Major indices are moving higher across the board as oil edges lower and the ten-year yield sits around the 5.25% level.

Seven sectors are higher, with Materials (XLB) in the lead as the sector gets a boost from Freeport-McMoRan (FCX) after it hit its forecasted Q3 copper production target, as well as strength in chemical and steel names. Meanwhile, Consumer Discretionary (XLY) is the runner up and is getting a large boost from Tesla (TSLA) after their Q3 deliveries beat estimates. Technology (XLK) is also catching a bid as semiconductor names move higher, despite weakness in software and in memory and storage names after Toshiba unveiled plans to double its hard disk drive output (more below).

Meanwhile, the more defensive sectors of Health Care (XLV) and Consumer Staples (XLP) are posting marginal losses and are tied for last place.

More Memory Capacity

Memory names, including Seagate Technology (STX) and Western Digital (WDC), are under pressure after reports that Toshiba plans to double its hard disk drive capacity for AI data centers by fiscal 2027, raising concerns that added supply could weigh on pricing.

This comes as the broader memory supply bottleneck is spilling over into consumer devices, pushing prices higher. Alphabet's (GOOG/L) Google raised the Pixel 10a by $100 to $599 in the U.S., a day after Samsung lifted most Galaxy S26 models by $100 and the 1TB Ultra by $200, following Apple's (AAPL) $100 increase on several existing iPhones last month.

In other news, Nvidia (NVDA) is launching a 64GB version of its DGX Spark desktop AI system on Oct. 23, starting at $4,999 through PC makers including Dell (DELL) and HP (HPQ), offering a lower-memory option alongside the $6,950 128GB model amid the memory crunch. Two units can be linked to pool memory and run AI models with up to 200 billion parameters locally.

Washington Watch

President Trump is reportedly expected to name Director of National Intelligence Jay Clayton as AI czar, a role he would hold alongside his current post, filling the seat David Sacks left in March, though Sacks still advises the president on AI. Clayton previously led the SEC during Trump's first term and served as the top federal prosecutor in Manhattan.

National Economic Council Director Kevin Hassett said today's jobs report was as expected, showing the U.S. consumer remains very strong. He added that the president is committed to cutting the deficit amid high interest costs and does not want to inflate the country's way out of its debt.

Economic Data

New orders for manufactured goods edged up 0.1% M/M in August following a downwardly revised 0.8% increase in July and coming in-line with expectations.

Excluding transportation, orders rose 0.3%, as gains in primary metals, machinery, and electrical equipment offset a 0.7% decline in transportation equipment, where a 4.3% drop in non-defense aircraft outweighed a 5.9% jump in defense aircraft.

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