After Hours Report

The major averages finished Wednesday's session with solid gains as a significant pickup in third-quarter earnings reports helped restore technology stocks to a leadership position. The S&P 500 (+0.6%), Nasdaq Composite (+1.1%), and DJIA (+0.7%) all advanced, although the Nasdaq Composite enjoyed the strongest showing as renewed enthusiasm for AI-related stocks fueled gains across semiconductor, hardware, and software names.

The day's advance was driven largely by favorable earnings developments, particularly strong results and upbeat guidance from SpaceX (SPCX 159.28, +11.49, +7.77%) and Super Micro Computer (SMCI 35.55, +3.08, +9.49%). Both companies reinforced expectations for continued investment in AI computing infrastructure, helping revive buying interest in a group that had struggled to maintain its momentum during yesterday's choppy session.

The PHLX Semiconductor Index (+2.0%) posted a sizable gain, while strength in software and other technology stocks lifted the information technology sector (+1.6%) to the top of the S&P 500 standings. The renewed enthusiasm extended to several influential mega-cap names, with NVIDIA (NVDA 221.86, +5.39, +2.49%) contributing to the advance and Tesla (TSLA 386.47, +12.76, +3.41%) standing out ahead of its quarterly earnings report after the close. The Vanguard Mega Cap Growth ETF (+0.9%) outperformed the broader market, reflecting a shift back toward the large-cap growth stocks that had taken a back seat during yesterday's more broadly based rally.

Some of the strength in AI-related stocks also carried into the industrials sector (+0.9%), where companies tied to electronic production equipment and data center infrastructure benefited from the positive outlook for AI spending. United Airlines (UAL 101.67, +3.90, +3.99%) was another notable contributor to the sector's performance following a favorable earnings reaction.

Despite the technology-led advance, participation was less uniform than the gains in the major averages might suggest. Seven of the 11 S&P 500 sectors finished higher, while the communication services sector (-1.3%) was the weakest performer. Netflix (NFLX 65.04, -3.65, -5.31%) declined after disappointing fourth-quarter guidance and a reduction in its full-year advertising revenue outlook overshadowed its earnings beat. AT&T (T 21.91, -1.51, -6.45%) also faced substantial selling pressure despite exceeding earnings expectations, as slowing subscriber additions raised concerns about competitive conditions in the wireless industry. Alphabet (GOOG 330.95, -5.45, -1.62%) was another notable drag on the communication services sector, contrasting with the strength across several other influential technology-related stocks.

Elsewhere, the real estate (-0.8%), consumer staples (-0.6%), and health care (-0.5%) sectors finished lower, reflecting some reversal of yesterday's rotation into areas outside the technology trade.

The Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.4%) registered more modest gains, further illustrating the difference between today's mega-cap-led advance and yesterday's stronger participation among smaller companies.

The market's upward trajectory was briefly interrupted during the afternoon following a report suggesting the State Department was preparing to order the departure of certain personnel from U.S. embassies across the Persian Gulf. Stocks retreated modestly and crude oil prices ticked higher before State Department spokesperson Tommy Pigott clarified that the order applied only to non-emergency U.S. government employees and their families in Saudi Arabia. The clarification helped stocks recover much of the brief pullback, while WTI crude had already settled $0.66 lower (-2.1%) at $97.16 per barrel following the front-month contract's roll to December. The relatively subdued movement in oil prices and Treasury yields for much of the session allowed earnings and corporate developments to remain the primary drivers of trading.

The Nasdaq Composite also reclaimed its 50-day moving average, joining the S&P 500 and DJIA above their respective technical levels, as the major averages maintained the bulk of their gains into the close. Today's performance offered another example of the market's shifting leadership, with AI-related stocks regaining momentum after investors favored a much broader range of sectors and smaller companies yesterday. While the continued willingness to rotate between market groups remains an encouraging feature of the broader market, the contrast between technology's strength and weakness in several other sectors underscores the selective nature of today's advance.

With Meta Platforms (META 697.52, +3.27, +0.47%), Tesla, and others reporting after the close, the next round of results will be particularly important in determining whether renewed enthusiasm for AI investment can sustain the market's recent gains.

U.S. Treasuries ended the midweek session with losses after a mostly sideways session gave way to some late selling. The 2-year note yield settled up three basis points to 4.82%, and the 10-year note yield settled up three basis points to 5.15%.

• Nasdaq Composite: +14.9% YTD
• S&P 500: +13.3% YTD
• Russell 2000: +12.1% YTD
• S&P Mid Cap 400: +10.9% YTD
• DJIA: +10.0% YTD

Reviewing today's data:

• 10/17 MBA Mortgage Applications Index -5.3% (Prior -2.7%)
• 10/17 EIA Crude Oil Inventories -3.061M (Prior -8.557M)

Overseas:

• Europe: DAX +1.4%, FTSE +0.2%, CAC +1.1%
• Asia: Nikkei +0.9%, Hang Seng -0.9%, Shanghai -0.6%

Commodities:

• Crude Oil -0.66 @ 97.16
• Nat Gas -0.17 @ 2.79
• Gold +26.80 @ 4150.10
• Silver -0.26 @ 57.72
• Copper -0.02 @ 6.58

After-Hours Spotlight:

• CACI Intl (CACI) beats by $1.09, misses on revs; guides FY27 EPS in-line with consensus, revs in-line with consensus...CACI +1.2%
• CSX (CSX) beats by $0.04, beats on revs...CSX +4.1%
• Graco (GGG) misses by $0.02, revs in-line; guides Q4 revs below consensus at midpoint...GGG -8.2%
• IBM (IBM) beats by $0.10, beats on revs; maintains FY26 constant currency revenue growth of 4-5%...IBM +2.8%
• Lam Research (LRCX) beats by $0.02, reports revs in-line; guides Q2 EPS in-line, revs in-line...LRCX -6.3%
• Las Vegas Sands (LVS) misses by $0.14, misses on revs; 20% increase in recurring common stock dividend for calendar year 2027...LVS -2.9%
• Meta Platforms (META) beats by $0.86, beats on revs; guides Q4 revs above consensus at midpoint of range, raises 2026 expense outlook and narrows capex outlook; Approves new class of publicly traded stock...META +3.6%
• Molina Healthcare (MOH) beats by $0.10, beats on revs; reaffirms FY26 EPS guidance...MOH -2.8%
• SAP SE (SAP) beats by EUR0.08, beats on revs...SAP +4.6%
• Southwest Air (LUV) beats by $0.09, beats on revs; guides Q4 EPS below consensus, RASM expected to increase 19-21%...LUV +1.6%
• Tesla (TSLA) beats by $0.03, reports revs in-line...TSLA -0.8%
• Texas Instruments (TXN) beats by $0.19, beats on revs; guides Q4 EPS above consensus, revs above consensus...TXN -0.5%
• United Rentals (URI) beats by $1.58, beats on revs; raises FY26 revs above consensus...URI +0.1%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Abbott Labs (ABT) reports EPS in-line, revs in-line; guides Q4 EPS in-line; guides FY26 EPS in-line
  • Agree Realty (ADC) reports EPS in-line, beats on revs; guides FY26 AFFO in-line with consensus
  • Alaska Air (ALK) misses by $0.03, reports revs in-line; guides Q4 EPS below consensus
  • Alpha Teknova (TKNO) guides Q3 revenue above consensus
  • AT&T (T) beats by $0.05, beats on revs; guides FY26 EPS above consensus; provides long-term outlook for 2026-2028
  • Bank of Nova Scotia (BNS) announces expected contribution from KeyCorp's (KEY) third quarter earnings and the impact of deferred tax asset write-down from Chile tax rate reduction on its fourth quarter earnings
  • Bank OZK (OZK) beats by $0.07
  • BankUnited (BKU) reports EPS in-line
  • Capital One (COF) beats by $1.19, reports revs in-line
  • Chubb (CB) beats by $0.87, P&C net premiums written up 1.9%
  • CME Group (CME) beats by $0.03, reports revs in-line
  • Danaher (DHR) beats by $0.19, reports revs in-line; increases FY26 EPS guidance
  • East West Banc (EWBC) beats by $0.04, beats on revs
  • Elevance Health (ELV) beats by $2.28, beats on revs; guides FY26 EPS above consensus
  • Equity Lifestyle Properties (ELS) reports EPS in-line, beats on revs; guides Q4 Normalized FFO in-line with consensus; guides FY26 Normalized FFO in-line with consensus
  • Hancock Whitney (HWC) reports EPS in-line, beats on revs
  • Healthcare Services Group (HCSG) reports third quarter results
  • 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%
  • Lithia Motors (LAD) beats by $0.64, beats on revs
  • M/I Homes (MHO) misses by $0.55, misses on revs
  • Moody's (MCO) misses by $0.11, misses on revs; reaffirms FY26 EPS guidance
  • Netflix (NFLX) beats by $0.05, reports revs in-line; guides Q4 EPS below consensus, revs below consensus; guides FY26 revs below consensus
  • NextEra Energy (NEE) beats by $0.04, misses on revs; reaffirms FY26 EPS guidance
  • Northern Trust (NTRS) beats by $0.53, beats on revs
  • OFG Bancorp (OFG) reports 3Q26 results
  • Old National Bancorp (ONB) reports EPS in-line, misses on revs
  • Pegasystems (PEGA) misses by $0.10, misses on revs
  • Philip Morris International (PM) beats by $0.06, beats on revs; guides FY26 EPS below consensus
  • SpaceX (SPCX) beats by $0.22, beats on revs
  • Stifel Financial (SF) beats by $0.02, misses on revs
  • Stride (LRN) beats by $0.30, beats on revs; guides Q2 revs in-line with consensus; guides FY27 revs in-line with consensus
  • Super Micro Computer (SMCI) guides Q1 revenue above consensus
  • Teledyne Tech (TDY) beats by $0.55, beats on revs; guides Q4 EPS above consensus; raises FY26 EPS above consensus
  • Telix Pharmaceuticals (TLX) reports Q3 results
  • Thermo Fisher (TMO) beats by $0.28, beats on revs
  • UniFirst (UNF) misses by $0.04
  • United Airlines (UAL) misses by $0.03, reports revs in-line; guides Q4 EPS below consensus, expects unit revenue growth to accelerate versus Q3
  • Wabtec (WAB) beats by $0.10, misses on revs; guides FY26 EPS above consensus, reaffirms FY26 revs guidance
  • Weatherford (WFRD) beats by $0.33, revs in-line
  • Winnebago (WGO) beats by $0.02, misses on revs; guides FY27 EPS in-line with consensus, revs in-line with consensus
  • Zoom Communications (ZM) provides investor update in presentation at "Zoomtopia" event; targets FY30 revenue growth of 6-8%
• General News
  • SpaceX founder Elon Musk ordered slowdown of Starlink that Ukraine has been relying upon in conflict with Russia, according to WSJ
  • JFrog launches AI-SEC features to detect and govern shadow AI assets
  • President Trump says "if data center companies want to make their data centers popular, pay the community, and/or individuals within the community, a “dividend.”
  • Israel Prime Minister Benjamin Netanyahu pushed to resume strikes on Iran this month, including civilian infrastructure, but President Trump was opposed to restarting attacks prior to the midterm elections. FT
  • White House envoy Steve Witkoff will meet with Russian President Putin today to discuss an updated proposal to end the war in Ukraine. Axios
  • Oil exports through the Persian Gulf have surpassed pre-war levels amid U.S. protection of shipping lanes. WSJ
  • French borrowing costs have reached 5% for the first time since 2022. FT
  • Russia released Stephen Hubbard, an American held in Russia for four years. CNN
  • Iran's IRGC claims naval mines had prevented three tankers from attempting to pass through the Strait of Hormuz. CNBC
  • Larry Ellison increased borrowing to help his son bid for Warner Brothers. WSJ
  • Starlink (SPCX) CEO Elon Musk ordered a slowdown of Starlink that Ukraine was using. WSJ
  • Akzo Nobel N.V. in discussions (AKZOY) to sell its European vehicle refinishing unit to secure approval for Axalta Coating Systems merger, according to WSJ
  • Alcon (ALC) acquires Neurotech for $550 mln, adds FDA-approved MacTel therapy ENCELTO
  • Amkor (AMKR), NVIDIA expand AI packaging partnership with $1.3 bln South Korea agreement
  • Anavex (AVXL) completes blarcamesine DDI and ADME study conduct; FDA Fragile X IND cleared
  • BETA (BETA) wins FAA market survey authorization for ALIA VTOL customer flight operations
  • BioCryst (BCRX) says FDA approves ORLADEYO 150 mg oral pellets for adults and adolescents with HAE
  • Coca-Cola (KO)'s acquisition of Costa Coffee did not meet expectations. Bloomberg
  • Cognyte (CGNT) wins $20 mln+ defense framework agreement with NATO member ministry
  • Commerce.com (CMRC) partners with Cloudflare to add AI shopping agents to BigCommerce stores
  • CrowdStrike expands NVIDIA (NVDA) partnership to extend AI agent security from software to silicon
  • Dr. Reddy's (RDY) gets India approval for Zytorvi in first-line advanced ESCC – 6-K filing
  • F5 (FFIV) selected by Telenor AI Factory for sovereign AI service plane
  • GSK (GSK) wins FDA approval for Hibsago in chronic hepatitis B
  • Immunic (IMUX) posts new vidofludimus calcium MS data ahead of planned Phase 3 start in progressive MS
  • Ionis: partner GSK (GSK) wins FDA approval for Hibsago in chronic hepatitis B
  • Liberty Energy (LBRT) Liberty Energy raises quarterly dividend 11% to $0.10 per share
  • Life Time (LTH) expands DUPR partnership with pickleball ratings integrated into app
  • Merck (MRK) gets EU approval for KEYTRUDA plus Padcev in perioperative muscle-invasive bladder cancer
  • Micron (MU) signs deals with the Taiwan union. Reuters
  • MillerKnoll (MLKN) names Jeff Stutz CEO, effective immediately
  • Neptune Insurance CFO Jim Steiner to resign after year-end 10-K filing; board member Cristian Melej (HIFS) named successor – 8-K filing
  • Northern Trust (NTRS) raises quarterly common dividend to $0.88/share from $0.80/share – 8-K filing
  • Nucor (NUE) to invest $60 mln to expand Alabama utility structures facility
  • NVIDIA, Nokia (NOK) team with telcos on AI-RAN and distributed AI network buildout
  • Opus Genetics (IRD) says FDA clears IND for OPGx-RDH12 gene therapy
  • Prosperity Bancshares (PB) increases common stock dividend
  • Roche betting big on its new oncology treatment. Bloomberg (RHHBY)
  • Roche Hldg presents new pivotal trial data across broad neuroimmunology portfolio at MSToronto2026 (RHHBY)
  • Roivant (ROIV) says Priovant's brepocitinib meets Phase 3 endpoints in non-infectious uveitis
  • Rollins (ROL) increases quarterly dividend to $0.20/share from $0.1825/share
  • Samsung and SK Hynix are upgrading their Chinese plants. Reuters (SSNLF)
  • SCHMID (SHMD) Group lands equipment order worth more than €25M for HDI capacity expansion in Malaysia
  • Silvia (SVIA) says CFO, COO and chief legal officer to separate; names interim CFO Catalina Abbey – 8-K filing
  • Summit Therapeutics, ECOG-ACRIN to run registration-enabling Phase II/III ivonescimab trial in first-line biliary tract cancer (AZN)
  • UDR (UDR), Apollo to form $2.0 bln apartment joint venture
  • Voyager (AZN) names Robin Swartz president in planned CEO succession
  • Zoetis (ZTS) gets FDA approval for Convenia RTU for Dogs skin infection treatment

• Upgrades:
  • Chagee (CHA) upgraded to Buy from Hold at Jefferies, tgt $14.90
  • Clean Harbors (CLH) upgraded to Buy from Neutral at UBS, tgt $375
  • DigitalOcean (DOCN) upgraded to Overweight from Neutral at Piper Sandler, tgt $126
  • Fifth Third (FITB) upgraded to Outperform from In Line at Evercore ISI, tgt $60
  • Northrop Grumman (NOC) upgraded to Outperform from Neutral at Baird, tgt $675
  • Prologis (PLD) upgraded to Outperform from Market Perform at Raymond James, tgt $163
  • Zoom Communications (ZM) upgraded to Outperform from Perform at Oppenheimer, tgt $130 
• Downgrades:
  • Accenture (ACN) downgraded to Neutral from Outperform at Baird, tgt $252
  • Casella Waste (CWST) downgraded to Neutral from Buy at UBS, tgt $95
  • Chipotle (CMG) downgraded to Hold from Buy at TD Cowen, tgt $32
  • Cirrus Logic (CRUS) downgraded to Underweight from Equal Weight at Barclays, tgt $95
  • Fortinet (FTNT) downgraded to Sell from Buy at Arete, tgt $117
  • Johnson & Johnson (JNJ) downgraded to Hold from Buy at Erste Group
  • Mobileye (MBLY) downgraded to Underperform from Sector Perform at RBC Capital, tgt $5
  • SmartFinancial (SMBK) downgraded to Outperform from Strong Buy at Raymond James, tgt $56
  • Synchrony (SYF) downgraded to In Line from Outperform at Evercore ISI, tgt $78
• Others:
  • Air Global (AIIR) initiated at Buy at Roth Capital, tgt $11.50
  • Applied Digital (APLD) resumed at Buy at Roth Capital, tgt $35
  • Digital Realty (DLR) initiated at Outperformer at CIBC, tgt $213
  • eBay (EBAY) initiated at Buy at Erste Group
  • Equinix (EQIX) initiated at Outperformer at CIBC, tgt $1,200
  • NioCorp (NB) initiated at Buy at Texas Capital Securities, tgt $13
  • Robinhood (HOOD) initiated at Buy at Rosenblatt, tgt $135
  • USA Rare Earth (USAR) initiated at Buy at Texas Capital Securities, tgt $28
  • Zscaler (ZS) initiated at Neutral at DA Davidson, tgt $215

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 200,000; prior 199,000) and Continuing Claims (prior 1.710 mln)
  • 10:00 ET: September Leading Index (Briefing.com consensus -0.2%; prior -0.1%)
  • 10:30 ET: Weekly natural gas inventories (prior 67 bcf)

• 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