After Hours Report

Stocks kicked off the third quarter on a relatively quiet note following a powerful second quarter for equities. The S&P 500 (-0.2%) and Nasdaq Composite (-0.7%) finished modestly lower after giving back earlier gains, while the DJIA finished on its flat line after touching another intraday record high. Despite a sharp pullback across semiconductor stocks, losses at the index level remained surprisingly contained as strength across several other mega-cap technology names and the broader market helped cushion the decline.

Semiconductor stocks paused after leading the market higher over the previous two sessions. The PHLX Semiconductor Index fell 6.3%, with weakness spanning memory names, chip equipment manufacturers, and AI infrastructure companies, suggesting the retreat was driven more by profit-taking than any single industry-specific development. Corning (GLW 220.70, -34.74, -13.60%) and KLA Corporation (KLAC 266.19, -35.52, -11.77%) finished among the S&P 500's weakest performers.

Despite the pressure on chipmakers, the broader technology complex proved far more resilient. The information technology sector (-1.8%) recovered from a steeper intraday decline as software stocks continued to outperform. The iShares Expanded Tech-Software ETF (IGV) climbed 3.0%, while Apple (AAPL 294.38, +5.02, +1.73%) and Microsoft (MSFT 384.28, +11.26, +3.02%) both posted solid gains.

Palantir Technologies (PLTR 125.73, +9.06, +7.77%) also outperformed after President Trump's latest financial disclosure showed he purchased between $100,000 and $250,000 worth of the company's shares. The Vanguard Mega Cap Growth ETF finished flat, underscoring the resilience across the market's largest growth stocks despite the sharp decline in semiconductor shares.

The communication services sector (+2.6%) finished with the widest gain, driven by Meta Platforms' (META 612.91, +49.62, +8.81%) surge after Bloomberg reported the company plans to build a cloud business that would sell access to AI computing infrastructure.

The consumer discretionary sector (+0.8%) also outperformed as Amazon (AMZN 241.70, +3.36, +1.41%), Tesla (TSLA 425.38, +4.78, +1.14%), and NIKE (NKE 43.06, +2.01, +4.90%) all finished higher. Nike's better-than-feared quarterly results helped reinforce investor confidence that the company's turnaround continues to make gradual progress despite management's cautious near-term outlook.

The financials sector (+2.1%) also posted broad-based gains. FactSet (FDS 245.55, +15.47, +6.72%) was among the sector's top-performing components after topping earnings expectations, while Coinbase Global (COIN 159.24, +13.05, +8.93%) and Robinhood Markets (HOOD 108.65, +8.37, +8.35%) advanced alongside a rebound in Bitcoin prices.

Elsewhere, the tone was more mixed. General Mills (GIS 37.77, +2.97, +8.53%) rallied after topping quarterly earnings expectations and issuing fiscal 2027 guidance that was broadly in line with estimates, though the consumer staples sector (-0.3%) still finished lower. Walmart (WMT 108.82, -4.44, -3.92%) remained under pressure after CNBC's David Faber reported that Cleveland Research issued a negative report citing slowing comparable sales and warning the retailer may need to lower prices to clear excess inventory.

Constellation Brands (STZ 136.88, -2.21, -1.59%) also declined despite beating earnings expectations and reaffirming its fiscal 2027 outlook.

The utilities sector (-1.1%) continued its recent underperformance, while the industrials sector (-1.1%) also lagged as Caterpillar (CAT 991.41, -73.49, -6.90%) pulled back from record highs.

Crude oil futures settled $0.83 lower (-1.2%) at $68.69 per barrel as Axios reported that the U.S. is attempting to persuade Iran not to impose tolls on shipping through the Strait of Hormuz. Bloomberg separately reported that traffic through the waterway has increased to roughly 10 million barrels per day with support from the U.S. military, easing concerns about disruptions to global energy supplies.

Outside the S&P 500, the Russell 2000 (-0.4%) slipped into negative territory after reaching another intraday record high, while the S&P Mid Cap 400 (-0.8%) finished lower.

Overall, today's session suggested that investors remain willing to rotate within technology rather than broadly reduce risk following a powerful second quarter for equities. The PHLX Semiconductor Index endured a sizeable decline, yet the Vanguard Mega Cap Growth ETF finished flat and the S&P 500 Equal Weight Index (+0.2%) outperformed its market-weighted counterpart, highlighting the market's resilience beneath the surface. As the third quarter gets underway, today's action suggests the broadening in market participation remains intact even as leadership continues to evolve.

U.S. Treasuries extended this week's losses during the first session of July, though intraday action was largely confined to a sideways range near rebound highs. The 2-year note yield settled up two basis points to 4.16%, and the 10-year note yield settled up six basis points to 4.48%. 

• Russell 2000: +21.4% YTD
• S&P Mid Cap 400: +15.6% YTD
• Nasdaq Composite: +12.0% YTD
• S&P 500: +9.3% YTD
• DJIA: +8.8% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.0%; Prior 1.0%
• June ADP Employment Change 98K (Briefing.com consensus 112K); Prior 122K
• June S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 55.7
• May Construction Spending 0.1% (Briefing.com consensus 0.5%); Prior was revised to 0.3% from 0.4%
  • The key takeaway from the report is that public construction spending was the driver of the modest growth in total construction spending in June. Private construction spending activity was disappointing.
• June ISM Manufacturing Index 53.3% (Briefing.com consensus 53.8%); Prior 54.0%
  • The key takeaway from the report is that there was a general slowdown indicated versus May across most components of the report, yet the slowdown that will matter most is the one seen in the prices index, which is still quite high but nonetheless moving in the preferred direction.

 Overseas:

• Europe: DAX +0.3%, FTSE -0.2%, CAC -0.8%
• Asia: Nikkei +0.6%, Hang Seng market closed, Shanghai +0.4%

Commodities:

• Crude Oil -0.83 @ 68.69
• Nat Gas -0.05 @ 3.22
• Gold +41.80 @ 4081.80
• Silver +0.60 @ 60.50
• Copper -0.07 @ 6.18

After-Hours Spotlight:

• American Eagle (AEO) announces that CFO Mike Mathias will transition to serve as a strategic advisor to CEO Jay Schottenstein; names Ravi Thanawala as next CFO and reaffirms guidance...AEO flat
• Apple (AAPL) makes lobbying push to buy Chinese-made memory chips, according to Bloomberg...AAPL -0.1%
• Cantor Equity Partners II, Inc (CEPT): Securitize completes business combination...CEPT +2.0%
• Franklin Covey (FC) Reports Third Quarter Fiscal 2026 Financial Results...FC -24%
• Greenbrier (GBX) reports EPS in-line, misses on revs; lowers FY26 EPS guidance, reaffirms FY26 revs guidance...GBX -1.9%
• Inogen (INGN) announces the appointment of Andy Reding as Chief Operating Officer...INGN +0.7%
• Neurocrine Biosciences (NBIX) initiates Phase 2 Study of Crinecerfont in pediatric patients under 4 years old...NBIX flat
• Stratus Properties (STRS) announces initial liquidating distribution of $5/share to stockholders and intention to voluntarily delist from Nasdaq and deregister with SEC...STRS -2.6%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Algoma Steel Group (ASTL) says total steel shipments for the quarter are expected to be 175-180,000 tons and Adjusted EBITDA is expected to be C$5-15 mln
  • Constellation Brands (STZ) beats by $0.24, beats on revs; reaffirms FY27 EPS guidance
  • FactSet (FDS) beats by $0.08, reports revs in-line; reaffirms FY26 EPS guidance, revs guidance
  • General Mills (GIS) beats by $0.15, reports revs in-line; guides FY27 EPS in-line; Targeting $3 bln in cost savings by FY30
  • MSC Industrial (MSM) beats by $0.15, beats on revs
  • NIKE (NKE) beats by $0.08, beats on revs; sees Q1 revenue declining low to mid-single digits; For FY 2027, revenue now expected to be down low to mid-single digits
  • 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
• General News
  • President Trump considered an "all-out war" with Iran, but decided to stick with diplomatic talks for now. WSJ
  • U.S. negotiators had positive technical talks with Iran. Bloomberg
  • Iran claims it exported more than 40 million barrels of crude oil and is selling crude oil at a 20% premium. CNBC
  • Ukrainian drone attacks causing widespread fuel shortages across Russia. WSJ
  • President Trump says Pierre Yared will leave Council of Economic Advisers
  • DOJ alleged that egg companies conspired to increase prices. WSJ
  • Macau Gaming Inspection and Coordination Bureau reported June gross revs -12.1% yr/yr
  • Fed Chairman Warsh will appear at the European Central Bank's policy forum in Portugal alongside European Central Bank President Lagarde later this morning
  • Allison Transmission Holdings (ALSN) will replace Goodyear Tire & Rubber Co. (GT) in the S&P MidCap 400 prior to open on July 6
  • Anthropic is redeploying Fable 5
  • Apple (AAPL) CEO Tim Cook had constructive talks with EU regarding Siri AI. FT
  • Bloom Energy (BE) and Brookfield expand AI infrastructure partnership to $25 bln
  • Firefly Aerospace (FLY) announces a $144 mln NASA Commercial Lunar Payload Services contract
  • FMC Corp (FMC) to receive $400 mln strategic investment from Tessenderlo Group
  • Goodyear Tire & Rubber (GT) will replace Stellar Bancorp Inc. (STEL) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, July 6
  • Intuitive Machines (LUNR) announces it has received a firm-fixed-price contract from NASA valued at up to $148.3 mln
  • Klarna Group plc (KLAR) announces that the court has ruled in PriceRunner’s favor, awarding $1.97 billion in damages in an antitrust case brought by PriceRunner against Google (GOOG / GOOGL)
  • Li Auto (LI) delivered 30,895 vehicles in June, bringing cumulative deliveries to 1,733,687 as of June 30, 2026
  • Microsoft (MSFT) planning to eliminate additional jobs. Business Insider
  • NIO (NIO) delivered 40,597 vehicles in June, up 62.9% yr/yr, while second-quarter deliveries increased 49.4% to 107,658 vehicles, bringing cumulative deliveries to 1,188,715
  • Palantir Technologies (PLTR): quarterly disclosure from President Trump where he purchased between $100-250K worth of shares in the company
  • Papa John's (PZZA) CFO Ravi Thanawala to step down to assume a CFO position at another public company
  • Paramount (PSKY) offered EU concessions to secure approval for the Warner Brothers (WBD) deal. Reuters
  • SITE Centers (SITC) sells The Pike Outlets, declares $1.00 special dividend
  • TKO Group Holdings (TKO) completes $800 mln accelerated share repurchase
  • Transocean (RIG) announces an agreement with Equinor (EQNR), worth over $1 bln
  • XPENG (XPEV) delivered 40,126 vehicles in June, bringing second-quarter deliveries to 103,295 units

• Upgrades:
  • Abivax (ABVX) upgraded to Buy from Hold at Jefferies, tgt $158
  • Advanced Energy (AEIS) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $465
  • Check Point (CHKP) upgraded to Buy from Neutral at Guggenheim, tgt $188
  • Circle Internet (CRCL) upgraded to Neutral from Sell at Compass Point, tgt $55
  • CVB Financial (CVBF) upgraded to Outperform from Market Perform at Raymond James, tgt $25
  • DLocal (DLO) upgraded to Buy from Neutral at UBS, tgt $20
  • FirstSun Capital (FSUN) upgraded to Strong Buy from Outperform at Raymond James, tgt $47
  • Fox Corp. (FOXA) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $71
  • Grindr (GRND) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $18
  • Lockheed Martin (LMT) upgraded to Buy from Neutral at Citigroup, tgt $582
  • Murphy USA (MUSA) upgraded to Buy from Hold at Jefferies, tgt $625
  • Owens Corning (OC) upgraded to Neutral from Underperform at Zelman, tgt $174
  • Salesforce (CRM) upgraded to Buy from Neutral at Guggenheim, tgt $228
  • ServiceNow (NOW) upgraded to Buy from Neutral at Guggenheim, tgt $125
  • Talos Energy (TALO) upgraded to Buy from Neutral at Roth Capital, tgt $17
• Downgrades:
  • Ameris Bancorp (ABCB) downgraded to Market Perform from Outperform at Raymond James
  • BOK Financial (BOKF) downgraded to Market Perform from Outperform at Raymond James
  • Carter Bankshares (CARE) downgraded to Market Perform from Outperform at Raymond James
  • ConnectOne (CNOB) downgraded to Market Perform from Strong Buy at Raymond James
  • Cullen/Frost (CFR) downgraded to Market Perform from Outperform at Raymond James
  • Dow Inc. (DOW) downgraded to Sector Perform from Outperform at RBC Capital, tgt $28
  • Merchants Bancorp (MBIN) downgraded to Market Perform from Outperform at Raymond James
  • Prog Holdings (PRG) downgraded to Hold from Buy at Loop Capital, tgt $48
  • Simon Property (SPG) downgraded to Peer Perform from Outperform at Wolfe Research
  • Truist Financial (TFC) downgraded to Market Perform from Outperform at Raymond James
• Others:
  • Abbott (ABT) initiated with an Outperform at Robert W. Baird, tgt $121
  • AeroVironment (AVAV) initiated with an Outperform at Wedbush, tgt $250
  • AIB Data Centers (AIB) initiated with a Buy at Lucid Capital, tgt $6.75
  • Allegiant Travel (ALGT) initiated with an Overweight at JPMorgan, tgt $156
  • Amplitude (AMPL) initiated with a Strong Buy at Raymond James, tgt $10
  • Birkenstock (BIRK) initiated with an Outperform at Raymond James, tgt $52
  • Borr Drilling (BORR) initiated with an Overweight at Capital One, tgt $6
  • Carlsmed (CARL) initiated with a Buy at Needham, tgt $17
  • Cava Group (CAVA) initiated with a Hold at Freedom Capital, tgt $95
  • Concentra (CON) initiated with an Outperform at William Blair
  • Circle Internet (CRCL) initiated with a Neutral at Susquehanna, tgt $69
  • Cypherpunk Technologies (CYPH) initiated with an Overweight at Cantor Fitzgerald, tgt $0.90
  • Dutch Bros (BROS) initiated with a Buy at Freedom Capital, tgt $95
  • El Pollo Loco (LOCO) initiated with a Buy at Freedom Capital, tgt $22
  • FedEx Freight (FDXF) initiated with a Buy at Goldman, tgt $186
  • First Watch Restaurant (FWRG) initiated with a Buy at Freedom Capital, tgt $17
  • FTAI Infrastructure (FIP) initiated with a Buy at Jones Trading, tgt $8.75
  • Forward Industries (FWDI) initiated with an Overweight at Cantor Fitzgerald, tgt $7.90
  • Heartflow (HTFL) initiated with a Buy at Freedom Capital, tgt $37
  • Honeywell Aerospace (HONA) initiated with an Equal Weight at Wells Fargo, tgt $250
  • Inspire Medical (INSP) initiated with a Buy at Freedom Capital, tgt $62
  • Kazia Therapeutics (KZIA) initiated with a Buy at BTIG Research, tgt $34
  • Kratos Defense (KTOS) initiated with an Outperform at Wedbush, tgt $85
  • Kura Sushi (KRUS) initiated with a Hold at Freedom Capital, tgt $68
  • Lionsgate Studios (LION) initiated with a Neutral at B. Riley, tgt $17
  • Lithium Americas (LAC) initiated with a Neutral at Goldman, tgt $4.50
  • LivaNova (LIVN) initiated with a Hold at Freedom Capital, tgt $81
  • Northrim BanCorp (NRIM) initiated with a Market Perform at Keefe Bruyette, tgt $30
  • Planet Labs (PL) assumed with an Outperform at Wedbush, tgt $50
  • Red River Bancshares (RRBI) assumed with a Market Perform at Raymond James
  • Resideo (REZI) initiated with a Buy at Seaport Research, tgt $55
  • Seadrill (SDRL) initiated with an Overweight at Capital One, tgt $55
  • Serina Therapeutics (SER) initiated with a Buy at BTIG Research, tgt $8
  • SpaceX (SPCX) initiated with an Outperform at Wedbush, tgt $190
  • Starz Entertainment (STRZ) initiated with a Buy at B. Riley, tgt $45
  • Tempus AI (TEM) initiated with a Hold at Freedom Capital, tgt $59
  • Voyager Technologies (VOYG) assumed with an Outperform at Wedbush, tgt $46

• Econ Data (Thursday):
  • 8:30 ET: June Nonfarm Payrolls (Briefing.com consensus 110,000; prior 172,000), Nonfarm Private Payrolls (Briefing.com consensus 88,000; prior 120,000), Unemployment Rate (Briefing.com consensus 4.3%; prior 4.3%), Average Hourly Earnings (Briefing.com consensus 0.3%; prior 0.3%), Average Workweek (Briefing.com consensus 34.3; prior 34.3), weekly Initial Claims (Briefing.com consensus 220,000; prior 215,000), and Continuing Claims (prior 1.821 mln)
  • 10:00 ET: May Factory Orders (Briefing.com consensus 1.5%; prior 4.8%)
  • 10:30 ET: Weekly natural gas inventories (prior +76 bcf)
  • 14:00 ET: Treasury market early close

• 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