After Hours Report

The major averages finished Tuesday's session with modest changes, recovering from more pronounced intraday weakness as a late improvement in semiconductor stocks helped stabilize the broader market. The S&P 500 (flat) ended near its unchanged level, while the Nasdaq Composite (-0.2%) and DJIA (-0.4%) registered small losses. The relatively quiet finish masked another session of uneven performance across individual stocks and sectors.

Semiconductor stocks were a central influence on today's trading, initially extending yesterday's decline amid concerns about increased competition from Chinese memory chipmakers. The PHLX Semiconductor Index (-0.2%) fell as much as 3.1% shortly after the open, reflecting pressure that also contributed to a 5.5% overnight decline in South Korea's Kospi. Memory names such as Micron (MU 953.19, -35.85, -3.62%) remained under pressure, but selling across the broader semiconductor group eased considerably as the session progressed. The recovery helped the information technology sector (+0.1%) finish with a slim gain after spending much of the morning in negative territory.

The improvement in semiconductor stocks also helped the Nasdaq Composite recover much of its earlier decline, although the index ultimately finished slightly lower. Five S&P 500 sectors closed higher, led by the energy sector (+1.8%), which continued its recent stretch of outperformance despite relatively little movement in crude oil prices. Refiners were particularly strong, with Marathon Petroleum (MPC 476.98, +18.17, +3.96%) and Valero Energy (VLO 456.46, +20.46, +4.69%) reaching fresh record highs. WTI crude settled $0.29 higher (+0.3%) at $94.06 per barrel.

The communication services sector (+0.9%) was another standout, benefiting from continued strength in Meta Platforms (META 762.50, +19.54, +2.63%).

On the other side of the sector standings, the health care sector (-1.3%) finished with the largest decline, weighed down by Johnson & Johnson (JNJ 248.61, -15.12, -5.73%) following its Q3 earnings report. Disappointing MedTech growth and a modest increase to full-year guidance overshadowed stronger pharmaceutical sales, leaving JNJ among the weakest DJIA components.

The industrials sector (-0.3%) also staged a notable recovery from its earlier losses, moving higher alongside semiconductor stocks after falling more than 1.0% around midday. However, Caterpillar (CAT 772.78, -26.59, -3.33%) remained a significant drag on the price-weighted DJIA as its recent retreat continued.

Meanwhile, the financials sector (-0.4%) finished modestly lower following mixed reactions to earnings from several major banks. Goldman Sachs (GS 891.91, -2.04, -0.23%) and JPMorgan Chase (JPM 331.43, -2.87, -0.86%) ceded earlier gains, while Citigroup (C 124.53, -7.39, -5.60%) and b80.74, -2.58, -3.10%) faced more pronounced pressure. Bank earnings remain in focus tomorrow, with Bank of America (BAC 53.96, -0.62, -1.14%) and Morgan Stanley (MS 186.66, -3.36, -1.77%) scheduled to report before the open.

Elsewhere, the Russell 2000 (-0.4%) continued to trail the S&P 500, while the S&P Mid Cap 400 (+0.1%) managed a slight gain.

On the geopolitical front, Axios reported that Israeli Prime Minister Benjamin Netanyahu and President Trump discussed the possibility of renewed strikes against Iran before the midterm elections. Trump reportedly indicated that he would not authorize additional strikes before the elections, although the Pentagon remains prepared should that position change.

Ultimately, the afternoon recovery in semiconductors and other technology-related stocks prevented the earlier selling from producing a more substantial decline in the major averages. Nevertheless, the uneven sector performance and continued weakness in select heavyweight stocks left the broader market with little directional momentum by the close.

U.S. Treasuries had a mostly higher start to the holiday-shortened week, but the front end finished flat after reversing from a higher start while longer tenors held onto a portion of their starting gains. The 2-year note yield finished unchanged at 4.79%, and the 10-year note yield settled down two basis points to 5.22%. 

• Nasdaq Composite: +17.1% YTD
• S&P 500: +14.0% YTD
• Russell 2000: +12.2% YTD
• S&P Mid Cap 400: +10.7% YTD
• DJIA: +7.5% YTD

Reviewing today's data: 

• Sep NFIB Small Business Optimism 97.9 (Briefing.com consensus 98.0; Prior 98.7)
• Existing home sales increased 1.5% month-over-month in September to a seasonally adjusted annual rate of 3.99 million (Briefing.com consensus 3.96 million) from a downwardly revised 3.93 million (from 3.98 million) in August. Sales were down 2.2% on a year-over-year basis.
  
  • The key takeaway from the report is that year-over-year sales were down in all four regions, reflecting persistent headwinds from high mortgage rates. As a result, August and September have been the slowest two months for home sales so far in 2026.

Overseas:

• Europe: DAX -0.1%, FTSE -0.1%, CAC -0.1%
• Asia: Nikkei -1.8%, Hang Seng +0.3%, Shanghai +0.1%

Commodities:

• Crude Oil +0.29 @ 94.06
• Nat Gas +0.11 @ 3.28
• Gold -13.70 @ 4176.60
• Silver -0.99 @ 59.51
• Copper -0.02 @ 6.73

After-Hours Spotlight:

• AT&T (T) to sell AT&T Mexico to Grupo Televisa (TV) and Fintech Holdings for $2 bln cash at close...T +0.2%
• AZZ (AZZ) beats by $0.14, beats on revs...AZZ +2.6%
• Bank of America (BAC) hit with $1.2 bln in penalties over failures to report suspicious transactions, according to FT...BAC -2.6%
• GameStop (GME): CEO Ryan Cohen bought 844,130 shares at $26.75 - $27.00 worth ~$22.77 mln...GME +2.9%
• Generate Biomedicines (GENB), Zealand Pharma sign metabolic disease AI drug collaboration...GENB +4.4%
• Mission Produce (AVO): Director bought 52,022 shares at $11.22 - $11.59 worth ~$595k...AVO +2.7%
• Strive (ASST) proposes IPO of 5M shares of 15% Series A perpetual SATS preferred stock...ASST +1.5%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Albertsons (ACI) beats by $0.03, beats on revs; provides Q4 (Dec) and FY26 guidance
  • BP (BP) issues third quarter 2026 trading statement
  • Citigroup (C) beats by $0.20, reports revs in-line; issues FY26 guidance, including NII ex-markets growth up mid-to-high 6% range
  • Domino's Pizza (DPZ) beats by $0.24, beats on revs
  • Equinox Gold (EQX) reports Q3 production results
  • FB Financial (FBK) Corporation reports third quarter 2026 financial results
  • Goldman Sachs (GS) beats by $4.15, beats on revs
  • Gutter Supply accelerates B2B growth with BigCommerce and Feedonomics, replacing 20-year legacy platform with modern commerce engine (CMRC)
  • InMode (INMD) sees Q3 revs above consensus
  • Johnson & Johnson (JNJ) beats by $0.07, reports revs in-line; raises outlook
  • JPMorgan Chase (JPM) misses by $0.18, misses on revs
  • Mesa Laboratories (MLAB) announces restructuring and savings plan to reduce annualized costs by approximately $9.3 million and reinvest approximately $4.3 million in profitable growth
  • MGM Resorts (MGM)'s BetMGM provides Q3 business update
  • Nurix Therapeutics (NRIX) reports third quarter 2026 financial results
  • UnitedHealth (UNH) beats by $0.55, beats on revs; raises FY26 EPS above consensus
  • Wells Fargo (WFC) beats by $0.02, misses on revs; maintains FY26 net interest income and expense outlook
• General News
  • Aon, EBRD expand Ukraine war risk insurance facility to €150M
  • Iran is fortifying its defenses as it prepares for a return to war. WSJ
  • CXMT declared a breakthrough in memory technology that puts it ahead of Samsung and Sk Hynix. Bloomberg
  • VERAXA Biotech Presents in vivo Proof-of-Concept Data for BiTAC-ADC Technology at World ADC Congress
  • Fed Governor Chris Waller (voting FOMC member) says that increasing bond yields are a result of growth, not inflation expectations, according to Reuters
  • Abacus Global (ABX) partners with Retirable, to integrate LifeARC longevity modeling into retirement platform
  • Alibaba (BABA) aiming to introduce new smart glasses. Bloomberg
  • Anthropic believes AI models could access home devices (AMZN, SONO). CNBC (AMZN)
  • Applied Materials (AMAT) CEO Gary Dickerson in an interview, says he expects the company to double revenue over the next five years. Bloomberg
  • Bakkt (BKKT) selects Thredd for planned stablecoin-settled credit card program
  • Beam Therapeutics (BEAM) to present initial Phase 1/2 BEAM-301 data in GSDIa; release says proof of concept achieved
  • Biomea Fusion (BMEA) to report Phase I BMF-650 data on Oct. 13
  • BioNTech (BNTX) provides update on phase 2/3 clinical trial for mRNA cancer immunotherapy candidate BNT113 in metastatic hpv16-positive head and neck cancer
  • Brightstar Lottery (BRSL) wins exclusive five-year Pan Am lottery licensing deal
  • Charles River (CRL) partners with Magellan Stem Cells on testing for stem cell therapy programs
  • Chinese companies purchased 1 million Nvidia (NVDA) gaming chips this year. FT
  • CME (CME) Group corn futures volume hits record 1.21 mln contracts following USDA report
  • DXC (DXC) partners with LangChain to expand agentic AI for mission-critical IT operations
  • Equinor (EQNR) signs five-year gas supply agreement with Eneco for approximately 0.9 bcm annually
  • Fastly (FSLY) expands Jio Platforms partnership to boost JioCDN in India
  • Federated Hermes (FHI) partners with Prometheum on tokenized securities funds, targets first product in Q1 2027
  • Global semiconductor stocks fall after Broadcom (AVGO) CEO Hock Tan says the AI trade has gambling-like characteristics (INTC, AMD, SMH, SSNLF, ARM, TSM, NVDA, SKHY). FT
  • Intercontinental Exchange (ICE) reports Brent options volume hits record 28 mln contracts in Q3, ADV rises 63% YTD
  • IQVIA (IQV) expands Veeva partnership, adopts Veeva clinical operations apps as enterprise standard
  • J&J (AMGN) : TREMFYA shows sustained 3-year remission in Phase 3 Crohn's studies
  • J&J (JNJ) : TREMFYA Phase 3 subgroup data show consistent fistula remission in Crohn's disease
  • Johnson & Johnson (JNJ) CFO Joe Wolk on CNBC confirms the company is considering spinning off its hips and knee unit
  • Kroger (KR) to eliminate roughly 3,000 corporate positions over next three years, according to Bloomberg
  • Leonardo DRS (DRS) receives $63 mln U.S. Army production order for FWS-I thermal weapon sights
  • Merck (MRK) to present first Phase 3 INTerpath-001, TroFuse-005 and KEYNOTE-C93 oncology data at ESMO 2026
  • Meta (META) CEO Mark Zuckerberg says his company has reached the "frontier" of artificial intelligence. FT
  • Mueller Water (MWA) Products names Michael Morgan CFO, effective after annual report filing
  • Natera (NTRA), TransCode Therapeutics partner on Phase 2a colorectal cancer trial
  • Ollie (OLLI)'s Bargain Outlet authorizes additional $500 mln share repurchase
  • QuickLogic (QUIK) wins six-figure eFPGA IP contract for 16nm automotive/industrial SoC
  • RTX (RTX) Raytheon wins $729 mln counter-drone contracts from U.S. Army, Qatar and Jordan
  • Seadrill (SDRL) wins Indonesia rig award, extends work in Malaysia and Angola
  • Syndax (INCY) says Phase 2 MAXPIRe trial of axatilimab in IPF missed primary endpoint; will stop IPF development
  • Tilray (TLRY) Medical wins INFARMED approval for in-house quality testing at Portugal facility
  • Tower Semi and Semtech (SMTC) expand SiGe partnership to scale power-efficient analog connectivity for data centers
  • VIAVI (VIAV) selected by U.S. Army office for range modernization initiative
  • Visa (V) gets PBOC approval to begin preparations for domestic bankcard clearing business in China

• Upgrades:
  • American Electric Power (AEP) upgraded to Overweight from Sector Weight at KeyBanc, tgt $133
  • BCE (BCE) upgraded to Buy from Hold at Canaccord
  • Exelon (EXC) upgraded to Sector Weight from Underweight at KeyBanc
  • Galaxy Digital (GLXY) upgraded to Buy from Neutral at Citi, tgt $28
  • Gemini (GEMI) upgraded to Neutral from Sell at Citi, tgt $4.75
  • NatWest (NWG) upgraded to Overweight from Equal Weight at Barclays
  • Prologis (PLD) upgraded to Outperform from Sector Perform at Scotiabank, tgt $150
  • Rexford Industrial (REXR) upgraded to Outperform from Neutral at Mizuho, tgt $41
  • VF Corp. (VFC) upgraded to Overweight from Neutral at Piper Sandler, tgt $20
  • VF Corp. (VFC) upgraded to Buy from Hold at Truist, tgt $20
  • Viking Holdings (VIK) upgraded to Overweight from Equal Weight at Barclays, tgt $102
• Downgrades:
  • Adobe (ADBE) downgraded to Hold from Buy at HSBC, tgt $267
  • Allient (ALNT) downgraded to Neutral from Overweight at JPMorgan, tgt $120
  • Arch Capital (ACGL) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $100
  • Aritzia (ATZAF) downgraded to Hold from Buy at Jefferies
  • AST SpaceMobile (ASTS) downgraded to Neutral from Overweight at Piper Sandler, tgt $54
  • AT&T (T) downgraded to Market Perform from Outperform at Bernstein, tgt $24
  • Cardinal Energy (CRLFF) downgraded to Sector Perform from Outperform at RBC Capital
  • Chemours (CC) downgraded to Sector Perform from Outperform at RBC Capital, tgt $14
  • Ero Copper (ERO) downgraded to Sector Perform from Outperform at Scotiabank
  • Foghorn Therapeutics (FHTX) downgraded to In Line from Outperform at Evercore ISI, tgt $3
  • Lantheus (LNTH) downgraded to Neutral from Outperform at Mizuho, tgt $109
  • NeuroSense Therapeutics (NRSN) downgraded to Neutral from Buy at Roth Capital, tgt $3.50
  • Pershing Square Inc. (PS) downgraded to Underperform from Neutral at BofA Securities, tgt $38
  • RTX (RTX) downgraded to Hold from Buy at Deutsche Bank, tgt $208
  • Securitize (SECZ) downgraded to Neutral from Buy at Citi, tgt $14
• Others:
  • Air Global (AIIR) initiated with an Overweight at Cantor Fitzgerald, tgt $11.03
  • Air Products (APD) initiated with an Overweight at Barclays, tgt $353
  • Albemarle (ALB) initiated with an Equal Weight at Barclays, tgt $109
  • Amer Sports (AS) initiated with a Buy at Jefferies, tgt $42
  • American Healthcare REIT (AHR) initiated with a Strong Buy at Raymond James, tgt $62
  • American Outdoor Brands (AOUT) initiated with a Buy at Ladenburg Thalmann, tgt $22
  • Ascentage Pharma (AAPG) initiated with an Outperform at Citizens, tgt $35
  • Avient (AVNT) initiated with an Equal Weight at Barclays, tgt $44
  • Axalta Coating (AXTA) initiated with an Overweight at Barclays, tgt $45
  • Celanese (CE) initiated with an Equal Weight at Barclays, tgt $49
  • Chemours (CC) initiated with an Equal Weight at Barclays, tgt $16
  • Compass Diversified (CODI) initiated with a Buy at Ladenburg Thalmann, tgt $17
  • Dow Inc. (DOW) initiated with an Underweight at Barclays, tgt $30
  • DuPont (DD) initiated with an Overweight at Barclays, tgt $156
  • Eastman Chemical (EMN) initiated with an Equal Weight at Barclays, tgt $72
  • Electra Therapeutics (ETRA) initiated with an Overweight at Cantor Fitzgerald
  • Electra Therapeutics (ETRA) initiated with an Outperform at Evercore ISI, tgt $36
  • Electra Therapeutics (ETRA) initiated with a Buy at Jefferies, tgt $32
  • Electra Therapeutics (ETRA) initiated with a Buy at TD Cowen
  • Element Solutions (ESI) initiated with an Overweight at Barclays, tgt $53
  • Entegris (ENTG) initiated with an Overweight at Barclays, tgt $212
  • Escalade (ESCA) initiated with a Neutral at Ladenburg Thalmann
  • Globant (GLOB) assumed with an Equal Weight at Wells Fargo, tgt $39
  • Gossamer Bio (GOSS) initiated with a Buy at Chardan, tgt $160
  • Huntsman (HUN) initiated with an Equal Weight at Barclays, tgt $10
  • Inhibikase Therapeutics (IKT) initiated with a Neutral at Chardan, tgt $1.50
  • Linde (LIN) initiated with an Overweight at Barclays, tgt $577
  • LyondellBasell (LYB) initiated with an Equal Weight at Barclays, tgt $66
  • MiniMed (MMED) initiated with a Buy at Rothschild & Co Redburn, tgt $30
  • MSC Industrial (MSM) initiated with an Overweight at Barclays, tgt $152
  • National Healthcare Properties (NHP) initiated with an Outperform at Raymond James, tgt $20
  • Olin (OLN) initiated with an Equal Weight at Barclays, tgt $18
  • Orion180 Insurance (OIG) initiated with an Outperform at Citizens, tgt $20
  • Orion180 Insurance (OIG) initiated with a Buy at Goldman Sachs, tgt $13
  • Orion180 Insurance (OIG) initiated with a Market Perform at Raymond James
  • Orion180 Insurance (OIG) initiated with an Outperform at RBC Capital, tgt $15
  • Orion180 Insurance (OIG) initiated with a Buy at UBS, tgt $14
  • PPG Industries (PPG) initiated with an Overweight at Barclays, tgt $136
  • Qnity Electronics (Q) initiated with an Overweight at Barclays, tgt $211
  • RPM International (RPM) initiated with an Equal Weight at Barclays, tgt $107
  • Sherwin-Williams (SHW) initiated with an Equal Weight at Barclays, tgt $348
  • SoFi Technologies (SOFI) initiated with a Buy at StoneX, tgt $25
  • Solstice Advanced Materials (SOLS) initiated with an Overweight at Barclays, tgt $73
  • TechnipFMC (FTI) initiated with a Buy at UBS, tgt $89
  • Westlake (WLK) initiated with an Underweight at Barclays, tgt $66
  • Wintrust Financial (WTFC) initiated with a Buy at Deutsche Bank, tgt $175
  • Yeti (YETI) initiated with a Buy at Ladenburg Thalmann, tgt $52

• Econ Data (Wednesday):
  • 7:00 ET: Wednesday: Weekly MBA Mortgage Index (prior -4.2%)
  • 8:30 ET: September CPI (Briefing.com consensus 0.6%; prior 0.4%) and Core CPI (Briefing.com consensus 0.2%; prior 0.3%)
  • 14:00 ET: October Beige Book

• 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