After Hours Summary: KEYS +2.7% higher on earnings; LZB -16.3%, MRCY -10.5% lower on earnings; WYFI -20.5% on $250 mln convertible notes private placement
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: KEYS +2.7%, ENVX +1.4%, TOL +0.7%
Companies trading higher in after hours in reaction to news: CCC +2.2% (CPRT in discussions to acquire CCC, according to Bloomberg), CW +2.1% (expands share repurchase program by $100 mln), CPRT +1.6% (CPRT in discussions to acquire CCC, according to Bloomberg), METC +1.3% (signs non-binding MOU with Indium on potential gallium, germanium supply), SYK +0.3% (awarded $100 mln modification to DLA contract), HYMC +0.2% (additional drill results from Brimstone and Vortex)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: LZB -16.3%, MRCY -10.5%, AUNA -9%, JKHY -1.1%
Companies trading lower in after hours in reaction to news: WYFI -20.5% ($250 mln convertible notes private placement), EPM -11.2% (commences stock offering; also announces Midland Basin mineral & royalty acquisition), BLZE -7.8% (launches $150 mln convertible notes offering), FRNM -4.1% (stock offering by selling shareholders), SHAZ -1.6% (amends Form S-1), DOV -0.8% (to acquire Leistung to expand cryogenic offerings), IONQ -0.6% (signs MOU with CMC Microsystems to provide cloud quantum access in Canada), INFQ -0.6% (to test quantum sensing in Colorado), AMLX -0.5% (launches $350 mln stock offering)
Research Calls I
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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
- Acadia Realty Trust (AKR) upgraded to Overweight from Sector Weight at KeyBanc, tgt $25
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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
- Abercrombie & Fitch (ANF) downgraded to Market Perform from Outperform at Raymond James
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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
- Centrus Energy (LEU) initiated with an Equal Weight at Barclays, tgt $207
Gapping down
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- FN -9.8%, VNET -7.8%, BIDU -6.8%, HSAI -6.1%, INFQ -4.6% XP -1.4% (also to cancel treasury shares)
Other news:
- FTK -6.7% (reaffirms 2026 guidance as Puerto Rico power project is put on hold)
- ANDG -6.5% (stock offering by selling shareholders)
- KLIC -3.6% (names new president and CEO)
- FIRY -3.3% (to delay 10-Q filing)
- AON -1.3% (CFO departs; names interim CFO)
- INDP -1.1% (stock offering by selling shareholders)
- KALU -1.1% (names new CEO)
Gapping up
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- ENRD +14.3%, FLXS +11.5%, DUOT +6.6%, PONY +3.4%, HD +1.8%, NKLR +1.7%, AS +0.7%
Other news:
- AMLX +21.3% (topline results from phase 3 LUCIDITY clinical trial of avexitide in post-bariatric hypoglycemia)
- ENRD +14.4% (partners with Tesla (TSLA) on planned 500-Semi deployment)
- KURA +7% (CEO insider purchase)
- HAE +6.3% (entered into a supply agreement with CSL Plasma)
- BLSM +4.6% (FDA fast track designation for BH-30643, a macrocyclic OMNI-EGFR inhibitor for the treatment of advanced EGFR C797S-positive NSCLC)
- PSN +2.7% (awarded a $664.8 mln Army contract)
- GHI +2.2% (sells Vantage at Loveland)
- BFLY +2.2% (Director insider purchase)
- CNL +1.9% (completes Guayabales access road; adit construction on track for Q4 2026, Trap underground drilling set for Q1 2027)
- TRGP +1.8% (signs 20-year ExxonMobil midstream deals, adds three Permian Delaware gas plants)
- DT +1.3% (prices $1.25 bln 0.00% exchangeable senior notes due 2031)
- DLX +1.1% (names President of Merchant Services division)
Global bond sell-off deepens amid fears over inflation and AI issuance
Long-term government borrowing costs hit multi-decade highs
Long-term borrowing costs across major economies hit multi-decade highs on Tuesday as inflation concerns, deficit fears and surging AI bond issuance put pressure on government debt around the world.
The yield on 30-year US Treasuries rose 0.02 percentage points to 5.33 per cent, its highest since 2007, taking its rise this week to 0.06 percentage points. At the start of last month it was below 5 per cent.
European long-dated yields also rose. The 30-year German Bund yield rose 0.04 percentage points on Tuesday to 3.78 per cent, its highest since the Eurozone crisis in 2011. French yields of the same maturity rose 0.03 percentage points to 4.9 per cent, the highest since 2008.
“Long-end yields have largely been following oil prices” in recent days, said Mohit Kumar, chief European economist at Jefferies. “As oil goes to $90 and above, inflation concerns start to dominate.”
In the UK, the 30-year gilt yield rose as much as 0.04 percentage points to 5.86 per cent on Tuesday morning, within touching distance of a post-1998 high that it reached in the early weeks of the Iran war.
In Japan, 30-year yields rose 0.06 percentage points to 4.14 per cent on Tuesday, close to their highest ever.
Government borrowing costs have jumped this year since the start of the US-Iran conflict, as higher energy prices have prompted fears of a prolonged global inflation shock.
Brent crude prices closed above $90 a barrel on Monday for the first time in two weeks and were around $91.25 on Tuesday morning, prompting the latest bout of weakness in government bonds.
In addition, Kumar said that “the background of fiscal concerns also remains”.
The ballooning size of governments’ debts has been weighing on long-term borrowing costs in recent weeks, as the US debt pile nears $40tn and investors fret that governments might be forced into additional spending to protect businesses and consumers from the economic cost of higher energy prices.
“The worsening situation in the Middle East is likely a factor in intensifying concerns over inflation and concerns over the US fiscal position,” said Derek Halpenny, head of global markets research at MUFG. “There remains zero appetite in the US for addressing the US fiscal position and that is increasingly weighing on the long end of the curve.”
Tuesday’s renewed bond market sell-off and higher oil prices also weighed on equities, with futures tracking the S&P 500 and Nasdaq 100 down 0.5 per cent and 1.2 per cent respectively.
The shift higher in long-dated bond yields meant that the US government last week was forced to pay the highest interest rates since 2011 to sell 30-year bonds.
Peter Schaffrik, global macro strategist at RBC Capital Markets, said some weaker US economic data last week — including non-farm payrolls and retail sales — could have added to investors’ fears about long-dated bonds.
“We have these fiscal concerns over the medium term . . . how are you going to maintain your fiscal sustainability if you have yawning deficits and at the same time growth starts slowing down?” Schaffrik said.
He added that the rise in long-term borrowing costs was “a multiyear story, and it’s not over”.
Anshul Pradhan, head of US rates research at Barclays, said: “We think there are three factors at play [in the long-end Treasury sell-off]: the budget deficit outlook, AI-related corporate issuance and the changing Treasury buyer base.”
Big Tech companies have increasingly been turning to foreign debt markets to finance their enormous spending on AI investments, with a particular focus on issuing long-dated debt. Barclays expects total investment-grade issuance in 2026 to hit a record $1.9tn, compared with last year’s $1.44tn.
Pradhan said that “the scale and maturity of AI-related corporate borrowing” at the longer end of yield curves was contributing to “investors requiring more compensation to absorb [corporate and government] supply”.
MUFG’s Halpenny said: “The unprecedented demand for capital to finance AI investments must also be playing a role here.”
The sell-off in longer-dated debt has been accompanied by a steepening in yield curves for government bonds globally, as the difference between short-term and long-term borrowing costs has widened.
Some analysts said the popularity of a “steepening trade”, where investors bet on that difference continuing to widen, was itself contributing to long-end yields pushing higher.
“The steepening theme remains firmly in control and, for now, it is difficult to argue against the momentum,” said Evelyne Gomez-Liechti, multi-asset strategist at Mizuho.
Early premarket gappers
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Gapping up:
- AMLX +24.8%, FLXS +11.2%, HAE +6.6%, KURA +6.4%, INDP +6%, DUOT +5.3%, AS +3.1%, GHI +2.2%, BANR +1.8%, PONY +1.8%, HD +1.8%, NKLR +1.7%, TRGP +1.2%, ONC +1.2%, XOM +0.9%
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Gapping down:
- FN -10.5%, COHR -6.8%, INFQ -6%, HSAI -5.8%, BIDU -5%, HIMX -3.8%, FLY -3.5%, FIRY -3.3%, RKLB -3.1%, ANDG -2.7%, KLIC -2.7%, GEV -2.7%, AON -2.2%, XP -1.5%, VNET -1.5%, DLX -1.4%, NTCT -1.4%, HTO -0.9%, KALU -0.8%, WEN -0.6%