After Hours Report

The major indices registered gains at the start of this holiday-shortened week. The "Santa Claus rally" period (i.e. the last five trading days of the year and the first two trading days of the new year) begins tomorrow and usually leads to positive moves in equities. Today doesn't fall within the official Santa Claus rally, but many stocks finished higher.

The Dow Jones Industrial Average traded slightly lower than Friday's close through most of the session, but settled 0.2% higher. The S&P 500 (x%) and Nasdaq Composite (x%) traded above their prior closing levels through most of the session, bolstered by gains in mega cap and semiconductor-related names.

Qualcomm (QCOM 158.24, +5.35, +3.5%) was a winner from the chipmaker space after jurors found that the chip company didn't violate terms of its agreement covering Arm Holding's (ARM 126.87, -5.28, -4.0%) designs.

NVIDIA (NVDA 139.67, +4.97, +3.7%) and Broadcom (AVGO 232.35, +12.15, +5.5%) were also top performers from the semiconductor space, contributing to the 3.1% gain in the PHLX Semiconductor Index (SOX). 

Fellow mega cap Eli Lilly (LLY 796.28, +28.52, +3.7%) was another story stock after the FDA approved Zepbound (tirzepatide) as the first and only prescription medicine for moderate-to-severe obstructive sleep apnea in adults with obesity.

Eight of the S&P 500 sectors closed higher and three logged declines. LLY helped boost the health care sector (+1.0%) while gains in mega caps and semiconductor shares boosted the communication services (+1.4%) and information technology (+1.4%) sectors.

• Nasdaq Composite: +31.7% YTD
• S&P 500: +25.3% YTD
• Dow Jones Industrial Average: +13.8% YTD
• S&P Midcap 400: +12.7% YTD
• Russell 2000: +10.4% YTD

Reviewing today's economic data:

• November Durable Orders -1.1% (Briefing.com consensus -0.3%); Prior was revised to 0.8% from 0.2%, November Durable Goods -ex transportation -0.1% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%
  • The key takeaway from the report is that it showed a rebound in business spending in November, evidenced by a 0.7% increase in new orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- following a 0.1% decline in October.
• December Consumer Confidence 104.7 (Briefing.com consensus 113.5); Prior was revised to 112.8 from 111.7
  • The key takeaway from the report is that consumers were substantially less optimistic about future business conditions and incomes than they were last month.
• November New Home Sales 664K (Briefing.com consensus 670K); Prior was revised to 627K from 610K
  • The key takeaway from the report is that new home sales, which are tabulated when contracts are signed, increased in November with the help of lower selling prices that were needed to help offset affordability constraints driven by rising mortgage rates.

No US economic data of note tomorrow. 

Overseas:

• Europe: DAX -0.2%, FTSE +0.2%, CAC -0.0%
• Asia: Nikkei +1.2%, Hang Seng +0.8% Shanghai -0.5%

Commodities:

• Crude Oil -0.18 @ 69.25
• Nat Gas -0.08 @ 3.66
• Gold +16.30 @ 2628.10
• Silver +0.23 @ 30.21
• Copper -0.02 @ 4.09

After-Hours Spotlight:

• Avita Medical (RCEL) announces FDA approval for RECELL GO mini, optimizing treatment for smaller wounds... RCEL up 9.4%
• Limoneira (LMNR) misses by $0.02 (single est), beats on revs (two ests)... LMNR down 7.1%

Fair Value for Tuesday, Dec 24:

• S&P 500: 6,039
• Nasdaq 100: 21,764
• DJIA: 43,334

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

• Earnings/Guidance (Full Earnings Calendar):
  • Anavex Life Sciences (AVXL) Reports Fiscal 2024 Fourth Quarter Financial Results and Provides Business Update
  • Boston Beer Co (SAM) announces an amendment and restatement in its entirety of an existing production agreement with Rauch North America Inc.; Lowers GAAP EPS guidance as a result, but reaffirms Non-GAAP EPS and Depletions and Shipments guidance
  • CleanSpark (CLSK) exceeds 2024 year-end guidance of 37 EH/s and accelerates 2025 guidance
  • Genco Shipping & Trading (GNK) provides TCE estimate for Q4
  • Globalstar (GSAT) reaffirms FY24 revenue guidance (two estimates), issues inline FY25 revenue guidance (two estimates)
• General News
  • Congress passes bill to fund government through March 14, averting a government shutdown. Bill also contains $100 bln for disaster relief, according to the Washington Post
  • House Republicans plan on addressing debt ceiling next year through budget reconciliation process (which only requires 50 Senate votes). They plan on raising the debt limit by $1.5 trillion and making $2.5 trillion in spending cuts, according to Politico
  • House Minority Leader Hakeem Jeffries privately said that his party may engage with President-elect Trump's demand that the debt ceiling be abolished next year, according to Axios
  • PBM reforms were removed from government funding bill that passed, according to Stat News
  • Republican divisions on government funding plan could be predictive of future issues with passing tax legislation next year, according to the Wall Street Journal
  • China is preparing for showdown with President-elect Trump over tariffs and considering different retaliatory measures, according to the Wall Street Journal
  • China EV makers had smaller share of EU market amid tariffs, according to Bloomberg
  • President-elect Trump plans to withdraw US from World Health Organization, according to Financial Times
  • President-elect Trump suggested he will allow TikTok to stay around, according to Axios
  • President-elect Trump threatening to retake control of Panama Canel, according to Reuters
  • Fed Vice Chairman of Supervision Michael Barr was looking for legal advice against any attempts by President-elect Donald Trump to remove him, according to Reuters
  • 50 Liberal MPs want Prime Minister Justin Trudeau to step down, according to CBC
  • The Biden administration is considering exempting Mexico from solar tariffs, according to Bloomberg
  • President Biden takes action to protect american workers and businesses from China’s Unfair trade practices in the semiconductor sector
  • President-elect Trump nominated Stephen Miran to be the Chairman of the Council of Economic Advisers
  • Amazon (AMZN) Teamsters at the JFK8 warehouse in Staten Island will join the historic strike against the corporate giant
  • Alamo (AVXL) announces that the European Medicines Agency has accepted for review the Marketing Authorization Application for blarcamesine, an investigational drug for the treatment of Alzheimer’s disease
  • Altus Power (AMPS) follow up to report that TPG (TPG) is in discussions to acquire AMPS
  • ANSYS (ANSS): Synopsys (SNPS) acquisition of ANSS will get approved by EU, according to Rueters
  • Apple (AAPL) considers introducing smart lock devices for homes, according to Bloomberg
  • Arch Capital (ACGL) renews its $1 bln share repurchase authorization
  • Arrowhead (ARWR) has dosed the first subjects in a Phase 1/2a clinical trial of ARO-INHBE, the company’s investigational RNA interference therapeutic being developed as a potential treatment for obesity
  • AstraZeneca (AZN): Tagrisso approved in the EU for patients with unresectable EGFR-mutated lung cancer
  • Bank of America (BAC): OCC issues cease and desist order against Bank of America for BSA deficiencies
  • BeiGene (BGNE) to change Nasdaq ticker symbol to “ONC” on January 2
  • BNP Paribas (BNPQY) announces signing of the share purchase agreement for AXA Investment Managers by BNP Paribas Cardif
  • Boeing (BA) Chief Information Officer Susan Doniz will leave the company, according to Bloomberg
  • Bristol-Myers (BMY) receives European Commission approval for Opdivo
  • Bristol-Myers (BMY) announces positive topline results from two pivotal phase 3 trials evaluating sotyktu in Adults with Psoriatic Arthritis
  • Broadcom's (AVGO) VMware sued by Netflix (NFLX) over virtual machine patents, according to Reuters
  • Brookfield Infrastructure (BIP) announces closing date of reorganization
  • Canadian Nat'l Rail (CNI): Unifor members ratify agreement with CNI
  • Canadian Nat'l Rail (CNI) confirms ratification of new four-year collective agreements with Unifor, securing stable labor relations until 2028
  • Carlisle Cos (CSL) has entered into a definitive agreement to acquire Texas-based expanded polystyrene insulation manufacturer ThermaFoam
  • Castle Biosciences (CSTL) provides an update on its test currently in development for use in patients diagnosed with moderate-to-severe atopic dermatitis who are seeking systemic treatment
  • Cytokinetics (CYTK) announces that the EMA has validated its MAA for aficamten
  • Destination XL Group, Inc. (DXLG) confirms receipt of non-binding proposal from Fund 1 Investments, LLC
  • Eisai (ESAIY) and Fujirebio enter into memorandum of understanding for joint research and social implementation of blood-based biomarkers in the field of neurodegenerative diseases
  • Eli Lilly (LLY): FDA approves Zepbound (tirzepatide) as the first and only prescription medicine for moderate-to-severe obstructive sleep apnea in adults with obesity
  • Eli Lilly (LLY): FDA has revoked the Emergency Use Authorization for LLY's bebtelovimab
  • Eli Lilly (LLY) commends ITC ruling cracking down on the unlawful importation and sale of knock-off tirzepatide products that put Americans at risk
  • Enlight Renewable Energy Ltd. (ENLT) announces the financial close for project Roadrunner
  • Estee Lauder (EL) provides update on restructuring
  • First Busey Corp (BUSE) and Crossfit Bank (CFB) announce shareholder approvals of merger
  • Genasys (GNSS) provides calendar year end status report
  • General Dynamics (GD) awarded a $235.5 mln US Navy contract modification
  • Glaukos (GKOS) announces the submission of its New Drug Application to the U.S. FDA for Epioxa, its next-generation corneal cross-linking iLink therapy for the treatment of keratoconus, a progressive, sight-threatening corneal disease
  • GlaxoSmithKline (GSK): FDA has revoked the Emergency Use Authorization for GSK and Vir Biotechnology's (VIR) sotrovimab
  • Google (GOOG, GOOGL) proposes remedy to satisfy antitrust concerns over its search product, according to the New York Times
  • Google (GOOG:GOOGL): Japan finds that Google violated anti-monopoly laws regarding search, according to Nikkei
  • Hyliion (HYLN) awarded $6 million federal grant to advance methane emission reductions in the oil and gas industry
  • IAMGOLD (IAG) announces that the Company and its syndicate of lenders have executed an amendment to its existing secured revolving credit facility
  • ICL Group (ICL) announces appointment of Elad Aharonson as New President and Chief Executive Officer
  • Intel (INTC): Karma Automotive joins Intel Automotive to demonstrate how software defined vehicle architecture maximizes powertrain performance and efficiency
  • Intuitive Machines (LUNR) expands data transmission services for lunar and deep space missions; These contracts further position Intuitive Machines as a vital partner in supporting NASA’s missions to the Moon, and beyond
  • Lithium Americas (LAC) announces the closing of its previously announced joint venture with General Motors Holdings LLC to fund, develop, construct and operate Thacker Pass in Humboldt County, Nevada to supply battery-quality lithium carbonate for the North American critical minerals supply chain
  • Lockheed Martin (LMT) awarded a not-to-exceed $11.76 bln modification to a previously awarded US Navy contract; Also awarded a $198 mln US Navy contract
  • L'Oreal (LRLCY) acquires Korean skincare brand, Dr.G
  • Marriott (MAR) signs agreement with Xiamen to introduce The Ritz-Carlton to Xiamen Island in Fujian Province
  • Meta Platforms (META) aiming to add displays to its Ray Ban smart glasses in 2025, according to Financial Times
  • MetLife's (MET) institutional asset management business, MetLife Investment Management, has reached a definitive agreement to acquire PineBridge Investments from the Pacific Century Group
  • Microsoft (MSFT) aiming to add non-OpenAI models into Copilot products, according to Reuters
  • Navient (NAVI) to sell Government services business to Gallant Capita
  • NIO (NIO) ET9 officially launched, and the firefly brand unveiled
  • Nordstrom (JWN) to be acquired by Nordstrom Family and Liverpool (ELPQF) for $24.25/share
  • Novo Nordisk A/S (NVO): FDA approves Alhemo injection as once-daily prophylactic treatment to prevent or reduce the frequency of bleeding episodes for adults and children 12 years of age and older with hemophilia A or B with inhibitors
  • Palantir (PLTR) and others to form a consortium that will jointly bid for defense contracts, according to Financial Times
  • Palladyne AI (PDYN) announced that its Palladyne Pilot AI software platform has achieved a key developmental mileston
  • Palmer Square Capital BDC (PSBD) announces fourth quarter 2024 supplemental dividend of $0.06/share
  • Petrobras (PBR) informs about termination of divestment contract for Uruguá and Tambaú fields
  • Procaps Group (PROC): Patricio Vargas will transition from his role as CFO
  • Protalix BioTherapeutics (PLX) issues 2025 letter to stockholders
  • Puma Biotech's (PBYI) NERLYNX included in NCCN clinical practice guidelines for the treatment of cervical cancer with a HER2 mutation
  • Qualcomm (QCOM): Jurors found that chip company didn't violate terms of agreement covering Arm Holding's (ARM) designs, according to Bloomberg
  • Qualcomm (QCOM) issues statement on trial verdict win
  • Regeneron Pharma (REGN): FDA has revoked the Emergency Use Authorization for REGN's REGEN-COV
  • Renovaro BioSciences (RENB) announces its subsidiary RenovaroCube together with its consortium partners Flomics Biotech, Uppsala Universitet and Oncodia, received grant funding approval for the Lumina project from the Eurostars funding program after review by an independent expert panel
  • Rigetti Computing (RGTI) launches 84-Qubit Ankaa-3 System; achieves 99.5% median two-qubit gate fidelity milestone
  • Rocket Companies (RKT): Earlier, CFPB filed suit to stop illegal kickback scheme to steer borrowers to Rocket Mortgage
  • Rogers Comms (RCI): Canadian Competition Bureau sues Rogers for allegedly misleading claims about unlimited data
  • Rolls Royce PLC (RYCEY) awarded a $1.43 bln contract modification to a previously awarded US Air Force contract
  • Rolls Royce PLC (RYCEY): Eurojet signs contract to provide 59 engines to the Spanish Air Force Eurofighter Fleet
  • RTX (RTX) awarded a $191 mln max value Missile Defense Agency contract
  • SJW (SJW) announces that the California Public Utilities Commission approved the General Rate Case for its wholly-owned subsidiary, San Jose Water Company
  • Starbucks (SBUX) Workers United adds cities to holiday strike
  • Stellantis (STLA) reversed Ohio layoff decision, according to Reuters
  • Talen Energy (TLN) statement on FERC order deferring its request for rehearing of Susquehanna ISA
  • Telomir Pharmaceuticals (TELO) discloses significant findings from preclinical studies of its lead compound, Telomir-1, demonstrating strong copper-binding properties
  • Thomson Reuters (TRI) and The Woodbridge Company Limited, a Thomson Reuters' principal shareholder, announce that W. Edmund Clark, C.M. will complete his service on the Thomson Reuters board at the upcoming annual meeting of shareholders to be held in 2025
  • Universal Music Group N.V. (UMGNF) & Amazon (AMZN) Music expand global partnership
  • USANA (USNA) announces its acquisition of a 78.8% controlling ownership stake in Hiya Health Products
  • Viasat (VSAT): NASA selects four commercial companies to support near space network
  • Vinci SA (VCISY) awarded a contract to upgrade and extend wastewater treatment facilities in Canberra, Australia
  • Walmart (WMT): CFPB sues Walmart and branch messenger for illegally opening deposit accounts for more than one million delivery driver
  • Wave Life Sciences (WVE) announces the submission of its first clinical trial application for WVE-007 in obesity
  • WiMi Hologram Cloud (WIMI) announces the development of an innovative solution: Machine Learning-based Quantum Error Suppression Technology
  • XBiotech (XBIT) announces that it is halting its clinical program in rheumatological disease while it seeks to understand the outcome from its recently completed Phase II, Double-Blind, Placebo-Controlled, Randomized study in Rheumatoid Arthritis

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

• Upgrades:
  • Aclaris Therapeutics (ACRS) upgraded to Buy from Neutral at H.C. Wainwright; tgt $20
  • GCM Grosvenor (GCMG) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $14
  • PotlatchDeltic (PCH) upgraded to Outperform from Mkt Perform at Raymond James; tgt $45
  • Weyerhaeuser (WY) upgraded to Outperform from Mkt Perform at Raymond James; tgt $32E
• Downgrades:
  • Applied Therapeutics (APLT) downgraded to Mkt Perform from Outperform at William Blair
  • Innovative Industrial Properties (IIPR) downgraded to Neutral from Buy at BTIG Research
  • Mesoblast (MESO) downgraded to Hold from Buy at Jefferies
• Others:
  • enGene Holdings (ENGN) initiated with a Buy at H.C. Wainwright; tgt $25
  • Exelixis (EXEL) initiated with a Buy at Brookline
  • Miniso Group (MNSO) initiated with a Buy at 86Research
  • NCR Atleos (NATL) initiated with a Buy at Compass Point; tgt $57
  • Omeros (OMER) initiated with a Buy at D. Boral Capital; tgt $36
  • Pony AI (PONY) initiated with a Buy at Goldman; tgt $19.60
  • Smtek (SMTI) initiated with a Buy at H.C. Wainwright; tgt $50

• Econ Data (Tuesday):
  • 13:00 ET: NYSE early close
  • 14:00 ET: Treasury market early close
• Treasury Auctions:
  • 11:30 ET: $70 bln 5-yr Treasury note auction results
• Earnings:
  • Monday (Dec 23)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Dec 24)
    • Pre-Market: None
    • After-Hours: None
  • Wednesday (Dec 25)
    • Market closed for Christmas Day
  • Thursday (Dec 26)
    • Pre-Market: None
    • After-Hours: None
  • Friday (Dec 27)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike