After Hours Report

The stock market continued this winning week with another solid move higher. The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), Dow Jones Industrial Average (+0.6%), and Russell 2000 (+1.1%) settled near their best levels of the session.

Upside momentum was a support factor in today's trade, along with ongoing buying in NVIDIA (NVDA 119.14, +2.24, +1.9%), which is nearly 16% higher than Friday's close. 

Many stocks participated in today's climb. 23 of the 30 Dow components settled higher and all 11 S&P 500 sectors registered gains. The communication services (+2.0%) and consumer discretionary (+1.2%) sectors were the top performers, boosted by gains in their mega cap constituents. 

The energy sector was the next best performer, responding to rising commodity prices. WTI crude oil futures rose 2.5% to $68.97/bbl and natural gas futures settled 4.0% higher at $2.36/mmbtu.

The rate-sensitive real estate sector (+0.1%) logged the slimmest gain as market rates moved up slightly. The 10-yr note yield settled three basis points higher at 3.68% and the 2-yr note yield was unchanged for the day at 3.65%. On a related note, today's $22 billion 30-yr bond sale was met with soft demand.

Today's economic releases didn't garner a big reaction from stocks or bonds. Initial jobless claims were little changed and remain below recession-like levels at 230,000 and the August Producer Price Index reflected moderating inflation at the wholesale level.

• S&P 500: +17.3% YTD
• Nasdaq Composite: +17.0% YTD
• Dow Jones Industrial Average: +9.0% YTD
• S&P Midcap 400: +7.3% YTD
• Russell 2000: +5.1% YTD

Reviewing today's economic data:

• Weekly Initial Claims 230K (Briefing.com consensus of 229K); Prior was revised to 228K from 227K, Weekly Continuing Claims 1.850 mln; Prior was revised to 1.845 mln from 1.838 mln
  • The key takeaway from the report is that initial jobless claims remained fairly steady, underscoring the point that the labor market isn't suffering a material and rapid erosion that would challenge the soft landing view.
• August PPI 0.2% (Briefing.com consensus of 0.2%); Prior was revised to 0.0% from 0.1%, August Core PPI 0.3% (Briefing.com consensus 0.2%); Prior was revised to -0.2% from 0.0%
  • The key takeaway from the report is the recognition that inflation at the wholesale level is moderating, which lessens concerns about heightened pass-through pressures to the consumer.
• August Treasury Budget -$380.1 bln; Prior -$243.7 bln
  • The key takeaway from the report is that the U.S. government continues to run large budget deficits, which necessitates a large amount of Treasury issuance for government funding.

Friday's calendar includes:

• 8:30 ET: August Import Prices (prior 0.1%), Import Prices ex-oil (prior 0.1%), Export Prices (prior 0.7%), and Export Prices ex-agriculture (prior 1.0%)
• 10:00 ET: Final September University of Michigan Consumer Sentiment (prior 67.9)

Overseas:

• Europe: DAX +1.0%, FTSE +0.6%, CAC +0.5%
• Asia: Nikkei +3.6%, Hang Seng +0.8%, Shanghai -0.2%

Commodities:

• Crude Oil +1.67 @ 68.97
• Nat Gas +0.09 @ 2.36
• Gold +38.00 @ 2580.90
• Silver +1.16 @ 30.08
• Copper +0.04 @ 4.19

After-Hours Spotlight:

• Adobe (ADBE) beats by $0.12, reports revs in-line; guides Q4 EPS in-line, revs below consensus... ADBE down 9.5%
• Aurinia Pharma (AUPH) restructures its Board; CEO remains Director; appoints Kevin Tang, President of Tang Capital Management, to Board; accepts resignations of three directors; Tang Capital Management discloses 5.1% passive stake as of September 6, 2024... AUPH up 3.3%
• Interactive Brokers (IBKR) up +1% as it prepares to launch election bets next week, according to WSJ... IBKR up 0.9%
• Oracle (ORCL) spiking following remarks at Financial Analyst Meeting, including raising its sales outlook for FY26 to at least $66.0 bln from $65.0 bln, according to Bloomberg... ORCL up 5.4%
• RH (RH) beats by $0.13, reports revs in-line; guides Q3 revs in-line; guides FY25 revs in-line... RH up 19.4%

Fair Value for Thursday, Sept. 12:

• S&P 500: 5,601
• Nasdaq 100: 19,443
• DJIA: 41,129

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

• Earnings/Guidance (Full Earnings Calendar):
  • 3M (MMM) reaffirms FY24 EPS guidance at conference
  • Alaska Air (ALK) raises Q3 EPS guidance
  • American Tower (AMT) closes the sale of operations in India to Brookfield (BAM)
  • Aviat Networks (AVNW) to delay 10-K Filing; sees FY24 revs below consensus
  • Belden (BDC) provides long term targets at investor day and approved a new share repurchase authorization of $300 mln
  • Caleres (CAL) misses by $0.24, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY25 EPS below consensus, revs below consensus
  • Delta Air Lines (DAL) lowers Q3 revenue guidance due to CrowdStirke (CRWD) impact; sees FY24 EPS above consensus, excluding impact of outage
  • Dow (DOW) sees Q3 revs below consensus
  • IBM (IBM) discloses it expects to recognize a one-time non-cash pre-tax pension settlement charge of approximately $2.7 billion in Q3 related to purchase of the group annuity contract
  • Kroger (KR) beats by $0.02, reports revs in-line; comps +1.2%; reaffirms FY25 EPS guidance; raises low end of its FY25 Identical Sales outlook
  • Lovesac (LOVE) beats by $0.06, reports revs in-line; guides Q3 revs below consensus; guides FY25 EPS in-line, revs in-line
  • Moderna (MRNA) provides R&D day highlights progress and strategic priorities; sees FY25 revenue below consensus
  • Modine Manufacturing (MOD) provided FY27 financial targets during Investor Day earlier today, including three-year revenue CAGR of 10-13%
  • Oxford Industries (OXM) misses by $0.23, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus
  • Signet Jewelers (SIG) beats by $0.11, reports revs in-line; guides Q3 revs in-line; reaffirms FY25 EPS/rev guidance; Q3 comps -3.4%
  • Turkcell (TKC) reports Q2 results and says reviewing guidance; progressing in line with strategic goals (halted)
  • U.S. Bancorp (USB) provides guidance at Investor Day
  • Viad Corp (VVI) provides investor updates in presentation; expects 2025 revs to be in line with 2024 with margins of 8%+
• General News
  • Former President Trump suggested he will not participate in any additional debates, according to CNN
  • ECB cut deposit facility rate by 25 bps, as expected, and marginal lending facility rate and main refinancing rate by 60 bps, as expected
  • Hurricane Francine makes landfall in Louisiana as a category two storm
  • IEA say China’s slowdown is weighing on the outlook for global oil demand growth
  • Australia threatens to fine internet companies for failing to prevent spread of misinformation, according to Reuters
  • EU rejects offers from China EV companies to avoid tariffs, according to FT
  • Accenture (ACN) awarded $1.6 bln U.S. Air Force contract
  • AdvanSix (ASIX) names Sidd Manjeshwar as CFO
  • Amazon's (AMZN) AWS to invest 10 bln reais, or about $1.8 bln, in Brazil through 2034 to expand data center operations, according to Reuters
  • Amazon (AMZN) confirms it is investing an additional $2.1 billion in the Delivery Service Partner program, in its biggest investment yet
  • Amazon (AMZN) increases driver pay to nearly $22/hour, according to WSJ
  • Amazon (AMZN): Indian antitrust probe reveals Amazon and Walmart's Flipkart favored select sellers, violating local competition laws, according to Reuters
  • American Airlines (AAL) confirms flight attendants ratified a new collective bargaining agreement
  • American Airlines (AAL): APFA union says "With 95% of eligible Flight Attendants voting, 87% of American Airlines Flight Attendants voted YES to ratify the 2024 agreement"
  • America Movil SA (AMX) discloses fine imposed by the IFT
  • Apple (AAPL): FDA authorizes first over-the-counter hearing aid software
  • Artisan Partners Asset Mgmt (APAM) reports that its preliminary assets under management as of August 31, 2024 totaled $166.2 billion
  • Ascendis Pharma (ASND) receives FDA Orphan Drug exclusivity for YORVIPATH
  • Aura Biosciences (AURA) Reports Positive Phase 2 End of Study Results Evaluating Bel-sar as a First-Line Treatment for Early-Stage Choroidal Melanoma
  • B2Gold (BTG) agrees on terms with Mali Government Relating to the Framework for the Fekola Complex; Approvals for Fekola Regional and Fekola Underground to be Expedited
  • Boeing (BA) union members will vote on tentative labor deal today, according to CNN
  • Build-A-Bear Workshop (BBW) authorizes new repurchase program of up to $100 mln
  • CareDx (CDNA) names Keith Kennedy as COO and Jessica Meng as Chief Commercial Officer; will be sharing its long-term growth strategy during an Investor Day in October 2024
  • Centuri Holdings (CTRI) completes the construction of more than half of the specialized wind turbine foundation componentry for Ørsted’s Sunrise Wind project at the Port of Coeymans in New York’s Capital District
  • Ceva (CEVA) renews share repurchase authorization
  • Civeo (CVEO) last night announced renewal of share repurchase authorization
  • Commercial Vehicle Group (CVGI) provides investor updates in presentation
  • Comtech Telecom (CMTL) COO Maria Hedden notified the Company of her decision to resign from the Company, effective as of September 13, 2024
  • Coeur Mining (CDE) provides an operational update at the expanded Rochester silver-gold mine in Nevada, including positive throughput trends and significant progress on reducing overall crushing size
  • Cresco Labs (CRLBF) announces Dennis Olis to retire as Chief Financial Officer
  • CrowdStrike (CRWD) announces an expanded partnership with 1Password to simplify security for 150,000 customers, with a focus on small and midsize businesses
  • CrowdStrike (CRWD) engineers complained about rushed deadlines and high workloads, according to Semafor
  • CuriosityStream (CURI) unit expands FAST distribution with Samsung (SSNLF) TV Plus
  • Cytek Biosciences (CTKB) COO Christopher Williams submitted his resignation from his position effective as of September 27, 2024, to pursue another career opportunity
  • Cytek Biosciences (CTKB) confirms resignation of COO Chris Williams; Cytek has chosen not to replace the COO position
  • Equinox Gold (EQX) updated Mineral Resource Estimate ("MRE") for its 100% owned, exploration-stage Hasaga Property
  • Fortinet (FTNT) suffered a data breach, according to Bleeping Computer
  • Franklin Resources (BEN) reports preliminary month-end assets under management (AUM) of $1.68 trillion at August 31, 2024 compared to $1.66 trillion at July 31, 2024
  • Fulcrum Therapeutics (FULC) Announces Topline Results from Phase 3 REACH Clinical Trial of Losmapimod in Facioscapulohumeral Muscular Dystrophy
  • Gauzy (GAUZ) announces purchases of Gauzy shares by CEO, other senior executives and key long-term investor
  • General Motors (GM) in discussions to purchase electric vehicle batteries that will be produced at TDK Corp (TTDKF) US factory, according to Bloomberg
  • GlaxoSmithKline (GSK) reports mRNA flu vaccine Phase II headline data
  • Goldman Sachs (GS) will make $92 mln from Kellanova (K) sale to Mars, according to Financial Times
  • Gray Television (GTN) and Missouri Valley Conference, Inc. announce a multi-year agreement to produce and distribute MVC men’s and women’s basketball regular-season games and opening-round / quarterfinal State Farm MVC Men’s Basketball Tournament contests beginning with the 2024-25 academic year
  • HDFC Bank (HDB): Mitsubishi Financial (MUFG) to stop discussions to acquire shares of non bank financial company under HDB, according to Nikkei
  • Inseego (INSG) Continues Debt Reduction and Capital Structure Improvements
  • Insight Enterprises (NSIT) authorizes new stock repurchase program of up to an aggregate of $300 mln
  • Invesco (IVZ) reports preliminary month-end assets under management (AUM) of $1,751.8 billion, an increase of 1.1% versus previous month-end. The firm delivered net long-term inflows of $2.4 billion in the month
  • Johnson & Johnson (JNJ) receives FDA approval for TREMFYA
  • Kelly Services (KELYA) names Troy R. Anderson as CFO, effective Oct 14
  • Kroger (KR) Announces Extension of Exchange Offers and Consent Solicitations for Albertsons Companies, Inc. Notes
  • Lazard (LAZ) reports August 2024 assets under management
  • Marten Transport (MRTN) details cost reduction initiatives
  • Masimo (MASI): Leading Proxy Advisory Firm Egan-Jones recommends stockholders Vote “FOR” Masimo’s Director Nominees, Joe Kiani and Christopher Chavez
  • Masimo’s (MASI) lawsuit forced Politan and Quentin Koffey to issue corrective disclosures on false and misleading statements made to Masimo stockholders on issues material to the proxy contest
  • MAXIMUS (MMS) has been awarded a five-year, $40 mln task order by the Internal Revenue Service to deliver end-to-end development and modernization services for the IRS Enterprise Data Platform
  • McDonald's (MCD) to extend $5 value meal deal until December, according to the Wall Street Journal
  • Medical Properties Trust (MPW) Takes Control of Its Real Estate From Steward Health Care
  • Merchants Bancorp (MBIN) announces appointment of Sean Sievers as its new CFO, effective Sept. 9
  • Merck (MRK): Health Canada Health Canada approves KEYTRUDA as monotherapy for the treatment of adult and pediatric patients with unresectable or metastatic microsatellite instability-high or mismatch repair deficient solid tumours that have progressed following prior treatment and who have no satisfactory alternative treatment options
  • Microsoft (MSFT) will eliminate 650 gaming jobs, according to Variety
  • Microsoft (MSFT): OpenAI to raise $6.5 bln from investors at a $150 bln valuation, according to Bloomberg
  • Mobile Infrastructure Corporation (BEEP) authorizes $10 mln share buyback program; to explore strategies to address gap between NAV and current share price
  • NETGEAR (NTGR) enters into settlement agreement with TP-Link Systems; receives $135 mln payment; raises Q3 guidance
  • Nokia (NOK) is considering replacing its CEO, but a Board spokesperson says they support the current CEO, according to FT
  • Norfolk Southern (NSC) appoints Mark R. George as President and CEO; reaffirms FY24 guidance
  • NVIDIA (NVDA) CEO in CNBC interview says a new industrial revolution is beginning
  • Odyssey Marine (OMEX) discloses International Centre for Settlement of Investment Disputes update
  • Palantir (PLTR) Reveals New Wave of Customers in Action at AIPCon
  • Pan American Silver (PAAS) Reports Mineral Reserves and Mineral Resources as at June 30, 2024
  • Peloton (PTON) provides pricing updates; Peloton Bike: £1,599 (UK); $2,699 (Australia); €1,899 (Germany and Austria)
  • Petrobras (PBR) begins start-up of largest natural gas processing unit in Brazil
  • Philip Morris International (PM) increases quarterly dividend to $1.35/share from $1.30/share
  • PPL Corp (PPL) finalizes award for up to $72 million in federal funding from U.S. Department of Energy's Office of Clean Energy Demonstrations
  • RTX (RTX) awarded $1.2 bln U.S. Air Force contract modification
  • Royal Bank of Canada (RY) announced that Katherine Gibson has been appointed Chief Financial Officer, effective immediately
  • Samsung (SSNLF) begins mass production of its one-terabit quad-level cell 9th-generation vertical NAND
  • SITE Centers (SITC) announces spin-off and distribution dates of its portfolio of convenience retail properties into a separate publicly traded company
  • SOPHiA GENETICS (SOPH) Announces Updates on SOPHiA UNITY at ESMO 2024
  • Stellantis (STLA) defended concerns from dealers, according to Reuters
  • Tutor Perini (TPC) announces that the Company, in a joint venture with its subsidiary, Black Construction Corporation, has been awarded a contract by the Naval Facilities Engineering Systems Command, Pacific District, for the P-324 9th Engineering Support Battalion Headquarters Project at Marine Corps Base Guam
  • Union Pacific (UNP) provides Hurricane Francine network impact update; All rail lines in the impacted area have been restored to service
  • Uranium Energy Corp (UEC) Intersects 11.4% eU3O8 over 2.4 metres at Roughrider North Discovery, 850 meters Northeast of the Roughrider deposit
  • U.S. Bancorp (USB) announces $5 billion common stock repurchase program, increase to quarterly common stock dividend
  • U.S. Bancorp's (USB) mild financial targets dampen enthusiasm over $5.0 bln repurchase plan and increased dividend
  • Victory Capital (VCTR) reports total Assets Under Management (AUM) of $173.8 bln for August 2024, up 1% from July 2024
  • Vista Outdoor (VSTO) approved transaction incentive awards
  • Walt Disney (DIS): 67.1 million people watched the ABC presidential debate, according to the New York Times
  • Warner Bros. Discovery (WBD) at conference says it anticipates adding 6 mln subs this quarter versus 4 mln last quarter; expects real revenue growth driven by real subscriber growth in H2; very comfortable with guidance to exceed $1 bln in EBIT next year
  • Wells Fargo (WFC): OCC issues enforcement action against Wells Fargo Bank
  • Wells Fargo (WFC) responds to OCC enforcement action: "working to address a substantial portion of what’s required in the formal agreement, and we are committed to completing the work with the same sense of urgency as our other regulatory commitments"
  • W.R. Berkley (WRB) declares a special cash dividend on its common stock of $0.25/share to be paid on September 30, to stockholders of record at the close of business on September 23

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

• Upgrades:
  • Bill.com (BILL) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $90
  • Diageo plc (DEO) upgraded to Buy from Neutral at BofA Securities
• Downgrades:
  • Interpublic (IPG) downgraded to Sell from Neutral at UBS; tgt lowered to $29
• Others:
  • Apollo Global Management (APO) initiated with an Overweight at Wells Fargo; tgt $132
  • Ares Management (ARES) initiated with an Equal Weight at Wells Fargo; tgt $156
  • Asbury Automotive (ABG) initiated with an Equal-Weight at Stephens; tgt $216
  • AutoNation (AN) initiated with an Overweight at Stephens; tgt $210
  • Avista (AVA) resumed with an Underperform at BofA Securities; tgt $37
  • Benitec Biopharma (BNTC) initiated with a Buy at Guggenheim; tgt $17
  • BlackRock (BLK) initiated with an Overweight at Wells Fargo; tgt $1000
  • Blackstone (BX) initiated with an Overweight at Wells Fargo; tgt $163
  • Bridge Investment Group (BRDG) initiated with an Overweight at Wells Fargo; tgt $11
  • Carlyle Group (CG) initiated with an Equal Weight at Wells Fargo; tgt $42
  • Carvana (CVNA) initiated with an Overweight at Stephens; tgt $190
  • CenterPoint (CNP) resumed with a Neutral at BofA Securities; tgt $29
  • Edison (EIX) resumed with a Buy at BofA Securities; tgt $95
  • Evercore (EVR) initiated with an Equal Weight at Wells Fargo; tgt $258
  • Flutter Entertainment (FLUT) initiated with an Overweight at Barclays; tgt $263
  • Franklin Resources (BEN) initiated with an Equal Weight at Wells Fargo; tgt $20
  • Group 1 Auto (GPI) initiated with an Equal-Weight at Stephens; tgt $394
  • Hamilton Lane (HLNE) initiated with an Equal Weight at Wells Fargo; tgt $156
  • Houlihan Lokey (HLI) initiated with an Underweight at Wells Fargo; tgt $149
  • IdaCorp (IDA) resumed with a Neutral at BofA Securities; tgt $110
  • Inozyme Pharma (INZY) initiated with a Buy at Stifel; tgt $16
  • Invesco (IVZ) initiated with an Underweight at Wells Fargo; tgt $16

• Econ Data (Friday):
  • 8:30 ET: August Import Prices (prior 0.1%), Import Prices ex-oil (prior 0.1%), Export Prices (prior 0.7%), and Export Prices ex-agriculture (prior 1.0%)
  • 10:00 ET: Final September University of Michigan Consumer Sentiment (prior 67.9)
• Earnings:
  • Monday (Sept 9)
    • Pre-Market: None
    • After-Hours: CVGW AVO ORCL RBRK
  • Tuesday (Sept 10)
    • Pre-Market: ASO CGNT
    • After-Hours: PLAY GME WOOF
  • Wednesday (Sept 11)
    • Pre-Market: DBI
    • After-Hours: OXM
  • Thursday (Sept 12)
    • Pre-Market: CAL KR LOVE SIG
    • After-Hours: ADBE RH
  • Friday (Sept 13)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike