After Hours Report

The stock market rebounded today following a late-session slide on Wednesday. The Dow Jones Industrial Average rose 0.9%; the S&P 500 climbed 1.0%; the Nasdaq Composite jumped 1.3%; and the Russell 2000 gained 1.7%.

Gains had been less robust throughout most of the session until buying increased over the last 30 minutes of trading, leaving the major indices near their highs of the day.

Today's buying activity was broad-based. The Invesco S&P 500 Equal Weight ETF (RSP) closed with a 1.2% gain and all 11 S&P 500 sectors traded higher. Advancers had a better than 4-to-1 lead over decliners at the NYSE and a nearly 3-to-1 lead at the Nasdaq.

Semiconductor stocks were noticeably strong, providing a measure of support to the broader market, after better-than-expected results and guidance from Micron (MU 85.48, +6.79, +8.6%). The PHLX Semiconductor Index registered a 2.8% gain. 

The upside bias was also supported by a continued inclination to buy on weakness, a batch of economic data that meshed with the soft landing narrative, and a drop in oil prices ($73.89/bbl, -0.35, -0.5%) related to a Reuters report that Angola is leaving OPEC, which may leave OPEC with less control on production levels. WTI crude oil futures had dropped below $73.00/bbl earlier in the session. 

The 2-yr note yield fell two basis points to 4.33% and the 10-yr note yield settled one basis point higher at 3.89%.

As a reminder, the November Personal Income and Spending report will be released 8:30 a.m. ET on Friday. This report will feature the Fed's preferred inflation gauge in the form of the core PCE Price Index.

• Nasdaq Composite: +43.0%
• S&P 500: +23.6%
• Russell 2000: +14.5%
• S&P Midcap 400: +14.3%
• Dow Jones industrial Average: +12.8%

Reviewing today's economic data:

• November Leading Economic Index -0.5% (Briefing.com consensus -0.4%) vs downwardly revised -1.0% (from -0.8%) for October
• Initial jobless claims for the week ending December 16 increased by 2,000 to 205,000 (Briefing.com consensus 218,000) and continuing jobless claims for the week ending December 9 decreased by 1,000 to 1.865 million.
  • The key takeaway from the report is virtually the same as last week, because initial claims were virtually the same in the latest week: the level of initial claims is still a long way from being associated with levels registered during a recession.
• The third estimate for Q3 real GDP was revised lower, but it was still a heady 4.9% (Briefing.com consensus 5.2%) versus the second estimate of 5.2% and 2.1% in the second quarter. The GDP Price Deflator was revised down to 3.3% (Briefing.com consensus 3.6%) from 3.6% in the second estimate and 1.7% in the second quarter.
  • The key takeaway from the report is that the downward revision largely reflected a downward revision to consumer spending growth to 3.1% from 3.6% in the second estimate.
• The December Philadelphia Fed Index checked in at -10.5 (Briefing.com consensus -3.0) versus -5.9 for November. A number below 0.0 for this series is indicative of contraction.
  • The key takeaway from this report for a market anticipating a soft landing is that most future activity indicators rose, which points to widespread expectations for overall growth for the next six months.

Friday's economic calendar features:

• 08:30 ET: November Personal Income (Briefing.com consensus 0.4%; Prior 0.2%)
• 08:30 ET: November Personal Spending (Briefing.com consensus 0.2%; Prior 0.2%)
• 08:30 ET: November PCE Price Index (Briefing.com consensus 0.1%; Prior 0.0%)
• 08:30 ET: November Core PCE Price Index (Briefing.com consensus 0.2%; Prior 0.2%)
• 08:30 ET: November Durable Goods Orders (Briefing.com consensus 2.5%; Prior -5.4%)
• 08:30 ET: November Durable Goods Orders - Ex Transportation (Briefing.com consensus 0.2%; Prior 0.0%)
• 10:00 ET: November New Home Sales (Briefing.com consensus 689K; Prior 679K)
• 10:00 ET: December Univ. of Michigan Consumer Sentiment - Final (Briefing.com consensus 69.7; Prior 69.4)

• Europe: DAX -0.3%, FTSE -0.3%, CAC -0.2%
• Asia: Nikkei -1.6%, Hang Seng flat, Shanghai +0.6%

Commodities:

• Crude Oil -0.35 @ 73.89
• Nat Gas +0.14 @ 2.58
• Gold +2.70 @ 2051.00
• Silver -0.03 @ 24.59
• Copper +0.01 @ 3.92

After-Hours Spotlight:

• AAR Corp (AIR) beats by $0.01, misses on revs... AIR down 7.4%
• Aldeyra Therapeutics (ALDX): AbbVie (ABBV) extends the period during which it may exercise its option to enter into a Co-Development, Co-Commercialization, and License Agreement with Aldeyra... ALDX up 4.8%
• Alpine Immune Sciences (ALPN) announces amendment of Acazicolcept option and license agreement with AbbVie (ABBV)... ALPN down 2.0%
• Ionis Pharma's (IONS) Wainua, used to treat hereditary transthyretin-mediated amyloid polyneuropathy, receives FDA approval... IONS up 0.8%
• Mission Produce (AVO) beats by $0.01 (two ests), misses on revs (two ests); expects Q1 volumes to be slighter lower yr/yr and prices to be higher... AVO down 3.3%
• NIKE (NKE) beats by $0.19, reports revs in-line, gross margin increased 170 bps, inventories down 14%; announces enterprise initiative targeting up to $2 bln in cost savings over three-year period... NKE down 6.5%
• Rocket Lab USA (RKLB) enters into agreement with a U.S. Government customer to manufacture 18 space vehicles; total value of $515 mln... RKLB up 15.8%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Apogee Enterprises (APOG) beats by $0.13, misses on revs; guides FY24 EPS above consensus, revs below consensus
  • BlackBerry (BB) beats by $0.05, beats on revs; guides Q4 revs below consensus
  • CarMax (KMX) beats by $0.10, misses on revs
  • Carnival (CCL) beats by $0.06; guides Q1 and FY24 EPS below consensus
  • Cintas (CTAS) beats by $0.12, beats on revs; raises EPS and revenue guidance for FY24
  • Micron (MU) beats by $0.06, beats on revs; guides Q2 EPS above consensus, revs above consensus
  • MillerKnoll (MLKN) beats by $0.05, misses on revs; guides FebQ EPS above consensus, revs below consensus; guides FY24 EPS above consensus
  • Park Hotels & Resorts (PK) provides Q4 update; reiterates FY23 FFO guidance
  • Paychex (PAYX) beats by $0.01, reports revs in-line; raises lower end of FY24 EPS guidance
• General News
  • United Nations Security Council delays vote on a resolution calling for a halt in fighting between Israel and Gaza, according to the New York Times
  • President Biden is considering increasing tariffs on some Chinese goods, including EVs made in China, according to the Wall Street Journal
  • Angola to leave OPEC, according to Reuters
  • Argentina President Javier Milei plans to deregulate the economy, according to Financial Times
  • China bans exports of certain rare earth processing technologies, according to Bloomberg
  • Holiday travel expected to be busier than last year, according to Reuters
  • Transportation Dept. is scrutinizing U.S. airlines' frequent flyer programs, alleging deceptive or unfair practices, according to Reuters
  • 10x Genomics (TXG) launches its Xenium Catalyst Network, a group of four research institutions to accelerate access to its proof-of-concept data
  • AAR Corp (AIR) announces agreement to acquire Triumph Group's (TGI) Product Support business for $725 mln in cash
  • ACCO Brands (ACCO) announces cost savings plan; to reduce headcount by approximately 300 employees
  • ADT (ADT) CFO Ken Porpora to step down to become the CEO of a privately held company, effective at year end; Jeff Likosar, Chief Transformation Officer, to serve as interim CFO
  • Alamos (AGI) announces renewal of normal course issuer bid
  • Alcoa (AA) names Matt Reed as COO, effective January 1
  • Alterity Therapeutics (ATHE) announced the appointment of Phillip Hains as the Company’s new CFO, effective 31 January 2024
  • Annexon (ANNX) Outlines Global Registrational Program for ANX007 in Geographic Atrophy with FDA Alignment on Vision Preservation as Primary Endpoint; also reports Phase 1 Results for ANX1502, its Oral Small Molecule Inhibitor of the Classical Complement Pathway
  • Apple (AAPL): ITC denies Apple's motion to pause Apple Watch Series 9 and Apple Watch Ultra sales and import ban
  • ARK Innovation (ARKK) ETF's are purchasing shares of Tesla (TSLA), according to Market Watch
  • Arrowhead Pharmaceuticals (ARWR) Files for Regulatory Clearance to Initiate Phase 1/2a Study of ARO-CFB for Complement Mediated Kidney Disease
  • AutoZone (AZO) authorizes the repurchase of an additional $2.0 billion of the Company’s common stock in connection with its ongoing share repurchase program
  • Bausch Health (BHC) announces positive topline results from global phase 2 study evaluating amiselimod (an s1p antagonist) to treat ulcerative colitis
  • BioMarin Pharmaceutical (BMRN) announces several initiatives, including establishing a strategic review committee
  • Blackstone (BX) takes majority stake in Sony payment service for about $280 mln, according to Bloomberg
  • Boeing (BA) secured CAAC clearance for 737 Max deliveries in China, according to Air Current
  • Boeing (BA): China approves first 787 delivery since 2021, according to Bloomberg
  • BrightSphere Investment Group (BSIG) authorizes up to $100 mln for share repurchases
  • Calliditas Therapeutics (CALT) announces full FDA approval of TARPEYO, the only FDA-approved treatment for IgA nephropathy to significantly reduce the loss of kidney function
  • Calliditas Therapeutics (CALT): Everest Medicines' partner CALT announces Nefecon the only FDA-approved treatment for iga nephropathy to significantly slow kidney function decline
  • ChipMOS (IMOS) Board approved the proposed US$137.1 million sale of the equity interests in Unimos Microelectronics (Shanghai) Co.
  • Coinbase Global (COIN) secured crypto license in France, according to CNBC
  • Commerzbank AG (CRZBY) receives approval for new share buyback programme with a volume of up to 600 million euros
  • CRH Plc. (CRH) continues share buyback program
  • Dave & Buster's (PLAY) Announces the Retirement of CFO Michael Quartieri, effective April 30, 2024
  • Emeren Group (SOL) announced the successful sale of a 53.6 MWp solar project portfolio in Hungary, to Kronospan / Douglas Renewables
  • Energy Fuels (UUUU) has commenced uranium production at three of its permitted and developed uranium mines located in Arizona and Utah; expects to sell 200,000 pounds of uranium in 2024
  • Eni S.p.A. (E) signs agreement for Energy Infrastructure Partners to invest in Plenitude, progressing strategy and confirming quality and value of business
  • Exscientia plc (EXAI) announces expansion of its current collaboration with Sanofi (SNY) to include existing exscientia programme
  • FingerMotion (FNGR) provided an update on its Big Data subsidiary branded Sapientus
  • Fluence (FLNC) responds to an article reporting that it is a defendant in a counterclaim relating to its Diablo Energy Storage contract noting that it believes the counterclaim is without merit
  • General Mills (GIS) in 10-Q filing: approved restructuring in Q2 to enhance its go-to-market commercial strategy and associated organizational structure of its Pet segment
  • Hammerhead Energy (HHRS) announces shareholder and court approval for the plan of arrangement
  • HOOKIPA Pharma (HOOK) announces $21.25 million equity investment from Gilead Sciences (GILD)
  • HSBC (HSBC): South Korea considers fines for HSBC and BNP Paribas (BNPQY) for naked shorting, according to Bloomberg
  • HUTCHMED (HCM) and Sinopharm agreed to renew the Framework Sinopharm Products Supply and Purchase Agreement with effect from January 1, 2024 for a period of three years up to and including December 31, 2026
  • Immunovant (IMVT) Reports Positive Initial Phase 2 Results for Batoclimab in Graves’ Disease
  • Immutep (IMMP) announces constructive feedback has been received from the Paul-Ehrlich-Institut, a German regulatory authority, regarding the planned TACTI-004 Phase III trial
  • Joby Aviation (JOBY) successfully completes series of air traffic simulations with NASA’s Ames Research Center evaluating how air taxi operations can be integrated into today’s airspace
  • KKR (KKR) announced a monetization activity update for the period from October 1, 2023 to December 21, 2023
  • Lemonade (LMND) Co-CEOs Shai Wininger and Daniel Schreiber to return to their previously held positions as the President and CEO, respectively, effective January 1, 2024
  • Liquidia Technologies (LQDA) announces that U.S. Federal Circuit affirmed earlier decision to invalidate all claims of United Therapeutics patent No. 10,716,793
  • Lumen Technologies (LUMN) extended transaction support agreement
  • Merck (MRK): FDA issues Complete Response Letter saying that Merck's application did not meet substantial evidence of effectiveness for treating RCC and UCC
  • MeiraGTx (MGTX) announced an asset purchase agreement with Janssen Pharmaceuticals (JNJ)
  • Merck (MRK): KEYTRUDA plus LENVIMA receive public listing for patients with advanced endometrial carcinoma that is not MSI-H or dMMR
  • Middlefield Banc (MBCN) provides cyber-attack update; does not believe the incident will have a material adverse effect on its business
  • Morgan Stanley (MS) considering investing up to $2 billion in private credit fund, according to Bloomberg
  • Myriad Genetics (MYGN) appoints Scott Leffler as CFO effective January 29 suceeding Bryan Riggsbee who is retiring
  • nCino (NCNO) and Salesforce (CRM) expand strategic partnership to further modernize the financial services industry
  • Orthofix (OFIX) Announces Publication of New Data Supporting Use of PEMF Stimulation in Lumbar Spine Fusion Procedures for Patients at Risk of Pseudarthrosis
  • Pacira BioSciences (PCRX) names Frank Lee as CEO
  • QuidelOrtho (QDEL) receives 510(K) clearance for Savanna Multiplex Molecular Platform and Savanna HSV 1+2/VZV PCR assay
  • Raymond James (RJF) reports November operating data; investment banking activity remains challenging across the industry despite a healthy pipeline
  • Regeneron Pharma (REGN) receives FDA orphan designation for treatment of Hemophilia b
  • ResMed (RMD) conducts voluntary global field action to update guides for all masks with magnets; does not require a return of a mask
  • Sanofi (SNY) announces end of program evaluating tusamitamab ravtansine after a 2L NSCLC Phase 3 trial did not meet a primary endpoint
  • Shattuck Labs (STTK) to file the previously-announced initial topline dose-expansion data from its ongoing Phase 1A/B clinical trial of SL-172154 in combination with AZA in frontline HR-MDS and TP53m AML patients
  • Sony (SONY) gaming executives say lifetime PlayStation sales have exceeded 50 mln units, according to Reuters
  • Southwest Air (LUV) announces that a Tentative Agreement has been reached with the Southwest Airlines Pilots Association and will be voted on by the airline's nearly 11,000 Pilots
  • Takeda Pharma (TAK) and JCR Pharmaceuticals announce discontinuation of gene therapy collaboration
  • Tesla (TSLA): Norway aiming to investigate Tesla over alleged suspension failures, according to Reuters
  • TRI Pointe Homes (TPH) announces $250 million stock repurchase program
  • Turkcell's (TKC) Turkcell Finansman A.S. will participate as the originating entity in a structure led by Asset Finance Fund established by Turkey Securitization Company
  • Warner Bros. Discovery (WBD): CEOs of WBD and Paramount (PARA) have not engaged in formal talks, according to the Wall Street Journal
  • Wells Fargo (WFC) workers win first-ever union election

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Amgen (AMGN) upgraded to Buy from Neutral at Daiwa Securities; tgt raised to $320
  • Annexon (ANNX) upgraded to Buy from Neutral at BofA Securities; tgt raised to $6
  • Extra Space Storage (EXR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $150
  • Glaukos (GKOS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $91
  • Insulet (PODD) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $238
  • JFrog (FROG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $42
  • Merit Medical (MMSI) upgraded to Buy from Hold at Canaccord Genuity; tgt $100
  • Regency Centers (REG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $75
  • Salesforce (CRM) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $350
  • Spotify (SPOT) upgraded to Buy from Hold at Pivotal Research Group; tgt raised to $265
  • Urban Edge Properties (UE) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $18
• Downgrades:
  • Eli Lilly (LLY) downgraded to Outperform from Buy at Daiwa Securities; tgt lowered to $610
  • Highwoods Prop (HIW) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $18
  • Nevro (NVRO) downgraded to Hold from Buy at Canaccord Genuity; tgt $23
  • POINT Biopharma (PNT) downgraded to Hold from Buy at Brookline
  • Simon Properties (SPG) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $143
• Others:
  • Catalyst Pharma (CPRX) initiated with an Outperform at Oppenheimer; tgt $30
  • Crinetics Pharmaceuticals (CRNX) initiated with a Hold at Jefferies; tgt $35
  • J. Jill (JILL) initiated with an Outperform at William Blair
  • Myriad Genetics (MYGN) resumed with a Neutral at Piper Sandler; tgt $23
  • Ovid Therapeutics (OVID) initiated with a Buy at BTIG Research; tgt $11
  • Rollins (ROL) initiated with an Equal-Weight at Morgan Stanley; tgt $42

• Econ Data (Friday):
  • 08:30 ET: November Personal Income (Briefing.com consensus 0.4%; Prior 0.2%)
  • 08:30 ET: November Personal Spending (Briefing.com consensus 0.2%; Prior 0.2%)
  • 08:30 ET: November PCE Price Index (Briefing.com consensus 0.1%; Prior 0.0%)
  • 08:30 ET: November Core PCE Price Index (Briefing.com consensus 0.2%; Prior 0.2%)
  • 08:30 ET: November Durable Goods Orders (Briefing.com consensus 2.5%; Prior -5.4%)
  • 08:30 ET: November Durable Goods Orders - Ex Transportation (Briefing.com consensus 0.2%; Prior 0.0%)
  • 10:00 ET: November New Home Sales (Briefing.com consensus 689K; Prior 679K)
  • 10:00 ET: December Univ. of Michigan Consumer Sentiment - Final (Briefing.com consensus 69.7; Prior 69.4)