After Hours Report

Updated: 20-Oct-26 17:13 ET
SpaceX Q3 beat fueled by SI growth; Netflix down sharply after earnings

The major averages finished Tuesday's session with mixed results, but the relatively subdued performance of the S&P 500 (+0.3%) and Nasdaq Composite (flat) masked a considerably stronger showing across the broader market. The DJIA (+1.0%) outperformed, while the Russell 2000 (+1.7%) and S&P Mid Cap 400 (+1.0%) posted sizable gains as buying interest shifted away from the mega-cap stocks that led yesterday's rebound.

That rotation was particularly evident in the S&P 500 Equal Weighted Index (+1.2%), which substantially outperformed its market-cap-weighted counterpart after finishing lower yesterday. The Vanguard Mega Cap Growth ETF (-0.2%), meanwhile, ended modestly lower as investors remained cautious toward technology and AI-related stocks ahead of several closely watched earnings reports.

The session began with pronounced selling pressure in semiconductor stocks, with the PHLX Semiconductor Index (-0.3%) falling nearly 2% shortly after the opening bell and briefly erasing the entirety of yesterday's advance. Bargain hunting subsequently lifted the index into positive territory, helping the major averages recover from their mixed opening and reach session highs during the morning. However, the rebound in semiconductor stocks proved difficult to sustain, and renewed selling pressure during the afternoon left the information technology sector (-0.3%) modestly lower at the close. Despite giving back some of its intraday gains, the S&P 500 managed to finish above its 50-day moving average (7,704).

Weakness among several influential mega-cap names also weighed on the Nasdaq Composite. The communication services sector (-0.9%) finished at the bottom of the S&P 500 standings, pressured by losses in Meta Platforms (META 694.25, -11.19, -1.59%) and Alphabet (GOOG 336.40, -3.76, -1.11%). Netflix (NFLX 68.66, -1.19, -1.70%), which spent much of the morning near its flat line, also retreated ahead of its earnings report after the close.

Despite the continued hesitation surrounding technology stocks, the broader market benefited from a sharp reversal in crude oil prices and some relief in Treasury yields. WTI crude briefly climbed above $110 per barrel early in the session before retreating sharply following unconfirmed reports from Israeli media that a compromise proposal aimed at easing tensions between the U.S. and Iran had received preliminary approval from both sides. Subsequent comments attributed to an unnamed official disputing reports that an agreement was close prompted some recovery in oil prices, although WTI ultimately settled $2.15 lower (-2.1%) at $101.09 per barrel. The energy sector (+0.2%) finished with a modest gain following choppy trading.

The retreat in oil prices and easing rate pressures helped support gains across several areas of the market that have struggled recently. The Russell 2000's outperformance was particularly notable following a six-week losing streak that saw the small-cap benchmark fall as much as 11.5% from its mid-August high amid elevated interest rates and concerns about additional Fed tightening. Regional bank stocks contributed to today's rebound, while the financials sector (+1.1%) was among the stronger performers.

Nine of the 11 S&P 500 sectors finished higher, highlighting the broad participation that helped offset weakness among several influential mega-cap stocks. The health care sector (+2.3%) led the advance by a considerable margin, supported by substantial buying interest in pharmaceutical and biotechnology stocks. The iShares Nasdaq Biotechnology ETF gained 3.2%, while Eli Lilly (LLY 1285.15, +44.81, +3.61%) and Biogen (BIIB 243.10, +9.62, +4.12%) were among the notable standouts after reaching fresh 52-week highs, including a new all-time high for Eli Lilly.

The real estate sector (+1.7%) also benefited from some easing in Treasury yields, while the utilities sector (+1.2%) and consumer discretionary sector (+0.7%) recorded solid gains. The strength across these groups helped offset weakness in the market's largest technology-related components, reinforcing the distinction between the major averages' relatively modest headline performance and the more constructive action beneath the surface.

On the earnings front, Northrop Grumman (NOC 534.15, +23.50, +4.60%), Hasbro (HAS 109.52, +11.03, +11.20%), Equifax (EFX 176.50, +17.93, +11.31%), and 3M (MMM 171.43, +9.42, +5.81%) were among the S&P 500's strongest performers following favorable quarterly results, while GE Aerospace (GE 299.92, -11.36, -3.65%) and General Motors (GM 77.10, -5.65, -6.83%) suffered sharp declines despite exceeding earnings expectations.

Looking ahead, Netflix and SpaceX (SPCX 147.79, -0.17, -0.11%) are scheduled to report after today's close, while Wednesday brings results from Meta Platforms and Tesla (TSLA 373.71, +5.65, +1.54%), marking what many consider the true beginning of the third-quarter earnings season.

Today's session offered an encouraging indication that buying interest remains intact despite the recent volatility in technology stocks. The outperformance of small- and mid-cap stocks, along with the sizable advance in the equal-weight S&P 500 and gains in nine sectors, suggests that investors remain willing to pursue opportunities outside the mega-cap growth trade. That rotation is consistent with an underlying bullish market environment, although the relatively cautious trading in technology stocks also reflects a wait-and-see approach ahead of major earnings reports. With expectations for the largest companies already elevated, investors will be looking for results and guidance strong enough to justify increasingly demanding growth assumptions.

U.S. Treasuries had a mixed showing on Tuesday with longer tenors defending their gains throughout the day while the front end finished modestly lower. The 2-year note yield settled up three basis points to 4.79%, and the 10-year note yield settled down two basis points to 5.12%. 

  • Nasdaq Composite: +13.7% YTD
  • S&P 500: +12.7% YTD
  • Russell 2000: +11.8% YTD
  • S&P Mid Cap 400: +10.5% YTD
  • DJIA: +9.2% YTD

Reviewing today's data:

  • Total housing starts were down 5.2% month-over-month in September to a seasonally adjusted annual rate of 1.221 million (Briefing.com consensus: 1.305 million) following an upwardly revised 1.288 million (from 1.275 million) in August. Building permits were down 0.2% month-over-month to a seasonally adjusted annual rate of 1.400 million (Briefing.com consensus: 1.390 million).
    • The key takeaway from the report is that there was no growth in permits for single-unit dwellings in any region. Building permits are a leading indicator, and the lack of growth is a reflection of the constraints builders and homebuyers alike face from higher financing costs.
  • Sep Building Permits 1400K (Briefing.com consensus 1390K; Prior 1403K revised from 1394K)
  • Sep Pending Home Sales -7.3% (Briefing.com consensus 0.1%; Prior 0.3%)

Overseas:

  • Europe: DAX -0.1%, FTSE -0.3%, CAC -0.4%
  • Asia: Nikkei -1.3%, Hang Seng -1.3%, Shanghai +0.1%

Commodities:

  • Crude Oil -2.15 @ 101.09
  • Nat Gas -0.10 @ 2.96
  • Gold -17.80 @ 4123.30
  • Silver +0.70 @ 57.98
  • Copper +0.02 @ 6.60

After-Hours Spotlight:

  • Capital One (COF) beats by $1.19, reports revs in-line...COF +4.6%
  • Chubb (CB) beats by $0.87, P&C net premiums written up 1.9%...CB -0.8%
  • Duos (DUOT) signs 10-year 20 MW colocation deal, pursues about 100 MW of additional land...DUOT +2.8%
  • Intuitive Surgical (ISRG) beats by $0.35, beats on revs, worldwide procedures grew approximately 15%; Provides 2026 Outlook, sees worldwide da Vinci procedure growth of approximately 14-15%...ISRG -7.1%
  • Netflix (NFLX) beats by $0.05, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY26 revs below consensus...NFLX -5.8%
  • Pegasystems (PEGA) misses by $0.10, misses on revs...PEGA -4.2%
  • SpaceX (SPCX) beats by $0.22, beats on revs...SPCX +5.4%
  • Stride (LRN) beats by $0.30, beats on revs; guides Q2 revs in-line with consensus; guides FY27 revs in-line with consensus...LRN -1.8%
  • Super Micro Computer (SMCI) guides Q1 revenue above consensus...SMCI +12.6%, DELL +5.9%, HPE +4.3% 
  • United Airlines (UAL) misses by $0.03, reports revs in-line; guides Q4 EPS below consensus, expects unit revenue growth to accelerate versus Q3...UAL -1.8%
Today's News Summary:

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

  • Earnings/Guidance (Full Earnings Calendar):
    • 3M (MMM) beats by $0.12, reports revs in-line; raises FY26 EPS above consensus, revs in-line
    • ABB Ltd (ABBNY) reports Q3 orders rise 40% yr/yr to $12.1 bln; operational EBITA increases 24%
    • Ally Financial (ALLY) beats by $0.01, reports revs in-line
    • Atlantic Union Bankshares (AUB) reports EPS in-line, misses on revs
    • BOK Financial (BOKF) beats by $0.12, misses on revs
    • Commerce Bancshares (CBSH) beats by $0.01, average loan balances increased 0.8%
    • Crown (CCK) beats by $0.13, beats on revs; guides FY26 EPS in-line with consensus
    • Equifax (EFX) beats by $0.06, reports revs in-line; guides Q4 EPS in-line, revs in-line
    • F.N.B. (FNB) Corp reports EPS in-line, average loans and leases increased 3.7%
    • Freightcar America (RAIL) guides Q3 revenue below consensus, lowers FY26 guidance; Elects to remove 1,285 railcars related to its tank car retrofit order from its backlog
    • GE Aerospace (GE) beats by $0.24, beats on revs; raises FY26 EPS above consensus
    • General Motors (GM) beats by $0.01, beats on revs; narrows FY26 EPS and adjusted EBIT guidance; Board of Directors has approved a new $20.0 billion multi-year share repurchase authorization
    • Genuine Parts (GPC) beats by $0.03, reports revs in-line; narrows FY26 EPS in-line, reaffirms FY26 revs guidance
    • Grupo Aeroportuario del Pacifico (PAC) Q3 EBITDA rises 19% yr/yr; operating income increases 22%
    • Halliburton (HAL) beats by $0.02, beats on revs
    • Hasbro (HAS) beats by $1.04, beats on revs; raises outlook; Doubles share repurchase target
    • Iridium Communications (IRDM) reports Q3 results
    • KeyCorp (KEY) beats by $0.05, reports revs in-line
    • Kroger (KR) outlines plan to build America's favorite grocer and introduces new long-term financial targets
    • MSCI (MSCI) beats by $0.08, reports revs in-line
    • Mueller Industries (MLI) misses by $0.08 (two estimates), beats on revs
    • Northrop Grumman (NOC) beats by $0.71, reports revs in-line; guides FY26 EPS above consensus, revs in-line
    • RLI (RLI) Corp beats by $0.32
    • RTX (RTX) beats by $0.48, beats on revs; guides FY26 EPS above consensus, revs above consensus
    • Steel Dynamics (STLD) misses by $0.22, beats on revs
    • Synchrony Financial (SYF) beats by $0.26
    • Thomson Reuters (TRI) provides supplemental financial information following close of Global Print transaction
    • United (UCB) Community Banks, Inc. reports third quarter earnings
    • Valmont (VMI) beats by $0.54, misses on revs; guides FY26 EPS in-line with consensus
    • Vicor (VICR) beats by $0.01, beats on revs
    • Western Alliance Bancorp (WAL) beats by $0.03, beats on revs
    • Wintrust Fin (WTFC) beats by $0.06, reports revs in-line
    • W.R. Berkley (WRB) beats by $0.02, misses on revs
    • Zions Bancorp (ZION) beats by $0.12
  • General News
    • President Trump and Vice President JD Vance will make an announcement at 1:30 PM ET, per White House schedule
    • Houthi launched several attacks on Saudi energy, airport and military targets. CNBC
    • Alberta residents voted to remain in Canada. WSJ
    • Data center company Elice fell 38% during first day of trading. Bloomberg
    • OpenAI wants to accelerate fundraising before Anthropic goes public. Reuters
    • ABB Ltd to (ABBNY) invest $495 mln for 51% stake in Mitsubishi Electric low-voltage power distribution joint venture
    • Alvotech (ALVO) says FDA approves new SIMLANDI manufacturing process that more than doubles output per batch
    • Anteris (AVR) gets German clearance for PARADIGM DurAVR pivotal trial
    • Apple (AAPL) adds Perryman and expands Qnity partnership under U.S. manufacturing program
    • Atrium Therapeutics (RNA) investor Yakira urges strategic review, spending cuts after $50 mln private placement
    • Axcelis (ACLS) to invest $35 mln in new Korea manufacturing facility
    • ByteDance, Alibaba (BABA), and Tencent placed chip orders with Nvidia valued at $35 bln. Reuters
    • Clearfield (CLFD) CEO Cheri Beranek to retire by March 31, 2027; board starts search
    • Cognizant (CTSH) selected by Ingenico as global technology partner in five-year deal
    • Collegium (COLL) settles with Grunenthal, terminates Nucynta license for $17 mln and ends future royalties – 8-K filing
    • Construction Partners (ROAD) completes acquisition of Florida site development, utility contractor Cline Construction
    • CRISPR Therapeutics (CRSP) CFO Raju Prasad steps down; A.J. Silver succeeds effective today
    • FactSet (FDS) partners with Nasdaq (NDAQ) Private Market on private-company cap table data
    • Flutter (FLUT) to cut up to 1,400 jobs in UK & Ireland restructuring – 8-K filing
    • GSK (GSK) wins FDA accelerated approval for Jemperli in MSI-H/dMMR locally advanced rectal cancer
    • Haemonetics (HAE) says FDA approves PerQseal Elite vascular closure system
    • Home Bancorp (HBCP) CEO Bordelon to retire Jan. 8; President Guidry to succeed – 8-K filing
    • Intel (INTC) asks FCC to exempt certain foreign-made advanced robotics used in semiconductor manufacturing from recent ban, according to Bloomberg
    • JELD-WEN (JELD) CFO Samantha Stoddard to resign Nov. 13; Jeffrey Embt named interim CFO – 8-K filing
    • Knife River (KNF): Starboard has identified potential board candidates, according to Reuters
    • Lear (LEA) names Jared Fedele CFO effective March 1, 2027; Jason Cardew to retire
    • Lyntris (LYNX) wins $6.48 mln U.S. Navy MTC2 contract expansion for autonomous formation flight
    • Matrix Service (MTRX) names former Diamond Offshore CFO Dominic Savarino as CFO
    • Metropolitan Bank (MCB) increases quarterly dividend to $0.40/share from $0.35/share
    • Netflix (NFLX) attempting to overhaul creative leadership. WSJ
    • Odyssey Therapeutics (TAK) posts full Phase 2a induction data for OD-001 in ulcerative colitis
    • Qualcomm (QCOM) to eliminate jobs based on performance, according to Reuters
    • Rezolve Ai (RZLV) signs Revolut agreement to expand rewards distribution
    • Solventum (SOLV) gets FDA 510(k) clearance for combined use of Restrata Matrix with V.A.C. Therapy
    • Starboard building stake in Solstice (SOLS) Advanced Materials (SOLS, INSID). FT
    • Strategic Education (STRA)'s Sophia Learning partners with National University on transfer-credit pathway
    • Teva, Sanofi (SNY) present 44-week Phase 2b extension data for duvakitug in ulcerative colitis, Crohn's disease
    • Torrid (CURV) says CFO Paula Dempsey to resign; appoints Will Langley interim CFO – 8-K filing
    • Waters, Quest Diagnostics (DGX) partner to roll out at-home HPV screening nationwide starting in 2027
    • Waymo (GOOG, GOOGL) looking to (GOOG) expand its fleet to 20,000 cars by the end of 2027. Semafor
    • West Coast Community Bancorp (WCCB) raises quarterly cash dividend to $0.29/share from $0.25/share – 8-K filing
    • West Pharm (WST) raises quarterly dividend 18% to $0.26 per share
    • YD Bio (YDES) Limited announces a strategic collaboration with EG BioMed Co and digital health provider JoiiUp
  • Upgrades:
    • Akamai Technologies (AKAM) upgraded to Strong Buy from Outperform at Raymond James, tgt $170
    • American Electric Power (AEP) upgraded to Buy from Neutral at BTIG, tgt $147
    • Arhaus (ARHS) upgraded to Overweight from Neutral at Piper Sandler, tgt $13
    • BlackRock (BLK) upgraded to Buy from Hold at TD Cowen, tgt $1,405
    • Healthcare Realty Trust (HR) upgraded to Buy from Hold at Deutsche Bank, tgt $23
    • TKO Group (TKO) upgraded to Buy from Neutral at Arete, tgt $208
    • Trex Company (TREX) upgraded to Buy from Hold at Stifel, tgt $55
    • Venture Global (VG) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $21
  • Downgrades:
    • Apple (AAPL) downgraded to Hold from Buy at Loop Capital, tgt $330
    • Elanco Animal Health (ELAN) downgraded to Hold from Buy at Jefferies, tgt $24
    • Essential Properties Realty Trust (EPRT) downgraded to Hold from Buy at Deutsche Bank, tgt $28
    • EyePoint (EYPT) downgraded to Underweight from Neutral at JPMorgan
    • Heartland Express (HTLD) downgraded to Neutral from Outperform at Baird, tgt $12
    • NuScale Power (SMR) downgraded to Underweight from Equal Weight at Barclays, tgt $5
    • RELX (RELX) downgraded to Neutral from Buy at Citi
    • Vodafone (VOD) downgraded to Underweight from Equal Weight at Barclays
    • Werner Enterprises (WERN) downgraded to Neutral from Outperform at Baird, tgt $32
    • Zoetis (ZTS) downgraded to Hold from Buy at Jefferies, tgt $83
  • Others:
    • ADARx Pharmaceuticals (ADRX) initiated at Overweight at JPMorgan, tgt $38
    • ADARx Pharmaceuticals (ADRX) initiated at Overweight at Morgan Stanley, tgt $32
    • ADARx Pharmaceuticals (ADRX) initiated at Buy at TD Cowen
    • ADARx Pharmaceuticals (ADRX) initiated at Buy at UBS, tgt $35
    • Artivion (AORT) initiated at Buy at Jefferies, tgt $31
    • Concentra (CON) initiated at Overweight at Stephens, tgt $45
    • Ensysce Biosciences (ENSC) initiated at Overweight at Cantor Fitzgerald, tgt $2
    • Hubbell (HUBB) assumed at Neutral at JPMorgan, tgt $485
    • Kazia Therapeutics (KZIA) initiated at Outperform at Leerink, tgt $30
    • Kestra Medical Technologies (KMTS) initiated at Outperform at Evercore ISI, tgt $34
    • Midera Food Processing (MFP) initiated at Outperform at William Blair
    • Modine Manufacturing (MOD) initiated at Overweight at Cantor Fitzgerald, tgt $275
    • MPLX (MPLX) assumed at Neutral at JPMorgan, tgt $62
    • News Corp. (NWSA) initiated at Outperform at Raymond James, tgt $35
    • nVent Electric (NVT) initiated at Overweight at JPMorgan, tgt $167
    • Orion180 Insurance Group (OIG) initiated at Buy at Texas Capital Securities, tgt $15
    • SiTime (SITM) initiated at Buy at Rosenblatt, tgt $750
    • Sunoco (SUN) assumed at Overweight at JPMorgan, tgt $87
    • Thomson Reuters (TRI) initiated at Buy at Jefferies, tgt $130
    • Tvardi Therapeutics (TVRD) initiated at Buy at Chardan, tgt $8
    • Western Midstream Partners (WES) assumed at Neutral at JPMorgan, tgt $50
  • Econ Data (Wednesday):
    • 7:00 ET: Weekly MBA Mortgage Index (prior -2.7%)
    • 10:30 ET: Weekly crude oil inventories (prior -8.56 mln)
  • Earnings:
    • Monday (October 19)
      • Pre-Market: CBZ, CLF, FITB
      • After-Hours: BOKF, CCK, FNB, RLI, STLD, WAL, WRB, WTFC, ZION
    • Tuesday (October 20)
      • Pre-Market: ALLY, AUB, EFX, GE, GM, GPC, HAL, HAS, KEY, MMM, MSCI, NOC, PM, RTX, SYF, VICR, VMI
      • After-Hours: ADC, ALK, CB, COF, ELS, EWBC, HWC, LRN, NFLX, OZK, PEGA, SPCX, UAL, WFRD
    • Wednesday (October 21)
      • Pre-Market: ABT, BKU, CME, DHR, ELV, LAD, MCO, MHO, NEE, NTRS, ONB, SF, T, TDY, TMO, UNF, WAB, WGO
      • After-Hours: CATY, CCI, CSX, EGP, EPRT, ESI, FAF, FR, FULT, GGG, GL, GTY, HXL, IBM, KALU, KMI, KNX, LBRT, LRCX, LUV, LVS, MEDP, META, MOH, OII, PKG, PNFP, QS, ROL, RS, SAP, SEIC, SLG, SON, SSB, STC, TCBI, TSLA, TXN, URI, WCN, WDFC, WH
    • Thursday (October 22)
      • Pre-Market: AAL, ALLE, AMBP, BMI, BPOP, BX, CBRE, CMCSA, COCO, CRS, CURB, DGX, DOV, DOW, FSV, HBAN, HON, IIIN, LAZ, LMT, LNN, MSM, NDAQ, NOK, NVR, ORI, PCG, PG, PHM, POOL, R, ROP, SNA, SPOT, TSCO, TTMI, UNP, VC, VLO, VLY
      • After-Hours: ABCB, APPF, ASB, BE, BYD, COLB, CUBI, DECK, ENVA, KN, KNSL, KRC, MXL, NEM, OMC, REXR, RHI, RNG, SAM, SIGI, SLM, SSNC, VRSN, WDC
    • Friday (October 23)
      • Pre-market: ALV, AXP, BAH, FLG, GNTX, HTH, RCI, SLB
      • Afternoon: None
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