After Hours Report
The stock market started today on a higher note, following the lead of NVIDIA (NVDA 162.88, +2.88, +1.80%), which topped a $4 trillion market capitalization. The S&P 500 quickly ran into resistance as it moved up toward last week's highs, but it eventually regrouped and marched steadily higher in the afternoon, supported by falling interest rates.
The 2-yr note yield dropped five basis points to 3.86%, and the 10-yr note yield fell eight basis points to 4.34%. Any inflation angst that one might associate with the tariff letters that have been sent this week was set aside today. Participants continued to operate on the assumption that better trade deals will be struck and that the tariff actions won't lead to untenable inflation rates or to much weaker growth.
Accordingly, the bull market action persisted, accented by the inclination to buy on weakness, the leadership of the mega-cap stocks, and a broadening out of the buying interest.
NVIDIA provided the lead headline today, but it was not the biggest gainer among the mega-cap cohort. That distinction belonged to Broadcom (AVGO 277.90, +6.10, +2.24%). Other key supports included Meta Platforms (META 732.78, +12.11, +1.68%), Amazon (AMZN 222.54, +3.18, +1.45%), Alphabet (GOOG 177.66, +2.50, +1.43%), and Microsoft (MSFT 503.51, +6.89, +1.39%), the latter of which was upgraded to Outperform from Perform at Oppenheimer.
Their showing powered the Nasdaq Composite to a record high and kept the market cap-weighted S&P 500 on positive ground throughout today's trade. Elsewhere, the small-cap stocks had another good day. The Russell 2000 rose 1.1%. Mid-cap stocks were also on the move, but the S&P Midcap 400 Index registered a more modest 0.5% gain.
The drop in market rates contributed to those advances, providing a tailwind for growth stocks and an added boost for rate-sensitive plays like the homebuilding and utilities stocks.
Market breadth favored advancers by a roughly 8-to-5 margin at the NYSE and by a 7-to-4 margin at the Nasdaq.
The S&P 500 utilities sector (+1.0%) was today's best-performing sector, followed by information technology (+0.9%), communication services (+0.9%), industrials (+0.7%), and consumer discretionary (+0.7%). The only sectors losing ground were the real estate (-0.02%), energy (-0.5%), and consumer staples (-0.6%) sectors.
Today's action included Merck's (MRK 83.71, +2.34, +2.88%) news that it is acquiring Verona Pharma (VRNA 104.77, +17.91, +20.62%) in a $10 billion deal, several more inconsequential trading partners receiving tariff letters, a solid 10-yr note auction, and the release of the FOMC Minutes for the June 17-18 meeting, which conveyed a stronger expectation of rate cuts before the end of the year than no rate cuts at all.
- Nasdaq: +6.7% YTD
- S&P 500: +6.5% YTD
- DJIA: +4.5% YTD
- S&P 400: +2.0% YTD
- Russell 2000: +1.0% YTD
Reviewing today's economic data:
- MBA Mortgage Applications Index +9.4% (prior +2.7%)
- May Wholesale Inventories -0.3% (Briefing.com consensus: -0.3%) following downwardly revised 0.1% increase (from 0.2%) in April
Overseas:
- Europe: DAX +1.4%, FTSE +0.2%, CAC +1.4%
- Asia: Nikkei +0.3%, Hang Seng -1.1%, Shanghai -0.1%
Commodities:
- Crude Oil +0.10 @ 68.40
- Nat Gas -0.12 @ 3.25
- Gold +3.60 @ 3321.00
- Silver -0.17 @ 36.64
- Copper -0.08 @ 5.50
After-Hours Spotlight:
- AGCO Corp (AGCO) announces new $1 billion share repurchase program... AGCO +2.8%
- AXT (AXTI) lowers Q2 revenue guidance... AXTI -12.6%
- AZZ (AZZ) beats by $0.20, misses on revs; raises FY26 EPS guidance, reaffirms FY26 revs guidance... AZZ -0.8%
- Costco (COST) reports June comparable sales of +6.2% (excluding gas and FX); e-Commerce adjusted comps of +11.2%... COST +1.1%
- Dollar Tree (DLTR) announces $2.5 billion share repurchase authorization... DLTR +1.2%
- KBR (KBR) announces resignation of COO Byron Bright, effective on July 11... KBR +0.3%
- Kellogg (KLG): Ferrero is nearing deal to acquire KLG for $3 bln, according to WSJ... KLG +49.7%
- Methode Electronics, Inc. (MEI) Reports Fiscal 2025 Fourth Quarter and Full Year Financial Results; Board Approves Dividend... MEI -15.4%
- Plug Power (PLUG) files for 31.5 mln share common stock offering by selling shareholder... PLUG -2.8%
- Rhythm Pharmaceuticals (RYTM) announces proposed public offering of $150 mln of common stock... RYTM -2.0%
- Stoke Therapeutics (STOK) files for $400 mln mixed securities shelf offering... STOK -1.0%
Fair Value for Thursday, July 10:
- S&P 500: 6,308
- Nasdaq 100: 23,054
- DJIA: 44,714
For a full rundown of today's market and after hours developments, see Live In Play
- Earnings/Guidance (Full Earnings Calendar):
- Aehr Test Systems (AEHR) reports Q4 results; seeing order delays due to tariff-related uncertainty, particularly in Q1 (Aug)
- Kura Sushi USA (KRUS) Announces Fiscal Third Quarter 2025 Financial Results
- Mobileye Global (MBLY) issues upside Q2 revenue guidance
- Open Text (OTEX) announces that Chadwick Westlake will step down as EVP, CFO to assume the President & CEO role at his former employer, EQB, following the unexpected passing of its CEO; sees Q4 revs slightly above consensus
- Oportun (OPRT) issues letter urging stockholders to vote for director nominees Raul Vazquez and Carlos Minetti
- Penguin Solutions (PENG) beats by $0.15, misses on revs; raises FY25 EPS above consensus, revs in-line
- RxSight (RXST) issues downside Q2 revenue guidance, lowers FY25 revenue guidance
- Theratechnologies (THTX) reports Q2 results
- Triple Flag (TFPM) announces record q2 2025 revenues
- Voya Financial (VOYA) discloses in filing that it expects Q2 alternative investment income of approximately $45-$55 mln (pre-tax), which is approximately $5 mln below to $5 mln above its long-term expectations, before variable and incentive compensation
- WPP plc (WPP) reports H1 trading update; sees Q2 lower than expected; reduces outlook
- General News
- The Supreme Court allows the Trump administration to conduct mass firings at federal agencies, which could result in tens of thousands of job losses. NY Times
- President Trump supports Russian sanctions legislation sponsored by Senator Lindsey Graham. The bill could get a vote later this month. Politico
- President Trump says he will release 7 tariff letters this morning and more this afternoon. Truth Social
- Senator Lindsey Graham's Russia sanctions legislation will impose a 500% tariff on imports from any country that purchases Russian uranium and oil (USO, XLE, CCJ, NLR). The Hill
- Kevin Hassett is now a serious contender for Fed Chairman next year. WSJ
- EU close to trade deal with U.S., but tariffs will likely be higher than UK (VGK). FT
- President Trump delayed tariffs after Treasury Secretary Scott Bessent advised him to give trade deals more time. WSJ
- Treasury Secretary Scott Bessent says tariffs will generate $300 bln in revenue for the federal government this year. Reuters
- The Trump administration is mulling sending another Patriot air defense system to Ukraine. WSJ
- Apple (AAPL) announces that Jeff Williams will transition his role of COO later this month to Sabih Khan, company's Senior Vice President of Operations as part of a long-planned succession
- Apple (AAPL) aiming to bid for Formula 1 rights. FT
- Arm Holdings plc (ARM) data centers customers increased by 14 times, according to Reuters
- Arvinas (ARVN) announces that John Houston, Ph.D., Chairperson, Chief Executive Officer and President at Arvinas, has informed the Board of Directors of his plans to retire from his role as President and CEO following a search for, and the appointment of, the Company’s new CEO
- Eli Lilly (LLY) receives FDA approval for label update for Kisunla
- Exact Sciences (EXAS) receives Medicare Coverage for Oncodetect Molecular Residual Disease Test in colorectal cancer
- Granite Constr (GVA) awarded a $111 million contract by the Utah Department of Transportation for a major infrastructure project in Salt Lake City
- Intercontinental Exchange (ICE) sets record with 1.2 bln contracts traded in H1
- JP Morgan (JPM) CEO Jamie Dimon expects more investments in Germany. Handelsblatt
- NASDAQ (NDAQ) reports June 2025 volume and statistics; U.S. equity options volume of 296 mln versus 316 mln in May 2025 and 250 mln in July 2024
- NVIDIA (NVDA): China interested in 115,000 Nvidia chips to power data centers. Bloomberg
- Plug Power (PLUG) extends strategic hydrogen supply agreement with multi-year contract
- Solid Biosciences (SLDB) Announces FDA IND and Health Canada CTA Approval for First-in-Class Cardiac Gene Therapy to Treat Catecholaminergic Polymorphic Ventricular Tachycardia (CPVT)
- Starbucks (SBUX) has received proposals from investors for its China business, according to Bloomberg
- Super Micro Computer (SMCI) planning to increase manufacturing in Europe, according to CNBC
- Toll Brothers (TOL) and International Capital announce joint venture to develop luxury multifamily community in Charlotte, NC
- Upgrades:
- Bloom Energy (BE) upgraded to Overweight from Neutral at JPMorgan, tgt $33
- BridgeBio (BBIO) upgraded to Outperform from Perform at Oppenheimer, tgt $60
- Brown-Forman (BF.B) upgraded to Neutral from Sell at Rothschild & Co Redburn, tgt $30
- Caterpillar (CAT) upgraded to Buy from Hold at Melius Research, tgt $500
- Charles River (CRL) upgraded to Buy from Neutral at Citigroup, tgt $200
- Citizens Financial Group (CFG) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt $57
- Doximity (DOCS) upgraded to Outperform from In Line at Evercore ISI, tgt $70
- Fox Corp. (FOXA) upgraded to Peer Perform from Underperform at Wolfe Research
- Haemonetics (HAE) upgraded to Buy from Neutral at Citigroup, tgt $90
- Hologic (HOLX) upgraded to Buy from Neutral at Citigroup, tgt $80
- J.M. Smucker (SJM) upgraded to Outperform from Underperform at BNP Paribas Exane, tgt $120
- JPMorgan Chase (JPM) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt $327
- Microsoft (MSFT) upgraded to Outperform from Perform at Oppenheimer, tgt $600
- Morgan Stanley (MS) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt $160
- PNC (PNC) upgraded to Mkt Perform from Underperform at Keefe Bruyette; tgt $212
- Sunrun (RUN) upgraded to Hold from Underperform at Jefferies, tgt $11
- The Hanover (THG) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $188
- Warner Music (WMG) upgraded to Neutral from Underperform at BofA Securities, tgt $33
- Downgrades:
- Arch Capital (ACGL) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $101
- Ball Corp. (BALL) downgraded to Neutral from Buy at BofA Securities, tgt $66
- Enphase Energy (ENPH) downgraded to Sell from Buy at Goldman, tgt $32
- EOG Resources (EOG) downgraded to Neutral from Buy at Roth Capital, tgt $134
- Freeport-McMoRan (FCX) downgraded to Neutral from Buy at BofA Securities, tgt $56
- Greif (GEF) downgraded to Neutral from Buy at BofA Securities, tgt $77
- Illumina (ILMN) downgraded to Sell from Neutral at Citigroup, tgt $80
- LPL Financial (LPLA) downgraded to Hold from Buy at TD Cowen, tgt $403
- Monster Beverage (MNST) downgraded to Neutral from Buy at Rothschild & Co Redburn, tgt $60
- Norfolk Southern (NSC) downgraded to Neutral from Buy at Citigroup, tgt $288
- O-I Glass (OI) downgraded to Neutral from Buy at BofA Securities, tgt $17
- PVH Corp. (PVH) downgraded to Hold from Buy at TD Cowen, tgt $74
- RenaissanceRe (RNR) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $268
- RxSight (RXST) downgraded to Neutral from Buy at BTIG
- RxSight (RXST) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $9
- Silgan Holdings (SLGN) downgraded to Neutral from Buy at BofA Securities, tgt $59
- SolarEdge (SEDG) downgraded to Neutral from Buy at Goldman, tgt $27
- Tandem Diabetes (TNDM) downgraded to Sell from Neutral at Citigroup, tgt $14
- Thermo Fisher (TMO) downgraded to Neutral from Buy at UBS, tgt $460
- Truist (TFC) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $48
- T-Mobile (TMUS) downgraded to Underweight from Sector Weight at KeyBanc, tgt $200
- Wynn Resorts (WYNN) downgraded to Neutral from Buy at Citigroup, tgt $114
- XPO (XPO) downgraded to Neutral from Buy at Citigroup, tgt $140
- Others:
- Alamos Gold (AGI) initiated with a Buy at Stifel
- Altria (MO) assumed with an Underperform at Jefferies, tgt $50
- BBB Foods (TBBB) initiated with a Neutral at Goldman, tgt $29
- Bio-Techne (TECH) initiated with a Buy at TD Cowen, tgt $65
- British American Tobacco (BTI) assumed with a Buy at Jefferies
- Cartesian Therapeutics (RNAC) initiated with an Outperform at Wedbush, tgt $38
- C3 AI (AI) initiated with a Buy at WestPark Capital, tgt $40
- Ero Copper (ERO) downgraded to Sector Perform from Outperform at National Bank
- Ero Copper (ERO) initiated with a Buy at Stifel
- FVCBankcorp (FVCB) assumed with an Overweight at Piper Sandler, tgt $16
- GeneDx (WGS) initiated with an Overweight at Piper Sandler, tgt $110
- Genius Sports (GENI) initiated with a Buy at Arete, tgt $15
- Inovio (INO) initiated with an Overweight at Piper Sandler, tgt $5
- Instacart (CART) initiated with a Neutral at Edgewater Research
- Kinetik Holdings (KNTK) initiated with a Buy at Clear Street, tgt $60
- LiveRamp (RAMP) initiated with a Buy at DA Davidson, tgt $45
- MongoDB (MDB) initiated with an Outperform at Wolfe Research, tgt $280
- Newmont (NEM) initiated with a Buy at Stifel, tgt $73
- Philip Morris (PM) assumed with a Buy at Jefferies, tgt $220
- Redwire (RDW) initiated with a Buy at Canaccord, tgt $20
- Sportradar (SRAD) initiated with a Neutral at Arete, tgt $31
- Super Micro (SMCI) resumed with an Underperform at BofA Securities, tgt $35
- Teck Resources (TECK) initiated with a Hold at Stifel
- Wingstop (WING) initiated with an Outperform at William Blair
- Econ Data (Thursday):
- 08:30 ET: Initial Jobless Claims (Briefing.com consensus: 245K; prior 233K) and Continuing Jobless Claims (prior 233K)
- 10:30 ET: EIA Natural Gas Inventories (prior +55 bcf)
- Earnings:
- Monday (July 7)
- Pre-Market: None
- After-Hours: None
- Pre-Market: None
- After-Hours: PENG
- Wednesday (July 9)
- Pre-Market: AZZ
- After-Hours: None
- Pre-Market: AZZ
- Thursday (July 10)
- Pre-Market: CAG DAL HELE SMPL
- After-Hours: LEVI PSMT WDFC
- Friday (July 11)
- Pre-Market: None
- After-Hours: None
- Monday (July 7)
