After Hours Report

A brief and modest early rally around AI enthusiasm quickly faded into a broad market retreat just before midday, with the S&P 500 (-0.6%), Nasdaq Composite (-0.5%), and DJIA (-0.7%) trading progressively lower throughout the session. The small-cap Russell 2000 (-2.1%) and S&P Mid Cap 400 (-1.2%) lagged as the market displayed a risk-off disposition, resulting in some safe-haven demand in U.S. Treasuries.

For much of the morning, only the financials sector (-2.8%) traded in negative territory, with the initial weakness concentrated in insurer names after Marsh McLennan (MMC 186.48, -17.37, -8.52%) and Travelers (TRV 261.57, -7.88, -2.92%) traded lower despite beating earnings expectations. 

The sector would weigh heavier on the market after Zions Bancorp (ZION 46.93, -7.10, -13.14%) and Western Alliance Bancorp (WAL 70.32, -8.52, -10.81%) disclosed that they were victims of fraud involving loans tied to funds that invest in distressed commercial real estate, according to Bloomberg. Zions Bancorp disclosed a $50 million charge-off for one of the loans, which will be reflected on the company's Q3 earnings statement.

The KBW Regional Bank ETF slid 6.3% in response.

The scandal adds to a growing list of recent missteps that have prompted credit quality concerns across the industry, including Jefferies' (JEF 48.80, -5.80, -10.62%) exposure to the recently bankrupt First Brands and JPMorgan Chase (JPM 298.54, -7.15, -2.34%) and Fifth Third's (FITB 40.36, -2.56, -5.96%) exposure to the bankrupt Tricolor Auto.

Eroded confidence in the broader market ultimately saw ten S&P 500 sectors close with losses. 

Only the information technology sector (+0.1%) closed with a slight gain, led by strength in chipmakers after Taiwan Semiconductor Manufacturing (TSM 300.00, -4.71, -1.55%) reported strong AI demand in its Q3 earnings report. The PHLX Semiconductor Index (+0.5%) closed with a modest gain after retreating beneath its flatline. 

Despite the slight advance, the sector also held one of the worst-performing names in the S&P 500 amid a day ripe with laggards. F5 Networks (FFIV 295.35, -35.40, -10.70%) traded sharply lower after Bloomberg reported that the company's flagship BIG-IP product was breached by state-backed Chinese hackers.

Other notable laggards today included United Airlines (UAL 98.19, -5.86, -5.63%), which traded lower despite an earnings beat. CEO Scott Kirby said the federal government shutdown could hurt bookings if it continues, according to CNBC.

Kenvue (KVUE 14.11, -2.15, -13.22%) crashed to all-time lows on reports that the company is facing new litigation in the United Kingdom related to talc-based products, which the suit alleges are related to ovarian cancer claims.

The energy sector (-1.1%) also lagged as crude oil futures settled today's session $1.25 lower (-2.1%) at $57.03 per barrel. Reuters reported that the U.S and India had productive talks and Indian refiners are already lowering Russian imports by 50%. 

President Trump and Russian President Putin spoke on the phone today, with President Trump describing the conversation as "very productive" and announcing that he will meet with the Russian president in Hungary to discuss the war in Ukraine soon. 

There were relatively few developments regarding the recent trade tensions with China throughout the session, though President Trump described the situation as a trade war yesterday evening. 

Mounting geopolitical uncertainty, credit quality concerns across the banking industry, and a handful of negative corporate headlines culminated in a volatile environment for equities today that saw the CBOE Volatility Index surge over 20%. 

While stocks largely retreated throughout the session, U.S. Treasuries saw some safe-haven interest, with relative strength up front sending the 2-year yield to its lowest level since August 2022. The 2-year note yield settled down seven basis points to 3.43%, and the 10-year note yield settled down seven basis points to 3.98%. 

• Nasdaq Composite: +16.8% YTD
• S&P 500: + 12.7% YTD
• Russell 2000: +10.6% YTD
• DJIA: +8.0% YTD
• S&P Mid Cap 400: +3.1% YTD

Reviewing today's data:

• The Philadelphia Fed survey fell to -12.8 in October (Briefing.com consensus 9.1) from 23.2 in September.
• The NAHB Housing Market Index rose to 37 in October (Briefing.com consensus 33) from 32 in September.
• The Treasury Budget for September showed a surplus of $198.0 billion compared to a surplus of $80.3 billion in the same period a year ago. That is the largest monthly surplus since April 2025. The September surplus resulted from receipts ($544.0 billion) exceeding outlays ($346.0 billion). The Treasury Budget data are not seasonally adjusted, so the September surplus cannot be compared to the August deficit of $344.8 bln.
  • The key takeaway from the report is that the FY25 deficit was less than the FY24 deficit. That is the good news. The bad news is that the FY25 deficit was still $1.775 trillion, even with the collection of $195 billion in customs duties (for tariffs).

Overseas:

• Europe: DAX +0.4%, FTSE +0.1%, CAC +1.4%
• Asia: Nikkei +1.8%, Hang Seng +1.8%, Shanghai +1.2%

Commodities:

• Crude Oil -1.25 @ 57.03
• Nat Gas -0.07 @ 2.94
• Gold +100.70 @ 4305.50
• Silver +1.91 @ 53.30
• Copper -0.02 @ 5.00

After-Hours Spotlight:

• Bank OZK (OZK) misses by $0.07, loans decreased by 0.5%...OZK -1.6%
• Cohen & Steers (CNS) beats by $0.03, beats on revs...CNS +3.4%
• CSX (CSX) beats by $0.01, reports revs in-line...CSX +2.8%
• Glacier Bancorp (GBCI) misses by $0.04...GBCI -1.5%
• Interactive Brokers (IBKR) beats by $0.03, beats on revs...IBKR -2.1%
• Simmons First National (SFNC) misses by $0.01, reports revs in-line...SFNC -1.2%

Fair Value for Friday, October 17:

• S&P 500: 6,669
• Nasdaq 100: 22,731
• DJIA: 46,156

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

• Earnings/Guidance (Full Earnings Calendar):
  • ABB Ltd (ABBNY) reports Q3 results; names Christian Nilsson as CFO
  • Allstate (ALL) estimates catastrophe losses for the month of September of $161 mln or $128 mln, after-tax, from eight wind and hail events
  • Becton Dickinson (BDX) guides SepQ revenue in-line
  • BNY Mellon (BNY) beats by $0.11, beats on revs
  • BW LPG Ltd (BWLP) reports update on Q3 Product Services performance
  • Charles Schwab (SCHW) beats by $0.06, beats on revs, core net new assets up 41% yr/yr
  • Commerce Bancshares (CBSH) misses by $0.04, misses on revs
  • First Industrial Realty (FR) beats by $0.01, reports revs in-line; guides FY25 FFO in-line
  • Hewlett Packard Enterprise (HPE) issues FY26 guidance at Securities analyst meeting
  • Home Bancshares (HOMB) beats by $0.01, beats on revs
  • Hyperfine (HYPR) releases preliminary Q3 results; sees Q3 revs of approximately $3.4 mln, up 27% sequentially
  • Infosys (INFY) reports Q3 results
  • Insteel Industries (IIIN) misses by $0.05, misses on revs
  • J.B. Hunt Transport (JBHT) beats by $0.30, beats on revs
  • KeyCorp (KEY) beats by $0.03, reports revs in-line
  • M&T Bank (MTB) beats by $0.39; provides Q4 outlook
  • Manpower (MAN) beats by $0.02, reports revs in-line; guides Q4 EPS in-line
  • Marsh McLennan (MMC) beats by $0.07, reports revs in-line
  • Merck KGaA (MRK) reaffirms outlook at Capital Markets Day
  • Nestle (NSRGY) reports nine-month trading statement; plans headcount reduction; provides outlook
  • Pinnacle Finl (PNFP) beats by $0.23
  • Rexford Industrial Realty (REXR) beats by $0.01, beats on revs; guides FY25 FFO in-line
  • Salesforce (CRM) targets FY30 revs of $60 bln + at Investor Day
  • Silvercorp Metals (SVM) reports Q2 production and revs guidance
  • SL Green Realty (SLG) reports Q3 results
  • Snap-On (SNA) beats by $0.07, beats on revs
  • Synovus (SNV) beats by $0.10, beats on revs
  • Taiwan Semiconductor Manufacturing (TSM) beats by $0.29, beats on revs; guides Q4 revs above consensus
  • Triumph Financial (TFIN) reports Q3 (Sep) results; authorizes a $30 mln share repurchase program
  • United Airlines (UAL) beats by $0.13, reports revs in-line; guides Q4 EPS above consensus
  • U.S. Bancorp (USB) beats by $0.09, beats on revs; provides Q4 outlook
• General News
  • President Trump says U.S. in a trade war with China, according to USA Today
  • The Supreme Court appears likely to weaken key section of Voting Rights Act. This will allow Republicans to eliminate roughly 12 Democratic House seats through redestricting. The Supreme Court will likely issue a final ruling in June but could rule more quickly, according to NY Times
  • President Trump said he might attend Supreme Court hearing on tariff authority. He said case will be "one of the most important cases in the history of our country.", according to CNBC
  • South Korea optimistic about finalizing trade agreement with U.S., according to Reuters
  • The Trump administration does not believe Hamas is in violation of ceasefire, according to CNN
  • President Trump says Indian Prime Minister Narendra Modi assured him that India will stop purchasing Russian oil, but he can't do it immediately, according to Politico
  • President Trump hosted several corporate executives, according to WSJ
  • President Trump is open to loosening federal rules on cannabis, according to The Free Press
  • DOD cancelled tender to buy cobalt, according to Bloomberg
  • Several states file lawsuit to stop President Trump from cancelling $7 bln solar grant program, according to Reuters
  • President Trump will announce today that he plans to make in vitro fertilization more accessible; he will call on employers to offer IVF coverage, according to NY Times
  • Senate fails to pass bill that would have funded the Department of War during government shutdown
  • US and India had productive talks and Indian refiners are already lowering Russian oil imports by 50%, according to Reuters
  • Argentina aims to secure $20 bln swap agreement with U.S. ahead of midterm elections, according to Reuters
  • AAR Corp (AIR) and Eaton sign agreement for company to become an authorized service center for Eaton's commercial aerospace customers across EMEA
  • Adtalem Global Education (ATGE) and Google (GOOG) Cloud Partner to launch new AI credentials program for healthcare professionals
  • Airbus (EADSY): Abra has added 50 Airbus A320neo aircraft to its fleet order, bringing the total to 138 units to be delivered by 2032
  • AIRO Group Holdings (AIRO) and Bullet have signed a Letter of Intent to establish a 50/50 joint venture to produce and deploy Bullet's combat-proven fixed-wing UAV technology across the United States, NATO defense markets and Ukraine
  • Allied Gold Corporation (AAUC) priced previously announced offering of 6.4 mln common shares at C$27.35 per share for aggregate gross proceeds of approximately C$175 mln
  • American Battery Technology Co. (ABAT) disclosed DOE updates
  • Americas Silver (USAS) announces strong antimony production results at its Galena Complex
  • Ampco-Pittsburgh Corp.'s (AP) wholly owned subsidiary, Union Electric Steel Corporation, has exited its U.K. cast roll operations; Increases estimated cost savings from exit to result in approximately $7 to $8 mln increase in adjusted EBITDA on annualized run-rate basis
  • ANI Pharma (ANIP) announces New Day clinical trial results to be presented in late-breaking oral presentation at the American Academy of Ophthalmology 2025 Meeting
  • Apple (AAPL): A key Apple artificial intelligence executive will leave the company to work for Meta (META), according to Bloomberg
  • Apple (AAPL) and NBCUniversal launch Apple TV + Peacock streaming bundle
  • Armada Hoffler Properties (AHH) announced that its Board of Directors unanimously voted to appoint Shawn Tibbetts as Chairman of the Board, effective January 1, 2026
  • Bakkt (BKKT) plans to eliminate existing umbrella partnership-C corporation structure through a reorganization
  • Becton Dickinson (BDX) announces that CFO Chris DelOrefice will depart the company effective Dec 5, Vitor Roque named interim CFO
  • BTQ Technologies (BTQ) demonstrates Quantum-Safe Bitcoin using NIST Standardized Post-Quantum Cryptography
  • Cellectis’ (CLLS) R&D Day highlights Lasme-cel’s potential to address significant unmet need for patients with r/r B-ALL
  • Chemours Deutschland (CC) entered into a Receivables Purchase Agreement with BNP Paribas Factor GmbH
  • Coinbase Global (COIN) introducing a powerful suite of business payment tools on Coinbase Business
  • CoreWeave (CRWV) unveils AI object storage, redefining how AI workloads access and scale data
  • Cytek Biosciences (CTKB) announces the relocation of its European headquarters to a new facility in Amsterdam’s Life Sciences District
  • Dianthus Therapeutics (DNTH) has entered into an exclusive licensing agreement with Nanjing Leads Biolabs Co., Ltd. for DNTH212, a first and potentially best-in-class bifunctional BDCA2 and BAFF/APRIL inhibitor
  • Diversified Energy Company plc (DEC) and West Virginia launch first-of-its-kind well plugging fund
  • DocGo (DCGO) announces the planned launch of care gap closure services in New Mexico to enhance health care access for 10,000 Turquoise Care enrollees/patients/members
  • Dynavax (DVAX) Board approved the transition of David F. Novack from his roles as President and Chief Operating Officer to his new roles as Senior Vice President and Chief Operating Officer, effective January 1, 2026
  • Electronic Arts (EA) announces that Battlefield 6 shatters records becoming the biggest launch in franchise history
  • Endeavour Silver (EXK) announces commercial production at Terronera
  • Foghorn Therapeutics (FHTX) announces significant progress for selective ARID1B degrader at the 8th Annual TPD and Induced Proximity Summit
  • Ford Motor (F) recalling several models over engine block issue
  • Global Ship Lease (GSL) issues statement in response to the Implementation Measures on the Special Port Charges for U.S. Vessels issued by the Ministry of Transport of China
  • Hewlett Packard Enterprise (HPE) collaborates with Ericsson (ERIC) to validate dual-mode 5G core solution, empowering telco service providers to deliver seamless next-generation core networks
  • IBM (IBM) announces new AI Agents on Oracle (ORCL) Fusion Applications AI Agent Marketplace
  • Jefferies (JEF) could face questions on First Brands at the event today, according to WSJ
  • Johnson & Johnson (JNJ) facing lawsuits in UK over baby powder, according to Reuters
  • KKR (KKR) planning to forgo dividends to FiberCop, according to FT
  • Lockheed Martin (LMT) awarded an Integrated Fires Protection Capability 2nd Interceptor Other Transaction Authority Project Agreement to enhance its air and missile defense capabilities by the U.S. Army
  • Matador Resources (MTDR) increases quarterly cash dividend 20% to $0.375/share from $0.3125/share
  • Merck (MRK) announces phase 3 KEYNOTE-B96 trial met secondary endpoint of overall survival in all comers population of patients with platinum-resistant recurrent ovarian cancer
  • Microsoft (MSFT), Amazon (AMZN), and Google (GOOG, GOOGL) want to make more products outside China, according to Nikkei
  • New Found Gold Corp. (NFGC) announced new drill results from the Company's ongoing 2025 drill program on its 100%-owned Queensway Gold Project
  • NextNav (NN) entered into an amendment to the Equipment, Network Colocation and Installation Agreement with AT&T Services (T)
  • Nio (NIO): Singapore Wealth Fund has accused Nio of inflating revenue, according to Bloomberg
  • Nova Minerals Limited (NVA) announces 5-for-1 forward ADS split
  • Novartis AG (NVS) reports Fabhalta meets Phase III primary endpoint
  • Omeros (OMER) announces publication highlighting survival benefits in TA-TMA patients treated with narsoplimab versus a well-matched external control group
  • Praxis Precision Medicines (PRAX) reports topline results from two pivotal Phase 3 Studies of Ulixacaltamide HCl in the Essential3 Program for Essential Tremor
  • Restaurant Brands Int'l (QSR) recommends shareholders reject NYSB's "mini-tender offer"
  • Roche Hldg (RHHBY) presents major advances for its sequencing by expansion technology at the ASHG conference 2025
  • Roche Hldg's (RHHBY) Genentech announces the company’s first Direct-to-Patient program
  • Rumble (RUM) and Perplexity introduce subscription bundle for Rumble Premium and Perplexity Pro
  • Sanofi (SNY): EVOQ Therapeutics announces collaboration and license agreement with Sanofi
  • Snowflake (SNOW) & and Palantir (PLTR) announce strategic partnership for enterprise-ready AI & Analytics
  • Solaris Energy Infrastructure (SEI) announces that Amanda Brock has been named Co-Chief Executive Officer, effective October 16, 2025
  • Sony's (SONY) bank unit applied for U.S. license amid stablecoin hopes, according to Nikkei
  • SOPHiA GENETICS SA (SOPH) and A.D.A.M. Innovations announces at ESMO a strategic agreement to bring cutting-edge liquid biopsy genomic testing to the Japanese population
  • SOPHiA GENETICS SA (SOPH) announced the launch of SOPHiA DDM Digital Twins
  • Stellantis (STLA): Canada might take legal action against Stellantis over move to U.S, according to WSJ
  • Transocean (RIG) provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs; incremental backlog associated with these fixtures is approximately $243 million
  • VICI Properties (VICI) enters into agreements relating to MGM Northfield Park in Northfield, OH
  • Yatra (YTRA) disclosed reorganization of Yatra India updates
  • Zions Bancorp to charge off $50 mln of loans following review

• Upgrades:
  • Las Vegas Sands (LVS) upgraded to Overweight from Neutral at JPMorgan, tgt $60
  • PPG Industries (PPG) upgraded to Overweight from Neutral at JPMorgan, tgt $112
    
  • Sea Ltd. (SE) upgraded to Buy from Neutral at BofA Securities, tgt $215
    
  • TKO Group Holdings (TKO) upgraded to Buy from Neutral at Seaport Global Securities, tgt $214
    
  • T-Mobile US (TMUS) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $260
• Downgrades:
  • Atmos Energy (ATO) downgraded to Neutral from Buy at BofA Securities, tgt $185
    
  • AstraZeneca (AZN) downgraded to Sell from Hold at Deutsche Bank
    
  • Cricut (CRCT) downgraded to Sell from Neutral at Goldman, tgt $4.75
    
  • Fiserv (FI) downgraded to Hold from Buy at Deutsche Bank
    
  • First Horizon National (FHN) downgraded to In Line from Outperform at Evercore ISI, tgt $20
    
  • Kering SA (PPRUY) downgraded to Sell from Hold at Berenberg
    
  • Lithium Americas Corp. (LAC) downgraded to Underweight from Neutral at JPMorgan, tgt $5
    
  • Lululemon Athletica (LULU) downgraded to Market Perform from Outperform at Bernstein, tgt $190
    
  • Molina Healthcare (MOH) downgraded to Hold from Buy at TD Cowen, tgt $203
    
  • Syndax Pharmaceuticals (SNDX) assumed with a Buy at H.C. Wainwright, tgt $40
    
  • Unity Software (U) downgraded to Neutral from Buy at Arete, tgt $36
    
  • Verisk Analytics (VRSK) downgraded to Sell from Neutral at Rothschild & Co Redburn, tgt $220
    
  • Xometry (XMTR) downgraded to Neutral from Buy at Goldman, tgt $49
• Others:
  • American Electric Power (AEP) initiated with a Buy at TD Cowen, tgt $133
    
  • American Water (AWK) initiated with a Hold at TD Cowen, tgt $155
    
  • Ardagh Metal Packaging (AMBP) initiated with a Market Perform at Raymond James
    
  • Ball Corp. (BALL) initiated with a Market Perform at Raymond James
    
  • Bitmine Immersion Technologies (BMNR) initiated with a Buy at B. Riley, tgt $90
    
  • Black Diamond Therapeutics (BDTX) resumed with a Buy at Stifel, tgt $8
    
  • Celestica (CLS) initiated with a Buy at Goldman, tgt $340
    
  • Cidara Therapeutics (CDTX) initiated with an Overweight at Morgan Stanley, tgt $190
    
  • Climb Bio (CLYM) initiated with an Outperform at William Blair
    
  • Cogent Biosciences (COGT) initiated with a Hold at Stifel, tgt $16
    
  • Crown Holdings (CCK) initiated with an Outperform at Raymond James, tgt $110
    
  • Digital Realty Trust (DLR) initiated with an Equal Weight at Morgan Stanley, tgt $195
    
  • Duke Energy (DUK) initiated with a Buy at TD Cowen, tgt $143
    
  • Edison International (EIX) initiated with a Buy at TD Cowen, tgt $71
    
  • Equinix (EQIX) initiated with an Overweight at Morgan Stanley, tgt $950
    
  • Erasca (ERAS) initiated with a Buy at Stifel, tgt $4
    
  • Eversource Energy (ES) initiated with a Hold at TD Cowen, tgt $76
    
  • Exelon (EXC) initiated with a Hold at TD Cowen, tgt $49
    
  • FG Nexus (FGNX) initiated with a Buy at B. Riley, tgt $8
    
  • Gartner (IT) initiated with a Buy at Truist, tgt $300
    
  • Getty Realty (GTY) initiated with a Buy at Janney, tgt $30
    
  • Kindly MD (NAKA) initiated with a Buy at B. Riley, tgt $2
    
  • MDU Resources (MDU) initiated with a Hold at TD Cowen, tgt $20
    
  • NextEra Energy (NEE) initiated with a Buy at TD Cowen, tgt $98
    
  • PG&E (PCG) initiated with a Buy at TD Cowen, tgt $21
    
  • Pinnacle West Capital (PNW) initiated with a Hold at TD Cowen, tgt $97
    
  • Public Service Enterprise Group (PEG) initiated with a Buy at TD Cowen, tgt $93
    
  • Ramaco Resources (METC) initiated with an Outperform at Robert W. Baird, tgt $63
    
  • Revvity (RVTY) initiated with a Neutral at Guggenheim
    
  • Revolution Medicines (RVMD) resumed with a Buy at Stifel, tgt $85
    
  • Rocket Lab USA (RKLB) initiated with an Outperform at Robert W. Baird, tgt $83
    
  • SharpLink Gaming (SBET) initiated with an Outperform at Citizens JMP, tgt $50
    
  • SharpLink Gaming (SBET) initiated with a Buy at B. Riley, tgt $32
    
  • Southern Co. (SO) initiated with a Buy at TD Cowen, tgt $112
    
  • Sequans Communications (SQNS) initiated with a Buy at B. Riley, tgt $13
    
  • Toast (TOST) initiated with a Buy at Freedom Capital Markets, tgt $45
    
  • Vera Therapeutics (VERA) initiated with a Buy at BofA Securities, tgt $48
    
  • Vistra Energy (VST) initiated with a Buy at TD Cowen, tgt $250
    
  • VTEX (VTEX) initiated with a Buy at Goldman, tgt $5.30
    
  • WEC Energy Group (WEC) initiated with a Hold at TD Cowen, tgt $125
    
  • Xcel Energy (XEL) initiated with a Buy at TD Cowen, tgt $93

• Econ Data (Friday):
  • 8:30 ET: September Housing Starts (Briefing.com consensus 1.320 mln; prior 1.307 mln), Building Permits (Briefing.com consensus 1.312 mln; prior 1.312 mln), and September Import/Export Prices
  • 9:15 ET: September Industrial Production (Briefing.com consensus 0.1%; prior 0.1%) and Capacity Utilization (Briefing.com consensus 77.3%; prior 77.4%)
  • 16:00 ET: August net Long-Term TIC flows (prior $49.2 bln)

• Earnings:
  • Monday (Oct 13)
    • Pre-Market: FAST
    • After-Hours: None
      
    Tuesday (Oct 14)
    • Pre-Market: ACI BLK C DPZ ERIC FBK GS JNJ JPM WFC
    • After-Hours: HWC
      
  • Wednesday (Oct 15)
    • Pre-Market: ABT ASML BAC CFG FHN MS PNC PGR PLD SYF
      
    • After-Hours: FR HOMB JBHT PNFP REXR SLG SNV TFIN UAL
      
  • Thursday (Oct 16)
    • Pre-Market: BK SCHW CMC IIIN KEY MTB MAN MMC SNA TRV TSM USB
    • After-Hours: OZK CNS CSX FNB GBCI IBKR LBRT SFNC
  • Friday (Oct 17)
    • Pre-Market: ALLY AXP ALV CMA FITB HBAN RF SLB STT TFC WBS
    • After-Hours: None