After Hours Report

The major equity indices closed higher for a third consecutive session. This price action pushed the S&P 500 further above its 200-day moving average (5,754). The moves were modest, however, and mostly driven by gains in the mega cap space.

There was an overall negative bias under the index surface as participants continue to weigh worries about US trade policy and economic growth. The latter was piqued by this morning's economic releases. 

The Consumer Confidence Index showed a fourth consecutive decline, and the Expectations Index fell to its lowest level (65.2) in 12 years, with worries about future employment prospects and inflation pacing that downturn. Separately, new home sales increased a modest 1.8% month-over-month in February, yet higher-priced homes made up a smaller percentage of sales than the prior month.

In housing market-related news, KB Home's (KBH 58.57, -3.22, -5.2%) disappointing earnings and guidance contributed to the downside bias today. Shares hit a 52-week low after the homebuilder reported below-consensus Q1 earnings and lowered its FY25 housing revenue outlook, piling onto concerns of an intensifying housing market slowdown. This comes less than one week after competitor Lennar (LEN 117.74, +0.18, +0.2%) issued soft 2Q25 EPS and deliveries guidance.

Treasuries settled higher in another manifestation of growth concerns. The 10-yr yield dropped two basis points to 4.31%, and the 2-yr yield dropped three basis points to 4.00%. On a related note, today's $69 billion 2-yr note sale met strong demand. 

• Dow Jones Industrial Average: +0.1% YTD
• S&P 500: -1.8% YTD
• S&P Midcap 400: -3.6% YTD
• Nasdaq Composite: -5.4% YTD
• Russell 2000: -6.0% YTD

Reviewing today's economic data:

• January FHFA Housing Price Index 0.2%; Prior was revised to 0.5% from 0.4%
• January S&P Case-Shiller Home Price Index 4.7% (Briefing.com consensus 4.6%); Prior 4.5%
• March Consumer Confidence 92.9 (Briefing.com consensus 94.2); Prior was revised to 100.1 from 98.3
  • The key takeaway from the report is that the drop in confidence was guided primarily by the decline in consumers' outlook, which was driven by worries about inflation and future employment prospects, the latter of which hit a 12-year low. This can be a combination for a pullback in discretionary spending.
• February New Home Sales 676K (Briefing.com consensus 680K); Prior was revised to 664K from 675K
  • The key takeaway from the report is that new home sales in February were aided by the drop in mortgage rates, yet affordability constraints remained a headwind as sales of higher-priced homes accounted for a smaller percentage of new home sales in February than the prior month.

Wednesday's economic lineup features: 

• 7:00 ET: Weekly MBA Mortgage Index (prior -6.2%)
• 8:30 ET: February Durable Orders (Briefing.com consensus -1.2%; prior 3.1%) and Durable Orders ex-transport (Briefing.com consensus 0.1%; prior 0.0%)
• 10:30 ET: Weekly crude oil inventories (prior +1.75 mln)

Overseas:

• Europe: DAX +1.1%, FTSE +0.3%, CAC +1.1%
• Asia: Nikkei +0.5%, Hang Seng -2.4%, Shanghai 0.0%

Commodities:

• Crude Oil -0.16 @ 68.99
• Nat Gas -0.03 @ 3.87
• Gold +10.80 @ 3026.40
• Silver +0.68 @ 33.15
• Copper +0.13 @ 5.21

After-Hours Spotlight:

• GameStop (GME) beats by $0.22 (two estimates), misses on revs; Also announces that its board has approved policy to add Bitcoin as a treasury reserve asset... GME up 4.9%
• Paysign, Inc. (PAYS) Reports Fourth Quarter and Full-Year 2024 Financial Results... PAYS up 3.7%
• Worthington Enterprises (WOR) beats by $0.21, beats on revs... WOR up 2.2%

Fair Value for Wednesday, March 26:

•  S&P 500: 5,828
• Nasdaq 100: 20,492
• DJIA: 42,920

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

• Earnings/Guidance (Full Earnings Calendar):
  • Atour Lifestyle Holdings Limited (ATAT) reports fourth quarter and full year 2024 unaudited financial results
  • Canadian Solar (CSIQ) reports Q4 (Dec) results, beats on revs; guides Q1 revs below consensus; guides FY25 revs in-line
  • Core & Main (CNM) misses by $0.04, beats on revs; guides FY25 revs in-line; names new CEO and CFO; current CEO Steve LeClair will transition to the role of executive chair
  • Cormedix (CRMD) beats by $0.09, beats on revs
  • Enerpac Tool Group (EPAC) Reports Second Quarter Fiscal 2025 Results
  • Int'l Paper (IP) at investor day sees FY25 revs slightly below consensus; provides FY27 guidance
  • KB Home (KBH) misses by $0.08, misses on revs, deliveries decreased 9%; Lowers FY25 housing revenue and housing gross profit margin guidance; expects second quarter housing revenues to range from $1.45-1.55 bln; anticipates its 2025 Q2 homebuilding operating income margin will be approximately 8.5%
  • McCormick (MKC) misses by $0.04, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance
  • NorthWestern (NWE) released presentation; affirms long-term growth rates from 2024 base; 2025 guidance expected following Montana rate review
  • Oklo Inc. (OKLO) reports Q4 (Dec) results
  • Pony AI (PONY) reports FY24 results; beats on revs
  • Rumble (RUM) misses by $1.03, beats on revs; guides Q1 revs below consensus
  • Smithfield Foods (SFD) reports Q4 results
• General News
  • President Trump considering two step tariff initiation approach, according to Financial Times
  • Treasury Secretary Scott Bessent will meet with GOP leaders on tax bill today, according to Politico
  • White House National Security Adviser Mike Waltz might need to be fired after he accidentally included a reporter in a group chat discussing war plans, according to Politico
  • US and Russia expected to issue joint statements today regarding new Black Sea maritime ceasefire deal, according to CBS News
  • White House releases outcomes of the United States and Russia expert groups on the Black Sea
  • President Zelenskyy says partial ceasefire taking effect, according to Bloomberg
  • President Trump told Senate that he wants debt celling increase included in tax reform legislation, according to Politico
  • Moody's says US fiscal deficit and debt affordability will likely worsen, even in a positive scenario
  • Aeva (AEVA) selected by Sensys Gatso Australia as its exclusive LiDAR supplier for secondary speed detection in its new mobile speed detection products
  • Affirm (AFRM) is deepening its multi-year agreement with J.P. Morgan Payments
  • Alcon (ALC) receives CE Mark Approval and commercialization of Clareon Vivity IOL in Europe
  • Alibaba (BABA) plans to restart hiring, according to Reuters
  • Alphabet's (GOOG) Waymo will be ready for riders in the nation’s capital on the Waymo One app in 2026
  • Alphabet's (GOOG) Google introduced Gemini 2.5 - its most intelligent AI model
  • Alumis (ALMS) and Kaken Pharmaceutical announce licensing agreement and collaboration for ESK-001 in dermatology in Japan
  • Amazon (AMZN): New capability of Amazon Q in QuickSight makes every employee their own data analyst
  • Anglo American (NGLOY) holding discussions with banks regarding De Beers IPO, according to Bloomberg
  • Apple (AAPL): EU aiming to close investigation into browser options at AAPL, according to Reuters
  • AstraZeneca (AZN) presents new study results reinforcing Tagrisso as the backbone therapy for EGFR-mutated lung cancer
  • Asure Software (ASUR) strengthens innovation leadership through strategic AI partnership with AWS
  • Axsome Therapeutics (AXSM) announces FOCUS phase 3 trial of solriamfetol in adults with attention deficit hyperactivity disorder achieves primary endpoint
  • BASF AG (BASFY) sells share in Nordlicht wind farms back to Vattenfall and secures access to long-term supply of renewable electricity
  • Bayer AG (BAYRY) presents new investigational heart failure data and continued portfolio research in chronic kidney disease in type 2 diabetes
  • Black Hills Corp (BKH) announces that its electric utility subsidiary in Colorado received approval from the Colorado Public Utilities Commission for new rates
  • Blackrock (BLK) aiming to release European Bitcoin exchange traded product, according to Bloomberg
  • Boeing (BA) looks to withdraw guilty plea agreement reached during final months of the Biden administration, according to the Wall Street Journal
  • Boeing (BA) and Northrop Grumman (NOC) in competition for Navy contract, according to Reuters
  • Cleveland-Cliffs (CLF) to idle Dearborn steel plant, lay off 600 workers amid weak auto demand, according to Bloomberg
  • Core Natural Resources (CNR) provides investor updates in presentation
  • Crown Castle (CCI) terminates Steven Moskowitz as CEO, CFO named as interim CEO; Reaffirms all recently announced financial guidance and capital allocation policies
  • CSX (CSX) has secured new five-year tentative collective bargaining agreement with the Brotherhood of Railroad Signalmen
  • Desktop Metal (DM) announces Delaware Court of Chancery Orders Nano Dimension (NNDM) to complete Desktop Metal merger
  • Dropbox (DBX) faces pressure from Half Moon Capital to end co-founder's control of the company, according to the Wall Street Journal
  • Everest Group (EG) announces that Joseph Taranto, current Board Chair, will retire from that role when his term expires in May
  • Faraday Future Intelligent Electric (FFAI) secures $41.0 mln in new cash financing commitments
  • GlaxoSmithKline (GSK): FDA grants approval for GSK's NDA for blujepa (gepotidacin)
  • GlaxoSmithKline (GSK) confirmed FDA approval of Blujepa (gepotidacin) for the treatment of female adults (=40 kg) and paediatric patients with uncomplicated UTIs
  • GlaxoSmithKline (GSK) UK Dementia Research Institute and Health Data Research UK to collaborate on first-of-its-kind dementia research initiative
  • Guidewire (GWRE) showcases AI-driven vision for the future of insurance at Paris Forum
  • Honeywell (HON) announces that spin-off of Advanced Materials business into independent company will be called "Solstice Advanced Materials"; Names key leadership roles for Solstice
  • Jayud Global Logistics (JYD) provides updates on its Tax Matter Notices; Company emphasizes that this matter is not expected to have any material impact on the Company’s ordinary business operations
  • KB Home (KBH) appoints Robert Dillard as CFO, effective March 31
  • Keysight (KEYS) has announced two new oscilloscopes for 1.6T optical transceiver testing: a single optical channel DCA-M and dual optical channel DCA-M Sampling Oscilloscopes
  • Kroger (KR) files legal response, brings counterclaims against Albertsons (ACI)
  • Lockheed Martin (LMT): USS Pinckney successfully completed Flight Test Other 40 (FTX-40) - demonstrating the system's capability to counter hypersonic threats
  • Lovesac (LOVE): Anson Funds affirms 6.0% active stake (932K shares, up from 919K); entered into notional principal amount derivative agreements
  • Lumen Technologies (LUMN) in discussions to sell consumer fiber unit to AT&T (T), according to Bloomberg
  • Lyft (LYFT) follow-up to shareholder Engine Capital turning active after boosting stake to about $50 mln
  • Marriott (MAR) signs an agreement with Mullen Real Estate Capital to bring the JW Marriott brand to the shores of Costa Elena, an exclusive resort-residential community located in Guanacaste, Costa Rica
  • Marti Technologies (MRT) announces amendment to extend its share repurchase program
  • Merck (MRK) enters exclusive license agreement for HRS-5346, an investigational oral lipoprotein inhibitor, for cardiovascular disease from Jiangsu Hengrui Pharmaceuticals Co., Ltd.
  • Merit Medical (MMSI) announces that the six-month results from the randomized arm of the WRAPSODY Arteriovenous Access Efficacy trial are scheduled for publication in the April issue of Kidney International
  • Meta Platforms (META): EU expected to fine Meta $1 bln for allegedly violating antitrust rules, according to the New York Post
  • Millicom International Cellular (TIGO) completes delisting from Nasdaq Stockholm and SEB informs Millicom of its intent to initiate the sale of shares not withdrawn from Swedish Depositary Receipts program
  • Mobileye Global (MBLY) to collaborate with Valeo (VLEEY) and Volkswagen Group (VWAGY) to enhance driver assistance in future MQB vehicles
  • M-tron Industries (MPTI) provides investor updates in presentation
  • Mural Oncology (MURA) provides update on phase 3 ARTISTRY-7 Trial of Nemvaleukin in combination with KEYTRUDA in patients with platinum-resistant ovarian cancer
  • NetList (NLST) announced that a jury verdict in the Federal District Court for the Central District of California found Samsung (SSNLF) materially breached the joint development and license agreement signed by the parties in November 2015
  • NVIDIA (NVDA): SES AI (SES) is creating a comprehensive molecular dictionary to map the physical and chemical properties of millions of small molecules
  • O-I Glass (OI) plans to install Linde’s proprietary OPTIMELTTM Thermochemical Regenerator technology at O-I’s container glass plant in Holzminden, Germany
  • Oklo Inc. (OKLO) announces two new members to its Board of Directors
  • OrganiGram (OGI) announces results of annual and special meeting, including shareholder approval of name change to Organigram Global
  • Organovo (ONVO) announces the successful close of the sale of its FXR program, including lead asset FXR314, to Eli Lilly and Company (LLY)
  • Parsons (PSN) increases the company’s stock repurchase authorization to $250 million
  • Penguin Solutions (PENG): SMART Modular Technologies announces it is now sampling its redefined Non-Volatile CXL Memory Module to Tier 1 OEMs based on the CXL 2.0 standard
  • Petrobras (PBR) informs that it has identified the presence of hydrocarbons in the Campos Basin pre-salt, in an exploratory well of Norte de Brava block
  • Rackspace Technology (RXT) announces Rackspace AI Business, a versatile, secure and high-performance AI-optimized hybrid cloud platform that targets customers with AI training and inferencing requirements to unlock the full potential of AI
  • RTX's (RTX) Raytheon announced its DeepStrike autonomous mobile launcher vehicle, which does not require a driver, successfully completed a live fire demonstration at the U.S. Army's Project Convergence
  • Samsung (SSNLF): India wants Samsung to pay $601 mln in taxes, according to Reuters
  • Samsung (SSNLF) Co-CEO Jong-hee Han has passed away, according to the Wall Street Journal
  • Sanofi (SNY) announces Tolebrutinib regulatory submission accepted for priority review in the US for patients with multiple sclerosis
  • Scholar Rock (SRRK) receives FDA Priority Review for BLA and EMA accepts MAA for Apitegromab as a treatment for spinal muscular atrophy
  • Shell (SHEL) to present the next steps in the execution of its strategy at its Capital Markets Day
  • Somnigroup International (SGI) determined that it was appropriate to reevaluate its executive team reporting structure
  • Spire Global (SPIR) appoints Alison Engel as its new CFO, effective April 1
  • SS&C Techs (SSNC) announces that Principal Asset Management has extended its transfer agency relationship with SS&C
  • Sun Life (SLF) and DentaQuest announces a three-year agreement to continue supporting TeamSmile as it aims to help more underserved children get oral healthcare and education
  • TechnipFMC (FTI) awarded a large integrated Engineering, Procurement, Construction, and Installation contract by Equinor for the Johan Sverdrup Phase 3 development in the Norwegian North Sea
  • Teleflex (TFX) announces updated clinical study data presented at the European Association of Urology Congress
  • Tesla (TSLA): February European Tesla sales fell 40% yr/yr, according to Financial Times
  • Tesla (TSLA): Cathie Wood predicts Tesla will reach $2600/share, according to Bloomberg
  • Tower Semi (TSEM) and Alcyon Photonics announced their collaboration to accelerate photonics integration
  • Trump Media (DJT) Announces Intention to Partner with Crypto.com to Launch ETFs
  • Under Armour (UAL): National Football League announces Under Armour as an official footwear and glove partner
  • United Airlines (UAL): Teamsters reject United Airlines’ contract proposal
  • United Natural Foods Teamsters (UNFI) ratify first contracts
  • Xerox (XRX) provided potential investors with additional information for its expectations for financing the Lexmark acquisition in connection with offerings
  • Walt Disney (DIS) confirmed final results of voting from its annual meeting
  • Western Alliance Bancorp (WAL) entered into a Purchase Agreement

• Upgrades:
  • Alcon (ALC) upgraded to Buy from Neutral at BofA Securities
  • Capital One (COF) upgraded to Buy from Neutral at BTIG, tgt $208
  • Carvana (CVNA) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $280
  • CrowdStrike (CRWD) upgraded to Buy from Neutral at BTIG, tgt $431
  • Cloudflare (NET) upgraded to Buy from Underperform at BofA Securities, tgt $160
  • Empire State Realty (ESRT) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $10
  • HealthEquity (HQY) upgraded to Strong Buy from Outperform at Raymond James, tgt $115
  • Miniso (MNSO) upgraded to Overweight from Neutral at JPMorgan, tgt $22
  • NXP Semiconductors (NXPI) upgraded to Buy from Neutral at Arete
  • Pentair (PNR) upgraded to Outperform from Neutral at Baird, tgt $114
  • United Rentals (URI) upgraded to Market Perform from Underperform at Bernstein, tgt $666
• Downgrades:
  • Ally Financial (ALLY) downgraded to Sell from Neutral at BTIG, tgt $30
  • Brown & Brown (BRO) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $128
  • Dragonfly Energy (DFLI) downgraded to Neutral from Buy at Alliance Global Partners, tgt $1.50
  • EOG Resources (EOG) downgraded to Neutral from Outperform at Mizuho, tgt $140
  • L'Oreal (LRLCY) downgraded to Hold from Buy at Berenberg
  • Opthea (OPT) double downgraded to Underperform from Buy at Jefferies, tgt $1
  • Opthea (OPT) downgraded to Market Perform from Outperform at Leerink, tgt $1
  • Volvo (VLVLY) downgraded to Underweight from Equal Weight at Barclays
• Others:
  • Arthur J. Gallagher (AJG) initiated with a Neutral at Redburn Atlantic, tgt $352
  • Assembly Biosciences (ASMB) initiated with a Buy at Guggenheim, tgt $31
  • Avalo Therapeutics (AVTX) initiated with a Buy at Jefferies, tgt $23
  • Avalo Therapeutics (AVTX) initiated with a Buy at Stifel, tgt $36
  • Coty (COTY) initiated with a Buy at Berenberg, tgt $7.50
  • Crinetics (CRNX) initiated with a Buy at Stifel, tgt $60
  • CoreWeave (CRWV) initiated with a Neutral at DA Davidson, tgt $47
  • Clearway Energy (CWEN) initiated with a Buy at Deutsche Bank, tgt $38
  • Immunic (IMUX) initiated with an Outperform at William Blair
  • Marsh McLennan (MMC) initiated with a Buy at Redburn Atlantic, tgt $281
  • OneMain (OMF) initiated with In-Line, added to Tactical Underperform list at Evercore ISI
  • Palvella Therapeutics (PVLA) initiated with a Buy at JonesResearch, tgt $45
  • Smithfield Foods (SFD) assumed with an Overweight at Morgan Stanley, tgt $28

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior -6.2%)
  • 8:30 ET: February Durable Orders (Briefing.com consensus -1.2%; prior 3.1%) and Durable Orders ex-transport (Briefing.com consensus 0.1%; prior 0.0%)
  • 10:30 ET: Weekly crude oil inventories (prior +1.75 mln)
• Treasury Auctions:
  • 13:00 ET: $70 bln 5-yr Treasury note auction results
• Earnings:
  • Monday (Mar 24)
    • Pre-Market: None
    • After-Hours: KBH
  • Tuesday (Mar 25)
    • Pre-Market: CSIQ CNM CRMD MKC
    • After-Hours: GME WOR
  • Wednesday (Mar 26)
    • Pre-Market: CHWY CTAS DLTR JKS PAYX TH
      
    • After-Hours: CNXC FUL JEF MLKN WOOF SCS VRNT
  • Thursday (Mar 27)
    • Pre-Market: SNX WGO
    • After-Hours: AIR AGX BRZE LULU OXM
  • Friday (Mar 28)
    • Pre-Market: None
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike