.6% yr/yr revenue growth -- its best in 14 quarters -- driven by 13.5% growth in iPhone revenue to $44.58 bln, a record for the June quarter.
- Shares have rebounded in recent weeks but remain down 3% year-to-date due to ongoing concerns about AAPL’s AI positioning, competition in China, and the impact of an escalating U.S.-China trade war.
- The iPhone 17 launch seems to be extending recent momentum, and anticipation is already building for next year’s foldable iPhone, which could serve as a major catalyst heading into FY27.
Briefing.com Analyst Insight:
Today’s iPhone 17 launch suggests AAPL may be regaining some product momentum at a critical time. While it’s still early, initial demand trends -- particularly for Pro models -- are encouraging and may help ease investor concerns about a sluggish upgrade cycle. That said, AAPL still faces serious headwinds, including intensifying competition in China and a murky AI roadmap. The upcoming foldable iPhone could be a game-changer, but with geopolitical tensions and valuation still elevated (Forward P/E of 30x), AAPL isn't out of the woods just yet.
Scholastic Corp Falls on Q1 Results as School Spend Uncertainty Looms (SCHL)
Scholastic (SCHL) is trading sharply lower today after reporting its Q1 (Aug) results last night. The company missed expectations on its top and bottom line, though it does have limited analyst coverage. Q1 is a seasonally quiet period for the company.
- Management noted that while schools are still spending, uncertainty around future funding is leading districts to prioritize only essential "must-have" purchases.
- Revenue fell 5% yr/yr to $225.6 mln, driven by a 28% decline in Education Solutions to $40.1 mln, reflecting softer demand for supplemental curriculum and timing of state program revenues.
- Entertainment Solutions also declined 18% to $13.6 mln, but Children's Book Publishing & Distribution and International provided offsets, each up 4% to $109.4 mln and $59.4 mln, respectively.
- FY26 guidance was reaffirmed for 2-4% revenue growth and $160-170 mln in adjusted EBITDA. Management expects results to skew more heavily toward the spring selling season, making the back half of the year increasingly important.
Briefing.com Analyst Insight
The weak Education Solutions results underscore broader caution in school budgets, a trend that could weigh on peers exposed to K-12 supplemental materials and curriculum, including Wiley John & Sons (WLY) and Pearson (PSO). While Scholastic's reaffirmed guidance points to confidence in its core publishing and international segments, the uneven funding environment suggests a tough backdrop for education-focused providers heading into the year.
FedEx Posts Best Revenue Growth Since Pandemic, Eyes Freight Spin-Off by June 2026 (FDX)
FedEx started FY26 on a high note, posting its strongest revenue growth since the pandemic and delivering upside on both EPS and revenue in Q1 (Aug). Revenue rose 3.1% yr/yr to $22.24 bln, with strong guidance for FY26 revenue ahead of consensus.
- Federal Express (FEC) segment (86% of total revs) grew 4.4% yr/yr to $19.1 bln, driven by strong US domestic package demand. Healthcare vertical showed strong momentum.
- Best Buy named FedEx its primary national parcel carrier on September 5.
- Tariff headwinds impacted international business, but commercial pivot to Southeast Asia and Europe helped offset China-to-US softness.
- FedEx Freight (10% of revs) remained weak, down 3% yr/yr to $2.3 bln, pressured by a sluggish industrial economy and excess truckload capacity. As the industrial economy improves, the company believes Freight is poised for growth and margin expansion.
Looking ahead, FDX is cautiously optimistic about the peak holiday season. It expects a modest yr/yr increase in peak average daily volume (ADV) and a mid-to-high single-digit gain in total peak volume, driven by larger B2C clients. The 2025 peak season will run one day longer than last year.
Spin-Off Update: The planned spin-off of FedEx Freight remains on schedule, with completion expected by June 2026. The unit will become a separately traded public company under the ticker FDXF on the NYSE.
Briefing.com Analyst Insight:
FDX is showing early signs of a turnaround, particularly in its core Express business, despite macro and tariff-related challenges. While Freight remains a drag, the planned spin-off could unlock value and allow FEC to garner a higher multiple. Also, improving parcel pricing, a decent holiday outlook and customer wins like Best Buy are positive tailwinds.
Lennar tumbles as Q3 revenue misses the mark and Q4 deliveries guidance disappoints (LEN)
Lennar (LEN) posted mixed 3Q25 results, beating EPS expectations but missing on revenue and issuing soft Q4 guidance that is pressuring the stock.
- Revenue declined 6.1% yr/yr to $8.81 bln, falling short of expectations despite a beat on the bottom line.
- Q4 deliveries guidance of 22,000-23,000 homes was well below consensus, signaling a deliberate moderation in volume to allow the market to “catch up,” according to management.
- While interest rates remained elevated through most of Q3, a late-quarter decline and the Fed’s recent rate cut offer some optimism heading into Q4.
- New orders rose 12% yr/yr to 23,004 homes, exceeding the high end of LEN’s prior guidance (22,000-23,000), aided by continued use of buyer incentives.
- The average sales price dropped to $383,000 from $422,000 yr/yr, contributing to a sharp decline in gross margin on home sales to 17.5% from 22.5% last year.
- LEN expects Q4 gross margin on home sales to hold steady at 17.5%, possibly marking a bottom in margin contraction.
Briefing.com Analyst Insight:
LEN’s Q3 wasn’t a disaster, but the top-line miss, and weak Q4 deliveries outlook underscore the strain from elevated mortgage rates and pricing pressure. While incentives helped keep order momentum strong, the margin compression and soft guidance highlight the cost of maintaining that demand. The Fed’s recent rate cut may offer some relief, but with average selling prices under pressure and management opting to slow volume, visibility remains limited. These results could weigh on sentiment across the homebuilding sector, including peers like D.R. Horton (DHI), KB Home (KBH), and Toll Brothers (TOL).
Nucor falls after weak Q3 EPS guidance amid steel mill margin pressure (NUE)
Nucor (NUE) issued downside Q3 EPS guidance last night, sending shares sharply lower in early trading. The weak outlook stands in contrast to peer Steel Dynamics (STLD), which raised its Q3 EPS guidance just one day earlier. NUE expects Q3 earnings to decline across all three operating segments: steel mills, steel products, and raw materials.
- The steel mills segment, typically NUE’s largest earnings contributor, is facing both lower volumes and margin compression, driven by weaker pricing and soft demand in nonresidential construction.
- The company also cited a slowdown in shipments and persistent cost pressures in its downstream businesses.
- By contrast, STLD is benefiting from stronger pricing power and higher utilization rates, particularly in value-added flat-roll products and automotive-related demand.
- STLD's diversified end-market exposure and operational efficiency appear to be shielding it from the pressures impacting NUE.
Briefing.com Analyst Insight:
NUE’s disappointing Q3 outlook raises concerns about the durability of its margins in a softening demand environment. The sharp contrast with STLD -- whose raised guidance suggests stronger execution and more favorable mix --highlights growing divergence in steel sector performance.
While NUE remains a best-in-class operator with a strong balance sheet, this quarter underscores the cyclical risks tied to its core steel mills business. Until pricing and volumes stabilize, particularly in construction-linked segments, we view the stock as challenged in the near term.
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