After Hours Report

The stock market mostly retreated today following some expected profit-taking after Friday's record high levels, though strength in mega-cap and tech names kept losses in the major averages modest.

The tech-heavy Nasdaq Composite (-0.2%) had the best showing of the major averages, while the S&P 500 (-0.4%) and DJIA (-0.8%) closed lower.

Nine S&P 500 sectors finished in negative territory, with the defensive consumer staples (-1.6%), health care (-1.4%), and utilities (-1.2%) sectors posting the widest losses.

The consumer staples sector was weighed down additionally by Keurig Dr Pepper (KDP 31.10, -4.04, -11.48%), which faced pressure after unveiling plans to acquire JDE Peet's for €31.85 per share in cash, valuing the deal at €15.7 billion. Following the transaction, KDP plans to separate into two publicly traded entities: a North America-focused beverage company and the world's largest stand-alone coffee business.

Meanwhile, the communication services (+0.4%) and energy (+0.3%) sectors captured modest gains.

Strong performances from a handful of mega-cap stocks prevented further losses across the major averages, though mega-cap strength as a whole diminished throughout the day, with the Vanguard Mega Cap Growth ETF (-0.2%) finishing beneath its flatline.

Nonetheless, Alphabet (GOOG 209.16, +2.44, +1.18%) captured a fresh record high, NVIDIA (NVDA 179.81, +1.82, +1.02%) traded higher ahead of its earnings report on Wednesday afternoon, and Tesla (TSLA 346.60, +6.59, +1.94%) widened its double-digit month-to-date gains.

Outside of the S&P 500, there was a notable pullback in smaller cap stocks that surged on Friday as expectations for a September rate cut increased. The Russell 2000 shed 0.8%, and the S&P Mid Cap 400 retreated 0.6%.

Homebuilders, which also benefit from a lower interest rate environment, faced pressure. The iShares U.S. Home Construction ETF finished with a 1.2% loss today after advancing an impressive 5.6% on Friday.

Overall, the market drifted sideways as rate cut expectations held steady, leaving investors reluctant to make major moves.

U.S. Treasuries began the week on a slightly lower note, with shorter tenors displaying relative weakness, while the long end also started lower, but the 30-year bond eventually recovered its opening loss. There will be ample attention on Friday's PCE inflation report, which is likely to serve as the next key catalyst for rate cut expectations.

The 2-year note yield settled up four basis points to 3.73%, the 10-year note yield settled up two basis points to 4.28%, and the 30-year note yield finished unchanged at 4.89%.

• Nasdaq Composite: +11.1% YTD
• S&P 500: +9.5% YTD
• DJIA: +6.4% YTD
• Russell 2000: +4.9% YTD
• S&P Mid Cap 400: +3.5% YTD

Reviewing today's data:

• New home sales decreased 0.6% month-over-month in July to a seasonally adjusted annual rate of 652,000 units (Briefing.com consensus 630,000) from an upwardly revised 656,000 (from 627,000) in June. On a year-over-year basis, new home sales were down 8.2%.
  • The key takeaway from the report is that the pace of sales was sluggish, owed in part to the upward revision for June. However, the affordability constraint associated with higher mortgage rates and a reduced supply of lower-priced homes was evident, as sales were lackluster month-over-month despite a drop in median and average selling prices.

Overseas:

• Europe: DAX -0.4%, FTSE  holiday, CAC -1.6%
• Asia: Nikkei +0.4%, Hang Seng +0.9%, Shanghai +1.5%

Commodities:

• Crude Oil +1.11 @ 64.78
• Nat Gas +0.01 @ 2.81
• Gold -1.40 @ 3417.40
• Silver -0.34 @ 38.70
• Copper +0.02 @ 4.48

After-Hours Spotlight:

• Avery Dennison (AVY) signs definitive agreement to acquire flooring adhesives business of Meridian Adhesives Group for $390 mln; Acquisition not expected to have material impact on adjusted EPS in 2025.. AVY unchanged
• Diginex (DGNX) issues correction to Aug 18 announcement; announces 8-to-1 stock-split paid as bonus shares... DGNX unchanged
• Navitas Semiconductor (NVTS) appoints Chris Allexandre as President and Chief Executive Officer, effective September 1, 2025... NVTS up 0.8%
• Semtech (SMTC) beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line... SMTC down 0.4%
• Skyworks (SWKS) names Philip Carter as senior vice president and chief financial officer, effective September 8, 2025; He joins Skyworks from Advanced Micro Devices, where he has served as corporate vice president and chief accounting officer... SWKS unchanged
• Transcat (TRNS) announces that CEO Lee D. Rudow has informed the Board of his plans to retire; He will continue to serve in current role until March 2026... TRNS unchanged
• Wolfspeed (WOLF) misses by $0.07, beats on revs... WOLF up 0.8%

Fair Value for Tuesday, August 26:

• S&P 500: 6,454
• Nasdaq 100: 23,490
• DJIA: 45,344

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

• Earnings/Guidance (Full Earnings Calendar):
  • Five9 (FIVN) reaffirms EPS and revenue guidance for Q3 and FY25 in Investor Presentation slides
  • Napco Security Systems (NSSC) beats by $0.05, beats on revs
  • PDD Holdings (PDD) beats by RMB 6.54, beats on revs
  • Sasol (SSL) reports FY25 results; beats on revs
• General News
  • Vice President JD Vance in an interview is optimistic U.S. can broker an end to the war between Russia and Ukraine, according to NBC News
  • The Pentagon is planning on mobilizing thousands of National Guard members next month to Chicago to crack down on crime, homelessness, and undocumented immigration, according to Washington Post
  • Russian Foreign Minister Sergey Lavrov says Russian President Putin is ready to meet with Zelenskyy when the agenda is ready, but no meeting is planned, according to NBC News
  • Political experts say President Trump's redistricting push could set the stage for Republicans to dominate the House for decades, according to Reuters
  • India is still in trade negotiations with U.S., according to Reuters
  • The Trump administration will stop construction on a $4 billion wind farm, according to NY Times
  • China proposed new pricing rules for internet platforms, according to Reuters
  • European & Asian postal services halt U.S. shipments after the end of the de minimus tariff exemption, according to Fox Business
  • Department of Interior updates list of critical minerals
  • President Trump speaking with reporters says if China doesn't allow rare earth magnet exports, he will charge them 200% tariff, but he doesn't foresee that as a problem
  • AbbVie (ABBV) will acquire Gilgamesh's lead investigational candidate, currently in clinical development for the treatment of patients with moderate-to-severe major depressive disorder
  • Advent Technologies (ADN) has received an initial order for its Ion Pair High Temperature Proton Exchange Membrane electrode assemblies from one of the major players in the energy sector
  • Aecom Tech (ACM) awarded a place on National Highways’ Specialist Professional and Technical Services 3 framework in the U.K. as part of a consortium with Arup
  • Aegon N.V. (AEG) implements increase in share buyback program
  • Amazon (AMZN): India will use Amazon and Flipkart (WMT) data for inflation, according to Reuters
  • Apple (AAPL) will start a 3-year plan to revamp iPhone, according to Bloomberg
  • Ares Management (ARES): EPIC Crude pipeline owners mulling sale, according to Reuters
  • argenx (ARGX) reports topline results from ADAPT SERON Study of VYVGART in Patients with AChR-Ab Seronegative gMG
  • AxoGen (AXGN) provides update on FDA review timeline for avance nerve graft
  • BAE Systems' (BAESY) Bohemia Interactive Simulations has been awarded a five-year enterprise license contract to deliver the Digital Virtual Trainer with three additional option years of maintenance support
  • Bank7 (BSVN) authorized a renewal of the Company's existing stock repurchase program for a term of two (2) years
  • Biogen (BIIB) and Eisai launch LEQEMBI in Austria and Germany
  • Bitmine Immersion Technologies (BMNR) provides crypto treasure update
  • Blackrock (BLK) pausing fundraising for Asia fund, according to Bloomberg
  • Blue Owl Capital (OWL) and Chirisa Technology Parks close $4 billion joint venture partnership including Machine Investment Group for Lancaster Campus
  • Boeing (BA) awarded a $315.1 mln order under a previously awarded US Navy ordering agreement
  • Butterfly Network (BFLY) and Clipper Distributing LLC announce an agreement to commercialize Butterfly’s award-winning point-of-care ultrasound devices
  • Castle Biosciences (CSTL) announces the publication of two new studies related to its DecisionDx-SCC test, adding to its validated uses for patients with high-risk cutaneous squamous cell carcinoma
  • CGI Group (GIB) selected by Texas Comptroller of Public Accounts to implement enterprise financial system
  • Coca-Cola (KO) in discussions to sell Costa Coffee, according to Reuters
  • Diginex Limited (DGNX) provides update on its MOU between the company and Nomas Global Investments
  • Driven Brands (DRVN) appoints Mo Khalid as Executive Vice President and Chief Operating Officer
  • eBay (EBAY) to make exporting simple for Canada
  • Emera (EMA) announces new CFO Jared Green
  • Equinor (EQNR) and partners have struck oil and gas in the Fram area
  • HIVE Digital Technologies (HIVE) Crosses 16 EH/s as expansion in Paraguay powers forward
  • Honda (HMC): U.S. will investigate 1.4 mln Honda vehicles over engine failure, according to Reuters
  • HUTCHMED (HCM) acting CEO takes leave for health reasons; appoints Johnny Cheng as acting CEO
  • I-Mab (IMAB) announces the appointment of independent directors, Dr. Robert Lenz and Ms. Xin Liu, to its Board of Directors, effective as of August 22, 2025 and reiterated the appointment of independent director Dr. Sean Cao to the Board as of May 28, 2025
  • Infineon (IFNNY) is accelerating the development of humanoid robotics with NVIDIA (NVDA) technology
  • Inflection Point Acquisition Corp. III (IPCX) and A1R WATER have entered into a definitive agreement for a business combination
  • Merck (MRK) demonstrates ongoing commitment to advancing cardiovascular disease management and patient care with new data at the European Society of Cardiology Congress 2025
  • Meta Platforms (META) ticking higher after hours on report its to show smart glasses and wristband next month, according to CNBC
  • Meta (META) agrees to a new partnership with MidJourney Inc., according to Bloomberg
  • Microsoft (MSFT): Musk’s xAI sues Apple and OpenAI, alleges antitrust conspiracy in AI market, according to Reuters
  • Mill City Ventures III (MCVT) announces corporate rebrand to SUI Group Holdings; New ticker symbol 'SUIG' to begin trading on August 26, 2025
  • MPU Cayman (MPU) (Mega Matrix Corp) will focus on stablecoin governance token treasury reserve with Ethena's governance token
  • Napco Security Systems (NSSC) launches to highest levels since January after delivering upside 4Q25 results; Solid growth in recurring service revenue was key catalyst behind better-than-expected performance
  • NeOnc Technologies Holdings (NTHI) announces the closing of its acquisition of an intellectual property portfolio featuring artificial intelligence, 3D bioprinting, and quantum modeling tech
  • Netflix (NFLX): K Pop Demon Hunters was at the top of box office results, according to Bloomberg
  • NIQ (NIQ) and Sally Beauty (SBH) extend and expand strategic agreement
  • Northrim Bank (NRIM) announces Board Chair change; Huston to succeed Schierhorn as Chairman of the Board, effective as of December 31; co also announces 4-for-1 Stock Split effective at the market open on September 23
  • Nvidia (NVDA) preparing a new and more powerful artificial intelligence chip for China, according to NY Times
  • NVIDIA’s (NVDA) Jetson AGX Thor hits general availability, powering next-gen physical AI robots with Blackwell GPUs
  • NVIDIA (NVDA) rolls out DRIVE AGX Thor developer kit to world’s automotive developers
  • ODP Corporation (ODP) forms new OMNIA Partners agreement to provide hospitality products and services
  • ONEOK (OKE), WhiteWater, MPLX LP (MPLX) and Enbridge Inc. (ENB), through the existing Matterhorn joint venture, announce a new natural gas pipeline to transport growing natural gas production from the Permian Basin to the Gulf Coast region
  • OraSure (OSUR) prior bidder considering alternative actions, according to Reuters citing Ron Zwanziger letter
  • Porsche (POAHY) ends battery production at Cellforce unit, according to Reuters
  • Quest Diagnostics (DGX) announces that the U.S. FDA has granted Breakthrough Device Designation for the company's Haystack MRD test for identifying MRD-positive patients with stage II colorectal cancer following curative-intent surgical treatment who may benefit from adjuvant therapy in accordance with therapeutic product labeling
  • Rio Tinto (RIO) reports fatal incident at Simandou project
  • Roche Hldg's (RHHBY) Genentech broke ground on its newest U.S. manufacturing site in Holly Springs, North Carolina
  • Rocket Lab USA (RKLB) announces that it is boosting its U.S. investments to expand semiconductor manufacturing capacity and provide supply chain security for space-grade solar cells and electro-optical sensors for national security space missions
  • RTX (RTX) awarded up to $2.88 bln modification to a previously awarded US Navy contract
  • scPharmaceuticals (SCPH) amended supply agreement with West Pharmaceutical Services
  • Seadrill Ltd (SDRL) announces Sonadrill Holding Ltd, its 50:50 joint venture with an affiliate of Sonangol E.P., has been awarded two contracts, positioning the joint venture for long-term success
  • Shopify (SHOP): DHL expands its international shipping services on Shopify for U.S. Merchants
  • Sionna Therapeutics (SION) announces first subjects dosed in Phase 1 trial evaluating NBD1 Stabilizer, SION-451, in Proprietary Dual Combinations in Development for the Treatment of Cystic Fibrosis
  • Spirit Airlines (FLYY) exploring strategic alternatives, according to WSJ
  • Southwest Air (LUV) announces partnership with Eva Airways
  • Spotify (SPOT) planning price increases and new services, according to FT
  • Starbucks (SBUX) slowing weekly production at coffee plants to lower costs, according to Bloomberg
  • Taiwan Semiconductor Manufacturing (TSM) aims to eliminate use of China chipmaking equipment from plants, according to Nikkei
  • Theravance Biopharma (TBPH) completes enrollment in Phase 3 CYPRESS study of Ampreloxetine
  • TikTok: President Trump is open to extending TikTok ban again, according to NY Times
  • Timken (TKR) Board appointed Lucian Boldea the company's president and CEO and member of the Board, effective Sept. 1, 2025
  • TXNM Energy (TXNM) filed applications for approval of its proposed acquisition by Blackstone Infrastructure (BX) with the New Mexico Public Regulation Commission, Public Utility Commission of Texas and Federal Energy Regulatory Commission
  • Ultrapar Participacoes (UGP) received CADE approval for the construction of an LPG port terminal
  • Union Pacific (UNP) Railroad has added 15 new Focus Sites across eight states to its network, with 12 of those sites located on short line railroads that will provide businesses ease of access to the railroad’s premier 32,000-mile rail network
  • Valneva (VALN) reports FDA suspends license of Chikungunya vaccine in US
  • Walt Disney (DIS): President Trump says ABC and NBC should lose licenses because of "unfair" news coverage
  • Xcel Energy (XEL) discloses Minnesota Electric Rate Case update; MPUC decision is expected in the third quarter of 2026
  • ZIM Integrated Shipping (ZIM) confirms it received a notice from the Turkish Port Authorities related to Israel; currently developing a mitigation plan to reduce the potential adverse effects

• Upgrades:
  • Alignment Healthcare (ALHC) upgraded to Overweight from Sector Weight at KeyBanc, tgt $21
  • Alaska Air (ALK) upgraded to Outperform from Market Perform at Raymond James, tgt $70
  • Dyne Therapeutics (DYN) upgraded to Strong Buy from Outperform at Raymond James, tgt $35
  • Fabrinet (FN) upgraded to Overweight from Neutral at JPMorgan, tgt $345
  • FirstEnergy (FE) upgraded to Overweight from Equal Weight at Barclays, tgt $49
  • Lazard (LAZ) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $65
  • Okta (OKTA) upgraded to Buy from Hold at Truist, tgt $125
  • Olaplex (OLPX) upgraded to Buy from Hold at Canaccord, tgt $2
  • Venture Global (VG) upgraded to Buy from Neutral at UBS, tgt $18
• Downgrades:
  • American Airlines (AAL) downgraded to Market Perform from Outperform at Raymond James
  • American Eagle (AEO) downgraded to Underperform from Neutral at BofA Securities, tgt $10
  • Golar LNG (GLNG) downgraded to Neutral from Buy at B. Riley, tgt $44.50
  • Quest Diagnostics (DGX) downgraded to Neutral from Outperform at Robert W. Baird, tgt $194
  • SentinelOne (S) downgraded to Neutral from Buy at BTIG Research
  • Symbotic (SYM) downgraded to Neutral from Buy at DA Davidson, tgt $47
• Others:
  • Ambiq Micro (AMBQ) initiated with a Neutral at BofA Securities, tgt $42
  • Ambiq Micro (AMBQ) initiated with a Buy at Needham, tgt $48
  • Ambiq Micro (AMBQ) initiated with a Buy at Stifel, tgt $45
  • Ambiq Micro (AMBQ) initiated with a Neutral at UBS, tgt $40
  • Argenx (ARGX) initiated with an Outperform at RBC Capital, tgt $850
  • Crescent Biopharma (CBIO) initiated with a Buy at Jefferies, tgt $26
    
  • Civitas Resources (CIVI) initiated with a Market Perform at William Blair
  • Crescent Energy (CRGY) initiated with an Outperform at William Blair
  • Cue Biopharma (CUE) initiated with a Buy at Lucid Capital, tgt $4
  • Journey Medical (DERM) initiated with a Buy at H.C. Wainwright, tgt $13
  • Devon Energy (DVN) initiated with an Outperform at William Blair
  • Diamondback Energy (FANG) initiated with an Outperform at William Blair
  • Figma (FIG) initiated with a Buy at BofA Securities, tgt $85
  • Figma (FIG) initiated with an Equal Weight at Wells Fargo, tgt $82
  • Figma (FIG) initiated with an Outperform at William Blair
  • Figma (FIG) initiated with a Peer Perform at Wolfe Research
  • Figma (FIG) initiated with a Neutral at JPMorgan, tgt $65
  • Figma (FIG) initiated with a Sector Perform at RBC Capital, tgt $75
  • Figma (FIG) initiated with an Equal Weight at Morgan Stanley, tgt $80
  • Figma (FIG) initiated with a Neutral at Goldman, tgt $48
  • Gates Industrial (GTES) initiated with an Overweight at JPMorgan, tgt $35
  • Magnolia Oil & Gas (MGY) initiated with an Outperform at William Blair
  • Mach Natural Resources (MNR) initiated with an Outperform at William Blair
  • Matador (MTDR) initiated with an Outperform at William Blair
  • NewAmsterdam Pharma (NAMS) initiated with an Overweight at Wells Fargo, tgt $45
  • Northern Oil and Gas (NOG) initiated with an Outperform at William Blair
  • Permian Resources (PR) initiated with an Outperform at William Blair
  • Shoulder Innovations (SI) initiated with a Buy at Jefferies, tgt $19
  • Shoulder Innovations (SI) initiated with a Buy at BTIG Research; tgt $23
  • Shoulder Innovations (SI) initiated with an Overweight at Piper Sandler, tgt $18
  • Shoulder Innovations (SI) initiated with a Buy at Goldman, tgt $20
  • Viper Energy (VNOM) initiated with an Outperform at William Blair

• Econ Data (Tuesday):
  • 08:30 ET: July Durable Orders (Briefing.com consensus -3.5%; prior -9.3%) and Durable Orders ex-transport (Briefing.com consensus 0.1%; prior 0.2%)
  • 09:00 ET: June FHFA Housing Price Index (Briefing.com consensus -0.1%; prior -0.2%) and June S&P Case-Shiller Home Price Index (Briefing.com consensus 2.8%; prior 2.8%)
  • 10:00 ET: August Consumer Confidence (Briefing.com consensus 96.3; prior 97.2)

• Earnings:
  • Monday (Aug 25)
    • Pre-Market: NSSC PDD
    • After-Hours: HEI SMTC
      
    Tuesday (Aug 26)
    • Pre-Market: AMWD BNS BEKE
    • After-Hours: BOX MDB NCNO OKTA PVH
      
  • Wednesday (Aug 27)
    • Pre-Market: ANF DCI SJM KSS MCFT PLAB RY WSM
      
    • After-Hours: A BILL COO CRWD FIVE GEF GES HPQ NTAP NTNX NVDA PSTG SNOW TCOM URBN VEEV
      
  • Thursday (Aug 28)
    • Pre-Market: BBWI BBY BF.B BURL CM DKS DG GCO HRL LI MBUU OLLI TD VSCO
    • After-Hours:  AFRM AMBA ADSK DELL DOMO ESTC GAP MRVL WOOF S ULTA
  • Friday (Aug 29)
    • Pre-Market: BABA FRO
    • After-Hours: None