After Hours Report

For the most part, the stock market was in a restful state in today's trade until a late rally effort finished off a very good third quarter.

Losses were relatively modest during the session, even at the lows for the day that occurred around 2:30 p.m. ET after Fed Chair Powell told listeners at an NABE Conference that, if the economy evolves as expected, that would mean two more cuts this year of 25 basis points each. The fed funds futures market had been expecting a total of 75 basis points worth of cuts before the end of the year. That created some knee-jerk selling interest that had the S&P 500 down as much as 0.6% for the day.

The Treasury market reacted with yields backing up. The 2-yr note yield rose nine basis points to 3.65% while the 10-yr note yield jumped five basis points to 3.80%.

The market bounced back just as quickly, however, heartened by the understanding that the Fed will still be cutting rates, and that it will move in a more aggressive manner if necessary. It was the so-called "Fed put" trade that co-mingled with the patented buy-the-dip trade that has proven successful all year.

Fittingly, the S&P 500 hit session highs shortly before the close, finishing the third quarter on an upbeat note. 

It was not nearly as upbeat as the 8.1% gain logged by China's Shanghai Composite, which flowed from reports the People's Bank of China told commercial banks to lower mortgage rates in batches, but it was still an impressive move that capped off a quarter that saw the market-cap weighted S&P 500 gain 5.5% and the equal-weighted S&P 500 gain 9.1%.

In terms of sector performance, it was dotted with mostly red figures throughout the day, but everything flipped late. Nine of the 11 S&P 500 sectors finished in positive territory with gains ranging from 0.1% to 0.8%. The two holdouts were the materials sector (-0.6%) and the consumer discretionary sector (-0.3%), the latter of which was impeded primarily by a loss in Amazon.com (AMZN 186.33, -1.64, -0.9%).

Elsewhere, the communication services sector (+0.8%) got some extra help from Alphabet (GOOG 167.19, +1.90, +1.2%) and Meta Platforms (META 572.44, +5.08, 0.9%) while digesting a batch of industry-related M&A news. 

DIRECTV will acquire EchoStar's video distribution business, including DISH TV and Sling TV, in exchange for a nominal consideration of $1 plus the assumption of DISH DBS net debt, AT&T (T 21.99, +0.09, +0.4%) is selling its remaining stake in DIRECTV to TPG for $7.6 billion in cash payments received from DIRECTV and TPG through 2029, and Verizon (VZ 44.92, +0.03, +0.1%) entering into a definitive agreement for Vertical Bridge to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from subsidiaries of Verizon for approximately $3.3 billion.

The energy sector (+0.8%) joined the communication services sector at the top of the leaderboard, taking stock of a Washington Post report that said Israel has told the U.S. it is planning an imminent and limited ground operation in Lebanon.

• Nasdaq Composite: +21.2% YTD (+2.6% for Q3)
• S&P 500: +20.8% YTD (+5.5% for Q3)
• Dow Jones Industrial Average: +12.3% YTD (+8.2% for Q3)
• S&P Midcap 400: +12.2% YTD (+6.6% for Q3)
• Russell 2000: +10.0% YTD (+8.9% for Q3)

Reviewing today's economic data:

• The September Chicago PMI checked in at 46.6 (Briefing.com consensus 46.2) versus 46.1 in August.
  • The dividing line between expansion and contraction is 50.0, so the September reading implies that manufacturing activity in the Chicago Fed region contracted in September but at a slower pace than August.

Looking ahead, Tuesday's economic calendar features:

• 09:45 ET: September Final S&P Global US Manufacturing PMI (prior 47.9
• 10:00 ET: September ISM Manufacturing PMI (Briefing.com consensus 47.7%; prior 47.2%)
• 10:00 ET: August JOLTS - Job Openings (prior 7.673M)
• 10:00 ET: August Construction Spending (Briefing.com consensus 0.1%; prior -0.3%)

Overseas:

• Europe: DAX -0.7%, FTSE -1.0%, CAC -2.0%
• Asia: Nikkei -4.8%, Hang Seng +2.4%, Shanghai +8.1%

Commodities:

• Crude Oil -0.02 @ 68.13
• Nat Gas +0.01 @ 2.91
• Gold -9.10 @ 2658.80
• Silver -0.33 @ 31.43
• Copper -0.03 @ 4.55

After-Hours Spotlight:

• BGC Group (BGC) updates Q3 outlook: expects to be around high end of revenue and adjusted EPS guidance ranges... BGC up 1.2%
• IGM Biosciences (IGMS) appoints new CEO; announces strategic pivot and pipeline transformation to accelerate development of T cell engaging IgM antibodies... IGMS down 21.1%
• PepsiCo (PEP) down slightly as it nears a deal for Siete Foods for over $1.0 bln, according to WSJ... PEP down 0.3%

Fair Value for Tuesday, Oct 1:

• S&P 500: 5,817
• Nasdaq 100: 20,275
• DJIA: 42,672

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

• Earnings/Guidance (Full Earnings Calendar):
  • Audioeye (AEYE) acquires ADA Site Compliance; raises Q3 and FY24 outlook
  • Carnival (CCL) beats by $0.10, reports revs in-line; guides Q4 EPS below consensus
  • Independence Realty Trust (IRT) provides investor updates in presentation; discusses recent trends - property taxes are now trending even lower than previously expected
  • Sigma Lithium (SGML) hosted 2024 Investor day, detailing a low capex construction plan to triple capacity to 125,000t LCE by end-2026
  • Stellantis (STLA) lowers guidance for FY24
• General News
  • Fed Chairman Jerome Powell Q&A at NABE: If the economy evolves as expected, that would mean two more cuts this year of 25 basis points each
  • Israel killed Hezbollah leader Hassan Nasrallah in an airstrike, according to the New York Times
  • White House issues statement from President Joe Biden on the Death of Hassan Nasrallah
  • Dozens were killed and millions lost power following Hurricane Helene, New York Times
  • Dockworkers could strike this week, according to CBS News
  • Vice President Kamala Harris leads former President Trump by an average of two points nationally, which is within the margin of error. Swing state polling averages are close to the break-even mark, according to RCP
  • US could announce new tariffs on solar panels this week, according to Reuters
  • Vice President Kamala Harris proposed tougher asylum restrictions at southern border, according to Politico
  • Japan's incoming prime minister, Shigeru Ishiba wants snap election on October 27 after unexpected victory last week, according to Financial Times
  • China will allow mortgage refinancing, according to the Wall Street Journal
  • CDC provides update on bird flu
  • California Governor Gavin Newsom vetoed artificial intelligence bill, according to the Wall Street Journal
  • Israel tells US that it is planning a imminent ground operation in Lebanon, according to Washington Post
  • AGCO (AGCO) comments on letter from TAFE
  • Alnylam (ALNY) Highlights New Data From HELIOS-B Study of Vutrisiran for the Treatment of Transthyretin Amyloidosis With Cardiomyopathy at Heart Failure Society of America Annual Scientific Meeting 2024
  • Altimmune (ALT) completes enrollment in Phase 2b IMPACT trial of pemvidutide in metabolic dysfunction-associated steatohepatitis
  • Amazon (AMZN) will host an election night special on Prime Video, according to CNN
  • AMC Entertainment (AMC) entered into a series of privately negotiated agreements between August 5, 2024 and September 30, 2024
  • Apple (AAPL) no longer in discussions to invest in OpenAI, according to the Wall Street Journal
  • Aura Biosciences (AURA) CFO Julie Feder to depart, effective October 25; Amy Elazzouzi, VP, Finance, appointed interim CFO
  • Autoliv (ALV) retires repurchased shares, decreases number of issued shares
  • Bank of America (BAC) 10% owner Berkshire Hathaway's (BRK.A / BRK.B) Warren Buffett sold 11,678,366 shares at $39.25 - $39.90 worth approx. $460.7 mln
  • Barrick (GOLD) and the Mali government are working on resolution over Loulo and Gounkoto mines, according to Reuters
  • Barrick (GOLD) confirms it has reached agreement to settle disputes with Mali
  • BioCryst Pharma (BCRX) wins $69 mln RAPIVAB (peramivir injection) contract from US Government
  • Boeing (BA) awarded $251 mln U.S. Defense Logistics Agency contract modification
  • Boeing (BA): Aero Design Labs receives U.S. and EASA approval for updated Boeing (BA) 737-800 drag reduction kit
  • Boeing (BA) union "stressed the need for the reinstatement of the defined benefit pension"
  • BridgeBio (BBIO) Shares Recurrent Event Analysis of ATTRibute-CM, Demonstrating a 42% Reduction by Acoramidis on the Composite Endpoint of All-Cause Mortality and Recurrent Cardiovascular-related Hospitalization Events
  • BridgeBio Pharma (BBIO) completes enrollment of FORTIFY, Phase 3 registrational study of BBP-418 in limb-girdle muscular dystrophy type 2I/R9
  • Cadeler A/S (CDLR) strengthens its position in the Asia-Pacific region with a Vessel Reservation Agreement for two offshore wind projects
  • Castle Biosciences (CSTL) New Data at ASTRO 2024 Shows Castle Biosciences’ DecisionDx®-SCC Test Provides More Precise Risk Stratification Than BWH Staging Alone to Guide Intensified Treatment for Immune Suppressed Patients with High-Risk Cutaneous Squamous Cell Carcinoma
  • CenterPoint (CNP) announced a comprehensive suite of new actions as part of the next phase of its Greater Houston Resiliency Initiative; will also propose investing at least $5 billion from 2026 to 2028
  • Cherry Hill Mortgage (CHMI) revises Q3 preferred dividends
  • Chevron (CVX) announces that the Federal Trade Commission completed antitrust review of the company’s merger with Hess Corporation (HES), satisfying a key closing condition for the transaction
  • Chunghwa Telecom (CHT) names Chih-Cheng Chien as new Chairman and CEO (replacing Shui-Yi Kuo), names Rong-Shy Lin as President (replacing Chau-Young Lin)
  • CleanSpark (CLSK) provides update on Hurricane Helene
  • CONMED (CNMD) reports Hurricane Helene impacted its manufacturing facility in Largo, Florida and the distribution center in Lithia Springs, Georgia
  • CVS (CVS): Glenview Capital wants changes at CVS, according to the Wall Street Journal
  • Duke Energy (DUK) Florida restores power for 95% of customers within 72 hours; mobilizes Pinellas County barrier islands command center
  • eBay (EBAY) secured dismissal in US lawsuit that alleged harmful products were sold, according to Reuters
  • EchoStar (SATS) announces a suite of transformative transactions
  • Edwards Lifesciences (EW) reports one-year data show excellent outcomes for Endotronix Cordella Pulmonary Artery Sensor System
  • Enliven Therapeutics (ELVN) Announces Positive Data Update from Phase 1 Clinical Trial of ELVN-001 in Chronic Myeloid Leukemia
  • ExlService (EXLS) announces the strengthening of its partnership with Databricks, the data and AI company
  • Fresenius SE (FSNUY) completed divestment of Vamed’s rehabilitation business to the international private equity firm PAI Partners
  • Gaming and Leisure Properties (GLPI) announces the promotion of Chief Operating Officer, Brandon Moore, to the additional role of President, effective immediately
  • GE HealthCare (GEHC) announces FDA approval of Flyrcado (flurpiridaz F 18) injection PET radiotracer for enhanced diagnosis of coronary artery disease
  • Google (GOOG, GOOGL) defended advertising technology to antitrust authorities, according to Bloomberg
  • Haleon plc (HLN): Pfizer (PFE) to sell approximately 540 mln ordinary shares in Haleon plc and Haleon agreed with Pfizer to make an off-market purchase of approximately £230 mln worth of ordinary shares from Pfizer
  • Haleon plc (HLN) confirms agreement to sell its NRT business outside of the US to Dr. Reddy's Laboratories (RDY) for total consideration of up to £500 mln
  • Icahn Enterprises (IEP) entered into an employment letter agreement with Ted Papapostolou, the Company’s Chief Financial Officer
  • ICU Medical (ICUI): Smiths Medical issues correction for paraPAC plus P300 and P310 ventilators due to inadvertent tidal volume knob movement
  • iHeartMedia (IHRT): FCC issues dissenting statement of Commissioner Brendan Carr
  • Jacobs Solutions (J) completes spin-off of its Critical Mission Solutions and Cyber & Intelligence businesses and merger with Amentum Parent Holdings (AMTM)
  • Johnson & Johnson (JNJ): CARVYKTI is the first and only cell therapy to significantly extend overall survival versus standard therapies for patients with multiple myeloma as early as second line
  • KalVista Pharmaceuticals (KALV) submits additional Marketing Authorization Applications for Sebetralstat
  • Kenon Holdings' (KEN) OPC Energy Ltd. announces updates in Israel Land Authority tender to design and build electricity generation facilities using photovoltaic technology
  • Kimberly-Clark (KMB) considering sale of its tissue business, according to reports
  • KT (KT) provides details on strategic partnership with Microsoft (MSFT)
  • Leap Therapeutics (LPTX) Announces Completion of Enrollment in Part B of the DeFianCe Study of DKN-01 for the Treatment of Colorectal Cancer Patients
  • Legend Biotech (LEGN): CARVYKTI is the First and Only Cell Therapy to Significantly Extend Overall Survival Compared to Standard of Care in Patients with Multiple Myeloma as Early as Second Line
  • Lions Gate Entertainment (LGF.A)offers some US employees voluntary severance and early retirement, according to Deadline
  • Lockheed Martin (LMT) awarded $3.23 bln U.S. Air Force contract; also awarded $358 mln U.S. Air Force contract modification
  • Mannkind (MNKD) announced top-level 30-week results from its Phase 4 INHALE-3 study
  • Microsoft (MSFT): OpenAI anticipates around $3.7 bln in annual sales in 2024, surging to $11.6 bln next year; however, expects $5.0 bln in losses this year, according to Financial Times
  • Medtronic (MDT) reports new clinical data demonstrating excellent lesion durability with PulseSelect Pulsed Field Ablation System in real-world setting as approvals and adoption expand globally
  • Moderna (MRNA) announces first participant dosed in pivotal phase 3 trial of investigational mRNA norovirus vaccine, mRNA-1403
  • Morgan Stanley (MS) raised $750 mln for climate fund, according to the Wall Street Journal
  • Netflix (NFLX) had spike in cancellations after its CEO donated to VP Kamala Harris, according to Bloomberg
  • New Fortress Energy (NFE) ovides update on its initial FLNG asset
  • NIO (NIO) enters RMB3.3 bln investment in NIO China from strategic investors
  • Norfolk Southern (NSC): Court appeal delays $600 mln in settlement payments to NSC Ohio derailment victims, according to AP
  • Nyxoah S.A. (NYXH) pivotal study data presented at the International Surgical Sleep Society 2024 Educational Update; Additional clinical data on patients suffering from Obstructive Sleep Apnea demonstrate a clinically significant 71.0% median reduction in Apnea-Hypopnea index
  • Onity Group (ONIT) Announces Multiple Transactions to Accelerate Capital Restructuring
  • Organon (OGN) primary endpoint met in phase 3 comparative clinical study of Perjeta biosimilar candidate HLX11
  • Poseida Therapeutics (PSTX) reports "positive" interim phase 1 results for allogeneic CAR-T Therapy P-BCMA-ALLO1 with high overall response rates in heavily pretreated relapsed/refractory multiple myeloma patients
  • Precision BioSciences (DTIL) Submits First Clinical Trial Applications to Initiate Phase 1 Trial for PBGENE-HBV for the Treatment of Chronic Hepatitis B
  • Prime Medicine (PRME) announces a strategic research collaboration and license agreement with Bristol Myers Squibb (BMY) to develop reagents for the next generation of ex vivo T-cell therapies
  • Roche Hldg (RHHBY) provides Pharma Day 2024 presentation; Sales momentum expected to continue into 2025
  • RPM Inc (RPM) provides litigation updates; ultimate loss with respect to the litigation matter could be materially different from the amount the Company has accrued
  • RTX (RTX) awarded $737 mln U.S. Navy contract; also awarded $526 mln U.S. Navy contract
  • Sensata Tech (ST): An affiliate of Balmoral Funds LLC has successfully acquired and rebranded Sensata Technologies' Insights business unit as Xirgo Technologies
  • SITE Centers (SITC) provides transaction and curbline balance sheet update
  • TD Bank (TD) close to guilty plea on criminal charges, according to the Wall Street Journal
  • TotalEnergies (TTE) starts up its largest utility-scale solar farms with batteries in the US
  • TPG Inc. (TPG) in discussions to purchase Techem for EUR 7 bln, according to FT
  • UCB (UCBJY) Announces a Head-to-Head Study Evaluating BIMZELX® (bimekizumab) versus SKYRIZI® (risankizumab) in Active Psoriatic Arthritis
  • Universal Health (UHS) discloses litigation updates;Cumberland subsidiary is evaluating all legal options and intends to challenge verdict
  • VEON (VEON) completed the sale of its 49% stake in Kazakh wholesale telecommunications infrastructure services provider TNS Plus to its JV partner the DAR group

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

• Upgrades:
  • Accenture (ACN) upgraded to Buy from Hold at TD Cowen; tgt raised to $400
  • Amerant Bancorp (AMTB) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $26.50
  • BlackLine (BL) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $70
  • Brookfield Renewable Partners (BEP) upgraded to Buy from Neutral at UBS; tgt raised to $31
  • Brown-Forman (BF.B) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $53
  • Cadence Bank (CADE) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $39
  • Frontier Group Holdings (ULCC) upgraded to Mkt Perform from Underperform at Raymond James
  • Hess (HES) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $150
  • U.S. Bancorp (USB) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $57
  • Walt Disney (DIS) upgraded to Buy from Neutral at Seaport Research Partners; tgt $108
  • Westlake Corporation (WLK) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $180
  • Zions Bancorp (ZION) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $54
• Downgrades:
  • Bruker (BRKR) downgraded to Peer Perform from Outperform at Wolfe Research
  • Charter Comm (CHTR) downgraded to Underperform from Peer Perform at Wolfe Research; tgt $300
  • Commerce Bancshares (CBSH) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $64
  • Enbridge (ENB) downgraded to Hold from Buy at Jefferies
  • Freeport-McMoRan (FCX) downgraded to Sector Perform from Sector Outperform at Scotiabank; tgt $52
  • Frontier Communications Parent (FYBR) downgraded to Peer Perform from Outperform at Wolfe Research
  • Interpublic (IPG) downgraded to Underperform from Neutral at Exane BNP Paribas
  • JPMorgan Chase (JPM) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $224
  • Procter & Gamble (PG) downgraded to Equal Weight from Overweight at Barclays; tgt $163
• Others:
  • BioLife Solutions (BLFS) initiated with a Buy at H.C. Wainwright; tgt $29
  • Celldex Therapeutics (CLDX) initiated with a Neutral at Goldman; tgt $45
  • Crescent Capital BDC (CCAP) initiated with a Buy at Ladenburg Thalmann; tgt $20
  • Horizon Bancorp (HBNC) initiated with an Outperform at Hovde Group; tgt $18
  • Navient (NAVI) initiated with a Neutral at BofA Securities; tgt $17
  • Permian Resources (PR) initiated with a Buy at Goldman; tgt $19
  • ProKidney Corp. (PROK) initiated with a Neutral at JP Morgan
  • Skye Bioscience (SKYE) initiated with a Sector Outperform at Scotiabank; tgt $20
  • Tenax Therapeutics (TENX) initiated with an Outperform at William Blair
  • Verastem (VSTM) initiated with a Buy at Guggenheim; tgt $13

• Econ Data (Tuesday):
  • 9:45 ET: Final September S&P Global U.S. Manufacturing PMI (prior 47.9)
  • 10:00 ET: September ISM Manufacturing Index (Briefing.com consensus 47.7%; prior 47.2%), August job openings (prior 7.673 mln), and August Construction Spending (Briefing.com consensus 0.1%; prior -0.3%
• Earnings:
  • Monday (Sept 30)
    • Pre-Market: CCL
    • After-Hours: None
  • Tuesday (Oct 1)
    • Pre-Market: AYI MKC PAYX UNFI
    • After-Hours: CALM LW NKE RGP
  • Wednesday (Oct 2)
    • Pre-Market: CAG RPM
    • After-Hours: LEVI
  • Thursday (Oct 3)
    • Pre-Market: ANGO STZ
    • After-Hours: None
  • Friday (Oct 4)
    • Pre-Market: APOG
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike