After Hours Report
A lack of major developments on the trade front coupled with a balance between small-cap and mid-cap outperformance and mega-cap underperformance kept the major averages within a tight range of flat opening levels following yesterday's consolidation activity.
After signing an executive order officially postponing the July 9 trade deadline, President Trump said there will be no extensions past August 1 for countries that got letters yesterday and for countries that will receive letters today, tomorrow, and for the next short period of time.
Commerce Secretary Howard Lutnick said in a CNBC interview that the EU has made "significant real offers" to open up markets to the U.S., though initial reports now suggest that the EU will receive a letter from the Trump administration in the coming days.
Altogether, the developments on the trade front were in line with expectations and did little to sway the broader markets, though President Trump's actions today did have some sector-specific impacts.
Copper prices surged and copper futures settled up $0.56, or 11.2%, at $5.58/lb after President Trump announced a 50% tariff on copper that will likely start August 1. Shares of Freeport-McMoRan (FCX 46.29, +1.16, +2.57%) traded sharply higher following the announcement, and helped the materials sector (+0.8%) emerge as one of the best performers.
Oil companies in the top-performing energy sector (+2.7%) benefitted from President Trump signing an Executive Order to eliminate subsidies for "green" energy sources like wind and solar "in furtherance of the One Big Beautiful Bill Act."
ConocoPhillips (COP 95.65, +3.10, +3.35%), Chevron (CVX 152.93, +5.53, +3.75%), and Exxon Mobil (XOM 114.14, +3.03, +2.73%) all captured gains following the order and in conjunction with an increase in oil prices that saw crude oil futures settle up 0.5% to $68.30 per barrel.
Though the market as a whole traded relatively flat throughout the session, there were some noticeable trends that kept the major averages stable.
Notably, small-cap and mid-cap stocks outperformed the mega-caps, as the Russell 2000 (+0.7%) and the S&P Midcap 400 (+0.5%) outperformed the S&P 500 (-0.1%), while the Vanguard Mega Cap ETF (-0.15%) lagged. Positive breadth figures in which advancers outpaced decliners by a nearly 2:1 ratio on the NYSE and the Nasdaq further evidenced this trend.
The financials sector (-0.9%) was among the weakest performers due in part to its mega-cap components, as HSBC downgraded JPMorgan Chase (JPM 282.66, -9.31, -3.2%), Bank of America (BAC 47.14, -1.52, -3.1%), and Goldman Sachs (GS 697.04, -13.88, -2.0%).
Tesla (TSLA 297.81, +3.87, +1.32%) rebounded from yesterday's unfavorable press, but a poor performance from top component Amazon (AMZN 219.33, -4.14, -1.9%) kept the consumer discretionary sector (-0.6%) out of positive territory following reports that Amazon's initial prime day sales were down 14% from last year's figure.
Additionally, underperformance from Apple (AAPL 210.01, +0.06, +0.0%) and Microsoft (MSFT 496.62, -1.10, -0.2%) stifled further gains in the technology sector (+0.4%) despite an impressive showing from chip stocks that saw the PHLX Semiconductor Index close with a 1.8% gain, nearly negating yesterday's loss of 1.9%.
U.S. Treasuries saw some modest selling pressure today, most of which occurred ahead of the cash session. The cash session was dictated by little change across the curve despite a relatively weak 3-yr note auction and talk of more tariffs (and tariff letters) coming soon. A New York Fed survey showing a downtick in short-term inflation expectations, though, offered a measure of support in conjunction with a prevailing belief that better trade deals will ultimately be announced and that tariffs for major trading partners will be less onerous than feared.
The market will look to further developments on the trade front and the release of FOMC minutes tomorrow in hopes of shaking its relatively sluggish start to the week.
- S&P 500: +5.9% YTD
- Nasdaq: +5.7% YTD
- DJIA: +4.0% YTD
- S&P 400: +1.6%YTD
- Russell 2000: -0.1% YTD
Reviewing today's economic data:
- June NFIB Small Business Optimism Index held fairly steady at 98.6 (prior 98.8)
- The high yield of 3.891% at the $58 bln 3-yr note auction tailed the when-issued yield of 3.887% on weak demand from indirect bidders
- May Consumer Credit $5.1 bln following a downwardly revised $16.9 bln (from $17.9 bln) in April.
- The increase was driven entirely by nonrevolving credit, which was up $8.6 bln.
Overseas:
- Europe: DAX +0.5%, FTSE +0.5%, CAC +0.6%
- Asia: Nikkei +0.3%, Hang Seng +1.1%, Shanghai +0.7%
Commodities:
- Crude Oil +0.34 @ 68.30
- Nat Gas -0.06 @ 3.37
- Gold -24.80 @ 3317.40
- Silver -0.09 @ 36.81
- Copper +0.56 @ 5.58
After-Hours Spotlight:
- AES (AES): company exploring options, including possible sale, amid takeover interest from large investment firms, according to Bloomberg... AES up 13.9%
- Aehr Test Systems (AEHR) reports Q4 results; seeing order delays due to tariff-related uncertainty, particularly in Q1 (Aug)... AEHR down 19.6%
- Apple (AAPL) announces that Jeff Williams will transition his role of COO later this month to Sabih Khan, company's Senior Vice President of Operations as part of a long-planned succession... AAPL flat
- Cogent Biosciences (COGT) announces proposed $150 million public offering of common stock... COGT down 1.3%
- Kura Sushi USA (KRUS) Announces Fiscal Third Quarter 2025 Financial Results... KRUS up 1.9%
- Mattel (MAT) announces that Barbie is debuting the first Barbie doll with type 1 diabetes... MAT flat
- Mobileye Global (MBLY) commences secondary public offering of 45 mln shares of common stock by Intel Overseas Funding Corporation; Company also agrees to purchase from selling stockholder $100 mln of common stock at a price per share equal to the per share purchase price to be paid by the underwriters in the offering; issues upside Q2 revenue guidance... MBLY down 1.8%
- Penguin Solutions (PENG) beats by $0.15, misses on revs; raises FY25 EPS above consensus, revs in-line... PENG down 7.6%
- RxSight (RXST) issues downside Q2 revenue guidance, lowers FY25 revenue guidance... RXST down 35.2%
- Vertical Aerospace Group (EVTL) files for $60 mln ordinary share offering... EVTL down 18.9%
Fair Value for Wednesday, July 9:
- S&P 500: 6,271
- Nasdaq 100: 22,894
- DJIA: 44,504
For a full rundown of today's market and after hours developments, see Live In Play
- Earnings/Guidance (Full Earnings Calendar):
- Air Lease provides Q2 update
- Biogen (BIIB) discloses in filing that it expects GAAP and non-GAAP 2Q25 results will include acquired in-process research and development, upfront and milestone expense of approximately $46 mln on a pre-tax basis
- Daimler Truck Holding AG (DTRUY) updates financial targets at investor day
- DTE Energy (DTE) in presentation slides issues inline FY25 EPS guidance, capex guidance
- Endeavour Silver (EXK) produces 1,483,736 oz silver and 7,755 oz gold (2.5 million silver equivalent oz) in Q2 2025
- Exxon Mobil (XOM) provides items that it expects to impact 2Q25 results relative to 1Q25 results
- Gray Media (GTN) updates second quarter 2025 guidance and provides an update on certain developments during the quarter
- Merit Medical (MMSI) names Martha Aronson as CEO; also guides Q2 revs above consensus
- Plymouth Industrial REIT (PLYM) provides activity update for second quarter 2025
- Samsung (SSNLF) provides Q2 guidance update
- Super Group (SGHC) raises FY25 revenue guidance following Q2 expected to be co's strongest quarter in its history; co also to exit US iGaming
- General News
- White House confirms tariff rates effective August 1: Japan & South Korea at 25%; South Africa at 30%, Indonesia at 32%, Bangladesh at 35%, Thailand & Cambodia at 36%; President Trump extends tariff deadline to August 1 from July 9, and says he may send more letters to trading partners in the coming days and weeks
- The Trump administration offered the EU a trade deal that would keep tariffs at the baseline level of 10%, according to Politico
- President Trump says the August 1 tariff deadline is "not 100% firm," and he is open to negotiations, according to Bloomberg
- President Trump unveils tariff letters on various countries, according to Bloomberg
- China threatens to retaliate against countries that strike deals with U.S., according to Reuters
- EU wants a tariff exemption for spirits and aircraft, according to Bloomberg
- South Korea plans to fix regulations to address demands from the Trump administration following tariff threats, according to Bloomberg
- Department of Defense is sending additional defensive weapons to Ukraine
- President Trump signed an executive order "to eliminate subsidies for unreliable green energy sources like wind and solar in furtherance of the One Big Beautiful Bill Act"
- Airbus (EADSY): EU nears US trade deal aimed at shielding Airbus, german carmakers from steep tariffs, according to Bloomberg
- Amazon (AMZN) Prime Day expected to generate $12.9 bln in revenue, according to WSJ
- Apple (AAPL) lost a top artificial intelligence executive, according to Bloomberg
- AppLovin unit (APP), Wurl, collaborates with Prime Video to launch new live TV channel in Germany
- Arrowhead Pharmaceuticals (ARWR) Initiates Phase 3 YOSEMITE Study of Investigational Zodasiran for the Treatment of Homozygous Familial Hypercholesterolemia
- BioSig Technologies (BSGM) and Streamex Exchange Corporation agree to up to $1.1 bln in growth financing to launch gold backed treasury management strategy and to rapidly expand RWA Tokenization for the commodities markets
- BP (BP) and NOC sign MoU to explore redevelopment of giant Libyan oilfields and unconventional potential
- Brookdale Senior Living (BKD) reports June 2025 occupancy
- Caris Life Sciences (CAI) announces new study demonstrating the power and clinical utility of its Caris Assure Blood-Based Assay for Multi-Cancer Early Detection, Minimal Residual Disease and Therapy Selection
- CervoMed (CRVO) Announces Late-Breaking Presentations at Alzheimer’s Association® International Congress 2025
- CVS Health (CVS) Omnicare unit will have to pay $949 mln over alleged invalid prescriptions, according to Reuters
- DXP Enterprises (DXPE) announces amendment of ABL Revolver; Increases size of ABL from $135 million to $185 million Continues to align capital structure with actions to support strategy
- Eastman Kodak (KODK) says "Kodak is expanding in pharma with a new FDA-registered cGMP facility in ROC, producing critical components & reagents for medical testing."
- Endava (DAVA) announces changes to its executive team
- EssilorLuxottica (ESLOY): Meta (META) aiming to purchase stake in ESLOY, according to Bloomberg
- Eton Pharmaceuticals (ETON) receives FDA Acceptance of NDA for ET-600
- Eupraxia (EPRX) Doses First Patient in Phase 2b Placebo-Controlled Portion of EP-104GI RESOLVE Trial in Eosinophilic Esophagitis
- Faraday Future Intelligent Electric (FFAI) launches early reservation portal for Faraday X Official FX Super One B2C Pre-order Portal
- Fluence (FLNC) selected for 300 MW / 600 MWh Wellington Battery Energy Storage System for AMPYR Australia
- Franklin Electric (FELE) appoints Jennifer Wolfenbarger as CFO
- GE Vernova (GEV) to modernize key cross-border grid hub for TransnetBW in Germany
- Granite (GVA) announces CM/GC project at San Francisco International Airport
- Grupo Aeroportuario Del Sureste (ASR) announces that total passenger traffic for June 2025 reached a total of 6.0 million passengers, representing a decrease of 1.8% compared to June 2024
- HIVE Digital Technologies (HIVE) reports 18% increase in Bitcoin production
- Honeywell (HON) to evaluate strategic alternatives for productivity solutions and services and warehouse and workflow solutions businesses
- ImmunityBio (IBRX) receives approval for ANKTIVA plus BCG from UK MHRA
- Intel (INTC) to cut over 500 jobs in Oregon as part of broader layoffs affecting 20% of workforce, according to Bloomberg
- Larimar Therapeutics (LRMR) Publishes Nonclinical Data Supporting the Therapeutic Potential of Nomlabofusp in Patients with Friedreich’s Ataxia
- Martin Marietta (MLM) names Michael Petro as CFO, effective immediately
- Nanobiotix (NBTX) announces regulatory harmonization and new patent filing for JNJ-1900
- Novartis (NVS) receives Swissmedic approval for first malaria medicine for newborn babies and young infants
- Rio Tinto (RIO): Incoming Rio Tinto executive open to M&A and cost cuts, according to Reuters
- Robinhood (HOOD) in discussions with regulators over tokenized equities, according to Bloomberg
- RTX (RTX): President Trump at cabinet meeting says that RTX and IBM (IBM) will bid to modernize air tariff control systems following passage of reconciliation bill that included funding for that purpose
- The Bancorp (TBBK) increases buyback program by $500 mln
- Upstream Bio (UPB) Announces First Patient Dosed in Phase 2 Clinical Trial of Verekitug in Chronic Obstructive Pulmonary Disease
- Vistra Corp. (VST) receives approval from the Nuclear Regulatory Commission to extend the operation of its 1,268-megawatt Perry Nuclear Power Plant through 2046, an additional 20 years beyond its original license
- Upgrades:
- Argenx (ARGX) upgraded to Buy from Hold at Deutsche Bank
- Artelo Biosciences (ARTL) upgraded to Buy from Hold at D. Boral Capital, tgt $20
- Bank OZK (OZK) upgraded to Outperform from Market Perform at Raymond James, tgt $58
- Cadence Bank (CADE) upgraded to Overweight from Neutral at Piper Sandler, tgt $42
- Capital One (COF) upgraded to Buy from Hold at TD Cowen, tgt $258
- Cullen/Frost (CFR) upgraded to Outperform from Market Perform at Raymond James, tgt $150
- First Interstate (FIBK) upgraded to Equal Weight from Underweight at Barclays, tgt $32
- General Dynamics (GD) upgraded to Buy from Hold at Deutsche Bank, tgt $342
- KeyCorp (KEY) upgraded to Buy from Neutral at UBS, tgt $22
- National Vision (EYE) upgraded to Overweight from Equal Weight at Barclays, tgt $30
- Parsons (PSN) upgraded to Strong Buy from Market Perform at Raymond James, tgt $90
- PNC Financial (PNC) upgraded to Outperform from Market Perform at Raymond James, tgt $220
- SolarEdge (SEDG) upgraded to Sector Weight from Underweight at KeyBanc
- Southwest Gas (SWX) upgraded to Buy from Hold at Jefferies, tgt $82
- Stanley Black & Decker (SWK) upgraded to Peer Perform at Wolfe Research
- Sunrun (RUN) upgraded to Sector Weight from Underweight at KeyBanc
- Truist Financial (TFC) upgraded to Outperform from Market Perform at Raymond James, tgt $50
- UWM Holdings (UWMC) upgraded to Overweight from Equal Weight at Barclays, tgt $6
- Vertiv (VRT) upgraded to Buy from Hold at Melius Research, tgt $165
- Downgrades:
- Bank of America (BAC) downgraded to Hold from Buy at HSBC, tgt $51
- BrightSpire Capital (BRSP) downgraded to Underweight from Equal Weight at Barclays, tgt $5
- BWX Technologies (BWXT) downgraded to Hold from Buy at Deutsche Bank, tgt $150
- CACI (CACI) downgraded to Market Perform from Outperform at Raymond James
- Ciena (CIEN) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $70
- Comerica (CMA) downgraded to Market Perform from Outperform at Raymond James
- CoreWeave (CRWV) downgraded to Hold from Buy at Stifel, tgt $115
- CoreWeave (CRWV) downgraded to Neutral from Outperform at Mizuho, tgt $150
- Datadog (DDOG) downgraded to Sell from Neutral at Guggenheim, tgt $105
- Enphase Energy (ENPH) downgraded to Hold from Buy at TD Cowen, tgt $45
- First Financial (THFF) downgraded to Market Perform from Outperform at Raymond James
- First Hawaiian (FHB) downgraded to Underweight from Equal Weight at Barclays, tgt $298
- Goldman Sachs (GS) downgraded to Reduce from Hold at HSBC, tgt $627
- Jasper Therapeutics (JSPR) downgraded to Sector Perform from Outperform at RBC Capital, tgt $5
- Jasper Therapeutics (JSPR) downgraded to Market Perform from Outperform at BMO Capital, tgt $4
- JPMorgan (JPM) downgraded to Reduce from Hold at HSBC, tgt $259
- KLA Corp. (KLAC) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $920
- Newmont (NEM) downgraded to Neutral from Buy at Goldman, tgt $60.90
- Northrop Grumman (NOC) downgraded to Hold from Buy at Deutsche Bank, tgt $542
- Shake Shack (SHAK) downgraded to Hold from Buy at Loop Capital, tgt $127
- TPI Composites (TPIC) downgraded to Hold from Buy at TD Cowen, tgt $1
- United Community (UCB) downgraded to Market Perform from Outperform at Raymond James
- Others:
- AeroVironment (AVAV) initiated with an Overweight at Cantor Fitzgerald, tgt $335
- Airo Group (AIRO) initiated with a Buy at BTIG Resesarch, tgt $26
- Airo Group (AIRO) initiated with an Overweight at Cantor Fitzgerald, tgt $35
- Airo Group (AIRO) initiated with an Outperform at Mizuho, tgt $31
- Alcoa (AA) resumed with a Buy at Citigroup, tgt $42
- AppLovin (APP) initiated with an Outperform at Scotiabank, tgt $430
- Applied Optoelectronics (AAOI) initiated with a Peer Perform at Wolfe Research
- Arista Networks (ANET) initiated with an Outperform at Wolfe Research
- Amdocs (DOX) initiated with an Outperform at Wolfe Research
- Axon (AXON) initiated with an Outperform at Wolfe Research
- Bilibili (BILI) initiated with an Outperform at Bernstein, tgt $28
- Bluerock Homes Trust (BHM) initiated with a Buy at Colliers, tgt $15
- Calix (CALX) initiated with a Peer Perform at Wolfe Research
- Chime (CHYM) initiated with an Outperform at Keefe Bruyette, tgt $42
- Circle (CRCL) initiated with an Underperform at Mizuho, tgt $85
- Cisco (CSCO) initiated with a Peer Perform at Wolfe Research
- CSG Systems (CSGS) initiated with a Peer Perform at Wolfe Research
- Coherent (COHR) initiated with an Outperform at Wolfe Research
- CommScope (COMM) initiated with a Peer Perform at Wolfe Research
- Copart (CPRT) initiated with an Equal Weight at Stephens, tgt $50
- Corning (GLW) initiated with an Outperform at Wolfe Research
- Fabrinet (FN) initiated with a Peer Perform at Wolfe Research
- F5 Networks (FFIV) initiated with an Outperform at Wolfe Research
- Flutter Entertainment (FLUT) resumed with a Buy at Jefferies, tgt $380
- Harmonic (HLIT) initiated with an Underperform at Wolfe Research
- HP Enterprise (HPE) initiated with a Peer Perform at Wolfe Research
- Kratos Defense (KTOS) initiated with an Overweight at Cantor Fitzgerald, tgt $60
- Lumentum (LITE) initiated with an Outperform at Wolfe Research
- Maze Therapeutics (MAZE) initiated with an Outperform at Wedbush, tgt $17
- Motorola Solutions (MSI) initiated with a Peer Perform at Wolfe Research
- NBT Bancorp (NBTB) assumed with a Neutral at Piper Sandler, tgt $47
- Novocure (NVCR) initiated with a Buy at Ladenburg, tgt $30
- Owlet (OWLT) initiated with a Buy at Lucid Capital, tgt $15
- PLBY Group (PLBY) initiated with a Buy at Lucid Capital, tgt $3
- Pursuit Attractions (PRSU) initiated with a Buy at Lucid Capital, tgt $45
- Radware (RDWR) initiated with an Outperform at Wolfe Research
- TJX (TJX) initiated with an Outperform at Daiwa, tgt $133
- Vital Farms (VITL) initiated with an Outperform at Mizuho, tgt $45
- WW International (WW) initiated with a Buy at Lucid Capital, tgt $60
- Econ Data (Wednesday):
- 07:00 ET: MBA Mortgage Applications Index (prior 2.7%)
- 10:00 ET: May Wholesale Inventories (Briefing.com consensus: -0.3%; prior 0.2%)
- 10:30 ET: EIA Crude Oil Inventories (prior +3.845M)
- 13:00 ET: $39 bln 10-yr note reopening
- 14:00 ET: FOMC Minutes for June 17-18 meeting
- Earnings:
- Monday (July 7)
- Pre-Market: None
- After-Hours: None
- Pre-Market: None
- After-Hours: PENG
- Wednesday (July 9)
- Pre-Market: AZZ
- After-Hours: None
- Pre-Market: AZZ
- Thursday (July 10)
- Pre-Market: CAG DAL HELE SMPL
- After-Hours: LEVI PSMT WDFC
- Friday (July 11)
- Pre-Market: None
- After-Hours: None
- Monday (July 7)
