Daily market update US

During the trading session, the stock market showed minor losses for Dow, Nasdaq, and S&P 500. Investors were hesitant due to the upcoming earnings reports. Although earnings results have been better than expected, valuation concerns prevented the market from moving higher. In the late afternoon, the market showed a slight gain due to a tweet from a CNN reporter stating that House Speaker McCarthy believes he has enough votes to raise the debt ceiling. However, McCarthy stated earlier that a "no strings attached" debt ceiling increase will not pass the House, and a proposal with strings attached is unlikely to pass the Senate. Even so, the major indices finished with modest gains, and the semiconductor equipment makers joined the rebound. The PHLX Semiconductor Index (SOX) saw a modest loss of 0.1% after being down by 1.5%. The weakness in the SOX was due to a Bloomberg report suggesting a decrease in Taiwan Semiconductor Manufacturing Co.'s capex budget. Despite the market improving before the close, Alphabet logged a sizable decline following news that Samsung might use Bing instead of Google as its default search engine. Real estate and financials sectors were the best performers, while energy and communication services sectors were the worst performers. Treasuries settled with losses across the curve due to the expectation of the Fed raising rates in May and not pivoting to a rate-cut cycle soon. Tuesday will bring economic data on housing starts and building permits.

The 10-year note saw a decrease of 6/32, settling at 3.59%. The NYSE had 1,762 advancing stocks and 1,149 declining stocks, with a volume of 812 million. The Nasdaq had 2,684 advancing stocks and 1,777 declining stocks, with a volume of 4.7 billion. The real estate, industrials, consumer staples, utilities, and financials sectors showed strength, while the communication services, health care, and energy sectors were weak. The market lacked conviction ahead of a heavy batch of earnings news expected for the week. Chip equipment stocks weakened following talk that Taiwan Semiconductor may soon announce a decrease in its FY23 capex budget.