After Hours Report

The stock market had a rough showing. There was an initial push higher after Friday's pleasing finish, but selling interest kicked in shortly after the open. The Nasdaq Composite fell 2.6%, closing below its 200-day moving average (18,368). The S&P 500 and Dow Jones Industrial Average settled 1.8% and 1.5% lower, respectively. 

Losses were relatively muted through most of the session, but selling increased noticeably in the afternoon following President Trump's confirmation that 25% tariffs on Canada and Mexico will begin tomorrow as scheduled. He added that tariffs on China will increase to 20% from 10% tomorrow morning also. 

The initial leg lower this morning was driven in part by ongoing concerns about growth. The February ISM Manufacturing PMI was the latest report to play into these concerns, showing a mix of decelerating activity, rising prices, and weakening employment for the manufacturing sector. The Atlanta Fed reduced its Q1 GDP forecast again to -2.5% from -1.5% in response. 

The price action in Treasuries was a manifestation of growth concerns. The 10-yr yield, at 4.23% this morning, settled five basis points lower than Friday at 4.18%. The 2-yr yield dropped below 4.00%, settling two basis points lower at 3.98%.

A big decline NVIDIA (NVDA 114.06, -10.86, -8.7%) related to news of a potential tightening of export restrictions on chips for China was another limiting factor today. Other mega caps also logged sizable declines, impacting index performance. 

The action in NVDA led the technology sector to close 3.5% lower, along with losses in Microsoft (MSFT 388.49, -8.50, -2.1%) and Apple (AAPL 328.03, -3.81, -1.6%).

Separately, the CBOE Volatility Index spiked to 22.82 today as market participants hedge against further downside risk in the equity market. 

• Dow Jones Industrial Average: +1.5% YTD
• S&P 500: -0.5% YTD
• S&P Midcap 400: -3.1% YTD
• Nasdaq Composite: -5.0%
• Russell 2000: -5.7% YTD

Reviewing today's economic data:

• February S&P Global US Manufacturing PMI - Final 52.7; Prior 51.6
• February ISM Manufacturing Index 50.3% (Briefing.com consensus 50.7%); Prior 50.9%
  • The key takeaway from the report is that there is a bad mix of decelerating activity, rising prices, and weakening employment for the manufacturing sector. It is the kind of mix that will stir talk of stagflation.
• January Construction Spending -0.2% (Briefing.com consensus 0.0%); Prior 0.5%
  • The key takeaway from the report is that the weakness in private residential spending was concentrated in multifamily construction.

Separately, there is no US economic data on tomorrow's calendar. 

Overseas:

• Europe: DAX +2.6%, FTSE +0.7%, CAC +1.1%
• Asia: Nikkei +1.8%, Hang Seng +0.3%, Shanghai -0.1%

Commodities:

• Crude Oil -1.46 @ 68.25
• Nat Gas +0.28 @ 4.12
• Gold +52.10 @ 2901.80
• Silver +0.76 @ 32.38
• 3Copper +0.06 @ 4.60

After-Hours Spotlight:

• Alphatec (ATEC) Announces intention to offer $300 mln proposed convertible senior notes offering... ATEC down 8.8%
• GitLab (GTLB) beats by $0.10, beats on revs; guides Q1 EPS in-line, revs in-line; guides FY26 EPS below consensus, revs in-line, hires new Chief Revenue Officer... GTLB up 3.4%
• Okta (OKTA) beats by $0.04, beats on revs; guides Q1 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus... OKTA up 15.0%

Fair Value for Tuesday, March 4:

• S&P 500: 5,860
• Nasdaq 100: 20,462
• DJIA: 43,257

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

• Earnings/Guidance (Full Earnings Calendar):
  • Avadel Pharmaceuticals (AVDL) misses by $0.02, reports revs in-line; reaffirms FY25 revs guidance
  • Biohaven (BHVN) Reports Recent Business Developments and Fourth Quarter and Full Year 2024 Financial Results
  • California Resources Corp (CRC) misses by $0.08, misses on revs, provides Q1 and FY25 outlook
  • Chemomab Therapeutics (CMMB) announces year end and fourth quarter 2024 financial results and provides a corporate update
  • Edgewise Therapeutics (EWTX) reports fourth quarter and full year 2024 financial results and recent business highlights
  • Fortrea (FTRE) misses by $0.18, reports revs in-line; guides FY25 revs below consensus
  • Microchip (MCHP) updates long term revenue, margin, and operating expense targets on investor call
  • N-able (NABL) beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY25 revs below consensus
  • Nomad Foods (NOMD) beats by €0.05, reports revs in-line; guides FY25 EPS in-line, revs in-line
  • Ocular Therapeutix (OCUL) misses by $0.02, reports revs in-line
  • Sphere Entertainment (SPHR) reports Q2 (Dec) results, beats on revs
  • Spirit Aerosystems (SPR) misses by $2.43, beats on revs; Company and Boeing (BA) entered into definitive agreement on July 1, 2024, in which Boeing will pay $37.25/share for Spirit
  • Sunnova Energy (NOVA) reports Q4 (Dec) results, misses on revs
  • Surgery Partners (SGRY) beats by $0.07, beats on revs; guides FY25 revs in-line
  • Syndax Pharmaceuticals (SNDX) misses by $0.26, misses on revs
  • TG Therapeutics (TGTX) misses by $0.01, beats on revs; guides FY25 revs below consensusE
• General News
  • Europe planning on developing peace plan for Ukraine and presenting it to President Trump, according to the Wall Street Journal
  • President Trump considering ending all ongoing shipments of military aid to Ukraine as peace deal negotiations remain in doubt, according to Washington Post
  • House Speaker Mike Johnson says Republicans want to pass a clean continuing resolution to fund government through September 30. The cuts from the Department of Government efficiency will be included in the FY26 budget which will be negotiated in September, according to Politico
  • Treasury Secretary Scott Bessent in interview says that Canada and Mexico should match US tariffs on imports from China. This could be a path for Canada and Mexico to avoid US tariffs set to go into effect tomorrow, according to Bloomberg
  • Defense Secretary Pete Hegseth warned Mexico the US military is prepared to take unilateral action if Mexico did not deal with drug cartels, according to the Wall Street Journal
  • Canada and Mexico tariffs could be lower than 25% as negotiations continue, according to Financial Times
  • President Trump announces cryptocurrency strategic reserve which will include several cryptocurrencies
  • President Trump will host cryptocurrency summit on Friday, according to Bloomberg
  • Chinese President Xi preparing stimulus plan, according to Bloomberg
  • China could target agricultural products with tariff retaliatory action, according to Global Times
  • Frank McCourt interested in TikTok's US operations, according to Reuters
  • Deepseek "theoretical" profit margin could be more than 5 times its cost, according to Bloomberg
  • Chicago Fed President Austan Goolsbee (voting FOMC member) in interview believes inflation is still on path to 2% target, according to CNBC
  • White House is addressing the threat to national security from imports of timber, lumber
  • White House issues amendment to duties to address the flow of illicit drugs across northern border
  • White House issues amendment to duties to address the situation at southern border
  • EU issues press statement by President von der Leyen on the strategic dialogue on the future of the automotive industry
  • Secretary of State Marco Rubio signed a declaration to use emergency authorities to expedite the delivery of approximately $4 billion in military assistance to Israel
  • EU advancing on 2030 zero-pollution targets but stronger action is needed
  • Treasury Department announces suspension of enforcement of Corporate Transparency Act against U.S. Citizens and domestic reporting companies
  • The Trump administration stopped financing new weapons sales to Ukraine, according to WSJ
  • President Trump at press conference says 25% tariffs on Canada/Mexico will begin tomorrow as scheduled
  • President Trump at press conference says there is "no room left" for Canada and Mexico to avoid tariffs tomorrow morning; also repeats China tariffs will increase to 20% from 10% tomorrow morning
  • President Trump at press conference says he will address potential for Ukraine minerals deal tomorrow during joint address to Congress
  • White House considering plan for future Russian sanctions relief, according to Reuters
  • AbbVie (ABBV) and Gubra agreement to develop an amylin analog for the treatment of obesity
  • Acadia Pharmaceuticals (ACAD) and Saniona announce initial positive results from ACP-711 (formerly SAN711) Phase 1 Study
  • ADT (ADT) announces the pricing of the previously announced secondary public offering of 70,000,000 shares of the Company’s common stock held by certain entities managed by affiliates of Apollo Global Management
  • Alphabet (GOOG): Google Cloud Enhances Vertex AI Search for Healthcare with Multimodal AI
  • Alaska Air (ALK) announces that more than 6,900 flight attendants, who are represented by the Association of Flight Attendants, have ratified a new three-year contract
  • Amazon's (AMZN) new Alexa products could expose artificial intelligence issues at Apple (AAPL), according to Bloomberg
  • Apogee Therapeutics (APGE) announces positive interim phase 1 results from the APG990 healthy volunteer trial, unlocking potential maintenance dosing every three and six months for APG279 (APG777 + APG990)
  • AppLovin (APP) discloses its Board of Directors authorized the modification of the share repurchase program
  • Arbutus Biopharma (ABUS) and Roivant Sciences (ROIV) subsidiary, Genevant Sciences initiate international patent infringement enforcement actions against Moderna (MRNA)
  • Arthur J. Gallagher (AJG) acquires Dyste Williams; financial terms were not disclosed
  • AstraZeneca (AZN) receives EU recommendation for approval for AEGEAN
  • AstraZeneca (AZN) and Amgen (AMGN) report results from the TEZSPIRE Phase III WAYPOINT trial highlight rapid and sustained effect in chronic rhinosinusitis with nasal polyps
  • Biogen's (BIIB) QALSODY receives conditional marketing authorization from Health Canada as the First ALS treatment targeting a genetic cause
  • Biohaven (BHVN) Reports Positive Degrader Data Achieving > 80% Sustained Reductions in Total IgG with Potential First-in-Class BHV-1300
  • Boeing (BA): The Secretary of State has made a determination approving a possible Foreign military sale to the Government of Israel of munitions, guidance kits, and munitions support and related equipment for an estimated cost of $675.7 mln
  • Celsius (CELH) announces the appointment of Eric Hanson as President and Chief Operating Officer, effective March 24, 2025
  • Chatham Lodging (CLDT) increases common dividend 29%
  • Coca-Cola (KO): HHS Secretary Robert F. Kennedy doesn't want food benefits spent on carbonated beverages, according to WSJ
  • Core Scientific (CORZ) announces that Jim Nygaard will succeed Denise Sterling as Executive Vice President and Chief Financial Officer, effective March 17, 2025
  • CSX (CSX) announces that employees represented by The International Association of Machinists & Aerospace Workers have voted to ratify the five-year collective bargaining agreement
  • Daktronics (DAKT) and Alta Fox enter into cooperation agreement
  • Deutsche Bank (DB): Regulators concerned about Deutsche Bank's risk management, according to Financial Times, according to Financial Times
  • Ford Motor (F) reports February sales -8.9% yr/yr to 158,675 units
  • Fresenius Medical (FMS): Fresenius (FSNUY) announces plan to reduce stake in Fresenius Medical Care through equity offering and exchangeable bonds
  • GFL Environmental (GFL) sells ts Environmental Services business to funds managed by affiliates of Apollo (APO) and BC Partnersfor an enterprise value of $8 billion
  • GlaxoSmithKline (GSK) presents ANCHOR results at 2025 AAAAI
  • GlaxoSmithKline (GSK) receives BLA review acceptance for Depemokimab
  • Green Plains (GPRE) CEO Todd Becker to step down
  • Honda (HMC) aiming to produce Civic in Indiana instead of Mexico, according to Reuters
  • Honda Motor US (HMC) unit sales totaled 96,774 units in January, up 3.8% compared to last year, despite winter weather that impacted several markets for multiple days
  • Horace Mann (HMN) increases quarterly cash dividend 3% to $0.35 per/share from $0.34/share
  • IDEAYA Biosciences (IDYA) to collaborate with ATTMOS to accelerate AI/ML-enabled drug discovery for unprecedented first-in-class oncology targets
  • Imperial Oil (IMO) and E3 Lithium finalize freehold mineral land for E3’s Clearwater Project
  • Intel (INTC) showcases Foundational Network Infrastructure with Xeon 6
  • Interactive Brokers Reports Brokerage Metrics (IBKR) and Other Financial Information for February 2025; 3.617 million Daily Average Revenue Trades (DARTs), 480% higher than prior year and 4% higher than prior month
  • JP Morgan (JPM) experiencing internal issues over pay, layoffs, and DEI policies, according to Barron's
  • Key Wealth (KEY) expands strategic relationship with envestnet to drive a unified experience for advisors and wealth clients
  • Kroger (KR) announces resignation of CEO Rodney McMullen; expects full-year identical sales without fuel to be at the high end of its guidance range; sees FY25 EPS slightly above the high end of its guidance range
  • Kyndryl (KD) announces it is partnering with Microsoft (MSFT) to support adoption and deployment of a new AI-powered healthcare assistant
  • Marvell Demonstrates (MRVL) industry's leading 2nm silicon for accelerated infrastructure
  • Microchip (MCHP) disclosed additional restructuring actions to reduce costs and resize its manufacturing operations
  • Microsoft (MSFT) Dragon Copilot provides the healthcare industry's first unified voice AI assistant that enables clinicians to streamline clinical documentation, surface information and automate tasks
  • Montrose Environmental Group (MEG) selected by US air force as one of top environmental firms for $1.5 Billion MATOC Contract
  • Newmont Corporation (NEM) completes the sale of Musselwhite, Eleonore, and CC&V
  • Northwest Natural (NWN) elected Justin B. Palfreyman to the position of President and Chief Executive Officer of Northwest Natural Holdings and Chief Executive Officer of NW Natural, effective April 1, 2025
  • NVIDIA (NVDA): China ordering new Nvidia chips despite restrictions, according to the Wall Street Journal
  • NVIDIA (NVDA) and Broadcom (AVGO) will be running manufacturing tests with Intel (INTC), according to Reuters
  • Personalis (PSNL): New publication from ICR and royal marsden researchers highlights the importance of ultra-sensitive ctDNA testing for early-stage breast cancer recurrence detection
  • Pharvaris N.V. (PHVS) presents long-term clinical data of Deucrictibant for the prevention and treatment of HAE attacks at the 2025 AAAAI/WAO Joint Congress
  • Philips (PHG): FDA says PHG removes and discontinues distribution of tack endovascular system due to user challenges that caused additional procedures to reposition or remove implant
  • Pliant Therapeutics (PLRX) provides update on BEACON-IPF, a Phase 2b/3 trial in patients with idiopathic pulmonary fibrosis
  • Primerica (PRI) files mixed securities shelf offering for an undisclosed amount
  • Protagonist Therapeutics (PTGX) and Takeda (TAK) announce positive topline results from phase 3 verify study of rusfertide in patients with polycythemia vera
  • QIAGEN (QGEN) takes legal action to defend QuantiFERON intellectual property and protect innovations in latent tuberculosis testing
  • Reddit (RDDT): UK Investigations announced into how social media and video sharing platforms use UK children’s personal information
  • Rio Tinto (RIO) resumes shipping at East Intercourse Island facility at Dampier Port
  • Roche Hldg (RHHBY) reports Phase III Study Showing Xolair May Be More Effective With Fewer Side Effects Than Oral Immunotherapy for the Treatment of Food Allergies 
  • Roche Hldg (RHHBY): FDA approves Genentech’s TNKase in acute ischemic stroke in adults
  • Samsung (SSNLF) marks a step forward with AI for everyone by introducing new galaxy A56 5G, Galaxy A36 5G and Galaxy A26 5G
  • Sandvik AB (SDVKY) acquires three US-based CAM resellers and CIMCO's probing technology and post processor business
  • Semler Scientific (SMLR): DOJ investigates SMLR over potential anti-fraud violations in QuantaFlo marketing, according to StatNews
  • SoftBank (SFTBY) CEO Masayoshi Son wants to borrow money for artificial intelligence, according to The Information
  • SolarEdge Technologies (SEDG) announces the appointment of Asaf Alperovitz as Chief Financial Officer, effective immediately
  • Stereotaxis (STXS) announces FDA regulatory submission for MAGiC Sweep catheter; Also announces FDA regulatory submission for first robotically navigated catheter designed to expand usage of Robotic Magnetic Navigation into broader endovascular field
  • Tesla (TSLA): Protests occur outside TSLA stores, according to AP
  • Taiwan Semiconductor Manufacturing (TSM) and President Trump expected to announce $100 bln investment in US this afternoon, according to WSJ
  • Taiwan Semiconductor Manufacturing (TSM): President Trump and TSM execs at White House event confirm that TSM will invest $100 bln in chip manufacturing plants; this will be new capital; the company will build five additional plants in US
  • UFP Industries (UFPI) expands its U.S. manufacturing footprint by opening a new 165,000-square-foot corrugated facility in Jeffersonville, Ind., that will continue to undergo advancement and expansion throughout 2025
  • Wang & Lee Group (WLGS) acquires Solar Limited to accelerate renewable energy innovation in Hong Kong for ~HK$15 million

• Upgrades:
  • ACNB Corporation (ACNB) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $50
  • Anheuser-Busch InBev (BUD) upgraded to Buy from Hold at Deutsche Bank
  • BeiGene (ONC) upgraded to Buy from Neutral at BofA Securities; tgt raised to $320
  • Bowhead Specialty Holdings (BOW) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt $44
  • Charles River (CRL) upgraded to Neutral from Sell at Redburn Atlantic; tgt $188
  • Check Point Software (CHKP) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $260
  • Chipotle Mexican Grill (CMG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $70
  • Diageo plc (DEO) upgraded to Hold from Sell at Deutsche Bank
  • Gray Media (GTN) upgraded to Equal Weight from Underweight at Wells Fargo; tgt $4
  • Kinder Morgan (KMI) upgraded to Overweight from Equal Weight at Barclays; tgt $31
  • KT (Korean Telco) (KT) upgraded to Buy from Neutral at Goldman
  • Melco Resorts & Entertainment (MLCO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt lowered to $6.70
  • Middlesex Water (MSEX) upgraded to Outperform from Neutral at Robert W. Baird; tgt $61
  • Mosaic (MOS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $29
  • Mytheresa (MYTE) upgraded to Buy from Hold at TD Cowen; tgt raised to $14
  • Telefonica Brasil (VIV) upgraded to Overweight from Equal Weight at Barclays; tgt $11.50
  • Thor Industries (THO) upgraded to Buy from Neutral at BofA Securities; tgt raised to $125
  • UWM Holdings (UWMC) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $7.50
• Downgrades:
  • AGCO Corp (AGCO) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $100
  • Braskem SA (BAK) downgraded to Sector Perform from Sector Outperform at Scotiabank
  • CNH Industrial (CNH) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $15
  • Deere (DE) downgraded to Neutral from Outperform at Robert W. Baird; tgt $501
  • Dollar General (DG) downgraded to Hold from Buy at Deutsche Bank; tgt $80
  • Fox Corporation (FOXA) downgraded to Neutral from Buy at Arete
  • FTAI Aviation Ltd. (FTAI) downgraded to Hold from Buy at Stifel; tgt raised to $123
  • Kimbell Royalty Partners (KRP) downgraded to Mkt Perform from Strong Buy at Raymond James
  • Novo Nordisk A/S (NVO) downgraded to Hold from Buy at Stifel
  • Sempra Energy (SRE) downgraded to Hold from Buy at Jefferies; tgt lowered to $77
  • SK Telecom (SKM) downgraded to Neutral from Buy at Goldman
  • Southwest Air (LUV) downgraded to Underweight from Neutral at JP Morgan; tgt $25
  • Tandem Diabetes Care (TNDM) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $22
  • Zai Lab (ZLAB) downgraded to Neutral from Buy at BofA Securities; tgt raised to $36.10
• Others:
  • Amplitude (AMPL) initiated with a Buy at Needham; tgt $16
  • Aurora Innovation (AUR) initiated with an Overweight at Morgan Stanley; tgt $12
  • DoubleVerify (DV) downgraded to Neutral from Buy at Cannonball Research
  • Enphase Energy (ENPH) initiated with a Neutral at Redburn Atlantic
  • First Solar (FSLR) initiated with a Neutral at Redburn Atlantic
  • Immunovant Sciences (IMVT) initiated with a Hold at Jefferies; tgt $20
  • Sandisk (SNDK) initiated with an Overweight at Morgan Stanley; tgt $84
  • TuHURA Biosciences (HURA) initiated with a Buy at H.C. Wainwright; tgt $13

• Econ Data (The Week Ahead):
  • No Data on Tomorrow's Schedule
• Earnings:
  • Monday (Mar 3)
    • Pre-Market: AVDL CRC FTRE NABL NOMD PLUG SPHR NOVA OCUL SGRY TGT
    • After-Hours: ADMA CON GCT GTLB SMR SNDX NATL OKTA RPAY WTI
  • Tuesday (Mar 4)
    • Pre-Market: AZO BBY EVGO GENI OLPX ONON PSFE SE
    • After-Hours: AVAV BOX CHPT CRDO CTOS EOLS FLUT JWN ROST SQM
  • Wednesday (Mar 5)
    • Pre-Market: ANF BF.B DIN FL JD REVG RSKD SMRT SOBO SSYS THO
      
    • After-Hours: DSGX KGS LB MRVL MDB SNBR VEEV VSCO YEXT ZS ZYME
  • Thursday (Mar 6)
    • Pre-Market: CRMT BJ BTSG BURL CPB CNQ CBRL KR GMS M MRX PACK STVN TTC TPB WLY
    • After-Hours: ASUR BBAI AVGO COO COST DOMO LOCO FNKO GAP GWRE HPE MLNK IOT SWBI
  • Friday (Mar 7)
    • Pre-Market: AQN GCO
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike