After Hours Report

The stock market started the session in rally-mode, but buying faded by the close. The S&P 500 traded up as much as 1.3% at its session high before closing 0.6% higher than Friday. The Nasdaq Composite closed 1.2% higher while the Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.1%) closed with declines.

The S&P 500 and Nasdaq Composite benefitted from buying interest in the mega cap and chipmaker space, which also faded from initial levels. NVIDIA (NVDA 149.43, +4.96, +3.4%), which outperformed ahead of CEO Jensen Huang's keynote address at the Consumer Electronics Show (CES) tonight at 6:30 p.m. PST (9:30 p.m. ET), traded up as much as 5.3% at its high. 

NVIDIA's outperformance was also linked to AI enthusiasm after Foxconn reported a 15% yr/yr increase in record Q4 revenues. This enthusiasm was a driving factor in the initial move higher for the broader equity market, along with some technical support after the S&P 500 opened above its 50-day moving average (5,948) and maintained a posture above that level through the entire session. 

Buying interest dissipated due to choppy action in Treasuries, and after President-elect Trump said in a Truth Social Post that it was wrong of the Washington Post to suggest his tariff policy would be pared back. The 10-yr yield, which moved as low as 4.58% and as high as 4.64%, settled at 4.61%. 

Seven S&P 500 sectors closed lower while four settled higher. The rate-sensitive utilities (-1.1%) and real estate (-1.4%) sectors logged the largest losses. The communication services (+2.1%) and information technology (+1.4%) sectors closed at the top of the leaderboard, reflecting leadership from mega cap and chipmaker components. 

• Russell 2000: +1.6% YTD
• Nasdaq Composite: +2.9% YTD
• S&P 500: +1.6% YTD
• S&P Midcap 400: +1.1% YTD
• Dow Jones Industrial Average: +0.4% YTD

Reviewing today's economic data:

• Factory orders decreased 0.4% month-over-month in November (Briefing.com consensus -0.3%) following an upwardly revised 0.5% increase (from 0.2%) in October. Excluding transportation, factory orders rose 0.2% on the heels of a 0.2% increase in October. Shipments of manufactured goods edged 0.1% higher in November following a 0.2% decline in October.
  • The key takeaway from the report is that the weakness in factory orders was concentrated in the volatile transportation equipment space; otherwise, there was a modest pickup in order activity.
• December S&P Global US Services PMI 56.8 (prior 58.5) versus final reading of 56.1 for November. The dividing line between expansion and contraction is 50.0, and although the final December reading was revised down from the preliminary reading of 58.5, the final reading for December was above the final reading for November, indicating that the pace of expansion accelerated versus the prior month.

Looking ahead to Tuesday, market participants receive the following data: 

• 08:30 ET: November Trade Balance (Briefing.com consensus -$77.9B; prior -$73.8B)
• 10:00 ET: December ISM Services PMI (Briefing.com consensus 53.0%; prior 52.1%)
• 10:00 ET November JOLTS - Job Openings (prior 7.744M)

Overseas:

• Europe: DAX +1.5%, FTSE +0.3%, CAC +2.2%
• Asia: Nikkei -1.5%, Hang Seng -0.4%, Shanghai -0.1%

Commodities:

• Crude Oil +0.84 @ 73.95
• Nat Gas -0.19 @ 2.96
• Gold -7.30 @ 2647.80
• Silver +0.43 @ 30.52
• Copper +0.09 @ 4.16

After-Hours Spotlight:

• Meta Platforms (META) appoints Dana White, John Elkann, and Charlie Songhurst to its board of directors... META up 0.9%
• Stryker (SYK) announces definitive agreement to acquire Inari Medical (NARI) for $80/share in cash, a total of ~$4.9 bln, providing entry into high-growth peripheral vascular segment... SYK down 1.5%; NARI up 21.5%
• Ulta Beauty (ULTA) appoints Kecia Steelman as CEO, Dave Kimbell to retire after distinguished 11-year tenure... ULTA up 2.2%

Fair Value for Tuesday, Jan 7:

• S&P 500: 6,021
• Nasdaq 100: 21,747
• DJIA: 42,990

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

• Earnings/Guidance (Full Earnings Calendar):
  • PBF Energy (PBF) provides initial guidance for 2025 metrics
  • Hon Hai Precision (HNHPF) Chairman confident in revs growth for the year
  • Lucid Group (LCID): On a full year basis in 2024, the company produced 9,029 vehicles and delivered 10,241 vehicles, of which approximately 5% were subject to operating lease accounting
  • Niu Technologies (NIU) reports Q4 sales of 226,634 units
  • Riot Platforms (RIOT) announces December 2024 production and operations updates; mines 516 bitcoin
  • UMH Properties, Inc. (UMH) provides fourth quarter and full year 2024 operations update
• General News
  • Congress certifies 2024 election results, with no congressional member challenging the results; Donald Trump will be inaugurated as the 47th President on January 20
  • President-elect Trump tells House Speaker Mike Johnson that he wants Congress to pass one large reconciliation bill instead of separate bills that includes tax cuts, energy policy, border security, debt ceiling increase, and spending cuts (reconciliation bills can pass Senate with 51 votes). Mr. Johnson says his goal is to have that bill become law by the end of April, according to Politico
  • President-elect Trump planning universal country tariffs, but only on critical imports instead of on all products, according to Washington Post; President-elect Trump denies Washington Post story that tariffs will be pared back
  • President-elect Trump will not face any legal penalties at January 10 sentencing for his New York conviction, according to CNN
  • President Biden takes action to protect the entire U.S. East coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska from future oil and natural gas leasing
  • Justin Trudeau announces he will step down as leader of Liberal Party and Canada's Prime Minister after his party selects a successor
  • Federal Reserve Board announces Michael Barr will step down from his position as Federal Reserve Board Vice Chair for Supervision, effective February 28, 2025, and will continue to serve as governor
  • China asks large fund managers to restrict stock selling in effort to calm markets, according to Reuters
  • China conducted massive hacking operation against US telecommunications networks, according to the
  • House passes rules package which raises the threshold for triggering a vote to remove the Speaker of the House to 9 Republican members, according to Politico
  • The Biden administration wants DOJ to reject President-elect Trump's request to delay TikTok ban, according to Bloomberg
  • The Biden administration sending $8 bln in arms to Israel, according to the Wall Street Journal
  • Federal Reserve Governor Adriana Kugler says US economy in good place, labor market is resilient, but keeping eye on inflation, according to CNBC
  • Senate Majority Leader John Thune tells President-elect Trump that Pete Hegseth will be confirmed as Secretary of Defense, according to CBS News
  • Some Senate Democrats are open to supporting RFK Jr. for Secretary of HHS, according to The Hill
  • December North America Class 8 net orders increased 39% yr/yr to 36,500 units, according to Act Research
  • NYC congestion pricing plan goes into effect after judge rejects New Jersey's emergency request to stop the program, according to the New York Times
  • AerCap (AER) Leased, Purchased and Sold 812 Assets in the Full Year 2024, including 150 Assets Purchased and Signed Financing Transactions for Approximately $17.5 Billion in the Full Year 2024
  • Agios Pharma (AGIO) discloses that FDA approved an update to the U.S. Prescribing Information for PYRUKYND; now includes information regarding liver injury observed in patients with another condition
  • Air Products (APD): Mantle Ridge issues shareholder letter; Restoring integrity is necessary for Air Products and Chemicals, Inc. to recover and return to prosperity
  • Alico (ALCO) announces strategic transformation that includes the wind down of Alico Citrus’ primary operations
  • Amazon (AMZN) will produce Melania Trump documentary, according to the New York Times
  • Amgen's (AMGN) IMDYLLTR receives conditional Marketing Authorisation for third-line treatment of extensive-stage small cell lung cancer in the UK
  • Azul S.A. (AZUL) successfully reaches individual settlement agreement
  • Bank of Nova Scotia (BNS) enters into an agreement to transfer banking operations in Colombia, Costa Rica and Panama to Davivienda in exchange for an approximate 20% ownership stake in the combined banking operations
  • Barrick (GOLD) provides update on Loulo-Gounkoto operations in Mali
  • BitFuFu (FUFU) reported production and mining operations updates for December 2024
  • BP (BP) flows first gas at Greater Tortue Ahmeyim LNG project
  • Broadstone Net Lease (BNL) Adds $117.4 Million to its Committed Pipeline of Build-to-Suit Development Commitments and Schedules Fourth Quarter 2024 Earnings Release and Conference Call
  • Canaan (CAN) receives A15XP order from new US customer
  • Canopy Growth (CGC) to announce that effective today, January 6, 2025, Brooks Jorgensen has been appointed as the Company's first-ever President
  • CleanSpark (CLSK) releases December 2024 bitcoin mining update
  • Cleveland-Cliffs (CLF) comments on U.S. Steel’s (X) and Nippon Steel’s Desperate Lawsuits: deflecting blame on everyone else for their own mistake
  • CMS Energy (CMS) and Ashcor USA Inc. announce an agreement to extract and repurpose millions of tons of impounded coal ash from the soon to be retired J.H. Campbell Generating Complex
  • CNX Resources (CNX) issues statement on section 45V hydrogen production tax credit implementation guidance
  • Costco (COST) announces recall of certain Kirkland Signature Severe Cold & Flu Plus Congestion products
  • Credit Suisse (CS): Investigators looking to Nazi account connections at Credit Suisse, according to Bloomberg
  • Dolby Labs (DLB): Samsung and Google’s new spatial audio format will take on Dolby Atmos this year, according to TheVerge.com
  • Equinor (EQNR) announces the highest natural gas production ever from a Norwegian field
  • Forward Air (FWRD) announces that its Board of Directors has initiated a comprehensive review of strategic alternatives to maximize shareholder value
  • fuboTV (FUBO) & Disney (DIS) nearing agreement to merge their online live TV units, according to Bloomberg
  • FutureFuel (FF) receives Excise Tax Registration approval from the Internal Revenue Service
  • Garmin (GRMN) and Qualcomm (QCOM) reveal next-gen digital cockpit solution powered by Snapdragon cockpit elite platform
  • GE Vernova (GEV) plans to invest $20 mln in Singapore to boost innovation in repair capabilities and technologies on next generation of its High efficiency, Air-cooled gas turbines
  • Gilat Satellite (GILT) received $9 million in orders from major satellite operators
  • ICICI Bank (IBN) eceived an Order from Maharashtra Goods and Services Tax Department raising GST demand of INR 26,12,07,438/- and equivalent amount of penalty and interest as applicable
  • Ingredion (INGR) to cease operations at its plant protein concentrates and flour manufacturing facility in Vanscoy, Saskatchewan, Canada as of January 6, 2025
  • Inseego (INSG) appointed Juho Sarvikas as Chief Executive Officer of the Company, effective January 6, 2025
  • Intel's (INTC) problems could be worse than people thought, according to the Wall Street Journal
  • JinkoSolar's (JKS) Perovskite Tandem Solar Cell Based on N-type TOPCon Sets New Record with Conversion Efficiency of 33.84%
  • Kingsoft Cloud (KC) announces that Yangtze United Financial Leasing agreed to provide finance lease service by way of sale and leaseback of certain servers with the total amount of finance lease principal of RMB500 million for a term of three years
  • Lifeway Foods (LWAY) reaffirms rejection of Danone's (DANOY) offer to acquire the Company because it severely undervalues the Company
  • MarketAxess (MKTX) announces trading volume statistics for December and Fourth Quarter 2024
  • Marti Technologies (MRT) announced the launch of its dynamic pricing model
  • Marvell (MRVL) Announces Breakthrough Co-Packaged Optics Architecture for Custom AI Accelerators
  • Meta Platforms (META): New Orleans attacker wore Meta smart glasses during attack, according to NBC News
  • NVIDIA (NVDA): CEO Jensen Huang slated to deliver keynote address at Consumer Electronics Show (CES) tonight at 6:30 p.m. PST (9:30 p.m. ET)
  • Oculis (OCS) announces positive OCS-05 Phase 2 ACUITY Trial in Acute Optic Neuritis, met primary safety endpoint and key secondary efficacy endpoints opening development pathways as a potential first-in-class neuroprotective therapy
  • Omnicom (OMC) will announce search partnership with Google (GOOG) at CES, according to Digiday
  • Perpetua Resources (PPTA): U.S. Forest Service issues permit for its Idaho antimony and gold mine, according to Reuters
  • Quarterhill (QTRHF) receives $40 million renewal contract to upgrade Alameda County Transportation Commission I-580 Express Lanes
  • Samsara (IOT) CEO and CTO adopted pre-arranged stock trading plan
  • Samsung (SSNLF) unveils Samsung Vision AI and new innovations at First Look 2025, delivering personalized, AI-powered screens
  • Septerna (SEPN) names Gil Labrucherie as CFO
  • Serve Robotics (SERV) secures $86 million in new financing in December
  • SES AI Corporation (SES) unveils new AI-enhanced 2170 cylindrical cell for humanoid robotics applications at the 2025 CES Show
  • Skeena Resources (SKE) collected US$45 million of gold stream funding on December 30, 2024 under its gold stream arrangement; provides progress update on Eskay Creek
  • SolarEdge Technologies (SEDG) announces safe harbor agreements with Sunrun (RUN) and one of the largest financers of residential solar installations in the United States
  • SolarEdge Technologies (SEDG) expects to reduce its headcount by approximately 400 employees
  • Talos Energy (TALO) announces that Joseph Mills has resigned from his roles as Interim President and CEO, and member of the Board, effective immediately
  • Tenable (TENB) CEO/Chairman unexpectedly passes away; expects to meet or exceed prior guidance
  • TeraWulf (WULF) announces December 2024 production and operations update: mines 158 bitcoin, achieves 9.7 EH/s
  • Trimble (TRMB) and Qualcomm (QCOM) deliver precise positioning solutions for automotive OEMs and tier 1 suppliers
  • Uber (UBER) and Lyft (LYFT) are offering new self driving features, according to the Wall Street Journal
  • Uber (UBER) enters $1.5 bln accelerated share repurchase program
  • Ultragenyx Pharma (RARE): EC extends approval of Evkeeza to children as young as 6-months old with HoFH
  • Varex Imaging (VREX) terminated the Equipment Credit Agreement since it was no longer needed following the consummation of the offering of the additional senior secured notes on December 20, 2024
  • Vizsla Silver (VZLA) announces 43% increase in measured and indicated mineral resources at Panuco, including 46 moz grading 640 G/T AGEQ in first measured resource estimate
  • Walt Disney (DIS) and FuboTV (FUBO) enter into a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo, forming a combined virtual MVPD company
  • XPeng (XPEV) and Volkswagen Group China announce a MOU to jointly build one of the largest super-fast charging networks in China

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

• Upgrades:
  • Advanced Energy (AEIS) upgraded to Buy from Neutral at Citigroup; tgt raised to $138
  • Align Tech (ALGN) upgraded to Outperform from Market Perform at Leerink Partners; tgt raised to $280
  • Amcor (AMCR) upgraded to Buy from Hold at Truist; tgt raised to $12
  • Amcor (AMCR) upgraded to Buy from Neutral at Citigroup; tgt raised to $12
  • American Airlines (AAL) upgraded to Buy from Hold at Melius; tgt $23
  • American Airlines (AAL) upgraded to Buy from Hold at Jefferies; tgt raised to $20
  • Amplitude (AMPL) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $15
  • Arch Resources (ARCH) upgraded to Overweight from Neutral at Piper Sandler; tgt lowered to $150
  • AvalonBay (AVB) upgraded to Outperform from Neutral at Mizuho; tgt raised to $242
  • Banc of California (BANC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $20
  • Boeing (BA) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $210
  • Booz Allen Hamilton (BAH) upgraded to Equal Weight from Underweight at Barclays; tgt $140
  • Capital One (COF) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $219
  • Capri Holdings (CPRI) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $31
  • Cardinal Health (CAH) upgraded to Buy from Neutral at BofA Securities; tgt raised to $145
  • Chewy (CHWY) upgraded to Outperform from Neutral at Mizuho; tgt raised to $42
  • Cisco (CSCO) upgraded to Buy from Hold at Melius; tgt raised to $73
  • Citigroup (C) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $95
  • Columbia Banking (COLB) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $35
  • Corebridge Financial (CRBG) upgraded to Overweight from Equal Weight at Barclays; tgt $37
  • Discover Financial Services (DFS) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $186
  • Dutch Bros (BROS) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $70
  • Franklin Resources (BEN) upgraded to Neutral from Sell at Goldman; tgt raised to $22
  • Quest Diagnostics (DGX) upgraded to Outperform from Market Perform at Leerink Partners; tgt raised to $174
• Downgrades:
  • Affiliated Managers (AMG) downgraded to Neutral from Buy at Goldman; tgt lowered to $191
  • Ameriprise Financial (AMP) downgraded to Neutral from Buy at UBS; tgt lowered to $570
  • Amkor (AMKR) downgraded to Hold from Buy at Melius; tgt lowered to $30
  • AppFolio (APPF) downgraded to Neutral from Overweight at Piper Sandler; tgt $265
  • BlackLine (BL) downgraded to Underweight from Neutral at Piper Sandler; tgt $60
  • Cboe Global Markets (CBOE) downgraded to Sell from Neutral at Goldman; tgt $184
  • CME Group (CME) downgraded to Neutral from Buy at Citigroup; tgt lowered to $250
  • Commscope (COMM) downgraded to Underperform from Mkt Perform at Raymond James
  • Dynatrace (DT) downgraded to Neutral from Buy at Guggenheim
  • Salesforce (CRM) downgraded to Sell from Neutral at Guggenheim; tgt $247
• Others:
  • Appian (APPN) initiated with a Sector Perform at Scotiabank; tgt $37

• Econ Data (Tuesday):
  • 08:30 ET: November Trade Balance (Briefing.com consensus -$77.9B; prior -$73.8B)
  • 10:00 ET: December ISM Services PMI (Briefing.com consensus 53.0%; prior 52.1%)
  • 10:00 ET: November JOLTS - Job Openings (prior 7.744M)
• Earnings:
  • Monday (Jan 6)
    • Pre-Market: CMC
    • After-Hours: None
  • Tuesday (Jan 7)
    • Pre-Market: APOG, LNN, RPM
    • After-Hours: AIR, AZZ, CALM, SLP
  • Wednesday (Jan 8)
    • Pre-Market: AYI, ACI, ANGO, HELE, MSM, RDUS, UNF
      
    • After-Hours: GBX, JEF, PENG
  • Thursday (Jan 9)
    • Pre-Market: SMPL
    • After-Hours: ACCD, KBH, PSMT
  • Friday (Jan 10)
    • Pre-Market: STZ, DAL, NEOG, SNX, TLRY, WBA
    • After-Hours: WDFC
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike