After Hours Report

The stock market opened to broad-based retreats following the July PPI report (up 0.9% month-over-month; Briefing.com consensus 0.2%), though the market's reaction was muted in comparison to Tuesday's advance that followed a friendlier CPI report for July (up 0.2%; Briefing.com consensus 0.2%), with the major averages ultimately finishing on their flatlines.

While the S&P 500 spent the majority of the session in negative territory, a slight gain of 0.03% saw the index capture a new record high of 6,468.54.

Tuesday's CPI report boosted the probability of a 25 basis-point September rate cut to 99.9%. Today's data lessened that probability to 92.6%, according to the CME FedWatch tool.

While a September rate cut is still highly likely, the July PPI report threw a serious wrench into recent arguments for a 50 basis-point cut. St. Louis Fed President Musalem (FOMC voter) and San Francisco Fed President Daly (non-voter) both stated today that the current data does not reflect the need for a 50 basis-point cut, with Musalem remarking that he will go into the September meeting with an open mind.

Losses were especially broad-based in the early going, with all eleven S&P 500 sectors opening in negative territory, though the market would finish much improved from session lows.

The communication services (+0.4%) sector benefitted from modest gains in its mega-cap constituents, Meta Platforms (META 782.13, +2.05, +0.26%) and Alphabet (GOOG 203.82, +0.79, +0.39%), while a strong performance in Amazon (AMZN 230.98, +6.42, +2.86%) propped up an otherwise weak consumer discretionary sector (+0.5%).

Investors continued to do some bargain hunting in the health care sector (+0.5%), and the financials sector (+0.6%) also notched a nice gain, rounding out the four S&P 500 sectors that advanced today. The information technology sector finished flat.

The other six sectors would see losses that ranged from 0.2% to 0.9%, as breadth figures denoted broad-based selling activity, with decliners outpacing advancers by a nearly 3-to-1 margin on the NYSE and a greater than 2-to-1 ratio on the Nasdaq.

Despite the broad-based retreat, a rotation back into several mega-cap names kept the losses modest. The Vanguard Mega Cap Growth ETF advanced 0.3% today, and the market-weighted S&P 500 (flat) noticeably outperformed the S&P 500 Equal Weighted Index (-0.6%).

Meanwhile, the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.2%) gave back a good chunk of their advances from earlier in the week, with rising market rates and a re-think of the policy outlook tempering some of the rotational excitement that followed the CPI report

U.S. Treasuries retreated on Thursday, sending yields from their lowest levels of the week back toward highs from Tuesday. The 2-year note yield settled up five basis points at 3.74%, and the 10-year note yield settled up six basis points at 4.29%.

• Russell 2000: +3.6% WTD
• S&P Mid Cap 400: +2.1% WTD
• DJIA: +1.7% WTD
• S&P 500: +1.2% WTD
• Nasdaq Composite: +1.2% WTD

Reviewing today's data:

• The index for final demand jumped 0.9% month-over-month in July (Briefing.com consensus: 0.2%) following an unchanged reading in June. The index for final demand, excluding food and energy, also increased 0.9% month-over-month (Briefing.com consensus: 0.2%) following an unchanged reading in June. With these readings, the index for final demand is up 3.3% year-over-year, versus 2.4% in June, while the index for final demand, excluding food and energy, is up 3.7%, versus 2.6% in June.
  • The key takeaway from the report, other than that it completely flies in the face of the relatively friendly CPI report, is that wholesale prices rose appreciably across all stages of production and for both goods and services. The concern will be that this inflation will register in the PCE Price Index and keep the Fed from being as aggressive with its rate cut approach as had been envisioned following the CPI data.
• Initial jobless claims for the week ending August 9 decreased by 3,000 to 224,000 (Briefing.com consensus: 228,000), while continuing jobless claims for the week ending August 2 decreased by 15,000 to 1.953 million.
  • The key takeaway from the report is still the same. Layoffs are low, but finding a new job, if laid off, is taking longer. Weekly natural gas inventories increased by 56 bcf after increasing by 7 bcf a week ago.

Overseas:

• Europe: DAX +0.8%, FTSE +0.1%, CAC +0.8%
• Asia: Nikkei -1.5%, Hang Seng -0.4%, Shanghai -0.5%

Commodities:

• Crude Oil +1.33 @ 63.95
• Nat Gas +0.01 @ 2.84
• Gold -25.00 @ 3383.20
• Silver -0.54 @ 38.06
• Copper -0.02 @ 4.48

After-Hours Spotlight:

• Applied Materials (AMAT) beats by $0.12, beats on revs; guides Q4 EPS below consensus, revs below consensus... AMAT -12.6%
• Gambling.com Group Ltd. (GAMB) reports Q2 (Jun) results, beats on revs; guides FY25 revs in-line; announces agreement to acquire Spotlight.Vegas; expands share buyback authorization... GAMB -10.4%
• Globant (GLOB) beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides FY25 EPS in-line, revs in-line... GLOB -8.1%
• Sandisk (SNDK) beats by $0.24, beats on revs; guides SepQ EPS in-line, revs above consensus... SNDK -7.7%

Fair Value for Thursday, August 14:

• S&P 500: 6,490
• Nasdaq 100: 23,926
• DJIA: 44,992

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

• Earnings/Guidance (Full Earnings Calendar):
  • Advance Auto (AAP) beats by $0.13, beats on revs; guides FY25 EPS in-line, reaffirms FY25 revs guidance
  • Amcor (AMCR) misses by $0.01, misses on revs; guides FY26 EPS in-line
  • Applied Industrial (AIT) beats by $0.17, beats on revs; guides FY26 EPS in-line, revs in-line
  • AZZ (AZZ) issues in-line FY26 guidance in Investor Day presentation slides; Provides 3-year financial goals
  • Birkenstock Holding Plc (BIRK) beats by $0.09, reports revs in-line
  • Cellebrite DI (CLBT) beats by $0.04, reports revs in-line; guides Q3 revs in-line; guides FY25 revs in-line
  • Cisco (CSCO) beats by $0.01, reports revs in-line; guides OctQ EPS in-line, revs above consensus; guides FY26 EPS in-line, revs in-line
  • Coherent (COHR) beats by $0.08, beats on revs; guides Q1 EPS in-line, revs in-line
  • Deere (DE) beats by $0.17, reports revs in-line
  • Dillard's (DDS) beats by $0.90, reports revs in-line; Q2 comps +1%
  • dLocal Limited (DLO) beats by $0.01, beats on revs; guides FY25 revs above consensus
  • Equinox Gold (EQX) beats by $0.06, misses on revs
  • First Majestic Silver (AG) beats by $0.08, misses on revs
  • Hon Hai Precision (HNHPF) reports Q2 results
  • Ibotta (IBTA) beats by $0.30, misses on revs; guides Q3 revs below consensus
  • JD.com (JD) beats by RMB1.32, beats on revs
  • McGraw Hill (MH) reports Q1 results
  • NetEase (NTES) misses by RMB0.09, misses on revs
  • NICE (NICE) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs below consensus; reaffirms FY25 EPS guidance, revs guidance
  • SpartanNash (SPTN) beats by $0.04, reports revs in-line; note: co previously agreed to be acquired by C&S Wholesale Grocers
  • Spire Global (SPIR) guides Q2 revs in-line, guides Q3 revs below consensus, reaffirms FY25 revenue guidance
  • StandardAero (SARO) misses by $0.01, beats on revs; guides FY25 revs in-line
  • Tapestry (TPR) beats by $0.02, beats on revs; guides FY26 revs above consensus
  • TORM plc (TORM) reports beats by $0.01; misses on revs
  • Vipshop (VIPS) beats by RMB0.08, reports revs in-line
  • Weibo (WB) beats by $0.11, beats on revs
  • ZEEKR Intelligent Technology Holding Limited (ZK) reports Q2 results
• General News
  • Lawyers from the Trump administration warned federal judges of economic consequences if court strikes down tariffs, according to NY Times
  • European leaders are in agreement with President Trump about the Putin summit strategy tomorrow, according to NY Times
  • President Trump revokes Biden-era competition executive order
  • President Trump signed an executive order to fill the Strategic Active Pharmaceutical Ingredients Reserve with critical drug components, ensuring a resilient domestic supply chain for essential medicines
  • House Republicans are preparing a second reconciliation bill focused on Medicaid cuts, according to Politico
  • San Francisco Fed President Mary Daly (non-voter) in an interview says 50 basis point Fed rate cut is not needed, according to WSJ
  • President Trump and Russian President Putin will hold a joint press conference tomorrow after summit, according to CNN
  • Supreme Court allows Mississippi to enforce law that requires parental consent for social media, according to CNN
  • Aduro Clean Technologies (ADUR) issues update on NGP Pilot Plant Progress
  • Alphabet (GOOG) announces additional $9 bln investment in Oklahoma in cloud and AI infrastructure
  • Aquestive Therapeutics (AQST) receives $75 mln strategic funding agreement with RTW to support the potential launch of Anaphylm
  • Arrowhead (ARWR) elects to receive approximately $50 million worth of Arrowhead common stock and approximately $50 million in cash from Sarepta Therapeutics (SRPT), satisfying the payment of a $100 million milestone owed to Arrowhead
  • Autohome (ATHM) extends share repurchase program
  • Beam Therapeutics (BEAM) announces that the United States Food and Drug Administration has granted Regenerative Medicine Advanced Therapy designation to BEAM-101, an investigational genetically modified cell therapy for the treatment of sickle cell disease
  • BigBear.ai (BBAI) announces the successful integration of its Pangiam Threat Detection solution with Smiths Detection’s HI-SCAN 6040 CTiX computed tomography screening systems
  • Candel Therapeutics (CADL) files $300 mln mixed securities shelf offering
  • Charles Schwab (SCHW) reports highlights for the month of July 2025; Core net new assets brought to the company increased 62% versus July 2024 to reach $46.9 billion
  • Coinbase Global (COIN) has closed its acquisition of Deribit, officially making Coinbase the most comprehensive global crypto derivatives platform
  • DeepSeek delays new model release, according to FT
  • dLocal Limited (DLO) announces appointment of Guillermo López Pérez as CFO
  • Dover (DOV) announces that its Bulloch POS system is now available in the United States Bulloch uniquely unifies point of sale, electronic payment systems and forecourt controllers into a single software solution that simplifies operations, maximizes uptime and provides consistent quality support to fuel and convenience operators
  • Electronic Arts (EA) Madden NFL 26 launches worldwide today, powered by real NFL Data
  • Fannie Mae (FNMA): Edge One Capital has built a significant stake in both Fannie Mae (FNMA) and Freddie Mac (FMCC)
  • Franklin Covey (FC) approves replenishing its authorization to repurchase up to an aggregate amount of $50 mln of its outstanding common stock; Also authorized the adoption of a 10b5-1 trading plan that will facilitate consistent share repurchases in compliance with applicable securities law
  • Freeport (FCX) selling large volumes of copper ore amid Indonesia plant outage, according to Bloomberg
  • Global Medical REIT (GMRE) approves a $50 million common stock repurchase program and reverse stock split of the Company’s common stock at a ratio of one-for-five
  • Granite Constr (GVA) subsidiary, Layne, A Granite Company, has been awarded an approximately $13 million contract by the Lewis and Clark Regional Water System to construct two high-capacity horizontal collector wells within an existing wellfield adjacent to the Missouri River near Vermillion, South Dakota
  • Helen of Troy (HELE) appoints Scott Uzzell as CEO, effective September 1
  • Infineon (IFNNY) completes the acquisition of Marvell Technology, Inc.'s (MRVL) Automotive Ethernet business
  • KBR (KBR) awarded an estimated $2.459 billion NASA contract to support astronaut health, occupational health, and research that could help mitigate health risks for future human spaceflight missions
  • Kemper (KMPR) enters into an accelerated share repurchase transaction under an agreement with Goldman Sachs & Co. (GS) to repurchase $150 million of its outstanding common stock
  • Lockheed Martin (LMT) awarded a $720 mln modification to previously awarded Army contract
  • Lockheed Martin (LMT): The State Department has made a determination approving a possible foreign military sale to the Government of Bahrain of M142 high mobility artillery rocket system and related equipment for an estimated cost of $500 mln
  • MacroGenics (MGNX) announces that Eric Risser has been appointed President, Chief Executive Officer and to the Board of Directors, effective August 13, 2025
  • Meta Platforms (META): Russia is trying to block the use of WhatsApp, according to Reuters
  • MSA Safety (MSA) Names Julie Beck Senior Vice President, Chief Financial Officer and Treasurer, effective August 18
  • New Found Gold Corp. (NFGC) announces temporary suspension of heavy equipment exploration activities on the Queensway Gold Project in response to forest fire risk in the region
  • Nippon Steel (NPSCY) plant explosion could impact investment plans, according to WSJ
  • Nova Minerals Limited (NVA): U.S. and Australia support for Nova’s estelle project
  • Novo Nordisk (NVO) introduces Wegovy in South Africa, according to Reuters
  • Paramount (PARA) aiming to increase film production, according to Bloomberg
  • Peloton (PTON) preparing product upgrades and push into AI, according to Bloomberg
  • Philips (PG) announces a plan for new investments of more than USD 150 million in U.S. manufacturing and research and development
  • Robinhood Markets (HOOD) reports July 2025 operating data; Total Platform Assets increased by 7% from June 2025 to $298 bln
  • Rogers Comms (RCI) has entered into a definitive agreement with InfraRed Capital Partners to sell its portfolio of nine Rogers Business data centres
  • Royal Bank of Canada (RY) and Bank of Montreal (BMO) aiming to sell Canadian payments venture, according to Reuters
  • Sanofi (SNY) reports rilzabrutinib earns orphan designation in the EU for IgG4-related disease
  • Solowin Holdings (SWIN) announces its initiative to achieve US$1 bln in assets under management for its USD Money Market Real Yield Toke by the end of 2025
  • Summit Therapeutics (SMMT) anounces that data from the Phase III HARMONi trial featuring the novel, potential first-in-class investigational bispecific antibody, ivonescimab, will be presented as part of the Presidential Symposium at the International Association for the Study of Lung Cancer’s 2025 World Conference on Lung Cancer
  • Tesla (TSLA) sales in Norway increased 24% during the first half of 2025, according to Reuters
  • TeraWulf (WULF) signs 200+ MW, 10-year AI hosting agreements with Fluidstack
  • Timken (TKR) appoints Michael Discenza as CFO
  • UBS (UBS) will miss job reduction target, according to FT
  • United Health (UNH): Berkshire Hathaway starts new position in UNH (5.04 mln shares)
  • Univ Elec (UEIC) CFO to retire
  • Virgin Galactic (SPCE): President Trump signed an executive order to streamline regulations and foster a competitive commercial space industry
  • Walmart (WMT) moving away from Trade Desk (TTD), according to The Information

• Upgrades:
  • Allegion (ALLE) upgraded to Equal Weight from Underweight at Barclays, tgt $163
  • Asbury Automotive (ABG) upgraded to Overweight from Equal Weight at Stephens, tgt $277
  • BP (BP) upgraded to Outperform from Sector Perform at Scotiabank, tgt $42
  • DLocal (DLO) upgraded to Buy from Hold at HSBC, tgt $15
  • Dow Inc. (DOW) upgraded to Neutral from Underperform at BofA Securities, tgt $25
  • Kodiak Sciences (KOD) upgraded to Neutral from Underweight at JPMorgan, tgt $15
  • Kratos Defense (KTOS) upgraded to Buy from Neutral at BTIG Research, tgt $80
  • Mid-America Aptmt (MAA) upgraded to Outperform from Neutral at Mizuho, tgt $150
  • RPM (RPM) upgraded to Neutral from Underperform at BofA Securities, tgt $128
  • Sherwin-Williams (SHW) upgraded to Neutral from Underperform at BofA Securities, tgt $375
  • uniQure (QURE) upgraded to Outperform from Neutral at Mizuho, tgt $30
• Downgrades:
  • Acadia Healthcare (ACHC) downgraded to Outperform from Strong Buy at Raymond James, tgt $26
  • AvalonBay (AVB) downgraded to Neutral from Outperform at Mizuho, tgt $199
  • CF Industries (CF) downgraded to Underperform from Neutral at BofA Securities, tgt $82
  • Coherent (COHR) downgraded to Neutral from Buy at BofA Securities, tgt $105
  • Fortive (FTV) downgraded to Equal Weight from Overweight at Barclays, tgt $54
  • Green Plains (GPRE) downgraded to Underperform from Neutral at BofA Securities, tgt $7
  • Ibotta (IBTA) downgraded to Neutral from Buy at Goldman, tgt $30
  • Ibotta (IBTA) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $30
  • Ibotta (IBTA) downgraded to Underperform from Neutral at BofA Securities, tgt $24
  • Ibotta (IBTA) downgraded to Market Perform from Outperform at Citizens JMP
  • Ibotta (IBTA) downgraded to In Line from Outperform at Evercore ISI, tgt $38
  • Illinois Tool Works (ITW) downgraded to Underweight from Equal Weight at Barclays, tgt $243
    
  • North American Construction (NOA) downgraded to Hold from Buy at TD Securities
• Others:
  • ArcelorMittal (MT) initiated with an Equal Weight at Wells Fargo, tgt $33
  • AZZ Inc. (AZZ) initiated with an Overweight at Wells Fargo, tgt $128
  • Cal-Maine Foods (CALM) initiated with a Neutral at Goldman, tgt $110
  • Cleveland-Cliffs (CLF) initiated with an Equal Weight at Wells Fargo, tgt $10
  • Commercial Metals (CMC) initiated with an Overweight at Wells Fargo, tgt $61
  • Gogo (GOGO) resumed with an Equal Weight at Morgan Stanley, tgt $15
  • Nucor (NUE) initiated with an Equal Weight at Wells Fargo, tgt $145
  • Paycom (PAYC) initiated with a Neutral at Cantor Fitzgerald, tgt $230
  • Paylocity (PCTY) initiated with an Overweight at Cantor Fitzgerald, tgt $215
  • Regeneron (REGN) initiated with a Buy at Rothschild & Co Redburn, tgt $890
  • Reliance (RS) initiated with an Equal Weight at Wells Fargo, tgt $296
  • Rocket Companies (RKT) resumed with an Equal Weight at Morgan Stanley, tgt $16
  • Schrodinger (SDGR) initiated with an Overweight at Barclays, tgt $25
  • Steel Dynamics (STLD) initiated with an Overweight at Wells Fargo, tgt $143
  • Ternium (TX) initiated with an Underweight at Wells Fargo, tgt $30
  • Workday (WDAY) initiated with an Overweight at Cantor Fitzgerald, tgt $265

• Econ Data (Friday):
  • 8:30 ET: July Retail Sales (Briefing.com consensus 0.5%; prior 0.6%), Retail Sales ex-auto (Briefing.com consensus 0.3%; prior 0.5%), August Empire State Manufacturing (Briefing.com consensus 0.0; prior 5.5), and July Import/Export Prices
  • 9:15 ET: July Industrial Production (Briefing.com consensus -0.1%; prior 0.3%) and Capacity Utilization (Briefing.com consensus 77.5%; prior 77.6%)
  • 10:00 ET: June Business Inventories (Briefing.com consensus 0.1%; prior 0.0%) and preliminary August University of Michigan Consumer Sentiment (Briefing.com consensus 61.3; prior 61.7)
  • 16:00 ET: June Net Long-Term TIC Flows (prior $259.4 bln)

• Earnings:
  • Monday (Aug 11)
    • Pre-Market: AAON B CEVA DOLE EE FNV GPRE KYMR LEGN MNDY OMI RDNT ROIV RUM TDS
    • After-Hours: ACVA AMC BBAI CNNE CE CMP FLNC FWRD GETY GDOT HPK HI MAC MRCY MLNK OKLO PUBM RPAY XENE ZIP
      
    Tuesday (Aug 12)
    • Pre-Market: CAH CRCL ETOR HUYA MSGS ONON PSFE SE SFD TTGT TME
    • After-Hours: CAE CAVA IMOS CRWV ECG HRB INTA KLC LITE LAZR WBTN
      
  • Wednesday (Aug 13)
    • Pre-Market: ARCO EAT GLBE HBM LOAR MRX PFGC SPNS SSYS
      
    • After-Hours: CSCO COHR DLO EQX IBTA SARO
      
  • Thursday (Aug 14)
    • Pre-Market: AAP AMCR AIT BIRK CLBT DE AG JD NTES NICE TPR VIPS WB
    • After-Hours: AMAT GAMB GLOB SNDK STRZ
  • Friday (Aug 15)
    • Pre-Market: FLO
    • After-Hours: None