After Hours Report

The major averages finished mixed as renewed hostilities between the U.S. and Iran sent oil prices sharply higher, pressuring much of the market while an afternoon rebound in semiconductor stocks helped offset some of the weakness. The S&P 500 (-0.3%) closed modestly lower, while the DJIA (-1.1%) lagged amid broad cyclical weakness. The Nasdaq Composite (+0.2%) bucked the trend, climbing back into positive territory as strength across large-cap technology stocks softened the impact of the oil-driven selloff.

The U.S. struck Iranian targets in response to attacks on commercial ships in the Strait of Hormuz, prompting President Trump to declare the ceasefire effectively over and threaten additional strikes. Crude oil futures settled $3.05 higher (+4.3%) at $73.53 per barrel after being up more than 6% earlier in the session.

The surge in oil prices pressured much of the market outside of energy and technology. The materials sector (-2.5%) posted the steepest decline, with packaging companies such as Smurfit Westrock plc (SW 42.08, -2.92, -6.49%) moving lower as higher energy costs threatened margins. Sherwin-Williams (SHW 330.57, -11.69, -3.42%) was also a notable laggard, contributing to the DJIA's underperformance.

The consumer discretionary sector (-1.6%) followed close behind as travel-related stocks, couriers, and homebuilders retreated amid the surge in oil prices and Treasury yields. The iShares U.S. Home Construction ETF retreated 4.0%.

The financials (-1.9%), communication services (-1.4%), and rate-sensitive real estate (-1.6%) sectors also underperformed, while the consumer staples sector (-0.3%) held up relatively well.

Unsurprisingly, the energy sector (+1.5%) finished atop the leaderboard, though it pared stronger gains from earlier in the session after President Trump said any developments involving Iran would be resolved quickly, including any impact on oil prices, and reiterated that he does not expect the conflict to restart.

The information technology sector (+1.4%) provided an important counterweight as semiconductor stocks strengthened into the close. The PHLX Semiconductor Index climbed 2.2%, helping the market-weighted S&P 500 (-0.3%) considerably outperform the S&P 500 Equal Weight Index (-1.2%).

NVIDIA (NVDA 204.08, +7.15, +3.63%) outperformed after reports that China will allow limited H200 chip purchases for select AI firms, while Broadcom (AVGO 388.69, +17.91, +4.83%) advanced after Apple (AAPL 313.28, +2.62, +0.84%) expanded its multiyear U.S. supply agreement for wireless-connectivity components and custom silicon. Akamai Tech (AKAM 126.57, +12.20, +10.67%) was the top-performing S&P 500 stock after being selected as a strategic security partner for World Wide Technology's AI infrastructure initiative, reinforcing its expanding role in enterprise AI security deployments.

On the policy front, investors also digested the June FOMC minutes, which reinforced the Fed's data-dependent approach while acknowledging persistent inflation pressures and uncertainty tied to geopolitical developments. Participants continued to emphasize that future policy decisions will depend on incoming economic data, while noting that markets have shifted toward expecting fewer rate cuts over the coming year.

Although the surge in oil prices weighed broadly on equities, today's action ultimately did little to alter the market's recent leadership trends. Buy-the-dip interest emerged across semiconductor stocks following yesterday's sharp retreat, while favorable corporate developments involving NVIDIA and Broadcom helped cushion the major indices even as higher oil prices continued to pressure much of the broader market.

U.S. Treasuries faced another round of selling on Wednesday, which drove yields on 5-year note and shorter tenors back to their highest settlement levels of the year while yields on 10-year and 30-year remained below their May highs. The U.S. Treasury followed yesterday's good 3-year note offering with another solid 10-year note reopening ahead of tomorrow's 30-year bond reopening. The 2-year note yield settled up four basis points to 4.20%, and the 10-year note yield settled up four basis points to 4.57%. 

• Russell 2000: +19.1%
• S&P Mid Cap 400: +13.0%
• Nasdaq Composite: +11.3%
• S&P 500: +9.3%
• DJIA: +8.9%

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.2%; Prior 0.0%
• May Wholesale Inventories 0.1% (Briefing.com consensus 0.3%); Prior 0.6%
• Consumer credit decreased by $200 mln in May (Briefing.com consensus $18.9 bln) after increasing by a revised $20.8 bln (from $20.7 bln) in April. Revolving credit decreased by $5.3 bln while nonrevolving credit increased by $5.1 bln.

 Overseas:

• Europe: DAX -2.4%, FTSE -1.7%, CAC -2.2%
• Asia: Nikkei -2.1%, Hang Seng +3.0%, Shanghai -0.5%

Commodities:

• Crude Oil +3.05 @ 73.53
• Nat Gas -0.06 @ 3.21
• Gold -74.10 @ 4083.40
• Silver -2.77 @ 58.57
• Copper -0.12 @ 6.11

After-Hours Spotlight:

• AeroVironment (AVAV) introduces FY30 financial targets, including $3.5-$4.0 bln in revenue...AVAV +0.3%
• AZZ (AZZ)  beats by $0.16, beats on revs; raises FY27 EPS and revenue guidance...AZZ +7.6%
• CF Industries (CF) announces 20% increase in quarterly dividend to $0.60/share...CF flat
• Costco (COST) reports June adjusted comparable sales of +7%...COST -1.2%
• Eli Lilly (LLY) announces estimated Q2 2026 acquired IPR&D charges...LLY +0.1%
• First Majestic Silver (AG) reports Q2 2026 production results; announces updated 2026 production and cost guidance; names new CFO...AG +0.7%
• Honeywell (HON) updates 2026 financial guidance following HONA spin-off and reverse stock split...HON +0.6%
• Levi Strauss (LEVI) beats by $0.04, beats on revs; raises FY26 EPS and revenue guidance; also increases dividend...LEVI -5.2%
• PriceSmart (PSMT) misses by $0.04, beats on revs; plans for first club in Chile, eleventh club in Costa Rica...PSMT -1.1%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Estee Lauder (EL) discloses in SEC filing that it now expects cumulative restructuring and other charges of $1.75 bln
  • Exxon Mobil (XOM) discloses Q2 earnings considerations; Expects change in liquids prices to be a benefit of $3.5-$3.9 bln
  • Daimler Truck Holding (DTRUY) reports Q2 unit sales of 86,707 units
  • Endeavour Silver (EXK) produces 1,943,955 oz silver and 10,474 oz gold, for a total of 3.4 million silver equivalent oz in Q2 2026
  • Enerpac Tool Group (EPAC) beats by $0.10, beats on revs; guides FY26 EPS in-line, revs in-line
  • GSK plc (GSK) reaffirms FY26 guidance
  • Kura Sushi USA (KRUS) Announces Fiscal Third Quarter 2026 Financial Results
  • Nyxoah S.A. (NYXH) announces preliminary results for the second quarter of 2026
  • OR Royalties (OR) announces preliminary Q2 2026 GEO deliveries
  • Penguin Solutions (PENG) beats by $0.30, beats on revs; guides FY26 EPS above consensus, revs above consensus
• General News
  • U.S. strikes on Iran were four or five times bigger in scope and power than the previous strikes. Attacks were in retaliation for Iranian attacks on commercial ships. Axios
  • Iran targets Bahrain and Kuwait. AP
  • Democratic Senate candidate Graham Platner would stay in the race unless his replacement came from his wing of the party. Politico
  • President Trump at meeting with NATO Secretary General Mark Rutte says Iran ceasefire is "over"; says he will let negotiations keep talking if they want, but he thinks it is a waste of time dealing with them
  • U.S. Central Command says "forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway"
  • White House pressuring grocers to lower beef prices. WSJ
  • Affordable Care Act premiums will likely rise by double digits next year. NBC News
  • China to allow limited Nvidia (NVDA) H200 chip purchases for top AI firms amid supply shortage, according to The Information
  • AerCap (AER) signs lease agreements with China Southern Group for three Boeing 777-300ERSF freighters
  • Alibaba (BABA) shares higher by 10% pre-market; attributed to Stablestock post that says "A new Frost & Sullivan report puts Alibaba Cloud at 40.1% of China's full-stack AI cloud market — more than Baidu (BIDU), ByteDance's Volcano Engine and SenseTime combined."
  • Amazon (AMZN): Abrigo launches agentic AI lending platform, targets Q3 2026 rollout with AWS-powered automation
  • Amphastar Pharmaceuticals (AMPH) details International Medication Systems FDA warning letter
  • Apple (AAPL) expands Broadcom (AVGO) agreement with new $30 bln U.S. chip commitment
  • Apple (AAPL) lost a challenge against EU rules. Reuters
  • ARS Pharmaceuticals (SPRY) names Donn Casale as CEO effective today
  • AstraZeneca (AZN) & Daiichi Sankyo close to UK price deal for Enhertu, according to Bloomberg
  • Bombardier (BDRBF) congratulates long-standing partner Saab on being chosen to supply the GlobalEye for NATO's AEW&C fleet
  • Bombardier (BDRBF) to showcase defense offerings at Farnborough Airshow; will present first-ever Global 8000 aircraft aerial display
  • Coty (COTY) announces an agreement to transition the Gucci Beauty license back to Kering (PPRUF) for a consideration of approximately $400 mln
  • Deere (DE): An agreement announced by John Deere, the Federal Trade Commission, and five states ensures farmers and ranchers will have access to the diagnostic and repair tools that help them and independent service technicians maintain and repair their current and future John Deere equipment
  • Delta Air Lines (DAL) is offering Basic fares in premium products (Delta First, Delta Premium Select and Delta One — known as Basic Business) alongside Classic and Extra fares in select markets
  • ECARX Holdings (ECX) entered into a share exchange agreement with Qualcomm Ventures
  • Fiserv (FISV) discloses that President Dhivya Suryadevara has resigned
  • GameStop (GME) announces an increased share authorization
  • Genco Shipping & Trading Limited (GNK) comments on Diana Shipping Inc.’s misleading tender offer disclosures
  • Genworth Financial (GNW) announces that Tom McInerney, President & Chief Executive Officer, will be taking a temporary leave of absence to focus on his health
  • Hecla Mining (HL) and NVRO Metals sign an MOU to process 35,000-tonnes at the NVRO Metals Hub in the Northern Territory, Australia
  • HF Sinclair (DINO) names new president and COO in leadership reshuffle
  • Immunome (IMNM) NDA for varegacestat accepted by FDA
  • Ivanhoe Electric (IE) amends JV with Saudi Arabian Mining Company
  • Jack In The Box (JACK) Chief Supply Chain Officer Carl Mount agreed that he step out of his Executive Leadership Team role and transition into an advisory role through October 1, 2026
  • Jefferies (JEF) advises Carl Incahn on $5bln debt-financed bid as potential competitor to acquire Caesar's Entertainment (CZR), according to Bloomberg
  • Johnson & Johnson (JNJ) announced that the FDA approved the Dual Energy Thermocool Smarttouch SF Platform
  • Kodiak Gas Services (KGS) and Baker Hughes announce multi-year strategic agreement under which Baker Hughes will provide power generation solutions to support Kodiak’s energy infrastructure initiatives
  • Lyft (LYFT) to acquire Serveo's Spanish bikeshare business, expanding Urban Solutions operations across Europe
  • Marsh McLennan (MRSH) increases quarterly dividend 10% to $0.990/share from $0.900/share
  • Medline (MDLN) announces that it signed a new Prime Vendor agreement with Allina Health
  • Meta (META) will test "super sensing" AI glasses. FT
  • Meta Platforms (META) confirms breaking ground on Meta’s first data center in Canada; project represents an investment of more than CAD $13 billion
  • Microsoft's (MSFT) Obsidian cancels Avowed sequel, shifts focus to new Fallout game amid layoffs, according to Bloomberg
  • Nayax Ltd. (NYAX) discloses unusual activity was detected in one of the company's cloud accounts, which was immediately blocked and contained
  • Netflix (NFLX), Disney and Alphabet’s YouTube all interested in US broadcast rights to 2030 and 2034 World Cup, according to CNBC
  • OKYO Pharma (OKYO) advances urcosimod into Phase 3 after FDA meeting
  • Ovid Therapeutics (OVID) announces several executive appointments, including naming Charles Carter as CFO
  • Primo Brands Corporation (PRMB) announces leadership changes; to eliminate Chief Operating Officer role
  • Public Storage (PSA) discloses the departure of COO Chris Sambar
  • Richardson Elec (RELL) has been selected by C-Motive Technologies as its manufacturing partner to support the commercialization of C-Motive's innovative ZeroMag motor platform and Cascade H-Bridge medium voltage drive system
  • RLI Corp (RLI) launches Entertainment & Amusement insurance product and names Kym Tormey to lead the business
  • Rocket Lab USA (RKLB) delivers mission success for Space Force: Completes launch and on-orbit satellite tracking mission in record time
  • Salesforce (CRM): U.S. Air Force leverages missionforce to modernize sustainment and operations for $13.5 billion vehicle fleet
  • Sanofi (SNY): EU Commission seeks feedback on commitments offered by Sanofi over possible anticompetitive conduct regarding the promotion of a flu vaccine for vulnerable patients
  • Santander (SAN) overhauled its Asian business with new management. FT
  • Satellos (MSLE) reports six-month interim TRAILHEAD data showing reduced muscle fat fraction, increased effort, stable strength, lower CK and Favorable safety profile in DMD Adults Treated with SAT-3247
  • SCHMID Group N.V. (SHMD) announces an investment agreement with an institutional investor
  • SCHMID Group N.V. (SHMD) announces a repeat order exceeding EUR 37 mln from a leading Chinese customer for advanced HDI-ML and mSAP production equipment
  • Seres Therapeutics (MCRB) announced encouraging top-line results from an IST evaluating SER-155 in patients with irEC
  • SK Hynix (SKHY) offering is seeing strong demand. Reuters
  • SpaceX (SPCX) looking to launch a new model with Cursor, according to The Information
  • Target (TGT) restructures strategy team as new CEO pushes efficiency overhaul, according to Bloomberg
  • TechnipFMC (FTI) awarded subsea contracts by Equinor for multiple projects in Norway
  • Teck Resources (TECK): The United Steelworkers union welcomes the announcement by the Government of Canada launching the Canada Critical Minerals Accelerator and supporting the proposed expansion of Teck's Trail Operations in British Columbia
  • T-Mobile US (TMUS) appoints Chris Sambar Chief Enterprise Officer and evolves leadership team to advance next era of strategic growth and innovation
  • Vanda Pharma (VNDA) announces the U.S. Food and Drug Administration has granted Rare Pediatric Disease Designation to VCA-894A
  • Venu Holding Corp's (VENU) $1.5 billion development pipeline highlighted in VenuesNow cover story on National Amphitheater Boom
  • VinFast Auto (VFS) approach to building smarter mobility
  • Wealthfront (WLTH) reports select metrics for June 2026; Total Platform Assets increased 14.6% yr/yr to $99.1 bln
  • Wolfspeed (WOLF) files patent infringement lawsuit against Navitas Semiconductor

• Upgrades:
  • Dollar Tree (DLTR) upgraded to Neutral from Sell at Goldman, tgt $125
    
  • Dollar Tree (DLTR) upgraded to Outperform from Market Perform at Raymond James, tgt $140
    
  • Occidental Petroleum (OXY) upgraded to Outperform from In Line at Evercore ISI, tgt $65
    
  • Old Dominion Freight Line (ODFL) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $250
    
  • PROG Holdings (PRG) upgraded to Buy from Hold at Jefferies, tgt $60
    
  • RH (RH) upgraded to Neutral from Sell at Goldman, tgt $155
    
  • Tvardi Therapeutics (TVRD) upgraded to Outperform from Market Perform at Raymond James, tgt $10
    
  • Ultrapar (UGP) upgraded to Buy from Neutral at BofA Securities, tgt $7.40
    
  • Versigent (VGNT) upgraded to Buy from Hold at Deutsche Bank, tgt $50
• Downgrades:
  • Alcoa (AA) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $53
    
  • Bath & Body Works (BBWI) downgraded to Sell from Neutral at Goldman, tgt $19
    
  • Cincinnati Financial (CINF) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $201
    
  • Community Health (CYH) downgraded to Underweight from Equal Weight at Barclays, tgt $3
    
  • Globant (GLOB) downgraded to Market Perform from Outperform at Itau BBA, tgt $39
    
  • HCA Healthcare (HCA) downgraded to Equal Weight from Overweight at Barclays, tgt $427
    
  • Lemonade (LMND) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $75
    
  • Medpace (MEDP) downgraded to Neutral from Outperform at Robert W. Baird, tgt $547
    
  • Moelis (MC) downgraded to Sell from Neutral at UBS, tgt $60
    
  • Neptune Insurance (NP) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $34
    
  • Rio Tinto (RIO) downgraded to Underweight from Equal Weight at Morgan Stanley
    
  • The Hanover (THG) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $220
    
  • Travelers (TRV) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $356
    
  • Truist Financial (TFC) downgraded to Neutral from Buy at BofA Securities, tgt $56
    
  • Universal Health Services (UHS) downgraded to Equal Weight from Overweight at Barclays, tgt $179
    
  • Vale (VALE) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $16.50
• Others:
  • Affirm (AFRM) initiated with an Overweight at Barclays, tgt $97
    
  • Allegiant Travel (ALGT) reinstated with an Overweight at Barclays, tgt $145
    
  • Alliant Energy (LNT) initiated with a Hold at TD Cowen, tgt $83
    
  • Annovis Bio (ANVS) initiated with a Buy at Roth Capital, tgt $8
    
  • AT&T (T) assumed with an Underweight at Wells Fargo, tgt $18
    
  • Block (XYZ) initiated with an Overweight at Barclays, tgt $100
    
  • BridgeBio Oncology (BBOT) initiated with an Overweight at JPMorgan, tgt $27
    
  • Byline Bancorp (BY) resumed with a Market Perform at Raymond James
    
  • Carnival (CCL) initiated with a Market Perform at BMO Capital, tgt $30
    
  • Chime (CHYM) initiated with an Overweight at Barclays, tgt $26
    
  • DTE Energy (DTE) initiated with a Hold at TD Cowen, tgt $166
    
  • Fidelity Nat'l Info (FIS) initiated with an Equal Weight at Barclays, tgt $44
    
  • Fiserv (FISV) initiated with an Equal Weight at Barclays, tgt $58
    
  • German American Bancorp (GABC) resumed with a Market Perform at Raymond James
    
  • Global Payments (GPN) initiated with an Equal Weight at Barclays, tgt $81
  • Honeywell Aerospace (HONA) initiated with an Equal Weight at Morgan Stanley, tgt $255
    
  • Immuneering (IMRX) initiated with an Overweight at Cantor Fitzgerald, tgt $17
    
  • Jack Henry (JKHY) initiated with an Overweight at Barclays, tgt $170
    
  • Klarna (KLAR) initiated with an Equal Weight at Barclays, tgt $20
    
  • Mastercard (MA) initiated with an Overweight at Barclays, tgt $640
    
  • Midera Food (MFP) initiated with a Neutral at Robert W. Baird, tgt $40
    
  • Mobility Global (MBGL) initiated with an Overweight at Wells Fargo, tgt $27
    
  • Nayax (NYAX) initiated with an Equal Weight at Barclays, tgt $75
    
  • Old National Bancorp (ONB) resumed with a Market Perform at Raymond James
    
  • Old Second Bancorp (OSBC) resumed with an Outperform at Raymond James, tgt $26
  • Park National (PRK) resumed with a Market Perform at Raymond James
    
  • PayPal (PYPL) initiated with an Underweight at Barclays, tgt $42
    
  • Pershing Square (PS) initiated with a Buy at JonesResearch, tgt $39
    
  • Pinterest (PINS) initiated with a Buy at DA Davidson, tgt $26
    
  • ProMIS Neurosciences (PMN) initiated with a Buy at Roth Capital, tgt $19
    
  • Relay Therapeutics (RLAY) initiated with an Overweight at JPMorgan, tgt $28
    
  • Royal Caribbean (RCL) initiated with an Outperform at BMO Capital, tgt $370
  • Sempra Energy (SRE) initiated with a Buy at TD Cowen, tgt $110
    
  • Sensient Technologies (SXT) initiated with a Neutral at Rothschild & Co Redburn, tgt $125
    
  • Snap (SNAP) initiated with a Neutral at DA Davidson, tgt $5
    
  • Stock Yards Bancorp (SYBT) resumed with a Market Perform at Raymond James
    
  • Strategy (MSTR) initiated with an Overweight at Barclays, tgt $130
    
  • T-Mobile (TMUS) assumed with an Equal Weight at Wells Fargo, tgt $170
    
  • Toast (TOST) initiated with an Overweight at Barclays, tgt $35
    
  • Verizon (VZ) assumed with an Equal Weight at Wells Fargo, tgt $43
    
  • Viking Holdings (VIK) initiated with an Outperform at BMO Capital, tgt $115
    
  • Visa (V) initiated with an Overweight at Barclays, tgt $420
    
  • Wayfair (W) initiated with a Hold at Benchmark
    
  • Western Union (WU) initiated with an Underweight at Barclays, tgt $7
    
  • Wintrust Financial (WTFC) resumed with an Outperform at Raymond James, tgt $180
    
  • Zura Bio (ZURA) initiated with an Outperform at William Blair

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 220,000; prior 215,000) and Continuing Claims (prior 1.814 mln)
  • 10:00 ET: June Existing Home Sales (Briefing.com consensus 4.20 mln; prior 4.17 mln)
  • 10:30 ET: Weekly natural gas inventories (prior +87 bcf)

• Earnings:
  • Monday (July 6)
    • Pre-Market: None
    • After-Hours: None
      
    Tuesday (July 7)
    • Pre-Market: None
    • After-Hours:EPAC PENG
      
  • Wednesday (July 8)
    • Pre-Market: HELE
      
    • After-Hours: AZZ LEVI PSMT
      
  • Thursday (July 9)
    • Pre-Market: PEP SMPL
    • After-Hours: WDFC
  • Friday (July 10)
    • Monday: DAL
    • Afternoon: None