After Hours Report

The S&P 500 (+0.2%) and Nasdaq Composite (+1.0%) started December with record highs while the Dow Jones Industrial Average declined 0.3%. The mixed action at the index level reflected a lack of strong conviction on either side of the tape. Decliners led advancers by a 4-to-3 margin at the NYSE, but advancers had an 11-to-10 lead over decliners at the Nasdaq.

Gains in chipmakers, which responded to better-than-feared export restrictions on semiconductors and semiconductor equipment to China, and in mega caps propelled the S&P 500 and Nasdaq Composite higher. 

This price action also drove the S&P 500 communication services (+1.5%), consumer discretionary (+1.1%), and information technology (+1.0%) sectors to close higher while the remaining eight sectors registered losses ranging from 0.1% (consumer staples) to 2.1% (utilities). 

Intel (INTC 23.93, -0.12, -0.5%) was a story stock from the semiconductor space, initially trading up as much as 5.9% before closing lower following news that CEO Pat Gelsinger is out and the company will be led by interim co-CEOs until a new CEO is hired.

The market received news of further developments in the Middle East, but stocks, bonds, and commodities didn't react much. President-elect Trump warned in a Truth Social post of consequences if Middle East hostages are not released. Also, The New York Times reported that Israel and Hezbollah have traded fire with both sides accusing the other of violating the ceasefire deal.

Treasuries, which can benefit from safe-haven buying during geopolitical tension, settled with losses, leaving the 10-yr yield two basis points higher at 4.20%. Oil prices, which can increase when worries about supply chain disruptions are piqued, settled little changed from Friday ($68.07/bbl, +$0.18, +0.3%). 

The S&P 500 and Nasdaq Composite remained near session highs following the headlines. 

There was also some Fedspeak in the mix today, but the equity market didn't react much to that, either. Atlanta Fed President Bostic (FOMC voter) said in a speech that "conditions on both sides of the Fed's mandate appear to be broadly healthy" and Fed Governor Waller said he is leaning toward supporting a cut to the policy rate at the December FOMC meeting. 

The fed funds futures market did react to this, pricing in a 79.0% probability of a 25 basis points rate cut at the December FOMC meeting, up from 66.0% one day ago and 52.3% a week ago, according to the CME FedWatch Tool. 

Separately, the dollar built up strength today, leading the US Dollar Index to move 0.7% higher to 106.46. This move relates to President-elect Trump saying he would impose 100% tariffs on countries moving away from the dollar as the world's reserve currency.

• Nasdaq Composite: +29.3%
• S&P 500: +26.8%
• S&P Midcap 400: +20.7%
• Russell 2000: +20.1%
• Dow Jones Industrial Average: +18.8%

Reviewing today's economic data:

• November S&P Global US Manufacturing PMI - Final 49.7; Prior 48.5
• November ISM Manufacturing Index 48.4% (Briefing.com consensus 47.6%); Prior 46.5%
  • The key takeaway from the report is that manufacturing sector activity overall continues to be weak, but showed a green shoot with the new orders index returning to expansion territory after seven straight months of contraction.
• October Construction Spending 0.4% (Briefing.com consensus 0.1%); Prior 0.1%
  • The key takeaway from the report is that residential construction activity rebounded nicely, led by single family construction.

Looking ahead, Tuesday's economic data is limited to the October JOLTS Jobs Openings report at 10:00 ET.

Overseas:

• Europe: DAX +1.4%, FTSE +0.3%, CAC +0.0%
• Asia: Nikkei +0.9%, Hang Seng +0.7% Shanghai +1.1%

Commodities:

• Crude Oil +0.18 @ 68.07
• Nat Gas -0.13 @ 3.23
• Gold -20.90 @ 2658.20
• Silver -0.21 @ 30.89
• Copper -0.01 @ 4.13

After-Hours Spotlight:

• Bill.com (BILL) to offer $1.0 bln aggregate principal amount of convertible senior notes due 2030... BILL down 2.5%
• Credo Technology Group (CRDO) beats by $0.02, beats on revs; guides Q3 revs above consensus... CRDO up 32.7%
• Honeywell (HON) signs deal with Bombardier, also lowers Q4 guidance... HON down 3.1%
• Janux Therapeutics (JANX) doses selected for Phase 1b expansion trials supported by encouraging efficacy and safety profile observed in Phase 1a Dose Escalation for JANX007 in mCRPC... JANX up 56.8%
• Microchip (MCHP) expects Q3 (Dec) revs closer to lower end of previous guidance; announces manufacturing restructuring plans... MCHP down 3.6%
• Zscaler (ZS) beats by $0.14, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY25 EPS above consensus, revs above consensus... ZS down 5.6%

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

• Earnings/Guidance (Full Earnings Calendar):
  • ASML (ASML) expects impact of updated export restrictions to fall within outlook for 2025
  • Bumble Inc. (BMBL) announces that Anu Subramanian will resign as Chief Financial Officer to pursue opportunities; reaffirms FY24 guidance
  • BW LPG Ltd (BWLP) reports Q3 results
  • Li Auto (LI) reports November deliveries increased 18.8% yr/yr
  • Lightspeed (LSPD) commences strategic reorganization; reaffirms FY25 outlook
  • Marti Technologies (MRT) expects to reach positive free cash flow in 2025
  • NIO (NIO) reports November deliveries increased 28.9% yr/yr
  • PG&E (PCG) reaffirms FY24 EPS and FY25 EPS guidance
  • TreeHouse Foods (THS) announces acquisition of Harris Tea for approximately $205 million; reaffirms FY24 guidance
  • WeRide (WRD) reports Q3 results
  • XPeng (XPEV) reports November deliveries increased 54% yr/yr
  • ZEEKR Intelligent Technology Holding Limited (ZK) reports November deliveries increased 85% yr/yr
• General News
  • President-elect Trump threatened 100% tariffs on exports from BRICS countries if they move away from US dollar as world reserve currency
  • Ukrainian president Volodymyr Zelensky is open to ceasefire if NATO protects unoccupied territories, according to Bloomberg
  • US will begin curbs on Chinese semiconductor exports today, according to Reuters
  • France no-confidence vote could occur as soon as Wednesday, according to Bloomberg
  • Canadian Prime Minister Justin Trudeau promised President-elect Trump tougher border controls following meeting and tariff threats, according to Reuters
  • Australia proposed new law that would fine large technology firms over digital competition, according to Reuters
  • House Republicans plan to use budget reconciliation process next year to pass tax cuts, repeal green energy subsidies, pass immigration enforcement funding, and lower other funding. Republicans plan to start reconciliation process before President-elect Trump takes office, according to NBC News
  • Mexico's President Claudia Sheinbaum says she is confident she can reach a deal with President-elect Trump to avoid tariffs, according to Bloomberg
  • President-elect Trump will appoint Kashyap Patel to serve as the next Director of the FBI
  • Mastercard SpendingPulse says US Black Friday retail sales were +3.4% vs. last year
  • White House issues statement by NSC Spokesperson Sean Savett on Syria
  • Macau Gaming Inspection and Coordination Bureau reported November gross revs +14.9 yr/yr to HKD 18.44 bln versus +435% in November of 2023
  • 3,087,393 passengers went through TSA checkpoints on Sunday, a new record
  • President-elect Trump warns of consequences if Middle East hostages are not released by January 20, 2025
  • Adobe (ADBE) announces the appointment of Lara Balazs as Chief Marketing Officer, reporting directly to CEO Shantanu Narayen
  • Agora (API) enters voluntary lock-ups by senior management
  • Alcoa (AA) voluntarily repaid all accrued and unpaid amounts outstanding under the facility
  • Altria (MO): Supreme Court will hear case on vaping products today, according to ABC News
  • Amazon (AMZN): AWS announces new data center components to support AI innovation and further improve energy efficiency
  • AMC Entertainment (AMC) set several company records during 5-day Thanksgiving holiday period
  • Anheuser-Busch InBev (BUD) announces a new $10 million investment in its Jacksonville brewery
  • Arthur J. Gallagher (AJG) announces the acquisition of Lambton, New South Wales-based Hann Insurance Brokers Pty Ltd, financial terms were not disclosed
  • Autolus Therapeutics (AUTL) announces publication of data from the FELIX study of obe-cel in r/r Adult B-ALL patients in The New England Journal of Medicine
  • AVANGRID (AGR) and Portland General Electric (POR) sign a Power Purchase Agreement for Tower Solar, a new 120 MWac solar energy project now under construction in Morrow County, Oregon, in collaboration with QTS and Meta (META)
  • B2Gold (BTG) continuing to operate at Fekola Mine Despite temporary labour action; implementation of MOU with state of mali continues
  • Baidu (BIDU) secured license to test self driving cars in Hong Kong, according to Reuters
  • Bitfarms (BITF) provides November 2024 production and operations update
  • BitFuFu (FUFU) enhances one-click mining user experience with upgraded website and mobile app
  • Blackstone (BX) announced three appointments to key firmwide roles and the creation of two new functions to enhance client coverage and capital raising
  • Bowlero (BOWL) will be rebranding to Lucky Strike Entertainment, effective December 12, 2024
  • Braskem SA (BAK) confirms it is evaluating certain structures and functions of the Company's management
  • Bread Financial (BFH) announces $25 million increase to 2024 share repurchase program
  • Carrier Global (CARR) has completed the sale of its Commercial and Residential Fire business to an affiliate of Lone Star Funds for an enterprise value of $3 bln
  • CDW (CDW) has acquired Mission Cloud Services Inc., financial terms were not disclosed
  • Coinbase Global (COIN) announces the launch of Apple Pay (AAPL) for all fiat-to-crypto purchases via Coinbase Onramp
  • Corpay (CPAY): PDI Technologies announces its acquisition of the Comdata Merchant Solutions business from Comdata's parent company, Corpay Inc.
  • CVS Health (CVS) speaking with investors about selling bonds, according to Bloomberg
  • Cytokinetics (CYTK) announces FDA acceptance of new drug application for Aficamten for the treatment of obstructive hypertrophic cardiomyopathy
  • Delcath (DCTH) announces that the U.S. FDA has completed its 30-day review of the Company's Investigational New Drug application for a Phase 2 clinical trial evaluating HEPZATO in combination with standard of care for liver-dominant metastatic colorectal cancer
  • Diana Shipping (DSX) commences self tender offer to purchase up to 15 mln shares
  • Diana Shipping (DSX) announces that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Bunge SA, Geneva, for one of its Ultramax dry bulk vessels, the m/v DSI Aquarius
  • Ecopetrol (EC) expected to invest between COP24-28 tln in 2025; announces decisions of the Board of Directors
  • Ecovyst (ECVT) commences strategic review of its Advanced Materials & Catalysts Business Unit
  • H.B. Fuller (FUL) announces that it will reorganize the building and construction segments of its portfolio to create a faster growing solutions business with a complementary customer base across the architectural and infrastructure markets
  • Hafnia Limited (HAFN) launches share buy-back program
  • Hologic (HOLX) presents new research demonstrating how its breast imaging AI solution performs similarly across diverse populations
  • HSBC (HSBC) begins search for new Chairman, according to Sky News
  • ICL Group (ICL) signed framework agreements for supply of potash with its customers in China for the next three years
  • Intel (INTC) CEO Pat Gelsinger was forced out because Board was frustrated, according to Bloomberg
  • Interactive Brokers (IBKR) reports its Electronic Brokerage monthly performance metrics for November; DARTs +74% yr/yr to 3.306 mln
  • Iris Energy (IREN) increased its installed self-mining capacity by 33% to 28 EH/s; On-track for 31 EH/s this month
  • Kulicke & Soffa (KLIC) completes share repurchase program; initiates new $300 million share repurchase program
  • Lightspeed (LSPD) commences strategic reorganization; reaffirms FY25 outlook
  • Limbach (LMB) acquires Consolidated Mechanical for an initial purchase price of $23 mln
  • Lockheed Martin (LMT): State Department has made a determination approving a possible Foreign Military Sale to the Government of India of MH-60R Multi-Mission Helicopter Equipment and Follow-on Support and related equipment for an estimated cost of $1.17 billion
  • MARA (MARA) announces bitcoin production and mining operation updates for November 2024
  • Marvell (MRVL) entered into a warrant and related transaction agreement in connection with Amazon Web Services news
  • Marvell (MRVL) expands strategic collaboration with Amazon's (AMZN) AWS to enable accelerated infrastructure for AI in the cloud
  • Massimo Group (MAMO) announces that the Company's marine division, Massimo Marine, entered into a partnership with Vision Marine Technologies Inc (VMAR)
  • Maxeon Solar (MAXN) discloses it filed a joint voluntary notice with the Committee on Foreign Investment in the United States in connection with TZE’s planned indirect investment into the company
  • Merus (MRUS) Announces Publication of an Abstract on Petosemtamab as 2L+ treatment of r/m HNSCC at the ESMO Asia Congress 2024
  • Merus (MRUS) and Partner Therapeutics have entered into an agreement in which Merus has exclusively licensed to PTx the right to commercialize zenocutuzumab for the treatment of NRG1 fusion-positive cancer in the United States
  • Millicom International Cellular (TIGO) confirmed plans to consolidate listing of shares on NASDAQ U.S. by delisting SDRs from Nasdaq Stockholm and resumes shareholder remuneration
  • MongoD (MDB) announces expansion of the mongodb AI applications program
  • Nebius Group N.V. (NBIS) has entered into definitive agreements for a $700 mln private placement financing from a select group of institutional and accredited investors, including participation from Accel, NVIDIA (NVDA), and certain accounts managed by Orbis Investments
  • New Found Gold (NFGC) intersects 455 G/T AU OVER 4.1M, 148 G/T AU OVER 7.0M AND 58.6 G/T AU OVER 11.6M AT Keats with Phase II Trench channel samples
  • Nordic American Tanker (NAT) announces that Non-Executive Vice Chairman of NAT, Alexander Hansson, has today bought 350,000 shares at $2.6471/share; He is now holding 3,550,000 shares
  • NovoCure (NVCR) announce positive topline results from Phase 3 PANOVA-3 clinical trial of tumor treating fields therapy for pancreatic cancer
  • Olema Pharmaceuticals (OLMA) announces a new clinical trial collaboration and supply agreement with Novartis in frontline metastatic breast cancer
  • PPG Industries (PPG) completes the sale of 100% of its architectural coatings business in the U.S. and Canada at a transaction value of $550 million to American Industrial Partners, an industrials investor
  • PROS Holdings (PRO) announces the appointment of John Strosahl to its Board of Directors effective December 2, 2024
  • PTC Therapeutics (PTCT) Enters into a Global License and Collaboration Agreement with Novartis for PTC518 Huntington's Disease Program
  • Purple Biotech (PPBT) reports "positive" final results from the randomized Phase 2 study of its lead oncology drug, CM24, a humanized monoclonal antibody that blocks CEACAM1, in patients with pancreatic ductal adenocarcinoma
  • RadNet (RDNT): Siemens Healthineers and RadNet’s Wholly-Owned Subsidiary, DeepHealth, to Collaborate Around Elevating Ultrasound Workflows with AI-Powered SmartTechnology
  • Ready Capital (RC) and United Development Funding IV enter into a definitive merger agreement pursuant to which Ready Capital will acquire UDF IV
  • RedHill Biopharma (RDHL) has been awarded a judgment of approximately $8 million plus costs in a summary judgment by the New York Supreme Court in its legal proceedings against Kukbo Co. Ltd
  • Revolution Medicines (RVMD) provides clinical updates from its RAS inhibitor portfolio
  • Rigel Pharma (RIGL) announces that the U.S FDA has granted Fast Track designation to R289 for the treatment of patients with previously-treated transfusion dependent lower-risk myelodysplastic syndrome
  • RTX's (RTX) Collins Aerospace receives its fourth order for the Mounted Assured Positioning, Navigation and Timing Generation II systems, valued at $95 million
  • Sana Biotechnology (SANA) announces that the U.S. Food and Drug Administration granted Fast Track designation for SC291 in relapsed/refractory systemic lupus erythematosus, which includes extrarenal lupus and lupus nephritis
  • SEACOR Marine (SMHI) announces complete debt refinancing, newbuild orders, and vessel sales
  • Sleep Number (SNBR): Stadium Capital Management nominates four exceptionally qualified Director candidates to Sleep Number’s Board of Directors
  • Stellantis (STLA) CEO resigns; reaffirms guidance
  • Stellantis (STLA): Department of Energy announces conditional commitment to StarPlus Energy to construct lithium-ion battery factories in Indiana
  • Stellantis (STLA) confirms the process to appoint the new permanent Chief Executive Officer is well under way
  • Supermicro (SMCI) announces completion of review by independent special committee
  • Takeda Pharma (TAK) releases letter to shareholders ahead of R&D Day
  • Tesla (TSLA) and BYD (BYDYY) increasing China incentives, according to Bloomberg
  • Tiptree Financial (TIPT) has approved the declaration and distribution of a special cash dividend of $0.25/share
  • Toronto-Dominion Bank (TD) re-filed the plea agreements (with appendices) related to its U.S. Bank Secrecy Act and Anti-Money Laundering compliance programs on Nov 29
  • Tyson Foods (TSN) will close meat plant in Kansas, according to Reuters
  • UBS (UBS): Swiss Finance Minister Karin Keller-Sutter believes UBS capital requirements should be proportionate, according to Reuters
  • United Bankshares (UBSI) receives all requisite regulatory approvals for its proposed merger with Piedmont Bancorp
  • Volkswagen (VWAGY) workers in Germany plan to stage walkouts beginning today, according to Bloomberg
  • Walgreens Boots Alliance (WBA) Provides Notice of Pending and Proposed Settlement of Shareholder Derivative Action
  • Walt Disney (DIS) earned $221 mln for ‘Moana 2’ this weekend, according to CNBC
  • Walt Disney's (DIS) box office magic continues as "Moana 2" sets highest 5-day opening of all-time; After rallying by 14% since Q4 report on November 14, stock stuck in neutral today

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

• Upgrades:
  • Ares Capital (ARCC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $23
  • Embecta Corp. (EMBC) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $20
  • Globus Medical (GMED) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $100
  • Intuitive Surgical (ISRG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $650
  • LVMH (LVMUY) upgraded to Buy from Hold at HSBC Securities
  • NovoCure (NVCR) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $30
  • Paycor (PYCR) upgraded to Buy from Hold at TD Cowen; tgt raised to $22
  • Stryker (SYK) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $445
  • Tandem Diabetes Care (TNDM) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $45
• Downgrades:
  • AnaptysBio (ANAB) downgraded to Neutral from Buy at BTIG Research
  • Bausch + Lomb (BLCO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $19
  • Blackstone Secured Lending Fund (BXSL) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $29
  • Glaukos (GKOS) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $120
  • Kering SA (PPRUY) downgraded to Underweight from Neutral at JP Morgan
  • Kohl's (KSS) downgraded to Neutral from Buy at Guggenheim
  • Markel Group (MKL) downgraded to Hold from Buy at TD Cowen; tgt lowered to $1836
  • Nevro (NVRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $4
• Others:
  • Block (SQ) named new best idea for 2025 at Bernstein; tgt raised to $120
  • BrightView (BV) initiated with a Buy at BTIG Research; tgt $22
  • Dominion Energy (D) resumed with a Equal-Weight at Morgan Stanley; tgt $61
  • Elanco Animal Health (ELAN) initiated with a Market Perform at Leerink Partners; tgt $14
  • IDEXX Labs (IDXX) initiated with a Outperform at Leerink Partners; tgt $500
  • PROCEPT BioRobotics (PRCT) initiated with a Overweight at Morgan Stanley; tgt $105
  • Voyager Therapeutics (VYGR) initiated with a Buy at Citigroup; tgt $12
  • Zoetis (ZTS) initiated with a Outperform at Leerink Partners; tgt $215

• Econ Data (Tuesday):
  • 10:00 ET: October Job Openings (prior 7.443 mln)
• Earnings:
  • Monday (Dec 2)
    • Pre-Market: None
    • After-Hours: CRDO ZS
  • Tuesday (Dec 3)
    • Pre-Market: CNM DCI
    • After-Hours: BOX BASE MRVL OKTA CRM CURV PSTG
  • Wednesday (Dec 4)
    • Pre-Market: CPB CHWY DLTR FL HRL RY THO
    • After-Hours: AVAV AEO CHPT FIVE GEF NCNO PVH S CXM SNPS VRNT
  • Thursday (Dec 5 )
    • Pre-Market: CRMT BMO BF.B CAL CM CSIQ DG GMS KFY KR PDCO SAIC SIG TD WLY
    • After-Hours: AGX ASAN COO DOCU DOMO GTLB GWRE HCP HPE LULU WOOF RBRK IOT SMAR SWBI PATH ULTA VEEV VSCO ZUMZ
  • Friday (Nov 29)
    • Pre-Market: GCO
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike