After Hours Report

The major averages finished lower today, with another abrupt reversal across technology stocks proving too much for the market to overcome despite opening strength that followed a relatively benign inflation report. Rising oil prices and renewed geopolitical concerns added to the pressure, sending the S&P 500 (-1.6%), Nasdaq Composite (-2.0%), and DJIA (-1.9%) sharply lower.

Stocks showed resilience at the open, as a somewhat better-than-feared May CPI report kept expectations for the Fed's policy path largely unchanged. Headline CPI rose 0.5% month-over-month (Briefing.com consensus 0.5%), while Core CPI increased 0.2% (Briefing.com consensus 0.3%). However, the year-over-year rate for both measures accelerated, with headline CPI reaching 4.2%, marking its first move above 4.0% in three years.

The major averages even spent some time in positive territory as technology stocks oscillated through a choppy opening stretch. The top-weighted information technology sector traded nearly 1% higher within the first hour of action. As they did yesterday, tech stocks eventually rolled over, charting a firmly lower course for the major averages.

The information technology sector (-2.0%) finished as one of the worst-performing S&P 500 sectors, with particular weakness once again coming from semiconductor and other AI-related names. The PHLX Semiconductor Index finished 3.6% lower, with Broadcom (AVGO 372.10, -20.06, -5.12%) a notable laggard among large chipmakers after partnering with Apollo Global Management (APO 131.14, -1.56, -1.18%)on an AI platform backed by an initial $35 billion commitment, while Taiwan Semiconductor Manufacturing (TSM 408.91, -19.01, -4.44%) suffered a similar loss despite reporting record May revenue.

Like the previous session's retreat, today's selloff came without a clear catalyst, suggesting that technology stocks may simply be working through a period of near-term profit-taking after an extended run higher. Some investors may also be raising cash ahead of Friday's highly anticipated SpaceX IPO.

Elsewhere in the technology sector, Super Micro Computer (SMCI 29.27, -11.37, -27.98%) was the worst-performing S&P 500 name after announcing a series of concurrent equity and equity-linked financing transactions totaling $7 billion.

Unlike yesterday's session, the major averages were left largely without support from the broader market, which was further pressured by rising oil prices. Crude oil futures settled today's session $1.77 higher (+2.0%) at $89.93 per barrel amid an escalation in hostilities between the U.S. and Iran, which included President Trump saying more military strikes are planned for today.

The industrials sector (-3.4%) finished with the widest loss, pressured by a variety of factors, including the spike in oil prices, which weighed heavily on airline stocks such as United Airlines (UAL 102.78, -6.85, -6.25%).

Elsewhere in the sector, Amazon's (AMZN 237.93, -6.26, -2.56%) expansion into the less-than-truckload space sent names such as FedEx Freight (FDXF 175.19, -13.27, -7.04%) and Old Dominion (ODFL 235.95, -12.78, -5.14%) sharply lower.

Additionally, electrical product names such as Generac (GNRC 239.11, -21.88, -8.38%), which have become increasingly linked to semiconductor performance, charted a lower course as tech pulled back.

The consumer discretionary sector (-2.2%) faced a similar combination of pressures, with cruise lines and other travel-related names retreating amid higher oil prices, while the pullback across tech included Tesla (TSLA 381.51, -15.17, -3.82%) and Amazon.

Meanwhile, the energy sector (+1.5%) unsurprisingly outperformed, while the consumer staples sector (+1.7%) also notched a solid gain as it extended yesterday's rotational strength. Casey's General (CASY 915.60, +154.42, +20.29%) was the best-performing S&P 500 name after topping earnings estimates, while J.M. Smucker (SJM 116.98, +4.59, +4.08%) extended its own post-earnings rally and Coca-Cola (KO 83.59, +2.25, +2.77%) traded to a new all-time high.

Overall, today's session reinforced the market's recent struggle to sustain upside momentum in technology stocks after an extended rally. Looking ahead, attention now turns to Oracle's (ORCL 201.26, -4.55, -2.21%) earnings after the close and Friday's highly anticipated SpaceX IPO as key catalysts that could further shape near-term sentiment.

U.S. Treasuries recorded slim midweek losses after spending another day inside a narrow trading range even though today's session saw the release of the May CPI report (0.5%; Briefing.com consensus 0.5%). Treasuries reached fresh lows in the early afternoon even though today's $39 bln 10-year note reopening was well received with foreign demand coming in firmly above average. The 2-year note yield settled up one basis point to 4.13%, and the 10-year note yield settled up one basis point to 4.54%. 

• Russell 2000: +14.3% YTD
• S&P Mid Cap 400: +11.2% YTD
• Nasdaq Composite: +8.3% YTD
• S&P 500: +6.2% YTD
• DJIA: +3.9% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 10.8%; Prior -2.3%
• May CPI 0.5% (Briefing.com consensus 0.5%); Prior 0.6%, May Core CPI 0.2% (Briefing.com consensus 0.3%); Prior 0.4%
  • The key takeaway from the report is that core CPI was not as bad as feared, but that doesn't mean it was good. Core CPI is still running well above the Fed's 2.0% inflation target, so this report was by no means a game-changer in terms of the prevailing view that the Fed won't be cutting rates anytime soon.
• The Treasury Department reported a $292.6 billion deficit for May (Briefing.com consensus: $202.5 bln), which was $23 billion less than the deficit reported for May 2025. Receipts totaled $335.5 billion, while outlays reached $628.2 billion.
  
  • The key takeaway from the report, for some, will be the decline in customs duties, but even more important is the continued increase in the outlay for net interest ($107 billion), which was 47% more in May than the outlay for national defense.

Overseas:

• Europe: DAX -0.9%, FTSE +0.3%, CAC -0.5%
• Asia: Nikkei -1.9%, Hang Seng -0.6%, Shanghai -0.4%

Commodities:

• Crude Oil +1.77 @ 89.93
• Nat Gas +0.04 @ 3.18
• Gold -156.80 @ 4133.80
• Silver -0.55 @ 64.70
• Copper -0.05 @ 6.27

After-Hours Spotlight:

• Greif (GEF) announces price increase for uncoated recycled paperboard, tube and core and protective packaging products...GEF flat
• Navan (NAVN) beats by $0.07, beats on revs; guides Q2 revs above consensus; guides FY27 revs above consensus...NAVN +18.3%
• Oracle (ORCL) beats by $0.15, reports revs in-line; guides Q1 EPS above consensus, revs in-line; guides FY27 EPS above consensus, reaffirms FY27 revs guidance...ORCL -6.5%
• Oxford Industries (OXM) beats by $0.10, reports revs in-line; guides FY27 EPS in-line, revs below consensus...OXM -10.2%
• PureCycle Technologies (PCT) announces proposed concurrent public offerings of convertible senior notes and common stock...PCT -10.9%
• Stitch Fix (SFIX) beats by $0.05, beats on revs; guides Q4 revs in-line...SFIX +3.6%
• Swarmer (SWMR) files for 3,000,000 share common stock offering by selling shareholders...SWMR -12.5%
• Veritone (VERI) discloses a restructuring plan that includes at least a 25% workforce reduction...VERI +2.5%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Bread Financial (BFH) provides performance update for May
  • Casey's General (CASY) beats by $1.06, beats on revs; authorizes $1 bln expansion to share repurchase program; also increases dividend
  • Chewy (CHWY) beats by $0.19, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; guides FY27 revs below consensus
  • ChipMOS TECHNOLOGIES (IMOS) reports 17.7% YoY increase in May 2026 revenue
  • Core & Main (CNM) beats by $0.19, reports revs in-line; reaffirms FY27 revs guidance
  • Cracker Barrel (CBRL) beats by $0.77, beats on revs; guides FY26 revs above consensus
  • Devon Energy (DVN) provides updated FY26 outlook for combined company following completion of its merger with Coterra Energy; Production expected to average 1.380 mln barrels of oil equivalent per day
  • Elevance Health (ELV) reaffirms guidance ahead of investor and analyst meetings this week
  • Grocery Outlet (GO) CFO Chris Miller to retire; names Ian Ferry as its new CFO; reaffirms Q2 and FY26 outlook
  • Hinge Health (HNGE) raises guidance ahead of its Investor Day
  • Robinhood Markets (HOOD) reports May 2026 operating data
  • Sallie Mae (SLM) provides investor updates in presentation; expects federal reforms to increase originations by up to 70% over the next several years
  • Suja Life (SUJA) reports Q1 results, reports revs in-line; guides FY26 revs below consensus
  • Taiwan Semiconductor Manufacturing (TSM) reports May revenue up 30.1% yr/yr
  • VinFast Auto (VFS) reports May preliminary domestic Vietnam deliveries of 19,503 electric vehicles
• General News
  • U.S. launched strikes on Iran after Iran shot down an American military helicopter. Iran responded by attacking U.S. targets in Jordan, Bahrain and Kuwait. NBC News
  • U.S. Central Command announces they began launching self-defense strikes against Iran at 5:00pm ET in response to the downing of U.S. Army Apache helicopter
  • President Trump in a phone interview with Fox News reporter Trey Yingst says he is close to ordering new strikes against Iranian power plants and bridges; says Iran is "tapping U.S. along" with talks; says President Trump noted that oil prices are at $90/barrel; says that is lower than what analysts predicted
  • House passes bill to fund immigration enforcement through 2028. President Trump will sign it today. The bill does not contain any of the reforms Democrats demanded. NBC News
  • The Trump administration asks an artificial intelligence testing unit to stop issuing public reports. WSJ
  • The Commodity Futures Trading Commission will soon introduce new rules for prediction markets. WSJ
  • Thomas Lind, a top AI policy adviser, set to become latest high-profile departure from White House's tech policy team following release of the executive order on AI security, according to Politico
  • EPA Administrator Lee Zeldin will not set environmental requirements for data centers, according to Politico
  • Defense firms will meet with President Trump to discuss missile supply, according to NBC News
  • Allison Transmission (ALSN) announces that next generation of tactical trucks for the French Land Forces will be equipped with its Specialty Series fully automatic transmissions
  • Alphabet (GOOG) posts blog titled "How Lightning Engine delivers 4.9x faster Apache Spark performance"
  • Amazon (AMZN) announced the U.S. expansion of its less-than-truckload freight beyond its current inbound-to-Amazon offering, to any type of destination, including third-party warehouses, distribution centers, and retail partners, as part of the suite of offerings from Amazon Supply Chain Services
  • Applied Optoelectronics (AAOI) is providing Spectrum with its QuantumLink remote management software across its connected 1.8GHz amplifier footprint
  • Ares Management (ARES) raises $12.7 billion to invest in asset-based finance through the Pathfinder closed-end strategy
  • Ashland (ASH): Ancora releases presentation highlighting opportunity for competitive sale process at Ashland
  • Bayer's (BAYRY) asundexian enters EMA review for stroke prevention
  • Boeing (BA) unveils advanced MQ-28 capabilities, extended combat reach
  • BrightSpring Health Services (BTSG): FTC finalizes consent order in Sevita, BrightSpring acquisition
  • Brookfield Asset Mgmt (BAM) and Mitsubishi HC Capital Inc. announce the formation of a joint venture for a privately held renewable energy company that will acquire and operate a diversified portfolio of contracted, operating renewable energy assets in Europe
  • Caledonia Mining (CMCL) reports Motapa exploration results
  • Cellectis (CLLS) Receives FDA RMAT Designation for lasme-cel, the First Allogeneic CAR-T Therapy in a Pivotal Trial for Patients with r/r B-ALL
  • CME Group (CME) announces launch of Nasdaq CME Crypto Index futures
  • ComScore (SCOR) COO Greg Dale departs; responsibilities will be overseen by CEO
  • Cullinan Therapeutics (CGEM) Shares New Clinical Data Across Its Portfolio of T Cell Engager Programs Targeting CD19 and BCMA in Autoimmune Diseases
  • Eli Lilly (LLY) receives FDA approval for every-eight-week EBGLYSS maintenance dosing in atopic dermatitis
  • Enersys (ENS) introduces the DataSafe Noir lithium-based energy storage system engineered to control how power behaves under real-world and dynamic load conditions
  • Ero Copper (ERO) confirms high-grade continuity and extends known mineralization at Furnas with significant new step-out intercepts
  • fuboTV (FUBO) announces a distribution agreement with NBCUniversal
  • General Motors (GM) aiming to remove LFP batteries in future EVs, according to Reuters
  • Harrow (HROW) re-launches VERKAZIA for pediatric allergic eye disease
  • Hut 8 Mining (HUT) closes $4.25 bln investment-grade financing for Beacon Point data center project
  • Johnson & Johnson (JNJ) believes it is realistic to find cures for certain cancers. WSJ
  • JPMorgan Chase (JPM) and Bank of America (BAC) received DOJ subpoenas due to alleged debanking, according to WSJ
  • KNOT Offshore Partners (KNOP) provides update to the schedule of vessels available for acquisition from our Sponsor, Knutsen NYK Offshore Tankers
  • L3Harris (LHX) has been selected by the U.S. Army to deliver VAMPIRETM counter-unmanned systems to support urgent defense against hostile drones
  • Lazard (LAZ) reported preliminary AUM as of May 31, 2026 totaled approximately $284.8 bln vs $275.37 bln April-end
  • Leggett & Platt (LEG) launches its new brand identity 'Leggett Dynamics'
  • Mountain Lake Acquisition Corp (MLAC) postponed Special Meeting of shareholders to June 16 (from June 12); will vote to extend date to consummate merger
  • NIQ Global Intelligence plc (NIQ) announces the upcoming launch of NIQ’s Full View of Beauty Channel and introduced Amazon (AMZN) third-party marketplace measurement in the U.S.
  • Novartis AG (NVS): Orionis Biosciences announces strategic collaboration with Novartis (NVS) to discover and develop molecular glue medicines
  • Oracle (ORCL) was awarded a U.S. government contract related to human resources software, according to Reuters
  • Organon (OGN) announces the US Food and Drug Administration approval of the supplemental Biologics License Application for TOFIDENCE injection, for intravenous use, a biosimilar to ACTEMRA
  • Parsons (PSN) CUAS Solutions strengthen national security and protect critical infrastructure
  • PAR Technology (PAR) highlights early results following Smoothie King’s implementation of PAR Games; Has increased loyalty signups by over 40%
  • POSCO (PKX) discloses occurrence of a serious industrial accident resulting in one fatality
  • PPG Industries (PPG) showcases aerospace innovations driving long-term organic sales growth, delivering customer productivity
  • REalloys (ALOY) initiates qualification effort for defense-grade heavy rare earth materials to meet DFARS 252.225-7052 January 1, 2027, Deadline
  • Robinhood Markets (HOOD) is now approved to serve as an IPO underwriter, according to an X post by CEO and Co-Founder Vlad Tenev
  • Rockwell Automation (ROK) authorizes additional $1 bln share repurchase program
  • Sanofi (SNY) halts Phase 3 MOBILIZE study of riliprubart in CIDP after interim review
  • Starbucks (SBUX) considering Japan options including sale of stake, according to Bloomberg
  • Takeda Pharma (TAK): U.S. FDA accepts Takeda's application for intravenous ENTYVIO (vedolizumab) in pediatric Ulcerative Colitis and Crohn's Disease
  • Tesla (TSLA) robotaxis have long waits and stalled rides. Bloomberg
  • Trane (TT) appointed Donald E. Simmons as Executive Vice President and Chief Operating Officer of the Company effective as of July 1 2026
  • Visa (V) announces new AI, stablecoin and token innovations to power intelligent, programmable commerce at Visa Payments Forum
  • Visa (V) partners with OpenAI to power the next generation of AI commerce
  • WeRide (WRD) plans for commercial Level 4 deployment in Slovakia
  • W.R. Berkley (WRB) mourns passing of William R. Berkley; Robert Berkley Jr. named chairman

• Upgrades:
  • Adidas (ADDYY) upgraded to Outperform from Sector Perform at RBC Capital
    
  • BorgWarner (BWA) upgraded to Buy from Neutral at UBS, tgt $95
    
  • CAVA Group (CAVA) upgraded to Buy from Neutral at UBS, tgt $90
    
  • Cracker Barrel (CBRL) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $50
    
  • Devon Energy (DVN) upgraded to Outperform from In Line at Evercore ISI, tgt $54
    
  • Entergy (ETR) upgraded to Outperform from In Line at Evercore ISI, tgt $121
    
  • GlobalFoundries (GFS) upgraded to Buy from Neutral at Arete
    
  • Global-e Online (GLBE) upgraded to Buy from Hold at Truist, tgt $39
    
  • Illumina (ILMN) upgraded to Overweight from Neutral at JPMorgan, tgt $185
    
  • Pfizer (PFE) upgraded to Sector Perform from Underperform at RBC Capital, tgt $25
    
  • RenaissanceRe (RNR) upgraded to Buy from Neutral at Citi, tgt $345
    
  • STMicroelectronics (STM) upgraded to Buy from Neutral at BofA Securities, tgt $100
    
  • Western Midstream Partners (WES) upgraded to Equal Weight from Underweight at Morgan Stanley, tgt $51
• Downgrades:
  • Bill Holdings (BILL) downgraded to Hold from Buy at Truist, tgt $35
    
  • Benitec Biopharma (BNTC) downgraded to Neutral from Buy at Guggenheim
    
  • Hess Midstream (HESM) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $38
    
  • Nike (NKE) downgraded to Sector Perform from Outperform at RBC Capital, tgt $50
    
  • Nutrien (NTR) downgraded to Hold from Buy at Berenberg, tgt $65
    
  • Passage Bio (PASG) downgraded to Neutral from Buy at Guggenheim
    
  • TC Energy (TRP) downgraded to Equal Weight from Overweight at Morgan Stanley
• Others:
  • Abacus Global Management (ABX) initiated with a Buy at Texas Capital, tgt $15
    
  • AnaptysBio (ANAB) assumed with a Buy at H.C. Wainwright, tgt $95
    
  • Bel Fuse (BELFB) initiated with an Overweight at JPMorgan, tgt $370
    
  • Blackstone Digital Infrastructure Trust (BXDC) initiated with an Equal Weight at Morgan Stanley, tgt $23
    
  • CAMP4 Therapeutics (CAMP) initiated with a Buy at Chardan, tgt $6.50
    
  • Carrier Global (CARR) initiated with a Market Perform at Bernstein, tgt $75
    
  • Emerson Electric (EMR) initiated with an Outperform at Bernstein, tgt $175
    
  • Equity Bancshares (EQBK) initiated with a Market Perform at Hovde Group, tgt $51
    
  • Hippo Holdings (HIPO) initiated with a Buy at Texas Capital, tgt $43
    
  • Honeywell (HON) initiated with a Market Perform at Bernstein, tgt $233
    
  • Hyliion Holdings (HYLN) initiated with a Buy at Needham, tgt $9
    
  • Indie Semiconductor (INDI) initiated with a Hold at TD Cowen, tgt $4
    
  • Johnson Controls (JCI) initiated with an Outperform at Bernstein, tgt $176
    
  • MediaAlpha (MAX) initiated with a Buy at Texas Capital, tgt $11
    
  • 3M (MMM) initiated with an Underperform at Bernstein, tgt $131
    
  • nVent Electric (NVT) initiated with an Outperform at Bernstein, tgt $218
    
  • NWPX Infrastructure (NWPX) initiated with a Neutral at JPMorgan, tgt $130
    
  • Otis Worldwide (OTIS) initiated with an Outperform at Bernstein, tgt $97
    
  • Parker-Hannifin (PH) initiated with an Outperform at Bernstein, tgt $1026
    
  • Power Integrations (POWI) initiated with a Buy at Needham, tgt $90
    
  • Rockwell Automation (ROK) initiated with a Market Perform at Bernstein, tgt $501
    
  • Skyward Specialty Insurance (SKWD) initiated with a Buy at Texas Capital, tgt $59
    
  • SharkNinja (SN) initiated with an Overweight at Piper Sandler, tgt $150
    
  • South Bow (SOBO) initiated with an Outperform at Raymond James
    
  • Trane Technologies (TT) initiated with an Outperform at Bernstein, tgt $550
    
  • Vertiv (VRT) initiated with an Outperform at Bernstein, tgt $416

• Econ Data (Thursday):
  • 8:30 ET: May PPI (Briefing.com consensus 0.7%; prior 1.4%), Core PPI (Briefing.com consensus 0.4%; prior 1.0%), weekly Initial Claims (Briefing.com consensus 222,000; prior 215,000), and Continuing Claims (prior 1.786 mln)
  • 10:30 ET: Weekly natural gas inventories (prior +95 bcf)

• Earnings:
  • Monday (June 8)
    • Pre-Market: GHM CPB
    • After-Hours: AVO MTN
      
    Tuesday (June 9)
    • Pre-Market: ASO SJM SAIL UNFI
    • After-Hours: CASY CBRL SUJA
      
  • Wednesday (June 10)
    • Pre-Market: CHWY CNM
      
    • After-Hours: NAVN ORCL OXM SFIX
      
  • Thursday (June 11)
    • Pre-Market: LOVE
    • After-Hours: ADBE LEN
  • Friday (June 12)
    • Pre-market: None
    • After-Hours: None