After Hours Report

The week started with some turbulence in the stock market. The S&P 500 and Nasdaq Composite traded down as much as 1.9% and 2.5%, respectively, and the Dow Jones Industrial Average was more than 650 points lower at its worst level.  

This price action was in response to the weekend news that the US imposed a 25% tariff on imported goods from Canada and Mexico (only 10% for Canadian energy) and a 10% tariff on imported goods from China beginning at midnight.

Subsequents news emerged that Mexico's President Claudia Sheinbaum said she had a "good call" with President Trump and he agreed to "pause tariffs for one month." President Trump confirmed the update. 

Stocks moved off their lows in response, but never fully recovered due to ongoing fears about tariffs impacting growth and pressuring inflation higher. The lower finish was also influenced by increased selling in heavily-weighted sectors like information technology (-1.8%), consumer discretionary (-1.4%), and financials (-0.4%). 

There were some pockets of buying interest, though, leading the consumer staples (+0.7%), utilities (+0.5%), and energy (+0.4%) sectors to close higher.

Treasuries settled mixed in response. The 10-yr yield settled three basis points lower at 4.54% and the 2-yr yield settled three basis points higher at 4.27%.

• Dow Jones Industrial Average: +4.4% YTD
• S&P Midcap 400: +2.5% YTD
• Russell 2000: +1.3% YTD
• S&P 500: +1.9% YTD
• Nasdaq Composite: +0.4% YTD

Reviewing today's economic data:

• January S&P Global US Manufacturing PMI - Final 51.2; Prior 50.1
• January ISM Manufacturing Index 50.9% (Briefing.com consensus 49.1%); Prior was revised to 49.2% from 49.3%
  • The key takeaway from the report is that manufacturing sector activity overall moved into expansion territory for the first time after 26 straight months of contraction, underscoring an improved demand backdrop seen in the pickup in the new orders and employment indexes.
• December Construction Spending 0.5% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.0%
  • The key takeaway from the report is that new single-family construction activity picked up despite rising interest rates.

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

• 10:00 ET: December job openings (prior 8.098 mln) and December Factory Orders (Briefing.com consensus -0.3%; prior -0.4%)

Overseas:

• Europe: DAX -1.5%, FTSE -1.0%, CAC -1.2%
• Asia: Nikkei market closed, Hang Seng -0.0%, Shanghai market closed

Commodities:

• Crude Oil +0.66 @ 73.12
• Nat Gas +0.31 @ 3.35
• Gold +22.40 @ 2856.50
• Silver +0.31 @ 32.53
• Copper +0.05 @ 4.32

After-Hours Spotlight:

• Clorox (CLX) beats by $0.15, beats on revs; raises FY25 EPS above consensus, revs in-line... CLX down 2.3%
• Fabrinet (FN) beats by $0.12, beats on revs; guides Q3 EPS in-line, revs above consensus; Also approves expansion of share repurchase program for up to additional $100 mln of common stock... FN up 2.8%
• NXP Semi (NXPI) beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs in-line... NXPI up 1.8%
• Palantir Technologies (PLTR) beats by $0.03, beats on revs; guides Q1 revs above consensus; guides FY25 revs above consensus... PLTR up 19.4%
• Synaptics (SYNA) guides Q2 revenue slightly above guidance, see EPS ahead of midpoint of prior guidance range; announces that Michael Hurlston steps down as President and CEO; CFO Ken Rizvi appointed interim CEO... SYNA down 7.7%

Fair Value for Tuesday, February 4:

• S&P 500: 6,021
• Nasdaq 100: 21,403
• DJIA: 44,562

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

• Earnings/Guidance (Full Earnings Calendar):
  • Alliance Resource (ARLP) reports Q4 results, misses on revs; Issues FY25 guidance
  • Cleveland-Cliffs (CLF) guides Q4 revs below consensus; expects Q4 to be the trough in current cycle; has seen improvements in its order book in 2025
  • Harmony Gold (HMY) reported total gold production for the six months ended 31 December 2024 was between 790 000 ounces (24 570kg) and 805 000 ounces
  • IDEXX Labs (IDXX) beats by $0.13, beats on revs; guides FY25 EPS in-line, revs in-line
  • Napco Security Systems (NSSC) misses by $0.06, misses on revs
  • Saia (SAIA) beats by $0.07, reports revs in-line
  • Stratasys (SSYS) sees Q4 revs above consensus
  • Twist Bioscience (TWST) beats by $0.09, beats on revs; guides Q2 revs above consensus; raises FY25 revenue guidance
  • Tyson Foods (TSN) beats by $0.24, beats on revs; raises FY25 revenue guidance
• General News
  • President Trump says nothing Canada, Mexico, and China can do now to forestall tariffs starting Feb. 1; possible we could even increase the tariff rate, CNBC
  • China preparing to negotiate with President Trump to get tariffs removed, according to the Wall Street Journal
  • President Trump threatening EU with tariffs, according to Bloomberg
  • President Trump says the Fed made the "right" decision to hold interest rates steady, according to Bloomberg
  • President Trump will speak with his counterparts from Canada and Mexico today about tariffs, but says he "doesn't expect anything dramatic", according to The Hill
  • House Republicans are uniting around reconciliation blueprint that includes tax cuts, energy policy, and immigration enforcement. It is not yet clear if they have enough votes to pass it, according to the Washington Post
  • The Trump administration had "very serious" discussions with Russia about ending war in Ukraine, according to AP
  • Michelle Caruso-Cabrera on CNBC says inflationary impact on tariffs will decrease if US currency rises
  • Elon Musk outlined DOGE cost cutting efforts, according to Bloomberg
  • White House launches 10-to-1 deregulation initiative
  • Transportation Secretary Sean Duffy calls for modernization of air traffic control systems, according to Fox News
  • President Trump fired Consumer Financial Protection Bureau chief Rohit Chopra, according to the New York Times
  • A medical plane crashed in Philadelphia, killing six people
  • Los Angeles wildfires are 100% contained, according to the New York Times
  • Statement Department spokesperson Tammy Bruce issues readout of Secretary Marco Rubio’s meeting with Panamanian President Mulino
  • Macau Gaming Inspection and Coordination Bureau reported January gross revs -5.6% yr/yr to HKD 18.254 bln versus +67% in January of 2024
  • White House officials say negotiations are ongoing with Canada/Mexico on tariffs; President Trump will speak from the Oval Office later this afternoon - CNBC
  • Mexico's President Claudia Sheinbaum says she had a "good call" with President Trump and he agreed to "pause tariffs for one month"
  • President Trump confirms that Mexico tariffs will be delayed by one month after a series of agreements with Mexico
  • CFPB issues statement on designation of Treasury Secretary Scott Bessent as Acting Director of the Consumer Financial Protection Bureau
  • The Trump administration preparing $1 billion arms sale to Israel, according to WSJ
  • President Trump's advisors considering plan to dismantle the Department of Education, according to WSJ
  • ACELYRIN (SLRN) delivered a Notice of Termination to Affibody AB - terminating the License and Collaboration Agreement
  • ADM (ADM) will soon eliminate jobs to cut costs, according to Reuters
  • Apogee Therapeutics (APGE) Announces First Patient Dosed in Part B of Phase 2 APEX Trial of APG777 in Patients with Moderate-to-Severe Atopic Dermatitis
  • Arthur J. Gallagher (AJG) acquires Syracuse, New York-based Dominick Falcone Agency, and Falcone Associates; financial terms were not disclosed
  • AstraZeneca's (AZN) receives Imfinzi recommended approval in EU by CHMP
  • Avista (AVA) files multi-year electric and natural gas rate plan in Idaho
  • Baker Hughes (BKR) and Hanwha Announce Partnership to Develop Small-Size Ammonia Turbines
  • Baker Hughes (BKR) selected by Argent LNG as technology provider
  • Baxter (BAX) CEO to retire; appoints interim CEO; names new COO; completes Kidney Care Sale; provides outlook update
  • Becton Dickinson (BDX): Starboard Value takes stake in BDX and wants the company to sell life sciences unit, according to Financial Times
  • Bitfarms (BITF) Provides January 2025 Production and Operations Update
  • Boeing (BA) discloses update to various programs in 10K filing
  • Cadeler A/S (CDLR) has signed two contracts with undisclosed clients for the utilisation of its newbuild wind installation vessel, Wind Mover
  • Cloudflare (NET) launches one-click content credentials to track image authenticity and preserve creator attribution
  • Costco (COST): Teamsters says "Costco Teamsters National Negotiating Committee has reached a tentative agreement for a new contract"
  • Delta Air Lines (DAL) says new experiences with DraftKings (DKNG), YouTube (GOOG, GOOGL), more access coming this year
  • Ecopetrol (EC) and OXY agree to extend their development plan in the Midland area of the Permian Basin
  • Electronic Arts (EA) has reached an agreement to acquire TRACAB Technologies
  • Entrada Therapeutics (TRDA) Receives Authorization in the United Kingdom to Initiate ELEVATE-44-201, a Phase 1/2 Multiple Ascending Dose Clinical Study of ENTR-601-44 in Patients Living with Duchenne Muscular Dystrophy
  • First Business Financial (FBIZ) increases quarterly cash dividend to $0.29/share from $0.25/share
  • Fluor (FLR) joint venture awarded engineering, procurement and construction management services contract for BHP’s Olympic Dam Smelter & Refinery Expansion Project in South Australia
  • Four Seasons Education (FEDU) receives non-compliance letter from NYSE regarding holders requirements
  • Fulton Fincl (FULT) COO Karthik Sridharan to depart, effective today
  • FutureFuel (FF) announces certain matters with respect to its biodiesel production
  • Genelux (GNLX) names Matthew Pulisic as CFO
  • German American Bancorp (GABC) completes its merger with Heartland BancCorp (HLAN), effective Feb 1, 2025
  • Gevo (GEVO) has acquired the ethanol production plant and carbon capture and sequestration assets of Red Trail Energy for an aggregate purchase price of $210 mln
  • GH Research PLC (GHRS) announces primary endpoint met in Phase 2b Trial with GH001 in TRD demonstrating -15.5 point placebo-adjusted MADRS reduction
  • Halozyme Therapeutics (HALO) receives Positive Opinion for subcutaneous RYBREVANT co-formulated with ENHANZE from CHMP
  • Hawkins (HWKN) has completed the acquisition of the assets of Amerochem Corporation
  • Honda's (HMC) motorcycle business could be undermined by Nissan (NSANY) deal, according to Bloomberg
  • Interactive Brokers (IBKR) Reports Brokerage Metrics and Other Financial Information for January 2025; 3.473 million Daily Average Revenue Trades (DARTs), 58% higher than prior year and 6% higher than prior month
  • International Banc (IBOC) increases quarterly cash dividend 6% to $0.70/share from $0.66/share
  • JPMorgan (JPM): US concerned about $2 bln in Russian money in JP Morgan's bank, according to the Wall Street Journal
  • KBR (KBR): LinQuest awarded U.S. Air Force contract with a ceiling of $970 mln
  • Li Auto (LI) reports Jan deliveries
  • Lockheed Martin (LMT) awarded $383 mln U.S. Navy contract modification
  • Lockheed Martin (LMT) announces the delivery of the first F-16 Block 70 jet to Bulgaria, marking a major step forward in the country's efforts to modernize its air force
  • MARA (MARA) announces bitcoin production and mining operation updates for January 2025
  • McEwen Mining (MUX): Grey Fox Gold Resources hit a significant milestone
  • Meta Platforms (META) looking to ad agencies in crafting AI advertising tools, according to The Information
  • Meta Platforms (META) confirms it is expanding GenAI transparency for Meta’s ads product
  • Meta (META) will invest $100 bln in virtual and augmented reality, according to Financial Times
  • Microsoft (MSFT) Governor Murphy and Princeton University President Eisgruber Announce Microsoft and CoreWeave as Founding Partners in NJ AI Hub
  • MicroVision (MVIS)  entered into a letter agreement with investor for Partial Redemption Payments
  • MSG Networks (MSGS) in discussions to reach a deal to avoid bankruptcy, according to the New York Post
  • Natera (NTRA) receives national commercial coverage for its Fetal RhD NIPT
  • nCino (NCNO) announces the appointment of Sean Desmond as President and Chief Executive Officer and as a member of the company’s Board of Directors, effective immediately
  • NCR Voyix Corporation (VYX): The Defense Commissary Agency has selected NCR Government Systems LLC, a subsidiary of NCR Voyix Corporation (VYX), as the maintenance and operations services provider for their point-of-sale technology assets
  • New Gold's (NGD) COO Yohann Bouchard to depart effective January 31, 2025
  • NIO (NIO) reports January deliveries increased 37.9% yr/yr
  • Nova Minerals (NVA) Identifies RPM Style Gold in Regional Sampling Up to 52.3 g/t Au on its Estelle Gold and Critical Minerals Project, in Alaska
  • Novonix Limited (NVX): US Graphite Producers Win Preliminary ITC Trade Case Ruling
  • NVIDIA (NVDA): President Trump discussed artificial intelligence policy with Nvidia CEO Jensen Huang, according to Financial Times
  • Nvidia (NVDA) believes Chinese customers are a driver of revenue, according to the Wall Street Journal
  • Paramount Global (PARA) and Nielsen sign a new, multi-year deal, effective immediately; includes measurement for all Paramount platforms: national and local broadcast, all cable networks, and streaming on Paramount+ and Pluto TV
  • Perion Network (PERI) announces transformational ‘Perion one’ strategy, unifying all of its technologies and brands
  • Pfizer (PFE) BRAFTOVI combination regimen significantly improved progression-free survival and overall survival in phase 3 breakwater trial
  • Samsung (SSNLF) Chairman Jay Lee found not guilty of accounting fraud, according to Reuters
  • Sandvik AB (SDVKY)  acquires ShopWare, MCAM Northwest and the CAD/CAM solutions business line of OptiPro Systems, three US-based resellers of Computer Aided Manufacturing solutions in the Mastercam network; financial terms were not disclosed
  • Sanofi (SNY) buys back 2% of its shares from L’Oréal
  • SecureWorks (SCWX) and Sophos announce the completion of Sophos’ acquisition of Secureworks
  • Shell plc (SHEL): New Jersey will not move ahead with offshore wind solicitation after SHEL decides not to participate in project, according to Bloomberg
  • Shenandoah Telecom (SHEN): Glo Fiber expands Fiber Network in Lancaster, Ohio
  • Softbank (SFTBY) & OpenAI partner to develop and market advanced enterprise AI
  • SS&C Techs (SSNC) acquires FPS Trust, a non-depository trust company, from IPX Retirement; financial terms were not disclosed
  • Stellantis (STLA) simplifies its organization
  • Stratasys (SSYS) Announces $120 Million Equity Investment from Fortissimo Capital
  • Surmodics (SRDX) Announces Successful Early Clinical Use of Pounce XL Thrombectomy System, Suitable for Non-Surgical Removal of Thrombi and Emboli from Iliac and Femoral Arteries
  • T. Rowe Price (TROW), T. Rowe Price's alternative credit subsidiary Oak Hill Advisors and life insurance and Aspida Holdings Ltd. announced they are forming a strategic partnership to support the growth of their respective businesses
  • Talos Energy (TALO) announced that it has appointed Paul Goodfellow as President, Chief Executive Officer and a member of the Talos Board of Directors, effective March 1, 2025
  • Tesla (TSLA) registrations fell 63% in France last month, according to Bloomberg
  • Tesla (TSLA) California sales decline in 2024, according to Bloomberg
  • Tesla (TSLA) to deliver battery supplies to ORIX (IX) in Japan, according to Nikkei
  • The Cigna Group (CI) launches actions to drive positive change for customers and patients
  • United Therapeutics (UTHR) receives FDA clearance for it IND for the UKidney Xenotransplantation Clinical Trial
  • U.S. Steel (X): Tariffs will allow steel producers to increase prices, according to the Wall Street Journal
  • U.S. Steel (X) and Nippon Steel Corp jointly filed their opening brief in their action against former President Biden and his political appointees at the Committee on Foreign Investment in the United States to invalidate their unlawful actions in connection with the block of the $14.9 billion merger agreed between the Companies
  • Vaalco Energy (EGY) reports significant milestone in its Côte D’Ivoire FPSO Dry Dock Refurbishment Project
  • Vanda Pharma (VNDA) and Anaptys (ANAB) form exclusive global license agreement for Vanda to develop and commercialize Imsidolimab
  • Verisk Analytics (VRSK): Hover announces an expanded collaboration with Verisk and its industry-leading Xactimate platform for property claims management
  • Volkswagen (VWAGY) files lawsuit against India over $1.4 bln tax demand, according to Reuters
  • Woori Financial (WF) disclosed indictment of former executives for embezzlement
  • XPeng (XPEV) reports January deliveries increased 268% yr/yr
  • ZEEKR Intelligent Technology Holding Limited (ZK) reports January deliveries of 11,942 vehicles

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

• Upgrades:
  • Caterpillar (CAT) upgraded to Neutral from Sell at UBS; tgt raised to $385
  • Dexcom (DXCM) upgraded to Buy from Neutral at Redburn Atlantic; tgt raised to $115
  • SJW (SJW) upgraded to Buy from Neutral at BofA Securities; tgt lowered to $55
  • SS&C Techs (SSNC) upgraded to Buy from Hold at Jefferies; tgt raised to $94
  • Zillow (ZG) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $100
• Downgrades:
  • Alterity Therapeutics (ATHE) downgraded to Hold from Speculative Buy at The Benchmark Company
  • American States Water (AWR) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $71
  • Brighthouse Financial (BHF) downgraded to Hold from Buy at Jefferies; tgt $64
  • BRP Inc. (DOOO) downgraded to Neutral from Buy at Citigroup
  • Canadian Nat'l Rail (CNI) downgraded to Sell from Hold at Loop Capital
  • Canadian Pacific Kansas City Ltd. (CP) downgraded to Sell from Buy at Loop Capital
  • Comcast (CMCSA) downgraded to Sector Perform from Sector Outperform at Scotiabank; tgt $44.50
  • Constellation Brands (STZ) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $200
  • CSX (CSX) downgraded to Hold from Buy at Loop Capital; tgt lowered to $34
  • Cullen/Frost (CFR) downgraded to Neutral from Buy at DA Davidson; tgt raised to $143
  • FedEx (FDX) downgraded to Hold from Buy at Loop Capital; tgt lowered to $283
  • GXO Logistics (GXO) downgraded to Hold from Buy at Loop Capital; tgt lowered to $49
  • Hologic (HOLX) downgraded to Hold from Buy at Needham; price tgt of $90 removed.
  • Lifetime Brands (LCUT) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $6.75
  • MGM Resorts (MGM) downgraded to Neutral from Buy at BTIG Research
  • Norfolk Southern (NSC) downgraded to Hold from Buy at Loop Capital; tgt lowered to $256
  • PVH (PVH) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $105
  • Sapiens Int'l (SPNS) downgraded to Hold from Buy at Jefferies; tgt lowered to $28
  • Union Pacific (UNP) downgraded to Sell from Hold at Loop Capital; tgt lowered to $200
• Others:
  • CRISPR Therapeutics (CRSP) initiated with a Buy at H.C. Wainwright; tgt $65
  • Quanta Services (PWR) initiated with an Outperform at BMO Capital Markets; tgt $338
  • Talen Energy (TLN) initiated with a Buy at BofA Securities; tgt $253
  • zSpace (ZSPC) initiated with a Buy at Roth MKM

• Econ Data (Tuesday):
  • 10:00 ET: December job openings (prior 8.098 mln) and December Factory Orders (Briefing.com consensus -0.3%; prior -0.4%)
• Earnings:
  • Monday (Feb 3)
    • Pre-Market: IDXX NSSC SAIA TWST TSN
    • After-Hours: ACM BRBR CBT CSWC CLX EQR EG FN DOC JJSF KFRC KD MTG NJR NXPI PLTR RMBS TEM SNCY WWD
  • Tuesday (Feb 4)
    • Pre-Market: AMCR AME APO ARMK ADM ATI ATKR BALL BERY CNC CNH CMI ENR EPD EL FOXA IT GPK HLNE HUBB INGR INMD J KKR LANC MPC MRK MPLX MSGS OCSL PYPL PNR PEP PFE PJT PINC REGN SLAB SPOT TDG UBS WEC WTW XYL
    • After-Hours: EGHT ATEN AMD ALGT GOOG DOX AFG AMGN APAM AZPN ATO AZEK CSL CMG CRUS COLM DEI DXC EA ENVA ENPH ESS FICO FMC GBDC HRB THG ICHR IEX INTA JKHY JNPR KLIC LUMN MTCH MAT MRCY MOD MDLZ MWA NOV OI OMC OSCR PRU SPG SKY SNAP UNM VRNS VLTO VOYA WU ZWS
  • Wednesday (Feb 5)
    • Pre-Market: ARCC ARES AZTA TECH BSX BG CPRI CDW COR CRTO DAY EMR EVR FSV FI GSK GFF HOG ITW JCI KMT NYT ODFL PFGC REYN RXO SR SARO SWK TROW TKR UBER VSH DIS YUM
      
    • After-Hours: AFL ALGN ALL AOSL ARM ASGN AVB BKH BV CENT CTSH COHR CNMD CPAY CTVA CCK CSGS DLX DHT DGII APPS ENS NVST EQH FR F FORM GL HI HP HOLX HMN PI KMPR RAMP MCK MET MSTR MAA MC MOH MUSA MKL NTGR NWSA ORLY OHI PYCR PTC PTEN QGEN RDN RYN RRX REXR SAFE SIMO SITM SWKS STE STC SU SYM TENB TTMI UDR UGI VKTX WEX WFRD
  • Thursday (Feb 6)
    • Pre-Market: WMS AGCO APD AB APTV MT ARW AZN BCE BDX BDC BWA BMY GOOS CLFD CMS COP DAR LLY EMBC ENTG EFX GTES HAE HSY HLT HON HII NSIT IDCC IQV ITT K KVUE LH LADR LNC LIN MTSI MKTX MCFT MMS MDU NVT OMCL OTEX PATK BTU PTON PM PBH RL RITM RBLX SNA SPB TPR THR TRI TW UAA VVV WMG XEL XPO YUMC ZBH
    • After-Hours: AFRM AMZN ATR BILL BYD CPT NET CNO CDP CUZ DOCS ELF EGP EHC ESE EXPE EXPO FTNT FBIN G GPRO HUBG ILMN LESL LITE MTD MCHP MTX MHK MPWR NBIX NMIH ONTO PCTY PECO PINS POST POWL POWI PFG PRO QLYS QNST REG RGA SKX SONO SSNC STEP SYNA TTWO VREX VRSN VSAT VCTR WERN
  • Friday (Feb 7)
    • Pre-Market: AVTR CBOE ROAD FLO FTV ULCC GPRE KIM NWL PWP PAA PRLB
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike