After Hours Report

The stock market was mixed at the index level today, though broader market sentiment was negative throughout the session. At the close, decliners outpaced advancers by a 2-to-1 ratio at the NYSE and a 3-to-2 margin at the Nasdaq.

The underlying negative bias stemmed largely from President-elect Trump's announcement that he plans to impose tariffs—an additional 10% on imports from China and 25% on goods from Mexico and Canada—on his first day in office, contingent upon halting migrant flows and the trafficking of fentanyl into the U.S.

Concerns over inflationary pressures were piqued by these comments, initially sending Treasury yields higher and adding pressure on equities. The 10-yr yield reached 4.32% earlier and the 2-yr yield was at 4.29% despite the sharp 17.3% month-over-month decline in new home sales for October and a notable drop in the November Consumer Confidence Report, which showed a 12-month inflation expectations reading of 4.9%—the lowest since March 2020 (though still elevated, it signals a trend in the right direction).

The bond market shook off its early fears, though, and yields settled below intraday highs. The 10-yr yield settled four basis points higher than yesterday at 4.30% and the 2-yr yield settled two basis points lower at 4.25%. The Treasury market was also reacting to the FOMC Minutes from the November 6-7 meeting, which didn't contain anything surprising, and a $70 billion 5-yr note offering that met solid demand.

Despite the negative skew in market breadth, the equity market also seemed to brush off some its early concerns. The S&P 500 (+0.6%), Nasdaq Composite (+0.6%), and Dow Jones Industrial Average (+0.3%) closed near their best levels of the day. The DJIA and S&P 500 also logged fresh record intraday highs. 

The Russell 2000 (-0.7%) and S&P Mid Cap 400 (-0.4%) closed lower, largely driven by profit-taking activity. The former is still 10.4% higher this month and the latter sits on a 9.0% gain.

On an individual basis, Dow component Amgen (AMGN 280.01, -13.99, -4.8%) garnered some negative attention after disappointing news from its Phase 2 trial update for the weight-loss drug MariTide.

Other story stocks included retailers that reported earnings like Best Buy (BBY 88.48, -4.55, -4.9%), Kohl's (KSS 15.22, -3.12, -17.0%), Abercrombie & Fitch (ANF 146.62, -7.88, -5.1%), and Dick's Sporting Goods (DKS 212.22, -3.01, -1.4%).

• Nasdaq Composite: +27.7%
• S&P 500: +26.4%
• S&P Midcap 400: +21.4%
• Russell 2000: +19.6%
• Dow Jones Industrial Average: +19.0%

Reviewing today's economic data:

• September FHFA Housing Price Index 0.7%; Prior was revised to 0.4% from 0.3%
• September S&P Case-Shiller Home Price Index 4.6% (Briefing.com consensus 4.7%); Prior 5.2%
• November Consumer Confidence 111.7 (Briefing.com consensus 113.0); Prior was revised to 109.6 from 108.7
  • The key takeaway from the report is that consumers' view of the present situation picked up nicely, particularly as it relates to the labor market. That is noteworthy because, if consumers feel good about job security and/or their ability to find a new job, they are apt to keep spending freely on discretionary goods/services.
• October New Home Sales 610K (Briefing.com consensus 718K); Prior 738K
  • The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, dropped sharply in October as mortgage rates rose sharply in the wake of the Fed's first rate cut in September. The effects of the hurricanes were also likely to blame for the extra weakness seen in the South, which is the nation's biggest region for new home sales.

Looking ahead, Wednesday's calendar features a big batch of economic data due to the market holiday this week. The lineup features: 

• 7:00 ET: Weekly MBA Mortgage Index (prior 1.7%)
• 8:30 ET: October Personal Income (Briefing.com consensus 0.3%; prior 0.3%), Personal Spending (Briefing.com consensus 0.2%; prior 0.5%), PCE Prices (Briefing.com consensus 0.2%; prior 0.2%), Core PCE Prices (Briefing.com consensus 0.3%; prior 0.3%), Q3 GDP -- second estimate (Briefing.com consensus 2.8%; prior 2.8%), Q3 GDP Deflator -- second estimate (Briefing.com consensus 1.8%; prior 1.8%), October Durable Orders (Briefing.com consensus 0.4%; prior -0.8%), Durable Orders ex-transportation (Briefing.com consensus 0.3%; prior 0.4%), October advance goods trade balance (prior -$108.2 bln), advance Retail Inventories (prior 0.8%), Advance Wholesale Inventories (prior -0.1%), weekly Initial Claims (Briefing.com consensus 217,000; prior 213,000), and Continuing Claims (prior 1.908 mln)
• 10:00 ET: October Pending Home Sales (Briefing.com consensus -1.5%; prior 7.4%)
• 10:30 ET: Weekly crude oil inventories (prior +0.545 mln)
• 12:00 ET: Weekly natural gas inventories (prior -3 bcf)

Overseas:

• Europe: DAX -0.5%, FTSE -0.4%, CAC -0.9%
• Asia: Nikkei -0.8%, Hang Seng +0.0% Shanghai -0.1%

Commodities:

• Crude Oil -0.05 @ 68.88
• Nat Gas +0.03 @ 3.46
• Gold +2.30 @ 2621.40
• Silver +0.11 @ 30.38
• Copper -0.04 @ 4.12

After-Hours Spotlight:

• Ambarella (AMBA) beats by $0.08, beats on revs; guides Q4 revs above consensus... AMBA up 21.3%
• Autodesk (ADSK) beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs above consensus... ADSK down 8.8%
• Dell (DELL) beats by $0.09, misses on revs; projects Q4 earnings and revs below consensus; provides FY26 commentary... DELL down 9.8%
• Guess? (GES) misses by $0.03, misses on revs; guides Q4 EPS below consensus, revs below consensus... GES down 8.9%
• HP Inc. (HPQ) reports EPS in-line, revs in-line; guides JanQ EPS below consensus; guides FY25 EPS in-line; increases dividend by 5%... HPQ down 7.6%
• Nordstrom (JWN) beats by $0.11, reports revs in-line; guides FY25 EPS in-line... JWN down 0.5%
• Urban Outfitters (URBN) beats by $0.24, beats on revs, comparable Retail sales up +1.5%; expects holiday comps to resemble Q3... URBN up 4.6%
• Workday (WDAY) beats by $0.13, beats on revs... WDAY down 11.0%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Abercrombie & Fitch (ANF) beats by $0.11, beats on revs; guides Q4 revs in-line; promotes Robert Ball to become CFO
  • Agilent (A) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs in-line
  • American Woodmark (AMWD) misses by $0.29, misses on revs; guides FY25 revs in-line; Board approved an additional $125 million authorization for future share repurchases
  • Analog Devices (ADI) beats by $0.03, beats on revs; guides Q1 EPS in-line, revs in-line
  • Best Buy (BBY) misses by $0.04, misses on revs; guides FY25 EPS below consensus, revs below consensus
  • Blue Bird (BLBD) beats by $0.12, beats on revs; guides FY25 revs in-line
  • Burlington Stores (BURL) reports EPS in-line, revs in-line; guides Q4 EPS below consensus, revs above consensus
  • Central Garden (CENT) beats by $0.04, misses on revs; guides FY25 EPS below consensus
  • Dana Inc (DAN) reaffirms FY24 guidance
  • Dick's Sporting Goods (DKS) beats by $0.07, reports revs in-line; guides FY25 EPS in-line, revs above consensus
  • Embecta Corp. (EMBC) beats by $0.15, beats on revs
  • Enanta Pharmaceuticals (ENTA) misses by $0.20, misses on revs
  • Fluence (FLNC) beats by $0.06, misses on revs; guides FY25 revs in-line
  • Kohl's (KSS) misses by $0.08, beats on revs; guides FY25 EPS below consensus, revs below consensus
  • J.M. Smucker (SJM) beats by $0.25, reports revs in-line; guides FY25 EPS in-line, reaffirms FY25 revs guidance
  • Leslie's (LESL) misses by $0.09, misses on revs; guides Q1 EPS below consensus, revs below consensus
  • Manchester United (MANU) reports Q1 results; reaffirms guidance
  • NJ Resources (NJR) beats by $0.01, misses on revs; guides FY25 EPS above consensus
  • Semtech (SMTC) beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs above consensus
  • Titan Machinery (TITN) beats by $0.04, reports revs in-line; guides FY25 EPS in-line
  • Woodward (WWD) beats by $0.15, beats on revs; guides FY25 EPS in-line, revs in-line
  • Zoom Video (ZM) beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus; increases stock repurchase authorization to $2 bln
• General News
  • President-elect Trump said on Truth Social that on January 20th, he will sign paperwork necessary to impose 25% tariff on Canada/Mexico and 10% additional tariff on China (current tariffs on China are 25%) until flow of migrants and fentanyl stop flowing into the country
  • Israel Prime Minister Benjamin Netanyahu open to ceasefire with Hezbollah ahead of cabinet meeting today, according to New York Times
  • White House takes latest step to lower prescription drug costs by proposing expanded coverage of anti-obesity medications for Americans with Medicare and Medicaid
  • Minneapolis Fed President Neel Kashkari (not a voting FOMC member) says it's reasonable to consider a December rate cut, according to Bloomberg
  • President Biden makes remarks from the Rose Garden on the Middle East; confirms Israeli and Lebanese governments have accepted proposal to end conflict between Israel and Hezbollah
  • European Union proposing to sanction Chinese firms helping Russian companies develop attack drones deployed against Ukraine, according to Bloomberg
  • Mexican President Claudia Sheinbaum Pardo sends letter to President-elect Trump; says the country has always shown willingness to work with the administration on the fentanyl epidemic and that migrant caravans are no longer arriving at the border - CNBC
  • EMSC reporting a 6.2 magnitude quake 41km NNW of Kanazawa, Japan
  • Canadian Prime Minister Justin Trudeau and President-elect Trump had a "good conversation" last night regarding tariffs and migration, according to BBC
  • President Biden makes remarks from the Rose Garden on the Middle East; confirms Israeli and Lebanese governments have accepted proposal to end conflict between Israel and Hezbollah
  • President Biden is expected to announce an Israel-Hezbollah ceasefire deal today, according to CBS News
  • Ceasefire brokered by U.S. and France poised to end yearlong Israel-Hezbollah War in Lebanon, according to CBS
  • Mexico says it will have to retaliate with its own tariffs if President-elect Trump imposes tariffs on Mexico, according to Washington Post
  • Israel's cabinet approved ceasefire agreement with Lebanon, according to Reuters
  • Databricks nearing funding at $55 billion valuation, according to CNBC
  • President-elect Trump expected to name Kevin Hassett as leader of the National Economic Council, according to Bloomberg
  • Abacus Life (ABL) targets close of the acquisition of Carlisle Management Company S.C.A. for December 2, 2024 with receipt of regulatory non-objection
  • Alcoa (AA): Steel and aluminum prices will likely rise due to increased tariffs, according to WSJ
  • Alector (ALEC) Announces Results from AL002 INVOKE-2 Phase 2 Trial in Individuals with Early Alzheimer’s Disease and Provides Business Update
  • Amazon (AMZN) drivers at the company's DGT8 facility in Atlanta have formed a union with the Teamsters and demanded union recognition with a "March on the Boss" held early this morning
  • Amgen (AMGN) says MariTide demonstrated up to ~20% average weight loss at week 52 without a weight loss plateau, indicating the potential for further weight loss beyond 52 weeks
  • Apollo Global Management (APO) in discussions to help finance takeover of the The Daily Telegraph, according to Sky News
  • Apple (AAPL): China officials warn of long process for Apple artificial intelligence feature approval, according to FT
  • Arrowhead (ARWR) announces a global licensing and collaboration agreement with Sarepta Therapeutics (SRPT)
  • Arthur J. Gallagher (AJG) acquires Shepard Insurance Group; financial terms were not disclosed
  • ASP Isotopes (ASPI) has completed the construction of a Silicon-28 enrichment facility in Pretoria, South Africa
  • ASP Isotopes Inc. (ASPI) responds to short seller report
  • Astronics (ATRO) announces pricing of $150 million convertible senior notes offering
  • Axsome Therapeutics (AXSM) announces AXS-12 achieves primary endpoint in encore long-term phase 3 trial in narcolepsy
  • Barrick (GOLD) had four employees detained in Mali, according to Reuters
  • Barrick (GOLD) confirms that four employees of its Loulo-Gounkoto mining complex had been charged and detained pending trial
  • CenterPoint (CNP) filed a settlement agreement with the Minnesota Public Utilities Commission reached with intervenors on its 2023 rate case
  • ChampionX (CHX): UK CMA is investigating the anticipated acquisition by Schlumberger (SLB) of ChampionX Corporation
  • Cipher Mining (CIFR) has closed a transaction to acquire a new site in West Texas called Stingray for a cash payment of $4.1 mln and a variable fee of $1.5/MWh for the initial five years after the energization of the site
  • Dana Inc (DAN) announces appointment of R. Bruce McDonald as CEO, plans to sell off its highway business, and new cost reduction actions
  • Discover Financial Services (DFS) Receives NYSE Notice Regarding Filing of Form 10-Q for the Fiscal Quarter Ended September 30, 2024 and Announces Decision to Restate Certain Prior Period Financial Statements
  • Esperion Therapeutics (ESPR) announces that Otsuka Pharmaceutical Co., Ltd. (OTSKY) has submitted a New Drug Application to the Japanese Ministry of Health, Labour and Welfare for the manufacture and sale of bempedoic acid in Japan for the treatment of hypercholesterolemia and familial hypercholesterolemia
  • Evolv Technologies Holdings (EVLV): FTC takes action against Evolv Technologies for "deceiving users about its AI-powered security screening systems"
  • GE Vernova (GEV) secures contract from Powerlink, supplying equipment in Australia
  • Grupo Financiero Galicia (GGAL) files mixed securities shelf offering for an undisclosed amount
  • Guardant Health (GH): Federal Court Jury Issues Unanimous Verdict that Natera Engaged in False Advertising and Unfair Competition in Deliberate Attempt to Damage Guardant Health's Colorectal Cancer Test, Guardant Reveal
  • Intel (INTC) and Biden-Harris Administration Finalize $7.86 Billion Funding Award Under US CHIPS Act
  • Kohl's (KSS) CEO Tom Kingsbury to step down, effective January 15; Ashley Buchanan appointed as successor
  • Maxeon Solar (MAXN) announces restructuring of business portfolio: co to Focus Exclusively on U.S. Market, executes term sheets with TCL Group to address rest-of-world markets
  • Meta (META) could face April trial regarding Instagram and WhatsApp acquisitions, according to Reuters
  • Middleby (MIDD) announces the acquisition of Gorreri Food Processing Technology based outside Parma, Italy
  • Nano Dimension (NNDM) reiterates calls for shareholders to vote “FOR” all of Nano’s proposals
  • Nano Dimension (NNDM): All three independent proxy advisory firms support Murchinson’s case for further board change at Nano Dimension
  • NANO Nuclear Energy (NNE) and Everstar announce the successful three-month pilot project aimed at addressing regulatory challenges in the nuclear sector focused on implementing Everstar’s AI solutions across a broader range of NANO Nuclear's regulatory and licensing workflows
  • NIP Group Inc. (NIPG) and The9 Limited announce that NIP Group has entered into a strategic partnership with China Crown Technology Limited to develop “MIR M” into a competitive esports title
  • Qualcomm (QCOM) becoming less interested in Intel (INTC) acquisition, according to Bloomberg
  • Rivian Automotive (RIVN) receives conditional commitment for up to $6.6 billion loan from the DOE's ATVM program
  • Rumble (RUM) announces Bitcoin treasury strategy: will include purchases, at the discretion of the company, of up to $20 million
  • Scotts Miracle-Gro (SMG) announces expanded responsibilities for two executive team members along with a transition plan for the chief financial officer
  • Soleno Therapeutics (SLNO) announces that the U.S. FDA has extended the review period for the New Drug Application for DCCR extended-release tablets for the treatment of Prader-Willi syndrome in individuals four years and older who have hyperphagia
  • Spire Missouri (SR) files rate case to recover infrastructure and technology investments
  • Starbucks (SBUX) corporate staff face bonus cuts as sales slump and operating income drops, according to Bloomberg
  • Stellantis (STLA) announces proposed plan to invest GBP 50 mln to strengthen the Ellesmere Port plant as its UK commercial vehicle manufacturing hub
  • Tesla (TSLA) will likely be excluded from California's electric vehicle credit program, according to Reuters
  • TOYO Co. (TOYO) secures $150 million contract to supply solar cells to a leading solar module manufacturer
  • Uber (UBER) aiming to expand into artificial intelligence data labeling, according to Bloomberg
  • UroGen Pharma (URGN): New data from a long-term follow-up study to the Olympus trial show median duration of response of four years in patients who achieved a complete response with jELMYTO
  • Valneva SE (VALN) submits FDA application to extend IXCHIQ chikungunya vaccine use to adolescents and add long-term antibody persistence data to label
  • Vishay Intertechnology (VSH) automotive grade surface-mount thick film power resistor offers multi-pulse capabilities in TO-263 (D2PAK) package
  • Wells Fargo (WFC) asset cap likely will be lifted in 2025, according to Reuters
  • Zimmer Biomet (ZBH) receives FDA approval for Oxford Cementless Partial Knee, only cementless partial knee replacement implant in the U.S.

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

• Upgrades:
  • Applied Industrial (AIT) upgraded to Buy from Neutral at BofA Securities; tgt raised to $315
  • Banco Santander (SAN) upgraded to Overweight from Equal-Weight at Morgan Stanley
  • Capri Holdings (CPRI) upgraded to Buy from Neutral at Guggenheim; tgt $30
  • Charter Comm (CHTR) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $360
  • Chevron (CVX) upgraded to Buy from Neutral at Citigroup; tgt raised to $185 and added to 90-day positive catalyst watch
  • Eastman Chemical (EMN) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $125
  • First Interstate Bancsystem (FIBK) upgraded to Buy from Neutral at DA Davidson; tgt raised to $42
  • Hanesbrands (HBI) upgraded to Buy from Neutral at UBS; tgt raised to $11
  • NRG Energy (NRG) upgraded to Buy from Hold at Jefferies; tgt raised to $113
  • Old National Bancorp (ONB) upgraded to Strong Buy from Mkt Perform at Raymond James; tgt $28
  • Science Applications (SAIC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt lowered to $147
  • Zoom Video (ZM) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $115
• Downgrades:
  • American Airlines (AAL) downgraded/resumed to Neutral from Buy at UBS; tgt $16
  • Brunswick (BC) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $88
  • Cassava Sciences (SAVA) downgraded to Neutral from Buy at H.C. Wainwright
  • Everest Group (EG) downgraded to Hold from Buy at Jefferies; tgt raised to $429
  • GMS (GMS) downgraded to Neutral from Buy at DA Davidson; tgt $97
  • Goldman Sachs (GS) downgraded to Hold from Buy at HSBC Securities; tgt raised to $608
  • Hubbell (HUBB) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $473
  • Ingram Micro Holding Corp. (INGM) initiated with a Hold at Melius; tgt $26
  • ING Groep (ING) downgraded to Equal-Weight from Overweight at Morgan Stanley
  • Morgan Stanley (MS) downgraded to Hold from Buy at HSBC Securities
  • Target (TGT) downgraded to Neutral from Outperform at Daiwa Securities; tgt lowered to $130
• Others:
  • Alaska Air (ALK) resumed with a Buy at UBS; tgt $72
  • Allegiant Travel (ALGT) resumed with a Neutral at UBS; tgt $16
  • Aurora Innovation (AUR) initiated with a Peer Perform at Wolfe Research
  • Avidity Biosciences (RNA) initiated with an Outperform at RBC Capital Mkts; tgt $67
  • Bright Minds Biosciences (DRUG) initiated with an Outperform at Robert W. Baird; tgt $75
  • CARGO Therapeutics (CRGX) initiated with an Outperform at William Blair
  • Carnival (CCL) initiated with a Mkt Perform at Bernstein; tgt $26
  • Delta Air Lines (DAL) resumed with a Buy at UBS; tgt $88
  • Dyne Therapeutics (DYN) initiated with an Outperform at RBC Capital Mkts; tgt $45
  • Frontier Group Holdings (ULCC) resumed with a Neutral at UBS; tgt $6
  • JetBlue Airways (JBLU) resumed with a Sell at UBS; tgt $5
  • Kornit Digital (KRNT) initiated with an Overweight at Cantor Fitzgerald; tgt $39
  • Pentair (PNR) initiated with an Outperform at Wolfe Research; tgt $125
  • Pinterest (PINS) initiated with a Buy at TD Cowen; tgt $38
  • Rambus (RMBS) initiated with an Outperform at Robert W. Baird; tgt $90
  • Redwire Corporation (RDW) initiated with a Buy at H.C. Wainwright; tgt $18
  • Royal Caribbean (RCL) initiated with an Outperform at Bernstein; tgt $290
  • Sonoco Products (SON) initiated with a Buy at Truist; tgt $63
  • Southwest Air (LUV) resumed with a Sell at UBS; tgt $27
  • Thomson Reuters (TRI) initiated with an Equal Weight at Wells Fargo; tgt $165
  • United Airlines (UAL) resumed with a Buy at UBS; tgt $139

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 1.7%)
  • 8:30 ET: October Personal Income (Briefing.com consensus 0.3%; prior 0.3%), Personal Spending (Briefing.com consensus 0.2%; prior 0.5%), PCE Prices (Briefing.com consensus 0.2%; prior 0.2%), Core PCE Prices (Briefing.com consensus 0.3%; prior 0.3%), Q3 GDP -- second estimate (Briefing.com consensus 2.8%; prior 2.8%), Q3 GDP Deflator -- second estimate (Briefing.com consensus 1.8%; prior 1.8%), October Durable Orders (Briefing.com consensus 0.4%; prior -0.8%), Durable Orders ex-transportation (Briefing.com consensus 0.3%; prior 0.4%), October advance goods trade balance (prior -$108.2 bln), advance Retail Inventories (prior 0.8%), Advance Wholesale Inventories (prior -0.1%), weekly Initial Claims (Briefing.com consensus 217,000; prior 213,000), and Continuing Claims (prior 1.908 mln)
  • 10:00 ET: October Pending Home Sales (Briefing.com consensus -1.5%; prior 7.4%)
  • 10:30 ET: Weekly crude oil inventories (prior +0.545 mln)
  • 12:00 ET: Weekly natural gas inventories (prior -3 bcf)
• Treasury Auctions:
  • 13:00 ET: $44 bln 7-yr Treasury note auction results
• Earnings:
  • Monday (Nov 25)
    • Pre-Market: BBWI DSX
    • After-Hours: A CENT ENTA FLNC LESL NJR SMTC WWD ZM
  • Tuesday (Nov 26)
    • Pre-Market: ANF AMWD ADI BBY BURL DKS EMBC SJM KSS M TITN
    • After-Hours: AMBA ARWR ADSK CRWD DELL GES HPQ NTXN URBN WDAY
  • Wednesday (Nov 27)
    • Pre-Market: FRO
    • After-Hours: None
  • Thursday (Nov 28)
    • Pre-Market: None
    • After-Hours: None
  • Friday (Nov 29)
    • Pre-Market:
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike