After Hours Report

Today's trade had a positive bias. Advancers led decliners by a 9-to-2 margin at the NYSE and by a 5-to-2 margin at the Nasdaq. The upside moves were driven by an ongoing inclination to buy on weakness following yesterday's afternoon slide. 

Some normal consolidation activity in heavily-weighted names kept a limit on index gains in the early going. By the close, though, many stocks were participating in upside moves, sending the major indices sharply higher. The market ultimately closed at or near session highs, which had the S&P 500 at a fresh all-time high. 

NVIDIA (NVDA 902.50, -23.11, -2.5%), Meta Platforms (META 493.86, -2.03, -0.4%), Microsoft (MSFT 421.43, -0.22, -0.1%), and Broadcom (AVGO 1318.79, -12.70, -1.0%), which are all sitting on large gains since the start of the year, were left out of the broad afternoon rally. 

Meanwhile, the Russell 2000 continued its recent outperformance today, climbing 2.2%. The small cap index benefitted from strength in regional bank stocks, which also boosted the SPDR S&P Regional Banking ETF (KRE) (+3.7%). Other bank stocks outperformed, too, as evidenced by a 3.2% gain in the SPDR S&P Bank ETF (KBE).

Regional banks received some extra attention after Standard & Poor's lowered the outlook on First Commonwealth Bank (FCF 13.80, +0.47, +3.5%), M&T Bank (MTB 144.80, +3.57, +2.5%), Synovus Financial (SNV 39.82, +1.32, +3.4%), Trustmark (TRMK 28.06, +0.81, +3.0%), and Valley National Bancorp (VLY 7.90, +0.29, +3.8%) to Negative from Stable due to ongoing stress in commercial real estate, but that didn't deter buying activity in the space.  

On a related note, the S&P 500 financial sector jumped 1.2%. Eight of the 11 S&P 500 sectors gained more than 1.0% from yesterday's close. The rate-sensitive utilities (+2.8%) and real estate (+2.4%) sectors were the top performers, responding to a drop in yields.

The 10-yr note yield settled four basis points lower at 4.20% and the 2-yr note yield fell three basis points to 4.57%.

• S&P 500:+10.0% YTD
• Nasdaq Composite: +9.3% YTD
• S&P Midcap 400: +9.1% YTD
• Dow Jones Industrial Average: +5.5% YTD
• Russell 2000: +4.3% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index declined 0.7% with purchase applications falling 2% and refinance applications down 0.2% from the prior week
• Weekly EIA Crude Oil Inventories had a build of 3.17 million barrels; prior week showed a draw of 1.95 million barrels 

Thursday's calendar features a slate of economic releases, including:

• 8:30 ET: Q4 GDP -- third estimate (Briefing.com consensus 3.2%; prior 3.2%), Q4 GDP Deflator -- third estimate (Briefing.com consensus 1.7%; prior 1.6%), Weekly Initial Claims (Briefing.com consensus 213,000; prior 210,000), and Continuing Claims (prior 1.807 mln)
• 10:00 ET: Final March University of Michigan Consumer Sentiment (Briefing.com consensus 76.5; prior 76.5) and February Pending Home Sales (Briefing.com consensus 2.1%; prior -4.9%)
• 10:30 ET: Weekly natural gas inventories

Overseas:

• Europe: DAX +0.5%, FTSE +0.0%, CAC +0.3%
• Asia: Nikkei +0.7%, Hang Seng -1.4%, Shanghai -1.3%

Commodities:

• Crude Oil -0.21 @ 81.33
• Nat Gas -0.07 @ 1.72
• Gold +34.60 @ 2212.90
• Silver +0.11 @ 24.75
• Copper little change @ 4.01

After-Hours Spotlight:

• H.B. Fuller (FUL) beats by $0.03, misses on revs; reaffirms FY24 EPS guidance, guides FY24 revs in-line... FUL down 6.8%
• MillerKnoll (MLKN) beats by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus... MLKN down 11.7%
• RH (RH) misses by $0.95, misses on revs; guides FY25 revs above consensus; expects revenue to lag demand during the year... RH up 8.0%
• Sprinklr (CXM) beats by $0.03, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY25 EPS in-line, revs above consensus... CXM up 5.4%

Fair Value for Thursday, March 28:

• S&P 500: 5,304
• Nasdaq 100: 18,501
• DJIA: 40,117

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

• Earnings/Guidance (Full Earnings Calendar):
  • Altimmune (ALT) reports Q4 results; lean mass preservation data for Pemvidutide
  • Carnival (CCL) beats by $0.04, reports revs in-line; sees Q2 EPS in line; raises FY24 EPS guidance
  • Cintas (CTAS) beats by $0.26, reports revs in-line; guides FY24 EPS above consensus, revs above consensus
  • Concentrix (CNXC) misses by $0.01, beats on revs; guides Q2 EPS below consensus, revs below consensus; reaffirms FY24 EPS guidance, revs guidance; committed to $100 mln in repurchases
  • Forge Global Holdings (FRGE) misses by $0.05, misses on revs
  • GameStop (GME) misses by $0.08 (two ests), misses on revs (two ests)
  • Kimberly-Clark (KMB) provides longer-term outlook in investor presentation; reaffirms FY24 guidance
  • Kimco Realty (KIM) reports Q1 transaction activity; achieves 2024 RPT disposition target ahead of schedule
  • nCino (NCNO) beats by $0.09, reports revs in-line; guides Q1 EPS above consensus, revs below consensus; guides FY25 EPS above consensus, revs below consensus
  • NIO (NIO) lowers Q1 delivery outlook
  • Ouster (OUST) reports Q4 (Dec) results, beats on revs; guides midpoint of Q1 revs ahead of consensus
  • PDS Biotechnology (PDSB) reports FY23 results, provides update
  • Progress Software (PRGS) beats by $0.11, beats on revs; guides Q2 EPS and revs below consensus; guides FY24 EPS above consensus, reaffirms FY24 revs guidance
  • TEN Ltd. (TNP) reports record profits for year-end and fourth quarter 2023 results and dividend of $0.60 per common share (halted)
  • UniFirst (UNF) misses by $0.34, beats on revs; guides FY24 EPS below consensus, reaffirms revs
• General News
  • Treasury yields and mortgage rates are increasing despite Fed rate cut expectations, according to the Wall Street Journal
  • FTC could decide to bring a lawsuit or settlement against TikTok in coming weeks, according to Politico
  • Interior Department finalizes rule to reduce oil and gas waste on public and tribal lands
  • Some factories agree to deal to make US made solar panels, according to Reuters
  • India's gold imports to drop 90% month/month in March, according to Reuters
  • 89bio (ETNB) announces that the European Medicines Agency has granted Priority Medicines status to pegozafermin in patients with MASH
  • Accenture (ACN) has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI
  • Aerovate Therapeutics (AVTE) to present patient baseline characteristics of the Phase 2b Portion of the Phase 2b/Phase 3 IMPAHCT Trial at the American Thoracic Society 2024 international conference
  • Aligos Therapeutics (ALGS) Presents Clinical Data at APASL 2024 from ALG-055009 and ALG-000184 Phase 1 Studies
  • Amazon (AMZN): EU court rejected AMZN's request to suspend EU advertising technology rule, according to Reuters
  • Amazon (AMZN) aiming to save $1.3 bln by lowering office vacancies, according to Business Insider
  • Amazon (AMZN) made additional $2.75 bln investment in Anthropic, bringing total investment to $4 bln
  • ANI Pharma (ANIP) announced the launch of Levofloxacin Oral Solution, a generic version of the Reference Listed Drug Levaquin
  • ANSYS (ANSS) announces a new OEM partnership with SynMatrix to streamline RF filter design workflows for wireless communications applications
  • Apple (AAPL) will defend its "walled garden" to regulators, according to the Wall Street Journal
  • argenx (ARGX) Advances Clinical Development of Efgartigimod in Primary Sjogren’s Disease
  • AstraZeneca's (AZN) Truqap plus Faslodex approved in Japan for patients with advanced HR-positive breast cancer
  • AstraZeneca (AZN) and Sanofi's (SNY) Beyfortus approved in Japan for the prevention of RSV disease in infants
  • AstraZeneca (AZN): Data from Brainomix's Collaboration with AstraZeneca Shows its AI-Powered e-Lung Better Identifies Lung Fibrosis Patients at Risk of Decline
  • atai Life Sciences N.V. (ATAI) announces positive initial results from Beckley Psytech’s phase 2a open label study of bpl-003 (intranasal 5-meo-dmt) in treatment resistant depression
  • AVANGRID (AGR) submits multiple proposals for mature, transformative New England wind projects to the Massachusetts-Connecticut-Rhode Island multi-state solicitation for offshore wind power
  • AZZ (AZZ) announces that CFO Philip Schlom will retire on November 4; Jason Crawford has agreed to transition into the role of CFO
  • Beyond, Inc. (BYON) confirms strategic partnership with X to deliver custom short and long form content, develop customer acquisition and retention strategies as well as spotlight the companies' brands on key tent-pole events and holidays
  • BJ Restaurants (BJRI) engages PW Partners to provide cost structure recommendations
  • BJ's Wholesale (BJ) announces the five newest clubs coming to its footprint
  • Burford Capital (BUR) discloses that its CEO and CIO invested $5.1 mln in Ordinary Shares
  • CGI Group (GIB) has been selected by the UK Government's Cabinet Office as a Strategic Delivery Partner for the Cabinet Office Digital; five-year contract is valued at $162 million
  • Chemours (CC): DiCello Levitt LLP announces that purchasers or acquirers of The Chemours Company common stock between February 10, 2023 and February 28, 2024, inclusive, have until May 20, 2024 to seek appointment as lead plaintiff of the Chemours class action lawsuit
  • Cleveland-Cliffs (CLF) is increasing current spot market base prices by $60 per net ton for all carbon hot rolled, cold rolled and coated steel products, effective immediately with all new order
  • Coinbase Global (COIN) follow up to reports a federal judge ruled that the SEC's suit against COIN could move forward
  • Coupang (CPNG) plans to expand next day delivery with $2.22 bln investment, according to Nikkei
  • CRH Plc (CRH) completes second phase of European lime divestment
  • Daimler Truck Holding AG (DTRUY) secures tailor-made credit line
  • Denison Mines (DNN) signed Sustainable Communities Investment Agreement with the municipalities of the Northern Village of Beauval, the Northern Village of Île-à-la Crosse, the Northern Hamlet of Jans Bay, and the Northern Hamlet of Cole Bay
  • DraftKings (DKNG) defended at Needham; firm says proposed ban on college prop bets not material
  • DraftKings (DKNG): Senator Richard Blumenthal (D-CT) sent letters to DKNG and FanDuel (FLUT) asking them to stop targeting gambling addicts, according to WSJ
  • Eli Lilly (LLY): Obesity drug Zepbound on backorder across the U.S. despite FDA noting of adequate supply, according to Bloomberg
  • Enlight Renewable Energy Ltd. (ENLT) closed on the financing of the Pupin wind farm project in Serbia and the Tapolca and AC/DC solar projects in Hungary
  • Fiserv (FI) is realigning its reportable segments to correspond with changes in its business designed to further enhance operational performance in the delivery of its integrated portfolio of products and solutions to its financial institution clients
  • Ford Motor (F) to lower hourly workforce at F-150 Lightning plant in Michigan, according to Detriot Free Press
  • Formula One Group (FWONA) is eyeing acquisition of MotoGP for more than €4 bln, according to FT
  • GameStop (GME) promoted interim CFO Daniel Moore to CFO on March 25
  • GameStop (GME) in 10-K filing: Authorized revisions to Investment Policy to codify the role of Board members overseeing investments
  • General Dynamics (GD) awarded $311 mln U.S. Navy contract
  • GoPro (GPRO) to reduce its global workforce by approximately 4%
  • GrafTech International (EAF) appoints Timothy K. Flanagan as CEO, effective today
  • Holley Inc. (HLLY) paid down an additional $15 mln in principal against its first lien term loan facility
  • HSBC (HSBC) to setup new $1 bln growth fund, according to Reuters
  • Li Auto (LI) announces put right notification for 0.25% convertible senior notes due 2028
  • Lifecore Biomedical (LFCR) Announces Pending Change of Auditor and Provides Expectation for Business Update
  • Longboard Pharmaceuticals (LBPH) entered into a Non-Voting Common Stock Purchase Agreement with an investment fund affiliated with Farallon Capital Management
  • MAG Silver (MAG) Announces Robust Updated Technical Report for Juanicipio
  • Mannkind (MNKD) announces that CFO Steven Binder will retire on April 22, Christopher Prentiss appointed CFO
  • Marinus Pharmaceuticals (MRNS) comments on patent challenge by Ovid Therapeutics Inc. (OVID) and provides update on Marinus’ post grant review
  • MediciNova (MNOV) Receives a Notice of Allowance for a New Patent Covering MN-166 (ibudilast) for the Treatment of Macular Injury in Japan
  • Medtronic (MDT) announces FDA approval of newest-generation Evolut TAVR system for treatment of symptomatic severe aortic stenosis
  • Merck (MRK): FDA approves Winrevair (sotatercept), a treatment for a rare form of high blood pressure
  • MeridianLink (MLNK) announced that more than 50 customers have selected MeridianLink Access or MeridianLink Mortgage Access point-of-sale products since their introduction last year
  • MGM Resorts (MGM): NCAA President C. Baker suggests state officials should ban prop bets on college athletes
  • MiMedx Group (MDXG) provides update on AXIOFILL request for designation from FDA
  • Moderna (MRNA) advances multiple vaccine programs to late-stage clinical trials
  • Moderna (MRNA): Blackstone Life Sciences (BX) announces collaboration to support Moderna’s influenza program
  • Novavax (NVAX) and Fujifilm subsidiaries enter into Confidential Settlement Agreement resolving disputes about amounts that Fujifilm claimed were due under a prior agreement
  • Novo Nordisk A/S (NVO): Jama Research releases study on estimated sustainable cost-based prices for diabetes medicines
  • NovoCure (NVCR) announces the phase 3 METIS clinical trial met its primary endpoint, demonstrating a statistically significant improvement in time to intracranial progression for adult patients treated with Tumor Treating Fields therapy and supportive care compared to supportive care alone in the treatment of patients with 1-10 brain metastases from non-small cell lung cancer following stereotactic radiosurgery
  • Open Text (OTEX) and X12 announce the renewal of their commercial use partner license agreement
  • OrganiGram (OGI) announces pricing of overnight marketed public offering
  • Peloton (PTON): Pelo Buddy says "Peloton has a partnership with TrueMed that could allow customers to use HSA/FSA funds to buy a Peloton Bike, Tread, or Row device
  • Pyxis Oncology (PYXS) has completed the sale of its rights to royalties from the commercialization of Beovu and another asset to Novartis for a one-time cash payment of $8 mln
  • Quad/Graphics (QUAD)announced a first-of-its-kind, dynamic, postal optimization program that outpaces current industry offerings
  • Robinhood Markets (HOOD) introduces new gold card
  • Rocket Pharmaceuticals (RCKT) appoints Aaron Ondrey as CFO and Kinnari Patel as President, Head of R&D and COO
  • SaverOne 2014 Ltd (SVRE) has signed an OEM agreement with IVECO, the brand of Iveco Group N.V. that designs, manufactures and markets light, medium and heavy commercial vehicles
  • Scilex Holding (SCLX) announces that the U.S. Bankruptcy Court has extended the lockup period on shares of Scilex Stock previously distributed by Sorrento to its Stockholders as a dividend
  • Semtech (SMTC) announces the integration of Non-Terrestrial Network support into its HL series LPWA modules, specifically the HL7810 and HL7812
  • Southland (SLND) subsidiary Oscar Renda Contracting has been awarded a $56 million contract to construct a new wastewater treatment plant facility in the Southwest
  • Timken (TKR) announces CEO succession plan
  • UBS AG (UBS) and Apollo (APO) conclude investment management and transition services agreements as final step in carve-out of former Credit Suisse Securitized Products business, Atlas SP
  • Syndax Pharmaceuticals (SNDX) announces FDA priority review of NDA for Revumenib for the treatment of relapsed/refractory KMT2Ar Acute Leukemia
  • Walt Disney (DIS) reaches lawsuit settlement agreement with Florida Governor Ron DeSantis, according to AP
  • Walt Disney (DIS): Egan-Jones recommends Disney shareholders vote “For” Nelson Peltz and Jay Rasulo
  • Western Copper (WRN) announces metallurgical program and associated drill results
  • Zai Lab (ZLAB) partner Novocure (NVCR) announces the phase 3 METIS clinical trial met its primary endpoint, demonstrating a statistically significant improvement in time to intracranial progression for adult patients treated with Tumor Treating Fields therapy and supportive care compared to supportive care alone in the treatment of patients with 1-10 brain metastases from non-small cell lung cancer following stereotactic radiosurgery
  • Zevra Therapeutics (ZVRA) announces top-line data from the Phase 2 Clinical Trial of KP1077 for Idiopathic Hypersomnia

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

• Upgrades:
  • Deutsche Bank (DB) upgraded to Overweight from Equal-Weight at Morgan Stanley
  • GXO Logistics (GXO) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $50
  • Outlook Therapeutics (OTLK) upgraded to Buy from Neutral at BTIG Research; tgt $50
  • SL Green Realty (SLG) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $48
  • Tenet Healthcare (THC) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $122
• Downgrades:
  • BMW Group (BMWYY) downgraded to Hold from Buy at Jefferies
  • C.H. Robinson (CHRW) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt $76
  • Crown (CCK) downgraded to Hold from Buy at Truist; tgt lowered to $88
  • HSBC Holdings (HSBC) downgraded to Equal Weight from Overweight at Barclays
  • FedEx (FDX) downgraded to Underperform from Neutral at Exane BNP Paribas; tgt $250
  • Visa (V) downgraded to Neutral from Buy at Redburn Atlantic; tgt $307
  • Wells Fargo (WFC) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt raised to $62
• Others:
  • CubeSmart (CUBE) initiated with an Equal Weight at Barclays; tgt $48
  • Extra Space Storage (EXR) initiated with an Overweight at Barclays; tgt $157
  • Citigroup opened 30-Day Positive Catalyst Watch on Marvell (MRVL)
  • Spotify (SPOT) initiated with a Buy at HSBC Securities; tgt $310

• Econ Data (Thursday):
  • 8:30 ET: Q4 GDP -- third estimate (Briefing.com consensus 3.2%; prior 3.2%), Q4 GDP Deflator -- third estimate (Briefing.com consensus 1.7%; prior 1.6%), Weekly Initial Claims (Briefing.com consensus 213,000; prior 210,000), and Continuing Claims (prior 1.807 mln)
  • 10:00 ET: Final March University of Michigan Consumer Sentiment (Briefing.com consensus 76.5; prior 76.5) and February Pending Home Sales (Briefing.com consensus 2.1%; prior -4.9%)
  • 10:30 ET: Weekly natural gas inventories