After Hours Report

The stock market faced some selling pressure today after six straight weeks of gains for the S&P 500 (-0.2%). The index closed at a record high on Friday, along with the Dow Jones Industrial Average (-0.8%), so today's downside bias was related in part to normal consolidation activity.

Selling in the stock market was also a function of rising market rates. The 10-yr yield settled 11 basis points higher at 4.18% and the 2-yr yield settled seven basis points higher at 4.02%. 

The Nasdaq Composite outperformed other major indices, climbing 0.3% compared to Friday's close thanks to gains in some mega cap names. NVIDIA (NVDA 143.71, +5.71, +4.1%), Microsoft (MSFT 418.78, +0.62, +0.2%), and Apple (AAPL 236.48, +1.48, +0.6%) were among the influential winners from the space. 

Many other stocks participated in today's retreat. 23 of the 30 Dow components fell and ten of the 11 S&P 500 sectors declined. The information technology sector (+0.9%) was alone in positive territory, boosted by its heavily-weighted components, while the rate-sensitive real estate sector (-2.1%) logged the largest decline by a decent margin.

The health care sector (-1.2%) was the next worst performer, clipped by a sizable decline in shares of Cigna (CI 320.23, -15.77, -4.7%) following a Bloomberg report that it was in talks to takeover Humana (HUM 260.57, -6.57, -2.5%).

The negative action in equities also reflected a wait-and-see mentality in front of a busy week of earnings. Tesla (TSLA 218.85, -1.85, -0.8%), Boeing (BA 159.82, +4.82, +3.1%), and UPS (UPS 131.33, -4.60, -3.4%) are some of the headliners on the earnings calendar. 

• Nasdaq Composite: +23.5% YTD
• S&P 500: +22.7% YTD
• Dow Jones Industrial Average: +13.9% YTD
• S&P Midcap 400: +13.6% YTD
• Russell 2000: +10.5% YTD

Reviewing today's economic data:

• September Leading Indicators -0.5% (Briefing.com consensus -0.3%); Prior was revised to -0.3% from -0.2%

There's no US economic data of note on Tuesday. 

Overseas:

• Europe: DAX -1.0%, FTSE -0.5%, CAC -1.0%
• Asia: Nikkei +0.1%, Hang Seng -1.6%, Shanghai +0.2%

Commodities:

• Crude Oil +1.43 @ 70.05
• Nat Gas +0.06 @ 2.32
• Gold +8.50 @ 2738.40
• Silver +0.79 @ 34.05
• Copper -0.03 @ 4.36

After-Hours Spotlight:

• Cheesecake Factory (CAKE) jumping after activist urges the company to consider a spin-off of its smaller brands into a separate public company, according to WSJ... CAKE up 1.9%
• DMC Global (BOOM) provides strategic review update; lowers Q3 sales outlook; chairman David Aldous steps down... BOOM down 20.3%
• Int'l Paper (IP) to reduce its workforce by approximately 650 employees... IP down 1.6%
• Interparfums (IPAR) reports Q3 (Sep) results, beats on revs; reaffirms FY24 EPS guidance, revs guidance... IPAR down 1.9%
• iRhythm (IRTC) announces that the U.S FDA has granted clearance for its 510(k) submission related to prior design changes made to the Zio AT device via letter to file. Zio AT remains commercially available on the market to ship to customers in the United States... IRTC up 16.1%
• Medpace (MEDP) beats by $0.24, misses on revs; guides FY24 EPS above consensus, revs in-line... MEDP down 10.7%
• NIKE (NKE) announces 12-year partnership extension with NBA, WNBA, and NBA G League... NKE up 0.5%
• Nucor (NUE) misses by $0.01, beats on revs, expects lower earnings in Q4... NUE down 2.9%
• SAP SE (SAP) beats by €0.02, slightly tops revenue ests; raises FY24 cloud and software revenue outlook in cc... SAP up 3.8%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Alaska Air (ALK) sees Q3 EPS at high end of prior range
  • Atlantic Union Bankshares (AUB) beats by $0.02
  • Construction Partners (ROAD) sees FY24 revs below consensus; sees FY25 revs above consensus
  • Embraer (ERJ) reports Q3 deliveries increased 33% yr/yr
  • Interactive Brokers (IBKR) reached agreements in principle to settle certain disputes which relate back to events that took place prior to the end of the quarter ended September 30, 2024
  • Jefferies (JEF) in slide presentation says LAM team has raised $1.7 bln in LTM in Q3; sees strong pipeline for the reminder of 2024 and into H1 of 2025
  • Jefferies (JEF) in slide presentation says LAM team has raised $1.7 bln in LTM in Q3; sees strong pipeline for the reminder of 2024 and into H1 of 2025
  • Parsons (PSN) to acquire BCC Engineering in an all-cash transaction valued at $230 mln
  • Sandy Spring Banc (SASR) misses by $0.06
  • Sanofi (SNY) and CD&R partner to fuel Opella’s ambitions in consumer healthcare; Sanofi raises FY24 outlook
• General News
  • Polling averages show Vice President Kamala Harris ahead marginally nationally, but former President Trump is ahead marginally in all seven swing states. All averages are within the margin of error, according to RCP
  • Israel resumed its bombardment of Lebanon, according to the New York Times
  • US banks mulling interest rate reductions on corporate deposits, according to Financial Times
  • Banks in China lower lending rates, according to Bloomberg
  • White House proposes rule to expand coverage of affordable contraception under the Affordable Care Act
  • Abacus Life (ABL) files for $350 mln mixed securities shelf offering
  • AbbVie (ABBV): BOTOX Cosmetic receives FDA approval for moderate to severe vertical bands connecting the jaw and neck
  • AT&T (T) Employees Vote to Ratify the Southeast and West Agreements
  • Avista (AVA) selected for $85 million grant for transmission line update; The project, in partnership with Idaho Power (IDA), will enhance grid flexibility, improve resilience against wildfire, and increase capacity for the region
  • Bausch + Lomb (BLCO): Firms competing for $5 bln in BHC buyout financing, according to Bloomberg
  • Baxter (BAX) provides additional Hurricane Helene updates; implemented a process to evaluate requests for neonatal and pediatric needs for other Baxter customers
  • Bayer AG (BAYRY) reports long-term efficacy and safety profile of Eylea 8 mg with extended dosing intervals in diabetic macular edema confirmed at three years
  • BeiGene (BGNE) receives positive CHMP opinions for TEVIMBRA as a first-line treatment for advanced/metastatic gastric or gastroesophageal junction cancer and esophageal squamous cell carcinoma
  • Beyond, Inc. (BYON) and Kirkland's, Inc. (KIRK) have entered into a strategic partnership that will enable cohesive collaboration, leveraging the strengths of each business to drive sustainable profitable growth and value for all stakeholders
  • BHP Group (BHP) discloses update on Brazil settlement negotiations
  • Bilibili Inc. (BILI) announces repurchase right notification for 0.50% Convertible Senior Notes due 2026
  • Boeing (BA): IAM/Boeing negotiated resolution contract 2024; received a negotiated proposal and resolution to end the strike
  • Boeing (BA) reports Emirates SkyCargo to expand fleet with five more 777 Freighters
  • Boston Scientific (BSX) receives U.S FDA approval for the navigation-enabled FARAWAVE NAV Ablation Catheter for the treatment of paroxysmal atrial fibrillation and FDA 510 clearance for the new FARAVIEW Software, which will combine to provide visualization for cardiac ablation procedures with the FARAPULSE Pulsed Field Ablation System
  • CareDx (CDNA) showcases latest advancements across its HLA typing solutions at Annual American Society for Histocompatibility and Immunogenetics Meeting
  • Carlisle Cos (CSL): The Riverside Company together with its portfolio company PFB Corporation, announces the firm has signed a definitive agreement to sell PFB’s Plasti-Fab and Insulspan business units to Carlisle Companies Incorporated
  • Carrier Global (CARR) entered into a Settlement and Plan Support Agreement with KFI Wind-Down Corp
  • Castle Biosciences (CSTL) Presents New Data at ASDS from Prospective, Multicenter CONNECTION Study Supporting Use of DecisionDx-Melanoma to Guide SLNB Decisions in T1a Tumors with High-Risk Features and T1b Tumors
  • Cibus Global (CBUS) approves strategic realignment, including a reduction in workforce of approximately 26 full-time employees
  • Corning (GLW)/ Shin-etsu Handotai's Hemlock Semiconductor and US Department of Commerce signed non-binding preliminary memorandum of terms to provide up to $325 mln to significantly expand U.S. production capacity of semiconductor-grade polysilicon
  • Diana Shipping (DSX) announces the successful signing of a $80.2 mln seven-year secured term loan facility with Danish Ship Finance A/S on October 18, 2024
  • Endeavour Silver (EXK) provides a Q3 2024 construction progress update on Terronera; the surface construction progress has reached 77% completion
  • Evergy (EVRG) will invest in two new 705 megawatt combined-cycle natural gas plants that will be built in Kansas
  • GE HealthCare (GEHC) announces AI Innovation Lab showcasing five new research projects
  • GE HealthCare (GEHC) announces CareIntellect for Oncology, harnessing AI to give clinicians an easy way to see the patient journey in a single view
  • Generac (GNRC) selected by DoE to receive $50 mln award to support grid resilience through clean energy solutions with California's water utilities
  • Gilead (GILD) and Merck (MRK) announce Phase 2 Data Showing a Treatment Switch to an Investigational Oral Once-Weekly Combination Regimen of Islatravir and Lenacapavir Maintained Viral Suppression in Adults at Week 48
  • Honeywell (HON) forecast shows increased demand for new business jets, stable growth for next decade
  • Humana (HUM) files lawsuit to reverse reduction of Medicare quality ratings, according to Bloomberg
  • IBM (IBM) Introduces Granite 3.0: High Performing AI Models Built for Business
  • Interactive Brokers (IBKR) reached agreements in principle to settle certain disputes which relate back to events that took place prior to the end of the quarter ended September 30, 2024
  • Ionis Pharma (IONS) and AstraZeneca (AZN) receive CHMP recommendation for WAINZUA
  • Johnson & Johnson (JNJ) receives FDA orphan drug designation treatment of acute myeloid leukemia
  • Johnson & Johnson (JNJ) Spravato prescriptions are strong, according to the Wall Street Journal
  • Kenvue (KVUE): Starboard Value built sizable stake in Kenvue, according to the Wall Street Journal
  • Largo Resources (LGO) increases quarterly V2O5 production by 42%
  • Lincoln Educational Services (LINC) has partnered with Hyundai Motor America & Genesis Motor America to launch two new employer-specific training programs
  • Mammoth Energy Services' (TUSK) subsidiary, Cobra Acquisitions LLC, announces receipt of $18.4 million from the Puerto Rico Electric Power Authority
  • Marvell (MRVL) mulling price increase next year, according to Trend Force
  • Microsoft (MSFT): US Army wants Microsoft goggles to cost less, according to Bloomberg
  • Metalla Royalty & Streaming (MTA) reports select portfolio updates
  • MGM Resorts (MGM) and Marriott International (MAR) announced plans to convert an iconic property on the Las Vegas Strip to the W Hotels brand within the Marriott Bonvoy portfolio
  • Moderna (MRNA): Northwestern University files patent infringement lawsuit against Moderna over mRNA vaccine technologies
  • Mosaic (MOS) provides business update following recent hurricanes
  • New York Community's (NYCB) workforce changes announced earlier include a reduction in force involving approximately 8% of employees
  • Norfolk Southern (NSC) reaches a tentative five-year collective bargaining agreement with the International Brotherhood of Electrical Workers
  • Novo Nordisk (NVO) reports oral semaglutide demonstrates a 14% reduction in risk of major adverse cardiovascular events in adults with type 2 diabetes in the SOUL trial
  • Nurix Therapeutics (NRIX) Presents Positive Results from the Ongoing Clinical Trial of Its BTK Degrader NX-5948 in Patients with Relapsed/Refractory Waldenstrom’s Macroglobulinemia
  • Oculis Holding AG (OCS) accelerates enrollment in both Diamond Phase 3 trials of OCS-01 in diabetic macular edema and expands its Diamond program committees
  • Provident Finl (PFS) provided Provident Bank litigation update
  • Public Storage (PSA) announces that Chris Sambar joins the Company as COO
  • Qualcomm (QCOM) unveils Snapdragon 8 Elite with the world’s fastest mobile CPU
  • Qualcomm (QCOM) and Dataloop collaborate to create & deploy AI models for devices powered by Snapdragon
  • REGENXBIO (RGNX) announces "positive" data from the Phase II fellow eye sub-study evaluating the subretinal delivery of ABBV-RGX-314 in patients with bilateral wet age-related macular degeneration
  • Roche Holdings (RHHBY): Genentech’s Vabysmo Improved Vision in Underrepresented Populations With Diabetic Macular Edema (DME) in a First-Of-Its-Kind Study
  • RTX's (RTX) Collins Aerospace announces the first deliveries of its new Venue cabin management system with smart monitors
  • Saia (SAIA) announces that Saia LTL Freight is continuing its nationwide expansion with the opening of three new terminals this month in Ohio and Kentucky
  • San Juan Basin Royalty (SJT) declares no cash distribution for October 2024 and announces production costs in excess of proceeds
  • Shell (SHEL) pipeline in Singapore had an oil leak, according to Bloomberg
  • SoFi Technologies (SOFI): President Biden will extend student loan payment pause by 6 months for SAVE plan, according to CNBC
  • Southern's (SO) Georgia Power awarded $160 million from Department of Energy to enhance Georgia's power grid
  • Southwest Airlines (LUV): Elliott and Southwest discussing a possible settlement, according to Bloomberg
  • Spirit Airlines (SAVE) expects to end 2024 with over $1.0 bln of liquidity
  • Tesla (TSLA) CEO Elon Musk will offer $1 million a day to a randomly chosen voter who signs a free speech petition, according to the Wall Street Journal
  • Tevogen Bio (TVGN) provides clarity on CSO share sales to satisfy tax obligations, expects additional forecast and progress updates in the coming days
  • Titan Intl (TWI) completed the repurchase of 8.0 million shares of common stock from MHR Fund Management for $57.6 million ($7.20 per share) in cash
  • Trevi Therapeutics (TRVI) completes enrollment for phase 2a RIVER Trial in Refractory Chronic Cough
  • Tutor Perini (TPC) provides update regarding recent developments; Management expects return to profitability in 2025
  • Tyra Biosciences (TYRA) entered into an exchange agreement with Boxer Capital and RA Capital Healthcare
  • Vale S.A. (VALE) provides update on settlement negotiation for Samarco's Fundão dam collapse; total financial value of approximately R$170 bln
  • VEON (VEON) confirms receipt of Shah letter; Board and Management will continue to maintain an open dialogue with all shareholders as it looks to unlock VEON's full potential
  • VEON (VEON) shareholder (approx. 7%) sends letter to the board detailing roadmap to $160 share price or 5.5X EV/EBITDA valuation by 2026
  • Viad Corp (VVI) to transform into pure-play attractions and hospitality leader through sale of GES business to truelink capital for $535 Million
  • Viasat (VSAT) joins Connectbase platform to offer comprehensive satellite connectivity solutions for small and medium-sized businesses across the U.S.
  • Voya Financial (VOYA) AUM of the Company’s IM segment was $341 billion as of September 30, 2024
  • Walmart (WMT) discloses settlement details

Ratings Changes (see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Albertsons (ACI) upgraded to Buy from Hold at Melius; tgt $24
  • Ally Financial (ALLY) upgraded to Mkt Perform from Underperform at Raymond James
  • Getty Realty Corp. (GTY) upgraded to Buy from Neutral at BofA Securities; tgt raised to $34
  • Gilead Sciences (GILD) upgraded to Outperform from Market Perform at Leerink Partners; tgt raised to $96
  • GitLab (GTLB) upgraded to Buy from Hold at Needham; tgt $70
  • Healthpeak Properties (DOC) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $28
  • Home Bancorp (HBCP) upgraded to Outperform from Mkt Perform at Raymond James; tgt $50
• Downgrades:
  • Canada Goose (GOOS) downgraded to Sell from Neutral at Goldman; tgt lowered to $9
  • Centerspace (CSR) downgraded to Mkt Perform from Outperform at Raymond James
  • Essex Property (ESS) downgraded to Mkt Perform from Outperform at Raymond James
  • Extra Space Storage (EXR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $175
  • HCI Group (HCI) downgraded to Neutral from Buy at Compass Point; tgt raised to $120
  • Hilton (HLT) downgraded to Hold from Buy at Melius
• Others:
  • BioAge Labs (BIOA) initiated with an Overweight at Morgan Stanley; tgt $40
  • BioAge Labs (BIOA) initiated with a Buy at Jefferies; tgt $42
  • BKV Corporation (BKV) initiated with an Overweight at Barclays; tgt $24
  • BKV Corporation (BKV) initiated with an Outperform at Mizuho; tgt $29
  • BKV Corporation (BKV) initiated with an Overweight at KeyBanc Capital Markets; tgt $23
  • BKV Corporation (BKV) initiated with a Buy at Jefferies; tgt $28
  • Capricor Therapeutics (CAPR) initiated with an Overweight at Piper Sandler; tgt $35
  • Eagle Bancorp (EGBN) resumed with a Neutral at Piper Sandler; tgt $27
  • Elme Communities (ELME) initiated with a Peer Perform at Wolfe Research
  • Esco Tech (ESE) initiated with a Buy at The Benchmark Company; tgt $150
  • GE Vernova (GEV) initiated with a Buy at Deutsche Bank; tgt $354
  • Guardian Pharmacy (GRDN) Services initiated with a Buy at Truist; tgt $22
  • Harmony Gold (HMY) resumed with a Neutral at BofA Securities

• Econ Data (Tuesday):
  • There is no U.S. economic data of note
  • 10:00 ET: Philadelphia Fed President Harker (non-FOMC voter)
• Earnings:
  • Monday (Oct 21)
    • Pre-Market: SASR
    • After-Hours: AGNC ARE BOKF CADE CATY ELS HSTM HXL KREF MEDP NUE RBB RLI SAP SIGI SSD WRB WTFC ZION
  • Tuesday (Oct 22)
    • Pre-Market: MMM AOS AUB BANC BKU CBU DHR DENN FI FCX GATX GE GM GPC HRI IPG IVZ KMB LMT MCO ONB PCAR PNR PEBO PM PII PHM DGX RTX SHW VZ
    • After-Hours: ADC AGR BKR NTB BDN CNI CSGP EWBC ENVA ENPH HIW JBT MANH MTDR NBR NBHC NSC PKG PFSI RRC ROIC RHI RNST STX LRN TXN TRMK VMI VBTX VICR
  • Wednesday (Oct 23)
    • Pre-Market: APH T AVY BA BSX CME KO CSTM EVR FBP GEV GD HCSG HLT KBR LII LAD COOP EDU NEE NEP NTRS ODFL BPOP PRG PB ROP SF TMHC TDY TMO TRU TNL UNF UCB VRT WAB WSO WGO
    • After-Hours: ALGN AMP ASGN CACI CP CLS CCS CHDN CYH CLB EGP EQC EPRT FAF GL GSHD GGG GBX IBM ICLR PI KALU KNX LRCX LVS LC MAT MXL MC MOH MSA NEM ORLY OII CASH PTEN PEGA PLXS QS RJF ROL SLM SEIC NOW SLP SSB STC TMUS TER TSLA TYL URI VLTO VKTX WCN WFRD WSBC WU WHR WH
  • Thursday (Oct 24)
    • Pre-Market: ADT ALKS ALLE AB AAL AIT AMBP BHLB BFH BC CRS CARR CBRE COLB DOV DOW DTE EEFT XPRO FRME FSV FCN FCFS HOG HAS HON ITGR KDP KKR LADR LH LEA LTH LNN LKQ MSM NDAQ NTCT NOC OSIS PPBI POOL RDUS RS RCI RES R SPGI SMPL SAH SBSI LUV FTI TECK TXT SHYF TSCO TPH UNP UPS VLO VLY VIRT VC WNC WST WEX
    • After-Hours: ABCB APPF ATR AJG ASB BYON SAM BYD COF CSL CINF COUR CUZ DECK DXCM DLR EW EXPO FHI FFBC FIBK GLPI GBCI HIG HTH DOC KNSL KN LHX MGRC MTX MHK NOV OLN PECO PDM PFG RMD SBCF SKX SPSC SSNC TXRH TROX UHS VRSN WDC WY WKC WSFS ZYXI
  • Friday (Oct 25)
    • Pre-Market: AON AN AVTR BCPC B BAH CNC CL FHB GNTX HCA LKFN NYCB NWL PIPR POR SAIA SNY SXT STEL TNET WT
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike