After Hours Report
The S&P 500 (-0.8%), Nasdaq Composite (-0.7%), Dow Jones Industrial Average (-1.3%), and Russell 2000 (-1.9%) all closed near their worst levels of the session with solid losses. Decliners led advancers by a 7-to-2 margin at both the NYSE and at the Nasdaq.
Mixed action in the mega cap and semiconductor spaces contributed to mixed action at the index level in early trading. Ultimately, many stocks finished lower on the day or pulled back from early highs, including mega cap and semiconductor names. The Vanguard Mega Cap Growth ETF (MGK) closed 0.9% lower and the PHLX Semiconductor Index (SOX), which had been up as much as 1.9%, closed just 0.5% higher than yesterday.
Apple (AAPL 224.18, -4.70, -2.1%), Microsoft (MSFT 440.37, -3.15, -0.7%), and Amazon.com (AMZN 183.75, -4.17, -2.2%) were among the influential losers due to ongoing profit-taking activity.
Domino's Pizza (DPZ 409.04, -64.23, -13.6%) was another notable laggard, registering the steepest decline among S&P 500 components after reporting earnings. This price action, along with the decline in AMZN, contributed to the underperformance of the S&P 500 consumer discretionary sector (-1.3%).
A solid earnings-related gain in D.R. Horton (DHI 173.42, +16.91, +10.1%) and other homebuilder stocks provided some offsetting support in the consumer discretionary sector.
The health care (-2.3%) and financial (-1.3%) sectors were also among the top laggards. Meanwhile, the energy sector (+0.3%) was alone in positive territory by the close.
The 10-yr note yield settled four basis points higher at 4.19% and the 2-yr note yield settled three basis points higher at 4.46%. The bond and equity markets were little changed by this morning's release of a weekly jobless claims report that showed a sizable increase in initial claims.
- Nasdaq Composite: +19.1% YTD
- S&P 500: +16.2% YTD
- Russell 2000: +8.5% YTD
- S&P Midcap 400: +9.2% YTD
- Dow Jones Industrial Average: +7.9% YTD
Reviewing today's economic data:
- Weekly Initial Claims 243K (Briefing.com consensus 225K); Prior was revised to 223K from 222K; Weekly Continuing Claims 1.867 mln; Prior was revised to 1.847 mln from 1.852 mln
- The key takeaway from the report is that it fits with the view that there is some softening in the labor market, which is a trend that will massage the market's belief that the Fed is likely to cut the target range for the fed funds rate before the end of the year.
- July Philadelphia Fed Index 13.9 (Briefing.com consensus 2.9); Prior 1.3
- June Leading Indicators -0.2% (Briefing.com consensus -0.3%); Prior was revised to -0.4% from -0.5%
There is no US economic data on tomorrow's calendar.
Overseas:
- Europe: DAX -0.4%, FTSE +0.2%, CAC +0.2%
- Asia: Nikkei -2.5%, Hang Seng +0.2%, Shanghai +0.5%
Commodities:
- Crude Oil -0.13 @ 81.31
- Nat Gas +0.09 @ 2.17
- Gold -3.90 @ 2456.50
- Silver -0.17 @ 30.24
- Copper -0.13 @ 4.28
After-Hours Spotlight:
- Corsair Gaming (CRSR) guides Q2 revenue well below consensus; says the market for high-end self-built gaming PCs continues to be softer than expected... CRSR down 5.0%
- Intuitive Surgical (ISRG) beats by $0.24, beats on revs, da Vinci procedures grew approximately 17%... ISRG up 6.7%
- Netflix (NFLX) beats by $0.14, reports revs in-line; guides Q3 EPS above consensus, revs below consensus... NFLX down 0.4%
- PPG Industries (PPG) beats by $0.02, misses on revs; guides Q3 EPS below consensus; guides FY24 EPS below consensus... PPG down 2.8%
- Scholastic Corp (SCHL) misses by $0.93 (single est), misses on revs (single est); targets modest growth in FY25... SCHL down 8.8%
- Selective Insurance (SIGI) misses by $2.59, net premiums written increased 13%... SIGI down 7.3%
- Surgery Partners (SGRY) up +9% after private equity backer explores potential sale, according to Bloomberg... SGRY up 9.1%
Fair Value for Friday, July 19:
- S&P 500: 5,592
- Nasdaq 100: 19,895
- DJIA: 40,953
For a full rundown of today's market and after hours developments, see Live In Play
- Earnings/Guidance (Full Earnings Calendar):
- ABB (ABBNY) reports Q2 results; revs rise 1%; provides Q3 and FY24 outlook
- Abbott Labs (ABT) beats by $0.03, reports revs in-line; guides Q3 EPS in-line; raises FY24 EPS guidance
- Alaska Air (ALK) beats by $0.17, misses on revs; guides Q3 earnings below consensus; narrows FY24 EPS outlook
- Alcoa (AA) reports Q2 results in-line with last week's guidance
- Alight (ALIT) expects Q2 revenue and adjusted EBITDA results for the continuing business to be in-line with expectations set during the Q1 earnings call (hosting webcast today at 8:30 a,m, ET)
- Allstate (ALL) announced estimated catastrophe losses for the month of June of $230 million or $182 million, after-tax
- Anglo American (NGLOY) reports Q2 production/trading update
- Bank OZK (OZK) reports EPS in-line, revs in-line; approves $200 mln repurchase plan
- BankUnited (BKU) beats by $0.07, beats on revs
- Berkshire Hills Bancorp (BHLB) beats by $0.03
- Blackstone (BX) reports EPS in-line, beats on revs
- Capital Southwest Corp. (CSWC) announces prelim Q1 estimates; expects pre-tax net investment income of $0.68-0.69 per share
- Cintas (CTAS) beats by $0.20, reports revs in-line; guides FY25 EPS in-line, revs in-line
- Cohen & Steers (CNS) beats by $0.01, reports revs in-line
- Commerce Bancshares (CBSH) beats by $0.13, beats on revs
- Crown Castle (CCI) misses by $0.05, reports revs in-line; reaffirms FY24 FFO guidance
- Discover Financial Services (DFS) beats by $2.98, beats on revs
- Domino's Pizza (DPZ) beats by $0.35, reports revs in-line
- D.R. Horton (DHI) beats by $0.35, beats on revs; narrows FY24 guidance
- Equifax (EFX) beats by $0.08, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY24 EPS in-line, revs in-line
- First Industrial Realty (FR) beats by $0.02, reports revs in-line; guides FY24 FFO above consensus
- First Majestic Silver (AG) reported Q2 production
- F.N.B. Corp (FNB) misses by $0.01, misses on revs
- Forestar (FOR) misses on top and bottom lines; reaffirms FY24 revs guidance
- Hexcel (HXL) beats by $0.04, beats on revs; lowers FY24 EPS below consensus, revs in-line
- Home Bancshares (HOMB) beats by $0.03, beats on revs
- Infosys (INFY) reports Q1 EPS of $0.18 vs. $0.18 FactSet consensus; revs $4.714 bln vs. FactSet consensus $4.662 bln
- Insteel Industries (IIIN) misses by $0.09, misses on revs
- Invesco Mortgage Capital (IVR) is disclosing certain preliminary financial information for the quarter ended June 30, 2024
- KeyCorp (KEY) misses by $0.05, reports revs in-line
- Kinder Morgan (KMI) reports Q2 (Jun) results, misses on revs; expects a 2% bump in 2024 dividends
- Leslie's (LESL) guides JunQ EPS and revs below consensus; co lowers FY24 EPS and revenue guidance
- Liberty Energy (LBRT) beats by $0.04, reports revs in-line
- M&T Bank (MTB) beats by $0.22
- Manpower (MAN) beats by $0.03, reports revs in-line; guides Q3 EPS mostly below consensus
- Marsh McLennan (MMC) beats by $0.01, misses on revs
- Nokia (NOK) beats by EUR0.01, misses on revs; reaffirms outlook
- Novartis AG (NVS) beats by $0.12, beats on revs; reaffirms FY24 revs guidance
- Quanta Services (PWR) completed the acquisition of Cupertino Electric; estimated full-year 2025 adj EBITDA and adjusted diluted EPS contributions of approximately $175MM - $195MM and $0.40 - $0.50, respectively
- Rexford Industrial Realty (REXR) beats by $0.02, beats on revs; guides FY24 FFO below consensus
- SL Green Realty (SLG) beats by $0.46; guides FY24 FFO in-line
- Snap-On (SNA) beats by $0.14, misses on revs
- Steel Dynamics (STLD) misses by $0.01, beats on revs; expects steel pricing to firm
- Synovus (SNV) beats by $0.21, beats on revs; expects the low end of its FY24 adjusted revenue growth
- Taiwan Semiconductor Manufacturing (TSM) beats by $0.07, beats on revs; guides Q3 revs in-line
- Texas Capital (TCBI) misses by $0.06; issues FY24 guidance in slides, sees revenue growth of low-to-mid single-digits
- Textron (TXT) beats by $0.06, reports revs in-line; reaffirms FY24 EPS guidance
- United Airlines (UAL) beats by $0.21, reports revs in-line, TRASM down 2.4%; reaffirms FY24 EPS guidance
- Virtu Financial (VIRT) beats by $0.23, beats on revs
- Wintrust Fin (WTFC) misses by $0.10, reports revs in-line
- WNS (WNS) beats by $0.02, reports revs in-line; guides FY25 EPS in-line, revs in-line
- General News
- Fed officials suggested rate cut could come within a few months, according to the Wall Street Journal
- President Biden tested positive for COVID-19; He is vaccinated and boosted and he is experiencing mild symptoms; received his first dose of Paxlovid
- President Biden has become more receptive to arguments that he should exit the 2024 presidential race, but gave no induction that he is changing his mind about staying in the race, according to the New York Times
- Vice Presidential nominee JD Vance gave a hawkish speech towards China at the RNC and was critical of Wall Street, CNBC
- ACEA reports EU New car registrations: +4.3% in June 2024; battery electric 14.4% market share
- Several Top Democrats believe that President Biden will suspend his campaign as soon as this weekend, according to Axios
- Bloomberg reporter Jennifer Jacobs says "The Biden-Harris campaign is not working through any scenarios in which President Biden is not the top of the ticket, campaign manager Quentin Fulks tells reporters in Milwaukee"
- ECB policymakers debating if only one more interest rate cut is workable this year, according to Bloomberg
- Former President Obama reportedly thinks President Biden needs to consider campaign viability; thinks path to victory has diminished, according to WaPo
- Brazilian Animal Protein Association (ABPA) and the Gaúcha Poultry Association (ASGAV) confirmed that sample tested positive for the case of Newcastle Disease on a farm in the state
- 8x8 (EGHT) announced that Regal.io has joined the 8x8 Technology Partner Ecosystem
- ACADIA Pharmaceuticals (ACAD) announces that the journal Med published results from two open-label extension studies, LILAC-1 and LILAC-2, which showed that patients treated with DAYBUE™ who completed these studies experienced improvement in Rett symptoms as measured by the Rett Syndrome Behaviour Questionnaire
- ACI Worldwide (ACIW) Chief Product Officer Debbie Guerra to resign effective August 12
- Agenus (AGEN) announces end-of-phase-2 meeting outcomes and topline interim phase 2 data for BOT/BAL in MSS colorectal cancer
- Allegiant Travel (ALGT) is suspending its quarterly cash dividend effective immediately
- Allegiant Travel (ALGT) announces that Gregory C. Anderson has been named CEO and President of the Company succeeding Maurice J. Gallagher, who will be retiring from that role effective September 1
- Allison Transmission (ALSN) partners with BAE Systems (BAESY) to deliver next-gen transmission for future CV90 Programs
- Alphabet (GOOG): Italian Competition Authority announces investigation launched against Google for unfair commercial practices
- Alphabet (GOOG) is introducing the Coalition for Secure AI and founding member organizations
- Altria (MO): FDA authorizes marketing of Vuse alto tobacco-flavored e-cigarette pods and accompanying power unit
- Amazon (AMZN) announces record-breaking sales for 2024 Prime Day Event
- American States Water Company (AWR) announces a settlement agreement in its Water Utility General Rate Case
- Amkor (AMKR) and Infineon (IFNNY) sign Memorandum of Understanding to stimulate sustainable action across the supply chain
- Angel Oak Mortgage REIT (AOMR) entered into a stock repurchase agreement with Xylem Finance and an affiliate of Davidson Kempner Capital to repurchase $5-20 mln shares of common stock owned by Xylem
- Ansys Works (ANSS) with Supermicro (SMCI) and NVIDIA (NVDA) to deliver unmatched multiphysics simulation with turnkey hardware
- Apple (AAPL) scores record 72 Emmy Award nominations and sweeps across top categories including Outstanding Limited series for “Lessons in Chemistry,” Outstanding Drama for “The Morning Show” and “Slow Horses” and Outstanding Comedy for “Palm Royale”
- Apple (AAPL): TF Int'l analyst Ming-Chi Kuo posts on X, "recent earnings calls from two key Apple suppliers (TSMC and Largan) have hinted that the iPhone 16 orders may not have increased"
- Apple (AAPL) in discussions to license more Hollywood movies, according to Bloomberg
- Astrana Health (ASTH) announces strategic partnership with Elation Health
- Auna S.A. (AUNA) announces the launch of the first oncology insurance in Mexico, fully integrated through its hospital network in Monterrey, Nuevo Leon
- BeiGene (BGNE) appoints Aaron Rosenberg as Chief Financial Officer, effective July 22
- Beyond Meat (BYND) engages bondholders for restructuring talks according to CNBC citing Wall Street Journal
- Boeing (BA) Seattle workers pass strike vote, according to Reuters
- Boeing's (BA) Starliner thruster ground testing complete, data reviews underway
- Broadcom (AVGO): OpenAI has spoken with AVGO about producing an artificial intelligence chip, according to The Information
- Choice Hotels (CHH) signed an agreement with Sodexo's (SDXAY) Entegra, the world’s largest food group purchasing organization
- Churchill Capital Corp VII (CVII): Special meeting of Churchill VII Stockholders to approve business combination with CorpAcq and public warrant holder meeting to approve warrant amendment to be adjourned and reconvened for August 12, 2024
- Commscope (COMM) has entered into a definitive agreement to sell its Outdoor Wireless Networks segment as well as the Distributed Antenna Systems business unit of its Networking, Intelligent Cellular & Security Solutions segment to Amphenol Corporation (APH)
- Darden Restaurants (DRI) expands into Mexican category with Chuy's acquisition
- DaVita (DVA) to pay over $34 mln to resolve allegations of illegal kickbacks
- Dr. Reddy's (RDY) signs non-exclusive patent licensing agreement with Takeda (TAK) to commercialise Vonoprazan, a novel gastrointestinal drug, in India
- Ford (F) Pro Rolls Out Complimentary EV Chargers to California Businesses
- GE Aerospace (GE) announces completion of share delisting from LSE
- GE Vernova (GEV): Nantucket announces a cleanup was initiated after a blade damage incident involving one of Vineyard Wind's offshore wind turbines on Saturday, July 13
- GE Vernova (GEV): AVANGRID's (AGR) Vineyard Wind says A significant part of the damaged Vineyard Wind turbine blade broke off this morning
- Health Catalyst (HCAT) announces new credit facility for up to $225 mln
- HollySys (HOLI) expects to complete its merger transaction with a buyer controlled by Ascendent Capital Partners as soon as July 25, 2024
- Huntington Ingalls (HII) announces that its Newport News Shipbuilding division has completed contracted work at the Naval Nuclear Laboratory’s Kenneth A. Kesselring Site in West Milton, New York
- ICF International (ICFI) was awarded a new agreement, together with Walker-Miller Energy Services, to support the launch and implementation of Commonwealth Edison's (ComEd) beneficial electrification (BE) programs in Illinois
- ImmunityBio's (IBRX) NantCell enters settlement agreement
- Intel (INTC) tackles real-world challenges with AI systems
- John B. Sanfilippo & Son (JBSS) declares $1.25/share special dividend and a regular annual dividend of $0.85/share
- L3Harris (LHX) has secured a contract with Air Astana JSC to supply its Flight Training Centre with an Airbus A320neo Full Flight Simulator
- Li-Cycle (LICY) has appointed Craig Cunningham to the role of Chief Financial Officer, effective July 20, 2024
- Lilium N.V. (LILM) and Saudia Group signed a binding sales agreement for 50 Lilium Jets, with options for the purchase of 50 more
- Lloyds Banking Group (LYG) aiming to partner with Oaktree Capital on UK buyouts, according to Financial Times
- Meta Platforms (META) won't offer multilmodal AI models to customers in EU, Axios
- Meta Platforms (META): Plans are in place to begin making cuts at META's AR/VR division, Reality Labs, according to The Information
- Methanex (MEOH) and Entropy enter into an agreement to invest in a Preliminary Front-End Engineering and Design study for carbon capture, utilization and sequestration deployment at Methanex’s Medicine Hat, Alberta facility
- Microsoft's (MSFT) Xbox has partnered with NVIDIA (NVDA) GeForce NOW and Boosteroid to bring first-party titles to more players.
- MillerKnoll (MLKN) amended stock repurchase program authorizing an additional $200 million to fund share repurchases
- Norwegian Cruise Line (NCLH) announces port of Philadelphia as a new homeport with its 2026 spring/summer season
- Opko Health (OPK) enters into $250 mln non-dilutive note purchase agreement with HealthCare Royalty
- Patterson Companies (PDCO): Patterson Dental Canada and Pearl announce a collaboration to expand access to Pearl’s Second Opinion AI disease detection capabilities within the Canadian dental market
- PENN Entertainment (PENN) aiming to eliminate 100 jobs, according to CNBC
- Petco Health and Wellness (WOOF) appoints Joel D. Anderson to serve as Chief Executive Officer, effective July 29
- PPG Industries (PPG) increases quarterly dividend to $0.68/share from $0.65/share
- QXO, Inc (QXO) formally appointed Mr. Essaid the Chief Financial Officer of the Company, and Mr. Essaid began his employment as Chief Financial Officer with the Company on July 15
- Roadzen’s (RDZN) Special Committee of Independent Directors unanimously approved a plan for certain related parties to release $3.5 mln of short-term debt in exchange for ordinary shares of RDZN
- Roche Hldg's (RHHBY) Genentech announces two-year data from the Phase III Pagoda and Pavilion studies evaluating Susvimo 100 mg/mL for the treatment of diabetic macular edema and diabetic retinopathy, respectively, the two leading causes of vision loss in adults with diabetes
- Sallie Mae (SLM): President Biden issues statement on $1.2 billion in student debt cancellation for 35,000 borrowers
- Smartsheet (SMAR) follow-up to potential takeover interest
- SolarWinds (SWI): Federal judge dismissed SEC's cybersecurity lawsuit against SWI, according to Bloomberg
- Stellantis's (STLA) FCA US LLC is recalling an estimated 19,516 U.S.-market plug-in hybrid minivans to resolve a potential fire risk
- Sunrun (RUN) announces that its CalReady power plant was activated to support California's power grid during the recent heat wave
- Takeda Pharma's (TAK) Eohilia received FDA approval as the first and only oral therapy for eosinophilic esophagitis in patients aged 11 and older
- Tesla (TSLA): California new car dealers association releases Q2 2024 Auto Outlook report
- Teva Pharma (TEVA) announces "positive" topline results from its Phase 3 SPACE study evaluating the efficacy of AJOVY for the prevention of episodic migraine in children and adolescent patients aged 6-17 years
- Trump Media & Technology Group Corp (DJT): SEC files lawsuit against former Digital World CEO Patrick Orlando
- Ultragenyx Pharma (RARE) announces the successful completion of an end-of-Phase 2 (EoP2) meeting with the U.S. Food and Drug Administration (FDA), supporting its Phase 3 study plans for GTX-102, an antisense oligonucleotide for Angelman syndrome
- United Airlines (UAL) on conference call says domestic industry capacity growth will moderate by roughly five points by Q4 compared to Q2 which should provide a particularly beneficial backdrop heading into 2025
- UnitedHealth (UNH) Community Plan of Rhode Island selected by the State of Rhode Island to serve Medicaid members through the Medicaid Managed Care Services (MMCS) program
- Universal Stainless/Alloy (USAP) has reached a new five-year collective bargaining agreement covering the hourly production and maintenance employees at its North Jackson facility represented by Local Unit 2332-2 of the United Steelworkers
- Vale S.A. (VALE) Chairman reinforces governance and integrity in the Company’s CEO sucession process
- Valneva SE (VALN) and Pfizer (PFE): participants of Phase 3 trial VALOR have completed the primary vaccination series of Lyme disease vaccine candidate VLA15
- Vigil Neuroscience (VIGL) announces an update following a Type C Meeting with the U.S. FDA to its clinical development strategy for its IGNITE clinical trial evaluating iluzanebart in people with adult-onset leukoencephalopathy with axonal spheroids and pigmented glia
- Village Super Market (VLGEA) announces the passing of Chairman William P. Sumas; appoints CEO Robert Sumas as interim Chairman
- WalkMe Ltd. (WKME) disclosed SAP HSR waiting period expired
- Warner Brothers Discovery (WBD) talked about plan to split its digital streaming and studio units, according to Financial Times
- Willdan Group (WLDN) delivered energy efficiency projects for a large data center in the Pacific Northwest, exceeding 4.1M kWh in annual savings and reducing peak load by 475 kW
Ratings Changes (see Upgrades/Downgrades calendar for full list):
- Upgrades:
- Allstate (ALL) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $191
- e.l.f. Beauty (ELF) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $230
- Fortinet (FTNT) upgraded to Buy from Hold at TD Cowen; tgt $75
- Gap (GPS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $29
- Downgrades:
- CrowdStrike (CRWD) downgraded to Sell from Neutral at Redburn Atlantic; tgt lowered to $275
- Doximity (DOCS) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $19
- Elevance Health (ELV) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $530
- First Horizon (FHN) downgraded to Outperform from Strong Buy at Raymond James; tgt $18
- Five Below (FIVE) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $79
- Foot Locker (FL) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $18
- Hub Group (HUBG) downgraded to Hold from Buy at TD Cowen; tgt lowered to $43
- Leslie's (LESL) downgraded to Sell from Hold at Stifel; tgt lowered to $2.50
- Torrid (CURV) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $5
- Others:
- AstraZeneca (AZN) initiated with a Buy at BOCOM Int'l
- Bristol-Myers (BMY) initiated with a Sell at BOCOM Int'l
- Frontier Communications Parent (FYBR) initiated with a Buy at UBS; tgt $33
- Grocery Outlet (GO) initiated with an Overweight at Wells Fargo; tgt $28
- LCI Industries (LCII) initiated with a Buy at The Benchmark Company; tgt $130
- Econ Data (Friday):
- No Data on Tomorrow's Schedule
- 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
- Monday (July 15)