After Hours Report

Today's trade started on a downbeat note after this morning's release of the August Consumer Price Index (CPI). The report stoked selling interest due to the understanding that core-CPI, which excludes food and energy, remained above the Fed's 2.0% target at 3.2% year-over-year. 

The S&P 500 was down as much as 1.6%, the Nasdaq Composite was down as much as 1.4%, the Russell 2000 was down as much as 1.9%, and the Dow Jones Industrial Average was down as much as 1.8%.

Stocks staged a turnaround, though, that left the major indices near session highs. The S&P 500 logged a 1.1% gain and the Nasdaq Composite rose 2.2%, propelled by strength in the semiconductor space and mega cap stocks. The Dow Jones Industrial Average and Russell 2000 logged slimmer gains.

This week's gains range from 1.3% to 4.2% in the three major indices. 

The recovery kicked into gear when the S&P 500 held above last Friday's low (5,402) on the initial retreat. The positive price action was helped by strength in NVIDIA (NVDA 116.91, +8.81, +8.2%), along with other semiconductor and mega cap shares.

The Vanguard Mega Cap Growth ETF (MGK) was up 2.1% and the PHLX Semiconductor Index (SOX) was up 4.9%.

Many stocks participated in the afternoon rally, leaving the equal-weighted S&P 500 0.1% higher and six S&P 500 sectors with gains. 

The information technology sector (+3.3%) was the best performer by a decent margin thanks to aforementioned gains. The consumer discretionary sector also showed strength, rising 1.3%.

The energy sector logged the biggest decline, down 0.9%, followed by the consumer staples sector (-0.9%).

Treasuries exhibited choppy action following the CPI report. The 2-yr note yield went from 3.55% to 3.69% and settled four basis points higher on the day at 3.65%. The 10-yr note yield went from 3.61% to 3.69% and settled one basis point higher on the day at 3.65%.

• S&P 500: +16.4% YTD
• Nasdaq Composite: +15.7% YTD
• Dow Jones Industrial Average: +8.4% YTD
• S&P Midcap 400: +6.4% YTD
• Russell 2000: +3.8% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 1.4%; Prior 1.6%
• August CPI 0.2% (Briefing.com consensus 0.2%); Prior 0.2%, August Core CPI 0.3% (Briefing.com consensus 0.2%); Prior 0.2%
  • The key takeaway from the report is the understanding that core inflation is sticking stubbornly above the Fed's inflation goal of 2.0% which, to be fair, is oriented around the PCE Price Index. Still, the elevated core reading on a monthly and annual basis will be a focal point for the Fed and a likely reason to keep a September rate cut capped at 25 basis points.

Looking ahead, Thursday's economic lineup features:

• 8:30 ET: August PPI (Briefing.com consensus 0.2%; prior 0.1%), Core PPI (Briefing.com consensus 0.2%; prior 0.1%), weekly Initial Claims (Briefing.com consensus 229,000; prior 227,000), and Continuing Claims (prior 1.838 mln)
• 10:30 ET: Weekly natural gas inventories (prior +13 bcf)
• 14:00 ET: August Treasury Budget (prior -$243.7 bln)

Overseas:

• Europe: DAX +0.3%, FTSE -0.2%, CAC -0.1%
• Asia: Nikkei -1.6%, Hang Seng -0.7%, Shanghai -0.8%

Commodities:

• Crude Oil +1.45 @ 67.30
• Nat Gas +0.04 @ 2.27
• Gold +0.70 @ 2542.90
• Silver +0.32 @ 28.92
• Copper +0.05 @ 4.15

After-Hours Spotlight:

• Build-A-Bear Workshop (BBW) authorizes new repurchase program of up to $100 mln... BBW up 2.0%
• Modine Manufacturing (MOD) provided FY27 financial targets during Investor Day earlier today, including three-year revenue CAGR of 10-13%... MOD up 1.9%
• NETGEAR (NTGR) enters into settlement agreement with TP-Link Systems; receives $135 mln payment; raises Q3 guidance... NTGR up 26.7%
• Oxford Industries (OXM) misses by $0.23, misses on revs; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus... OXM down 9.4%

Fair Value for Thursday, Sept. 12:

• S&P 500: 5,561
• Nasdaq 100: 19,262
• DJIA: 40,907

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

• Earnings/Guidance (Full Earnings Calendar):
  • AT&T (T) provides updates at Goldman Sachs Communacopia + Technology Conference; reaffirms guidance
  • Broadridge Financial (BR) in slide presentation sees long term recurring revenue of +7-9%; sees long term adjusted EPS of +8-12%
  • Canadian Nat'l Rail (CNI) restores operations; lowers outlook
  • Cantaloupe (CTLP) miss by $0.02, misses on revs; guides FY25 revs in-line
  • Dave & Buster's (PLAY) beats by $0.28, reports revs in-line, comparable store sales decreased 6.3%
  • Designer Brands (DBI) misses by $0.24, misses on revs; lowers FY25 EPS below consensus, revs in-line
  • Evolution Petroleum (EPM) misses two analyst estimate by $0.03, misses on revs
  • Fifth Third (FITB) raises its Q3 guidance in its slides; updates other financial targets
  • Frontier Group Holdings (ULCC) sees Q3 capacity growth of +4-5% versus +4-6% prior guidance; Adjusted (non-GAAP) total operating expenses (excluding fuel) to $690-705 mln versus $700-720 mln prior
  • GameStop (GME) beats by $0.13, misses on revs
  • Global Blue (GB) sees FY25 adjusted EBITDA of more than EUR 200 mln; sees long term revenue growth of 8-12%
  • InnovAge (INNV) beats by $0.01, beats on revs; guides FY25 revs in-line
  • Manchester United (MANU) reports Q4 results; provides FY25 outlook
  • Modine Manufacturing (MOD) provides investor updates in presentation; establishes new financial targets for FY25-FY27 with revs growth 10-13% (prior 8-10%)
  • Petco Health and Wellness (WOOF) reports EPS in-line, revs in-line; guides Q3 EPS in-line, revs in-line
  • Rentokil Initial plc (RTO) provides FY24 outlook
  • Talos Energy (TALO) in slide presentation sees FY24 average daily production of 89.0 – 95.0 MMBBL
  • The Children’s Place (PLCE) Reports Second Quarter 2024 Results (shares higher by 90% following earnings)
• General News
  • Former President Trump defended his plans to impose tariffs and tax cuts, while VP Kamala Harris said she will not ban fracking and promised to provide support for homebuyers, according to Bloomberg
  • Vice President Kamala Harris put former President Trump on the defensive during debate, according to the Wall Street Journal
  • 63% of people who watched debate said VP Kamala Harris had a better performance, according to CNN
  • House passes procedural vote on continuing resolution to fund government, but Senate Democrats and White House have already rejected this plan, according to the Washington Post
  • VP Kamala Harris wants second debate with former President Trump, according to the Washington Post
  • Hurricane Francine is expected to impact Louisiana later today
  • The Biden administration might soon fine airlines for delaying flights, according to Bloomberg
  • Tech company executives will testify to Senate next week on election, according to Reuters
  • USPS enters into new agreements with package consolidator companies consistent with its Delivering for America (DFA) strategy
  • Fed Inspector General report of investigation on the closing of 23-0020-I Federal Reserve Bank of Atlanta President's trading activity
  • 24% of crude production and 26% of natural gas output in Gulf of Mexico impacted by Hurricane Francine, according to Reuters
  • Accuray (ARAY) achieves milestone with treatment of the first cancer patients in Japan using the Accuray Radixact System and VitalHold Solution
  • Adicet Bio (ACET) discloses in SEC filing a strategic prioritization to focus ADI-001 development resources on autoimmune indications; due to this prioritization, patient enrollment in Phase 1 study of ADI-001 in mantle cell lymphoma has been closed
  • Advanced Micro (AMD) is gaining favor in AI chip market, according to The Information
  • Agios (AGIO) Announces FDA Orphan Drug Designation Granted to Tebapivat (AG-946) for Treatment of Myelodysplastic Syndromes
  • Albemarle (ALB): Lithium names lower pre-market following report that CATL wants to adjust its lithium production in Jiangxi, according to Reuters
  • Amazon's (AMZN) AWS plans to invest £8 billion in the UK, supporting 14,000 jobs annually in local businesses
  • AT&T (T) enters into strategic contract with Unsupervised after finding over $100 mln in insights using Unsupervised's AI Data Analysts
  • Bank of America (BAC) 10% owner Berkshire Hathaway's (BRK.A) Warren Buffett sold 5,797,093 shares worth approx. $228.7 mln
  • Bayer AG (BAYRY): Freight Technologies announces its selection by Bayer CropScience LP, a division of Bayer AG, as a key logistics provider for the 2025 season
  • Boeing (BA) workers in Pacific Northwest could strike Friday, according to Reuters
  • BridgeBio Pharma (BBIO) reports topline results from phase 1/2 trial of investigational gene therapy for Congenital Adrenal Hyperplasia
  • BridgeBio (BBIO) receives FDA’s Regenerative Medicine Advanced Therapy (RMAT) designation for BBP-812 canavan disease gene therapy program
  • Bumble (BMBL) aiming to leverage AI, according to Tech Crunch
  • Cameco (CCJ), Uranium Energy (UEC), and Energy Fuels (UUUU) trading higher following report that Russian President Putin is considering export restrictions on uranium
  • Centrus Energy (LEU) and Korea Hydro & Nuclear Power entered into a contingent supply commitment; Centrus has now secured a total of $1.8 billion in contingent sales commitments to date
  • Citigroup (C) discloses that Robert Walsh agreed to become interim Chief Accounting Officer of Citi, effective immediately, while a search for a permanent replacement is conducted
  • Cipher Mining (CIFR): Bitfury Group announces completion of distribution of Cipher Mining Inc. Shares
  • CleanSpark (CLSK) enters agreements to acquire seven bitcoin mining facilities and certain associated land in the Knoxville, Tennessee, area for total cash payments of $27.5 million, or ~ $324,000 per megawatt
  • Cohen & Steers (CNS) reports preliminary assets under management of $88.1 billion as of August 31, 2024, an increase of $3.5 billion from assets under management of $84.6 billion at July 31, 2024
  • Deere (DE): SEC Charges John Deere With FCPA violations for subsidiary’s role in Thai bribery scheme
  • Dell (DELL) in 10-Q filing: notes that throughout FY25 (Jan) it will remain committed to cost management, including a continued reduction in its overall headcount
  • Diamondrock Hospitality (DRH) provided investor updates in presentation
  • Electromed (ELMD) announces share repurchase authorization
  • Enlight Renewable Energy Ltd. (ENLT) announces the initial start of commercial operations at its Atrisco Solar & Energy Storage project outside Albuquerque, New Mexico
  • Ford (F) in discussions to make cars in India, according to Reuters
  • FVCBankcorp (FVCB) COO Todd Dempsey to retire, effective November 1
  • GameStop (GME) discloses it initiated a comprehensive store portfolio optimization review
  • GlaxoSmithKline (GSK) reports update on phase I/II therapeutic herpes simplex virus vaccine trial; did not meet the study's primary efficacy objective
  • GlaxoSmithKline (GSK) provides Zantac (ranitidine) litigation update in Dixon case; confirms reached a confidential settlement
  • Goldman Sachs (GS) coming close to a deal to transfer General Motors (GM) credit card business to Barclays, according to Reuters
  • HIVE Digital Technologies (HIVE) reports updated August 2024 Bitcoin HODL Value and ATM Equity Program Details
  • iLearningEngines (AILE) announced a strategic partnership with Exult Global to implement its innovative AI platform on Microsoft (MSFT) Fabric and Azure
  • Int'l Paper (IP) elects Andy Silvernail as Chairman of the Board in addition to his role as CEO, effective October 1
  • IonQ (IONQ) and The University of Maryland sign a $9 million agreement to expand their partnership to provide state-of-the-art quantum computing access at the National Quantum Lab at Maryland
  • Johnson & Johnson (JNJ): Dexamethasone reduces infusion-related reactions in patients with EGFR-mutated non-small cell lung cancer treated with intravenous RYBREVANT
  • Leonardo DRS (DRS) delivers ahead of schedule critical C5I capabilities for the Australian Army’s Heavy Armoured Capability Systems
  • Lifeway Foods (LWAY) announces the brand's first expansion of kefir distribution in the South African market
  • Marathon Digital Holdings (MARA) provided investor updates in presentation
  • McEwen Mining (MUX) provides new assay results from Grey Fox deposit
  • Merck (MRK) reports Top-line Results from Phase 3 Trial Evaluating Efficacy and Safety of GARDASIL 9 in Japanese Males
  • Methanex (MEOH) will idle of one plant, according to New Zealand Herald
  • Microsoft (MSFT) launches new plan for Xbox Game Pass – Game Pass Standard
  • National Bank (NBHC) promotes CFO Aldis Birkans to President, Tim Laney continuing to serve as the Company’s Chairman and CEO; effective September 10
  • News Corp. (NWSA): Board of Rightmove (RTMVY) confirmed News Corp.'s REA Group offer and unanimously rejected the proposal
  • Nikola (NKLA): Trevor Milton will be required to pay Nikola $167.7 million for making false and misleading statements, according to Reuters
  • NJ Resources (NJR) increases quarterly cash dividend 7.1% to $0.45/share from $0.42/share
  • Norfolk Southern (NSC) investigating if CEO Alan Shaw had an inappropriate relationship with the Chief Legal Officer of the company, according to CNBC
  • Northern Trust (NTRS) announces several leadership changes, including Peter Cherecwich, President of Asset Servicing, becoming Chief Operating Officer
  • NVIDIA (NVDA) chip sales to Saudi Arabia might soon get approved, according to Semafor
  • OpenText (OTEX) IT Management Platform achieves FedRAMP Authorization
  • Papa John's (PZZA) promoted Ravi Thanawala to CFO role, effective September 9
  • Pegasystems (PEGA) discloses that Staff of the Division of Enforcement of the SEC notified the company that the Staff had concluded its investigation
  • Pfizer (PFE) and Astellas (ALPMY) Present Scientific Progress in Advanced and Hard-to-Treat Cancers at ESMO 2024
  • PureCycle Technologies (PCT) announces financing transaction and ironton production update
  • Regeneron Pharmaceuticals (REGN): EYLEA HD® (aflibercept) Injection 8 mg Data at EURETINA Reinforce Long-term Durability, Sustained Fluid Control and Safety Profile
  • Regeneron Pharma (REGN) and Sanofi (SNY) report Dupixent (dupilumab) Is the First and Only Biologic to Achieve Significant Improvements in Disease Remission and Symptoms in Bullous Pemphigoid (BP) Positive Pivotal Trial
  • Roche Hldg (RHHBY) pulling back on most recent obesity pill update
  • RTX (RTX) executives say supply chains have not recovered, according to Reuters
  • Samsung (SSNLF) plans job cuts of up to 30% in certain divisions, according to Reuters
  • Smtek (SMTI) and InfuSystem Holdings (INFU) announce exclusive United States distribution agreement with, and minority investment in, ChemoMouthpiece, LLC
  • Southport Acquisition Corporation (PORT): Angel Studios to become a publicly traded company via business combination with Southport Acquisition Corporation
  • Southwest Air (LUV) mandating additional pilot training following safety lapses, according to Bloomberg
  • Spirit Airlines (SAVE) modified card processing agreement
  • Telus (TU) announces strategic partnership with Mila to drive AI advancements and capabilities
  • TEN, Ltd. (TEN) increases semi-annual dividend 50% to $0.90/share from $0.60/share
  • Tesla (TSLA): Worksport (WKSP) announces successful level 1 Tesla (TSLA) charging with COR battery generator
  • Toronto-Dominion Bank (TD): CFPB orders TD Bank to pay $28 million for illegal breakdowns that potentially tarnished consumer reports
  • Transocean (RIG) announces $232 mln ultra-deepwater drillship contract
  • Universal Technical Institute (UTI) announces resignation of CFO Troy Anderson to accept a position at another public company; effective October 11
  • Vale S.A. (VALE) starts Vargem Grande 1 Project’s wet processing operations
  • Vistra Corp. (VST) announces a new program for homeowners in partnership with Sunrun (RUN) to support grid reliability for Texans; program will utilize the collective power of solar-plus-battery storage systems during times of peak demand
  • Walgreens (WBA): Baltimore settled claims with Walgreens over opioid crisis, according to Reuters
  • Yext (YEXT) launches Yext Social, an AI-powered social media management platform

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

• Upgrades:
  • Antero Resources (AR) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $37
  • AstraZeneca (AZN) upgraded to Buy from Hold at Erste Group
  • Charter Comm (CHTR) upgraded to Neutral from Sell at Citigroup; tgt $350
  • Evercore (EVR) upgraded to Buy from Neutral at Goldman; tgt raised to $276
  • Infosys (INFY) upgraded to Buy from Hold at Erste Group
  • ONE Gas (OGS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $80
  • Williams-Sonoma (WSM) upgraded to Buy from Hold at Jefferies; tgt raised to $156
• Downgrades:
  • Adicet Bio (ACET) downgraded to Neutral from Buy at H.C. Wainwright
  • Morgan Stanley (MS) downgraded to Neutral from Buy at Goldman
  • Novartis AG (NVS) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $130
  • Salesforce (CRM) downgraded to Hold from Buy at Erste Group
  • Supernus Pharma (SUPN) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $36
• Others:
  • AES (AES) initiated with a Buy at Jefferies; tgt $20
  • Apollo Global Management (APO) added to 30-day positive catalyst watch at Citigroup
  • AvalonBay (AVB) initiated with an Outperform at Exane BNP Paribas; tgt $250
  • Badger Meter (BMI) initiated with a Buy at Seaport Research Partners; tgt $235
  • Camden Property (CPT) initiated with a Neutral at Exane BNP Paribas; tgt $129
  • Canaan (CAN) initiated with a Buy at Rosenblatt; tgt $3
  • Elastic (ESTC) initiated with a Buy at Guggenheim; tgt $100
  • Equity Residential (EQR) initiated with an Outperform at Exane BNP Paribas; tgt $83
  • Essex Property (ESS) initiated with an Outperform at Exane BNP Paribas; tgt $333
  • Haemonetics (HAE) initiated with a Neutral at BofA Securities; tgt $85
  • Lantronix (LTRX) resumed with a Buy at Canaccord Genuity; tgt $7.50
  • Mid-America Aptmt (MAA) initiated with a Neutral at Exane BNP Paribas; tgt $169
  • Northeast Bancorp (NBN) resumed with an Overweight at Piper Sandler; tgt $80
  • PACS Group (PACS) resumed with a Buy at Citigroup; tgt $45
  • Pembina Pipeline (PBA) initiated with a Neutral at UBS
  • Q32 Bio (QTTB) initiated with an Overweight at Wells Fargo; tgt $95
  • Shopify (SHOP) added to Wells Fargo's Signature Picks List
  • Spotify (SPOT) added to Wells Fargo's Signature Picks List
  • UDR (UDR) initiated with an Outperform at Exane BNP Paribas; tgt $49
  • Viking Therapeutics (VKTX) initiated with an Overweight at JP Morgan; tgt $80

• Econ Data (Thursday):
  • 8:30 ET: August PPI (Briefing.com consensus 0.2%; prior 0.1%), Core PPI (Briefing.com consensus 0.2%; prior 0.1%), weekly Initial Claims (Briefing.com consensus 229,000; prior 227,000), and Continuing Claims (prior 1.838 mln)
  • 10:30 ET: Weekly natural gas inventories (prior +13 bcf)
  • 14:00 ET: August Treasury Budget (prior -$243.7 bln)
• Treasury Auctions:
  • 13:00 ET: $22 bln 30-yr Treasury bond auction results
• Earnings:
  • Monday (Sept 9)
    • Pre-Market: None
    • After-Hours: CVGW AVO ORCL RBRK
  • Tuesday (Sept 10)
    • Pre-Market: ASO CGNT
    • After-Hours: PLAY GME WOOF
  • Wednesday (Sept 11)
    • Pre-Market: DBI
    • After-Hours: OXM
  • Thursday (Sept 12)
    • Pre-Market: CAL KR LOVE SIG
    • After-Hours: ADBE RH
  • Friday (Sept 13)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike