After Hours Report

The stock market had a positive disposition through most of the session. The S&P 500 (flat) and Nasdaq Composite (-0.2%) closed near their lows of the day, though, following a sharp move lower in the afternoon. This price action coincided with NVIDIA (NVDA 117.59, -8.02, -6.4%) extending its post-earnings decline, along with other mega cap names giving back initial gains.

The "rest" of the market also pulled back from early highs, but maintained an overall positive bias. This was the case through the entire session despite the move in NVIDIA shares, which reported above-consensus earnings and guidance, but didn't live up to ultra-high expectations. NVIDIA was sliding under normal consolidation interest after a stellar year so far. Shares are still 137% higher this year including today's decline.

The Vanguard Mega Cap Growth ETF (MGK) settled 0.3% lower and the PHLX Semiconductor Index (SOX) logged a 0.6% decline.

Buying activity elsewhere provided offsetting support. The equal-weighted S&P 500 still logged a 0.4% gain. Advancers led decliners by a 2-to-1 margin at the NYSE and by a 3-to-2 margin at the Nasdaq. Upside moves led the Dow Jones Industrial Average to a fresh record despite a loss in Salesforce (CRM 257.01, -1.89, -0.7%), which initially traded higher in response to its earnings report.

Other names that reported earnings garnered positive responses, contributing to the upside bias. CrowdStrike (CRWD 271.67, +7.47, +2.8%), Affirm Holdings (AFRM 41.66, +10.08, +31.9%), and Best Buy (BBY 100.18, +12.39, +14.1%) were standouts in that respect. 

Today's pleasing economic releases didn't upend the soft landing narrative, acted as additional support. Jobless claims remain steady, below recession-like levels, and Q2 GDP was revised up.

The 10-yr note yield settled three basis points higher at 3.87% and the 2-yr note yield settled two basis points higher at 3.89%. On a related note, today's $44 billion 7-yr note sale met soft demand.

• S&P 500: +17.2% YTD
• Nasdaq Composite: +16.7% YTD
• S&P Midcap 400: +10.3% YTD
• Dow Jones Industrial Average: +9.7% YTD
• Russell 2000: +8.7% YTD

Reviewing today's economic data:

• July Adv. Intl. Trade in Goods -$102.7 bln; Prior was revised to -$96.6 bln from -96.8 bln
• July Adv. Retail Inventories 0.8%; Prior was revised to 0.9% from 0.7%
• July Adv. Wholesale Inventories 0.3%; Prior was revised to 0.1% from 0.2%
• Weekly Initial Claims 231K; Prior was revised to 233K from 232K, Weekly Continuing Claims 1.868 mln; Prior was revised to 1.855 mln from 1.863 mln
  • The key takeaway from the report is the steady standing of initial jobless claims, which remain well below levels typically associated with an economy in recession.
• Q2 GDP-Second Estimate 3.0%; Prior 2.8%, Q2 GDP Deflator - Second Estimate 2.5%; Prior 2.3%
  • The key takeaway from the report is that consumer spending (+2.9%) was solid in the second quarter, exceeding the prior eight quarter average of 2.2%.
• July Pending Home Sales -5.5% (Briefing.com consensus 1.2%); Prior 4.8%

Friday's economic calendar features the Fed's preferred inflation gauge in the form of the PCE Price Indexes. Other data include the final reading for the August University of Michigan Consumer Sentiment survey.

Overseas:

• Europe: DAX +0.6%, FTSE +0.4%, CAC +0.8%
• Asia: Nikkei -0.1%, Hang Seng +0.5%, Shanghai -0.5%

Commodities:

• Crude Oil +1.31 @ 75.90
• Nat Gas +0.04 @ 2.14
• Gold +22.40 @ 2560.40
• Silver +0.78 @ 30.00
• Copper +0.02 @ 4.23

After-Hours Spotlight:

• Autodesk (ADSK) beats by $0.15, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY25 EPS above consensus, revs above consensus... ADSK up 5.3%
• Dell (DELL) beats by $0.19, beats on revs... DELL up 4.9%
• Elastic (ESTC) beats by $0.10, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; guides FY25 EPS above consensus, revs below consensus... ESTC down 24.2%
• Intuitive Machines (LUNR) strengthens lunar service capabilities with $116.9 million NASA lunar contract award... LUNR up 11.8%
• lululemon athletica (LULU) beats by $0.22, reports revs in-line, comparable sales increased 3% in CC; guides Q3 EPS in-line, revs below consensus; lowers FY25 EPS and revenue guidance... LULU up 0.9%
• Marvell (MRVL) reports EPS in-line, beats on revs; guides Q3 EPS in-line, revs in-line... MRVL up 6.0%
• MongoDB (MDB) beats by $0.21, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus... MDB up 14.2%
• Ulta Beauty (ULTA) misses by $0.17, misses on revs, comps down -1.2%; guides FY25 EPS below consensus, revs below consensus, lowers comp guidance... ULTA down 7.2%

Fair Value for Friday, August 30:

• S&P 500: 5,608
• Nasdaq 100: 19,389
• DJIA: 41,428

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

• Earnings/Guidance (Full Earnings Calendar):
  • 1-800-FLOWERS (FLWS) misses by $0.07, misses on revs; guides FY25 revs in-line
  • Affirm (AFRM) beats by $0.34, beats on revs; guides Q1 revs above consensus
  • American Eagle (AEO) beats by $0.01, misses on revs; guides FY25 revs below consensus
  • Applied Digital Corporation (APLD) misses by $0.14, beats on revs
  • Best Buy (BBY) beats by $0.18, reports revs in-line, comps decreased 2.3%, beating its guidance for a drop of 3%; raises FY25 EPS guidance, lowers high end of revenue guidance range, lowers comp guidance
  • Birkenstock Holding Plc (BIRK) misses by EUR 0.11, reports revs in-line
  • Brown-Forman (BF.B) misses by $0.04, misses on revs
  • Burlington Stores (BURL) beats by $0.28, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY25 EPS in-line, revs in-line
  • Campbell Soup (CPB) beats by $0.01, reports revs in-line; guides FY25 EPS in-line, revs in-line
  • Can-Fite (CANF) Reports First Half 2024 Financial Results & Progress in Two Pivotal Phase III Clinical Studies
  • Catalent (CTLT) beats by $0.20, beats on revs; Note: Co previously announced it agreed to be acquired
  • CIBC (CM) beats by CAD0.19, beats on revs; announces intention to repurchase up to 20 million common shares
  • Cooper (COO) beats by $0.05, reports revs in-line; guides Q4 EPS above consensus, revs above consensus
  • CrowdStrike (CRWD) beats by $0.07, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus
  • Dollar General (DG) misses by $0.09, misses on revs; Q2 comps 0.5%; lowers FY25 EPS, revenue, and comp guidance
  • Edison's (EIX) Southern California Edison Company provides CPUC update
  • Five Below (FIVE) reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line; guides FY25 EPS mostly below consensus, revs in-line
  • Gap (GAP) beats by $0.13, beats on revs; Q2 comps +3% yr/yr; reaffirms FY25 (Jan) sales guidance
  • GMS (GMS) misses by $0.21, misses on revs
  • Greif (GEF) misses by $0.11, beats on revs
  • Guess? (GES) misses by $0.01, reports revs in-line; guides Q3 EPS below consensus; guides FY25 EPS below consensus, revs below consensus
  • HP Inc. (HPQ) misses by $0.03, beats on revs; guides Q4 EPS in-line; increases repurchase plan to $10.0 bln
  • Malibu Boats (MBUU) misses by $0.07, reports revs in-line; guides FY25 revs below consensus
  • MasterCraft (MCFT) beats by $0.18, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus
  • NetApp (NTAP) beats by $0.11, reports revs in-line; guides Q2 EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs in-line; CFO to retire
  • Noah Holdings (NOAH) provides financial update; authorizes share repurchase planc
  • Nordic American Tanker (NAT) reports Q2 results
  • Nutanix (NTNX) beats by $0.07, beats on revs; guides Q1 revs in-line; guides FY25 revs in-line
  • NVIDIA (NVDA) beats by $0.03, beats on revs; guides Q3 revs above consensus; Blackwell samples shipping to customers; approves additional $50.0 bln for repurchases
  • Okta (OKTA) beats by $0.11, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus
  • Ollie’s Bargain Outlet (OLLI) reports EPS in-line, beats on revs, comps +5.8%; guides FY25 EPS in-line, revs above consensus, raises FY25 comp guidance
  • Photronics (PLAB) misses single estimate on top and bottom lines; guides Q4 EPS in-line, revs in-line
  • Pure Storage (PSTG) beats by $0.07, beats on revs; guides Q3 revs above consensus; guides FY25 revs in-line
  • Salesforce (CRM) beats by $0.21, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY25 EPS above consensus, revs in-line; Also announces CFO transition
  • Stratasys (SSYS) beats by $0.01, misses on revs; guides FY24 EPS below consensus, revs below consensus; Also announces restructuring actions, including a workforce reduction of approximately 15%
  • Titan Machinery (TITN) misses by $0.12, misses on revs; guides FY25 EPS in-line
  • Veeva Systems (VEEV) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs in-line
  • Victoria's Secret (VSCO) beats by $0.03, reports revs in-line; raises FY25 revenue guidance, guides Q3 EPS and revenue above consensus
• General News
  • Atlanta Fed President Raphael Bostic says it might be time to lower rates, but still looking for additional data to support that decision, according to Bloomberg
  • California legislators pass artificial intelligence regulation bill, according to Reuters
  • TikTok ruling could have implications for social media's liability shield, according to Bloomberg
  • Bill Ackman wants to revive IPO plans, according to FT
  • 1-800-FLOWERS (FLWS) announced that Bill Shea has confirmed his intention to retire as Chief Financial Officer, effective December 29, 2024
  • Albertsons (ACI) pharmacies are now offering the latest monovalent mRNA COVID vaccines from Pfizer and Moderna along with the annual flu vaccine, in anticipation of a challenging flu and COVID-19 season, as forecasted by the Centers for Disease Control and Prevention
  • Alphabet (GOOG) releases new Gemini AI features
  • Apple (AAPL) in discussions to invest in OpenAI, according to WSJ
  • Arrow Electronics (ARW) and Citrix announce a strategic distribution agreement
  • ASML (ASML): Netherlands will put more restrictions on ASML's chip business, according to Bloomberg
  • Atour Lifestyle Hldgs. Ltd. (ATAT) approved a three-year annual dividend policy
  • Azul S.A. (AZUL) updates the market on recent news - noting 'misleading article'
  • Bayer AG (BAYRY) starts Phase III trial in non-small cell lung cancer
  • Big Lots (BIG) considering bankruptcy filing, according to Bloomberg
  • BioMarin Pharmaceutical (BMRN) to reduce global workforce by approximately 225 employees
  • BJ Restaurants (BJRI) CEO Gregory S. Levin stepping down; appoints C. Bradford Richmond as Interim CEO
  • Chipotle Mexican Grill (CMG) accelerates the appointment of Adam Rymer to Chief Financial Officer, beginning October 1
  • Cognyte Software (CGNT) confirms that Glass Lewis concluded that replacing a Cognyte Director with Value Base’s nominee is 'not warranted at this time'
  • Cognyte Software (CGNT): Value Base’s proposals receive support of Neuberger Berman, a leading global investment manager and a top shareholder of Cognyte, which intends to vote at the Cognyte Software AGM
  • Collective Mining (CNL) commences drilling at the Plutus Target in search of a copper and gold rich porphyry system
  • Customers Bancorp (CUBI): KBRA comments on Customers Bancorp and Customers Bank written agreement with the Board of Governors of the Federal Reserve System
  • Delcath Systems, Inc. (DCTH) Announces positive results from independent study on liver-directed therapy for Uveal Melanoma Patients
  • Diana Shipping (DSX) announces that through a separate wholly-owned subsidiary, it has entered into a time charter contract with Cargill Ocean Transportation (Singapore) Pte. Ltd., for one of its Ultramax dry bulk vessels, the m/v DSI Pegasus
  • FMC Corp (FMC) announces that the United States District Court for the Eastern District of Pennsylvania granted a temporary restraining order against Sharda USA LLC
  • General Motors (GM): BrightDrop Electric Commercial vans to join Chevrolet
  • Geospace Tech. (GEOS) announces rental agreement with leading geophysical solution provider with minimum value of $11.9 mln
  • GlaxoSmithKline (GSK) receives EMA approval for Arexvy for 50-59 at risk
  • Goldman Sachs (GS): Federal Reserve Board modifies stress capital buffer requirement for Goldman Sachs; adjusted to 6.2% from a preliminary 6.4%
  • Google (GOOG. GOOGL) considers construction of large data center in Vietnam, according to Reuters
  • Grifols, S.A. (GRFS) attracting more PE interest, according to Bloomberg
  • Humana (HUM) announces a new value-based kidney care program with Evergreen Nephrology designed to advance quality of care and help optimize health outcomes for people living with chronic kidney disease and end-stage kidney disease
  • iLearningEngines (AILE) issues statement on short seller report
  • Immunocore (IMCR) announces that its Chief Financial Officer and Head of Strategy, Brian Di Donato, has informed the Company of his plans to leave at the end of the year
  • Inseego (INSG) announces the availability of the Inseego Wavemaker 5G indoor router FX3110
  • Intel (INTC): CEO at tech conference says cost cuts underway and that company is expecting improvement in revenues and margins - CNBC
  • James River Group (JRVR) in discussions to sell Falls Lake unit to private equity, according to Insurance Insider
  • Joby Aviation (JOBY) secured deal with Virgin Atlantic, according to Tech Crunch
  • JPMorgan Asset Management (JPM) announces liquidation of two exchange-traded funds
  • Kanzhun Limited (BZ) announces adoption of new share repurchase program
  • Lifecore Biomedical (LFCR) announced that John Morberg will be stepping down from his position as chief financial officer
  • Lockheed Martin (LMT) awarded $3.91 bln U.S. Navy contract; also awarded $1.0 bln U.S. Navy contract modification, extending services to provide continued support for F-35 Joint Strike Fighter laboratory facilities and F-35 developmental flight test activities
  • Lockheed Martin (LMT) confirmed earlier that the U.S. Army awarded the Javelin Joint Venture $1.3 bln contract
  • Marathon Oil (MRO) receives necessary stockholder approval for Marathon Oil's pending merger with ConocoPhillips (COP); cos expect the transaction to close late in the fourth quarter of 2024
  • Merck (MRK) provides update on phase 3 KEYNOTE-867 and KEYNOTE-630 trials
  • MeridianLink (MLNK) appoints Elias Olmeta as CFO; joins the Company to drive the next phase of growth and profitability
  • Meta Platforms's (META) Instagram considering integration of Spotify (SPOT), according to Fortune
  • Methode Electronics (MEI) appoints Laura Kowalchik as CFO, effective Oct 1
  • Microsoft (MSFT): OpenAI, the creator and owner of ChatGPT that's backed by Microsoft, in negotiations to raise several billion dollars that would value the company at more than $100 bln, according to the Wall Street Journal
  • NetApp (NTAP) announces new capabilities that support VMware Cloud Foundation deployments
  • Nokia (NOK): Samsung (SSNLF) reportedly interested in NOK's mobile assets, according to Bloomberg
  • Nokia (NOK): Following reports of interest from Samsung (SSNLF), NOK says it is committed to the success of its Mobile Networks biz
  • North American Construction Group (NOA) awarded five-year contract by an existing client; total value of approximately $375 mln
  • NVIDIA (NVDA) held talks about joining funding round for OpenAI, according to Bloomberg
  • PayPal (PYPL) announces an expansion of its global strategic partnership with Fiserv (FI) which will streamline how merchant clients of Fiserv enable PayPal experiences for their customers
  • Philip Morris International (PM): FDA announced a final rule that raises the minimum age for certain restrictions on tobacco product sales
  • Qiagen (QGEN) expands its Master Collaboration Agreement with AstraZeneca (AZN) to develop and commercialize companion diagnostics for AstraZeneca’s future therapies being developed to address chronic disease
  • QuidelOrtho (QDEL) has received U.S. FDA 510(k) clearance for its VITROS syphilis assay as part of its menu, strengthening QuidelOrtho’s position as a leader in infectious disease testing
  • Reddit (RDDT) investigating an outage affecting thousands of U.S.-based users, according to Reuters
  • Repare Therapeutics (RPTX) to reduce overall workforce by approximately 25%; majority of reductions from the preclinical group
  • Rivian Automotive (RIVN) introduces a new referral program
  • Rubrik (RBRK) and Cisco (CSCO) to safeguard data against cyberattacks
  • SecureWorks (SCWX): Dell (DELL) mulling sale of SCWX, according to Reuters
  • Sezzle (SEZL) and WebBank entered into a five-year strategic partnership program by executing a Loan and Receivables Sale Agreement and Marketing and Servicing Agreement
  • Shell plc (SHEL) aims to lower oil and gas exploration and development workforce by 20%, according to Reuters
  • Sigma Lithium (SGML) received binding commitment from BNDES (National Brazilian Bank for Economic and Social Development) for a BRL487 mln development loan to fully fund construction of its Second Greentech Carbon Neutral Plant in Brazil
  • Smurfit Westrock plc (SW) announces ICSID award in dispute with Venezuela
  • Spire Global (SPIR) entered into a waiver and amendment to its current financing agreement with Blue Torch Capital
  • Supermicro (SMCI) Previews New Max Performance Intel-based X14 Servers for AI, HPC, and Critical Enterprise Workloads
  • Tesla (TSLA) requested that Canada lower China-made EV tariff, according to Reuters
  • Toyota (TM) extended production suspension because of typhoon, according to Nikkei
  • Tyler Tech (TYL): Idaho Supreme Court transitions Tyler Technologies’ court case management solution from on-premises to cloud deployment
  • U.S. Steel (X): Nippon Steel announces transformative investments at U. S. Steel's Mon Valley Works and Gary Works

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

• Upgrades:
  • Eni S.p.A. (E) upgraded to Overweight from Equal-Weight at Morgan Stanley
  • Foot Locker (FL) upgraded to Overweight from Equal Weight at Barclays; tgt $34
  • Marriott (MAR) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $262
  • Neurocrine Biosciences (NBIX) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $159
• Downgrades:
  • Bancolombia S.A. (CIB) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $34
  • CAVA Group (CAVA) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $110
  • Equinor (EQNR) downgraded to Underweight from Equal-Weight at Morgan Stanley
  • Kohl's (KSS) downgraded to Underweight from Neutral at JP Morgan; tgt $19
  • Okta (OKTA) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $75
  • Topgolf Callaway Brands (MODG) downgraded to Hold from Buy at Jefferies; tgt lowered to $12
• Others:
  • Enphase Energy (ENPH) initiated with a Mkt Perform at William Blair
  • First Solar (FSLR) initiated with a Mkt Perform at William Blair
  • FirstSun Capital Bancorp (FSUN) initiated with a Mkt Perform at Raymond James
  • GE Vernova (GEV) initiated with an Outperform at William Blair
  • MarketAxess (MKTX) added to 30-day positive catalyst watch at Citigroup
  • Nomura Holdings (NMR) resumed with a Neutral at JP Morgan
  • Nuvalent (NUVL) initiated with an Overweight at Barclays; tgt $100
  • Patrick Industries (PATK) initiated with a Buy at The Benchmark Company; tgt $145
  • Reynolds Consumer Products (REYN) initiated with a Buy at Jefferies; tgt $38
  • SolarEdge Technologies (SEDG) initiated with a Mkt Perform at William Blair
  • Take-Two (TTWO) initiated with a Buy at Redburn Atlantic; tgt $194
  • Tesla (TSLA) initiated with an Outperform at William Blair

• Econ Data (Friday):
  • 8:30 ET: July Personal Income (Briefing.com consensus 0.2%; prior 0.2%), Personal Spending (Briefing.com consensus 0.5%; prior 0.3%), PCE Prices (Briefing.com consensus 0.2%; prior 0.1%), and Core PCE Prices (Briefing.com consensus 0.1%; prior 0.2%)
  • 10:00 ET: final August University of Michigan Consumer Sentiment (Briefing.com consensus 67.8; prior 67.8)
• Earnings:
  • Monday (Aug 26)
    • Pre-Market: PDD TCOM
    • After-Hours: HEI
  • Tuesday (Aug 27)
    • Pre-Market: AMWD HAIN SCSC
    • After-Hours: AMBA BOX NCNO JWN PVH SMTC S
  • Wednesday (Aug 28)
    • Pre-Market: ANF BBWI CHWY DCI FL SJM KSS LI PDCO
    • After-Hours: AFRM COO CRWD FIVE GEF GES HPQ NTAP PSTG NTNX NVDA OKTA CRM VEEV VSCO
  • Thursday (Aug 29)
    • Pre-Market: FLWS AEO BBY BIRK BF.B BURL CPB DG GMS MBUU MCFT OLLI PLAB TITN
    • After-Hours: ADSK DELL DOMO ESTC GAP HCP LULU MRVL MDB SSYS ULTA
  • Friday (Aug 30)
    • Pre-Market: FRO JKS
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike