After Hours Report

Updated: 29-Sep-26 17:49 ET

Boeing wins contract for F/A-XX program

Tuesday's session ended with modest losses for the major averages, but the relatively quiet finish belied another weak showing beneath the surface. The S&P 500 (-0.2%), Nasdaq Composite (-0.1%), and DJIA (-0.3%) recovered from their midday lows, aided by semiconductor strength and a late-afternoon lift following remarks from New York Fed President John Williams, while participation remained weak across the broader market.

Stocks initially hovered near their flat lines before selling became more pronounced late in the morning. The retreat came despite a sizable decline in crude oil, which had provided some early encouragement following a report indicating that Middle Eastern oil exports have recovered to around their highest levels since the Iran war began, suggesting Iran could be losing some leverage over the Strait of Hormuz. WTI crude ultimately settled $3.18 lower (-3.4%) at $89.26 per barrel.

The decline removed some of the pressure that elevated energy prices have recently placed on the market, but stocks derived relatively little benefit as elevated Treasury yields remained a notable counterweight.

The major averages received a late-afternoon boost following remarks from New York Fed President John Williams, a voting FOMC member, who said there is "no need for urgency" following the Fed's September policy action and that policymakers have time to gather additional information. The comments prompted markets to dial back expectations for another rate hike at the October FOMC meeting, with the CME FedWatch Tool showing the implied probability of a hike falling to 49.3% from 70.9% yesterday.

Semiconductors provided one of the session's clearest sources of support. The PHLX Semiconductor Index rose 1.3%, bucking a 0.3% decline in the information technology sector and helping limit the Nasdaq's loss. Semiconductor-linked names such as Bloom Energy (BE 291.25, +28.38, +10.80%) also contributed to relative strength in the industrials sector (+0.2%), which was one of only four S&P 500 sectors to finish higher. A White House meeting attended by a number of prominent AI industry executives drew attention during the afternoon, with discussion touching on industry self-regulation and cooperation with local communities on data-center development, although the event did not produce a meaningful reaction in the market.

The utilities sector (+1.1%) stood comfortably atop the sector standings, rebounding from a weaker showing yesterday. The communication services sector (+0.4%) also outperformed, supported by a rebound in Meta Platforms (META 738.96, +23.34, +3.26%) after the stock gave back some of last week's double-digit advance during Monday's session.

The consumer discretionary sector (+0.1%) rounded out the positive side of the ledger, benefiting from several pronounced stock-specific gainers. Carvana (CVNA 63.63, +3.16, +5.23%) rallied alongside CarMax (KMX 59.26, +2.72, +4.80%) following the latter's better-than-expected Q2 report, while cruise-line stocks moved sharply higher. Carnival (CCL 25.14, +3.00, +13.53%) was a standout after reporting better-than-expected earnings and record Q3 revenue, with the broader cruise group also benefiting from the sharp decline in oil prices.

Conversely, the energy sector (-0.9%) finished at the bottom of the standings as crude oil retreated. The consumer staples sector (-0.5%) was another notable underperformer, with Walmart (WMT 106.83, -1.90, -1.75%) weighing on the group and the price-weighted DJIA after Target (TGT 156.45, -1.98, -1.25%) announced permanent price reductions on nearly 2,000 apparel, footwear, accessories, and home products ahead of the holiday season, raising the prospect of increased pricing pressure across general merchandise.

Fair Isaac (FICO 616.72, -224.17, -26.66%) was another major laggard and the worst-performing S&P 500 component. The stock plunged after FHFA Director Bill Pulte said Fannie Mae (FNMA 4.13, -0.27, -6.14%) and Freddie Mac (FMCC 3.81, -0.19, -4.81%) will move to a single pricing grid incorporating VantageScore alongside the existing FICO Classic model, increasing competition in a market where FICO has long held a dominant position.

The weakness extended beyond the large-cap indices, with the Russell 2000 falling 0.4% and the S&P Mid Cap 400 declining 0.1%. Only four S&P 500 sectors finished higher, reinforcing the disconnect between the relatively modest losses in the major averages and the weaker performance across much of the market. Strength in semiconductors and a handful of other pockets helped contain the index-level declines, but the lack of broader participation remains a concern alongside elevated Treasury yields.

Attention now turns to a busy slate of economic data Wednesday morning, headlined by the August Personal Income and Spending report. The headline PCE Price Index is expected to increase 0.4% month-over-month, while the core PCE Price Index, which excludes food and energy, is expected to rise 0.3%. With Treasury yields remaining elevated and market participation continuing to lag, the inflation data will provide another important test for a market that has become increasingly sensitive to the interest-rate outlook.

U.S. Treasuries finished mixed after yields climbed sharply despite falling oil prices. The 10-year yield reached 5.29%, while the 30-year yield hit its highest level since 2002 at 5.62%, before yields retreated in the afternoon after New York Fed President Williams said there was no need for urgency following the Fed's September rate hike. The 2-year note yield settled down four basis points to 4.89%, and the 10-year note yield settled up one basis point to 5.26%.

Nasdaq Composite: +15.3% YTD
Russell 2000:+13.3% YTD
S&P 500: +12.1% YTD
S&P Mid Cap 400: +9.5% YTD
DJIA: +6.8% YTD

Reviewing today's data:

Jul FHFA Housing Price Index 0.3% (Prior 0.0%)
Jul S&P Case-Shiller Home Price Index 2.5% (Prior 2.2% revised from 2.1%)
The Conference Board's Consumer Confidence Index decreased to 81.9 in September (Briefing.com consensus 90.0) from a downwardly revised 88.6 (from 89.4) in August. In the same period a year ago, the index stood at 95.6.
- The key takeaway from the report is that consumer confidence weakened for both present conditions and the six-month outlook, with elevated prices for goods and services factoring into that assessment.
Aug JOLTs - Job Openings 7.079M (Briefing.com consensus 7.150M; Prior 7.335M revised from 7.271M)

Overseas:

Europe: DAX flat, FTSE -0.5%, CAC -0.5%
Asia: Nikkei -0.6%, Hang Seng -0.5%, Shanghai +0.2%

Commodities:

Crude Oil -3.18 @ 89.26
Nat Gas -0.11 @ 3.00
Gold +8.70 @ 4180.40
Silver -0.66 @ 61.15
Copper -0.04 @ 6.61

After-Hours Spotlight:

DEA judge pauses marijuana rescheduling hearing, according to Marijuana Moment...MSOS -6.5%
Ameriprise (AMP) authorizes additional $5.5 bln share repurchase program through Sept. 2028...AMP +0.6%
Boeing (BA) wins more than $20 bln U.S Navy award contract for F/A-XX program...BA +3.0%
Concentrix (CNXC) beats by $0.21, misses on revs; provides Q4 (Dec) and FY26 guidance...CNXC -9.6%
Granite (GVA) JV wins $165 mln Guam defense task order...GVA -2.0%
MongoDB (MDB) authorizes additional $1.0 bln for share repurchases – 8-K filing...MDB -0.1%
Pyxis Oncology (PYXS) launches registered public offering of stock, pre-funded warrants and common warrants...PYXS -5.5%
Salesforce (CRM) signs definitive agreement to acquire Listen Labs...CRM -0.1%
Talen (TLN) names Terry Nutt CEO effective Jan. 1; launches $1.5 bln accelerated share repurchase..TLN +1.0%
Workday (WDAY) discloses reduction of current workforce of approximately 2.5%; reaffirms Q3 and FY27 guidance...WDAY -0.9%

Today's News Summary:

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

Earnings/Guidance (Full E arnings Calendar):
- AAR (AIR) Corp beats by $0.20, beats on revs (follow up from last night's earnings)
- British American Tobacco (BTI) hosts Capital Markets Day; targets mid-teens New Category revenue growth through 2030, maintains FY26 outlook
- CarMax (KMX) beats by $0.43, beats on revs; plans to resume share repurchases in Q3
- Gen Digital (GEN) discloses that Q2 and FY27 results are tracking toward the high end of guidance
- Genius Sports (GENI) reaffirms FY26 guidance
- IDT (IDT) Corp reports fourth quarter and FY26 results
- Iovance Biotherapeutics (IOVA) raises FY26 revenue guidance due to record Q2 demand and sustained demand for Amtagvi and Proleukin
- Jefferies (JEF) beats by $0.08, beats on revs
- Vail Resorts (MTN) reports Q4 (Jul) results, beats on revs; issues FY27 guidance, including net income of $158-$233 mln
General News
- President Trump says the story that he offered Sanctions Relief and Frozen Funds to Iran is untrue
- Middle Eastern oil exports reach highest level since the Iran war began. Iran appears to be losing its leverage over the Strait of Hormuz. WSJ
- U.S. and Iranian officials complained about each other's stances during mediator meetings. Politico
- China planning to introduce additional measures to support the economy. Bloomberg
- OpenAI decided against releasing latest artificial intelligence model due to safety concerns (see 5:37 for another OpenAI update --- XLK, NVDA, GOOG, GOOGL, MSFT, META). WSJ
- Supreme Court Justice Samuel Alito will not participate in climate change case on October 5. CNBC
- Anthropic will warn in IPO filing that AI poses a "existential risks to humanity". Reuters
- Iranian Foreign Minister Abbas Araghchi expects to receive formal response to ceasefire plan that President Trump rejected, according to CBS News
- AAR (AIR) Corp to acquire majority stake in Bain-backed MRO Holdings for $1.8 bln, according to WSJ
- Adeia (INTC) appoints Dipti Vachani CEO, effective Oct. 12
- Albany (AIN) unit wins $21.2 mln U.S. defense contract for hypersonic and rocket motor thermal protection work
- Amentum (AMTM) Holdings awarded a $572 mln Air Force contract
- AOI marks 1 millionth 1.8 GHz amplifier shipped, debuts new broadband and optical demos at SCTE TechExpo (AAOI)
- Arrowhead (ARWR) Pharmaceuticals to host a webinar with interim clinical data from a Phase 1/2a Study of ARO-MAPT for the treatment of Alzheimer’s Disease and other tauopathies
- Automakers are introducing fewer new models (CARZ. F, GM, STLA, HMC, TM, VWAGY, TSLA, RIVN). WSJ (CARZ.)
- Boston Scientific (BSX) awarded a $135.68 mln Defense Logistics Agency contract for cardiovascular procedural packages and ancillary items
- Cartesian (RNAC) posts additional Descartes-08 retreatment data in myasthenia gravis; Phase 3 topline due 1Q27
- Cibus (FMC) partners with Crystal Crop on gene-edited mustard traits for India
- Enhanced (ENHA) Group proposes 1-for-10 reverse stock split
- Franco-Nevada (FNV) CEO Paul Brink named chair of World Gold Council
- Goldman Sachs (GS)' Board discussed naming John Waldron as CEO. WSJ
- H.B. Fuller (FUL): Ancora Holdings willing to pay $1.4 bln for FUL's building adhesives unit, according to Bloomberg
- ICF (ICFI) wins Los Angeles County energy-efficiency work orders with combined ceiling of about $70 mln
- Irenic Capital Management wants Independence Realty Trust (IRT) to end plans to acquire Centerspace (CSR, INSID). Bloomberg
- KBR (KBR) selected by SABIC Agri-Nutrients for 3,500 MTPD Saudi ammonia plant
- Lyntris Inc. has received production orders from Raytheon, an RTX (RTX) business, supporting Option Years Two and Three of the U.S. Army's Lower Tier Air and Missile Defense Sensor program
- Merck (MRK) begins Phase I trial using Cyprumed oral peptide delivery technology, triggering collaboration milestone
- Meta Platforms (META) exec David Ginsberg to move to new AI role; Tucker Bounds to be promoted to communications head, according to Axios
- Navitas (NVTS) selected by U.S. Army for ALATTIS 10 kV SiC semiconductor program
- Nayax (NYAX) partners with Getnet to expand integrated payments in Latin America and Iberia
- NewAmsterdam (NAMS) doses first participant in Phase 2b SPINOZA trial of obicetrapib in preclinical Alzheimer's
- NIDEC (NJDCY) confirms that Mitsuya Kishida, President/CEO, resigned effective September 29, 2026
- Novartis AG (NVS): CAS, a division of the American Chemical Society, announces a collaboration with Novartis Biomedical Research focused on enhancing reaction data accessibility and supporting AI-enabled research
- Nvidia (NVDA) held discussions with insurance companies to absorb some of the risks from the artificial intelligence buildout (ALL, PGR). FT
- Pharming (PHAR) Group CEO Fabrice Chouraqui steps down immediately amid differences over strategy execution
- Phathom (PHAT) starts registrational Phase 3 study of VOQUEZNA for as-needed non-erosive GERD treatment
- RTX (RTX) awarded a $249.7 mln Navy contract to provide products and services for GPS based range instrumentation test and training systems
- RTX (RTX) Raytheon wins up to $20.7 bln AMRAAM production contract
- Samsung (SSNLF) will commit $1 bln for the KKR supported Helix Digital AI buildout. Reuters
- SI-BONE (SIBN) gets FDA 510(k) clearance for iFuse Granite Onyx spinal fixation system
- SLB OneSubsea (E) wins major Rovuma LNG subsea systems contract from ExxonMobil Mozambique
- Surf Air Mobility (SRFM) names Jason Secore CFO, effective Sept. 30, 2026
- Tectonic (TECX) reports favorable Phase 1a TX2100 data; FDA grants Fast Track and clears Phase 1b IND in HHT
- Teva wins FDA approval for DEGEVMA, biosimilar to Amgen (AMGN)'s Xgeva
- Unicycive Therapeutics (UNCY) provided litigation update; believes the claims are meritless and intends to vigorously defend the lawsuit
- Valvoline (VVV) boosts share repurchase authorization; remaining capacity rises to $500 mln
- Weight Watchers (GOOG) partners with Google on Fitbit and health-insights offering for employer programs
- Wyndham Hotels (WH) boosts share repurchase authorization by $400 mln
- Xanadu (XNDU) partners with Bluefors on cryogenic prototype for utility-scale quantum computing

Upgrades:
- Bloomin' Brands (BLMN) upgraded to Neutral from Underweight at JPMorgan, tgt $13
- BlackRock TCP Capital (TCPC) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $4
- Dr. Reddy's Laboratories (RDY) upgraded to Buy from Sell at Citigroup
- Kroger (KR) upgraded to Buy from Hold at Melius Research, tgt $80
- Main Street Capital (MAIN) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $60
- Netflix (NFLX) upgraded to Buy from Hold at Deutsche Bank, tgt $95
- Rezolute (RZLT) upgraded to Buy from Hold at Craig-Hallum, tgt $7
- STAAR Surgical (STAA) upgraded to Buy from Hold at Stifel, tgt $31
- Stitch Fix (SFIX) upgraded to Neutral from Underperform at Mizuho, tgt $2.50
Downgrades:
- Arbor Realty (ABR) downgraded to Market Perform from Outperform at Citizens
- Carlyle Secured Lending (CGBD) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $11
- Fresenius Medical Care (FMS) downgraded to Hold from Buy at Berenberg
- FS KKR Capital (FSK) downgraded to Underweight from Equal Weight at Wells Fargo, tgt $10
- Monday.com (MNDY) downgraded to Neutral from Overweight at JPMorgan, tgt $87
- PepsiCo (PEP) downgraded to Neutral from Overweight at JPMorgan, tgt $138
- Ryder (R) downgraded to Neutral from Outperform at Robert W. Baird, tgt $245
- Warner Bros. Discovery (WBD) downgraded to Sell from Hold at Argus
Others:
- AbCellera (ABCL) initiated with an Overweight at JPMorgan, tgt $17
- AutoZone (AZO) initiated with an Outperform at Bernstein, tgt $3,698
- Butterfly Network (BFLY) initiated with an Outperform at Evercore ISI, tgt $15
- C&F Financial (CFFI) initiated with a Buy at DA Davidson, tgt $115
- Chemung Financial (CHMG) initiated with a Buy at DA Davidson, tgt $95
- First Commonwealth Financial (FCF) initiated with a Neutral at DA Davidson, tgt $24
- FuelCell Energy (FCEL) initiated with an Outperform at Oppenheimer, tgt $24
- Gorilla Technology (GRRR) initiated with a Buy at StoneX, tgt $25
- Hinge Health (HNGE) resumed with a Buy at BofA, tgt $110
- Nautilus Biotechnology (NAUT) initiated with a Buy at Roth Capital, tgt $3.50
- O'Reilly Automotive (ORLY) initiated with a Market Perform at Bernstein, tgt $94
- Paycom Software (PAYC) resumed with an Underperform at BofA, tgt $200
- Paylocity (PCTY) resumed with a Buy at BofA, tgt $175
- Q32 Bio (QTTB) initiated with a Buy at Clear Street, tgt $38
- Rapid Micro Biosystems (RPID) initiated with a Buy at Roth Capital, tgt $3
- Securitize (SECZ) initiated with a Hold at Aletheia, tgt $15.40
- Shore Bancshares (SHBI) initiated with a Neutral at DA Davidson, tgt $25
- SpaceX (SPCX) initiated with a Buy at TD Cowen, tgt $200
- SPX Technologies (SPXC) initiated with a Buy at Vertical Research, tgt $215
- Xanadu Quantum (XNDU) initiated with an Outperform at RBC Capital, tgt $16

Econ Data (Wednesday):
- 07:00 ET: MBA Mortgage Applications Index (prior -1.5%)
- 08:15 ET: September ADP Employment Change (Briefing.com consensus: 58K; prior 38K)
- 08:30 ET: August Personal Income (Briefing.com consensus: 0.4%; prior 0.4%), Personal Spending (Briefing.com consensus: 0.7%; prior 0.2%), PCE Price Index (Briefing.com consensus: 0.4%; prior 0.2%), and Core PCE Price Index (Briefing.com consensus: 0.3%; prior 0.2%)
- 08:30 ET: Q2 GDP - Third Estimate (Briefing.com consensus: 1.5%; prior 1.5%) and Q2 GDP Deflator - Third Estimate (Briefing.com consensus: 6.3%; prior 6.4%)
- 08:30 ET: August Adv. Intl. Trade in Goods (prior -$118.8B), Adv. Retail Inventories (prior 0.7%), and Adv. Wholesale Inventories (prior 1.3%)
- 09:45 ET: September Chicago PMI (Briefing.com consensus: 53.2; prior 47.1)
- 10:30 ET: EIA Crude Oil Inventories (prior +2.97M)
- 15:25 ET: Fed Governor Cook (FOMC voter) speech on rural economy
- 17:10 ET: Chicago Fed President Goolsbee (non-FOMC voter)
- 18:00 ET: Minneapolis Fed President Kashkari (FOMC voter)

Earnings:
- Monday (September 28)
  - Pre-Market: None
  - After-Hours: MTN, JEF
- Tuesday (September 29)
  - Pre-Market: CCL, KMX
  - After-Hours:AIR, CNXC, FDXF
- Wednesday (September 30)
  - Pre-Market: CAG, CALM, FDS, JBL
  - After-Hours: MU, PRGS
- Thursday (October 1)
  - Pre-Market: ACN, AYI, MKC
  - After-Hours: NKE
- Friday (October 2)
  - Pre-market: None
  - Afternoon: None

After Hours Report

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