United Airlines stock grounded after earnings report
The major averages finished higher across the board today, with the S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (+0.3%) overcoming another bout of weakness across semiconductor stocks as encouraging inflation data and continued strength among several other mega-cap technology names supported the broader market. Investors also digested another slate of earnings reports, Fed commentary, and geopolitical developments.
Semiconductor stocks remained a notable source of weakness, though they recovered well off their session lows into the close. The PHLX Semiconductor Index finished down 2.1% after falling more than 4% earlier in the session. ASML (ASML 1815.27, +39.63, +2.23%) delivered a beat-and-raise earnings report before the open, but the stock and the broader semiconductor space reversed course after initially pointing toward another day of gains, though the afternoon saw a solid intraday recovery.
Memory names such as Micron (MU 904.28, -78.84, -8.02%), Sandisk (SNDK 1615.00, -142.82, -8.12%), and, outside the S&P 500, SK hynix Inc. (SKHY 176.46, -17.46, -9.00%) were among the group's biggest laggards.
The information technology sector (-0.1%) also rebounded sharply from its intraday lows, finishing just shy of unchanged as strength across several of its largest components helped offset semiconductor weakness. Microsoft (MSFT 395.63, +10.70, +2.78%) and Apple (AAPL 327.50, +12.64, +4.01%) were "Magnificent Seven" standouts, with Apple benefiting from a report from The Information that the company is exploring acquisitions to bolster its AI chip capabilities.
Alphabet (GOOG 370.21, +12.88, +3.60%) and Amazon (AMZN 254.96, +7.47, +3.02%) also posted solid gains, helping lift the communication services (+2.8%) and consumer discretionary (+1.4%) sectors. The Vanguard Mega Cap Growth ETF rose 1.0%, underscoring continued leadership across growth-oriented stocks outside of the semiconductor space.
The financials sector (+0.7%) was another relative outperformer following another busy round of corporate news. BlackRock (BLK 1093.40, +67.96, +6.63%) finished sharply higher after earnings, while Morgan Stanley (MS 228.42, +0.75, +0.33%) ended flattish despite also topping expectations.
Elsewhere, PayPal (PYPL 55.52, +8.15, +17.20%) was the best-performing S&P 500 component after Reuters reported that Stripe and Advert International have offered to acquire the company for approximately $53 billion.
The industrials sector (-0.2%) recovered alongside semiconductor stocks during the afternoon, though Pentair (PNR 64.33, -11.35, -15.00%) remained a notable drag after sharply lowering its second-quarter and full-year guidance, citing weaker pool equipment demand driven by a more pronounced inventory realignment and deteriorating business conditions.
The energy sector (-0.8%) gave back a portion of its gains from earlier in the week as WTI crude oil futures settled today's session $0.22 higher (+0.3%) at $79.62 per barrel following a relatively quiet day of geopolitical headlines involving the U.S. and Iran. Oil prices moved higher after the settlement, however, after U.S. Central Command announced a second wave of strikes against Iran.
The utilities sector (-1.0%) was another laggard as investors continued rotating away from more defensive areas of the market in favor of growth-oriented stocks.
On the policy front, another favorable inflation reading reinforced yesterday's encouraging CPI report, as the June PPI fell 0.3% month-over-month (Briefing.com consensus: 0.1%). The report further reduced the market's expectations for a near-term rate hike, with the CME FedWatch Tool's implied probability of the FOMC leaving rates unchanged at its September meeting rising to 51.9% from 41.9% yesterday. New York Fed President John Williams (FOMC voting member) said there are encouraging reasons to believe inflation has peaked, while Fed Governor Lisa Cook (FOMC voting member) reiterated that she would support tighter policy if inflation fails to show further signs of cooling.
Despite another volatile session for semiconductor stocks, today's trading demonstrated that investors remained willing to reward other growth-oriented areas of the market when the inflation backdrop improved. While chipmakers remained an important source of day-to-day volatility, strength across the broader mega-cap technology complex ultimately proved sufficient to lift the major averages higher.
U.S. Treasuries had a solid showing today, primarily shorter-dated securities, which were bolstered by a market-friendly PPI reading this morning that kept rate-hike concerns for the July FOMC meeting in check. The 2-year note yield settled down six basis points to 4.13%, and the 10-year note yield settled down four basis points to 4.55%.
- Russell 2000: +19.9% YTD
- S&P Mid Cap 400: +14.3% YTD
- Nasdaq Composite: +13.0% YTD
- S&P 500: +10.6% YTD
- DJIA: +9.6% YTD
Reviewing today's data:
- Weekly MBA Mortgage Applications Index -2.7%: Prior -2.2%
- June PPI -0.3% (Briefing.com consensus 0.1%); Prior was revised to 0.6% from 1.1%, June Core PPI 0.2% (Briefing.com consensus 0.4%); Prior was revised to 0.1% from 0.4%
- The key takeaway from the report is that it is an encouraging monthly marker of how the inflation data can improve with a decline in energy prices; however, it also reveals on a year-over-year basis that wholesalers are still dealing with high prices. Net-net, this report conveys the need for more improvement in bringing down wholesale prices, but it was better-than-feared when also factoring in the downward revisions to the prior month.
- July Empire State Manufacturing 15.6 (Briefing.com consensus 8.5); Prior 5.7
Overseas:
- Europe: DAX -0.5%, FTSE -0.1%, CAC +0.2%
- Asia: Nikkei +1.5%, Hang Seng +1.4%, Shanghai -0.3%
Commodities:
- Crude Oil +0.22 @ 79.62
- Nat Gas +0.03 @ 2.93
- Gold -12.20 @ 4057.50
- Silver -1.44 @ 57.68
- Copper -0.02 @ 6.36
After-Hours Spotlight:
- Jabil (JBL) authorizes new $1.5 bln share repurchase program... JBL +0.6%
- J.B. Hunt Transport (JBHT) beats by $0.17, beats on revs... JBHT +7.9%
- John B. Sanfilippo (JBSS) declares $1.05/share special dividend, raises annual dividend to $0.95/share from $0.90/share... JBSS +0.3%
- United Airlines (UAL) beats by $0.11, reports revs in-line, TRASM up 12.1%; guides Q3 EPS below consensus; guides FY26 EPS in-line, expects Q3 and Q4 TRASM growth to exceed Q2 levels... UAL -2.9%
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):
- Aehr Test Systems (AEHR) beats by $0.12; beats on revs; provides FY27 revenue guidance; received $8 mln in new orders in just the last month for silicon carbide WLBI WaferPaks
- ASML (ASML) beats by EUR 0.68, misses on revs; guides Q3 revs above consensus; guides FY26 revs above consensus
- BASF AG (BASFY) releases preliminary figures for second quarter of 2026 and increases earnings outlook for full-year 2026
- BlackRock (BLK) beats by $1.22, beats on revs; increasing share repurchases
- BNY Mellon (BNY) beats by $0.22, beats on revs; raises FY26 revenue guidance
- Conagra (CAG) beats by $0.01, reports revs in-line; guides FY27 EPS below consensus, reduces dividend
- Elevance Health (ELV) beats by $1.24, beats on revs; guides FY26 EPS above consensus
- EQT Corp. (EQT) discloses that it expects to report a total gain on derivatives of $45 mln for the three months ended June 30, 2026; Also expects to report net cash settlements received on derivatives of $73 mln
- First Horizon (FHN) beats by $0.01
- Genmab (GMAB) reports Q2 sales of DARZALEX
- Johnson & Johnson (JNJ) beats by $0.05, beats on revs; guides FY26 EPS above consensus, revs in-line
- Kestra Medical (KMTS) misses by $0.07, beats on revs; guides FY27 revs above consensus; secures up to $200 mln of non-dilutive financing
- Legend Biotech (LEGN) reports quarterly CARVYKTI sales of approximately $657 mln
- M&T Bank (MTB) beats by $0.66
- Morgan Stanley (MS) beats by $0.53, beats on revs
- Palvella Therapeutics (PVLA) provides investor updates in presentation
- Pentair (PNR) sharply lowers Q2 and FY26 guidance; cites a decline in Pool sales largely attributed to a more pronounced inventory realignment and worsening business conditions
- Phoenix Education Partners (PXED) beats by $0.11, beats on revs; provides FY26 guidance
- PNC (PNC) beats by $0.39, beats on revs
- Rio Tinto (RIO) reports higher H1 copper-equivalent production, maintains 2026 guidance
- SCHMID Group N.V. (SHMD) provides Q2 and FY26 guidance
- General News
- President Trump held a White House Situation Room meeting to discuss a massive offensive in Iran that will be wider in scope than the previous strikes this week. In a separate interview, President Trump threatened to strike Iranian power plants next week unless they return to the negotiating table. Axios
- Iran threatens to block more energy shipping routes as it continues to attack Gulf area nations. Reuters
- The House committee could vote on a reconciliation resolution Thursday, which includes $67 bln for defense, $20 billion in farm aid, and various voting reforms. Politico
- U.S. Central Command says "At 6 a.m. ET today, U.S. Central Command forces began launching a wave of strikes against Iran. The strikes are designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz"
- U.S. considering options for military action against Cuba, according to CBS News
- Chinese hedge funds aiming to lower exposure to artificial intelligence. Bloomberg
- U.S. grants The United Arab Emirates expanded access to artificial intelligence chips. WSJ
- South Korean President Lee remarked that the South Korean stock market is "quite unstable."
- The Trump administration does not rule out action on open source AI models. Semafor
- House passes daylight savings legislation, according to NBC News
- New York Fed President Williams (FOMC voter) says there are encouraging reasons to think inflation has peaked
- Fed Governor Lisa Cook (FOMC voter) says, "If we do not see signs of disinflation soon, I am prepared to act"
- Fed's Beige Book reports economic activity increased at a slight to moderate pace in eleven of twelve Federal Reserve Districts in late May and June, while one District reported no change.
- Accel Entertainment (ACEL) names Toucan Gaming CEO Stan Guidroz COO
- Acumen Pharmaceuticals (ABOS) highlights Enhanced Brain Delivery Program Data and Early Alzheimer’s Disease Insights at the Alzheimer’s Association International Conference
- Alcoa (AA), partner governments reach final investment decision on Western Australia gallium plant
- Alnylam (ALNY) starts Phase 2 APPlauDS study of mivelsiran in Down syndrome-associated Alzheimer's disease
- Amazon (AMZN) Leo to power satellite internet for South Africa’s largest internet provider
- Apple (AAPL): OpenAI's new AI assistant device intensifies the company's competition with Apple Inc, Amazon (AMZN), and Alphabet's Google (GOOG/GOOGL) but positions them for a successful upcoming IPO launch, according to Bloomberg
- Apollo Global Management's (APO) $300 bln in lending challenges major Wall Street banks, according to Bloomberg
- ASML (ASML) reports Intel (INTC) deploys High NA EUV in production on Intel 18A
- Axsome (AXSM) NDA for AXS-12 in narcolepsy cataplexy accepted by FDA; PDUFA set for May 1, 2027
- Aya Gold & Silver (AYA) advances Boumadine project
- Baxter (BAX) discloses that as part of its new operating model, it will begin reporting under two segments, Medical Products & Therapies and Healthcare Systems & Technologies
- Bayer (BAYRY) licenses European wheat genetics from RAGT to advance hybrid wheat strategy
- Cameco (CCJ) reports Cigar Lake resumes production, reaffirms 2026 output guidance
- Castle Biosciences (CSTL) gets New York state approval for AdvanceAD-Tx atopic dermatitis test
- Celcuity (CELC) wins FDA approval for REVTORPYK in HR+/HER2-, PIK3CA wild-type advanced or metastatic breast cancer
- Ceragon (CRNT) awarded a two-year, $3.4 million dollar managed services contract with a major mobile operator in Mexico
- Chiron Real Estate (XRN) announces key executive leadership team appointments
- Churchill Capital Corp IX (CCIX) announces its intention to liquidate
- Conagra (CAG) cuts quarterly dividend to $0.175/share from $0.35/share
- Domino's Pizza (DPZ) announces appointment of Michael Creedon, Jr. and Anneliese Olson to its Board of Directors and election of Corie Barry as Lead Independent Director of the Board
- Deutsche Bank (DB): Authorities conducted a search of a Deutsche Bank branch in Germany. Reuters
- First Busey Corp (BUSE) announces President and CEO Van Dukeman will continue to lead the company and Busey Bank as CEO through July 1, 2029, per a letter agreement with the company
- Gilat (GILT) wins over $20 mln in SkyEdge orders from global satellite operator
- Google (GOOG, GOOGL): EU considering more Google fines. FT
- Hycroft (HYMC) names First Majestic Silver veteran Michael Deal as COO
- IBM (IBM) launches Power Autonomous Operations software, entry-level Power S1112 server
- Intel (INTC) using ASML (ASML) tool to produce laptop chips. Reuters
- Jacobs (J) wins three UK National Highways contracts
- Keel Infrastructure (KEEL) announces an update on its data center project in Sherbrooke, Québec
- Macy's (M) names Kering Beaute executive Alexandre Choueiri CEO of Bluemercury
- Merck (MRK) says Phase 3 KEYTRUDA monotherapy improved PFS vs chemotherapy in frontline dMMR endometrial cancer
- Mobia Medical (MOBI) publishes two-year VNS-REHAB data showing durable Vivistim stroke recovery benefit
- Nokia (NOK) launches AI-native RAN platform with NVIDIA to boost network capacity
- Nvidia's (NVDA) AI accelerator Vera Rubin is on track for delivery to customers. Bloomberg
- Oceaneering (OII), KONGSBERG selected by DIU for CAMP XLUUV design work
- Oracle (ORCL) in the lead to supply Japan with secretive cloud services, according to FT
- ORIC (ORIC) starts Phase 3 Himalayas-1 trial for rinzimetostat in mCRPC; Bayer to supply NUBEQA
- PAR Technology (PAR) selected by Jacksons Food Stores to upgrade loyalty platform
- Pentair (PNR) CFO Nicholas Brazis steps down
- Phoenix Education Partners' (PXED) University of Phoenix collaborates with OpenAI on AI-powered learning and workforce tools
- PVH (PVH) appoints Sephora executive Alexis Rollier CFO
- QIAGEN (QGEN) launches QIAstat-Dx bloodstream infection panel in Europe
- Quanterix (QTRX) says Anthem to cover LucentAD Complete blood test starting July 1, 2026
- Radware (RDWR) launches cloud-augmented DefensePro X protection, starting with Web DDoS defense
- Redwire (RDW) lands $21.5 mln follow-on Stalker UAS order from PAE RAS
- Regeneron Pharma (REGN): FDA grants dupilumab orphan drug designation, according to FDA website
- Repay Holdings (RPAY) announced that Zachary F. Sadek has been appointed to its Board effective immediately; entered into a Cooperation Agreement with PCP Managers II, L.P.
- Roche Hldg (RHHBY) receives FDA priority review for Gazyva in primary membranous nephropathy
- RTX's (RTX) Pratt & Whitney advances engine inspections with AI-powered technology
- Talen Energy (TLN) reports PJM 2028/2029 auction results; 10,180 MW cleared at $325/MW-day
- Titan Mining (TII) announced positive results across its full graphite processing chain for the Kilbourne Graphite Project
- Ulta Beauty (ULTA) names Domino's CTO Kelly Garcia as chief technology officer
- United Micro (UMC) discloses that Represent subsidiary Fortune Venture Capital Corporation to announce related materials on disposal of common shares of Taiwan Semiconductor (TSM)
- Vale S.A. (VALE) board elects Wilfred Theodoor Bruijn as Chairman
- Veradermics’ (MANE) Oral VDPHL01 Delivers Positive Study ‘207’ Phase 2 Clinical Trial Results in Female Pattern Hair Loss Ahead of Upcoming Phase 2/3 Study ‘306’ Readout
- West Pharm (WST) and Daikyo Seiko entered into an Amended and Restated Technology Exchange and Crosslicense Agreement and two Distributorship Agreements
- X-Energy (XE) unit TRISO-X wins $11 mln Tennessee grant for Oak Ridge fuel campus expansion
- XPeng (XPEV) aiming to introduce a humanoid robot globally in 2027, according to WSJ
- ZoomInfo (GTM): Sharp Business Systems has expanded thousands of existing accounts into new services using ZoomInfo
- Upgrades:
- AMC Entertainment (AMC) upgraded to Buy from Hold at Texas Capital, tgt $3
- Arthur J. Gallagher (AJG) upgraded to Overweight from Neutral at Piper Sandler, tgt $276
- Cava Group (CAVA) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $90
- CNX Resources (CNX) upgraded to Hold from Sell at Truist, tgt $35
- Digital Realty (DLR) upgraded to Buy from Neutral at Guggenheim, tgt $200
- Powell Industries (POWL) upgraded to Buy from Hold at GLJ Research, tgt $427
- Tenaris (TS) upgraded to Equal Weight from Underweight at Morgan Stanley, tgt $65
- Downgrades:
- AIG (AIG) downgraded to Neutral from Overweight at Piper Sandler, tgt $80
- Allstate (ALL) downgraded to Neutral from Buy at UBS, tgt $261
- Ambev (ABEV) downgraded to Sector Perform from Outperform at Scotiabank
- Aon (AON) downgraded to Neutral from Overweight at Piper Sandler, tgt $377
- Banco Bilbao Vizcaya Argentaria (BBVA) downgraded to Neutral from Buy at BofA Securities
- Black Rock Coffee (BRCB) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $9
- CAE (CAE) downgraded to Underweight from Equal Weight at Morgan Stanley
- Check Point Software (CHKP) downgraded to Market Perform from Outperform at Raymond James
- Chefs' Warehouse (CHEF) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $97
- Element Solutions (ESI) downgraded to Neutral from Outperform at Mizuho, tgt $45
- Evotec (EVO) downgraded to Hold from Buy at TD Cowen, tgt $2
- Hartford Financial Services (HIG) downgraded to Neutral from Overweight at Piper Sandler, tgt $146
- IBM (IBM) downgraded to Perform from Outperform at Oppenheimer
- Loar Holdings (LOAR) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $82
- PagSeguro (PAGS) downgraded to Neutral from Buy at BofA Securities, tgt $10
- Pentair (PNR) downgraded to Sector Perform from Outperform at RBC Capital, tgt $74
- StoneCo (STNE) downgraded to Neutral from Buy at BofA Securities, tgt $13
- The Hanover Insurance Group (THG) downgraded to Neutral from Overweight at Piper Sandler, tgt $220
- TransDigm (TDG) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $1,345
- Travelers (TRV) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $290
- TriCo Bancshares (TCBK) downgraded to Equal Weight from Overweight at Stephens, tgt $54
- Universal Insurance Holdings (UVE) downgraded to Neutral from Overweight at Piper Sandler, tgt $44
- Voyager Technologies (VOYG) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $39
- Others:
- Agree Realty (ADC) initiated with an Outperform at Huntington, tgt $84
- ArcBest (ARCB) initiated with an Outperform at Citizens, tgt $180
- C.H. Robinson (CHRW) initiated with a Market Perform at Citizens, tgt $235
- Canadian Nat'l Rail (CNI) initiated with a Market Perform at Citizens
- Canadian Pacific Kansas City (CP) initiated with a Market Perform at Citizens
- Commerce Bancshares (CBSH) initiated with an Equal Weight at Stephens, tgt $62
- Crescent Energy (CRGY) initiated with a Buy at UBS, tgt $13
- CSX (CSX) initiated with a Market Perform at Citizens
- Covenant Logistics (CVLG) initiated with an Outperform at Citizens, tgt $60
- Deep Fission (FISN) initiated with a Buy at Canaccord, tgt $18
- Expeditors (EXPD) initiated with a Market Perform at Citizens
- FedEx (FDX) initiated with an Outperform at Citizens, tgt $375
- FedEx Freight (FDXF) initiated with an Outperform at Citizens, tgt $190
- First BanCorp (FBP) initiated with a Buy at Benchmark, tgt $31
- FTAI Aviation (FTAI) assumed with a Market Outperform at Citizens, tgt $375
- FTAI Infrastructure (FIP) assumed with a Market Outperform at Citizens, tgt $10
- Global Net Lease (GNL) initiated with a Market Perform at Huntington, tgt $10
- Gladstone Commercial (GOOD) initiated with a Market Perform at Huntington, tgt $13
- GXO Logistics (GXO) initiated with a Market Outperform at Citizens, tgt $80
- J.B. Hunt (JBHT) initiated with a Market Perform at Citizens
- Knight-Swift Transportation (KNX) initiated with a Market Outperform at Citizens, tgt $90
- Lantronix (LTRX) initiated with a Buy at JonesResearch, tgt $12
- Midera Food Processing (MFP) initiated with an Outperform at Oppenheimer, tgt $50
- OFG Bancorp (OFG) initiated with a Hold at Benchmark
- Pharvaris (PHVS) initiated with an Overweight at Wells Fargo, tgt $55
- Popular (BPOP) initiated with a Buy at Benchmark, tgt $201
- Radiant Logistics (RLGT) initiated with a Market Perform at Citizens
- Ring Energy (REI) initiated with a Buy at BofA Securities, tgt $2
- Rollins (ROL) initiated with a Neutral at Citigroup, tgt $46
- Ryder (R) initiated with a Market Perform at Citizens
- RXO (RXO) initiated with a Market Perform at Citizens
- Securitize (SECZ) initiated with a Buy at Rosenblatt, tgt $14
- Seaport Therapeutics (SPTX) initiated with a Buy at H.C. Wainwright, tgt $50
- SM Energy (SM) initiated with a Buy at UBS
- Tango Therapeutics (TNGX) initiated with an Overweight at JPMorgan, tgt $46
- U-Haul Holding (UHAL) initiated with a Market Outperform at Citizens, tgt $90
- UMB Financial (UMBF) initiated with an Overweight at Stephens, tgt $167
- UMC (UMC) reinstated with an Outperform at Macquarie
- Union Pacific (UNP) initiated with a Market Outperform at Citizens, tgt $350
- UPS (UPS) initiated with a Market Perform at Citizens
- Unusual Machines (UMAC) initiated with a Buy at H.C. Wainwright, tgt $42
- Veracyte (VCYT) initiated with an Overweight at Piper Sandler, tgt $66
- Veradermics (MANE) initiated with a Buy at B. Riley, tgt $170
- Wabash (WNC) initiated with a Market Outperform at Citizens, tgt $25
- XPO (XPO) initiated with a Market Perform at Citizens
- Econ Data (Thursday):
- 08:30 ET: July Philadelphia Fed Index (Briefing.com consensus: 11.0; prior 10.3)
- 08:30 ET: June Retail Sales (Briefing.com consensus: 0.3%; prior 0.9%) and Retail Sales, Ex-Auto (Briefing.com consensus: 0.1%; prior 0.8%)
- 08:30 ET: Weekly Initial Claims (Briefing.com consensus: 219K; prior 215K) and Continuing Jobless Claims (prior 1814K)
- 10:00 ET: May Business Inventories (Briefing.com consensus: 0.3%; prior 0.5%)
- 10:00 ET: July NAHB Housing Market Index (Briefing.com consensus: 37; prior 35)
- 10:00 ET: June Pending Home Sales (Briefing.com consensus: 0.4%; prior 3.8%)
- 10:30 ET: EIA Natural Gas Inventories (prior +61 bcf)
- Earnings:
- Monday (July 13)
- Pre-Market: FAST
- After-Hours: None
Tuesday (July 14)- Pre-Market: BAC C ERIC GS JPM WFC
- After-Hours: PXED
- Wednesday (July 15)
- Pre-Market: ASML BLK BNY CTAS CAG ELV FHN JNJ MTB MS PNC PGR
- After-Hours: HOMB JBHT UAL
- Thursday (July 16)
- Pre-Market: ABT CFG GE IIIN MAN PLD STT USB UNH TSM
- After-Hours: AA CNS FNB NFLX SFNC
- Friday (July 17)
- Monday: ALV FITB RF TRV TFC
- Afternoon: None