After Hours Report

Updated: 10-Aug-20 17:38 ET
Tencent Music climbs after earnings; Inter Parfums falls

The S&P 500 increased 0.3% on Monday, rising for the seventh straight session on the back of strong gains from the value-oriented and cyclical stocks. The Dow Jones Industrial Average (+1.3%) and Russell 2000 (+1.0%) gained at least 1.0%, while the Nasdaq Composite declined 0.4% amid relative weakness in the mega-caps. 

Apple (AAPL 450.91, +6.46, +1.5%) was one of the few mega-caps that bucked the trend after Wedbush raised its price target on the stock to a Street-high of $515 from $475. Given its nearly $2 trillion valuation, and $450 stock price, its 1.5% gain was a major supporting factor in the large-cap indices. 

The broader trend, though, was heavily in favor of beaten-down cyclical stocks like those within the energy (+3.1%) and industrials (+2.4%) sectors, which rose more than 2.0%. The materials (+1.0%) and consumer discretionary (+0.7%) sectors followed suit, while communication services (-0.5%), information technology (-0.3%), and health care (-0.3%) lagged. 

Individual standouts included FedEx (FDX 199.98, +16.45, +9.0%), which was upgraded to Outperform from Market Perform at Bernstein, and MGM Resorts (MGM 21.65, +2.62, +13.8%) after InterActiveCorp (IAC 131.27, -1.78, -1.3%) acquired a 12% stake in the company.

In other developments, President Trump over the weekend signed executive orders to extend $400/week in enhanced unemployment, provide student loan relief, prevent evictions, and defer payroll taxes; while China said it will sanction 11 Americans, including several senators, for trying to undermine its authority over Hong Kong. 

President Trump's orders will likely be challenged in the courts, but investors remained hopeful that lawmakers will reach a deal relatively soon. House Speaker Pelosi (D-CA) and Treasury Secretary Mnuchin suggested they were open to a narrower deal through the end of the year.

U.S. Treasuries finished near their flat lines. The 2-yr yield remained unchanged at 0.13%, and the 10-yr yield increased one basis point to 0.57%. The U.S. Dollar Index gained 0.2% to 93.58. WTI crude futures gained 1.9%, or $0.78, to $41.95/bbl.

Monday's economic data was limited to the JOLTS- Job Openings report, which showed job openings increase to 5.889 mln in June from a revised 5.371 mln in May (from 5.397 mln). Looking ahead, investors will receive the Producer Price Index for July and the NFIB Small Business Optimism Index for July on Tuesday. 

  • Nasdaq Composite +22.2% YTD
  • S&P 500 +4.0% YTD
  • Dow Jones Industrial Average -2.6% YTD
  • Russell 2000 -5.0% YTD

Overseas: 

  • Europe: DAX +0.1%, FTSE +0.3%, CAC +0.4%
  • Asia: Nikkei CLOSED, Hang Seng -0.6%, Shanghai +0.8%

Commodities: 

  • Crude Oil +0.78 @ 41.95
  • Nat Gas -0.09 @ 2.15
  • Gold +11.10 @ 2039.00
  • Silver +1.54 @ 29.23
  • Copper +0.07 @ 2.86

After-Hours Spotlight:

  • Cornerstone OnDemand (CSOD) beats by $0.18, beats on revs; guides Q3, FY20 revs below consensus... CSOD up 0.9% after hours
  • Novavax (NVAX) beats by $0.30, beats on revs. Co expands coronavirus vaccine partnership with AGC Biologics... NVAX unchanged after hours
  • Halozyme Therapeutics (HALO) reports first profitable quarter; misses by $0.05, misses on revs; reaffirms FY20 EPS guidance, revs guidance... HALO down 3.1% after hours
  • Integra (IART) beats by $0.19, beats on revs... IART up 5.5% after hours
  • ICU Medical (ICUI) enters into long-term US distribution with Grifols (GRFS) for certain core IV solution products... ICUI up 4.0% after hours
  • Esperion Therapeutics (ESPR) beats by $2.92, beats on revs... ESPR up 0.7% after hours
  • Extended Stay America (STAY) beats by $0.01, reports revs in-line... STAY up 6.1% after hours
  • Mesa Air (MESA) reports Q3 (Jun) results, misses on revs... MESA up 1.2% after hours
  • Tencent Music (TME) beats by $0.06, reports revs in-line... TME up 2.6% after hours
  • LiveRamp (RAMP) beats by $0.16, beats on revs; guides Q2 revs in-line... RAMP down 5.6% after hours
  • Kforce (KFRC) beats by $0.16, beats on revs; guides Q3 EPS, revs above consensus... KFRC up 16.5% after hours
  • Adaptive Biotechnologies (ADPT) beats by $0.02, beats on revs... ADPT up 0.4% after hours
  • Schrodinger (SDGR) announces public offering of 4.5 mln common shares, including 500,000 shares offered by a selling stockholder... SDGR down 4.0% after hours
  • Intl Flavors (IFF) beats by $0.05, misses on revs; not providing FY20 guidance... IFF unchanged after hours
  • Inter Parfums (IPAR) beats by $0.06, misses on revs... IPAR down 18.4% after hours
  • Tilray (TLRY) reports Q2 (Jun) results, misses on revs... TLRY down 8.5% after hours
  • Sunrun (RUN) misses by $0.14, misses on revs... RUN down 1.8% after hours
  • Repay Holdings (RPAY) beats by $0.04, beats on revs; guides FY20 revs in-line... RPAY down 0.4% after hours
  • ZoomInfo (ZI) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY20 EPS above consensus, revs above consensus... ZI down 5.1% after hours
  • Kaman (KAMN) beats by $0.15, beats on revs... KAMN unchanged after hours
  • ANGI Homeservices (ANGI) misses by $0.01, beats on revs... ANGI down 5.8% after hours
  • ICU Medical (ICUI) beats by $0.41, beats on revs... ICUI up 4.0% after hours
  • j2 Global (JCOM) beats by $0.25, beats on revs; guides FY20 EPS above consensus, revs in-line... JCOM up 13.5% after hours
  • ComScore (SCOR) misses by $0.04, reports revs in-line... SCOR up 14.7% after hours
  • Simon Properties (SPG) misses by $0.11, misses on revs... SPG down 0.7% after hours
  • Occidental Petro (OXY) misses by $0.59, misses on revs... OXY down 5.5% after hours
  • Grocery Outlet (GO) beats by $0.19, beats on revs, comps +16.7%; QTD comps for Q3 tracking at approx +10%... GO up 1.8% after hours
  • Qualys (QLYS) beats by $0.18, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; raises FY20 guidance... QLYS down 3.2% after hours
  • Inovio Pharma (INO) misses by $0.66, misses on revs... INO down 2.1% after hours
  • Wayfair (W) announces private offering of $1.2 bln aggregate principal amount of convertible senior notes due 2025... W down 1.0% after hours
  • Floor & Decor (FND) announces secondary offering of 5,686,422 shares of common stock by selling stockholders... FND down 1.4% after hours
  • NGL Energy Partners (NGL) reports Q1 (Jun) results... NGL down 6.3% after hours
  • Qurate Retail Group (QRTEA) beats by $0.05, beats on revs; announces $1.50 special dividend... QRTEA up 4.0% 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):
    • Amicus Therapeutics (FOLD) reports Q2 results
    • ASE Technology (ASX) reports July revs increased 2.6% yr/yr to NT$37.3 bln
    • Avaya Holdings (AVYA) misses by $0.71, beats on revs; guides Q4 revs above consensus
    • Barrick (GOLD) beats by $0.05, misses on revs
    • Berkshire Hathaway (BRK.B) reports Q2 operating earnings declined 10.1% yr/yr to $5.51 bln
    • Black Knight (BKI) beats by $0.05, reports revs in-line
    • Canopy Growth (CGC) beats by CAD0.16, beats on revs
    • Ceva (CEVA) beats by $0.08, beats on revs
    • DouYu (DOYU) beats by CNY0.20, beats on revs; guides Q3 revs above consensus
    • Duke Energy (DUK) beats by $0.05, misses on revs; reaffirms FY20 EPS guidance
    • Enstar Group (ESGR) reports Q2 results
    • Foot Locker (FL) issues upside guidance for Q2; comparable store sales increased approximately 18%
    • Gogo (GOGO) misses by $0.16, beats on revs
    • Intercept Pharma (ICPT) beats by $0.89, beats on revs; guides FY20 revs above consensus
    • Kodiak Sciences (KOD) misses by $0.01
    • Marriott (MAR) misses by $0.23, misses on revs
    • ON Semiconductor (ON) beats by $0.10, beats on revs; guides Q3 revs in-line
    • RadNet (RDNT) beats by $0.28, reports revs in-line
    • Reata Pharmaceuticals (RETA) beats by $1.83, beats on revs
    • Schrodinger (SDGR) beats by $0.24, beats on revs
    • SeaWorld Entertainment (SEAS) misses by $0.33, reports revs in-line
    • TEGNA (TGNA) misses by $0.01, beats on revs
    • TG Therapeutics (TGTX) reports Q2 license revenue of $38 mln (in line with last year)
    • United Micro (UMC) reports July revs increased 12.9% yr/yr to NT$15.49 bln
    • WillScot Mobile Mini (WSC) beats by $0.02, reports revs in-line
  • General News:
    • President Trump signs executive orders to extend $400/week in enhanced unemployment, provide student loan relief, prevent evictions, and defer payroll taxes. These orders will likely be challenged in the courts as Democrats quickly criticized the orders, according to The Hill
    • House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin are both open to resume stimulus negotiations. Both sides appeared willing to consider a narrower deal, according to Reuters
    • Joe Biden's aide says the candidate has not made a final decision on the removal of China tariffs. Mr. Biden will reevaluate the tariffs when he takes office, according to Forbes
    • Joe Biden will pick his vice presidential running mate this week. Senator Kamala Harris (D-CA), Susan Rice, Governor Gretchen Whitmer, Senator Elizabeth Warren (D-MA), and Senator Tammy Duckworth (D-IL) are among possible contenders, according to NBC News
    • China will sanction 11 Americans including Senators Marco Rubio and Ted Cruz to retaliate against US sanctions, according to Bloomberg
    • Joe Biden left open the possibly that the Federal Reserve should create a third mandate to fight racial income inequality, according to Bloomberg
    • White House National Security adviser Robert O'Brien wans of "severe consequences" of election interference for Russia, China, and Iran, according to CBS News
    • TikTok is threatening legal action against US over President Trump's order to ban it, according to BBC
    • Hundreds of people looted stores and smashed windows on Chicago's Magnificent Mile and other Downtown Chicago stores, according to the Chicago Tribune
    • Aerojet Rocketdyne (AJRD) names Dan Boehle as CFO
    • AES (AES) announces acceleration of future payments of $720 million from two long-term contracts at AES Gener; reaffirms guidance
    • Apple (AAPL) iPhone shipments could decline 30% if WeChat app is removed, according to MacRumors
    • Aquestive Therapeutics (AQST): FDA has granted Fast Track designation for the Company’s drug candidate AQST-108 for the treatment of allergic reactions (Type 1), including anaphylaxis
    • AT&T (T) WarnerMedia unit gets reorganization, staff shake-up, according to Deadline
    • Bristol-Myers (BMY) reports Phase 3 CheckMate -743 clinical trial demonstrated improvement in overall survival
    • Eli Lilly (LLY) and Innovent Biologics report clinical trial results of Sintilimab in Combination with ALIMTA
    • Flex (FLEX) names Paul Lundstrom as CFO
    • Hutchison China MediTech (HCM) receives Scientific Advice from EMA’s CHMP; plans to submit Marketing Authorization Application for Surufatinib
    • iBio (IBIO) provided an update on one of its proprietary vaccine candidates being designed to prevent infection from the SARS-CoV-2 virus
    • Mallinckrodt plc (MNK) announces U.S. FDA filing acceptance of Biologics License Application for StrataGraft regenerative skin tissue for treatment of adults with deep partial-thickness thermal burns
    • NantKwest (NK) and CBR by Generate Life Sciences announce collaboration to develop a COVID-19 treatment leveraging newborn stem cells
    • Precigen (PGEN) met the primary endpoint assessing safety and tolerability in the Phase 1b monotherapy portion of the ongoing Phase 1b/2a clinical study investigating AG019 ActoBiotics for the treatment of early-onset type 1 diabetes
    • Seres Therapeutics (MCRB) announces positive topline results from SER-109 Phase 3 ECOSPOR III study; SER-109 met Phase 3 primary endpoint, showing a highly statistically significant 30.2% absolute reduction in the rate of C. difficile infection recurrence compared to placebo
    • Simon Property Group (SPG) is in discussions with Amazon (AMZN) to turn some of its anchor store space into fulfillment centers, according to the Wall Street Journal
    • Trevana (TRVN) announces FDA approval of OLINVYK (oliceridine) injection
    • Twitter (TWTR) and TikTok held preliminary discussions about a potential merger, according to the Wall Street Journal
    • UPS (UPS) aiming to impose large fees on retailers during holiday season, according to the Wall Street Journal

Notable Ratings

(see Upgrades/Downgrades calendar for full list):

  • Upgrades:
    • Adient (ADNT) upgraded to Buy from Hold at The Benchmark Company; tgt $26
    • CEMEX S.A. (CX) upgraded to Market Perform from Underperform at BBVA
    • Cimarex (XEC) upgraded to Positive from Neutral at Susquehanna
    • Comp Siderurgica (SID) upgraded to Neutral from Underweight at JP Morgan
    • Con Edison (ED) upgraded to Neutral from Underperform at Credit Suisse; tgt $78
    • CubeSmart (CUBE) upgraded to Outperform from In-line at Evercore ISI; tgt $35
    • FedEx (FDX) upgraded to Outperform from Mkt Perform at Bernstein; tgt $225
    • Fidus Investment (FDUS) upgraded to Buy from Neutral at Ladenburg Thalmann; tgt $11.50
    • Fiverr (FVRR) upgraded to Buy from Neutral at Citigroup; tgt raised to $140
    • Gates Industrial (GTES) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $15
    • Life Storage (LSI) upgraded to Outperform from In-line at Evercore ISI; tgt $114
    • Pinterest (PINS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $44
    • Sunstone Hotel (SHO) upgraded to Outperform from In-line at Evercore ISI
    • TopBuild (BLD) upgraded to Buy from Neutral at BTIG Research; tgt $168
  • Downgrades:
    • Brookfield Renewable Partners (BEP) downgraded to Hold from Buy at Industrial Alliance
    • Corteva (CTVA) downgraded to Neutral from Buy at BofA Securities; tgt $28
    • Domtar (UFS) downgraded to Sector Underperform from Neutral at CIBC; tgt $28
    • GSX Techedu (GSX) downgraded to Sell from Buy at Citigroup; tgt $115
    • Open Text (OTEX) downgraded to Sell from Buy at Veritas
    • PRA Health Sciences (PRAH) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $100
    • Kennametal (KMT) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $32
    • Olin (OLN) downgraded to Neutral from Buy at BofA Securities; tgt $12
    • Q2 Holdings (QTWO) downgraded to Neutral from Buy at BTIG Research
    • Q2 Holdings (QTWO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt raised to $95
    • Rayonier (RYN) downgraded to Neutral from Buy at Citigroup; tgt $31
    • Tenaris (TS) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $10
    • Trupanion (TRUP) downgraded to Neutral from Buy at Guggenheim
  • Others:
    • AdaptHealth (AHCO) initiated with a Buy at Canaccord Genuity; tgt $31
    • Antero Midstream (AM) initiated with a Neutral at UBS; tgt $6
    • Booking Holdings (BKNG) resumed with a Mkt Outperform at JMP Securities; tgt $2000
    • J.B. Hunt Transport (JBHT) initiated with an Outperform at Evercore ISI
    • MorphoSys (MOR) initiated with a Buy at Citigroup

Upcoming Events:

  • Econ data (Tuesday):
    • 6:00 ET: NFIB Small Business Optimism Index (prior 100.6) for July
    • 8:30 ET: PPI (Briefing.com consensus 0.3%; prior -0.2%) and Core PPI (Briefing.com consensus 0.1%; prior -0.3%) for July
  • Earnings:
    • Monday (Aug 10)
      • Pre-Market: AVYA GOLD BKI CGC CEVA CEIX DOYU DUK GOGO ICPT MAR MELI PPL RDNT RETA RCL SAGE SDGR SEAS TGNA
      • After-Hours: ADPT ANGI SCOR CSOD DHT ESE ESPR STAY GSKY GO HALO ICUI IART IPAR IAC IFF JCOM KAMN KFRC RAMP MESA NHI NGL NTR OXY CNXN PRA QLYS RPAY SPG RUN TCO TME TLRY WES ZI
    • Tuesday (Aug 11)
      • Pre-Market:  BNTX BR GOOS IMOS HUYA LITE NIO SYY
      • After-Hours: TXG CVET HCAT HBM NARI LRN KRNT OSPN RRGB SWAV VIAV
    • Wednesday (Aug 12)
      • Pre-Market:  AIT EAT CAE PFGC PGTI TUFN
      • After-Hours:  ONEM AZPN CACI CSCO ENS GTBIF YY LYFT PING RVLV SDC SPTN VREX VRM WPM ZTO
    • Thursday (Aug 13)
      • Pre-Market:  AZUL BAM IIVI NTES TPR TGP TNK WCC
      • After-Hours: AQN AMAT BIDU FTCH GLOB IQ MYGN
    • Friday (Aug 14)
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