After Hours Report

The stock market continued its downtrend today after yesterday's brief reprieve for the S&P 500 (-1.4%) and Nasdaq Composite (-2.0%). The indices gave up yesterday's gains and then some, leading the S&P 500 to close in correction territory (i.e. 10% below its all-time high on February 19). The Nasdaq Composite moved further into correction territory.

There were positive-looking economic reports this morning, but stocks didn't respond in kind. The February Producer Price Index contained some lower-than-expected headline prints and weekly jobless claims remained relatively low. The understanding that US trade policy may negatively impact inflation in the future overshadowed the positive reports.

President Donald Trump announced a potential 200% tariff on European beverage imports, including wines and spirits. This move was in response to the European Union's recent tariffs on American whiskey, intensifying fears of a prolonged trade war that could hinder global economic growth.

The negative disposition in equities was also related to some corporate news. The relatively disappointing in-line guidance from Adobe (ADBE 377.84, -60.76, -13.9%), along with disappointing guidance from SentinelOne (S 18.23, -1.07, -5.5%) and UiPath (PATH 9.97, -1.86, -15.7%) weighed on growth stocks. The Russell 3000 Growth Index declined 2.2%.

Treasuries settled with gains in response to this morning's data. The 10-yr yield settled four basis points lower at 4.27% and the 2-yr yield settled four basis points lower at 3.95%. On a related note, the U.S. Treasury completed this week's mediocre note and bond auction slate with a weak 30-yr bond reopening.

• Dow Jones Industrial Average: -4.1% YTD
• S&P 500: -6.1% YTD
• S&P Midcap 400: -8.4% YTD
• Nasdaq Composite: -10.4%
• Russell 2000: -10.6% YTD

Reviewing today's economic data:

• February PPI 0.0% (Briefing.com consensus 0.3%); Prior was revised to 0.6% from 0.4%, February Core PPI -0.1% (Briefing.com consensus 0.3%); Prior was revised to 0.5% from 0.3%
  • The key takeaway from the report is comparable to the key takeaway from the CPI report: inflation at the wholesale level, while improving, is still too high, and with the tariff battles heating up, there is concern that the disinflation isn't going to persist.
• Weekly Initial Claims 220K (Briefing.com consensus 228K); Prior was revised to 222K from 221K, Weekly Continuing Claims 1.870 mln; Prior 1.897 mln
  • The key takeaway from the report is that initial jobless claims -- a leading indicator -- held steady at relatively low levels that are consistent with an otherwise sound labor market.

Friday's economic data includes:

• 10:00 ET: Preliminary March University of Michigan Consumer Sentiment (Briefing.com consensus 65.6; prior 64.7)

Overseas:

• Europe: DAX -0.6%, FTSE +0.0%, CAC -0.6%
• Asia: Nikkei -0.1%, Hang Seng -0.6%, Shanghai -0.4%

Commodities:

• Crude Oil -1.18 @ 66.55
• Nat Gas +0.02 @ 4.10
• Gold +46.60 @ 2993.10
• Silver +0.58 @ 34.34
• 3Copper +0.04 @ 4.90

After-Hours Spotlight:

• Applied Optoelectronics (AAOI) in 8-K filing: enters into transaction agreement with Amazon (AMZN); issues to AMZN a warrant to purchase up to an aggregate of 7,945,399 shares of common stock... AAOI up 76.2%
• DocuSign (DOCU) beats by $0.01, beats on revs; guides Q1 revs below consensus; guides FY26 revs below consensus... DOCU up 8.0%
• O'Reilly Auto (ORLY) approves a 15-for-1 split of its common stock, to be effected in form of a one-time special stock dividend... ORLY up 1.1%
• PagerDuty (PD) beats by $0.06, beats on revs; guides Q1 EPS in-line, revs below consensus; guides FY26 EPS above consensus, revs below consensus; authorizes $150 mln for repurchases... PD up 12.4%
• Rubrik (RBRK) beats by $0.21, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus... RBRK up 15.3%
• Semtech (SMTC) beats by $0.08, reports revs in-line; guides Q1 EPS in-line, revs in-line... SMTC up 11.1%
• Ulta Beauty (ULTA) beats by $1.33, reports revs in-line; guides FY26 EPS below consensus, revs below consensus... ULTA up 6.0%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Adobe (ADBE) beats by $0.11, reports revs in-line; guides MayQ EPS in-line, revs in-line; reaffirms FY25 EPS guidance, revs guidance
  • Algoma Steel Group (ASTL) Reports Financial Results for the Three and Nine Months Ended December 31, 2024
  • American Eagle (AEO) beats by $0.04, reports revs in-line, comps +3%; guides Q1 revs below consensus as Q1 is off to a slower start than expected; guides FY26 revs below consensus; increases share buyback authorization by 50 mln shares
  • Berry Petroleum (BRY) beats by $0.06, beats on revs
  • Build-A-Bear Workshop (BBW) reports record-breaking fourth quarter results; increases quarterly dividend
  • Calavo Growers (CVGW) beats by $0.04, misses on revs
  • CION Investment Corporation (CION) Reports Fourth Quarter and Year End 2024 Financial Results
  • ContextLogic Inc. (LOGC) Reports Fourth-Quarter and Fiscal Year 2024 Financial Results; Also continues to evaluate potential strategic opportunities
  • Dollar General (DG) reports Q4 (Jan) results, revs in-line; guides FY26 EPS below consensus, revs in-line
  • D-Wave (QBTS) reports fourth quarter and year-end 2024 results
  • Endo (NDOI) and Mallinckrodt to combine; combined company is expected to be listed on the NYSE; to host joint conference call and webcast today at 8:00 a.m. ET; boths cos report earnings
  • Fabrinet (FN) and Amazon.com (AMZN) entered into a Transaction Agreement; sees Q3 EPS of $2.43-2.51, excluding non-recurring items, vs. $2.60 FactSet Consensus
  • FreightCar America, Inc. (RAIL) Reports Fourth Quarter and Full Year 2024 Results
  • Futu Holdings (FUTU) reports strong financial growth for Q4 and Full Year 2024
  • G-III Apparel (GIII) beats by $0.30, beats on revs; guides Q1 EPS in-line, revs below two analyst estimate; guides FY26 EPS in-line, revs below consensus
  • Gorilla Technology Group (GRRR) named exclusive AI & Digital Infrastructure partner for $100 bln Global Edge Fund, raises 2025 revenue guidance to $110 mln in Schwab Networks Interview
  • MeiraGTx (MGTX) Reports Fourth Quarter and Full Year 2024 Financial and Operational Results and Recent Business Updates
  • N-able (NABL) releases Investor Day presentation with target model estimates
  • NextNav Inc. (NN) Reports Fourth Quarter and Full Year 2024 Results
  • Phreesia (PHR) beats by $0.07, reports revs in-line; reaffirms FY26 revs guidance
  • Royal Gold (RGLD) provides 2025 guidance
  • SentinelOne (S) beats by $0.03, beats on revs; guides Q1 revs below consensus; guides FY26 revs below consensus
  • Tourmaline Bio (TRML) Reports Fourth Quarter and Full Year 2024 Financial Results and Recent Business Highlights
  • UiPath (PATH) beats by $0.06, reports revs in-line; guides Q1 revs below consensus; guides FY26 revs below consensus; Also announces acquisition of Peak, financial terms not disclosed
  • Weibo (WB) beats by $0.01, beats on revs; declares dividend
  • Xunlei (XNET) announces unaudited fourth quarter financial results
• General News
  • Senate Minority Leader Schumer indicates continuing resolution passed by House won't have votes to get through Senate
  • EPA confirmed yesterday action to implement POTUS’s termination of Biden-Harris electric vehicle mandate
  • FCC to create national security council, according to Financial Times
  • Convenience store sales down in February, according to the Wall Street Journal
  • Trump family in talks for stake in Binance amid pardon push for convicted founder, according to WSJ
  • U.S. pushes to extend Gaza ceasefire in exchange for hostage releases, humanitarian aid, according to Axios
  • Canada initiates WTO dispute complaint regarding US steel and aluminium duties
  • President Trump stands firm on tariffs, expresses he would like to meet with and get President Putin involved in talks
  • AAR Corp (AIR) announces a multi-year agreement to provide Cebu Pacific Air with nacelle maintenance, repair, and overhaul services for the airline's A320 fleet powered by the CFM56-5B engine
  • ACELYRIN (SLRN) approved the adoption of a limited-duration stockholder rights plan n response to Tang Capital Partners’ continued rapid accumulation of 8.8% of ACELYRIN’S outstanding common stock
  • Aehr Test Systems (AEHR) received initial follow-on production orders totaling approximately $4.7 million from a major storage device supplier
  • Amazon (AMZN): FTC to pursue trial against Amazon, according to CNBC
  • American Water Works' (AWK) Pennsylvania American Water announced its 2024 full-year investment total for system improvements came in at more than $675 million throughout its statewide service areas
  • Armada Hoffler Properties (AHH) decreases quarterly cash dividend to $0.14/share from $0.205/share
  • Audiocodes (AUDC) approved a stock trading plan in accordance with Rule 10b5-1 to repurchase ordinary shares
  • aTyr Pharma (ATYR) Announces Publication Demonstrating Efzofitimod’s Immunomodulatory Activity in Science Translational Medicine
  • Blackstone (BX): Leaders of Blackstone and Goldman Sachs expect positive outcome from Trump policies, according to Financial Times
  • Boston Beer Co (SAM) entered into a 10b5-1 plan on March 13 to repurchase up to $50 million of the Company’s Class A Common Stock during the period commencing March 31, 2025 and ending June 27, 2025
  • BP (BP) aims to sell to strategic partner 50% of its solar unit Lightsource bp, according to Reuters
  • Build-A-Bear Workshop (BBW) increases quarterly cash dividend 10% to $0.22/share from $0.20/share
  • Cango (CANG) announces up to $30 million new share repurchase program
  • Capri Holdings (CPRI): Donatella Versace's role change may pave the way for Prada (PRDSY) to acquire fashion house, according to FT
  • Celanese (CE) announces vinyl acetate monomer and derivatives price increases in the Western Hemisphere
  • Churchill Downs (CHDN) approves a new $500 mln share repurchase program
  • CIBC (CM) CEO/President to retire Oct 31; appoints Harry Culham as COO effective April 1
  • Comcast (CMCSA) and The International Olympic Committee have agreed on a new groundbreaking partnership for the new digital era, taking advantage of the opportunities offered by the rapidly developing media landscape and the unique expertise of the global media and technology company
  • Dine Brands International (DIN) announces 2025 restaurant development plans
  • Dr. Reddy's (RDY) confirms recall of Batch/Lot No: A1540076 of Levetiracetam in 0.75% Sodium Chloride Injection, 1,000 mg/100 mL (10 mg/mL) single-dose infusion bags to the consumer level, in the United States
  • Gorilla Technology Group (GRRR) named exclusive AI & Digital Infrastructure partner for $100 bln Global Edge Fund, raises 2025 revenue guidance to $110 mln in Schwab Networks Interview
  • Huntington Ingalls (HII) announces that its Mission Technologies division was awarded a task order valued at approximately $182 mln to provide logistics support for U.S. Air Force F-16 pilot training devices
  • IBM (IBM) and The Basque Government announce plans to install Europe's first IBM Quantum System Two at the IBM-Euskadi Quantum Computational Center on Ikerbasque Foundation's main campus in San Sebastian, Spain
  • ImmunityBio (IBRX) announces U.S. Urology Partners is one of the first providers to participate in ImmunityBio’s Expanded Access Program for recombinant Bacillus Calmette-Guérin to address the current shortage of TICE BCG in the U.S.
  • Inflection Point Acquisition Corp. II (IPXX) completes SPAC deal with USA Rare Earth; will begin trading under ticker "USAR" tomorrow, March 14
  • Intel (INTC) appoints Lip-Bu Tan as CEO, effective March 18, succeeding interim CEOs David Zinsner and Michelle Johnston Holthaus; Tan will also rejoin the Board of Directors
  • Jacobs Solutions (J) successfully exited its equity stake in Amentum Holdings (AMTM) by exchanging 19,464,174 shares of common stock of Amentum for approximately £240 million aggregate principal amount of JEG term loans
  • JetBlue Airways (JBLU) along with its fuel partners marked the first-ever regular supply of sustainable aviation fuel for commercial air travel in the region at New York’s John F. Kennedy International Airport
  • Korro Bio (KRRO) treatment of alpha-1 antitrypsin deficiency granted orphan designation
  • Lucid Diagnostics (LUCD) announces that Highmark Blue Cross Blue Shield, an independent licensee of the Blue Cross and Blue Shield Association, has issued a positive coverage policy for non-invasive screening of esophageal precancer and cancer in New York state
  • MeiraGTx (MGTX) announces a broad strategic collaboration with Hologen Limited, a world-leading developer of multi-modal generative AI foundation models of real-world clinical data for clinical medicine and pharmaceutical drug development
  • Metropolitan Bank (MCB) announces $50 million stock repurchase program
  • N-able (NABL) approves a share repurchase program for up to $75.0 mln shares of common stock
  • Novartis AG (NVS) and the National Football League announce an unprecedented partnership that names Novartis as the official first-in-category corporate pharmaceutical partner of the NFL
  • NOVONIX (NVX) Receives Approval for Purchase of Enterprise South Land for Planned Enterprise South Manufacturing Facility
  • NVIDIA (NVDA) and Microsoft (MSFT) Open Next Era of Gaming With Groundbreaking Neural Shading Technology
  • Oceaneering Intl (OII) awarded DOD contract
  • Oracle (ORCL) emerges as leading contender in TikTok deal favored by ByteDance and President Trump, according to The Information
  • Palantir Technologies (PLTR) and Databricks announce strategic product partnership to deliver secure and efficient AI to customers
  • PepsiCo (PEP), Conagra and J M Smucker request that Trump exempt ingredients not available from US sources, according to Reuters
  • Polaris (PII) Reaffirms Strategy for Long-Term Growth and Profitability at 2025 Capital Markets Day
  • ProQR Therapeutics (PRQR) filed for offering of up to 3,523,538 ordinary shares by selling shareholder
  • Roblox (RBLX): TD is launching its first-ever financial literacy game on the immersive gaming and creation platform Roblox
  • Rocket Lab USA (RKLB) announces InterMission and MAX Constellation, two next-generation software suites that build on successful missions to the Moon and beyond to deliver advanced autonomy, security, and scalability for complex space missions and constellation operations
  • Salesforce (CRM) CEO bets on 'Year of Agentforce' despite challenges in sales growth and pricing strategy, according to The Information
  • SEALSQ Corp (LAES) announced during the presence of its CEO at TGE CNBC Converge Live event its intend to establish SEALSQ Singapore Ltd, a new entity that will be dedicated to creating a Post-Quantum Semiconductor Personalization Center in Singapore
  • SoFi Technologies (SOFI) finalized an up to $5 bln Loan Platform Business agreement for personal loans with funds managed by Blue Owl Capital, a leading asset manager with over $250 bln in assets under management
  • Spirit Airlines exits chapter 11 significantly deleveraged and with new financing to support return to profitability
  • Stifel Financial (SF) to pay approximately $132 million, inclusive of punitive damages and attorneys’ fees, in connection with allegations regarding investment recommendations
  • Tesla (TSLA) working with Baidu on assisted driving, according to Reuters
  • Tesla (TSLA) warns President Trump's tariffs could hurt U.S. EV production and global competitiveness, according to FT
  • Textron (TXT) announces an additional high-speed internet connectivity solution for the Cessna Citation X and X+ following the Federal Aviation Administration’s issuance of AeroMech’s Supplemental Type Certificate for Starlink high-speed internet connectivity
  • The Cigna Group (CI) announces leadership changes, including appointment of Brian Evanko as President and COO; Also reaffirms FY25 EPS guidance
  • The Trade Desk (TTD) appoints Vivek Kundra as COO, effective March 31
  • Triumph Group (TGI) amended Tax Benefits Preservation Plan
  • UL Solutions Inc. (ULS) files lawsuit against Fly-E Group, Inc. to protect trusted safety mark
  • Universal Music Group N.V. (UMGNF): Pershing Square (Bill Ackman) planning stake sale, according to reports
  • Volkswagen AG (VWAGY)  releases statement on March 13 UAW allegations; will remain at the table, negotiating in good faith with the UAW to reach a competitive agreement
  • Volkswagen AG (VWAGY): UAW files federal labor charges against Volkswagen for violating workers’ rights in Chattanooga
  • XP (XP) released statement regarding short seller allegations
  • Zai Lab (ZLAB) receives acceptance of BLA for TIVDAK in China
  • ZJK Industrial Co., Ltd. (ZJK) addressed recent misstatements on CNBC’s Mad Money during the Lightning Round segment, in which the Mad Money host inaccurately claimed that ZJK had 'flat revenues' over the past three years

• Upgrades:
  • Alkami Technology (ALKT) upgraded to Overweight from Equal-Weight at Stephens; tgt $40
  • CareTrust REIT (CTRE) upgraded to Buy from Hold at Deutsche Bank; tgt $31
  • CervoMed (CRVO) upgraded to Buy from Neutral at Chardan Capital Markets; tgt $14
  • Houlihan Lokey (HLI) upgraded to Overweight from Underweight at Morgan Stanley; tgt lowered to $190
  • Intel (INTC) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $25
  • Invitation Homes (INVH) upgraded to Outperform from Neutral at Mizuho; tgt raised to $36
  • IREN Limited (IREN) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $12
• Downgrades:
  • American Eagle (AEO) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $10
  • Arvinas (ARVN) downgraded to Neutral from Buy at Goldman; tgt lowered to $15
  • Cipher Mining (CIFR) downgraded to Neutral from Overweight at JP Morgan
  • Federal Realty (FRT) downgraded to Hold from Buy at Truist; tgt lowered to $105
• Others:
  • 89bio (ETNB) initiated with a Buy at Citigroup; tgt $25
  • Alkermes Plc (ALKS) initiated with a Sector Perform at RBC Capital Mkts; tgt $40
  • Apogee Therapeutics (APGE) initiated with a Buy at Citigroup; tgt $95
  • ArcBest (ARCB) initiated with a Buy at Truist; tgt $93
  • BioNTech (BNTX) initiated with a Buy at Citigroup; tgt $145
  • CF Industries (CF) initiated with a Neutral at Goldman; tgt $86
  • C.H. Robinson (CHRW) initiated with a Buy at Truist; tgt $115
  • Corteva (CTVA) initiated with a Buy at Goldman; tgt $71
  • Cybin (CYBN) initiated with a Buy at Guggenheim; tgt $35
  • Exact Sciences (EXAS) initiated with a Sector Perform at RBC Capital Mkts; tgt $52
  • Expeditors Intl (EXPD) initiated with a Hold at Truist; tgt $110
  • FedEx (FDX) initiated with a Buy at Truist; tgt $305
  • FMC Corp (FMC) initiated with a Buy at Goldman; tgt $51
  • GH Research PLC (GHRS) initiated with a Buy at Guggenheim; tgt $32
  • GXO Logistics (GXO) initiated with a Hold at Truist; tgt $40
  • J.B. Hunt Transport (JBHT) initiated with a Hold at Truist; tgt $165
  • Kiniksa Pharmaceuticals (KNSA) initiated with a Buy at Citigroup; tgt $40
  • Perspective Therapeutics (CATX) initiated with a Buy at H.C. Wainwright; tgt $10

• Econ Data (Friday):
  • 10:00 ET: Preliminary March University of Michigan Consumer Sentiment (Briefing.com consensus 65.6; prior 64.7)
• Earnings:
  • Monday (Mar 10)
    • Pre-Market: BNTX FNV
    • After-Hours: ASAN HPK LMB AVO ORCL PAY SARO MTN
  • Tuesday (Mar 11)
    • Pre-Market: CIEN DKS FERG FWRG HLLY KSS KFY LEGN UNFI VIK
    • After-Hours: CDRE CASY SFIX WEST
  • Wednesday (Mar 12)
    • Pre-Market: ABM ARCO IBRT MOMO
      
    • After-Hours: ADBE AEO BRY CVGW CCI PHR S CXM PATH
  • Thursday (Mar 13)
    • Pre-Market: DG GII WB
    • After-Hours: BLNK DOCU EVCM PD RBRK SMTC TTAN ULTA WPM XPOF ZUMZ
  • Friday (Mar 14)
    • Pre-Market: BKE GOGO LI
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike