After Hours Report

The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and Dow Jones Industrial Average (+0.02%) settled higher than yesterday's closing levels while the Russell 2000 underperformed, dropping 0.7%. 

Volume was below-average again, reflecting light participation in front of Labor Day. There was also a lack of market-moving news and a lack of strong buying interest in front of NVIDIA's (NVDA 128.30, +1.84, +1.5%) earnings after Wednesday's close, contributing to the muted action in the market.

Other mega cap and semiconductor-related names outperformed after lagging the broader market yesterday. The PHLX Semiconductor Index (SOX) jumped 1.1%, which leaves this week's loss at 1.4%. The Vanguard Mega Cap Growth ETF (MGK) settled 0.3% higher, leaving it down 0.3% since Friday.

Apple (AAPL 228.03, +0.85, +0.4%) and Eli Lilly (LLY 954.48, +3.95, +0.4%) were among the top performers in the mega cap space. AAPL traded higher after naming Kevan Parekh as its new CFO and LLY traded up on its announcement of a Zepbound savings program for non-covered patients with an on-label prescription that will feature single-dose vials priced at a 50% or greater discount through its self-pay channel.

The performance of the S&P 500 sectors was mixed. The information technology (+0.6%) and financial (+0.5%) sectors, which make up nearly 45% of the index, closed at the top of the leaderboard. Energy (-0.9%) was the worst performing sector amid falling oil prices. WTI crude oil futures slid 2.3% to $75.61/bbl.

The 2-yr note yield fell three basis points to 3.90% and the 10-yr note yield rose one basis point to 3.83%. This price action followed today's $69 billion 2-yr note auction, which met solid demand.

• S&P 500: +18.3% YTD
• Nasdaq Composite: +18.0% YTD
• S&P Midcap 400: +10.6% YTD
• Dow Jones Industrial Average: +9.5% YTD
• Russell 2000: +8.6% YTD

Reviewing today's economic releases:

• The Conference Board's Consumer Confidence Index improved to 103.5 in August (Briefing.com consensus 100.0) from an upwardly revised 101.9 (from 100.3) in July.
  • The key takeaway from the report is that consumers are starting to show more concern about labor market conditions, which could eventually translate into lower consumer spending activity if that labor market angst leads to deferred discretionary spending decisions.

Wednesday's economic data is limited to the weekly MBA Mortgage Applications Index at 7:00 ET and the weekly EIA Crude Oil Inventories at 10:30 ET.

Overseas:

• Europe: DAX +0.4%, FTSE +0.2%, CAC -0.3%
• Asia: Nikkei +0.7%, Hang Seng +0.4%, Shanghai -0.2%

Commodities:

• Crude Oil -1.81 @ 75.61
• Nat Gas -0.05 @ 2.08
• Gold -1.00 @ 2553.90
• Silver -0.01 @ 29.98
• Copper +0.08 @ 4.30

After-Hours Spotlight:

• Ambarella (AMBA) beats by $0.06, beats on revs; guides Q3 revs above consensus... AMBA up 19.7%
• Box (BOX) beats by $0.04, reports revs in-line; guides Q3 EPS above consensus, revs above consensus; guides FY25 EPS above consensus, revs above consensus; expands repurchase plan... BOX up 5.3%
• e.l.f. Beauty (ELF) announces $500 million share repurchase program... ELF up 3.7%
• Leonardo DRS (DRS) receives a $117 mln order for continued production of its next-generation thermal weapon sights for the U.S. Army... DRS up 5.6%
• nCino (NCNO) beats by $0.01, beats on revs; guides Q3 EPS in-line, revs below consensus; guides FY25 EPS in-line, revs in-line... NCNO down 8.9%
• Nordstrom (JWN) beats by $0.25, reports revs in-line, comps +1.9%; guides FY25 EPS midpoint above consensus... JWN up 8.9%
• PVH (PVH) beats by $0.72, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS above consensus, reaffirms FY25 revs guidance... PVH down 7.9%
• Semtech (SMTC) beats by $0.02, beats on revs; guides Q3 EPS in-line, revs above consensus... SMTC up 6.1%

Fair Value for Wednesday, August 28:

• S&P 500: 5,643
• Nasdaq 100: 19,649
• DJIA: 41,338

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

• Earnings/Guidance (Full Earnings Calendar):
  • American Woodmark (AMWD) misses by $0.48, misses on revs; guides FY25 revs below consensus
  • Bank of Montreal (BMO) misses by CAD0.12, reports revs in-line
  • Bank of Nova Scotia (BNS) beats by CAD0.01, misses on revs
  • BHP Group (BHP) reports FY24 results; revs rise 3% yr/yr; provides outlook
  • Gaotu Techedu (GOTU) beats on top and bottom lines; sees Q3 revs in-line
  • Hain Celestial (HAIN) beats by $0.03, reports revs in-line, guides for FY25 organic net sales to be flat or better
  • HEICO (HEI) beats by $0.05, reports revs in-line
  • Molecular Partners AG (MOLN) reports 1H24 results and provides clinical update
  • ScanSource (SCSC) misses by $0.13, misses on revs; guides FY25 revs in-line
  • Trip.com Group (TCOM) beats by RMB2.03, reports revs in-line
  • Tuya (TUYA) reports Q2 results, revs up 28.6%
  • Woodside Energy Group (WDS) reports H1 results
• General News
  • All out war between Israel and Hezbollah has been averted, but regional conflicts continue, according to the New York Times
  • Vice President Kamala Harris wants to increase taxes on high earners while giving parents tax breaks, according to the Wall Street Journal
  • IDC says worldwide spending on artificial intelligence forecast to reach $632 billion in 2028
  • Banks lose challenge to CFPB rule on data collection, according to Reuters
  • Achieve Life Sciences (ACHV) announces that Richard Stewart, the company's co-founder and current Executive Chairman, will reassume the role of CEO
  • Addex Therapeutics (ADXN) and Indivior select clinical candidates from GABAB positive allosteric modulator research collaboration
  • Amazon (AMZN) aiming to introduce a delayed Alexa subscription for artificial intelligence in October, according to the Washington Post
  • Amazon’s (AMZN) Wondery reaches a landmark deal with Jason and Travis Kelce’s ‘New Heights’ podcast
  • Apple (AAPL) CFO Luca Maestri to transition from CFO role; names Kevan Parekh as new CFO
  • Aura Biosciences (AURA) announces the presentation of phase 2 end of study data evaluating suprachoroidal administration of bel-sar for the first-line treatment of patients with early-stage Choroidal Melanoma at The Retina Society annual meeting
  • Autolus Therapeutics (AUTL) presents clinical data update at the Society of Hematologic Oncology (SOHO) Annual Meeting 2024
  • Avista (AVA) announces retirement of CEO Dennis Vermillion, effective in the first quarter of 2025
  • Banco Santander (SAN) announces commencement of a program to repurchase own shares
  • BAIYU Holdings' (BYU) Shenzhen Baiyu Jucheng Data Technology entered into a share purchase agreement with Guangzhou Changmao Supply Chain
  • Boeing (BA): China Commercial Fleet to More than Double by 2043 for Growth and Modernization
  • 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
  • Centene (CNC) will not pay commissions to agents to help people sign up with Medicare drug plans, according to Stat News
  • ChargePoint (CHPT) and Daimler Buses for partnership to enable seamless integration of vehicle telematics solutions
  • Criteo (CRTO) CEO Megan Clarken to retire within the next 12 months
  • CrossFirst Bankshares (CFB) will merge with and into Busey (BUSE) in an all-common stock transaction valued at approximately $916.8 million
  • Delcath Systems, Inc. (DCTH) Announces Promising Results from Independent Study on Repeated Hepatic Chemosaturation for Liver Tumors
  • DraftKings (DKNG) was sued by the National Football League Players Association (NFLPA) today on accusation that it refused to pay what it owes for using NFL player likenesses on NFTs, according to Reuters
  • Duke Energy (DUK): U.S. Department of Energy awards Duke Energy project $57 million in cost-share funding to enhance North Carolina’s energy grid
  • Eli Lilly (LLY) releases Zepbound single-dose vials; Distributed through LillyDirect's self-pay channel
  • Exxon Mobil (XOM) aims to put $1 bln in conventional Permian assets up for sale, according to Bloomberg
  • Flutter Entertainment (FLUT): Aviator LLC wins $330 million trademark and copyright claim against gaming operators Spribe OÜ and Adjarabet
  • Healthcare Realty (HR) announces that it contributed $118 mln of additional properties to its KKR joint venture
  • Hertz (HTZ) Further strengthens Board with 2 new members
  • HP Inc (HPQ); Commerce Department announces preliminary terms with HP to support development and commercialization of cutting-edge semiconductor technologies
  • Insulet Corporation (PODD): Omnipod 5 Automated Insulin Delivery System is now FDA-cleared for People with Type 2 Diabetes
  • Intel (INTC) Board member Lip-Bu Tan left because of differences with management over size of workforce and culture, according to Reuters
  • Invivyd (IVVD) announces PEMGARDA demonstrated 84% relative risk reduction in symptomatic COVID-19 compared to placebo in an exploratory analysis from ongoing canopy phase 3 clinical trial
  • JD.com (JD) announces $5.0 billion new share repurchase program
  • L3Harris (LHX) awarded a $587.4 mln US Navy contract
  • Legend Biotech (LEGN): NMPA approves ciltacabtagene autoleucel (cilta-cel) for the treatment of adult patients with relapsed or refractory multiple myeloma in China
  • Lemaitre Vascular (LMAT) announced that Joseph P. Pellegrino, Jr. will retire as an employee of the company, including as Chief Financial Officer, effective as of March 7, 2025; reaffirmed guidance
  • Leslie's (LESL) announces CEO transition as current CEO Michael Egeck departs the company and resigns from the Board; company also reaffirms FY24 guidance
  • Linde plc (LIN) signs long-term agreement to supply clean hydrogen to Dow’s Path2Zero Project in Canada
  • Lockheed Martin (LMT) provides update on F-35 Technology Refresh 3
  • Merck (MRK) Announces Phase 3 Trial Initiation for Bomedemstat, an Investigational Candidate for the Treatment of Certain Patients With Essential Thrombocythemia
  • Meta (META) CEO Mark Zuckerberg says the Biden administration pressured the company to censor coronavirus related content, according to Reuters
  • NASDAQ (NDAQ) announces mid-month open short interest positions in Nasdaq stocks
  • National Storage Affiliates (NSA) and Solar Landscape enter into an agreement to pursue the installation of new solar capacity on rooftops across the Company’s properties nationwide
  • Park Hotels & Resorts (PK) provides update on Hurricane Hone
  • Pfizer (PFE) launches PfizerForAll, a digital platform that helps simplify access to healthcare
  • Philip Morris International (PM) to expand production capacity at Kentucky facility
  • Plymouth Industrial REIT (PLYM) announces agreement with Sixth Street that includes a $250 mln strategic investment from Sixth Street; also reaffirms FY24 Core FFO guidance
  • PulteGroup (PHM) outgoing CFO sells nearly half of holdings - sold 71,007 shares at $134.34 - $135.22 worth about $9.6 mln
  • Roche Hldg (RHHBY) receives EU approval for PiaSky
  • Sapiens Int'l (SPNS) launches latest version of Sapiens CoreSuite for Property & Casualty for the North American insurance market
  • Siemens (SIEGY) Mpox testing kit gets approval from India regulators, according to Bloomberg
  • Sonder (SOND) COO Deeksha Hebbar resigned
  • Sony (SONY) aiming to increase PlayStation 5 prices by 20% in Japan, according to Reuters
  • Sun Life (SLF) announces renewal of its normal course issuer bid
  • Trinity Biotech (TRIB) announces that it has received substantial additional orders for TrinScreen HIV
  • Tuya (TUYA) announces that Ms. Yao Liu has tendered her resignation as a director and CFO, Mr. Yi Yang will take the additional role of CFO; effective September 16
  • Vale S.A. (VALE) names Gustavo Pimenta as its next CEO
  • Walmart (WMT) aiming to open its fulfillment services to merchants out of its marketplace, according to The Wall Street Journal

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

• Upgrades:
  • Cleveland-Cliffs (CLF) upgraded to Buy from Neutral at Seaport Research Partners; tgt $16.50
  • Coterra Energy (CTRA) upgraded to Buy from Neutral at ROTH MKM; tgt raised to $29
  • Daqo New Energy (DQ) upgraded to Hold from Reduce at HSBC Securities; tgt $15
  • Energizer (ENR) upgraded to Buy from Hold at Truist; tgt raised to $40
  • Thomson Reuters (TRI) upgraded to Sector Outperform from Sector Perform at Scotiabank; tgt raised to $182
  • XPeng (XPEV) upgraded to Buy from Sell at BOCOM Int'l
• Downgrades:
  • Aadi Bioscience (AADI) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $1.75
  • Cinemark (CNK) downgraded to Neutral from Buy at B. Riley Securities; tgt $31
  • Daimler Truck Holding AG (DTRUY) downgraded to Neutral from Buy at Goldman
  • Hershey Foods (HSY) downgraded to Sell from Neutral at Citigroup; tgt lowered to $182
  • Northrop Grumman (NOC) downgraded to Neutral from Overweight at Alembic Global Advisors; tgt $560
  • PagSeguro Digital (PAGS) downgraded to Neutral from Outperform at Bradesco BBI
  • Pinduoduo (PDD) downgraded to Neutral from Buy at Citigroup; tgt lowered to $120
  • SiTime (SITM) downgraded to Underweight from Equal Weight at Barclays; tgt $90
  • Vasta Platform (VSTA) downgraded to Underweight from Overweight at JP Morgan
• Others:
  • AllianceBernstein (AB) initiated with an Equal Weight at Barclays; tgt $35
  • Ameresco (AMRC) named Bullish Fresh Pick at Robert W. Baird
  • Antero Resources (AR) initiated with a Buy at ROTH MKM; tgt $32
  • Apollo Global Management (APO) initiated with a Buy at Redburn Atlantic; tgt $153
  • Ares Management (ARES) initiated with a Neutral at Redburn Atlantic; tgt $140
  • BlackRock (BLK) initiated with an Overweight at Barclays; tgt $985
  • Blackstone (BX) initiated with a Neutral at Redburn Atlantic; tgt $134
  • Carlyle Group (CG) initiated with a Buy at Redburn Atlantic; tgt $55
  • Enersys (ENS) initiated with a Buy at ROTH MKM; tgt $120
  • First Watch Restaurant Group (FWRG) initiated with a Buy at The Benchmark Company; tgt $23
  • Franklin Resources (BEN) initiated with an Underweight at Barclays; tgt $20
  • GitLab (GTLB) initiated with an Outperform at Robert W. Baird; tgt $59
  • Immunic (IMUX) initiated with a Buy at B. Riley Securities; tgt $6
  • Invesco (IVZ) initiated with an Equal Weight at Barclays; tgt $18
  • JFrog (FROG) initiated with an Outperform at Robert W. Baird; tgt $32
  • KKR (KKR) initiated with a Buy at Redburn Atlantic; tgt $153
  • Krispy Kreme, Inc. (DNUT) resumed with an In-line at Evercore ISI; tgt $13
  • Rezolute (RZLT) initiated with a Buy at Guggenheim; tgt $11
  • T. Rowe Price (TROW) initiated with an Underweight at Barclays; tgt $99
  • Victory Capital (VCTR) initiated with an Equal Weight at Barclays; tgt $58
  • Virtus Investment Partners (VRTS) initiated with an Underweight at Barclays; tgt $206

• Econ Data (Wednesday):
  • 07:00 ET: Mortgage Bankers Association Weekly Mortgage Applications Index (Prior -10.1%)
  • 10:30 ET: EIA Crude Oil Inventories (Prior -4.65M)
• Treasury Auctions:
  • 13:00 ET: $70 bln 5-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