After Hours Report

There wasn't a lot of trading action today. Most of the work was done at the open. After that, the broader market fought to retain its gains, and add to them, on a day that was light on market-moving corporate news, light on economic data, and light on volume.

Today featured buy-the-dip activity that favored blue chip stocks and value plays, which, in some cases, were one in the same. The end result produced a day of healthy gains for the Dow Jones Industrial Average, which saw only three of its 30 components end in negative territory, and the S&P 500 closing above 4,500 and settling near its highs for the session.

Apple (AAPL 178.85, -3.14, -1.7%) was one of the four Dow laggards, extending its post-earnings report losses as investors grappled with valuation concerns and reports of weakness in the smartphone market. It was largely responsible for the underperformance of the S&P 500 information technology sector (+0.3%); however, strength in Microsoft (MSFT 330.11, +2.33, +0.7%), as well as in NVIDIA (NVDA 454.17, +7.37, +1.7%) and other semiconductor stocks, helped offset Apple's drag.

Similarly, further gains in Amazon.com (AMZN 142.22, +2.65, +1.9%), coupled with strength in online travel agencies and retail stocks, helped the consumer discretionary sector (+1.1%) overcome the weight of weakness in Tesla (TSLA 251.45, -2.41, -0.9%), which was clipped by the surprising news that its highly-regarded CFO, Zachary Kirkhorn, stepped down as of August 4. Tesla, however, rebounded after being down as much as 4.4%.

Six of the 11 S&P 500 sectors finished with a gain of at least 1.0%. Communications services (+1.9%) led the rankings on the back of strength in Alphabet (GOOG 131.94, +3.40, +2.7%) and Meta Platforms (META 316.56, +5.83, +1.9%) followed by financials (+1.4%), which rode the coattails of Berkshire Hathaway (BRK.B 362.49, +12.50, +3.6%) following its pleasing Q2 operating results.

The only economic release today was the June Consumer Credit Report, which showed a $17.9 billion increase in consumer credit (Briefing.com consensus $13.0 billion) that was driven entirely by an increase in nonrevolving credit. Revolving credit saw its first decline since April 2021.

This data did not affect the Treasury market much at all, which saw an imbalance throughout the day that saw shorter tenors tick higher and longer tenors give back some of their gains from Friday's rally as they digested Fed Governor Bowman's (FOMC voter) belief that additional rates hikes will likely be needed to get inflation back to the Fed's goal, and the assertion from New York Fed President Williams (FOMC voter) that the Fed could be close to its peak rate.

The 2-yr note yield settled the session down one basis point to 4.77% and the 10-yr note yield settled the day up two basis points to 4.08%.

• Nasdaq Composite: +33.7% YTD
• S&P 500: +17.7% YTD
• Russell 2000: +11.2% YTD
• S&P Midcap 400: +11.2% YTD
• Dow Jones Industrial Average: +7.0% YTD

Notable economic data on Tuesday includes the July NFIB Small Business Optimism Index (Briefing.com consensus 92.1; Prior 91.0) at 6:00 a.m. ET, the June Trade Balance Report (Briefing.com consensus -$65.1 billion; Prior -$69.0 billion) at 8:30 a.m. ET, and the June Wholesale Inventories Report (Briefing.com consensus -0.3%; Prior 0.0%) at 10:00 a.m. ET.

Overseas:

• Europe: DAX -0.0%, FTSE -0.1%, CAC +0.1%
• Asia: Nikkei +0.3%, Hang Seng -0.1%, Shanghai -0.6%

Commodities:

• Crude Oil -0.85 @ 81.93
• Nat Gas +0.14 @ 2.72
• Gold -6.50 @ 1970.50
• Silver -0.47 @ 23.24
• Copper -0.03 @ 3.83

After-Hours Spotlight:

• Beyond Meat (BYND) beats by $0.01, misses on revs; lowers FY23 revs guidance... BYND down 8.2%
• Chegg (CHGG) misses by $0.01, beats on revs; guides Q3 revs in-line... CHGG up 24.7%
• Five9 (FIVN) beats by $0.13, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs in-line; has entered into a definitive agreement to acquire Aceyus; financial terms were not disclosed... FIVN down 5.8%
• JELD-WEN (JELD) beats by $0.09, beats on revs; guides FY23 revs in-line... JELD up 4.3%
• Kyndryl (KD) beats on EPS, beats on revs... KD up 14.7%
• Lucid Group (LCID) misses by $0.06, misses on revs; is on track to manufacture more than 10,000 vehicles in 2023... LCID up 4.7%
• Palantir Technologies (PLTR) reports EPS in-line, revs in-line; guides Q3 revs in-line; guides FY23 revs above consensus; authorizes up to $1.0 bln for repurchases... PLTR up 3.3%
• Paramount Global (PARA) beats by $0.10, beats on revs... PARA up 4.6%
• RingCentral (RNG) beats by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY23 EPS in-line, reaffirms FY23 revs guidance; co also names new CEO... RNG down 10.2%
• Skyworks (SWKS) beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line; increases dividend by 10%... SWKS down 1.4%
• Tilray (TLRY) has entered into a definitive agreement to acquire eight beer and beverage brands from Anheuser-Busch (BUD)... TLRY up 5.9%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Aclaris Therapeutics (ACRS) beats by $0.03, reports revs in-line
  • ADTRAN (ADTN) reports EPS in-line, misses on revs; sees Q3 revs below consensus
  • Arcus Biosciences (RCUS) beats by $0.06, misses on revs
  • Berkshire Hathaway (BRK.A) reports Q2 results
  • BioNTech (BNTX) beats by €0.04, misses on revs
  • Clear Channel Outdoor (CCO) reports revs in line and provides upside on strategic alternatives
  • Delek US Holdings (DLK) beats by $0.26, beats on revs
  • Elanco Animal Health (ELAN) beats by $0.13, beats on revs; guides FY23 EPS above consensus, revs above consensus
  • Freshpet (FRPT) beats by $0.05, reports revs in-line; reaffirms FY23 revs guidance
  • Genius Sports (GENI) reports EPS in-line, beats on revs; guides Q3 revs above consensus; guides Q4 (Dec) revs above consensus
  • Gogo (GOGO) beats by $0.05, reports revs in-line; lowers FY23 revs below consensus
  • Henry Schein (HSIC) beats by $0.03, reports revs in-line; reaffirms FY23 EPS guidance, revs guidance
  • Hon Hai Precision (HNHPF) reports July -1.23% yr/yr to NT 469.2 bln
  • Keros Therapeutics (KROS) beats by $0.07
  • KKR (KKR) reports Q2 (Jun) results, beats on revs
  • Kosmos Energy (KOS) misses on top and bottom lines
  • SAGE Therapeutics (SAGE) misses by $0.13, misses on revs
  • Sovos Brands (SOVO) beats by $0.04, beats on revs (shares halted, Campbell Soup (CPB) to acquire SOVO for $23/share
  • TreeHouse Foods (THS) reports EPS in-line, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus
  • Tyson Foods (TSN) misses by $0.11, misses on revs; guides FY23 revs in-line
  • Viatris (VTRS) reports Q2 (Jun) results, beats on revs; reaffirms FY23 revs guidance
• General News
  • Federal Reserve Governor Michelle Bowman (voting FOMC member) believes Fed might have to increase interest rates further, according to Bloomberg
  • NY Fed President John Williams (voting FOMC member) in interview sees interest rates coming down as inflation cools, according to New York Times
  • Russia says that Ukraine attacked a Russian oil tanker off the Crimean Peninsula, according to the New York Times
  • US regional banks are still relying on government financing, according to Financial Times
  • Hollywood writers and studios failed to restart negotiations, according to Bloomberg
  • "Barbie" makes $1 billion at global box office, according to CNN
  • Texas power grid held up during large amount of days with temperatures above 100 degrees, according to Bloomberg
  • China hacked Japan's classified defense networks, alarming officials, according to Washington PosChina hacked Japan's classified defense networks, alarming officials, according to Washington Post
  • Amarin (AMRN): Scottish Medicines Consortium Accepts VAZKEPA (icosapent ethyl) to Help Reduce Cardiovascular Risk for Patients in Scotland
  • Amazon (AMZN) plans to meet with FTC ahead of possible antitrust suit, according to Reuters
  • Apple (AAPL) iPhone 15 will likely go on sale on September 22, according to Bloomberg
  • Astellas Pharma (ALPMY) Iveric Bio unit announced the FDA approved IZERVAY for the treatment of geographic atrophy secondary to age-related macular degeneration on August 4, 2023
  • Axsome Therapeutics (AXSM): receives notice from Hikma Pharma that Hikma has submitted an ANDA seeking approval for a generic version of Sunosi
  • Biogen (BIIB) receives FDA approval for ZURZUVAE
  • Boeing (BA) awarded $146 mln US Navy order against a previously issued basic ordering agreement
  • Collegium Pharmaceutical (COLL) has entered into an Accelerated Share Repurchase agreement with Jefferies to repurchase $50 mln of the Company’s common stock
  • Copart (CPRT) announces that it has approved a two-for-one split of its common stock
  • Credit Suisse (CS) aiming to eliminate 80% of Hong Kong investment banking positions, according to Reuters
  • Daimler Truck Holding AG (DTRUY) announces death of their Chief Financial Officer Jochen Goetz
  • DMC Global (BOOM) appoints Michael Kuta as president, chief executive officer and director, effective immediately
  • Dr. Reddy's (RDY) confirms the FDA concluded the API manufacturing facility inspection is "closed"
  • Eli Lilly (LLY): Nektar Therapeutics (NKTR) announced that efficacy data previously generated by Eli Lilly & Company for rezpegaldesleukin (REZPEG) that were presented at the September 2022 EADV Congress were incorrectly calculated by Lilly
  • Equity Bancshares (EQBK) announced Friday night the promotion of Chris Navratil to CFO and announced Eric Newell’s decision to resign from his position as CFO
  • Fiesta Restaurant Group (FRGI): Authentic Restaurant Brands aiming to purchase Fiesta Restaurant Group, according to the Wall Street Journal
  • Focus Financial (FOCS) COO to transition to senior advisor position
  • Ginkgo Bioworks (DNA) announces a new collaboration with Merck (MRK) focused on improving biologic manufacturing
  • Graham (GHM) announces strategic investment by customer to expand production capabilities in Batavia
  • Grupo Aeroportuario del Pacifico (PAC) releases preliminary passenger traffic figures for July; total terminal passengers increased 11.1% yr/yr
  • Icahn Enterprises (IEP) discloses SEC requested info on June 21
  • iHeartMedia to acquire four Atlantic City radio stations from Equity Communications
  • Intercontinental Exchange (ICE) and Black Knight (BKI) announce that, amid progress toward a potential resolution, they have jointly stipulated, along with the Federal Trade Commission, to dismiss the preliminary injunction proceeding in the United States District Court seeking to block the close of ICE’s previously announced acquisition of Black Knight
  • Lucid (LCID) cuts prices of Air sedan, according to Reuters
  • Manpower (MAN) authorizes new share repurchase program up to 5.0 mln shares
  • NatWest (NWG) looking for CEO successors, according to Financial Times
  • Nikola Corporation (NKLA) amended and restated equity distribution agreement with Citigroup
  • Nucor (NUE) announces Power Purchase Agreement for 250 megawatts of renewable energy from Sebree Solar, LLC, a subsidiary of NextEra Energy Resources
  • NuScale (SMR) Power appoints Robert Ramsey Hamady as Chief Financial Officer; elevates Clayton Scott to Chief Commercial Officer
  • Tesla (TSLA) CEO Elon Musk tweets "I’m getting an MRI of my neck & upper back tomorrow. May require surgery before the fight can happen. Will know this week"
  • Textron (TXT) awarded a $241 mln US Navy contract for the procurement of LCAC 100 Class material
  • UBS (UBS) nearing investment banking restructuring, according to Reuters
  • Viatris (VTRS) and Mapi Pharma announce FDA acceptance of new drug application filing for GA depot for the treatment of relapsing forms of multiple sclerosis
  • Worthington (WOR) provides plan to separate into two independent, publicly traded companies
  • Yellow Corporation (YELL) files voluntary Chapter 11 petitions

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Camping World (CWH) upgraded to Buy from Hold at Truist; tgt raised to $35
  • DaVita (DVA) upgraded to Buy from Neutral at UBS; tgt raised to $142
  • Laureate Education (LAUR) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $17
  • PG&E (PCG) upgraded to Buy from Neutral at UBS; tgt raised to $21
  • United Airlines (UAL) upgraded to Buy from Neutral at Redburn; tgt $80
  • Wayfair (W) upgraded to Buy from Neutral at UBS; tgt raised to $110
• Downgrades:
  • American Airlines (AAL) downgraded to Neutral from Buy at Redburn
  • FirstEnergy (FE) downgraded to Neutral from Buy at UBS; tgt lowered to $40
• Others:
  • A.O. Smith (AOS) initiated with a Neutral at Seaport Research Partners
  • Ametek (AME) initiated with a Buy at Seaport Research Partners; tgt $195
  • Fortive (FTV) initiated with a Buy at Seaport Research Partners; tgt $92
  • nVent Electric (NVT) initiated with a Neutral at Seaport Research Partners
  • Pentair (PNR) initiated with a Buy at Seaport Research Partners; tgt $88
  • Southwest Air (LUV) downgraded to Sell from Neutral at Redburn; tgt $27

• Econ Data (Tuesday):
  • 6:00 ET: July NFIB Small Business Optimism (Briefing.com consensus 92.1; prior 91.0)
  • 8:30 ET: June Trade Balance (Briefing.com consensus -$65.1 bln; prior $-$69.0 bln)
  • 10:00 ET: June Wholesale Inventories (Briefing.com consensus -0.3%; prior 0.0%)
• Earnings:
  • Monday (Aug 7)
    • Pre-Market: ACRS RCUS BNTX DK ELAN FRPT GENI GOGO HSIC KKR THS TSN VTRS
    • After-Hours: ACVA ADTN ACM AYX AEL ARWR BRBR BYND CBT WHD CSWC CE CHGG COMP CXW CTRA WTRG EVCM FGEN FIVN FSK HLIO HPK HIMS ICUI INGN IFF JRVR JELD KMPR KD LCID MTW MNKD MRVI MED MRC NSA OKE PLTR PARA PAY PWSC PRAA PRI PRIM RNG SWAV SWKS SRC TDC VECO
  • Tuesday (Aug 8)
    • Pre-Market: MASS AHCO ADT ALE ARMK ATKR GOLD BSY TECH BLUE BR CPRI CLBT CRNC CHH DDOG DUK DEA EHTH LLY EMBC EXK ENR NPO EVBG EXPD FOXA GLBE GFS HAE HR HLMN HNI HZNP INGR IRWD J SWIM LCII LI MAC MPW NYT NXST NOVT NVAX OLPX OGN PAYO PRGO PLTK RDNT QSR SEE SEAS MCRB SMRT SQSP STER TGLS TWKS TPG TDG UAA UPS WMG WOW ZTS
    • After-Hours: ME TWOU EGHT ACCO AGTI AKAM BIRD AMC AMPL ANGI ARRY AXON AZEK AZTA BW BBAI BL BLNK BHF BMBL CDRE CDNA CELH CPNG CRCT CTOS CUTR DAR DHT APPS DIOD BOOM DOCS DUOL BROS EBS EDR ESE EXFY FATE FNF FLT FLYW FNV GO HALO HCAT HL HRT HNST TWNK HBM IAC ICHR IOSP PODD IPAR NVTA IOVA IRBT JXN JAMF KLIC LZ LGND LNW LPSN LAZR LYFT MQ MASI DOOR MTTR MRTX MODN NHI LPRO OSCR PETQ PRA PUBM QGEN QDEL RXT RPD RLAY RVNC RVMD RIVN STR SLF SMCI SUPN TTWO TALO TTGT TOST MODG TWLO USPH UPST VVX VCYT VTLE VZIO VTEX VUZI WES ZIP
  • Wednesday (Aug 9)
    • Pre-Market: DIBS DDD ATMU AVNS BLDP BERY BCO CAE CEVA CRL DCPH EBIX EVRI FA GEO GDRX INSW IONS JACK KRNT LFST LL NOMD ODP OGE OLK PENN REYN RBLX SHCR SSYS SLVM TBLA SKIN VVV VERX VSH WRBY WEN WE XMTR
    • After-Hours: ALRM AOSL APP AVTA AVID BBDC CACI CERT CLNE CDE CPA CYRX LAW ENS G HROW ILMN INFN JAZZ LGF.A RAMP MGNI MFC OEC ONL PAAS PAR PLUG PTRA PRPL QNST RPAY SONO SOVO STKL TASK TTEK TTD VRRM VSAT DIS WYNN XENE
  • Thursday (Aug 10)
    • Pre-Market: AQN BABA AIT AZUL CYBR HBI HIMX HLLY IMCR KELYA DNUT NABL EYE PRMW RL SIX USFD UTZ WKME WWW YETI
    • After-Hours:  ATGE ARLO RCEL FLO INDI NWSA ONTO SVV VTYX VIAV WPM YMAB
  • Friday (Aug 11 )
    • Pre-Market: SPB
    • After-Hours: None