After Hours Report

The S&P 500 (+0.1%) and Nasdaq Composite (+0.3%) closed at fresh record highs after a somewhat mixed session. The Russell 2000 (+0.6%) also closed with a gain while the Dow Jones Industrial Average declined 0.1%.

Mixed price action in the mega cap space contributed to the lackluster showing in the S&P 500 and Nasdaq Composite, but the underlying vibe was positive through the entire session. Advancers led decliners by an 11-to-10 margin at the NYSE and by a 4-to-3 margin at the Nasdaq.

Meta Platforms (META 529.32, -10.59, 2.0%) logged a solid decline, weighing on the communication services sector (-1.0%). Alphabet (GOOG 190.48, -1.48, -0.8%), Microsoft (MSFT 466.24, -1.32, -0.3%), Amazon.com (AMZN 199.29, -0.71, -0.4%) also registered losses.

Meanwhile, semiconductor stocks outperformed the broader market, providing a measure of support. The PHLX Semiconductor Index (SOX) showed a 1.9% gain at the close. NVIDIA (NVDA 128.20, +2.37, +1.9%) and Broadcom (AVGO 1745.86, +42.55, +2.5%) were winning standouts from the space. 

This price action contributed to the gain in the information technology sector (+0.7%).

The muted action today was also related to some hesitation in front of market-moving events this week. Specifically, the June Consumer Price Index and Producer Price Index are released on Wednesday and Thursday, respectively, and earnings season starts this week when large cap banks like JPMorgan Chase (JPM 205.17, +0.38, +0.2%), Wells Fargo (WFC 59.01, -0.61, -1.0%), and Citigroup (C 64.74, +0.71, +1.1%) report.

The 10-yr note yield settled unchanged at 4.27% and the 2-yr note yield rose two basis points to 4.62%.

• Nasdaq Composite: +22.6% YTD
• S&P 500: +16.8% YTD
• Dow Jones Industrial Average: +4.4% YTD
• S&P Midcap 400: +4.5% YTD
• Russell 2000: +0.6% YTD

Reviewing today's economic data:

• Consumer credit increased by $11.3 bln in May (Briefing.com consensus $9.5 bln) after increasing an upwardly revised $6.5 bln (from $6.4 bln) in April.
  • The key takeaway from the report is that revolving credit growth accelerated strongly after a slight contraction in May, so the question is whether consumers are turning to revolving credit because of need or increased optimism about economic prospects.

Tuesday's economic lineup is limited to the June NFIB Small Business Optimism survey at 6:00 ET.

Overseas:

• Europe: DAX +0.1%, FTSE -0.1%, CAC -0.6%
• Asia: Nikkei -0.1%, Hang Seng -1.6%, Shanghai -0.9%

Commodities:

• Crude Oil -0.94 @ 82.29
• Nat Gas +0.03 @ 2.38
• Gold -32.50 @ 2365.00
• Silver -0.76 @ 30.91
• Copper -0.05 @ 4.60

After-Hours Spotlight:

• Esco Tech (ESE) to acquire US Navy supplier for $550 mln... ESE up 5.1%
• Helios Technologies (HLIO) appoints Sean Bagan to serve as Interim President and CEO in addition to his role as CFO, effective immediately... HLIO down 17.1%
• NextNav (NN) announces a new award from the U.S. Department of Transportation to conduct real-world field tests of its 3D PNT technologies to provide PNT information to meet critical infrastructure needs when GPS service is not available and/or degraded due environmental, unintentional, and/or intentional disruptions... NN up 6.8%

Fair Value for Tuesday, July 9:

• S&P 500: 5,625
• Nasdaq 100: 20,659
• DJIA: 39,652

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

• Earnings/Guidance (Full Earnings Calendar):
  • Corning (GLW) sees Q2 EPS at high end or slightly above prior range; raises Q2 revenue guidance
  • Daimler Truck Holding AG (DTRUY) Q2 unit sales of 112,195 units
  • Exxon Mobil (XOM) sees Q2 upstream earnings of $5.7 bln; sees Q2 non-GAAP total earnings of $8.2 bln; also details 2Q 2024 additional impacts from the acquisition of Pioneer Natural Resources
  • Greenbrier (GBX) misses by $0.09, misses on revs; lowers top end of FY24 revenue guidance
  • Haleon plc (HLN) provides FY24 profit and revenue guidance
  • IGM Biosciences (IGMS) updated its 2024 collaboration revenue guidance as a result of subsequent accounting analysis
  • Paramount Global (PARA) provides FY25-FY27 guidance for revenue and adjusted OIBIDA
  • Ring Energy (REI) updated second quarter of 2024 sales guidance and end-of-period debt, and announced reaffirmation of the $600 million borrowing base
  • Silicon Motion (SIMO) guides Q2 revs slightly above high-end of prior guidance
• General News
  • Left wing alliance won most seats in French parliament, but no party won an absolute majority, according to Politico
  • Israel says possible ceasefire discussions could last for several more weeks, according to NBC News
  • Four senior Democrats privately told colleagues that President Biden should exit the 2024 presidential race, according to the New York Times
  • President Biden says he will only drop out if "the Lord Almighty came down" and told him to do so, according to ABC News
  • Former President Trump is expected to announce his vice presidential selection by next Monday. Senators JD Vance and Marco Rubio are top contenders, according to the Washington Post
  • China June car sales fall 6.9%, according to Reuters
  • President Biden sends letter to Congress saying he is "not blind" to concerns people have, but he is "firmly committed to staying in this race, to running this race to the end, and to beating Donald Trump"
  • TSA reports that 3,013,413 airline passengers passed through checkpoints on Sunday; highest in history
  • 3D Systems (DDD) and Precision Resource announce strategic partnership to advance metal additive manufacturin
  • Abbott Labs (ABT) will face a trial today on claims formula caused disease, according to Reuters
  • Accenture (ACN) has acquired Excelmax Technologies, a Bangalore, India-based semiconductor design services provider
  • Aegon N.V. (AEG) commenced EUR 200 million share buyback - expected to be completed on December 13, 2024
  • AerCap (AER) announced its major business transactions during the second quarter 2024
  • AFC Gamma (AFCG) reconfirms that the spin-off of its commercial real estate portfolio into an independent, publicly-traded REIT, Sunrise Realty Trust, Inc., will be completed on July 9, 2024
  • Airbus (EADSY) reports June gross orders of 73, June had 67 deliveries to 40 customers
  • Alphabet's (GOOG) Google Fiber says it put Nokia’s (NOK) 50G PON technology to the test in one of its KC fiber huts
  • AMC Entertainment (AMC) announced that more than 4 million domestic moviegoers spent part of their extended July 4 holiday weekend at AMC, making it the Company’s busiest Wednesday through Sunday period of the year in the United States
  • Ameresco (AMRC) signed contract with Snohomish County Public Utility District to construct a battery energy storage system with a 20-year guaranteed capacity of 25 megawatts and 100 megawatt-hours
  • American Vanguard (AVD) reported that its Chairman and Chief Executive Officer, Eric G. Wintemute, has presented to the board his plan to retire from his position as CEO
  • Apple (AAPL) approved European Epic Games application, according to Reuters
  • Arthur J. Gallagher (AJG) announced the acquisition of Danbury, Connecticut-based Cleary Benefits Group; Terms of the transaction were not disclosed
  • Bitfarms (BITF) announced that the Board of Directors has appointed Ben Gagnon Chief Executive Officer, effective immediately
  • Boeing (BA) will plead guilty in criminal case involving 737 MAX crashes, according to the Wall Street Journal
  • Boeing (BA): FAA ordered Boeing to inspect 2600 737 jets, according to Reuters
  • Broadcom (AVGO) files mixed securities shelf offering for an undisclosed amount
  • BYD Company (BYDDY) to invest $894 mln in EV parts factory, Reuters citing state-owned media
  • Carlsberg A/S (CABGY) and foodpanda join hands to enhance quick-commerce experience for customers in Asia
  • Centrais Electricas Brasileiras (EBR) approved new buyback program for common and preferred shares
  • Charles Schwab (SCHW): The Schwab Trading Activity Index increased to 54.71 in June, up from its score of 49.05 in May
  • Citigroup (C) announces it will cease its operations in Haiti
  • Danaos (DAC) has added $616 mln to its contracted revenue backlog and has added an extra five newbuilding containerships to its orderbook
  • Discovery (WBD) stockholders reach $125 mln settlement, according to Bloomberg
  • Eli Lilly (LLY): GordonMD Global Investments portfolio company, radionetics oncology, announced strategic agreement with Eli Lilly (LLY)
  • Eni S.p.A. (E) announces a new discovery offshore Mexico
  • Envestnet (ENV) nearing deal to sell itself to Bain Capital, according to Reuters
  • Fanhua (FANH) announces the expansion of the Company's share repurchase program by an additional $20 million, bringing the total authorized amount of share repurchase to $40 million
  • Fanhua (FANH) announces that its board of directors has recently approved the grant of share options to certain of its key employees; This move is part of the Company's strategy to incentivize key talent and align their interests with the long term success of the Company
  • Grifols, S.A. (GRFS): Brookfield confirms that it has held exploratory discussions with certain reference shareholders of the company in relation to a potential joint offer for Grifols' shares to delist them from the Spanish stock exchanges and NASDAQ
  • Grupo Aeroportuario del Pacifico (PAC) reports in June 2024 a passenger traffic decrease of 1.9% compared to 2023
  • Hertz Global (HTZ) announced key appointments that will strengthen its leadership team and sharpen the Company's focus on driving enhanced profitability
  • HilleVax (HLVX) announces topline data results from NEST-IN1
  • Humana (HUM): Insurers received $50 bln from Medicare Advantage for diseases that were not treated by a doctor, according to the Wall Street Journal
  • IDEAYA (IDYA) announces investor webcast to report clinical data update for IDE397 Phase 2 monotherapy expansion dose in MTAP-deletion urothelial and lung cancer on Monday, July 8, 2024
  • Itau Unibanco Holding SA (ITUB) announced that Gabriel Amado de Moura, current Gerente General (CEO) of Banco Itaú Chile, will take over the role of Chief Financial Officer (CFO) of the Company replacing Alexsandro Broedel Lopes, who has decided to leave the organization
  • Kraft Heinz (KHC): Capri-Sun mulling sale of minority stake and aiming to use proceeds to purchase some KHC operations, according to Bloomberg
  • Lexicon Pharma (LXRX) announces that the Lexicon Board of Directors has appointed Mike Exton as chief executive officer and director of Lexicon
  • Lucid Group (LCID) announced production and delivery totals for the quarter ended June 30, 2024; Lucid produced 2,110 vehicles and delivered 2,394 vehicles during this period
  • Masimo (MASI): Politan Capital Management dicloses letter sent to Board 'to express serious concerns regarding a possible ongoing scheme to manipulate the outcome of the upcoming Annual Meeting of Stockholders'
  • Masimo (MASI) provides update on potential separation of consumer business
  • Merck (MRK): PharmAbcine announced safety approval for the first dose cohort in Phase 1a/b clinical trial of PMC-309 in patients with advanced or metastatic solid tumors
  • Microsoft (MSFT): Only 3% of computers shipped met MSFT"s conditions for AI PC's, according to Bloomberg
  • Mirum Pharmaceuticals’ (MIRM) LIVMARLI approved in the european union for Patients with PFIC
  • MoneyLion (ML) entered into a Master Receivables Purchase Agreement with Sound Point Capital Management
  • Nature Wood Group Limited (NWGL) announced that Mr. Hubei Song has been appointed as the CEO to succeed Mr. Jianjun Zeng, who is stepping down as CEO due to health reasons
  • NewAmsterdam Pharma (NAMS) completes enrollment in pivotal phase 3 TANDEM clinical trial evaluating fixed-dose combination of Obicetrapib plus Ezetimibe in Patients with HeFH and/or ASCVD or ASCVD risk factors
  • Niu Technologies (NIU) announces its large-scale retail expansion to over 800+ Best Buy (BBY) stores, across the United States
  • Outlook Therapeutics (OTLK) announces UK MHRA marketing authorization of LYTENAVA (bevacizumab gamma) for the Treatment of Wet AMD
  • Philips (PHG): FDA says Philips North America updates use instructions for SENSE XL Torso (1.5T And 3.0T) coils due to a potential issue where the coil heats up during mri scans, possibly leading to thermal injury
  • Plymouth Industrial REIT (PLYM) provides activity update for second quarter 2024
  • Pulse Biosciences (PLSE) has received the Breakthrough Device Designation from the U.S. FDA for the Company’s Cardiac Surgery System for the ablation of cardiac tissue for the treatment of atrial fibrillation
  • QuickLogic (QUIK) awarded a $5.26 mln contract to continue the development and demonstration of a Strategic Radiation Hardened high reliability Field Programmable Gate Array technology to support identified and future DOD strategic and space system requirements
  • Riot Platforms (RIOT) launches www.ABetterBitfarms.com in connection with its requisition of a special meeting of shareholders of Bitfarms Ltd. (BITF) to reconstitute the Bitfarms Board of Directors
  • Roche Hldg's (RHHBY) Genentech announce the reintroduction of Susvimo 100 mg/mL for intravitreal use via ocular implant for the treatment of people in the United States with wet, or neovascular, age-related macular degeneration, following the end of a voluntary recall
  • Samsung (SSNLF) workers go on strike, according to Financial Times
  • Scilex Holding (SCLX) provides Virpax (VRPX) litigation updates; received today July 8 $2.5 mln that was due on July 1, 2024
  • Scinai Immunotherapeutics (SCNI) announces receipt of an updated letter of intent from the European Investment Bank providing specific terms for conversion of its loan to equity
  • Ship Finance Intl (SFL) enters new long term charters for four 8,700 TEU container vessels
  • Sonic Automotive's (SAH) previously disclosed cybersecurity incident now reasonably likely to have material impact on Q2 results
  • Southwest Air (LUV) names co-founder of IndiGo to its board
  • Southwest Air (LUV): Elliott sends letter to the Board of Southwest Airlines
  • Star Bulk Carriers (SBLK): Brookfield Oaktree Holdings lowered active stake to 3.4% following the sale of 3,770,421 common shares between May 29, 2024, and July 2,2024
  • Tactile Systems (TCMD) disclosed litigation updates
  • Target (TGT) announces back-to-school and college savings with Target Circle Week deals available now through July 13
  • Tencent (TCEHY) Dungeon & Fighter Mobile is China's top game, according to Bloomberg
  • Tradeweb Markets (TW) reports June 2024 total trading volume of $37.5 trillion and average daily volume of $1.94 trillion
  • Turkcell (TKC): Turkey’s sovereign wealth fund mulling sale of 26.2% stake in TKC, according to Bloomberg
  • Vermilion Energy (VET) provides investor updates in presentation - On track to achieve Q2 2024 production of 83,000 - 85,000 boe/d
  • VNET Group (VNET) announces certain updates regarding the refinancing of the founder’s personal loan
  • Volaris Aviation (VLRS) reports June traffic; fleet mitigation plan is on track and yielding positive results
  • Walmart (WMT): Judge throws out key FTC claim against Walmart, according to Reuters
  • Xeris Biopharma (XERS) announces a CEO succession plan effective August 1, 2024, under which Paul R. Edick will be retiring from his day-to-day operational and Chairman role at Xeris

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

• Upgrades:
  • Ally Financial (ALLY) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $45
  • Autoliv (ALV) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $133
  • Cinemark (CNK) upgraded to Buy from Neutral at B. Riley Securities; tgt raised to $27
  • Clearwater Analytics (CWAN) upgraded to Outperform from Perform at Oppenheimer; tgt $25
  • Columbia Sportswear (COLM) upgraded to Buy from Hold at Stifel; tgt raised to $92
  • Domino's Pizza (DPZ) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $580
  • Ecolab (ECL) upgraded to Buy from Hold at Stifel; tgt raised to $283
  • EnLink Midstream (ENLC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $17
  • Fortive (FTV) upgraded to Buy from Hold at TD Cowen; tgt raised to $90
  • GDS Holdings (GDS) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $14
  • Gilead Sciences (GILD) upgraded to Outperform from Mkt Perform at Raymond James; tgt $93
• Downgrades:
  • Arhaus (ARHS) downgraded to Hold from Buy at Jefferies; tgt lowered to $16
  • Brinker (EAT) downgraded to Outperform from Strong Buy at Raymond James; tgt raised to $82.50
  • Bumble Inc. (BMBL) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $10
  • Canadian Nat'l Rail (CNI) downgraded to Mkt Perform from Outperform at Bernstein
  • CSX (CSX) downgraded to Neutral from Buy at BofA Securities
  • GlaxoSmithKline (GSK) downgraded to Neutral from Buy at UBS
• Others:
  • Akamai Tech (AKAM) initiated with a Sector Outperform at Scotiabank; tgt $110
  • Alphatec (ATEC) initiated with an Overweight at Barclays; tgt $19
  • CARGO Therapeutics (CRGX) initiated with a Buy at Chardan Capital Markets; tgt $28
  • Emerson (EMR) initiated with a Buy at Redburn Atlantic; tgt $135
  • Four Corners Property Trust (FCPT) initiated with a Mkt Perform at JMP Securities
  • IDEAYA Biosciences (IDYA) initiated with an Outperform at Mizuho; tgt $50

• Econ Data (Tuesday):
  • 6:00 ET: June NFIB Small Business Optimism (prior 90.5)
• Treasury Auctions:
  • 13:00 ET: $58 bln 3-yr Treasury note auction results
• Earnings:
  • Monday (July 8)
    • Pre-Market: GBX
    • After-Hours: None
  • Tuesday (July 9)
    • Pre-Market: HELE
    • After-Hours: SGH
  • Wednesday (July 10)
    • Pre-Market: MANU
    • After-Hours: AZZ PSMT WDFC
  • Thursday (July 1)
    • Pre-Market: DAL PEP
    • After-Hours: CAG
  • Friday (July 12)
    • Pre-Market: BK C ERIC FAST JPM WFC
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike