After Hours Report

The major averages finished lower today, as pronounced weakness across semiconductor stocks masked a considerably more balanced performance beneath the surface. The S&P 500 (-1.4%) and Nasdaq Composite (-2.2%) both retreated sharply, while the DJIA (-0.1%) spent the session near its flat line. Notably, the S&P 500 Equal Weight Index (-0.4%) finished with a much narrower loss than its market-weighted counterpart, highlighting the concentrated nature of today's weakness.

The pressure was most apparent in the semiconductor space, where the PHLX Semiconductor Index tumbled 7.9%. The selloff lacked a definitive company-specific catalyst but followed a nearly 10% overnight decline in South Korea's Kospi, driven in part by significant losses in SK Hynix and Samsung Electronics. Bloomberg also reported that South Korea's top financial regulator expressed regret over allowing several leveraged ETFs tied to the two companies to launch.

The overseas weakness spilled into U.S. chipmakers, particularly memory-related names. Sandisk (SNDK 1963.60, -310.13, -13.64%) and Micron (MU 1051.77, -159.61, -13.18%) were among the notable laggards, while equipment and analog names such as Lam Research (LRCX 371.33, -38.21, -9.33%) and onsemi (ON 116.97, -14.58, -11.08%) also endured heavy selling pressure. As a result, the information technology sector (-3.7%) finished as the weakest S&P 500 sector by a wide margin.

The Vanguard Mega Cap Growth ETF declined 2.1%, though weakness was not universal across large-cap technology stocks. IBM (IBM 264.94, +12.72, +5.04%) was the best-performing Dow component after JPMorgan upgraded the stock to Overweight from Neutral, while Microsoft (MSFT 373.94, +6.60, +1.80%) recovered some of yesterday's losses amid a decent day for software names.

Notably, SpaceX (SPCX 156.03, +1.43, +0.92%) bucked the trend and snapped a three-day skid after Bloomberg reported that the company is seeking to raise $25 billion through a bond offering. Demand for the deal appeared robust, with reports indicating orders approached $90 billion. The gain came after SPCX briefly dipped below its $150 debut price earlier in the session.

Elsewhere, electrical equipment names such as GE Vernova (GEV 1035.21, -92.38, -8.19%) and Vertiv (VRT 318.20, -39.76, -11.11%) moved lower in sympathy with semiconductor stocks, weighing on the industrials sector (-2.0%).

The consumer discretionary sector (-0.9%) also finished lower as Tesla (TSLA 381.53, -23.52, -5.81%) lagged and Carnival (CCL 28.72, -1.47, -4.87%) fell following an earnings report that included downside forward guidance.

Away from technology, the tone was noticeably more constructive. Six S&P 500 sectors finished higher, led by the consumer staples sector (+1.8%) as several food-related names rebounded from depressed levels.

The health care (+1.4%) and utilities (+0.8%) sectors also outperformed, while the real estate sector (+1.4%) continued its recent run of strength and remains the best-performing S&P 500 sector this week.

The defensive leadership coincided with a rise in volatility, as the CBOE Volatility Index climbed 12.4% to 19.43. Even so, lower oil prices and easing Treasury yields continued to support several rate-sensitive areas of the market.

Outside the S&P 500, the Russell 2000 (-1.0%) retreated from yesterday's all-time high levels, while the S&P Mid Cap 400 (-1.0%) logged a similar loss.

Despite the sharp decline in semiconductor stocks, today's session offered few signs of broad market stress. Participation remained relatively healthy beneath the surface, with six S&P 500 sectors finishing higher and the equal-weighted index significantly outperforming its market-weighted counterpart. The next test for the group arrives tomorrow evening with Micron's earnings report, which could help determine whether investors once again view weakness across semiconductor stocks as a buying opportunity.

U.S. Treasuries recorded modest gains on Tuesday, though intraday action turned into a sideways affair, leaving the complex near today's opening levels at the close. The late pullback included the front end, even though the U.S. Treasury sold $69 bln in 2-year notes to solid demand. The 2-year note yield settled down four basis points to 4.19%, and the 10-year note yield settled down two basis points to 4.49%. 

• Russell 2000: +19.9% YTD
• S&P Mid Cap 400: +14.0% YTD
• Nasdaqo Composite: +10.1% YTD
• S&P 500: +7.6% YTD
• DJIA: +7.5% YTD

Reviewing today's data:

• June S&P Global U.S. Manufacturing PMI - Prelim 55.7; Prior 55.1
• June S&P Global U.S. Services PMI - Prelim 51.3; Prior 50.7

Overseas:

• Europe: DAX -0.8%, FTSE -0.1%, CAC -0.7%
• Asia: Nikkei -3.6%, Hang Seng -1.8%, Shanghai -1.8%

Commodities:

• Crude Oil -1.91 @ 73.28
• Nat Gas -0.10 @ 3.15
• Gold -53.70 @ 4148.90
• Silver -3.52 @ 62.02
• Copper -0.22 @ 6.15

After-Hours Spotlight:

• Alphabet (GOOG/GOOGL) set to join and Honeywell International to remain in Dow Jones Industrial Average...GOOG +1.2%
• Cerebras Systems (CBRS) reports Q1 2026 results; announced multi-year deal with OpenAI...CBRS -8.7%
• FedEx (FDX) beats by $0.35, beats on revs; provides FY27 guidance...FDX -5.8%
• GameStop's (GME) Board of Directors grants request of CEO Ryan Cohen to amend company's proxy statement to remove the proposed CEO Performance Award...GME +0.4%
• Honeywell Aerospace (HONA) set to join S&P 500 & S&P 100; others to join S&P MidCap 400 and S&P SmallCap 600
• KB Home (KBH) misses by $0.02, beats on revs, deliveries decreased 23%; Guides for Q3 deliveries of 2,600-2,800 homes, narrows FY26 deliveries and housing revenue guidance...KBH +2.6%
• NIKE (NKE) announces CFO transition; David Denton will join company as Executive Vice President and Chief Financial Officer, effective August 17; expects Q4 results to include benefit from tariff refunds not contemplated in prior guidance; Excluding this benefit, sees Q4 results generally in-line with prior outlook...NKE +1.3%
• Worthington Enterprises (WOR) misses by $0.09, misses on revs...WOR -10.3%

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

• Earnings/Guidance (Full Earnings Calendar):
  • DTE Energy (DTE) reaffirms guidance for FY26 in presentation
  • Jiayin Group Inc. (JFIN) reports first quarter 2026 unaudited financial results
  • Primoris Services (PRIM) lowers FY26 guidance citing additional renewables cost overruns and delays; COO departs; announces new project awards
  • USA Compression Partners (USAC) releases presentation ahead of today's J.P. Morgan Natural Resources Conference; sees 2026 Adjusted EBITDA of $770-800 mln
• General News
  • President Trump says Iran "has fully and completely agreed to highest level nuclear inspections long into the future"
  • Israel struck Hezbollah gunmen in southern Lebannon. Times of Israel
  • South Korean stocks fall 10%. Bloomberg
  • The Trump administration has begun implementing large-scale job cuts at the office of the Director of National Intelligence. CNN
  • Japan's Finance Minister Satsuki Katayama says U.S. and Japan are more aligned on foreign exchange. Bloomberg
  • Supreme Court expected to rule on several cases over the next two weeks involving presidential power. WSJ
  • Senate passes housing affordability bill, which will reduce regulations to increase the supply of homes. The bill imposes limits on large institutional investors from purchasing single-family homes. The House will vote this week. NBC News
  • President Trump signed an executive order to supercharge U.S. innovation in quantum technologies and strengthen our national security in this critical area
  • President Trump signs executive order to secure against advanced cryptographic attacks
  • AbbVie (ABBV) and Enanta Pharma (ENTA) announce EU approva for Mavyret
  • AbbVie (ABBV) expands Skyrizi label to pediatric plaque psoriasis
  • Accenture (ACN) significantly increases fiscal year 2026 share repurchase program by $2 bln; to be completed by August 31, 2026, under existing Board authorization
  • AEVEX Corp (AVEX) secures $15.2 mln extension for California wildfire intelligence program
  • Alibaba's (BABA) Lazada unit to eliminate 5% of East Asian workforce. Straits Times
  • Allot Comms (ALLT) announced a share repurchase program of up to $40 Million of the Company’s ordinary shares
  • Alphabet (GOOG) and Energy Dome launch a new long-duration energy storage project
  • Amazon (AMZN): Judge rules that Amazon must collectively bargain with California warehouse workers. Bloomberg
  • AMC Entertainment (AMC) has entered into a definitive agreement with certain institutional investors for the purchase and sale of an aggregate of 95,250,000 shares of AMC common stock
  • A.O. Smith (AOS) announces Kevin J. Wheeler will retire as Executive Chairman, effective July 1, 2026
  • Apollo Debt Solutions (APO) BDC fund caps redemption request at 5% of shares outstanding
  • Armata Pharmaceuticals (ARMP) receives additional DoD funding for AP-SA02 program
  • Arvinas (ARVN) announces Dr. Berkowitz, Chief Medical Officer, will depart from the Company, effective July 3, 2026
  • Avis Budget (CAR) entered into Settlement and Release Agreement with Pentwater Capital Management to settle its pending lawsuit against Pentwater for the recovery of short-swing profits; Settlement amount is $650.0 mln in cash
  • Baker Hughes (BKR) announces award from ANOH Gas Processing Company to provide comprehensive lifecycle services and iCenter digital services for turbomachinery equipment
  • Bayer AG (BAYRY) unit advances WRN inhibitor into combination study for colorectal cancer
  • Best Buy (BBY) announces that CFO Matt Bilunas will step down and depart from company at end of July; Current CEO Corie Barry will provide financial oversight during transition to a new CFO
  • BP (BP) and others will face a lawsuit that says the companies used AI to boost California gas prices. Reuters
  • Brand Engagement Network (BNAI), Grupo Skye, and KNOBLOCH Information Group advance Skye Salud to Phase 2 Clinical Evaluation in Mexico
  • Clean Energy Fuels (CLNE) appoints Bart Frabotta as Chief Operating Officer
  • CME Group (CME) unchanged as its trading platform experiencing disconnects for some direct customers, according to Bloomberg
  • Comfort Systems (FIX) announces that Craig Sasser will be appointed as COO, effective July 1, 2026
  • CVR Energy (CVI) and CVR Partners announce Dane Neumann, Executive Vice President and Chief Financial Officer, has been promoted to the position of President and Chief Executive Officer, effective June 18, 2026
  • Domino's Pizza (DPZ): CEO Russell Weiner to retire; Joe Jordan appointed as new CEO, effective October 1, 2026
  • Eli Lilly (LLY): FDA allowed a patient to use LLY's retatrutide under the FDA's compassionate use program, according to Stat News
  • Gilead Sciences (GILD) announces that the European Commission has granted marketing authorization for Trodelvy as monotherapy for the treatment of adult patients with unresectable or metastatic triple-negative breast cancer who have not received prior systemic therapy for metastatic disease and are not candidates for PD-1 or PD-L1 inhibitor therapy
  • Guardian Pharmacy Services (GRDN) announces series of leadership changes, to take effect July 1, 2026
  • Heineken (HEINY) names Rafael Oliveira as next CEO
  • IBM (IBM) joins the OpenAI Daybreak Cyber Partner Program
  • JD.com (JD) executive believes robots will replace 700,000 delivery workers. FT
  • Keurig Dr Pepper (KDP) begins search for Global Coffee Co. CEO after Oliveira departure; reaffirms guidance
  • Korea Electric Power Corp (KEP) provided updates on arbitration regarding the operational support services contract for the UAE nuclear power plant project
  • Lending Club (LC) confirmed yesterday that it officially became Happen Bank and began yesterday trading on the Nasdaq Stock Market under the HAPN ticker
  • MacroGenics (MGNX) announces it will receive a $24.5 mln regulatory milestone payment from Sanofi following the U.S. Food and Drug Administration’s accelerated approval of TZIELD
  • MagnaChip Semi (MX) launches two new 6th-generation 600V Super Junction MOSFETs
  • MDU Resources' (MDU) subsidiary, Montana-Dakota Utilities Co., has entered into an electric service agreement with Applied Digital Corporation
  • Meta Platforms (META) ticking lower after pause of AI-powered training program following a recent data leak incident, according to Business Insider
  • Morgan Stanley (MS) mulling a new market for data center loans. The Information
  • Murphy Oil (MUR) announces oil discovery at the Bubale-1X exploration well located offshore Côte d’Ivoire
  • NiSource (NI) announces the Indiana Utility Regulatory Commission has approved key agreements supporting the company’s previously announced partnership with Amazon to serve new data center development in northern Indiana
  • Nissan (NSANY) stops work on the electric Qashqai. Reuters
  • NVE Corp (NVEC) announces that Daniel Baker, Ph.D. will retire as president and CEO; Appoints Peter Eames, Ph.D., currently vice president of advanced technology, as president and CEO
  • Oracle's (ORCL) workforce fell by 21,000. Reuters
  • Organon (OGN) launches denosumab biosimilars in Canada
  • Orchid Island Capital (ORC) announces an increase to its previously announced stock repurchase program for up to an additional 25,000,000 shares
  • PagerDuty (PD) announces Eric Prengel as Chief Financial Officer
  • Palantir Technologies (PLTR) announces that it secures a foundational role in NGC2 data layer for the U.S Army
  • Pfizer (PFE) Announces Topline Phase 3 Results for Sigvotatug Vedotin in Previously Treated Metastatic Non-Squamous Non-Small Cell Lung Cancer
  • Qnity Electronics (Q) launches Advanced Packaging Innovation Hub
  • QuidelOrtho (QDEL) announces the appointment of Micah Young as Chief Financial Officer, effective July 6, 2026
  • Rocket Lab USA (RKLB) launches Electron rocket and deploys its own Pioneer spacecraft
  • Sanofi (SNY) receives Japan approval for Wayrilz in immune thrombocytopenia
  • Sanofi (SNY) receives EU approval for first therapy targeting disability progression in non-relapsing SPMS
  • Seadrill Ltd (SDRL) extends its share repurchase program to run through December 31, 2026; As of June 19, 2026, approximately $208 mln of $500 mln authorized remained available for repurchase
  • Shopify (SHOP) to ban vapes from its platform. Reuters
  • SpaceX (SPCX) expected to lean on debt to finance growth. Bloomberg
  • TaskUs (TASK) announces appointment of Rishabh Khemka as Chief Financial Officer, effective June 19, 2026
  • TechnipFMC (FTI) has been awarded a significant contract to supply flexible flowlines and risers by Azule Energy for the Greater PAJ development
  • Teleflex (TFX) initiates enrollment in global BIOMAG-III Pivotal Trial of Freesolve Resorbable Magnesium Scaffold
  • Tesla (TSLA) & NatPower sign a strategic agreement for more than 25 GWh of Battery Energy Storage Systems in Europe
  • Titan America (TTAM) launches xForm3D concrete, its 3D-printable concrete technology designed to support next wave of digital, automated, and high-performance construction
  • TTM Tech (TTMI) announces opening of new Ultra-High-Density Interconnect printed circuit board manufacturing facility in Syracuse, New York
  • Workday (WDAY) will face a lawsuit over AI bias. Reuters
  • Xcel Energy (XEL) discloses that SPS, New Mexico Department of Justice, New Mexico Large Customer Group and other parties filed a comprehensive non-unanimous stipulation; affirms 2026 guidance
  • Zeta Global (ZETA) and Palantir Technologies announce partnership to build the enterprise AI infrastructure layer connecting operational intelligence, customer intelligence, and marketing execution
  • Zevra Therapeutics (ZVRA) announces publication of positive MIPLYFFA data from pediatric substudy in infants with niemann-pick disease type C

• Upgrades:
  • American Healthcare REIT (AHR) upgraded to Buy from Neutral at Citigroup, tgt $55
    
  • CDW (CDW) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $170
    
  • William Demant Holding (WILYY) upgraded to Overweight from Equal Weight at Morgan Stanley
    
  • GEA Group (GEAGY) upgraded to Equal Weight from Underweight at Morgan Stanley
    
  • IBM (IBM) upgraded to Overweight from Neutral at JPMorgan, tgt $291
    
  • Kone (KNYJY) upgraded to Buy from Hold at Kepler Cheuvreux
    
  • Qiagen (QGEN) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $42
    
  • Sonova (SONVY) upgraded to Equal Weight from Underweight at Morgan Stanley
    
  • Standard Chartered (SCBFF) upgraded to Buy from Hold at Deutsche Bank
    
  • Synopsys (SNPS) upgraded to Overweight from Neutral at Piper Sandler, tgt $550
    
  • Target (TGT) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $162
• Downgrades:
  • Darden (DRI) downgraded to In Line from Outperform at Evercore ISI, tgt $230
    
  • Five Below (FIVE) downgraded to Peer Perform from Outperform at Wolfe Research
    
  • Hermes (HESAY) downgraded to Hold from Buy at HSBC
    
  • Home Depot (HD) downgraded to Peer Perform from Outperform at Wolfe Research
    
  • Inspire Medical (INSP) downgraded to In Line from Outperform at Evercore ISI, tgt $40
    
  • L'Oréal (LRLCY) downgraded to Sell from Hold at Deutsche Bank
    
  • Nike (NKE) downgraded to In Line from Outperform at Evercore ISI, tgt $46
    
  • Primoris (PRIM) downgraded to Sector Weight from Overweight at KeyBanc
    
  • Ross Stores (ROST) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $245
    
  • Sabra Health Care (SBRA) downgraded to Neutral from Buy at Citigroup, tgt $19
    
  • Telenor (TELNY) downgraded to Underweight from Equal Weight at Barclays
    
  • Zions Bancorp (ZION) downgraded to Neutral from Outperform at Robert W. Baird, tgt $68
• Others:
  • Campbell's (CPB) initiated with a Market Perform at William Blair
    
  • Centene (CNC) initiated with a Sector Perform at RBC Capital, tgt $70
    
  • Factorial Energy (FAC) initiated with an Overweight at Cantor Fitzgerald, tgt $18
    
  • FedEx Freight (FDXF) initiated with a Buy at Jefferies, tgt $200
    
  • GE HealthCare (GEHC) initiated with an Outperform at RBC Capital, tgt $80
    
  • LP Building Solutions (LPX) initiated with a Buy at Jefferies, tgt $93
    
  • Moncler (MONRY) assumed with an Equal Weight at Morgan Stanley
    
  • Molina Healthcare (MOH) initiated with a Sector Perform at RBC Capital, tgt $216
    
  • Nicolet Bankshares (NIC) initiated with a Market Perform at Raymond James
    
  • Opus Genetics (IRD) initiated with an Outperform at RBC Capital, tgt $10
    
  • Permian Resources (PR) initiated with an Outperform at Evercore ISI, tgt $25
    
  • Quince Therapeutics (QNCX) initiated with an Overweight at Cantor Fitzgerald, tgt $4
    
  • Seres Therapeutics (MCRB) initiated with a Buy at H.C. Wainwright, tgt $12
    
  • SpaceX (SPCX) initiated with a Neutral at Susquehanna, tgt $170
    
  • Talen Energy (TLN) assumed with Hold at Jefferies, tgt $453
    
  • XCF Global (SAFX) initiated with a Buy at H.C. Wainwright, tgt $1

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior -3.8%)
  • 8:30 ET: Q1 Current Account Balance (Briefing.com consensus -$237.5 bln; prior -$190.7 bln)
  • 10:00 ET: May New Home Sales (Briefing.com consensus 627,000; prior 622,000)
  • 10:30 ET: Weekly crude oil inventories (prior -8.26 mln)

• Earnings:
  • Monday (June 22)
    • Pre-Market: FRVO
    • After-Hours: None
      
    Tuesday (June 23)
    • Pre-Market: CCL, KFY
    • After-Hours: FDX, KBH, WOR
      
  • Wednesday (June 24)
    • Pre-Market: PAYX
      
    • After-Hours: FUL, JEF, MU, MLKN, TCOM, WS
      
  • Thursday (June 25)
    • Pre-Market: AYI, BB, CMC, DRI, MKC, SNX, WGO
    • After-Hours: None
  • Friday (June 26)
    • Pre-market:APOG
    • After-Hours: None