After Hours Report

The stock market had its best moments in the first hour of trading, and then it simply faded away from those best moments over the remainder of the session. The Dow, Nasdaq, and S&P 500 still ended the session higher, supported by mega-cap leadership, but it didn't feel so much like a winning session. To that end, today's market looked more like it was playing not to lose than it was playing to win.

Still, a gain is a gain in the return column, and gains will be taken at face value for anyone wanting to cash out. Larger gains, however, faded amid some stepped-up selling activity in the last 15 minutes of trading.

Participants today didn't have a lot of conviction, which was understandable given a looming Bank of Japan policy decision overnight and the impending release of the Fed's dot plot on Wednesday. The conviction that was shown was biased toward the mega-cap stocks. The Vanguard Mega-Cap Growth ETF (MGK) closed 0.9% higher.

The latter's performance was steered largely by three story stocks: Alphabet (GOOG 148.48, +6.31, +4.4%) gained as much as 7.6% on a Bloomberg report that Apple (AAPL 173.72, +1.10, +0.6%) is in discussions to build the Gemini AI engine into its phones, NVIDIA (NVDA 884.55, +6.18, +0.7%) gained as much as 5.2% in front of the start of its GTC Conference, and Tesla (TSLA 173.88, +10.31, +6.3%) jumped as much as 6.8% after Elon Musk noted in an X post that the Model Y price will rise $1,000 in a few weeks.

They would all finish off their best levels, which weighed on the major indices just as their fast start to higher levels paced the opening gains.

Their performance naturally attracted a lot of attention, but arguably it was the performance of the small-cap stocks that mattered more. They still could not get it in rebound gear despite the Russell 2000 (-0.7%) suffering a 2.1% decline last week.

Banks were a weak link in connection with a sobering downgrade of New York Community Bank (NYCB 3.63, -0.27, -6.9%) to Underperform from Market Perform by Raymond James Financial. The SPDR S&P Regional Banking ETF (KRE) fell 0.7%.

On the flip side, the consumer staples sector (+0.8%) outperformed with the help of PepsiCo (PEP 171.26, +6.60, +4.0%), which was upgraded to Overweight from Equal Weight at Morgan Stanley. The consumer staples sector was the best-performing sector behind the communication services sector (+3.0%).

Most sectors ended the day with modest gains. The two outliers were health care and real estate, which closed with fractional losses.

Treasuries also suffered some losses today. The 2-yr note yield settled the day up one basis point at 4.73% while the 10-yr note yield settled up four basis points at 4.34% with rising oil prices ($82.17, +1.18, +1.5%) pestering inflation expectations.

• S&P 500: +8.0% YTD
• Nasdaq Composite: +7.3%
• S&P Midcap 400: +4.9%
• Dow Jones Industrial Average: +2.9% YTD
• Russell 2000: -0.1% YTD

Reviewing today's economic data:

• The March NAHB Housing Market Index checked in at 51 (Briefing.com consensus 49) versus 48 in February

Looking ahead, Tuesday's economic data includes the February Housing Starts (Brieifng.com Consensus 1.435 million; prior 1.331 million) and Building Permits (Briefing.com Consensus 1.485 million; prior 1.489 million) Report at 8:30 a.m. ET, and the January Net Long-Term TIC Flows (Prior $160.2 billion) at 4:00 p.m. ET.

Overseas:

• Europe: DAX +0.0%, FTSE -0.1%, CAC -0.2%
• Asia: Nikkei +2.5%, Hang Seng +0.1%, Shanghai +1.0%

Commodities:

• Crude Oil +1.18 @ 82.17
• Nat Gas +0.04 @ 1.70
• Gold +3.90 @ 2164.60
• Silver -0.09 @ 25.28
• Copper +0.01 @ 4.13

After-Hours Spotlight:

• Beyond Meat (BYND) files $250 mln mixed shelf securities offering... BYND down 6.5%
• dLocal Limited (DLO) reports Q4 (Dec) results, beats on revs; appoints Mark Ortiz as CFO... DLO down 11.1%
• Dril-Quip (DRQ) and Innovex combining in an all-stock transaction; to be immediately accretive to earnings and FCF... DRQ up 2.9%
• Ford Motor (F) down after federal regulators probe the role of its advanced-driver assistance tech in a recent fatal crash, according to WSJ... F down 0.9%

Fair Value for Tuesday, March 19:

• S&P 500: 5,212
• Nasdaq 100: 18,223
• DJIA: 39,221

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

• Earnings/Guidance (Full Earnings Calendar):
  • Delek US Holdings (DK) in slide presentation sees Q1 total crude throughput of 269-281K bpd
  • Embraer SA (ERJ) reports Q4 (Dec) results, misses on revs; guides FY24 revs in-line
  • Legacy Housing (LEGH) reports 2023 results
  • LiveOne (LVO) provides update for March
  • Manitex Intl (MNTX) sees FY24 revs in line
  • Mission Produce (AVO) provides its long term outlook in presentation slides
  • Niu Technologies (NIU) reports Q4 results
  • Qudian (QD) reports Q4 results; announces up to $300 million share repurchase program
  • Science Applications (SAIC) misses by $0.04, beats on revs; reaffirms FY25 EPS guidance, raises FY25 revs in-line
  • U.S. Steel (X) sees Q1 EPS below consensus; co remaining focused on running its business as it makes progress towards closing its transaction with Nippon Steel Corporation (NPSCY)
• General News
  • Vladimir Putin wins presidential election in Russia
  • Lawmakers are still working on six remaining spending bills ahead of Saturday morning deadline, according to CNN
  • Gangs are in majority control of Haiti as all roads leading out of the capital city are blocked by gang members, according to CNN
  • Israel Prime Minister Benjamin Netanyahu said Senate Majority Leader Chuck Schumer's comments were "totally inappropriate" and he vowed to move ahead with war against Hamas, according to the New York Times
  • Senate Majority Leader Chuck Schumer has still not decided if TikTok ban or forced sale bill will be brought up for a vote, according to the New York Times
  • Donald Trump's economic team presented him with three names for Fed Chair including Kevin Warsh, Kevin Hassett, and Arthur Laffer, according to the Wall Street Journal
  • Donald Trump says he will impose 100% tariff on cars made outside US if he is elected president, according to CNN
  • The Biden administration is expected to introduce stronger emission standards for cars and light trucks this week, according to Bloomberg
  • Supreme Court will hear case this week to consider if federal government unlawfully pressured social media companies to remove coronavirus related posts, according to the Wall Street Journal
  • Most Supreme Court justices appeared convinced that government officials should be allowed to persuade social media companies about content posted online, according to NY Times
  • BOJ likely to end yield curve control and ETF purchases at tomorrow's meeting, according to Nikkei
  • Fed swap contracts predict less than 50% change of June rate cut, according to Bloomberg
  • 2seventy bio (TSVT) and Bristol Myers Squibb’s (BMY) receive FDA Advisory vote in favor of Abecma for Triple-Class exposed multiple myeloma in earlier lines of therapy
  • Akebia Therapeutics (AKBA) CFO Ellen Snow to depart, effective March 22; CEO John Butler to serve as interim principal financial officer
  • Alibaba's (BABA) AliExpress updates its platform to enhance the customer experience in the U.S. market, including faster shipping times, new delivery guarantees, and an updated mobile app for simpler browsing on its catalog
  • Amazon (AMZN) aiming to open beauty store in Italy, according to The Information
  • Amazon (AMZN): MrBeast inks deal with AMZN's MGM Studios for TV competition series
  • Anavex (AVXL) announces that the first patient in its U.S. FDA cleared placebo-controlled Phase 2 clinical study of ANAVEX3-71 for the treatment of schizophrenia has been screened ahead of schedule
  • Apple (AAPL) in discussions to build Google's (GOOG) Gemini AI engine into iPhones, according to Bloomberg
  • Atmus Filtration Technologies (ATMU): Cummins (CMI) announces final results of exchange offer and finalizes separation of Atmus Filtration Technologies; did not retain any outstanding shares of Atmus common stock following completion of the exchange offer
  • ATN International (ATNI) issues correction -- Board of Directors has declared a quarterly dividend of $0.24 per share, payable on April 5, 2024, on all common shares outstanding to stockholders of record as of March 31, 2024
  • Azul S.A.'s (AZUL) TecOps gains EASA approval for maintenance services of European Union-registered aircraft
  • Bitdeer Technologies (BTDR) has completed the deployment and successful testing of its NVIDIA DGX SuperPOD H100 system ahead of schedule, becoming the first cloud service platform in the Asian region to offer NVIDIA DGX SuperPOD H100 service
  • Boeing (BA) 737 Max issues could take up to 12 months to fix, according to CBS News
  • Boeing (BA): Airlines are cutting summer schedules due to Boeing issues, according to Bloomberg
  • Boeing (BA): Boeing 737-800 had a missing panel when it landed in Oregon and FAA will investigate, according to Reuters
  • Bristol-Myers (BMY) does not intend to continue research collaboration with Molecular Templates (MTEM) and will terminate its agreement, effective June 13
  • Bristol-Myers (BMY): FDA panel votes in favor of expanded use of its CAR-T therapy, according to Reuters
  • British American Tobacco (BTI) commences share buy-back program
  • Buenaventura SA (BVN) announces that it has received its final operating permit from the Peruvian Ministry of Energy and Mines to begin production at its Yumpag mine
  • Burford Capital (BUR) announces share repurchase program of £5.0 mln in connection with future obligations under its deferred compensation plan
  • Canoo (GOEV) announced that the U.S. Department of Commerce has approved its Oklahoma City facility as a Foreign Trade Zone
  • CEMEX S.A. (CX) was not aware of the causes that may have initiated the unusual movements presented during March 15, 2024, in the trading volumes of the security identified with ticker symbol 'CEMEX.CPO' and that these movements correspond to market conditions
  • Custom Truck One Source (CTOS) announces its acquisition of the business of SOS Fleet Services, financial terms were not disclosed
  • Diamond Offshore (DO) provided semisubmersible drilling rig Ocean GreatWhite updates
  • DuPont (DD) and Menatek Defense Technologies announce collaboration in the Global Bearing Market with NAZ Bearings
  • EchoStar (SATS) announces contract period of performance extension by the Department of Defense for ORAN-based Private 5G Networks through 2025
  • EHang (EH) begins selling flying taxis on Taobao, according to Reuters 
  • enCore Energy Corp. (EU) announces highest grade drill results to date since drilling activities restarted from the Alta Mesa Project in South Texas
  • ExlService (EXLS) entered into a master confirmation as part of the Company’s previously announced $500 million common stock repurchase program
  • FedEx (FDX) and Amazon (AMZN) discussed partnership but talks did not result in deal, according to the Wall Street Journal
  • Fennec Pharmaceuticals (FENC) and Norgine enter into exclusive licensing agreement to commercialize PEDMARQSI in Europe, Australia, and New Zealand
  • GlaxoSmithKline (GSK) reports RUBY phase III data show potential for Jemperli (dostarlimab-gxly) combinations in more patients with primary advanced or recurrent endometrial cancer
  • Hertz Global (HTZ) CEO Stephen Scherr to step down; Gil West, former COO of Delta Airlines (DAL) and GM's (GM) Cruise unit, will become CEO effective April 1
  • Hess (HES): Exxon Mobil (XOM) CEO Darren Woods says his company is not trying to acquire HES, according to Reuters
  • Hyatt Hotels (H) entered into a purchase and sale agreement with GHHC, L.L.C.
  • Intercontinental Exchange (ICE) announces the addition of two new solutions to its growing suite of intelligent valuation tools for the real estate markets and housing finance industries
  • Johnson & Johnson (JNJ) Janssen unit receives FDA approval for Edurant
  • KalVista Pharmaceuticals (KALV) presents real-world data on burden of treatment and HAE Attack Journey at the 2024 HAEi Regional Conference Americas
  • Labcorp (LH) Presents New Research Demonstrating Clinical Impact of Precision Diagnostics in Guiding Biomarker-targeted Therapies for Patients with Epithelial Ovarian Cancer
  • Logitech Int'l SA (LOGI) CFO to depart company
  • MeridianLink (MLNK) announced that Sean Blitchok will step down as its CFO on April 1, with Larry Katz joining the organization on that day as its new CFO and member of its board of directors
  • Meta (META) under investigation for alleged role in the sale of illicit drugs, according to the Wall Street Journal
  • Natera (NTRA) announces a collaboration with the Fédération Francophone de Cancérologie Digestive and CHU Dijon Bourgogne on the CIRCULATE-PRODIGE-70 study
  • NatWest Group plc (NWG) to propose resolutions at Annual Meeting including authority to purchase own shares
  • Nestle's (NSRGY) treatment of fatty acid oxidation disorders, D-beta-hydroxybutyrate, granted FDA orphan drug status
  • Newegg Commerce (NEGG) CFO Robert Chang to retire on May 17
  • Nokia (NOK) launches first phase of share buyback program
  • PennyMac (PFSI) provides Black Knight (ICE) related litigation updates
  • Petrobras (PBR) continues discussions with Mubadala Capital regarding the formation of a downstream partnership in Brazil
  • Pharvaris N.V. (PHVS) announces phase 3 clinical study design for recently initiated RAPIDe-3 Study, and presents quality-of-life improvement and caregiver behavior data at Two Recent HAE Congresses
  • Reddit: FTC launching inquiry into Reddit's licensing of user data to AI firms, according to Axios
  • Regeneron Pharma (REGN): Appeals court renewed antitrust suit by REGN against Novartis AG (NVS) related to eye disorders, according to Reuters
  • Richardson Elec (RELL) announces a global distribution agreement with Ideal Power (IPWR) for products including the discrete B-TRAN device and SymCool power module
  • Rivian Automotive (RIVN): Rivian vehicles are now compatible with the supercharger network
  • ROSS Acquisition Corp II (ROSS) announces suspension and expected de-listing from the New York Stock Exchange and intention to seek listing on the Nasdaq Stock Market
  • Soho House & Co (SHCO): CC Capital among suitors to acquire SHCO, according to Reuters
  • Sony (SONY) pauses production of its PSVR2 headset, according to Bloomberg
  • Tesla (TSLA) CEO Elon Musk says Model Y price will rise by $1000 in a few weeks
  • TotalEnergies SE (TTE) Partners with major international companies to support e-NG Development
  • TSMC (TSM) considers construction of advanced packaging capacity in Japan, according to Reuters
  • Uber (UBER) will pay $178 mln to settle Australian lawsuit, according to Reuters
  • UnitedHealth (UNH) provides cyberattack status update
  • UPS (UPS): UPS Administrative and Specialist workers ratify contract, join Teamsters National Master Agreement
  • Volkswagen AG (VWAGY) workers in Chattanooga, TN have filed a petition with the National Labor Relations Board for a vote to join the UAW, after a supermajority of Volkswagen workers have signed union cards in just 100 days
  • Vor Biopharma (VOR) receives FDA orphan drug designation for treatment of acute myeloid leukemia
  • Walt Disney (DIS): Glass Lewis recommends that Disney shareholders vote the white proxy card “for” only Disney’s Director nominees
  • Walt Disney (DIS): The Trian Group released a letter to its fellow Disney shareholders
  • WW (WW): Oprah to discuss weight loss medications in special airing tonight, Monday, March 18 at 8 p.m. ET on ABC, according to CNN
  • Xpeng (XPEV) to introduce lower priced electric vehicle, according to Reuters

G(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Futu Holdings (FUTU) upgraded to Outperform from Underperform at CLSA; tgt raised to $65
  • Globus Medical (GMED) upgraded to Buy from Neutral at BTIG Research; tgt $60
  • PepsiCo (PEP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $190
  • Pinnacle West (PNW) upgraded to Buy from Neutral at BofA Securities; tgt raised to $80
  • Regions Fincl (RF) upgraded to Buy from Neutral at Citigroup; tgt raised to $23
  • Ventas (VTR) upgraded to Outperform from In-line at Evercore ISI; tgt $50
• Downgrades:
  • Apartment Income REIT Corp. (AIRC) downgraded to Mkt Perform from Outperform at Raymond James
  • Invitation Homes (INVH) downgraded to In-line from Outperform at Evercore ISI; tgt $36
  • New York Community (NYCB) downgraded to Underperform from Mkt Perform at Raymond James; tgt $3
  • NIKE (NKE) downgraded to Sell from Hold at Williams Trading
  • Prologis (PLD) downgraded to In-line from Outperform at Evercore ISI; tgt $136
  • SL Green Realty (SLG) downgraded to Underperform from In-line at Evercore ISI; tgt $44
  • Terex (TEX) downgraded to Neutral from Overweight at JP Morgan; tgt $63
• Others:
  • Ball Corp (BALL) initiated with an Equal-Weight at Morgan Stanley; tgt $68
  • Howmet Aerospace (HWM) initiated with an Outperform at RBC Capital Mkts; tgt $75
  • Medpace (MEDP) initiated with a Hold at Deutsche Bank; tgt $395
  • Welltower (WELL) initiated with an Outperform at Exane BNP Paribas; tgt $104

• Econ Data (Tuesday):
  • 8:30 ET: February Housing Starts (Briefing.com consensus 1.435 mln; prior 1.331 mln) and Building Permits (Briefing.com consensus 1.485 mln; prior 1.489 mln)
  • 16:00 ET: January Net Long-Term TIC Flows (prior $160.2 bln)
• Treasury Auctions:
  • 13:00 ET: $13 bln 20-yr Treasury bond reopening results