After Hours Report

There was a negative bias in the equity market through the entire session on below-average volume. Downside moves were relatively limited, though. The equal-weighted S&P 500 dropped 0.4% and the market-cap weighted S&P 500 fell 0.2%.

Participants were reacting to some mixed economic data. The September Consumer Price Index report was hotter-than-expected at the headline (actual 0.2%; expected 0.1%) and core (actual 0.3%; expected 0.2%) level. The year-over-year growth rate of core-CPI increased to 3.3% from 3.2% in August and the growth rate of headline CPI slowed to 2.4% from 2.5% in August.

Some positive news from the report was that the shelter component, which has been the biggest driver of core inflation, saw its smallest increase (+0.2%) since June.

Investors also received weekly jobless claims, which totaled 258,000 versus last week's count of 225,000.

The market is still feeling optimistic about the Fed cutting rates by 25 basis points at the November FOMC meeting after this morning's data and after comments from a voting member of the committee. Atlanta Fed President Bostic said he is open to skipping a November rate cut, according to The Wall Street Journal.

The fed funds futures market now sees an 82.9% probability of a 25 basis point rate cut at the November FOMC meeting, little changed from 80.3% yesterday and up from 67.9% a week ago, according to the CME FedWatch Tool.

Treasuries settled mixed in response to this morning's data, and in response to a stellar 30-yr offering. The 10-yr yield settled three basis points higher at 4.10% and the 2-yr yield settled two basis points lower at 4.00%.

Elsewhere, oil prices continued climbing after recent losses. WTI crude oil futures settled 3.5% higher at $75.86/bbl. This price action helped boost the S&P 500 energy sector (+0.8%). 

The only other sectors to close higher were information technology (+0.1%) and materials (+0.2%). The real estate sector (-0.9%) logged the largest decline followed by communication services (-0.6%).

• Nasdaq Composite: +21.8% YTD
• S&P 500: +21.2% YTD
• Dow Jones Industrial Average: +12.6% YTD
• S&P Midcap 400: +11.6% YTD
• Russell 2000: +8.0% YTD

Reviewing today's economic data:

• Weekly Initial Claims 258K (Briefing.com consensus 229K); Prior 225K, Weekly Continuing Claims 1.861 mln; Prior was revised to 1.819 mln from 1.826 mln
  • The key takeaway from the report is the jump seen in initial jobless claims, which was presumably influenced in part by Hurricane Helene but not entirely. On an unadjusted basis, initial jobless claims totaled 234,780, an increase of 53,570 from the previous week. Seasonal factors, according to the Department of Labor, had expected an increase of 23,665 from the previous week.
• September CPI 0.2% (Briefing.com consensus 0.1%); Prior 0.2%, September Core CPI 0.3% (Briefing.com consensus 0.2%); Prior 0.3%
  • The key takeaway from the report is that the core rate increased year-over-year even though the shelter component, which has been the biggest driver of core inflation, saw its smallest increase (+0.2%) since June.

Friday's economic calendar features another look at inflation in the form of the September Producer Price Index at 8:30 ET. The preliminary October University of Michigan Consumer Sentiment survey will be released at 10:00 ET.

Overseas:

• Europe: DAX -0.2%, FTSE -0.1%, CAC -0.2%
• Asia: Nikkei +0.3%, Hang Seng +3.0%, Shanghai +1.3%

Commodities:

• Crude Oil +2.53 @ 75.86
• Nat Gas +0.01 @ 2.67
• Gold +13.50 @ 2639.90
• Silver +0.60 @ 31.26
• Copper +0.05 @ 4.45

After-Hours Spotlight:

• Aehr Test Systems (AEHR) beats by $0.05 (two ests), beats on revs (two ests); reiterates FY25 guidance... AEHR up 13.1%
• Humana (HUM) down after Centers for Medicare and Medicaid Services releases 2025 Medicare Advantage and Part D Star Ratings... HUM down 4.3%
• Sanofi (SNY) inching higher as CD&R nears €15 deal for SNY's Consumer Health division, according to Bloomberg... SNY up 0.4%
• Triumph Group (TGI) follow up: TGI exploring potential sale amid rising interest in aerospace and defense sector, according to Bloomberg... TGI up 2.4%

Fair Value for Friday, Oct 11:

• S&P 500: 5,830
• Nasdaq 100: 20,434
• DJIA: 42,758

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

• Earnings/Guidance (Full Earnings Calendar):
  • 10x Genomics (TXG) guides Q3 revs below consensus
  • ADMA Biologics (ADMA) confirms it spoke with analysts regarding a change to the Company’s auditors; there is no anticipated impact to the Company’s previously provided 2024-2025 financial guidance as a result of the auditor transition process
  • Applied Digital Corporation (APLD) beats by $0.12, beats on revs
  • Atlas Energy Solutions (AESI) announces commissioning of the Dune Express and provides third quarter 2024 operational update - expects Q4 fourth quarter financial results that are roughly flat with those expected in Q3
  • AZZ (AZZ) beats by $0.05, reports revs in-line; guides FY25 EPS in-line, reaffirms FY25 revs guidance
  • BMW Group (BMWKY) increased its sales of fully-electric vehicles by +19,1% in the first nine months of 2024, with a total of 294,054
  • BW LPG Ltd (BWLP) provides update on co's Product Services Q3 segment performance
  • Buckle (BKE) reports September 2024 net sales
  • Costco (COST) reports September adjusted comparable sales of +8.9%
  • Delta Air Lines (DAL) misses by $0.02, beats on revs; guides Q4 EPS in-line, revs below consensus
  • Deutsche Telekom (DTEGY) provides new financial targets at its Capital Markets Day; provides dividend and buyback updates
  • DHT (DHT) provides Q3 operations update
  • Domino's Pizza (DPZ) beats by $0.54, misses on revs
  • E2open (ETWO) beats by $0.03, misses on revs; lowers FY25 revenue outlook, guides to lower end of adjusted EBITDA guidance
  • Fortuna (FSM) reports solid production of 110,820 gold equivalent ounces for the third quarter of 2024
  • Gatos Silver (GATO) Reports 11% Increase in Q3 2024 Silver Equivalent Production and Improved Guidance
  • Indivior (INDV) issues upside Q3 revenue guidance, but lowers FY24 revenue and adjusted operating profit guidance due to lower than expected SUBLOCADE net revenue
  • M-tron Industries (MPTI) believes it will meet or exceed its FY24 revenue guidance; Also announces appointment of Cameron Pforr as Chief Financial Officer, effective October 3, 2024
  • Orla Mining (ORLA) provides Q3 2024 operational results and tracks towards record production year
  • Tilray (TLRY) beats by $0.03, misses on revs
  • Triple Flag Precious Metals Corp. (TFPM) reports Q3 (Sep) revs of $73.7 mln vs. $67.18 mln FactSet Consensus and record quarterly metal sales of 29,773 gold equivalent ounces
• General News
  • Hurricane Milton makes landfall near Siesta Key, FL as a category 3 storm; millions of power outages reported
  • Latest polling shows that Republicans are poised to take control of the Senate after the November election, according to the New York Times
  • White House issues readout of President Joe Biden’s call with Prime Minister Netanyahu of Israel
  • Israel’s security cabinet expected to meet later tonight and approve Israel's response to Iran, according to NY Times
  • Atlanta Fed President Raphael Bostic (voting FOMC member) is open to skipping November rate cut, according to WSJ
  • Justice Department files suit for unpaid duties and penalties for alleged misclassification and failure to pay duties on imported Chinese solar panels
  • Former President Trump will propose today making all interest on car loans fully tax deductible, according to Reuters (Note: This will require congresional approval)
  • Federal Reserve Board fines Toronto-Dominion Bank $123.5 million for violations related to anti-money laundering laws
  • Former President Trump will also propose a 15% corporate tax rate only for companies that produce products in America
  • Former President Trump will also propose banning all Chinese autonomous vehicles from traveling on US roads - CNBC
  • President Biden tells reporters that Congress should come back into session and pass disaster relief funding
  • FTC finalizes changes to premerger notification form following unanimous vote
  • ADMA Biologics (ADMA) confirms it spoke with analysts regarding a change to the Company’s auditors; there is no anticipated impact to the Company’s previously provided 2024-2025 financial guidance as a result of the auditor transition process
  • Advanced Micro (AMD) confirms the launch of its latest high performance computing solutions defining the AI computing era
  • Air Canada (ACDVF) pilots vote to ratify collective agreement; deal marks major improvements to pay and includes some improvements to working conditions
  • AllianceBernstein (AB) announces that preliminary assets under management increased to $806 billion during September 2024 from $791 billion at the end of August
  • Alkermes Plc (ALKS) released presentation updating its orexin portfolio and development strategy
  • Alvotech (ALVO) confirms EMA acceptance of Marketing Application for AVT03
  • Amazon (AMZN) might be forced to treat delivery drivers as employees, according to New York Times
  • AMD (AMD) launches 5th Gen AMD EPYC CPUs, maintaining leadership performance and features for the modern data center
  • AMD (AMD) delivers leadership AI performance with AMD Instinct MI325X accelerators
  • AMD (AMD) launches new Ryzen AI PRO 300 Series Processors to power next generation of commercial PCs
  • America Movil SA (AMX): ICARO Media Group announces 10-year contract with América Móvil's Claro Brasil
  • Apple (AAPL): Apple TV+ launching on Prime Video in the US
  • Artisan Partners Asset Mgmt (APAM) reports that its preliminary assets under management as of September 30, 2024 totaled $167.8 billion
  • Astellas Pharma's (ALPMY) subsidiary, iota Biosciences, announces FDA approval for its Investigational Device Exemption for an Early Feasibility Study
  • AstraZeneca (AZN) and Alexion to present clinical and real-world data to reinforce the long-term safety and efficacy profiles of Ultomiris and Soliris
  • Avient (AVNT) raises annual dividend by 5%
  • Baidu (BIDU) wants to launch its robotaxi service outside mainland China, according to SCMP
  • Banc of California (BANC) COO will depart from the Company effective November 7
  • Boeing (BA) offered minor movements before breaking off contract talks with union, according to Reuters
  • Boeing (BA) and unions are preparing for long series of negotiations, according to New York Times
  • Brookfield Infrastructure Corp (BIPC): Brookfield Infrastructure (BIP) announces reorganization of Brookfield Infrastructure Corporation
  • Cboe Global Markets (CBOE) to launch new Options on VIX Futures on October 14
  • Definitive Healthcare (DH) launches Market Forecast, a predictive analytics solution designed to help healthcare organizations uncover high-growth markets and service line opportunities to strengthen investments and partnerships
  • Dell Technologies (DELL) expands Dell AI factory with new poweredge servers to accelerate enterprise AI adoption
  • Dr. Reddy's (RDY) shareholders approved voluntary liquidation of Imperial Owners and Land Possessions Private Limited (Formerly Imperial Credit Private Limited)
  • Eli Lilly (LLY) increasing its legal campaign against companies that sell copies of weight loss drugs, according to Bloomberg
  • Employers Holdings (EIG) names Michael Pedraja as CFO, effective February 3, 2025
  • EVgo Inc. (EVGO) has entered into a new memorandum of understanding with longtime technology partner, Delta Electronics to jointly develop next-generation EV charging architecture
  • FEMSA (FMX) announces agreement with TRAXIÓN to divest certain of FEMSA’s logistics operations
  • First Interstate Bancsystem (FIBK) appoints James Reuter as President and Chief Executive Officer, effective November 1
  • Franklin Resources, Inc. (BEN) Announces Month-End Assets Under Management
  • Gogo (GOGO) provided investor updates in presentation detailing combined LEO Strategy
  • Google (GOOG): Judges and the presidential election could undercut DOJ's antitrust case against Google, according to Politico
  • HPE (HPE) launches new purpose-built solutions – Powered by AMD – to accelerate training for large, complex AI models
  • Hewlett Packard Enterprise (HPE) announces a fanless direct liquid cooling systems architecture to enhance the energy and cost efficiency of large-scale AI deployments
  • HSBC (HSBC) aiming to target senior bankers in cost cutting plan, according to Financial Times
  • Immatics N.V. (IMTX) announces updated phase 1b clinical data on ACTengine IMA203 TCR-T targeting PRAME in melanoma patients and provides update on upcoming SUPRAME Phase 3 Trial
  • Innovative Solutions' (ISSC) patented ThrustSense Autothrottle system has been selected by the US Army to be installed on their C-12 aircraft equipped with ProLine 21 avionics suites
  • Intel's (INTC) GIGABYTE unveils AORUS Z890 motherboards with AI-enhanced innovations for the latest Intel® Core Ultra processors
  • Invesco (IVC) reports preliminary month-end assets under management of $1,795.6 billion, an increase of 2.5% versus previous month-end
  • iRhythm (IRTC) provides investor updates in presentation
  • Johnson & Johnson (JNJ) submits application to the European Medicines Agency for DARZALEX SC-based quadruplet regimen for newly diagnosed multiple myeloma patients
  • Lazard (LAZ) reports September 2024 assets under management
  • Main Street Capital (MAIN) announces Q3 private loan portfolio activity
  • Mattel (MAT): Fisher-Price recalls more than 2 mln Snuga infant swings due to suffocation hazard after 5 deaths reported
  • MediWound (MDWD) announces Phase II head-to-head study evaluating EscharEx vs. collagenase in patients with venous leg ulcers
  • MeiraGTx (MGTX) Announces Poster Presentation on a Potential Treatment for MC4R Genetic Deficiency at the 2024 Society for Neuroscience Conference
  • Microsoft (MSFT) expands AI capabilities to shape a healthier future
  • News Corp. (NWSA): Starboard (Jeffrey C. Smith) filed Proxy Statement for the Company's upcoming 2024 Annual Meeting of Stockholders
  • Novo Nordisk A/S (NVO) announced the launch of Booster Therapeutics
  • Novo Nordisk A/S (NVO): Novo Holdings has agreed to acquire a majority stake in Stingray Marine Solutions, a market-leading aquaculture technology company that provides advanced solutions for a more sustainable fish farming industry
  • NuScale Power (SMR) entered into Task Order with Fluor (FLR) Transworld Services
  • Oil-Dri (ODC) approves a two-for-one stock split in the form of a stock dividend
  • Pfizer (PFE) issues statement from Former Pfizer CEO Ian Read and Former Pfizer CFO Frank D’Amelio regarding Starboard Value
  • Pfizer (PFE) TALZENNA in combination with XTANDI prolongs overall survival in phase 3 TALAPRO-2 trial
  • Primis Financial (FRST) provides progress report on filings and compliance with Nasdaq listing requirements
  • Robinhood Markets (HOOD) reaches $10 bln in Assets Under Custody across its nearly one million funded retirement accounts
  • Roche Hldg (RHHBY) obtains CE certification for the first companion diagnostic to identify patients with gastric and gastroesophageal junction cancer eligible for targeted treatment with VYLOY
  • Stellantis (STLA) closes the third quarter of 2024 keeping the 2nd place in the European ranking and totalizing a market share of nearly 17.6%
  • Super Micro Computer (SMCI) introduces new servers and GPU accelerated systems with AMD EPYC 9005 Series CPUs and AMD Instinct MI325X GPUs for AI ready data centers
  • Symbotic (SYM) has entered into commercial agreements with Walmart de México y Centroamérica to implement Symbotic’s industry-leading warehouse automation systems in two of the retailer’s locations near Mexico City
  • TD (TD) expected to pay $3 bln in penalties in settlement with regulators over money laundering controls, according to the Wall Street Journal
  • Tempest Therapeutics (TPST) announces agreement with Roche (RHHBY) to support advancement of Amezalpat combination therapy into first-line hepatocellular carcinoma pivotal trial
  • Tesla (TSLA) is expected to unveil its RoboTaxi at an event at 9 PM ET tonight
  • Toronto-Dominion Bank (TD): OCC issues cease and desist order, assesses $450 million civil money penalty, and imposes growth restriction upon TD Bank, N.A. for BSA/AML Deficiencies
  • Toronto-Dominion Bank (TD): DOJ at press conference confirms that TD Bank pleaded guilty to not monitoring money laundering by drug cartels and will pay $3 bln in fines
  • Toronto-Dominion Bank (TD): Treasury is announcing the Financial Crimes Enforcement Network’s $1.3 billion penalty on TD Bank
  • Toronto-Dominion Bank (TD) confirms resolution of AML investigations
  • TotalEnergies SE (TTE) has signed a charter contract with Spanish shipowner Ibaizabal for a new Liquefied Natural Gas bunker vessel of 18,600m3 capacity
  • Toyota (TM) Chairman Akio Toyoda says converting to all EVs will result in job losses, according to Reuters
  • Upstart (UPST) announces a programmatic purchase commitment from funds managed by Blue Owl Capital Inc. (OWL)
  • Victory Capital (VCTR) reports Total Assets Under Management of $176.1 billion, other assets of $5.0 billion, and total client assets of $181.1 billion, as of September 30

Ratings Changes (see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Acadia Realty Trust (AKR) upgraded to Buy from Neutral at Compass Point; tgt $27
  • Alcon (ALC) upgraded to Neutral from Sell at Redburn Atlantic
  • American Intl (AIG) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $89
  • Bank of Marin (BMRC) upgraded to Buy from Neutral at DA Davidson; tgt $24
  • Brinker (EAT) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $90
  • Canadian Nat'l Rail (CNI) upgraded to Outperform from Sector Perform at RBC Capital Mkts
  • CVS Health (CVS) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $82
  • EVgo Inc. (EVGO) upgraded to Buy from Neutral at UBS; tgt raised to $8.50
  • Fortive (FTV) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $92
  • Lending Club (LC) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $15
• Downgrades:
  • American Tower (AMT) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $230
  • Azul S.A. (AZUL) downgraded to Neutral from Buy at Seaport Research Partners
  • Cirrus Logic (CRUS) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $120
  • First Advantage Corp. (FA) downgraded to Peer Perform from Outperform at Wolfe Research
  • Hexcel (HXL) downgraded to Hold from Buy at Vertical Research; tgt $65
  • Honeywell (HON) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $235
  • Hubbell (HUBB) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $454
  • Huntington Ingalls (HII) downgraded to Hold from Buy at Vertical Research; tgt $275
  • Huntington Ingalls (HII) downgraded to Peer Perform from Outperform at Wolfe Research
• Others:
  • Align Tech (ALGN) initiated with a Hold at Needham
  • Banc of California (BANC) initiated with a Neutral at Citigroup; tgt $15
  • Birkenstock Holding Plc (BIRK) initiated with a Buy at BTIG Research; tgt $60
  • Builders FirstSource (BLDR) initiated with a Buy at Goldman; tgt $225
  • Cabaletta Bio (CABA) initiated with a Buy at UBS; tgt $10
  • Carrier Global (CARR) resumed with a Neutral from Underweight at JP Morgan; tgt raised to $83
  • IperionX (IPX) initiated with a Buy at B. Riley Securities; tgt $30
  • Kyverna Therapeutics (KYTX) initiated with a Buy at UBS; tgt $13

• Econ Data (Friday):
  • 8:30 ET: September PPI (Briefing.com consensus 0.1%; prior 0.2%) and Core PPI (Briefing.com consensus 0.2%; prior 0.3%)
  • 10:00 ET: Preliminary October University of Michigan Consumer Sentiment (Briefing.com consensus 70.1; prior 70.1)
• Earnings:
  • Monday (Oct 7)
    • Pre-Market: None
    • After-Hours: NAPA
  • Tuesday (Oct 8)
    • Pre-Market: ACCD PEP
    • After-Hours: None
  • Wednesday (Oct 9)
    • Pre-Market: HELE
    • After-Hours: AZZ
  • Thursday (Oct 10)
    • Pre-Market: DAL DPZ NEOG TLRY
    • After-Hours: None
  • Friday (Oct 11)
    • Pre-Market: BLK BK FAST JPM WFC
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike