Major indices are moving higher across the board, with the Russell 2000 in the lead.

Materials (XLB) are at the top of the list and benefiting from higher metal commodity prices. Technology (XLK) is the runner up and getting a boost from semiconductor and hardware names. Memory names in particular are getting a boost following a report that memory prices may break from their historical boom and bust cycle. Additionally, Intel (INTC) is continuing to add fuel to the sector following reports that Apple (AAPL) is in talks with the company to manufacture custom chips.

The only sector marginally in the red is Financials (XLF), with weakness in credit services names and an adverse reaction to PayPal’s (PYPL) earnings contributing to the decline.

The Trump administration is using its Pax Silica supply chain bloc to attempt to ease global memory prices, with 14 countries already on board.

In other news, the SEC proposed allowing public companies to report semiannually instead of quarterly.

Meanwhile, bond yields and energy prices are moving lower as US warships successfully transit the Strait of Hormuz and the EPA issues a temporary waiver to sell E15 gas during the summer months, which contains higher ethanol relative to gasoline. Additionally, South Korea is reportedly considering joining the United States’s Project Freedom to restore shipping in the strait.

Economic Data

S&P Composite PMI for April was revised slightly lower to 51.7 from 52, but still improved from March’s 50.3 reading. This comes as S&P Services PMI for April were also revised slightly lower to 51 from 51.3.

Meanhwhile, ISM Services PMI for April fell to 53.6 from 54, slightly missing expectations of 53.7. The report showed strength in business activity and employment components, but new orders slowed leading to the headline dip.

Sales of new single family homes rose 7.4% M/M in March, following a 8.9% increase in February.

This comes as building permits fell 11.4% M/M in March from an 11% gain in February.

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