The market is in a steady pullback as selling pressures momentum names, even with 71% of names advancing.

Consumer Discretionary (XLY) is the best performing sector, benefitting from strength across cruise lines, homebuilders, and other consumer-facing companies. Amazon (AMZN) is the notable standout after receiving a Buy rating this morning from Phillip Securities. Marriott (MAR) is also adding gains to the sector following better-than-expected Q3 earnings and an improved outlook. The Materials (XLB), Financials (XLF), and Industrials (XLI) sectors are also posting substantial gains, signaling the breadth of today’s advance. The decline in the 10-year yield is providing additional support to interest-rate-sensitive stocks.

On the other hand, Technology (XLK) is a notable drag on major averages with semiconductor stocks reversing earlier gains. This reversal highlights the caution surrounding AI-related stocks following last week’s selloff. Software names are also adding pressure to the sector as Oracle (ORCL) disclosed plans to raise $20 billion through a combination of debt and equity financing.

Election Jitters

Prediction markets price a 73% chance of Democrats winning both chambers versus 5.8% for a Republican sweep. The Street is mixed with some expecting the results to have limited market impact while others believe they could create potential AI regulation.

This morning, Goldman Sachs (GS) noted that a Democratic victory in certain key states would lead to greater restrictions on data centers.

Anthropic IPO Nears

Anthropic reported third-quarter revenue of nearly $17 billion as of September 30, up from $11.6 billion in the second quarter. However, Anthropic reported a $567 million operating loss, one quarter after its first operating profit of $974 million. The company also revealed it intends to spend more than $895 billion in the years ahead.

Economic Data

ISM’s October Manufacturing PMI increased 1 point to 55.5, surpassing consensus of 54.7. This is the highest level since July and the 10^th straight month of expansion. Most components were in expansion, but sentiment worsened for a third month.

S&P Global Manufacturing PMI, October final read, was 54.9 and eased from September’s 52-month high. The index is still above 50.