After Hours Report

The S&P 500 (-0.7%), Nasdaq Composite (-0.8%), and DJIA (-0.7%) finished lower today, pressured by rising yields and weakness across mega-cap stocks.

The communication services (-1.6%) and consumer discretionary (-1.3%) sectors were hindered by weak leadership across their largest components, including Alphabet (GOOG 384.90, -8.21, -2.09%) and Amazon (AMZN 259.34, -5.52, -2.08%). The Vanguard Mega Cap Growth ETF finished 0.9% lower, contributing to losses at the index level.

Notably, the information technology sector (-0.7%) finished with a more modest loss despite early-session weakness. Semiconductor names opened with a continuation of yesterday's decline, though buyers began stepping in late in the morning. The PHLX Semiconductor Index (flat) reversed a significant early drop and climbed as much as 1.5% at its intraday highs, helping the major averages briefly approach their flatlines. Memory names such as Sandisk (SNDK 1383.29, +50.28, +3.77%) and Micron (MU 698.74, +17.20, +2.52%) led the advance, while Intel (INTC 110.80, +2.63, +2.43%) also notched a nice gain.

Session highs did not hold, however, and the major averages finished firmly lower.

Other laggards include the materials sector (-2.3%), which posted the widest loss as nearly all of its components traded lower. Construction materials names such as DuPont (DD 46.56, -2.08, -4.28%) and CRH Plc. (CRH 98.53, -4.86, -4.70%) were among the weakest performers as another rise in Treasury yields pressured rate-sensitive and cyclical areas tied to housing and construction demand.

The iShares U.S. Home Construction ETF finished 1.5% lower.

Builders FirstSource (BLDR 66.39, -3.79, -5.40%) was a notable laggard in the industrials sector (-1.2%), while asset managers, which are sensitive to higher interest rates through their impact on market levels and assets under management, also came under pressure alongside broader weakness in the financials sector (-1.2%).

Meanwhile, strength was concentrated across more defensive holdings. The health care sector (+1.1%) captured a nice gain, with its largest component Eli Lilly (LLY 1021.59, +33.50, +3.39%) rebounding nicely from yesterday's slide, while the utilities sector (+1.0%) captured a similar gain.

The real estate (+0.5%) and consumer staples (+0.4%) sectors notched more modest gains.

The energy sector (+1.0%) finished as one of the top performers as oil reversed earlier losses. The morning was relatively quiet on the geopolitical front, but reports that the U.S. and Iran remain far apart in negotiations began to trickle in later in the session. Crude oil futures settled today's session near their best levels, $0.16 lower (-0.2%) at $108.59 per barrel.

Outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-1.0%) underperformed amid the weakness in growth stocks and upward pressure on Treasury yields.

Overall, today's session highlighted continued sensitivity to interest rates and mega-cap leadership, with defensive sectors providing stability while growth stocks and cyclicals remained under pressure. Going forward, the market remains focused on whether rising yields will continue to cap upside momentum or whether investors step in with a more meaningful buy-the-dip bid across recent market leaders.

U.S. Treasuries extended their recent losses on Tuesday, lifting yields to fresh highs for the year with the 30-year yield reaching a level not seen in almost 20 years. The 2-year note yield settled up three basis points to 4.12%, the 10-year note yield settled up four basis points to 4.67%, and the 30-year note yield settled up three basis points to 5.18%.

• Nasdaq Composite: +11.3% YTD
• Russell 2000: +10.7% YTD
• S&P Mid Cap 400: +8.0% YTD
• S&P 500: +7.4% YTD
• DJIA: +2.7% YTD

Reviewing today's data:

• Pending Home Sales rose 1.4% month-over-month in April (Briefing.com consensus 1.6%) while the March increase was revised up to 1.7% from 1.5%.

Overseas:

• Europe: DAX +0.5%, FTSE +0.1%, CAC -0.1%
• Asia: Nikkei -0.4%, Hang Seng +0.5%, Shanghai +0.9%

Commodities:

• Crude Oil -0.16 @ 108.59
• Nat Gas +0.10 @ 3.12
• Gold -47.80 @ 4510.50
• Silver -2.32 @ 75.12
• Copper -0.10 @ 6.21

After-Hours Spotlight:

• Analog Devices (ADI) enters into definitive agreement to acquire Empower in all-cash transaction valued at $1.5 bln...ADI +1.2%
• CAVA Group (CAVA) beats by $0.03, beats on revs; same restaurant sales +9.7%; raises FY26 same restaurant sales growth...CAVA +6.5%
• Grid Dynamics (GDYN) announces an AI-native modernization service offering on Microsoft (MSFT) Azure...GDYN +5.1%
• James Hardie (JHX) reports EPS in-line, revs in-line; guides JunQ revs below consensus; guides FY27 revs below consensus...JHX -3.9%
• Keysight (KEYS) beats by $0.55, reports revs in-line; guides Q3 EPS above consensus, revs above consensus...KEYS +3.7%
• Qiagen (QGEN) to integrate NVIDIA accelerated computing and the NVIDIA BioNeMo platform to help researchers use AI more effectively in drug discovery...QGEN +1.5%
• Roblox (RBLX) announces its Board of Directors has authorized the repurchase of up to $3 bln of the company’s common stock with the intent to buy back up to $1 bln over the next twelve months...RBLX +3.9%
• Toll Brothers (TOL) beats by $0.14, beats on revs, adjusted home sales gross margin of 26.2%; Sees Q3 Deliveries of 2,600-2,700, raises low end of FY26 deliveries guidance range...TOL +2.3%

Fair Value for Wednesday, May 20:

• S&P 500: 7,373
• Nasdaq 100: 28,908
• DJIA: 49,442

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

• Earnings/Guidance (Full Earnings Calendar):
  • Agilysys (AGYS) beats by $0.13, beats on revs; guides FY27 revs above consensus
  • Amer Sports (AS) beats by $0.07, beats on revs; guides Q2 EPS in-line; raises FY26 EPS in-line
  • AT&T (T) provides preview of Chairman and CEO John Stankey's fireside chat at the JP Morgan Global Technology, Media and Communications Conference on Tuesday morning
  • Bilibili (BILI) beats by $0.15, reports revs in-line
  • Eagle Materials (EXP) beats by $0.32, beats on revs
  • Home Depot (HD) beats by $0.02, reports revs in-line; reaffirms FY27 EPS guidance, revs guidance
  • KE Holdings (BEKE) beats by RMB 0.47, beats on revs
  • Thermon Group (THR) reports EPS in-line, beats on revs
  • XP (XP) misses by BRL 0.01, beats on revs
• General News
  • President Trump speaking with reporters says he will know "soon" if U.S. needs to give Iran another big hit; says Gulf states are helping with negotiations; says Iran keeps agreeing to things and changing their mind; says Iran has 2-3 days to make a deal
  • President Trump in an interview with The Washington Examiner says he will leave Fed interest rate decisions to Kevin Warsh
  • President Trump held a meeting on Iran which included a briefing on military options, according to Axios
  • The EU is expected to lower import duties to avoid tariff increase from President Trump. Reuters
  • White House announced an expansion of TrumpRx.gov to provide unprecedented price transparency and choice on generic medications
  • Crypto stocks worth keeping on radar as SEC readies plan for trading of crypto versions of stocks, according to Bloomberg
  • NATO considering helping ships pass through the Strait of Hormuz if it is not open by late July, according to Bloomberg
  • U.S. seizes Iran-linked oil tanker in Indian Ocean as President Trump weighs strikes on Tehran, according to WSJ
  • U.S. and Iran peace talks showing limited progress, according to WSJ
  • Treasury Secretary Scott Bessent in an interview says the Trump administration is not in a rush to extend China trade truce, according to Reuters
  • Airbus (EADSY) targeting 10% global cost cuts, according to Reuters
  • Alphabet (GOOG/GOOGL)  is processing 3.20 quadrillion AI tokens per month; Gemini has 900 million monthly active users versus 400 mln users last year; introducing Gemini Spark
  • Antalpha Platform (ANTA) announces strategic expansion into AI infrastructure
  • Anthropic allowing Mythos users to share cybersecurity threats with others. WSJ
  • Apple (AAPL) hardware chief Johny Srouji reshapes product design and silicon teams in major reorganization to speed device development, according to Bloomberg
  • Bayer AG (BAYRY) granted priority review by U.S. FDA for asundexian in patients after a non-cardioembolic ischemic stroke or transient ischemic attack
  • Bayer AG (BAYRY): New drug applications for asundexian accepted by FDA under priority review and by Japan’s Ministry of Health, Labour and Welfare
  • Belite Bio (BLTE) receives orphan drug status for tinlarebant in Stargardt disease in Switzerland
  • Blackstone (BX) announces joint venture with Google (GOOG, GOOGL) to create new TPU Cloud
  • Boeing (BA) and Gilat (GILT) have reached a milestone toward offering Gilat’s multi-orbit Sidewinder electronically steered antenna as a future line-fit solution for in-flight connectivity service providers
  • Boston Scientific (BSX): FRACTURE IDE trial of the Boston Scientific SEISMIQ 4CE Coronary Intravascular Lithotripsy Catheter meets primary safety and effectiveness endpoints
  • Builders FirstSource (BLDR) announces that COO Steve Herron will retire on December 31, 2026; appoints Mike Hiller as Chief Operating Officer-Designate
  • Cullinan Therapeutics (CGEM) receives FDA orphan drug designation for CLN-049, a novel FLT3xCD3 T cell engager, in relapsed/refractory acute myeloid leukemia
  • Dow (DOW): NRC Issues EA with 'Finding of No Significant Impact' for Dow and X-energy's proposed nuclear project in Texas
  • ECARX Holdings (ECX) announced a strategic framework agreement with May Mobility
  • Enersys (ENS) launches AlphaCell 4.0HP+ battery to improve replacement interval stability in outdoor communications networks
  • FTI Consulting (FCN) expands antitrust expertise with addition of two affiliates
  • Gap (GAP) announces Donald Kohler will join the company as Global Brand President and CEO of Banana Republic in July 2026
  • Google (GOOG, GOOGL) DeepMind founder Demis Hassabis was an early investor in Anthropic. FT
  • GSI Technology (GSIT) announces it has been awarded Phase I of a Smart City project by the Hsinchu County government in Taiwan
  • Hut 8 Mining (HUT) announced an agreement with West Feliciana Parish, Louisiana, to invest approximately $16 million to expand local water system capacity in connection with the development of its River Bend AI data center campus
  • ImmunityBio (IBRX) presents favorable comparative effectiveness data in complete response rates of NAI + BCG versus nadofaragene and TAR-200 at AUA 2026
  • Inspired Entertainment (INSE) announces that James Richardson has stepped down from his role as Executive Vice President and Chief Financial Officer
  • Intuitive Machines (LUNR) announces two prime lunar reconnaissance contracts
  • Johnson Controls (JCI): Armada raises $230 million to build Arizona factory with investor JCI, according to CNBC
  • JP Morgan (JPM) CEO Jamie Dimon met with NYC Mayor Zohran Mamdani. WSJ
  • Leonardo DRS (DRS) announces the launch of Tenum 640 Orbit, an advanced uncooled long-wave infrared thermal camera module optimized for unmanned air, ground, and maritime platforms
  • Limbach (LMB) appoints Michael Reed as COO
  • Lockheed Martin (LMT) awarded a $879 mln firm fixed price Navy order against a previously issued basic ordering agreement
  • Meta Platforms (META) is reassigning 7,000 workers to new AI jobs. Bloomberg
  • Meta Platforms (META) dealing with politics as it attempts to build the world's largest AI facility in Louisiana, according to Bloomberg
  • Meta Platforms (META) aiming to offer AI chatbots limited free access to WhatsApp, according to Reuters
  • Miami International Holdings (MIAX) announced the successful launch of Tini Bloomberg 100 Index Futures
  • Microsoft (MSFT) introducing new Surface devices built for business and AI acceleration
  • Mineralys Therapeutics (MLYS) announces presentation of new data from the Phase 3 Launch-HTN trial of lorundrostat at ESH 2026
  • Neurocrine Biosciences (NBIX) Presents Real-World Data Highlighting Functional Impact of Mild Tardive Dyskinesia Severity and Improvement with INGREZZA® (valbenazine) Capsules
  • Nvidia (NVDA) CEO Jensen Huang expects China will eventually allow the import of AI chips. Bloomberg
  • Ouster (OUST) announced its collaboration with FUJIFILM Corporation (FUJIY) to develop the world’s first native color lidar
  • Pfizer (PFE): Legal-Bay pre settlement funding provides financial support for plaintiffs in Depo-Provera litigation
  • Relay Therapeutics (RLAY) announced initial clinical data from the Phase 2 ReInspire trial of zovegalisib in vascular anomalies signaling the advantage of PI3Ka mutant-selective inhibition
  • Sigma Lithium (SGML) is filing a legal appeal against a decision issued on Sunday, May 17, by a local judge from a local court in Aracuai, Vale do Jequitinhonha
  • Takeda Pharma (TAK) confirmed yesterday the jury verdict in AMITIZA (lubiprostone) antitrust litigation in the U.S. and related revision to FY2025 financial results
  • Tapestry (TPR) executives want international markets to grow 70%. Reuters
  • Target (TGT) will soon appoint Jeff England as supply chain executive amid weak sales, according to WSJ
  • Telix Pharmaceuticals (TLX) announces that the IPAX-2 study of TLX101-Tx in patients with newly diagnosed glioblastoma has completed patient enrollment and no dose-limiting toxicities have been observed to date
  • Tesla (TSLA) CEO Elon Musk says he will file an appeal with the Ninth Circuit regarding the OpenAI verdict
  • Tesla (TSLA) plans to construct massive solar panel manufacturing facility near Houston, according to Electrek
  • Tiziana (TLSA) Announces New Positive Clinical Data for Intranasal Foralumab in Non-Active Secondary Progressive Multiple Sclerosis
  • United Therapeutics Corporation (UTHR) Announces TETON-1 Study of Tyvaso Published in The New England Journal of Medicine and Presented at ATS 2026
  • Vontier (VNT) increases share repurchase authorization to up to $1.0 bln of Vontier shares effective on May 19, 2026
  • Wave Life Sciences (WVE) announces positive update on RestorAATion-2 Trial: WVE-006 (GalNAc-RNA editing) achieves MZ-like phenotype across both biweekly and monthly dosing
  • XP (XP) appoints Gustavo Alejo Viviani as CFO, effective August 3, 2026; also authorizes new R$1.0 billion share repurchase program

• Upgrades:
  • American Tower (AMT) upgraded to Outperform from Market Perform at Bernstein, tgt $207
    
  • Assured Guaranty (AGO) upgraded to Buy from Neutral at UBS, tgt $94
  • Credicorp (BAP) upgraded to Buy from Hold at HSBC, tgt $350
    
  • Jazz Pharmaceuticals (JAZZ) upgraded to Buy from Neutral at UBS, tgt $307
    
  • Progyny (PGNY) upgraded to Buy from Hold at Canaccord, tgt $30
    
  • StubHub Holdings (STUB) upgraded to Buy from Neutral at Guggenheim, tgt $12.50
• Downgrades:
  • Biofrontera (BFRI) downgraded to Speculative Buy from Buy at Benchmark, tgt $3
    
  • CrowdStrike (CRWD) downgraded to Sell from Buy at DZ Bank, tgt $500
    
  • Fortinet (FTNT) downgraded to Hold from Buy at DZ Bank, tgt $125
    
  • James River Group Holdings (JRVR) downgraded to Neutral from Buy at UBS, tgt $4.75
    
  • The Hanover Insurance Group (THG) downgraded to Market Perform from Outperform at BMO Capital, tgt $203
• Others:
  • Alnylam Pharmaceuticals (ALNY) initiated with a Buy at Citigroup, tgt $380
    
  • Ascendis Pharma (ASND) initiated with a Buy at Citigroup, tgt $355
    
  • BioMarin Pharmaceutical (BMRN) initiated with a Buy at Citigroup, tgt $75
    
  • BridgeBio Pharma (BBIO) initiated with a Neutral at Citigroup, tgt $82
    
  • CG Oncology (CGON) initiated with a Peer Perform at Wolfe Research
    
  • Corpay (CPAY) initiated with a Buy at Loop Capital, tgt $406
    
  • CytomX Therapeutics (CTMX) initiated with an Outperform at Wolfe Research, tgt $6
    
  • Cytokinetics (CYTK) initiated with a Buy at Citigroup, tgt $99
    
  • Interface (TILE) initiated with a Buy at Benchmark, tgt $36
    
  • Ionis Pharmaceuticals (IONS) initiated with a Buy at Citigroup, tgt $115
    
  • Lightspeed POS (LSPD) reinstated with an Underperform at BofA Securities, tgt $10
    
  • Mirum Pharmaceuticals (MIRM) initiated with an Outperform at Wolfe Research, tgt $145
    
  • NeOnc Technologies (NTHI) initiated with a Buy at Alliance Global, tgt $13
    
  • Oklo (OKLO) initiated with a Peer Perform at Wolfe Research
    
  • Pilgrim's Pride (PPC) reinstated with a Neutral at UBS, tgt $30
    
  • Rapport Therapeutics (RAPP) assumed with a Buy at Truist, tgt $56
    
  • Tyra Biosciences (TYRA) initiated with a Peer Perform at Wolfe Research
    
  • X-energy (XE) initiated with a Hold at Jefferies, tgt $28
    
  • X-energy (XE) initiated with a Buy at Guggenheim, tgt $57
    
  • X-energy (XE) initiated with a Buy at TD Cowen, tgt $35
    
  • X-energy (XE) initiated with a Buy at UBS, tgt $40
    
  • X-energy (XE) initiated with an Overweight at JPMorgan, tgt $38
    
  • X-energy (XE) initiated with an Overweight at Morgan Stanley, tgt $41
    
  • X-energy (XE) initiated with a Peer Perform at Wolfe Research
    
  • Zeta Global Holdings (ZETA) reinstated with a Buy at BofA Securities, tgt $24

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 1.7%)
  • 10:30 ET: Weekly crude oil inventories (prior -4.31 mln)
  • 14:00 ET: April FOMC Minutes

• Earnings:
  • Monday (May 18)
    • Pre-Market: BIDU BRC
    • After-Hours: AGYS
      
    Tuesday (May 19)
    • Pre-Market: AS BILI EXP HD BEKE
    • After-Hours: CAVA JHX KEYS TOL ZTO
  • Wednesday (May 20)
    • Pre-Market: ADI ARCO LPG GDS HAS IMVT LOW ROIV TGT TJX VFC
      
    • After-Hours: ELF ENS INTU NDSN NVDA STEP URBN
  • Thursday (May 21)
    • Pre-Market: AAP WMS DE HLNE LSPD NTES NIO RL SCVL VIPS WMT
    • After-Hours: CAE CPRT DECK FLO LION RAMP ROST TTWO BULL WDAY ZM
  • Friday (May 22)
    • Pre-market: BJ BAH GSL
    • After-Hours: None