After Hours Report

The major averages finished lower on Tuesday as rising oil prices and renewed geopolitical tensions created a difficult backdrop for equities to begin the holiday-shortened week. The S&P 500 (-0.6%), Nasdaq Composite (-0.3%), and DJIA (-1.2%) all ended in negative territory, with pronounced health care weakness contributing to the blue-chip average's underperformance. The Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.7%) finished mostly in line with the broader market.

Crude oil remained a central influence throughout the session, settling $1.52 higher (+1.7%) at $93.02 per barrel following another pickup in Middle East hostilities over the weekend, including an exchange of strikes between the U.S. and Iran and a Houthi attack on a Saudi energy facility. The increase added to the difficult backdrop for equities, although the energy sector (+1.0%) benefited from the move and joined the utilities sector (+0.9%) as the only two S&P 500 sectors to finish higher.

Geopolitical concerns remained elevated into the afternoon. Reports indicated that the U.S. struck Iranian oil tankers as explosions were reported near Kharg Island, Iran's primary oil export hub, while Iran reportedly launched another attack against U.S. Navy ships. Crude oil continued to climb following the settlement as the headlines reinforced concerns surrounding further escalation and potential disruptions to regional energy supplies.

Elsewhere, the health care sector (-2.6%) finished at the bottom of the sector standings. Amgen (AMGN 393.17, -44.06, -10.08%) was among the day's weakest S&P 500 components after clinical trial setbacks at Novartis AG (NVS 137.70, -22.29, -13.93%) weighed on related names, while biotechnology stocks also faced considerable pressure. Amgen's sharp decline had an outsized impact on the DJIA and contributed significantly to its underperformance.

The financials sector (-1.4%) was another notable laggard amid broadly lower trading across the group.

Some oil- and rate-sensitive areas of the market also faced pronounced selling pressure, with the iShares U.S. Home Construction ETF falling 3.1%.

Meanwhile, the information technology sector (-0.2%) held up considerably better than the broader market thanks to continued strength across semiconductor stocks. The PHLX Semiconductor Index gained 1.3%, helping offset a 1.8% decline in the iShares GS Software ETF as well as weakness in NVIDIA (NVDA 225.73, -4.63, -2.01%) and other mega-cap stocks. Several company-specific catalysts contributed to the semiconductor outperformance. Intel (INTC 104.47, +8.67, +9.05%) rallied following positive analyst commentary and reports of potential price increases, while Advanced Micro Devices (AMD 505.74, +28.17, +5.90%) advanced after upbeat commentary regarding accelerating AI demand and its server CPU opportunity. Qualcomm (QCOM 174.09, +5.35, +3.17%) also gained after highlighting a multi-year agreement with Amazon (AMZN 256.97, -1.54, -0.60%) covering custom silicon and optical connectivity solutions, which management described as significant validation for its expanding data center business.

Optical stocks were another notable pocket of strength after Verizon (VZ 50.41, +0.27, +0.54%) and Corning (GLW 165.99, +11.69, +7.58%) announced a multi-billion dollar agreement covering more than 80 million miles of high-density optical fiber and connectivity solutions from 2027 through 2032. The agreement provided a positive read-through for the broader optical infrastructure market, helping propel sizable gains in Lumentum (LITE 978.54, +97.28, +11.04%) and Coherent (COHR 301.88, +20.02, +7.10%).

Tuesday's decline ultimately reflected broad weakness beneath the surface, with only two S&P 500 sectors finishing higher. Rising oil prices and renewed geopolitical tensions remained important headwinds, while sharp losses in health care and financial stocks added to the pressure. Semiconductor strength provided a meaningful counterweight and helped limit the Nasdaq Composite's decline, but investors generally remained cautious ahead of the August Producer Price Index on Thursday and Consumer Price Index on Friday, both of which could influence rate expectations ahead of next week's FOMC meeting.

U.S. Treasuries began the week with modest losses after failing to bounce from their lower start. The U.S. Treasury kicked off this week's note auction slate with a solid $58 billion 3-year note offering, which will be followed by a 10-year note sale tomorrow. The 2-year note yield settled up two basis points to 4.40%, and the 10-year note yield settled up two basis points to 4.81%. 

• Russell 2000: +19.3% YTD
• S&P Mid Cap 400: +13.7% YTD
• Nasdaq Composite: +13.7% YTD
• S&P 500: +12.1% YTD
• DJIA: +9.8% YTD

Reviewing today's data:

• Total consumer credit increased by $18.1 bln in July  (Briefing.com consensus $11.3 bln) while the June increase was revised down to $14.5 bln from $14.2 bln.
• The NFIB Small Business Optimism Index fell to 98.7 in August (Briefing.com consensus 99.3) from 99.8 in July.

 Overseas:

• Europe: DAX -0.1%, FTSE -0.1%, CAC +0.1%
• Asia: Nikkei -1.7%, Hang Seng -0.4%, Shanghai +0.2%

Commodities:

• Crude Oil +1.52 @ 93.02
• Nat Gas -0.06 @ 2.92
• Gold -37.10 @ 4438.90
• Silver +0.25 @ 67.03
• Copper +0.14 @ 6.82

After-Hours Spotlight:

• Braze (BRZE) beats by $0.03, beats on revs; provides Q3 (Sep) and FY26 guidance...BRZE -10.6%
• Casey's General (CASY)beats by $0.59, beats on revs; provides FY26 guidance...CASY -9.7%
• InnovAge (INNV) Announces Financial Results for the Fourth Quarter and Fiscal Year Ended June 30, 2026...INNV +14.8%
• Mission Produce (AVO) beats by $0.06, beats on revs...AVO +6.7%
• ServiceTitan (TTAN) beats by $0.05, beats on revs; provides Q3 (Sep) and FY27 guidance...TTAN -19.7%
• Smithfield Foods (SFD) provides guidance ahead of investor conference; Packaged Meats performing in-line with expectations; update driven by persistent fresh pork industry processing margin compression and lower hog prices...SFD  -4.6%

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

• Earnings/Guidance (Full Earnings Calendar):
  • ABM Industries (ABM) beats by $0.03, misses on revs; provides Q4 (Dec) and FY26 guidance
  • AMC Networks provided an updated outlook on certain full year-2026 financial metrics, including free cash flow (AMCX)
  • Boston Scientific (BSX) provides cybersecurity incident updates; believes that it is unlikely to meet the net sales growth and adjusted EPS guidance ranges for the third quarter and full year 2026 that the Company previously provided on July 29, 2026
  • General Mills maintains FY27 outlook, (GIS) sees early improvement in retail sales trends
  • Hon Hai Precision (Fox Con) (HNHPF) reports August sales surge 52% yr/yr; YTD revenue rises nearly 40%
  • IonQ (IONQ) provides guidance following SkyWater Technology acquisition
  • Nabors Industries (NBR) provides investor updates in presentation; reits Q3 and 2026 outlook
  • Novartis AG Phase III del-desiran study (NVS) misses primary endpoint in myotonic dystrophy; maintains long-term sales outlook
  • Philip Morris International (PM) raises FY26 EPS guidance, issues upside Q3 EPS guidanec to reflect currency
  • United Natural Foods (UNFI) beats by $0.08, misses on revs; provides FY27 guidance; Board authorizes $200 mln buyback program
  • Waterdrop Q2 revenue rises 72.8%, posts 18th straight profitable quarter (WDH)
• General News
  • Bombardier: President Trump indicated, 'no more selling Bombardier in the United States'
  • COMPASS Pathways to debut U.S. HCP Education Campaign and present new HEOR data at Psych Congress 2026
  • Canada imposes tariffs on the U.S. (SPY, EWC) Bloomberg
  • Corporate software companies seeing limited AI disruption WSJ
  • Anthropic decides against acquiring Decart AI Bloomberg
  • Anthropic to begin IPO marketing in October Reuters
  • Abbott (ABT) wins FDA approval for TactiFlex Duo ablation catheter for AFib
  • AGNC: S&P adds AGNC to MidCap 400; Bloom Energy, Everpure, Illumina to join S&P 500
  • Airbus to receive orders from Air Cairo (EADSY) Bloomberg
  • Anteris Technologies Global Corp. appointed Brent Moen as its Chief Financial Officer, effective September 11, 2026 (AVR)
  • Artiva outlines 2H26 data updates and Phase 3 start for AlloNK in refractory RA (ARTV)
  • ASML, Samsung expand High NA EUV collaboration for next-gen chip manufacturing
  • AstraZeneca's ETCAMAH (AZN) wins US approval in 1L HR-positive advanced breast cancer
  • Axcelis to invest $35 mln in new Korea manufacturing facility (ACLS)
  • Bausch Health expands YUN skincare partnership into Mexico and additional EMEA markets (BHC)
  • Beam Therapeutics posts updated Phase 1/2 BEAM-302 data in AATD; pivotal cohort dosing underway
  • Boston Scientific says cyber incident likely to materially hurt 2026 results; prior Q3 and FY26 guidance unlikely to be met – 8-K filing (BSX)
  • Bristol Myers says Phase 2 QUINTESSENTIAL trial of arlo-cel met primary, key secondary endpoints in relapsed/refractory multiple myeloma (BMY)
  • CME Group FX open interest climbs to record 4.41 mln contracts
  • Correction Becton Dickinson did not provide cyber incident update - prior comment has been removed (BDX)
  • Firmus and OpenAI to build data centers in Malaysia (NVDA, MSFT) Reuters
  • Franklin Templeton's Clarion Partners (BEN) to acquire majority stake in Stoneshield Capital
  • Guardant Health (AZN) wins FDA approval for Guardant360 CDx with AstraZeneca's ETCAMAH in advanced breast cancer
  • Health Catalyst (HCAT) names Simeon Kohl CEO and president
  • Herbalife authorizes new $250 mln 3-year share repurchase program (HLF)
  • Inhibrx Phase 2 HNSCC study shows higher response rate for INBRX-106 plus pembrolizumab; plans HPV+ expansion (MRK)
  • Instacart's Instaleap partners with Morrisons on online order fulfillment (CART)
  • Kura Oncology (KURA) names Jennifer Fulk CFO
  • Monte Rosa says Novartis starts Phase 2 study of MRT-6160 in Sjögren's disease; $50 mln milestone due (NVS)
  • Novo Nordisk stops two trials (NVO) Bloomberg
  • Novo Nordisk's semaglutide significantly reduces BMI in children with obesity in Phase 3 STEP Young trial (NVO)
  • NVIDIA: Firmus secures OpenAI as anchor customer in Malaysia, according to Reuters (NVDA)
  • Oportun (OPRT) names Bill Franklin CFO
  • Palantir partners with Nebius to offer sovereign AI infrastructure to commercial customers (NBIS)
  • Perfect Corp partners with QWEEN on 3D jewelry virtual try-on in India (PERF)
  • Pharvaris says Phase 3 CHAPTER-3 study of deucrictibant XR met primary endpoint in HAE prophylaxis (PHVS)
  • Pyxis Oncology (MRK) names Thomas Civik CEO and chairman
  • Quantinuum finalizes $100 mln CHIPS R&D award; GlobalFoundries (GFS) to support manufacturing work
  • Robinhood to underwrite its first IPO (HOOD) WSJ
  • Roivant says Phase 2 PHocus met primary, secondary endpoints for mosliciguat in PH-ILD; Phase 3 PHrontier underway (ROIV)
  • Roivant to present Phase 2 mosliciguat PH-ILD topline data on Sept. 8 (ROIV)
  • Royalty Pharma says Novartis Phase 3 pelacarsen trial missed primary endpoint (BIIB)
  • Sibanye-Stillwater considers Kwezi shaft restructuring as reserves decline; up to 1,114 workers affected (SBSW)
  • Sibanye-Stillwater enters into Section 189A consultations regarding the proposed restructuring of Kwezi shaft at its SA PGM operations (SBSW)
  • Spyre says SPY003 met primary endpoint in Phase 2 SKYLINE Part A ulcerative colitis trial (SYRE)
  • United Community Banks boosts buyback authorization after $2.0 bln Navitas sale, securities repositioning (UCB)
  • Upstream Bio presents Phase 2 verekitug asthma data ahead of Phase 3 start (UPB)
  • V2X awarded $19 mln Marine Corps contract for Tempest counter-UAS vehicles (VVX)
  • Visa expands blockchain lending push as stablecoin cards surge, according to CNBC (V)
  • Volkswagen AG considers selling Ducati to streamline holdings, according to Bloomberg (HOG)
  • Vor Bio (VOR) completes Phase 3 UPSTREAM MG enrollment; plans ocular MG registrational study
  • Waterdrop authorizes new $50 mln ADS buyback program, (WDH) approves about $10.8 mln cash dividend – 6-K filing
  • X4 Pharmaceuticals (XFOR) announces positive outcome of Type C meeting with FDA related to the global 4WARD Phase 3 clinical trial
  • ZIM Integrated Shipping: Hapag-Lloyd (HPGLY) tweaks $4.2 bln ZIM deal amid Israeli security pushback, according to Reuters

• Upgrades:
  • Airbnb (ABNB) upgraded to Outperform from Market Perform at Raymond James, tgt $200
  • Asbury Automotive (ABG) upgraded to Buy from Neutral at Seaport Research, tgt $300
  • C.H. Robinson (CHRW) upgraded to Buy from Neutral at Citigroup, tgt $185
  • Cenovus Energy (CVE) upgraded to Overweight from Neutral at JPMorgan
  • Commerce Bancshares (CBSH) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $76
  • Corning (GLW) upgraded to Buy from Neutral at China Renaissance, tgt $238
  • Cullen/Frost (CFR) upgraded to Overweight from Underweight at Morgan Stanley, tgt $200
  • Dauch (DCH) upgraded to Buy from Hold at TD Cowen, tgt $10
  • East West Bancorp (EWBC) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $160
  • Eaton (ETN) upgraded to Buy from Neutral at UBS, tgt $515
  • EchoStar (ECHO) upgraded to Buy from Neutral at UBS, tgt $150
  • Equifax (EFX) upgraded to Outperform from Neutral at BNP Paribas, tgt $245
  • FactSet (FDS) upgraded to Outperform from Market Perform at William Blair
  • Flagstar Bank (FLG) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $17
  • Intel (INTC) upgraded to Outperform from Market Perform at Northland, tgt $120
  • Lockheed Martin (LMT) upgraded to Buy from Neutral at UBS, tgt $674
  • M&T Bank (MTB) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $304
  • Magnolia Oil & Gas (MGY) upgraded to Overweight from Neutral at JPMorgan, tgt $33
  • Old Dominion Freight Line (ODFL) upgraded to Buy from Neutral at Citigroup, tgt $223
  • Sea Limited (SE) upgraded to Buy from Neutral at Arete, tgt $152
  • Sensata (ST) upgraded to Overweight from Equal Weight at Barclays, tgt $55
  • Sweetgreen (SG) upgraded to Overweight from Sector Weight at KeyBanc, tgt $9
  • Synopsys (SNPS) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $500
  • Vivmark Residential (VMRK) upgraded to Outperform from Neutral at Mizuho, tgt $73
• Downgrades:
  • Amgen (AMGN) downgraded to Market Perform from Outperform at BMO Capital, tgt $450
  • Autoliv (ALV) downgraded to Hold from Buy at TD Cowen, tgt $137
  • Baidu (BIDU) downgraded to Neutral from Buy at Arete, tgt $108
  • Best Buy (BBY) downgraded to Neutral from Buy at DA Davidson, tgt $95
  • Biohaven (BHVN) downgraded to Sector Perform from Outperform at RBC Capital, tgt $19
  • BioNTech (BNTX) downgraded to Market Perform from Outperform at BMO Capital, tgt $105
  • eGain (EGAN) downgraded to Neutral from Buy at Roth Capital, tgt $7
  • Essex Property Trust (ESS) downgraded to Neutral from Outperform at Mizuho, tgt $295
  • Gulfport Energy (GPOR) downgraded to Underweight from Overweight at JPMorgan, tgt $194
  • JD.com (JD) downgraded to Neutral from Buy at Arete, tgt $30
  • L3Harris Technologies (LHX) downgraded to Hold from Buy at Melius Research
  • Palo Alto Networks (PANW) downgraded to Neutral from Accumulate at Phillip Securities, tgt $346
  • PDD Holdings (PDD) downgraded to Neutral from Buy at Arete, tgt $93
  • Peloton (PTON) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $4.50
  • Phreesia (PHR) downgraded to Market Perform from Outperform at Raymond James
  • Smith & Nephew (SNN) downgraded to Neutral from Buy at BofA
  • Zions Bancorp (ZION) downgraded to Underweight from Overweight at Morgan Stanley, tgt $77
• Others:
  • Adlai Nortye (ANL) assumed with a Buy at Lucid Capital, tgt $49
  • Andersen Group (ANDG) initiated with a Market Perform at BMO Capital, tgt $58
  • Arrowhead (ARWR) initiated with a Buy at Citigroup, tgt $108
  • Bit Digital (BTBT) assumed with a Buy at H.C. Wainwright, tgt $4
  • Circle Internet (CRCL) initiated with a Market Perform at Keefe Bruyette, tgt $105
  • FedEx Freight (FDXF) initiated with an Overweight at JPMorgan, tgt $160
  • Guardant Health (GH) initiated with a Buy at Rothschild & Co Redburn, tgt $203
  • Hawaiian Electric (HE) initiated with a Sell at Ladenburg, tgt $7
  • Home BancShares (HOMB) initiated with an Outperform at Hovde Group, tgt $34
  • JBT Marel (JBTM) initiated with an Overweight at Barclays, tgt $150
  • Londian Wason (FOIL) initiated with an Overweight at Cantor Fitzgerald, tgt $31
  • Natera (NTRA) initiated with a Buy at Rothschild & Co Redburn, tgt $385
  • Northrim BanCorp (NRIM) resumed with an Outperform at Hovde Group, tgt $30
  • PDF Solutions (PDFS) initiated with an Overweight at Morgan Stanley, tgt $62
  • Pinnacle Financial (PNFP) initiated with an Overweight at Morgan Stanley, tgt $137
  • Securitize (SECZ) initiated with a Buy at Needham, tgt $11
  • Shake Shack (SHAK) initiated with an Outperform at RBC Capital, tgt $89
  • SpaceX (SPCX) initiated with a Buy at Pivotal Research, tgt $220
  • Tempus AI (TEM) initiated with a Neutral at Rothschild & Co Redburn, tgt $67
  • Tvardi Therapeutics (TVRD) assumed with a Buy at Lucid Capital, tgt $14
  • Willis Lease (WLFC) initiated with a Buy at Deutsche Bank, tgt $80

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 0.8%)

• Earnings:
  • Monday (September 7)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (September 8)
    • Pre-Market: ABM, GME, UNFI
    • After-Hours: AVO, BRZE, CASY, TTAN
  • Wednesday (September 9)
    • Pre-Market: ASO, CAL, CHWY, CNM, JMKE, KFY, ODD, SAIL, SIG, SUNB
    • After-Hours: AEO, AVAV, COO, NAVN, WLTH
  • Thursday (September 10)
    • Pre-Market: LOVE, M, MCFT, SHOE
    • After-Hours: ADBE, CPRT, DSGX, ORCL, REF, RH, ZUMZ
  • Friday (September 11)
    • Pre-market: KR
    • Afternoon: None