After Hours Report

Today's session started on an upbeat note, leading the S&P 500 and Dow Jones Industrial Average to new all-time intraday highs. Stocks faded from session highs, though, leaving the S&P 500 and DJIA near their flat lines at the close.

Market participants were digesting some relatively pleasing economic data, which supported the soft landing narrative and didn't change the market's rate cut expectations that much. Retail sales and industrial production were both stronger than expected in August, and the likelihood of a 50 basis points rate cut tomorrow sits at 63.0% from 34.0% one week ago, according to the CME FedWatch Tool.

The market's optimistic view on the economy and rate cuts contributed to an overall positive bias, and to the outperformance of small cap stocks and cyclical sectors. The Russell 2000 climbed 0.7% and the S&P 500 energy (+1.4%), industrials (+0.5%), financial (+0.5%), and consumer discretionary (+0.6%) sectors showed relative strength. 

Countercyclical sectors underperformed the index. The health care (-1.0%) and consumer staples (-0.9%) sectors were the worst performers today.

Positive price action in Microsoft (MSFT 435.15, +3.81, +0.9%) also provided some support to the broader market after news of a 10% increase to its quarterly dividend and a share buyback authorization up to $60 billion.

The 10-yr yield settled two basis points higher at 3.64% and the 2-yr yield settled three basis points higher at 3.59%. 

• S&P 500: +18.1% YTD
• Nasdaq Composite: +17.4% YTD
• Dow Jones Industrial Average: +10.4% YTD
• S&P Midcap 400: +10.4% YTD
• Russell 2000: +8.8% YTD

Reviewing today's economic data:

• August Retail Sales 0.1% (Briefing.com consensus -0.2%); Prior was revised to 1.1% from 1.0%, August Retail Sales ex-auto 0.1% (Briefing.com consensus 0.2%); Prior 0.4%
  • The key takeaway from the report is that control group sales -- the component that factors into GDP -- were up a sturdy 0.3% following an upwardly revised 0.4% increase (from 0.3%) in July and 0.9% increase in June. There is no hard landing in those numbers.
• August Industrial Production 0.8% (Briefing.com consensus 0.1%); Prior was revised to -0.9% from -0.6%, August Capacity Utilization 78.0% (Briefing.com consensus 77.9%); Prior was revised to 77.4% from 77.8%
  • The key takeaway from the report is that industrial production snapped back in August, led by manufacturing output and a near 10% increase in the index of motor vehicles and parts, after being depressed by Hurricane Beryl in July.
• July Business Inventories 0.4% (Briefing.com consensus 0.4%); Prior 0.3%
• September NAHB Housing Market Index 41 (Briefing.com consensus 41); Prior 39

Wednesday's economic lineup features:

• 7:00 ET: Weekly MBA Mortgage Applications Index
• 8:30 ET: August Housing Starts and Building Permits
• 10:30 ET: Weekly EIA Crude Oil Inventories 

The headline event tomorrow is the Fed policy decision at 2:00 ET. 

Overseas:

• Europe: DAX +0.5%, FTSE +0.4%, CAC +0.5%
• Asia: Nikkei -1.0%, Hang Seng +1.4%, Shanghai -0.5%

Commodities:

• Crude Oil +1.05 @ 71.27
• Nat Gas -0.06 @ 2.32
• Gold -16.10 @ 2592.10
• Silver -0.13 @ 30.99
• Copper unchanged @ 4.27

After-Hours Spotlight:

• BlackRock (BLK) confirms it is launching new AI partnership with Microsoft (MSFT), Global Infrastructure Partners, and MGX... BLK up 1.4%
• Intuitive Machines (LUNR) awarded a Near Space Network contract for communication and navigation services from NASA with maximum potential value of $4.82 billion... LUNR up 34.8%
• JPMorgan Chase (JPM) increases its quarterly dividend by 8.7% to $1.25/share; annual yield of 2.4%... JPM down 0.1%
• Salesforce (CRM) and NVIDIA (NVDA) announce a strategic collaboration to develop advanced AI capabilities for the enterprise with autonomous agent and interactive avatar experiences... CRM up 0.3%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Centene (CNC) to host investor meeting September 17; expects to reaffirm FY24 adjusted EPS of over $6.80
  • Compass Minerals (CMP) reports Q3 results
  • Hanmi Financial (HAFC) provides investor updates in presentation
  • High Tide (HITI) reports Q3 results
  • MRC Global (MRC) provides investor updates in presentation
  • Nucor (NUE) guides Q3 EPS below consensus
  • Regal Rexnord (RRX) provides outlook at Investor Conference
  • Sigma Lithium (SGML) remains on track to deliver its Q3 production target of 60,000 tonnes of Quintuple Zero Green Lithium
  • Steel Dynamics (STLD) guides Q3 EPS below consensus
• General News
  • White House releases readout of convening on Mpox
  • OCC approved final rule and policy statement on bank mergers, awaiting FDIC
  • FDIC Board of Directors approves final statement of policy on bank merger transactions
  • FDIC proposes deposit insurance recordkeeping rule for banks’ third-party accounts
  • AAR Corp (AIR) and the U.S. Defense Logistics Agency Land and Maritime signed a Supply Chain Alliance charter, formalizing a commitment to strengthening joint support of the nation's warfighter
  • AC Immune (ACIU) Receives Second Milestone Payment Following Progress in Phase 2b ReTain Trial of ACI-35.030 in Preclinical Alzheimer’s Disease
  • Accenture (ACN) delays staff promotions by six months amid prolonged slump in consultancy industry, according to Bloomberg
  • Accuray (ARAY) disclosed amended credit agreement - reducing the available revolving commitments
  • Amazon (AMZN): Prime Big Deal Days is Back October 8-9—Offering Prime Members Exclusive Access to Millions of Early Holiday Deals
  • Barrick (GOLD) is projecting a 30% growth in the production of gold-equivalent ounces from its existing assets by the end of this decade (CEO speaking at Gold Forum Americas)
  • BeiGene (BGNE) announces that the Israeli Ministry of Health has approved TEVIMBRA as monotherapy for the treatment of adult patients with unresectable or metastatic oesophageal squamous cell carcinoma after prior systemic chemotherapy
  • BioCryst (BCRX) and the pan-Canadian Pharmaceutical Alliance (pCPA) Successfully Complete Negotiations for ORLADEYO® (berotralstat), an Oral, Once-daily Therapy for the Prevention of Hereditary Angioedema Attacks
  • Biogen's (BIIB) new drug submission for omaveloxolone accepted for priority review by Health Canada for the treatment of Friedreich's ataxia
  • BlackRock TCP Capital (TCPC) Chairman and CEO Rajneesh Vig to resign as Chairman and CEO and continue serving on Board until January 31, 2025; appoints new Chairman and CEO
  • Boeing (BA) reducing perks to executives as part of cost cutting, according to Business Insider
  • Boston Scientific (BSX) Receives FDA Approval for Expanded Indication of INGEVITY+ Pacing Leads to Include Conduction System Pacing of the Left Bundle Branch Area
  • BridgeBio Pharma (BBIO) announces that the FDA has granted Breakthrough Therapy Designation to oral infigratinib under development for children with achondroplasia
  • Cardinal Health (CAH) has been selected by Telix Pharmaceuticals Limited as a commercial radiopharmaceutical distributor to supply finished unit doses of its PET1 agent, Zircaix2 for the imaging of kidney cancer in the United States, subject to regulatory approval
  • Church & Dwight (CHD) promotes Richard Dierker to President and CEO, effective March 31; Matt Farrell to continue as Chairman through transition period
  • Coca-Cola (KO) and Bacardi limited announce an agreement to debut BACARDÍ rum and Coca-Cola as a ready-to-drink pre-mixed cocktail
  • Comcast's (CMCSA) Universal Pictures and Pixelworks (PXLW) enter into multi-year, multi-title agreement for TrueCut Motion Technology
  • CrowdStrike (CWRD) and Dazz announce partnership to enhance unified visibility and protection through CrowdStrike Falcon Cloud Security
  • Cullinan Therapeutics (CGEM) receives approval to initiate its global Phase 1 clinical trial of CLN-978
  • Dada (DADA) confirmed it is aware that JD.com (JD) purchased a total of 87,481,280 ordinary shares and 1,875,000 ADSs of the Company from Global Pinnacle, a company owned by Walmart (WMT)
  • Danone (DANOY) set to double global partnerships to drive co-innovation throughout value chain
  • Dell (DELL): Newegg Commerce (NEGG) posts on X that they're an Authorized Partner with Dell
  • Easterly Government Properties (DEA) CEO Darrell W. Crate was appointed to also serve as the Company’s President, effective September 13, 2024
  • Eaton (ETN): UAW confirmed yesterday that approximately 525 UAW members have walked out on strike at Eaton Aerospace, an aerospace factory in Jackson, Michigan that produces hydraulics equipment for civil, commercial, and military aircraft
  • Electronic Arts (EA) confirms ‘The Sims’ movie adaptation with Margot Robbie’s production company and ‘Loki’ Director, according to Variety
  • EssilorLuxottica (ESLOY) has extended its partnership with Meta Platforms (META) by entering into a new long term agreement, under which the parties will collaborate into the next decade to develop multi-generational smart eyewear products
  • Financial Inst. (FISI) to begin winding down its Banking-as-a-Service offerings following review
  • Fox Weather (FOX), FOX News Media’s free ad-supported streaming television service, will now be available to DIRECTV customers effective today
  • GlaxoSmithKline (GSK) reports Blenrep combinations in relapsed/refractory multiple myeloma accepted for regulatory review in Japan
  • Google (GOOG): Google antitrust trial focusing on high ad commissions, according to The Verge
  • Healthcare Realty (HR) CFO Kris Douglas to step down; names Rob Hull as COO; reaffirms Q3 and FY24 guidance
  • IBM (IBM) acquires Kubecost to broaden hybrid cloud cost management capabilities; financial terms were not disclosed
  • Intel (INTC) and Amazon Web Services (AMZN) announce co-investment in custom chip designs under a multi-year, multi-billion-dollar framework involving product and wafers from Intel
  • Intel (INTC) to turn foundry business into subsidiary that could allow it to raise outside funding, according to CNBC
  • Intel (INTC) to postpone new factories in Germany and Poland, according to Bloomberg
  • Intel (INTC) CEO Pat Gelsinger sends message to employees; outlines future plans; notes halfway to workforce reduction target; streamlining Intel Products portfolio
  • JPMorgan Chase (JPM) in talks to take over Apple’s credit card program as partnership with Goldman Sachs ends, according to WSJ
  • Keysight (KEYS) introduces Quantum Circuit Simulation the first circuit environment with frequency-domain flux quantization
  • L3Harris (LHX) has met a key spectrum dominance milestone by initiating production of its Viper Shield all-digital electronic warfare suite for F-16 fighter jets
  • Logitech G & Streamlabs unveil AI game highlighter - elevating live streamer content
  • MacroGenics (MGNX) released Post-ESMO Conference Call Presentation - presented a review of the TAMARACK Phase 2 data and also provided a general corporate update
  • Masimo (MASI): Politan Highlights Need for Further Change in Masimo’s Boardroom Ahead of Thursday’s Annual Meeting
  • Merck (MRK) and Daiichi Sankyo (DSNKY) report patritumab deruxtecan demonstrated statistically significant improvement in progression-free survival versus doublet chemotherapy in patients with locally advanced or metastatic EGFR-mutated non-small cell lung cancer
  • Meta Platforms (META): Russian media outlets to be banned from Meta, according to the New York Times
  • Microsoft (MSFT) raises dividend and apporves new share repurchase program
  • Minerals Tech (MTX) introduces SIVO as the brand name for its global pet care business
  • Moderna (MRNA) receives Health Canada approval for updated COVID-19 vaccine targeting KP.2 variant Of SARS-COV-2 for ages six months and older
  • Navitas Semiconductor (NVTS) announced the appointment of Todd Glickman, Senior Vice President, Finance, as Interim Chief Financial Officer and Treasurer, effective October 4, 2024
  • nCino (NCNO) disclosed that the dismissal of certain previously disclosed litigation has now been affirmed on appeal
  • Novartis AG (NVS) confirms the FDA approved Novartis Kisqali to reduce risk of recurrence in people with HR+/HER2- early breast cancer
  • NVIDIA (NVDA) considered buying startup OctoAI, according to The Information
  • Omega Therapeutics (OMGA) Announces Publication of Epigenomic Controller OTX-2002 Preclinical Data in Nature Communications
  • Oracle (ORCL) releases Java 23
  • ORIC Pharmaceuticals (ORIC) and OpenBench announce the launch of a collaboration; OpenBench will receive payment upon the identification of novel small molecule chemotypes and the experimental confirmation that they meet certain activity and developability criteria defined by ORIC
  • Palantir Technologies (PLTR) announced a new multi-year, multi-million-dollar contract for Palantir’s Artificial Intelligence Platform (AIP) to help improve healthcare through transformational technologies
  • Polestar Automotive Holding UK PLC (PSNY) reports it is fully compliant with Nasdaq Listing Rules
  • Portland Gen Elec (POR) is proceeding to commercial negotiations with projects on the final shortlist and looks to execute final contracts by the end of the first quarter 2025
  • Rackspace Technology (RXT) launches Rackspace Rapid Migration Offer designed to expedite data center migrations to Amazon Web Services (AMZN)
  • REGENXBIO (RGNX) appointed as Executive Vice President and Chief Financial Officer, effective today
  • ReposiTrak (TRAK) welcomes 25 new beverage and candy companies to the ReposiTrak Traceability Network
  • Roku (ROKU): AMC+ (AMCX) with ads launches as a premium subscription on The Roku Channel
  • Saga Comms (SGA) promotes Wayne Leland to COO
  • Seadrill Ltd (SDRL) and Oil States International (OIS) announce a non-exclusive collaborative relationship aimed at increasing the safety and efficiency of offshore MPD operations
  • Sigma Lithium (SGML) appoints Rogerio Marchini as CFO
  • Silvercorp Metals (SVM) renews share repurchase program of up to 4% of shares outstanding
  • SITE Centers (SITC) appoints CFO for spin-off
  • SMART Global (SGH): SMART Modular Technologies announces a proprietary technology to mitigate the adverse impact of single event upsets in high-reliability flash-memory based systems
  • Snap (SNAP) releases details of several additional updates at SPS 2024
  • Snap (SNAP) confirms new AI and chat features
  • Starbucks (SBUX) North America CEO Michael Conway to retire, effective November 30
  • Taiwan Semiconductor Manufacturing (TSM): ByteDance looking to manufacture own chips at Taiwan Semiconductor Manufacturing, according to The Information
  • The Cigna Group's (CI) Express Scripts sues FTC, demands withdrawal of PBM report
  • Toronto-Dominion Bank's (TD) TD Asset Management Inc. expands its lineup with the introduction of new mutual funds and US$ purchase options
  • Trump Media & Technology Group Corp. (DJT): Judge rules in favor of ARC Global in breach of contract case against Digital World Acquisition Corp over Trump Media stake, according to Reuters
  • Uber (UBER) unveils new features aimed at enhancing safety, fairness, and ease for drivers and couriers
  • Udemy (UDMY) to eliminate approximately 280 of its employees; expects to rehire around half of the impacted roles, primarily in lower cost geographies
  • Vigil Neuroscience (VIGL) announces that the U.S. FDA has removed the partial clinical hold on its ongoing Phase 1 clinical trial of VG-3927
  • Zimmer Biomet (ZBH): FDA issues alert over increased risk of thigh bone fracture with Zimmer Biomet CPT Hip System; Manufacturer plans recall and phase-out
  • Zscaler (ZS) announces a new set of AI and Zero Trust integrations with the CrowdStrike (CRWD) Falcon cybersecurity platform to advance security operations

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

• Upgrades:
  • Alerus Financial (ALRS) upgraded to Outperform from Mkt Perform at Raymond James; tgt $24
  • AppLovin (APP) upgraded to Buy from Neutral at UBS; tgt raised to $145
  • Aramark (ARMK) upgraded/resumed to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $42.50
  • Banc of California (BANC) upgraded to Outperform from Mkt Perform at Raymond James; tgt $16
  • BioNTech (BNTX) upgraded to Buy from Hold at Jefferies; tgt raised to $150
  • Dime Community (DCOM) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $35
  • Entergy (ETR) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $138
  • Gannett (GCI) upgraded to Neutral from Sell at Citigroup, added to 90-day positive catalyst watch; tgt $5.10
  • GE Vernova (GEV) upgraded to Buy from Neutral at BofA Securities; tgt raised to $300
  • Hewlett Packard Enterprise (HPE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $24
  • Lattice Semi (LSCC) upgraded to Buy from Hold at Stifel; tgt $55
  • LivaNova (LIVN) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $66
  • Relmada Therapeutics (RLMD) upgraded to Buy from Hold at Jefferies; tgt raised to $13
  • Shopify (SHOP) upgraded to Buy from Neutral at Redburn Atlantic; tgt $99
  • Synovus (SNV) upgraded to Outperform from Mkt Perform at Raymond James; tgt $49
  • Texas Capital (TCBI) upgraded to Outperform from Mkt Perform at Raymond James; tgt $78
  • Torrid (CURV) upgraded to Outperform from Mkt Perform at William Blair
  • Veritex Holdings (VBTX) upgraded to Strong Buy from Mkt Perform at Raymond James; tgt $30
• Downgrades:
  • Acushnet (GOLF) downgraded to Hold from Buy at Jefferies; tgt lowered to $75
  • Adecoagro S.A. (AGRO) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $12.50
  • Bank OZK (OZK) downgraded to Mkt Perform from Outperform at Raymond James
  • Old Second Bancorp Inc. (OSBC) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $18
  • Prosperity Bancshares (PB) downgraded to Outperform from Strong Buy at Raymond James; tgt $80
  • SolarEdge Technologies (SEDG) downgraded to Underperform from Hold at Jefferies; tgt lowered to $17
  • Viasat (VSAT) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $15
• Others:
  • Antero Resources (AR) initiated with a Neutral at Citigroup; tgt $29
  • Carvana (CVNA) resumed with a Buy at BofA Securities; tgt $185
  • Definitive Healthcare (DH) initiated with a Buy at BTIG Research; tgt $7
  • Dell (DELL) initiated with an Outperform at Mizuho; tgt $135
  • Fidelis Insurance Holdings Limited (FIHL) initiated with a Neutral at Goldman; tgt $18.50
  • JAKKS Pacific (JAKK) initiated with a Buy at B. Riley Securities; tgt $37
  • Jefferies (JEF) initiated with a Buy at UBS; tgt $67
  • Lightspeed (LSPD) initiated with a Buy at The Benchmark Company; tgt $20
  • Oruka Therapeutics (ORKA) initiated with an Outperform at Leerink Partners; tgt $44
  • Palantir Technologies (PLTR) added to BofA Securities' US 1 List
  • Rhythm Pharmaceuticals (RYTM) initiated with a Mkt Outperform at JMP Securities; tgt $64
  • S&P Global (SPGI) removed from BofA Securities' US 1 List
  • Sempra Energy (SRE) added to BofA Securities' US 1 List
  • Super Micro Computer (SMCI) initiated with a Neutral at Mizuho; tgt $450

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior 1.4%)
  • 8:30 ET: August Housing Starts (Briefing.com consensus 1.320 mln; prior 1.238 mln) and Building Permits (Briefing.com consensus 1.415 mln; prior 1.396 mln)
  • 10:30 ET: Weekly crude oil inventories (prior 0.883 mln)
  • 14:00 ET: September FOMC Rate Decision (Briefing.com consensus 5.00-5.25%; prior 5.25-5.50%)
  • 16:00 ET: July Net Long-Term TIC Flows (prior $96.1 bln)
• Earnings:
  • Monday (Sept 16)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Sept 17)
    • Pre-Market: FERG
    • After-Hours: None
  • Wednesday (Sept 18)
    • Pre-Market: GIS
    • After-Hours: SCS
  • Thursday (Sept 19)
    • Pre-Market: CBRL DRI DAVA FDS
    • After-Hours: FDX LEN MLKN
  • Friday (Sept 20)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike