The markets are currently in the green with the Nasdaq outperforming the DOW and S&P500.  Technology is a bright spot as chipmakers rally off Micron’s earnings report, helping to boost the PHLX Semiconductor Index by 1.6%.

The financial sector is also strong today and being buoyed by a steepening yield curve as the 10-year now trades at 2.29%, a two-month high, and the 2-year at 1.47%, its best level in nine years. Safe havens are down and Gold is trading 1% lower at $1288.50 an ounce.

At midday, decliners are leading advancers 1472/1394 on the NYSE, while on the Nasdaq, advancers outpace decliners 1901/908.  A theme that we have talked quite a bit about lately is the move in small caps stocks that have powered the Russell 2000 higher.  That movement is continuing today as the index hits a record high. 

On the economic front, August pending home sales dropped by 2.6% versus estimates of only a 0.4% decline, the lowest level in nearly 2.5 years. July was also down by 0.8%.  Hurricane Harvey and tight inventories continue to be the main contributors to the recent decline in sales.

The weekly MBA Mortgage Applications Index also declined, down 0.5% after dropping 9.7% last week.

President Trump is scheduled to speak at 3:20 ET to discuss the GOP tax reform proposal.  So, let’s see how that goes.