After Hours Report

The stock market quickly shook off an early-session slide, with broad-based strength and firming rate cut expectations lifting the major averages through the session.

The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.8%) traded in tandem, unlike yesterday's action that saw the tech-heavy Nasdaq Composite distance itself from its counterparts. Today's gains saw the S&P 500 establish a new record closing high of 6,502.08.

Further solidification of a September rate cut saw smaller-cap indices participate in today's rally as well, with the S&P Mid Cap 400 advancing 1.5% and the Russell 2000 advancing 1.3%.

A sizable batch of economic data kept monetary policy at the forefront of the market's attention today.

The ADP Employment Change report showed below-consensus job growth in August (54,000; Briefing.com consensus 69,000) while the ISM Services report for August (52.0%; Briefing.com consensus 50.5%) showed an acceleration in activity, but the Employment Index (46.5) remained in contraction for the third month in a row, all of which combined to reflect some weakness in the labor market.

New York Fed President John Williams (FOMC voting member) stated in a speech today that he anticipates interest rates moving toward more neutral levels, citing a gradual cooling in the labor market. The comments, in conjunction with today's data, combined to bolster rate cut expectations, with the CME FedWatch tool assigning a 97.4% probability to a 25-basis point rate cut at the September FOMC meeting.

The market also benefitted from some buy-the-dip action following yesterday's mega-cap-fueled trade that saw only three S&P 500 sectors finish with gains.

Mega-caps still played a key role among several of the best-performing sectors today, and the Vanguard Mega Cap Growth ETF advanced 0.9%. However, the market-weighted S&P 500 (+0.8%) only modestly outperformed the S&P 500 Equal Weighted Index (+0.7%).

In total, ten S&P 500 sectors finished higher, with only the thinly traded utilities sector (-0.2%) finishing with a loss. 

The consumer discretionary sector (+2.3%) advanced the furthest today, supported by strong leadership in its top component, Amazon (AMZN 235.68, +9.69, +4.29%).

Though not a component of the sector or the S&P 500, American Eagle (AEO 18.79, +5.17, +37.96%) traded sharply higher in response to its robust earnings beat, with the positive sentiment rippling across other names. The SPDR S&P Retail ETF advanced 2.6%

Homebuilders also displayed strength in response to the prospect of a friendlier interest rate environment, with the iShares U.S. Home Construction ETF gaining 3.0% today.

Elsewhere, the communication services sector (+1.1%) widened its week-to-date gain to 4.5% as Meta Platforms (META 748.65, +11.60, +1.57%) and Netflix (NFLX 1257.48, +31.30, +2.55%) traded higher, while Alphabet (GOOG 232.66, +1.56, +0.68%) closed with a more modest gain after yesterday's rally.

While today's gains put the S&P 500 and Nasdaq Composite on the precipice of new record highs, the action came on lighter than average volume, which suggests some caution is tempering conviction behind the advance. 

U.S. Treasuries edged higher on Thursday, adding to their solid gains from yesterday's session. The 2-year note yield settled down two basis points to 3.59% and the 10-year note yield settled down four basis points to 4.18%.

• Nasdaq Composite: +12.4% YTD
• S&P 500: +10.6% YTD
• DJIA: +7.2% YTD
• Russell 2000: +6.7% YTD
• S&P Mid Cap 400: +5.1% YTD

Reviewing today's data:

• August ADP Employment Change 54K (Briefing.com consensus 69K); Prior was revised to 106K from 104K
• July Trade Balance -$78.3 bln (Briefing.com consensus -$64.2 bln); Prior was revised to -$59.1 bln from -$60.2 bln
  • The key takeaway from the report is that the surge in imports reflects an easing of some of the tariff pressures that had been applied by the announcement of higher reciprocal rates. The downside, however, is that the net export component will be a negative component in the calculation of Q3 GDP.
• Q2 Productivity-Rev. 3.3% (Briefing.com consensus 2.4%); Prior 2.4%, Q2 Unit Labor Costs - Rev 1.0% (Briefing.com consensus 1.6%); Prior 1.6%
  • The key takeaway from the report is that it hit a sweet spot of signalling stronger productivity growth and a modest increase in unit labor costs.
• Weekly Initial Claims 237K (Briefing.com consensus 232K); Prior 229K, Weekly Continuing Claims 1.940 mln; Prior was revised to 1.944 mln from 1.954 mln
  • The key takeaway from the report is that there still isn't a strong weakening message being delivered by initial jobless claims, which were up from the prior week but still remain relatively low on a historical basis.
• August S&P Global U.S. Services PMI - Final 54.5; Prior 55.4
• August ISM Services 52.0% (Briefing.com consensus 50.5%); Prior 50.1%
  • The key takeaway from the report is that it is a mixed bag for policymakers, featuring faster growth overall but an ongoing contraction in employment and a continuation of price pressures for services organizations.

Overseas:

• Europe: DAX +0.8%, FTSE +0.4%, CAC -0.3%
• Asia: Nikkei +1.5%, Hang Seng -1.1%, Shanghai -1.3%

Commodities:

• Crude Oil -0.54 @ 63.46
• Nat Gas +0.00 @ 3.07
• Gold -28.20 @ 3607.20
• Silver -0.58 @ 41.43
• Copper -0.07 @ 4.56

After-Hours Spotlight:

• Broadcom (AVGO) beats by $0.03, reports revs in-line, reports AI semi revenue above guidance; guides Q4 revs above consensus...AVGO +2.9%
• Copart (CPRT) beats by $0.05, misses on revs...CPRT +1.1%
• DocuSign (DOCU) beats by $0.07, beats on revs; guides Q3 revs above consensus; guides FY26 revs above consensus...DOCU +7.8%
• Guidewire (GWRE) Software beats by $0.21, beats on revs; guides Q1 revs above consensus; guides FY26 revs above consensus...GWRE +14.1%
• lululemon athletica (LULU) beats by $0.24, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY26 EPS below consensus, revs below consensus...LULU -14.2%
• ServiceTitan (TTAN) beats by $0.15, beats on revs; guides Q3 revs above consensus; guides FY26 revs above consensus...TTAN +8.9%
• Zumiez (ZUMZ) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs in-line; Comp sales of +2.5%...ZUMZ +8.5%

Fair Value for Friday, September 5:

• S&P 500: 6,512
• Nasdaq 100: 23,675
• DJIA: 45,688

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

• Earnings/Guidance (Full Earnings Calendar):
  • 1-800-FLOWERS (FLWS) misses by $0.18, beats on revs
  • American Eagle (AEO) beats by $0.25, beats on revs; Comparable sales of -1%
  • America's Car-Mart (CRMT) reports Q1 results; misses on revs
  • Asana (ASAN) beats by $0.01, beats on revs; guides Q3 EPS in-line, revs in-line; raises FY26 EPS and revenue guidance
  • Buckle (BKE) reports August comparable store net sales +12.2% yr/yr; net sales +13.4% to $119.2 mln
  • C3.ai (AI) misses by $0.16, misses on revs; guides Q2 revs below consensus
  • Caleres (CAL) misses by $0.24, reports revs in-line
  • Ciena (CIEN) beats by $0.14, beats on revs; guides Q4 revs above consensus
  • Couchbase (BASE) beats by $0.05, beats on revs; note: co previously announced it agreed to be acquired
  • Credo Technology Group (CRDO) beats by $0.16, beats on revs; guides Q2 revs above consensus
  • Descartes (DSGX) reports EPS in-line, beats on revs
  • Endava (DAVA) reports Q4 EPS and high end of prior guidance range, revenue decreased 3.9%; Issues Q1 and FY26 guidance
  • Figma (FIG) reports EPS in-line, revs in-line; guides Q3 revs above consensus; guides FY25 revs in-line
  • G-III Apparel (GIII) beats by $0.16, beats on revs; guides FY26 EPS below consensus, revs below consensus
  • GitLab (GTLB) beats by $0.08, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY26 EPS above consensus, reaffirms FY26 revs guidance; CFO to step down
  • Hewlett Packard Enterprise (HPE) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line; guides FY25 EPS above consensus
  • JetBlue Airways (JBLU) provides Q3 update and outlook
  • Old Dominion (ODFL) reports certain less-than-truckload operating metrics for August 2025
  • PagerDuty (PD) beats by $0.10, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides FY26 EPS above consensus, revs in-line; names new CRO
  • Salesforce (CRM) beats by $0.13, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides FY26 EPS above consensus, revs in-line
  • Science Applications (SAIC) beats by $1.39, misses on revs; guides FY26 EPS above consensus, revs below consensus
  • Shoe Carnival (SCVL) beats by $0.12, misses on revs; raises lower end of FY26 EPS guidance, in-line, revs below consensus
  • United Micro (UMC) reports August sales declined 7.2% yr/yr to ~NT$19.16 bln
  • VinFast Auto (VFS) reports Q2 results with outlook
• General News
  • President Trump to take tariff fight to Supreme Court, according to Bloomberg
  • White House to host tech leaders today, according to The Hill
  • FDA vaccine official restricts access to coronavirus shots, according to NYT
  • Airlines will not be required to compensate passengers for disrupted flights, according to reports
  • Trump Cabinet members hold dual "primary residence" mortgages amid administration’s crackdown on opponents, according to ProPublica
  • AC Immune (ACIU) completes strategic review to sharpen pipeline
  • Agios Pharma (AGIO) announces that the U.S. FDA has extended the Prescription Drug User Fee Act goal date for the supplemental New Drug Application of PYRUKYND for the treatment of adult patients with non-transfusion-dependent and transfusion-dependent alpha- or beta-thalassemia by three months to December 7, 2025
  • Alphabet (GOOG): Trump administration to pursue break up of Google, according to FT
  • ALT5 Sigma Corporation (ALTS) announces an update to its $WLFI holdings
  • Amazon (AMZN) to face lawsuit over third-party sales, according to Reuters
  • American Bitcoin Corp (ABTC) expands Bitcoin mining operations
  • Apple (AAPL) said to be developing AI-powered web search tool “World Knowledge Answers,” may use Google’s Gemini for Siri AI, according to Bloomberg
  • Atara Biotherapeutics (ATRA) names Greg Ciongoli as Chair of Board
  • Avadel Pharmaceuticals (AVDL) Strengthens Sleep Medicine Portfolio with Exclusive License of Valiloxybate from XWPharma Ltd
  • Blackstone (BX) and State Street (STT) planning to list European CLO ETF, according to Bloomberg
  • Blink Charging (BLNK) announces its innovative move to integrate cryptocurrency payment options across the Blink Network by the end of 2025
  • Boeing (BA) to hire permanent replacement workers in St. Louis amid ongoing strike, according to Bloomberg
  • C3.ai (AI) announces that Stephen Ehikian has been appointed CEO, effective September 1; Thomas Siebel will continue to serve as Executive Chairman
  • C4 Therapeutics (CCCC) announces that its partner Biogen (BIIB) has had its investigational new drug application for BIIB142 accepted by the U.S. Food and Drug Administration
  • Canopy Growth (CGC): ISS recommends Canopy Growth shareholders vote for all resolutions
  • Capricor Therapeutics (CAPR): FDA issues new Complete Response Letters
  • Cardinal Health (CAH) to open its newest distribution center in Fort Worth, Texas – a facility solely dedicated to the at-Home Solutions business
  • Caterpillar (CAT): U.S. concerned about Norway's divestment from Caterpillar, according to Reuters
  • Cencora (COR) disclosed litigation updates
  • Cerence (CRNC) files patent infringement against Apple (AAPL)
  • Cleveland-Cliffs (CLF) reports the dismissal of lawsuit by Nippon Steel (NPSCY) and U.S. Steel (X)
  • Cosan (CSAN) clarifies news reports; has been actively approached by parties interested in potential investments
  • Deere (DE) pressured by tariffs and struggling farmers, according to NYT
  • DeFi Development Corp. (DFDV) announces the acquisition of 196,141 SOL at an average price of $202.76 per token
  • Dr. Reddy's (RDY) confirms it received order seeking penalty from Joint Commissioner of Customs, Ludhiana, Punjab
  • Edison (EIX) lower in midday trade with Reuters reporting that the co faces another DOJ lawsuit over 2022 wildfires
  • e.l.f. Beauty (ELF): rhode will officially be available to shop at Sephora online and in all stores across the U.S. and Canada starting today, with additional plans to roll out to the U.K. this fall
  • Eli Lilly's (LLY) olomorasib receives U.S. FDA's Breakthrough Therapy designation for the treatment of certain newly diagnosed metastatic KRAS G12C-mutant lung cancers
  • Embraer SA (ERJ): Panama signs contract for the acquisition of the Super Tucano as new platform for the National Air and Naval Service
  • EQT Corp. (EQT) secures 1.5 million tonnes per annum of liquefaction capacity under a 20-year Sale and Purchase Agreement with NextDecade Corporation at Train 5 of the Rio Grande LNG export facility in Texas
  • First Majestic Silver (AG) reports positive exploration results at Los Gatos; finds silver and base metals
  • Fiserv (FI) has acquired CardFree, an all-in-one platform empowering merchants with customized order, pay, and loyalty solutions
  • Fluor (FLR) awarded a three-year Logistics Support Services contract by the United States Army’s Regional Contracting Office, Bavaria, to provide training and operations logistical support to U.S. and coalition forces of the 7th Army Training Command
  • Gilead Sciences (GILD) confirms partnership with PEPFAR to deliver twice-yearly lenacapavir for HIV prevention for up to two million people in primarily low- and lower-middle-income countries
  • Invivyd (IVVD): SPEAR Study Group to Present its Recommended Long COVID Antibody Study Design Featuring Invivyd’s VYD2311 At RECOVER-TLC Workshop September 9-10
  • JPMorgan Chase (JPM) to expand consumer banking presence in Europe, according to Bloomberg
  • Medtronic (MDT) reports study of Medtronic Hugo robotic-assisted surgery system in hernia repair meets safety and effectiveness endpoints
  • Microsoft (MSFT) nearing deal with EU to avoid antitrust fines, according to Bloomberg
  • MindMed (MNMD) announces that JAMA has published full results from the Company’s positive Phase 2b study of MM120 in 198 adults with moderate-to-severe GAD
  • NASDAQ (NDAQ) reports monthly volumes for August
  • Nasdaq (NDAQ) seeking $25 mln fee from Chinese companies looking to list in the U.S., according to CNBC
  • NASDAQ (NDAQ): Juniper Square announces strategic investment from Nasdaq Ventures to accelerate innovation in private markets technology
  • Neonode (NEON) announces anticipated financial proceeds from patent lawsuit settlement
  • NextDecade (NEXT) announces that it has executed a 20-year liquefied natural gas sale and purchase agreement with EQT Corporation (EQT) for offtake from Rio Grande LNG Train 5
  • Novavax (NVAX) statement on publicly available COVID-19 vaccine data
  • nVent Electric (NVT) expands data center solutions manufacturing with new U.S. production facility
  • NVIDIA (NVDA) becomes Lambda’s biggest customer with $1.5 bln in chip rental deals ahead of IPO, according to The Information
  • Palantir Technologies (PLTR) and Lear (LEA) Announce Five-Year Partnership Expansion to Accelerate Automotive Technology Transformation
  • Palantir Technologies (PLTR) and Lumen Technologies (LUMN) Join Forces to Accelerate AI-Driven Telecom Transformation
  • Paramount (PSKY) Skydance and Legndary Entertainment reach 3-year deal, according to reports
  • Parsons (PSN) has been awarded an $81 million Task Order under the Responsive Strategic Sourcing for Services (RS3) contract
  • Personalis (PSNL) announces new data from a landmark Neoadjuvant lung cancer trial showing superiority of ultra-sensitive, tumor-informed MRD Testing
  • Perspective Therapeutics (CATX) announces the appointment of Joel Sendek as the Company’s Chief Financial Officer, effective today
  • Rivian Automotive (RIVN) cutting workforce less than 1.5% in effort to cut costs, according to WSJ
  • Robo.ai (AIIO) entered into a standby equity purchase agreement with YA II PN
  • Roche Hldg (RHHBY) receives CE mark for Contivue
  • Roivant Sciences' (ROIV) Pulmovant announces that Japan’s Ministry of Health, Labour and Welfare has granted orphan drug designation to mosliciguat
  • Sanofi (SNY) reports amlitelimab COAST 1 phase 3 study results
  • Skye Bioscience (SKYE) reports results from two new preclinical diet induced obesity mouse studies evaluating nimacimab, a peripherally-acting CB1-inhibiting monoclonal antibody
  • Snowflake (SNOW) appoints Brian Robins as CFO, effective September 22
  • Synopsys (SNPS) and GlobalFoundries (GFS) to launch an educational 'chip design to tapeout' program for universities worldwide
  • Thomson Reuters (TRI) establishes automatic share purchase plan
  • Uber (UBER): Avride, Uber to launch public robotaxi service in Dallas later this year, according to Avride team
  • Upwork (UPWK) announces an additional $100 million share repurchase program
  • U.S. Bancorp (USB) announced a powerful all-in-one cash flow management platform for small businesses
  • WeRide (WRD) launches 24-hour autonomous Robotaxi Service in Guangzhou's Huangpu District
  • WillScot Mobile Mini (WSC) announces Worthing Jackman, Chairman of the Board, named Executive Chairman of the Board; President and COO Tim Boswell to succeed Brad Soultz as CEO
  • Xperi (XPER), IMAX (IMAX) and Sony Pictures Entertainment deepen collaboration

• Upgrades:
  • Apple (AAPL) upgraded to Neutral from Sell at MoffettNathanson, tgt $225
  • Airbus (EADSY) upgraded to Buy from Neutral at UBS
  • Brinker (EAT) upgraded to Outperform from In Line at Evercore ISI, tgt $210
  • Copart (CPRT) upgraded to Buy from Hold at HSBC, tgt $62
  • Leidos (LDOS) upgraded to Outperform from Sector Perform at RBC Capital, tgt $210
• Downgrades:
  • Duolingo (DUOL) downgraded to Neutral from Buy at DA Davidson, tgt $300
  • Kilroy Realty (KRC) downgraded to Equal Weight from Overweight at Barclays, tgt $43
  • Navient (NAVI) downgraded to Underperform from Neutral at BofA Securities, tgt $12
  • Neonode (NEON) downgraded to Neutral from Buy at Ladenburg, tgt $6
  • Parker-Hannifin (PH) downgraded to Hold from Buy at Deutsche Bank, tgt $809
  • Texas Roadhouse (TXRH) downgraded to In Line from Outperform at Evercore ISI, tgt $190
• Others:
  • 89bio (ETNB) assumed with a Buy at H.C. Wainwright, tgt $32
  • Akero Therapeutics (AKRO) assumed with a Buy at H.C. Wainwright, tgt $72
  • Arcturus Therapeutics (ARCT) assumed with a Buy at H.C. Wainwright, tgt $60
  • AptarGroup (ATR) initiated with an Overweight at KeyBanc, tgt $220
  • Black Diamond Therapeutics (BDTX) initiated with a Buy at Guggenheim, tgt $8
  • C4 Therapeutics (CCCC) initiated with a Buy at Guggenheim, tgt $8
  • Critical Metals (CRML) initiated with a Buy at Clear Street, tgt $12
  • e.l.f. Beauty (ELF) assumed with an Overweight at Piper Sandler, tgt $150
  • Entergy (ETR) initiated with a Buy at Jefferies, tgt $109
  • Ideaya Biosciences (IDYA) initiated with an Outperform at Citizens JMP, tgt $41
  • Ideaya Biosciences (IDYA) initiated with an Overweight at Barclays, tgt $40
  • Janux Therapeutics (JANX) initiated with a Buy at Guggenheim, tgt $72
  • Kura Oncology (KURA) initiated with a Neutral at Guggenheim
  • Lifecore Biomedical (LFCR) initiated with a Sector Weight at KeyBanc
  • Madrigal Pharmaceuticals (MDGL) assumed with a Buy at H.C. Wainwright, tgt $500
  • MasTec (MTZ) initiated with an Outperform at Mizuho, tgt $215
  • MetaVia (MTVA) assumed with a Buy at H.C. Wainwright, tgt $12
  • Middleby (MIDD) initiated with an Outperform at Wolfe Research, tgt $163
  • Nuvalent (NUVL) assumed with a Buy at Guggenheim, tgt $122
  • Oric Pharmaceuticals (ORIC) assumed with a Buy at Guggenheim, tgt $18
  • Primoris (PRIM) initiated with a Neutral at Mizuho, tgt $112
  • Pyxis Oncology (PYXS) initiated with a Buy at Guggenheim, tgt $5
  • Quanta Services (PWR) initiated with a Neutral at Mizuho, tgt $360
  • Relay Therapeutics (RLAY) assumed with a Buy at Guggenheim, tgt $15
  • Sociedad Quimica y Minera (SQM) resumed with an Outperform at Itau BBA, tgt $55
  • Summit Therapeutics (SMMT) initiated with a Buy at Guggenheim, tgt $40
  • Syndax (SNDX) assumed with a Buy at Guggenheim, tgt $34
  • Terns Pharmaceuticals (TERN) assumed with a Neutral at H.C. Wainwright
  • TransMedics (TMDX) initiated with a Hold at Stifel, tgt $115
  • Ulta Beauty (ULTA) assumed with an Overweight at Piper Sandler, tgt $590

• Econ Data (Friday):
  • 8:30 ET: August Nonfarm Payrolls (Briefing.com consensus 78,000; prior 73,000), Nonfarm Private Payrolls (Briefing.com consensus 90,000; prior 83,000), Unemployment Rate (Briefing.com consensus 4.3%; prior 4.2%), Average Hourly Earnings (Briefing.com consensus 0.3%; prior 0.3%), and Average Workweek (Briefing.com consensus 34.3; prior 34.3)

• Earnings:
  • Monday (Sep 1)
    • Pre-Market: None
    • After-Hours: None
      
    Tuesday (Sep 2)
    • Pre-Market: ASIO NIO SIG
    • After-Hours: ZS
      
  • Wednesday (Sep 3)
    • Pre-Market: CPB DLTR M REVG CXM
      
    • After-Hours: AEO ASAN AI CRDO DSGX GTLB HPE PD CRM
      
  • Thursday (Sep 4)
    • Pre-Market: FLWS BRC CAL CIEN DAVA GIII SAIC SCVL TTC WLY
    • After-Hours:  AGX BRZE AVGO CPRT DOCU GWRE LULU PHR IOT TTAN SWBI PATH ZUMZ
  • Friday (Sep 5)
    • Pre-Market: ABM
    • After-Hours: None