After Hours Report

The large-cap indices started Tuesday's session hitting intraday highs, but stocks steadily pulled back throughout the day amid a lack of follow-though buying interest. The S&P 500 (+0.2%) and Nasdaq Composite (+0.1%) still eked out closing records, while the Dow Jones Industrial Average (unch) finished flat. The Russell 2000 rose 0.6%.

The initial boost in the market was attributed to reports indicating that the rate of new coronavirus cases was slowing down and a view that monetary policy will remain favorable given the risks that remain due to the virus. Fed Chair Powell told the House Financial Services Committee today that the Fed is "closely monitoring" the situation. 

The S&P 500 real estate (+1.2%) and energy (+1.0%) sectors advanced at least 1.0%. The communication services (-0.4%), consumer staples (-0.3%), and information technology (-0.3%) sectors underperformed, with the former pressured by Facebook (FB 207.19, -5.87, -2.8%) after it was downgraded to Sell from Hold at Pivotal Research.

The ratio of advancers to decliners in the NYSE was more than 2:1, but today's advance was slim given the missing leadership from the mega-cap technology stocks. On a related note, the FTC said it will be examining small acquisitions made by Apple (AAPL 319.61, -1.94, -0.6%), Microsoft (MSFT 184.44, -4.26, -2.3%), Alphabet (GOOG 1508.79, +0.11, unch), Amazon (AMZN 2150.80, +16.89, +0.8%), and Facebook (FB).

Separately, the merger agreement between Sprint (S 8.52, +3.72, +77.5%) and T-Mobile US (TMUS 94.49, +9.96, +11.8%) was finally approved by a federal court in New York. Shares of Sprint surged more than 75% in response.

In earnings news, Under Armour (UAA 16.59, -3.86, -18.9%) and Goodyear Tire (GT 11.56, -1.63, -12.4%) disappointed investors with results and/or guidance and both mentioned the negative impact caused by the coronavirus. Burlington Stores (BURL 243.45, +14.95, +6.5%) outperformed after raising guidance. 

U.S. Treasuries finished on a lower note and barely moved during Fed Chair Powell's congressional testimony. The 2-yr yield increased four basis points to 1.42%, and the 10-yr yield increased four basis points to 1.42%. The U.S. Dollar Index declined 0.1% to 98.75. WTI crude rose 0.9%, or $0.44, to $50.01/bbl. 

Reviewing Tuesday's economic data:

• The NFIB Small Business Optimism Index for January increased to 104.3 from 102.7 in December.
• The December Job Openings and Labor Turnover Survey showed job openings decline to 6.423 million from a revised 6.787 million in November (from 6.800 million).

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index and the Treasury Budget for January on Wednesday. 

• Nasdaq Composite +7.4% YTD
• S&P 500 +3.9% YTD
• Dow Jones Industrial Average +2.6% YTD
• Russell 2000 +0.5% YTD

Overseas: 

• Europe: DAX +1.0%, FTSE +0.7%, CAC +0.7%
• Asia: Nikkei CLOSED, Hang Seng +1.3%, Shanghai +0.4%

Commodities: 

• Crude Oil +0.44 @ 50.01
• Nat Gas +0.02 @ 1.79
• Gold -9.40 @ 1570.00
• Silver -0.20 @ 17.59
• Copper +0.03 @ 2.58

• Akamai Tech (AKAM) beats by $0.10, beats on revs; Guides for FY20 EPS of $4.80-$4.95 vs. $4.79 Capital IQ Consensus; Revenue of $3.055-$3.105 bln vs. $3.08 bln consensus; Guides for Q1 EPS of $1.13-$1.18 vs. $1.16 Capital IQ Consensus; Revenue of $741-$755 mln vs. $749.6 mln consensus; AKAM up 3.3% after-hours
• Lyft (LYFT) beats by $0.20, beats on revs; guides Q1 revs above consensus; guides FY20 revs in-line; EBITDA above; LYFT down 4.4% after-hours
• Lattice Semi (LSCC) beats by $0.02, reports revs in-line; guides Q1 revs in-line; LSCC up 0.3% after-hours
• Viper Energy Partners (VNOM) misses by $0.09, average production up 20% from Q3; VNOM down 3.2% after-hours
• Varex Imaging (VREX) misses by $0.04, beats on revs; CFO to retire; VREX up 0.3% after-hours
• Exact Sciences (EXAS) beats by $0.90, reports revs in-line; guides FY20 revs in-line; EXAS down 1.2% after-hours
• Computer Programs (CPSI) beats by $0.09, reports revs in-line; guides FY20 revs in-line; CPSI up 4.9% after-hours
• Kornit Digital (KRNT) misses by $0.01, reports revs in-line; KRNT down 4.7% after-hours
• Denny's (DENN) beats by $0.06, beats on revs; guides FY20 revs in-line; DENN down 1.5% after-hours
• Western Union (WU) misses by $0.05, misses on revs; guides FY20 EPS above consensus, revs a bit light; reaffirms its three-year financial targets; WU down 3.3% after-hours
• Diodes (DIOD) beats by $0.03, reports revs in-line; guides Q1 revs in-line; DIOD up 0.8% after-hours
• NCR Corp (NCR) beats by $0.01, beats on revs; guides FY20 EPS below consensus, revs above consensus; NCR down 4.6% after-hours
• Bed Bath & Beyond (BBBY) reports 5.4% decrease in comparable sales during the first two months of Q4; BBBY down 21.5% after-hours
• Healthpeak (PEAK) beats by $0.36, misses on revs; guides FY20 FFO in-line; PEAK up 1.1% after-hours
• Insperity (NSP) beats by $0.02, beats on revs; guides Q1 EPS below consensus; guides FY20 EPS below consensus; NSP down 17.5% after-hours

Today's News Summary:

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

• Earnings/Guidance (Full Earnings Calendar):
  • Allergan (AGN) beats by $0.69, beats on revs
  • Avaya Holdings (AVYA) misses by $1.28, reports revs in-line; guides Q2 revs below consensus; raises FY20 revenue guidance
  • Brookfield Infrastructure (BIP) beats by $0.02, beats on revs
  • CNA Financial (CNA) beats by $0.04
  • Diamond Offshore (DO) beats by $0.19, beats on revs
  • Edgewell Personal Care (EPC) beats by $0.25, beats on revs; lowers FY20 guidance
  • Golub Capital (GBDC) beats by $0.01
  • Invacare (IVC) misses by $0.15, misses on revs
  • Loews Corp (L) reports Q4 EPS in line with single estimate
  • Restaurant Brands Int'l (QSR) beats by $0.02, beats on revs
  • Taiwan Semi (TSM) reports January revenues +32.8% yr/yr to NT 103.7 bln
  • Taubman Centers (TCO) beats by $0.07, beats on revs
• General News:
  • President Trump proposed a $4.80 trln budget for FY21
  • China has pledged to spend $10 bln to fight coronavirus as China death toll tops 800, according to Bloomberg
  • Senator Bernie Sanders (I-VT) is leading the Democratic nomination race in NH with 30% followed by Pete Buttigieg with 23%. Senator Amy Klobuchar (D-MN) is in third place followed by Senator Elizabeth Warren (D-MA) and Joe Biden, according to Bloomberg
  • Iowa Democratic Party awarded Pete Buttigieg the most delegates in Iowa followed by Senator Bernie Sanders, according to NBC News
  • EU mulling carbon tariffs on UK goods, according to the Telegraph
  • Adverum Biotech (ADVM) reports new interim data from cohorts 1 and 2 of OPTIC Phase 1 trial of ADVM-022
  • Aquestive Therapeutics (AQST) announced FDA acceptance of NDA for Libervant (diazepam) Buccal Film for the management of seizure clusters
  • Biohaven Pharmaceutical (BHVN) reports negative topline results from its Phase 3 clinical trial evaluating troriluzole compared to placebo for the treatment of patients with Generalized Anxiety Disorder
  • Collegium Pharmaceutical (COLL) commences $125 mln offering of convertible senior notes due 2026
  • Facebook (FB): US and Facebook will begin $9 bln tax case, according to the Wall Street Journal
  • Eli Lilly (LLY) announces topline results for solanezumab from the dominantly inherited alzheimer network trials unit (dian-tu) study; Study showed that solanezumab did not meet the primary endpoint
  • Foxconn (FXCNY): China stops restart of Foxconn production plant amid coronavirus concerns, according to Nikkei
  • Honeywell (HON) wins contract with $3.517 bln ceiling for Embedded GPS Inertial Navigation System Modernization
  • Kodiak Sciences (KOD) provides additional safety, efficacy and durability update from ongoing Phase 1b study of KSI-301
  • NIO (NIO) delivered 1,598 vehicles in January 2020, 11.5% lower than the same month last year
  • Qualcomm (QCOM): DOJ will side with Qualcomm in case against FTC, according to Financial Times
  • Regeneron Pharma (REGN) reports new data for EYLEA; development program underway with Phase 3 trials planned for 2020
  • Tesla (TSLA): German Economic Minister Peter Altmaier says Tesla could get subsidies for German plant, according to Reuters
  • vTv Therapeutics (VTVT) announced positive results from Part 2 of the Phase 2 Simplici-T1 trial assessing TTP399 as an oral adjunctive therapy to insulin in adults with type 1 diabetes
  • Zai Lab (ZLAB) announces acceptance of NDA by the China National Medical Products Administration for omadacycline for the treatment of community-acquired bacterial pneumonia and acute bacterial skin and skin structure infections

• Upgrades:
  • Asbury Automotive (ABG) upgraded to Buy from Neutral at BofA/Merrill 
  • Boston Beer (SAM) upgraded to Outperform from Neutral at Credit Suisse; target to $525 from $400
  • CrowdStrike (CRWD) upgraded to Buy from Neutral at DA Davidson; target $75
  • FLIR Systems (FLIR) upgraded to Strong Buy from Outperform at Raymond James; target to $75 from $60
  • HSBC Holdings (HSBC) upgraded to Outperform from Neutral at Credit Suisse
  • Jack In The Box (JACK) upgraded to Outperform from Market Perform at Cowen; target to $102 from $91
  • L Brands (LB) upgraded to Neutral from Underperform at Credit Suisse; target $24
  • Regeneron Pharma (REGN) upgraded to Buy from Hold at Argus; target $430
  • Sprouts Farmers Market (SFM) upgraded to Hold from Sell at Vertical Research
• Downgrades:
  • Facebook (FB) downgraded to Sell from Hold at Pivotal Research Group; target to $180 from $215
  • Gulfport Energy (GPOR) downgraded to Neutral from Overweight at Piper Sandler; target to $2 from $5
  • MercadoLibre (MELI) downgraded to Neutral from Buy at Citigroup
  • Rio Tinto (RIO) downgraded to Underperform from Sector Perform at RBC Capital Markets
  • World Wrestling (WWE) downgraded to Neutral from Overweight at JP Morgan; target to $47 from $80
• Others:
  • ConocoPhillips (COP) initiated with an Overweight at CapitalOne; target $70
  • Sanofi (SNY) initiated with a Market Perform at SVB Leerink;

Upcoming Events:

• Econ Data (Wednesday):
  • 7:00 ET: MBA Mortgage Index for the week ending February 8 (Prior 5.0%)
  • 10:30 ET: EIA crude oil inventories form the week ending February 8 (Prior 3.4 mln)
  • 14:00 ET: Treasury Budget for January (Prior $8.70 bln)
• Earnings:
  • Monday (February 10)
    • Pre-Market: AGN AVYA BIP CNA DO EPC GBDC IVC L MCY QSR
    • After-Hours: AMKR BLKB BHF BRX ELY CHGG CMP DVA EEFT RE FRT FLDM IIIV IIVI JCOM KMPR LMNX MELI MESA MIME MOH OMF PSEC RPD RNG STE VRNS VOYA WTS XPO
  • Tuesday (February 11)
    • Pre-Market:  AN CRL CEIX CRTO DBD D EXC GT HAS HLT INGR JLL LCII LPX MMYT MLM MAS MLCO NNN OMC ONDK SEE ST FLOW TGNA UAA USFD VIRT
    • After-Hours: ACCO AKAM ACGL AIZ BXMT CNO CPSI DCP DENN DIOD DEI EXAS PEAK NSP KRNT LSCC LYFT NCR PVG PRI REXR TGH UDR VREX VNOM WU
  • Wednesday (February 12)
    • Pre-Market:  AB ARCC GOLD BG CVE ECOM CIM CME CIGI CVS CYBR GPN NSIT IPG IQV LAD TAP MCO NBL RDWR SHOP TEVA TW TRVG
    • After-Hours:  AKR ATUS AEL ANDE NLY AM AR AMAT ARES ASGN AVLR NTB BRKR CDNS CTL CF CHNG CHEF CSCO COHU CPA CXW EFX EQIX EQC FR FOSL FCPT FTSI HR HUBS IFF KGC LPI MFC MRO MGM NTAP NWE NUS PGRE PEGA PRSP PS QLYS QDEL QUOT RDFN REG SSNC STAG SLF SPWR TCO TTGT TRMB TRIP TCX TYL WCN WELL
  • Thursday (February 13)
    • Pre-Market:  AER AGIO BABA ALKS ALE AIMC AIG BPMC BWA BAM GTLS CBB DAN DLPH DUK EEX DAVA FIS FAF FTS GNRC HE HIMX HII HUN INCY IPGP IRM IRWD KELYA KHC LH LECO MTRN NMRK NICE NVMI PATK PBF PBFX PEP POOL PDS R SSTK SITC SON TRP TPX THS TUFN WM WSO WST WEX WH YETI ZBRA ZTS
    • After-Hours: AEM AYX AMN ARI ANET BIO BKI BL BFAM CARG CC CGNX CXP CRY DDOG DXCM DLR EXPE FNF GDDY HTA LPSN MAT MERC MHK MRC NVDA PDFS RSG ROKU SWAV SPSC SPXC SVMK TLND TEX TNET TRUP RARE VECO WRE AUY YELP
  • Friday (Febraury 14)
    • Pre-Market: AXL ABR AZN CGC ENB ESNT MGP NWL POR PPL SXT TRTN YNDX
    • After-Hours: AL
    • Full Earnings Calendar