The major averages are quiet, but modestly higher following better than expected earnings from Nvidia that validates the AI boom. The Dow Jones Industrial Average is modestly higher. The S&P 500 is up 15 points or 0.25% at a new high. The Nasdaq Composite is up 120 points or 0.5%.

Tech is leading the rally, but ironically, Nvidia is modestly lower even though it received a number of upgrades. Nvidia now makes up about 8% of the S&P 500. The rest of the chip stocks are performing better. Broadcom is up nearly 3% while the Micron is up 3.5%. The rest of the large cap techs are higher.

Software is also performing well led by Snowflake up 23% on strong earnings and guidance due to AI demand.

To the downside, there was a number of retailers are lower on earnings including Dicks Sporting Goods, Best Buy, Victoria Secret and Hormel. Hormel is lower by 12% on lower profits due to rising commodity input costs.

Treasuries are quiet ahead of inflation data. The 10-year Treasury yield is down 2 basis points to 4.21%, while the 2-year yield was up 2 basis points to 3.63%. The Commerce Department did report today that the gross domestic product grew at a 3.3% annualized pace in the second quarter. That was better than the initial estimate of 3.0% estimate and the Dow Jones forecast for 3.1%.

In the commodity space, oil is higher even as the driving season comes to an end. Gold is higher on the weak dollar. Bitcoin is up half a percent.

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