After Hours Report

The major averages finished the midweek session mostly lower as mounting losses across semiconductor and mega-cap names weighed on the S&P 500 (-0.1%) and Nasdaq Composite (-0.4%) this afternoon. The DJIA (+0.4%) escaped with a modest gain following another solid showing from the broader market that was supported by another retreat in oil prices and Treasury yields.

Stocks traded in a relatively stable range for the first half of the session. Semiconductor performance was mixed, despite premarket gains indicating a possible buy-the-dip move after yesterday's retreat and a solid rebound across South Korean tech stocks.

Meanwhile, other mega-cap tech names provided the market with the boost that some investors were expecting from the semiconductor group. At midday, all of the "magnificent seven" cohort traded higher, as mega-caps took part in the broader rally as oil prices and Treasury yields retreated. The gains would not hold.

Only one "magnificent seven" name would finish with a slight gain, sending the Vanguard Mega Cap Growth ETF (-0.4%) lower after it had held a nearly 1% gain earlier in the session.

The information technology sector (-0.6%) finished as one of the worst-performing S&P 500 sectors as its largest components reversed course. Losses ramped up across semiconductor names, but the group made a last-minute push higher ahead of Micron's (MU 1047.22, -4.55, -0.43%) earnings release that saw the PHLX Semiconductor Index (-0.2%) finish with just a modest loss.

The communication services sector (-0.6%) also finished lower, with Alphabet (GOOG 345.02, -1.06, -0.30%) reversing an earlier gain after Bloomberg reported that two additional artificial intelligence researchers have left the company to join Anthropic.

While the afternoon reversal across technology capped gains at the index level, the broader market continued to perform well, reinforcing analyst commentary that market leadership is steadily broadening beneath the surface.

Six S&P 500 sectors finished higher, with the industrials sector (+1.2%) leading the advance as progressing negotiations between the U.S. and Iran and increased traffic through the Strait of Hormuz sent oil prices and Treasury yields firmly lower. The lower-yield environment was particularly supportive of construction-related names such as Builders FirstSource (BLDR 85.41, +8.68, +11.31%), while airlines such as United Airlines (UAL 130.54, +8.99, +7.40%) benefited from the retreat in oil prices, with WTI crude dipping below $70 per barrel.

The consumer discretionary sector (+0.8%) fared similarly, with travel-related names such as Booking Holdings (BKNG 181.28, +12.34, +7.30%) and Expedia Group (EXPE 262.15, +17.08, +6.97%) moving sharply higher, while homebuilders including PulteGroup (PHM 135.70, +9.15, +7.23%) and Lennar (LEN 92.96, +5.61, +6.42%) also outperformed. The iShares U.S Home Construction ETF finished 6.2% higher.

The defensive utilities (+1.1%), health care (+0.8%), and consumer staples (+0.6%) also extended this week's outperformance amid the volatility across tech names.

Unsurprisingly, the energy sector (-1.7%) was a laggard amid the retreat in oil prices. Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.6%) escaped with a portion of their earlier gains.

Overall, today's session extended the recent trend of heightened volatility across semiconductor and other mega-cap technology stocks, but it did little to derail the market's improving underlying backdrop. The DJIA's year-to-date gain now stands at 7.9%, edging ahead of the S&P 500's 7.5% advance as investors continue rotating into other pockets of the market rather than exiting equities altogether. Attention now turns to Micron's earnings report after the close, which could determine whether semiconductor stocks once again attract a meaningful buy-the-dip bid following another volatile session.

U.S. Treasuries climbed on Wednesday, making for a swift continuation of yesterday's bounce, which followed the highest settlement in the 2-year note yield since February 2025.  The complex settled on highs even though the U.S. Treasury's $70 billion 5-year note auction at 13:00 ET met underwhelming demand. The 2-year note yield settled down five basis points to 4.14%, and the 10-year note yield settled down nine basis points to 4.40%. 

• Russell 2000: +20.3% YTD
• S&P Mid Cap 400: +14.6% YTD
• Nasdaq Composite: +9.6% YTD
• DJIA: +7.8% YTD
• S&P 500: +7.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 1.0%; Prior -3.8%
• Q1 Current Account Balance -$226.8 bln (Briefing.com consensus -$237.5 bln); Prior was revised to -$221.1 bln from -$190.7 bln
• May New Home Sales 580K (Briefing.com consensus 627K); Prior was revised to 626K from 622K
  • The key takeaway from the report is that new home sales in May were pressured by affordability constraints tied to rising mortgage rates. Notably, the West region, which features the highest-priced homes, saw the biggest hit to sales month-over-month; however, there was also weakness in the more affordable South region, which is the nation's largest homebuilding market.

Overseas:

• Europe: DAX -0.7%, FTSE +0.3%, CAC +0.5%
• Asia: Nikkei -0.9%, Hang Seng +0.3%, Shanghai +0.1%

Commodities:

• Crude Oil -2.86 @ 70.42
• Nat Gas +0.07 @ 3.22
• Gold -141.50 @ 4007.40
• Silver -3.97 @ 58.05
• Copper -0.20 @ 5.95

After-Hours Spotlight:

• Federal Reserve Board's annual bank stress test confirms that large banks are well positioned to weather a severe recession and able to continue to lend to households and businesses
• ARS Pharmaceuticals (SPRY) provides commercial and financial updates...SPRY -24.5%
• Ford Motor (F): Director bought 10,600 shares at $14.05 worth ~$149K...F +0.3%
• Goldman Sachs (GS) intends to increase common dividend from $4.50 to $5.00 per share beginning July 1, up 11% from current level and up 25% from prior year...GS +1.0%
• H.B. Fuller (FUL) beats by $0.01, beats on revs; guides FY26 EPS in-line, reaffirms FY26 revs guidance...FUL +0.2%
• Jefferies (JEF) misses by $0.14, misses on revs...JEF -0.7%
• JPMorgan Chase (JPM): Following Dodd-Frank Act Stress Test results, company intends to increase quarterly common stock dividend to $1.65/share from $1.50/share for Q3 and authorizes new share repurchase program of $50 bln...JPM +0.5%
• Micron (MU) beats by $4.28, beats on revs, Non-GAAP gross margin up 10 ppt qtr/qtr; guides Q4 EPS above consensus, revs above consensus...MU +15%
• MillerKnoll (MLKN) beats by $0.03, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY27 EPS in-line, revs in-line...MLKN -3.2%
• Morgan Stanley (MS) to increase quarterly common stock dividend to $1.15/share from $1.00/share and authorizes share repurchase program of up to $20 bln after Federal Reserve released CCAR 2026 results...MS +0.5%
• Wells Fargo (WFC) completes 2026 stress test and intends to raise its quarterly dividend by 11% to $0.50/share...WFC -0.3%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Cerebras Systems (CBRS) reports Q1 2026 results; announced multi-year deal with OpenAI
  • FedEx (FDX) beats by $0.35, beats on revs; provides FY27 guidance
  • Hertz Global (HTZ) discloses it currently expects its second quarter results for fleet size, revenue, RPD and rental days will align with, or slightly exceed, its previous expectations due to healthy demand and better-than-anticipated capacity utilization
  • ICON (ICLR) Reports First Quarter 2026 Results
  • 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
  • NIKE (NKE) 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
  • Worthington Enterprises (WOR) misses by $0.09, misses on revs
• General News
  • The U.S. and Iran are in disagreement on terms of nuclear inspections. Reuters
  • The War Powers Resolution passed by the Senate to end the Iran War is largely symbolic and will not go to President Trump to sign or veto. Politico
  • Left-wing candidates successfully defeated three establishment Democrats in New York primaries, including the Congressional Hispanic Caucus chair, Rep. Adriano Espaillat. The results will put more pressure on Hakeem Jeffries. Politico
  • Japan aims to better manage funds for yen intervention. Reuters
  • House 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. President Trump will soon sign it. NBC News
  • Treasury Secretary Scott Bessent gives speech at The Economic Club of New York’s America 250 Gala Dinner
  • Diesel prices fall below $5/gallon. Bloomberg
  • President Trump is considering Heidi Overton to lead the FDA. Bloomberg
  • A critic of artificial intelligence and big technology lost his Democratic primary for a congressional seat in New York. FT
  • Absci Corporation (ABSI) announces positive interim phase 1 data from the HEADLINE trial of ABS-201, a novel antibody targeting the prolactin receptor
  • ADC Therapeutics (ADCT) announces strategic reorganization to support ZYNLONTA, includes ~17% workforce reduction
  • Agomab (AGMB) announces design of NOV-ERA Phase 2b study with Ontunisertib in Fibrostenosing Crohn’s Disease
  • Alphabet (GOOG) set to join and Honeywell International to remain in Dow Jones Industrial Average
  • ATI Inc. (ATI) expands advanced machining and inspection capability
  • Bilibili (BILI) authorizes new $300 mln share repurchase program
  • Boeing (BA) awarded a $2 bln Air Force contract
  • Bowman Consulting Group (BWMN) has secured $11.2 mln in new aerial acquisition awards under the USDA Production Imagery for the National Environment Blanket Purchase Agreement
  • Braskem SA (BAK) clarifies Globo media report
  • Canadian Solar (CSIQ) unit e-STORAGE wins Michigan battery storage supply deal
  • Cboe Global Markets (CBOE) announces the launch of the first products in its new prediction markets suite, Cboe Predicts
  • CEA Industries (BNC) and YZi Labs reach governance agreement, end proxy fight
  • Cognition Therapeutics (CGTX) aligns with FDA on key aspects of pivotal study for Zervimesine
  • Daktronics (DAKT) authorized $40 mln stock repurchase program
  • Deep Fission (FISN) signs Letters of Intent with data centers, co-developers, industrial parks, and strategic partners representing up to 18.5 gigawatts of potential generation capacity
  • Eli Lilly (LLY) investing its cash position in untested drug development strategies. FT
  • FedEx (FDX) intends to repurchase up to $1 bln worth of shares opportunistically in 2026; reaffirms 5% increase in the annual dividend
  • FuelCell Energy (FCEL) and Fit Energy USA announce agreement for up to 380 megawatts of clean, baseload on-site power for data centers using FuelCell Energy’s fuel cell technology
  • 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
  • Gilat Satellite (GILT) received a multi-million dollar order to supply custom SATCOM terminals to a European Ministry of Defense
  • Grindr (GRND) announces George Arison, Chief Executive Officer, has been appointed Chairman of the Board, effective June 23
  • Grupo Aeroportuario Del Sureste (ASR) proposes internalization of technical services, special dividends and bylaw changes
  • Honeywell Aerospace (HON) set to join S&P 500 & S&P 100; others to join S&P MidCap 400 and S&P SmallCap 600
  • Infosys (INFY), ANA's Global CMO Growth Council, and LIONS unveil the CMO AI Hub
  • Janux Therapeutics (JANX) discloses the departure of Chief Medical Officer William Go
  • Lockheed Martin (LMT) awarded a $8.4 bln modification to Army contract
  • MDA Space Ltd (MDA) wins Canadian contract for RADARSAT replenishment satellite
  • Merck (MRK) receives EU approval for KEYTRUDA and Padcev regimen in bladder cancer
  • Meta Platforms (META): U.S. wants Meta to submit its artificial intelligence models for review. NY Times
  • Morgan Stanley (MS) discloses in investor update letter related to its North Haven Private Income Fund that 5.0% of outstanding units will be accepted for repurchase on prorated basis
  • Natera's (NTRA) Signatera becomes first PMDA-approved MRD test in Japan for colorectal cancer
  • Nebius Group N.V. (NBIS) launches AI Cloud 3.6, adding new developer experience, security and governance improvements, and enhanced storage capabilities for teams running AI in production on its AI cloud platform
  • NIKE (NKE) announces CFO transition; David Denton will join company as Executive Vice President and Chief Financial Officer, effective August 17, as Matthew Friends steps down at that time
  • Nokia (NOK), Amazon Web Services (AMZN) expand collaboration to deliver autonomous networks built for the AI era
  • Novartis AG (NVS) signs collaboration with Antares Therapeutics to discover, develop and commercialize small molecule therapies against promising but historically undruggable oncology targets
  • Nvidia's (NVDA) banned AI chips rise 100% in price on China's black market. FT
  • OrthoPediatrics (KIDS) announces an exclusive distribution agreement with OSSIO, that brings U.S. children’s hospitals nationwide a bio-integrative, metal-free fixation technology ideally suited for treatment of fractures and deformities in pediatric patients
  • Plug Power (PLUG) completes Denmark hydrogen project for European Energy
  • Qualcomm (QCOM) in discussions to provide chip design services to ByteDance. Reuters
  • REGENXBIO (RGNX) completes dosing in confirmatory study of RGX-202, marking completion of registrational development program and supporting planned BLA Submission in Q3 2026
  • RPC (RES) announces Ben M. Palmer to retire President and CEO by the end of 2026
  • Safehold (SAFE) closes on a $45 mln ground lease for the development of an Affordable Housing community in the Soquel area of Santa Cruz, California
  • Samsung (SSNLF) mulling KRW 90 trillion share buyback, according to Reuters
  • Silvercorp Metals (SVM) reports updated mineral reserves and resources at the GC Mine
  • Super Micro Computer (SMCI) partners with Odine to expand AI infrastructure capabilities in Türkiye
  • Takeda Pharma (TAK) completes CEO transition, appoints Julie Kim as president and CEO
  • Take-Two (TTWO): Rockstar Games confirms pre-orders for Grand Theft Auto VI will begin on June 25, 2026, at midnight local time
  • Tencent (TCEHY) mulling exit from game studios. Bloomberg
  • Tigo Energy's (TYGO) Predict+ platform selected by YASNO to support Ukraine's power grid
  • Verastem (VSTM): VS-7375 Demonstrates Clinical Activity with a Favorable Safety and Tolerability Profile in TARGET-D 101 Phase 1/2 Clinical Trial in Patients with Advanced KRAS G12D-Mutated Solid Tumors
  • Viking Therapeutics (VIK) announces the initiation of a Phase 1 single ascending dose clinical trial of VK3019, an investigational dual amylin and calcitonin receptor agonist
  • Wendy (WEN) receiving interest from meme traders on Reddit's WallStreetBets, according to Barron's
  • Willis Lease (WLFC) shareholders deliver resounding approval of 3-for-1 stock split and all 2026 proxy proposals
  • Zscaler (ZS) and AWS sign collaboration agreement to help govt agencies, health systems, and education institutions adopt generative AI

• Upgrades:
  • BAE Systems (BAESY) upgraded to Buy from Hold at Kepler Cheuvreux
    
  • Invitation Homes (INVH) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $33
    
  • Macerich (MAC) upgraded to Buy from Neutral at Citigroup, tgt $28
    
  • Nucor (NUE) upgraded to Overweight from Sector Weight at KeyBanc, tgt $274
    
  • Varonis Systems (VRNS) upgraded to Overweight from Equal Weight at Stephens, tgt $45
• Downgrades:
  • Flowserve (FLS) downgraded to Hold from Buy at TD Cowen, tgt $70
    
  • Nuvalent (NUVL) downgraded to Market Perform from Outperform at Bernstein, tgt $124
    
  • Principal Financial Group (PFG) downgraded to Underperform from Neutral at BofA Securities, tgt $95
    
  • V2X (VVX) downgraded to Market Perform from Outperform at Raymond James
    
  • Wipro (WIT) downgraded to Underweight from Neutral at JPMorgan, tgt $1.70
• Others:
  • Barclays (BCS) initiated with a Buy at Berenberg
  • Bitdeer Technologies Group (BTDR) initiated with an Outperform at Citizens, tgt $35
  • BlackBerry (BB) initiated with a Buy at Stifel, tgt $12
  • Braze (BRZE) assumed with a Buy at Goldman, tgt $34
  • CleanSpark (CLSK) initiated with an Outperform at Citizens, tgt $27
  • Keel Infrastructure (KEEL) initiated with an Outperform at Citizens, tgt $10
  • Klaviyo (KVYO) assumed with a Buy at Goldman, tgt $26
  • Lloyds Banking Group (LYG) initiated with a Hold at Berenberg
  • MARA Holdings (MARA) initiated with an Outperform at Citizens, tgt $24
  • Merck (MRK) initiated with an Outperform at CICC, tgt $138
  • NatWest (NWG) initiated with a Buy at Berenberg
  • OGE Energy (OGE) initiated with an Equal Weight at Morgan Stanley, tgt $50
  • Palmer Square Capital BDC (PSBD) initiated with a Neutral at Lucid Capital, tgt $11.50
  • Procept BioRobotics (PRCT) initiated with an Outperform at Evercore ISI, tgt $30
  • Quince Therapeutics (QNCX) initiated with an Outperform at Leerink, tgt $4
  • Rapport Therapeutics (RAPP) initiated with an Outperform at Leerink, tgt $52
  • Silence Therapeutics (SLN) initiated with an Overweight at Cantor Fitzgerald
  • Sol-Gel Technologies (SLGL) initiated with an Outperform at Mizuho, tgt $285
  • Take-Two Interactive (TTWO) initiated with a Buy at BTIG Research, tgt $290
  • Terex (TEX) initiated with a Buy at DA Davidson, tgt $81
  • Twilio (TWLO) initiated with a Buy at Goldman, tgt $300
  • United Bankshares (UBSI) initiated with a Market Perform at Hovde Group, tgt $49
  • Zeta Global (ZETA) assumed with a Neutral at Goldman, tgt $28

• Econ Data (Wednesday):
  • 8:30 ET: Q1 GDP -- third estimate (Briefing.com consensus 1.6%; prior 1.6%), Q1 GDP Deflator -- third estimate (Briefing.com consensus 3.5%; prior 3.5%), May Personal Income (Briefing.com consensus 0.3%; prior 0.0%), Personal Spending (Briefing.com consensus 0.3%; prior 0.5%), PCE Prices (Briefing.com consensus 0.4%; prior 0.4%), Core PCE Prices (Briefing.com consensus 0.3%; prior 0.2%), May Durable Orders (Briefing.com consensus -3.2%; prior 7.9%), Durable Orders ex-transport (Briefing.com consensus 0.5%; prior 1.1%), weekly Initial Claims (Briefing.com consensus 225,0000; prior 226,000), and Continuing Claims (prior 1.810)
  • 10:30 ET: Weekly natural gas inventories (prior +73 bcf)

• 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