After Hours Report

The major averages finished higher as investors rotated back into semiconductor stocks while easing oil prices helped support economically sensitive areas of the market following yesterday's geopolitical-driven selloff. The Nasdaq Composite (+1.3%) led the advance as chipmakers rallied throughout the session, while the S&P 500 (+0.8%) also climbed into the close. The DJIA (+0.3%) posted a more modest gain, reflecting some weakness among several defensive-oriented sectors.

The information technology sector (+1.8%) led the market, supported by a 3.1% gain in the PHLX Semiconductor Index. Nikkei reported that Applied Materials (AMAT 588.66, +18.16, +3.18%) CEO Gary Dickerson said chipmakers are preparing for years of expansion, reinforcing optimism surrounding AI-related capital spending as investors continued buying yesterday's dip.

Memory stocks received an additional boost after Reuters reported that SK Hynix's upcoming U.S. ADS offering is more than seven times oversubscribed, highlighting continued institutional enthusiasm for AI-related semiconductor names. Leadership remained concentrated in memory stocks such as Micron (MU 991.64, +42.84, +4.52%) and Sandisk (SNDK 1857.37, +130.19, +7.54%), semiconductor equipment companies including Lam Research (LRCX 353.17, +20.02, +6.01%), and AI compute and networking names such as Advanced Micro Devices (AMD 546.72, +29.32, +5.67%), suggesting investors continue to favor the highest-conviction AI beneficiaries.

Outside of technology, easing energy prices provided a more supportive backdrop for cyclical sectors. WTI crude oil futures settled down $1.43 (-1.9%) at $72.10 per barrel despite continued exchanges of fire between the U.S. and Iran, helping Treasury yields retreat from yesterday's highs.

The consumer discretionary sector (+1.2%) strengthened into the afternoon, led by cruise operators such as Norwegian Cruise Line (NCLH 19.76, +1.29, +6.98%), while Tesla (TSLA 406.55, +12.49, +3.17%) rebounded sharply from yesterday's weakness.

The industrials sector (+0.4%) also benefited, with trucking companies, including FedEx Freight (FDXF 154.25, +10.95, +7.64%), and airlines contributing to the advance.

The financials (+1.0%) remained among the day's strongest performers as investors continued to buy yesterday's weakness.

Today's retreat in oil prices weighed on the energy sector (-1.6%), while defensive-oriented groups also underperformed amid the renewed appetite for technology stocks. The consumer staples sector (-1.8%) finished as the weakest S&P 500 sector after Costco (COST 912.97, -40.16, -4.21%) declined on softer June comparable sales growth and PepsiCo (PEP 137.86, -4.65, -3.26%) fell despite a narrow earnings beat as its North America results disappointed. The utilities (-0.6%) and health care (-0.1%) sectors also finished lower.

Outside of the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) both rebounded nicely from yesterday's weakness, reflecting a broad improvement in sentiment as oil prices and Treasury yields retreated.

Today's session marked a reversal of several themes that dominated yesterday's trading. While easing oil prices helped broaden participation across portions of the market, semiconductor stocks once again provided the clearest leadership as investors looked past ongoing geopolitical tensions and renewed their focus on the long-term AI investment cycle.

U.S. Treasuries snapped their two-day skid on Thursday, spending the session in a steady bounce off their opening lows. The daylong rally received some intraday support from a strong $22 billion 30-year bond sale, which made for a good finish to this week's trifecta of solid auctions. The 2-year note yield settled down four basis points to 4.16%, and the 10-year note yield settled down three basis points to 4.54%.

• Russell 2000: +20.6% YTD
• S&P Mid Cap 400: +14.4% YTD
• Nasdaq Composite: +12.8% YTD
• S&P 500: +10.2% YTD
• DJIA: +9.2% YTD

Reviewing today's data:

• Weekly Initial Claims 215K (Briefing.com consensus 220K); Prior was revised to 217K from 215K, Weekly Continuing Claims 1.814 mln; Prior was revised to 1.806 mln from 1.814 mln
  • The key takeaway from the report is the same key takeaway as other recent reports: the low level of initial jobless claims continues to reinforce the understanding that layoff activity remains quite low overall.
• June Existing Home Sales 4.09 mln (Briefing.com consensus 4.20 mln); Prior was revised to 4.19 mln from 4.17 mln
  • The key takeaway from the report is that affordability conditions improved across all regions as wage growth outpaced home price growth; however, overall sales were still pressured by high prices and elevated mortgage rates.

 Overseas:

• Europe: DAX +0.8%, FTSE -0.2%, CAC +0.9%
• Asia: Nikkei +1.4%, Hang Seng -0.7%, Shanghai +1.7%

Commodities:

• Crude Oil -1.43 @ 72.10
• Nat Gas -0.20 @ 3.01
• Gold +58.20 @ 4141.60
• Silver +2.16 @ 60.73
• Copper +0.15 @ 6.26

After-Hours Spotlight:

• Brookdale (BKD) June weighted average occupancy rises to 82.5%; Q2 occupancy up 230 bps yr/yr...BKD -6.4%
• Fermi America (FRMI) announces proposed offering of $350 mln of convertible senior notes with capped call anti-dilution protection...FRMI -15.3%
• FirstSun Capital Bancorp (FSUN) expects second quarter 2026 financial results to be adversely affected by charge-offs...FSUN -1.6%
• Medline (MDLN) discloses that COO Stephen Miller intends to retire, effective August 30, 2026, for health related reasons...MDLN -0.1%
• Sigma Lithium (SGML) announces that it exceeded its production guidance for Q2 by 6%...SGML flat
• SK hynix Inc. (SKHY) prices IPO at $149 per ADS, raising approximately $26 billion in proceeds, according to Bloomberg
• Solaris Energy Infrastructure (SEI) set to join S&P SmallCap 600...SEI +3.8%
• WD-40 (WDFC) beats by $0.77, beats on revs; guides FY26 EPS above consensus...WDFC +14.2%

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • AeroVironment (AVAV) introduces FY30 financial targets, including $3.5-$4.0 bln in revenue
  • ASE Technology (ASX) reports June revenue rises 33% yr/yr
  • AZZ (AZZ) beats by $0.16, beats on revs; raises FY27 EPS and revenue guidance
  • Buckle (BKE) reports June sales
  • Cable ONE (CABO) sees Q2 revs in-line with consensus, provides subscriber update
  • Costco (COST) reports June adjusted comparable sales of +7%
  • Eli Lilly (LLY) announces estimated Q2 2026 acquired IPR&D charges
  • Equinox Gold (EQX) reports 176,836 ounces of gold production in Q2 2026, Canadian gold production increased 11% quarter-over-quarter
  • First Majestic Silver (AG) reports Q2 2026 production results; announces updated 2026 production and cost guidance; names new CFO
  • Fortuna Silver Mines (FSM) reports Q2 production in line with guidance, advances growth projects
  • Levi Strauss (LEVI) beats by $0.04, beats on revs; raises FY26 EPS and revenue guidance; also increases dividend; Guides Q3 revenue above consensus and Q3 EPS below consensus
  • Honeywell (HON) updates 2026 financial guidance following HONA spin-off and reverse stock split
  • Main Street Capital (MAIN) reports Q2 private loan originations and funding activity
  • Orla Mining (ORLA) reports strong second quarter operating results
  • PepsiCo (PEP) beats by $0.02, reports revs in-line; reaffirms FY26 guidance
  • PriceSmart (PSMT) misses by $0.04, beats on revs; plans for first club in Chile, eleventh club in Costa Rica
  • Venture Global (VG) announced the volume of LNG cargos exported from its facilities and the implied weighted average fixed liquefaction fee realized by the Company for the quarter ended June 30, 2026
• General News
  • U.S. and Iran exchange fire for a second day. NBC News
  • Traffic in the Strait of Hormuz at a near standstill amid renewed U.S. and Iranian attacks. Bloomberg
  • President Trump denies his Air Force One plane change had to do with security concerns but says he is "number one" on Iran's kill list. NY Times
  • Democratic Maine Senate candidate Graham Platner suspends his campaign. Democrats will now have to replace him on the ballot. NBC News
  • White House secures historic defense investment from NATO allies
  • China considers limits on homegrown artificial intelligence models. WSJ
  • The Trump administration expected to remove truck emissions regulations put in place by the Biden administration, according to Fox News
  • EPA confirms proposal to eliminate Diesel Exhaust Fluid deratements entirely
  • Aehr Test Systems (AEHR) received additional follow-on production order for a fully automated FOX-XP wafer-level burn-in system
  • Alector (ALEC): GSK terminates collaboration with Alector
  • Amazon (AMZN) Shipping looks to compete with Fed (FDX) and UPS (UPS) with lower pricing, according to Supply Chain Drive
  • Ampco-Pittsburgh Corp (AP). announces significant increase in customer order activity
  • Apple (AAPL) scores record 89 Emmy Award nominations, with top category nods for celebrated comedies Widow’s Bay, Shrinking, and Margo’s Got Money Troubles, and global hit dramas Pluribus, Slow Horses, and Your Friends & Neighbors
  • AstraZeneca (AZN): Appeals Court upholds AZN win in Pfizer (PFE) cancer case, according to Reuters
  • Bank of Montreal (BMO) Insurance launches AI-enhanced SmartDecision tool
  • BellRing Brands (BRBR) announces that Michael Axelrod has been appointed as President and Chief Executive Officer
  • Carlyle Group (CG) aiming to sell $2.6 bln data power unit to EQT (EQBBF), according to FT
  • Centene (CNC) unit retains Illinois Medicaid managed care contract
  • Cerebras Systems (CBRS) outlines European AI infrastructure expansion
  • Copart (CPRT) promotes Jane Pocock to President
  • DraftKings (DKNG) to launch online sportsbook and casino, along with its Golden Nugget Online Gaming brand, in Alberta on July 13
  • Dr. Reddy's (RDY) discloses that certain batches of semaglutide were out of specification due to an issue associated with the active pharmaceutical ingredient used in the product
  • Eli Lilly (LLY) to present Alzheimer's disease diagnostic and therapeutic research at AAIC 2026, including new data on P-tau217 blood tests and amyloid-targeting treatment
  • Enovix (ENVX) announces that Dr. Michael Vyvoda, former Director of Product Operations at Apple, will join the company as Chief Operating Officer, effective July 29, 2026
  • Exelon (EXC) announces the successful energization of two new 345 kV transmission substations to its gri
  • Fervo (FRVO) reports 143% improvement in drilling rates at Cape Station
  • FMC Corp (FMC) files first global regulatory submission for rimisoxafen with U.S. EPA
  • FuelCell Energy (FCEL) and Siemens (SIEGY) partner on distributed power solutions
  • Greenwich LifeSciences (GLSI) announces European approval for use of commercially manufactured GP2 in FLAMINGO-01
  • Hasbro (HAS) aiming to introduce grown up brands, according to WSJ
  • Hawaiian Electric (HE) announces approval of two renewable energy project contracts
  • IBM (IBM) announces major updates to IBM Bob, its agentic software development platform, including new multi-agent capabilities, built-in AI cost and use analytics, and pre-built, specialized workflows for modernizing enterprise systems
  • Ionis Pharma (IONS) and AstraZeneca (AZN) report Phase 3 ATTR-CM study misses primary endpoint
  • Ipsen S.A. (IPSEY) reports Phase III migraine results for Dysport
  • KKR (KKR) launches Allyntra, an engineered solutions platform for medical technology and precision industries
  • L3Harris (LHX) announces they have received orders totaling $84 mln in support of the U.S. Army for Next Generation Command and Control manpack Falcon systems
  • LATAM Airlines (LTM) Board approved buyback
  • Meta Platforms (META) will place AI chip into production in September as it aims to double computing capacity, according to Reuters
  • Meta Platforms (META) CEO Mark Zuckerberg says is considering if Meta’s AI infrastructure could be valuable if rented to others, according to Bloomberg
  • Monster Beverage (MNST) approves a 2-for-1 split of its common stock that will be effected in the form of a 100% stock dividend
  • Napco Security Systems (NSSC) announces leadership transitions; Richard Soloway, currently Chairman and Chief Executive Officer, will serve as Founder and Executive Chairman
  • NASDAQ (NDAQ) reports June 2026 volumes and 2Q26 statistics
  • Natera (NTRA) announced that Signatera has received certification as a Class C device under the European Union’s In Vitro Diagnostic Regulation
  • Natural Gas Services (NGS) expects to complete redomestication of its state of incorporation from Colorado to Texas, effective on or about July 20, 2026
  • NeoGenomics (NEO) announces the launch of PTEN IHC CDx, the first immunohistochemistry companion diagnostic test approved by the U.S. Food and Drug Administration for patients with prostate adenocarcinoma
  • Nokia (NOK) and NestAI expand defense AI partnership for battlefield communications
  • North American Construction Group (NOA) announces ML Northern Services Ltd. has been awarded a five-year heavy equipment services contract with a major Canadian oil sands customer
  • NVIDIA (NVDA): France's investigation of Nvidia nearing a conclusion. Reuters
  • Opus Genetics (IRD) provides BEST1 program update with detailed timeline for OPGx-BEST1 results
  • Pembina Pipeline (PBA) confirms Meta (META) and the Government of Alberta plans for new data centre investment
  • Perion Network (PERI) announces new partnership with Acrossmedia241 to bring Outmax to agencies and brands across Greece and the broader Central and Eastern European market
  • Rackspace Technology (RXT) expands AI partnership with Palantir (PLTR)
  • Rambus (RMBS) announces its DDR5 9600 Server RDIMM chipset
  • RH (RH) announces that Chairman & Chief Executive Officer Gary Friedman sold an aggregate of 125,000 shares of RH common stock from July 6, 2026 through July 8, 2026
  • Rhythm Pharmaceuticals (RYTM) announces the NEJM publication of Phase 3 TRANSCEND trial results in acquired hypothalamic obesity
  • Roche Hldg (RHHBY) receives CE Mark for tuberculosis blood test
  • Sempra Energy (SRE) exports first LNG cargo from Mexico Pacific Coast project
  • Starbucks (SBUX) developing AI tools that could replace software from Microsoft (MSFT) and IBM. Bloomberg
  • Tesla (TSLA): Judge approves Elon Musk's settlement with SEC. Reuters
  • Ultra Clean Holdings (UCTT) announces the appointment of Michael Keogh as Chief Financial Officer, effective August 5, 2026
  • United Natural Foods (UNFI) announces leadership updates to strengthen execution of the Company’s strategy, focused on adding value for customers and suppliers while improving effectiveness and efficiency
  • Vale S.A. (VALE) clarifies Chairman's unplanned departure
  • Vermilion Energy (VET) announces the Toronto Stock Exchange has approved the notice of Vermilion to commence a normal course issuer bid through the facilities of the TSX, New York Stock Exchange and other alternative trading platforms in Canada and the United States
  • Volkswagen AG (VWAGY) Executive Board presents future plan
  • Zillow (ZG): Google Gemini (GOOG, GOOGL) now connects renters to Zillow tour booking

• Upgrades:
  • AIG (AIG) upgraded to Overweight from Neutral at Cantor Fitzgerald, tgt $92
    
  • American Tower (AMT) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $188
    
  • Cinemark (CNK) upgraded to Neutral from Sell at Goldman, tgt $30
    
  • Five Below (FIVE) upgraded to Outperform from Neutral at Mizuho, tgt $220
    
  • Grainger (GWW) upgraded to Peer Perform from Underperform at Wolfe Research
    
  • ITT (ITT) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $229
    
  • Knight-Swift Transportation (KNX) upgraded to Buy from Neutral at Citigroup, tgt $90
    
  • Old Dominion Freight Line (ODFL) upgraded to Neutral from Sell at Citigroup, tgt $228
    
  • Redwood Trust (RWT) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $6
    
  • Saia (SAIA) upgraded to Buy from Neutral at Citigroup, tgt $488
    
  • Sarepta Therapeutics (SRPT) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $27
    
  • Ternium (TX) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $45
    
  • The Bancorp (TBBK) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $77
    
  • Toast (TOST) upgraded to Buy from Neutral at Goldman, tgt $36
• Downgrades:
  • AeroVironment (AVAV) downgraded to Sector Perform from Outperform at RBC Capital, tgt $180
  • Caesars Entertainment (CZR) downgraded to Equal Weight from Overweight at Barclays, tgt $31
    
  • Ducommun (DCO) downgraded to Sector Perform from Outperform at RBC Capital, tgt $175
    
  • First Citizens BancShares (FCNCA) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $2,300
    
  • Goldman Sachs BDC (GSBD) downgraded to Underperform from Neutral at BofA Securities, tgt $8.50
    
  • Graco (GGG) downgraded to Peer Perform from Outperform at Wolfe Research
    
  • Granite Construction (GVA) downgraded to Sell from Neutral at Goldman, tgt $139
    
  • Kaiser Aluminum (KALU) downgraded to Underweight from Equal Weight at Wells Fargo, tgt $158
    
  • Madison Square Garden Entertainment (MSGE) downgraded to Neutral from Buy at Goldman, tgt $82
    
  • Mattel (MAT) downgraded to Sell from Neutral at Goldman, tgt $12
    
  • Packaging Corp (PKG) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $246
    
  • Paramount Skydance (PSKY) downgraded to Sell from Neutral at Arete, tgt $2
    
  • Pentair (PNR) downgraded to Peer Perform from Outperform at Wolfe Research
    
  • Salesforce (CRM) downgraded to Sector Weight from Overweight at KeyBanc
    
  • Stellantis (STLA) downgraded to Neutral from Overweight at JPMorgan
    
  • Tractor Supply (TSCO) downgraded to Neutral from Outperform at Mizuho, tgt $32
• Others:
  • Alerus Financial (ALRS) resumed with an Outperform at Raymond James, tgt $34
    
  • Align Technology (ALGN) initiated with an Outperform at BMO Capital, tgt $209
    
  • Alphatec (ATEC) initiated with an Outperform at BMO Capital, tgt $11
    
  • Axos Financial (AX) initiated with a Buy at Benchmark, tgt $115
    
  • Bank of Hawaii (BOH) initiated with a Hold at Benchmark
    
  • Banner Corporation (BANR) initiated with a Hold at Benchmark
    
  • Capitol Federal Financial (CFFN) initiated with a Buy at Benchmark, tgt $10
    
  • CECO Environmental (CECO) initiated with an Overweight at JPMorgan, tgt $130
    
  • Central Pacific Financial (CPF) initiated with a Buy at Benchmark
    
  • Cohu (COHU) initiated with an Outperform at Robert W. Baird, tgt $65
    
  • Comfort Systems USA (FIX) initiated with a Buy at Goldman, tgt $2,159
    
  • CONMED (CNMD) initiated with a Market Perform at BMO Capital, tgt $36
    
  • Dentsply Sirona (XRAY) initiated with a Market Perform at BMO Capital, tgt $12
    
  • Edgewise Therapeutics (EWTX) initiated with an Outperform at Oppenheimer, tgt $51
    
  • Enovis (ENOV) initiated with an Outperform at BMO Capital, tgt $29
    
  • Envista (NVST) initiated with a Market Perform at BMO Capital, tgt $27
    
  • First Financial (THFF) resumed with a Market Perform at Raymond James
    
  • First Hawaiian (FHB) initiated with a Hold at Benchmark
    
  • Flotek (FTK) initiated with a Buy at JonesResearch, tgt $40
    
  • GE HealthCare (GEHC) initiated with a Market Perform at BMO Capital, tgt $70
    
  • Globus Medical (GMED) initiated with an Outperform at BMO Capital, tgt $94
    
  • Henry Schein (HSIC) initiated with a Market Perform at BMO Capital, tgt $85
    
  • Integra LifeSciences (IART) initiated with a Market Perform at BMO Capital, tgt $19
    
  • Intuitive Surgical (ISRG) initiated with an Outperform at BMO Capital, tgt $518
    
  • LXP Industrial Trust (LXP) initiated with an Outperform at BMO Capital, tgt $65
    
  • Medallion Financial (MFIN) initiated with a Market Perform at Raymond James
    
  • Orchid Island Capital (ORC) initiated with a Neutral at BTIG
    
  • Orrstown Financial (ORRF) resumed with a Market Perform at Raymond James
    
  • OS Therapies (OSTX) initiated with a Buy at Roth Capital, tgt $7
    
  • Perimeter Solutions (PRM) initiated with an Overweight at JPMorgan, tgt $50
    
  • Polaryx Therapeutics (PLYX) initiated with a Buy at H.C. Wainwright, tgt $7
    
  • Scorpio Tankers (STNG) reinstated with an Equal Weight at Morgan Stanley, tgt $82
    
  • Solventum (SOLV) initiated with a Market Perform at BMO Capital, tgt $81
    
  • Stryker (SYK) initiated with an Outperform at BMO Capital, tgt $369
    
  • Teleflex (TFX) initiated with an Outperform at BMO Capital, tgt $159
    
  • Tesla (TSLA) initiated with a Market Perform at Citizens
    
  • Waters (WAT) initiated with an Outperform at RBC Capital, tgt $435
    
  • Zimmer Biomet (ZBH) initiated with a Market Perform at BMO Capital, tgt $95

• Econ Data (Friday):
  • No U.S. economic data of note

• Earnings:
  • Monday (July 6)
    • Pre-Market: None
    • After-Hours: None
      
    Tuesday (July 7)
    • Pre-Market: None
    • After-Hours:EPAC PENG
      
  • Wednesday (July 8)
    • Pre-Market: HELE
      
    • After-Hours: AZZ LEVI PSMT
      
  • Thursday (July 9)
    • Pre-Market: PEP SMPL
    • After-Hours: WDFC
  • Friday (July 10)
    • Monday: DAL
    • Afternoon: None