After Hours Report

The stock market pulled back today as sharp losses in mega-cap and technology names outweighed strength in blue-chip stocks, which had briefly lifted the DJIA (flat) to a record high of 45,207.39 before retreating. The S&P 500 (-0.6%) also retreated today after a brief stint above its baseline, and the tech-heavy Nasdaq Composite (-1.5%) never saw positive territory.

Losses today were not particularly widespread. The information technology (-1.8%), communication services (-1.2%), consumer discretionary (-0.4%), and energy (-0.2%) sectors were the only sectors that retreated, but a clear trend of mega-cap underperformance had an outsized effect on the market.

The technology sector finished as the worst-performing S&P 500 sector, facing significant pressure in its largest chipmaker components, NVIDIA (NVDA 175.64, -6.37, -3.50%) and Broadcom (AVGO 294.91, -10.85, -3.55%), while Microsoft (MSFT 509.77, -7.33, -1.42%) and Apple (AAPL 230.56, -0.33, -0.14%) also lost ground. Today's losses trimmed the sector's month-to-date gains to a meager 0.2%.

A strong showing from Intel (INTC 25.31, +1.65, +6.97%), after news that Softbank Group made a $2 billion investment in the company, was not enough to markedly improve the technology sector or the PHLX Semiconductor Index, which finished with a 1.6% loss.

Weakness in Meta Platforms (META 751.48, -15.89, -2.07%) and Alphabet (GOOG 202.49, -1.80, -0.88%) kept the communication services sector below its baseline for the entirety of the session, while Tesla (TSLA 329.31, -5.85, -1.75%) and Amazon (AMZN 228.01, -3.48, -1.50%) erased an early gain in the consumer discretionary sector.

The Vanguard Mega Cap Growth ETF retreated 1.6%. Meanwhile, the S&P 500 Equal Weighted Index (+0.4%) outpaced the market-weighted S&P 500 (-0.6%).

Separately, the energy sector saw a modest loss as crude oil futures settled 1.6% lower at $61.77 per barrel.

While the major averages closed with losses after a steady retreat, a solid performances across several other sectors mitigated some of the pressure the mega-caps created. The real estate (+1.8%), utilities (+1.0%), consumer staples (+1.0%), health care (+0.4%), materials (+0.5%), financials (+0.2%), and industrials (+0.2%) sectors closed with gains.

Sector performance indicates a rotation in play. Money was taken off the table, but not all of it left the room. Investors turned to more defensive stocks ahead of Fed Chair Powell's Friday address at the Jackson Hole Symposium.

A proclivity to protect against risk today also left small-cap stocks overlooked, with the Russell 2000 retreating 0.9%.

Additionally, the DJIA (flat) outperformed the S&P 500 (-0.6%) and Nasdaq Composite (-1.5%), aided by the positive response to Home Depot's (HD 407.14, +12.44, +3.15%) earnings report, which featured an earnings miss but a reaffirmation of the fiscal year outlook. Lowe's (LOW 256.36, +5.47, +2.18%), Target (TGT 105.36, +0.41, +0.39%), and TJX (TJX 134.62, +1.56, +1.17%) are set to report their earnings before the open tomorrow.

On the geopolitical front, Politico reported that the White House is planning a trilateral meeting between Presidents Trump, Putin, and Zelensky in Budapest, though the market has still largely ignored developments on this topic.

U.S. Treasuries climbed on Tuesday, reclaiming their modest losses from the start of the week. The 2-year note yield settled down two basis points to 3.75%, and the 10-year note yield settled down four basis points to 4.30%.

• Nasdaq Composite: +10.4% YTD
• S&P 500: +9.0% YTD
• DJIA: +5.6% YTD
• S&P Mid Cap 400: +2.1% YTD
• Russell 2000: +2.1% YTD

Reviewing today's data:

• Housing starts increased 5.2% month-over-month in July to a seasonally adjusted annual rate of 1.428 million units (Briefing.com consensus: 1.311 million), with single-unit starts up 2.8% and multi-unit starts up 9.9%. Building permits decreased 2.8% month-over-month to a seasonally adjusted annual rate of 1.354 million units (Briefing.com consensus: 1.390 million), with single-unit permits up 0.5% and multi-unit permits down 8.2%.
  • The key takeaway from the report is that there wasn't much strength in single-unit starts or permits, which is relatively disappointing in the context of a housing market that needs more affordable, single-family homes for sale. In fact, single-unit starts were down in all regions except the South (+13.2%).

Overseas:

• Europe: DAX +0.5%, FTSE +0.3%, CAC +1.2%
• Asia: Nikkei -0.4%, Hang Seng -0.2%, Shanghai -0.3%

Commodities:

• Crude Oil -0.98 @ 61.77
• Nat Gas -0.12 @ 2.79
• Gold -19.30 @ 3358.90
• Silver -0.69 @ 37.34
• Copper -0.05 @ 4.42

After-Hours Spotlight:

• Alcon (ALC) beats by $0.04, misses on revs; reaffirms FY25 EPS guidance, guides FY25 revs below consensus... ALC -6%
• Jack Henry (JKHY) beats by $0.17, beats on revs; guides FY25 EPS above consensus, revs above consensus...JKHY +1.7%
• La-Z-Boy (LZB) misses by $0.06, reports revs in-line; guides OctQ revs below consensus...LZB -19.8%
• Toll Brothers (TOL) beats by $0.13, beats on revs, Deliveries up 5%; Issues Q4 guidance, including Deliveries of 3,350 units...TOL -0.4%

Fair Value for Tuesday, August 19:

• S&P 500: 6,431
• Nasdaq 100: 23,465
• DJIA: 44,997

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

• Earnings/Guidance (Full Earnings Calendar):
  • Adecoagro S.A. (AGRO) reports Q2 results
  • Amer Sports (AS) beats by $0.04, beats on revs; raises FY25 EPS above consensus, revs above consensus
  • BHP Group (BHP) reports FY25 results
  • Fabrinet (FN) beats by $0.01, beats on revs; guides Q1 EPS in-line, revs in-line
  • Home Depot (HD) misses by $0.04, reports revs in-line; reaffirms FY26 EPS guidance, revs guidance
  • Medtronic (MDT) beats by $0.03, beats on revs; raises FY26 EPS above consensus; announces Board appointments and shareholder value creation initiatives to advance strategic priorities
  • Palo Alto Networks (PANW) beats by $0.06, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus
  • Premier (PINC) beats by $0.12, beats on revs; guides FY26 EPS in-line, revs in-line
  • SFL Corporation (SFL) beats by $0.06, reports revs in-line
  • Viking Holdings Ltd (VIK) reports EPS in-line, beats on revs
  • XP (XP) beats by $0.07, beats on revs
  • XPeng (XPEV) reports Q2 results; beats on revs; sees Q3 revs in-line
• General News
  • President Trump says he had a good meeting with Ukraine and Europe; says will setup meeting between Putin & Zelenskyy and then a trilateral meeting; says discussed security guarantees for Ukraine
  • Secretary of State Marco Rubio will draft security guarantees for Ukraine, according to WSJ
  • Ukraine offered to purchase $100 billion in U.S. weapons as part of deal for security guarantees, according to FT
  • U.S. 'AA+/A-1+' sovereign ratings affirmed at S&P; Outlook remains stable on steady, albeit high, deficits; says "expects meaningful tariff revenue to generally offset weaker fiscal outcomes"
  • French President Emmanuel Macron doesn't believe Russian President Putin is ready for peace in Ukraine, according to NBC News interview
  • White House planning trilateral meeting between presidents of U.S, Russia, and Ukraine in Budapest, according to Politico
  • OpenAI in discussions to sell shares to investors, which would value the company at $500 billion, according to NY Times
  • 3D Systems (DDD) CFO Jeffrey D. Creech to step down
  • AbbVie (ABBV) completes its acquisition of Capstan Therapeutics
  • Accenture (ACN) has acquired Superdigital, financial terms of the transaction were not disclosed
  • Adobe (ADBE) introduces Acrobat Studio, a new AI-powered home for productivity and creativity with PDF spaces
  • AEye (LIDR) signs strategic cooperation agreement with Black Sesame Technologies; Partnership marks milestone in company's expansion into mainland China
  • Alamo Group (ALG) names Robert Hureau as CEO, effective September 2
  • Aldeyra Therapeutics (ALDX) announces that the U.S. FDA has granted fast track designation for ADX-2191 for the treatment of retinitis pigmentosa
  • Align Tech (ALGN) files patent infringement litigation against Angelalign Technology
  • Alphabet (GOOG) mulling changes to Play Store to avoid EU fine, according to Bloomberg
  • Altimmune (ALT) announces that the U.S. FDA has granted Fast Track designation to pemvidutide for the treatment of Alcohol Use Disorder
  • Altria (MO): FDA denies marketing for blu disposable E-cigarette
  • Anheuser-Busch InBev (BUD) continues to deliver on recent $300 million commitment to American manufacturing jobs
  • Apple (AAPL): Director of National Intelligence Tulsi Gabbard says "UK has agreed to drop its mandate for Apple to provide a "back door" that would have enabled access to the protected encrypted data of American citizens and encroached on our civil liberties."
  • Apple (AAPL) expands India iPhone production, according to Bloomberg
  • ARKO Corp. (ARKO) announces that CFO Robb Giammatteo will depart company to pursue a new opportunity outside the convenience store sector
  • Arm Holdings plc (ARM) hires Amazon AI chip director to strengthen internal chip push, according to Reuters
  • Astrotech (ASTC) announces it has appointed Nihanth Badugu as Chief Operating Officer
  • BHP Group (BHP): President Trump says he will will appeal ruling that delayed Arizona copper mine
  • BlackSky Technology (BKSY) signs seven-figure space domain awareness expansion contract with HEO
  • Bristol-Myers (BMY): Health Canada approves dual immunotherapy OPDIVO Plus YERVOY for colorectal and liver cancers
  • Butterfly Network (BFLY) announces its role in the international research study CAD LUS4TB that will evaluate the impact of AI-assisted point-of-care ultrasound on tuberculosis triage in under-resourced settings
  • Confluent (CFLT) unlocks scalable real-time agentic AI with streaming agents
  • CoreCivic (CXW) appoints Patrick Swindle to President and CEO, effective January 1, 2026
  • Crinetics Pharmaceuticals (CRNX): FDA grants orphan drug approval for treatment of congenital adrenal hyperplasia
  • CSX (CSX): Toms Capital wants meeting with CSX, according to Reuters
  • CSX (CSX): Ancora Holdings wants CSX to pursue a deal with a rival or replace its CEO, according to WSJ
  • CSX (CSX): Ancora releases letter to CSX’s Board regarding the need to avert a permanent impairment of value and aggressively pursue a value-maximizing merger
  • Diginex Limited (DGNX) announces 7 to 1 stock-split paid as bonus shares
  • Empire Petroleum (EP) announces extension of previously announced rights offering to August 20, 2025
  • Enlight Renewable Energy Ltd. (ENLT) announced private placement of ordinary shares
  • First Majestic Silver (AG) reports positive exploration results at San Dimas
  • FirstService (FSV) announces normal course issuer bid for up to 1,600,000 common shares (3.9% of the public float)
  • Ford Motor (F) and SK On want buyers for excess battery supply amid weakening demand for EVs, according to Bloomberg
  • Frontier Group Holdings (ULCC) in partnership with Loyalty Status Co has announced an exclusive offer for members of select loyalty programs with other airlines so they can experience the premium perks of FRONTIER Miles, the most rewarding loyalty program in the sky
  • Geo Group (GEO) disclosed appeals court update; intends to file with the Court of Appeals a motion to stay the issuance
  • GE Vernova (GEV) plans new $41 million, 50 job investment in Schenectady to expand gas power capacity
  • GrafTech International (EAF) announces 1-for-10 reverse stock split of common stock
  • Greenwich LifeSciences (GLSI) announced its plan to build out its internal clinical trial management and operations team
  • Hagerty's (HGTY) Broad Arrow Auctions reports that it saw no less than eight new record auction prices set at its annual flagship Monterey Jet Center sale
  • Hershey Foods (HSY) names Huong Maria T. Kraus as Chairman
  • HomeStreet (HMST) and Mechanics Bank receive regulatory approvals for pending merger
  • Intel (INTC): Commerce Secretary Howard Lutnick confirms U.S. in discussions to use Chips Act funding to purchase 10% stake in Intel; U.S. government will be non-voting shareholders - CNBC interview
  • Intel (INTC) and SoftBank Group (SFTBY) sign $2 bln investment agreement
  • Iovance’s (IOVA) Amtagvi (lifileucel) Receives Health Canada Approval for Advanced Melanoma
  • Keros Therapeutics (KROS): FDA grants orphan drug approval for treatment of Duchenne muscular dystrophy
  • KULR Technology (KULR) announces strategic partnerships with Molicel, a subsidiary of publicly traded Taiwan Cement, and Amprius Technologies (AMPX) to power its new KULR ONE Air product line
  • Live Nation (LYV): Last night, FTC took action against ticket resellers for using illegal tactics to bypass ticket limit protections in violation of Better Online Ticket Sales Act
  • Lotus Technology (LOT) entered into a securities purchase agreement with ATW Partners, under which the Company agreed to issue and sell convertible notes for up to an aggregate principal amount of $300 mln that will be convertible into ordinary shares of the Company in the form of American depositary shares of the Company
  • Medtronic (MDT) aims to add directors amid pressure from Elliott, according to WSJ
  • Mercury (MRCY) announces a new production agreement with AeroVironment (AVAV) to support the U.S. Space Force’s Satellite Communication Augmentation Resource program
  • Mereo BioPharma (MERO): ashibio announces an exclusive licensing agreement with Mereo BioPharma
  • Meta Platforms (META) to split AI division into four units as Zuckerberg reshapes strategy amid internal turmoil, according to NYT
  • Natural Grocers (NGVC) will close its Austin – Arbor Walk location, at 10515 N. MoPac Expressway, on Oct. 2, 2025
  • Newegg Commerce (NEGG) disclosed increase in authorized shares to be sold under Sales Agreement; also disclosed update on shareholder loan foreclosure
  • Novo Nordisk A/S (NVO) & BioMed X launch new collaboration in oral peptide drug delivery
  • Novo Nordisk A/S (NVO): Health Canada approves Ozempic® to reduce the risk of sustained eGFR decline, end-stage kidney disease, and cardiovascular death in adults with type 2 diabetes and chronic kidney disease Français
  • Nvidia (NVDA) working on new artificial intelligence chip for China, according to Reuters
  • Old Republic (ORI) authorizes share repurchase program
  • Opthea Ltd. (OPT) provided a corporate update following the successful settlement of the Development Funding Agreement ("DFA") with the two investors under the DFA
  • OptimizeRx (OPRX) announces leadership team advancements to accelerate strategic growth
  • Palo Alto Networks (PANW) founder, CTO Nir Zuk retires; names Lee Klarich as new CTO
  • Pediatrix Medical Group (MD) announces $250 mln share repurchase program
  • Pfizer (PFE) Canada and BioNTech announce that Health Canada has authorized the LP.8.1 Variant
  • PTC Therapeutics (PTCT) receives complete response letter for Vatiquinone NDA
  • REGENXBIO (RGNX) announces that the FDA extended its review timeline of the Biologics License Application for clemidsogene lanparvovec (RGX-121) for the treatment of Hunter syndrome
  • Robinhood Markets (HOOD) launches Pro and College football prediction markets
  • Rocket Lab USA (RKLB) announces that its scheduled to launch its next dedicated mission on Electron this weekend
  • RTX (RTX): State Department has made a determination approving a possible Foreign Military Sale to the Government of Australia of Javelin Lightweight Command Launch Unit and related equipment for an estimated cost of $97.3 mln
  • RTX Raytheon (RTX) unit signs MOU with Diehl Defence for Stinger missile co-production
  • Sabre (SABR) and oneworld Alliance renew PRISM partnership
  • S&P Global (SPGI) and Maestro have announced a strategic partnership to deliver enhanced portfolio monitoring capabilities for private equity firms and their portfolio companies
  • SS&C Techs (SSNC) increases its annual common stock dividend by 8% to $1.08 per share
  • Shein (PDD) mulls moving back to Hong Kong, according to Bloomberg
  • Solowin Holdings (SWIN) acquires stake in Singapore MPI-licensed firm to accelerate global payment network expansion
  • Sportradar Group AG (SRAD) strengthens Bundesliga International relationship with launch of innovative new products starting 2025-26 season
  • Sprouts Farmers Market (SFM) announces $1 billion share repurchase authorization
  • T1 Energy (TE) discloses in filing that it has reassessed its presentation of amortization of intangible assets related to certain acquired customer contracts
  • TAT Technologies (TATT) signs contract with international commercial carrier to provide MRO services for the GTCP331-500 Auxiliary Power Unit used on Boeing 777 platform
  • Teleflex (TFX) announced Barrigel rectal spacer is now available for purchase in Japan, effective immediately following regulatory approval, insurance coverage acceptance and appropriate use criteria issuance by Japanese academic societies
  • Tesla (TSLA) starts taking new orders in China for Model Y L vehicle, according to Reuters
  • Tyler Tech (TYL) announces that the Oklahoma Department of Labor has selected Tyler’s State Regulatory Platform Suite cloud solution, powered by Amazon Web Services, to improve its regulatory system
  • Vale S.A. (VALE) discloses in filing that emergency level of Forquilha III dam has been reduced from level 3 to level 2
  • Veradigm (MDRX) appoints Don Trigg as CEO and Board member, effective as of September 2, 2025
  • Viasat (VSAT) receives AUD252 mln award to expand SouthPAN Program in Australia and New Zealand
  • Viking Therapeutics (VIK) announces positive top-line results from the company's Phase 2 clinical trial of the oral tablet formulation of VK2735, the company's dual agonist of the glucagon-like peptide 1 and glucose-dependent insulinotropic polypeptide receptors
  • Waldencast plc (WALD) provides update on H1 buisness priorities; undertakes strategic review
  • Whirlpool (WHR) cuts quarterly dividend to $0.90 per share, down from prior dividend of $1.75 per share
  • WNS (WNS) announces proxy advisory firms ISS and Glass Lewis recommend shareholders vote for proposed acquisition by Capgemini (CGEMY)
  • Workday (WDAY) and DailyPay announce that DailyPay has been selected as Workday's Strategic Partner for On-Demand Pay in the United States and Canada
  • W.R. Berkley (WRB) announces the formation of Berkley Edge, a new business dedicated to providing professional liability and casualty insurance for small to mid-sized businesses
  • YPF Soc. Anonima (YPF) approved changes in organizational structure, effective as of August 19, 2025; CFO resigned
  • Zai Lab (ZLAB) Announces China National Medical Products Administration Grants Innovative Medical Device Designation for Tumor Treating Fields for Patients with Pancreatic Cancer

• Upgrades:
  • Aveanna (AVAH) upgraded to Neutral from Sell at UBS, tgt $8
  • Aveanna (AVAH) upgraded to Overweight from Equal Weight at Barclays, tgt $9.50
  • Broadstone Net Lease (BNL) upgraded to Overweight from Sector Weight at KeyBanc, tgt $20
  • Caterpillar (CAT) upgraded to Outperform from In Line at Evercore ISI, tgt $476
  • Crown Castle (CCI) upgraded to Outperform from Market Perform at BMO Capital, tgt $120
  • Gilead (GILD) upgraded to Outperform from Neutral at Daiwa, tgt $128
  • Global Net Lease (GNL) upgraded to Overweight from Sector Weight at KeyBanc, tgt $9
  • Live Oak Bancshares (LOB) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $43
  • Palo Alto Networks (PANW) upgraded to Buy from Neutral at BofA Securities, tgt $215
  • Prologis (PLD) upgraded to Outperform from Neutral at Mizuho, tgt $118
  • Target Hospitality (TH) upgraded to Buy from Hold at Stifel, tgt $11
  • Thomson Reuters (TRI) upgraded to Outperformer from Neutral at CIBC
• Downgrades:
  • EPR Properties (EPR) downgraded to Sector Weight from Overweight at KeyBanc
  • Femsa (FMX) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $97
  • Li Auto (LI) downgraded to Market Perform from Outperform at Bernstein, tgt $26
  • Prairie Operating (PROP) downgraded to Neutral from Overweight at Piper Sandler, tgt $3
  • Rein Therapeutics (RNTX) downgraded to Hold from Buy at Brookline
• Others:
  • Amber Road (AMBR) initiated with a Buy at Clear Street, tgt $11
  • Bicara Therapeutics (BCAX) initiated with an Overweight at Piper Sandler, tgt $36
  • Blackstone Secured Lending Fund (BXSL) initiated with a Buy at Lucid Capital, tgt $32
  • CG Oncology (CGON) initiated with an Overweight at Piper Sandler, tgt $55
  • Day One Biopharmaceuticals (DAWN) initiated with an Overweight at Piper Sandler, tgt $25
  • First Financial Bancorp (FFBC) initiated with an Outperform at Hovde Group
  • FS KKR Capital (FSK) initiated with a Neutral at Lucid Capital, tgt $18
  • Genfit (GNFT) assumed with a Buy at H.C. Wainwright, tgt $9
  • Hesai (HSAI) initiated with a Buy at UBS, tgt $35
  • Janux Therapeutics (JANX) initiated with an Overweight at Piper Sandler, tgt $42
  • LoanDepot (LDI) initiated with a Neutral at BTIG Research
  • Main Street (MAIN) initiated with a Neutral at Lucid Capital, tgt $60
  • Nuvalent (NUVL) initiated with an Overweight at Piper Sandler, tgt $112
  • Ondas (ONDS) initiated with a Buy at Needham, tgt $
  • Ralliant (RAL) initiated with a Sector Perform at RBC Capital, tgt $47
  • Rocket Companies (RKT) initiated with a Buy at BTIG Research, tgt $25
  • Revolution Medicines (RVMD) initiated with an Overweight at Piper Sandler, tgt $75
  • Summit Therapeutics (SMMT) initiated with a Neutral at Piper Sandler, tgt $21
  • Thermo Fisher (TMO) initiated with an Outperform at William Blair
  • Tango Therapeutics (TNGX) initiated with an Overweight at Piper Sandler, tgt $11
  • UroGen Pharma (URGN) initiated with an Overweight at Piper Sandler, tgt $36
  • Valneva (VALN) assumed with a Buy at H.C. Wainwright, tgt $18
  • Vertiv (VRT) initiated with a Sell at GLJ Research, tgt $112

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 10.9%)
  • 10:30 ET: Weekly crude oil inventories (prior +3.04 mln)
  • 14:00 ET: July FOMC Minutes

• Earnings:
  • Monday (Aug 18)
    • Pre-Market: BTDR, RSKD
    • After-Hours: FN PANW XP
      
    Tuesday (Aug 19)
    • Pre-Market: AS HD MDT PINC VIK
    • After-Hours: JKHY JHX KEYS LZB SQM TOL ZTO
      
  • Wednesday (Aug 20)
    • Pre-Market: ALC ADI BIDU DY EL GDS KC LOW TGT TJX
      
    • After-Hours: COTY NDSN
      
  • Thursday (Aug 21)
    • Pre-Market: BILI CSIQ SCSC HOV MZTI WMT
    • After-Hours: INTU ROST WDAY ZM
  • Friday (Aug 22)
    • Pre-Market: BJ BKE
    • After-Hours: None