After Hours Report

U.S. stocks bounced back on Tuesday, recovering a bulk of yesterday's losses as investors bought the dip amid waning coronavirus concerns. The Nasdaq Composite led the rebound with a 1.4% gain, while the S&P 500 (+1.0%), Dow Jones Industrial Average (+0.7%), and Russell 2000 (+0.9%) followed behind. 

The day began with modest gains, as the market looked past disappointing earnings reports from 3M (MMM 165.56, -10.07, -5.7%) and Pfizer (PFE 38.14, -2.02, -5.0%), then stocks climbed higher soon after the Conference Board released its Consumer Confidence Index for January. That index rose to 131.6 (Briefing.com consensus 128.0) from 128.2 in December. 

All 11 S&P 500 sectors contributed to the rally, including five that rose at least 1.0%. The information technology sector (+1.9%) led the charge on the back of Apple (AAPL 317.69, +8.74, +2.8%), which was set to release its earnings report after the close. Shares got an added lift on reports Apple asked suppliers to raise iPhone production levels by more than 10% over the last year.

The Philadelphia Semiconductor Index, which was among yesterday's worst-performing groups, rose 2.4%. The consumer staples sector, which was among yesterday's best-performing groups, increased just 0.1%. 

As for the coronavirus, there weren't too many positive developments on the situation, as more cases and deaths were confirmed in China with additional travel restrictions enacted. Investors, however, appeared placated by the fact that it remained under control in the U.S. Any negative impact to earnings growth, thus, might be transitory or minimal.

In other earnings news, United Technologies (UTX 152.86, +1.83, +1.2%) and Lockheed Martin (LMT 437.17, +4.79, +1.1%) were some of the more notable companies today that beat top and bottom-line estimates.

U.S. Treasuries gave back some of their recent gains, sending yields modestly higher. The 2-yr yield increased three basis points to 1.46%, and the 10-yr yield increased four basis points to 1.64%. The U.S. Dollar Index finished flat at 97.98. WTI crude rose 0.7%, or $0.39, to $53.40/bbl. 

Reviewing Tuesday's economic data:

• The Conference Board's Consumer Confidence Index rose to 131.6 in January (Briefing.com consensus 128.0) from an upwardly revised 128.2 (from 126.5) in December.
  
  •  The key takeaway from the report is that the survey group remains optimistic about the overall situation, as nearly 41% of respondents described business conditions as good while 49% of respondents believed that jobs are plentiful.
• Total durable goods orders rose 2.4% m/m in December (Briefing.com consensus +0.5%) following a downwardly revised 3.1% decline (from -2.0%) in November. Excluding transportation, durable goods orders slipped 0.1% (Briefing.com consensus +0.3%) on the heels of a downwardly revised 0.4% decline (from 0.0%) in November.
  • The key takeaway from the report is that nondefense capital goods orders, excluding aircraft -- a proxy for business spending -- declined 0.9% after increasing just 0.1% in November. Shipments of these goods, which factor into GDP computations, were down 0.4% following a 0.3% decline in November.
• The S&P Case-Shiller Home Price Index increased 2.6% yr/yr in November (Briefing.com consensus 2.5%) following a 2.2% yr/yr increase in December.

Looking ahead, investors will receive the following on Wednesday: an FOMC Rate Decision, Pending Home Sales for December, the weekly MBA Mortgage Applications Index, and the Advance reports for Wholesale Inventories, Retail Inventories, and Trade in Goods.

• Nasdaq Composite +3.3% YTD
• S&P 500 +1.4% YTD
• Dow Jones Industrial Average +0.7% YTD
• Russell 2000 -0.6% YTD

Overseas: 

• Europe: DAX +0.9%, FTSE +0.9%, CAC +1.1%
• Asia: Nikkei -0.6%, Hang Seng closed, Shanghai closed

Commodities: 

• Crude Oil +0.63 @ 53.62
• Nat Gas +0.05 @ 1.95
• Gold -7.50 @ 1570.00
• Silver -0.62 @ 17.45
• Copper -0.02 @ 2.58

• Advanced Micro (AMD) beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY20 revs above consensus... AMD down 3.3% after hours
• Alaska Air (ALK) beats by $0.05, reports revs in-line; increases dividend 7% to $0.375/share... ALK down 1.3% after hours
• Apple (AAPL) beats by $0.45, beats on revs; guides Q2 revs above consensus; Q1 iPhone revs well above estimates; slight miss on Q1 services revenues... AAPL up 1.5% after hours
• C.H. Robinson (CHRW) misses by $0.23, beats on revs... CHRW down 7.5% after hours
• eBay (EBAY) beats by $0.05, reports revs in-line; guides Q1 EPS in-line, revs below consensus; guides FY20 EPS above consensus, revs below consensus... EBAY down 4.2% after hours
• Match Group (MTCH) confirms Mandy Ginsberg stepping down; CFO Swidler adds COO role... MTCH down 1.2% after hours
• Maxim Integrated (MXIM) beats by $0.02, beats on revs; guides Q3 EPS above consensus, revs above consensus... no after hours indication for MXIM
• Mercury (MRCY) beats by $0.06, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY20 EPS in-line, revs in-line... MRCY down 1.4% after hours
• MKS Instruments (MKSI) beats by $0.13, beats on revs; guides Q1 EPS in-line, revs above consensus... MKSI up 1.8% after hours
• OSI Systems (OSIS) beats by $0.04, misses on revs; guides FY20 EPS in-line, revs below consensus... OSIS up 0.7% after hours
• Starbucks (SBUX) beats by $0.03, reports revs in-line; reaffirms FY20 EPS guidance, revs guidance... SBUX down 1.2% after hours
• Stryker (SYK) beats by $0.03, reports revs in-line; guides Q1 EPS above consensus; guides FY20 EPS in-line... SYK up 0.8% after hours
• Xilinx (XLNX) beats by $0.06, reports revs in-line; guides MarQ revs below consensus; seeing weakness in wired and wireless business due to a slowdown in both 5G and wired infrastructure deployments... XLNX down 8.2% after hours

Fair Value for Wednesday, January 29:

• S&P 500: 3275
• Nasdaq 100: 9098
• DJIA: 28672

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):
  • 3M (MMM) misses by $0.15, reports revs in-line; guides FY20 EPS in-line, revs below consensus; announces restructuring
  • A.O. Smith (AOS) misses by $0.03, misses on revs; guides FY20 EPS in-line, revs above consensus
  • BorgWarner (BWA) reports prelim FY 19 sales, initiates 2020 FY guidance, confirms all-stock acquisition of Delphi (DLPH)
  • Brown & Brown (BRO) beats by $0.01, beats on revs
  • CIT Group (CIT) beats by $0.19, beats on revs
  • Crane (CR) reports EPS in-line, beats on revs; guides FY20 EPS in-line, revs above consensus; increases dividend 10%
  • Delphi Technologies (DLPH) reports prelim 2019 results above prior outlook
  • F5 Networks (FFIV) beats by $0.12, reports revs in-line; guides MarQ EPS below consensus, revs above consensus
  • Graphic Packaging (GPK) reports EPS in-line, misses on revs
  • Great Western Bancorp (GWB) reports EPS in-line
  • Grocery Outlet (GO) reports upside prelim Q4 sales
  • Harley-Davidson (HOG) misses by $0.02, misses on revs
  • HCA (HCA) reports EPS in-line, beats on revs; guides FY20 EPS in-line, revs in-line; authorizes $2 bln share repurchase program
  • Inter Parfums (IPAR) reports upside Q4 sales
  • J&J Snack Foods (JJSF) misses by $0.05, reports revs in-line
  • Juniper Networks (JNPR) beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs in-line; raises dividend by 5%
  • Laureate Education (LAUR) reaffirms Q4 guidance
  • Lear (LEA) beats by $0.43, beats on revs; guides FY20 revs in-line
  • Lockheed Martin (LMT) beats by $0.26, beats on revs; guides FY20 EPS below consensus, revs above consensus
  • McCormick (MKC) reports EPS in-line, misses on revs; guides FY20 EPS below consensus, revs in-line
  • Nucor (NUE) beats by $0.21, beats on revs; believes that the inventory destocking that occurred throughout most of 2019 concluded in Q4
  • PACCAR (PCAR) beats by $0.02, beats on revs
  • Pentair (PNR) beats by $0.03, reports revs in-line; guides Q1 EPS below consensus; guides FY20 EPS below consensus; CFO resigns
  • PerkinElmer (PKI) beats by $0.02, reports revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY20 EPS below consensus, revs in-line
  • Pfizer (PFE) beats by $0.01, revs inline, issues FY20 guidance
  • Philips (PHG) reports EPS in-line, revs in-line; to review options for its Domestic Appliances business
  • Polaris Industries (PII) beats by $0.04, misses on revs; guides FY20 EPS above consensus, revs in-line
  • PulteGroup (PHM) beats by $0.04, beats on revs
  • Rambus (RMBS) reports Q4 (Dec) results; guides Q1 revs in-line
  • Sanmina (SANM) beats by $0.09, beats on revs; guides Q2 EPS in-line, revs in-line
  • SAP SE (SAP) beats by EUR0.11, reports revs in-line; guides FY20 revs in-line
  • United Tech (UTX) beats by $0.10, beats on revs
  • WesBanco Inc (WSBC) misses by $0.09, net interest income increased 5.1% yr/yr
  • Whirlpool (WHR) beats by $0.64, misses on revs; guides FY20 EPS in-line
  • Xerox (XRX) beats by $0.24, reports revs in-line; guides FY20 EPS above consensus, sees revenue down 4% at constant currency
• General News:
  • China aims to stop individual travelers to Hong Kong as coronavirus death toll tops 100, according to Bloomberg
  • State Department advises Americans to reconsider travel to China due to novel coronavirus first identified in Wuhan, China
  • HHS Secretary Alex Azar says Americans should not worry about their own safety regarding coronavirus; agency has experience in responding to these types of viruses
  • In CBO's projections, the federal budget deficit is $1.0 trillion in 2020 and averages $1.3 trillion between 2021 and 2030. Projected deficits rise from 4.6 percent of gross domestic product (GDP) in 2020 to 5.4 percent in 2030.
  • US drug companies are shipping antiviral drugs to China for treatment of coronavirus, according to the Wall Street Journal
  • UK said to allow Huawei limited access to its 5G networks
  • Airbus (EADSY) confirms that it has reached agreement in principle with the French Parquet National Financier, the UK Serious Fraud Office and the US authorities
  • Asian suppliers have warned Apple (AAPL) about coronavirus impacts to planned 10% increase in iPhone production
  • Arconic (ARNC) mulling job cuts due to Boeing (BA) 737 Max issues, according to The Wall Street Journal
  • Beyond Meat (BYND): Judge rules Don Lee Farms likely to obtain a judgment - CFO and others named individually for fraud
  • Sinclair Broadcast (SBGI) and Nexstar Media (NXST) agreed to settle the outstanding lawsuit with Tribune Media Company
  • Uber (UBER) loses exclusive rights for McDonalds (MCD) deliveries in the UK, according to CNBC

• Upgrades:
  • Canopy Growth (CGC) upgraded to Outperform from Market Perform at BMO Capital Markets
  • Heartland Financial (HTLF) upgraded to Overweight from Neutral at Piper Sandler; tgt $53
  • Opus Bank (OPB) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $29
  • Osisko Gold Royalties (OR) upgraded to Outperform from Sector Perform at National Bank Financial
  • PG&E (PCG) upgraded to Buy from Neutral at Mizuho; tgt raised to $22
  • Phibro Animal Health (PAHC) upgraded to Equal Weight from Underweight at Barclays
  • PulteGroup (PHM) upgraded to Outperform from In-line at Evercore ISI; tgt $49
  • Wells Fargo (WFC) upgraded to Neutral from Underperform at Robert W. Baird; tgt $50
  • Williams-Sonoma (WSM) upgraded to Outperform from Perform at Oppenheimer; tgt $90
  • Zions Bancorp (ZION) upgraded to Neutral from Underperform at Robert W. Baird; tgt $48
• Downgrades:
  • 3D Systems (DDD) downgraded to Neutral from Overweight at Piper Sandler; tgt $12
  • Apartment Investment & Mgmt (AIV) downgraded to Market Perform from Outperform at BMO Capital Markets
  • Beyond Meat (BYND) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $134
  • Diageo plc (DEO) downgraded to Underweight from Neutral at JP Morgan
  • Essex Property (ESS) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $295
  • First Mid-Illinois Bancshares (FMBH) downgraded to Neutral from Buy at DA Davidson
  • HEXO (HEXO) downgraded to Neutral from Buy at MKM Partners
  • Macquarie Group (MQBKY) downgraded to Sell from Neutral at Citigroup
  • MetroCity Bankshares (MCBS) downgraded to Mkt Perform from Outperform at Raymond James
  • Pacific Drilling (PACD) downgraded to Hold from Buy at Fearnley
• Others:
  • Acadia Healthcare (ACHC) initiated with an Equal-Weight at Stephens; tgt $36
  • ONEOK (OKE) initiated with a Sector Outperform at Scotiabank; tgt $84
  • Pacific City Financial (PCB) resumed with an Overweight at Piper Sandler; tgt $18
  • Uber (UBER) initiated with a Buy at UBS; tgt $56
  • World Wrestling (WWE) initiated with a Buy at Northcoast; tgt $76

Upcoming Events:

• Econ Data (Wednesday):
  • 07:00 ET: Weekly MBA Mortgage Index (prior -1.2%)
  • 08:30 ET: December advance Int. Trade in Goods (prior -$63.20 bln), December advance Wholesale Inventories (prior 0.0%), and December advance Retail Inventories (prior -0.7%)
  • 10:00 ET: December Pending Home Sales (Briefing.com consensus 1.0%; prior 1.2%)
  • 10:30 ET: Weekly crude oil inventories (prior -400,000)
  • 14:00 ET: January FOMC Rate Decision (Briefing.com consensus 1.625%; prior 1.625%)
• Earnings:
  • Monday (January 27)
    • Pre-Market: ARLP ARNC BOH DHI HMST NWBI SALT S
    • After-Hours: ASH BRO CR ELS FFIV GGG HTLF IBTX JJSF JNPR LRN NBTB PKI RMBS SANM SSB TCF WSBC WHR
  • Tuesday (January 28)
    • Pre-Market:  MMM AOS ALV CIT FBP FBC GPK HOG HCA LEA LMT MKC NUE PCAR PNR PFE PHG PII POL BPOP PHM SAP UTX XRX
    • After-Hours: AMD ALK AAPL BXP CHRW CNI CMRE EBAY EQR FCF FHB MTSI MXIM MRCY MSTR MKSI MINI NVR OSIS PFG RGA RXN SLGN SKY SBUX SYK TRMK UMBF WRB XLNX
  • Wednesday (January 29)
    • Pre-Market:  ANTM T ADP AVY BA EAT CP GIB CVLT GLW DOW DT EVR EXTR FCFS GD GE HES IR IVZ KNX LFUS MPC MKTX MA MCD MPLX NDAQ NYCB NSC NVS OSK PGR PB ROK ROL RES SC SNDR SMG SILC SLAB SWK SXC TROV TEL TXT
    • After-Hours:  AGNC ALGN ALGT AMP ADM AZPN AXS AX BDN CACI CLS CMPR CRUS CNMD CLB CREE DLB DRE ENVA ESS FB FBHS HOLX IEX ILMN ISBC KLIC LRCX LSTR LVS LM LLNW MLNX MTH MEOH MSFT MAA MDLZ MUSA EGOV PKG PYPL QRVO SEIC NOW TSLA TTEK URI VAR
  • Thursday (January 30)
    • Pre-Market:  ALXN ADS FLWS MO ABC APO APTV AXTA BIIB BX BGG BC CRS CMS CNXM CNX KO CTVA CFR DHR DOV DD LLY EPD BEN GWW HSY IP KIM KEX LAZ MMP MMC MDC MTOR MIXT MNRO MSCI MUR NTCT NOC PH DGX RTN RFP ROP RDS.A SHW SPB SF TMO TSCO TFC UBSI UPS VLO VLY VZ WEC WCC WRK XEL
    • After-Hours: AMZN AMGN AIV ARCB AJG BZH EPAY CPT CVCO CE CACC DECK EMN EW EA NVST FII FICO FLEX HA HAYN LEVI LPLA MATW MTX MITK NFG NATI OTEX POWI PFPT RMD RHI SIGI SKYW X VRTX V WDC
  • Friday (January 31)
    • Pre-Market: ADNT AON BERY BAH BR CAT CHTR CVX CHD CL XOM GNTX HTH HON IDXX ITW IMO JCI KKR LYB MAN PSX PSXP PFS SBSI VRTS WY WETF
    • After-Hours: None of note
    • Full Earnings Calendar