After Hours Report

The stock market is showing mixed results at midday on Monday, with continued weakness in semiconductor and other technology stocks offsetting gains across most of the broader market. The S&P 500 (-0.1%) is hovering near its unchanged mark, while the Nasdaq Composite (-0.4%) trails and the DJIA (+0.4%) outperforms. The Russell 2000 (-0.2%) and S&P Mid Cap 400 (-0.1%) are also modestly lower.

The divergence is particularly evident in sector performance, with nine S&P 500 sectors trading higher despite the lackluster showing from the major averages. The information technology sector (-0.8%) is the primary drag, weighed down by another sharp decline in semiconductor stocks. The PHLX Semiconductor Index is down 2.2%, extending the weakness seen late last week. NVIDIA (NVDA 226.30, -2.98, -1.30%) is among the notable mega-cap laggards, while memory stocks are facing additional pressure following a CNBC report that China's CXMT plans to begin producing next-generation memory chips, potentially increasing competition with U.S. and South Korean manufacturers. Micron (MU 996.38, -32.62, -3.17%) and Sandisk (SNDK 1487.72, -94.10, -5.95%) are among the weaker performers, while selling has also extended to AI infrastructure names such as Lumentum (LITE 990.61, -112.74, -10.22%) and Ciena (CIEN 406.31, -43.46, -9.66%).

The weakness in technology stocks is not uniform, however. Apple (AAPL 340.20, +3.56, +1.06%) is trading higher, while Meta Platforms (META 747.62, +28.95, +4.03%) and Alphabet (GOOG 350.34, +2.48, +0.71%) are providing substantial support to the communication services sector (+1.5%). Meta is a particular standout following an Abab News report that Mark Zuckerberg hinted at a new "Watermelon" AI model in a recent interview. Wireless carriers are also recovering some of Friday's sharp losses, adding to the sector's strength.

The energy sector (+1.5%) is another leader as crude oil prices climb following an escalation in the conflict between Saudi Arabia and Houthi forces over the weekend. President Trump has indicated that the U.S. could become involved in the conflict, adding to concerns about regional tensions. WTI crude is currently up $1.86 (+2.0%) to $93.71 per barrel, providing support to energy stocks while weighing on other areas of the market.

The consumer discretionary sector (-0.6%) is among those facing pressure from higher oil prices, with Amazon (AMZN 259.56, -2.87, -1.09%) also trading lower following a Wall Street Journal report that the company is discussing a roughly $7 billion acquisition of AI startup Decart. Elsewhere in the sector, Chipotle Mexican Grill (CMG 30.18, -1.42, -4.48%) is declining after CNBC reported that Starbucks (SBUX 92.21, +1.46, +1.61%) is not considering an acquisition of the restaurant chain, contradicting reports last week suggesting a potential deal.

The consumer staples sector (+0.8%) and financials sector (+0.6%) are among the other relative outperformers, with the latter showing strength ahead of a busy week of bank earnings.

Market breadth reflects the uneven nature of today's trading. Advancers hold a slim edge over decliners on the NYSE, while decliners outnumber advancers by roughly 3-to-2 on the Nasdaq, underscoring the continued pressure on technology and growth-oriented stocks.

The broader market has held up reasonably well in the face of both rising crude oil prices and another semiconductor selloff, but weakness in heavily weighted technology names continues to limit the major averages. With Q3 earnings season set to accelerate this week, including reports from several major banks, investors are also looking ahead to corporate results for a clearer picture of earnings growth and the outlook for the broader market.

There is no economic data of note today.

Overseas:

• Europe: DAX +0.7%, FTSE +1.0%, CAC +0.4%
• Asia: Nikkei market closed, Hang Seng +0.3%, Shanghai -0.4%

Commodities:

• Crude Oil +1.85 @ 93.77
• Nat Gas -0.05 @ 3.17
• Gold -25.90 @ 4190.30
• Silver -0.55 @ 60.50
• Copper +0.06 @ 6.76

After-Hours Spotlight:

• Applied Materials (AMAT) opens $5 bln EPIC semiconductor R&D center with Intel, TSMC, Samsung, Micron, SK hynix partners...AMAT +0.1%
• Biomea Fusion (BMEA) to report Phase I BMF-650 data on Oct. 13...BMEA +10.4%
• FormFactor (FORM), Teradyne (TER) enter test-tech collaboration; Teradyne to make $300 mln equity investment...FORM +4.0%
• Kroger (KR) to eliminate roughly 3,000 corporate positions over next three years, according to Bloomberg...KR -0.5%
• Navitas (NVTS) collaborates with NVIDIA on 24 kW 800V-to-12V AI power board...NVTS +5.9%
• Nurix Therapeutics (NRIX) reports third quarter 2026 financial results...NRIX+1.5%
• Syndax (SNDX) says Phase 2 MAXPIRe trial of axatilimab in IPF missed primary endpoint; will stop IPF development...SNDX -16.1%

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

• Earnings/Guidance (Full Earnings Calendar):
  • ASE Technology (ASX) reports September revenue jumps 46% yr/yr; Q3 revenue rises 45%
  • Enovix (ENVX) guides Q3 EPS and revenue above consensus
  • Quantum (QMCO) terminates CFO; expects to meet or exceed SepQ guidance
  • Volkswagen AG (VWAGY) reports U.S. Q3 2026 sales decreased 10.9% YoY compared to Q3 2025
• General News
  • LB Pharmaceuticals presents new preclinical data supporting LB-102’s Bimodal mechanism of action and highlights ongoing late-stage clinical development programs at the 39th ECNP Congress
  • vTv Therapeutics reports oral presentation at Breakthrough T1D Clinical and Research Congress 2026
  • President Trump says "Effective immediately, there is an energy ceasefire in the war between Russia and Ukraine. Both parties have agreed"
  • Welfare benefits are soaring in Britain, which is impacting the country's finances. WSJ
  • President Trump said that Russia and Ukraine have agreed to an "energy ceasefire." Ukrainian President Volodymyr Zelensky says that is "news to me", but if Russia agreed to an energy ceasefire, Ukraine will as well (see 6:13). Axios
  • Houthis fired missiles at an airport in Saudi Arabia, leaving 12 people dead, including one American citizen. President Trump says the U.S. may join Saudi Arabia in the fight against the Houthis. CNN
  • AI firms considering scenarios for a possible political revolt after a catastrophic AI event. Axios
  • DOJ will investigate TV networks (SKYD, CMCSA, DIS, FOXA). CNN
  • Home builders are being forced to increase incentives amid higher competition. WSJ
  • The EU is aiming to limit Chinese hybrid imports at 350,000 per year. Bloomberg
  • Anthropic agents filed out visa applications at State Department. NY Times
  • Ukraine President Volodymyr Zelenskyy says Russia violated the energy ceasefire and attacks will continue, according to Bloomberg
  • AbbVie (ABBV) highlights new SKYRIZI Phase 3 Crohn's data and RINVOQ real-world findings at ACG
  • AI firms (MU) have high demand for computing power (MU, SNDK, WDC, GOOG, GOOGL, MSFT, META). WSJ
  • Amazon (AMZN) in discussions to acquire artificial intelligence startup Decart for $7 bln. WSJ
  • Amazon (AMZN) to change roles at its Alexa unit. Reuters
  • AstraZeneca (AZN)'s efzimfotase alfa misses primary endpoint in Phase III HPP trial; FDA review underway
  • Bausch + Lomb names Bausch Health (BHC) CEO Thomas Appio interim CEO; sees higher FY26 adjusted EBITDA
  • BridgeBio (BBIO) presents Phase 3 CALIBRATE encaleret data in ADH1; doses first RECLAIM-HP patient
  • Bristol Myers (BMY) says Phase 3 ALOFT-IPF trial of admilparant met primary endpoint at 60 mg dose
  • Bristol Myers' Phase 3 ACTION-1 interim analysis for RYZ101 (BMY) meets primary endpoint in GEP-NETs
  • Broadcom (AVGO) CEO Hock Tan believes capital will be the biggest constraint for artificial intelligence development. Reuters
  • CCC Intelligent Solutions (CCC) sharply higher in after-hours trading as GTCR and Elliott near acquisition deal, according to Bloomberg
  • Cirrus Logic (CRUS) made an acquisition offer for Synaptics which led On Semiconductor to revise its offer. Bloomberg
  • Dauch (DCH) names Nathan Iles incoming CFO; Christopher May to become chief administrative officer
  • First Tracks Biotherapeutics (TRAX) says ANB033 Phase 1b gluten-challenge cohort met key endpoints in celiac disease
  • First Tracks Biotherapeutics (TRAX) to announce top-line data from Cohort 1 of Phase 1b Trial of ANB033, a CD122 antagonist, in Celiac Disease on Oct. 12, 2026
  • Goodyear (GT) names former CSX CEO Joe Hinrichs board chairman
  • Harmonic (HLIT) selected by Cablenet for cOS broadband platform deployment in Cyprus
  • Harmony Biosciences (HRMY) names COO Peter Anastasiou CEO effective Jan. 1; reiterates 2026 WAKIX revenue view
  • IonQ aiming to purchase Elisity for $1.3 bln, according to WSJ (RUMRX)
  • Leidos (LDOS) selects X-Bow to supply booster motors for U.S. Army low-cost cruise missile
  • Lineage (LINE) aiming to sell Turvo unit. Axios
  • Merck (MRK) says remigromig met Phase 2b/3 BRUNELLO primary endpoint in DME at one year
  • Microsoft (MSFT) CEO Satya Nadella says companies should create an "emergency brake" system to prevent artificial intelligence models from going rogue. Bloomberg
  • Mirum Pharmaceuticals (MIRM) announces primary endpoint met in phase 3 expand study of LIVMARLI in ultra-rare Cholestatic Liver Diseases
  • Mirum Pharmaceuticals (MIRM) to host investor call to share topline results from the Phase 3 EXPAND Study of LIVMARLI (maralixibat) in Ultra-Rare Cholestatic Liver Diseases
  • Nvidia (NVDA) in talks to increase its investment in Reflection AI. Bloomberg
  • Palisade Bio (PALI) presents new clinical, pharmacokinetic, pharmacodynamic and mechanistic data strengthening the phase 2 rationale for PALI-2108 in Ulcerative Colitis and Crohn’s Disease at ACG 2026
  • Phoenix Education (MS) Partners CFO Blair Westblom to depart; Michael Cochran named interim CFO – 8-K filing
  • Roche Hldg (RHHBY) reports sustained one-year benefit for vamikibart in Phase III UME studies; FDA decision expected by July 2027
  • Solventum (SOLV) seeking buyers for Health Information Systems unit, according to Axios
  • Standard Motor (SMP) announces that its CFO will resign from his position to accept a CFO position at another public company; Board appoints James Burke to serve as the Interim CFO
  • Stellantis (STLA) CEO Antonio Filosa says its Wayve partnership will help cut costs for self-driving cars. Reuters
  • Super Micro (SMCI) will plead guilty to diverting Nvidia chips to China. Reuters
  • Turkey banned social media for kids under 15 (TUR, META, GOOG, GOOGL, PINS, SNAP). Bloomberg (TUR)

• Upgrades:
  • Allison Transmission (ALSN) upgraded to Buy from Neutral at Citi, tgt $135
  • Allstate (ALL) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $236
  • AST SpaceMobile (ASTS) upgraded to Buy from Hold at Deutsche Bank, tgt $93
  • Biogen (BIIB) upgraded to Overweight from Neutral at JPMorgan, tgt $300
  • Blackstone Digital Infrastructure Trust (BXDC) upgraded to Buy from Neutral at Citi, tgt $20
  • Brown & Brown (BRO) upgraded to Outperform from Market Perform at Keefe, Bruyette & Woods, tgt $77
  • C3.ai (AI) upgraded to Outperform from Market Perform at Northland, tgt $16
  • First Solar (FSLR) upgraded to Buy from Hold at Truist, tgt $270
  • Hexcel (HXL) upgraded to Buy from Neutral at Seaport Research, tgt $104
  • Hub Group (HUBG) upgraded to Outperform from Neutral at Baird, tgt $29
  • Humana (HUM) upgraded to Outperform from Market Perform at Raymond James, tgt $520
  • Manhattan Associates (MANH) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $250
  • Mattel (MAT) upgraded to Buy from Neutral at Seaport Research, tgt $20
  • Salesforce (CRM) upgraded to Buy from Underperform at BofA Securities, tgt $285
  • SLM (SLM) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $30
  • T-Mobile (TMUS) upgraded to Outperform from Market Perform at Raymond James, tgt $170
  • Terreno Realty (TRNO) upgraded to Outperform from Market Perform at BMO Capital, tgt $75
  • Tyler Technologies (TYL) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $400
• Downgrades:
  • Adobe (ADBE) downgraded to Underweight from Overweight at Wells Fargo, tgt $225
  • Alexandria Real Estate (ARE) downgraded to Underperform at BMO Capital, tgt $41
  • Ally Financial (ALLY) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $43
  • Baldwin Group (BWIN) downgraded to Market Perform from Outperform at Keefe, Bruyette & Woods, tgt $32.50
  • Enact Holdings (ACT) downgraded to Underweight from Neutral at JPMorgan, tgt $44
  • Fannie Mae (FNMA) downgraded to Neutral from Outperform at Mizuho, tgt $5
  • Freddie Mac (FMCC) downgraded to Neutral from Outperform at Mizuho, tgt $4
  • GoDaddy (GDDY) downgraded to Sector Perform from Outperform at RBC Capital, tgt $95
  • HubSpot (HUBS) downgraded to Equal Weight from Overweight at Barclays, tgt $240
  • Insmed (INSM) downgraded to Peer Perform from Outperform at Wolfe Research
  • Microsoft (MSFT) downgraded to Neutral from Accumulate at Phillip Securities, tgt $515
  • Monday.com (MNDY) downgraded to Equal Weight from Overweight at Barclays, tgt $100
  • Palantir (PLTR) downgraded to Neutral from Buy at Phillip Securities, tgt $215
  • Palo Alto Networks (PANW) downgraded to Neutral at Phillip Securities
  • Roivant Sciences (ROIV) downgraded to Peer Perform from Outperform at Wolfe Research
  • Snowflake (SNOW) downgraded to Accumulate from Buy at Phillip Securities, tgt $423
  • UWM Holdings (UWMC) downgraded to Neutral from Buy at BTIG
• Others:
  • AbCellera Biologics (ABCL) initiated with a Buy at UBS, tgt $18
  • American Bitcoin (ABTC) assumed with a Buy at H.C. Wainwright, tgt $22
  • American Savings Bank (ASBH) initiated with a Buy at DA Davidson, tgt $20
  • American Savings Bank (ASBH) initiated with a Market Perform at Keefe, Bruyette & Woods, tgt $19
  • American Savings Bank (ASBH) initiated with an Overweight at Piper Sandler, tgt $20
  • AxoGen (AXGN) initiated with a Buy at BofA Securities, tgt $52
  • Beta Bionics (BBNX) initiated with a Buy at Jefferies, tgt $30
  • BioAge Labs (BIOA) initiated with a Neutral at UBS, tgt $8
  • Butterfly Network (BFLY) initiated with a Buy at Canaccord, tgt $10
  • Charles Schwab (SCHW) initiated with an In Line at Evercore ISI, tgt $107
  • Connect Biopharma (CNTB) assumed with an Outperform at Leerink, tgt $4
  • Equillium (EQ) assumed with an Outperform at Leerink, tgt $6
  • Evommune (EVMN) initiated with a Neutral at UBS, tgt $8
  • First Financial (THFF) initiated with an Outperform at Hovde Group, tgt $85
  • Hartford Financial Services (HIG) initiated with a Hold at Truist, tgt $137
  • IDEXX Laboratories (IDXX) initiated with a Sector Weight at KeyBanc
  • Interactive Brokers (IBKR) initiated with an Outperform at Evercore ISI, tgt $100
  • Kardigan (KARD) initiated with a Buy at UBS, tgt $25
  • Mineralys Therapeutics (MLYS) initiated with a Neutral at UBS, tgt $29
  • MiniMed (MMED) initiated with a Hold at Jefferies, tgt $22
  • Nektar Therapeutics (NKTR) initiated with an Outperform at Leerink, tgt $130
  • Nektar Therapeutics (NKTR) initiated with a Neutral at UBS, tgt $53
  • Ocular Therapeutix (OCUL) initiated with a Buy at UBS, tgt $14
  • Odyssey Therapeutics (ODTX) initiated with a Buy at UBS, tgt $27
  • Prenetics (PRE) initiated with a Buy at Lucid Capital Markets, tgt $54
  • Protagonist Therapeutics (PTGX) initiated with a Buy at UBS, tgt $184
  • Q32 Bio (QTTB) initiated with an Outperform at Leerink, tgt $40
  • Quoin Pharmaceuticals (QNRX) initiated with a Buy at BTIG, tgt $14
  • Robinhood (HOOD) initiated with an Outperform at Evercore ISI, tgt $130
  • Shattuck Labs (STTK) initiated with a Buy at UBS, tgt $17
  • Spyre Therapeutics (SYRE) initiated with a Buy at UBS, tgt $120
  • Tectonic Therapeutics (TECX) initiated with a Neutral at UBS, tgt $26
  • TeraWulf (WULF) initiated with a Buy at TD Cowen, tgt $21
  • Vera Therapeutics (VERA) initiated with a Market Perform at Leerink, tgt $34
  • Vylor (VYLR) initiated with a Buy at UBS, tgt $89

• Econ Data (Tuesday):
  • 06:00 ET: NFIB Small Business Optimism (Briefing.com consensus 98.0; prior 98.7)
  • 10:00 ET: Existing Home Sales (Briefing.com consensus 3.96M; prior 3.98M)
  • 14:00 ET: Treasury Budget (Briefing.com consensus NA; prior -$166.8B)

• Earnings:
  • Monday (October 12)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (October 13)
    • Pre-Market: ACI, C, DPZ, GS, JNJ, JPM, UNH, WFC
    • After-Hours: AZZ
  • Wednesday (October 14)
    • Pre-Market: ASML, BAC, BLK, FAST, MS, PGR, STT
    • After-Hours: HOMB
  • Thursday (October 15)
    • Pre-Market: BNY, CMC, ERIC, FHN, MAN, MRSH, PLD, PNC, SCHW, USB
    • After-Hours: AA, CNS, IBKR, JBHT, SFNC
  • Friday (October 16)
    • Pre-market: CFG, MTB, RF, TFC, TRV
    • Afternoon: None