After Hours Report

The stock market recovered a bit today following sharp declines yesterday in response to the news about DeepSeek. The S&P 500 closed 0.9% higher than its prior close and the Nasdaq Composite jumped 2.0%, closing near their best levels of the day. The Dow Jones Industrial Average (+0.3%) and Russell 2000 (+0.2%) also closed in positive territory. 

The upside action was led by mega caps and chipmakers, and NVIDIA (NVDA 128.86, +10.44, +8.8%) was chief among them after logging its largest single-day loss in market capitalization ever in yesterday's session. Shares were trading higher through most of the session, but buying picked up in the afternoon trade.

Gains were still muted, though, compared to the scope of yesterday's declines. NVDA shares plunged 17% yesterday and the PHLX Semiconductor Index (SOX), which closed 1.1% higher today, sank 9.2% yesterday. 

Microsoft (MSFT 447.05, +12.49, +2.9%) and Meta Platforms (META 674.33, +14.45, +2.2%), which report quarterly results after Wednesday's close, along with Apple (AAPL 238.26, +8.40, +3.7%), which reports earnings after Thursday's close, were among the top performers in today's trade.

The buying interest in mega caps and semiconductor shares didn't pass through to the broader equity market. The equal-weighted S&P 500 closed 0.5% lower and eight of the 11 S&P 500 sectors registered losses ranging from 0.2% (financials) to 1.5% (consumer staples). 

This price action was influenced by mixed responses to earnings news from names like Royal Caribbean (RCL 265.25, +28.43, +12.0%), Boeing (BA 177.78, +2.62, +1.5%), General Motors (GM 50.04, -4.88, -8.9%), and Lockheed Martin (LMT 457.45, -46.24, -9.2%).

• Dow Jones Industrial Average: +5.4% YTD
• S&P Midcap 400: +4.0% YTD
• S&P 500: +3.2% YTD
• Russell 2000: +2.6% YTD
• Nasdaq Composite: +2.2% YTD

Reviewing today's economic data:

• December Durable Orders -2.2% (Briefing.com consensus 0.4%); Prior was revised to -2.0% from -1.1%, December Durable Goods - ex transportation 0.3% (Briefing.com consensus 0.5%); Prior -0.1%
  • The key takeaway from the report, though, is the understanding that new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- were up 0.5% on the heels of a 0.9% increase in November, thereby softening the disappointment of the headline number.
• November FHFA Housing Price Index 0.3%; Prior was revised to 0.5% from 0.4%
• November S&P Case Shiller Home Price Index 4.3% (Briefing.com consensus 4.2%); Prior 4.2%
• January Consumer Confidence 104.1 (Briefing.com consensus 108.1); Prior was revised to 109.5 from 104.7
  • The key takeaway from the report is that consumers, in general, remained pessimistic about future employment prospects.

Looking ahead to Wednesday, market participants receive the following economic data:

• 7:00 ET: Weekly MBA Mortgage Index (prior 0.1%)
• 8:30 ET: December advance International Goods Trade Balance (prior -$102.9 bln), advance Retail Inventories (prior 0.3%), and advance Wholesale Inventories (prior -0.2%)
• 10:30 ET: Weekly crude oil inventories (prior -1.02 mln)

Overseas:

• Europe: DAX +0.7%, FTSE +0.4%, CAC -0.1%
• Asia: Nikkei -1.4%, Hang Seng +0.1%, Shanghai market closed

Commodities:

• Crude Oil +0.61 @ 73.76
• Nat Gas -0.13 @ 3.12
• Gold +29.10 @ 2768.60
• Silver +0.43 @ 30.90
• Copper +0.02 @ 4.25

After-Hours Spotlight:

• F5 Networks (FFIV) beats by $0.48, beats on revs; guides Q2 EPS below consensus, revs above consensus; raises FY25 EPS and revenue guidance... FFIV up 12.2%
• Lending Club (LC) misses by $0.01, beats on revs... LC down 17.6%
• Manhattan Assoc (MANH) beats by $0.11, beats on revs; guides FY25 EPS below consensus, revs below consensus... MANH down 22.1%
• Nextracker (NXT) beats by $0.45, beats on revs; raises FY25 guidance... NXT up 13.2%
• Qorvo (QRVO) beats by $0.40, beats on revs; guides MarQ EPS above consensus, revs in-line... QRVO up 13.1%
• Starbucks (SBUX) beats by $0.02, reports revs in-line, global comps fell by -4%... SBUX up 2.5%
• Stride (LRN) beats by $0.08, beats on revs; guides Q3 revs above consensus; guides FY25 revs above consensus... LRN up 5.3%
• Stryker (SYK) beats by $0.14, beats on revs; guides FY25 EPS in-line; announces a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, a family-owned investment firm specializing in the neuro-musculoskeletal space, to create a newly formed company called VB Spine... SYK down 1.4%

Fair Value for Wednesday, January 29:

• S&P 500: 6,098
• Nasdaq 100: 21,582
• DJIA: 45,029

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

• Earnings/Guidance (Full Earnings Calendar):
  • Adient (ADNT) beats by $0.08, beats on revs; lowers FY25 revs below consensus
  • Alexandria RE (ARE) reports FFO in-line, beats on revs; guides FY25 FFO in-line
  • Boeing (BA) misses by $2.68, reports revs in-line with last week's guidance; impacted by previously announced IAM work stoppage
  • Brown & Brown (BRO) beats by $0.09, beats on revs
  • Commvault Systems (CVLT) beats by $0.07, beats on revs; guides Q4 revs above consensus; guides FY25 revs above consensus
  • Crane (CR) beats by $0.06, beats on revs; guides FY25 EPS in-line, revs in-line; increases quarterly dividend by 12%
  • Equity Lifestyle Properties (ELS) reports FFO in-line, beats on revs; guides Q1 FFO in-line; guides FY25 FFO in-line
  • Everest Group (EG) issues preliminary FY24 results, sees non-GAAP operating income of $1.2-$1.3 bln
  • General Motors (GM) beats by $0.07, beats on revs; guides FY25 EPS above consensus
  • Graco (GGG) misses by $0.12, misses on revs
  • Heartland Express (HTLD) beats by $0.02, misses on revs; seeing a positive shift in customer rate and volume negotiations
  • Invesco (IVZ) beats by $0.05, reports revs in-line
  • JetBlue Airways (JBLU) beats by $0.08, reports revs in-line
  • Kimberly-Clark (KMB) misses by $0.01, beats on revs; provides outlook; increases quarterly dividend 3.3% to $1.26/share from $1.22/share
  • Lockheed Martin (LMT) beats by $1.05, misses on revs; guides FY25 EPS below consensus, revs in-line
  • Marten Transport (MRTN) beats by $0.01, misses on revs
  • New Fortress Energy (NFE) reaffirms Q4 guidance
  • NextEra Energy (NEE) reaffirms FY25-27 EPS guidance
  • Nucor (NUE) beats by $0.58, beats on revs; market conditions are starting to improve
  • NVR (NVR) beats by $10.58, misses on revs
  • PACCAR (PCAR) misses by $0.03, misses on revs
  • Petrobras (PBR) achieves 2024 production target
  • Polaris Industries (PII) beats by $0.03, beats on revs; guides FY24 revs in-line
  • Popular (BPOP) beats on EPS, credit quality metrics remained stable
  • PotlatchDeltic (PCH) misses by $0.40 (single estimate), beats on revs
  • Royal Caribbean (RCL) beats by $0.13, reports revs in-line; guides Q1 EPS above consensus; guides FY25 EPS in-line
  • RTX (RTX) beats by $0.16, beats on revs; guides FY25 EPS in-line, revs below consensus
  • Sanmina (SANM) beats by $0.08, beats on revs; guides MarQ EPS in-line, revs in-line; increases share buyback authorization by $300 mln
  • Sandy Spring Banc (SASR) misses by $0.01, net interest income increased 5% yr/yr
  • SAP SE (SAP) beats by €0.07, beats on revs
  • Seacoast Banking (SBCF) beats by $0.14, beats on revs
  • ServisFirst Bancshares (SFBS) beats by $0.08, net interest income increased 28%
  • Summit Materials (SUM) sees FY24 revs below consensus
  • Synchrony Financial (SYF) misses by $0.02, reports revs in-line; guides FY25 revs in-line
  • Sysco (SYY) beats by $0.01, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance
  • Transcat (TRNS) reports EPS in-line, misses on revs; seeing higher activity levels in January
  • VIZSLA SILVER (VZLA) provides 2024 year-end summary and 2025 outlook
  • Western Alliance Bancorp (WAL) beats by $0.05, beats on revs
  • W.R. Berkley (WRB) reports Q4 (Dec) results, beats on revs
  • WSFS Financial (WSFS) beats by $0.14, reports revs in-line
  • Xerox (XRX) misses by $0.17, beats on revs
• General News
  • Treasury secretary Scott Bessent wants universal tariffs to begin at 2.5% and rise slowly, according to Financial Times
  • President Trump says he wants tariffs larger than 2.5% on foreign pharmaceuticals, semiconductors, and metals, according to Bloomberg
  • President Trump says Deepseek should be a "wake up call" for US technology firms, according to NBC News
  • HHS nominee Robert F. Kennedy Jr. is open to seizing patents of higher priced drugs and sharing them with other drug makers, according to Politico
  • Office of Management and Budget announces temporary pause of agency grant, loan, and other financial assistance programs
  • Drugmakers increased prices by 4% at the start of 2025, according to the Wall Street Journal
  • White House announces "The Iron Dome for America"
  • Immigration and Customs Enforcement made 3500 arrests in one week, according to Axios
  • Senate votes to confirm Treasury Secretary Scott Bessent by a vote of 68-29
  • President Trump's advisors are recommending that he hold off on tariffs until April 1 when trade review is completed and all of his economic team is in place - CNBC
  • RFK Jr. will tell Senate that he believes "vaccines have a critical role in healthcare," according to Bloomberg (Note: RFK Jr's confirmation hearing will be Wednesday)
  • UK CMA announces provisional findings for cloud services market investigation
  • EU Commission proposes tariffs on remaining agricultural products and on fertilisers from Russia and Belarus
  • Airbus (EADSY) confirms that an 'Airbus A321 aircraft operated by Air Busan caught fire on the ground. We are in contact with the airline and will provide full assistance to the investigation authorities.'
  • American Public Education (APEI) to combine institutions; confirms each of its institutions estimates it will be in compliance with ED’s '90/10 Rule' for calendar year 2024
  • Appeals court blocks airline fee disclosure rules, according to Reuters
  • Apellis Pharmaceuticals (APLS) receives approval of SYFOVRE (pegcetacoplan) in Australia for Geographic Atrophy
  • AstraZeneca (AZN) receives approval from FDA for Enhertu for breast cancer post ET
  • Atai Life Sciences N.V. (ATAI) announces positive topline results from Beckley Psytech’s BPL-003 (intranasal 5-meo-dmt benzoate) phase 2a open-label study for alcohol use disorder
  • Baxter (BAX) currently expects to be producing at pre-hurricane levels across the plant early in the first quarter of 2025
  • Bitfarms (BITF) enters LOI for the sale of its Yguazu, Paraguay Site with HIVE Digital Technologies (HIVE)
  • BioAge Labs (BIOA) announces company updates for its programs and platfor
  • Brazil Potash Corp (GRO) Executive Chairman Mayo Schmidt and leadership team met with Amazonas State Governor, Wilson Lima, Mayor Thomé Neto, and the Mura Indigenous Council to discuss advancement of Autazes potash project
  • Brighthouse Financial (BHF) considering sale, according to FT
  • BWX Technologies (BWXT) announces contracts with a total value of more than C$1 billion for two major nuclear energy projects that will enable Ontario Power Generation’s life extension of the Pickering Nuclear Generating Station, and the deployment of a new small modular reactor at the Darlington site
  • Canada Goose (GOOS) announces renewal of regulatory relief regarding share repurchase program
  • Canadian Pacific Kansas City Ltd. (CP) reaches a tentative four-year collective agreement with Unifor representing approximately 1,200 employees at CPKC in Canada
  • ClearPoint Neuro (CLPT) announces FDA clearance for its ClearPoint Navigation Software Version 3.0
  • Coinbase Global (COIN) gains approval to launch in Argentina
  • Compass Minerals (CMP) announces senior leadership team appointments
  • CVS (CVS) aiming to shorten pharmacy lines and provide more prescription cost transparency, according to the Wall Street Journal
  • Elbit Systems (ESLT) Tzur drone, equipped with ParaZero’s (PRZO) DropAir System, begins a pilot program in Gaza
  • Essential Utilities (WTRG): Aqua Pennsylvania awarded nearly $29 million in funding to remove PFAS from drinking water across commonwealth
  • Fresenius Medical (FMS) receives FDA 510(k) clearance for adaptive nomogram, enhancing plasma collection efficiency
  • GE Aerospace (GE) awarded $3.5 bln U.S. Air Force contract modification
  • Google (GOOG, GOOGL) tells EU court that record fine impacted innovation, according to
  • GlaxoSmithKline (GSK): Depemokimab applications accepted for review in China and Japan for asthma with type 2 inflammation and CRSwNP
  • GlaxoSmithKline (GSK) reports EMA accepts two submissions for depemokimab
  • Hanesbrands (HBI) amended Barington Cooperation Agreement
  • HealthStream (HSTM) and the American Red Cross announce a significant expansion of the Red Cross Resuscitation Suite portfolio with the new Neonatal Advanced Life Support education program
  • Honda (HMC) wants to introduce EV under $30K, according to Nikkei
  • Honda (HMC) wants 50% share of motorcycle market, according to Bloomberg
  • HSBC (HSBC) aiming to close some investment banking operations in Europe & UK, according to Bloomberg
  • Keysight (KEYS) and KD partner to create a comprehensive test for Multigigabit Optical Automotive Ethernet physical layer
  • Lockheed Martin (LMT) awarded $502 mln U.S. Navy contract
  • Merck (MRK) announces a $10 billion share repurchase authorization
  • Microsoft (MSFT): OpenAI CEO Sam Altman says "Deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price. we will obviously deliver much better models"
  • Microsoft (MSFT): President Trump says Microsoft considering purchasing TikTok US, according to Bloomberg
  • Neurocrine Biosciences (NBIX) announces amendment to strategic collaboration with Takeda (TAK) to develop and commercialize osavampator (formerly NBI-1065845/TAK-653)
  • Novo Nordisk A/S (NVO) announces that the U.S. FDA has approved Ozempic to reduce the risk of kidney disease worsening, kidney failure, and death due to cardiovascular disease in adults with type 2 diabetes and chronic kidney disease
  • Oklo Inc. (OKLO) and Lightbridge Corporation sign MOU outlining plan to conduct feasibility study for co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo’s proposed commercial fuel fabrication facility
  • Okta (OKTA) announces a multi-year partnership with the McLaren Formula 1 Team, one of the most iconic brands in motorsport and the 2024 Formula 1 Constructors’ Champion
  • Parsons (PSN): SealingTech unit delivered more than 500 Cyber-Fly-Away kits to US defense and intelligence customers during Q4
  • Pfizer (PFE) will present the latest results from its leading genitourinary portfolio at the American Society of Clinical Oncology Genitourinary Cancers Symposium
  • Philips (PHG): Bridgefield Capital has entered into a definitive agreement to acquire the Philips Emergency Care Business from Royal Philips N.V.
  • Pinduoduo's (PDD) Temu being questioned by FTC over Amazon (AMZN) pricing policy, according to The Information
  • Quantum (QMCO) Announces the Next Steps of its Debt Reduction Initiative
  • Rackspace Technology (RXT) announces working with American Logistics to launch a state-of-the-art NEMT platform, cloud-native AWS environment that reimagines healthcare transportation capabilities to transform a company's enterprise operations to realize the goals of providing the future of NEMT transportation for their clients
  • Rentokil Initial plc (RTO) reports that it traded in line with market expectations for the full year; also announces that Brad Paulsen will be leaving the Group in April 2025 to pursue a new opportunity
  • Roche Hldg (RHHBY): Genentech’s Itovebi Demonstrated Statistically Significant and Clinically Meaningful Overall Survival Benefit in a Certain Type of HR-Positive Advanced Breast Cancer
  • RTX (RTX) awarded $3.5 bln U.S. Air Force contract modification
  • SEALSQ Corp (LAES) announces that it decentralizes AI development with cost-effective post-quantum semiconductors, paving the way for a decentralized and sustainable AI future
  • Seanergy Maritime (SHIP) enters into two definitive agreements with unaffiliated third parties in Japan for the purchase of a Japanese-built Newcastlemax vessel and a bareboat charter with a purchase obligation for one Japanese-built Capesize vessel for ~$69 mln
  • Softbank (SFTBY) aiming to invest in Skild AI with a $4 bln valuation, according to FT
  • Southwest Air (LUV) delivered a Notice of Change in Default Settlement Method to securityholders and Computershare Trust Company as trustee announcing the Company’s election to settle in cash its 1.250% convertible senior notes due 2025
  • Surgery Partners (SGRY): Bain Capital submits non-binding proposal to acquire outstanding shares for cash consideration of $25.75 per share
  • Surgery Partners (SGRY) confirms receipt of non-binding acquisition proposal from Bain Capital to acquire all of the outstanding shares of Surgery Partners not already owned by Bain Capital for a cash consideration of $25.75/share
  • Talen Energy (TLN), Other Parties Reach Reliability Must Run Settlement Agreement for Brandon Shores and H.A. Wagner Power Plants
  • Telos Corporation (TLS) disclosed DHS update
  • Telomir Pharmaceuticals (TELO) announces breakthrough results with Telomir-1 fully reversing oxidative stress in human cell lines and exploring potential as a treatment for avian influenza (bird flu) and other viruses
  • Textron (TXT) Aviation Defense and Kanematsu Group announce that the Beechcraft T-6 Texan II Integrated Training System has been chosen to modernize pilot training for the Japan Air Self-Defense Force
  • TotalEnergies SE (TTE) and STMicroelectronics (STM) sign a physical power purchase agreement to supply renewable electricity to STMicroelectronics sites in France
  • trivago (TRVG) received the resignation of Robin Harries as Managing Director and Chief Financial Officer, effective July 31, 2025
  • U.S. Steel (X): Pentwater Capital Management is against Ancora proxy proposal on US Steel, according to Bloomberg
  • Wabtec (WAB) announces a $248 mln order for Evolution Series ES43ACmi locomotives and services from Winning Consortium Simandou to support their rail operations at the high-grade iron ore project, located in the east of Guinea
  • Whole Foods (AMZN) workers in Philadelphia will form union, according to the Wall Street Journal
  • Williams Cos (WMB) increases quarterly cash dividend 5.3% to $0.50/share from $0.475/share
  • Workday (WDAY): Nayya announces a strategic partnership with Workday to help employees maximize their health and financial benefits
  • Xiao-I Corporation (AIXI) deploys its 8-million-HKD AI-powered HR system for a Hong Kong public sector client

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

• Upgrades:
  • Autodesk (ADSK) upgraded to Outperform from Neutral at Mizuho; tgt raised to $400
  • Ciena (CIEN) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $88
  • Ecolab (ECL) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $280
  • Roper (ROP) upgraded to Buy from Hold at TD Cowen; tgt raised to $615
• Downgrades:
  • Advanced Micro Devices (AMD) downgraded to Hold from Buy at Melius; tgt lowered to $129
• Others:
  • Albemarle (ALB) initiated with a Hold at Truist; tgt $96
  • Chemours (CC) initiated with a Buy at Truist; tgt $27
  • Element Solutions (ESI) initiated with a Hold at Truist; tgt $28
  • Expand Energy Corporation (EXE) initiated with a Neutral at Piper Sandler; tgt $96
  • Minerals Tech (MTX) initiated with a Buy at Truist; tgt $103
  • Olin (OLN) initiated with a Hold at Truist; tgt $38
  • Tanger Factory (SKT) initiated with a Market Perform at BMO Capital Markets; tgt $36
  • Tronox (TROX) initiated with a Buy at Truist; tgt $17
  • Westlake Corporation (WLK) initiated with a Buy at Truist; tgt $168

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 0.1%)
  • 8:30 ET: December advance International Goods Trade Balance (prior -$102.9 bln), advance Retail Inventories (prior 0.3%), and advance Wholesale Inventories (prior -0.2%)
  • 10:30 ET: Weekly crude oil inventories (prior -1.02 mln)
  • 14:00 ET: January FOMC Rate Decision (Briefing.com consensus 4.25-4.50%; prior 4.25-4.50%)
• Earnings:
  • Monday (Jan 27)
    • Pre-Market: T BOH HOPE SOFI
    • After-Hours: ARE BRO CR ELS GGG NUE PCH SANM SBCF TRNS WRB WAL WSFS
  • Tuesday (Jan 28)
    • Pre-Market: ADNT BA CVLT GM IVZ JBLU KMB LMT PCAR PII BPOP RCL RTX SAP SASR SYF SYY XRX
    • After-Hours: ASH AX BXP CB FFIV FCF HLI LC LFUS LOGI MANH NXT PKG PFS QRVO RNR RNST SBUX LRN SYK TRMK UMBF VBTX
  • Wednesday (Jan 29)
    • Pre-Market: AIT ASML ADP AVT EAT GLW DHR EXP EXTR FLEX GD GPI HES HESM LII MNRO MSCI NDAQ NAVI NSC OTIS PB SMG SLGN SBSI SF TMUS TEVA VFC VIRT WNC
      
    • After-Hours: AMP AXS BHE CHRW CALX CP CCS CLB DLB ETD FIBK IBM LRCX LSTR LVS LEVI LBRT MXL MTH META MSFT NFG RJF RHI SEIC SIGI NOW TER TSLA TTEK URI WM WDC WHR WOLF
  • Thursday (Jan 30)
    • Pre-Market: FLWS AOS ALGM MO ABG AVY BHLB BX BFH BIP BC CAH CRS CAT CHKP CFR DOV DOW DT FRME FCFS FLG IP KEX LAZ LHX MBUU MAN MMC MA MBLY MUR NTCT NOK NOC OSK PH PHM DGX ROP RES SNY SCSC SNDR SHW SIRI LUV STM CI TMO TSCO TT UPS VLO
    • After-Hours: ATGE ABCB APPF AAPL AJG TEAM BKR BZH CNI CLS COUR DECK EMN FHI GEN HIG HTH INTC KLAC LPLA OLN PPG RMD SKYW STEL X VIAV V WY
  • Friday (Jan 31)
    • Pre-Market: ABBV AON ARCB ALV BMI BAH BR CHTR CVX CHD CL ETN XOM FHB BEN GNTX GWW IMO JHG LYB NVS OMF PSX RBC VSTS WT
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike