After Hours Report

The stock market was back on a winning track today after modest declines yesterday, which broke an eight-session winning streak for the S&P 500 and Nasdaq Composite. The Russell 2000 outperformed its peers, rising 1.3%. The S&P 500 logged a 0.4% gain and the Nasdaq Composite settled 0.6% higher.

Volume was below-average at the NYSE again today, reflecting an ongoing lack of conviction. Still, advancers had a 3-to-1 lead over decliners at the NYSE and a 5-to-2 lead at the Nasdaq. 

Today's release of revisions to nonfarm payrolls for the April 2023-March 2024 period, which ultimately garnered a muted response from equities, showed that there were 818,000 fewer nonfarm payroll positions than previously thought, creating some concern that the labor market has been softening for a longer period than previously thought.

The stock and bond markets also had muted reactions to today's $16 billion 20-yr bond auction, which met good demand, and the release of the minutes from the July 30-31 FOMC meeting. The minutes were highlighted by the Fed's comments that a rate cut was "plausible" at the meeting, suggesting a September cut was all but guaranteed.

The 10-yr note yield settled four basis points lower at 3.78% and the 2-yr note yield declined seven basis points to 3.92%. 

The upside bias in the stock market was supported by shares of Target (TGT 159.25, +16.04, +11.2%), which surged after reporting earnings and raising its full-year earnings outlook has contributed to the upside bias. TJX (TJX 120.23, +6.92, +6.1%) also traded higher after reporting earnings and raising its full-year comparable sales guidance.

TGT and TJX were among the top performing stocks in the S&P 500. This price action boosted the consumer staples (+0.6%) and consumer discretionary (+1.2%) sectors.

• Nasdaq Composite: +19.4% YTD
• S&P 500: +17.8% YTD
• S&P Midcap 400: +9.7% YTD
• Dow Jones Industrial Average: +8.5% YTD
• Russell 2000: +7.1% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -10.1%; Prior 16.8%

Thursday's economic lineup features:

• 8:30 ET: Weekly initial (Briefing.com consensus 225,000; prior 227,000) and continuing (prior 1.864 million) jobless claims
• 9:45 ET: August preliminary S&P Global US Manufacturing PMI (prior 49.6) and S&P Global US Services PMI (prior 55.0)
• 10:00 ET: July Existing Home Sales (Briefing.com consensus 3.9 million; prior 3.89 million)
• 10:30 ET: EIA Natural Gas Inventories (prior -6 bcf)

Overseas:

• Europe: DAX +0.5%, TSE +0.1%, CAC +0.5%
• Asia: Nikkei -0.4%, Hang Seng -0.7%, Shanghai -0.4%

Commodities:

• Crude Oil -1.20 @ 71.97
• Nat Gas -0.03 @ 2.17
• Gold -2.60 @ 2547.50
• Silver +0.05 @ 29.53
• Copper +0.04 @ 4.19

After-Hours Spotlight:

• Agilent (A) beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line... A up 1.6%
• Microsoft (MSFT) provides FY25 investor metrics; updates 1Q25 outlook in slide deck... MSFT down 0.2%
• Snowflake (SNOW) beats by $0.02, beats on revs, slightly raises FY25 product revenue guidance, reaffirms non-GAAP operating margin guidance; Authorized the repurchase of additional $2.5 bln of common stock... SNOW down 6.9%
• Urban Outfitters (URBN) beats by $0.24, reports revs in-line; comps +2.0%... URBN down 4.1%
• Zoom Video (ZM) beats by $0.18, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus... ZM up 2.7%
• Zuora (ZUO) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs in-line; raises FY25 EPS and revenue guidance... ZUO up 7.0%

Fair Value for Thursday, August 22:

• S&P 500: 5,643
• Nasdaq 100: 19,912
• DJIA: 41,003

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

• Earnings/Guidance (Full Earnings Calendar):
  • 3D Systems (DDD) reports 1Q24 results, revenue decreased 15% yr/yr; company announced on August 9 that it delayed the filing of its 10-Q
  • Alcon (ALC) beats by $0.01, misses on revs; reaffirms FY24 EPS guidance, revs guidance
  • Analog Devices (ADI) beats by $0.07, beats on revs; guides Q4 EPS in-line, revs in-line
  • Bavarian Nordic A/S (BVNRY) receives 440,000 dose contract to supply smallpox and mpox vaccines; order was anticipated as part of 2024 guidance and has no impact on the remaining 2024/25 capacity for smallpox and mpox vaccine
  • Coty (COTY) misses by $0.08, reports revs in-line; guides FY25 EPS in-line
  • Dada (DADA) beats on top and bottom lines
  • Dycom (DY) beats by $0.20, reports revs in-line; guides Q3 revs below consensus
  • GDS Holdings (GDS) misses by RMB 0.28, beats on revs, reaffirms FY24 guidance
  • Jack Henry (JKHY) reports JunQ results, guides for FY25
  • Keysight (KEYS) beats by $0.22, beats on revs; guides Q4 EPS in-line, revs in-line
  • La-Z-Boy (LZB) beats by $0.02, beats on revs; guides Q2 revs below consensus
  • Macy's (M) beats by $0.23, misses on revs; reaffirms FY25 EPS guidance, guides FY25 revs below consensus; lowers comp guidance
  • Macy's (M) on conference call sees Q3 EPS of ($0.04) - $0.01 vs $0.01 FactSet Consensus; sees Q3 revs $4.7-4.82 bln vs $4.84 bln FactSet Consensus
  • PagSeguro Digital (PAGS) misses by BRL 0.04, beats on revs
  • Sociedad Quimica y Minera (SQM) reports H1 results
  • Target (TGT) beats by $0.39, reports revs in-line; Q2 comps +2%; guides Q3 EPS in-line; raises FY25 EPS guidance; sees FY25 comps at lower half of range
  • TJX (TJX) beats by $0.04, beats on revs; guides Q3 EPS below consensus; guides FY25 EPS in-line; to acquire 35% stake in privately held Brands for Less
  • TJX (TJX) on conference call sees Q3 revs of $13.9-14.0 bln vs. $13.85 bln FactSet consensus; sees FY25 revenue of $55.8-56.1 bln vs. $56.04 bln FactSet consensu
  • Toll Brothers (TOL) beats by $0.29, reports revs in-line; provides Q4 guidance; increases expected repurchase total for FY24 (Oct); projects FY24 EPS above consensus; raises adjusted gross margin forecast 
  • ZEEKR Intelligent Technology Holding Limited (ZK) reports Q2 (Jun) results, beats on revs
  • ZTO Express (ZTO) misses by RMB0.08, misses on revs; maintains guidance
• General News
  • Labor Department will release revised job figures today. Analysts expect the report will show that job growth was far less than previously thought, according to Bloomberg
  • Former President Trump says he would consider appointing RFK Jr. to cabinet position if he wins the presidency. Mr. Kennedy is considering dropping out of the presidential race and endorsing Mr. Trump, according to CNN
  • Israel and Hamas say there are still major disagreements in ceasefire negotiations, according to the New York Times
  • China introduced investigation into EU dairy imports, according to Bloomberg
  • RFK Jr. will end his presidential campaign on Friday and is leaning towards endorsing former President Trump, according to ABC News
  • 1stdibs.com (DIBS) Board of Directors authorized the Company to repurchase up to an aggregate of $10 million of the Company's common stock
  • Agilysys (AGYS) announces strategic acquisition of Book4Time, a spa management SaaS solution leader for ~$150 mln
  • Amazon (AMZN): Jeff Bezos has no plan to place a bid on the NBA's Boston Celtics, according to The Information
  • Amedisys' (AMED) Contessa selected by Centers for Medicare & Medicaid Services to test Medicare dementia care model
  • American Fincl (AFG) raises dividend by 12.7% to $0.80 per share
  • American Vanguard (AVD) announces that, following its decision in April 2024 to voluntarily stop sales of Dacthal herbicide products, the Company has submitted to the Environmental Protection Agency voluntary cancellation requests for all of its federal registrations of those products
  • Arvinas (ARVN) subsidiary enters into lease termination agreement with 101 College Street, LLC; to pay one-time cash fee of $41.5 mln
  • Asana (ASAN) announces their commitment to pursuing FedRAMP (Federal Risk and Authorization Management Program) authorization in order to serve the complex needs of enterprises in regulated industries (
  • Atossa Therapeutics (ATOS) and Quantum Leap Healthcare collaborative dose first patient in I-SPY 2 Trial Combining (Z)-Endoxifen with Abemaciclib for ER+/HER2- Breast Cancer
  • B. Riley Financial (RILY): Oaktree Capital (OAK) near deal to purchase majority stake in two RILY units, according to Bloomberg
  • Bavarian Nordic A/S (BVNRY) receives 440,000 dose contract to supply smallpox and mpox vaccines; order was anticipated as part of 2024 guidance and has no impact on the remaining 2024/25 capacity for smallpox and mpox vaccine
  • BigBear.ai (BBAI) and Concept Solutions team awarded 10yr $2.4 billion shared contract with U.S. Federal Aviation Administration to provide IT solutions and emerging tech
  • Bitfarms (BITF): Riot Platforms (RIOT) affirms increased active stake to 19.9% following the purchase of 4,512,860 shares 8/15-8/20
  • BridgeBio Pharma (BBIO) provides GondolaBio joint venture details
  • Bristol-Myers (BMY) receives U.S. Food and Drug Administration sBLA acceptance for first-line treatment of unresectable hepatocellular carcinoma
  • Brookfield (BAM) wants banks to backstop $10 bln in debt for Grifols (GRFS) takeover, according to Bloomberg
  • Cardinal Health (CAH) expands medical product distribution footprint in Northeast Ohio
  • Cibus Global (CBUS) CFO will be taking an indefinite leave of absence
  • Coca-Cola Consolidated (COKE) increases quarterly dividend to $2.50/share, up from $0.50/share; approves $1.0 bln share repurchase program
  • Comcast's (CMCSA) Peacock had 398K in average daily signups during first week of Olympics, according to Antenna
  • Cognyte Software (CGNT): Leading Independent Proxy Advisory Firm ISS Recommends Cognyte Shareholders Vote “FOR” Earl Shanks and Elad Sharon, “AGAINST” Value Base Fund’s Nominee Tal Yaacobi, and “FOR” the Proposal to Approve the Amendments to Cognyte’s CEO Compensation Plan
  • Dada (DADA) elects new chairman; Interim President resigns for personal reasons
  • Duke Energy (DUK) receives approval from the Florida Public Service Commission for a multiyear rate agreement that includes an estimated savings of 5% in 2025 on typical residential electric bills
  • Electronic Arts (EA): Projected U.S. spending on video game hardware, content and accessories reached $4.8B in July 2024, gaining 10% when compared to a year ago, according to Circana
  • Emerson (EMR) makes a strategic investment through its corporate venture capital arm Emerson Ventures in Symmera, an early-stage company simplifying device authentication and data protection
  • Eventbrite (EB) entered into separate, privately negotiated repurchase transactions with a limited number of holders of its existing 5.000% Convertible Senior Notes due 2025
  • Everspin Technologies (MRAM) awarded $14.55 mln to provide manufacturing services for aerospace and defense segments
  • Franklin Resources' (BEN) Western Asset Management appointed Michael Buchanan to Chief Investment Officer; Ken Leech on leave of absence effective immediately (recently received a Wells Notice)
  • GDEV Inc. (GDEV) announces one-for-ten reverse share split
  • Hain Celestial (HAIN) takes strategic actions to progress the Fuel pillar of its Hain Reimagined multi-year business strategy
  • IHS Holding Limited (IHS) eyeing potential sale of businesses in Rwanda & Zambia, according to Bloomberg
  • Incyte (INCY) will present key data from its oncology portfolio at the upcoming European Society of Medical Oncology Congress 2024
  • Iridium Communications (IRDM) announces that Thomas Fitzpatrick, the Company's CFO
  • JD.com (JD): Walmart (WMT) filed amendment to 13G affirming no holding
  • JD.com (JD) confirms it is aware that Walmart (WMT) filed a Schedule 13G/A indicating no shareholding
  • Leonardo DRS (DRS) awarded production order for $52 million was made under the current Family of Weapon Sights–Sniper (FWS-S) IDIQ contract
  • LivePerson (LPSN) Founder Robert P. LoCascio files preliminary proxy statement, nominates two highly qualified candidates focused on AI and Enterprise B2B to the LivePerson board of directors
  • Medtronic (MDT) earns FDA approval for expanded MRI labeling, making its best-in-class MRI capability even stronger
  • Merck (MRK): Study shows effectiveness of rVSV-ZEBOV vaccination during the 2018–20 Ebola virus disease epidemic in the Democratic Republic of the Congo: a retrospective test-negative study
  • Microchip (MCHP) detected potentially suspicious activity involving its IT systems; determines that unauthorized party disrupted use of certain servers and some business operations
  • NextDecade (NEXT) subsidiary withdraws applications at the FERC for the proposed carbon capture and storage project at the Rio Grande LNG facility
  • Nordson (NDSN) has completed the acquisition of Atrion Corporation (ATRI)
  • Nova Minerals Limited (NVA) provides an update on its Estelle Gold-Antimony Project, in Alaska
  • Oshkosh (OSK) awarded $1.54 bln U.S. Army contract
  • Ovintiv (OVV) follow up to report that it is mulling sale of operations in the Uinta Basin for $2 bln
  • Panasonic Energy (PCRFY) has taken a license from CAMX Power to the latest GEMX platform of cathode active material for lithium-ion batteries
  • Parsons (PSN) to serve as lead designer on Honolulu rail project with a project value of $1.66 bln
  • Phillips 66 (PSX) powers forward in EV charging
  • PROCEPT BioRobotics (PRCT) announces FDA 510(k) clearance of its next-generation platform, the HYDROS Robotic System
  • Quest Diagnostics (DGX) announces a definitive agreement for Quest to acquire select assets of University Hospitals' outreach laboratory services business
  • RedHill Biopharma (RDHL) announced the launch of Talicia (omeprazole magnesium, amoxicillin and rifabutin) in the UAE – making it available by prescription to treat adults with Helicobacter pylori (H. pylori) infection
  • Regeneron Pharma (REGN) receives Complete Response Letter for BLA for Linvoseltamab
  • Sabre (SABR) signs long-term distribution agreement with Delta Air Lines (DAL)
  • Sibanye-Stillwater (SBSW) acquired the Sandouville nickel refinery (Sandouville refinery) in 2022 with a view to producing nickel sulphate, targeting the European battery supply chain
  • Stellantis (STLA) CEO Carlos Tavares will visit Detroit to address profit situation, according to Reuters
  • Take-Two (TTWO) provides updates on new releases
  • Telephone & Data (TDS) to transfer ownership of its Texas cable operations
  • Tesla (TSLA): Earlier, NHTSA ordered TSLA to recall 9,136 year 2016 Model X's related to trim on the roof that could separate
  • Textron (TXT) Aviation announces that the Cessna SkyCourier twin utility turboprop has been awarded type certification by the Civil Aviation Authority of the Philippines, expanding the aircraft’s ability to support operational activities in remote areas of southeast Asia
  • TD Synnex (SNK), along with two other companies, awarded $848 mln U.S. Navy contract
  • UTime Limited (WTO) announces AI health strategy and strategic collaboration
  • V2X (VVX) receives $3.7 bln task order to spearhead next-generation readiness and training capabilities for U.S. Army Worldwide
  • Verra Mobility (VRRM) partners with Xtract to allow fleet customers the ability to improve claims processing speed and accuracy

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

• Upgrades:
  • BrightView (BV) upgraded to Buy from Hold at Jefferies; tgt raised to $17
  • Consensus Cloud Solutions (CCSI) upgraded to Buy from Neutral at BTIG Research; tgt $30
  • Corning (GLW) upgraded to Outperform from Neutral at Mizuho; tgt raised to $47
  • Dada (DADA) upgraded to Neutral from Sell at Citigroup; tgt raised to $1.50
  • EPR Properties (EPR) upgraded to Strong Buy from Outperform at Raymond James; tgt $54
  • NETSTREIT (NTST) upgraded to Strong Buy from Outperform at Raymond James; tgt lowered to $19
  • Texas Instruments (TXN) upgraded to Buy from Neutral at Citigroup; tgt raised to $235
  • Woodward (WWD) upgraded to Buy from Hold at Truist; tgt raised to $187
• Downgrades:
  • Aadi Bioscience (AADI) downgraded to Hold from Buy at TD Cowen
  • Altus Power (AMPS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $4
  • American Express (AXP) downgraded to Neutral from Buy at BofA Securities; tgt $263
  • BRP Inc. (DOOO) downgraded to Hold from Buy at Stifel
  • BRP Inc. (DOOO) downgraded to Sector Perform from Outperform at National Bank Financial
  • Chewy (CHWY) downgraded to Mkt Perform from Outperform at Raymond James
  • Cogent Communications (CCOI) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $65
  • Cementos Pacasmayo (CPAC) downgraded to Underweight from Neutral at JP Morgan
  • P10, Inc. (PX) downgraded to Neutral from Buy at UBS; tgt raised to $10.50
  • Sonoco Products (SON) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $52
  • Starbucks (SBUX) downgraded to Sell from Hold at DZ Bank; tgt $85
  • Triumph Group (TGI) downgraded to Hold from Buy at Truist; tgt lowered to $15
  • Vipshop (VIPS) downgraded to Hold from Outperform at CLSA
• Others:
  • Clearside Biomedical (CLSD) initiated with a Buy at Chardan Capital Markets; tgt $6
  • CEMEX S.A. (CX) resumed with an Overweight at JP Morgan; tgt $8
  • Eos Energy (EOSE) resumed with a Buy at Stifel; tgt $6
  • MicroStrategy (MSTR) initiated with an Overweight at Cantor Fitzgerald; tgt $194
  • TransMedics Group (TMDX) initiated with a Buy at Needham; tgt $208
  • TWFG, Inc. (TWFG) initiated with an Outperform at William Blair

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 225,000; prior 227,000) and Continuing Claims (prior 1.864 mln)
  • 10:00 ET: July Existing Home Sales (Briefing.com consensus 3.90 mln; prior 3.89 mln)
  • 10:30 ET: Weekly natural gas inventories (prior -6 bcf)
• 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