After Hours Report

The major averages finished mixed today as another sharp pullback across semiconductor stocks and select mega-cap names masked broad strength across several defensive sectors. The S&P 500 finished flat, the Nasdaq Composite (-0.8%) ended lower, while the DJIA (+1.1%) notched record highs.

Despite the divergence beneath the surface, all three major averages remain up between 1.8% and 2.1% for the week. Semiconductor stocks remained under pressure for a second consecutive session, with the PHLX Semiconductor Index falling 5.4% as the recent momentum trade continued to unwind. Weakness was particularly pronounced among memory names after Bloomberg reported that Apple (AAPL 308.63, +14.25, +4.84%) is lobbying for permission to purchase memory chips from China's ChangXin Memory Technologies.

The development weighed on names such as Sandisk (SNDK 1745.00, -287.22, -14.13%) and helped leave the information technology sector (-1.5%) as the day's weakest performer.

Pressure across other areas of mega-cap technology was also more selective than recent sessions. Meta Platforms (META 582.88, -30.03, -4.90%) gave back a portion of yesterday's sharp advance, while Tesla (TSLA 392.82, -32.48, -7.64%) extended its intraday reversal despite reporting better-than-expected second-quarter deliveries earlier in the session. Those moves also weighed on the communication services (-0.7%) and consumer discretionary (-0.7%) sectors, the only other S&P 500 sectors to finish in negative territory. The Vanguard Mega Cap Growth ETF finished 1.0% lower.

However, Genuine Parts (GPC 132.57, +15.17, +12.92%) finished as the top-performing S&P 500 component after Bloomberg reported that O'Reilly Auto (ORLY 90.25, -2.44, -2.63%) is interested in acquiring the company's automotive parts business.

Away from technology, leadership rotated decisively toward more defensive areas of the market. The health care (+2.7%), consumer staples (+2.4%), and utilities (+2.3%) sectors finished with the largest gains, while the materials sector (+2.1%) also outperformed. Health care stocks continued to build on their recent momentum, with hospital operators such as Universal Health (UHS 158.33, +7.75, +5.15%) and HCA (HCA 410.50, +17.26, +4.39%) among the sector's strongest performers after the Centers for Medicare & Medicaid Services proposed updates aimed at strengthening Medicare program integrity, combating fraud, and expanding access to home health care.

Today's leadership differed from recent sessions in one notable respect. While the S&P 500 Equal Weight Index (+0.8%) finished with a nice gain, smaller-cap stocks did not participate in the rotation out of tech, with the Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.4%) both ending lower after the Russell reached record highs earlier this week.

Today's session reinforced that investors continue to differentiate aggressively beneath the surface rather than broadly reduce equity exposure. While semiconductor stocks remained under pressure and weighed on the technology-heavy indices, continued leadership from health care and several other defensive groups helped the DJIA notch another record high and kept the broader market's weekly advance largely intact.

U.S. Treasuries finished the holiday-shortened week on a mixed, but generally flat note, locking in losses for the week. The 2-year note yield settled down two basis points to 4.14% (+5 basis points this week), and the 10-year note yield settled up one basis point to 4.49% (+12 basis points this week). 

Bond and equity markets will be closed tomorrow, returning for a full session on Monday.

• Russell 2000: +20.7% YTD
• S&P Mid Cap 400: +15.1% YTD
• Nasdaq Composite: +11.2% YTD
• DJIA: +10.1% YTD
• S&P 500: +9.3% YTD

Reviewing today's data:

• June Nonfarm Payrolls 57K (Briefing.com consensus 110K); Prior was revised to 129K from 172K, June Nonfarm Private Payrolls 49K (Briefing.com consensus 88K); Prior was revised to 97K from 120K, June Unemployment Rate 4.2% (Briefing.com consensus 4.3%); Prior 4.3%, June Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior 0.3%, June Average Workweek 34.3 (Briefing.com consensus 34.3); Prior 34.3
  • The key takeaway from the report for the market, which likes to see the good in the bad, is that the softer payrolls and pressure on real earnings should temper concerns about an imminent rate hike.
• Weekly Initial Claims 215K (Briefing.com consensus 220K); Prior was revised to 216K from 215K, Weekly Continuing Claims 1.814 mln; Prior was revised to 1.812 mln from 1.821 mln
  • The key takeaway from the report is that initial jobless claims continue to track at low levels, offering a nice cue that suggests the labor market, overall, remains on solid ground.
• May Factory Orders -1.3% (Briefing.com consensus 1.5%); Prior was revised to 5.3% from 4.8%
  • The key takeaway from the report is that the headline weakness was a function of a large decline in volatile transportation equipment orders. Exclude that factor, and factory orders were quite solid in May.

 Overseas:

• Europe: DAX +2.0%, FTSE +1.7%, CAC +1.7%
• Asia: Nikkei -2.5%, Hang Seng -0.8%, Shanghai -2.0%

Commodities:

• Crude Oil -0.01 @ 68.68
• Nat Gas -0.02 @ 3.20
• Gold +44.10 @ 4125.90
• Silver +0.60 @ 61.10
• Copper -0.01 @ 6.17

After-Hours Spotlight:

• Ecolab (ECL) announces the closing of its acquisition of CoolIT Systems...ECL flat
• Embraer SA (EMBJ) reports 65 aircraft delivered in second quarter, up 48% quarter-over-quarter...EMBJ flat
• Halozyme Therapeutics (HALO) discloses the departure of COO Courtney Caudill...HALO -3.0%
• Six Flags Entertainment (FUN) names Mark Pauls as COO...FUN -0.1%
• Standex International (SXI) announces it has acquired the remaining 9.9% interest in Narayan Powertech, for approximately $64 mln...SXI flat

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

• Earnings/Guidance (Full Earnings Calendar):
  • Biogen (BIIB) disclosed that its GAAP and non-GAAP results for the second quarter of 2026 will include acquired in-process research and development, upfront and milestone expense of approximately $164 million
  • Franklin Covey (FC) reports third quarter Fiscal 2026 financial results
  • Greenbrier (GBX) reports EPS in-line, misses on revs; lowers FY26 EPS guidance, reaffirms FY26 revs guidance
  • Lindsay Corp (LNN) beats by $0.39, beats on revs
• General News
  • Oil continues to flow through the Strait of Hormuz, which underscores Iran's limited ability to halt shipping. Bloomberg
  • White House in discussions with artificial intelligence companies to create voluntary standards. FT
  • A new Chinese artificial intelligence model is catching up with Anthropic. Reuters
  • Japanese officials are reportedly considering a shift away from hinting at interventions before they take place
  • Saudi Arabia is exporting most oil from inside the Persian Gulf since the the Iran war closed the Strait of Hormuz, according to Bloomberg
  • The ECB's policy forum in Portugal concluded, leading the market to believe that not just the Federal Reserve, but the Bank of England and the ECB are also looking to pull back from giving constant forward guidance
  • ElevenLabs in discussions for tender offer at $22 bln valuation, according to Bloomberg
  • European nations believe some fees in the Strait of Hormuz are inevitable, according to Bloomberg
  • Iran insisting on tolls in Strait of Hormuz despite U.S. demands, according to WSJ
  • There has yet to be mention of the Trump administration taking stakes in Anthropic, according to Reuters
  • Airbus (EADSY) 1H deliveries reached 350, according to Bloomberg sources
  • Alphabet (GOOG/GOOGL): EU Court of Justice upholds Google’s fine of around €4.1 billion
  • Amazon (AMZN) looks to commence internet offering later this year following their most recent satellite launch, according to Bloomberg
  • 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
  • Apple (AAPL) makes lobbying push to buy Chinese-made memory chips, according to Bloomberg
  • Apple (AAPL) gears up to launch re-imagined base-model MacBook Pro and next-gen iPad Pro for 2027, according to Bloomberg
  • Arcturus Therapeutics (ARCT) announces strategic collaboration with Thermo Fisher Scientific (TMO) to advance ARCT-032 for cystic fibrosis
  • Bayer (BAYRY) consolidates U.S. glyphosate business into Ruveon
  • BlackRock (BLK): U.S. Treasury selects two BlackRock funds for Trump Accounts
  • Blackstone's (BX) QTS ends plan to build a portion of its data center in Virginia due to residential opposition, according to Bloomberg
  • Cadiz (CDZI) and Central Arizona Irrigation and Drainage District announce execution of a Memorandum of Understanding
  • Caterpillar (CAT) announces the launch of its workforce commitment in Texas, marking another meaningful step in its five-year, $100 million Building the Future Workforce Initiative
  • Centrus Energy (LEU) signs contract with DoE for $900 mln award; intends to transition HALEU production cascade to commercial operation
  • Centrus Energy (LEU) finalizes $900 mln DOE contract, intends to transition existing HALEU cascade to commercial operation
  • Goldman Sachs (GS) announces it will contribute to "Trump Accounts" for eligible children of its employees
  • Jade Biosciences (JBIO) entered a License Agreement with Paragon Therapeutics, Inc. on June 29, 2026
  • Labcorp Holdings Inc. (LH): GENFIT announces the coverage and future reimbursement by U.S. Medicare for NASHnext, a non-invasive blood test available through Labcorp
  • Meta Platforms (META) to launch social AI app with games, according to Business Insider
  • Microsoft (MSFT) planning to overhaul its AI application, according to The Information
  • OpenAI discussed giving the U.S. government a 5% stake. FT
  • Red Cat Holdings (RCAT) announces that Teal Drones Inc. has advanced to Gauntlet II of the Drone Dominance Program
  • Roche (RHHBY) announced its Phase III Krascendo 1 trial met its primary and key secondary endpoints, with investigational KRAS G12C inhibitor divarasib
  • Six Flags Entertainment (FUN) amended COO Tim Fisher employment agreement to, among other things, provide that the term of Mr. Fisher’s Employment Agreement will expire on December 15, 2026
  • SK hynix Inc. (SKHY) removing price cap related to memory long-term agreements, according to Green Economy News
  • Softbank (SFTBY) reopens talks on $10 bln OpenAI-backed loan, according to Reuters
  • State Street (STT) Investment Management's SPYM selected as exclusive default ETF for Trump Accounts
  • Stratus Properties (STRS) announces initial liquidating distribution of $5/share to stockholders and intention to voluntarily delist from Nasdaq and deregister with SEC
  • Tesla (TSLA) placed cap on employee AI spending at $200/week, according to The Information
  • T-Mobile US (TMUS): FCC approved a spectrum assignment exchange between TMobile US & and Grain Management
  • Vertex Pharma (VRTX) receives FDA approval to expand CASGEVY use to children ages 2 and older
  • Vishay (VSH) introduces new ready-to-use multi-turn absolute position sensor designed for high accuracy and long term stability in demanding environments
  • Walt Disney (DIS) agrees to UK and France content deal with Anime, according to Advanced Television
  • Western Alliance Bancorp (WBA) sued by Jefferies (JEF) over frozen assets, according to Bloomberg
  • Whirlpool (WHR) discloses restructuring actions related to the closure of its Supsa manufacturing facility in Apodaca, Mexico
  • Zumiez (ZUMZ) CFO Christopher C. Work gave notice of his decision to step down from his position with the Company

• Upgrades:
  • Adobe (ADBE) upgraded to Buy from Hold at HSBC, tgt $308
  • Bayer (BAYRY) upgraded to Buy from Hold at Deutsche Bank
  • BCE (BCE) upgraded to Buy from Hold at TD Securities
  • Chevron (CVX) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $210
  • Palantir (PLTR) upgraded to Buy from Neutral at DA Davidson, tgt $175
  • Pandora (PANDY) upgraded to Neutral from Sell at UBS
  • Silicom (SILC) upgraded to Buy from Hold at Needham, tgt $60
• Downgrades:
  • AGNT Inc. (AGNT) downgraded to Neutral from Buy at DA Davidson, tgt $6.50
  • Dana Inc (DAN) downgraded to Equal Weight from Overweight at Barclays; tgt $33
  • Greenbrier (GBX) downgraded to Neutral from Positive at Susquehanna; tgt $52
  • SkyWest (SKYW) downgraded to Neutral from Buy at Goldman Sachs, tgt $115
  • Trip.com (TCOM) downgraded to Hold from Buy at China Renaissance, tgt $42
• Others:
  • Crinetics (CRNX) initiated with a Buy at UBS, tgt $55
  • Honeywell Aerospace (HONA) initiated with an Outperform at BMO Capital, tgt $276
  • Infleqtion (INFQ) initiated with a Buy at Canaccord, tgt $22
  • JFB Construction (JFB) initiated with a Buy at Roth Capital, tgt $9
  • Kimball Electronics (KE) initiated with a Sector Weight at KeyBanc
  • Larimar Therapeutics (LRMR) assumed with a Buy at H.C. Wainwright, tgt $10
  • Marti Technologies (MRT) initiated with a Buy at Alliance Global, tgt $4
  • Mobility Global (MBGL) initiated with a Neutral at Baird, tgt $23
  • Mobility Global (MBGL) initiated with a Sector Perform at RBC Capital, tgt $23
  • NiSource (NI) initiated with an Outperform at RBC Capital, tgt $52
  • On Holding (ONON) resumed with an Overweight at JPMorgan, tgt $51
  • PSEG (PEG) initiated with a Sector Perform at RBC Capital, tgt $81
  • Puma (PMMAF) resumed with a Neutral at JPMorgan
  • SpaceX (SPCX) initiated with a Neutral at Daiwa, tgt $175
  • Waystar (WAY) initiated with an Overweight at KeyBanc, tgt $30

• Econ Data (Friday):
  • Market Closed

• 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