After Hours Report

The S&P 500 (+0.1%) and Nasdaq Composite (+0.4%) moved further into record territory. There wasn't a lot of conviction behind the upside moves, which were driven largely by mega cap gains, and the overall vibe in the market was more negative. The Dow Jones Industrial Average (-0.2%) settled slightly lower than yesterday while the Russell 2000 underperformed, dropping 0.7%.

Apple (AAPL 242.65, +3.06, +1.3%) and Meta Platforms (META 613.65, +20.82, +3.5%), which hit fresh 52-week highs, were top performers from the mega cap space, along with Amazon.com (AMZN 213.44, +2.73, +1.3%), NVIDIA (NVDA 140.26, +1.63, +1.2%), and Eli Lilly (LLY 813.33, +13.53, +1.7%).

Tesla (TSLA 351.42, -5.67, -1.6%) lagged its mega cap peers, settling lower in response to CEO Elon Musk's pay package getting rejected by a Delaware judge, according to Bloomberg, and after China-produced electric vehicle sales fell 4.3% in November, according to Reuters.

Gains in some of the aforementioned names propelled their respective S&P 500 sectors to close higher. The communication services (+1.1%), information technology (+0.6%), and consumer discretionary (+0.1%) sectors were alone in the green at the close while the remaining eight sectors registered losses ranging from 0.1% to 0.9%. 

Treasuries settled mixed, keeping buying in check in equities. The 10-yr yield, which hit 4.17% earlier, settled three basis points higher than yesterday at 4.22%. The increase in selling followed the JOLTS - Job openings report, which totaled 7.744 million in October, up from a revised count of 7.372 million in September (from 7.443 million). The 2-yr yield declined three basis points to 4.17%. 

• Nasdaq Composite: +29.8%
• S&P 500: +26.8%
• S&P Midcap 400: +20.4%
• Russell 2000: +19.2%
• Dow Jones Industrial Average: +18.6%

Wednesday's calendar features the following economic data: 

• 7:00 ET: Weekly MBA Mortgage Index (prior 6.3%)
• 8:15 ET: November ADP Employment Change (Briefing.com consensus 170,000; prior 233,000)
• 10:00 ET: November ISM Non-Manufacturing Index (Briefing.com consensus 55.5%; prior 56.0%)
• 10:30 ET: Weekly crude oil inventories (prior -1.84 mln)

Overseas:

• Europe: DAX +0.5%, FTSE +0.6%, CAC +0.3%
• Asia: Nikkei +1.8%, Hang Seng +1.0% Shanghai +0.4%

Commodities:

• Crude Oil +1.90 @ 69.97
• Nat Gas -0.19 @ 3.04
• Gold +9.40 @ 2667.60
• Silver +0.61 @ 31.50
• Copper +0.07 @ 4.20

After-Hours Spotlight:

• Box (BOX) beats by $0.03, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY25 EPS above consensus, revs in-line... BOX -2.2%
• Campbell Soup (CPB) beats by $0.02, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance; names new CEO; increases dividend... CPB -3.8%
• Couchbase (BASE) beats by $0.03, beats on revs; guides Q4 revs below consensus; guides FY25 revs in-line... BASE -13.0%
• Crescent Energy Company (CRGY) signs definitive agreement to acquire Eagle Ford assets from Ridgemar Energy for upfront consideration of $905 mln plus future oil price contingent consideration... CRGY -5.8%
• GXO Logistics (GXO) announces that CEO Malcom Wilson plans to retire in 2025; He will continue to lead the company during the executive search process for his successor... GXO -11.0%
• Intuitive Machines (LUNR) announces launch of $65 mln of public offering of its Class A common stock and concurrent private placement... LUNR -14.2%
• Janux Therapeutics (JANX) announces proposed public offering of $300 mln of its common shares... JANX +2.2%
• Marvell (MRVL) beats by $0.02, beats on revs; guides Q4 EPS above consensus, revs above consensus... MRVL +8.6%
• Okta (OKTA) beats by $0.09, beats on revs; guides Q4 EPS above consensus, revs above consensus... OKTA +17.6%
• Pure Storage (PSTG) beats by $0.09, beats on revs; guides Q4 revs above consensus... PSTG +25.8%
• Salesforce (CRM) misses by $0.03, reports revs in-line; guides Q4 EPS below consensus, revs in-line... CRM +6.4%
• UnitedHealth (UNH) guides FY25 EPS inline, revenue above consensus; Reaffirms FY24 EPS guidance... UNH -1.0%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Applied Materials (AMAT) reaffirms guidance for 1Q25 and provides statement regarding updated export regulations for semiconductor technology
  • ArcBest (ARCB) provides Q4 business trends update
  • AT&T (T) provides long-term guidance ahead of Analyst & Investor Day; raises FY24 EPS outlook; outlines capital allocation plan
  • Bank of Nova Scotia (BNS) misses by CAD0.03, misses on revs
  • CleanSpark (CLSK) reports FY24 results
  • Core & Main (CNM) beats by $0.04, beats on revs; raises FY25 revenue and adjusted EBITDA guidance
  • Credo Technology Group (CRDO) beats by $0.02, beats on revs; guides Q3 revs above consensus
  • Donaldson (DCI) beats by $0.01, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Enbridge (ENB) reaffirms FY24 guidance, expects to finish year near high end of EBITDA guidance range, issues guidance for FY25; Also announces 3% increase to annual dividend
  • Honeywell (HON) signs deal with Bombardier, also lowers Q4 guidance
  • KLA Corporation (KLAC) reaffirms guidance
  • Microchip (MCHP) expects Q3 (Dec) revs closer to lower end of previous guidance; announces manufacturing restructuring plans
  • Mirion Technologies (MIR) to detail financial targets and long-term strategy at today’s investor day; will also announce a share repurchase program for up to $100 million of the currently outstanding shares of the company’s Class A common stock
  • Seagate Tech (STX) CEO will provide business update at conference; Q2 Revenue and profitability are currently trending in accordance with management’s expectations; Q3 output will be lower
  • TransMedics Group (TMDX) narrows FY24 revenue guidance; appoints Gerardo Hernandez as CFO, effective December 2; succeeds Stephen Gordon
  • 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
• General News
  • Lawmakers preparing continuing resolution to extend government funding beyond December 20th deadline, according to Politico
  • South Korean President Yoon Suk Yeol has declared martial law due to anti-state activities, according to AP; South Korean parliament votes to remove martial law declaration, according to CNBC
  • Bank of Korea to hold extraordinary meeting tomorrow, according to Bloomberg
  • Chinese leaders will discuss stimulus target next week, according to Bloomberg
  • French lawmakers will hold a no-confidence vote tomorrow, according to Bloomberg
  • French President Emmanuel Macron believes government can survive no confidence vote, according to Bloomberg
  • China banned export of semiconductor materials, according to Financial Times
  • OPEC+ likely prolonging oil cuts for Q1, according to Reuters
  • Cyber Monday sales reached $13.5 bln, ahead of initial expectations, according to Bloomberg, citing Adobe
  • EU Commission earmarks EUR 4.6 billion to boost net-zero technologies, electric vehicle battery cell manufacturing and renewable hydrogen under the Innovation Fund
  • San Francisco Fed President Mary Daly (FOMC voter) in Fox Business interview signals gradual policy shift: December rate cut "not off the table," focus remains on restrictive stance until inflation hits 2%
  • Insurance companies collected billions from Medicare for VA services that didn't cost them anything, according to the Wall Street Journal
  • Amazon (AMZN): Comcast (CMCSA) moves its 5G wireless core network from on-premise to AWS
  • Amazon (AMZN): AWS Announces New Data Center Components to Support AI Innovation and Further Improve Energy Efficiency
  • Amazon (AMZN): AWS plans to increase cloud work with Accenture (ACN), according to Business Insider
  • Amazon (AMZN) announced that its Black Friday Week and Cyber Monday holiday shopping event—from November 21 through December 2—was its biggest ever compared to the same 12-day period ending on Cyber Monday in prior years
  • AT&T (T) launches its first converged feature for consumers with internet backup - Using AT&T wireless to keep fiber customers online at no extra cost
  • Babcock & Wilcox Enterprises (BW) names new CFO and COO
  • Bowman Consulting Group (BWMN) authorizes increase to its previously announced share repurchase plan to up to $35 mln from $25 mln
  • BWX Technologies (BWXT) announces award from the U.S. Department of Energy for cleanup operations at West Valley Demonstration Project; Contract has maximum value of up to $3.0 bln for up to 15 years
  • Carnival (CCL) unit Cunard reports record-breaking bookings in 2024
  • Cartesian Therapeutics (RNAC) announces 'positive' updated results in participants with myasthenia gravis and outlines design of planned Phase 3 Trial
  • Corbus Pharma (CRBP) grants fast track designation to CRB-701 for the treatment of relapsed or refractory metastatic cervical cancer
  • Corpay (CPAY) CFO to step down
  • Dominion Energy (D) COO Diane Leopold to retire, effective June 1, 2025
  • Dow (DOW) names Karen S. Carter as Chief Operating Officer
  • Fluor (FLR) Chief Financial Officer Joe Brennan to retire; company names John Regan as new CFO
  • Glaukos (GKOS) entered into unwind agreements with certain financial institutions relating to a portion of the capped call transactions
  • Hanover Insurance (THG) increases quarterly cash dividend to $0.90/share from $0.85/share
  • HUTCHMED (HCM) and Innovent Biologics announce NMPA conditional approval for ELUNATE in combination with TYVYT for the treatment of advanced endometrial cancer
  • Immunocore (IMCR) announces reimbursement agreement in England for KIMMTRAK
  • Inari (NARI) enters into a joint venture in Greater China with 6 Dimensions Capital and its successor fund 120 Capital, and VFLO Medical; Also received national reimbursement approval from the Japanese Ministry of Health, Labor and Welfare for its ClotTriever Thrombectomy System for DVT
  • Ingram Micro Holding Corp. (INGM) announces that its undertaking restructuring initiatives that will reduce its headcount by approximately 850 associates by the end of 1Q25
  • Intel (INTC) shortlists candidates for CEO, considers former Board member Lip-Bu Tan after leadership shift, according to Reuters
  • Intel (INTC) considering Matt Murphy from Marvell (MRVL) for CEO job, according to Bloomberg
  • Interparfums, Inc. (IPAR) To Develop Off-White Brand in Fragrance and Beauty Category
  • IonQ (IONQ) Unveils New Enterprise-Grade Quantum OS and Hybrid Services Suite
  • 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
  • Joby Aviation (JOBY) CFO Matthew Field to resign, effective December 13
  • Lam Research Corporation (LRCX) comments on newly announced export regulations
  • McDonald's (MCD): FDA posts update on E. Coli outbreak; "New as of 12/03: This outbreak is over."
  • Merck (MRK): FDA grants Breakthrough Therapy designation to sacituzumab tirumotecan (sac-TMT) for the treatment of patients with advanced or metastatic nonsquamous non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) mutations
  • Mesoblast (MESO) reports Revascor improves survival and reduces major morbidity in high-risk Ischemic Heart Failure patients with inflammation
  • Microsoft (MSFT) will have to face $1.27 bln UK antitrust lawsuit, according to the Wall Street Journal
  • Novo Nordisk (NVO) India executives want earlier Wegovy launch, according to Reuters
  • Oshkosh (OSK) appoints Matthew Field as CFO, effective December 16
  • Paramount Global (PARA): David Ellison plans major shake-up at Paramount including network cuts, streaming investments, and leadership overhaul ahead of Skydance merger, according to Bloomberg
  • Portillo's (PTLO) appoints Tony Darded as COO, effective on December 9
  • Ranger Energy Services (RNGR) provides investor updates in presentation; highlights high-spec rigs growth
  • Rayonier (RYN) announces a special dividend of $1.80/share, payable 25% in cash and 75% in common shares to shareholders of record on December 12
  • Regeneron Pharma (REGN): Medigene receives milestone payment from REGN
  • Regional Mgmt (RM) announces a $30 million stock repurchase program and growth expectations for 2025
  • Rhythm Pharmaceuticals (RYTM) announces Imcivree receives expanded marketing authorization in the United Kingdom for treatment of obesity and control of hunger in patients
  • RTX (RTX) awarded $1.31 bln U.S. Navy contract modification
  • Seabridge Gold (SA) comments on second challenge of KSM's Substantially Started Determination
  • Spire Global (SPIR) appoints Theresa Condor as CEO and taps aerospace industry veterans for executive team
  • Terns Pharmaceuticals (TERN) Announces Positive Early Data from Phase 1 CARDINAL Trial of TERN-701 for Chronic Myeloid Leukemia
  • Tesla (TSLA): CEO Elon Musk's pay package was again rejected by a Delaware judge, according to Bloomberg
  • Tesla (TSLA) China produced electric vehicle sales fall 4.3% in November, according to Reuters
  • UnitedHealth (UNH) and Centene (CNC) expected to get Medicare Advantage Star Rating upgrades, according to Modern Healthcare
  • Vale S.A. (VALE) starts commissioning the Capanema project
  • Valneva (VALN) reports three-year antibody persistence data for its single-shot chikungunya vaccine IXCHIQ
  • Wabash Natl (WNC) announces renewal of agreement with Goodyear Tire as the preferred tire supplier for Wabash's van, tank and platform trailers

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

• Upgrades:
  • Alignment Healthcare (ALHC) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $17
  • AngloGold Ashanti (AU) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt $31
  • Ashtead (ASHTF) upgraded to Outperform from Sector Perform at RBC Capital Mkts
  • Axon (AXON) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $700
  • BMW Group (BMWYY/BMWKY) upgraded to Buy from Neutral at UBS
  • CenterPoint (CNP) upgraded to Buy from Neutral at UBS; tgt raised to $37
  • Century Aluminum (CENX) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $27
  • Citigroup (C) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $82
  • Credo Technology Group (CRDO) upgraded to Buy from Underperform at BofA Securities; tgt $80
  • CVS Health (CVS) upgraded to Buy from Hold at Deutsche Bank; tgt $66
  • Dana Inc (DAN) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt raised to $16
  • DTE Energy (DTE) upgraded to Buy from Neutral at UBS; tgt raised to $143
  • Hugo Boss AG (BOSSY) upgraded to Buy from Neutral at UBS
  • Kroger (KR) upgraded to Buy from Hold at Jefferies; tgt raised to $73
  • PTC Therapeutics (PTCT) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $63
  • South Atlantic Bancshares (SABK) upgraded to Buy from Neutral at Janney; tgt $19
  • State Street (STT) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $120
  • Synchrony Financial (SYF) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $85
  • Upstart (UPST) upgraded to Buy from Neutral at Redburn Atlantic; tgt raised to $95
• Downgrades:
  • Cavco Industries (CVCO) downgraded to Neutral from Outperform at Wedbush; tgt $480
  • Cousins Prop (CUZ) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $32
  • EssilorLuxottica (ESLOY) downgraded to Neutral from Buy at UBS
  • FedEx (FDX) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $316
  • Kroger (KR) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $60
  • Ollie's Bargain Outlet (OLLI) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $95
• Others:
  • AGCO Corp (AGCO) initiated with an Equal-Weight at Morgan Stanley; tgt $101
  • ASM Intl NV (ASMIY) initiated with a Neutral at Exane BNP Paribas; tgt $561
  • ASML (ASML) resumed with an Outperform at Exane BNP Paribas; tgt $858
  • Coca-Cola European Partners (CCEP) initiated with a Mkt Perform at Bernstein; tgt $82
  • Coca-Cola Hellenic (CCHGY) initiated with an Outperform at Bernstein
  • EQT Corp. (EQT) resumed with a Sector Perform at RBC Capital Mkts; tgt $49
  • Eversource Energy (ES) initiated with an Underperform at Jefferies; tgt $52
  • Everus (ECG) initiated with a Peer Perform at Wolfe Research
  • FedEx (FDX) added to Positive Catalyst Watch ahead of earnings at JP Morgan
  • Instacart (CART) initiated with a Hold at Deutsche Bank; tgt $37
  • Integer Holdings (ITGR) resumed with an Overweight at Wells Fargo; tgt $160
  • iRhythm (IRTC) resumed with an Equal Weight at Wells Fargo; tgt $86
  • Lamb Weston (LW) initiated with a Mkt Perform at Bernstein; tgt $85
  • Nevro (NVRO) initiated with an Equal Weight at Wells Fargo; tgt $5
  • STMicroelectronics (STM) initiated with a Neutral at Exane BNP Paribas; tgt $28

• Econ Data (Wednesday):
  • 07:00 ET: MBA Mortgage Applications Index (prior 6.3%)
  • 08:15 ET: November ADP Employment Change (Briefing.com consensus 170K; prior 233K)
  • 09:45 ET: November S&P Global U.S. Services PMI - Final
  • 10:00 ET: November ISM Services PMI
  • 10:30 ET: EIA Crude Oil Inventories (prior -1.84M)
  • 14:00 ET: Fed's Beige Book
• 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