After Hours Report

The stock market had a decidedly strong showing. The S&P 500 (+1.7%) and Dow Jones Industrial Average (+1.3%) reached fresh all-time highs and the Nasdaq Composite climbed 2.5%.

The rally was in response to yesterday's decision by the FOMC to cut the target rate for the fed funds rate by 50 basis points to 4.75-5.00%. Today's gains also reflected a belief that the economy is in good shape and the Fed will cut rates as needed to maintain a solid economic backdrop. This morning's data supported this optimistic view.

Weekly jobless claims remain steady below recession-like levels, the Philadelphia Fed Index tipped back into expansion (i.e. above 0.0 reading) in September, and existing home sales were slightly below expectations in August, but still reflected a tight market.

Just about everything came along for the upside ride, boosted by a fear of missing out on further gains, along with strength in the mega caps and chipmakers. The Vanguard Mega Cap Growth ETF (MGK) rose 2.5% and the PHLX Semiconductor Index (SOX) jumped 4.3%.

Apple (AAPL 228.87, +8.18, +3.7%), which traded up after T-Mobile's (TMUS 199.64, +2.96, +1.5%) CEO indicated iPhone 16 sales in the first week were better than last year's models, was a winning standout from the space.

This price action led the S&P 500 information technology sector to close 3.1% higher. The consumer discretionary (+2.2%), communication services (+1.9%), and industrials (+1.8%) sectors were the next best performers.

Meanwhile, defensive-oriented sectors like utilities (-0.6%) and consumer staples (-0.6%) underperformed today, reflecting a more risk-on vibe in the market.

The 10-yr yield settled five basis points higher at 3.73% and the 2-yr yield settled unchanged at 3.60%.

• Nasdaq Composite: +20.0% YTD
• S&P 500: +19.8% YTD
• S&P Midcap 400: +12.3% YTD
• Dow Jones Industrial Average: +11.5% YTD
• Russell 2000: +11.1% YTD

Reviewing today's economic data:

• Weekly Initial Claims 219K (Briefing.com consensus 232K); Prior was revised to 231K from 230K, Weekly Continuing Claims 1.829 mln; Prior was revised to 1.843 mln from 1.850 mln
  • The key takeaway from the report is that there is nothing in the low initial claims reading that, as Fed Chair Powell might agree, suggests the likelihood of a recession, or downturn in the economy, is elevated.
• Q2 Current Account Balance -$266.8 bln; Prior was revised to -$241.0 bln from -$237.6 bln
• September Philadelphia Fed Index 1.7 (Briefing.com consensus 3.0); Prior -7.0
• August Existing Home Sales 3.86 mln (Briefing.com consensus 3.90 mln); Prior was revised to 3.96 mln from 3.95 mln
  • The key takeaway from the report is that more inventory is becoming available with mortgage rates dropping, yet it is still a tight market, evidenced by the ongoing increase in the median home price.
• August Leading Homes Sales -0.2% (Briefing.com consensus -0.3%); Prior -0.6%

Looking ahead, there is no US economic data of note on Friday.

Overseas:

• Europe: DAX +1.5%, FTSE +0.9%, CAC +2.3%
• Asia: Nikkei +2.2%, Hang Seng +2.0%, Shanghai +0.7%

Commodities:

• Crude Oil +1.26 @ 71.08
• Nat Gas +0.06 @ 2.35
• Gold +15.60 @ 2614.00
• Silver +0.69 @ 31.39
• Copper +0.06 @ 4.35

After-Hours Spotlight:

• Chewy (CHWY) commences public offering of $500 mln of shares of its Class A common stock by selling shareholder; concurrent share repurchase... CHWY down 3.5%
• Diamondback Energy (FANG) approves increasing total repurchase plan to $6.0 bln from $4.0 bln; files for 117,267,065 shares of common stock offering by selling shareholders... FANG down 3.0%
• FedEx (FDX) misses by $1.15, misses on revs; lowers top end of FY25 EPS guidance; lowers FY25 revenue guidance... FDX down 9.5%
• Lennar (LEN) beats by $0.26, beats on revs, sees Q4 New Orders of 19,000-19,300... LEN down 3.8%
• MillerKnoll (MLKN) misses by $0.04, misses on revs; guides Q2 EPS below consensus, revs above consensus; reaffirms FY25 EPS guidance... MLKN down 3.9%
• NIKE (NKE) announces that Elliott Hill will become President and CEO, effective October 14, 2024; John Donahoe will retire from his role as President and CEO and from the Board of Directors... NKE up 9.7%
• NXP Semi (NXPI): NXP expands EDA operations with AWS, enhancing semiconductor design for automotive and IoT solutions... NXPI down 0.7%
• Sinclair Broadcast (SBGI) increasing FY24 political advertising guidance to account for stronger-than-expected political revs... SBGI up 6.4%

Fair Value for Friday, Sept. 20:

• S&P 500: 5,777
• Nasdaq 100: 20,085
• DJIA: 42,445

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

• Earnings/Guidance (Full Earnings Calendar):
  • Arthur J. Gallagher (AJG) releases CFO Commentary relating to estimated 2024 results ahead of today's Investor Meeting
  • Corning (GLW) provides update on key milestones in 'Springboard' plan; reaffirms Q3 guidance
  • Cracker Barrel (CBRL) misses by $0.10, reports revs in-line; guides FY25 revs in-line
  • Darden Restaurants (DRI) misses by $0.08, misses on revs; reaffirms FY25 EPS guidance
  • Endava (DAVA) reports Q4 results, slightly misses on revs; guides Q1 and FY25 revenue below consensus
  • FactSet (FDS) beats by $0.12, beats on revs; guides FY25 EPS in-line, revs in-line; Approved new share repurchase program for up to $300 mln
  • Mercedes-Benz Group AG (MBGYY) adjusts full-year guidance for the year 2024 based on current market outlook; weighing on auto manufacturing names
  • Nanobiotix (NBTX) reports 1H24 results and provides update
  • Repligen (RGEN) timing recognition of product revenue not recognized appropriately; financial statements require restatement; increases FY24 revenue guidance
  • Sangoma Technologies (SANG) reports Q4 (Jun) results; provides guidance
  • Steelcase (SCS) beats by $0.02, reports revs in-line; guides Q3 EPS in-line, revs below consensus; reaffirms FY25 EPS guidance
  • Sterling Infrastructure (STRL) provides investor updates in presentation including 2024 modeling considerations (revs $2.15-2.225 bln, EBITDA $300-310 mln)
  • Terex (TEX) lowers its FY24 guidance after its channels made adjustments faster than anticipated resulting in slower than expected sales volume
  • Thermo Fisher (TMO) provides Investor Day highlights with 'excellent' long-term outlook
  • U.S. Steel (X) guides Q3 EPS above consensus; guidance reflects resilient domestic flat-rolled steel demand amid a bottoming steel pricing environment
  • VinFast Auto (VFS) reports restated Interim Financial Statements and restated delivery information
• General News
  • Concerns about a dockworker strike on the East Coast, Reuters
  • BHP concerned about potential copper shortage, Financial Times
  • Biden-?Harris administration releases U.S. strategy on global development Fact Sheet
  • Fitch Ratings forecasts slower revenue growth for U.S. states, projects further interest rate cuts through 2026
  • New York and New Jersey port bracing for potential union strike, according to CNBC
  • 4DMT (FDMT) Highlights Robust and Durable Clinical Activity for 4D-150 and Design of 4FRONT Phase 3 Program at 4D-150 Wet AMD Development Day
  • 23andMe (ME): All independent directors leaving 23andMe, according to CNBC
  • Adicet Bio (ACET) announces ADI-001 clinical biomarker data from the Phase 1 GLEAN trial which further reinforces the potential of ADI-001 as a best-in-class allogeneic cell therapy for autoimmune diseases
  • Advanced Energy (AEIS) announces the opening of a new design and service center in Wilmington, MA
  • AerCap (AER) announces new $500 million share repurchase program
  • Aligos Therapeutics (ALGS) to Announce Topline Results from the Phase 2a HERALD Study of ALG-055009 for the Treatment of MASH on September 19, 2024
  • Alphabet's (GOOG) YouTube details AI updates; to start integrating Google DeepMind's most capable model for generating video, Veo, into YouTube Shorts later this year
  • Amazon (AMZN) names new leader for India consumer business, according to TechCrunch
  • Amazon (AMZN) confirms the launch of new generative AI-based selling assistant codenamed Project Amelia
  • American Intl (AIG) announces that Keith Walsh will join company as Executive Vice President and Chief Financial Officer, effective October 21, 2024
  • Amkor (AMKR) announces that James Kim will be stepping down as Executive Chairman and retiring from the company, effective October 31
  • Apple (AAPL): EC starts first proceedings to specify Apple's interoperability obligations under the Digital Markets Act
  • Argan (AGX) increases quarterly cash dividend 25% to $0.375/share from $0.3/share
  • argenx (ARGX) Announces Publication in The Lancet Neurology of Pivotal ADHERE Study Data in Chronic Inflammatory Demyelinating Polyneuropathy
  • Associated Capital Group (AC) announces a special cash dividend of $2.00/share, payable on November 4, 2024, to Class A and Class B shareholders of record as of the close of business on October 21
  • Astellas (ALPMY) Announces FDA Listing of DIGITIVA for the Management of Heart Failure
  • AT&T (T) replacing lead cables in Lake Tahoe, according to the Wall Street Journal
  • Bavarian Nordic A/S (BVNRY) receives EMA approval of Mpox vaccine for adolescents
  • Berkshire Hathaway's (BRK.B) subsidiary, BNFS Railway reaches a tentative, five-year collective bargaining agreements with The International Association of Sheet Metal, Air, Rail and Transportation Workers, Transportation Division, including the union’s Yardmasters
  • Brookfield (BN) investing in Indian infrastructure, according to Bloomberg
  • Builders FirstSource (BLDR) announces that as part of a planned succession, its Board of Directors has named Peter Jackson, Chief Financial Officer, as the Company’s next President & Chief Executive Officer and member of its Board of Directors, effective November 6, 2024
  • Caesars Entertainment (CZR) launches the Caesars Sportsbook Muckleshoot app, which is now accepting mobile sports bets at Muckleshoot Casino Resort in Auburn, Washington
  • Chevron (CVX) and Wärtsilä plan to convert one engine on six of Chevron Transport Corporation Ltd.’s LNG Carriers from dual-fuel to spark gas operation
  • CNA Financial (CNA) / Loews Corp (L) unit is evaluating potential counterparties in connection with the potential purchase of a group annuity contract
  • Diana Shipping (DSX) announces that through a separate wholly-owned subsidiary, it has entered into a time charter contract with Propel Shipping Pte. Ltd., for one of its Ultramax dry bulk vessels, the m/v DSI Altair
  • Dominion Energy (D) Virginia launches the Residential Charger Program, a new turnkey solution for customers interested in a Level 2 home charging system for their electric vehicle
  • Elanco Animal Health (ELAN): FDA approves Zenrelia (Ilunocitinib) for the control of pruritus associated with allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age
  • Elanco Animal Health (ELAN): FDA approves Zenrelia; Stifel sees limited vaccine concerns, highlights strong growth potential
  • Elanco Animal Health (ELAN) confirms FDA approval of Zenrelia, a once-daily oral JAK inhibitor for control of pruritus (itching) associated with allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age
  • Enliven Therapeutics (ELVN) Announces Details Regarding the Presentation of Updated ELVN-001 Phase 1a Data at the ESH-iCMLf 26th Annual John Goldman Conference on CML
  • European Wax Center (EWCZ) announces several strategic Commercial and Operational updates as the Company continues to focus on its key initiatives of attracting new guests, retaining first-time guests and winning back lapsed guests
  • EVgo Inc. (EVGO) announces the appointment of Paul Dobson as Chief Financial Officer, effective October 1, 2024
  • Fiserv (FI) partnership with Walmart (WMT) discussed in Bloomberg report
  • Five Below (FIVE) and Michael F. Romanko, the Chief Merchandising Officer, entered into Cessation Agreement effective as of November 17, 2024
  • General Dynamics (GD) Information Technology was awarded a $299 mln contract to continue supporting the Pentagon's network infrastructure
  • Hawaiian Electric (HE) provides settlement update
  • IBM (IBM) is cutting jobs, according to The Register
  • iLearningEngines (AILE) and GenLab Venture Studio form strategic alliance to fast-track enterprise AI applications
  • Incyte (INCY) and Syndax announce New England Journal of Medicine publication of data from Pivotal AGAVE-201 Trial of Niktimvo (axatilimab-csfr) in chronic graft-versus-host disease
  • Intel (INTC) reaffirms majority stake in Mobileye (MBLY), emphasizes focus on growth and autonomous driving leadership
  • Intercontinental Exchange (ICE): Salt Financial has signed a memorandum of understanding with Intercontinental Exchange to collaborate on strategic index developmen
  • Johnson Controls (JCI) launches update to its Building Automation System, Metasys
  • Kaspi.kz (KSPI) statement on misleading short-seller research
  • Kaspi.kz (KSPI): Culper Research out short on KSPI, "The NASDAQ-Listed Fintech Moving Money for Criminals and Kleptocrats"
  • KKR (KKR) files amended tender offer statement for FUJI SOFT
  • Mammoth Energy Services' (TUSK) wholly owned subsidiary, Cobra Acquisitions LLC, announces that previously disclosed Settlement Agreement with the Puerto Rico Electric Power Authority was approved by the Title III Court
  • Microsoft (MSFT): EC takes note of the withdrawal of referral requests by Member States concerning the acquisition of certain assets of Inflection by Microsoft
  • Nintendo (NTDOY) and The Pokémon Company file patent infringement lawsuit against Palworld developer Pocketpair
  • NIO (NIO) delivering new model in Europe, according to CNEVPOST
  • Novo Nordisk A/S (NVO) announces that Wegovy was recommended by the European regulatory authorities for label update to reflect reduced heart failure symptoms and improved physical function
  • Oracle (ORCL): Chipmaker with Oracle's backing may be sold, according to Bloomberg
  • Palantir Technologies (PLTR) awarded $99.8 mln U.S. Army contract for user licenses for the Maven Smart System AI tool
  • PENN Entertainment (PENN): Gambling.com Group's S. Bittenbender posts on X that, "New York State Gaming Commission is scheduled to consider PENN Sports Interactive's application to purchase Wynn Bet's NY sports betting rights at its meeting Monday afternoon"
  • PLDT (PHI) provides litigation update-Court granted final approval to PLDT's case-ending settlement on Sept 17
  • Plug Power (PLUG) contracts with BP and Iberdrola joint venture to supply 25 MW of PEM electrolyzers in Spain
  • Plug Power (PLUG) Launches an Equipment Lease Financing Platform - Plug is Targeting >$150 million from a Combination of Debt Leverage & Customer Financing Solutions
  • Progyny (PGNY) notified by significant client (comprised 13% of 2023 revs) that they have terminated services agreement, effective January 1, 2025
  • Publicis (PUBGY) acquires Mars United Commerce - the world’s largest independent commerce marketing company; no financial terms disclosed
  • QIAGEN (QGEN) expands QIAcuity digital PCR offering with over new 100 assays via GeneGlobe platform
  • Roche Hldg (RHHBY) reports Phase III Results Show Xofluza Significantly Reduces the Transmission of Influenza Viruses
  • Salesforce (CRM): Disney (DIS) data breach exposes sensitive financial information and staff details from CRM's Slack, including Disney+ and Theme Park revenue, according to WSJ
  • Sallie Mae (SLM): Court contines to block student debt relief plan, according to CNBC
  • Sirius XM (SIRI): Berkshire Hathaway's (BRK.A / BRK.B) Warren Buffett affirms 31.01% passive stake
  • Smartsheet (SMAR) COO Stephen Branstetter to resign, effective today; will serve as advisor through November 18; co eliminating the position
  • Target (TGT) appoints Jim Lee as CFO
  • TotalEnergies (TTE) to supply 1.25 million tons per year to CNOOC until 2034
  • uniQure's (QURE) treatment of Fabry disease given Orphan Drug Designations by FDA
  • Vanda Pharma (VNDA) provided an update on its tradipitant development program - FDA declines to approve Vanda's marketing application
  • Verint Systems (VRNT): The Bear Cave warns of AI threats to Verint Systems, predicts potential decline in demand for call center solutions
  • Vista Outdoor’s (VSTO) Board of Directors Is Committed to Exploring All Opportunities to Maximize the Value of Revelyst, Including a Potential Sale
  • Vista Outdoor (VSTO): Revelyst and 5 Horizons announce a strategic licensing partnership and the launch of CamelBak Pro, a line of innovative hydration products designed to help workers stay hydrated on the job
  • Walmart (WMT) Unveils its Holiday Plans with Early Shopping Deals and Affordable Meals
  • Wynn Resorts (WYNN) agrees to $70 million settlement in securities fraud case tied to Steve Wynn misconduct allegations, according to Bloomberg

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

• Upgrades:
  • Air France-KLM (AFLYY) upgraded to Neutral from Underperform at Exane BNP Paribas
  • DoorDash (DASH) upgraded to Buy from Neutral at BTIG Research; tgt $155
  • Equifax (EFX) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $310
  • Equity Lifestyle Properties (ELS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $82
  • Prelude Therapeutics (PRLD) upgraded to Buy from Neutral at H.C. Wainwright; tgt $5
  • Safehold (SAFE) upgraded to Outperform from Mkt Perform at Raymond James; tgt $34
• Downgrades:
  • Athira Pharma (ATHA) downgraded to Neutral from Outperform at Mizuho; tgt lowered to $0.50
  • Casey's General (CASY) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $337
  • Clear Channel Outdoor (CCO) downgraded/assumed at Equal Weight from Overweight at Wells Fargo; tgt lowered to $1.75
  • Elanco Animal Health (ELAN) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $15
  • Five Below (FIVE) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $95
  • Halozyme Therapeutics (HALO) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $57
  • Lument Finance Trust (LFT) downgraded to Mkt Perform from Outperform at Raymond James
  • Murphy USA (MUSA) downgraded to Underweight from Neutral at JP Morgan; tgt raised to $435
  • NexPoint Real Estate Finance (NREF) downgraded to Mkt Perform from Strong Buy at Raymond James
  • Progyny (PGNY) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
  • Rentokil Initial plc (RTO) downgraded to Neutral from Buy at Redburn Atlantic
  • Vista Outdoor (VSTO) downgraded to Neutral from Buy at ROTH MKM; tgt $42
  • WillScot Mobile Mini (WSC) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $44
• Others:
  • Abbott Labs (ABT) initiated with an Overweight at Piper Sandler; tgt $131
  • Avis Budget (CAR) initiated with an Equal Weight at Barclays; tgt $105
  • Centessa Pharmaceuticals (CNTA) initiated with a Buy at B. Riley Securities; tgt $33
  • Charter Comm (CHTR) initiated with a Sector Perform at RBC Capital Mkts; tgt $345
  • Coursera (COUR) initiated with a Buy at BofA Securities; tgt $11
  • Exelixis (EXEL) initiated with a Neutral at UBS; tgt $30
  • Global Medical REIT (GMRE) initiated with a Buy at Alliance Global Partners; tgt $12
  • Helix Energy (HLX) initiated with a Strong Buy at Raymond James; tgt $14
  • Hertz Global (HTZ) initiated with an Underweight at Barclays; tgt $3
  • Kodiak Gas Services (KGS) initiated with a Buy at Redburn Atlantic; tgt $35
  • Kosmos Energy (KOS) initiated with a Neutral at Mizuho; tgt $5
  • Lamar Advertising (LAMR) initiated with an Equal Weight at Wells Fargo; tgt $132
  • Merck KGaA (MKKGY) initiated with a Buy at Goldman
  • Myriad Genetics (MYGN) initiated with an Equal-Weight at Morgan Stanley; tgt $32
  • NextEra Energy (NEE) initiated with a Hold at Jefferies; tgt $87
  • NextEra Energy Partners (NEP) initiated with a Buy at Jefferies; tgt $28
  • Northern Oil & Gas (NOG) initiated with an Outperform at Mizuho; tgt $47
  • Oklo Inc. (OKLO) initiated with a Buy at B. Riley Securities; tgt $10
  • OUTFRONT Media (OUT) resumed with an Overweight at Wells Fargo; tgt $22
  • Quanta Services (PWR) initiated with an Outperform at Wolfe Research; tgt $313
  • Talos Energy (TALO) initiated with an Outperform at Mizuho; tgt $16
  • Turning Point Brands (TPB) initiated with a Buy at ROTH MKM; tgt $50
  • UBS AG (UBS) resumed with a Neutral at BofA Securities
  • Wave Life Sciences (WVE) initiated with a Buy at B. Riley Securities; tgt $11

• Econ Data (Friday):
  • Bank of Japan policy decision
  • There is no U.S. economic data of note
• Earnings:
  • Monday (Sept 16)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Sept 17)
    • Pre-Market: FERG
    • After-Hours: None
  • Wednesday (Sept 18)
    • Pre-Market: GIS
    • After-Hours: SCS
  • Thursday (Sept 19)
    • Pre-Market: CBRL DRI DAVA FDS
    • After-Hours: FDX LEN MLKN
  • Friday (Sept 20)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike