After Hours Report

The stock market closed with losses, extending a broad retreat that started on Friday. The major indices closed above their session lows due to some technical movement after the S&P 500 dipped below its 50-day moving average (5,942), which initially drew in buy-the-dip interest. The key technical level pivoted from support to resistance, however, and the S&P 500 moved laterally below that level through the afternoon.

The S&P 500 was more than 100 points lower at its intraday close and settled about 64 points lower, showing a 1.1% decline. The Nasdaq Composite traded down as much as 1.9% at its low and closed 1.2% below its prior close.

Turnaround action in NVIDIA (NVDA 137.49, +0.48, +0.4%) also helped the major indices move off session lows. NVDA shares had been down as much as 2.2% at their worst levels of the day.

The overall vibe remained negative through the entire session. Decliners had a 2-to-1 lead over advancers at the NYSE and a 3-to-2 lead at the Nasdaq. All 11 S&P 500 sectors logged declines ranging from 0.1% (energy) to 1.6% (consumer discretionary).

The downside bias was related to profit-taking after a strong year and some hesitation in front of the New Year's holiday closures. Several foreign markets are closed tomorrow (or closing early) for the New Year's holiday. U.S. markets are open for a full day of trading on Tuesday, but will be closed Wednesday.

Treasuries settled with gains, benefitting from safe-haven buying and rebalancing activity as stocks succumbed to selling interest. The 10-yr yield settled seven basis points lower at 4.55% and the 2-yr yield settled eight basis points lower at 4.25%.

• Nasdaq Composite: +29.8% YTD
• S&P 500: +23.8% YTD
• Dow Jones Industrial Average: +13.0% YTD
• S&P Midcap 400: +12.1% YTD
• Russell 2000: +9.9% YTD

Reviewing today's economic data:

• December Chicago PMI 36.9 (Briefing.com consensus 42.7); Prior 40.1
• November Pending Home Sales 2.2% (Briefing.com consensus 0.9%); Prior was revised to 1.8% from 2.0%

Looking ahead, Tuesday's economic lineup features: 

• 09:00 ET: October FHFA Housing Price index (prior 0.7%)
• 09:00 ET: October S&P Case-Shiller Home Price index (Briefing.com consensus 4.2%; prior 4.6%)

Overseas:

• Europe: DAX -0.4%, FTSE -0.4%, CAC -0.6%
• Asia: Nikkei -1.0%, Hang Seng -0.2%, Shanghai +0.2%

Commodities:

• Crude Oil +0.54 @ 71.07
• Nat Gas +0.30 @ 3.27
• Gold -35.40 @ 2618.60
• Silver -0.97 @ 29.43
• Copper -0.03 @ 4.10

After-Hours Spotlight:

• CompoSecure (CMPO) to spin off Resolute Holdings Management to form alternative asset management platform; to have limited profitability in FY25... CMPO up 8.6%
• Dave, Inc (DAVE): FTC refers case against DAVE to DOJ, which filed an amended complaint seeking civil penalties for deceiving consumers, charging undisclosed fees... DAVE down 6.4%
• Sangamo Therapeutics (SGMO) to regain full rights to Hemophilia A Gene Therapy Program Following Pfizer’s (PFE) decision to cease development of giroctocogene Fitelparvovec... SGMO down 50.4%
• Verastem Oncology (VSTM) Announces FDA Acceptance and Priority Review of New Drug Application for Avutometinib in Combination with Defactinib for the Treatment of Recurrent KRAS Mutant Low-Grade Serous Ovarian Cancer... VSTM up 19.1%

Fair Value for Tuesday, Dec 31:

• S&P 500: 5,958
• Nasdaq 100: 21,404
• DJIA: 42,890

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

• Earnings/Guidance (Full Earnings Calendar):
  • There is no earnings news of note
• General News
  • Former President Jimmy Carter has passed away at age 100; President Biden declared January 9 as a National Day of Mourning (stock markets will likely be closed that day)
  • Treasury Secretary Janet Yellen says debt ceiling will be reached in mid-January. Analysts expect Treasury will exhaust extraordinary measures in July or August, according to Bloomberg
  • President-elect Trump urged Supreme Court to pause ban on TikTok, which goes into effect January 19. Supreme Court will hear case on January 10, according to NBC News
  • Jeju Air Flight 7C2216 veered off the runway and crashed; 179 people reported dead; plane was a Boeing 737-800
  • South Korea declares a national mourning period for Jeju Air crash until Jan. 4
  • President-elect Trump in interview says he supports H1-B visas for highly skilled immigrant workers, according to New York Post
  • President Biden announces nearly $2.5 billion in security assistance for Ukraine
  • China aiming to lower import tariffs on some recycled copper and aluminum raw materials, according to Reuters
  • PBOC Gov Pan reiterated that he sees more scope for RRR cuts, according to People's Daily
  • Homelessness in US increased 18% in 2024, reaching highest level on record, according to New York Times
  • NYSE announced that it will close all NYSE Group equity and options markets on Thursday, January 9, 2025, in observance of the National Day of Mourning in recognition of the passing of former President Jimmy Carter
  • US Treasury workstations were subject of cyberattack by China, according to AFP News
  • Amcor (AMCR) announced it completed the sale of its 50% interest in Bericap North America for $122 mln on December 27, with the proceeds used to reduce debt
  • Anheuser-Busch InBev (BUD): Russia gives control of BUD joint venture to Vmeste group of companies, according to Bloomberg
  • AT&T (T) & Verizon (VZ) networks were impacted by China supported Salt Typhoon hacking operation. Networks are now clear, according to Bloomberg
  • Avid Bioservices (CDMO) announces expiration of Hart-Scott-Rodino waiting period for pending acquisition by GHO and Ampersand
  • Axsome Therapeutics (AXSM) Announces Completion and Results of Phase 3 Clinical Program of AXS-05 in Alzheimer’s Disease Agitation
  • Bit Digital (BTBT) acquires another metropolitan site for tier-3 data center expansion
  • Boeing (BA): South Korea will inspect all Boeing B737-800 aircraft following crash, according to FT
  • Bristol-Myers (BMY) receives FDA approval for Opdivo Qvantig injection
  • Chimerix (CMRX) submits Dordaviprone NDA for Accelerated Approval to FDA
  • CBAK Energy Technology (CBAT) announces expansion in Nanjing: Equipment Procurement completed and trial production set for May 2025, adding 3GWh of capacity
  • Cboe Global Markets (CBOE) to close its U.S. Markets January 9 in honor of National Day of Mourning for former President Jimmy Carter
  • CME Group (CME) announces trading hours for U.S. National Day of Mourning to honor former President Jimmy Carter
  • Compass Diversified (CODI): Highlander Partners acquires the Ergo Baby Carrier from Compass Diversified, financial terms were not disclosed
  • Compass Diversified (CODI) announces sale of Ergobaby to Highlander Partners; Proceeds from the transaction will be used to pay down debt and for general corporate purposes
  • Cytek Biosciences (CTKB) approves $50 million stock repurchase program for 2025
  • Delcath (DCTH) announces additional $16.3 million in funding from Series E and E1 warrant exercises
  • Ecopetrol (EC) announces that on Sunday, December 29, Ecopetrol successfully concluded negotiations with Repsol (REPYY) to acquire the remaining 45% of its stake in block CPO-09, located in the Meta department
  • Embraer SA (ERJ) announces a firm order for six A-29 Super Tucanos from an undisclosed customer
  • Emeren Group (SOL) signs 7-year PPA for 15 MWp Solar Farm in Poland
  • Flotek Industries (FTK) provides an update regarding flare monitoring regulations issued by the Environmental Protection Agency
  • Foresight Autonomous (FRSX) lands up to $7 million deal with tier-one supplier KONEC to distribute technology and products in South Korea
  • GeoPark (GPRK) announces that Ecopetrol (EC) has exercised its preemptive rights under the terms of the Joint Operating Agreement to acquire 100% of Repsol Colombia O&G Limited (REPYY)
  • Google (GOOG, GOOGL) CEO Sundar Pichai says new artificial intelligence features are coming next year, according to CNBC
  • Gray Television (GTN) enters into agreements with The Walt Disney Company (DIS) that extend and renew the network affiliations for all of Gray’s ABC affiliated television stations across 25 markets through December 31, 2028
  • Hain Celestial (HAIN) will be required to face allegations it mislabeled baby food products, according to Bloomberg
  • Halozyme Therapeutics (HALO) announces FDA approval of Bristol Myers Squibb's (BMY) Opdivo Qvantig with Enhanze for subcutaneous use in most previously approved adult solid tumor Opdivo indications
  • Halozyme Therapeutics (HALO) announces Argenx's (ARGX) VYDURA with ENHANZE was granted regulatory approval in Japan for chronic inflammatory demyelinating polyneuropathy
  • Halozyme Therapeutics (HALO) announces Takeda (TAK) received regulatory approval for HYQVIA 10% subcutaneous injection set with ENHANZE in Japan for patients with agammaglobulinemia or hypogammaglobulinemia
  • Hesai Group (HSAI) announces that the co has delivered more than 100,000 lidar units during the month of December
  • Inogen (INGN) receives U.S FDA 501(k) clearance for the SIMEOX 200 Airway Clearance Device, expanding the company’s ability to market and meet the various needs of patients with chronic respiratory diseases in the U.S.
  • IonQ (IONQ) announces a technological breakthrough that demonstrates a new approach to scalable quantum computing, resulting from a collaboration with Oak Ridge National Laboratory
  • LiveOne (LVO) has reached a milestone of 450,000+ Tesla (TSLA) users
  • Maxeon Solar (MAXN) and Tongwei Solar have entered into a Settlement and Cross-Licensing Agreement, effective as of November 30, 2024, regarding shingled solar cell and module technology and the party's related patent disputes
  • MicroStrategy (MSTR) provides ATM and Bitcoin holdings update
  • NextEra Energy's (NEE) Florida Power & Light Company notified the Florida Public Service Commission regarding its intent to initiate a base rate proceeding in early 2025
  • Northwest Natural (NWN) subsidiary filed a request for a general rate increase with the Oregon Public Utility Commission
  • Novartis AG (NVS) reports intrathecal onasemnogene abeparvovec Phase III study meets primary endpoint
  • Nvidia (NVDA) wants to enter robotics industry to drive growth, according to FT
  • NVIDIA (NVDA) completed acquisition of RunAi
  • NVIDIA (NVDA): ByteDance aiming to spend $7 bln on NVDA chips in 2025, according to The Informatio
  • Ondas Holdings (ONDS) note holder purchases $18.9 mln more in convertible notes as company enters 2025 with significant momentum supported by robust cash position
  • Ormat Tech (ORA) commences commercial operation of Montague energy storage facility, delivering 20MW/20MWh of energy storage capacity to the PJM Market
  • Power Solutions International (PSIX) uplisted its common stock to the Nasdaq Stock Market and began trading on that market; will continue to trade under the symbol PSIX
  • Radiance Medical (RADX) announces strategic co-development partnership with Lantheus for Australia
  • Rezolve AI Limited (RZLV) converts $59 million in variable rate convertible loans before year-end, strengthening financial position for 2025
  • SEALSQ (LAES) and WISeSat unite to build next-generation secure satellite constellation with Satellite-as-a-Service Model
  • SEALSQ Corp (LAES) expects to end the year with a strong balance sheet and cash position in excess of $85 mln by January 3, 2025
  • Take-Two (TTWO): Grand Theft Auto VI is expected to generate $3 billion for Take Two next year, according to FT
  • Tesla (TSLA) CEO Elon Musk ruled out Scotland Gigafactory, according to The National
  • Trump Media & Technology Group (DJT): President-elect Donald J. Trump transfers 114,750,000 shares of Common Stock to Trust
  • U.S. Antimony (UAMY) announces second contract for international supply of antimony
  • Vera Bradley (VRA): Fund 1 Sends Letter to Vera Bradley’s Board of Directors Highlighting the Opportunity for Value-Enhancing Strategic Alternatives
  • Xylo Technologies (XYLO) shareholder L.I.A Pure Capital filed a request to convene a special meeting to deliberate/discuss Pure Capital’s acquisition of the remaining 95.24% shares
  • Zebra Tech (ZBRA) announced it intends to acquire Photoneo

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

• Upgrades:
  • American Airlines (AAL) upgraded to Outperform from Mkt Perform at Raymond James; tgt $24
• Downgrades:
  • Nordstrom (JWN) downgraded to Sell from Buy at Argus
• Others:
  • Arcutis Biotherapeutics (ARQT) initiated with a Buy at H.C. Wainwright; tgt $19
  • Artiva Biotherapeutics (ARTV) initiated with a Buy at H.C. Wainwright; tgt $20
  • Emergent BioSolutions (EBS) initiated with a Buy at H.C. Wainwright; tgt $15
  • NewAmsterdam Pharma (NAMS) initiated with a Buy at H.C. Wainwright; tgt $48
  • Nuvalent (NUVL) initiated with a Buy at H.C. Wainwright; tgt $110
  • Rocket Pharmaceuticals (RCKT) initiated with an Outperform at Wedbush; tgt $32
  • SunCar Technology Group (SDA) initiated with a Buy at BTIG Research; tgt $12

• Econ Data (Tuesday):
  • 09:00 ET: October FHFA Housing Price index (prior 0.7%)
  • 09:00 ET: October S&P Case-Shiller Home Price index (Briefing.com consensus 4.2%; prior 4.6%)
• Earnings:
  • Monday (Dec 30)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Dec 31)
    • Pre-Market: None
    • After-Hours: None
  • Wednesday (Jan 1)
    • Pre-Market: None
      
    • After-Hours: None
  • Thursday (Jan 2)
    • Pre-Market: None
    • After-Hours: RGP
  • Friday (Jan 3)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike