After Hours Report

The S&P 500 set a new record high today, bolstered by leadership from the semiconductor stocks following Micron's (MU 109.88, +14.11, +14.7%) better-than-expected earnings report and guidance, a tease from China that more policy stimulus is likely, and a reassuring initial jobless claims report.

While it was a record day for the S&P 500, it was a winning day all around for the other indices, which were supported by broad-based buying interest grounded in the view that global growth prospects should improve with the Fed, ECB, and People's Bank of China all moving toward more accommodative policy settings.

Other central banks are too, like the Swiss National Bank, which cut its key policy rate by 25 basis points today to 1.00% and suggested more cuts are likely to follow, and Mexico's central bank, which lowered its policy rate by 25 basis points to 10.50%.

The upbeat economic view was reflected today in the outperformance of the materials sector (+2.0%), the 3.6% increase in copper futures prices to $4.65/lb., the 3.5% jump in the Philadelphia Semiconductor Index, and Dow component Caterpillar's (CAT 391.16, +12.91, +3.4%) move to an all-time high. Shares of CAT are up 27.4% from their August 5 low.

Notwithstanding the positive economic vibes, oil prices continued to slide with OPEC+ saying it will proceed with planned oil output increases in December. WTI crude futures declined 3.0% to $67.68/bbl. The weaknkess in oil prices derailed the energy sector (-2.0%), which was today's weakest area.

Caterpillar's move helped underpin the industrials sector (+0.5%), which was also fortified by a big gain in Southwest Airlines (LUV 29.82, +1.43, +5.0%) after the discount carrier raised its Q3 RASM guidance and announced a $2.5 billion share repurchase program.

There was also some notable strength across the consumer discretionary stocks, only it was hard to see at the surface level for the consumer discretionary sector (+0.1%) because Amazon.com (AMZN 191.16, -1.37, -0.7%) and Tesla (TSLA 254.22, -2.80, -1.1%) were influential laggards. CarMax (KMX 78.18, +3.69, +5.0%), for instance, made a nice move after its earnings report.

Treasury yields did not make a nice move after today's economic data. They backed up in response to the understanding that initial jobless claims -- a leading indicator -- are nowhere near recession-like levels. The 2-yr note yield, at 3.53% before the 8:30 a.m. ET releases, settled at 3.62%, up seven basis points from yesterday's settlement. The 10-yr note yield, at 3.75% before the releases, settled at 3.79%, up one basis point from yesterday's settlement.

• Nasdaq Composite: +21.2%
• S&P 500: +20.5%
• S&P Midcap 400: +12.0%
• Dow Jones Industrial Average: +11.9%
• Russell 2000: +9.1%

Reviewing today's economic data:

• Initial jobless claims for the week ending September 21 decreased by 4,000 to 218,000 (Briefing.com consensus 224,000). Continuing jobless claims for the week ending September 14 increased by 13,000 to 1.834 million.
  • The key takeaway from the report is the continuing low level of initial jobless claims -- a leading indicator -- that isn't leading the market to think a recession is imminent.
• Durable goods orders were flat month-over-month in August (Briefing.com consensus -2.9%) following an unrevised 9.9% increase in July. Excluding transportation, durable goods orders were up 0.5% month-over-month (Briefing.com consensus 0.1%) following an upwardly revised 0.1% decline (from -0.2%) in July.
  • The key takeaway from the report is that new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- increased 0.2% month-over-month, bouncing back from a 0.2% decline in July.
• The third estimate for Q2 GDP remained at 3.0% (Briefing.com consensus 3.0%). Similarly, the third estimate for the Q2 GDP Deflator remained at 2.5% (Briefing.com consensus 2.5%).
  • The key takeaway from this backward-looking report (we're just days away from the end of the third quarter) is that personal spending (+2.8%) was nowhere near a recession glide path, having exceeded the prior eight quarter average of 2.2%.
• Pending home sales were up 0.6% in August (Briefing.com consensus 1.0%) versus -5.5% in July.

Looking ahead, Friday's economic calendar features:

• 08:30 ET: August Personal Income (Briefing.com consensus 0.4%; prior 0.3%), Personal Spending (Briefing.com consensus 0.3%; prior 0.5%), PCE Price Index (Briefing.com consensus 0.1%; prior 0.2%), and Core PCE Price Index (Briefing.com consensus 0.2%; prior 0.2%)
• 08:30 ET: August Adv. Intl. Trade in Goods (prior -$102.7 bln), August Adv. Retail Inventories (prior 0.8%), and August Adv. Wholesale Inventories (prior 0.3%)
• 10:00 ET: Final September University of Michigan Consumer Sentiment (Briefing.com consensus 69.0; prior 69.0)

Overseas:

• Europe: DAX +1.6%, FTSE +0.2%, CAC +2.3%
• Asia: Nikkei +2.4%, Hang Seng +4.2%, Shanghai +3.6%

Commodities:

• Crude Oil -2.10 @ 67.68
• Nat Gas -0.06 @ 2.75
• Gold +8.60 @ 2694.40
• Silver +0.26 @ 32.36
• Copper +0.16 @ 4.65

After-Hours Spotlight:

• Costco (COST) beats by $0.07, reports revs in-line, adjusted comparable sales of +6.9%... COST down 1.2%
• Establishment Labs (ESTA) receives approval from the U.S. FDA for the use of Motiva SmoothSilk Ergonomix and Motiva SmoothSilk Round breast implants in primary and revision breast augmentation... ESTA up 22.6%
• Scholastic Corp (SCHL) reports Q1 (Aug) results, beats on revs (single est); reiterates FY25 guidance... SCHL up 4.4%

Fair Value for Friday, Sept. 27:

• S&P 500: 5,801
• Nasdaq 100: 20,336
• DJIA: 42,529

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

• Earnings/Guidance (Full Earnings Calendar):
  • Accenture (ACN) beats by $0.01, reports revs in-line; guides Q1 revs in-line; guides FY25 EPS in-line, revs in-line; approves $4.0 bln buyback
  • BASF AG (BASFY) sets new financial targets for 2025-2028
  • Bavarian Nordic A/S (BVNRY) signs agreement with UNICEF for 1 mln mpox vaccines and upgrades financial guidance for 2024
  • Concentrix (CNXC) misses by $0.06, reports revs in-line; guides Q4 EPS below consensus, revs in-line; increases quarterly dividend by 10%; releases iX Hello
  • Fiserv (FI) estimates impairment charge to be in the range of $400-600 mln for JV; does not expect to change its previously communicated medium-term performance outlook
  • Jabil (JBL) beats by $0.08, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY25 EPS above consensus, revs in-line; authorizes $1 bln buyback
  • Jefferies (JEF) misses by $0.06, misses on revs
  • H.B. Fuller (FUL) misses by $0.10, misses on revs; guides FY24 EPS below consensus, revs below consensus
  • Intuit (INTU) reiterates Q1 and FY25 guidance in conjunction with its Investor Day being held today
  • Micron (MU) beats by $0.07, beats on revs; guides Q1 EPS above consensus, revs above consensus
  • NRG Energy (NRG) raises FY24 adjusted EBITDA and FCFbG guidance
  • TD Synnex (SNX) beats by $0.06, beats on revs; guides Q4 EPS in-line, revs in-line
  • Wesco (WCC) reaffirms FY24 outlook at Investor Day
  • Worthington (WS) Steel beats dual estimate by $0.01, beats on revs
• General News
  • The House of Representatives approves a three-month government funding bill, averting a government shutdown, according to TheHill.com
  • White House announces additional actions to reduce gun violence
  • OPEC+ to proceed with December oil output increase, supported by compensatory cuts from Iraq and Kazakhstan, according to Reuters
  • Nevada Gaming Board reports August gaming win -3.8% yr/yr to $1.163 bln; -3.5% yr/yr to $643.7 mln on the Las Vegas Strip
  • US pledges up to $20 billion for G7-led Ukraine aid, contingent on EU sanctions reform, according to Bloomberg
  • Mexico Central Bank lowers the target for the overnight interbank interest rate by 25 basis points to 10.50%
  • AAR Corp (AIR) signs an extension with Singapore Airlines
  • Abivax (ABVX) Provides Update on Ulcerative Colitis (UC) Combination Therapy Program Strategy and Announces Early Preclinical Combination Data of Obefazimod and Etrasimod in Inflammatory Bowel Disease (IBD) Mouse Model
  • Aecom Tech (ACM) awarded contract to support LA Metro’s transition to Zero Emission Buses
  • Allogene Therapeutics (ALLO) to present pre-clinical data highlighting the potential of ALLO-329, an allogeneic CD19/CD70 Dual CAR T for the treatment of autoimmune diseases, at the American College of Rheumatology Convergence
  • American Outdoor Brands (AOUT) approves repurchase of up to $10 mln of its common stock; ends September 30, 2025
  • ANI Pharma (ANIP) announces the FDA approval and launch of Ketoconazole Shampoo, 2% - the generic version of the reference listed drug (RLD) Nizoral
  • Apple (AAPL): New iPhone selling slower than expected, according to DigiTimes Asia
  • AstraZeneca (AZN) receives FDA approval for Tagrisso in unresectable lung cancer
  • AVANGRID (AGR) shareholders approve all proposals, including approval of merger agreement with Iberdrola (IBDRY), at 2024 Annual Meeting
  • Axonics Modulation (AXNX) received regulatory approval for marketing the Axonics R20 rechargeable sacral neuromodulation system in Australia to treat adults with overactive bladder and fecal incontinence
  • BAE Systems (BAESY) receives a $177.8 million contract from the U.S. Navy for the maintenance and modernization of the Arleigh Burke-class guided-missile destroyer USS Halsey
  • Bath & Body Works (BBWI): Julie Rosen, President, Retail of Bath & Body Works, steps down, position eliminated; reaffirms Q3 and FY25 guidance
  • Bayer (BAYRY) submits application to FDA for third indication of darolutamide
  • Bayer AG (BAYRY) announces the submission of a supplemental new drug application to the U.S. FDA for the oral androgen receptor inhibitor NUBEQA in combination with androgen deprivation therap for the treatment of patients with metastatic hormone-sensitive prostate cancer
  • Becton Dickinson (BDX): New Data Reveals BD's Artificial Intelligence Software Highly Effective in Detecting Indicators of Controlled Substance Diversion
  • Biomea Fusion (BMEA) announces that the U.S. FDA has lifted the clinical hold on Biomea’s ongoing Phase I/II clinical trials of the Company’s investigational covalent menin inhibitor BMF-219 in type 2 and type 1 diabetes
  • BlackRock (BLK) and Santander (SAN) announce signing of memorandum for private asset financing projects
  • Bristol-Myers (BMY) Canada announces that OPDUALAG is now included on the Liste des Médicaments- Établissements for the first-line treatment of adult and pediatric patients with unresectable or metastatic melanoma who have not received prior systemic therapy for unresectable or metastatic melanoma, and have an ECOG performance status of 0 or 1
  • Centessa Pharmaceuticals (CNTA) Presents Preclinical Data for ORX142, a Novel Orexin Receptor 2 (OX2R) Agonist, at the 27th Congress of the European Sleep Research Society
  • Century Therapeutics (IPSC) names Morgan Conn as CFO
  • Citigroup (C) and Apollo (APO) ink $25 billion private credit partnership, targeting corporate and private equity deals, according to Bloomberg
  • Citigroup (C) and Apollo (APO) confirm entering into exclusive agreement to form a $25 billion private credit, direct lending program
  • Clean Energy Fuels (CLNE) to provide first private natural gas fueling station for Houston METRO
  • Cloudflare (NET) Enhances AI Inference Platform with Powerful GPU Upgrade, Faster Inference, Larger Models, Observability, and Upgraded Vector Database
  • Commerzbank (CRZBY) confirm strategy aiming to achieve a reliable and sustainable increase in value
  • Cracker Barrel (CBRL): Biglari withdrew nomination of Julie Atkinson and Michelle Frymire as nominees for election at the Annual Meeting
  • Curtiss-Wright's (CW) Nuclear Division and Westinghouse Electric Company announce that they have signed a Memorandum of Understanding to support AP1000 and AP300 projects in Canada
  • Darling Ingredients (DAR) form joint venture to bring first regular supply of sustainable aviation fuel to Florida
  • Deere (DE) recalls about 147,900 (in addition, about 16,800 sold in Canada) compact utility tractors due to crash hazard
  • Dine Brands (DIN): IHOP President Jay Johns to retire, effective January 6, 2025
  • Dollar General Corporation (DG) Recommends Shareholders Reject, and Do Not Tender Shares in, "Mini-Tender" Offer by TRC Capital Investment Corporation
  • Dr. Reddy's (RDY) received an order from COFEPRIS (Comisión Federal para la Protección Contra Riesgos Sanitarios) health department of Mexico
  • eBay (EBAY) has teamed up with Liberis to expand its Seller Capital program in the US with the introduction of Flexible Cash Advance
  • Enanta Pharmaceuticals (ENTA) announced 'positive' topline results from a Phase 2a human challenge study of EDP-323 in healthy adults infected with respiratory syncytial virus
  • enGene Holdings (ENGN): Detalimogene Demonstrates 71% Complete Response Rate at Any Time in Preliminary Analysis of LEGEND Pivotal Cohort
  • Eni S.p.A. (E) attracts multiple suitors for additional stake in biofuel unit Enilive as KKR deal nears finalization, according to Reuters
  • Equinor (EQNR) confirms world’s first cross-border CO2 transport and storage facility is completed and ready to receive and store CO2
  • Evaxion Biotech (EVAX) significantly expands vaccine development collaboration with MSD Merck (MRK)
  • Fortis (FTS) provides 5-year capital plan update and raises dividend
  • fuboTV (FUBO) announces the launch of its popular Multiview feature in beta on select Roku (ROKU) devices
  • Gatos Silver (GATO) provides updated Cerro Los Gatos Mineral Reserve, Mineral Resource, and Life of Mine Plan
  • Generac (GNRC): Hurricane Helene strengthens to Category 2, expected to make landfall in Florida this evening as a "major hurricane"
  • Gevo (GEVO) has acquired Cultivate Agricultural Intelligence for $6 mln in cash, with the opportunity for the sellers to receive additional earn-out payments
  • GoodRx (GDRX) announces that its working with ARS Pharmaceuticals (SPRY) to offer the lowest discounted cash price for neffy in retail pharmacy locations
  • Hope Bancorp (HOPE): Blue Hill Advisors announces increased cash offer for Territorial Bancorp (TBNK)
  • ICL Group (ICL) expands further into North American energy storage supply chain by partnering with Orbia Fluor & Energy Materials
  • Infosys (INFY) announces its strategic collaboration with Sally Beauty Holdings (SBH); Infosys will implement best practices in IT operations to bring efficiencies through the optimization of IT service delivery
  • Intuit (INTU) Unveils New AI-driven expert platform experiences at Investor Day 2024
  • iQIYI (IQ) unveils over 300 new titles at the 2024 iJOY Conference - highlighting its strategic expansion into short dramas
  • Jabil (JBL) approved a restructuring plan that includes headcount reductions across Selling, General and Administrative and manufacturing cost base and capacity realignment
  • Keysight (KEYS) announces that UL Solutions has appointed it as the Thunderbolt 5 product certification test partner
  • Kinross Gold (KGC): White Gold encounters gold in encouraging host rocks of altered and mineralized intrusives in surface rock sampling over 1.25km on the newly discovered 2.2km Chris Creek target on the QV Property
  • Kroger (KR) extends expiration date of exchange offers and consent solicitations for Albertsons Companies (ACI) notes to October 3
  • Lam Research (LRCX) authorized the extension of the Company’s existing stock repurchase program
  • Lantheus Holdings (LNTH) expects to release data in October 2024 for the SPLASH trial based on 75% of protocol-specified target overall survival events being reached
  • Masimo (MASI) founder seeking $400 mln severance payment, according to Financial Times
  • McDonald's (MCD) raises quarterly dividendby 6% to $1.77 per share
  • Microsoft (MSFT): OpenAI removing non-profit control, giving CEO equity, according to Reuters
  • Microsoft (MSFT): OpenAI CTO Mira Murati leaving the company, according to Bloomberg
  • National Grid (NGG) completed the sale of its final 20% equity interest in National Gas to a consortium of long-term infrastructure investors led by Macquarie Asset Management (MQBKY)
  • Northrop Grumman (NOC) was awarded a follow-on production contract as part of a larger contract, which is now valued at over $161 mln, by the U.S. Navy for the next generation JCREW/DRAKE 2.0 systems
  • NuCana (NCNA) Announces Grant of Composition-of-Matter Patent for NUC-7738 in the United States
  • Omnicell (OMCL) appoints Nnamdi Njoku as COO, effective October 7
  • OneWater Marine's (ONEW) operations on the Gulf Coast will be directly impacted by Hurricane Helene; As a result, company now expects full year results to come in at bottom or slightly below prior guidance
  • Orrstown Financial Services (ORRF) COO to retire
  • Pharming Group N.V. (PHAR) receives marketing authorization in the U.K. for Joenja
  • Petrobras (PBR) to reopen Roncador oil well for natural gas by 2025, cut jet fuel prices by 10%, according to Reuters
  • Petrobras (PBR) and Staatsolie Maatschappij Suriname N.V. sign Memorandum of Understanding
  • Pfizer (PFE) announces that it is voluntarily withdrawing all lots of OXBRYTA (voxelotor) for the treatment of sickle cell disease (SCD) at this time, in all markets where it is approved
  • Pfizer (PFE): EMA recommends suspension of sickle cell disease medicine Oxbryta
  • POET Technologies (POET) entered into a securities purchase agreement with MMCAP International
  • Republic Services (RSG) breaks ground on Blue Polymers' latest recycled plastics production facility
  • Roche Hldg (RHHBY) reports Phase III Results for Genentech’s Gazyva Show Superiority to Standard Therapy Alone in People With Lupus Nephritis
  • SAGE Therapeutics (SAGE) announces that Biogen (BIIB) terminated its rights under the collaboration and license agreement with Sage regarding the SAGE-324 program
  • Saneamento Basico (SBS) elected Mr. Carlos Augusto Leone Piani to the position of Chief Executive Officer replacing Mr. Andre Salcedo
  • Sila Realty Trust (SILA) provided GenesisCare update
  • SMA Solar Technology AG (TAN) announces restructuring and transformation program due to high inventories and challenging market environment
  • Southwest Air (LUV) provided 'Special Litigation Committee' updates
  • Southwest Air (LUV) unveils transformational plan and authorizes new share repurchase at Investor Day; updates outlook
  • Southwest Air (LUV): Elliott statement on Southwest Airlines' Investor Day
  • Spirit Aerosystems (SPR): Furloughs expected at Spirit Aerosystems as Boeing (BA) remains at odds with striking workers, Financial Times
  • Synchrony Financial (SYF) and DICK'S Sporting Goods (DKS) announce a multi-year extension of their strategic partnership
  • Target (TGT) Circle Week Returns Oct. 6-12 with Seven Days of Deals Up to 50% Off
  • TKO Group Holdings (TKO) discloses settlement details
  • Trevi Therapeutics (TRVI) Announces Additional Analyses of Cough Relief Time from Ph2a CANAL Trial Accepted for Oral Presentation at CHEST 2024
  • Vale S.A. (VALE) confirmed there has been a fire on a train with third-party general cargo in the municipality of Antônio Dias, Minas Gerais
  • Veritone (VERI) announces new collaboration with Midwest Public Safety under which Midwest Public Safety will offer its customers across the Midwest Veritone's complete line of AI-powered applications for law enforcement and judicial agencies
  • Vertex Pharma (VRTX) announces the first accepted medical presentations of the Phase 3 data on the investigational once daily vanzacaftor/tezacaftor/deutivacaftor — the potential next-in-class triple combination medicine — will take place at the North American Cystic Fibrosis Conference
  • Visa (V) has signed a definitive agreement to acquire Featurespace, financial terms were not disclosed
  • Walt Disney (DIS) laying off workers, according to Deadline
  • Wayfair (W): Over 1 Million Items on Sale During Wayfair's Holiday Way Day, October 5-7
  • Zeta Global (ZETA) unveils Zeta Media Engine, powered by Snowflake (SNOW)
  • Zoetis (ZTS) and Danone (DANOY) form joint business development plan to drive sustainable practices on dairy farms

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

• Upgrades:
  • Bilibili (BILI) upgraded to Buy from Neutral at Goldman; tgt raised to $22.60
  • Pediatrix Medical Group (MD) upgraded to Buy from Hold at Jefferies; tgt raised to $14
  • Starbucks (SBUX) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $115
• Downgrades:
  • Ameriprise Financial (AMP) downgraded to Neutral from Buy at Goldman; tgt lowered to $476
  • GE HealthCare (GEHC) downgraded to Sell from Neutral at UBS; tgt lowered to $74
  • Hershey Foods (HSY) downgraded to Underperform from Hold at Jefferies; tgt lowered to $163
  • Nordstrom (JWN) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • Northern Trust (NTRS) downgraded to Sell from Neutral at Goldman; tgt lowered to $82
  • Park Hotels & Resorts (PK) downgraded to Peer Perform from Outperform at Wolfe Research
  • Regency Centers (REG) downgraded to Hold from Buy at Deutsche Bank; tgt raised to $75
  • ReNew (RNW) downgraded to Equal-Weight from Overweight at Morgan Stanley
  • RLJ Lodging Trust (RLJ) downgraded to Peer Perform from Outperform at Wolfe Research
  • Sonos (SONO) downgraded to Underweight from Overweight at Morgan Stanley; tgt lowered to $11
  • Travel + Leisure Co (TNL) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $40
• Others:
  • Cboe Global Markets (CBOE) initiated with a Hold at TD Cowen; tgt $205
  • CME Group (CME) initiated with a Hold at TD Cowen; tgt $221
  • First Solar (FSLR) initiated with a Buy at Truist; tgt $300
  • GE Vernova (GEV) initiated with a Perform at Oppenheimer
  • GE Vernova (GEV) initiated with a Buy at Truist; tgt $300
  • Gilat Satellite (GILT) initiated with an Outperform at William Blair
  • ICHOR Corporation (ICHR) initiated with a Buy at DA Davidson; tgt $50
  • InfuSystem (INFU) initiated with a Buy at B. Riley Securities; tgt $13
  • Intercontinental Exchange (ICE) initiated with a Buy at TD Cowen; tgt $182
  • Mirion Technologies (MIR) initiated with a Buy at B. Riley Securities; tgt $14
  • NASDAQ (NDAQ) initiated with a Hold at TD Cowen; tgt $83
  • Solventum Corporation (SOLV) initiated with a Peer Perform at Wolfe Research
  • Spok (SPOK) initiated with a Neutral at B. Riley Securities; tgt $15
  • Tactile Systems (TCMD) initiated with a Buy at B. Riley Securities; tgt $23
  • Talen Energy (TLN) initiated with an Outperform at RBC Capital Mkts; tgt $233
  • Tradeweb Markets (TW) initiated with a Buy at TD Cowen; tgt $139

• Econ Data (Friday):
  • 8:30 ET: August Personal Income (Briefing.com consensus 0.4%; prior 0.3%), Personal Spending (Briefing.com consensus 0.3%; prior 0.5%), PCE Prices (Briefing.com consensus 0.1%; prior 0.2%), Core PCE Prices (Briefing.com consensus 0.2%; prior 0.2%), August advance goods trade balance (prior -$102.7 bln), August advance Retail Inventories (prior 0.8%), and August advance Wholesale Inventories (prior 0.3%)
  • 10:00 ET: Final September University of Michigan Consumer Sentiment (Briefing.com consensus 69.0; prior 69.0)
• 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