After Hours Report

The stock market started the new week on an upbeat note. The major indices were all trading higher thanks to some buy-the-dip action following recent declines, which was helped by a sense of relief that Iran's attacks on Israel didn't result in any economic damage.

Initial buyer enthusiasm started to fade, however, shortly after the market opened. There was no specific news catalyst coinciding with the early deterioration that was likely driven by continued consolidation efforts. Selling picked up steam, though, in the afternoon trade following reports that Israel's Chief of Staff said "there will be a response" to Iran's attack on Israel.

The major indices ultimately settled at or near their worst levels of the session. The S&P 500, which dropped below 5,100 and its 50-day moving average (5,114), declined 1.2% today. 

Geopolitical worries were not the only factor fueling the afternoon selling. Defense-related stocks didn't react much to the afternoon reports related to the Middle East. Lockheed Martin (LMT 453.08, +2.68, +0.6%), RTX (RTX 100.02, -0.08, -0.1%), and others were outperforming before the new developments. RTX slid below its prior close late in the session, settling near its low of the day. 

Also, Treasury yields remain elevated, indicating that there wasn't a strong safe-haven trade in the Treasury market. The jump in market rates itself acted as a contributing factor to the afternoon pullback. The 2-yr note yield settled six basis points higher at 4.94% and the 10-yr note yield jumped 13 basis points to 4.63%.

The outsized impact of weakness in mega cap stocks and chipmakers also contributed to the index level deterioration. The Vanguard Mega Cap Growth ETF (MGK) fell 1.9% and the PHLX Semiconductor Index (SOX) logged a 1.4% loss.

All 11 S&P 500 sectors registered decline, reflecting a broad retreat. The financials sector logged a 0.5% decline despite sizable earnings-related gains in Goldman Sachs (GS 400.88, +11.39, +2.9%), M&T Bank (MTB 140.94, +6.38, +4.7%), and Charles Schwab (SCHW 71.23, +1.20, +1.7%).

• S&P 500:+6.1% YTD
• Nasdaq Composite: +5.8% YTD
• S&P Midcap 400: +3.1% YTD
• Dow Jones Industrial Average: +0.1% YTD
• Russell 2000: -2.5% YTD

Reviewing today's economic data:

• March Retail Sales 0.7% (Briefing.com consensus 0.4%); Prior was revised to 0.9% from 0.6%; March Retail Sales ex-auto 1.1% (Briefing.com consensus 0.5%); Prior was revised to 0.6% from 0.3%
  • The key takeaway from the report is that the U.S. consumer, fortified by a strong job market, continued to spend freely in March in an act that will continue to support the soft landing/no landing outlook for the U.S. economy.
• April NY Fed Empire State Manufacturing -14.3 (Briefing.com consensus -6.0); Prior -20.9
• February Business Inventories 0.4% (Briefing.com consensus 0.3%); Prior 0.0%
• April NAHB Housing Market Index 51 (Briefing.com consensus 51); Prior 51

Separately, Tuesday's economic calendar features:

• 8:30 ET: March Housing Starts (Briefing.com consensus 1.485 mln; prior 1.521 mln) and Building Permits (Briefing.com consensus 1.518 mln; prior 1.518 mln)
• 9:15 ET: March Industrial Production (Briefing.com consensus 0.4%; prior 0.1%) and Capacity Utilization (Briefing.com consensus 78.6%; prior 78.3%)

Overseas:

• Europe: DAX +0.4%, FTSE -0.4%, CAC +0.4%
• Asia: Nikkei -0.9%, Hang Seng -0.7%, Shanghai +1.3%

Commodities:

• Crude Oil -0.14 @ 85.44
• Nat Gas -0.08 @ 1.69
• Gold +5.30 @ 2379.80
• Silver +0.41 @ 28.74
• Copper +0.10 @ 4.36

After-Hours Spotlight:

• Extra Space Storage (EXR) files mixed shelf securities offering... EXR down 5.2%
• Gildan Activewear (GIL) projects Q1 revs ahead of consensus; reiterates FY24 guidance; provides medium-term targets... GIL up 2.5%
• Macatawa Bank Corporation (MCBC) and Wintrust Financial Corporation (WTFC) enter into definitive merger agreement for Wintrust to acquire Macatawa in all-stock transaction for approximately $14.85/share... MCBC up 38.8%; WTFC down 2.0%
• Mitek Systems (MITK) misses by $0.04, misses on revs; reaffirms FY24 revs guidance... MITK down 6.6%

Fair Value for Tuesday, April 16:

• S&P 500: 5,104
• Nasdaq 100: 17,868
• DJIA: 37,983

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

• Earnings/Guidance (Full Earnings Calendar):
  • Charles Schwab (SCHW) beats by $0.01, reports revs in-line
  • Diamondrock Hospitality (DRH) implements leadership changes and simplified organizational structure; reaffirms FY24 FFO guidance
  • Goldman Sachs (GS) beats by $2.85, beats on revs
  • M&T Bank (MTB) beats by $0.01
  • Reviva Pharmaceuticals (RVPH) determined that select previously issued financial statements should be restated to correct historical errors related principally to the timing of recognition of the Company’s estimated accrual of certain research and development expenses
  • Spirit Airlines (SAVE) sees Q1 revs in-line with prior guidance
  • Tutor Perini (TPC) provides Q1 guidance following $400 mln senior note offering
  • WEC Energy Group (WEC) reaffirms guidance for FY24 (Dec) EPS of $4.80-4.90 vs. $4.87 FactSet Consensus in presentation

• General News
  • Governments issue statements on Iran attack on Israel
  • Israel vowed to "exact a price" from Iran following missile strikes, but they are still discussing options. President Biden told Israel that the US would not participate in any offensive operations against Iran, according to CNN
  • Hamas rejected ceasefire proposal, according to Reuters
  • Donald Trump leads President Biden 46-45%, but Mr. Trump lead by 5 points in February. Nearly 80% of voters rate the nation's economic conditions as fair or poor, according to the New York Times
  • House Speaker Mike Johnson received a lifeline of support from former President Trump amid threats from Rep. Marjorie Taylor Greene to remove him, according to the New York Times
  • Former President Trump signaled he is open to Republicans approving Ukraine aid in form of a loan. Democrats also support this, according to The Hill
  • PBOC keeps medium term lending rate unchanged at 2.5%
  • Iran seized container ship in near the Strait of Hormuz, according to Bloomberg
  • US has imposed sanctions on use of Russian metals on exchanges, according to Bloomberg
  • Bitcoin "halving" will impact miners by $10 bln, according to Bloomberg
  • IDC says worldwide smartphone market up 7.8% in the first quarter of 2024 as Samsung (SSNLF) moves back into the top position
  • Germany vies for Chinese support to pressure Russia into peace talks with Ukraine, according to WSJ
  • Follow up: Israel’s military chief Lt. Gen. Herzi Halevi says Israel will respond to Iran, but did not say how they will respond, according to AP
  • White House comes out against standalone Israel support bill that House will vote on this week because it doesn't include funding for Ukraine - CNN
  • i-80 Gold (IAUX) Announces High-Grade Results from Underground Drilling at Cove
  • Abbott Labs (ABT): Recalls HeartMate II and HeartMate 3 left ventricular assist systemdue to long-term buildup causing an obstruction
  • Accenture (ACN) enters into an agreement to acquire Cognosante, a provider of digital transformation and cloud modernization solutions for federal health, defense, intelligence, and civilian agencies; financial terms were not disclosed
  • Adobe (ADBE) previews breakthrough AI innovations to advance professional video workflows within Adobe Premiere Pro
  • Air Products (APD) receives funding from the Ministry of Economic Affairs, Industry, Climate Protection and Energy of the State of North Rhine-Westphalia to build two high-capacity, publicly accessible, low-carbon Hydrogen Refueling Stations in Duisburg and Meckenheim
  • Alphabet (GOOG) says California Journalism Preservation Act is putting support of the news ecosystem at risk
  • Alphabet (GOOG): Japan preparing antitrust case against Google over search advertising, according to Nikkei
  • American Airlines (AAL) pilots are concerned about a "significant spike" in safety issues, according to Bloomberg
  • American Express (AXP) reports March card metrics
  • Aon (AON) increases quarterly cash dividend 10% to $0.675/share from $0.615/share
  • Appian (APPN) has signed a Strategic Collaboration Agreement with Amazon Web Services to make generative artificial intelligence more accessible to enterprise business processes
  • Blackbaud (BLKB) to review unsolicited proposal from Clearlake Capital Group to acquire all of the outstanding shares of Blackbaud for $80.00/share in cash
  • Bank of America (BAC) reports March card metrics (36.36 +0.56)
  • Biohaven (BHVN) Showcases Innovative Neuroscience Portfolio with 20 Presentations at the 2024 American Academy of Neurology (AAN) Annual Meeting and Provides Other Business Updates
  • Canadian Solar's (CSIQ) Recurrent Energy secures 343 million Brazilian reais financing for 152 MW solar project in Brazil
  • Canopy Growth (CGC) shareholders approve the creation of a new class of Exchangeable Shares of Canopy Growth
  • CME Group (CME) reports international ADV reached quarterly record of 7.4 million contracts in Q1
  • Coinbase Global (COIN) files for appeal in SEC case
  • Construction Partners (ROAD) announces $40 mln share repurchase authorization
  • Customers Bancorp (CUBI) promotes Philip Watkins to CFO
  • CVRx (CVRX) announces availability of additional data supporting long-term benefits of Barostim
  • Eni S.p.A.'s (E) Versalis announces the closing completion of the acquisition of 100% of Tecnofilm S.p.A.
  • Eni S.p.A. (E) wants to unload stakes in biofuel & bioplastic divisions by the end of 2024, according to Reuters
  • Exact Sciences (EXAS) appoints Aaron Bloomer as new CFO
  • Fresenius Medical (FMS) unit announced the immediate U.S. availability of Tyenne (tocilizumab-aazg), a biosimilar of Roche's (RHHBY) Actemra (tocilizumab)
  • FirstEnergy (FE) Ohio electric companies have reached a settlement on their Grid Modernization II plan that will expand the deployment of smart meters to an additional 1.4 million customers in Ohio
  • Garmin (GRMN) announces expanded coverage of the Garmin Navigation Database to now include Europe
  • General Motors (GM) and Bedrock will study how to redevelop GM's headquarters in downtown Detroit, according to AP
  • Granite Real Estate (GRP.U) to propose an internal reorganization that would simplify Granite’s capital structure by replacing its current Stapled Unit structure with a conventional REIT trust unit structure
  • Innate Pharma (IPHA) Announces Advancement of Sanofi (SNY)-developed NK Cell Engager SAR443579 / IPH6101 Progressing to Phase 2 for Blood Cancer Patients
  • Intercontinental Hotels Group (IHG) and NOVUM Hospitality sign agreement that doubles IHG’s hotel presence in Germany
  • Invivyd (IVVD) announces that the U.S. Centers for Medicare & Medicaid Services has granted a Healthcare Common Procedure Coding System Q code (Q0224) covering product reimbursement for PEMGARDA
  • JPMorgan Chase (JPM) reports March card metrics
  • KBR (KBR) signed an alliance agreement with GeoLith SAS to offer its advanced Direct Lithium Extraction technology, Li-Capt
  • L3Harris (LHX)  received a $256 mln order from the U.S. Army for continued production of the Enhanced Night Vision Goggle – Binocular
  • Lockheed Martin (LMT)  awarded $17 bln contract, according to Reuters
  • Longboard Pharmaceuticals (LBPH) releases poster presentation on its results of the Phase 1b/2a PACIFIC study
  • Marinus Pharmaceuticals (MRNS) provides update on the phase 3 raise trial and reports preliminary Q1 results
  • Marex Group plc (to be MRX) launches 15.38 mln share IPO, expected to price between $18-$21/share
  • Mastercard (MA): Supreme Court denied request to review class certification in a case involving MA and Visa (V), according to Bloomberg
  • Mereo BioPharma (MREO) entered into an extension letter to the cooperation agreement with Rubric Capital Management
  • MGM Resorts (MGM) files lawsuit against FTC over its investigation of September 2023 cyber attack, according to Las Vegas Review Journal
  • Microsoft (MSFT): OpenAI Chief Executive Sam Altman pitched ChapGPT enterprise products to some Microsoft customers, according to Reuters
  • Moller Maersk (AMKBY): FBI opens criminal investigation into Francis Scott Key Bridge collapse focusing on the container ship, according to the Washington Post
  • New York Community (NYCB) names Craig Gifford as CFO
  • Neumora Therapeutics (NMRA) announces Clinical Hold of Phase 1 NMRA-266 Study
  • Nokia (NOK) and SURF reach 800Gb/s transmission on existing fiber to prepare for massive upgrade to CERN's Large Hadron Collider
  • Norfolk Southern (NSC): Ancora releases presentation containing its slate’s plan for implementing and running a PSR-powered scheduled network at Norfolk Southern
  • Novartis AG (NVS) presented new Fabhalta (iptacopan) data showing clinically meaningful and statistically significant proteinuria reduction of 38.3% versus placebo for patients with IgA nephropathy (IgAN)
  • Novartis AG (NVS) received FDA approval for ENTRESTO
  • Novavax (NVAX): Shah Capital nominates two highly qualified independent director candidates for Novavax
  • Ocular Therapeutix (OCUL) Executive Chairman Pravin Dugel, MD becomes President and CEO Antony Mattessich is stepping down as President and CEO
  • OraSure (OSUR) reports cybersecurity incident; also reaffirms Q1 revenue guidance
  • Piedmont Lithium (PLL) receives mining permit approval for Carolina Lithium
  • Roche Holdings (RHHBY): Genentech’s Columvi Meets Primary Endpoint of Overall Survival in People With Relapsed or Refractory Diffuse Large B-Cell Lymphoma in Phase III STARGLO Study
  • Samsung (SSNLF): Statement from President Joe Biden on CHIPS and Science Act preliminary agreement with SSNLF
  • SLB (SLB) awarded three completion contracts for Petrobas (PBR) Buzios Field
  • Tapestry (TPR) provides Capri (CPRI) update; the only outstanding antitrust regulatory approval or clearance for the Transaction is in the United States
  • TELA Bio (TELA) Announces U.S. Commercial Launch of Robotic-Compatible OviTex® IHR – Addressing the Need for a More Natural Repair in Inguinal Hernia Procedures
  • Tesla (TSLA) to eliminate more than 10% of global workforce, according to Electrek
  • Tesla (TSLA) lowers Full Self-Driving capability subscription price to $99.00 from $199.00
  • Tesla (TSLA) scouting out locations for first India showroom, according to Reuters
  • TG Therapeutics (TGTX) announces presentation of data for BRIUMVI in multiple sclerosis at the American Academy of Neurology 2024 Annual Meeting
  • Trump Media & Technology Group Corp. (DJT) first auditor resigned after a few months, according to Financial Times
  • Ultragenyx Pharma (RARE) announces new data from the Phase 1/2 study of GTX-102 for the treatment of Angelman syndrome
  • Wabtec (WAB) and Siemens AG (SIEGY) seen as potential bidders for Alstom's (ALSMY) rail signal unit, according to Bloomberg
  • ZipRecruiter (ZIP) COO Qasim Saifee to resign, effective April 30

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

• Upgrades:
  • Adidas AG (ADDYY) upgraded to Overweight from Underweight at Morgan Stanley
  • BRF SA (BRFS) upgraded to Overweight from Neutral at JP Morgan
  • Churchill Downs (CHDN) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $141
  • Cisco (CSCO) upgraded to Buy from Neutral at BofA Securities; tgt raised to $60
  • Coupang (CPNG) upgraded to Buy from Neutral at Citigroup; tgt raised to $26
  • Extreme Networks (EXTR) upgraded to Buy from Neutral at B. Riley Securities; tgt $14
  • Frontier Communications Parent (FYBR) upgraded to Buy from Neutral at Citigroup; tgt raised to $30
  • Gerdau S.A. (GGB) upgraded to Overweight from Neutral at JP Morgan
  • Integer Holdings (ITGR) upgraded to Buy from Neutral at BofA Securities; tgt raised to $135
• Downgrades:
  • AvidXchange (AVDX) downgraded to Sell from Neutral at Goldman; tgt lowered to $11.50
  • BASF AG (BASFY) downgraded to Underperform from Neutral at Exane BNP Paribas
  • Brunswick (BC) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt lowered to $82
  • CRH Plc. (CRH) downgraded to Hold from Buy at Stifel; tgt raised to $82
• Others:
  • 4D Molecular Therapeutics (FDMT) initiated with an Overweight at Barclays; tgt $459
  • AppLovin (APP) initiated with a Neutral at Daiwa Securities; tgt $80
  • Astera Labs (ALAB) initiated with a Buy at Needham; tgt $85
  • Astera Labs (ALAB) initiated with a Buy at Stifel; tgt $81
  • Astera Labs (ALAB) initiated with a Buy at ROTH MKM; tgt $85
  • Astera Labs (ALAB) initiated with an Overweight at JP Morgan; tgt $85
  • Astera Labs (ALAB) initiated with an Overweight at Morgan Stanley; tgt $81
  • Astera Labs (ALAB) initiated with an Overweight at Barclays; tgt $85
  • Astera Labs (ALAB) initiated with a Buy at Deutsche Bank; tgt $85
  • BYD Company (BYDDY) resumed with an Outperform at Macquarie
  • CAVA Group (CAVA) initiated with an Equal Weight at Barclays; tgt $58
  • Coty (COTY) initiated with a Buy at Canaccord Genuity; tgt $14
  • Cullinan Management (CGEM) initiated with an Outperform at William Blair
  • enGene Holdings (ENGN) initiated with a Buy at Guggenheim; tgt $34
  • Citigroup opened 30-day Positive Catalyst Watch on Equifax (EFX)
  • GE Vernova (GEV) initiated with a Buy at Mizuho; tgt $154
  • Hilton Grand Vacations (HGV) initiated with an Overweight at JP Morgan; tgt $59
  • Immunome (IMNM) initiated with a Buy at Guggenheim; tgt $35
  • Janus International Group (JBI) initiated with a Buy at Jefferies; tgt $20

• Econ Data (Tuesday):
  • 8:30 ET: March Housing Starts (Briefing.com consensus 1.485 mln; prior 1.521 mln) and Building Permits (Briefing.com consensus 1.518 mln; prior 1.518 mln)
  • 9:15 ET: March Industrial Production (Briefing.com consensus 0.4%; prior 0.1%) and Capacity Utilization (Briefing.com consensus 78.6%; prior 78.3%)
• Earnings:
  • Monday (Apr 15)
    • Pre-Market: SCHW GS MTB
    • After-Hours: None
  • Tuesday (Apr 16)
    • Pre-Market: BAC BK CBSH ERIC JNJ MS NTRS PNC UNH
    • After-Hours: FULT HWC IBKR JBHT OMC UAL
  • Wednesday (Apr 17)
    • Pre-Market: ABT ASML BKU CFG FHN PLD TRV USB
    • After-Hours: AA OZK BDN CNS CCI CSX DFS EFX FNB FR KMI LVS LBRT REXR SLG SNV WTFC
  • Thursday (Apr 18)
    • Pre-Market: ALK ALLY APOG BMI BHLB BX CMA DHI ELV GPC HOMB IRDM KEY MAN MMC NOK OFG SNA TCBI TSM
    • After-Hours: GBCI NFLX PPG PFS WAL
  • Friday (Apr 19)
    • Pre-Market: AXP FITB HBAN PG RF SLB
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike