After Hours Report

The stock market closed on a higher note on buy-the-dip interest after a soft start to the week. The Russell 2000 gained 0.1%, the Dow Jones Industrial Average closed 0.3% higher, the S&P 500 climbed 1.0%, and the Nasdaq Composite settled 1.5% higher.

Mega caps, growth stocks, and chipmakers had an outsized impact on index gains in today's broad rally. The Vanguard Mega Cap Growth ETF (MGK) jumped 1.8%, the PHLX Semiconductor Index (SOX) settled 1.3% higher, and the Russell 3000 Growth Index closed with a 1.6% gain.

NVIDIA (NVDA 132.89, +5.17, +4.1%) was a top performer after a Bloomberg report that Hon Hai Precision is aiming to increase capacity to meet demand for artificial intelligence products. 

Calmer action in Treasuries after sharp losses of late, along with a drop in oil prices, also helped boost the equity market. The 10-yr yield settled one basis higher at 4.03% and the 2-yr yield settled two basis points lower at 3.98%. On a related note, today's $58 billion 3-yr note sale met weak demand. 

WTI crude oil futures 4.5% lower at $73.70/bbl. This price action was related to fears about Hurricane Milton, along with demand concerns due to a lack of new stimulus measures out of China.

The S&P 500 energy sector was the worst performer in the index by a wide margin, dropping 2.6%. The only other sector to close lower was materials (-0.4%). Meanwhile, the information technology sector jumped 2.1%, the communication services sector logged a 1.1% gain, and the consumer discretionary sector settled 1.0% higher.

• Nasdaq Composite: +21.1% YTD
• S&P 500: +20.6% YTD
• Dow Jones Industrial Average: +11.7% YTD
• S&P Midcap 400: +11.3% YTD
• Russell 2000: +8.3% YTD

Reviewing today's economic data:

• September NFIB Small Business Optimism 91.5; Prior 91.2
• August Trade Balance -$70.4 bln (Briefing.com consensus -$71.3 bln); Prior was revised to -$78.9 bln from -$78.8 bln
  • The key takeaway from the report is that the net exports component for August will be a positive input for Q3 GDP forecasts.

Looking ahead, market participants receive the following economic data on Wednesday:

• 7:00 ET: Weekly MBA Mortgage Index (prior -1.3%)
• 10:00 ET: August Wholesale Inventories (Briefing.com consensus 0.2%; prior 0.2%)
• 10:30 ET: Weekly crude oil inventories (prior +3.89 mln)
• 14:00 ET: September FOMC Minutes

Overseas:

• Europe: DAX -0.2%, FTSE -1.4%, CAC -0.7%
• Asia: Nikkei -1.3%, Hang Seng -9.4%, Shanghai +4.6%

Commodities:

• Crude Oil -3.48 @ 73.70
• Nat Gas -0.01 @ 2.73
• Gold -30.50 @ 2635.40
• Silver -1.41 @ 30.60
• Copper -0.10 @ 4.46

After-Hours Spotlight:

• Astera Labs (ALAB) announces new portfolio of fabric switches for AI workloads in accelerated computing platforms... ALAB up 3.4%
• Delek Logistics Partners (DKL) announces proposed public offering of $150 mln of common units... DKL down 8.0%
• Pfizer (PFE) inching higher on CEO Albert Bourla planning to meet activist investor Starboard Value, according to FT.com... PFE up 0.3%
• Saratoga Investment (SAR) beats by $0.39, beats on revs... SAR up 10.0%
• Zeta Global (ZETA) enters into agreement to acquire LiveIntent for total consideration of $250 mln; Co also reaffirms Q3 revenue and adjusted EBITDA guidance... ZETA up 3.6%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Accolade (ACCD) beats by $0.14, beats on revs; guides Q3 revs below consensus; guides FY25 revs in-line
  • Aris Mining Corporation (ARMN) reports Q3 production
  • Eli Lilly (LLY) estimated Q3 acquired in-process research and development charges
  • Endeavour Silver (EXK) reports Q3 2024 production results
  • Imperial Brands (IMBBY) confirms in-line trading update
  • PENN Entertainment (PENN) expects Q3 Retail Operations adjusted EBITDAR to be in the range of $465-475 million; raises Interactive adjusted EBITDA outlook
  • PepsiCo (PEP) beats by $0.02, misses on revs; reaffirms FY24 EPS guidance
  • Samsung (SSNLF) provides Q3 guidance
  • Silicon Motion (SIMO) sees Q3 revs above the midpoint of its original guidance
  • Voya Financial (VOYA) disclosed alternative investment income and prepayment fees above (below) long-term expectations
  • Wynn Resorts (WYNN) sees $2.8 bln in illustrative EBITDA in 2026; sees Completing the UAE investment cycle in 2026
• General News
  • China is confident in reaching economic goals, but held off on additional stimulus measures, according to Bloomberg
  • Vice President Kamala Harris spoke about Israel and economy during interview on 60 Minutes, CBS News
  • Hurricane Milton downgraded to categroy 4 and is expected to impact the west coast of Florida as a major hurricane Thursday morning
  • Vice President Kamala Harris will propose that Medicare cover home care for seniors, according to the Wall Street Journal
  • China aims to initiate new anti dumping measures on EU brandy imports, according to Financial Times
  • China also investigating if it should impose tariffs on EU cars, according to Bloomberg
  • White House announced new actions from his Investing in America agenda to connect Milwaukee, Wisconsin residents to good-paying jobs, including replacing lead pipes and upgrading infrastructure through the Milwaukee Workforce Hub
  • New York Fed President John Williams (voting FOMC member) in interview says two more rate cuts of 25 basis points each for reminder of the year is a good "base case", according to FT
  • NRF reports October import cargo to remain strong despite three-day strike at East Coast and Gulf Coast Ports
  • Atlanta Fed President Raphael Bostic (voting member) says Fed will balance job and inflation risks, according to Bloomberg
  • Israel warns that it will conduct a “significant” response to an Iranian missile attack, according to Bloomberg
  • The federal budget deficit was $1.8 trillion in fiscal year 2024, the Congressional Budget Office estimates
  • Pentagon spokesperson Sabrina Singh Israeli Defense Minister Yoav Gallant has canceled his planned trip to US, according to Reuters
  • Adobe (ADBE) is introducing Adobe Content Authenticity: A free web app to help creators protect their work, gain attribution and build trust
  • ADT (ADT) recently became aware of unauthorized activity on the Company’s network
  • Air Lease (AL) provides activity update for the third quarter of 2024
  • Apple (AAPL) Global Head of Procurement Dan Rosckes to retire, according to Bloomberg
  • Asbury Automotive (ABG) Sues to Block Administrative Proceeding by the Federal Trade Commission
  • Aspen Technology (AZPN) Launches Microgrid Management System to Help Customers Address Power Reliability and Meet Net-Zero Goals
  • Astellas Pharma (ALPMY) and AviadoBio announce an exclusive option and license agreement for AVB-101, an investigational, AAV-based gene therapy in Phase 1/2 development for patients with frontotemporal dementia with progranulin mutations
  • Azul S.A. (AZUL) successfully reached commercial agreements with lessors and OEMs
  • Baidu (BIDU) announces management rotation; Junjie He appointed Interim CFO
  • Bank of America (BAC): 10% owner Berkshire Hathaway's (BRK.A / BRK.B) Warren Buffett sold 9,570,980 shares at $39.25 - $40.44 worth approx. $383 mln
  • Barrick Gold Corporation (GOLD): Africa’s largest gold mine probes significant new discoveries says President and Chief Executive Mark Bristrow, co is also consolidating new prospective grounds for both gold and copper to expand its footprint in the DRC
  • Bayer AG (BAYRY) and MOMA Therapeutics to develop and commercialize a small molecule oncology program based on MOMA’s proprietary KNOMATIC platform
  • BCE Inc (BCE): Bell Media expands partnership with Warner Bros. Discovery (WBD) in Canada; broadens Bell Media and Warner Bros. Discovery's content pact and extends Crave as the exclusive Canadian home of HBO and Max Originals
  • Benchmark Electronics (BHE) names Bryan Schumaker as CFO
  • Biogen (BIIB): New higher dose nusinersen efficacy and safety data presented at world muscle society congress, highlight potential to maximize benefit of nusinersen in sMA
  • Black Diamond Therapeutics (BDTX) announces restructuring to focus resourcing on advancing lead program BDTX-1535 into pivotal development and extend cash runway; CFO departing
  • Boeing (BA): FAA issues safety alert for potential for jammed or restricted rudder on Boeing Model 737 series airplanes equipped with optional collins aerospace SVO-730 rudder rollout guidance actuators
  • Boeing (BA) announces third-quarter deliveries; 116 deliveries for Commercial Airplane Programs and 34 for Defense, Space & Security Programs
  • Boston Beer Co (SAM) authorizes increase to buyback program by $400 mln; increases limit to $1.6 bln
  • Bowman Consulting (BWMN) President Michael Bruen to retire
  • Broadcom (AVGO) Delivers On AI Infrastructure Vision with Industry-Leading Solutions at 2024 OCP Global Summit
  • California Resources (CRC) unit part of group that was granted $8.9 mln DoE award
  • Cal-Maine Foods (CALM) approved $40 mln in new capital projects to further expand the company’s cage-free production capabilities
  • Can-Fite BioPharma (CANF) granted FDA orphan drug designation for treatment of pancreatic cancer
  • Canadian Nat'l Rail (CNI) reports The Minister of Labor has appointed three conciliators in response to Unifor's decision
  • CareDx (CDNA) announces closure of DOJ investigation with no finding of wrongdoing
  • Chevron (CVX) aiming to sell some east Texas natural gas assets to Tokyo Gas, according to FT
  • Community Health (CYH) and Denim Health announce development partnership aimed at revolutionizing the call center experience for patients through the implementation of conversational AI
  • Commvault Systems (CVLT) provides several updates
  • Comtech Telecom (CMTL): Ken Peterman, former CEO of Comtech, endorses Michael Porcelain's full slate of director nominees
  • Cracker Barrel (CBRL): Biglari Capital Corp. Issues Letter to Shareholders of Cracker Barrel Old Country Store, Inc.
  • Criteo (CRTO) announced a partnership with Belk to launch its retail media arm, the Belk Media Network
  • Darling Ingredients (DAR) Introduces Nextida GC
  • Dominion Energy (D), American Electric Power (AEP), and FirstEnergy (FE) reach joint planning agreement to propose regional transmission projects across PJM footprint
  • Duke Energy (DUK) committed to ongoing rebuild in western N.C., thanks Carolinas customers for patience and support following Helene
  • Dycom (DY) appointed Kevin M. Wetherington as the Company’s Executive Vice President and Chief Operating Officer
  • Ecopetrol (EC): Colombia's National Electoral Council wants investigation into petro campaign financing, according to Reuters
  • Elanco Animal Health (ELAN) announces FDA approval of Credelio Quattro, a canine oral parasiticide that protects against six parasites
  • Fluence (FLNC) to provide advanced energy storage systems for Statkraft’s Project Zerbst
  • Forward Air (FWRD) issues statement regarding about refreshing Board and management team
  • Frontier Communications Parent (FYBR): Verizon (VZ) has secured $10 bln in funding for FYBR acquisition, according to Bloomberg
  • FTI Consulting (FCN): Technology segment launches IQ.AI for legal and compliance
  • General Motors (GM) expected to answer questions about China at investor meeting today, according to the Wall Street Journal
  • Google (GOOG, GOOGL) working with utilities regarding nuclear energy, according to Bloomberg
  • Grupo Aeroportuario (OMAB) reports a 5.2% decrease in September 2024 passenger traffic
  • GSK (GSK) Presents Positive Data for AREXVY, Its Respiratory Syncytial Virus (RSV) Vaccine, Indicating Protection Over Three RSV Seasons
  • Honeywell (HON) plans to spin-off Advanced Materials business to shareholders
  • Hon Hai Precision (HNHPF) aiming to increase capacity to meet increasing demand for artificial intelligence products, according to Bloomberg
  • Huntington Ingalls (HII) Shipbuilding division successfully launched on Saturday the first LPD Flight II, San Antonio-class amphibious transport dock ship Harrisburg, marking progress towards operational readiness
  • IBEX Ltd. (IBEX) expands its operations in Tegucigalpa, the capital of Honduras, creating 250 new jobs in the region
  • iLearningEngines (AILE) Aims to Serve European Insurtech Market with Enterprise AI Platform and Knowledge Cloud
  • Inspired Entertainment (INSE) inks long-term extension of Virtual Sports partnership with OPAP
  • Johnson & Johnson (JNJ): SunRISe-2 discontinued for not showing superiority versus chemoradiation
  • Jones Lang LaSalle (JLL) assisting PartsSource relocate its headquarters to a 70,000 square-foot office building
  • JPMorgan Chase (JPM) CEO Jamie Dimon in interview says that officials should loosen regulations on companies that want to go public, according to Bloomberg
  • Kosmos Energy (KOS) provides arbitration update
  • Kroger (KR) announces that Boost by Kroger Plus will now include Disney (DIS) streaming options as part of annual memberships
  • Lifeway Foods (LWAY) releases 10 new flavors to its on-the-go 8-ounce line of organic kefir; the entire line is lactose-free
  • LiveRamp (RAMP) reveals first AI connections to its network
  • Lyft (LYFT) and AXS team up to enhance the fan experience for sports and live entertainment across the U.S
  • Malibu Boats (MBUU) discloses Settlement Agreement
  • Match Group (MTCH) announces appointment of Steven Bailey as Chief Financial Officer, effective March 1st, 2025; Gary Swidler to transition out of CFO role and continue as President
  • Merck (MRK) KEYTRUDA met primary endpoint of event-free survival as perioperative treatment regimen in patients with resected, locally advanced head and neck squamous cell carcinoma
  • Merck (MRK): Mestag Therapeutics announces license and research collaboration with MRK to identify novel targets for inflammatory diseases
  • Merck (MRK): Phanes Therapeutics announces first patient dosed in clinical study of PT886 in combination with KEYTRUDA
  • Meta Platforms (META): Advertising Week 2024: Unlock Video Performance with GenAI and Creator Marketing
  • Microsoft (MSFT): OpenAI aiming to shift away from MSFT data centers, according to The Information
  • Microsoft (MSFT): OpenAI partners with Hearst to integrate local news and magazine content into ChatGPT, according to Axios
  • Microsoft (MSFT) announces new OneDrive AI features
  • NASDAQ (NDAQ) reports September volumes
  • Nintendo (NTDOY): Saudi Arabia’s Public Investment Fund lowered NTDOY stake, according to CNBC
  • Nuvation Bio (NUVB) names former Sanofi exec as CFO
  • NVIDIA (NVDA) announces that it is teaming with U.S. technology leaders to help organizations create custom AI applications and transform the world’s industries using the latest NVIDIA NIM Agent Blueprints and NVIDIA NeMo and NVIDIA NIM microservices
  • One Liberty Properties (OLP) provides investor updates in presentation
  • Opthea Ltd. (OPT) appoints Chief Medical Officer and Chief Financial Officer as company prepares for Phase 3 topline data readouts in 2025
  • PagerDuty (PD) announces improvements to PagerDuty Operations Cloud
  • Petrobras (PBR) reports that the Total Utilization Factor of its refineries reached 96.8% in September, representing the highest monthly result in 2024
  • Pfizer (PFE): Former Pfizer executives spoke with directors at the company regarding Starboard breakup plan, according to Financial Times
  • Portillo's (PTLO) provides investor updates in presentation
  • PPG Industries (PPG) signs a strategic agreement with flooring leader Shaw Industries Group, Inc. to offer the PPG FLOORING line of resinous flooring products
  • PROCEPT BioRobotics (PRCT) Received U.S. FDA Approval to Initiate Pivotal Randomized Clinical Study for Prostate Cancer
  • Roblox (RBLX) & WPP (WPP) partner to unlock the potential of immersive media and gaming for global brands
  • Roche Hldg (RHHBY) reveals survey commissioned by Roche shows that HPV infection, which causes 99% of all cervical cancer cases, remains largely misunderstood by the general public
  • Rockwell Medical (RMTI)  files mixed securities shelf offering for an amount up to $100 mln
  • Rogers Comms (RCI) confirms plans to launch Warner Bros. Discovery (WBD) Brands in 2025
  • Royal Gold (RGLD) provides update on Q3 Stream segment sales
  • SAGE Therapeutics (SAGE) announces topline results from the phase 2 lightwave study of dalzanemdor (SAGE-718) in the treatment of mild cognitive impairment and mild dementia in alzheimer’s disease
  • SBC Medical Group (SBC) files for offering of 12,134,375 shares of common stock underlying warrants, 9,350,846 shares of common stock for resale by selling securityholders, 634,375 warrants to purchase common stock for resale by selling securityholders
  • Smartsheet (SMAR) announces partnership with AWS (AMZN) to launch a new connector that synchronizes data from Smartsheet into Amazon Q Business
  • Snap (SNAP) is launching sponsored snaps & promoted places on Snap Map
  • Sphere Entertainment Co. (SPHR) CFO David Byrnes to step down
  • Stardust Power (SDST) secures exclusivity to negotiate licensing arrangement for lithium brine concentration technology from KMX Technologies
  • T-Mobile US (TMUS) introduces 5G On Demand; a complete, portable 5G private network and services solution that includes setup, teardown and network management
  • TechnipFMC (FTI) awarded iEPCI contract for bp’s greenfield 20k development in the Paleogene
  • Teradata (TDC) to Bring World-Class AI Capabilities to Large Enterprises and Hybrid Environments in Collaboration with NVIDIA
  • Teradata (TDC) announces new capabilities for VantageCloud Lake and ClearScape Analytics that make it possible for enterprises to easily implement and see immediate ROI from generative AI use cases
  • Teva (TEVA) Prolia (Denosumab) Biosimilar Candidate is Accepted for Review by U.S. FDA and EU EMA
  • Tutor Perini (TPC) executed contract with Honolulu Authority for Rapid Transportation and received notice to proceed with City Center Guideway and Stations Project
  • Tyler Tech (TYL) signs an agreement with the Arkansas Department of Labor and Licensing for Tyler’s Augmented Field Operations platform
  • Uber (UBER) is announcing an AI Assistant in the driver app – powered by OpenAI’s GPT-4o– to help drivers get answers to EV questions
  • Walmart (WMT) expands pet care offerings with new service locations, online vet access and prescription delivery to offer unparalleled value & convenience
  • West Pharm (WST) CTO Silji Abraham to resign

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

• Upgrades:
  • Affirm (AFRM) upgraded to Buy from Neutral at BTIG Research; tgt $68
  • CEMEX S.A. (CX) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt lowered to $6.50
  • Humana (HUM) upgraded to Outperform from Mkt Perform at Bernstein; tgt $308
  • Sun Country Airlines (SNCY) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $14
  • Ubisoft (UBSFY) upgraded to Neutral from Sell at UBS
  • UWM Holdings (UWMC) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $8
  • Waters (WAT) upgraded to Buy from Hold at Jefferies; tgt raised to $415
  • Wells Fargo (WFC) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $65
• Downgrades:
  • American Express (AXP) downgraded to Sell from Neutral at BTIG Research; tgt $230
  • American Express (AXP) downgraded to Hold from Buy at HSBC Securities; tgt raised to $270
  • Anheuser-Busch InBev (BUD) downgraded to Hold from Buy at TD Cowen; tgt $88
  • CME Group (CME) downgraded to Neutral from Buy at Redburn Atlantic; tgt $244
  • Constellation Brands (STZ) downgraded to Hold from Buy at TD Cowen; tgt lowered to $270
  • Frontier Communications Parent (FYBR) downgraded to Hold from Buy at TD Cowen
  • Microsoft (MSFT) downgraded to Perform from Outperform at Oppenheimer
  • OneMain Holdings (OMF) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $46
  • Otis Worldwide (OTIS) downgraded to Peer Perform from Outperform at Wolfe Research
  • Qualcomm (QCOM) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • Synaptics (SYNA) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
• Others:
  • Abbott Labs (ABT) initiated with an Outperform at Oppenheimer; tgt $130
  • ACRES Commercial Realty (ACR) initiated with a Hold at JonesResearch
  • Arcellx (ACLX) initiated with a Buy at Redburn Atlantic; tgt $109
  • Arcus Biosciences (RCUS) initiated with an Overweight at Wells Fargo; tgt $29
  • Barclays PLC (BCS) initiated with a Buy at Goldman
  • Bicara Therapeutics (BCAX) initiated with a Buy at Stifel; tgt $47
  • Bicara Therapeutics (BCAX) initiated with an Overweight at Morgan Stanley; tgt $35
  • Bicara Therapeutics (BCAX) initiated with a Buy at TD Cowen
  • Cloudflare (NET) initiated with an Underperform at Exane BNP Paribas; tgt $65
  • CrowdStrike (CRWD) initiated with a Neutral at Exane BNP Paribas; tgt $285
  • Curbline Properties (CURB) initiated with a Neutral at Citigroup; tgt $25
  • Datadog (DDOG) initiated with an Outperform at Exane BNP Paribas; tgt $150
  • Dynatrace (DT) initiated with a Neutral at Exane BNP Paribas; tgt $52
  • Envista (NVST) initiated with an Equal Weight at Wells Fargo; tgt $20
  • First National (FXNC) initiated with an Outperform at Hovde Group; tgt $22
  • Genmab (GMAB) initiated with a Buy at Redburn Atlantic
  • Howmet Aerospace (HWM) initiated with a Positive at Susquehanna; tgt $120
  • Legend Biotech (LEGN) initiated with a Buy at Redburn Atlantic; tgt $86
  • MBX Biosciences (MBX) initiated with a Buy at Stifel; tgt $40
  • MBX Biosciences (MBX) initiated with a Buy at Guggenheim; tgt $44
  • MBX Biosciences (MBX) initiated with a Buy at Jefferies; tgt $35
  • MBX Biosciences (MBX) initiated with an Overweight at JP Morgan; tgt $30
  • Morningstar (MORN) initiated with a Buy at UBS; tgt $390
  • Samsara (IOT) initiated with a Neutral at Exane BNP Paribas; tgt $46
  • Solventum Corporation (SOLV) initiated with a Buy at Stifel; tgt $82
  • Veeva Systems (VEEV) initiated with an Outperform at Exane BNP Paribas; tgt $286
  • Zenas Biopharma (ZIBO) initiated with an Overweight at Morgan Stanley; tgt $40
  • Zenas Biopharma (ZBIO) initiated with a Buy at Guggenheim; tgt $45
  • Zenas Biopharma (ZBIO) initiated with a Buy at Citigroup; tgt $27
  • Zenas Biopharma (ZBIO) initiated with a Buy at Jefferies; tgt $35
  • Zscaler (ZS) initiated with a Neutral at Exane BNP Paribas; tgt $180

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior -1.3%)
  • 10:00 ET: August Wholesale Inventories (Briefing.com consensus 0.2%; prior 0.2%)
  • 10:30 ET: Weekly crude oil inventories (prior +3.89 mln)
  • 14:00 ET: September FOMC Minutes
• Treasury Auctions:
  • 13:00 ET: $39 bln 10-yr Treasury note reopening results
• 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