After Hours Report

The Dow Jones Industrial Average (+0.2%) and S&P 500 (+0.3%) extended further into record territory and the Nasdaq Composite settled 0.1% higher. The Russell 2000 underperformed, dropping 0.3% after outperforming its peers of late. 

Market breadth was mixed through the entire session, reflecting a lack of conviction from either buyers or sellers after the big run of late. Advancers led decliners by a 3-to-2 margin at the NYSE and decliners led advancers by a 4-to-3 margin at the Nasdaq.

Market participants remain optimistic about a soft landing scenario for the economy, but there's also a growing sense that stocks are due for some consolidation. 

Many semiconductor stocks settled higher, leading the PHLX Semiconductor Index (SOX) to close 0.5% above Friday's settlement. TSMC (TSM 174.76, +0.68, +0.4%) was a story stock in the space after a Wall Street Journal report that TSMC and Samsung are considering new chip-making facilities in the United Arab Emirates.

Boeing (BA 156.30, +3.01, +2.0%) also made headlines today, turning sharply higher after confirming that it substantially increased the machinist contract offer, attempting to end the strike.

This price action helped boost the S&P 500 industrial sector (+0.7%). Other sectors that outperformed the index included the energy (+1.3%), consumer discretionary (+1.3%), real estate (+1.1%), and utilities (+1.0%) sectors. 

The 10-yr yield settled one basis point higher at 3.74% and the 2-yr yield settled one basis point higher at 3.58%.

• Nasdaq Composite: +19.9% YTD
• S&P 500: +19.7% YTD
• S&P Midcap 400: +12.2% YTD
• Dow Jones Industrial Average: +11.8% YTD
• Russell 2000: +9.5% YTD

Reviewing today's economic data:

• September S&P Global US Manufacturing PMI - Prelim 47.0; Prior 47.9
• September S&P Global US Services PMI - Prelim 55.4; Prior 55.7

Looking ahead, Tuesday's calendar features:

• 9:00 ET: July FHFA Housing Price Index (prior -0.1%) and July S&P Case-Shiller Home Price Index (Briefing.com consensus 6.0%; prior 6.5%)
• 10:00 ET: September Consumer Confidence (Briefing.com consensus 102.9; prior 103.5)
• 13:00 ET: $69 bln 2-yr Treasury note auction results

Overseas:

• Europe: DAX +0.6%, FTSE +0.4%, CAC +0.1%
• Asia: Nikkei market closed, Hang Seng -0.1%, Shanghai +0.4%

Commodities:

• Crude Oil -0.64 @ 70.37
• Nat Gas +0.42 @ 2.85
• Gold +7.00 @ 2652.90
• Silver +0.40 @ 31.09
• Copper +0.03 @ 4.36

After-Hours Spotlight:

• AAR Corp (AIR) beats by $0.03, beats on revs... AIR up 3.7%
• Deere (DE) heads -1% lower after Trump threatens 200% tariff if jobs move to Mexico, according to Bloomberg... DE down 1.4%
• GameStop (GME) completes previously disclosed at-the-market equity offering program... GME up 1.7%
• Liberty Broadband (LBRDA) issues a counterproposal to Charter Communications (CHTR) in response to an initial merger proposal; Under counterproposal, holders of each series of Liberty Broadband common stock would receive 0.2900 shares of Charter Class A common stock in exchange for each share of Liberty Broadband common stock... LBRDA up 20.7%
• Snowflake (SNOW) announces proposed private placement of $2 billion of convertible senior notes... SNOW down 2.7%

Fair Value for Tuesday, Sept. 24:

• S&P 500: 5,778
• Nasdaq 100: 20,084
• DJIA: 42,509

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

• Earnings/Guidance (Full Earnings Calendar):
  • Ennis, Inc. (EBF) reports results for the quarter ended August 31, 2024; approved a one-time special dividend of $2.50 per share
• General News
  • People's Bank of China lowers reverse repurchase rate, according to Bloomberg
  • Major chipmakers may expand into Middle East, according to the Wall Street Journal
  • U.S. looking to ban Chinese software in vehicles, according to Reuters
  • White House releases fact sheet on taking action to support auto workers and manufacturers, including in Michigan
  • U.S. to increase troop presence in Middle East amid rising violence between Israel and Hezbollah, according to AP
  • White House releases fact sheet on protecting America from connected vehicle technology from countries of concern
  • AeroVironment (AVAV) discloses U.S. Army has lifted the stop work order
  • Agilent: H.I.G. Capital (A) announces the sale of its portfolio company, BIOVECTRA Inc., to Agilent Technologies for a purchase price of $925 mln
  • Aileron Therapeutics (ALRN) Completes Enrollment in Cohort 2 of the Ongoing Phase 1b Clinical Trial Evaluating LTI-03 in Idiopathic Pulmonary Fibrosis
  • Alaska Air (ALK) launches a proposed senior secured term loan facility and intends to issue additional pari passu senior secured debt
  • Allete (ALE) division, Minnesota Power, plans to build two large solar projects in northern Minnesota as part of its continued transition toward a cleaner energy future while prioritizing regional renewable energy investments
  • Alphabet's (GOOG) Google confirms several TV upodates; TV is also expanding to more countries including Thailand, Indonesia, Vietnam and the Philippines
  • Amazon (AMZN) Web Services announces an extended partnership with SLB to expand access to applications from the Delfi digital platform and explore the deployment of low carbon technologies for the energy industry
  • Amazon (AMZN) trying to catch up in AI race, according to the Wall Street Journal
  • American Water Works (AWK) files a stipulation of settlement in Virginia
  • Arrowhead (ARWR) has filed for regulatory clearance to initiate a Phase 1/2a clinical trial of ARO-INHBE, the company’s investigational RNA interference therapeutic being developed as a potential treatment for obesity
  • AstsraZeneca (AZN): FLUMIST approved for self-administration in the US
  • AstraZeneca (AZN) reports Fasenra recommended for approval in the EU by CHMP
  • AstraZeneca (AZN): Datopotamab deruxtecan final overall survival results reported in patients with metastatic HR-positive, HER2-low or negative breast cancer in TROPION-Breast01 Phase III trial
  • BAE Systems (BAESY): BAE Systems Land and Armaments LP, York, Pennsylvania, was awarded a $184,351,382 modification (P00015) to contract W56HZV-23-C-0024 for Armored Multi-Purpose Vehicles
  • Bank of America (BAC) to open more than 165 financial centers by end of 2026
  • Bitfarms (BITF) and Riot Platforms (RIOT) announce that the companies have entered into settlement agreement in advance of the Special Meeting of Bitfarms Shareholders
  • Black Diamond (BDTX) Therapeutics Announces Initial Phase 2 Data Demonstrating Robust Anti-tumor Activity of BDTX-1535 in Patients with Recurrent EGFRm NSCLC who Present with a Broad Spectrum of Classical, Non-classical, and C797S Resistance Mutations
  • Biohaven (BHVN) Achieves Positive Topline Results in Pivotal Study of Troriluzole in Spinocerebellar Ataxia (SCA)
  • Boeing (BA) ticking higher after hours on report its Defense segment CEO exits, according to Bloomberg
  • Boeing (BA) increased machinist contract offer, according to Seattle Times
  • Boeing (BA) confirms details of 'best and final contract offer'; Contingent on ratification by 11:59 p.m. on Friday, Sept. 27
  • Boeing (BA): Executive leaving Boeing, according to Bloomberg
  • Castle Biosciences (CSTL) will present new data supporting the ability of its TissueCypher Barrett’s Esophagus test to independently predict risk of progression to esophageal cancer in patients with Barrett’s esophagus at the American Foregut Society 2024 Annual Meeting
  • Caledonia Mining (CMCL) confirmed Fatal accident at Blanket Mine
  • Capricor Therapeutics (CAPR) to provide Duchenne Muscular Dystrophy program update on September 24, 2024
  • Centene (CNC) unit selected to provide managed dental health care services to beneficiaries of Medi-Cal, the State's Medicaid program, in Los Angeles and Sacramento counties
  • Comcast (CMCSA) unveils Janus, harnessing leading-edge cloud and AI tech to transform the way its network delivers next-generation internet experiences
  • Comtech Telecom (CMTL): Former CEOs nominate full slate of candidates
  • Comtech (CMTL) comments on director nominations
  • Context Therapeutics (CNTX) and BioAtla announce exclusive worldwide license agreement to develop and commercialize BA3362
  • Delta Air Lines (DAL) signs codeshare agreement with Scandinavian Airlines System, launching enhanced partnership
  • Denny's (DENN) names Christopher D. Bode as its COO, effective September 30
  • EchoStar (SATS) announces that the FCC granted its 5G buildout framework for its Boost Mobile network
  • Empire Petroleum (EP) provides record date for proposed rights offering
  • Exxon Mobil (XOM): California AG R. Bonta files suit against XOM related to plastic waste and pollution crisis
  • General Dynamics (GD): General Dynamics Land Systems Inc., Sterling Heights, Michigan, was awarded a $103,624,116 firm-fixed-price contract
  • Gilead Sciences (GILD) issues voluntary recall of Veklury (Remdesivir) due to contamination risk from glass particles
  • Granite Point Mortgage (GPMT) provides business update, increases buyback authorization by 3 mln shares
  • Great Lakes Dredge & Dock (GLDD) was awarded a $40,646,600 firm-fixed-price contract for dredging and transporting excavated material
  • Hyatt Hotels (H) discloses Purchase and Sale Agreement with the Margot and Tom Pritzker Foundation
  • IdaCorp (IDA) increases quarterly cash dividend to $0.86/share from $0.83/share
  • IDEAYA Biosciences (IDYA) Announces Positive Interim Phase 2 Data for Darovasertib and Successful FDA Type C Meeting on Registrational Trial Design for Regulatory Approval in Neoadjuvant Uveal Melanoma
  • Innate Pharma (IPHA) receives FDA Clearance of the IND for IPH4502
  • Intel (INTC): Apollo (APO) may invest in Intel, according to Bloomberg
  • IperionX (IPX) has executed a sourcing contract for the supply of manufactured metal components for Ford Motor Company (F)
  • Ipsen S.A.'s (IPSEY) Kayfanda (odevixibat) approved in European Union for cholestatic pruritus in Alagille Syndrome, a rare liver disease
  • Ivanhoe Electric (IE) subsidiary entered into a binding term sheet with China Energy Storage Industry Co.
  • Lifezone Metals, (LZM) in partnership with BHP, has formally commenced the project financing process for the Kabanga Nickel Project in Tanzania
  • Lockheed Martin (LMT): Sikorsky Aircraft Corp., Stratford, Connecticut, is awarded $84,260,198 for a firm-fixed-price delivery order
  • Madison Square Garden Entertainment (MSGE) family of companies and Sphere Entertainment Corp. (SPHR) launch expansive partnership with global technology powerhouse Lenovo (LNVGY) and its subsidiary Motorola Mobility, a leading mobile smartphone manufacturer
  • MAG Silver (MAG): Apollo Silver to option Cinco de Mayo Project, Chihuahua, Mexico
  • Movado Group's (MOV) MGI Luxury unit amends license agreement with Hugo Boss
  • New Found Gold Corp. (NFGC) Intersects 300 g/t Au Over 5.1M and 215 g/t Au Over 5.2M at Keats With Phase I Trench Channel Samples
  • News Corp. (NWSA): Starboard confirms in prelim proxy that it is seeking stockholder approval of a request for the Board to take the necessary steps to adopt a recapitalization plan that would eliminate News Corp’s dual-class capital structure
  • Origin Materials (ORGN) announces an organizational realignment that reflects the reallocation of resources to its caps and closures business and reduces overall cash burn to accelerate Origin’s timeline to profitability
  • Orthofix (OFIX) Highlights New Products and Announces Presentation of Data Supporting the Adjunct Use of Bone Growth Therapy for Lumbar Spine Fusion at North American Spine Society Annual Meeting
  • Outbrain Inc. (OB) announces it has repurchased all of the remaining $118 mln in aggregate principal amount of the 2.95% Convertible Senior Notes due 2026 via a privately negotiated repurchase agreement with Baupost Group Securities, L.L.C.
  • Owens & Minor (OMI) names Jonathan Leon as CFO effective immediately
  • Perspective Therapeutics (CATX) discloses in SEC filing that it entered into a Master Equipment and Services agreement and statements of work with Comecer in which it will purchase from Comecer manufacturing equipment for production of radiopharmaceutical products
  • Pharvaris N.V. (PHVS) amended AnalytiCon license agreement
  • Quad/Graphics (QUAD) announces a collaboration with Google Cloud (GOOGL) to leverage its cloud services in the development of a data, creative and personalization powerhouse
  • REE Automotive (REE) has selected Roush Industries, a leading innovative vehicle contract manufacturer, to assemble REE’s P7 vehicles at Roush’s Detroit-area factory
  • Repare Therapeutics (RPTX) Announces New Data Underscoring Need for Additional Treatment Solutions for Patients with Metastatic Gynecologic Cancers
  • Roche Hldg (RHHBY) receives WHO endorsement for dual-stain cytology (CINtec PLUS) testing in its cervical cancer prevention guidelines, advancing patient care and underlining Roche’s role in pioneering cervical cancer solutions
  • Rocket Lab (RKLB) Successfully Launches 53rd Electron Mission, Deploys Another Five Satellites for Kinéis
  • RTX (RTX): Collins Aerospace, Cedar Rapids, Indiana, is awarded a $279,592,539 modification (P00009) to a firm-fixed-price, indefinite-delivery/indefinite-quantity contract
  • Saba Capital Income & Opportunities Fund II (SABA) reauthorizes share repurchase program
  • Sanofi (SNY) reports Sarclisa approved in the US as the first anti-CD38 therapy in combination with standard-of-care treatment for adult patients with newly diagnosed multiple myeloma not eligible for transplant
  • Skye Bioscience (SKYE) Comments on Monlunabant Phase 2 Top-line Data and Reiterates Confidence in Nimacimab Clinical Development Plan
  • Sony (SONY): State of Play returns tomorrow: Company to provide updates on 20+ upcoming PS5 and PS VR2 titles
  • Southwest Air (LUV) looking to restore profitability, according to Bloomberg
  • SSR Mining (SSRM) provides update on Seabee; to restart in second half of October
  • Stellantis (STLA) responds to UAW allegations, defends commitment to 2023 agreement amid industry challenges
  • Stellantis (STLA) search for new CEO is underway although Carlos Tavares' departure is not final, according to Bloomberg
  • Tempur Sealy Int'l (TPX) provided an update with respect to agreement to acquire Mattress Firm Group; announces proposed $1.6 billion Term Loan B Facility
  • Teva (TEVA) Announces Long Term Efficacy and Safety of Deutetrabenazine in European Patients with Debilitating Movement Disorder Tardive Dyskinesia
  • Teva (TEVA) Presents New Phase 3 Efficacy, Safety and Tolerability Data from SOLARIS Trial Evaluating TEV-‘749 (olanzapine) as a Once-Monthly Subcutaneous Long-Acting Injectable for Adult Patients Diagnosed with Schizophrenia
  • Theravance Biopharma (TBPH) provides settlement updates
  • UCB (UCBJY) Announces U.S. FDA Approvals for BIMZELX® (bimekizumab-bkzx) for the Treatment of Psoriatic Arthritis, Non-Radiographic Axial Spondyloarthritis, and Ankylosing Spondylitis
  • uniQure (QURE) announces that the U.S. Food and Drug Administration has granted Orphan Drug Designation to AMT-191
  • UnitedHealth (UNH): Optum Rx responds to FTC action
  • Vale S.A. (VALE) provides update on the beginning of the new CEO's mandate
  • Wabash Natl (WNC) announces that Kodiak Robotics entered into a partnership with Wabash to utilize Wabash’s Trailers as a Service (TaaS) offering
  • Warner Music Group's (WMG) Atlantic Music Group unveils new leadership under CEO Elliot Grainge, restructures to boost creative impact across labels
  • Western Copper (WRN) receives federal funding for B.C.-Yukon Grid Connect Project
  • Wheels Up Experience (UP) announces investor agreement to one-year lock-up extension
  • Winnebago (WGO): Hunterbrook out short on WGO and LCII; Winnebago faces mounting pressure over alleged frame failures, potential cover-up, and growing legal threats as RV market share declines
  • XOMA Royalty Corporation (XOMA) confirms Zevra Therapeutics (ZVRA) has received approval from the FDA for MIPLYFFA (arimoclomol)
  • ZoomInfo (ZI) says Copilot helps sellers capture nearly 25% more pipeline
  • Zoom Video (ZM) reducing stock-based compensation for employees, according to Bloomberg

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

• Upgrades:
  • BNY Mellon (BK) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $80
  • Ciena (CIEN) upgraded to Buy from Sell at Citigroup; tgt raised to $68
  • Keurig Dr Pepper (KDP) upgraded to Buy from Neutral at Citigroup; tgt raised to $43
  • Marinus Pharmaceuticals (MRNS) upgraded to Outperform from Perform at Oppenheimer; tgt $6
  • On (ONON) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $55
• Downgrades:
  • 4D Molecular Therapeutics (FDMT) downgraded to Neutral from Overweight at Cantor Fitzgerald
  • Analog Devices (ADI) downgraded to Hold from Buy at Truist; tgt lowered to $233
  • Azul S.A. (AZUL) downgraded to Neutral from Buy at Goldman
  • Ermenegildo Zegna N.V. (ZGN) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $9.80
  • FEMSA (FMX) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $109
  • General Motors (GM) downgraded to Mkt Perform from Outperform at Bernstein; tgt $53
  • Microchip (MCHP) downgraded to Hold from Buy at Truist; tgt lowered to $80
  • Microsoft (MSFT) downgraded to Neutral from Buy at DA Davidson; tgt $475
  • Moody's (MCO) downgraded to Underperform from Mkt Perform at Raymond James
  • Palantir Technologies (PLTR) downgraded to Mkt Perform from Outperform at Raymond James
  • S&P Global (SPGI) downgraded to Mkt Perform from Outperform at Raymond James
  • Tecnoglass (TGLS) downgraded to Neutral from Buy at B. Riley Securities; tgt raised to $69
  • Ulta Beauty (ULTA) downgraded to Hold from Buy at TD Cowen
• Others:
  • CG Oncology (CGON) initiated with an Outperform at RBC Capital Mkts; tgt $66
  • Core & Main (CNM) initiated with an Overweight at Wells Fargo; tgt $52
  • Core Scientific (CORZ) initiated with a Buy at Canaccord Genuity; tgt $16
  • Flutter Entertainment (FLUT) initiated with a Buy at Needham; tgt $270
  • Keros Therapeutics (KROS) initiated with a Buy at Guggenheim; tgt $96
  • NIKE (NKE) added to Negative Catalyst Watch at JP Morgan
  • OneStream (OS) initiated with an Outperform at BMO Capital Markets; tgt $38
  • Pinterest (PINS) initiated with a Buy at Deutsche Bank; tgt $43
  • Structure Therapeutics (GPCR) initiated with an Overweight at Morgan Stanley; tgt $118
  • The Trade Desk (TTD) initiated with a Neutral at MoffettNathanson; tgt $100

• Econ Data (Tuesday):
  • 9:00 ET: July FHFA Housing Price Index (prior -0.1%) and July S&P Case-Shiller Home Price Index (Briefing.com consensus 6.0%; prior 6.5%)
  • 10:00 ET: September Consumer Confidence (Briefing.com consensus 102.9; prior 103.5)
• Treasury Auctions:
  • 13:00 ET: $69 bln 2-yr Treasury note auction results
• Earnings:
  • Monday (Sept 23)
    • Pre-Market: None
    • After-Hours: AIR
  • Tuesday (Sept 24)
    • Pre-Market: AZO THO
    • After-Hours: KBH PRGS SFIX WOR
  • Wednesday (Sept 25)
    • Pre-Market: CTAS
    • After-Hours: CNXC FUL JEF MU WS
  • Thursday (Sept 26)
    • Pre-Market: ACN KMX JBL SNX
    • After-Hours: BB COST MTN
  • Friday (Sept 27)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike