The market is higher with early strength culminating in record highs for the S&P 500 and Nasdaq Composite. Apple (AAPL) is extending its earnings momentum across mega-tech names.

In fact, Apple’s gain has been helping the Technology sector (XLK) be at the top of the leaderboard. In addition, Microsoft (MSFT) and other software names are reclaiming some of yesterday’s losses.

Oil prices are lower and continue to provide a tailwind for the broader market. Crude prices are holding near $100 level after reports that Iran has sent a revised peace proposal to Pakistani mediators.

Yields plunged since the ISM report came out, down 1.7 basis on the 30-year treasury yield (TYX).

President Trump announced he is raising tariffs on cars and trucks coming into the country from the European Union to 25%.

Economic Data

ISM Manufacturing PMI expanded for a fourth straight month and remains steady at 52.7, but missing consensus of 53. Notably prices paid component soared to a four-year high of 84.6. Three of the five components remained in expansion, with three expanding and two contracting:

• New Orders +0.6pts to 54.1
• Production -1.7pts to 53.4
• Supplier Deliveries +1.7pts to 60.6
• Employment -2.3pts to 46.4
• Inventories +1.9pts to 49

S&P Manufacturing PMI came at 54.5, surpassing consensus of 54. This has been the greatest expansion since May 2022 with orders at the fastest pace in four year.

Have a great weekend!