After Hours Report

Stocks finished the second quarter on a strong note as another solid session across semiconductor names helped lift the S&P 500 (+0.8%), Nasdaq Composite (+1.5%), and DJIA (+0.3%). The DJIA notched another record closing high, capping off the strongest first half of the year for the Dow since 2021 and the best quarterly performance for the S&P 500 and Nasdaq Composite since 2020. Additionally, the S&P 500 and Nasdaq have now recovered nearly all of last week's pullback.

Semiconductor stocks once again led the market, with the PHLX Semiconductor Index climbing 3.9% to build on yesterday's rebound. Firm gains across major chipmakers such as Advanced Micro Devices (AMD 580.91, +41.42, +7.68%) and Intel (INTC 139.63, +7.91, +6.01%) were notched, while Sandisk (SNDK 2273.73, +223.34, +10.89%) led memory names higher, lifting the information technology sector (+2.6%) and reinforcing the return to mega-cap technology leadership that began earlier this week.

Technology leadership extended beyond semiconductors, though gains elsewhere were more selective. The Vanguard Mega Cap Growth ETF (+1.7%) posted another solid advance, with Apple (AAPL 289.36, +7.62, +2.70%) and Microsoft (MSFT 373.02, +4.45, +1.21%) adding to this week's gains.

The consumer discretionary sector (+0.1%) finished little changed as strength in Tesla (TSLA 420.60, +8.76, +2.13%) was offset by weakness elsewhere, while the communication services sector finished on its flat line despite another solid session from Alphabet (GOOG 353.33, +2.05, +0.58%).

Continued weakness in broadband and wireless providers, including Verizon (VZ 42.34, -1.76, -3.99%) and AT&T (T 20.69, -1.13, -5.18%), limited the sector's advance following Comcast's (CMCSA 24.55, +0.33, +1.36%) restructuring announcement earlier this week.

Outside of technology, participation was more narrow as momentum shifts back toward growth stocks. The industrials sector (+1.4%) finished as one of the day's top performers, supported by another strong session for electrical equipment companies that continued to move in tandem with semiconductor stocks. Caterpillar (CAT 1064.90, +31.71, +3.07%) also stood out among the Dow components.

Market breadth was relatively balanced, with advancers and decliners finishing nearly even on both the NYSE and Nasdaq. Even so, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.6%) both posted respectable gains, suggesting the broader market continued to participate despite the renewed leadership from mega-cap technology.

Elsewhere, the real estate sector (-2.2%) finished lower for a second consecutive session, pressured by a sharp decline in Digital Realty Trust (DLR 179.58, -11.00, -5.77%) following its announced data center acquisition.

The defensive consumer staples (-1.5%), utilities (-1.5%), and health care (-1.3%) sectors also lagged as investors favored growth-oriented areas of the market.

The energy sector (-0.8%) finished lower as crude oil prices eased while investors continued monitoring developments surrounding the latest round of U.S.-Iran negotiations.

Overall, today's session reinforced that mega-cap technology has reclaimed market leadership after briefly taking a back seat last week. At the same time, respectable gains across small- and mid-cap stocks suggest the recent improvement in market participation remains intact, allowing the major averages to recover nearly all of last week's decline without a meaningful deterioration in underlying breadth.

U.S. Treasuries retreated on Tuesday, with yields finishing June and Q2 just above last week's lows. The 2-year note yield settled up three basis points to 4.14%, and the 10-year note yield settled up four basis points to 4.42%.

• Russell 2000: +21.9% YTD
• S&P Mid Cap 400: +16.6% YTD
• Nasdaq Composite: +12.8% YTD
• S&P 500: +9.6% YTD
• DJIA: +8.9% YTD

Reviewing today's data:

• April FHFA Housing Price Index -0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%
• April S&P Case-Shiller Home Price Index 1.1% (Briefing.com consensus 0.9%); Prior was revised to 0.9% from 0.8%
• June Chicago PMI 56.7 (Briefing.com consensus 60.0); Prior 62.7
• June Consumer Confidence 91.2 (Briefing.com consensus 94.2); Prior was revised to 90.6 from 93.1
  • The key takeaway from the report is that the June increase followed a downward revision to May's reading, so there is some persistent caution in confidence as the expectations index remains below a level that has traditionally signaled an upcoming recession.
• May JOLTS - Job Opening 7.594 mln; Prior was revised to 7.585 mln from 7.618 mln

 Overseas:

• Europe: DAX +1.4%, FTSE +0.1%, CAC +0.4%
• Asia: Nikkei +0.9%, Hang Seng -0.6%, Shanghai +0.5%

Commodities:

• Crude Oil -1.30 @ 69.52
• Nat Gas +0.09 @ 3.27
• Gold +1.70 @ 4040.00
• Silver +1.26 @ 59.90
• Copper +0.09 @ 6.25

After-Hours Spotlight:

• Bloom Energy (BE) and Brookfield (BN) expand AI infrastructure partnership to $25 bln...BE +11.5%, BN +0.3%
• Constellation Brands (STZ) beats by $0.24, beats on revs; reaffirms FY27 EPS guidance...STZ +3.9%
• Firefly Aerospace (FLY) announces a $144 mln NASA Commercial Lunar Payload Services contract...FLY +3.5%
• Intuitive Machines (LUNR) announces it has received a firm-fixed-price contract from NASA valued at up to $148.3 mln...LUNR +6.0%
• NIKE (NKE) beats by $0.08, beats on revs...NKE -7.2%
• Papa John's (PZZA) CFO Ravi Thanawala to step down to assume a CFO position at another public company...PZZA -3.1%
• Progress Software (PRGS) beats by $0.13, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY26 EPS above consensus, revs in-line...PRGS -5.3%
• Talos Energy (TALO) announces strategic acquisition of Gulf of America deepwater oil assets...TALO flat
• Transocean (RIG) announces an agreement with Equinor (EQNR), worth over $1 bln...RIG +2.0%

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

• Earnings/Guidance (Full Earnings Calendar):
  • AeroVironment (AVAV) beats by $0.38, beats on revs; guides FY27 EPS below consensus, revs in-line
  • Concentrix (CNXC) misses by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY26 EPS below consensus, revs below consensus
• General News
  • Trump Administration issues memo that directs the EPA Administrator to issue guidance clarifying what actions individuals may take to fix their own vehicles' emissions systems, consistent with the Clean Air Act
  • President Trump says he is nominating Keith Sonderling to be Secretary of Labor
  • Traffic through Strait of Hormuz increasing for the first time since recent attacks. Bloomberg
  • House Speaker Mike Johnson says President Trump will not veto bipartisan housing legislation. Politico
  • The Trump administration will finalize new student loan rules that will put additional pressure on colleges. WSJ
  • The Trump administration is mulling ban of Chinese energy inverters, according to Reuters
  • European Central Bank President Lagarde said that the June rate hike was a deliberate, unanimous, move, while policymaker Wunsch said that another rate hike could be needed quickly
  • Abivax (ABVX) reports positive ABTECT maintenance Part 2 results for Obefazimod
  • Aflac (AFL) Japan discovered an unauthorized third-party had unlawfully accessed certain of Aflac Japan’s systems
  • Airbus (EADSY): Airline SAS orders $10 bln worth of Airbus jets, according to Reuters
  • BeOne Medicines (ONC) announces positive phase 3 results for BRUKINSA in frontline mantle cell lymphoma
  • Cal-Maine Foods (CALM) reaches settlement with DOJ and state attorneys general
  • Comcast (CMCSA): NBCUniversal weighing potential video-game entry post split; cable and connectivity business eyes technology investments, according to Reuters
  • Corteva (CTVA) announces board of directors and board chairs for both companies; separation on track for 4Q26
  • Eli Lilly (LLY) grants Innovent commercialization rights for Verzenios in China
  • Fortuna Silver Mines (FSM) announces positive results from the feasibility study for its Diamba Sud Gold Project in Senegal
  • Genmab (GMAB) and ABBV announce Epcoritamab monotherapy and Epcoritamab-based combination regimens demonstrate high response rates in elderly patients with newly diagnosed diffuse large B-cell lymphoma
  • JP Morgan (JPM) plans to put funds into national security sector. WSJ
  • Magna Chip Semi (MX) announces Chae Lee as Chief Executive Officer, effective July 1, 2026
  • NovoCure Optune Pax (NVCR) receives CE Mark for the treatment of locally advanced pancreatic cancer
  • Sanofi's (SNY) Nexviazyme meets Phase 3 endpoints in infantile-onset Pompe disease
  • Shell (SHEL) aiming to sell fuel stations in South Africa for $1 bln. Bloomberg
  • Silvercorp Metals (SVM) expects temporary production slowdown at China mines following safety inspections
  • SK Telecom (SKM) is reviewing a plan to pursue the buildout of AI data centers
  • SpaceX (SPCX) talking with the Trump administration about donating stock for "Trump Accounts" Semafor

• Upgrades:
  • Comcast (CMCSA) upgraded to Buy from Neutral at Rosenblatt, tgt $31
  • Comcast (CMCSA) upgraded to Buy from Hold at Deutsche Bank, tgt $32
  • Fortune Brands (FBIN) upgraded to Buy from Hold at Truist, tgt $70
  • Honeywell (HON) upgraded to Outperform from Neutral at Daiwa, tgt $255
  • Icon (ICLR) upgraded to Buy from Hold at Truist, tgt $207
  • Nutrien (NTR) upgraded to Outperform from Sector Perform at Scotiabank, tgt $80
  • Owens Corning (OC) upgraded to Outperform from In Line at Evercore ISI, tgt $188
  • Qualys (QLYS) upgraded to Neutral from Underweight at JPMorgan, tgt $139
  • RB Global (RBA) upgraded to Strong Buy from Outperform at Raymond James, tgt $145
  • Replimune (REPL) double upgraded to Outperform from Underperform at BMO Capital, tgt $16
  • Texas Capital Bancshares (TCBI) upgraded to Neutral from Sell at Citigroup, tgt $105
  • Tradeweb Markets (TW) upgraded to Buy from Neutral at Goldman, tgt $146
  • VersaBank (VBNK) upgraded to Buy from Neutral at Roth Capital, tgt $25
  • Watts Water (WTS) upgraded to Overweight from Equal Weight at Barclays, tgt $414
• Downgrades:
  • AAR Corp. (AIR) downgraded to Sector Weight from Overweight at KeyBanc
  • Alpine Income Property (PINE) downgraded to Neutral from Outperform at Robert W. Baird, tgt $21
  • Bank of America (BAC) downgraded to Perform from Outperform at Oppenheimer
  • BankUnited (BKU) downgraded to Sell from Neutral at Citigroup, tgt $45
  • Braskem (BAK) downgraded to Neutral from Overweight at JPMorgan
  • Citigroup (C) downgraded to Perform from Outperform at Oppenheimer
  • Evolent Health (EVH) downgraded to Hold from Buy at Truist, tgt $7
  • Evommune (EVMN) downgraded to Neutral from Buy at H.C. Wainwright
  • Fortinet (FTNT) downgraded to Reduce from Hold at HSBC, tgt $102
  • Fox Factory (FOXF) downgraded to Underperform from Neutral at BofA Securities, tgt $20
  • Globant (GLOB) downgraded to Market Perform from Outperform at William Blair
  • Goldman Sachs (GS) downgraded to Underperform from Perform at Oppenheimer
  • Logitech (LOGI) downgraded to Underperform from Neutral at BofA Securities, tgt $86
  • Morgan Stanley (MS) downgraded to Underperform from Perform at Oppenheimer
  • Olin (OLN) downgraded to Underperform from Buy at BofA Securities, tgt $21
  • Scorpio Tankers (STNG) downgraded to Underperform from Buy at BofA Securities, tgt $78
  • The Trade Desk (TTD) downgraded to Sell from Neutral at Arete, tgt $11.60
  • Truist Financial (TFC) downgraded to Neutral from Buy at Citigroup, tgt $54
• Others:
  • Affirm (AFRM) initiated with an Overweight at Piper Sandler, tgt $103
  • Alterity Therapeutics (ATHE) initiated with a Buy at JonesResearch, tgt $16
  • American Express (AXP) initiated with an Overweight at Piper Sandler, tgt $396
  • American States Water (AWR) initiated with a Hold at Freedom Broker, tgt $77
  • Block (XYZ) assumed with an Overweight at Piper Sandler, tgt $100
  • Capital One (COF) initiated with an Overweight at Piper Sandler, tgt $254
  • CenterPoint Energy (CNP) initiated with a Neutral at BTIG Research
  • Cerebras Systems (CBRS) initiated with a Hold at Freedom Capital, tgt $209
  • First Comm Banc (FCBC) initiated with a Market Perform at Raymond James
  • Hawkins (HWKN) initiated with an Equal Weight at Barclays, tgt $170
  • Honeywell Aerospace (HONA) initiated with a Hold at Jefferies, tgt $235
  • IperionX (IPX) initiated with a Buy at Texas Capital, tgt $55
  • Klarna (KLAR) initiated with a Market Perform at Citizens
  • Mastercard (MA) initiated with an Overweight at Piper Sandler, tgt $597
  • MKS Instruments (MKSI) initiated with an Outperform at BMO Capital, tgt $453
  • Mid Penn Bancorp (MPB) initiated with an Outperform at Raymond James, tgt $38
  • Mueller Water Products (MWA) initiated with an Underweight at Barclays, tgt $25
  • Neptune Insurance Holdings (NP) initiated with an Overweight at Wells Fargo, tgt $35
  • ProMIS Neurosciences (PMN) initiated with an Overweight at Cantor Fitzgerald
  • Rocket Companies (RKT) initiated with a Buy at Benchmark, tgt $21
  • Service Properties Trust (SVC) initiated with a Buy at Ladenburg, tgt $2.25
  • Visa (V) initiated with an Overweight at Piper Sandler, tgt $394
  • Zeta Global (ZETA) initiated with a Buy at Freedom Broker, tgt $28.50
  • Zurn Elkay Water Solutions (ZWS) initiated with an Overweight at Barclays, tgt $59

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 1.0%)
  • 8:15 ET: June ADP Employment Change (Briefing.com consensus 112,000; prior 122,000)
  • 9:45 ET: Final June S&P Global U.S. Manufacturing PMI (prior 55.7)
  • 10:00 ET: May Construction Spending (Briefing.com consensus 0.5%; prior 0.4%) and June ISM Manufacturing Index (Briefing.com consensus 53.8%; prior 54.0%)
  • 10:30 ET: Weekly crude oil inventories (prior -6.09 mln)

• Earnings:
  • Monday (June 29)
    • Pre-Market: None
    • After-Hours: AVAV, CNXC
      
    Tuesday (June 30)
    • Pre-Market: None
    • After-Hours: STZ, NKE, PRGS
      
  • Wednesday (July 1)
    • Pre-Market: FDS, GIS, MSM, UNF
      
    • After-Hours: GBX
      
  • Thursday (July 2)
    • Pre-Market: LNN
    • After-Hours: None
  • Friday (July 3)
    • Closed for holiday