After Hours Report

There was not a lot of conviction on either side of the tape today. Market breadth was negative, but modestly so, and volume was below-average at the NYSE. The Dow Jones Industrial Average closed with a 0.4% gain while the S&P 500 (-0.1%) and Nasdaq Composite (-0.8%) closed with losses. 

Relative weakness in mega cap and semiconductor-related stocks weighed on the S&P 500 and Nasdaq Composite as participants waited on earnings results from influential names in both spaces this afternoon. The Vanguard Mega Cap Growth ETF (MGK) logged a 0.6% decline and the PHLX Semiconductor Index (SOX) fell 1.6%. 

The Invesco S&P 500 Equal Weight ETF (RSP), though, settled just above yesterday's closing level.

Outsized moves in either direction were limited to stocks that reported quarterly results since yesterday's close, which contributed to the mixed feeling at the index level. General Motors (GM 38.15, +2.76, +7.8%) and HCA Healthcare (HCA 301.59, +14.86, +5.2%) logged big gains following pleasing earnings and/or guidance while shares of UPS (UPS 145.06, -12.96, -8.2%) and Whirlpool (WHR 110.01, -7.78, -6.6%) sank following their results.

The mixed action was also the result of a wait-and-see mentality in front of the FOMC decision tomorrow, which is followed by Fed Chair Powell's press conference. The market expects that the committee will leave rates unchanged, but participants are anxious to hear any tonal shifts in rhetoric. 

Also, this morning's economic data bodes well for the market's soft landing narrative. The January Consumer Confidence Index climbed to 114.8 in January (Briefing.com consensus 113.0) from a downwardly revised 108.0 (from 110.7) in December. Meanwhile, the JOLTS Report showed 9.026 million job openings in December, up from 8.925 million in November.

The Treasury market also saw mixed action today. The 2-yr note yield, which was at 4.30% before the 10:00 ET data, peaked at 4.37% today before settling at 4.36%. The 10-yr note yield, at 4.04% before the reports, peaked at 4.10% before settling at 4.06%. 

• Nasdaq Composite: +3.3%
• S&P 500: +3.3%
• Dow Jones Industrial Average: +2.1%
• S&P Midcap 400: +0.1%
• Russell 2000: -1.5%

Reviewing today's economic data:

• November FHFA Housing Price Index 0.3%; Prior 0.3%
• November S&P Case-Shiller Home Price Index 5.4% (Briefing.com consensus 5.6%); Prior 4.9%
• January Consumer Confidence 114.8 (Briefing.com consensus 113.0); Prior was revised to 108.0 from 110.7
  • The key takeaway from the report is that the uptick in confidence was seen across all age groups and fueled by factors that should support continued strength in consumer spending: slower inflation, expectations interest rates will continue to come down, and favorable employment conditions.
• December JOLTS - Job Openings 9.026 mln; Prior was revised to 8.925 mln from 8.790 mln

Wednesday's economic calendar features:

• 7:00 ET: Weekly MBA Mortgage Index (prior 3.7%)
• 8:15 ET: January ADP Employment Change (Briefing.com consensus 140,000; prior 164,000)
• 8:30 ET: Q4 Employment Cost Index (Briefing.com consensus 1.0%; prior 1.1%)
• 9:45 ET: January Chicago PMI (Briefing.com consensus 48.4; prior 46.9)
• 10:30 ET: Weekly crude oil inventories (prior -9.23 mln)
• 14:00 ET: January FOMC Decision (Briefing.com consensus 5.25-5.50%; prior 5.25-5.50%)

Overseas:

• Europe: DAX +0.2%, FTSE +0.4%, CAC +0.5%
• Asia: Nikkei +0.1%, Hang Seng -2.3%, Shanghai -1.8%

Commodities:

• Crude Oil +0.97 @ 77.84
• Nat Gas +0.02 @ 2.08
• Gold +25.70 @ 2051.20
• Silver -0.03 @ 23.22
• Copper +0.03 @ 3.91

After-Hours Spotlight:

• Advanced Micro (AMD) reports EPS in-line, revs in-line; guides Q1 revs below consensus... AMD down 2.7%
• Alphabet (GOOG) beats by $0.05, beats on revs, Google Advertising revenue up 11%, Cloud up 26%... GOOG down 4.4%
• Electronic Arts (EA) beats by $0.19, misses on revs; guides Q4 EPS below consensus, revs in-line... EA down 3.7%
• Microsoft (MSFT) beats by $0.16, beats on revs; Azure +28% CC vs +26-27% CC prior guidance... MSFT down 1.2%
• Modine Manufacturing (MOD) beats by $0.15, misses on revs; guides FY24 revs below consensus... MOD down 6.7%
• Mondelez Int'l (MDLZ) beats by $0.06, reports revs in-line... MDLZ down 4.1%
• Starbucks (SBUX) misses by $0.03, misses on revs, comps of +5% globally; guides on the call... SBUX up 3.1%
• Stryker (SYK) beats by $0.19, beats on revs; guides FY24 EPS above consensus, revs above consensus... SYK up 3.8%

Fair Value for Wednesday, January 31:

• S&P 500: 4,951
• Nasdaq 100: 17,579
• DJIA: 38,601

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

• Earnings/Guidance (Full Earnings Calendar):
  • Alexandria RE (ARE) misses by $0.01, beats on revs; guides FY24 FFO in-line
  • A.O. Smith (AOS) beats by $0.01, reports revs in-line; guides FY24 EPS in-line, revs in-line
  • Arcos Dorados (ARCO) records +32.4% comps in Q4; expects FY24 CapEx of $300-350 mln
  • Banco Bilbao Vizcaya Argentaria (BBVA) beats by EUR0.02
  • BigCommerce (BIGC) expects to exceed its FY23 financial guidance provided in November
  • Cadence Bank (CADE) misses by $2.80, total loans were flat at $32.5 billion
  • Calix Networks (CALX) beats by $0.07, reports revs in-line; guides Q1 EPS below consensus, revs below consensus
  • Capital Southwest Corp. (CSWC) reports Q3 (Dec) results; Board declares supplemental dividend
  • Celestica (CLS) beats by $0.08, beats on revs; guides Q1 EPS above consensus, revs above consensus
  • Chunghwa Telecom (CHT) reports Q4 EPS of $1.06; Total revenue increased by 4.0% to NT$ 61.86 billion (no comparable ests)
  • Cleveland-Cliffs (CLF) reports EPS in-line, revs in-line
  • Coeur Mining (CDE) notes Q4 production reached record levels; provides update on 1H24 initiatives
  • Commvault Systems (CVLT) beats by $0.05, beats on revs; guides Q4 revs in-line
  • Corning (GLW) reports EPS in-line, misses on revs; guides Q1 EPS below consensus, revs below consensus
  • Crane (CR) beats by $0.07, beats on revs; guides FY24 EPS in-line, revs above consensus; increases dividend by 14%
  • Danaher (DHR) beats by $0.18, beats on revs
  • Daqo New Energy (DQ) provides prelim net profit estimate for FY23; expects RMB 5.7-5.8 bln
  • Diageo plc (DEO) reports H1 results; provides outlooks for FY24, FY25 and medium-term guidance
  • Douglas Dynamics (PLOW) guides Q4 and FY23 figures below consensus; lack of snowfall significantly impacted results; expects +70-80% yr/yr increase in FY24 adjusted EPS
  • Equity Lifestyle Properties (ELS) beats by $0.05, beats on revs; issues in-line normalized FFO guidance for Q1 and FY24
  • F5 Networks (FFIV) beats by $0.39, beats on revs; guides Q2 revs above consensus, EPS below consensus; guides FY24 EPS above consensus
  • General Motors (GM) beats by $0.08, beats on revs; guides FY24 EPS above consensus
  • Gray Television (GTN) slightly raises low end of Q4 revenue guidance range and proposes refinancing of senior credit facilities
  • Harmonic (HLIT) beats by $0.03, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY24 EPS below consensus, revs below consensus
  • HCA (HCA) beats by $0.85, beats on revs; guides FY24 EPS above consensus, revs above consensus; approves additional share buyback program up to $6 bln; names new CFO
  • Heartland Financial (HTLF) reports Q4 results
  • Helmerich & Payne (HP) beats by $0.24, beats on revs
  • Hope Bancorp (HOPE) in slide presentation provides medium term targets of high single digit loan growth; <50% efficiency ratio target; sees Q4 2024 average loans up low sigle digits yr/yr; sees Q4 2024 net interest income declining by low single digits yr/yr
  • Hubbell (HUBB) beats by $0.11, beats on revs; guides FY24 EPS in-line, revs above consensus
  • JetBlue Airways (JBLU) beats by $0.08, beats on revs; guides FY24 revs above consensus
  • Johnson Controls (JCI) misses by $0.27, misses on revs; guides Q2 EPS below consensus; lowers FY24 EPS in-line; pursuing strategic alternatives for non-commercial businesses
  • LCI Industries (LCII) sees Q4 EPS and revs below consensus
  • Malibu Boats (MBUU) beats by $0.10, misses on revs; lowers FY24 revenue guidance
  • Manpower (MAN) beats by $0.26, beats on revs
  • Marathon Petroleum (MPC) beats by $1.77, beats on revs
  • MDC Holdings (MDC) beats by $0.06, beats on revs
  • MPLX LP (MPLX) beats by $0.15, beats on revs
  • MSCI (MSCI) beats by $0.39, beats on revs
  • Nucor (NUE) beats by $0.24, reports slight beat on revs
  • NVR (NVR) beats by $0.06, misses on revs
  • Oshkosh (OSK) beats by $0.32, reports revs in-line, issues FY24 guidance, raises quarterly dividend by 12%
  • Pentair (PNR) beats by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY24 EPS in-line, revs below consensus
  • Pfizer (PFE) beats by $0.28, reports revs in-line; reiterates FY24 EPS below consensus, revs in-line
  • Polaris Industries (PII) misses by $0.59, beats on revs; guides FY24 EPS below consensus, revs mostly below consensus
  • PotlatchDeltic (PCH) reports Q4 (Dec) results, beats on revs; maintains positive view on long-term housing-related fundamentals
  • PulteGroup (PHM) beats by $0.07, misses on revs; announces buyback
  • Ryman Hospitality (RHP) provides FY24 outlook ahead of Investor Day
  • Sanmina (SANM) beats by $0.15, reports revs in-line; guides Q2 EPS above consensus, revs above consensus
  • ServisFirst Bancshares (SFBS) beats by $0.03
  • Super Micro Computer (SMCI) beats by $0.54, beats on revs; guides Q3 EPS above consensus, revs above consensus; raises FY24 revs guidance above consensus
  • Sysco (SYY) beats by $0.01, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance; raising share repurchase expectations to $1.25 bln
  • Two Harbors Investment (TWO) misses by $0.05
  • UPS (UPS) beats by $0.01, misses on revs; guides FY24 revs below consensus; raises dividend
  • UPS (UPS) on conference call says its reducing its workforce by approximately 12,000 positions; This will cut around $1 billion in cost this yea
  • Vale S.A. (VALE) releases production and sales numbers for Q4 and 2023; performance marked by solid production and sales in all businesses
  • Whirlpool (WHR) beats by $0.32, beats on revs; guides FY24 EPS below consensus, revs below consensus
  • Woodward (WWD) beats by $0.33, beats on revs; guides FY24 EPS in-line, revs in-line
  • WPP plc (WPP) provides updates at Capital Markets Day
• General News
  • Israeli military expects it will take all of 2024 or longer to eliminate Hamas, according to Bloomberg
  • Saudi Aramco receives directive to maintain MSC at 12 MMBD
  • Israeli Prime Minister Benjamin Netanyahu rules out freeing of prisoners or pulling troops out of Gaza as part of ceasefire deal; says war will continue until Hamas is eliminated, according to Bloomberg
  • President Biden says he has made a decision on how to respond to death of three Americans in Middle East; says US does not need a wider war in the Middle East
  • 2seventy bio (TSVT) is transforming the Company to focus exclusively on the commercialization and development of Abecma, its BCMA-targeted CAR T therapy for multiple myeloma
  • ACCO Brands (ACCO) announces a multi-year restructuring and cost savings program, with anticipated annualized pre-tax cost savings of at least $60 mln
  • Adobe (ADBE) will end efforts create web design product to compete with Figma, according to Bloomberg
  • American Airlines (AAL) laying off 656 workers, according to Bloomberg
  • Apple (AAPL) sold 200K Vision Pro devices, according to Mac Rumors
  • Apple (AAPL) analyst Ming-Chi Kuo posts on Medium that "2024 iPhone shipments likely to decline significantly by about 15%"
  • Applied Materials (AMAT) and MIT announce an agreement that, together with a grant to MIT from the Northeast Microelectronics Coalition Hub, commits more than $40 mln of estimated private and public investment to add advanced nano-fabrication equipment and capabilities to MIT.nano
  • Arcus Biosciences (RCUS) and Gilead Sciences (GILD) announce an amendment to their collaboration agreement and a separate equity investment by Gilead of $320 million in Arcus common stock at $21.00/share
  • AVANGRID (AGR) announces its first renewable energy project in Oklahoma
  • Beam Global (BEEM) names Mark Myers as COO
  • Becton Dickinson (BDX) and Techcyte announce a strategic collaboration agreement to offer an AI-based algorithm that guides cytologists and pathologists to efficiently and effectively identify evidence of cervical cancer and precancer using whole-slide imaging
  • Block (SQ) begins plan to cut staff by 10%, according to Coin Desk
  • Boeing (BA) withdraws expedited 737 Max approval request, according to Financial Times
  • Braskem SA (BAK) extends the steam supply agreement contract with Petrocoque
  • Bristol-Myers (BMY) announces three regulatory acceptances from the U.S. FDA and Japan’s Ministry of Health, Labour and Welfare for Breyanzi
  • Caledonia Mining Corporation Plc (CMCL): Encouraging results from deep level drilling at Blanket Mine
  • Calix Networks (CALX) also announced its Board authorized an additional $100 million to maintain the existing stock repurchase program
  • Caesars Entertainment (CZR) announces an expansion of its relationship with the Eastern Band of Cherokee Indians to bring the Company’s flagship sports wagering platform online in the Tar Heel State for the launch of legalized mobile sports wagering
  • Citigroup (C): NY Attorney General Letitia James sues Citibank for failing to protect and reimburse victims of electronic fraud
  • Delta Air Lines (DAL) begins interior refresh on select Boeing 737-800s, expands Delta One cabin on A350-900 fleet
  • Dillard's (DDS), Citigroup (C), and Mastercard (MA) enter into new agreements to provide a credit card program for Dillard's customers; Citi will purchase the existing credit card accounts, Mastercard will serve as exclusive payment network
  • EchoStar Corporation (SATS) Announces Termination of Exchange Offers and Consent Solicitations by DISH DBS Issuer LLC for Certain Existing Senior Notes Issued by DISH DBS Corporation
  • Equity Lifestyle Properties (ELS) also setting the annual dividend rate for 2024 at $1.91 per share of Common Stock, an increase of 6.7%, or $0.12, over the current $1.79 per share of Common Stock for 2023
  • General Motors (GM) increases quarterly cash dividend 33% to $0.12/share from $0.09/share
  • Halozyme Therapeutics (HALO) announces Takeda received European Commission approval for HYQVIA [Immune Globulin Infusion 10% (Human)] co-formulated with Halozyme's ENHANZE drug delivery technology as maintenance therapy in patients of all ages with chronic inflammatory demyelinating polyneuropathy after stabilization with intravenous immunoglobulin therapy
  • HUTCHMED (HCM) receives Marketing Approval in Hong Kong for ELUNATE
  • ICF International (ICFI): EPA selects ICF for $33 million in new environmental assessment contracts
  • JetBlue Airways (JBLU) promotes Warren Christie to COO, President & COO Joanna Geraghty transitions to CEO effective February 12
  • Kura Oncology (KURA) reports positive preliminary Ziftomenib combination data in Acute Myeloid Leukemia
  • Leidos (LDOS) awarded a prime contract by the Advanced Research Projects Agency for Health
  • Levi Strauss (LEVI) announces that Michelle Gass has assumed role of president and CEO, as previously disclosed in December
  • Nanobiotix (NBTX) receives $20 mln milestone payment from strategic partner Janssen Pharmaceutica NV (JNJ) after achieving operational requirements in NANORAY-312
  • Northrop Grumman (NOC) announces $1 billion accelerated share repurchase agreement
  • ODP Corp (ODP): Gerry Smith will resume his position as CEO, following temporary medical leave
  • PayPal (PYPL) begins layoffs today, according to The Information
  • Petrobras (PBR) releases 2024 'Deep Dive' presentation with longer term plans
  • PulteGroup (PHM) Directors has approved a $1.5 bln increase to the Company’s share repurchase authorization
  • Regeneron Pharma (REGN) announces the formation of Regeneron Cell Medicines based on an agreement with 2seventy bio (TSVT), Inc. to acquire full development and commercialization rights to its pipeline of investigational novel immune cell therapies, along with its discovery and clinical manufacturing capabilities
  • Seadrill Ltd (SDRL) announces multiple contract awards totalling approximately $97.5 million in value, in addition to an update on the West Auriga
  • Shutterstock (SSTK) increases quarterly cash dividend to $0.30/share from $0.27/share
  • Silicon Labs (SLAB) delaying its scheduled Q4 earnings call; determines a material weakness in internal control
  • Silvercorp (SVM) reports high-grade silver drill results at The TLP Mine
  • SLB (SLB) announces a significant step toward fully autonomous drilling operations at Equinor's (EQNR) Brazilian Peregrino C platform
  • Sonoco Products (SON) enters into a definitive agreement to sell its Protective Solutions business to Black Diamond Capital Management, LLC for an estimated $80 million in cash
  • T. Rowe Price (TROW) increases quarterly cash dividend to $1.24/share from $1.22/share
  • Toyota (TM) warns drivers 50000 drivers to get immediate recall repairs due to airbag issue, according to Reuters
  • Trimble (TRMB) authorizes $800 mln share repurchase
  • Turkcell (TKC) to establish a data center company with a focus on efficient management of company processes
  • Turkcell (TKC) clarifies news in the media related to the sale of Ukrainian assets
  • Vanda Pharma (VNDA): Court orders FDA to resolve Vanda Pharmaceuticals' Jet Lag Hearing request by March 5
  • Vertex Pharma (VRTX) announces "positive" results from its Phase 3 program for the selective NaV1.8 inhibitor, VX-548, in the treatment of moderate-to-severe acute pain
  • Vuzix (VUZI) announces that it now has the ability to supply optical waveguides with integrated vision correction prescriptions
  • Walt Disney (DIS) activist shareholder Nelson Peltz recommendations to include Netflix (NFLX) / ESPN+ bundle, according to Bloomberg sources
  • Williams Cos (WMB) increases quarterly cash dividend 6.1% to $0.475/share from $0.4475/share
  • Zentek Ltd.'s (ZTEK) Triera Biosciences completed testing of its C19HBA aptamer as a potential therapeutic

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Bank of America (BAC) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $41
  • BNY Mellon (BK) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $62
  • Citigroup (C) upgraded to Overweight from Underweight at Morgan Stanley; tgt raised to $65
  • Equinox Gold (EQX) upgraded to Buy from Hold at Desjardins
  • Goldman Sachs (GS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $449
• Downgrades:
  • Advanced Micro (AMD) downgraded to Outperform from Strong Buy at Raymond James; tgt raised to $195
  • Brookfield Infrastructure (BIP) downgraded to Sector Perform from Outperform at National Bank Financial
  • Enfusion (ENFN) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $9
  • Five Below (FIVE) downgraded to Perform from Outperform at Oppenheimer
  • IDEXX Labs (IDXX) downgraded to Neutral from Overweight at Piper Sandler; tgt $525
  • Int'l Consolidated Airlines (ICAGY) downgraded to Underweight from Equal-Weight at Morgan Stanley
• Others:
  • ACADIA Pharmaceuticals (ACAD) initiated with an Outperform at Robert W. Baird; tgt $40
  • Accenture (ACN) initiated with a Buy at Mizuho; tgt $426
  • Alexandria RE (ARE) initiated with a Buy at Deutsche Bank; tgt $140
  • AvalonBay (AVB) initiated with a Buy at Deutsche Bank; tgt $206
  • Brandywine Realty (BDN) initiated with a Hold at Deutsche Bank; tgt $5.50
  • Brixmor Property (BRX) initiated with a Buy at Deutsche Bank; tgt $27
  • Boston Properties (BXP) initiated with a Hold at Deutsche Bank; tgt $74
  • Camden Property (CPT) initiated with a Hold at Deutsche Bank; tgt $90
  • CareTrust REIT (CTRE) initiated with a Hold at Deutsche Bank; tgt $23
  • Cognizant Tech (CTSH) initiated with a Neutral at Mizuho; tgt $82
  • Confluent (CFLT) initiated with a Hold at Loop Capital; tgt $23
  • CrowdStrike (CRWD) initiated with an Outperform at Raymond James; tgt $330
  • CubeSmart (CUBE) initiated with a Sell at Deutsche Bank; tgt $40
  • e.l.f. Beauty (ELF) initiated with a Neutral at Robert W. Baird; tgt $185
  • EPAM Systems (EPAM) initiated with a Buy at Mizuho; tgt $340
  • Equity Lifestyle Properties (ELS) initiated with a Hold at Deutsche Bank; tgt $64
  • Equity Residential (EQR) initiated with a Hold at Deutsche Bank; tgt $64
  • Essex Property (ESS) initiated with a Hold at Deutsche Bank; tgt $240
  • Extra Space Storage (EXR) initiated with a Hold at Deutsche Bank; tgt $141
  • Federal Realty (FRT) initiated with a Hold at Deutsche Bank; tgt $109
  • Genpact (G) initiated with a Neutral at Mizuho; tgt $40
  • Globant (GLOB) initiated with a Buy at Mizuho; tgt $283
  • Healthcare Realty (HR) initiated with a Hold at Deutsche Bank; tgt $18
  • Highwoods Prop (HIW) initiated with a Buy at Deutsche Bank; tgt $28
  • Independence Realty Trust (IRT) initiated with a Buy at Deutsche Bank; tgt $18
  • Instacart (CART) initiated with an Equal-Weight at Morgan Stanley; tgt $28
  • Invitation Homes (INVH) initiated with a Hold at Deutsche Bank; tgt $35
  • Kilroy Realty (KRC) initiated with a Hold at Deutsche Bank; tgt $40
  • Kimbell Royalty Partners (KRP) initiated with a Buy at Truist; tgt $22
  • Kimco Realty (KIM) initiated with a Hold at Deutsche Bank; tgt $23
  • Light & Wonder (LNW) initiated with an Overweight at JP Morgan; tgt $98
  • LTC Properties (LTC) initiated with a Hold at Deutsche Bank; tgt $34

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 3.7%)
  • 8:15 ET: January ADP Employment Change (Briefing.com consensus 140,000; prior 164,000)
  • 8:30 ET: Q4 Employment Cost Index (Briefing.com consensus 1.0%; prior 1.1%)
  • 9:45 ET: January Chicago PMI (Briefing.com consensus 48.4; prior 46.9)
  • 10:30 ET: Weekly crude oil inventories (prior -9.23 mln)
  • 14:00 ET: January FOMC Decision (Briefing.com consensus 5.25-5.50%; prior 5.25-5.50%)