After Hours Report

The S&P 500 (-0.8%), Nasdaq Composite (-1.0%), and Dow Jones Industrial Average (-0.8%) settled with solid losses while the Russell 2000 eked out a 0.1% gain.

Index-level losses were impacted by weakness in semiconductor-related names. Initial weakness in the semiconductor space followed a Bloomberg report that the Biden administration is looking at curbing sales of advanced AI chips to certain countries, with a focus on Persian Gulf countries.

Selling intensified in the space in response to ASML's (ASML 730.43, -141.84, -16.3%) Q3 results.

The semiconductor equipment maker's results were released early and disappointed investors due to below-consensus EPS, revenues, and net bookings. The company also issued weaker-than-expected FY25 revenue guidance saying, "While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover." 

This news sharply undercut most semiconductor stocks, including NVIDIA (NVDA 131.83, -6.23, -4.5%), which helped pace an outsized 5.3% decline in the Philadelphia Semiconductor Index (SOX).

Market participants were also reacting to earnings news from influential names. UnitedHealth (UNH 556.29, -49.11, -8.1%), the largest component in the price-weighted DJIA, weighed down other health care stocks. The S&P 500 health care sector declined 1.2%.

Goldman Sachs (GS 522.38, -0.37, -0.1%), Bank of America (BAC 42.14, +0.23, +0.6%), Citigroup (C 62.64, -3.37, -5.1%) are also among the names that reported earnings since yesterday's close. The financial sector settled 0.3% higher despite mixed responses to the quarterly results.

The 10-yr yield settled three basis points lower at 4.04% and the 2-yr yield settled one basis point higher at 3.95%.

• Nasdaq Composite: +22.0% YTD
• S&P 500: +21.9% YTD
• S&P Midcap 400: +13.8% YTD
• Dow Jones Industrial Average: +13.4% YTD
• Russell 2000: +11.0% YTD

Reviewing today's economic data:

• October NY Fed Empire State Manufacturing -11.9 (Briefing.com consensus 2.0); Prior 11.5

Wednesday's economic lineup features:

• 07:00 ET: MBA Mortgage Applications Index (Prior -5.1%)
• 08:30 ET: September Import Prices (Prior 0.8%) and Import Prices ex-oil (Prior -0.1%); September Export Prices (Prior-0.7%) and Export Prices ex-agricultural products (Prior -0.6%)
• 10:30 ET: EIA Crude Oil Inventories (Prior +5.81M)

Overseas:

• Europe: DAX +0.1%, FTSE -0.5%, CAC -1.1%
• Asia: Nikkei +0.9%, Hang Seng -3.7%, Shanghai -2.5%

Commodities:

• Crude Oil -3.21 @ 70.66
• Nat Gas +0.01 @ 2.50
• Gold +14.10 @ 2679.20
• Silver +0.40 @ 31.72
• Copper -0.06 @ 4.33

After-Hours Spotlight:

• Enerpac Tool Group (EPAC) misses single estimate by $0.03, slightly beats on revs, guides FY25 revenue below single analyst estimate; appoints Darren Kozik as CFO, effective Oct 28... EPAC down 8.1%
• Interactive Brokers (IBKR) misses by $0.07, beats on revs... IBKR down 2.9%
• J.B. Hunt Transport (JBHT) beats by $0.10, beats on revs... JBHT up 7.6%
• NovoCure (NVCR): FDA approves Optune Lua for concurrent use with PD-1/PD-L1 inhibitors or docetaxel... NVCR up 25.1%
• Omnicom (OMC) reports EPS in-line, beats on revs... OMC down 1.9%
• Penguin Solutions (PENG) misses by $0.03, misses on revs; guides FY25 EPS below consensus, revs in-line... PENG down 16.1%
• Silvaco Group (SVCO) lowers FY25 revenue, gross bookings, operating income guidance as company saw a decline in orders from Asia during Q3 primarily driven by economic challenges and the ongoing strain in U.S.-China trade relations... SVCO down 9.6%
• United Airlines (UAL) beats by $0.16, reports revs in-line; guides Q4 EPS in-line; Authorizes new share repurchase program for up to $1.5 bln of outstanding shares of common stock and warrants... UAL down 0.9%

Fair Value for Wednesday, Oct 16:

• S&P 500: 5,861
• Nasdaq 100: 20,338
• DJIA: 43,016

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

• Earnings/Guidance (Full Earnings Calendar):
  • Albertsons (ACI) beats by $0.03, reports revs in-line; comps +2.5%, fueled by pharmacy sales
  • Alpha Metallurgical Resources (AMR) provides Q3 update, says Q3 results reflect the market softness of the last few months
  • ASML (ASML) misses by EUR 0.08, misses on revs; guides Q4 revs below consensus; guides FY25 revs below consensus
  • British American Tobacco (BTI) reaffirms FY24 guidance
  • CareDx (CDNA) sees Q3 revs above consensus
  • Charles Schwab (SCHW) beats by $0.02, beats on revs
  • Citigroup (C) beats by $0.20, beats on revs
  • Citigroup (C) provides guidance in slide presentation
  • Coty (COTY) announces prelim Q1 results; reiterates FY25 adjusted EBITDA outlook of +9-11%
  • Ericsson (ERIC) beats by SEK0.15, reports revs in-line
  • FB Financial (FBK) beats by $0.06
  • Forum Energy Tech. (FET) sees Q3 revs below consensus
  • Genmab (GMAB) announces net sales of DARZALEX for third quarter of 2024
  • Goldman Sachs (GS) beats by $1.51, beats on revs
  • Immuron (IMRN) announces Travelan has continued strong sales growth
  • Johnson & Johnson (JNJ) beats by $0.21, beats on revs; guides FY24 EPS in-line, revs in-line
  • Legend Biotech (LEGN) announces preliminary sales for CARVYKTI for the quarter ended September 30, 2024
  • Life Time (LTH) guides Q3 revs above consensus
  • MRC Global (MRC) sees Q3 revs slightly below forecast; announces actions to strengthen its capital structure
  • PNC (PNC) beats by $0.19, reports revs in-line; provides Q4 guidance
  • Progressive (PGR) beats by $0.29, beats on revs
  • State Street (STT) beats by $0.14, beats on revs, NII up 16%
  • UnitedHealth (UNH) beats by $0.15, beats on revs; guides FY24 EPS in-line
  • Walgreens Boots Alliance (WBA) beats by $0.03, beats on revs; guides FY25 EPS in-line, revs in-line; Also announces a footprint optimization program targeting approximately 1,200 closures over next three years
• General News
  • Israel to strike Iranian military, not nuclear or oil, according to The Washington Post
  • China aiming to tax rich for overseas gains on investments, according to Bloomberg
  • California investigates five possible human cases of bird flu, according to Reuters
  • Vice President Kamala Harris announces proposals for black men and their families; will provide 1 million forgivable loans up to $20,000 to black entrepreneurs; Legalize marijuana at the federal level; Supporting a regulatory framework for cryptocurrency (all of this requires congressional approval)
  • Former President Trump on Bloomberg interview says Fed Chair Jerome Powell dropped rates too much in 2020; says a president should be able to give his or her opinion to Fed on interest rates, but he or she shouldn't be allowed to order it
  • FAA will investigate runway incursion risks at 45 airports, according to Reuters
  • Akamai Tech (AKAM) announced a collaboration with Kyndryl (KD) to deliver Micro-Segmentation Implementation Services with Akamai Guardicore Segmentation
  • Alphabet (GOOG): Former President Trump on Bloomberg interview says that Google has a "a lot of power"; asked if he would break them up; says he would "do something"
  • American Express (AXP) reports September card metrics
  • argenx (ARGX) Highlights Data Showing Patient Impact Across Multiple Immunology Programs at 2024 American Association of Neuromuscular & Electrodiagnostic Medicine Annual Meeting and Myasthenia Gravis Foundation of America Scientific Sessions
  • ARS Pharmaceuticals (SPRY) discloses supply agreement
  • ASML (ASML): Statement relating to early publication of our Q3 2024 results
  • Banco Santander's (SAN) Santander Holdings USA entered into a definitive settlement agreement
  • Bank of America (BAC) reported earlier reports September card metrics
  • Bayer (BAYRY) submits MMA to the EMA for elinzanetant to treat moderate to severe vasomotor symptoms
  • Blend Labs (BLND) announces partnership with PenFed Credit Union to enhance its home lending operations
  • Blink Charging (BLNK) stepping in to support former Enel X and JuiceBox customers
  • Boeing (BA) issuing layoff notices next month as part of previously-announced job cuts, according to Reuters
  • Boeing (BA) entered into a $10.0 billion supplemental credit agreement
  • Caledonia Mining (CMCL) reported third quarter production at Blanket Mine
  • Cartesian Therapeutics (RNAC) Announces Presentation of Results from Phase 2b Trial of Descartes-08 in Patients with Myasthenia Gravis at the 2024 MGFA Scientific Session of the AANEM Annual Meeting
  • Citigroup (C) reports September card metrics
  • Collective Mining (CNL) Outlines a Porphyry System at Plutus by Intersecting 328.05 Metres @ 0.31 g/t Gold Equivalent from Surface
  • Dominion Energy (DUK) Virginia releases comprehensive long-term plan to meet growing power demand with reliable, affordable and increasingly clean electricity
  • Donaldson (DCI) announces the opening of its newest distribution center in Olive Branch, Mississippi
  • Dr. Reddy's (RDY) provided Revlimid litigation updates
  • enCore Energy (EU) Continues to Encounter High Grade Drill Results from the Alta Mesa Uranium Project
  • Equity Lifestyle Properties (ELS) reports its preliminary assessment of the impact of Hurricane Milton on its Florida properties
  • Exelixis (EXEL) wins key patent ruling against MSN Labs, according to Bloomberg
  • Exelixis (EXEL) announces update on second patent litigation trial with MSN Laboratories
  • Exxon Mobil (XOM) aiming to sell portions of Bakken shale assets, according to Reuters
  • FOX News Digital (FOX) Leads News Brands With Multiplatform Minutes and Views During Third Quarter Seeing Double-Digit Gains
  • General Mills (GIS) entered into new five-year credit facility
  • GlaxoSmithKline (GSK) files lawsuit against Moderna (MRNA) over alleged COVID-19 vaccine patent infringement, according to Reuters
  • Holcim Ltd. (HCMLY) considers dual US and Swiss listing for $30 billion North American spinoff amid strategic market moves, according to Bloomberg
  • ING Groep (ING) completes share repurchase program
  • Ivanhoe Electric (IE) and VRB Energy signed definitive agreements
  • Jazz Pharma (JAZZ) announces statistically significant overall survival and progression-free survival results for Zepzelca and atezolizumab combination in first-line maintenance therapy for extensive-stage small cell lung cancer
  • Johnson & Johnson (JNJ) CFO Joseph Wolk on CNBC says company continues to make progress with talc legal matters; case will be held in Houston; company has enough cash flow despite these lawsuits
  • Joint Corp (JYNT) names Sanjiv Razdan as its President and CEO, effective today; former CEO Peter D. Holt announced resignation
  • JPMorgan Chase (JPM) reports September card metrics
  • Kenon Holdings' (KEN) OPC Energy Ltd. announces updates on agreements by CPV to increase interests in two power plants
  • Keysight (KEYS) expands its regenerative power system series with two new models, supporting power options of 20kW and 30kW at 500V
  • Lockheed Martin (LMT) confirmed it was awarded contracts to develop advanced connectivity capabilities for U.S. Army Apache helicopter fleet
  • Medical Properties Trust (MPW) Releases Findings of Independent Investigation Into Short-seller Allegations
  • MeiraGTx (MGTX) Announces Data from Randomized, Sham-controlled Clinical Bridging Study of AAV-GAD for the Treatment of Parkinson’s Disease
  • Meta Platforms (META) deploys Arista’s (ANET) 7700R4 DES for AI cluster expansion, advancing ethernet-based networking for high-performance AI workloads
  • Microsoft's (MSFT) VP of GenAI research, Sebastien Bubeck, to leave the company and join OpenAI, according to Reuters
  • Microsoft's (MSFT) IVAS contract for the US Army could be in trouble, according to Business Insider
  • MicroVision (MVIS) is actively engaged in discussions with manufacturers, with seven requests for quotes for passenger vehicles and custom development opportunities; reports prelim Q3
  • Mid-America Aptmt (MAA) reports minor damage from Hurricanes Helene and Milton
  • Montrose Environmental Group (MEG) awarded $249 mln U.S. Army Corps of Engineers Environmental Services Contract
  • Nordic American Tanker (NAT) is pleased to announce a five-year time charter contract with a major international energy company
  • NVIDIA (NVDA): The Biden administration mulling capping exports of Nvidia and AMD (AMD) chips to certain nations, according to Bloomberg
  • NVIDIA (NVDA) contributes Blackwell Platform design to open hardware ecosystem, Accelerating AI infrastructure innovation
  • Ocular Therapeutix (OCUL) Announces Accelerated Timelines for SOL-1 Registrational Trial of AXPAXLI in Wet AMD
  • Old Second Bancorp Inc. (OSBC) declared quarterly cash dividend of $0.06 per share, up from prior $0.05 per share
  • ONEOK (OKE) announced the expiration of the waiting period under HSR and successful completion of acquisition of Global Infrastructure Partners' interest in EnLink Midstream (ENLC)
  • Orla Mining (ORLA) repays revolving credit facility to achieve debt-free status
  • Pfizer (PFE): Tim Buckley elected to Pfizer’s Board of directors
  • Primo Water (PRMW) declares special dividend of $0.82 per share
  • Prudential Plc (PUK) announced new shares to be issued in connection with the scrip dividend alternative
  • PTC Therapeutics (PTCT) announces that the FDA has set a target regulatory action date of July 29, 2025, for the review of the New Drug Application for sepiapterin, consistent with a standard review timeline
  • Royal Caribbean (RCL) will invest in Quintana Roo in Mexico, according to Tiempo
  • Ryder System (R) authorizes new share repurchase program
  • Science Applications (SAIC) and Wind River expand strategic partnership to accelerate development and deployment of mission-critical systems
  • Southwest Airlines (LUV) comments on Elliott Management's Special Meeting request
  • State Street (STT) announces that Eric Aboaf, vice chairman and chief financial officer, has made the decision to accept a new opportunity outside of banking and is expected to leave State Street in February of 2025
  • Supermicro (SMCI) adds new petascale JBOF all-flash storage solution integrating NVIDIA (NVDA) BlueField-3 DPU for AI data pipeline acceleration
  • Tevogen Bio (TVGN) takes lead in developing cell therapies designed to eradicate post procedure human papilloma virus in women with precancerous cervical lesions
  • Tevogen Bio (TVGN) highlights the publication of promising trial data as the CEO expresses optimism about the company’s scientific breakthrough in mainstreaming cell therapy through a new class of off-the-shelf T-Cell therapies, manufactured and stored for immediate use
  • Uber (UBER) for Business launches Uber Business Black for corporate travelers, a new ride type to meet growing demand for premium travel experiences
  • UBS AG (UBS): Finma says UBS resolution reporting: recovery and emergency plans to be revised
  • Vertiv (VRT) announces that it is releasing a complete 7MW reference architecture of the NVIDIA GB200 NVL72 platform, co-developed with NVIDIA (NVDA)
  • VinFast Auto (VFS) delivered over 9,300 EVs to domestic customers in September
  • Warner Bros. Discovery (WBD) to launch Max In 7 new markets in Southeast Asia, Taiwan And Hong Kong on November 19
  • Wolfspeed (WOLF) receives $750 mln in proposed funding from U.S. CHIPS Act and additional $750 mln from investment group led by Apollo (APO)
  • W.P. Carey (WPC) tenant initiated voluntary Chapter 11 proceedings

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

• Upgrades:
  • Advance Auto (AAP) upgraded to Outperform from Neutral at Wedbush; tgt $55
  • Ardagh Metal Packaging S.A. (AMBP) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $5
  • ASE Technology (ASX) upgraded to Buy from Neutral at UBS
  • Bausch + Lomb (BLCO) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $25
  • BOK Financial (BOKF) upgraded to Buy from Neutral at DA Davidson; tgt raised to $124
  • Con Edison (ED) upgraded to Buy from Neutral at Citigroup; tgt raised to $116
  • Doximity (DOCS) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $52
  • Duke Energy (DUK) upgraded to Outperform from Neutral at Mizuho; tgt raised to $121
  • Meritage (MTH) upgraded to Neutral from Underperform at Wedbush; tgt raised to $195
  • Revvity (RVTY) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $140
  • SM Energy (SM) upgraded to Buy from Hold at TD Cowen; tgt lowered to $60
  • Wells Fargo (WFC) upgraded to Accumulate from Neutral at Phillip Securities
• Downgrades:
  • American Intl (AIG) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $84
  • American Water Works (AWK) downgraded to Neutral from Outperform at Mizuho; tgt raised to $140
  • AppFolio (APPF) downgraded to Underperform from Mkt Perform at Keefe Bruyette; tgt lowered to $193
  • Boeing (BA) downgraded to Hold from Buy at DZ Bank; tgt $152
  • Ciena (CIEN) downgraded to In-line from Outperform at Evercore ISI; tgt $65
  • CMS Energy (CMS) downgraded to Neutral from Outperform at Mizuho; tgt lowered to $72
  • Commvault Systems (CVLT) downgraded to Neutral from Buy at Guggenheim
  • Comstock (CRK) downgraded to Sell from Hold at Siebert Williams Shank; tgt $9
  • Enphase Energy (ENPH) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $100
  • Etsy (ETSY) downgraded to Sell from Neutral at Goldman; tgt lowered to $45
  • Lennox Int'l (LII) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • Magnolia Oil & Gas (MGY) downgraded to Hold from Buy at Siebert Williams Shank; tgt $30
  • Mobileye Global (MBLY) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $11
  • Noble Corporation (NE) downgraded to Hold from Buy at The Benchmark Company
  • Prosperity Bancshares (PB) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $78
  • Transocean (RIG) downgraded to Hold from Buy at The Benchmark Company
  • Valaris (VAL) downgraded to Hold from Buy at The Benchmark Company
• Others:
  • Airbnb (ABNB) added to Evercore ISI Tactical Outperform list
  • Alphabet (GOOG/L) added to Evercore ISI Tactical Outperform list
  • Bruker (BRKR) initiated with an Overweight at Barclays; tgt $75
  • Cadence Design (CDNS) initiated with a Buy at Berenberg; tgt $320
  • Constellation Energy (CEG) initiated with a Neutral at Citigroup; tgt $284
  • DHT (DHT) initiated with a Buy at BTIG Research; tgt $16
  • Expedia Group (EXPE) added to Evercore ISI Tactical Outperform list
  • German American Bancorp (GABC) initiated with an Overweight at Stephens; tgt $45
  • HEICO (HEI) initiated with a Neutral at UBS; tgt $277
  • Lemaitre Vascular (LMAT) initiated with a Neutral at Cantor Fitzgerald; tgt $96
  • MarineMax (HZO) initiated with a Buy at The Benchmark Company; tgt $40
  • Monro Muffler (MNRO) initiated with an Equal-Weight at Stephens; tgt $31
  • Synopsys (SNPS) initiated with a Buy at Berenberg; tgt $660
  • Valvoline (VVV) initiated with an Overweight at Stephens; tgt $49

• Econ Data (Wednesday):
  • 07:00 ET: MBA Mortgage Applications Index (Prior -5.1%)
  • 08:30 ET: September Import Prices (Prior 0.8%) and Import Prices ex-oil (Prior -0.1%); September Export Prices (Prior-0.7%) and Export Prices ex-agricultural products (Prior -0.6%)
  • 10:30 ET: EIA Crude Oil Inventories (Prior +5.81M)
• Earnings:
  • Monday (Oct 14)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Oct 15)
    • Pre-Market: ACI BAC SCHW C ERIC GS JNJ PNC PGR STT UNH WBA
    • After-Hours: FULT HWC IBKR JBHT OMC PNFP SGH UAL
  • Wednesday (Oct 16)
    • Pre-Market: ABT ASML CFG FHN MS OFG PLD SYF USB WAFD
    • After-Hours: AA CNS CCI CSX DFS EFX FR HOMB KMI LBRT PPG REXR SLG STLD SNV
  • Thursday (Oct 17)
    • Pre-Market: BMI BX CMC ELV HBAN IIIN IRDM KEY MTB MAN MMC NOK SNA TCBI TRV TSM TFC WBS WNS
    • After-Hours: OZK CCK FNB ISRG NFLX WDFC WAL
  • Friday (Oct 18)
    • Pre-Market: ALLY ALV AXP CMA FITB PG RF SFNC SLB
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike