After Hours Report

The stock market started this holiday-shortened week on an upbeat note, responding favorably to President-elect Trump’s nomination of Scott Bessent for Treasury Secretary. The Dow Jones Industrial Average (+1.0%), Russell 2000 (+1.5%), and S&P Mid Cap 400 (+1.5%) logged decent gains while the S&P 500 (+0.3%) and Nasdaq Composite (+0.3%) trailed their peers. 

The relative underperformance of the S&P 500 and Nasdaq Composite reflected some rotation out of influential names that are sitting on huge gains since the start of the year. NVIDIA (NVDA 136.02, -5.93, -4.2%), which is still 174.7% higher this year, and Tesla (TSLA 338.59, -13.97, -4.0%), which is up 36.3% in 2024, were among the key players in that regard. 

Mr. Trump's pick to lead the Department of the Treasury is perceived as "market-friendly" due to his background as a hedge fund manager, which fueled the overall upside bias in the equity market. According to The Wall Street Journal, Bessent has expressed his priority to advance the Trump administration tax-cut proposals. 

The bond market also rallied due to optimism that Mr. Bessent, while focusing on tax cuts, will also focus on reducing the national debt, cutting the budget deficit to 3% of GDP, and advocating for a more gradual approach to tariffs in order to prevent runaway inflation.

The 10-yr yield dropped 15 basis points to 4.27% and the 2-yr yield dropped ten basis points to 4.27%. Also, the U.S. Treasury kicked off this week's note auction slate with a stellar $69 billion 2-yr note offering. 

The everything rally in the stock market left nine of the S&P 500 sectors higher led by real estate (+1.3%), which reacted to the drop in rates. The consumer discretionary sector was the next best performer, gaining 1.0%.

The energy sector was the weakest performer, dropped 2.0% as oil prices slid following news that Israel and Hezbollah could be nearing a ceasefire agreement. WTI crude futures settled 3.3% lower at $68.93/bbl.

There was no US economic data of note. 

• Nasdaq Composite: +26.9%
• S&P 500: +25.5%
• S&P Midcap 400: +21.9%
• Russell 2000: +20.5%
• Dow Jones Industrial Average: +18.7%

Looking ahead, Tuesday's economic calendar features:

• 9:00 ET: September FHFA Housing Price Index (prior 0.3%) and September S&P Case-Shiller Home Price Index (Briefing.com consensus 4.7%; prior 5.2%)
• 10:00 ET: November Consumer Confidence (Briefing.com consensus 113.0; prior 108.7) and October New Home Sales (Briefing.com consensus 718,000; prior 738,000)

Overseas:

• Europe: DAX +0.5%, FTSE +0.4%, CAC +0.0%
• Asia: Nikkei +1.1%, Hang Seng -0.4% Shanghai -0.1%

Commodities:

• Crude Oil -2.35 @ 68.93
• Nat Gas +0.13 @ 3.43
• Gold -94.00 @ 2619.10
• Silver -1.09 @ 30.27
• Copper +0.01 @ 4.10

After-Hours Spotlight:

• Agilent (A) beats by $0.05, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs in-line... A down 1.5%
• Blue Bird (BLBD) beats by $0.12, beats on revs; guides FY25 revs in-line... BLBD down 8.3%
• Kohl's (KSS) CEO Tom Kingsbury to step down, effective January 15; Ashley Buchanan appointed as successor... KSS down 6.0%
• Leslie's (LESL) misses by $0.09, misses on revs; guides Q1 EPS below consensus, revs below consensus... LESL down 21.4%
• Semtech (SMTC) beats by $0.03, beats on revs; guides Q4 EPS above consensus, revs above consensus... SMTC up 12.9%
• Woodward (WWD) beats by $0.15, beats on revs; guides FY25 EPS in-line, revs in-line... WWD up 12.6%

Fair Value for Tuesday, Nov 26:

• S&P 500: 6,005
• Nasdaq 100: 20,872
• DJIA: 44,831

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

• Earnings/Guidance (Full Earnings Calendar):
  • Bath & Body Works (BBWI) beats by $0.02, beats on revs; guides Q4 EPS in-line, revs in-line
  • Diana Shipping (DSX) reports EPS in-line, beats on revs
  • Macy's (M) sees Q3 revs above consensus; to delay Q3 earnings release
  • Uxin (UXIN) Reports Unaudited Financial Results for the Quarter Ended September 30, 2024
• General News
  • Israel and Hezbollah nearing ceasefire agreement, according to Axios
  • Treasury Secretary nominee Scott Bessent's policy priority will be extending tax cuts. He will also focus on enacting tariffs, according to the Wall Street Journal
  • President-elect Trump's goal is to have all of his cabinet members announced by Thanksgiving as 59% of Americans approve of how he is handling the transition, according to CBS News
  • President-elect Trump will remove pause on LNG exports when he begins his term, according to Reuters
  • President-elect Trump nominates Scott Bessent as Treasury Secretary
  • President-elect Trump nominates Rep. Lori Chavez-DeRemer as Secretary of Labor
  • President-elect Trump nominates Dave Weldon as CDC Director
  • President-elect Trump nominates Dr. Marty Makary from Johns Hopkins for FDA Commissioner
  • "Wicked" and "‘Gladiator II" dominate the box office, according to the Wall Street Journal
  • TikTok contacted Elon Musk about incoming Trump administration, according to the Wall Street Journal
  • As many as 20% of GLP-1 users will not lose weight, according to AP
  • World nations support $300 bln climate deal at COP29, according to Reuters
  • Supreme Court will review FCC $8 bln phone subsidies, according to Bloomberg
  • White House issues statement from President Joe Biden on conclusion of COP29 conference in Baku, Azerbaijan
  • US believes ceasefire deal between Israel and Hezbollah has been reached, according to updated Axios story
  • DOJ files motion to dismiss election interference case against former President-elect Trump, as most analysts expected
  • DOJ moves to dismiss classified documents case against President-elect Trump, as most analysts expected
  • AGCO Corp (AGCO): TAFE submits proposal to separate Board Chair and CEO roles at AGCO’s 2025 annual meeting
  • Agilent (A) announces new organizational structure to support its market-focused strategy
  • Airbnb (ABNB) announces expanding Airbnb-friendly Real Estate: New opportunities for renters and homeowners
  • Alignment Healthcare (ALHC) announces that members enrolled in its HMO plans in Maricopa County now have access to over 4,500 primary care providers, specialists and hospitals, including more than a dozen Banner Health hospitals, through its partnership with Arizona Priority Care
  • Alnylam Pharma (ALNY) announces that the U.S. FDA has accepted for review the Company’s supplemental New Drug Application for vutrisiran, an investigational RNAi therapeutic in development for the treatment of ATTR amyloidosis with cardiomyopathy
  • Altria (MO): Supreme Court refused to block rule that required tobacco companies to post warning labels, according to Bloomberg
  • Amazon (AMZN) announces the Quantum Embark Program to help customers get ready for quantum computing
  • AMC Theatres’ (AMC) total revenue domestically on the pre-Thanksgiving weekend is the highest in AMC’s 104-year history
  • Apple (AAPL): India rejects Apple's request to halt antitrust trial, according to Reuters
  • Arrow Electronics (ARW) signs a new agreement with Broadcom (AVGO) for the distribution of VMware solutions in the U.S. and Canada
  • AstraZeneca (AZN) reports Truqap combination in PTEN-deficient metastatic hormone-sensitive prostate cancer demonstrated statistically significant and clinically meaningful improvement in radiographic progression-free survival in CAPItello-281 Phase III trial
  • AstraZeneca (AZN): TRUQAP combination in PTEN-deficient metastatic hormone-sensitive prostate cancer demonstrated statistically significant and clinically meaningful improvement in radiographic progression-free survival in CAPItello-281 Phase III trial
  • Barclays PLC (BCS): UK FCA fines Barclays £40 million
  • Berkshire Hathaway (BRK.A) announces that Warren Buffet will convert 1,600 A shares into 2,400,000 B shares in order to give these B shares to four family foundations
  • Bio-Techne (TECH): Gemini Bioproducts, LLC announces the acquisition of selected fetal bovine serum product rights and inventory from Bio-Techne
  • Biohaven (BHVN) Provides Update on Taldefgrobep Alfa Development Program for Spinal Muscular Atrophy and Obesity
  • Boeing (BA) awarded a $129 mln US Air Force contract for the F-15 Japan Super Interceptor program
  • Bombardier (BDRBF) Defense celebrated the delivery of the first Bombardier Global 6500 aircraft to the United States Army in support of the High Accuracy Detection and Exploitation System program
  • Brightcove (BCOV) enters into a definitive agreement to be acquired by Bending Spoons, in an all-cash transaction valued at ~ $233 million
  • BridgeBio Pharma (BBIO) reports Attruby (acoramidis), a Near Complete TTR Stabilizer (=90%), approved by FDA to Reduce Cardiovascular Death and Cardiovascular-related Hospitalization in ATTR-CM Patients
  • Cassava Sciences (SAVA) Topline Phase 3 Data Did Not Meet Co-Primary Endpoints
  • Chegg (CHGG) announces repurchase of 0% convertible senior notes due 2026
  • Cheniere Energy (LNG): Trump team plans to lift Biden-era natural gas export moratorium in early energy overhaul, according to Bloomberg
  • Comcast's (CMCSA) NBC will pay $60 mln for Macy's (M) Thanksgiving parade rights, according to WSJ
  • Eastman Kodak (KODK) discloses entry into a material definitive agreement
  • Edwards’ (EW) SAPIEN 3 Ultra RESILIA Valve Demonstrates Continued Excellent Outcomes for Patients in Real World Data
  • EQT Corp. (EQT) confirms $3.5 billion midstream joint venture with Blackstone (BX) Credit & Insurance
  • Freightos Limited (CRGO) CFO to step down to pursue another role
  • fuboTV (FUBO) and NBCUniversal announce the launch of 18 NBCU FAST channels that will bring popular and iconic sports, entertainment, news and Latino programming to the leading sports-first live TV streaming platform
  • GlaxoSmithKline (GSK) reports Blenrep combinations accepted for review by the US FDA for the treatment of relapsed/refractory multiple myeloma
  • Globus Medical (GMED) announces commercial launch of ExcelsiusHub navigation system
  • Goldman Sachs (GS) will write off almost $900 mln because of Northvolt investment, according to Financial Times
  • Graphjet Technology (GTI) receives ISO certifications for sustainable graphite and graphene production; strengthens IP position
  • Incyte (INCY) announces that the Company will present new data from across its oncology portfolio at the 2024 American Society of Hematology Annual Meeting in San Diego
  • Intel (INTC): The Biden administration plans to reduce Intel's chip subsidies to below $8 bln from $8.5 bln, according to the New York Times
  • Intellia Therapeutics (NTLA) announces that the U.S. FDA has granted Regenerative Medicine Advanced Therapy designation to nexiguran ziclumeran for the treatment of hereditary transthyretin amyloidosis with polyneuropathy
  • L3Harris (LHX) has received an indefinite delivery, indefinite quantity award from the U.S. Navy, worth up to $999 mln, to provide U.S. and coalition forces with resilient communications technology
  • Lockheed Martin (LMT) awarded a $870 mln US Navy contract
  • Merck (MRK) recommends rejection of TRC Capital’s “mini-tender” offer
  • Merck (MRK) announces pivotal phase 3 Zenith trial evaluating WINREVAIR met primary endpoint at interim analysis
  • Merit Medical’s (MMSI) WRAPSODY WAVE trial exceeds performance goals for Arteriovenous Graft (AVG) patients
  • Meta (META) losing users to BlueSky, according to Financial Times
  • Microsoft (MSFT) and LTIMindTree join forces to supercharge AI innovation and digital transformation for global enterprises
  • MicroStrategy (MSTR) discloses that during the period between November 18, 2024 and November 24, 2024, the Company acquired approximately 55,500 bitcoins for approximately $5.4 billion in cash, at an average price of approximately $97,862 per bitcoin
  • NANO Nuclear Energy (NNE) announces the execution of a definitive securities purchase agreement with three accredited institutional investors for a private placement which is expected to result in gross proceeds of ~$60 mln to NANO Nuclear
  • Newmont Corporation (NEM) sells Éléonore for $795 million in cash
  • NexPoint Diversified Real Estate Trust (NXDT) and NexPoint Hospitality Trust announced the execution of a definitive agreement on November 22, 2024, pursuant to which the REIT will be dissolved and its subsidiary entities merged with and into entities owned or controlled, directly or indirectly, by NXDT
  • Novartis (NVS) to report new 96-week results from Phase III Scemblix ASC4FIRST trial at ASH and late-breaking analysis from Phase III Kisqali NATALEE trial at SABCS
  • Novartis (NVS): Thousands of patients moving to copies of Wegovy, according to Reuters
  • Novo Nordisk A/S (NVO) agrees to acquire the Norwegian fish genetics company Benchmark Genetics from Benchmark Holdings plc for an enterprise value of up to £260 million
  • Novonix Limited (NVX) signs binding offtake agreement with PowerCo
  • Nu Holdings (NU) receives approval to consolidate its operations under a single company
  • Nvidia (NVDA) aiming to certify Samsung's (SSNLF) artificial intelligence memory chips, according to Bloomberg
  • O'Reilly Auto (ORLY) approves a resolution to increase share buyback authorization by $2 bln
  • Organogenesis (ORGO) announces plans to expand its manufacturing capacity with new long-term lease for biomanufacturing facility in Rhode Island
  • POET Technologies (POET) announces its intention to expand its optical engine production capacity in Malaysia
  • PPG Industries (PPG) completes the sale of its silicas products business for approximately $310 million in pre-tax proceeds to QEMETICA
  • Quantum-Si (QSI) announces organizational restructuring program, including workforce reduction
  • Roche Hldg (RHHBY) announces FDA approval for first companion diagnostic to identify patients with biliary tract cancer eligible for HER2-targeted treatment with ZIIHERA
  • RTX (RTX): Raytheon awarded a $439 mln modification to a previously awarded US Navy contract
  • Schneider National (SNDR) announces the company, through certain wholly owned subsidiaries, has entered into a definitive agreement to acquire Cowan Systems, LLC and affiliated entities, for a cash purchase price of ~$390 mln
  • Semler Scientific (SMLR) reports updated bitcoin and ATM activity; Company launches additional $50.0 mln ATM offering
  • Sony (SONY) aiming to develop portable console, according to Bloomberg
  • Southwest (LUV) struggling to adapt to changes in air travel, according to the New York Times
  • Stadium Capital Management (SNBR) issues letter to sleep number shareholders regarding the need for a reconstituted board and independent CEO search
  • Starbucks (SBUX) cuts use of hedges in coffee market, according to Financial Times
  • Starbucks (SBUX) ransomware attack is impacting scheduling, according to WSJ
  • Tesla (TSLA) settles technology theft lawsuit with Rivian (RIVN), according to Bloomberg
  • Tesla (TSLA): Judge rejects SEC bid to sanction Tesla CEO Elon Musk, according to Reuters
  • Tesla (TSLA): California will give rebates on EV purchases if President-elect Trump ends $7500 federal tax credit, according to NY Times
  • Tesla (TSLA): Environmental violations increasing at Tesla, according to the Wall Street Journal 
  • Thomson Reuters (TRI) announces they are testing a version of their CoCounsel GenAI assistant that employs a custom model built on OpenAI o1-mini, the AI pioneer's latest large language model, notable for its enhanced reasoning skills
  • TotalEnergies SE (TTE) issues statement on its investments related to Adani Group in India
  • UnitedHealth (UNH) appeal for new 'Star Rating' granted by a judge, according to Bloomberg Law
  • VEON (VEON) announces the consolidation of its share trading on the Nasdaq Capital Market in New York
  • Vertical Aerospace Group (EVTL) receives $50 million in new funding as part of $180 million transaction that will strengthen its financial position and advance its Flightpath 2030 Strategy
  • Vuzix (VUZI) announces the receipt of a six-figure revenue production order for customized waveguides to enable a lightweight heads-up display
  • YPF Soc. Anonima (YPF) aiming to merge LNG project of Pan American Energy Group, according to Bloomberg

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

• Upgrades:
  • Banco Santander Brasil (BSBR) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $6
  • Elastic (ESTC) upgraded to Outperform from Neutral at Wedbush; tgt $135
  • Equinor (EQNR) upgraded to Overweight from Equal Weight at Barclays
  • Jones Lang LaSalle (JLL) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $353
  • KinderCare Learning Companies (KLC) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $30
  • Procter & Gamble (PG) upgraded to Buy from Neutral at DA Davidson; tgt raised to $209
  • Robinhood Markets (HOOD) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $55
  • Sally Beauty (SBH) upgraded to Buy from Hold at TD Cowen; tgt raised to $16
  • Snowflake (SNOW) upgraded to Outperform from Neutral at Wedbush; tgt $190
  • Synchronoss Tech (SNCR) upgraded to Buy from Neutral at ROTH MKM; tgt raised to $13
  • The Trade Desk (TTD) upgraded to Neutral from Sell at New Street; tgt raised to $115
  • U.S. Bancorp (USB) upgraded to Buy from Neutral at Citigroup; tgt raised to $65
  • W.R. Berkley (WRB) upgraded to Buy from Neutral at Goldman; tgt $69
• Downgrades:
  • Arthur J. Gallagher (AJG) downgraded to Neutral from Buy at Goldman; tgt $313
  • Banco Bradesco (BBD) downgraded to Neutral from Overweight at JP Morgan
  • Block (SQ) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $100
  • Community Health (CYH) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $2.50
  • Despegar.com (DESP) downgraded to Sell from Buy at TD Cowen; tgt raised to $14
  • Eagle Materials (EXP) downgraded to Hold from Buy at Loop Capital; tgt $315
  • Editas Medicine (EDIT) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $1
  • Expensify (EXFY) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
  • Five Below (FIVE) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt lowered to $95
  • HCA (HCA) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $320
  • M&T Bank (MTB) downgraded to Neutral from Buy at Citigroup; tgt raised to $230
  • Mainz Biomed B.V. (MYNZ) downgraded to Neutral from Buy at H.C. Wainwright
  • Newmark Group (NMRK) downgraded to Peer Perform from Outperform at Wolfe Research
  • NIO (NIO) downgraded to Sell from Neutral at Goldman; tgt lowered to $3.90
  • Perspective Therapeutics (CATX) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $5
  • Red Rock Resorts (RRR) downgraded to Neutral from Outperform at Mizuho; tgt lowered to $44
  • Select Medical (SEM) downgraded to Hold from Buy at The Benchmark Company
  • Smith Douglas Homes Corp (SDHC) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $36
  • Tenet Healthcare (THC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $150
• Others:
  • AES (AES) resumed with an Underperform at BofA Securities; tgt $11
  • Apogee Therapeutics (APGE) initiated with a Buy at Canaccord Genuity; tgt $89
  • Arm Holdings plc (ARM) initiated with a Buy at UBS; tgt $160
  • Berry Global (BERY) resumed with an Overweight at JP Morgan; tgt raised to $76
  • Berry Global (BERY) resumed with a Neutral at Citigroup; tgt $76
  • Brown-Forman (BF.B) initiated with an Outperform at Exane BNP Paribas; tgt $48
  • Constellation Brands (STZ) initiated with a Neutral at Exane BNP Paribas; tgt $261
  • Coursera (COUR) initiated with a Neutral at JP Morgan; tgt $8
  • CSW Industrials (CSWI) initiated with an Equal Weight at Wells Fargo; tgt $425
  • Hannon Armstrong Sust. Infr. (HASI) resumed with a Buy at BofA Securities; tgt $40
  • Immunic (IMUX) initiated with a Buy at H.C. Wainwright; tgt $10
  • Manhattan Assoc (MANH) initiated with an Overweight at Piper Sandler; tgt $326
  • MARA Holdings Inc. (MARA) initiated with an Equal Weight at Barclays; tgt $27
  • Marsh McLennan (MMC) resumed with an Outperform at Evercore ISI; tgt $242
  • Molson Coors Brewing (TAP) initiated with a Neutral at Exane BNP Paribas; tgt $64
  • Sarepta Therapeutics (SRPT) initiated with a Sell at H.C. Wainwright; tgt $80
  • Shoals Technologies (SHLS) initiated with a Buy at BofA Securities; tgt $6
  • SPS Commerce (SPSC) initiated with a Neutral at Piper Sandler; tgt $198
  • SPX Technologies (SPXC) initiated with an Outperform at Wolfe Research; tgt $199
  • Viridian Therapeutics (VRDN) initiated with a Buy at TD Cowen
  • V2X (VVX) initiated with a Buy at BTIG Research; tgt $80

• Econ Data (Tuesday):
  • 9:00 ET: September FHFA Housing Price Index (prior 0.3%) and September S&P Case-Shiller Home Price Index (Briefing.com consensus 4.7%; prior 5.2%)
  • 10:00 ET: November Consumer Confidence (Briefing.com consensus 113.0; prior 108.7) and October New Home Sales (Briefing.com consensus 718,000; prior 738,000)
  • 14:00 ET: November FOMC Minutes
• Treasury Auctions:
  • 13:00 ET: $70 bln 5-yr Treasury note auction results
• Earnings:
  • Monday (Nov 25)
    • Pre-Market: BBWI DSX
    • After-Hours: A CENT ENTA FLNC LESL NJR SMTC WWD ZM
  • Tuesday (Nov 26)
    • Pre-Market: ANF AMWD ADI BBY BURL DKS EMBC SJM KSS M TITN
    • After-Hours: AMBA ARWR ADSK CRWD DELL GES HPQ NTXN URBN WDAY
  • Wednesday (Nov 27)
    • Pre-Market: FRO
    • After-Hours: None
  • Thursday (Nov 28)
    • Pre-Market: None
    • After-Hours: None
  • Friday (Nov 29)
    • Pre-Market:
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike