After Hours Report

The stock market was trading up in the early going, benefitting from a solid gain in NVIDIA (NVDA 130.78, -4.80, -3.5%). Shares had been up as much as 3.8% earlier, propelling the S&P 500 past the 5,500 level for the first time. The Nasdaq Composite was up as much as 0.4%, but closed with a 0.8% decline.

The major indices hit session lows as NVDA shares turned negative for the day. Declines in some other heavily-weighted names also had an outsized impact on index performance. Apple (AAPL 209.68, -4.61, -2.2%), Broadcom (AVGO 1734.56, -67.96, -3.8%), and Microsoft (MSFT 445.70, -0.64, -0.1%) were standouts in that respect. 

Many stocks participated in the pullback, though, due to normal consolidation efforts after a solid run this month. Decliners led advancers by an 11-to-10 margin at the NYSE and by a 4-to-3 margin at the Nasdaq. 

Still, the Dow Jones Industrial Average settled 300 points higher despite the downside bias elsewhere. A nice gain in Salesforce (CRM 241.80, +9.99, +4.3%) contributed to the outperformance of the Dow. 

Some of the S&P 500 sectors also closed higher. The energy sector led the pack, jumping 1.9% amid rising oil prices ($81.34/bbl, +0.63, +0.8%). The utilities (+0.9%) and financials (+0.9%) sectors were the next best performers. 

The information technology sector was the worst performer, logging a 1.6% decline due to losses in its mega cap components. 

Rising market rates acted as another limiting factor today. The 2-yr note yield settled three basis points higher at 4.73% and the 10-yr note yield climbed four basis points to 4.25%.

• Nasdaq Composite: +18.1% YTD
• S&P 500:+14.8% YTD
• S&P Midcap 400: +5.0% YTD
• Dow Jones Industrial Average: +3.8% YTD
• Russell 2000: -0.5% YTD

Reviewing today's economic data: 

• Weekly initial jobless claims totaled 238,000 (Briefing.com consensus 237,000) following a revised count of 243,000 last week (from 242,000). Continuing claims came in at 1.828 million following last week's revised count of 1.813 million (from 1.820 million).
  • The key takeaway from the report is that jobless claims have moved up a notch from lower levels to connote some softening in the labor market.
• Housing starts totaled 1.277 million in May (Briefing.com consensus 1.385 million) following a revised count of 1.352 million in April (from 1.360 million). Building permits totaled 1.386 million in May (Briefing.com consensus 1.455 million) following a count of 1.440 million in April. 
  • The key takeaway from the report is that it suggests the housing market will remain subject to inventory constraints that will create affordability pressures, barring a stronger pickup in listings of existing homes for sale that has been tough to come by with mortgage rates remaining high.
• The Philadelphia Fed Index dropped to 1.3 in June (Briefing.com consensus 6.5) from 4.5 in May.
  • The key takeaway from the report is that the indexes for new orders, shipments, and employment all remained negative while the prices paid component increased from 18.7 to 22.5.
• The Q1 Current Account Balance widened to -$237.6 billion (Briefing.com consensus -$203.0 billion) from a downwardly revised $221.8 billion (from -$194.8 billion).
  • The key takeaway from the report is that the widening in the deficit mostly reflected an expanded deficit on goods.
• The weekly EIA Crude Oil Inventories showed a draw of 2.55 million barrels versus last week's build of 3.73 million barrels

Looking ahead, Friday's economic calendar includes:

• 9:45 ET: Flash June S&P Global U.S. Manufacturing PMI (prior 51.3) and flash June S&P Global U.S. Services PMI (prior 54.8)
• 10:00 ET: May Existing Home Sales (Briefing.com consensus 4.10 mln; prior 4.14 mln) and May Leading Indicators (Briefing.com consensus -0.3%; prior -0.6%)
• 10:30 ET: Weekly natural gas inventories (prior +75 bcf)

Overseas:

• Europe: DAX +1.0%, FTSE +0.8%, CAC +1.3%
• Asia: Nikkei +0.3%, Hang Seng -0.6%, Shanghai -0.4%

Commodities:

• Crude Oil +0.62 @ 81.35
• Nat Gas -0.17 @ 2.74
• Gold +22.20 @ 2369.00
• Silver +1.19 @ 30.79
• Copper +0.07 @ 4.56

After-Hours Spotlight:

• Asana (ASAN) approves up to $150 mln for stock repurchases; reiterates Q2 and FY25 guidance... ASAN up 3.3%
• Sarepta Therapeutics (SRPT) announces expanded FDA approval of ELEVIDYS to Duchenne Muscular Dystrophy patients... SRPT halted
• Smith & Wesson Brands (SWBI) beats by $0.10 (two ests), beats on revs (two ests); increases dividend... SWBI up 3.4%

Fair Value for Friday, June 21:

• S&P 500: 5,543
• Nasdaq 100: 20,033
• DJIA: 39,570

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

• Earnings/Guidance (Full Earnings Calendar):
  • Accenture (ACN) misses by $0.03, reports revs in-line; guides Q4 revs in-line; lowers FY24 EPS guidance; narrows FY24 revenue guidance
  • Advanced Micro (AMD) spokesperson says hacking incident will not have a large impact on its business, according to Bloomberg
  • Darden Restaurants (DRI) beats by $0.04, reports revs in-line, consolidated same-restaurant sales of 0.0%; guides FY25 EPS in-line, revs below consensus
  • Enviri Corporation (NVRI) provides 3 year financial targets ahead of analyst meeting
  • GMS (GMS) misses by $0.12, reports revs in-line
  • Harmony Gold (HMY) will meet annual production, grade, and cost guidance for FY24
  • Jabil (JBL) beats by $0.04, beats on revs; guides AugQ EPS in-line, revs in-line
  • KB Home (KBH) beats by $0.35, beats on revs, raises low end of FY24 housing revenue guidance
  • Kroger (KR) beats by $0.08, reports revs in-line; reaffirms FY25 EPS guidance; co pauses its share repurchase program
  • Main Street Capital (MAIN) releases Investor Day presentation; expects to make a recommendation that Board declare "meaningful" supplemental dividend payable in September 2024
  • MKS Instruments (MKSI) provides long term guidance in slide presentation
  • Steelcase (SCS) beats by $0.06, reports revs in-line; guides Q2 EPS above consensus, revs in-line
  • TEN, Ltd. (TNP) reports profits for the first quarter 2024 and sets date for first common share semi-annual dividend of $0.60
  • Winnebago (WGO) misses by $0.18, misses on revs
• General News
  • Israel warns Hezbollah in Lebanon of the prospect of "all out war", according to CNN
  • Russian President Putin and North Korean leader Kim Jong-un revived mutual defense pledge, according to the New York Times
  • Car dealerships halt operations following cyberattack at CDK Global, according to Bloomberg
  • 30 year mortgage rates fall below 7%
  • Bank of England bank rate maintained at 5.25%
  • World Health Organization issues warning on falsified medicines used for diabetes treatment and weight loss
  • Supreme Court upholds 2017 tax law regarding foreign profits of US owned businesses
  • AAA says nearly 71 million people expected to travel over July 4th week, up 5% yr/yr; 60.6 mln by car; 5.74 mln by air; 4.62 mln by other methods
  • White House releases remarks by National Economic Advisor Lael Brainard on lowering costs for american consumers
  • 10x Genomics (TXG) starts shipping its new Xenium Prime 5K Pan-Tissue and Pathways panel; new 5,000-plex gene panel increases plex by an order of magnitude and delivers industry-leading speed and throughput
  • AbbVie (ABBV) receives FDA approval for SKYRIZI
  • Accuray (ARAY) signs deal with TrueNorth to provide radiation oncology support
  • Advanced Health Intelligence (AHI) received guidelines from the Australian Securities Exchange (ASX) stating that the co's securities will be reinstated to trading on the ASX
  • Advanced Micro (AMD) investigates claim from cybercriminal organization that it stole information in a hack, according to Bloomberg
  • Agnico Eagle (AEM) Releases Detour Lake proposed underground mining plan demonstrating strong returns and pathway to annual gold production of one million ounces
  • Amazon (AMZN) plans to invest EUR 10 billion in Germany, driving innovation and jobs across the country
  • Apple (AAPL): Hacker claims breach of Apple source code, according to Forbes
  • AstraZeneca (AZN) reports Truqap plus Faslodex approved in the EU for patients with advanced ER-positive breast cancer
  • AssetMark (AMK) to enter strategic alliance with Morningstar Wealth, acquire assets from TAMP Business
  • atai Life Sciences N.V. (ATAI) announces update on Beckley Psytech’s Phase 1/2a trial of ELE-101 (IV Psilocin) for major depressive disorder, with initial results from phase 1 and first patients dosed in phase 2a
  • AutoZone (AZO) authorizes additional stock repurchase
  • B2Gold (BTG) announces positive preliminary economic assessment results for the Gramalote Project; after-tax NPV (5%) of $778 million with an after-tax IRR of 20.6%
  • Barrick (GOLD) provides detailed response to unsubstantiated UN human rights allegations
  • BMW Group (BMWYY) ends contract with Northvolt, according to Handelsblatt
  • Boeing (BA) awarded $212 mln U.S. Navy contract under previously awarded basic ordering agreement
  • Boeing (BA): Pilots warn that smoke could enter cabin if Boeing 737 Max jets hit birds, according to CNN
  • Boeing (BA) 737 Max crash victims want $25 bln fine, according to Bloomberg
  • Boeing (BA) 737 engine fire resulted in emergency landing in India, according to Fox Business
  • Cisco (CSCO) announces a partnership with the LA28 Olympic and Paralympic Games and Team USA to serve as the Official Network Equipment Partner
  • Comcast (CMCSA): MoviePass announces an investment from Forecast Labs, a consumer venture group within Comcast NBCUniversal
  • Community Health Systems, Inc. (CYH) Provides Update Regarding Lake Norman Regional Medical Center and Davis Regional Psychiatric Hospital
  • Evotec SE (EVO) speaking with advisors as decline in share price prompts talk of takeover, according to Bloomberg
  • Euroseas (ESEA) entered into a time charter contract for M/V Pepi Star
  • Dell (DELL): Elon Musk says "To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building"
  • Dexcom (DXCM) showcases extensive clinical data at ADA 2024 demonstrating the benefit of dexcom CGM use among people with type 2 diabetes
  • Exxon Mobil (XOM) Director Dreyfus bought 18,310 shares worth approx. $2 mln
  • Fortrea (FTRE) to further reduce term loans prior to the end of Q2; estimates will have $1,142 mln of debt as of June 30, 2024
  • Fortuna (FSM) intersects 23.7 g/t gold over 17.8 meters from the Kingfisher Prospect at the Séguéla Mine
  • Fox (FOX) and The Trade Desk (TTD) announce extensive advertising integrations across Fox portfolio
  • GE (GE) announces intention to delist from London Stock Exchange
  • GE HealthCare (GEHC) and MediView XR announce the successful first installation and clinical cases using the OmnifyXR Interventional Suite at North Star Vascular and Interventional in Minneapolis, Minnesota
  • Gilead Sciences (GILD): Phase 3 PURPOSE 1 trial for twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, demonstrated 100% efficacy for HIV prevention in cisgender women
  • GlobalFoundries (GFS) and Bae Systems (BAESY) announce a new collaboration to strengthen the supply of critical semiconductors for national security programs
  • Golden Matrix Group (GMGI) subsidiary Meridianbet Group has been granted a sports-betting license in South Africa
  • GXO Logistics (GXO) is conducting an early-stage proof-of-concept program in partnership with robot manufacturer Apptronik
  • Haemonetics (HAE) launches limited market release of its new VASCADE MVP XL mid-bore venous closure device
  • Harrow (HROW) provides TRIESENCE relaunch update
  • HEICO (HEI) increases cash dividend by 10%
  • Hyundai Motor Group (HYMTF) powers up robotic services at smart office building in Seoul
  • ImmunityBio (IBRX) announces the initial treatment of multiple patients in the United States to receive therapy with ANKTIVA, ImmunityBio’s recently approved immunotherapy for Bacillus Calmette-Guérin-unresponsive non-muscle invasive bladder cancer carcinoma in situ
  • Johnson & Johnson (JNJ): Law firm group issues press release - advising clients to oppose third bankruptcy attempt by J&J
  • Kyverna Therapeutics' (KYTX) KYV-101 receives U.S. FDA IND clearance for treatment of patients with treatment-refractory stiff-person syndrome in the KYSA-8 Phase 2 Trial
  • LendingTree (TREE) promotes Jason Bengel to CFO, following departure of Trent Ziegler, effective Aug 9; co raises Q2 revenue guidance
  • Lexicon Pharma (LXRX): Data From Lexicon’s RELIEF-DPN 1 Phase 2 Study of LX9211 Published Today in Diabetes Care, a Peer-Reviewed Journal of the American Diabetes Association
  • Lockheed Martin (LMT) selected by NASA to build next-gen spacecraft for NOAA; cost-plus-award-fee contract is valued at approximately $2.27 bln
  • Mercury (MRCY) completes second phase of its strategic reorganization, consolidating two divisions
  • Meta Platforms (META): Tests show that Instagram has been recommending sexual videos to 13 year old users, according to the Wall Street Journal
  • MindMed (MNMD) Announces Constructive End-of-Phase 2 Meeting with U.S. FDA for MM120 in Generalized Anxiety Disorder
  • MorphoSys (MOR) and Novartis Sign Delisting Agreement and Intend to Implement a Merger Squeeze-out of MorphoSys’ Minority Shareholders
  • Nasdaq (NDAQ) increasing oversight of small IPOs from China and Hong Kong, according to Bloomberg
  • Netflix House (NFLX) will let you experience your favorite shows, movies in real life; The first two locations will be in Dallas and King of Prussia, Pennsylvania
  • Neumora Therapeutics (NMRA) announces the initiation of a Phase 1b study evaluating NMRA-511 for the treatment of agitation associated with dementia due to Alzheimer’s disease
  • Nextracker (NXT) acquires Ojjo in an all-cash transaction for approximately $119 million
  • Norfolk Southern announces public tariff update NSRQ 65720, effective 8.9.2024
  • Northrop Grumman (NOC): B-21 remains on track to meet key performance parameter for APUC of $550 mln in base year 2010 dollars
  • Nuvei (NVEI) obtains final court approval for going private transaction with Advent
  • onsemi (ON) Selects the Czech Republic to Establish End-to-End Silicon Carbide Production for Advanced Power Semiconductors
  • Oracle (ORCL) to invest more than $1 billion in AI and cloud computing in Spain
  • Palantir Technologies (PLTR) has been selected by the Advanced Research Projects Agency for Health (ARPA-H) to support the agency’s mission to accelerate better health outcomes
  • Pennant Group (PNTG) enters into a management and consulting services agreement to provide operational support to Hartford HealthCare at Home
  • Petrobras (PBR) provides information about FPSO Maria Quitéria; also signs Protocol of Intentions with the Government of Rio de Janeiro
  • Philips (PHG) completes cancellation of 4.4 million shares
  • Piedmont Lithium (PLL) announced that additional high-grade drill results at North American Lithium in Quebec continue to demonstrate the potential for a significant upgrade to the mineral resource estimate
  • Plug Power (PLUG) secured industry certification for its one MW high-powered stationary syste
  • PTC Therapeutics (PTCT): interim PIVOT-HD results demonstrate evidence of favorable CNS biomarker and clinical effects at month 12 in Huntington's Disease patients
  • Raymond James (RJF) reports May 2024 Operating Data
  • Sasol (SSL): High court awards damages to Sasol against Transnet
  • Scilex Holding (SCLX)  announces that in anticipation of selling our commercially available products to new and current special customers, Scilex has entered into a non-exclusive distribution agreement with a well-known and highly respected distributor with over 10 years of sales excellence, Endeavor Distribution LLC
  • Silence Therapeutics (SLN) Announces Positive Topline 48-Week Data from Phase 2 Study of Zerlasiran in Patients with Elevated Lipoprotein(a)
  • Snapchat (SNAP) reached $15 mln settlement with SnapChat for alleged sexual discrimination, according to Politico
  • SoundHound (SOUN) AI announces the acquisition of key assets from Allset, an online ordering platform that connects restaurants and local customers; financial terms were not disclosed
  • Sun Country Airlines (SNCY) signs an Amended and Restated Air Transport Services Agreement with Amazon (AMZN), extending the contract through 2030 with options to further extend the terms through 2037
  • Tandem Diabetes Care (TNDM) and Dexcom (DXCM) amended and restated development agreement to the original development agreement
  • Target (TGT) to roll out transformative GenAI technology to its store team members chainwide
  • Telecom Argentina (TEO) provided ENACOM litigation update
  • Tempest (TPST) to Report New Data from Global Randomized Combination Study of Amezalpat (TPST-1120) in First-Line Hepatocellular Carcinoma
  • Toyota Motor (TM) resolutions adopted at Shareholders’ Meeting
  • Toyota (TM) halted 6 production lines at 5 plants in Japan amid shortages of parts, according to Reuters
  • Tradeweb Markets (TW) announces organizational changes; President Thomas Pluta to leave the company as part of organizational changes
  • Transportadora de Gas del Sur (TGS) submitted to the Argentine Ministry of Economy an investment proposal as a Private Initiative
  • Trump Media & Technology Group Corp. (DJT) announces SEC effectiveness of amended Form S-1, originally filed on April 15, 2024
  • Tutor Perini (TPC) announces that its subsidiary, Lunda Construction Company, has been awarded a project by the City of St. Paul, Minnesota, valued at ~$53.6 mln for the Kellogg/3rd Street Bridge Replacement Project
  • UBS AG (UBS): FINMA concludes control procedure related to merger with Credit Suisse
  • Udemy (UDMY) announces the expansion of its Badging and Certification preparation offering, making it available to all learners through its Personal Plan subscription
  • Vale S.A. (VALE) provides update on Salobo 3 plant operations
  • Virgin Galactic (SPCE) announced a new contract with the International Institute for Astronautical Sciences to fly three research astronauts as part of a future crew aboard the Company’s Delta Class spaceship
  • Vizsla Silver (VZLA) announces effective date of Vizsla Royalties Spinout
  • Vuzix (VUZI) and Avegant Announce Strategic Partnership to Develop Optimized Optical Modules for AI-Enabled Smart Glasses
  • WD-40 (WDFC) non-executive chair Gregory A. Sandfort to retire, effective December 12; Eric P. Etchart named successor
  • Zeta Global (ZETA) Announces Expanded Functionality from Zeta Opportunity Engine Leveraging Amazon Bedrock

Ratings Changes (see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Bilibili (BILI) upgraded to Overweight from Neutral at JP Morgan; tgt $21
  • Bread Financial (BFH) upgraded to In-line from Underperform at Evercore ISI; tgt raised to $45
  • dLocal Limited (DLO) upgraded to Neutral from Sell at UBS; tgt lowered to $9
  • iRhythm (IRTC) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $115
  • Ocular Therapeutix (OCUL) upgraded to Buy from Hold at TD Cowen; tgt raised to $11
  • TransUnion (TRU) upgraded to Buy from Neutral at BofA Securities; tgt $92
• Downgrades:
  • Esperion Therapeutics (ESPR) downgraded to Underperform from Neutral at BofA Securities; tgt $2.50
  • Prelude Therapeutics (PRLD) downgraded to Underweight from Equal Weight at Barclays; tgt $3
  • Spirit Aerosystems (SPR) downgraded to Hold from Buy at The Benchmark Company
  • Zentalis Pharma (ZNTL) downgraded to Neutral from Buy at UBS; tgt lowered to $5
• Others:
  • Cardlytics (CDLX) resumed with a Neutral at BofA Securities; tgt $11
  • ESAB Corp. (ESAB) initiated with an Outperform at Oppenheimer; tgt $115
  • Life360 (LIF) initiated with a Mkt Outperform at JMP Securities; tgt $38
  • MKS Instruments (MKSI) resumed with a Hold at Deutsche Bank; tgt $140
  • Samsara (IOT) initiated with a Buy at BofA Securities; tgt $37
  • Vericel (VCEL) initiated with a Buy at TD Cowen; tgt $55
  • Vodafone PLC (VOD) resumed with a Buy at Deutsche Bank

• Econ Data (Friday):
  • 9:45 ET: Flash June S&P Global U.S. Manufacturing PMI (prior 51.3) and flash June S&P Global U.S. Services PMI (prior 54.8)
  • 10:00 ET: May Existing Home Sales (Briefing.com consensus 4.10 mln; prior 4.14 mln) and May Leading Indicators (Briefing.com consensus -0.3%; prior -0.6%)
  • 10:30 ET: Weekly natural gas inventories (prior +75 bcf)
• Earnings:
  • Monday (June 17)
    • Pre-Market: None
    • After-Hours: LZB LEN
  • Tuesday (June 18)
    • Pre-Market: CRMT CGNT PDCO
    • After-Hours: KBH
  • Wednesday (June 19)
    • Pre-Market: None
    • After-Hours: SCS
  • Thursday (June 20)
    • Pre-Market: ACN CMC DRI GMS JBL KR WGO
    • After-Hours: SWBI
  • Friday (June 21)
    • Pre-Market: KMX FDS
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike