Major indices are mostly moving higher, except for the Dow Jones. Notably, the move comes despite an uptick in yields and oil.

Five sectors are moving higher, with Communication Services (XLC) in the lead and getting a boost from Alphabet (GOOG/L) as investor expectations for Gemini 4.0, anticipated to release October 15^th, continue to build. Meanwhile, Technology (XLK) is the runner-up and seeing a broad move across semiconductors and software as well as all its Magnificent Seven components.

On the flip side, the traditionally more defensive sectors of Real Estate (XLRE) and Consumer Staples (XLP) are at the bottom of the list as the uptick in rates puts pressure on these names.

Third-quarter earnings season is around the corner, and expectations have climbed along the way, with the Street now looking for growth of more than 29%, up from less than 25% at the start of the quarter.

Midterm years have historically bottomed out around September 30 before rallying into year-end, and if history holds, today could be the market's turning point.

Domestic Investment Continues

President Trump is set to announce this afternoon that South Korea will invest $200 billion in U.S. energy projects, including eight nuclear power plants, a gas-fired power plant in Texas, and $54 billion for the Alaska LNG project.

Taiwan Semiconductor Manufacturing Company (TSM) is reportedly evaluating a potential investment in Texas to expand U.S. chip production, which would come on top of the $265 billion it has already committed to Arizona.

News on the AI Mega Trend

Apple (AAPL) plans to enter the smart-home market on October 13 with a roughly 6-inch hub built around Siri AI, alongside a new HomePod mini and Apple TV, marking one of the first major product expansions under new CEO John Ternus.

The FTC confirmed it has opened an investigation into OpenAI, Anthropic, and other AI labs over the potential risks their products pose to consumers, with plans to demand information and compel testimony from executives. It coincides with reports this morning that Rep. Jamie Raskin sent letters to Amazon (AMZN), Alphabet, Meta Platforms (META), and Oracle (ORCL) seeking details on the NDAs they signed with government officials for data center buildouts.

In other news, FERC conditionally approved PJM's plan to procure new power capacity for data center demand but delayed its implementation until February.

Private Markets

The Securities and Exchange Commission (SEC) voted today to propose rules that would expand retail investor access to private markets, including private equity and early-stage startups.

Economic Data

The Chicago PMI jumped to 58.8 in September from 47.1, well above forecasts of 51.2, as production and new orders rebounded sharply, though employment slipped back into contraction and prices paid eased while remaining elevated.

Micron on Deck

Micron Technology (MU) reports after the close. The Street is looking for revenue of $51.5 billion and earnings of $31.82 per share, up from $3.03 a year ago, which would rank among the biggest profit surges in history.

Guidance will be the real test. Management must guide revenue and earnings well above consensus, to around $60 billion and $42.00 per share, with margins above 87%.

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