After Hours Report

Stocks bounced back today after yesterday's retreat. The major indices faded from their highs in the afternoon trade, but still closed with gains ranging from 0.2% to 0.7%. A buy-the-dip mentality, which as worked well for participants since the start of the year, contributed to the positive bias. 

Renewing buying activity in growth stocks and the tech space following impressive earnings and outlook from cybersecurity software provider CrowdStrike (CRWD 329.57, +32.01, +10.8%) also contributed to the upside moves.

Many stocks participated in today's broad rally. The Invesco S&P 500 Equal Weight ETF (RSP) gained 0.6% and nine of the 11 S&P 500 sectors finished higher. The utilities sector (+1.0%) saw the largest gain, followed by the heavily-weighted information technology sector (+0.9%). 

Meanwhile, losses in some mega cap constituents led the communication services (-0.2%) and consumer discretionary (-0.4%) sectors to underperform the broader market. 

Market participants were also digesting the first day of Fed Chair Powell's semiannual monetary policy testimony before the House Financial Services Committee, which failed to produce any surprising headlines. Mr. Powell acknowledged that it will likely be appropriate to lower the fed funds rate range later this year. 

Rate cut expectations were little changed by the remarks. The probability of a 25 basis points rate cut to 5.00-5.25% at June FOMC meeting is 71.4% now versus 72.4% yesterday, according to the CME FedWatch Tool.

In other news, New York Community Bancorp (NYCB 3.46, +0.24, +7.5%) rallied after announcing an over $1 billion equity investment anchored by former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital, Hudson Bay and Reverence Capital. Shares initially plunged more than 40.0% today on a Wall Street Journal report that the company was seeking to raise capital. 

The 10-yr note yield slid three basis points to 4.10% and the 2-yr note yield settled one basis point higher.

• S&P 500: +7.0% YTD
• Nasdaq Composite: +6.8% YTD
• S&P Midcap 400: +5.7% YTD
• Dow Jones Industrial Average: +2.6% YTD
• Russell 2000: +2.0% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications 9.7%; Prior -5.6%
• February ADP Employment Change 140K (Briefing.com consensus 150K); Prior was revised to 111K from 107K
• January JOLTS - Job Openings 8.863 mln; Prior was revised to 8.889 mln from 9.026 mln
• January Wholesale Inventories -0.3% (Briefing.com consensus -0.1%); Prior 0.4%

Thursday's economic calendar features:

• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 217,000; prior 215,000), Continuing Claims (prior 1.905 mln), January Trade Balance (Briefing.com consensus -$63.3 bln; prior -$62.2 bln), revised Q4 Productivity (Briefing.com consensus 3.1%; prior 3.2%) and Unit Labor Costs (Briefing.com consensus 0.6%; prior 0.5%)
• 10:30 ET: Weekly natural gas inventories (prior -96 bcf)
• 15:00 ET: January Consumer Credit (Briefing.com consensus $10.0 bln; prior $1.6 bln)

Overseas:

• Europe: DAX +0.1%, FTSE +0.4%, CAC +0.3%
• Asia: Nikkei +0.1%, Hang Seng +1.7%, Shanghai -0.3%

Commodities:

• Crude Oil +0.86 @ 79.02
• Nat Gas -0.03 @ 1.93
• Gold +17.60 @ 2159.60
• Silver +0.54 @ 24.52
• Copper +0.03 @ 3.88

After-Hours Spotlight:

• Honest Company (HNST) beats by $0.09, beats on revs; projects FY24 net revenue growth in low to mid single digits... HNST up 20.6%
• Kodiak Gas Services (KGS) reports Q4 (Dec) results, revs in-line, issues FY24 guidance... KGS down 14.5%
• OneSpan (OSPN) beats by $0.16, beats on revs; guides FY24 revs above consensus... OSPN up 34.8%
• Rush Street Interactive (RSI) beats by $0.03, beats on revs; guides FY24 revs above consensus... RSI up 16.2%
• Victoria's Secret (VSCO) beats by $0.12, reports revs in-line; guides Q1 revs below consensus; guides FY25 revs below consensus; authorizes up to $250 mln for repurchases... VSCO down 23.7%
• Yext (YEXT) beats by $0.03, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS above consensus, revs below consensus... YEXT up 18.6%

Fair Value for Thursday, March 7:

• S&P 500: 5,111
• Nasdaq 100: 18,039
• DJIA: 38,699

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 $0.14, beats on revs; guides Q1 revs above consensus; guides FY25 revs above consensus
  • Agiliti (AGTI) beats by $0.01, reports revs in-line; being taken private as previously announced at $10.00/share
  • Ally Financial (ALLY) reaffirms Q1 and FY24 guidance
  • Berry Petroleum (BRY) misses by $0.12, beats on revs
  • Box (BOX) beats by $0.04, reports revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY25 EPS below consensus, revs below consensus; approves $100 mln for additional repurchases
  • Brown-Forman (BF.B)beats by $0.04, misses on revs
  • Cadre Holdings (CDRE) beats by $0.07, beats on revs; guides FY24 revs above consensus
  • Campbell Soup (CPB) beats by $0.03, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance
  • ChargePoint (CHPT) reports Q4 (Jan) results, misses on revs; guides Q1 revs below consensus
  • Comerica (CMA) in slides: Expects 1Q24 net interest income in line with prior Q1 guidance range excluding volatility from BSBY cessation
  • Couchbase (BASE) beats by $0.08, beats on revs; guides Q1 revs above consensus; guides FY25 revs in-line
  • Cricut (CRCT) misses by $0.01, misses on revs (two ests)
  • CrowdStrike (CRWD) beats by $0.13, reports revs in-line, Net new ARR growth accelerates to 27%; guides Q1 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs in-line
  • Enbridge (ENB) Extends visible growth outlook, reiterates strategic priorities and announces accretive investments; Reaffirmed 2024 full year financial guidance for EBITDA and DCF per share
  • EVgo Inc. (EVGO) reports Q4 (Dec) results, beats on revs; guides FY24 revs in-line
  • Foot Locker (FL) beats by $0.06, beats on revs; guides FY25 revs above consensus
  • Franco-Nevada (FNV) beats by $0.10, beats on revs; provides five-year outlook
  • Genius Sports (GENI) reports Q4 (Dec) results, revs in-line; guides Q1 revs above consensus; guides Q2 (Jun) revs below consensus; guides FY24 revs above consensus
  • GoDaddy (GDDY) outlines long-term profitable growth strategy at Investor Day (halted)
  • HashiCorp (HCP) beats by $0.04, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY25 EPS below consensus, revs below consensus; approves $250 mln for repurchases
  • Huntington Banc (HBAN) in slide presentation sees FY24 loan growth of +3-5%; sees stable to increasing net interest margin
  • JD.com (JD) reports Q4 (Dec) results, beats on revs
  • Korn/Ferry (KFY) beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs in-line
  • LGI Homes (LGIH) closes 376 homes in February 2024, down 26% yr/yr
  • M&T Bank (MTB) in slide presentation sees net interest income of $6.7-6.8 bln; sees loans of $134-136 bln; fee income of $2.3-2.4 bln
  • Marinus Pharmaceuticals (MRNS) misses Q4 earnings by $0.12, misses on revs; cash runway projected into 4Q24
  • MeridianLink (MLNK) misses by $0.17, reports revs in-line; guides Q1 revs below consensus; guides FY24 revs below consensus
  • Newtek (NEWT) misses on top and bottom lines
  • Nordstrom (JWN) misses by $0.06, misses on revs; guides FY25 EPS in-line, revs below consensus
  • Nuvei Corporation (NVEI) beats by $0.02, reports revs in-line; guides Q1 revs above consensus; guides FY24 revs in-line
  • ODDITY Tech Ltd. (ODD) beats by $0.08, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs above consensus
  • REV Group (REVG) beats by $0.10, beats on revs; lowers FY24 revenue and adjusted net income guidance
  • Ross Stores (ROST) beats by $0.16, beats on revs, comps +7%; guides Q1 EPS above consensus; guides FY25 EPS below consensus; new $2.1 bln share repurchase authorization; increases dividend by 10%; provides revenue guidance on the call; sees Q1 (Apr) and FY25 (Jan) revs in-line with consensus
  • Super Group (SGHC) reports Q4 results, beats on revs
  • Thor Industries (THO) misses by $0.54, misses on revs; lowers FY24 EPS below consensus, revs below consensus
  • United Micro (UMC) reports February sales increased 3.1% yr/yr to NT$17.5 bln
  • United Natural Foods (UNFI) beats by $0.09, misses on revs; narrows FY24 EPS guidance; lowers FY24 revenue guidance
  • U.S. Bancorp (USB) reaffirmed Q1 and FY24 metric guidance
  • W&T Offshore (WTI) misses by $0.07, misses on revs
  • XPO, Inc. (XPO) reports preliminary LTL segment operating metrics for February 2024; LTL tonnage per day increased 3.5%, as compared with February 2023, attributable to a year-over-year increase of 5.8% in shipments per day and a decrease of 2.2% in weight per shipment
• General News
  • Donald Trump wins all Super Tuesday states by wide margins except for Vermont, which was won by Nikki Haley. President Biden won all his Super Tuesday states. Mr. Trump and President Biden are getting close to clinching their parties' nominations, according to the New York Times
  • Nikki Haley will end her campaign for president this morning, according to CNN
  • House will vote today on funding bills to fund half of the government through September 30. The Senate will vote tomorrow or Friday, according to NBC News
  • White House working with Congress on TikTok ban, according to Punchbowl News
  • Acne treatments contained chemicals linked to cancer, according to Bloomberg
  • Houthi militia attacked a commercial vessel off the coast of Yemen, killing 2 people, according to the NY Times
  • Ambrx Biopharma (AMAM) announces that its shareholders approved a proposal to adopt the merger agreement entered into between the Company and Johnson & Johnson (JNJ) at its Special Meeting of Shareholders
  • Apple (AAPL) spokesperson says that Epic Games had a "egregious breach of its contractual obligations" which resulted in termination of developer account, according to Mac Rumors
  • Atlas Energy Solutions (AESI) promotes CFO John Turner to be the new CEO; current CEO, Bud Brigham, will continue to serve as Executive Chairman; co is searching for new CFO; co completes the acquisition of Hi-Crush
  • Azul S.A. (AZUL) updates the market about market consolidation; co is constantly following the strategic dynamics of the airline industry and potential opportunities for partnerships
  • Baxter (BAX) recalls ExactaMix Pro 1200 and Pro 2400 due to a software error
  • Biogen (BIIB): New biomarker data add further evidence supporting the potential benefit of SPINRAZA in infants and toddlers with unmet clinical needs after gene therapy
  • Biomea Fusion (BMEA) Presents Patient Cohorts in COVALENT-111 Displaying a Durable Placebo-Adjusted Mean Reduction of up to 1.4% in HbA1c While Off Therapy at Week-26, after BMF-219’s 28-Day Treatment Cycle, Supporting Improved Pancreatic Function
  • Boeing (BA) provided the full list of individuals on the 737 door team to NTSB, according to Reuters
  • Boeing (BA): National Transportation Safety Board Chair Jennifer Homendy gives testimony to Senate Commerce Committee
  • Box (BOX) announces new integration with Microsoft (MSFT) Azure OpenAI Service to bring its LLMs to Box AI
  • BYD (BYDDY) lowers price of cheapest car by 5%, according to Reuters
  • Cboe Global Markets (CBOE) reports monthly trading volume for February 2024; Average daily trading volume for index options increased 16.8% yr/yr, futures -6.1% yr/yr, U.S. equities on exchange up 7.1%
  • Core Scientific (CORZ) releases production and operations updates for February 2024; Earned 893 self-mined bitcoin and customers earned an estimated 307 bitcoin in co's data centers in February
  • Dada (DADA) announces results of previously disclosed independent review; net revs overstated in certain periods; prepared remediation plan as a response
  • Denny's (DENN) entered into a pre-arranged stock trading plan for the purpose of repurchasing a limited number of shares of the Company’s common stock in accordance with guidelines specified under Rule 10b5-1
  • Dexcom (DXCM): Stelo by Dexcom first glucose biosensor to be cleared by FDA as over-the-counter
  • EVERTEC (EVTC) has entered into an Accelerated Share Repurchase agreement with Bank of America, N.A. by which the Company will repurchase $70 mln of its common stock
  • General Electric (GE): GE Vernova hosts 2024 Investor Day; GE Vernova operationally and financially ready to spin off from GE on April 2
  • General Dynamics (GD) increases quarterly cash dividend 7.6% to $1.42/share from $1.32/share
  • Gilat Satellite (GILT) was selected by Safran (SAFRY) Passenger Innovations for a strategic, multimillion-dollar in-flight connectivity program
  • Gilead (GILD) and Merck (MRK) announce Phase 2 data showing an investigational oral once-weekly combination regimen of Islatravir and Lenacapavir maintained viral suppression at Week 24
  • Google (GOOG) and Walmart (WMT) gain fintech users in India, according to Bloomberg
  • Grupo Aeroportuario del Pacifico (PAC) announces that terminal passenger traffic for February 2024 increased by 1.7% yr/yr
  • Himalaya Shipping Ltd. (HSHP) provides commercial update and key information relating to the cash distribution for February 2024
  • HIVE Digital Technologies (HIVE) reports it increased its Bitcoin holdings by 10% in February
  • ICF International (ICFI) awarded over $65 million by Baltimore Gas Electric in re-compete and new contracts to implement EmPOWER Maryland, the utility's statewide energy efficiency and demand response program
  • Innate Pharma (IPHA): First Patient dosed in Phase 1/2 study of IPH6501 in relapsed /refractory B-Cell non-Hodgkin’s Lymphoma
  • Jabil (JBL) and Cutera (CUTR) entered into a settlement agreement related to the non-renewal of the Manufacturing Service Agreement
  • KKR (KKR): ENCAVIS (ENCVF) confirms talks on potential transaction with KKR
  • KKR (KKR) in talks to acquire Encavis AG for €2 bln, according to Bloomberg
  • Lionsgate (LGF.A) expected to start studio split from Starz next month, according to Deadline
  • Marathon Digital Holdings (MARA) announces Bitcoin production and mining operation updates for February 2024
  • Mattel (MAT) and Comcast's (CMCSA) Universal Products & Experiences have renewed their licensing partnership to produce toys inspired by the iconic Jurassic World franchise
  • Morgan Stanley (MS) eliminated 9% of China fund unit staff, according to Reuters
  • New York Community Bancorp (NYCB) announces over $1 bln equity investment anchored by former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital, Hudson Bay and Reverence Capital
  • Newmark Group (NMRK): BitOoda and NMRK enter strategic partnership
  • News Corp (NWSA): Realtor.com and Zillow today announce a new agreement for Zillow (ZG) to be the exclusive provider of multifamily rental listings on Realtor.com, generating additional exposure for listings to millions of renters
  • North American Construction Group (NOA) announces that the MacKellar Group has been awarded a five-year contract extension by a major metallurgical coal producer in relation to a mine in the state of Queensland, Australia
  • Northern Trust (NTRS) provides French re-trial update
  • Palantir Technologies (PLTR): Army selects Palantir to deliver TITAN next generation deep-sensing capability in prototype maturation phase
  • Paramount Global (PARA) has held discussions to part with its stake in Indian JV Reliance Industries Ltd., according to Bloomberg
  • Pfizer (PFE): FDA approves inotuzumab ozogamicin for pediatric patients with acute lymphoblastic leukemia
  • Spirit Airlines' (SAVE) bondholders are eyeing strategy to insulate them from losses in the event the company can't repay its debts, according to Bloomberg
  • Stellantis (STLA) announces €5.6 billion investment in South America, marking the largest investment in the region’s automotive industry
  • Taylor Morrison Home (TMHC) entered into an accelerated share repurchase agreement
  • Tesla (TSLA) CEO Elon Musk met with Donald Trump on Sunday, according to the New York Times
  • Tesla (TSLA) Germany plant remains halted, according to Bloomberg
  • United Natural Foods (UNFI) announces that Giorgio “Matteo” Tarditi has been named President and Chief Financial Officer, effective April 15
  • Vanda Pharma (VNDA) receives Complete Response Letter from FDA update for supplemental NDA for HETLIOZ
  • Verastem Oncology (VSTM) receives orphan drug designation from FDA for Avutometinib alone or in combination with Defactinib in recurrent low-grade serous ovarian cancer
  • Xcel Energy (XEL): Utility pole deemed as catalyst to Texas wildfires was marked with signage before the incident, according to Bloomberg

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

• Upgrades:
  • Airbus (EADSY) upgraded to Neutral from Sell at UBS
  • GitLab (GTLB) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $75
  • Honeywell (HON) upgraded to Buy from Hold at Berenberg; tgt raised to $240
• Downgrades:
  • Alignment Healthcare (ALHC) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $6
  • ChargePoint (CHPT) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $3
  • Dada (DADA) downgraded to Neutral from Buy at New Street; tgt lowered to $2
• Others:
  • Acadia Healthcare (ACHC) initiated with an Overweight at Barclays; tgt $100
  • Addus HomeCare (ADUS) initiated with an Equal Weight at Barclays; tgt $88
  • Agilon Health (AGL) initiated with an Underweight at Barclays; tgt $5
  • Alignment Healthcare (ALHC) initiated with an Underweight at Barclays; tgt $4.50
  • Aspen Aerogels (ASPN) initiated with a Buy at ROTH MKM; tgt $22
  • AST SpaceMobile (ASTS) initiated with a Sector Outperform at Scotiabank; tgt $7.50
  • BrightSpring Health Services (BTSG) initiated with a Buy at HSBC Securities; tgt $13
  • Centene (CNC) initiated with an Overweight at Barclays; tgt $101
  • The Cigna Group (CI) initiated with an Overweight at Barclays; tgt $393
  • Community Health (CYH) initiated with an Equal Weight at Barclays; tgt $3
  • Crinetics Pharmaceuticals (CRNX) initiated with a Buy at Citigroup; tgt $68
  • CVS Health (CVS) initiated with an Equal Weight at Barclays; tgt $78
  • Electrovaya (ELVA) initiated with a Buy at ROTH MKM; tgt $8
  • Elevance Health (ELV) initiated with an Overweight at Barclays; tgt $584
  • Encompass Health (EHC) initiated with an Overweight at Barclays; tgt $95
  • Flux Power Hldgs. (FLUX) initiated with a Buy at ROTH MKM; tgt $10
  • HCA (HCA) initiated with an Overweight at Barclays; tgt $356
  • Humana (HUM) initiated with an Equal Weight at Barclays; tgt $356

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 217,000; prior 215,000), Continuing Claims (prior 1.905 mln), January Trade Balance (Briefing.com consensus -$63.3 bln; prior -$62.2 bln), revised Q4 Productivity (Briefing.com consensus 3.1%; prior 3.2%) and Unit Labor Costs (Briefing.com consensus 0.6%; prior 0.5%)
  • 10:30 ET: Weekly natural gas inventories (prior -96 bcf)
  • 15:00 ET: January Consumer Credit (Briefing.com consensus $10.0 bln; prior $1.6 bln)