After Hours Report

The major averages recovered from a broad morning retreat on Thursday, with a sharp reversal in Treasury yields helping stocks regain their footing and strength across technology, semiconductors, and other AI-related names providing additional support. The S&P 500 (+0.2%) finished modestly higher, while the Nasdaq Composite (flat) and DJIA (flat) ended little changed. The recovery was more pronounced across the broader market. The Russell 2000 (+0.5%) and S&P Mid Cap 400 (+1.1%) both rebounded from morning losses and outperformed the major averages, marking a notable improvement in participation as the session progressed.

Stocks opened with modest gains before selling pressure quickly broadened, sending the major averages to their session lows late in the morning. Treasury yields were a significant early headwind, particularly at the long end of the curve, as generally solid economic data pushed longer-dated yields back toward their overnight highs. The tone improved considerably as the session progressed, however, as yields reversed lower across the curve.

The retreat helped stocks recover their morning losses and also encouraged better participation beneath the surface. Fed Vice Chair Phillip Jefferson, a voting FOMC member, provided some additional encouragement for expectations that the Fed will leave rates unchanged at its October meeting. Jefferson said future policy adjustments should be determined by trends in the data, the evolving outlook, and the balance of risks, adding that policymakers will need to come to their own judgment and that doing so "may take more time." The CME FedWatch Tool now assigns a 76.2% probability to the Fed keeping rates steady at the October meeting, up from 62.4% yesterday.

Technology stocks provided another important source of support. The information technology sector (+0.8%) finished among five S&P 500 sectors in positive territory, while the PHLX Semiconductor Index gained 1.6%. Micron (MU 1097.39, +32.28, +3.03%) was a notable contributor to the semiconductor group's strength after reversing an early post-earnings decline and finishing higher. The turnaround followed an initially cautious response to the company's better-than-expected Q4 results and strong Q1 guidance, with enthusiasm surrounding AI-driven memory demand ultimately helping the stock find its footing.

Accenture (ACN 212.73, +29.36, +16.01%) was another standout after beating Q4 expectations, as its results and stronger bookings increased confidence that AI is becoming a growth driver rather than a disruption risk for the company. Synopsys (SNPS 490.54, +55.60, +12.78%) also ranked among the best-performing S&P 500 components following its Investor Day.

Strength across AI-infrastructure names extended beyond the technology sector, helping the industrials sector (+1.0%) finish among the day's leaders.

The utilities sector (+0.6%) also benefited from the reversal lower in Treasury yields, while the financials sector (+0.2%) also finished modestly.

The energy sector (+1.9%) led the standings as crude oil extended its recent advance. WTI crude settled $2.48 higher (+2.7%) at $93.02 per barrel amid continued geopolitical uncertainty.

At the other end of the standings, the communication services sector (-1.2%) and health care sector (-1.3%) were clear laggards. Alphabet (GOOG 334.93, -5.81, -1.71%)) weighed on the communication services sector after reversing an opening gain that followed the unveiling of Gemini 4 Argon. Paramount Skydance (PSKY 9.34, -0.99, -9.58%) also remained under pressure as investors digested news that its merger with Warner Bros. Discovery (WBD 30.95, +0.00, +0.00%) is expected to close on October 6.

Ultimately, the session featured a meaningful improvement from the broad weakness seen during the morning. The reversal lower in Treasury yields relieved some of the pressure that has recently weighed on equities, while continued strength across semiconductors, technology, and AI-infrastructure stocks helped the S&P 500 finish higher. The outperformance of small- and mid-cap stocks also represented a welcome improvement in participation after the narrow leadership that characterized much of September, although pronounced weakness in the communication services and health care sectors kept the S&P 500's advance relatively modest, leaving the major averages firmly lower heading into Friday's session.

U.S. Treasuries had a volatile session, with yields ultimately settling near their lows for the day even though oil prices traded higher. The 2-year note yield settled down 10 basis points to 4.79%, and the 10-year note yield settled down six basis points to 5.24%.

• Nasdaq Composite: +15.6% YTD
• Russell 2000: +13.1% YTD
• S&P 500: +12.0% YTD
• S&P Mid Cap 400: +9.9% YTD
• DJIA: +6.0% YTD

Reviewing today's data:

• For the week ending September 26, initial jobless claims fell by 1,000 to 197,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending September 19 decreased by 11,000 to 1.701 million.
  • The key takeaway from the report remains the same: layoff activity continues to run at low levels that reflect a solid demand environment.
• Sep S&P Global U.S. Manufacturing PMI - Final 55.9 (Briefing.com consensus 55.3; Prior 57.0)
• Construction spending increased 0.9% month-over-month in August (Briefing.com consensus: 0.3%) following a 0.1% decline in July. On a year-over-year basis, construction spending was down 1.7%.
  • The key takeaway from the report was the strength seen in private construction, which included solid increases for both residential and nonresidential spending.
• The ISM Manufacturing Index decreased to 54.5% in September (Briefing.com consensus: 55.2%) from 54.6% in August. The dividing line between expansion and contraction is 50.0%, so the September figure suggests manufacturing activity expanded in September from the prior month but at a slightly slower pace.
  • The key takeaway from the report is that it showed an ongoing expansion in manufacturing activity that was accompanied by a faster acceleration in prices paid, which will continue to foment concerns about pass-through effects for customers.
• 09/26 EIA Natural Gas Inventories +64 bcf (Prior +53 bcf)

Overseas:

• Europe: DAX -0.9%, FTSE -1.7%, CAC -1.6%
• Asia: Nikkei +3.3%, Hang Seng market closed, Shanghai market closed

Commodities:

• Crude Oil +2.48 @ 93.02
• Nat Gas -0.06 @ 2.97
• Gold +26.40 @ 4211.20
• Silver +0.91 @ 61.45
• Copper -0.03 @ 6.58

After-Hours Spotlight:

• FHFA plans to reduce Fannie Mae and Freddie Mac credit-reporting requirement to two bureaus from three, according to Bloomberg...FICO -7.2%, TRU -2.7%, EFX -3.0%
• NIKE beats by $0.04, reports revs in-line; guides FY27 EPS below consensus; FY27 revenue expected to decline high-single digits; reveals Pace operating model transformation...NKE -4.4%
• onsemi (ON) revises Synaptics (SYNA) merger terms to $123/share cash deal valued at about $5.7 bln...ON +6.4%, SYNA +15.9%
• RTX's Raytheon (RTX) wins up to $24.4 bln SM-6 interceptor contract, RTX +0.5%
• Venture Global (VG) signs 20-year LNG supply deal with ConocoPhillips (COP)...VG +3.0%
• Vylor (VYLR) added to the S&P 500; Twilio (TWLO) set to join S&P 500...VYLR +2.5%, TWLO +0.9%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Accenture (ACN) reports Q4 (Aug) results, beats on revs; guides Q1 revs in-line; sees FY27 revenue growth of 3-6%
  • Acuity (AYI) beats by $0.20, beats on revs
  • Arcos Dorados (ARCO) targets mid- to high-single digit revenue growth, plans up to $1.5 bln investment through 2030
  • Cardinal Health (CAH) signs binding LOI to extend CVS Health distribution agreements through June 2032
  • Fresenius (FMS) SE acquires remaining 45% of mAbxience for up to €750 mln, takes full ownership of biosimilars platform
  • Lyft (LYFT) details California settlement to resolve allegations of misclassified drivers April 5, 2016 through December 15, 2020 as independent contractors; reaffirms Q3 guidance
  • Magnolia Oil & Gas (MGY) provides interim financial and operations update after closing the acquisition of WildFire Energy
  • McCormick (MKC) beats by $0.10, beats on revs; reaffirms FY26 EPS guidance, revs guidance; Unilever integration planning remains on track
  • Micron (MU) beats by $1.70, beats on revs, Non-GAAP gross margin of 87.0%; guides Q1 EPS above consensus, revs above consensus
  • Progress Software (PRGS) beats by $0.17, reports revs in-line; guides Q4 EPS below consensus, revs above consensus
  • Synopsys (SNPS) details growth strategy and long-term financial model at Investor Day; guides FY27 EPS and revenue above consensus
  • Vicor (VICR) raises Q3 revenue guidance above consensus
• General News
  • Minneapolis Fed President Neel Kashkari (not a voting FOMC member) gives Q&A at the Council on Foreign Relations
  • American Battery Technology Co. received approval from the U.S. Department of Commerce's Bureau of Industry and Security for the sale of up to $100 million of its recycled black mass material through a license to export
  • China considers targeted fiscal support. Bloomberg
  • Senate confirms Keith Sonderling as Secretary of Labor. Congress is now on recess until after the midterm elections. Washington Post
  • Chinese refiners suspended October fuel exports. Reuters
  • The Trump administration is telling European governments to release diesel from their own strategic reserves or face an export ban. Reuters
  • Technology executives privately questioned Dario Amodei about his warnings about AI dangers. WSJ
  • Overseas visitors to the U.S. are expected to drop by 2 mln this year. Semafor
  • U.S. slowing aircraft part exports to China to gain leverage in trade talks. Reuters
  • Transocean and Valaris (VAL) received notification from the Antitrust Division of the U.S.?Department of Justice that the agency has closed its investigation under the HSR Act
  • President Trump in interview with Time Magazine says he might ramp up the bombing of Iran after the midterms if they can’t reach a deal
  • Aktis (AKTS) starts second Phase 1b trial of AKY-2519 in NSCLC and other B7-H3 tumors
  • Aktis Oncology (AKTS) initiates second phase 1b clinical trial for AKY-2519, a miniprotein radioconjugate targeting B7-H3
  • Albertsons (ACI) names Cody Perdue interim CFO as Sharon McCollam shifts to advisory role
  • American Vanguard (AVD) announced a transition in the CFO role
  • BAE Systems (BAESY) awarded a $230.1 mln modification to previously awarded Navy contract for amphibious combat vehicles
  • BioMarin Pharmaceutical entered into a settlement and license agreement with Ascendis Pharma (ASND) on Sept 24
  • BitGo (BTGO) expands OKX off-exchange settlement integration to institutions outside the U.S.
  • Broadcom (AVGO) aiming to lend Anthropic $42 bln to lease its chips. Reuters
  • BWXT (BWXT) wins $189 mln naval nuclear fuel contract
  • Candel publishes phase 2a NSCLC data for aglatimagene plus valacyclovir showing 24.5-month median OS (MRK)
  • Cars.com (CARS) names Trent Ziegler CFO, succeeding Sonia Jain in November
  • Corvus (CRVS) starts Phase 1b trial of soquelitinib in hidradenitis suppurativa
  • Danaher (DHR) CEO transition takes effect as Julie Sawyer Montgomery assumes top role
  • Danaos (DAC) declares $5.00/share special dividend and increases quarterly dividend to $1.00/share from $0.90/share
  • Domino's (DPZ) CEO profiled. WSJ
  • E.ON AG (EONGY) : UK CMA CMA has cleared the anticipated acquisition by E.ON SE (through E.ON UK Limited) of OVO Energy Ltd.
  • Evommune (EVMN) Phase 2a atopic dermatitis study met primary endpoint for EVO301
  • First Merchants (FRME) CEO Mark Hardwick to retire at end of 2026; President Mike Stewart to succeed in 2027
  • Google (GOOG, GOOGL) employees skeptical of Gemini 4 Argon. Bloomberg (GOOG)
  • Grindr (GRND) to buy HIV-prevention telehealth provider Freddie in $250 mln deal, according to WSJ
  • Guidewire (GWRE) signs multi-year Guidewire Cloud and PolicyCenter deal with top-10 U.S. insurer – 8-K filing
  • Hyster-Yale (HY) deploys hydrogen fuel cell ReachStacker at Rotterdam terminal under EU-backed project
  • Idaho Strategic Resources (IDR) Provides exploration update including high-grade gold intercepts at its producing Golden Chest Mine
  • Kailera (KLRA) presents Phase 1 ribupatide injection-site data at EASD; partner Hengrui adds obesity pipeline updates
  • Kimberly-Clark (KMB) details leadership changes tied to pending Kenvue deal; COO Russ Torres to leave for external CEO role
  • L3Harris (LHX) awarded a $461.9 mln Air Force contract for designated executive airlift aircraft
  • Lilly (LLY) says oral GLP-1 Foundayo met CV safety goal in Phase 3 ACHIEVE-4 diabetes study
  • Meta (META)'s Muse crossed 3 mln weekly users. The Information
  • Monte Rosa (GLUE) reports positive Phase 1 MRT-8102 data, plans Phase 2 studies
  • Monte Rosa (GLUE) to present Phase 1 MRT-8102 data in elevated cardiovascular risk subjects Oct. 1
  • Nektar (NKTR) posts 1-year rezpegaldesleukin durability data in alopecia areata; Phase 3 AD study expands
  • Netflix (NFLX) co-CEO Ted Sarandos says the company is not growing as fast as he would like. Bloomberg
  • Nokia (NOK) partners with ICEYE to develop sovereign LEO satellite communications systems for governments and defense customers
  • Oculis (OCS) partners with National Multiple Sclerosis Society on five-year Campaign to End MS
  • OpenAI agents obscured hacking actions. FT (XLK)
  • Orchestra BioMed tops enrollment target in BACKBEAT pivotal trial with Medtronic (MDT)
  • Ouster (OUST) partners with Seneca on lidar for autonomous wildfire-response drones
  • Paramount Skydance names Mattel (MAT)'s Ynon Kreiz co-CEO of anticipated Paramount-Warner Bros. Discovery combination
  • Pfizer (PFE) says tilrekimig met Phase 2 primary endpoint in atopic dermatitis
  • Plum Acquisition Corp. IV and CTR restructure $245 mln of convertible debt ahead of planned Q4 combination (SPACS)
  • RadNet (RDNT) partners with WIN-NextGen on imaging workforce pipeline program
  • Roche's giredestrant combination (RHHBY) cuts progression risk 44% in Phase III advanced breast cancer trial
  • Rocket Lab (RKLB) lands largest-ever Electron commercial deal with 20-launch Synspective contract
  • RTX (RTX) awarded $511.5 modification to previously awarded Navy contract
  • SAP SE (SAP) awarded a $903 mln Defense Logistics Agency contract for cloud services
  • Shattuck Labs plans Phase 2 HS trial for SL-325; hires clinical development SVP (NVS)
  • Shinhan Financial (SHG) unit Shinhan Bank discloses customer-data cybersecurity incident – 6-K filing
  • South Korea unveils $22.3 bln Texas gas power project to support AI data centers, according to Reuters (EWY)
  • Take-Two signs new long-term Xbox publishing license agreement with Microsoft (MSFT) – 8-K filing
  • Tencent aiming to lease 100,000 chips from Oracle. FT (TCEHY)
  • Tesla (TSLA) registrations rise in Europe during September. Reuters
  • Teva Pharma (TEVA) expands Samsung Bioepis partnership to develop and commercialize up to six biosimilars globally
  • Teva (TEVA) unit TAPI names Serge Rogasik CEO
  • USA Rare Earth (USAR) completes CEO transition; Thras Moraitis takes top role

• Upgrades:
  • BJ's Restaurants (BJRI) upgraded to Outperform from Neutral at Mizuho, tgt $76
  • BP (BP) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $57
  • Consolidated Edison (ED) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $118
  • Dollar Tree (DLTR) upgraded to Buy from Hold at Loop Capital, tgt $140
  • First Hawaiian (FHB) upgraded to Neutral from Underweight at JPMorgan, tgt $29
  • Forbright (FRBT) upgraded to Overweight from Neutral at JPMorgan, tgt $22
  • Hub Group (HUBG) upgraded to Hold from Sell at Stifel, tgt $29
  • Occidental (OXY) upgraded to Buy from Neutral at Goldman, tgt $69
  • Regeneron (REGN) upgraded to Buy from Hold at Argus, tgt $850
  • TC Energy (TRP) upgraded to Buy from Neutral at Goldman, tgt $71
  • United Therapeutics (UTHR) upgraded to Buy from Neutral at BTIG, tgt $728
• Downgrades:
  • Baldwin Group (BWIN) downgraded to Neutral from Overweight at JPMorgan, tgt $32
  • Ethos (LIFE) downgraded to Neutral from Overweight at JPMorgan, tgt $37
  • Exxon Mobil (XOM) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $182
  • Liquidia Technologies (LQDA) downgraded to Neutral from Buy at BTIG
  • Ormat Technologies (ORA) downgraded to Neutral from Buy at UBS, tgt $100
  • Sea Limited (SE) downgraded to Hold from Buy at DBS Bank, tgt $105
  • Sigma Lithium (SGML) downgraded to Market Perform from Outperform at BMO Capital, tgt $10
• Others:
  • Amrize (AMRZ) initiated with an Equal Weight at Barclays, tgt $55
  • Civeo (CVEO) initiated with an Outperform at Northland, tgt $42
  • Civeo (CVEO) initiated with a Buy at Roth Capital, tgt $39
  • D.R. Horton (DHI) initiated with an Equal Weight at Morgan Stanley, tgt $151
  • Digital Turbine (APPS) initiated with an Outperform at RBC Capital, tgt $15
  • Enbridge (ENB) resumed with a Neutral at Goldman, tgt $50
  • Enliven Therapeutics (ELVN) initiated with an Overweight at JPMorgan, tgt $75
  • Freshpet (FRPT) initiated with a Hold at Needham
  • Immunome (IMNM) initiated with a Hold at Stifel, tgt $24
  • KB Home (KBH) initiated with an Underweight at Morgan Stanley, tgt $39
  • Kura Oncology (KURA) initiated with an Overweight at JPMorgan, tgt $30
  • Lennar (LEN) initiated with an Underweight at Morgan Stanley, tgt $65
  • Monte Rosa Therapeutics (GLUE) initiated with a Buy at H.C. Wainwright, tgt $25
  • National Energy Services Reunited (NESR) initiated with an Outperform at BMO Capital, tgt $39
  • NVR (NVR) initiated with an Underweight at Morgan Stanley, tgt, $5,058
  • PulteGroup (PHM) initiated with an Equal Weight at Morgan Stanley, tgt $128
  • Spyre Therapeutics (SYRE) initiated with an Overweight at JPMorgan, tgt $110
  • Teva (TEVA) initiated with a Buy at TD Cowen, tgt $55
  • The Vita Coco Company (COCO) initiated with an Outperform at Oppenheimer, tgt $70
  • Toll Brothers (TOL) initiated with an Overweight at Morgan Stanley, tgt $159
  • Whitehawk Therapeutics (WHWK) initiated with a Buy at Stifel, tgt $9
  • Williams (WMB) reinstated with an Overweight at Barclays, tgt $82

• Econ Data (Friday):
  • 08:30 ET: September Nonfarm Payrolls (Briefing.com consensus: 100K; prior 162K); Nonfarm Private Payrolls (Briefing.com consensus: 100K; prior 127K); Unemployment Rate (Briefing.com consensus: 4.1%; prior 4.1%); Average Hourly Earnings (Briefing.com consensus: 0.3%; prior 0.3%); and Average Workweek (Briefing.com consensus: 34.3; prior 34.4)
  • 10:00 ET: August Factory orders (Briefing.com consensus: 0.0%; prior 0.9%)
  • 10:00 ET: Dallas Fed President Logan (FOMC voter)

• Earnings:
  • Monday (September 28)
    • Pre-Market: None
    • After-Hours: MTN, JEF
  • Tuesday (September 29)
    • Pre-Market: CCL, KMX
    • After-Hours:AIR, CNXC, FDXF
  • Wednesday (September 30)
    • Pre-Market: CAG, CALM, FDS, JBL
    • After-Hours: MU, PRGS
  • Thursday (October 1)
    • Pre-Market: ACN, AYI, MKC
    • After-Hours: NKE
  • Friday (October 2)
    • Pre-market: None
    • Afternoon: None