After Hours Report

Updated: 28-Mar-24 17:00 ET
Torrid surges after JanQ earnings and revenue beats, relatively upbeat FY24 sales outlook

Today's trade was mixed. The S&P 500 and Dow Jones Industrial Average each logged a 0.1% gain while the Nasdaq Composite closed 0.1% lower. The Russell 2000 continued its recent outperformance, gaining 0.5%. The major indices all made a sharp turn higher around 3:00 ET with no specific news to account for the move, but ultimately drifted off those levels by the close.

Participation was light in front of the extended holiday weekend, contributing the muted index-level moves. Markets will be closed tomorrow for Good Friday, which makes today the final trading day of the quarter.

Losses in some heavily-weighted names also limited movement at the index level. The Vanguard Mega Cap Growth ETF (MGK) closed with a 0.3% decline. Meta Platforms (META 485.58, -8.28, -1.7%) and Microsoft (MSFT 420.72, -0.71, -0.2%) were among the influential laggards after registering big gains so far this year. META is up 37.2% in the first quarter and MSFT is up 11.9% since the start of the year. 

Still, outsized move in either direction were generally reserved for stocks with specific news items driving the moves. Estee Lauder (EL 154.15, +9.11, +6.3%) was a standout, leading the S&P 500 components after an upgrade to Buy from Neutral at BofA Securities.

Dow component Home Depot (HD 383.60, -2.29, -0.6%) didn't log an outsized move today, but there was some news surrounding the stock after announcing an $18.25 billion acquisition of SRS Distribution. 

The S&P 500 energy sector registered a 1.0% gain while the remaining ten sectors moved less than 0.8% in either direction.

The 2-yr note yield settled five basis points higher today, and two basis points higher this week, at 4.62%. The 10-yr note yield rose one basis point to 4.20%.

  • S&P 500:+10.2% YTD
  • S&P Midcap 400: +9.5% YTD
  • Nasdaq Composite: +9.1% YTD
  • Dow Jones Industrial Average: +5.6% YTD
  • Russell 2000: +4.8% YTD

Reviewing today's economic data:

  • Weekly Initial Claims 210K (Briefing.com consensus 213K); Prior was revised to 212K from 210K; Weekly Continuing Claims 1.819 mln; Prior was revised to 1.795 mln from 1.807 mln
    • The key takeaway from the report is the low (and steady) level of initial jobless claims -- a leading indicator -- that also reinforces the market's belief that employment conditions remain favorable for continued economic growth.
  • Q4 GDP - Third Estimate 3.4% (Briefing.com consensus 3.2%); Prior 3.2%; Q4 GDP Deflator - Third Estimate 1.6% (Briefing.com consensus 1.7%); Prior 1.6%
    • The key takeaway from the report is that it is dated information and won't have market-moving impact other than to reinforce the market's belief that the economy fared much better than expected in the final quarter of 2023 despite the Fed's prior rate hikes.
  • March Chicago PMI 41.4 (Briefing.com consensus 45.4); Prior 44.0
  • March Univ. of Michigan Consumer Sentiment - Final 79.4 (Briefing.com consensus 76.5); Prior 76.5
    • The key takeaway from the report is that overall sentiment was improved in March in conjunction with lessening inflation worries and rising stock prices.
  • February Pending Home Sales 1.6% (Briefing.com consensus 2.1%); Prior was revised to -4.7% from -4.9%

Bond and equity markets are closed tomorrow for Good Friday, but there is still a slate of economic data to get through. The February Personal Income and Spending report, which features the Fed's preferred inflation gauge in the form of the PCE Price Indexes, will be released at 8:30 ET. Other data include the February advance goods trade deficit, advance Wholesale Inventories, and advance Retail Inventories at 8:30 ET. 

Overseas:

  • Europe: DAX +0.2%, FTSE +0.3%, CAC +0.0%
  • Asia: Nikkei -1.6%, Hang Seng +0.9%, Shanghai +0.6%

Commodities:

  • Crude Oil +1.76 @ 83.09
  • Nat Gas +0.04 @ 1.76
  • Gold +26.50 @ 2239.40
  • Silver +0.19 @ 24.94
  • Copper unchanged @ 4.01

After-Hours Spotlight:

  • Liquidia Technologies (LQDA) up over +5% after court win surrounding patent dispute with United Therapeutics (UTHR)... LQDA up 5.7%
  • Oxford Industries (OXM) misses by $0.05, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs above consensus; increases dividend... OXM down 5.7%
  • Semtech (SMTC) misses by $0.02, beats on revs; guides Q1 EPS in-line, revs in-line... SMTC up 7.1%
  • Torrid (CURV) beats by $0.04, beats on revs; guides Q1 revs below consensus; guides FY24 revs mostly above consensus... CURV up 19.8%
Today's News Summary:

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

  • Earnings/Guidance (Full Earnings Calendar):
    • Azul S.A. (AZUL) reports Q4 results and provides FY24 guidance
    • Braze (BRZE) beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY25 EPS below consensus, revs in-line
    • BRP Inc. (DOOO) misses by CAD0.14, misses on revs; guides FY25 EPS below consensus, revs below consensus; raises dividend
    • Chemours (CC) reports Q4 (Dec) results, beats on revs; determines internal control over financial reporting was not effective as of December 31, 2023
    • Franklin Covey (FC) beats by $0.02, misses on revs
    • H.B. Fuller (FUL) beats by $0.03, misses on revs; reaffirms FY24 EPS guidance, guides FY24 revs in-line
    • Jefferies (JEF) beats by $0.12, beats on revs
    • Materion (MTRN) is providing an update to Q1 expected value-added sales - notes decrease is primarily due to lower shipments
    • MillerKnoll (MLKN) beats by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus
    • MSC Industrial (MSM) beats by $0.02, misses on revs
    • RH (RH) misses by $0.95, misses on revs; guides FY25 revs above consensus; expects revenue to lag demand during the year
    • Rumble (RUM) beats by $0.08 (single est), misses on revs (single est); expects Q2 (Jun) revenue to increase on a sequential basis
    • 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
    • Universal Stainless/Alloy (USAP) misses by $0.05, beats on revs
    • Verint Systems (VRNT) beats by $0.10, reports revs in-line; guides FY25 EPS above consensus, revs below consensus
    • VNET Group (VNET) beats by $0.17 (two ests), misses on revs (two ests); guides FY24 revs below consensus
    • Walgreens Boots Alliance (WBA) beats by $0.38, beats on revs; guides FY24 EPS in-line
  • General News
    • Fed Governor Christopher Waller (voting FOMC member) says there is no rush to cut the policy rate
    • President Biden announces new landmark rule to protect Americans from "junk health insurance"
    • Fitch Ratings: East Coast shipping disruption from Baltimore bridge collapse will not affect the credit of rated U.S. ports or automakers
    • U.S. Department of State will partner with the Government of Mexico to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security and Innovation Fund
    • EIA provides data on impact of Baltimore bridge collapse on coal imports
    • Toronto District School Board announce lawsuit against META, SnapChat (SNAP) and TikTok for "disruption to the education system"
    • Nevada Gaming Board reports February gaming win +8.5% yr/yr to $1.342 bln; +12.4% yr/yr to $800.75 mln on the Las Vegas Strip
    • Acadia Healthcare (ACHC) completes the acquisitions of three comprehensive treatment centers in North Carolina
    • Akebia Therapeutics (AKBA) receives FDA approval of Vafseo Tablets
    • Ally Financial (ALLY) names Michael Rhodes as CEO effective April 29
    • Alpha Star Acquisition Corporation (ALSA) identified two classification errors made in certain of the previously issued financial statements; files to delay 10-K
    • Andretti Acquisition Corp. (WNNR) and Zapata AI announce closing of business combination
    • Apple (AAPL) planning to introduce new iPad Air and iPad Pro in May, according to Bloomberg
    • Astellas Pharma (ALPMY): China's National Medical products administration accepts Astellas and Pfizer's (PFE) supplemental biologics license application for enfortumab vedotin with KEYTRUDA (pembrolizumab) for first-line treatment of advanced bladder cancer
    • BAE Systems(BAESY): U.S. Army awards BAE Systems $754 million for second phase of full rate production for Armored Multi-Purpose Vehicle program
    • BeiGene (BGNE) & GenFleet enter into trial collaboration for a potentially first-in-class combination therapy to initiate phase Ib/II study of GFH009 and BRUKINSA treating diffuse large b cell lymphoma
    • B. Riley Financial (RILY) has secured an extension under its existing credit agreement with Nomura Corporate Funding Americas, LLC
    • Discover Financial Services (DFS) CEO Michael G. Rhodes to resign, effective April 1; J. Michael Shepherd appointed interim CEO upon Mr. Rhodes' resignation
    • Evolv Technologies Holdings (EVLV) technology platform will be used in NYC subways to help prevent crime
    • Five Star Bancorp (FSBC) priced a public offering of 3,450,000 shares of its common stock at $21.75/share
    • GE Vernova (GEV) and Solventum (SOLV) to join S&P 500; Dentsply Sirona (XRAY) to join S&P MidCap 400; others to join S&P SmallCap 600 prior to the open of trading on Wednesday, April 3
    • General Dynamics (GD) Information Technology awarded a $922 million contract to modernize the U.S. Central Command's enterprise IT infrastructure
    • Genetron Health (GTH) announces completion of going private transaction
    • Gilead Sciences (GILD) and Xilio Therapeutics (XLO) announce an exclusive license agreement to develop and commercialize Xilio’s Phase 1 tumor-activated IL-12 program, XTX301
    • Gray Television (GTN) announces a multi-year agreement with the Arena Football League to bring Saturday arena football games over-the-air to local audiences in at least thirty-four markets across the United States
    • HUTCHMED (HCM) receives sNDA acceptance for Savolitinib in China for treatment-naïve or previously treated patients with locally advanced or metastatic MET Exon 14 NSCLC
    • Ironwood Pharma (IRWD) announces positive, primary results up to Day 91 for its Phase II exploratory STARGAZE trial evaluating apraglutide in patients with steroid-refractory gastrointestinal acute Graft-versus-Host Disease
    • Merrimack Pharma (MACK) receives $225 million milestone payment from Ipsen as a result of its receipt of approval from the FDA, to market ONIVYDE as a first-line treatment of metastatic adenocarcinoma on the pancreas
    • Molson Coors Brewing (TAP) returns to bargaining table following ongoing Fort Worth Brewery teamsters' boycott
    • Nutrien (NTR) considering divestments in South America, according to Reuters
    • Philip Morris Internationa (PM) will introduce its new heated tobacco device IQOS in Austin, Texas, according to Reuters
    • Snowflake (SNOW) CEO bought 31,542 shares at $158.52 worth ~$5 mln
    • Southwest Air (LUV) announces the acquisition of SAFFiRE Renewables, LLC (SAFFiRE) as part of the investment portfolio of its wholly owned subsidiary Southwest Airlines Renewable Ventures; financial terms were not disclosed
    • Spotify (SPOT) and Universal Music Group (UMGNF) expand strategic relationship
    • Toyota Motor (TM) reports February worldwide sales -6.9% to 719,630 units
    • Toyota Motor (TM)  considering introduction of electric or plug-in hybrid versions of its Tacoma and Tundra pickups, according to CNBC
    • United Parks & Resorts Inc. (PRKS) shareholders approve $500 mln buyback authorization and amended agreement with Hill Path Capital LP
    • Vizsla Silver Corp. (VZLA) enters agreement to acquire newly consolidated past-producing silver district in the emerging silver-gold-ricH Panuco - San Dimas corridor in Mexico; financial terms were not disclosed
    • Walt Disney (DIS) urges shareholders to vote for only Disney’s 12 director nominees
    • Walt Disney (DIS) sued by Blackwell over disclosure in relationship with ValueAct, according to Reuters
    • Walt Disney (DIS) and Nelson Peltz are scrambling for proxy votes ahead of April 3 investor meeting, according to WSJ
    • Weave Communications (WEAV) announces an integration with Athenahealth

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

  • Upgrades:
    • Allstate (ALL) upgraded to Buy from Hold at HSBC Securities; tgt raised to $190
    • Estee Lauder (EL) upgraded to Buy from Neutral at BofA Securities; tgt $170
    • Lands' End (LE) upgraded to Buy from Hold at Craig Hallum; tgt raised to $15
    • Millicom International Cellular (TIGO) upgraded to Overweight from Neutral at JP Morgan
    • Omnicom (OMC) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $115
    • PNC (PNC) upgraded to Hold from Reduce at HSBC Securities; tgt raised to $155
    • Public Storage (PSA) upgraded to Strong Buy from Mkt Perform at Raymond James; tgt $330
    • Triumph Group (TGI) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $18
    • U.S. Bancorp (USB) upgraded to Buy from Hold at HSBC Securities; tgt raised to $53
    • Vornado Rlty Trust (VNO) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $26
  • Downgrades:
    • Albany Intl (AIN) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $95
    • Apple (AAPL) downgraded to Hold from Buy at DZ Bank; tgt $180
    • Bank of America (BAC) downgraded to Hold from Buy at HSBC Securities; tgt raised to $39
    • Extra Space Storage (EXR) downgraded to Outperform from Strong Buy at Raymond James; tgt $160
    • Galapagos NV (GLPG) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $31
    • Molina Healthcare (MOH) downgraded to Underperform from Neutral at BofA Securities; tgt $439
    • Palantir Technologies (PLTR) downgraded to Sell from Neutral at Monness Crespi & Hardt; tgt $20
    • Pebblebrook Hotel Trust (PEB) downgraded to Neutral from Buy at Compass Point; tgt $17
    • Vista Energy (VST) downgraded to Neutral from Buy at UBS; tgt raised to $47
    • Weibo (WB) downgraded to Neutral from Buy at Goldman
  • Others:
    • ADC Therapeutics (ADCT) initiated with a Buy at Guggenheim; tgt $11
    • Aquestive Therapeutics (AQST) initiated with an Outperform at Raymond James; tgt $7
    • Bentley Systems (BSY) initiated with an Outperform at William Blair
    • CyberArk (CYBR) initiated with a Buy at BTIG Research; tgt $317
    • Global Net Lease (GNL) initiated with a Hold at Truist; tgt $7
    • Grindr (GRND) initiated with a Buy at TD Cowen; tgt $12
    • Immunovant Sciences (IMVT) initiated with an Outperform at Oppenheimer; tgt $50
    • Jasper Therapeutics (JSPR) initiated with an Outperform at RBC Capital Mkts; tgt $70
    • Merus (MRUS) initiated with a Buy at Truist; tgt $69
    • Progress Software (PRGS) initiated with a Buy at DA Davidson; tgt $65
    • Scholar Rock (SRRK) initiated with a Strong Buy at Raymond James; tgt $30
    • SI-BONE (SIBN) initiated with an Overweight at Piper Sandler; tgt $25
    • Solid Biosciences (SLDB) initiated with an Outperform at William Blair; tgt $40
    • TransMedics Group (TMDX) initiated with an Overweight at Piper Sandler; tgt $95
    • TruBridge (TRBG) initiated with an Outperform at RBC Capital Mkts; tgt $13
    • Veru (VERU) initiated with an Outperform at Raymond James; tgt $3
    • Xeris Biopharma (XERS) initiated with an Outperform at Oppenheimer; tgt $5
  • Econ Data (Thw Week Ahead):
      • Friday: *Bond and equity markets closed for Good Friday* February advance goods trade deficit (prior $90.2 bln), advance Wholesale Inventories (prior -0.3%), advance Retail Inventories (prior 0.5%), February Personal Income (Briefing.com consensus 0.4%; prior 1.0%), Personal Spending (Briefing.com consensus 0.4%; prior 0.2%), PCE Prices (Briefing.com consensus 0.4%; prior 0.3%), and Core PCE Price Index (Briefing.com consensus 0.3%; prior 0.4%) at 8:30 ET
      • Monday: February Construction Spending (prior -0.2%) and March ISM Manufacturing Index (prior 47.8%) at 10:00 ET
      • Tuesday: February Factory Orders (prior -3.6%) at 10:00 ET
      • Wednesday: Weekly MBA Mortgage Index (prior -0.7%) at 7:00 ET; March ADP Employment Change (prior 140,000) at 8:15 ET: and weekly crude oil inventories (prior +3.17 mln) at 10:30 ET
      • Thursday: Weekly Initial Claims (prior 210,000), Continuing Claims (prior 1.819 mln), and February Trade Balance (prior -$67.4 bln) at 8:30 ET; and weekly natural gas inventories (prior -36 bcf) at 10:30 ET
      • Friday: March Nonfarm Payrolls (prior 275,000), Nonfarm Private Payrolls (prior 223,000), Average Hourly Earnings (prior 0.1%), Unemployment Rate (prior 3.9%), and Average Workweek (prior 34.3) at 8:30 ET; and February Consumer Credit (prior $19.5 bln) at 15:00 ET
  • Earnings:
    • Monday (Apr 1)
      • Pre-Market: None
        After-Hours: PVH
    • Tuesday (Apr 2)
      • Pre-Market: PAYX
      • After-Hours: CALM PLAY
    • Wednesday (Apr 3)
      • Pre-Market: AYI
      • After-Hours: BB LEVI RGP SLP SPWH
    • Thursday (Apr 4)
      • Pre-Market: CAG LW LNN RDUS RPM SMPL
        After-Hours: None
    • Friday (Apr 5)
      • Pre-Market: GBX
      • After-Hours: None
    • General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike
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