After Hours Report

The stock market entered the new week with a continuation of last week's rally. A last minute push higher had the S&P 500 (+1.0%), Nasdaq Composite (+1.4%), Dow Jones Industrial Average (+0.6%), and Russell 2000 (+1.2%) hit new session highs ahead of the close. Today's action left the S&P 500 1.1% below its all-time high.

Volume was below-average at the NYSE today as investors wait on potentially market-moving events this week. Some of the key events include the release of the FOMC Minutes for the July 30-31 FOMC meeting on Wednesday and Fed Chair Powell's speech on the Economic Outlook at the Jackson Hole Economic Symposium on Friday.

Participants are looking for Mr. Powell to corroborate the market's optimistic views on economic growth, the labor market, and rate cuts beginning in September, which have driven recent upside moves in equities.

Influential economic releases include the weekly initial jobless claims and existing home sales report for July on Thursday and the new home sales report for July on Friday.

Also, earnings reporting in the retail space picks up steam this week. Lowe's (LOW 243.21, +2.06, +0.9%), Target (TGT 144.63, +0.59, +0.4%), TJX (TJX 112.49, +1.04, +0.9%), Urban Outfitters (URBN 41.17, +0.43, +1.1%), and Dollar Tree (DLTR 100.51, +1.73, +1.8%) are among the standouts, settling higher in front of their quarterly reports.  

Broad buying activity left all 11 S&P 500 sectors higher led by communication services (+1.4%) and information technology (+1.4%).

The 10-yr note yield settled two basis points lower at 3.87% and the 2-yr note yield rose one basis point to 4.07%.

• Nasdaq Composite:+19.1% YTD
• S&P 500: +17.6% YTD
• S&P Midcap 400: +9.3% YTD
• Dow Jones Industrial Average: +8.5% YTD
• Russell 2000: +6.9% YTD

Today's economic data was limited to the Leading Indicators Index, which dropped 0.6% in July (Briefing.com consensus -0.3%) following a 0.2% decline in June. There is no economic data of note on Tuesday.

Overseas:

• Europe: DAX +0.6%, TSE +0.6%, CAC +0.7%
• Asia: Nikkei -2.0%, Hang Seng +0.8%, Shanghai +0.5%

Commodities:

• Crude Oil -1.76 @ 73.77
• Nat Gas +0.12 @ 2.24
• Gold +2.80 @ 2540.20
• Silver +0.39 @ 29.25
• Copper +0.03 @ 4.18

After-Hours Spotlight:

• Fabrinet (FN) beats by $0.17, beats on revs; guides SepQ EPS above consensus, revs above consensus; increases share buyback authorization... FN up 8.2%
• Monster Beverage (MNST) authorizes new repurchase program for up to an additional $500 mln... MNST up 0.6%
• Palo Alto Networks (PANW) beats by $0.10, beats on revs; guides OctQ EPS above consensus, revs in-line; guides FY25 EPS and revs in-line; increases buyback authorization by $500 mln to $1 bln... PANW up 0.9%

Fair Value for Tuesday, August 20:

• S&P 500: 5,630
• Nasdaq 100: 19,855
• DJIA: 41,014

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

• Earnings/Guidance (Full Earnings Calendar):
  • Endeavour Silver (EXK) provides update on Guanacevi trunnion failure; updates FY24 production guidance
  • Estee Lauder (EL) beats by $0.38, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus
  • Hyatt Hotels (H) updates its FY24 outlook following completion of the sale of the Hyatt Regency Orlando
  • ZIM (ZIM) reported financial results for the second quarter of 2024; raised full year 2024 guidance
• General News
  • San Francisco Fed President Mary Daly in interview says Fed should gradually reduce rates, according to Financial Times
  • Minneapolis Fed President Neel Kashkari (not a voting FOMC member) in interview says a weaker employment market could trigger Fed rate cut, according to the Wall Street Journal
  • Goldman Sachs economists lower US recession expectations over the next 12 months to 20% from 25%, according to Bloomberg
  • Vice President Kamala Harris has 225 electoral votes in her favor versus former President Trump with 219. Seven states consisting of 96 electoral votes are in the toss-up column, according to CNN
  • US confident in ceasefire proposal, but Hamas is expected to reject the "bridging proposal", according to Politico
  • New rules for real estate professionals begun over the weekend, according to CNN
  • Potential Canadian railway strike this week could impact supply chains, according to CBS News
  • Half of US companies see artificial intelligence as risk to their businesses, according to Financial Times
  • Vice President Kamala Harris wants to increase corporate tax rate to 28% from 21%, according to NBC News
  • FDA might approve updated coronavirus vaccines this week, according to CNN
  • Israel Prime Minister Benjamin Netanyahu accepted terms of bridge proposal in ceasefire talks, but Hamas thinks the proposal favors Israel too much, according to NY Times
  • Abacus Life (ABL) and Lorisco Life announce launch of PREADISAN to improve health predictions
  • Akari Therapeutics (AKTX)  has received "positive" and constructive Pre-IND feedback from the FDA on July 29, 2024, which provides additional clarity on Akari’s final Investigational New Drug Application- enabling preclinical plans, drug manufacturing and Phase 1 clinical strategy for long-acting PAS-nomacopan for intravitreal treatment of geographic atrophy
  • AlphaVest Acquisition Corp (ATMV) announced the execution of a Business Combination Agreement with AMC Corporation, a provider of native computer vision AI platform
  • Andersons (ANDE) names Bill Krueger as CEO effective October 1, Pat Bowe will remain Chairman
  • APA Corp. (APA) mulling $1 bln sale of Permian assets, according to Reuters
  • Apple's (AAPL) decision to drop Qualcomm (QCOM) modems will not have an immediate benefit, according to Bloomberg
  • Archer-Daniels (ADM) and Farmers Business Network announce that they have launched a joint venture, Gradable, creating a new company to expand the Gradable technology platform and enable more farmers and buyers to confidently pursue and derive value from grain produced using sustainable and regenerative practices
  • Asbury Automotive (ABG) Denies Unfounded FTC Allegations, Vows a Vigorous Defense
  • AstraZeneca (AZN) reports ENHERTU granted Breakthrough Therapy Designation in U.S. for certain patients with HER2 Low or HER2 Ultralow Metastatic Breast Cancer
  • Avnet (AVT) increases quarterly cash dividend 6% to $0.33/share from $0.31/share and approves an increase in Avnet’s share repurchase authorization, bringing the total amount available for share repurchases to $600 mln
  • BHP (BHP) workers have accepted proposal and strike at Chile mine has ended, according to Bloomberg
  • BioNTech (BNTX) issued statement announcing that the U.S. Food and Drug Administration has lifted the partial clinical hold that was placed on the MediLink Therapeutics (Suzhou) Co., Ltd. Phase I trial evaluating BNT326/YL202
  • Bristol-Myers (BMY): European Medicines Agency (EMA) has validated its Type II variation application to expand the indication for Breyanzi
  • Burning Rock Biotech (BNR) intends to delist ADSs on London Stock Exchange
  • Canadian Nat'l Rail (CNI) issues lockout notice to Teamsters
  • Canadian Pacific Kansas City Ltd. (CP) provides TCRC bargaining update
  • Cboe Global Markets (CBOE) increases share repurchase authorization by $500 million and increases quarterly cash dividend to $0.63/share from $0.55/share
  • Compass Diversified's (CODI) subsidiary, Altor Solutions, has entered into a definitive agreement to acquire Lifoam Industries for an enterprise value of $137 mln in cash at closing
  • Contango (CTGO) Announces Results of the First Batch of Gold Production from Manh Choh Gold Mine, Alaska
  • Cracker Barrel (CBRL) responds to Biglari nominations
  • Diageo (DEO) submitted financial statements related to anti-corruption investigation, according to Reuters
  • Diamond Offshore (DO) files supplement to the definitive proxy statement/prospectus and details litigation related to the Noble Corporation plc (NE) merger
  • Empire State Realty Trust (ESRT) receives expected notice from NYSE related to delayed filing of quarterly report on form 10-Q
  • Energy Fuels (UUUU) acquires RadTran LLC as a further step toward addressing the global industry need for medical radioisotopes in emerging cancer treatments
  • Eni S.p.A. (E) starts gas production from the Argo Cassiopea field in the Strait of Sicily
  • Estee Lauder (EL) announces intention for President/CEO to retire at end of FY25
  • Eversource Energy (ES) announces its Huntsbrook Offshore Wind Hub project proposal was recently awarded $89 mln in federal grant funding through the second round of the U.S. Department of Energy’s Grid Innovation Program
  • First Guaranty Bancshares (FGBI) declared a quarterly cash dividend of $0.08 per share, down from $0.16 per share prior quarter
  • fuboTV (FUBO) wins preliminary injunction against Venu Sports joint venture between DIS, FOXA, and WBD
  • General Dynamics (GD) and several other companies, including BAH, LDOS, and LUMN, awarded a combined $12.5 bln U.S. Air Force contract
  • Genmab (GMAB) announces that the European Commission has granted conditional marketing authorization for TEPKINLY as a monotherapy for the treatment of adult patients with relapsed or refractory follicular lymphoma after two or more lines of systemic therapy
  • Gibraltar Industries (ROCK) names Joseph Lovechio as CFO, effective today
  • Globalstar (GSAT) announces that the United States Federal Communications Commission has issued an order granting Globalstar’s application to extend the term of its senior HIBLEO-4 authorization by an additional 15 years and operate up to 26 replacement satellites
  • Hawaiian Electric (HE) amended supply agreement for petroleum fuels
  • Hyliion (HYLN) has entered into a non-binding Memorandum of Understanding with Jardine Engineering Corporation Limited
  • Icahn Enterprises (IEP): SEC charges Carl Icahn and Icahn Enterprises L.P. for failing to disclose pledges of company’s securities as collateral for billions in personal loans
  • Icahn Enterprises (IEP) discloses that it produced documents in response to that inquiry and has had no substantive communication with the U.S. Attorney’s office since the initial inquiry on May 3, 2023
  • Intel (INTC) aiming to eliminate sales and marketing group jobs as part of cost cuts, according to CRN
  • J.B. Hunt Transport (JBHT) adopted a new share repurchase program authorizing the repurchase of $1 billion of the Company’s common stock
  • Kenon Holdings' OPC Energy Ltd. (KEN) announces commencement of construction of CPV Group wind project
  • Kroger (KR) files a motion for preliminary injunction in the U.S. District Court, Southern District of Ohio, against the Federal Trade Commission's administrative proceeding challenging the company's merger with Albertson's Companies (ACI)
  • Largo Resources (LGO) reports continued progress in cost reduction initiatives at its Vanadium operation in Brazil
  • Liquidia Technologies (LQDA) receives tentative approval from FDA for YUTREPIA Inhalation Powder
  • Live Nation (LYV): Ten additional states join Justice Department’s suit against Live Nation-Ticketmaster for monopolizing markets across the live concert industry
  • LiveOne (LVO) announces a mutli-year partnership with TextNow
  • Marathon Oil (MRO) files supplement to the definitive proxy statement/prospectus and details litigation related to the ConocoPhillips (COP) merger
  • Merck (MRK): TuHURA Biosciences and Kintara Therapeutics (KTRA) announce Kineta (KA) reopens enrollment for VISTA-101 clinical trial evaluating KVA12123 in patients with advanced solid tumor cancer
  • New Oriental Education & Technology (EDU) approves special cash dividend
  • Nikola Corporation (NKLA) awarded Sourcewell cooperative contract
  • Nikola Corporation (NKLA) discloses it entered into securities purchase agreement with the investors named therein for the sale of up to $160 mln in aggregate principal amount of senior convertible notes
  • Nikola Corporation (NKLA) files $500 mln mixed securities shelf offering
  • Occidental Petro (OXY) provides update on progress on debt reduction and divestiture initiatives
  • OneConnect Financial (OCFT) announces that Mr. Yongtao Luo resigned as the chief financial officer of the Company for personal reasons, effective from August 20, 2024
  • Pfizer (PFE) is hoping its cancer drugs will turnaround the company, according to the Wall Street Journal
  • Phathom Pharmaceuticals (PHAT) prices $130 million offering of common stock and pre-funded warrants
  • Planet Labs (PL) launches first Tanager-1 and 36 SuperDoves with SpaceX
  • Porsche (POAHY): VARTA AG reaches agreement with financial creditors and strategic investors on a restructuring plan and creates the basis for a sustainable business perspective; DDr. Tojner and Porsche to become shareholders after completion of recapitalization
  • PowerFleet (AIOT) received letter from SEC indicating that SEC has completed its review regarding company's determination that it's the accounting acquirer in recent business combination with MiX Telematics
  • PowerFleet (AIOT) discloses notice of delisting or failure to satisfy a continued listing rule or standard; transfer of listing
  • RTX (RTX): FAA proposes to adopt a new airworthiness directive for certain Pratt & Whitney engines
  • Rubrik (RBRK) unveiled Salesforce (CRM) Data Protection; will host webinar Sept 4
  • SIGA Technologies (SIGA): Philippines had first case of Mpox this year, according to Reuters
  • Sila Realty Trust (SILA) provides Steward Health Care System and GenesisCare updates; authorized a share repurchase program
  • Silvercrest Asset Mgmt (SAMG) announces $12 million common stock repurchase program
  • SLB (SLB) and Palo Alto Networks (PANW) expand collaboration to strengthen cybersecurity for the energy sector
  • Smurfit Westrock plc (SW) announces that one of its indirect wholly owned subsidiaries, WRKCo Inc., has applied to the Autorité des marchés financiers, as WRKCo’s principal securities regulator in Canada, for a decision that it has ceased to be a reporting issuer in Québec, Manitoba and British Columbia
  • Sonder (SOND) confirms strategic licensing agreement with Marriott International (MAR)
  • Stellantis (STLA): UAW locals under the national UAW Stellantis agreement are prepared to file grievances over the company’s failure to keep its investment commitments
  • Stratasys (SSYS) & CollPlant (CLGN) announce pre-clinical study for regenerative commercial-sized breast implants*and Stratasys (SSYS) announce pre-clinical study for regenerative commercial-sized breast implants
  • Supernus Pharma (SUPN) announces SPN-830 apomorphine infusion device NDA accepted for review by FDA
  • Telos Corporation (TLS) continues to expand locations to enroll consumers in the TSA PreCheck program by opening eight new locations in California, Colorado, Florida, Illinois, Ohio, Oklahoma and Texas
  • Tiziana Life Sciences (TLSA) appoints new CEO
  • TrueCar (TRUE) announces that Jill Angel, formerly company's Chief People Officer & Operations, has been appointed as Chief Operating Officer
  • Upwork (UPWK): OpenAI says UPWK puts AI to work, uniting team members, operations and product development
  • Walgreens Boots Alliance (WBA) and the Biomedical Advanced Research and Development Authority announce a strategic partnership to increase innovation in decentralized clinical trials as part of the Decentralized Clinical Operations for Healthcare and Research program
  • Woodside Energy Group (WDS) and Australian Conservation Foundation agreed to dismiss environmental challenges

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

• Upgrades:
  • Banco Bradesco (BBD) upgraded to Buy from Neutral at Goldman; tgt raised to $3.20
  • Burlington Stores (BURL) upgraded to Buy from Hold at Gordon Haskett; tgt $300
  • Gates Industrial (GTES) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $22
  • Taylor Morrison Home (TMHC) upgraded to Buy from Neutral at BTIG Research; tgt $78<
• Downgrades:
  • Dutch Bros (BROS) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $36
  • HP Inc. (HPQ) downgraded to Equal-Weight from Overweight at Morgan Stanley
  • Terran Orbital (LLAP) downgraded to Neutral from Buy at H.C. Wainwright; tgt lowered to $0.25
  • Shake Shack (SHAK) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $114
  • Sol-Gel (SLGL) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $4
• Others:
  • Aligos Therapeutics (ALGS) initiated with a Buy at H.C. Wainwright; tgt $75
  • Foghorn Therapeutics (FHTX) initiated with an Outperform at Evercore ISI; tgt $20
  • Lineage (LINE) initiated with a Neutral at UBS; tgt $88
  • Lineage (LINE) initiated with a In-line at Evercore ISI; tgt $88
  • Lineage (LINE) initiated with a Sector Outperform at Scotiabank; tgt $95
  • Lineage (LINE) initiated with a Buy at Truist; tgt $94
  • Lineage (LINE) initiated with an Equal Weight at Wells Fargo; tgt $86
  • Lineage (LINE) initiated with an Overweight at Morgan Stanley; tgt $100
  • Lineage (LINE) initiated with an Outperform at Robert W. Baird; tgt $91
  • Lineage (LINE) initiated with a Neutral at Mizuho; tgt $86
  • Lineage (LINE) initiated with an Overweight at JP Morgan; tgt $93
  • Lineage (LINE) initiated with a Buy at Goldman; tgt $105
  • NVIDIA (NVDA) reiterated with a Buy at Goldman; tgt $135
  • OneStream (OS) initiated with an Outperform at Raymond James; tgt $32
  • OneStream (OS) initiated with a Buy at Truist; tgt $35
  • OneStream (OS) initiated with a Sector Outperform at Scotiabank; tgt $34
  • OneStream (OS) initiated with an Outperform at Wolfe Research; tgt $32
  • OneStream (OS) initiated with an Equal-Weight at Morgan Stanley; tgt $29
  • OneStream (OS) initiated with a Buy at BTIG Research; tgt $37
  • OneStream (OS) initiated with a Neutral at Citigroup; tgt $34
  • OneStream (OS) initiated with an Overweight at JP Morgan; tgt $30
  • Predictive Oncology (POAI) initiated with a Buy at H.C. Wainwright; tgt $3
  • Pure Storage (PSTG) initiated with a Neutral at Piper Sandler; tgt $60
  • Rubrik (RBRK) initiated with an Overweight at Piper Sandler; tgt $42
  • Skyward Specialty Insurance Group (SKWD) initiated with an Outperform at William Blair

• Econ Data (Tuesday):
  • There is no economic data of note
• Earnings:
  • Monday (Aug 19)
    • Pre-Market: EL DDD
    • After-Hours: FN PANW
  • Tuesday (Aug 20)
    • Pre-Market: AS GDS KC LOW MDT PINC VIPS
    • After-Hours: COTY KEYS LZB TOL ZTO
  • Wednesday (Aug 21)
    • Pre-Market: ADI DY M TGT TJX ZK
    • After-Hours: A NDSN SNOW SQM SNPS WOLF ZM
  • Thursday (Aug 22)
    • Pre-Market: AAP BIDU BILI BJ CSIQ LANC NTES PTON TD VIK WB
    • After-Hours: BILL CAVA INTU ROST WDAY
  • Friday (Aug 23)
    • Pre-Market: BKE
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike