After Hours Report

The stock market had a somewhat lackluster session after last week's volatile price action. The S&P 500 closed less than one point above its prior closing level while the Dow Jones Industrial Average (-0.4%) and Nasdaq Composite (+0.2%) closed slightly lower and slightly higher than Friday's settlement.

The muted action was due to hesitation in front of market-moving economic releases. The Producer Price Index (Tuesday), the Consumer Price Index (Wednesday), Retail Sales (Thursday), and Housing Starts (Friday) are among the influential reports.

Only three of the S&P 500 sectors settled higher while the real estate (-0.6%) and communication services (-0.6%) sectors logged the biggest declines. The information technology sector led the pack, rising 0.9%, followed by energy (+0.5%) and utilities (+0.2%).

The info tech sector was boosted by gains in Apple (AAPL 217.53, +1.54, +0.7%), Microsoft (MSFT 406.81, +0.79, +0.2%), NVIDIA (NVDA 109.02, +4.27, +4.1%), and Broadcom (AVGO 148.62, +0.36, +0.2%).

The energy sector reacted to a jump in oil prices ($79.91/bbl, +3.13, +4.1%) on geopolitical angst after the recent death of Hamas political leader Ismail Haniyeh stirred concerns about a retaliation from Iran (and/or its proxies) against Israel. 

Separately, the New York Fed's Survey of Consumer Expectations showed that median one- and five-year-ahead inflation expectations were unchanged in July at 3.0% and 2.8%, respectively, while median three-year-ahead inflation expectations declined by 0.6 percentage point to 2.3%. This was the lowest level since the survey's started in June 2013.

The 10-yr note yield settled three basis points lower at 3.91% and the 2-yr note yield fell three basis points to 4.02%.

• S&P 500: +12.1% YTD
• Nasdaq Composite:+11.8% YTD
• S&P Midcap 400: +4.8% YTD
• Dow Jones Industrial Average: +4.4% YTD
• Russell 2000: +1.7% YTD

Reviewing today's economic data:

• The Treasury Budget for July showed a deficit of $243.7 billion compared to a deficit of $220.8 billion in the same period a year ago. The July deficit resulted from outlays ($574.1 billion) exceeding receipts ($330.4 billion). The Treasury Budget data is not seasonally adjusted so the July deficit cannot be compared to the June deficit, which was revised higher to $70.9 billion (from -$66.0 billion).
  • The key takeaway from the report is that the U.S. government continues to run large budget deficits, driven in part by net interest costs that are outweighing defense spending.

Tuesday's economic lineup features:

• 6:00 ET: July NFIB Small Business Optimism (prior 91.5)
• 8:30 ET: July PPI (Briefing.com consensus 0.1%; prior 0.2%) and Core PPI (Briefing.com consensus 0.2%; prior 0.4%)

Overseas:

• Europe: DAX -0.1%, TSE +0.5%, CAC -0.3%
• Asia: Nikkei +0.6%, Hang Seng +0.1%, Shanghai -0.1%

Commodities:

• Crude Oil +3.13 @ 79.91
• Nat Gas +0.04 @ 2.19
• Gold +31.00 @ 2504.90
• Silver +0.36 @ 27.97
• Copper +0.07 @ 4.07

After-Hours Spotlight:

• DHT (DHT) misses by $0.01, reports revs in-line; provides market commentary... DHT down 3.6%
• Rumble (RUM) beats dual est by $0.02, beats on revs; partnering with NFL team the Miami Dolphins and Hard Rock Stadium to leverage infrastructure services from Rumble Cloud... RUM up 9.1%
• Syros (SYRS) provides update on SELECT-AML-1 Phase 2 Clinical Trial... SYRS down 67.9%

Fair Value for Tuesday, August 13:

• S&P 500: 5,369
• Nasdaq 100: 18,640
• DJIA: 39,476

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

• Earnings/Guidance (Full Earnings Calendar):
  • Apogee Therapeutics (APGE) Provides Pipeline Progress and Reports Second Quarter 2024 Financial Results
  • Azul S.A. (AZUL) reports Q2 results; Bookings have been improving over the last four weeks
  • Ballard Power (BLDP) beats by $0.02, misses on revs
  • Barrick (GOLD) beats by $0.05, beats on revs
  • Borr Drilling (BORR) projects Q2 operating revs ahead of consensus
  • B. Riley Financial (RILY) provides Q2 guidance (no ests)
  • Cadre Holdings (CDRE) beats by $0.04, beats on revs; guides FY24 revs above consensus
  • Caledonia Mining (CMCL) reports Q2 results
  • Chunghwa Telecom (CHT) reported July revs of approximately NT$17.77 bln
  • CleanSpark (CLSK) reports Q3 (Jun) results, misses on revs
  • Fortrea (FTRE) misses by $0.10, misses on revs; guides FY24 revs below consensus
  • Hawaiian Electric (HE) misses by $0.05 (single estimate); does not yet have financing plan to address future payment of the $1.71 billion Maui windstorm and wildfire settlement accrued in 2Q24
  • KE Holdings (BEKE) beats by RMB0.70, beats on revs; increases and extends share repurchase program
  • Monday.com (MNDY) beats by $0.38, beats on revs; guides Q3 revs above consensus; guides FY24 revs above consensus
  • Niu Technologies (NIU) reports Q2 results; provides Q3 revs guidance
  • PowerSchool (PWSC) misses by $0.01, misses on revs
  • Progyny (PGNY) releases Investor Day presentation - targets thru 2028 includes revs CAGR of 20% yields adj EBITDA CAGR 25%, gross margins to grow by 400-500 bps
  • Sasol (SSL) reports FY24 trading statement; provides CHEPS guidance
• General News
  • Republican Vice Presidential nominee JD Vance says political leadership should have more say over Fed monetary policy. Former President Trump made similar remarks last week, according to CNN
  • Internal communications from former President Trump's campaign have been hacked. Iran was blamed, according to Politico
  • Vice President Kamala Harris supports ending taxes on tipped income after former President Trump endorsed the plan, according to Bloomberg
  • Hezbollah fired rockets into northern Israel, according to CNN
  • PBOC cautioned about risk in interest rates, according to Bloomberg
  • Candy sold at various stores recalled because of risk of salmonella poisoning, according to Fox Business
  • Defense Secretary ordered a submarine be deployed to Middle East ahead of anticipated Iranian attack on Israel, according to CNN
  • White House issues joint statement from the United States, United Kingdom, France, Germany, and Italy on the Middle East
  • Advanced Micro (AMD) announces the completion of its acquisition of Silo AI
  • Amylyx Pharmaceuticals (AMLX) announces publication of data showing the encouraging effects of AMX0035 on cerebrospinal fluid biomarkers of core alzheimer’s disease pathology and neurodegeneration
  • Argo Blockchain Plc (ARBK) has fully repaid the remaining balance of the original loan extended by Galaxy Digital HoldingS
  • Artisan Partners Asset Mgmt (APAM) reports that its preliminary assets under management as of July 31, 2024 totaled $162.7 billion
  • Ascendis Pharma (ASND): FDA Approves YORVIPATH (Palopegteriparatide) as the First and Only Treatment for Hypoparathyroidism in Adults
  • B. Riley Financial (RILY) facing wider investigation into financial health, according to Bloomberg
  • Badger Meter (BMI) increases quarterly cash dividend 26% to $0.34/share from $0.27/share
  • Bank of America (BAC) CEO Brian Moynihan wants Fed to lower rates, according to CBS News
  • Berkshire Hathaway (BRK.B) in line to reportedly pay $15 bln in taxes related to Apple (AAPL) stock sales, according to Barron's
  • BHP Group (BHP): Qantas has joined Rio Tinto (RIO) and BHP as foundational investors in a new fund that will develop high-integrity, nature-based carbon projects in Australia
  • Boeing (BA) awarded a $2.56 bln modification to previously awarded US Air Force contract action
  • Canadian Nat'l Rail (CNI) asks federal government to order binding arbitration to protect Canada’s economy
  • Carlyle Group (CG) mulling sale of Nobian for EUR 3 bln, according to FT
  • CenterPoint (CNP): Texas Attor­ney Gen­er­al Ken Pax­ton opens inves­ti­ga­tion into Cen­ter­Point Energy’s con­duct dur­ing Hur­ri­cane Beryl
  • Cisco (CSCO) aiming to eliminate thousands of jobs, according to Reuters
  • CleanSpark (CLSK) enters into a partnership with Coinbase (COIN) to acquire a $50 million revolving line of credit collateralized by a portion of its bitcoin holdings
  • Cognyte Software (CGNT) sends letter to shareholders, urging shareholders to reject Value Base Fund’s director nominee
  • Coupang (CPNG) discloses in SEC filing that Korea Fair Trade Commission (KFTC) issued formal written order regarding their June 2024 decision; fine was $121 mln and KFTC directed company to take certain remedial measures
  • Dr. Reddy's (RDY) has received the Establishment Inspection Report - USFDA has classified the inspection as Voluntary Action Indicated and concluded that the inspection is "closed"
  • Eaton (ETN) appoints Paulo Ruiz president and COO effective September 2, 2024; Ruiz to succeed Craig Arnold as CEO on June 1, 2025
  • First Bancorp (FBNC) previously authorized $40 mln stock repurchase program was implemented on Aug 9
  • Franklin Resources (BEN) reports preliminary month-end assets under management of $1.66 trillion at July 31, 2024, compared to $1.65 trillion at June 30, 2024
  • Goodyear Tire (GT): Goodyear Canada Inc. investing more than $575 million to expand Ontario plant, creating and securing more than 1,000 jobs
  • Gran Tierra Energy (GTE) announces fifth consecutive Ecuador oil discovery from the Charapa-B6 well
  • Gray Television (GTN) and The CW Network have reached a comprehensive agreement to renew the affiliations of 38 Gray-owned television stations across the country
  • Humacyte (HUMA) Announces FDA Communication of Additional Time Required to Complete Review of acellular tissue engineered vessel (ATEV) BLA for the Treatment of Vascular Trauma
  • Huntington Ingalls (HII) announces that its Mission Technologies division was awarded a $209 mln contract to support the development and sustainment of the U.S. Air Force’s fighter and bomber weapons systems and subsystems
  • ImmunityBio’s (IBRX) ANKTIVA now covered by more than a dozen insurance plans representing over 100 million lives within months of FDA approval
  • Intel (INTC) postponed innovation event amid continuing job cuts, according to Bloomberg
  • Janus Henderson Group (JHG) announces acquisition of global private credit manager Victory Park Capital
  • Johnson & Johnson (JNJ) received backing from plaintiff group for $6.5 bln baby power settlement deal, according to Bloomberg
  • Kandi Technologies (KNDI) has entered into a formal Partnership Agreement with Hartford Industrial Co., Ltd.
  • Lantronix (LTRX) enters cooperation agreement with 180 Degree Capital Corp
  • Lazard (LAZ) reports July 2024 assets under management
  • Lifecore Biomedical (LFCR) files to delay its 10-K; will require additional time to complete the preparation and review processes in support of the 2024 Form 10-K
  • Lockheed Martin (LMT) awarded a $611 mln modification to a previously awarded US Navy contract
  • Manchester United (MANU): Ariel Investments increased passive stake to 15.7%
  • Masimo (MASI) announces that the Masimo W1 medical watch has received FDA 510(k) clearance for connectivity, allowing it to be integrated with the Masimo SafetyNet comprehensive telemonitoring solution
  • Meta Platforms (META): Turkey aiming to remove Instagram ban, according to Bloomberg
  • Mondee Holdings (MOND) files to delay its 10-Q; presently engaged in discussions with certain lenders
  • Nasdaq (NDAQ) Announces End of Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date July 31, 2024
  • Newtek (NEWT) enters into a definitive agreement to sell its wholly owned subsidiary Newtek Technology Solutions to Paltalk (PALT)
  • Nike (NKE) suspended online sales in Turkey, according to Bloomberg
  • Nikola Corporation (NKLA) strengthens Southern California hydrogen infrastructure with new hyla station at Tom's Truck center in Los Angeles county
  • Pfizer (PFE) Announces Top-Line Results of ABRYSVO® for RSV in Immunocompromised Adults
  • Rocket Lab USA (RKLB) successfully completes latest launch with Capella Space
  • Rio Tinto (RIO): Protesters are upset about Rio Tinto lithium mining project in Serbia, according to Bloomberg
  • Sandoz (SDZNY) receives FDA approval for Enzeevu
  • Sandoz (SDZNY) launches two denosumab biosimilars: Jubbonti and Wyost
  • scPharmaceuticals (SCPH) announces positive topline study results for SCP-111 (Furosemide 80 mg/1 mL) autoinjector; also announces FDA approval of supplemental new drug application expanding the FUROSCIX indication in heart failure
  • Sea Limited's (SE) Shopee increases some fees on commissions
  • Starbucks (SBUX): Activist investor Starboard Value has a stake, according to the Wall Street Journal
  • Starbucks (SBUX) nearing deal to give Elliott a board seat, according to Bloomberg
  • Stryker (SYK) announces a definitive agreement to acquire care.ai
  • Syndax (SNDX) Announces Publication in the Journal of Clinical Oncology of Data from the Pivotal AUGMENT-101 Trial of Revumenib in Relapsed/Refractory KMT2Ar Acute Leukemia
  • T. Rowe Price (TROW) reports preliminary month-end assets under management of $1.59 trillion as of July 31, 2024; net outflows for July 2024 were $2.0 billion
  • Tesla (TSLA) CEO Elon Musk will interview former President Trump tonight, according to Financial Times
  • Tesla (TSLA) stopped accepting orders for least expensive CyberTruck while it offers a premium model, according to Reuters
  • Walt Disney (DIS) experiences unveils unprecedented expansions at its Parks and Resorts at D23
  • Walt Disney (DIS) releases plans for new theme park attractions at D23 Expo, but shareholders still Grumpy following last week's disappointing Q3 results
  • Wave Life Sciences (WVE) receives FDA rare pediatric disease designation for WVE-N531 for the treatment of duchenne muscular dystrophy
  • Xenon Pharmaceuticals (XENE) announces the appointment of Matthew D. Ronsheim, as Chief Operating Officer and a member of the Xenon senior executive team
  • Yum! Brands (YUM) KFC expands $5 value menu to offer customers more options - choose from three taste of KFC Deals
  • ZEEKR Intelligent Technology Holding Limited (ZK) aiming to introduce higher end Japan EV, according to Nikkei

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

• Upgrades:
  • Allstate (ALL) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $177
  • Blend Labs (BLND) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $4.75
  • Brown & Brown (BRO) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $112
  • Churchill Downs (CHDN) upgraded to Buy from Neutral at BofA Securities; tgt raised to $155
  • Diageo plc (DEO) upgraded to Sector Perform from Underperform at RBC Capital Mkts
  • Goldman Sachs BDC (GSBD) upgraded to Equal Weight from Underweight at Wells Fargo; tgt lowered to $12
  • Liberty Global (LBTYA) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $21.30
  • Robinhood Markets (HOOD) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $23
• Downgrades:
  • Algonquin Power & Utilities (AQN) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $6
  • Bank of Hawaii (BOH) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $61
  • Brighthouse Financial (BHF) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $40
  • Hillenbrand (HI) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $33
  • Janus International Group (JBI) downgraded to Peer Perform from Outperform at Wolfe Research
• Others:
  • Arcturus Therapeutics (ARCT) initiated with an Outperform at Leerink Partners; tgt $70
  • Ardent Health Partners (ARDT) initiated with a Buy at Truist; tgt $21
  • Ardent Health Partners (ARDT) initiated with an Outperform at Leerink Partners; tgt $23
  • Ardent Health Partners (ARDT) initiated with an Outperform at Mizuho; tgt $20
  • Ardent Health Partners (ARDT) initiated with a Neutral at JP Morgan; tgt $18
  • Ardent Health Partners (ARDT) initiated with an Overweight at Morgan Stanley; tgt $27
  • Ardent Health Partners (ARDT) initiated with an Outperform at RBC Capital Mkts; tgt $23
  • Conagra (CAG) initiated with a Buy at Goldman; tgt $36
  • Hershey Foods (HSY) initiated with a Sell at Goldman; tgt $185
  • J. Jill (JILL) initiated with a Hold at TD Cowen; tgt $37
  • Kellanova (K) initiated with a Neutral at Goldman; tgt $75
  • Kraft Heinz (KHC) initiated with a Sell at Goldman; tgt $34
  • LENZ Therapeutics (LENZ) initiated with a Buy at H.C. Wainwright; tgt $38

• Econ Data (Tuesday):
  • 6:00 ET: July NFIB Small Business Optimism (prior 91.5)
  • 8:30 ET: July PPI (Briefing.com consensus 0.1%; prior 0.2%) and Core PPI (Briefing.com consensus 0.2%; prior 0.4%)
• Earnings:
  • Monday (Aug 12)
    • Pre-Market: BLDP GOLD FTRE BEKE MNDY
    • After-Hours: DHT KGS PACS
  • Tuesday (Aug 13)
    • Pre-Market: HD HBM HUYA IHS JHX LOAR MLCO MRSN MSGS ONON PSFE SE SLF TLN TME
    • After-Hours: IMOS FNV IBTA INTA MRCY NATL NPCE USPH XP
  • Wednesday (Aug 14)
    • Pre-Market: ARCO EAT CAE CAH DOLE GLBE JD MRX PFGC RSKD SDHC UBS
    • After-Hours: CSCO DLO LITE PYCR STNE
  • Thursday (Aug 15)
    • Pre-Market: BABA AIT CLBT DE GRAB NICE SPTN TPR WMT
    • After-Hours: AMCR AMAT COHR GLOB HRB
  • Friday (Aug 16)
    • Pre-Market: FLO
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike