After Hours Report

The S&P 500 and Nasdaq Composite set record highs on Friday, and there was no stopping them from extending their reach into record territory today. For a moment, it looked like there might be some interference in that effort, yet a rush of buying interest in Apple (AAPL 205.17, +4.09, +2.03%) occurred in the afternoon session following a Bloomberg report that the company is considering using outside AI help to drive its new version of Siri.

Apple was trading just shy of $200 per share when that news hit but traded as high as $207.39 in its wake. That was a hefty load of market cap weight that ultimately fueled a move above 6,200 for the S&P 500 on the last trading day of a remarkable second quarter that saw the S&P 500 increase 10.6% and the Nasdaq Composite gain 17.8%. Those gains, though, don't even tell half the story. From their lows on April 7, the S&P 500 and Nasdaq Composite are up 28% and 38%, respectively.

Prior to the Apple news, today's session was filled with political news that was generally interpreted in a positive light. 

The Senate passed a procedural vote over the weekend that paved the way for a full Senate vote late tonight or early tomorrow on its version of the "One Big, Beautiful Bill." That bill, among other things, will extend the 2017 tax cuts for all income levels and make those cuts permanent; it starts Medicaid work requirements beginning in December 2026, phases out solar and wind tax credits beginning in December 2026, raises the SALT deduction cap to $40,000 for people making $500,000 or less for a 5-year period, after which it reverts to $10,000, and increases the debt ceiling by $5 trillion.

If the Senate passes the bill, which the CBO estimates will add $3.3 trillion to the deficit over the next decade, it will head to the House for review and set up the possibility of it being on the president's desk for signing by July 4. The comforting point for the stock market in all this was that the Treasury market didn't revolt over the CBO estimate. In fact, the Treasury market staged a minor rally that saw gains across the curve led by longer-dated maturities.

The 2-yr note yield dipped two basis points to 3.72%, and the 10-yr note yield dropped six basis points to 4.23%. Running alongside the developments pertaining to the "One Big, Beautiful Bill" were reports highlighting Canada's efforts to renew negotiations with the U.S. by dropping its digital services tax and speculation that other trade deals, including the possibility of one with the EU, could be announced soon.

Separately, it was welcome news for the capital markets to hear that the largest banks all passed the Federal Reserve's stress test. That news was released after Friday's close, and it paves the way for banks to announce capital return plans.

The investment banks, led by Dow component Goldman Sachs (GS 707.75, +16.94, +2.45%) reaching a record high of its own, paced the gains in the financials sector (+0.9%). The only other sector performing better than the financials sector today was information technology (+1.0%), which rallied around Apple and the AI trade tied to encouraging commentary out of Oracle (ORCL 218.63, +8.39, +3.99%) for its cloud business. For the quarter, the information technology sector gained 23.5%.

Most sectors ended higher today. The only two laggards were the consumer discretionary (-0.9%) and energy (-0.7%) sectors.

• S&P 500: +5.5% YTD
• Nasdaq: +5.5% YTD
• DJIA: +3.6% YTD
• S&P 400: -0.6% YTD
• Russell 2000: -2.5% YTD

Reviewing today's data:

• June Chicago PMI (Actual 40.4; Briefing.com consensus 43.4; prior 40.5)

Overseas:

• Europe: DAX -0.4%, FTSE  -0.4%, CAC -0.3%
• Asia: Nikkei +0.8%, Hang Seng -0.9%, Shanghai +0.6%

Commodities:

• Crude Oil -0.35 @ 65.10
• Nat Gas -0.26 @ 3.49
• Gold +20.10 @ 3307.90
• Silver -0.21 @ 36.16
• Copper -0.04 @ 5.08

After-Hours Spotlight:

• Potential TikTok acquirer is same consortium behind previously stalled bid, according to Bloomberg
• AeroVironment (AVAV) announces proposed offerings of $750 mln of common stocks and $600 mln of convertible senior notes due 2030... AVAV down 6.7%
• Boeing (BA) announces that Jesus "Jay" Malave has been elected as incoming CFO, effective August 15... BA up 0.3%
• Circle Internet Group (CRCL) formally submitted an application to the Office of the Comptroller of the Currency to establish a national trust bank... CRCL up 0.8%
• Progress Software (PRGS) beats by $0.10, reports revs in-line; guides Q3 EPS in-line, revs in-line; raises FY25 EPS and revenue guidance; Progress Software acquires Nuclia... PRGS down 2.8%

Fair Value for Tuesday, July 1:

• S&P 500: 6,255
• Nasdaq 100: 22,892
• DJIA: 44,393

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

• Earnings/Guidance (Full Earnings Calendar):
  • Chemed (CHE) announces developments related to Q2 earnings and FY25 guidance; States that actual Medicare admissions in both April and May in Florida were weaker than anticipated and lower than VITAS’ internal projections
  • Oracle (ORCL) confirms CEO plans to meet with other Oracle colleagues later today and will say that, "Oracle is off to a strong start in FY26"
  • Stanley Black & Decker (SWK) announces leadership transition plan; COO Christopher Nelson to become President; continues to expect Q2 performance to be better than its 2025 Planning Assumptions
• General News
  • Senate voted 51-49 on procedural motion to advance large reconciliation bill to a full Senate vote tonight; House expected to vote Wednesday. The bill includes extension of 2017 tax cuts, spending cuts (Medicaid and green energy spending), deregulation, energy reform, immigration reform, and a debt ceiling increase of $5 trillion
  • Treasury Sec Bessent interview on CNBC says ending trade talks with Canada
  • Canada rescinds digital services tax to advance broader trade negotiations with the United States
  • Federal Reserve Board's annual bank stress test
  • Fed Stress Test Follow-Up: All 22 banks tested remained above their minimum CET1 capital requirements
  • President Trump suggested keeping 25% on Japanese autos, according to Bloomberg
  • President Trump says he "could" extend tariff pause, but he rather send letters to countries letting them know what the tariff rates are. He said he will appoint "anybody but Powell" to the Fed. He would consider removing Iran sanctions if they are peaceful, according to Fox Business
  • President Trump says he believes there is a buyer for TikTok, but can't disclose name, according to Bloomberg
  • Treasury issues G7 statement on global minimum tax
  • UK Government announces "UK-US trade deal kicks into gear: immediate tariff cuts for UK auto and aerospace sectors"
  • Atlanta Fed President Raphael Bostic (non-voter) on CNBC says he doesn't think tariffs will be a one-time price shift
  • Peace deal between Rwanda and Democratic Republic of Congo will attract western investment in mineral resources, according to Reuters
  • New York Mayor candidate Zohran Mamdani says he doesn't believe billionaires should exist, according to NBC News
  • The Trump administration is considering eliminating funding to hospitals that offer gender care to minors, according to WSJ
  • Supreme Court to review Cox Communications copyright case, according to Reuters
  • CBS reporter Jennifer Jacobs says President Trump will sign executive order today easing sanctions on Syria
  • HHS to continue cancer prevention funding, according to Stat News
  • UK backs its digital services tax plan, according to reports
  • U.S. holding talks with Syria & Israel regarding security agreement, according to Axios
  • EU floats 10% tariff pact, urges US to ease auto, steel, and pharma duties, according to Bloomberg
  • Alphabet (GOOG) ticks slightly lower as OpenAI has started renting the company's Tensor Processing Units to help power ChatGPT, according to The Information
  • Alphabet (GOOG) signed the largest direct corporate offtake agreement for fusion energy with Commonwealth Fusion Systems
  • American Airlines (AAL): Supreme Court will not hear challenge to AAL partnership with JetBlue (JBLU), according to USA Today
  • Aon (AON) CEO Greg Case says insurance industry needs $1 bln in investment from private equity firms, according to FT
  • Apple (AAPL) must face US antitrust suit for smartphone monopoly, according to Reuters
  • Apple (AAPL) considers using outside AI to fix Siri in major reversal - Bloomberg TV
  • Arcturus Therapeutics (ARCT) announces positive Phase 2 interim results in people with OTC deficiency treated with ARCT-810, an mRNA therapeutic candidate designed to replace the OTC enzyme and restore urea cycle activity preventing hyperammonemia crises
  • argenx (ARGX) advances clinical development of ARGX-119 in congenital myasthenic syndromes
  • ATRenew (RERE) announces $50 mln share repurchase program over a 12-month period starting from June 30, 2025
  • Aurinia Pharma (AUPH) announces "positive" results from phase 1 study of Aritinercept
  • Avadel Pharmaceuticals (AVDL): D.C. Court of Appeals affirms the D.C. Court's ruling and upholds the FDA's approval of LUMRYZ in JAZZ case
  • Avadel Pharmaceuticals (AVDL) shareholder wants new Board of Directors, according to WSJ
  • Baidu (BIDU) will make its Ernie AI model open source, according to CNBC
  • Bayer AG (BAYRY) provides litigation update; obtained favorable outcomes in 17 of the last 25 trials
  • Biogen (BIIB) initiates Phase 3 study of felzartamab for the treatment of PMN
  • Boqii Holding (BQ) to end ADR program and consolidate ordinary shares to trade on AMEX
  • BridgeBio Pharma (BBIO) sold a portion of royalties due to the company from sales of BEYONTTRA in Europe to HealthCare Royalty and funds managed by Blue Owl Capital for $300 mln
  • Burford Capital (BUR) issues update to its statement in connection with proposed tax provisions relating to litigation finance included in the US budget reconciliation bill
  • Caesars Entertainment (CZR): SL Green Realty (SLG), Caesars Entertainment (CZR), Roc Nation, and Live Nation (LYV) submitted the official proposal for Caesars Palace Times Square
  • Celcuity (CELC) announces preliminary clinical data for gedatolisib in two early phase clinical trials
  • Chunghwa Telecom (CHT) and other network service providers jointly invest in AUG submarine cable construction
  • Core Natural Resources (CNR) provides an update on its ongoing efforts to resume longwall operations at its Leer South mine; Reiterates its 2025 coking coal sales volume guidance despite the delayed restart of the Leer South mine
  • Delta Air Lines (DAL): Weather delays impacted Delta over the weekend, according to WSJ
  • Diginex Limited (DGNX) announces additional government funding support for its AI-powered compliance solutions
  • Ecopetrol (EC) extends temporary 50% fee reduction agreement for ADR conversion in the United States
  • EHang (EH) secures order for 50 units of EH216-S from Guizhou and Partners with Anshun Government to advance low-altitude cultural tourism
  • Eni S.p.A (E) Next unit & Azimut partner for energy innovation: strategic collaboration between leading players in the asset management and energy sectors to accelerate energy tech
  • Ford (F) forced to idle some U.S. plants due to China rare earth shortages, according to Bloomberg
  • Fortive (FTV) announces completion of the Ralliant separation and appointment of Olumide Soroye as President, CEO and Director of Fortive
  • Fox News (FOXA): California Governor Gavin Newsom files $787 lawsuit against Fox News, according to Reuters
  • General Mills (GIS) completes the sale of its U.S. Yogurt business to Lactalis; U.S. Yogurt business contributed approximately $1.2 billion USD to General Mills’ fiscal 2025 net sales
  • General Motors (GM): Appeals Court sides with General Motors related to transmission lawsuits, according to Reuters
  • General Motors (GM) workers at Mexico plant vote to unionize, according to Bloomberg
  • Globalstar (GSAT) announces the successful installation of Clifton-8, the first 6-meter tracking antenna dedicated to its upcoming C-3 mobile satellite system, officially kicking off a sweeping global expansion of Globalstar’s ground infrastructure related to the new Extended MSS Network
  • Goldman (GS) ends plans to create a hotel brand in Greece, according to WSJ
  • Hikma USA (HKMPF) announces $1 bln of new US investment to further expand its domestic manufacturing and development of essential generic medicines
  • HUTCHMED (HCM) announces China approval for ORPATHYS in combination with TAGRISSO for the treatment of lung cancer patients with MET amplification after progression on first-line egfr inhibitor therapy
  • ICICI Bank (IBN): Board of Directors of the Bank has approved purchase of up to 2.0% additional shareholding in the Company
  • IDEAYA Biosciences (IDYA) appoints Joshua Bleharski as CFO
  • iHeartMedia (IHRT) and Audacy will expand the reach of its full broadcast radio portfolio through a content distribution partnership
  • INmune Bio (INMB) announces results from its Phase 2 MINDFuL trial evaluating XPro
  • Intel (INTC) CSO Safroadu Yeboah-Amankwah will leave the company, according to Reuters
  • Intuit (INTU) acquires Relevvo to bolster AI-driven mid-market GTM strategy
  • Lantronix (LTRX) enters into cooperation agreement with investor group led by Chain of Lakes Investment Fund LLC
  • LATAM Airlines (LTM) approved the commencement of the new share repurchase program
  • Lemonade (LMND) announces that its reinsurance program is being renewed
  • Mineralys Therapeutics (MLYS) announces the publication of the positive results from the pivotal Phase 3 Launch-HTN trial in the Journal of the American Medical Association
  • Moderna (MRNA) announces 'positive' phase 3 results for seasonal influenza vaccine
  • OpenAI might double down on consulting services, according to The Information
  • Palantir Technologies (PLTR) & and Accenture (ACN) federal services join forces to help federal government agencies reinvent operations with AI
  • Pfizer (PFE): House Judiciary subpoenas former Pfizer exec over alleged vaccine timing delay tied to 2020 election, according to CNN
  • Robinhood (HOOD) launches stock tokens, reveals Layer 2 blockchain, and expands crypto suite in EU and US with perpetual futures and staking
  • Rocket Pharmaceuticals (RCKT) announces FDA IND clearance of RP-A701 for the treatment of bag3-associated dilated cardiomyopathy
  • RTX (RTX) awarded a $279 mln US Army contract
  • Sanofi (SNY): Riliprubart granted orphan drug designation in Japan for chronic inflammatory demyelinating polyneuropathy
  • Stanley Black & Decker (SWK) announces leadership transition plan; COO Christopher Nelson to become President; continues to expect Q2 performance to be better than its 2025 Planning Assumptions
  • Stellantis (STLA) recalls 250,651 2022-2025 Pacifica and Voyager vehicles due to airbag issue
  • SunCar Technology (SDA) partnership with Xiaomi enters a new phase to support its YU7 launch
  • Tesla (TSLA) announces "World's first autonomous delivery of a car!"
  • TXNM Energy (TXNM): New Mexico Public Regulation Commission (NMPRC) approved the unopposed stipulation filed in PNM's 2028 Resource Application
  • V2X (VVX) awarded new foreign military sales contract supporting Iraq's F-16 program
  • Vanguard International Semiconductor might accelerate chip manufacturing schedule, according to Bloomberg
  • VinFast (VFS) aiming to open second domestic factory, according to Reuters
  • Vuzix (VUZI) announces that that TranscribeGlass is continuing to place follow-on orders for Vuzix Z100 smart glasses to support increasing demand for its AI-powered real-time transcription service
  • W&T Offshore (WTI) announces "positive" court finding regarding remaining surety provider claims
  • Walt Disney (DIS): MLB, ESPN resume early talks on reviving broadcast partnership, according to The Athletic
  • Xcel Energy's (XEL) Northern States Power Company filed a request with the South Dakota Public Utilities Commission for a net annual electric rate increase of $44 mln (15%)

• Upgrades:
  • Consolidated Edison (ED) upgraded to Outperform from Neutral at Mizuho, tgt $107
  • Disney (DIS) upgraded to Buy from Hold at Jefferies, tgt $144
  • Kratos Defense (KTOS) upgraded to Buy from Neutral at Goldman, tgt $52
  • Linde (LIN) upgraded to Buy from Neutral at Citigroup, tgt $535
  • Medtronic (MDT) upgraded to Peer Perform from Underperform at Wolfe Research
  • Oracle (ORCL) upgraded to Buy from Hold at Stifel, tgt $250
  • Vor Bio (VOR) upgraded to Buy from Neutral at H.C. Wainwright, tgt $3
• Downgrades:
  • ProKidney (PROK) downgraded to Underperform from Neutral at BofA Securities, tgt $1
  • Tronox (TROX) downgraded to Underperform from Market Perform at BMO Capital, tgt $3
• Others:
  • Aardvark Therapeutics (AARD) initiated with a Buy at H.C. Wainwright, tgt $40
  • AeroVironment (AVAV) initiated with a Buy at Goldman, tgt $301
  • American Healthcare REIT (AHR) initiated with an Outperform at Scotiabank, tgt $42
  • Amplify Energy (AMPY) resumed with a Buy at Alliance Global Partners, tgt $6
  • Amrize (AMRZ) initiated with a Buy at Berenberg, tgt $64
  • Amrize (AMRZ) initiated with a Hold at Jefferies, tgt $52.50
  • Aytu BioPharma (AYTU) initiated with a Buy at Ascendiant, tgt $12
  • Brookfield Asset Management (BAM) initiated with a Neutral at Piper Sandler, tgt $60
  • Capricor Therapeutics (CAPR) initiated with a Buy at Alliance Global Partners, tgt $20
  • Candel Therapeutics (CADL) assumed with a Buy at H.C. Wainwright, tgt $23
  • CAE (CAE) assumed with a Buy at Goldman, tgt $33
  • Circle (CRCL) initiated with an Underperform at Autonomous
  • Circle (CRCL) initiated with a Buy at Needham
  • Circle (CRCL) initiated with an Underweight at JPMorgan
  • Circle (CRCL) initiated with a Perform at Oppenheimer
  • Circle (CRCL) initiated with an Outperform at Bernstein
  • Circle (CRCL) initiated with an Overweight at Barclays
  • Circle (CRCL) initiated with a Neutral at Goldman
  • Compass (COMP) assumed with a Buy at BTIG Research
  • Dutch Bros (BROS) initiated with an Outperform at CICC
  • Driven Brands (DRVN) initiated with a Buy at BTIG Research
  • Edgewise Therapeutics (EWTX) initiated with a Buy at H.C. Wainwright
  • First Busey (BUSE) initiated with a Market Perform at Hovde Group
  • KKR (KKR) initiated with an Overweight at Piper Sandler
  • Leonardo DRS (DRS) initiated with a Buy at Goldman
  • Mister Car Wash (MCW) initiated with a Neutral at BTIG Research
  • Planet Labs (PL) assumed with a Neutral at Goldman
  • Rocket Lab (RKLB) assumed with a Neutral at Goldman Sachs
  • SailPoint (SAIL) initiated with an Overweight at Cantor Fitzgerald
  • Starbucks (SBUX) initiated with an Outperform at CICC
  • Virgin Galactic (SPCE) assumed with a Neutral at Goldman
  • Waystar (WAY) initiated with an Outperform at Mizuho
  • Wells Fargo (WFC) initiated with an Outperform at KGI Securities

• Econ Data (Tuesday):
  • 09:45 ET: June S&P Global U.S. Manufacturing PMI - Final (prior 52.0)
  • 10:00 ET: May Construction Spending (Briefing.com consensus -0.2%; prior -0.4%)
  • 10:00 ET: June ISM Manufacturing Index (Briefing.com consensus 48.8%; prior 48.5%)
  • 10:00 ET: May JOLTS - Job Openings (prior 7.391M)
• Earnings:
  • Monday (June 30)
    • Pre-Market: None
    • After-Hours: PRGS
    Tuesday (July 1)
    • Pre-Market:  MSM
    • After-Hours:  STZ, GBX
      
  • Wednesday (July 2)
    • Pre-Market:  UNF
      
    • After-Hours:  None
  • Thursday (July 3)
    • Pre-Market:  None
    • After-Hours:  None
  • Friday (July 4)
    • Market closed for Independence Day
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike