After Hours Report

There might not have been a lot of buying conviction in today's market, but more importantly there was no real selling conviction either. There was some buy-the-dip interest that coursed through NVIDIA (NVDA 120.87, +4.61, +4.0%) and the mega-cap space; and there was also an appreciation for a wave of policy stimulus measures announced in China that coursed through the materials (+1.4%) and industrials (+0.7%) sectors.

The People's Bank of China said the 7-day reverse repurchase rate will be lowered by 20 basis points to 1.50%, the required reserve ratio will be cut by 50 basis points, the down payment requirement for second-home buyers will be reduced to 15% from 25%, and there will be a CNY800 bln ($113 bln) liquidity support facility for stocks.

China's Shanghai Composite surged 4.2% on the news. That move was the basis for the outsized move in Chinese ADRs, like Li Auto (LI 24.72, +2.52, +11.4%) and Alibaba (BABA 97.19, +7.10, +7.9%), and the hefty gain logged by the iShares China Large-Cap ETF (FXI 30.40, +2.72, +9.8%).

The hope that China's stimulus measures will succeed in providing a needed boost to the Chinese economy spilled over to the commodities market, which was also eyeing the formation of Hurricane Helene in the Gulf of Mexico and the heightened military conflict between Israel and Hezbollah. Copper futures jumped 3.0% to $4.49/lb while WTI crude futures increased 1.7% to $71.56/bbl.

Freeport McMoRan (FCX 48.72, +3.58, +7.9%), a leading gold and copper producer, was the best-performing S&P 500 component followed by Estee Lauder (EL 91.98, +5.28, +6.1%), Las Vegas Sands (LVS 44.38, +2.25, +5.3%), Wynn Resorts (WYNN 84.16, +3.96, +4.9%), and Caterpillar (CAT 385.93, +14.76, +4.0%), all of which would stand to benefit from a pickup in economic activity in China.

Their gains contributed to the relative strength seen in the consumer discretionary (+0.8%) and industrials (+0.7%) sectors. NVIDIA for its part was a big contributor to the strength seen in the Philadelphia Semiconductor Index (+1.3%) and the relative strength in the information technology sector (+0.8%).

NVIDIA found support after briefly trading below its 50-day moving average (115.73) this morning. On a related note, Barron's reported that CEO Jensen Huang completed a preplanned stock sale several months ahead of an anticipated schedule. Investors presumably liked the thought that his preplanned sale will no longer be an overhang on the stock.

There was an overhang on the financial sector (-0.9%) today. It lost ground, undercut by weakness in the bank stocks. The SPDR S&P Bank ETF (KBE) and SPDR S&P Regional Banking ETF (KRE) declined 1.3% and 1.4%, respectively.

Treasury yields also declined following a weaker-than-expected Consumer Confidence Report for September. The 2-yr note yield, at 3.59% just before the 10:00 a.m. ET release, settled today's session at 3.55%, down three basis points from yesterday's settlement. The 10-yr note yield, at 3.79% just before the release, finished unchanged at 3.74%. The Treasury market also digested a $69 billion 2-yr note action that saw the high yield match the when-issued yield of 3.52%.

• Nasdaq Composite: +20.4% YTD
• S&P 500: +20.2% YTD
• S&P Midcap 400: +12.1% YTD
• Dow Jones Industrial Average: +12.0% YTD
• Russell 2000: +9.7% YTD

Reviewing today's economic data:

• July FHFA Housing Price Index (actual 0.1%; prior 0.0%)
• July S&P Case-Shiller Home Price Index (actual 5.9%; Briefing.com consensus 6.0%; prior 6.5%).
• The Conference Board's Consumer Confidence Index fell to 98.7 in September (Briefing.com consensus 102.9) from an upwardly revised 105.6 (from 103.5) in August. September's decline was the largest since August 2021.
  • The key takeaway from the report is that consumers' views of the current labor market situation continued to soften and became more pessimistic about future labor market conditions -- a sentiment that could weigh on consumer spending activity.

Looking ahead, Wednesday's calendar features:

• 07:00 ET: MBA Mortgage Applications index (prior +14.2%)
• 10:00 ET: August New Home Sales (Briefing.com consensus 695K; prior 739K) 
• 10:30 ET: EIA crude Oil Inventories (prior -1.63M)
• 13:00 ET: $70 billion 5-yr note auction

Overseas:

• Europe: DAX +0.8%, FTSE +0.3%, CAC +1.3%
• Asia: Nikkei +0.8%, Hang Seng +4.1%, Shanghai +4.2%

Commodities:

• Crude Oil +1.19 @ 71.56
• Nat Gas -0.06 @ 2.79
• Gold +23.00 @ 2675.90
• Silver +1.27 @ 32.36
• Copper +0.13 @ 4.49

After-Hours Spotlight:

• KB Home (KBH) misses by $0.02, beats on revs, home gross profit margin, excluding charges, decreased 80 bps yr/yr; Raises FY24 housing revenue guidance, narrows housing gross profit margin guidance... KBH down 6.2%
• Progress Software (PRGS) beats by $0.12, beats on revs; guides NovQ EPS below consensus, revs above consensus... PRGS up 6.0%
• Stitch Fix (SFIX) misses by $0.09, reports revs in-line, reports adjusted EBITDA at the high end of guidance; guides OctQ revs below consensus; guides FY25 revs below consensus... SFIX down 16.8%
• Worthington Enterprises (WOR) misses on EPS and revs... WOR down 5.1%

Fair Value for Wednesday, Sept. 25:

• S&P 500: 5,791
• Nasdaq 100: 20,171
• DJIA: 42,580

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

• Earnings/Guidance (Full Earnings Calendar):
  • AAR Corp (AIR) beats by $0.03, beats on revs
  • AutoZone (AZO) misses by $5.57, reports revs in-line
  • BioMarin Pharmaceutical (BMRN) reaffirms long-term financial guidance and outlook
  • Build-A-Bear Workshop (BBW) provides investor updates with 2024 guidance (revs LSD-MSD growth, new new unit growth of at least 50 units)
  • Jamf Holding (JAMF) reiterates its Q3 and FY24 revenue forecasts following new CFO appointment
  • Light & Wonder (LNW) issues statement on Dragon Train litigation; Reaffirms 2025 $1.4 billion targeted consolidated AEBITDA
  • Thor Industries (THO) beats by $0.38, beats on revs; guides FY25 EPS below consensus, revs below consensus
• General News
  • China announces broad stimulus measures; Shanghai rises over 4%
  • Vice President Harris pledging support to AI and crypto sectors, according to Reuters
  • Port strike looming on the East Coast, according to Bloomberg
  • EU invests €65 million in quantum chips
  • White House releases fact sheet on the United States' commitment to address the global Mpox outbreak
  • Hezbollah urged Iran to attack Israel amid escalating tensions, but Iran declines for now, citing poor timing, according to Axios
  • OPEC releases World Oil Outlook 2024 - sees global oil demand at over 120 mb/d in 2050 with no peak in oil demand on the horizon
  • ACADIA Pharmaceuticals (ACAD) announces that Catherine Owen has succeeded Steve Davis as CEO
  • AirSculpt Technologies (AIRS) announces the opening of its Deerfield office at 720 Waukegan Rd Suite 200, Deerfield, IL 60015 conveniently located within Deerfield Square, an upscale, lifestyle shopping center
  • Alaska Air's (ALK) Hawaiian Airlines announces that it is now offering Starlink's high-speed, low-latency Wi-Fi free of charge to guests onboard all Airbus-operated flights between the islands and the continental U.S, Asia and Oceania
  • Apple (AAPL): Apple retail workers in Oklahoma City win first collective contract with CWA
  • AptarGroup’s (ATR) N-Sorb nitrosamine mitigation solution accepted to FDA’s Emerging Technology Program
  • Arlo Technologies (ARLO) approves $50 mln stock repurchase plan
  • Axsome Therapeutics (AXSM) Presents Data from Multiple Programs at Sleep Europe 2024
  • Banco Macro (BMA) disclosed that Mr. Gustavo Manriquez resigned as Chief Executive Officer of Banco Macro S.A
  • Banco Santander (SAN) approved dividend
  • Barnes & Noble Education (BNED) disclosed Michael Miller provided notice of his resignation as the Company’s Executive Vice President, Corporate Development & Affairs, Chief Legal Officer and Secretary, effective immediately
  • Biogen (BIIB) and UCB Announce Positive Topline Results From Phase 3 Study of Dapirolizumab Pegol in Systemic Lupus Erythematosus and are Initiating Second Phase 3 Study in 2024
  • Boeing (BA) awarded $319 mln U.S. Navy contract
  • Boeing (BA) remains at odds with striking employees, according to Financial Times
  • Boeing (BA) has indicated to Ryanair (RYAAY) that strikes could delay deliveries six weeks, according to reports
  • BorgWarner (BWA) teamsters reach agreement, ending strike
  • Cable ONE (CABO) discloses non-reliance on previously issued financial statements
  • Camtek (CAMT) launches its latest inspection system, the Eagle Generation-5
  • Can-Fite BioPharma (CANF) announced that its veterinary partner Vetbiolix exercised its option and signed a development and commercialization agreement with Can-Fite
  • Catalyst Pharmaceuticals (CPRX) Announces Sub-Licensee DyDo Pharma Received Approval to Commercialize FIRDAPSE® in Japan
  • CIBC (CM) files for US$20,000,000,000 mixed shelf offering
  • Complete Solaria (CSLR) announces that the United States Bankruptcy Court for the District of Delaware has approved the going concern sale of substantially all assets of the Blue Raven, New Homes and Dealer businesses of SunPower Corporation and certain of its affiliates to Complete Solar for $45 million in cash
  • CRH Plc. (CRH) provides CEO succession plan
  • Diamondback Energy (FANG), Kinetik Holdings and EPIC Midstream announce transformative transactions for EPIC Crude
  • Deere (DE) mentioned cautiously at Barron's after Trump proposes 200% tariff over potential Mexico manufacturing shift
  • Denison (DNN) announces option of non-core exploration projects to foremost for up to $30 million in combined consideration
  • DTE Energy (DTE) releases statement from President and COO Matt Paul in response to third-party audit of electric distribution system
  • EHang (EH) announces a major milestone with the successful completion of the first flight of its EH216-S pilotless eVTOL in Brazil
  • Eli Lilly (LLY) announced the Ministry of Health, Labour and Welfare Japan has approved Kisunla
  • Eisai's (ESAIY) Rozebalamin for Injection 25 mg (Mecobalamin) Approved in Japan
  • Euroseas (ESEA) announces a time charter contract for its 4,250 teu intermediate containership, M/V Synergy Busan, for a minimum period of 36 to a maximum period of 38 months at the option of the charterer, at a gross daily rate of $35,500; new time charter will commence in early Dec
  • GameStop (GME) completes previously disclosed at-the-market equity offering program
  • Gladstone Land (LAND) provides update on permanent crop portfolio; continues to explore options with certain of these permanent crop farms
  • GlaxoSmithKline (GSK) receives Positive EU opinion for liquid Menveo vaccine
  • Grifols, S.A. (GRFS) has resolved that Mr. Thomas Glanzmann becomes non-executive Chairman to focus solely on Board responsibilities, after the completion of a successful transition period of Mr. Nacho Abia as CEO
  • Gulfport Energy (GPOR) entered into a purchase agreement with an account managed and advised by Silver Point Capital
  • HP (HPQ) Workforce Solutions advances strategy to deliver exceptional employee experiences
  • Humana (HUM) and Interwell Health announce addition of state of Florida to value-based kidney care program
  • HUTCHMED (HCM) reports approval in Japan or FRUZAQLA received by Takeda (TAK)
  • Immutep (IMMP) receives A$3.6 million R&D tax incentive from French Government
  • Invitation Homes (INVH): FTC takes action against Invitation Homes for deceiving renters, charging junk fees, withholding security deposits, and employing unfair eviction practices
  • Invitation Homes (INVH) confirms it has reached agreement with the Federal Trade Commission resolving the FTC’s civil investigation into certain company business practices
  • Itron (ITRI) authorizes new share repurchase program of up to $100 mln over an 18-month period
  • Jamf Holding (JAMF) appoints David Rudow to CFO, he will begin on October 28, and will succeed Jamf’s current CFO Ian Goodkind, who is departing to pursue other opportunities, effective November 28
  • Levi's (LEVI) struggling to reach revenue goal, according to Financial Times
  • Meta Platforms (META) to announce celebrity voices as options on its AI chatbot, according to Reuters
  • Microsoft (MSFT): Open AI says Advanced Voice is rolling out to all Plus and Team users in the ChatGPT app over the course of the week
  • Microsoft (MSFT) announces $1.3 bln investment in Cloud and AI infrastructure supporting inclusive growth through technology and skilling programs in Mexico
  • Microsoft (MSFT) expands its Global Engineering Development Center’s footprint to the UAE’s capital, Abu Dhabi
  • NANO Nuclear Energy (NNE): Gateway for Accelerated Innovation in Nuclear 'GAIN' announced fourth round Nuclear Energy Voucher recipients
  • Natera (NTRA) announces that the District Court for the Middle District of North Carolina ordered a permanent injunction against NeoGenomics' Accused RaDaR Assay
  • NeoGenomics (NEO) Announces New RaDaR Technology and Resolution of RaDaR 1.0 Litigation
  • Novartis AG (NVS): Generate:Biomedicines announces multi-target collaboration with Novartis to discover and develop protein therapeutics with generative AI
  • Novo Nordisk A/S (NVO) treatment of transthyretin amyloidosis granted orphan designation
  • Novo Nordisk A/S (NVO): Lawmakers to question Novo Nordisk CEO over high U.S. prices for ozempic and wegovy in Senate hearing, according to CBS News
  • Oportun Financial (OPRT) receives $306 million committed warehouse facility extension
  • Pfizer (PFE) Canada and BioNTech (BNTX) receive Health Canada approval of Omicron KP.2 variant adapted COVID-19 vaccine
  • PG&E (PCG) has been awarded $34.5 mln in grant awards from the U.S. Department of Energy Grid Deployment Office to support 19 hydroelectric projects across its system
  • Pinterest (PINS) introduces new ways to create and share collages
  • PVH (PVH): China investigating PVH's cotton boycott, according to Reuters
  • Qiagen (QGEN) announces that Bode Technology will become the exclusive global commercial partner for the GEDmatch PRO genealogy database
  • Roche Hldg (RHHBY) launches the first test to use its breakthrough TAGS technology
  • Roche Hldg (RHHBY) bets on streamlined R&D strategy to compete in obesity market amid broader portfolio overhaul, according to WSJ
  • Rogers (RCI) to adopt Comcast’s (CMCSA) industry-leading network design across its footprint
  • Royal Bank of Canada (RY): RBC employees from HSBC Canada acquisition fear job losses as six-month guarantee nears expiry, according to Reuters
  • Samsung (SSNLF) increasing investment in OLED production in Vietnam, according to Reuters
  • Sanofi (SNY): Banks line up over €10 billion in debt for buyout of Sanofi's consumer health unit as sale nears completion, according to Bloomberg
  • Sanofi (SNY) nears major deal as Clayton Dubilier & Rice, PAI Partners submit bids for €15 billion consumer health unit, according to Bloomberg
  • Selective Insurance (SIGI) announces appointment of Patrick Brennan as CFO, effective October 1, 2024
  • Sony Electronics (SONY) announces two new monitors to its INZONE gaming gear lineup with the INZONE M10S and INZONE M9 ll
  • Southwest Air (LUV): Elliott sends a second letter to Southwest Shareholders: prepare for special meeting by calling back your shares today
  • Spirit Aerosystems (SPR) probes decade-long record-keeping issues after discovering missing and duplicate parts documentation, according to Reuters
  • Sunrun (RUN) partners with Toll Brothers (TOL) to provide solar power and storage to Toll Brothers homes
  • TE Connectivity (TEL) ordinary shares will begin on the NYSE under the existing ticker "TEL" with new CUSIP on Sept 30
  • Teledyne Tech (TDY) received two five-year requirements contracts worth up to $47 mln to provide and support nearly its entire range of ground robots to the US government
  • Textron (TXT) provides Machinists strike update
  • Topgolf Callaway Brands (MODG) and SEGA of America announced a multiyear partnership that will bring Sonic the Hedgehog to life in Topgolf-owned-and-operated venues this November and Toptracer-enabled franchise venues around the globe by Q1 2025
  • TotalEnergies SE (TTE) to supply 200,000 tons per year of LNG to HD Hyundai Chemical until 2033
  • Toyota Motor (TM) to increase the maximum limit of share repurchases
  • Toyota (TM) and Volkswagen (VWAGY) struggling to keep up with technology offered by others, according to Financial Times
  • U.S. Steel (X) moves slightly lower then bounces back after former President Trump comments at event in Georgia that he'll stop US Steel from being sold to Nippon (NPSCY)
  • Verizon(VZ)  named Official Telecommunication Services Sponsor for FIFA World Cup 26 and Official Tournament Supporter for FIFA Women’s World Cup 2027
  • Vertiv (VRT) announces an expansion of its North American manufacturing operations with a new facility in Pelzer, South Carolina; facility adds 215,000 square feet of manufacturing space and is projected to create up to 300 additional skilled job opportunities at this location
  • Visa (V) facing antitrust suit, according to Bloomberg
  • Visa (V) follow-up to DOJ lawsuit in U.S. Southern District Court of New York
  • Visa (V): US Justice Department files antitrust lawsuit against Visa over debit card market dominance, according to Bloomberg
  • Vishay (VSH) implements restructuring actions; to close three facilities
  • Vulcan Materials (VMC) vows legal defense after Mexico declares quarry land a nature reserve, according to Reuters
  • Warner Bros. Discovery (WBD) and Google (GOOG / GOOGL) Cloud announced the deployment of a new, AI-powered captioning solution in the United States that utilizes Google Cloud's Vertex AI platform
  • Wave Life Sciences (WVE) Announces Positive Interim Data from FORWARD-53 Clinical Trial Evaluating WVE-N531 in Boys with Duchenne Muscular Dystrophy Amenable to Exon 53 Skipping
  • Zuora (ZUO) announced new AI enhancements at Subscribed Live London that are now available for the world’s leading media companies

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

• Upgrades:
  • Banc of California (BANC) upgraded to Outperform from Neutral at Wedbush; tgt raised to $18
  • BioNTech (BNTX) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $145
  • CNH Industrial (CNH) upgraded to Outperform from Mkt Perform at Raymond James; tgt $14
  • Columbia Banking (COLB) upgraded to Outperform from Neutral at Wedbush; tgt raised to $31
  • Comerica (CMA) upgraded to Outperform from Neutral at Wedbush; tgt raised to $75
  • Salesforce (CRM) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $325
• Downgrades:
  • Baidu (BIDU) downgraded to Hold from Buy at HSBC Securities; tgt $100
  • BP (BP) downgraded to Neutral from Buy at Redburn Atlantic
  • Costco (COST) downgraded to Hold from Buy at Truist; tgt $873
  • Customers Bancorp (CUBI) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $53
  • DouYu (DOYU) downgraded to Reduce from Hold at HSBC Securities
  • Equity Residential (EQR) downgraded to Neutral from Buy at BofA Securities; tgt raised to $82
  • Essex Property (ESS) downgraded to Neutral from Buy at BofA Securities; tgt raised to $321
  • First Citizens BancShares (FCNCA) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $2150
  • First Horizon (FHN) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $17
  • Invitation Homes (INVH) downgraded to Neutral from Buy at BofA Securities; tgt $37
  • Kenvue (KVUE) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $24
  • Leonardo DRS (DRS) downgraded to Neutral from Buy at BofA Securities; tgt raised to $30
• Others:
  • Church & Dwight (CHD) initiated with an Overweight at Piper Sandler; tgt $120
  • Colgate-Palmolive (CL) initiated with an Overweight at Piper Sandler; tgt $121
  • Crescent Energy Company (CRGY) resumed with an Outperform at Evercore ISI; tgt $17
  • Dayforce (DAY) initiated with an Overweight at KeyBanc Capital Markets; tgt $70
  • DoorDash (DASH) resumed with an Outperform at Raymond James; tgt $155
  • EHang (EH) initiated with a Buy at China Renaissance
  • GE Vernova (GEV) initiated with a Buy at Guggenheim; tgt $300
  • Instacart (CART) initiated with a Mkt Perform at Raymond James
  • Juniper Networks (JNPR) resumed with a Neutral at Citigroup; tgt $40
  • Kenvue (KVUE) initiated with a Buy at Jefferies; tgt $27

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 14.2%)
  • 10:00 ET: August New Home Sales (Briefing.com consensus 695,000; prior 739,000)
  • 10:30 ET: Weekly crude oil inventories (prior -1.63 mln)
• Treasury Auctions:
  • 13:00 ET: $70 bln 5-yr Treasury note auction results
• Earnings:
  • Monday (Sept 23)
    • Pre-Market: None
    • After-Hours: AIR
  • Tuesday (Sept 24)
    • Pre-Market: AZO THO
    • After-Hours: KBH PRGS SFIX WOR
  • Wednesday (Sept 25)
    • Pre-Market: CTAS
    • After-Hours: CNXC FUL JEF MU WS
  • Thursday (Sept 26)
    • Pre-Market: ACN KMX JBL SNX
    • After-Hours: BB COST MTN
  • Friday (Sept 27)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike