After Hours Report

The stock market exhibited rebound action today after last week's declines. Mega cap stocks and semiconductor shares led the upside action after underperforming last week, but many stocks came along for the rally. The S&P 500 settled 1.1% higher and the Invesco S&P 500 Equal Weight ETF (RSP) settled 0.8% higher.

NVIDIA (NVDA 123.54, +5.61, +4.7%), Meta Platforms (META 487.40, +10.61, +2.2%), and Microsoft (MSFT 442.94, +5.83, +1.3%) were among the influential winners today on some buy-the-dip interest. With today's action, NVDA shares are flat so far in July, META shares are down 3.3% in July, and MSFT is 0.9% lower in July.

Many other stocks also logged gains, leaving nine of the 11 S&P 500 sectors higher. The information technology (+2.0%) and communication services (+1.2%) sectors led the pack thanks to the aforementioned names. The industrial (+1.1%) and real estate (+1.0%) sectors also jumped at least 1.0%.

Meanwhile, the energy sector logged the biggest decline amid falling oil prices ($78.43/bbl, -0.26, -0.3%). 

Market participants are also digesting news that President Biden exited the 2024 presidential race and endorsed Kamala Harris for the candidacy. The news garnered muted responses in the equity and bond markets. The 10-yr note yield settled two basis points higher at 4.26% and the 2-yr note yield settled one basis point higher at 4.52%.

There was no US economic data of note today.

Looking ahead, Tuesday's economic data is limited to the June Existing Home Sales report at 10:00 ET. General Motors (GM), UPS (UPS), Albertsons (ACI), Lockheed Martin (LMT), Coca-Cola (KO), Philip Morris International (PM), and others report earnings ahead of Tuesday's open.

• Nasdaq Composite:+20.0% YTD
• S&P 500: +16.7% YTD
• S&P Midcap 400: +9.7% YTD
• Russell 2000: +9.6% YTD
• Dow Jones Industrial Average: +7.2% YTD

Overseas:

• Europe: DAX +1.4TSE +0.5%, CAC +1.2%
• Asia: Nikkei -1.3%, Hang Seng +1.3%, Shanghai %

Commodities:

• Crude Oil -0.26 @ 78.43
• Nat Gas +0.11 @ 2.28
• Gold -5.10 @ 2394.40
• Silver -0.01 @ 29.29
• Copper -0.04 @ 4.20

After-Hours Spotlight:

• Calix Networks (CALX) beats by $0.03, misses on revs; guides Q3 EPS below consensus, revs below consensus... CALX down 4.4%
• Cobra Acquisitions (TUSK) announces settlement agreement with the Puerto Rico Electric Power Authority... TUSK up 35.7%
• Crown (CCK) beats by $0.22, reports revs in-line; guides Q3 EPS in-line; guides FY24 EPS above consensus... CCK up 7.1%
• Medpace (MEDP) beats by $0.21, reports revs in-line; guides FY24 EPS in-line, revs in-line... MEDP down 13.3%
• NXP Semi (NXPI) reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs below consensus... NXPI down 8.0%
• SAP SE (SAP) reports EUR0.06 beat, beats on revs... SAP up 5.4%

Fair Value for Tuesday, July 23:

• S&P 500: 5,607
• Nasdaq 100: 19,993
• DJIA: 40,674

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

• Earnings/Guidance (Full Earnings Calendar):
  • Dynex Capital, Inc. (DX) Announces Second Quarter 2024 Results
  • Equitrans Midstream (ETRN) misses by $0.02, beats on revs
  • IQVIA (IQV) beats by $0.08, reports revs in-line; guides FY24 EPS in-line, revs in-line
  • Truist (TFC) beats by $0.25, beats on revs; guides Q3 revs in-line; guides FY24 revs above consensus
  • Verizon (VZ) reports EPS in-line, revs in-line; reaffirms FY24 EPS guidance
• General News
  • President Biden exits the 2024 presidential race; endorses VP Kamala Harris who will seek the Democratic nomination
  • Senator Joe Manchin in CBS interview says he is "not going to be a candidate for president" and that he "doesn't need that in his life"
  • PBOC cuts interest rate on 7-day reverse repo operations to 1.70% from the previous 1.80%; unexpectedly lowered its one-year loan prime rate to 3.35% from 3.45% while the five-year rate was lowered to 3.85% from 3.95%
  • Israeli Prime Minister Benjamin Netanyahu will address Congress on Wednesday, according to Politico
  • 1600 flights were cancelled Saturday amid ongoing effects from global IT outage, according to CNN
  • Regulators have concerns about bank handling risks, according to Bloomberg
  • President Biden's doctor says COVID symptoms have "almost resolved completely"
  • Vice President Kamala Harris' campaign aiming to lock in required delegates for Democratic nomination by Wednesday night, according to Reuters
  • Addex Therapeutics (ADXN) confirms partner Janssen (JNJ) discontinued ADX71149 development in epilepsy
  • Advanced Micro (AMD): Samsung Electro-Mechanics announces a collaboration with AMD to supply high-performance substrates for hyperscale data center compute applications
  • Agilent (A) has signed a definitive agreement to acquire BIOVECTRA for $925 mln
  • Air Products' (APD) Chairman, President and CEO Seifi Ghasemi Announces Formation of Senior Management Board
  • Air Products (APD) discloses On July 18, 2024, Samir Serhan resigned as the COO effective immediately; Dr. Serhan is expected to remain with the Company until September 30, 2024
  • Allstate (ALL): Maui wildfire victims file lawsuit, according to Bloomberg
  • Alphabet (GOOG): UK CMA provides GOOG Privacy Sandbox update
  • AMC Entertainment (AMC) reaches deal with creditors to restructure debt and will move theaters into different business unit, according to Bloomberg (shares halted for news pending)
  • AMC Entertainment (AMC) confirms collaborative refinancing transactions that extend up to $2.45 billion of debt maturities from 2026 to 2029 and beyond (shares halted)
  • American Electric (AEP) provides notice to its stockholders of derivative actions and the litigation demand settlement
  • Arch Capital (ACGL) announces that regulatory approval has been obtained for its previously announced acquisition of the U.S. MidCorp and Entertainment insurance businesses of Allianz
  • AT&T (T): FCC releases investigation into AT&T outage earlier this year
  • BAE Systems (BAESY) to deliver advanced microelectronics to U.S. Defense Industrial Base under a $22 million contract
  • BAE Systems (BAESY) and Stellar Blu Solutions complete multi-orbit antenna qualification and type certification for in-flight connectivity
  • Bank of America (BAC): 10% owner Berkshire Hathaway's (BRK.A) Warren Buffett sold 33,890,927 shares at $42.695 - $44.44 worth approx. $1.48 bln
  • Boeing (BA) Forecasts Demand for Nearly 44,000 New Airplanes Through 2043 as Air Travel Surpasses Pre-Pandemic Levels
  • Boeing (BA) is experiencing significant improvement in production at its 737 MAX factory, according to Reuters
  • Boeing (BA) announces National Airlines selects four Boeing 777 Freighters to expand global fleet
  • Boeing (BA): Air Force reaches deal with Boeing (BA) to supply E-7 Wedgetail airborne warning and control aircraft, according to Reuters
  • Boeing (BA): Korean Air commits to up to 50 Boeing widebodies to strengthen future long-haul fleet
  • Boeing (BA) and Lufthansa Technik announce an agreement to designate Lufthansa Technik as the first Boeing-licensed Service Center (BLSC) for cabin modifications on 787 Dreamliner airplanes, bringing additional choice and capacity to the market
  • Boeing (BA): Boeing, Antonov to collaborate on defense projects
  • Boeing's (BA) Wisk and Skyports expand partnership
  • Cadre Holdings (CDRE) experienced cybersecurity incident on July 15; not yet determined full impact of incident
  • Cassava Sciences (SAVA) releases open letter from Executive Chairman Rick Barry; first Phase 3 trial is expected to read out by December 2024
  • Charles Schwab (SCHW) indicated higher following insider buy disclosures - co-Chairman / Chief Executive Officer and the President bought 35,000 shares combined worth approx. $2.3 mln
  • ChipMOS TECHNOLOGIES (IMOS) announced a US$1.098 cash dividend per ADS (or approximately US$0.848 per ADS after the Taiwan withholding tax and Citibank, N.A.'s depositary fees) will be distributed on July 26, 2024
  • CrowdStrike (CRWD) says it "continues to focus on restoring all systems as soon as possible. Of the approximately 8.5 million Windows devices that were impacted, a significant number are back online and operational"
  • Daqo New Energy (DQ) announces $100 million share repurchase program
  • Delta Air Lines (DAL) says people working 24/7 to restore operation, support customers, get crews to right place at right time
  • EHang (EH) announces that the Civil Aviation Administration of China formally accepted the Air Operator Certificate applications submitted by Guangdong EHang General Aviation Co
  • Elron Electronic Ind. Ltd (ELRNF): Arieli EL acquires a 59.1% stake in Elron Ventures for $53.2 mln
  • Embraer SA (ERJ): Dutch Ministry of Defense signed contract for the acquisition of nine Embraer C-390 Millennium aircraft
  • EQT Corp. (EQT) closes acquisition of Equitrans Midstream Corporation (ETRN)
  • Equity Commonwealth (EQC): Indaba Capital Management has reportedly built a 3% stake in EQC, according to Bloomberg
  • GE Aerospace (GE): Turkish Aerospace, TUSAS Engine Industries and GE Aerospace Sign MOU to Extend Collaboration on HÜRJET Advanced Training Jet Program
  • GE Aerospace (GE) announces that the International Airlines Group has committed to purchasing GEnx engines to power six new 787 Dreamliners for British Airways – the first introduction of this engine into their fleet
  • Honeywell (HON) has been selected by United Airlines (UAL) to provide a wide range of avionics for new 737 MAX aircraft that will enter service over the next decade
  • HOOKIPA Pharma (HOOK) announces leadership changes to intensify focus on HB-200
  • Immutep announces successful meeting with FDA on Phase III Design in Non-Small Cell Lung Cancer
  • Invitation Homes (INVH): Sanford Heisler Sharp and Co-Counsel announce $19.9 million settlement on behalf of California Cities resolving claims against Invitation Homes
  • Ionis Pharma (IMMP)  (IQV) announces positive detailed results from the HALOS Study of ION582 in people with Angelman syndrome
  • Johnson & Johnson (JNJ) seeks U.S. FDA approval of SPRAVATO® (esketamine) as the first and only monotherapy for adults with treatment-resistant depression
  • Kellanova (K) moves to accelerate global brand growth, expanding partnership with Interpublic Group (IPG)
  • Lifeway Foods, Inc. (LWAY) largest shareholders, Ludmila and Edward Smolyansky, demand resignations of the Company's CEO and Certain Directors
  • Malibu Boats (MBUU) announces appointment of Steven Menneto as CEO
  • Mattel (MAT) follow up to report that L Catterton is interested in acquisition of MAT, according to Reuters
  • Mattel (MAT): Yahoo Finance executive editor Brian Sozzi says "Source familiar: Mattel is not in any deal talks, has not been approached"
  • Microsoft (MSFT): Workers at Bethesda Game Studios achieve union recognition with CWA becoming first wall-to-wall union at Microsoft (MSFT)
  • Motorcar Parts of America (MPAA) announces that the company has expanded product coverage for its starter and alternator, brake caliper, brake pad, power brake booster, brake rotor and wheel hub programs, with more than 150 new part numbers covering an additional 49 million vehicles in operation
  • Northrop Grumman (NOC) awarded a $1.46 bln modification to previously awarded US Navy contract
  • Nvidia (NVDA) aims to introduce artificial intelligence chip for Chinese market, according to Reuters
  • Osisko Development Corp. (ODV) has temporarily paused non-essential activities at its 100%-owned Cariboo Gold Project located in central British Columbia, Canada, following a wildfire evacuation order that includes the Project
  • Planet Labs (PL) signs a seven-figure contract expansion with a US-allied International Government Agency for SkySat high resolution satellite data
  • PulteGroup (PHM) CFO Bob O’Shaughnessy announces plan to retire in 2025
  • RAPT Therapeutics (RAPT) approved a reduction of the Company’s workforce to conserve cash resources
  • Red Cat Holdings (RCAT) secures $4.4 million of non-dilutive financing through its divestiture in Unusual Machines
  • Reddit (RDDT) aiming to partner with NFL & NBA to increase revenue, according to The Information
  • Saia (SAIA) expands network with new terminals in California and Iowa
  • Super Micro Computer (SMCI) entered into a Term Loan Credit Agreement; is in discussions with one or more financial institutions regarding a potential senior revolving credit facility
  • Suzano S.A. (SUZ) starts operation of the world’s largest pulp production line
  • Tilray (TLRY) announces that its Germany cannabis cultivation facility, Aphria RX GmbH, has received the first new cannabis cultivation license issued under MedCanG, Germany’s new Cannabis Act
  • Viad Corp (VVI): Crestview Partners and affiliated entities notified the Board of their intent to remove Sung-Chul Patrick T. LaValley as a member of the Board, effective immediately
  • Vista Outdoor (VSTO): Gates Capital Management expresses continued opposition to Vista Outdoor's proposed sale of the Kinetic Group to CSG
  • Walt Disney (DIS): Safra Catz, CEO of Oracle, to leave Disney board of directors
  • Warner Brothers Discovery (WBD) faces deadline today over NBA rights bid, according to FT
  • XPeng (XPEV) announces master agreement on E/E architecture technical collaboration with Volkswagen (VWAGY)
  • Zymeworks (ZYME) announced FDA clearance of IND application for ZW191, the Company’s novel folate receptor-? targeted topoisomerase I inhibitor antibody-drug conjugate

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

• Upgrades:
  • Abercrombie & Fitch (ANF) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $194
  • C.H. Robinson (CHRW) upgraded to Buy from Underperform at BofA Securities; tgt raised to $99
  • EastGroup (EGP) upgraded to Outperform from Neutral at Wedbush; tgt raised to $208
  • Henry Schein (HSIC) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $92
  • Intl Flavors (IFF) upgraded to Buy from Hold at Stifel; tgt raised to $115
• Downgrades:
  • Con Edison (ED) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $92
  • Comerica (CMA) downgraded to Hold from Buy at Truist; tgt lowered to $53
  • Mr. Cooper Group (COOP) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $95
  • CrowdStrike (CRWD) downgraded to Neutral from Buy at BTIG Research
  • CrowdStrike (CRWD) downgraded to Neutral from Buy at Guggenheim
  • Estee Lauder (EL) downgraded to Mkt Perform from Strong Buy at Raymond James
  • Fidelity Nat'l Info (FIS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $79
  • HDFC Bank (HDB) downgraded to Neutral from Overweight at JP Morgan
  • Hippo (HIPO) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $20
• Others:
  • AnaptysBio (ANAB) initiated with a Buy at H.C. Wainwright; tgt $55
  • Axsome Therapeutics (AXSM) initiated with a Buy at Needham; tgt $130
  • Benitec Biopharma (BNTC) initiated with an Outperform at Leerink Partners; tgt $13
  • Berkshire Hathaway (BRK.B) initiated with a Hold at TD Cowen; tgt $465
  • CARGO Therapeutics (CRGX) initiated with a Buy at H.C. Wainwright; tgt $33
  • Celcuity (CELC) initiated with an Outperform at Leerink Partners; tgt $29
  • Corbus Pharma (CRBP) resumed with a Buy at H.C. Wainwright; tgt $80
  • Driven Brands (DRVN) initiated with a Market Perform at BMO Capital Markets; tgt $14
  • Enovix (ENVX) initiated with a Buy at The Benchmark Company; tgt $25
  • EVgo Inc. (EVGO) initiated with a Neutral at UBS; tgt $4

• Econ Data (Tuesday):
  • 10:00 ET: June Existing Home Sales (Briefing.com consensus 4.00 mln; prior 4.11 mln)
• Treasury Auctions: 
  • 13:00 ET: $69 bln 2-yr Treasury note auction results
• Earnings:
  • Monday (July 22)
    • Pre-Market: BOH IQV TFC VZ
    • During Market Hours: SAP
    • After-Hours: AGYS AGNC ARE NTB BOKF BRO CADE CDNS CALX CATY CLF CCK ELS HSTM KREF MEDP NUE NXPI RBB RLI SSD WRB ZION
  • Tuesday (July 23)
    • Pre-Market: AOS ACI AVY BANC KO CBU CSTM DHR FBP FELE FCX GATX GE GM GPC HCA HRI IVZ IRDM KMB LMT MCO MSCI NWBI ONB PCAR PNR PM PII PHM DGX SASR SHW SPOT UPS WBS
    • After-Hours: GOOG APAM AGR BDN CALM COF CB CSGP EWBC EGP ENVA ENPH EQT FCF FTAI HIW MANH MTDR MAT NBR NBHC PKG PFSI RRC RRR RNST ROIC STX TSLA TXN TRMK VBTX VICR V
  • Wednesday (July 24)
    • Pre-Market: ALKS ALLE APH T BSX CHKP CHE CME EVR FI FTV GEV GD GPI HCSG IP IPG KBR LW LII NAVI NEE NEP ODFL OTIS PPBI PTEN BPOP PRG PB ROP SLAB SFNC SF TMHC TEL TDY THC TMO TSEM TNL UCBI VRT WNC WAB WFRD
    • After-Hours: ALGN AMP ASGN CSL CCS CMG CHDN CYH CLB EW EPRT FAF FLEX F GL GSHD GGG HP IBM ICLR PI INVH KALU KLAC KNX LVS MXL MTH MC MOH MSA NEM ORLY OII CASH PEB PEGA PLXS QS RJF RNR RSG RHI ROL SLM SEIC NOW SJW SSB STC TER TYL URI UHS VMI VKTX WM WHR WH
  • Thursday (July 25)
    • Pre-Market: ABBV AAL ARCH AMBP AZN AUB BFH BC CRS CARR CBRE CMS CFR DAR DOV DOW DTE EME XPRO FSS FCFS FCN HOG HAS HNI HON IMAX ITGR KDP LADR LAZ LEA LKQ HZO MAS MHK COOP NDAQ NTCT NYCB NSC NOC NVCR PCG POOL RS RES RPM RTX R SNY SBSI LUV STM FTI SHYF TSCO TW TRU TPH UNP VLO VLY VC WST WEX XRX
    • After-Hours: ALSN ABCB APPF ATR AJG ASB BKR BJRI SAM BYD CINF COLB COLM COUR CUZ CUBI DECK DXCM DLR EMN EIX EXPO FHI FFBC FIBK FBIN GLPI HIG DOC HTH JNPR KNSL LHX TREE LPLA MGRC MTX NOV OLN PECO PFG PFS SKX SKYW SPSC SSNC TXRH UCTT VLTO VRSN WSBC WY WTW WSFS ZYXI
  • Friday (July 26)
    • Pre-Market: MMM AB AON AVTR BCPC B BAH BMY CNC CHTR CL FHB BEN GNTX EAF NWL POR SAIA SXT STEL TROW TNET WT
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike