After Hours Report

The stock market was in rally-mode today, leading the S&P 500 (+0.7%) and Dow Jones Industrial Average (+1.0%) to new record highs. The market benefitted from ongoing momentum following yesterday's bounce, along with strength in some mega caps and semiconductor-related names. 

Alphabet (GOOG 163.06, -2.64, -1.6%) was left out of the rally today following news that the Department of Justice is considering a breakup of Google. Just about everything else participated in upside moves, though. 28 of the 30 Dow components closed higher and nine of the 11 S&P 500 sectors closed above prior closing levels. 

The heavily-weighted health care (+1.0%) and information technology (+1.0%) sectors were the top performers today, which comprise 43% of the index. The rate-sensitive real estate sector (-0.9%) logged the largest decline as yields rose. 

The 10-yr yield settled three basis points higher at 4.06% and the 2-yr yield settled three basis points higher at 4.01% after today's 10-yr note auction saw the high yield slightly tail the when-issued yield amid solid demand from indirect bidders.

The market didn't react much to the minutes for the September 17–18 FOMC meeting, which didn't contain any surprises. The minutes showed that almost all participants saw upside risks to the inflation outlook as having diminished, while downside risks to employment were seen as having increased. 

However, Dallas Fed President Logan (non-FOMC voter) noted today that she sees a meaningful risk that inflation could get stuck above the Fed's 2% goal and that she believes the FOMC should not rush to get the funds funds target to a "normal" or "neutral" level.

There's also lingering worries about the situation in the Middle East in play, along with concerns about Hurricane Milton, but the market didn't seem bothered today. 

• Nasdaq Composite: +21.9% YTD
• S&P 500: +21.4% YTD
• Dow Jones Industrial Average: +12.8% YTD
• S&P Midcap 400: +12.1% YTD
• Russell 2000: +8.6% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -5.1%; Prior -1.3%
• August Wholesale Inventories 0.1% (Briefing.com consensus 0.2%); Prior 0.2%
• Weekly EIA crude oil inventories had a build of 5.81 million barrels after last week's build of 3.89 million barrels

Market participants receive some market-moving data tomorrow in the form of the weekly jobless claims report and the September CPI report at 8:30 ET. 

Overseas:

• Europe: DAX +1.0%, FTSE +0.7%, CAC +0.5%
• Asia: Nikkei +1.0%, Hang Seng -1.4%, Shanghai -6.6%

Commodities:

• Crude Oil -0.37 @ 73.33
• Nat Gas -0.07 @ 2.66
• Gold -9.00 @ 2626.40
• Silver +0.06 @ 30.66
• Copper -0.06 @ 4.40

After-Hours Spotlight:

• 10x Genomics (TXG) guides Q3 revs below consensus... TXG down 27.3%
• Applied Digital Corporation (APLD) beats by $0.12, beats on revs... APLD up 2.4%
• AZZ (AZZ) beats by $0.05, reports revs in-line; guides FY25 EPS in-line, reaffirms FY25 revs guidance... AZZ down 2.2%
• Costco (COST) reports September adjusted comparable sales of +8.9%... COST up 0.3%
• E2open (ETWO) beats by $0.03, misses on revs; lowers FY25 revenue outlook, guides to lower end of adjusted EBITDA guidance... ETWO down 17.8%

Fair Value for Thursday, Oct 10:

• S&P 500: 5,840
• Nasdaq 100: 20,459
• DJIA: 42,805

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

• Earnings/Guidance (Full Earnings Calendar):
  • ASE Technology (ASX) reports September revs increased 3.8% yr/yr to NT$55.58 bln
  • Castle Biosciences (CSTL): New Prospective, Multicenter Study Presented at SMR Demonstrates Castle Biosciences’ DecisionDx-Melanoma Test Provides Significant Risk Prediction for Patients with Cutaneous Melanoma
  • ChipMOS TECHNOLOGIES (IMOS) reports September revs declined 1.2% yr/yr; Q3 revs below consensus
  • Daimler Truck Holding (DTRUY) reports Q3 sales of 114,917 units
  • GeoPark (GPRK) announces Third Quarter 2024 operational update
  • Helen of Troy (HELE) beats by $0.16, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Myriad Genetics (MYGN) sees Q3 revs above consensus; reaffirms FY24 revenue guidance
  • Osisko Gold Royalties (OR) announces prelim Q3 GEO deliveries of 18,408
  • Saratoga Investment (SAR) beats by $0.39, beats on revs
  • Taiwan Semiconductor Manufacturing (TSM) reports September 2024 revenue
  • Terreno Realty (TRNO) provides Q3 operations update
• General News
  • Israel attempted to assassinate a ranking Hezbollah official in airstrike, according to the New York Times
  • Investors continuing to lower expectations for China stimulus, according to Reuters
  • Category 5 Hurricane Milton is expected to make landfall in Florida tomorrow morning
  • B. Riley Financial (RILY): Bankers tighten oversight on RILY with weekly liquidity reports and deal updates amid cash-raising efforts, according to Bloomberg
  • Brazil Supreme Court lifts its ban on Elon Musk's X, according to The Brazilian Report
  • Aecom Tech (ACM) selected as designers to support major capital project delivery for Southern Water
  • Airbus (EADSY) reports September 2024 deliveries of 50 aircraft
  • Alnylam Pharma (ALNY) submits sNDA to the FDA for Vutrisiran
  • Alphabet (GOOG): DOJ considering remedies for Google including possible breakup in antitrust case
  • Alphabet (GOOG) says "DOJ’s radical and sweeping proposals risk hurting consumers, businesses, and developers"
  • Amazon (AMZN): New AI tech in Amazon vans spotlights packages to save drivers effort and time
  • Amazon (AMZN) is offering more choices while making grocery shopping faster and easier
  • Amazon (AMZN) Pharmacy plans to expand same-day delivery of medications to nearly half the US in 2025
  • Amer Sports (AS) provides business update
  • Anterix (ATEX) appoints Scott Lang as President and CEO, effective Nov 1
  • Astera Labs (ALAB) announces new portfolio of fabric switches for AI workloads in accelerated computing platforms
  • Bentley Systems (BSY) announces partnership with Google (GOOG) to integrate Google’s high-quality geospatial content with Bentley’s infrastructure engineering software and digital twin platform to improve the way infrastructure is designed, built, and operated
  • Biogen (BIIB) receives FDA Breakthrough Therapy Designation for Felzartamab
  • BlackRock (BLK) mulling purchase of HPS Investment Partners, according to Bloomberg
  • Block (SQ): Square launches Orders platform
  • Boeing (BA): S&P places Boeing Co. ratings, including its 'BBB-' issuer credit rating, on CreditWatch Negative on strike-related financial risk
  • Boeing (BA) says further negotiations with union do not make sense at this point and our offer has been withdrawn
  • Boeing (BA) mulling options to raise billions through stock sale, according to Reuters
  • Braskem SA (BAK) affirms spot purchase and sale agreement with Petrobras (PBR)
  • Brookdale Senior Living (BKD) reports consolidated occupancy for September 2024; Weighted average occupancy increased 30 basis points sequentially to 79.2%, while month end occupancy grew to 80.5%
  • BWX Technologies (BWXT) Nuclear Fuel Services subsidiary selected by the U.S. Department of Energy as one of the successful bidders for High-Assay Low-Enriched Uranium (HALEU) deconversion services
  • Canadian Nat'l Rail (CNI): Unifor opens bargaining with CPKC, addresses critical issues affecting workers
  • Castle Biosciences (CSTL): New Prospective, Multicenter Study Presented at SMR Demonstrates Castle Biosciences’ DecisionDx-Melanoma Test Provides Significant Risk Prediction for Patients with Cutaneous Melanoma
  • Centrus Energy's (LEU) subsidiary, American Centrifuge Operating, won an award from the U.S. Department of Energy to support deployment of technology and equipment to deconvert High-Assay, Low-Enriched Uranium from uranium hexafluoride to uranium oxide and/or uranium metal forms, a key step in the nuclear fuel production process
  • Chanson Int'l Holding (CHSN) received an information request from The Nasdaq; Company has not participated in any price manipulation activity and will fully cooperate
  • Civista Bancshares (CIVB) files $200 mln mixed securities shelf offering
  • Clearside Biomedical (CLSD) announces positive topline results from ODYSSEY phase 2b trial of suprachoroidal cls-ax in wet amd achieving all primary and secondary outcomes
  • Cohen & Steers (CNS) reports preliminary assets under management of $91.8 billion as of September 30, an increase of $3.7 billion from assets under management of $88.1 billion at August 31
  • Cracker Barrel Old Country Store (CBRL) files definitive proxy materials and sends letter to shareholders
  • Crocs (CROX) confirms actions for widely requested fan-requested creations
  • CVS (CVS) wants FTC Chair Lina Khan off drug case, according to CNBC
  • Delta Air Lines (DAL) waives fare-differences; caps fares for new bookings ahead of Hurricane Milton
  • Dyne Therapeutics (DYN) Presents Data at World Muscle Society Congress Highlighting Promise of FORCE™ Platform to Address Underlying Causes of Neuromuscular Diseases
  • Edison (EIX) unit confirmed yesterday plans to seek rate recovery of $5.4 billion of prudently incurred losses related to the Woolsey Fire
  • e.l.f. Beauty (ELF) expands into Mexico this October, marking its first time in Sephora anywhere
  • Emergent BioSolutions (EBS) Demonstrates Commitment to Increasing Access & Awareness of NARCAN® Nasal Spray to Help Combat the Opioid Epidemic
  • Entrada Therapeutics (TRDA) Presents New Data Supporting its Expanding Duchenne Franchise at the 29th Annual Congress of the World Muscle Society
  • Equifax (EFX) expanded its partnership with Google Cloud; customers able to search anonymized Equifax datasets on Google Cloud Marketplace
  • Equity Bancshares (EQBK) approved a share repurchase plan for up to 1,000,000 shares of outstanding common stock beginning on October 1, 2024, and concluding on September 30, 2025
  • General Dynamics (GD) awarded $878 mln U.S. Navy contract modification; also awarded $350 mln U.S. Navy contract modification
  • GlaxoSmithKline (GSK) reports Zantac (ranitidine) litigation - settlement agreements reached; GSK to resolve 93% (~80K cases) of U.S. state court Zantac product liability cases for up to $2.2 bln
  • Granite Constr (GVA) announces signing of a $34 mln contract to implement seismic improvements to the Oakland International Airport
  • Hope Bancorp (HOPE): Blue Hill advisors and investors reiterate superior proposal for Territorial Bancorp and refute Territorial's assertions
  • Huntington Ingalls (HII) announces that its Mission Technologies division was awarded a $75 mln task order to provide systems engineering support for integrated training systems used onboard ships to enhance combat preparedness for sailors
  • Huntington Ingalls (HII) is awarded CHIPS and Science Act Microelectronics Technical Project
  • Illumina (ILMN) unveils its MiSeq i100 Series of sequencing systems, delivering unparalleled benchtop speed and simplicity to advance next-generation sequencing for labs
  • Insmed (INSM): New Subgroup analyses from landmark Phase 3 ASPEN study of Brensocatib in patients with bronchiectasis demonstrate consistency with positive overall trial population results
  • Invesco Mortgage Capital (IVR) appointed Mark Gregson as Interim Chief Financial Officer
  • Just Eat Takeaway (JTKWY) announces new global partnership with Rokt in which the company will launch a retail media offering on the order confirmation page across its portfolio brands' sites
  • Kymera Therapeutics (KYMR) receives FDA Clearance of Investigational New Drug Application for KT-621
  • L.B. Foster (FSTR) disclosed material weakness existed as of December 31, 2023
  • Marriott (MAR): FTC confirmed action against Marriott and Starwood (STWD) over multiple data breaches
  • Marti Technologies (MRT) announces amendment to extend its share repurchase program
  • Merck (MRK): New Data to be presented at IDWeek 2024 Reinforce Merck’s broad and diverse vaccines and infectious disease pipeline and portfolio
  • Meta Platforms (META) to open up access to Meta AI in more countries and languages throughout the rest of the year
  • Myriad Genetics (MYGN) Announces Five Research Collaborations to Study the Use of MRD Testing in Breast Cancer
  • Novavax's (NVAX) Updated 2024-2025 Nuvaxovid COVID-19 Vaccine Receives Authorization in the EU
  • Novonix Limited (NVX) and ICoNiChem to collaborate on sustainable cathode material feedstock
  • Olema Oncology (OLMA) Announces New Preclinical Combination Data to be Presented at the 2024 EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics
  • Pfizer (PFE) to Showcase Scientific Advancements in Respiratory and Other Infectious Diseases at IDWeek 2024
  • Pfizer (PFE): CEO Albert Bourla planning to meet activist investor Starboard Value, according to FT.com
  • Piedmont Lithium (PLL): Ewoyaa Lithium Project Receives Mine Operating Permit
  • PSE&G (PEG) rate case settlement approved
  • Rocket Companies (RKT) entered into a master repurchase agreement and master repurchase agreement renewal
  • Runway Growth Finance Corp. (RWAY) Provides Third Quarter 2024 Portfolio Update
  • Sana Biotechnology (SANA) disclosed appointment of acting principal financial officer
  • Seabridge Gold (SA) reported 'promising' results from drilling at Seabridge Gold's Iskut Project
  • ServiceNow (NOW) and Zoom (ZM) expand strategic alliance to usher in a new era of intelligence with smarter collaboration and peak productivity across the enterprise
  • Silvercorp Metals (SVM): SGX Mine permit has been renewed for another 11 years with an increased capacity of 500,000 tonnes per year
  • Stellantis (STLA) planning management changes, according to Bloomberg
  • StoneX Group (SNEX) announces that its subsidiary StoneX Metals has completed its acquisition of JBR’s precious metal recovery and refinery business
  • Surf Air Mobility (SRFM) confirmed it issued to Palantir Technologies (PLTR) an aggregate of 1,270,869 shares of the Company’s common stock for in-kind services worth $1.6 million
  • Tesla (TSLA) had 22,600 China registrations in late week of Q3, according to Teslarati
  • Tesla (TSLA) Robotaxi expected to have doors that open like butterfly wings at event tomorrow, according to Bloomberg
  • United Parks & Resorts Inc. (PRKS) names James Mikolaichik as CFO
  • Verisk Analytics (VRSK): The Extreme Event Solutions group estimates industry insured losses due to Hurricane Helene will range between $6-11 bln
  • Viasat (VSAT) announces a variety of enhancements to its satellite network and service model that will improve in-flight connectivity for business aviation
  • Viatris (VTRS) Announces Positive Top-line Results from Phase 3 Study of EFFEXOR in Japanese Adults with Generalized Anxiety Disorder
  • Viking Therapeutics (VIK) Announces Results from Phase 1b Clinical Trial of VK0214 in Patients with X-ALD
  • Walt Disney (DIS) to begin closing parks in Florida in phases on October 9
  • Walt Disney (DIS) increasing California theme park tickets by 6%, according to Bloomberg
  • Whitestone REIT (WSR): MCB Real Estate increases proposal to acquire Whitestone REIT to $15.00/share in cash and seeks board engagement
  • Worthington Enterprises (WOR) names Joseph Hayek as President and CEO, effective November 1; replacing Andy rose, who is retiring
  • Worthington Enterprises (WOR) names Colin Souza as its new CFO, effective November 1; succeeds Joseph Hayek, who was named incoming CEO
  • Zoom Video (ZM) unveiles new AI-first work platform innovations for Zoom Workplace and Zoom Business Services at Zoomtopia 2024

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

• Upgrades:
  • Affirm (AFRM) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $37
  • Home Depot (HD) upgraded to Buy from Hold at Loop Capital; tgt raised to $460
• Downgrades:
  • ArcBest (ARCB) downgraded to Peer Perform from Outperform at Wolfe Research
  • BP (BP) downgraded to Neutral from Outperform at Exane BNP Paribas
  • Blackstone (BX) downgraded to Neutral from Overweight at Piper Sandler; tgt $149
  • Ciena (CIEN) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt raised to $67
  • Commercial Metals (CMC) downgraded to Peer Perform from Outperform at Wolfe Research
  • FactSet (FDS) downgraded to Sell from Neutral at Redburn Atlantic; tgt lowered to $380
• Others:
  • AFC Gamma (AFCG) initiated with a Buy at Seaport Research Partners; tgt $13
  • Aflac (AFL) initiated with a Hold at TD Cowen; tgt $102
  • ArcBest (ARCB) initiated with a Neutral at Citigroup; tgt $111
  • Blue Bird (BLBD) initiated with a Buy at BTIG Research; tgt $55
  • Canadian Nat'l Rail (CNI) initiated with a Neutral at Citigroup; tgt $125
  • Canadian Pacific Kansas City Ltd. (CP) initiated with a Buy at Citigroup; tgt $97
  • C.H. Robinson (CHRW) initiated with a Neutral at Citigroup; tgt $115
  • Chewy (CHWY) initiated with a Buy at TD Cowen; tgt $38
  • Corebridge Financial (CRBG) initiated with a Buy at TD Cowen; tgt $35
  • Crocs (CROX) initiated with a Buy at Guggenheim; tgt $182
  • CSX (CSX) initiated with a Buy at Citigroup; tgt $42
  • Deckers Outdoor (DECK) initiated with a Neutral at Guggenheim
  • FedEx (FDX) initiated with a Buy at Citigroup; tgt $301
  • G-III Apparel (GIII) initiated with a Buy at Guggenheim; tgt $36
  • GitLab (GTLB) initiated with an Overweight at Morgan Stanley; tgt $70
  • Globe Life (GL) initiated with a Buy at TD Cowen; tgt $150
  • GXO Logistics (GXO) initiated with a Buy at Citigroup; tgt $60
  • Shift4 Payments (FOUR) initiated with an Overweight at Barclays; tgt $120

• Econ Data (Thursday):
  • 08:30 ET: Weekly Initial Jobless Claims (Briefing.com consensus 229K; prior 225K) and Continuing Jobless Claims (prior 1826K)
  • 08:30 ET: September CPI (Briefing.com consensus 0.1%; prior 0.2%) and core CPI (Briefing.com consensus 0.2%; prior 0.3%)
  • 10:30 ET: EIA Natural Gas Inventories (prior +55 bcf)
  • 14:00 ET: September Treasury Budget (prior -$380.1B)
• Treasury Auctions:
  • 13:00 ET: $22 bln 30-yr Treasury bond auction results
• Earnings:
  • Monday (Oct 7)
    • Pre-Market: None
    • After-Hours: NAPA
  • Tuesday (Oct 8)
    • Pre-Market: ACCD PEP
    • After-Hours: None
  • Wednesday (Oct 9)
    • Pre-Market: HELE
    • After-Hours: AZZ
  • Thursday (Oct 10)
    • Pre-Market: DAL DPZ NEOG TLRY
    • After-Hours: None
  • Friday (Oct 11)
    • Pre-Market: BLK BK FAST JPM WFC
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike