After Hours Report

There was a negative bias in today's session. The S&P 500 (-0.9%), Nasdaq Composite (-1.7%), Dow Jones Industrial Average (-0.4%), and Russell 2000 (-1.0%) closed near their lows of the day. 

The selling activity was driven by some normal consolidation interest after a solid run for the major indices. Downside moves were not that extreme, though, leaving the S&P 500 1.7% off its all-time high. Also, the equal-weighted S&P 500 declined only 0.3% today. 

Losses in mega caps and semiconductor-related shares had an outsized impact on index moves. The PHLX Semiconductor Index (SOX) registered a 3.4% loss and the Vanguard Mega Cap Growth ETF (MGK) fell 1.5%.

This price action led the heavily-weighted information technology sector (-2.1%) to log the biggest decline among the S&P 500 sectors. The next worst performing sector was consumer discretionary (-1.9%). The only sectors to close higher were the real estate (+0.6%), financials (+0.5%), energy (+0.3%) sectors. 

Today's economic data didn't garner a big response from stocks. The lineup featured some slightly worse than expected initial jobless claims, some weaker than expected preliminary manufacturing PMI data for August, some stronger than expected preliminary Services PMI data for August, and some better than expected existing home sales for July, which were up 1.3% month-over-month but still down 2.5% year-over-year.

Friday's economic lineup is limited to the July New Home Sales report at 10:00 ET. Tomorrow's headline event is Fed Chair Powell's speech at the Jackson Hole Symposium.

The 10-yr note yield settled eight basis points higher at 3.86% and the 2-yr note yield settled nine basis points higher at 4.01%.

• Nasdaq Composite: +17.4% YTD
• S&P 500: +16.8% YTD
• S&P Midcap 400: +8.9% YTD
• Dow Jones Industrial Average: +8.0% YTD
• Russell 2000: +6.1% YTD

Overseas:

• Europe: DAX +0.3%, FTSE +0.1%, CAC unch
• Asia: Nikkei +0.7%, Hang Seng +1.4%, Shanghai -0.3%

Commodities:

• Crude Oil +1.04 @ 73.01
• Nat Gas -0.11 @ 2.06
• Gold -29.60 @ 2517.90
• Silver -0.45 @ 29.08
• Copper -0.05 @ 4.14

After-Hours Spotlight:

• CAVA Group (CAVA) beats by $0.04, beats on revs; comps +14.4%; increases FY24 adjusted EBITDA outlook and raises comp guidance... CAVA up 6.3%
• Intuit (INTU) beats by $0.14, beats on revs; guides OctQ EPS and revs below consensus; guides FY25 EPS above consensus, revs in-line... INTU up 2.7%
• Rocket Lab USA (RKLB): Former Lockheed Martin (LMT) CFO Kenneth Possenriede appointed to RKLB's Board of Directors... RKLB up 4.4%
• Ross Stores (ROST) beats by $0.09, reports revs in-line, comps of +4%; guides Q3 EPS in-line; guides Q4 (Jan) EPS in-line, FY25 EPS in-line; issues FY25 revenue guidance on the call; expects growth in-line with consensus... ROST up 6.0%
• Uber (UBER) and Cruise (GM) sign multiyear partnership to bring Cruise autonomous vehicles to Uber platform... UBER down 2.8%; GM up 1.7%
• Workday (WDAY) beats by $0.10, reports revs in-line, reaffirms FY25 subscription revenue guidance, increases non-GAAP operating margin guidance; also announces new partnership with Equifax... WDAY down 4.3%

Fair Value for Friday, August 22:

• S&P 500: 5,592
• Nasdaq 100: 19,575
• DJIA: 40,816

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

• Earnings/Guidance (Full Earnings Calendar):
  • Advance Auto (AAP) misses by $0.18, reports revs in-line; guides FY24 EPS below consensus, revs below consensus
  • Aegon N.V. (AEG) reports H1 results; raises dividend
  • Agilent (A) beats by $0.06, beats on revs; guides Q4 EPS below consensus, revs in-line
  • Allete (ALE) shareholders voted today to approve proposed transaction with Canada Pension Plan Investment Board and Global Infrastructure Partners
  • Baidu (BIDU) beats by $2.45, reports revs in-line
  • Bavarian Nordic A/S (BVNRY) reports H1 results
  • Bilibili (BILI) beats by RMB 0.10, reports revs in-line
  • BJ's Wholesale (BJ) beats by $0.08, beats on revs; reaffirms FY25 EPS guidance
  • BW LPG Ltd (BWLP) beats by $0.03; misses on revs
  • Canadian Nat'l Rail (CNI) moves forward with lock out
  • Canadian Pacific Kansas City (CP) locks out TCRC employees, moves to full shut down of Canadian rail network
  • Canadian Solar (CSIQ) misses by $0.19, beats on revs; guides Q3 revs below consensus; guides FY24 revs below consensus
  • Corporación América Airports (CAAP) misses by $0.01, misses on revs
  • Lancaster Colony (LANC) misses by $0.04, misses on revs
  • Microsoft (MSFT) provides FY25 investor metrics; updates 1Q25 outlook in slide deck
  • NetEase (NTES) beats by RMB0.08, misses on revs
  • Nordson (NDSN) beats by $0.08, reports revs in-line; guides FY24 EPS in-line, revs above consensus
  • OSI Systems (OSIS) beats by $0.05, beats on revs; guides FY25 EPS above consensus, revs above consensus
  • Peloton (PTON) beats by $0.08, beats on revs; guides Q1 revs below consensus; guides FY25 revs below consensus
  • Snowflake (SNOW) beats by $0.02, beats on revs, slightly raises FY25 product revenue guidance, reaffirms non-GAAP operating margin guidance; Authorized the repurchase of additional $2.5 bln of common stock
  • SSR Mining (SSRM) reports precautionary suspension of operations at Seabee due to forest fires
  • Synopsys (SNPS) beats by $0.15, reports revs in-line; guides Q4 EPS above consensus, revs in-line
  • Tesla (TSLA): NTSB says "The NTSB, in coordination with the California Highway Patrol, has opened a safety investigation into the August 19th crash and fire involving a Tesla electric powered truck tractor on Interstate 80 near Emigrant Gap, California"
  • Toronto-Dominion Bank (TD) misses by CAD0.03, beats on revs
  • Urban Outfitters (URBN) beats by $0.24, reports revs in-line; comps +2.0%
  • Viking Holdings Ltd (VIK) reports Q2 (Jun) results, revs in-line
  • Weibo (WB) beats by $0.06, reports revs in-line
  • Williams-Sonoma (WSM) beats by $0.13, misses slightly on revs, comps -3.3%; guides FY25 revs below consensus, reaffirms EPS
  • Wolfspeed (WOLF) reports Q4 (Jun) results, revs in-line; guides Q1 EPS below consensus, revs in-line
  • Zoom Video (ZM) beats by $0.18, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus
  • Zuora (ZUO) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs in-line; raises FY25 EPS and revenue guidance
• General News
  • Minnesota Governor Tim Walz accepted the Democratic nomination for Vice President
  • Canadian rail strike could impact supply chains, according to the New York 'Times
  • Vice President Kamala Harris will support cryptocurrency industry expansion, according to Bloomberg
  • Boston Fed President Susan Collins (not a voting FOMC member) says Fed rate cuts will be appropriate soon, according to Reuters
  • Philadelphia Fed President Patrick Harker (not a voting FOMC member) says he supports a September Fed cut, according to Reuters
  • Alibaba (BABA) and Tencent (TCEHY) targeting AI startups, according to the Wall Street Journal
  • Altria (MO) increases quarterly dividend to $1.02 per share from $0.98 per share
  • Amazon (AMZN): Teamsters win groundbreaking joint employer decision against Amazon
  • Argan (AGX) announces retirement of Richard Deily, effective September 15; Josh Bauger to succeed Mr. Deily as CFO
  • Autodesk (ADSK): Starboard still sees need for change at the comapny's executive level
  • B. Riley Financial (RILY) lender waiving convenants until October 30, according to Bloomberg
  • Banco Santander (SAN): UK CMA issues letter to Santander about breaching Part 2 of the Retail Banking Order
  • Barclays PLC (BCS): UK CMA issues letter to Barclays about breaching Part 5 of the Retail Banking Order
  • Bayer AG (BAYRY) initiates Phase II study of soluble guanylate cyclase activator (BAY3283142) in patients with chronic kidney disease
  • Berkshire Hathaway's (BRK.B) BNSF Railway says lockouts for Canadian railroads does not impact BNSF operations; shipments moving to and from Canada through interchange with Canadian railroads will not be moved during this work stoppage
  • Biogen (BIIB) receives authorization for Leqembi for Early Alzheimer's Disease in Great Britain
  • Bristol-Myers (BMY): Abata Therapeutics receives FDA Fast Track Designation for ABA-101 for the treatment of progressive multiple sclerosis
  • Charles Schwab (SCHW): TD Bank takes further provision of $2.6 bln in Q3 results; sells 40,500,000 shares of common stock of Charles Schwab, reducing its ownership interest to 10.1% from 12.3%
  • CSX (CSX) finalizes early labor agreements, securing wage increases and enhanced benefits
  • Deutsche Bank (DB) reaches agreements with over 80 plaintiffs representing around 60% of total claims in Postbank takeover litigation; settling on basis of 31 euros/share
  • Easterly Government Properties (DEA) President and Chief Operating Officer resigned
  • Globus Medical (GMED) announces commercial launch of the ADIRA XLIF Plate System
  • Liquidia Technologies (LQDA) files litigation to challenge regulatory exclusivity blocking access to YUTREPIA inhalation powder for patients suffering with PAH and PH-ILD
  • Merck (MRK): Health Canada approves KEYTRUDA for the treatment of adult patients with unresectable locally advanced or metastatic urothelial cancer (mUC) with no prior systemic therapy for mUC, in combination with enfortumab vedotin
  • Mitsubishi Financial (MUFG) reports additional investment in DMI Finance
  • Moderna (MRNA) confirms U.S. FDA approval for updated COVID-19 vaccine targeting KP.2 variant of SARS-CoV-2; 2024-2025 formula expected to be available across the U.S. in the days immediately following approval
  • Pfizer (PFE): FDA approves and authorizes updated mRNA COVID-19 vaccines to better protect against currently circulating variants
  • PG&E (PCG) working to combat uptick in fires ignited by its power lines, according to The Wall Street Journal
  • Radiant Logistics (RLGT) awarded five year contract with USAID as a global transportation provider for personnel and emergency disaster equipment
  • Raymond James (RJF) reports July 2024 Operating Data
  • Sibanye-Stillwater (SBSW) secures up to €500 million Green financing package for its Keliber lithium project
  • SIGA Technologies (SIGA) announces new contract awarded by U.S. department of defense for the procurement of $9 million of TPOXX
  • Stryker (SYK) announces definitive agreement to acquire Vertos Medical, Inc., expanding interventional pain management solutions
  • Toronto-Dominion Bank (TD) provides update on U.S. AML matters; has taken provision of US$2.6 bln; will be partially offset by Schwab (SCHW) share sale
  • Walmart+ (WMT) launches first-ever dining benefit with Burger King (QSR)
  • Walt Disney (DIS) names Board member James Gorman to chair its Succession Planning Committee
  • Zoom Video (ZM) CFO Kelly Steckelberg to resign; will continue to serve as CFO through the release of Q3 (Oct) results
  • Zura Bio Limited (ZURA) entered into a share surrender and warrant agreement with entities affiliated with Venrock Healthcare Capital Partners

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

• Upgrades:
  • Crocs (CROX) upgraded to Buy from Hold at Williams Trading
  • Estee Lauder (EL) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $114
  • Navigator Holdings (NVGS) upgraded to Buy from Neutral at Clarksons Platou; tgt $20
  • Select Water Solutions (WTTR) upgraded to Outperform from Market Perform at Northland Capital; tgt $14.50
  • SentinelOne (S) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $29
  • Unilever PLC (UL) upgraded to Buy from Underperform at BofA Securities; tgt raised to $72
• Downgrades:
  • Assurant (AIZ) downgraded to Neutral from Overweight at Piper Sandler; tgt $200
  • Goosehead Insurance (GSHD) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $90
  • Itau Unibanco Holding SA (ITUB) downgraded to Neutral from Buy at UBS
  • Sprout Social (SPT) downgraded to Underweight from Sector Weight at KeyBanc Capital Markets; tgt $28
  • TJX (TJX) downgraded to Neutral from Buy at Citigroup; tgt raised to $128
  • Urban Outfitters (URBN) downgraded to Market Perform from Outperform at Telsey Advisory Group; tgt $44
• Others:
  • Arcadium Lithium (ALTM) initiated with a Hold at Deutsche Bank; tgt $3
  • BrightView (BV) initiated with an Equal-Weight at Morgan Stanley; tgt $16
  • CubeSmart (CUBE) initiated with a Sector Outperform at Scotiabank; tgt $53
  • Dada (DADA) resumed with a Neutral at Daiwa Securities
  • Disc Medicine (IRON) initiated with an Overweight at Wells Fargo; tgt $75
  • Edwards Lifesciences (EW) added to 90-day Positive Catalyst Watch at Citigroup
  • Emergent BioSolutions (EBS) initiated with a Buy at Rodman & Renshaw; tgt $16
  • EPAM Systems (EPAM) initiated with a Hold at Deutsche Bank; tgt $204
  • Establishment Labs (ESTA) added to 90-day Positive Catalyst Watch at Citigroup
  • Flutter Entertainment (FLUT) initiated with an Overweight at Morgan Stanley; tgt $247
  • Globant (GLOB) initiated with a Hold at Deutsche Bank; tgt $210
  • Hims & Hers Health (HIMS) initiated with a Buy at Needham; tgt $24
  • INmune Bio (INMB) initiated with a Sector Outperform at Scotiabank; tgt $22
  • JD.com (JD) added to 30-day Positive Catalyst Watch at Citigroup
  • Journey Medical (DERM) initiated with a Buy at Rodman & Renshaw; tgt $9
  • Milestone Pharmaceuticals (MIST) initiated with a Buy at Rodman & Renshaw; tgt $9
  • Orchestra BioMed (OBIO) initiated with a Buy at H.C. Wainwright; tgt $14
  • Tandem Diabetes Care (TNDM) initiated with an Equal-Weight at Morgan Stanley; tgt $45
  • Tectonic Therapeutic (TECX) initiated with an Overweight at Wells Fargo; tgt $55
  • Unity Biotechnology (UBX) initiated with a Buy at Rodman & Renshaw; tgt $8
  • UroGen Pharma (URGN) initiated with a Buy at Guggenheim; tgt $40

• Econ Data (Friday):
  • 10:00 ET: July New Home Sales (Briefing.com consensus 628K; Prior 617K)
• Earnings:
  • Monday (Aug 19)
    • Pre-Market: EL DDD
    • After-Hours: FN PANW
  • Tuesday (Aug 20)
    • Pre-Market: AS GDS KC LOW MDT PINC VIPS
    • After-Hours: COTY KEYS LZB TOL ZTO
  • Wednesday (Aug 21)
    • Pre-Market: ADI DY M TGT TJX ZK
    • After-Hours: A NDSN SNOW SQM SNPS WOLF ZM
  • Thursday (Aug 22)
    • Pre-Market: AAP BIDU BILI BJ CSIQ LANC NTES PTON TD VIK WB
    • After-Hours: BILL CAVA INTU ROST WDAY
  • Friday (Aug 23)
    • Pre-Market: BKE
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike