After Hours Report

The stock market settled little changed from yesterday's close. There wasn't much carryover selling interest after the S&P 500 found support on an early test of its 50-day moving average (5,506). The index dropped below that level in the afternoon, but ultimately settled the day above the key, short-term support level. 

Market breadth reflected a lack of conviction on either side of the tape, contributing to the lackluster action at the index level along with choppy movement in some mega cap names. NVIDIA (NVDA 106.21, -1.79, -1.7%) shares were volatile today in response to a report, which the company then denied, that it received a DOJ subpoena.

The market was also digesting the JOLTS report, which showed that job openings fell to 7.673 mln from 7.910 mln in July, reaching their lowest level since early 2021. Tomorrow's calendar also features data on the labor market in the form of weekly jobless claims and the ADP Employment Change for August. 

This sent Treasury yields lower, which didn't stir selling in equities due to the notion that weakness in the labor market will drive the Fed to cat rates by 50 basis points this month. The fed funds futures market now sees a 45.0% probability of a 50 basis points rate cut at the September 17-18 FOMC meeting, up from 38.0% yesterday, according to the CME FedWatch Tool.

The 2-yr note yield declined 12 basis points to 3.77% and the 10-yr note yield also settled at 3.77%, down eight basis points from yesterday.

The rate-sensitive real estate (+0.3%) and utilities (+0.9%) sectors were winning standouts today. Meanwhile, energy (-1.4%) was the only sector down more than 0.5% after oil prices dropped below $70.00/bbl. WTI crude oil futures settled 1.8% lower at $69.13/bbl, reflecting lingering concerns about growth prospects impacting demand. 

• S&P 500: +15.7% YTD
• Nasdaq Composite: +13.8% YTD
• Dow Jones Industrial Average: +8.7% YTD
• S&P Midcap 400: +8.0% YTD
• Russell 2000: +5.8% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 1.6%; Prior 0.5%
• July Trade Balance -$78.8 bln (Briefing.com consensus -$78.5 bln); Prior was revised to -$73.0 bln from -$73.1 bln
  • The key takeaway from the report is the uptick in imports. While that will act as a drag on Q3 GDP forecasts, the increase in imports will nonetheless be construed as a reassuring demand signal for the U.S. economy.
• July Factory Orders 5.0% (Briefing.com consensus 4.5%); Prior -3.3%
  • The key takeaway from the report is that business spending languished in July.
• July JOLTS - Job Openings 7.673 mln; Prior was revised to 7.910 mln from 8.184 mln

Thursday's economic lineup features:

• 8:15 ET: August ADP Employment Change (Briefing.com consensus 150,000; prior 122,000)
• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 236,000; prior 231,000), Continuing Claims (prior 1.868 mln), revised Q2 Productivity (Briefing.com consensus 2.3%; prior 2.3%), and revised Q2 Unit Labor Costs (Briefing.com consensus 0.9%; prior 0.9%)
  9:45 ET: Final August S&P Global U.S. Services PMI (prior 55.0)
• 10:00 ET: August ISM Non-Manufacturing (Briefing.com consensus 51.0%; prior 51.4%)
• 10:30 ET: Weekly natural gas inventories (prior +35 bcf)
• 11:00 ET: Weekly crude oil inventories (prior -0.85 mln)

Overseas:

• Europe: DAX -0.8%, FTSE -0.4%, CAC -1.0%
• Asia: Nikkei -4.4%, Hang Seng -1.1%, Shanghai -0.7%

Commodities:

• Crude Oil -1.24 @ 69.13
• Nat Gas -0.06 @ 2.14
• Gold +3.20 @ 2525.40
• Silver +0.15 @ 28.54
• Copper -0.02 @ 4.07

After-Hours Spotlight:

• C3.ai (AI) beats by $0.08, reports revs in-line; guides Q2 revs in-line; reaffirms FY25 revs guidance... AI down 16.4%
• Casey's General (CASY) beats by $0.33, misses on revs, inside comps of +2.3%; FY25 outlook unchanged, no updates until after closing of previously disclosed Fikes transaction... CASY down 0.3%
• Couchbase (BASE) beats by $0.03, reports revs in-line; guides Q3 revs in-line; guides FY25 revs in-line... BASE down 8.6%
• Credo Technology Group (CRDO) reports EPS in-line, revs in-line; guides Q2 revs above consensus... CRDO down 7.0%
• Fortive (FTV) announces intention to pursue spin-off of its Precision Technologies segment, announces leadership succession plan, and reaffirms Q3 and FY24 guidance... FTV up 3.8%
• Hewlett Packard Enterprise (HPE) beats by $0.03, reports revs in-line; guides Q4 midpoints of EPS and revs above consensus... HPE down 3.1%
• NVIDIA (NVDA) spokesperson says company did not receive a DOJ subpoena, according to Reuters... NVDA up 0.5%
• Topgolf Callaway Brands (MODG) announces intent to pursue the separation of its business into two independent companies: Callaway and TopGolf... MODG up 1.1%
• Verint Systems (VRNT) misses by $0.04, misses on revs; guides FY25 EPS below consensus, reaffirms FY25 revs guidance... VRNT down 17.0%
• XPO, Inc. (XPO) reports preliminary LTL segment operating metrics for August 2024... XPO down 7.2%

Fair Value for Thursday, Sept. 5:

• S&P 500: 5,532
• Nasdaq 100: 18,966
• DJIA: 41,061

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

• Earnings/Guidance (Full Earnings Calendar):
  • America's Car-Mart (CRMT) reports Q1 (Jul) results, beats on revs
  • ArcBest (ARCB) provides prelim August operating statistics; billed revenue/day down 7% yr/yr; continue to see lower weight per shipment levels
  • Asana (ASAN) beats by $0.03, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS in-line, revs below consensus
  • BioMarin Pharmaceutical (BMRN) guides long-term guidance in presentation slides; reaffirms FY24 guidance (shares halted)
  • Byrna Technologies (BYRN) sees Q3 revs above consensus
  • Canadian Pacific Kansas City Ltd. (CP) provides 2024 outlook and long-term growth forecasts in Investor Presentation; expects double-digit core adjusted EPS growth in FY24
  • Centene (CNC) reaffirms FY24 EPS guidance at conference; still seeing pressure in Medicaid
  • Chart Industries (GTLS) at Barclays CEO Conference; says it will be well positioned in 2025 given its current backlog
  • Ciena (CIEN) beats by $0.09, beats on revs
  • Ciena (CIEN) comments from Q3 conference call; guides Q4 revs in-line
  • Core & Main (CNM) misses by $0.13, misses on revs; guides FY25 revs below consensus
  • Dick's Sporting Goods (DKS) beats by $0.51, reports revs in-line; raises FY25 EPS and comparable sales guidance, guides revenue below consensus
  • Dollar Tree (DLTR) misses by $0.37, misses on revs; guides Q3 EPS below consensus, revs in-line; guides FY25 EPS below consensus, revs below consensus
  • GitLab (GTLB) beats by $0.05, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs above consensus
  • Graphic Packaging (GPK) now expects FY24 adjusted EPS below mid-point of prior guidance due to weather events
  • HealthEquity (HQY) beats by $0.16, beats on revs; guides FY25 EPS in-line, revs in-line; authorizes $300 mln for repurchases
  • Helix Energy (HLX) reiterates FY24 revenue guidance in company update presentation
  • Hormel Foods (HRL) beats by $0.01, misses on revs; guides FY24 EPS in-line, revs below consensus
  • NorthWestern (NWE) reaffirms FY24 EPS guidance in slide presentation
  • OneStream (OS) reports Q2 results, beats slightly on revs; guides Q3 and FY24 in-line
  • PagerDuty (PD) beats by $0.04, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY25 EPS in-line, revs below consensus
  • REV Group (REVG) beats by $0.06, misses on revs; lowers FY24 guidance
  • Saia (SAIA) provides third quarter LTL operating data
  • Seagate Tech (STX) at conference sees Q1 EPS at high end of prior range, but that is still below consensus
  • Torrid (CURV) beats by $0.01, reports revs in-line; guides Q3 revs in-line; guides FY24 revs above consensus
  • V.F. Corp (VFC) discloses the availability of supplemental investor information; Excluding the impact from Supreme in fiscal 2025, there are no changes to VFC's expectations for Q2’FY25
  • Zscaler (ZS) beats by $0.18, beats on revs; guides Q1 EPS below consensus, revs above consensus; guides FY25 EPS below consensus, revs in-line
• General News
  • Vice President Kamala Harris proposes extension of small business tax deduction, according to the Wall Street Journal
  • China mulling mortgage rate reductions, according to Bloomberg
  • OPEC+ mulling delay in planned oil output increase in October, according to Reuters
  • The Biden administration will impose more sanctions against Russia for election opinion manipulation, according to NBC News
  • Accuray's (ARAY) President and CEO to take a temporary medical leave of absence; Senior Vice President and Chief Commercial Officer, Sandeep Chalke, will serve as interim CEO
  • Advanced Micro (AMD) announces that Keith Strier, who most recently served as vice president of worldwide AI initiatives at NVIDIA, will join company as senior vice president of global AI markets
  • Alamos (AGI) expands high-grade mineralization at Puerto Del Aire and defines multiple new high-grade zones at cerro pelon supporting significant upside potential within the PDA project
  • Aon (AON): ICEYE and Aon expand collaboration with flood and wildfire data agreement to enhance event response
  • Asana (ASAN) names Sonalee Parekh, as its new CFO, effective September 11; to succeed Tim Wan, who will remain with the company in an advisory position
  • Ascendis Pharma (ASND) and Royalty Pharma (RPRX) enter into $150 mln royalty funding agreement based on U.S. net sales of YORVIPATH
  • ASUSTeK (ASUUY) showcased its latest technological innovations at the Always Incredible Media Day for IFA 2024 in Berlin, Germany
  • Athira Pharma (ATHA) announces topline results from Phase 2/3 LIFT-AD clinical trial of fosgonimeton for mild-to-moderate alzheimer’s disease
  • Autohome (ATHM) approves new $200 mln share repurchase program
  • Axsome Therapeutics (AXSM) announces that the U.S. FDA has acknowledged the resubmission of the Company’s New Drug Application for AXS-07 for the acute treatment of migraine
  • Bayer AG (BAYRY) will present detailed results from the Phase III long-term study OASIS 3, evaluating the efficacy and long-term safety of the investigational compound elinzanetant versus placebo, at the upcoming annual meeting of The Menopause Society
  • Biogen (BIIB) Announces Positive Topline Results from Study of Higher Dose Regimen of Nusinersen, Showing Significant Benefit in Treatment of SMA
  • Bitfarms (BITF) issues statement to address misleading claims from Riot (RIOT)
  • Boeing (BA) speeds up China 737 Max jet deliveries, according to Bloomberg
  • Cathay Pacific (CPCAY) will return all Airbus (EADSY) A350 jets to service Saturday after engine issue, according to Reuters
  • Cellectis (CLLS) Presents Pre-Clinical Evidence of MUC1 CAR T-cells Reducing Triple-Negative Breast Cancer While Preserving Safety
  • Centene (CNC) announces that its Iowa-based subsidiary, Iowa Total Care, has been selected by the Iowa Department of Health and Human Services to continue providing Medicaid managed care services under the Iowa Health Link program
  • Ciena (CIEN) CFO James Moylan to retire in August 2025
  • CME Group (CME) reports August ADV of 31.7 mln contracts
  • Cognyte (CGNT) Shareholders reelect both of the company’s director nominees and support the proposal to approve amendments to the CEO’s compensation plan at annual meeting
  • Curtiss-Wright (CW) announces that it has been awarded a $26 million multi-year contract by the Belgian Air Force to implement a modernization program for its aircraft arresting systems
  • Daimler Truck Holding AG (DTRUY): Chairman M. Daum to resign on Sept. 30, 2024; company appoints Karin Rådström as Chair starting Oct. 1, 2024
  • DoubleVerify (DV) announces that it has achieved ISO 27701 certification, the first international privacy standard to provide a certification path for organizations to demonstrate their privacy systems and controls
  • DraftKings (DKNG) and White Hat Gaming fined by Connecticut for operating online slot machine game failing to pay winners, according to CNBC
  • Freddie Mac (FMCC) announces that it will offer approximately $233 million in non-performing loans for sale via auction
  • Frontier Communications Parent (FYBR): Verizon (VZ) is in advanced talks to acquire FYBR, according to WSJ (FYBR halted on volatility)
  • Grocery Outlet (GO) announces official launch of new private label program called Go Brands
  • Honda Motor (HMC): American Honda sales +25% yr/yr to 139,950 units in August
  • Insight Enterprises (NSIT) appoints James Morgado as CFO
  • Intel's (INTC) financial issues are impacting President Biden's chip investment plan, according to Bloomberg
  • Intel's (INTC) tests with Broadcom (AVGO) have failed, which is a setback for INTC, according to Reuters
  • International Money Express (IMXI): Breach Inlet Capital delivered a letter to the Board of Directors of International Money Express
  • iRhythm (IRTC) has signed an exclusive license agreement with BioIntelliSense to develop and commercialize certain patented technology assets within ambulatory cardiac monitoring
  • KLA Corporation (KLAC) increases quarterly cash dividend 17% to $1.70/share from $1.45/share
  • Logitech Int'l SA (LOGI) approves proposal to increase its FY24 dividend to CHF 1.16 from CHF 1.06/share
  • Lyft (LYFT) announced a restructuring plan related to its bikes and scooters transportation mode as part of its efforts to align strategic priorities and to reduce operating costs
  • MediciNova (MNOV) Announces Acceptance of Abstract Regarding MN-166 (ibudilast) in COMBAT-ALS Clinical Trial for Presentation at the 2024 Annual NEALS (Northeast Amyotrophic Lateral Sclerosis Consortium) Meeting
  • Merck (MRK) to Present Survival Data and New Research on 10 Investigational or Approved Medicines at ESMO Congress 2024
  • Metagenomi (MGX) Announces Preclinical Data for Lead Hemophilia A Program Demonstrating Durable Factor VIII (FVIII) Activity Levels through Twelve Months
  • Microsoft (MSFT): OpenAI Chief Executive Officer Sam Altman will spend billions on US infrastructure for AI, according to Bloomberg
  • Microsoft (MSFT): UK CMA cleared Microsoft’s hiring of certain former employees of Inflection and its entry into associated arrangement with Inflection
  • Microsoft (MSFT): Customers are balking at AI assistant in MSFT products owing to performance & cost issues, according to The Information
  • Mitsubishi Financial (MUFG): Japanese megabanks working on plan to implement instant int'l payments using blockchain technology, according to Nikkei
  • Moderna (MRNA): Cell Journal posts study titled "Comparison of protection against Mpox following mRNA or modified vaccinia Ankara vaccination in nonhuman primates"
  • Novo Nordisk A/S (NVO): UK MHRA finds evidence does not support a link between Glucagon-Like Peptide-1 (GLP-1) receptor agonists and suicidal and self-injurious thoughts and actions
  • Novo Nordisk (NVO): Ozempic shortages in EU expected to continue through Q4 of this year, according to Reuters
  • NVIDIA (NVDA) receives DOJ subpoena in escalating antitrust probe, according to Bloomberg
  • O-I Glass (OI) discloses it has approved the closure of four furnaces, which includes a single-furnace plant, in the Americas segment
  • Omnicon (OMC) and WPP (WPP) secure Amazon (AMZN) media review win, according to AdWeek
  • Pfizer (PFE): Acepodia enters strategic clinical collaboration with Pfizer to accelerate development of anti-body-cell conjugation-based cell therapies in autoimmune diseases
  • Pinduoduo (PDD): CPSC to evaluate ecommerce platforms Shein, Temu, and others to determine how these foreign-owned firms that rely on overseas suppliers meet their obligations under the Consumer Product Safety Act
  • Qualcomm (QCOM) expands performance leadership to more Copilot+ PC users with new Snapdragon X Plus 8-core
  • Rayonier Adv. Materials (RYAM) announces that, effective immediately, it will increase prices for its Cellulose Specialties products by up to 10%, depending on product grade, as contracts allow
  • RingCentral (RNG) announces that Sonalee Parekh has resigned as CFO, effective September 10; The Company has initiated a search to identify a successor that will include both internal and external candidates
  • Robinhood (HOOD) will allow UK users to lend out stocks, according to CNBC
  • Roche Hldg (RHHBY) reports fenebrutinib demonstrated near-complete suppression of disease activity and disability progression for up to 48 weeks in patients with relapsing multiple sclerosis
  • Sandy Spring Banc (SASR) is working with advisers to explore potential sale; Atlantic Union Bankshares (AUB) among suitors, according to Bloomberg
  • Select Medical (SEM) signs definitive agreement to purchase Valir Rehabilitation Hospital, a 50-bed inpatient rehabilitation facility in Oklahoma City, from Valir Health; financial terms were not disclosed
  • Sony (SONY) decides to take the game Concord offline beginning September 6, 2024
  • SOPHiA GENETICS (SOPH) Unveils New Generation of the SOPHiA DDMTM Platform at Morgan Stanley Healthcare Conference 2024
  • Targa Resources (TRGP) rejected initial takeover proposal from Williams (WMB), according to Bloomberg
  • U.S. Steel (X) follow up to reports President is preparing to block Nippon Steel deal (X remains halted on volatility)

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

• Upgrades:
  • Alcoa (AA) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $36
  • Astera Labs (ALAB) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $55
  • Ball Corp (BALL) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $78
  • Boyd Gaming (BYD) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $74
  • Coupang (CPNG) upgraded to Outperform from Hold at CLSA; tgt raised to $31
  • Embraer SA (ERJ) upgraded to Buy from Hold at TD Cowen; tgt raised to $41
  • Freeport-McMoRan (FCX) upgraded to Buy from Neutral at UBS; tgt raised to $5
• Downgrades:
  • Amphenol (APH) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $71
  • ArcBest (ARCB) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $112
  • ASML (ASML) downgraded to Neutral from Buy at UBS
  • Athira Pharma (ATHA) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
  • Athira Pharma (ATHA) downgraded to Neutral from Buy at BTIG Research
  • Booking Holdings (BKNG) downgraded to Hold from Buy at Jefferies; tgt lowered to $4200
• Others:
  • Adlai Nortye Ltd. (ANL) initiated with a Buy at H.C. Wainwright; tgt $9
  • Ameresco (AMRC) initiated with a Hold at Jefferies; tgt $33
  • American Homes 4 Rent (AMH) initiated with a Buy at Goldman; tgt $48
  • Applied Industrial (AIT) initiated with an Outperform at Raymond James; tgt $225
  • Array Tech (ARRY) resumed with a Buy at Jefferies; tgt $11
  • AvidXchange (AVDX) initiated with a Neutral at Compass Point; tgt $8
  • Berry Global (BERY) initiated with an Equal-Weight at Morgan Stanley; tgt $76
  • Biohaven (BHVN) initiated with an Outperform at Bernstein; tgt $55
  • BridgeBio Pharma (BBIO) initiated with an Overweight at Piper Sandler; tgt $46
  • Camden Property (CPT) initiated with a Neutral at Goldman; tgt $139
  • CI&T Inc (CINT) initiated with a Neutral at Goldman; tgt $7.30
  • Confluent (CFLT) initiated with a Neutral at Robert W. Baird; tgt $23
  • Core Scientific (CORZ) initiated with a Buy at Needham; tgt $16
  • Equity Residential (EQR) initiated with a Neutral at Goldman; tgt $81
  • Essex Property (ESS) initiated with a Neutral at Goldman; tgt $318
  • Eton Pharmaceuticals resumed (ETON) with a Buy at H.C. Wainwright; tgt $9
  • Fluence (FLNC) initiated with a Buy at Jefferies; tgt $26
  • Genmab (GMAB) resumed with an Equal-Weight at Morgan Stanley; tgt $31
  • Gentex (GNTX) initiated with a Neutral at UBS; tgt $34
  • GE Vernova (GEV) initiated with a Buy at Jefferies; tgt $261
  • Hannon Armstrong Sust. Infr. (HASI) initiated with a Buy at Jefferies; tgt $39

• Econ Data (Thursday):
  • 8:15 ET: August ADP Employment Change (Briefing.com consensus 150,000; prior 122,000)
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 236,000; prior 231,000), Continuing Claims (prior 1.868 mln), revised Q2 Productivity (Briefing.com consensus 2.3%; prior 2.3%), and revised Q2 Unit Labor Costs (Briefing.com consensus 0.9%; prior 0.9%)
  • 9:45 ET: Final August S&P Global U.S. Services PMI (prior 55.0)
  • 10:00 ET: August ISM Non-Manufacturing (Briefing.com consensus 51.0%; prior 51.4%)
  • 10:30 ET: Weekly natural gas inventories (prior +35 bcf)
  • 11:00 ET: Weekly crude oil inventories (prior -0.85 mln)
• Earnings:
  • Monday (Sept 2)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Sept 3)
    • Pre-Market: MOMO
    • After-Hours: GTLB PD ZS
  • Wednesday (Sept 4)
    • Pre-Market: CRMT CIEN CNM DKS DLTR HRL REVG CURV
    • After-Hours: AVAV AI CASY CHPT CPRT BASE CRDO HPE PHR CXM VRNT YEXT
  • Thursday (Sept 5)
    • Pre-Market: KFY NIO SAIC SCVL TTC
    • After-Hours: AGX BRZE AVGO DOCU GWRE IOT SMAR SWBI PATH ZUMZ
  • Friday (Sept 6)
    • Pre-Market: ABM BRC DOOO GCO
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike