After Hours Report

The S&P 500 (-1.4%), Russell 2000 (-1.1%), and Nasdaq Composite (-2.8%) exhibited some consolidation today after recent gains. Mega cap stocks and chipmakers, which have been influential winners all year, registered outsized declines today and weighed on the broader market. 

NVIDIA (NVDA 117.99, -8.37, -6.6%), Meta Platforms (META 461.99, -27.80, -5.7%), Apple (AAPL 228.88, -5.94, -2.5%), and Broadcom (AVGO 155.98, -13.39, -7.9%) were among the standouts in that respect. The Vanguard Mega Cap Growth ETF (MGK) declined 2.8% and the PHLX Semiconductor Index (SOX) slid 6.8%.

Semiconductor stocks were also reacting to a Bloomberg report that the Biden Administration is discussing tightening export restrictions to China even further. 

The price-weighed Dow Jones Industrial Average closed 0.6% higher, boosted by Johnson & Johnson (JNJ 156.58, +5.57, +3.7%) after its Q2 earnings report, and UnitedHealth (UNH 573.28, +24.41, +4.5%), which was upgraded at Jefferies to Buy from Hold after yesterday's sharp earnings-related gain.

Bank stocks also outperformed the rest of the market. The SPDR S&P Regional Bank ETF (KRE) jumped 1.2% and the SPDR S&P Bank ETF (KBE) closed 0.9% higher. The S&P 500 financial sector was among the top performers today, logging a 0.9% gain.

The activity in mega caps and chipmakers led the information technology (-3.7%) and communication services (-2.1%) sectors sharply lower.

The equity and bond markets didn't react much to the Fed's July Beige Book, which showed that economic activity maintained a slight to modest pace of growth in a majority of Districts this reporting cycle. The 2-yr note yield declined one basis point to 4.43% and the 10-yr note yield declined two basis points to 4.15%. This also followed a solid $13 billion 20-yr bond reopening.

• Nasdaq Composite: +19.9% YTD
• S&P 500: +17.2% YTD
• Russell 2000: +10.5% YTD
• S&P Midcap 400: +10.4% YTD
• Dow Jones Industrial Average: +9.3% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 3.9%; Prior -0.2%
• June Housing Starts 1.353 mln (Briefing.com consensus 1.310 mln); Prior was revised to 1.314 mln from 1.277 mln; June Building Permits 1.446 mln (Briefing.com consensus 1.391 mln); Prior was revised to 1.399 mln from 1.386 mln
  • The key takeaway from the report is that, while it might have been better than expected relative to consensus estimates, it was not a strong report nor a particularly encouraging report for an inventory-constrained housing market in need of lower-priced, single-family homes.
• June Industrial Production 0.6% (Briefing.com consensus 0.3%); Prior was revised to 0.9% from 0.7%; June Capacity Utilization 78.8% (Briefing.com consensus 78.6%); Prior was revised to 78.3% from 78.2%
  • The key takeaway from the report was the continued increase in manufacturing output, whic

Looking ahead to Thursday, market participants will receive the following economic data:

• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 225,000; prior 222,000), Continuing Claims (prior 1.852 mln), and July Philadelphia Fed survey (Briefing.com consensus 2.9; prior 1.3)
• 10:00 ET: June Leading Indicators (Briefing.com consensus -0.3%; prior -0.5%)
• 10:30 ET: Weekly natural gas inventories (prior +65 bcf)
• 16:00 ET: May Net Long-Term TIC Flows (prior $123.1 bln)

Overseas:

• Europe: DAX -0.4%, FTSE +0.3%, CAC -0.1%
• Asia: Nikkei -0.3%, Hang Seng +0.1%, Shanghai -0.5%

Commodities:

• Crude Oil +2.22 @ 82.84
• Nat Gas -0.12 @ 2.08
• Gold -7.00 @ 2460.40
• Silver -1.04 @ 30.41
• Copper -0.05 @ 4.41

After-Hours Spotlight:

• Beyond Meat (BYND) lower after hours on report that co engages bondholders for restructuring talks according to CNBC citing WSJ... BYND down 14.2%
• Darden Restaurants (DRI) and Chuy Holdings (CHUY) enter into definitive agreement in which Darden will acquire Chuy's for $37.50/share in all-cash transaction... DRI down 1.1%; CHUY up 47.4%
• Discover Financial Services (DFS) beats by $2.98, beats on revs... DFS up 3.7%
• Kinder Morgan (KMI) reports Q2 (Jun) results, misses on revs; expects a 2% bump in 2024 dividends... KMI down 3.0%
• Leslie's (LESL) guides JunQ EPS and revs below consensus; co lowers FY24 EPS and revenue guidance... LESL down 16.7%
• Steel Dynamics (STLD) misses by $0.01, beats on revs; expects steel pricing to firm... STLD up 2.3%
• United Airlines (UAL) beats by $0.21, reports revs in-line, TRASM down 2.4%; reaffirms FY24 EPS guidance... UAL up 1.1%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Aehr Test Systems (AEHR) reports Q4 (May) results, beats on revs; guides FY25 revs above two analyst estimate; announces acquisition of Incal Technologies
  • Ally Financial (ALLY) beats by $0.33, misses on revs
  • Aris Mining Corporation (ARMN) reports 1H24 production; reiterates FY24 guidance
  • ASML (ASML) beats by €0.31, beats on revs; guides Q3 revs below consensus; reaffirms FY24 revs guidance
  • BHP Group (BHP) reports FY24 operational results
  • Citizens Financial Group (CFG) beats by $0.04, reports revs in-line
  • Elevance Health (ELV) beats by $0.12, reports revs in-line; reaffirms FY24 EPS guidance
  • Five Below (FIVE) lowers Q2 EPS and revenue guidance; now expects Q2 comps to be -7% to -6%
  • Fulton Fincl (FULT) beats by $0.39, beats on revs; provides FY24 outlook
  • Genmab (GMAB) reports Q2 net sales of DARZALEX totaled USD 2,878 million
  • Hancock Whitney (HWC) beats by $0.11, reports revs in-line; provides guidance in slides: expects adjusted noninterest income to be up +4-5% yr/yr
  • Interactive Brokers (IBKR) beats by $0.02, grows adjusted revs by 21%; customer accounts up 28%
  • J.B. Hunt Transport (JBHT) misses by $0.16, misses on revs
  • Johnson & Johnson (JNJ) beats by $0.11, reports revs in-line; lowers FY24 EPS below consensus, reaffirms FY24 revs guidance
  • Kronos Worldwide (KRO) also provides prelim Q2 results and updated full year outlook - expects sales volumes in 2024 to exceed 2023 sales volumes (halted)
  • Largo Resources (LGO) reports Q2 production of 2,689 tonnes and sales of 1,841 tonnes of vanadium pentoxide equivalent
  • Legend Biotech (LEGN) announces preliminary sales for CARVYKTI for the quarter ended June 30, 2024
  • Nabors Industries (NBR) sees Q2 revs below consensus
  • Omnicom (OMC) reports EPS in-line, revs in-line
  • Pinnacle Finl (PNFP) beats by $0.02, beats on revs
  • Prologis (PLD) beats by $0.01, beats on revs; raises core FFO guidance
  • Rockwell Automation announces that Christian Rothe will join the company as senior vice president and chief financial officer on Aug. 19
  • Spirit Airlines (SAVE) lowers its Q2 revenue outlook; reduces other targets
  • Synchrony Financial (SYF) beats by $0.20
  • Toronto-Dominion Bank (TD) comments on expected impact of the Charles Schwab Corporation's (SCHW) second quarter earnings
  • U.S. Bancorp (USB) beats by $0.03, reports revs in-line
  • Vale S.A. (VALE) reports Q2 production and sales
  • Vertex Energy (VTNR) provided operational update for second quarter 2024
  • WaFd, Inc. (WAFD) beats by $0.18, beats on revs
• General News
  • Former President Trump and Vice Presidential Nominee JD Vance believe US dollar should be weaker to increase exports, according to the New York Times
  • Former President Trump in interview says he will allow Fed Chairman Jerome Powell to finish his term and he would consider JP Morgan (JPM) CEO Jamie Dimon as Treasury Secretary if he wins the presidency, according to Bloomberg
  • President Biden is relaying on advice from his family as Democrats remain divided over his candidacy, according to the New York Times
  • President Biden considering using more severe trade restrictions on chip imports from China, according to Bloomberg
  • Former President Trump in interview says he will not support ban of TikTok, according to Bloomberg
  • Former President Trump in interview said that Taiwan should pay for its own defense, according to Bloomberg
  • 4DMT (FDMT) Announces Positive Phase 2 PRISM Interim Results for Intravitreal 4D-150 in a Broad Wet AMD Population Affirming Favorable Safety Profile and Robust Clinical Activity
  • Aclaris Therapeutics (ACRS) announces sale of OLUMIANT royalties and milestones to OMERS Life Sciences for up to $31.5 million
  • Adverum Biotechnologies (ADVM) Presents Positive Ixo-vec Clinical Data from the 26-Week Interim Analysis of the LUNA Phase 2 Trial at the 2024 ASRS Annual Meeting
  • Air Products (APD) announces two projects to enhance the sustainability, productivity, and operational flexibility of its base industrial gas business, as well as continuing commitment to the merchant industrial gas market
  • Allison Transmission (ALSN) provides more than 10,000 fully automatic transmissions for the Hyundai Mighty in four years
  • Alterity Therapeutics (ATHE) announces positive interim data from the ATH434-202 open-label Phase 2 clinical trial in patients with multiple system atrophy
  • Amazon (AMZN) marketing portal crashed, impacting Prime Day, according to Bloomberg
  • Amazon (AMZN): US online spending was $7.2 bln on first day of AMZN Prime Day, according to Reuters
  • Archer Aviation (ACHR) received approval from CAEATFA for its approx. $117 mln project covering the planned expansion of its advanced manufacturing facilities in the State of California
  • ASLAN Pharmaceuticals (ASLN) announces that its Singapore-incorporated, sole operating subsidiary, ASLAN Pharmaceuticals Pte Ltd, has filed for voluntary liquidation
  • AT&T (T): Two cities and a southern Louisiana parish have filed a proposed class action lawsuit against AT&T (T) and Lumen Technologies (LUMN), alleging that the companies failed to remove lead-wrapped telecommunications cables that have contaminated soil and groundwater in the region
  • Bayer AG (BAYRY) reports topline results for NUBEQA (darolutamide) from Phase III trial in men with metastatic hormone-sensitive prostate cancer
  • Bloom Energy (BE) announces strategic partnership with CoreWeave to meet the energy demands of the growing AI sector
  • Boeing (BA) provides NASA with second core stage of the Space Launch System rocket
  • Capital One (COF) announces five-year, $265 billion community benefits plan in connection with Discover (DFS) acquisition to advance economic opportunity and financial well-being
  • Cassava Sciences (SAVA) President/CEO Remi Barbier resigns - co is searching for a new permanent CEO and reviewing its disclosure practices
  • Chesapeake Utilitie's (CPK) subsidiary, Peninsula Pipeline company receives approval for new infrastructure to support three renewable natural gas projects in Florida
  • Cipher Mining (CIFR) follow up to report that company is considering sale
  • Daqo New Energy (DQ) announces that its subsidiary Xinjiang Daqo has provided an update on its litigation event
  • Discover Financial Services' (DFS) Discover Bank to sell its private student loan portfolio to one or more strategic partnerships comprised of investment vehicles and accounts managed by Carlyle (CG) and KKR (KKR) with Nelnet's (NNI) Firstmark Services assuming responsibility for servicing the portfolio upon the sale
  • Entain Plc's (GMVHY) BetMGM launch sports betting through Washington DC
  • FirstEnergy (FE) announces that it received the remaining $1.2 bln in proceeds from the $3.5 bln sale of a 30% ownership interest in its FirstEnergy Transmission subsidiary to Brookfield Super-Core Infrastructure Partners
  • Generac (GNRC) awarded a grant of up to $200 million over the five year term of the award agreement with the U.S. Department of Energy as part of the $1 billion Puerto Rico Energy Resilience Fund
  • Globus Medical (GMED) receives FDA 510(k) Clearance for ExcelsiusFlex and ACTIFY 3D total knee system
  • Golden Matrix Group's (GMGI) Board authorizes repurchase of up to a maximum of $5.0 mln of common stock
  • Grayscale Ethereum Trust (ETHE): Grayscale Investments provides update related to upcoming corporate action for Grayscale Ethereum Trust shareholders - has set a record date of July 18, 2024
  • Grindrod Shipping (GRIN) announces court approval in respect of the selective capital reduction
  • G. Willi Food (WILC) reached a settlement with the Israel Competition Authority to pay an administrative fine of NIS 11.6 million for alleged violations of the provisions of Food Sector Competition Promotion Law
  • Hercules Capital (HTGC): Pindrop secures $100 million in debt financing from Hercules Capital
  • HSBC Holdings (HSBC) announces that Georges Elhedery has been appointed as Group Chief Executive, with effect from 2 September 2024
  • Immutep (IMMP) received regulatory clearance from the ethics and competent authority in the Netherlands to initiate the first-in-human Phase I study of IMP761
  • InMode (INMD): Morpheus8 secures first and only FDA Clearance for Soft Tissue Contraction for Fractional Radiofrequency Microneedling
  • Instacart (CART) and Northwell Health announce a partnership through the Instacart Health initiative that leverages Instacart’s platform and products to expand access to nutritious food, inspire sustainable healthy choices, and scale food as health programs to reach diverse Northwell communities
  • Flotek Industries (FTK) announces that the EPA has designated the JP3 system as an approved measurement technology with respect to recently enacted flare regulations
  • Immutep (IMMP) received regulatory clearance from the ethics and competent authority in the Netherlands to initiate the first-in-human Phase I study of IMP761
  • Jacobs Solutions (J) files Form 10 Registration Statement for planned spin-off of Critical Mission Solutions and Cyber & Intelligence Businesses and Merger with Amentum
  • JPMorgan (JPM) Chase CEO Jamie Dimon in interview says that it would be "good" if the Fed waited to lower rates because there is a lot of reasons inflation could rise again, according to NZZ
  • Kronos Worldwide (KRO) acquired the 50% joint venture interest in Louisiana Pigment Company; cuts dividend (halted)
  • Lear (LEA) has completed its acquisition of WIP Industrial Automation, financial terms of the transaction were not disclosed
  • Leonardo DRS (DRS): Laurel Technologies Partnership awarded $417 U.S. Navy contract
  • Lockheed Martin (LMT) delivers first C-130J-30 Super Hercules to Ohio Youngstown Air Reserve Station
  • Micron (MU) unveils industry’s fastest 2230 Gen4 Consumer SSD, the Crucial P310, to accelerate handheld gaming, ultrathin laptops and mini PC
  • Microsoft (MSFT) and Google (GOOG, GOOGL), are helping China companies get around ban on Nvidia (NVDA) chips, according to The Information
  • Moderna (MRNA): EU issues statement by the Commission on the general court's judgments on the access to documents cases concerning the purchase agreements for COVID-19 vaccines
  • NANO Nuclear Energy (NNE) celebrates the signing of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act into law on July 9, 2024
  • ORIC Pharmaceuticals (ORIC) announces multiple clinical collaborations with strategic partners to support ongoing trial evaluating ORIC-944 in combination with AR Inhibitors for the Treatment of Prostate Cancer
  • Primoris Services (PRIM) announces several awards with a combined value of ~ $1.2 billion secured by the Company’s Energy Segment
  • Relay Therapeutics (RLAY) receives notice of termination of the collaboration agreement with Genentech, Inc. and F. Hoffmann-La Roche Ltd
  • Roche Hldg (RHHBY) reports Phase I results of its oral GLP-1 receptor agonist CT-996 for the treatment of people with obesity
  • Roche Hldg's (RHHBY) Genentech announces new, four-year data from the RHONE-X extension study
  • Ryder System (R): Teamsters at Ryder Truck Rental mechanics and service attendants in Salt Lake City voted unanimously to reject the company’s last, best, and final offer, terminate the contract extension, and authorize a strike
  • Sabre (SABR) and Air Canada announce the launch of Air Canada's full content via NDC in Sabre's travel marketplace
  • Starbucks (SBUX) and Mercedes (MBGYY) to install EV chargers at 100 Starbucks stores
  • Synopsys (SNPS) announces that Synopsys ARC HS4xFS Processor IP achieved ISO/SAE 21434 cybersecurity certification by SGS-T?V Saar, meeting stringent automotive regulatory requirements designed to protect connected vehicles from malicious cyberattacks
  • TotalEnergies (TTE) announces that its subsidiary TotalEnergies EP Nigeria signed a sale and purchase agreement with Chappal Energies for the sale of its 10% interest in the SPDC JV licenses in Nigeria
  • Triumph Group (TGI) announces its Geared Solutions business has been awarded a contract to provide the Auxiliary Gearbox from GE Aerospace (GE) for the F404 afterburning turbofan engine with potential future use on multiple applications, including the T7-A, T-50, and TAI Hurjet platforms
  • Tyson (TSN) CFO John Tyson pleaded not guilty to drunk driving, according to the Wall Street Journal
  • V2X (VVX) announces its award of a $141 million cost-plus-fixed-fee task order to continue providing comprehensive engineering support for Command, Control, Communications, Computer, and Intelligence systems
  • Vista Outdoor (VSTO): Gates Capital Management opposes VSTO proposed sale of the Kinetic Group to CSG
  • Wallbox (WBX) and ChargeLab announce a strategic partnership to streamline commercial EV charger deployments across North America
  • YPF Soc. Anonima (YPF) in discussions with Energy Pipeline (ET) to provide funding for pipeline in Argentina, according to Bloomberg

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

• Upgrades:
  • Adidas AG (ADDYY) upgraded to Outperform from Market Perform at Telsey Advisory Group
  • Core Scientific (CORZ) upgraded to Buy from Neutral at B. Riley Securities; tgt $13
  • Fluor (FLR) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $57
• Downgrades:
  • American Airlines (AAL) downgraded to Hold from Buy at TD Cowen; tgt lowered to $10
  • Assoc Banc-Corp (ASB) downgraded to Neutral from Outperform at Robert W. Baird; tgt $27
  • CenterPoint (CNP) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $29
  • Chevron (CVX) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $167
  • FB Financial (FBK) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $46
  • Five Below (FIVE) downgraded to Neutral from Outperform at Mizuho; tgt lowered to $85
  • Five Below (FIVE) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $113
  • Five Below (FIVE) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $90
  • Five Below (FIVE) downgraded to Hold from Buy at Truist; tgt lowered to $89
  • Five Below (FIVE) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $100
  • Five Below (FIVE) downgraded to Neutral from Buy at Citigroup; tgt lowered to $92
  • Five Below (FIVE) downgraded to Mkt Perform from Outperform at William Blair
• Others:
  • Axon (AXON) initiated with a Buy at Jefferies; tgt $385
  • Axon (AXON) initiated with a Buy at BofA Securities; tgt $380
  • Core Scientific (CORZ) initiated with an Overweight at Cantor Fitzgerald; tgt $20
  • CVR Energy (CVI) initiated with a Neutral at Mizuho; tgt $27
  • Fidelis Insurance Holdings Limited (FIHL) initiated with an In-line at Evercore ISI; tgt $19

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 225,000; prior 222,000), Continuing Claims (prior 1.852 mln), and July Philadelphia Fed survey (Briefing.com consensus 2.9; prior 1.3)
  • 10:00 ET: June Leading Indicators (Briefing.com consensus -0.3%; prior -0.5%)
  • 10:30 ET: Weekly natural gas inventories (prior +65 bcf)
  • 16:00 ET: May Net Long-Term TIC Flows (prior $123.1 bln)
• Earnings:
  • Monday (July 15)
    • Pre-Market: BLK GS
    • After-Hours: None
  • Tuesday (July 16)
    • Pre-Market: BAC MS PNC STT UNH
    • After-Hours: FULT HWC IBKR JBHT OMC PNFP
  • Wednesday (July 17)
    • Pre-Market: ALLY ASML CFG ELV FHN JNJ NTRS PLD SYF USB
    • After-Hours: AA OZK CNS CCI DFS EFX FNB FR HOMB KMI LBRT REXR SLG STLD SNV UAL WTFC
  • Thursday (July 18)
    • Pre-Market: ABT ALK BKU BHLB BX CTAS CBSH DHI DPZ HXL IIIN KEY MTB MAN MMC NOK NVS OFG SNA TCBI TSM TXT VIRT WNS
    • After-Hours: AIR GBCI ISRG NFLX PPG RGP WAL
  • Friday (July 19)
    • Pre-Market: AXP ALV BMI CMA EEFT FITB HAL HBAN RF SLB TRV
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike