After Hours Report

Updated: 15-Oct-26 17:18 ET

J.B. Hunt Transport trucks lower after earnings

The stock market staged an impressive recovery from early losses on Thursday, with broad-based buying interest helping the major averages finish higher despite continued weakness in semiconductor and other technology stocks. The S&P 500 (+0.3%), Nasdaq Composite (+0.1%), and DJIA (+1.1%) all ended in positive territory after a difficult start, while the Russell 2000 (+1.4%) and S&P Mid Cap 400 (+1.0%) outperformed as strength extended well beyond the largest companies.

The strength beneath the surface was particularly encouraging, with the S&P 500 Equal Weight Index jumping 1.3%, substantially outperforming its market-cap-weighted counterpart. That divergence reflected considerable buying interest across the broader market, which provided an important counterweight to technology weakness throughout the session and helped sustain the recovery as investors stepped back into beaten-down semiconductor stocks during the afternoon.

Technology stocks faced another wave of selling at the open as investors continued to question the financing of the massive AI infrastructure buildout, particularly the reliance on debt to fund expansion. Concerns about growing competition from Chinese memory chipmakers also weighed on sentiment, while Taiwan Semiconductor Manufacturing's (TSM 422.55, -7.45, -1.73%) better-than-expected quarterly results and above-consensus revenue guidance failed to provide an immediate lift to the semiconductor group. The PHLX Semiconductor Index fell as much as 4.4% before recovering to finish just 0.9% lower, suggesting that bargain hunting emerged after the group's recent sharp retreat.

The information technology sector (-0.5%) also recovered considerably after falling nearly 2% in early trading. Dell (DELL 474.06, -33.87, -6.67%) and Hewlett Packard Enterprise (HPE 58.63, -4.48, -7.10%) remained notable exceptions, finishing as the S&P 500's worst-performing components as selling pressure carried over from yesterday. The Vanguard Mega Cap Growth ETF (-0.2%) also staged a substantial recovery, although NVIDIA (NVDA 217.23, -4.07, -1.84%) remained among the mega-cap laggards.

CoreWeave (CRWV 69.69, +3.91, +5.94%) offered one of the clearest examples of the shift in sentiment. Shares opened sharply lower following a 15% plunge on Wednesday amid mounting concerns about the company's debt-funded expansion plans and reports of distress in its unsecured debt. However, the stock reversed course and moved firmly higher after Bloomberg reported that NVIDIA CEO Jensen Huang believes CoreWeave's financial position is improving and does not require a financial backstop. The turnaround helped ease some of the pressure surrounding AI infrastructure names, even as questions about financing costs and the sustainability of aggressive capital spending persisted.

Outside of technology, buying interest remained widespread, although leadership shifted somewhat as the session progressed. The health care sector (+1.8%) finished atop the leaderboard despite surrendering some of its earlier gains as semiconductor stocks recovered in the afternoon. The consumer staples sector (+0.4%) was an even starker example of the trend, giving back much of an advance that had exceeded 2% earlier in the session as buying interest shifted toward other areas.

Meanwhile, the financials sector (+1.4%) maintained its strength throughout the day, supported by gains among insurance-related companies and financial publishing stocks. Coinbase Global (COIN 183.81, +10.92, +6.32%) was also among the S&P 500's best-performing components.

Strength also extended to consumer-oriented and rate-sensitive stocks, with the consumer discretionary sector (+1.2%) outperforming despite a relatively subdued showing from most mega-cap names. Homebuilders and other housing-related companies benefited from the substantial decline in Treasury yields, with the iShares U.S. Home Construction ETF jumping 4.0%. Retailers also attracted buying interest, reflected in a 3.7% gain in the SPDR S&P Retail ETF, while NIKE (NKE 37.14, +1.84, +5.21%) rebounded sharply from its recent 52-week lows.

The improvement in the interest rate backdrop provided an additional source of support for the broader market. Treasuries attracted safe-haven buying interest early in the session as technology stocks sold off, and yields remained sharply lower across the curve even as equities recovered. The decline helped relieve some of the pressure that elevated borrowing costs have placed on rate-sensitive groups, particularly housing and mortgage-related stocks.

That Treasury strength was especially notable given another round of concerning inflation data. Wednesday's September CPI report was followed by this morning's hotter-than-expected PPI release, which showed headline producer price inflation accelerating to 6.3% year-over-year from 5.6%, while core PPI increased to 5.0% from 4.8%. The report reinforced concerns about persistent inflation but did little to materially alter expectations for an October Fed rate hike. Nevertheless, Treasury yields finished lower across the curve.

One area that failed to participate in the broader recovery was the energy sector (-1.6%), which gave back some of its recent outperformance despite a sizable increase in crude oil prices. WTI crude futures settled $2.81 higher (+3.0%) at $97.92 per barrel, while the utilities sector (-0.2%) also finished modestly lower.

Ultimately, Thursday's session was defined by the breadth of the recovery and investors' willingness to step into beaten-down semiconductor and AI-related stocks. Although the technology group remained under pressure, its substantial rebound from early lows, combined with strong gains across the broader market, pointed to a considerably healthier underlying market than the major averages initially suggested.

U.S. Treasuries recorded strong gains on Thursday, extending their midweek rebound from post-CPI lows. The 2-year note yield settled down five basis points to 4.75%, and the 10-year note yield settled down 10 basis points to 5.09%.

Nasdaq Composite: +14.9% YTD
S&P 500: +13.1% YTD
Russell 2000: +11.5% YTD
S&P Mid Cap 400: +10.4% YTD
DJIA: +8.6% YTD

Reviewing today's data:

Sep PPI 1.3% (Briefing.com consensus 0.5%; Prior 0.5% revised from 0.4%)
Sep Core PPI 0.7% (Briefing.com consensus 0.3%; Prior 0.2%)
Retail sales jumped 0.8% month-over-month in September (Briefing.com consensus: 0.3%) following an upwardly revised 1.3% (from 1.2%) in August. Excluding autos, retail sales rose 0.9% (Briefing.com consensus 0.3%) after increasing 1.4% in August.
- The key takeaway from the report is that there was continued strength across many discretionary spending categories that wasn't just driven by higher prices. Spending at food services and drinking places, for instance, was up 1.1% after increasing 1.4% in August.
Sep Retail Sales, ex-auto 0.9% (Briefing.com consensus 0.3%; Prior 1.4%)
Initial jobless claims for the week ending October 10 increased by 1,000 to 199,000 (Briefing.com consensus: 200,000). Continuing jobless claims for the week ending October 3 decreased by 4,000 to 1.710 million.
- The key takeaway from the report continues to be that it signals low layoff activity, which is a reflection of a solid demand environment.
Oct Empire State Manufacturing 25.5 (Briefing.com consensus 7.0; Prior 7.6)
Oct Philadelphia Fed Index 20.9 (Briefing.com consensus 29.0; Prior 37.8)
Aug Business Inventories 0.4% (Briefing.com consensus 0.4%; Prior 0.9% revised from 0.8%)
10/10 EIA Natural Gas Inventories +67 bcf (Prior +85 bcf)

Overseas:

Europe: DAX +0.3%, FTSE +1.1%, CAC +0.8%
Asia: Nikkei -4.9%, Hang Seng -1.0%, Shanghai -1.6%

Commodities:

Crude Oil +2.81 @ 97.92
Nat Gas +0.04 @ 3.23
Gold +61.70 @ 4169.70
Silver +1.23 @ 57.16
Copper -0.10 @ 6.56

After-Hours Spotlight:

Some investors lower Anthropic IPO valuation expectations following Q3 results, according to Reuters
Alcoa (AA) beats by $0.31, misses on revs; provides FY26 guidance...AA +1.6%
Cohen & Steers (CNS) reports EPS in-line, beats on revs...CNS +5.8%
Interactive Brokers (IBKR) reports EPS in line, beats on revs...IBKR -0.4%
J.B. Hunt Transport (JBHT) beats by $0.01, beats on revs...JBHT -2.8%
Prudential (PRU) discloses certain preliminary financial information regarding the quarter ended September 30, 2026...PRU flat
Simmons First National (SFNC) reports EPS in-line, misses on revs...SFNC +0.1%
SITE Centers (SITC) sells DTP JV interests, declares $3.00/share special cash distribution...SITC +15.3%
Strata Critical Medical (SRTA): Third Point discloses 5.8% stake in Strata Critical Medical...SRTA +4.8%

Today's News Summary:

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

Earnings/Guidance (Full E arnings Calendar):
- BNY Mellon (BNY) beats by $0.07, beats on revs
- Charles Schwab (SCHW) beats by $0.04, reports revs in-line
- Commercial Metals (CMC) beats by $0.14, beats on revs; provides Q1 (Mar) and FY26 guidance
- Ericsson (ERIC) beats by SEK0.31, beats on revs
- First Horizon (FHN) beats by $0.01; lowers FY26 adjusted revenue growth outlook, maintains flat expense guidance
- FMC (FMC) Corp guides Q3 revenue well below expectations partly due to commercial actions to lower the price of select products held by channel customers
- Home Bancshares (HOMB) beats by $0.01, misses on revs
- Kimberly-Clark (KMB) says that FY26 outlook remains consistent with prior expectations, including organic sales growth being approximately 100 bps below its weighted average category growth
- Main Street Capital (MAIN) issues downside NII per share guidance for Q3
- Manpower (MAN) reports EPS in-line, misses on revs; provides Q4 (Dec) guidance
- Marsh McLennan (MRSH) beats by $0.06, beats on revs
- Plug Power (PLUG) remains on track with 2026 revenue growth guidance, supported by continued margin improvement and a record low net cash usage of approximately $28M
- PNC (PNC) beats by $0.18, reports revs in-line; raises FY26 revenue and NII guidance
- Prologis (PLD) beats by $0.03, beats on revs; guides FY26 FFO in-line
- Taiwan Semiconductor Manufacturing (TSM) beats by $0.14, beats on revs; guides Q4 revs above consensus
- U.S. Bancorp (USB) beats by $0.02, reports revs in-line
General News
- The White House is considering new ways to acquire Bitcoin through federal fund inflows to expand the U.S. Strategic Bitcoin Reserve, according to Binance
- San Francisco Fed President Mary Daly sees further rate hikes as likely but signals no urgency, according to Reuters
- The U.S. has developed plans to use the "mother of all bombs" to target Iranian nuclear sites and energy infrastructure if President Trump decides to do so before or after the midterms. CNN
- A cargo ship sank in the Strait of Hormuz after an air strike. Bloomberg
- Republicans privately concluded it is likely impossible to keep control of the House and will instead focus resources on maintaining the Senate majority. Politico
- France's presidential candidate Jean-Luc Melenchon vowed to cancel hundreds of billions of France's national debt and pull out of NATO. WSJ
- Global technology stocks fall amid inflation fears. FT
- U.S. Ambassador to India Sergio Gor says the U.S. and India are close to finalizing a trade agreement. Bloomberg
- Ukrainian President Volodymyr Zelenskyy orders new attacks on Russian oil refineries. Bloomberg
- U.S. officials say they had nothing to do with Starlink's (SPCX) service distributions, but Ukraine is suspicious. Axios
- Canada says its government has the power to force Cleveland Cliffs to sell its assets. Bloomberg
- FTC sends subpoenas to OpenAI and Anthropic due to consumer harm concerns. Axios
- Accenture (ACN), Microsoft partner with UMass Memorial on multi-year Azure and AI data platform overhaul
- Adlai Nortye (ANL) enters Lilly (LLY), Merck KGaA cetuximab collaboration for AN4035 Phase I study
- AIR (AIIR) to initiate annual dividend at $0.28/share for FY27 and authorize up to $100 mln buyback
- An OpenAI employee sent confidential device files to Apple (AAPL). FT
- Anthropic told investors that Q3 revenue reached $16.8 bln (XLK, NVDA, MSFT, GOOG, GOOGL, METS, CRWV). Bloomberg (XLK)
- AstraZeneca (AZN) partners with insitro on AI-enabled drug discovery for MASH and cardiomyopathies
- CoreWeave (CRWV) yields top 15%. Bloomberg
- EQT (EQT) Corp. increases quarterly cash dividend by 3% to $0.17/share
- Genius Sports (GENI) partners with X to power NFL Gametime with official real-time data
- GXO Logistics (GXO) and Action expand partnership in France
- Hamilton Lane (HLNE) names Hartley Rogers co-CEO alongside Juan Delgado-Moreira; Erik Hirsch becomes executive co-chairman
- Labcorp to buy select BioReference Health assets from OPKO (OPK) for $722 mln cash plus up to $150 mln earnout
- LegalZoom (LZ) partners with USAA to offer member discounts on legal products
- Legend Biotech (LEGN) announces U.S. FDA clearance of IND application for LB2501, an investigational CD19/CD20 In Vivo CAR-T therapy
- Leonardo DRS (DRS) wins 10-year NASA SEWP VI prime contract
- Lincoln Electric (LECO) approves a 10% increase in quarterly cash dividend to $0.87/share
- Lockheed Martin (LMT) to invest $300 mln to expand Texas munitions manufacturing, add 6,000 U.S. jobs
- ManpowerGroup (MAN) names Becky Frankiewicz CEO effective Jan. 1; Jonas Prising to become executive chair
- MIAX Bloomberg equity index futures go live on NinjaTrader (MIAX)
- MSC Industrial (MSM) increases quarterly dividend to $0.89/share from $0.87/share
- NeoGenomics (NEO) expands Indica Labs partnership to scale AI-driven digital pathology
- NVIDIA (NVDA) CEO Jensen Huang says his company “absolutely must” work with Chinese AI companies on safety, according to CNBC
- QumulusAI (NVDA) says all 11.75 MW of contracted capacity is sold; signed customer contracts top $500 mln
- Redwire (RDW) wins $13.8 mln in additional National Guard Stalker UAS orders
- Riley Exploration Permian (REPX) increases dividend by 5% to $0.42
- Rockwell Automation (ROK), Hitachi Energy partner on grid-to-process industrial electrification
- ServisFirst Bancshares (SFBS) authorizes inaugural stock buyback of up to 2M shares
- SK Hynix (SKHY) conditioned U.S. factory on additional exports to China. Reuters
- SM Energy (SM) sees Q3 net derivative settlement loss of about $207 mln – 8-K filing
- UBS (UBS) considering moving out of Switzerland amid concerns about capital rules. WSJ
- Vanda (NVS) says Phase III VQW-765 study in social anxiety disorder missed primary endpoint; program put on hold
- YouTube (GOOG, GOOGL) mulling expansion into audiobooks. WSJ (GOOG)

Upgrades:
- ArcelorMittal (MT) upgraded to Overweight from Neutral at JPMorgan
- Array Technologies (ARRY) upgraded to Outperform from Neutral at Mizuho, tgt $5
- Bank of America (BAC) upgraded to Outperform from Neutral at Baird, tgt $62
- BorgWarner (BWA) upgraded to Buy from Neutral at BofA, tgt $85
- Brighthouse Financial (BHF) upgraded to Neutral from Underweight at JPMorgan, tgt $55
- CarMax (KMX) upgraded to Buy from Underperform at BofA, tgt $65
- Casey's General Stores (CASY) upgraded to Outperform from Sector Perform at RBC Capital, tgt $825
- Cemex (CX) upgraded to Buy from Neutral at Citi, tgt $12
- Crocs (CROX) upgraded to Overweight from Equal Weight at Barclays, tgt $139
- Fortrea (FTRE) upgraded to Buy from Hold at Deutsche Bank, tgt $25
- Lithium Americas (LAC) upgraded to Speculative Buy from Hold at Canaccord
- Quantinuum (QNT) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $62
- Scotts Miracle-Gro (SMG) upgraded to Buy from Neutral at UBS, tgt $70
- Walmart (WMT) upgraded to Buy from Hold at Deutsche Bank, tgt $136
- Zions Bancorp (ZION) upgraded to Outperform from Neutral at Baird, tgt $75
Downgrades:
- Albertsons (ACI) downgraded to Neutral from Overweight at JPMorgan, tgt $14
- Albertsons (ACI) downgraded to Neutral from Buy at Goldman Sachs, tgt $13
- Align Technology (ALGN) downgraded to Neutral from Outperform at Baird, tgt $162
- Cirrus Logic (CRUS) downgraded to Sector Weight from Overweight at KeyBanc
- Dauch (DCH) downgraded to Underperform from Buy at BofA, tgt $5
- Envista (NVST) downgraded to Neutral from Outperform at Baird, tgt $26
- Par Pacific (PARR) downgraded to Neutral from Buy at Goldman Sachs, tgt $94
- Spotify (SPOT) downgraded to Hold from Buy at StoneX
- ZTO Express (ZTO) downgraded to Neutral from Buy at Goldman Sachs, tgt $22
Others:
- AngloGold Ashanti (AU) initiated with a Buy at Goldman Sachs, tgt $104
- Antero Resources (AR) initiated with a Sector Outperform at Scotiabank, tgt $46
- APA Corp. (APA) initiated with a Sector Perform at Scotiabank, tgt $44
- Black Hills (BKH) initiated with a Buy at Jefferies, tgt $87
- Bright Minds Biosciences (DRUG) initiated with an Outperform at Wolfe Research, tgt $150
- CAMP4 Therapeutics (CAMP) initiated with a Buy at Needham, tgt $8
- Chord Energy (CHRD) initiated with a Sector Outperform at Scotiabank, tgt $192
- CNX Resources (CNX) initiated with a Sector Perform at Scotiabank, tgt $34
- Crescent Energy (CRGY) initiated with a Sector Outperform at Scotiabank, tgt $18
- CRISPR Therapeutics (CRSP) initiated with a Neutral at UBS, tgt $52
- Devon Energy (DVN) initiated with a Sector Outperform at Scotiabank, tgt $61
- Diamondback Energy (FANG) initiated with a Sector Outperform at Scotiabank, tgt $250
- Digital Turbine (APPS) resumed with a Buy at Roth Capital, tgt $19
- Eloxx Pharmaceuticals (ELOX) initiated with an Overweight at Cantor Fitzgerald
- EOG Resources (EOG) initiated with a Sector Perform at Scotiabank, tgt $144
- EQT Corporation (EQT) initiated with a Sector Perform at Scotiabank, tgt $54
- Establishment Labs (ESTA) initiated with a Buy at Stifel, tgt $85
- Fidelity National Information Services (FIS) resumed with a Buy at BofA, tgt $42
- First Financial Bankshares (FFIN) initiated with a Market Perform at Raymond James
- Fiserv (FISV) resumed with an Underperform at BofA, tgt $48
- Global Payments (GPN) resumed with a Buy at BofA, tgt $114
- Gold Fields (GFI) initiated with a Neutral at Goldman Sachs, tgt $38
- Gulfport Energy (GPOR) initiated with a Sector Outperform at Scotiabank, tgt $217
- HawkEye 360 (HAWK) initiated with an Overweight at Piper Sandler, tgt $22
- Hemab Therapeutics (COAG) initiated with an Overweight at JPMorgan, tgt $70
- Infinity Natural Resources (INR) initiated with a Sector Outperform at Scotiabank, tgt $17
- Magnolia Oil & Gas (MGY) initiated with a Sector Outperform at Scotiabank, tgt $31
- Matador Resources (MTDR) initiated with a Sector Perform at Scotiabank, tgt $59
- MGE Energy (MGEE) initiated with a Neutral at JPMorgan, tgt $76
- Murphy Oil (MUR) initiated with a Sector Perform at Scotiabank, tgt $41
- Netflix (NFLX) assumed with a Buy at Jefferies, tgt $85
- Northern Oil and Gas (NOG) initiated with a Sector Perform at Scotiabank, tgt $27
- onsemi (ON) initiated with a Buy at StoneX, tgt $110
- Ovid Therapeutics (OVID) initiated with an Outperform at Wolfe Research, tgt $5
- Permian Resources (PR) initiated with a Sector Outperform at Scotiabank, tgt $29
- Rapport Therapeutics (RAPP) initiated with an Outperform at Wolfe Research, tgt $50
- Rapport Therapeutics (RAPP) initiated with a Buy at UBS, tgt $71
- Redwire (RDW) initiated with a Neutral at Piper Sandler, tgt $11
- Shift4 Payments (FOUR) resumed with a Neutral at BofA, tgt $42
- Sight Sciences (SGHT) initiated with a Buy at H.C. Wainwright, tgt $14
- SM Energy (SM) initiated with a Sector Perform at Scotiabank, tgt $39
- Solid Biosciences (SLDB) initiated with a Buy at UBS, tgt $20
- Spectrum Brands (SPB) resumed with a Buy at UBS, tgt $97
- Suja Life (SUJA) initiated with a Hold at Needham
- Ultragenyx (RARE) initiated with a Neutral at UBS, tgt $16
- Vail Resorts (MTN) initiated with a Market Perform at Citizens
- Versant Media (VSNT) initiated with an Equal Weight at Morgan Stanley, tgt $38
- Viking Therapeutics (VKTX) initiated with a Buy at UBS, tgt $94
- Viper Energy (VNOM) initiated with a Sector Outperform at Scotiabank, tgt $54
- Warner Music Group (WMG) initiated with a Buy at StoneX
- Wave Life Sciences (WVE) initiated with a Buy at UBS, tgt $11
- York Space Systems (YSS) initiated with a Neutral at Piper Sandler, tgt $9

Econ Data (Friday):
- 8:30 ET: September Import Prices (prior 0.7%), Import Prices ex-oil (prior 0.8%), Export Prices (prior 0.6%), and Export Prices ex-agriculture (prior 0.7%)
- 9:15 ET: September Industrial Production (Briefing.com consensus 0.4%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 76.5%; prior 76.3%)
- 16:00 ET: August Net Long-Term TIC Flows (prior -$27.9 bln)

Earnings:
- Monday (October 12)
  - Pre-Market: None
  - After-Hours: None
- Tuesday (October 13)
  - Pre-Market: ACI, C, DPZ, GS, JNJ, JPM, UNH, WFC
  - After-Hours: AZZ
- Wednesday (October 14)
  - Pre-Market: ASML, BAC, BLK, FAST, MS, PGR, STT
  - After-Hours: HOMB
- Thursday (October 15)
  - Pre-Market: BNY, CMC, ERIC, FHN, MAN, MRSH, PLD, PNC, SCHW, USB
  - After-Hours: AA, CNS, IBKR, JBHT, SFNC
- Friday (October 16)
  - Pre-market: CFG, MTB, RF, TFC, TRV
  - Afternoon: None

After Hours Report

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