After Hours Report

The stock market had a mixed showing on the first day of the new week. The S&P 500 (-0.3%), Nasdaq Composite (-0.9%), and Russell 2000 (-0.04%) settled with losses while the Dow Jones Industrial Average (+0.2%) closed at a new record high. 

The mixed showing was a reflection of some trepidation following last week's solid gains in reaction to Fed Chair Powell's dovish remarks. There also wasn't much news to respond to and investors are in vacation-mode ahead of Labor Day, which contributed to the muted action. 

Advancers led decliners by an 11-to-10 margin at the NYSE and decliners lead advancers by the same margin at the Nasdaq. 

NVIDIA (NVDA 126.46, -2.91, -2.3%) was an influential laggard in front of its earnings report after Wednesday's close. This price action was related to consolidation activity, which also weighed down other mega cap and semiconductor-related names. Meta Platforms (META 521.12, -6.88, -1.3%) and Broadcom (AVGO 159.62, -6.74, -4.1%) were among standouts in that respect.

NVDA shares are still 155.4% higher this year; META shares are up 47.2% in 2024; and AVGO shows a 43.0% gain this year. 

The information technology sector (-1.1%) logged the biggest decline among the six S&P 500 sectors that closed lower. The consumer discretionary sector was the next worst performer, dropping 0.8%. Meanwhile, the energy sector showed relative strength, gaining 1.1% today amid rising oil prices.

WTI crude oil futures settled 3.4% higher at $77.42/bbl following retaliatory strikes over the weekend by Israel and Hezbollah. Additionally, Libya's eastern government has said it will stop oil production, according to Bloomberg.

Treasury yields settled little changed from Friday. The 2-yr note yield rose two basis points to 3.82% and the 10-yr note yield settled one basis point higher at 3.82%.

• S&P 500: +18.1% YTD
• Nasdaq Composite: +17.8% YTD
• S&P Midcap 400: +10.9% YTD
• Russell 2000: +9.4% YTD
• Dow Jones Industrial Average: +9.4% YTD

Reviewing today's economic data:

• July Durable Goods - ex transportation -0.2% (Briefing.com consensus 0.1%); Prior was revised to 0.1% from 0.5%, July Durable Orders 9.9% (Briefing.com consensus 4.0%); Prior was revised to -6.9% from -6.6%
  • The key takeaway from the report is that business spending was soft in July, evidenced by a 0.1% decline in new orders for nondefense capital goods excluding aircraft.

Looking ahead, Tuesday's economic data features:

• 9:00 ET: June FHFA Housing Price Index (prior 0.0%) and June S&P Case-Shiller Home Price Index (Briefing.com consensus 6.0%; prior 6.8%)
• 10:00 ET: August Consumer Confidence (Briefing.com consensus 100.0; prior 100.3)

Overseas:

• Europe: DAX -0.1%, FTSE market closed, CAC -0.2%
• Asia: Nikkei -0.9%, Hang Seng +1.1%, Shanghai +0.0%

Commodities:

• Crude Oil +2.55 @ 77.42
• Nat Gas -0.05 @ 2.13
• Gold +7.90 @ 2554.90
• Silver +0.18 @ 29.99
• Copper +0.01 @ 4.22

After-Hours Spotlight:

• Apple (AAPL) CFO Luca Maestri to transition from CFO role on January 1, 2025; names Kevan Parekh as new CFO... AAPL down 1.0%
• Avista (AVA) announces retirement of CEO Dennis Vermillion, effective in the first quarter of 2025... AVA unchanged
• BWX Technologies (BWXT) announces contract from National Nuclear Security Administration to complete engineering study to evaluate options for the deployment of a centrifuge pilot plant... BWXT up 0.1%
• Criteo (CRTO) CEO Megan Clarken to retire within the next 12 months... CRTO down 3.3%
• Delcath Systems, Inc. (DCTH) announces promising results from independent study on Repeated Hepatic Chemosaturation for liver tumors... DCTH up 2.3%
• Graco (GGG) acquires the megasonic and ultrasonic wet cleaning systems business of PCT Systems... GGG down 1.9%
• HEICO (HEI) beats by $0.05, reports revs in-line... HEI down 2.5%
• Insulet Corporation (PODD): Omnipod 5 Automated Insulin Delivery System is now FDA-cleared for people with Type 2 diabetes... PODD up 2.1%
• Leslie's (LESL) announces CEO transition as current CEO Michael Egeck departs the company and resigns from the Board; company also reaffirms FY24 guidance... LESL up 2.6%

Fair Value for Tuesday, August 27:

• S&P 500: 5,634
• Nasdaq 100: 19,586
• DJIA: 41,321

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

• Earnings/Guidance (Full Earnings Calendar):
  • Alarum Technologies Ltd. (ALAR) reports Q2 results
  • Daqo New Energy (DQ) Announces Unaudited Second Quarter 2024 Results
  • Dycom (DY) provides guidance in investor slides
  • Fanhua (FANH) expects its adjusted EBITDA for the first half of 2024 to be in the range of RMB 70-80 mln
  • Harmony Gold (HMY) reported operating and guidance updates; delayed FY24 financial statements until Sept 5
  • Pinduoduo (PDD) beats by RMB2.81, misses on revs
• General News
  • Israel launched preemptive strike against Hezbollah targets in southern Lebanon and Hezbollah fired rockets in response
  • Israel and Hezbollah signal willingness to avoid wider conflict, according to the Wall Street Journal
  • President Biden is expected to announce steep tariff increases on certain imports from China this week, according to Reuters
  • Canada aiming to impose tariffs on China EVs, according to Toronto Star
  • Seattle airport was impacted by cyberattacks, according to Seattle News
  • Department of Energy announced that contracts have been awarded for the acquisition of nearly 2.5 million barrels of crude oil for the Strategic Petroleum Reserve
  • Libya’s eastern government will stop all oil production, according to Bloomberg
  • Global strategic preparedness and response plan launched by WHO to contain mpox outbreak
  • World Health Organization regulations are slowing release of Mpox vaccines, according to the New York Times
  • AdaptHealth (AHCO) announces that Scott Barnhart has been appointed as Chief Operating Officer, effective September 23, 2024
  • Apple (AAPL) considers moving into robotics industry, according to Bloomberg
  • Boeing (BA): NASA decides to Bring Starliner spacecraft back to earth without crew
  • Boeing (BA): Saudi Arabia’s sovereign wealth fund in discussions to purchase Boeing and Airbus (EADSY) freighters for a cargo airline, according to Bloomberg
  • Canadian Nat'l Rail (CNI) receives order of binding arbitration
  • Canadian Pacific Kansas City (CP) to restart rail operations following CIRB order
  • Chipotle Mexican Grill (CMG) Teamsters rally in lansing to demand a fair contract
  • Compass Diversified (CODI) announces Stephen Keller as Chief Financial Officer
  • CSX (CSX) Achieves Labor Agreements with Seven Additional Unions, Improves Wages and Benefits for Railroad Workers
  • Dril-Quip (DRQ) announce withdrawal of charter amendment proposal
  • eBay (EBAY): Ikea aiming to introduce marketplace to compete with EBAY, according to Financial Times
  • Eliem Therapeutics (ELYM) appointed Brett Kaplan, M.D., as Chief Operating Officer, and Nishi Rampal, M.D., as Senior Vice President, Clinical Development
  • Evergy (EVRG) announces W. Bryan Buckler will become the company’s executive vice president and chief financial officer, effective October 1, 2024
  • Gannett (GCI) announces commitment letter to secure new credit facility to refinance existing debt
  • Granite Point Mortgage (GPMT) announces that Blake Johnson will be appointed Chief Financial Officer, effective December 1, 2024
  • IBM (IBM) tells employees it's closing its China R&D division, according to the Wall Street Journal
  • Intel (INTC) has hired advisors to help defend itself against activist investors, according to CNBC
  • Joby Aviation (JOBY) demonstrated autonomous logistics aircraft operations in an evolving mission environment, in partnership with the U.S. Air Force during the ‘Agile Flag 24-3’ exercise
  • Johnson & Johnson (JNJ) in discussions with holdouts regarding talc settlement, according to Reuters
  • Lululemon (LULU) having success with less expensive versions of premium products, according to the Wall Street Journal
  • Merck (MRK) receives European Commission approval for WINREVAIR in combination with other pulmonary arterial hypertension therapies for the treatment of PAH in adult patients with Functional Class II-III
  • Nestle (NSRGY) aiming to keep its Health Science business, according to Reuters
  • Norfolk Southern (NSC) reaches tentative collective agreements with four labor unions
  • OGE Energy (OGE) appointed Charles B. Walworth as the interim Chief Financial Officer in addition to his current responsibilities as the Treasurer of OGE Energy and OG&E
  • Paramount (PARA): Edgar Bronfman wants to partner Paramount with Amazon (AMZN) and Apple (AAPL), according to Bloomberg
  • Regeneron Pharma's (REGN) Ordspono Approved in the EU
  • Regeneron Pharma (REGN) reports latest Dupixent (dupilumab) and Itepekimab Data at ERS Highlight Scientific Innovation and Leadership in Respiratory Diseases
  • Rivian (RIVN): A fire occurred at a Rivian plant parking lot, according to Reuters
  • SolarEdge Technologies (SEDG) announced that Zvi Lando has stepped down as SolarEdge’s CFO
  • Telegram CEO Pavel Durov was detained by French authorities, according to the Wall Street Journal
  • Tesla (TSLA): Former President Trump says he doesn't think Tesla CEO Elon Musk will have time to be in his cabinet, according to CNBC
  • Uber (UBER): Dutch DPA imposes a fine of 290 million euro on Uber because of transfers of drivers' data to the US
  • Universal Logistics (ULH) terminates operations of subsidiary, Universal Capacity Solutions
  • V2X (VVX) receives $747 million contract for crucial F-5 aircraft maintenance
  • XPeng (XPEV) was informed by Xiaopeng He, the co-founder, executive director, chairman, chief executive officer and a controlling shareholder of the Company, that he had purchased in the open market

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

• Upgrades:
  • American Homes 4 Rent (AMH) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $42
  • BJ's Wholesale (BJ) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $78
  • Camden Property (CPT) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $127
  • Kymera Therapeutics (KYMR) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $65
  • Mid-America Aptmt (MAA) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $174
  • Ollie's Bargain Outlet (OLLI) upgraded to Buy from Accumulate at Gordon Haskett; tgt raised to $107
  • Petrobras (PBR) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $20
  • Xcel Energy (XEL) upgraded to Buy from Hold at Argus; tgt $68
• Downgrades:
  • BlackRock TCP Capital (TCPC) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $8
  • Compania Cervecerias Unidas (CCU) downgraded to Sell from Neutral at Goldman; tgt $10.50
  • Enova International (ENVA) downgraded to Neutral from Buy at Janney
  • Equity Residential (EQR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $77
  • Invitation Homes (INVH) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $38
  • MoonLake Immunotherapeutics (MLTX) downgraded to Peer Perform from Outperform at Wolfe Research
  • Oaktree Specialty Lending Corp (OCSL) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $17
  • Premier (PINC) downgraded to Hold from Buy at The Benchmark Company
  • Wayfair (W) downgraded to Hold from Buy at Argus
• Others:
  • Cormedix (CRMD) initiated with a Buy at Rodman & Renshaw; tgt $13
  • First Bancorp (FBP) resumed with a Neutral at Piper Sandler; tgt $22
  • FTAI Aviation Ltd. (FTAI) resumed with a Buy at BTIG Research; tgt raised to $140
  • OFG Bancorp (OFG) resumed with an Overweight at Piper Sandler; tgt $49
  • Popular (BPOP) resumed with an Overweight at Piper Sandler; tgt $112
  • PTC Therapeutics (PTCT) resumed with a Buy from Neutral at UBS; tgt $47
  • Summit Materials (SUM) initiated with an Overweight at Morgan Stanley; tgt $51

• Econ Data (Tuesday):
  • 09:00 ET: June FHFA Housing Price Index (prior 0.0%)
  • 09:00 ET: June S&P Case-Shiller Home Price Index (Briefing.com consensus 6.0%; prior 6.8%)
  • 10:00 ET: August Consumer Confidence (Briefing.com consensus 100.0; prior 100.3)
• Treasury Auctions:
  • 13:00 ET: $69 bln 2-yr Treasury note auction results
• Earnings:
  • Monday (Aug 26)
    • Pre-Market: PDD TCOM
    • After-Hours: HEI
  • Tuesday (Aug 27)
    • Pre-Market: AMWD HAIN SCSC
    • After-Hours: AMBA BOX NCNO JWN PVH SMTC S
  • Wednesday (Aug 28)
    • Pre-Market: ANF BBWI CHWY DCI FL SJM KSS LI PDCO
    • After-Hours: AFRM COO CRWD FIVE GEF GES HPQ NTAP PSTG NTNX NVDA OKTA CRM VEEV VSCO
  • Thursday (Aug 29)
    • Pre-Market: FLWS AEO BBY BIRK BF.B BURL CPB DG GMS MBUU MCFT OLLI PLAB TITN
    • After-Hours: ADSK DELL DOMO ESTC GAP HCP LULU MRVL MDB SSYS ULTA
  • Friday (Aug 30)
    • Pre-Market: FRO JKS
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike