After Hours Report

Stocks finished broadly lower on Tuesday as a steep reversal across semiconductor and other momentum-oriented stocks outweighed gains in several defensive and commodity-linked areas. The S&P 500 (-0.7%) and Nasdaq Composite (-1.3%) suffered the largest declines, while the DJIA (-0.2%) fared considerably better thanks to its limited semiconductor exposure and strength in several of its defensive components.

Technology was at the center of the retreat. The information technology sector (-1.9%) finished at the bottom of the sector standings as the PHLX Semiconductor Index tumbled 5.0%, erasing yesterday's advance and then some. Memory stocks were among the weakest areas after rallying Monday, while pronounced selling across optical and electronic manufacturing names added to the pressure.

Fabrinet (FN 482.52, -116.06, -19.39%) plunged despite reporting better-than-expected Q4 results and issuing above-consensus Q1 guidance. Although Fabrinet is not an S&P 500 component, related names Lumentum (LITE 873.31, -95.59, -9.87%), Coherent (COHR 306.12, -45.10, -12.84%), and Teradyne (TER 404.29, -38.85, -8.77%) were among the index's worst performers, adding to the weakness across the semiconductor-related trade.

The selloff also spilled into industrial names tied to the semiconductor and AI infrastructure buildout, helping push the industrials sector (-1.5%) firmly lower. Separately, Caterpillar (CAT 840.83, -40.82, -4.63%) was another notable laggard after posting a solid gain yesterday.

Weakness among the market's largest growth stocks added to the pressure, with the Vanguard Mega Cap Growth ETF falling 1.1%. Meta Platforms (META 543.67, -25.30, -4.45%) was a notable laggard and weighed on the communication services sector (-0.6%) as opening arguments began in a child social-media addiction case.

Persistently high borrowing costs remained another obstacle for growth stocks, even as Treasury yields backed away from their highest levels of the morning. The rate backdrop also remained particularly relevant for housing after today's economic data showed a sharp decline in July housing starts and a larger-than-expected drop in pending home sales.

There were still meaningful pockets of strength. The health care (+1.6%) and consumer staples (+1.1%) sectors benefited from the rotation toward defensive stocks, helping the DJIA avoid the steeper losses seen elsewhere. Johnson & Johnson (JNJ 271.12, +8.75, +3.33%) and Coca-Cola (KO 88.82, +1.84, +2.12%) were among the positive contributors, while Amgen (AMGN 425.28, +5.90, +1.41%) rose to a fresh all-time high, extending its advance since the company's Q2 beat-and-raise earlier this month.

On the earnings front, Home Depot (HD 337.67, -0.21, -0.06%) gave up a firm gain following a solid Q2 report in which adjusted earnings, revenue, total comparable sales, and U.S. comps topped expectations. The company nevertheless maintained its FY27 outlook as management continued to point to challenging housing conditions and weakness in larger discretionary projects.

The energy sector (+1.8%) topped the sector standings as crude oil continued its recent climb amid renewed geopolitical uncertainty. WTI crude approached $85 per barrel as the market digested an overnight strike on a cargo ship in the Strait of Hormuz and President Trump's acknowledgment that another ceasefire with Iran is not being pursued. Crude ultimately settled $0.42 higher (+0.5%) at $84.88 per barrel.

The market's underlying tone also deteriorated as the session progressed. Early strength across several sectors had initially kept the broader market relatively insulated from the technology selloff, but the weakness eventually spread, leaving the Russell 2000 (-1.3%) and S&P MidCap 400 (-1.6%) with sizable losses alongside the major averages. Tuesday's session ultimately reflected a pronounced unwind in some of the market's strongest momentum trades, led by semiconductors and related AI infrastructure names. Defensive and energy stocks offered meaningful support, particularly to the DJIA, but elevated rates, higher oil prices, and increasingly broad selling left the market with a considerably weaker finish than the relatively narrow technology-driven decline seen earlier in the day.

U.S. Treasuries staged a modest rebound on Tuesday, but not before opening selling briefly lifted the 30-year yield to a fresh high for the year (5.326%). The 2-year note yield finished unchanged at 4.18%, and the 10-year note yield settled down two basis points to 4.71%. 

• Russell 2000: +21.6% YTD
• S&P Mid Cap 400: +16.6% YTD
• Nasdaq Composite: +13.1% YTD
• S&P 500: +12.4% YTD
• DJIA: +11.0% YTD

• July Housing Starts 1.239 mln (Briefing.com consensus 1.360 mln); Prior was revised to 1.415 mln from 1.427 mln, July Building Permits 1.443 mln (Briefing.com consensus 1.390 mln); Prior was revised to 1.374 mln from 1.367 mln
  • The key takeaway from the report, though, is the broad-based weakness in single-unit starts seen in July, which is a month that featured rising interest rates that increased the cost of financing.
• July Import Prices -0.4%; Prior was revised to -0.3% from 0.3%
• July Import Prices ex-oil 0.4%; Prior was revised to 0.1% from 0.4%
• July Export Prices -1.3%; Prior was revised to -0.7% from -0.6%
• July Export Prices ex-ag. -1.5%; Prior -0.7%
• July Industrial Production 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.3% from 0.1%, July Capacity Utilization 76.3% (Briefing.com consensus 76.3%); Prior was revised to 76.2% from 76.1%
  • The key takeaway from the report is that gains were registered by all three major industry groups, led by a 0.5% increase in utilities that stemmed from hot weather increasing air-conditioning use.
• July Pending Home Sales -2.3% (Briefing.com consensus 1.3%); Prior was revised to -4.8% from -5.4%

 Overseas:

• Europe: DAX -0.7%, FTSE +0.1%, CAC -0.8%
• Asia: Nikkei -2.5%, Hang Seng +0.1%, Shanghai +0.2%

Commodities:

• Crude Oil +0.42 @ 84.88
• Nat Gas +0.09 @ 2.78
• Gold -53.20 @ 4420.80
• Silver -2.16 @ 64.07
• Copper -0.13 @ 6.49

After-Hours Spotlight:

• Backblaze (BLZE) launches $150 mln convertible senior notes offering due 2031...BLZE -7.6%
• Jack Henry (JKHY) reports Q4 (Jun) results, beats on revs; guides FY27 revs above consensus...JKHY +1%
• Keysight (KEYS) beats by $0.59, beats on revs; guides Q4 EPS above consensus, revs above consensus...KEYS +1.6%
• La-Z-Boy (LZB) misses by $0.06, misses on revs; guides Q2 revs below consensus...LZB -15.2%
• Mercury (MRCY) misses by $0.01, beats on revs...MRCY -9.5%
• Rocket Lab (RKLB) selected for Space Force Space Data Network consortium; wins $12 mln in delivery orders...RKLB flat
• Toll Brothers (TOL) beats by $0.04, beats on revs, Delivered homes of 2,662; Issues Q4 guidance, sees Deliveries of 3,450-3,550 units...TOL +0.2%
• WhiteFiber (WYFI) proposes $250 mln convertible notes private placement, tied to 2031 note exchanges...WYFI -20.6%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Amer Sports (AS) beats by $0.11, beats on revs
  • Baidu (BIDU) misses by RMB2.13, reports revs in-line
  • BHP Group (BHP) reports FY26 results
  • Einride (ENRD) reports first half 2026 results
  • Fabrinet (FN) beats by $0.29, beats on revs; provides Q1 (Mar) and FY27 guidance
  • Flexsteel Industries, Inc. (FLXS) Reports Fourth Quarter and Fiscal Year 2026 Results; Continued Net Sales Growth and Record Diluted Earnings Per Share
  • Home Depot (HD) beats by $0.19, beats on revs; reaffirms FY27 EPS guidance, revs guidance
  • Infleqtion (INFQ) reports Q2 results; provides FY26 revs outlook
  • Klarna Group plc (KLAR) beats by $0.06, beats on revs; guides Q3 revs below consensus; guides FY26 revs below consensus
  • Pony AI (PONY) reports Q2 results; misses on revs
  • VNET Group (VNET) reports Q2 results
  • XP (XP) beats by BRL0.08, beats on revs
• General News
  • A ship was attacked in the Strait of Hormuz as President Trump rules out extending ceasefire. CNBC
  • Airlines debate cutting ticket prices as jet fuel prices ease. FT
  • Lakers governor Jeanie Buss says family stake cannot be sold to Big Iger and Joshua Kushner. CNBC
  • Pentagon considering smaller military presence in the Gulf once Iran war ends, according to Washington Post
  • OpenAI introduces ChatGPT for Teens
  • Anthropic's pre-IPO lending facility is expected to exceed $10 bln, according to Bloomberg
  • Canada and U.S. expected to meet again ahead of tariff deadline tonight, according to CBC
  • Pennsylvania Governor Josh Shaprio will restrict data center development in Pennsylvania, according to Philadelphia Inquirer
  • TikTok considering feature that allow users to send money through direct messages, according to Bloomberg
  • The Trump administration is downplaying prospects of deal with Canada ahead of tariffs tonight, according to Bloomberg
  • Aon (AON) names Nadin Virani interim CFO; Edmund Reese exits role immediately
  • Alibaba (BABA) supported LimX Dynamics planning $300 mln Hong Kong IPO, according to Bloomberg
  • Amazon (AMZN) plans to increase investment in Louisiana to $18 bln
  • Amylyx Pharmaceuticals (AMLX) announces positive topline results from phase 3 LUCIDITY clinical trial of avexitide in post-bariatric hypoglycemia
  • Apple (AAPL) announces changes for apps in the European Union - will go into effect on October 1
  • AVITA Medical (RCEL) says PermeaDerm study met primary endpoint, showed 70% cost advantage vs allograft
  • BeOne Medicines (ONC) renews BRUKINSA access partnership through 2028
  • BlossomHill Therapeutics (BLSM) announces FDA fast track designation for BH-30643, a macrocyclic OMNI-EGFR inhibitor for the treatment of advanced EGFR C797S-positive NSCLC
  • BP (BP) has resumed trading in Venezuelan oil market, according to Bloomberg
  • BRP's (DOO) Sea-Doo unveils 2027 PWC, pontoon lineup with new 350 hp and 110 hp engines
  • CACI (CACI) selected on $981 mln U.S. Space Force NITE-STAR IDIQ
  • Canadian Solar (CSIQ) says Maxeon (MAXN) U.S. patent litigation resolved in its favor
  • Citi (C) launches Custody+ suite and completes U.S. rollout of real-time asset servicing
  • Coherent (COHR) begins customer sampling of 300mm silicon carbide substrates for AI infrastructure
  • Coherus Oncology (CHRS) declares special dividend of non-tradable CVRs tied to legacy biosimilar asset sales
  • Collective Mining (CNL) completes Guayabales access road; adit construction on track for Q4 2026, Trap underground drilling set for Q1 2027
  • Comcast's (CMCSA) Peacock raises prices of subscription plans effective August 18, 2026
  • Costco (COST) planning to introduce branded Medicare plans. WSJ
  • Dell's (DELL) Alienware extends Team Liquid esports partnership through 2031
  • Descartes (DSGX) launches AI-powered document management for customs and shipment processing
  • Diageo plc (DEO) to eliminate 2000 jobs, according to Reuters
  • Dime Commercial Bank (DCOM) launches affordable housing group, hires Michael Camoia to lead
  • D-Wave (QBTS) says NTT DOCOMO deployed second production quantum network application
  • Duke Energy (DUK) Foundation launches $175,000 South Carolina Main Street grant program
  • Einride (ENRD) partners with Tesla (TSLA) on planned 500-Semi deployment
  • Equinor (EQNR) joins Chevron (CVX) in Namibia exploration licence
  • Firefly Aerospace (FLY) onboarded to NASA spacecraft processing contract at Vandenberg
  • GE Vernova (GEV)-led ARPA-E nuclear fuel recycling project adds SHINE
  • Globant (GLOB) names former ServiceNow executive Sarab Narang CEO of Glob.AI
  • GSK plc (GSK): Nucala (mepolizumab) receives a positive reimbursement recommendation from CDA-AMC for adults with chronic obstructive pulmonary disease Français
  • Haemonetics (HAE) entered into a supply agreement with CSL Plasma
  • Himalaya Shipping Ltd. (HSHP) discloses that its contracted CFO Vidar Hasund has sold 100,000 shares at an average price of NOK149.31 per share
  • Himax (HIMX) palm vein authentication technology integrated into WAFERLOCK smart lock
  • Hims & Hers Health (HIMS) CEO Andrew Dudum on CNBC says he expects the price of GLP-1s to drop to $40-50 month
  • Hon Hai Precision (HNHPF): Foxconn subsidiary invests $358.4 mln in FuKang Technology
  • Infleqtion (INFQ) opens Colorado Quantum Innovation Center as new global headquarters
  • Infosys (INFY) signs long-term AI-led enterprise transformation deal with Knorr-Bremse
  • ITW (ITW) unit Teks launches Elite metal-to-metal screws for trade applications
  • Kaiser Aluminum (KALU) names Fred Stephan CEO, president effective Nov. 1; Keith Harvey to become executive chairman
  • Klarna (KLAR) announces planned CFO, CMO transitions effective in early 2027
  • Kratos Defense and Security (KTOS): USMC Valkyrie demonstrates beyond-line-of-sight command and control in flight at U.S. Navy test range
  • Kulicke & Soffa (KLIC) names former Enovix CEO Raj Talluri as president, CEO
  • L3Harris (LHX) recently showcased a variety of interoperable, multi-domain capabilities at the Army’s Project Convergence-Capstone 6 at Fort Irwin, California
  • Legacy Housing (LEGH) Board appointed Kenneth E. Shipley as Chairman and CEO effective August 13
  • Lockheed Martin (LMT) space joint venture with Boeing (BA) secured $1.5 bln bond deal, according to Bloomberg
  • McEwen Mining (MUX) discusses further financing with Rio (RIO), targeting $4 bln for Los Azules project, according to Bloomberg
  • Meta (META) social media addiction trial begins today. Bloomberg
  • Microsoft (MSFT): China removes the older version of Microsoft Windows from government agencies to reduce its dependence on foreign technology. Bloomberg
  • NetScout Systems (NTCT) extends adaptive DDoS defense protection to address the rising business cost of weaponized broadband and IoT devices
  • NewtekOne (NEWT) expands Glia partnership, adds voice to AI-powered client support platform
  • Nokia (NOK) prepares to close a majority of facilities in China over the coming months, according to South China Morning Post
  • NVIDIA (NVDA): LG Electronics announced that it is accelerating its robotics collaboration with NVIDIA
  • NVIDIA (NVDA): AI chip startup Etched is taking talent from Nvidia. WSJ
  • Oklo Inc. (OKLO) is building first U.S. nuclear reactor in years, according to WSJ
  • Parsons (PSN) wins five-year Knoxville airport terminal modernization contract
  • Parsons (PSN) awarded a $664.8 mln Army contract for technical, logistics, and program management support
  • Roche Canada (RHHBY) and the pan-Canadian Pharmaceutical Alliance (pCPA) successfully complete negotiations for Perjeta (pertuzumab) for the neoadjuvant treatment of aggressive early stage breast cancer
  • Rocket Lab (RKLB) added to U.S. Space Force's $981 mln NITE-STAR IDIQ program
  • Sanofi (SNY): EMA announces withdrawal of application for variation to marketing authorisation for Dupixent
  • Select Water (WTTR) expands Northern Delaware water deal with large public operator; to invest $100 mln-$120 mln
  • Stantec (STN) amends Normal Course Issuer Bid to increase the maximum shares Stantec may repurchase to 5,703,349 common shares (or 5% of Stantec’s shares) from 2,281,339 (or 2%)
  • Targa (TRGP) signs 20-year ExxonMobil midstream deals, adds three Permian Delaware gas plants
  • Texas Capital's (TCBI) TXS and OILT to move primary listings to Texas Stock Exchange in September
  • Textron (TXT) awarded a $231 mln modification to previously awarded Navy contract
  • Tilray (TLRY) supports progress in Germany’s medical cannabis framework and supports continued policy development
  • Turning Point Brands (TPB)-backed ALP launches limited-edition Frontier Collection nicotine pouches
  • UGI Corp (UGI): KKR (KKR) recently bid $9 bln for UGI, according to WSJ
  • VinFast Auto (VFS): VinSpace announces launch contract with SpaceX (SPCX)
  • Virtu (VIRT) launches notional order capability for 10b-18 corporate buyback execution
  • Vishay (VSH) launches compact short-distance proximity sensor for battery-powered wearables
  • VNET (VNET) signs strategic cooperation agreement with CATL to develop compute-energy infrastructure
  • Wendy's (WEN): Pete Suerken, President, US has notified co of his intention to resign; WEN has determined to eliminate the position of President, US and create a new position of Chief Operations Officer
  • Western Union (WU): Verizon's (VZ) Total Wireless announces an expanded partnership with Western Union, bringing a suite of Western Union’s financial services to the Total Wireless retail footprint nationwide

• Upgrades:
  • Acadia Realty Trust (AKR) upgraded to Overweight from Sector Weight at KeyBanc, tgt $25
    
  • America Movil (AMX) upgraded to Overweight from Neutral at JPMorgan, tgt $32
    
  • Americold Realty Trust (COLD) upgraded to Neutral from Underperform at BofA Securities, tgt $16
    
  • Bath & Body Works (BBWI) upgraded to Buy from Neutral at Citi, tgt $25
    
  • Duolingo (DUOL) upgraded to Buy from Neutral at DA Davidson, tgt $160
• Downgrades:
  • Abercrombie & Fitch (ANF) downgraded to Market Perform from Outperform at Raymond James
    
  • Ameresco (AMRC) downgraded to Neutral from Outperform at Baird, tgt $32
    
  • Autohome (ATHM) downgraded to Underperform from Neutral at BofA Securities, tgt $19
    
  • EyePoint (EYPT) downgraded to Neutral from Buy at H.C. Wainwright
    
  • EyePoint (EYPT) downgraded to Sector Perform from Outperform at RBC Capital, tgt $5
    
  • Globalstar (GSAT) downgraded to Hold from Buy at Craig-Hallum, tgt $90
    
  • Hermes (HESAY) downgraded to Sector Perform from Outperform at RBC Capital
    
  • Kite Realty Group (KRG) downgraded to Sector Weight from Overweight at KeyBanc
    
  • Millicom (TIGO) downgraded to Neutral from Overweight at JPMorgan, tgt $105
    
  • Norwegian Cruise Line (NCLH) downgraded to Neutral from Outperform at Mizuho, tgt $17
    
  • Ramaco Resources (METC) downgraded to Neutral from Outperform at Baird, tgt $13
• Others:
  • Centrus Energy (LEU) initiated with an Equal Weight at Barclays, tgt $207
    
  • Corcept Therapeutics (CORT) assumed with a Buy at Truist, tgt $164
    
  • Definium Therapeutics (DFTX) initiated with a Buy at BofA Securities, tgt $75
    
  • Editas Medicine (EDIT) initiated with a Buy at Ladenburg Thalmann, tgt $6
    
  • Enliven Therapeutics (ELVN) initiated with an Overweight at Barclays, tgt $78
    
  • Enliven Therapeutics (ELVN) initiated with an Outperform at William Blair
    
  • Freenome (FRNM) initiated with a Buy at TD Cowen, tgt $17
    
  • Gorilla Technology (GRRR) initiated with a Buy at Compass Point, tgt $44
    
  • Hilton Grand Vacations (HGV) initiated with a Neutral at Susquehanna, tgt $50
    
  • Kanzhun (BZ) initiated with a Neutral at BofA Securities, tgt $19
    
  • Marriott Vacations Worldwide (VAC) initiated with a Neutral at Susquehanna, tgt $110
    
  • Nuvation Bio (NUVB) initiated with an Overweight at JPMorgan, tgt $13
    
  • Obsidian Therapeutics (OBX) initiated with an Outperform at LifeSci Capital, tgt $43
    
  • Rani Therapeutics (RANI) initiated with a Buy at Chardan, tgt $6
  • Scribe Therapeutics (SCTX) initiated with an Early-Stage Biotech rating at Goldman Sachs
    
  • Scribe Therapeutics (SCTX) initiated with a Buy at Guggenheim, tgt $50
    
  • Scribe Therapeutics (SCTX) initiated with an Outperform at Leerink, tgt $37
    
  • Scribe Therapeutics (SCTX) initiated with an Overweight at Wells Fargo, tgt $60
    
  • Sinda (SIND) initiated with a Speculative Buy at Canaccord, tgt $19
    
  • Sunshine Silver Mining (SSMR) initiated with a Speculative Buy at Canaccord, tgt $20
  • Travel + Leisure (TNL) initiated with a Positive at Susquehanna, tgt $95
    
  • WaterBridge Infrastructure (WBI) resumed with an Overweight at JPMorgan, tgt $38

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 3.6%)
  • 10:30 ET: Weekly crude oil inventories (prior +17.4 mln)

• Earnings:
  • Monday (August 17)
    • Pre-Market: None
    • After-Hours: FN
  • Tuesday (August 18)
    • Pre-Market: AS BIDU HD KLAR
    • After-Hours: JKHY KEYS LZB MRCY TOL ZTO
  • Wednesday (August 19)
    • Pre-Market: ADI EL KC LOW TGT TJX VIK
    • After-Hours: BILL COTY NDSN BULL WOLF
  • Thursday (August 20)
    • Pre-Market: AAP BABA ATHM NTES SCSC WMT DE
    • After-Hours: FLO OSIS ROST
  • Friday (August 21)
    • Pre-market: BJ BKE
    • Afternoon: None