After Hours Report

The stock market rallied following pleasing inflation data in the form of the December Consumer Price Index (CPI) report. The S&P 500 (+1.8%) traded above its 50-day moving average (5,957) at its session high before closing shy of that key technical level. 

The CPI report reflected a drop in the year-over-year rate in core-CPI to 3.2% from 3.3%. The 10-yr yield, which is most sensitive to changes in inflation, settled 14 basis points lower at 4.65% and the 2-yr yield settled ten basis points lower at 4.26%. The 30-yr bond yield, which settled just below 5.00% yesterday, declined 11 basis points from yesterday to 4.88%.

Broad-based buying interest in the stock market was also supported by solid earnings results from influential names in the financial sector, along with short-covering activity that drove additional buying in the bond market, too. 

JPMorgan Chase (JPM 252.35, +4.88, +2.0%) and Citigroup (C 78.27, +4.77, +6.5%) were among the top performing names in the financial space, reaching fresh 52-week highs after better-than-expected earnings. 

The S&P 500 financial sector benefitted from the positive responses to earnings results, gaining 2.6% compared to yesterday's close. The consumer discretionary (+3.0%), communication services (+2.7%), and information technology (+2.2%) sectors were also top performers, reflecting rebound action in the mega cap space. 

The defensive-oriented consumer staples (-0.1%) and health care (+0.2%) sectors were at the bottom of the lineup among the 11 sectors. 

• S&P Midcap 400: +2.6% YTD
• Dow Jones Industrial Average: +1.6% YTD
• Russell 2000: +1.5% YTD
• S&P 500: +1.2% YTD
• Nasdaq Composite: +1.0% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 33.3%; Prior -3.7%
• December CPI 0.4% (Briefing.com consensus 0.3%); Prior 0.3%, December Core CPI 0.2% (Briefing.com consensus 0.2%); Prior 0.3%
  • The key takeaway from the report for a market worried about inflation heating up again is that these results were better than feared which, at first blush, shrouded the reality that the consumer inflation rate is still running well above the Fed's 2% target (albeit a target tied to the PCE Price Index).
• January Empire State Manufacturing -12.6 (Briefing.com consensus -2.0); Prior was revised to 2.1 from 0.2

Looking ahead to Thursday, market participants receive the following economic data:

• 8:30 ET: December Retail Sales (Briefing.com consensus 0.5%; prior 0.7%), Retail Sales ex-auto (Briefing.com consensus 0.5%; prior 0.2%), weekly Initial Claims (Briefing.com consensus 212,000; prior 201,000), Continuing Claims (prior 1.867 mln), January Philadelphia Fed survey (Briefing.com consensus -6.0; prior -16.4), December Import Prices (prior 0.1%), Import Prices ex-oil (prior 0.0%), Export Prices (prior 0.0%), and Export Prices ex-agriculture (prior 0.1%)
• 10:00 ET: November Business Inventories (Briefing.com consensus 0.1%; prior 0.1%) and January NAHB Housing Market Index (Briefing.com consensus 45; prior 46)
• 10:30 ET: Weekly natural gas inventories (prior -40 bcf)

Overseas:

• Europe: DAX +1.7%, FTSE +1.2%, CAC +0.7%
• Asia: Nikkei +0.1%, Hang Seng +0.3%, Shanghai -0.4%

Commodities:

• Crude Oil +2.36 @ 78.76
• Nat Gas +0.14 @ 3.57
• Gold +33.60 @ 2717.50
• Silver +1.12 @ 31.54
• Copper +0.04 @ 4.39

After-Hours Spotlight:

• Concentrix (CNXC) beats by $0.25, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY25 EPS below consensus, revs below consensus; increases repurchase plan... CNXC down 2.9%
• H.B. Fuller (FUL) misses by $0.08, reports revs in-line; guides FY25 revs below consensus... FUL down 4.3%
• Meta Platforms (META) and Snap (SNAP) lower following President-elect Trump mulling executive order to suspend enforcement of the TikTok ban, according to The Washington Post... META down 1.5%; SNAP down 3.0%

Fair Value for Thursday, Jan 16:

• S&P 500: 5,987
• Nasdaq 100: 21,389
• DJIA: 43,440

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

• Earnings/Guidance (Full Earnings Calendar):
  • Air Products (APD) sees Q1 adjusted EPS above its previous outlook and consensus
  • Amneal Pharmaceuticals (AMRX) expects to meet or exceed FY24 guidance
  • Applied Digital Corporation (APLD) beats by $0.08, beats on revs
  • Bayer AG (BAYRY) expects its pharmaceutical business to return to growth in 2027 supported by the launch of new therapies, according to the Wall Street Journal
  • BlackRock (BLK) beats by $0.69, beats on revs
  • Calavo Growers (CVGW) reports Q4 (Oct) results, beats on revs; provides FY25 commentary
  • Certara (CERT) sees Q4 revs above consensus
  • Citigroup (C) beats by $0.12, reports revs in-line; guides FY25 revs above consensus
  • Compass (COMP) raises Q4 revenue and adjusted EBITDA guidance
  • Cytek Biosciences (CTKB) sees Q4 (Dec) revs of $57-58 mln vs. $61.49 mln FactSet Consensus
  • Eldorado (EGO) gold delivers gold production of 520,293 ounces in 2024, above the midpoint of tightened guidance, with solid fourth quarter preliminary gold production of 155,669 ounces; provides Skouries Construction Progress and Conference Call Details
  • Endeavour Silver (EXK) provides 2025 guidance for Guanaceví and Bolañitos; Production expected at 4.5 – 5.2 Million oz Silver and 30,500 – 34,000 oz Gold for 7.0 – 7.9 Million oz Silver Equivalent
  • Genius Sports (GENI) reiterates FY24 revenue guidance
  • Goldman Sachs (GS) beats by $3.74, beats on revs
  • Impinj (PI) reiterates Q4 revenue guidance
  • Intuitive Surgical (ISRG) sees Q4 revs above consensus
  • JPMorgan Chase (JPM) beats by $0.72, beats on revs; provides FY25 outlook in slide presentation
  • LG Display (LPL) reports FY24 net income +6.5% yr/yr to (KRW 2.4 trillion); revs +24.8% yr/yr to KRW $26.615 trillion
  • Lotus Technology (LOT) announces prelim vehicle devliery results for 2024; delivered 12,065 vehicles, a 70% increase yr/yr
  • McKesson (MCK) reaffirms FY25 EPS guidance
  • Myriad Genetics (MYGN) projects Q4 earnings in-line with consensus, revs below consensus; issues downbeat FY25 guidance
  • NeoGenomics (NEO) sees FY25 revs above consensus
  • nLIGHT (LASR) lowers Q4 revenue guidance due to several factors, including continued weakness in industrial markets and execution challenges in microfabrication business
  • Prairie Operating Co. (PROP) issues FY25 guidance, sees average daily production of 7,000 – 8,000 BOEPD
  • Silvercorp (SVM) reports operational results and financial results release date for the third quarter, fiscal 2025
  • SilverCrest Metals (SILV) provides interim Q4 operational results Las Chispas Operation; Recovered 13,993 ounces gold and 1.38 million ounces silver
  • Talkspace (TALK) reaffirms 2024 guidance and 3-year outlook in presentation
  • Triple Flag (TFPM) Delivers Record GEOs Sales for the Eighth Consecutive Year and Achieves Upper Half of 2024 GEOs Sales Guidance
  • Vericel (VCEL) issues downside Q4 revenue guidance; Guides for 20-23% net revenue growth for 2025
  • Wells Fargo (WFC) beats by $0.08, reports revs in-line
• General News
  • President-elect Trump says he will create a new agency called the "external revenue service" that will be in charge of collecting tariffs
  • Secretary of State nominee Marco Rubio will tell Congress that China cheated its way to superpower status, according to Bloomberg
  • South Korea arrested impeached President Yoon Suk Yeol, according to the Wall Street Journal
  • House Speaker Mike Johnson says he will need to work with Democrats to raise the debt ceiling and acknowledged he will not be able to raise it through party line reconciliation legislation, according to Politico
  • The Biden administration planning new rules to prevent advanced chips from arriving in China, according to Bloomberg
  • TikTok preparing for immediate shutdown in United States on Sunday, according to The Information
  • Senator Joni Ernest (R-IA) says she will vote to confirm Pete Hegseth for Defense Secretary, which all but assures his confirmation, according to NBC News
  • President-elect Trump's transition officials have sidelined anti-vaccine officials that were advising HHS nominee RFK Jr., according to the Wall Street Journal
  • EU mulling gradual ban on aluminum and liquefied natural gas from Russia, according to Bloomberg
  • FDA releases list of select chemicals in the food supply under FDA review, including FD&C Red No. 3
  • Secretary of Transportation nominee Sean Duffy at Senate Hearing says EV owners should pay for use of roads
  • Secretary of State nominee Marco Rubio at Senate hearing says administration will make China believe that cost of Taiwan invasion is too high; says unless something changes, China will invade Taiwan by the end of the decade
  • President-elect Trump in second Truth Social Post says he is thrilled American and Israeli hostages will be returning home; says his national security team will continue to work closely with Israel and its allies to make sure Gaza never again becomes a terrorist safe haven
  • Energy Secretary nominee Chris Wright wants more nuclear and liquified natural gas power in US, according to Reuters
  • President Biden issues statement on Israel/Hamas ceasefire and hostage release deal
  • President Biden remarks on Israel/Hamas ceasefire: Phase 1 of the deal will last 6 weeks; Israel will withdraw forces from Gaza & Hamas will release hostages; Terms of the deal will be implemented by Trump administration; says both administrations were speaking "as one team"
  • Algonquin Power & Utilities (AQN) announces departure of CFO Darren Myers as he elects to pursue another leadership opportunity, Replacement search to be conducted
  • Altria (MO): FDA proposes significant step toward reducing nicotine to minimally or nonaddictive level in cigarettes and certain other combusted tobacco products
  • American Express (AXP) reported December card metrics
  • American Water Works (AWK) and Calgon Carbon Corporation jointly announce the signing of a nine-year exclusive supply contract providing granular activated carbon, equipment and reactivation services to more than 50 American Water sites across 10 states
  • Anavex Life Sciences (AVXL) Announces Peer-Reviewed Publication of Oral Blarcamesine Phase IIb/III Data in The Journal of Prevention of Alzheimer’s Disease
  • AvePoint (AVPT) entered into an agreement to acquire Ydentic
  • BAE Systems (BAESY) awarded $85 mln U.S. Navy production contract to deliver additional Network Tactical Common Data Link (NTCDL) systems
  • Bank of America (BAC) reports December card metric
  • Beacon (BECN) confirms receipt and reiterates rejection of unsolicited proposal
  • Becton Dickinson (BDX) announced additional investments in its U.S. manufacturing network to add capacity for critical medical devices, including syringes, needles and IV catheters, to meet the ongoing needs of the nation's health care system
  • Biogen (BIIB) and Eisai (ESAIY) receive BLA acceptance for LEQEMBI for Subcutaneous maintenance dosing for the treatment of early Alzheimer's Disease
  • Boeing (BA): Transportation Secretary nominee Sean Duffy says he will work to restore confidence in Boeing, according to the New York Times
  • Braemar Hotels & Resorts (BHR) has successfully extended its mortgage loan secured by the 170-room Ritz-Carlton Lake Tahoe
  • Bristol Myers Squibb (BMY) CEO Chris Boerner in interview spoke about new drug to treat psychiatric disorders, according to CNBC
  • Calumet Specialty Products (CLMT) provides update on recent financing activity; does not envision a need to issue equity
  • Cboe (CBOE) unveils new brand for exchange technology platform, marking new chapter in technology innovation and growth
  • Chipotle Mexican Grill (CMG) announces that its investing in aquatic plant-based technologies that aim to emulate animal protein and scale more sustainable cattle feed
  • Citigroup (C) reports December card metrics
  • Concrete Pumping (BBCP) declares special cash dividend of $1.00 per share
  • Cybin (CYBN) announces the launch of its first strategic partnership agreement with Segal Trials in furtherance of Cybin’s multinational pivotal Phase 3 program evaluating CYB003 for the adjunctive treatment of Major Depressive Disorder
  • Deere (DE) essentially unchanged in after hours after U.S. Federal Trade Commission prepares lawsuit against company, claiming its agricultural equipment repair practices violate competitive laws, according to Bloomberg
  • Deere (DE): FTC will soon file lawsuit against Deere for alleged monopolized equipment repairs, according to Bloomberg
  • Deere (DE): FTC confirms suit against Deere stating that it "has illegally restricted the ability of farmers and independent technicians to repair Deere equipment, including tractors and combines"
  • DHT (DHT) provides business update, estimating Q4 time charter equivalent earnings for its fleet at $38,800 per day
  • Discover Financial Services (DFS) in SEC filing: Net charge-off rate of 2.55% at the end of December
  • Ecopetrol (EC) reached an agreement with JPMorgan Chase Bank N.A. to reduce 50% of the conversion cost for the purchase and sale of ADRs in the United States
  • Edison International (EIX) decision to keep power lines active during windstorm is being questioned, according to Bloomberg
  • Freddie Mac (FMCC) and International Exchange (ICE) announce enhancements that leverage both companies’ automation technologies to enable lenders to more quickly and efficiently underwrite mortgage loans starting at the point of sale
  • GE HealthCare (GEHC) and that University of California, San Francisco Department of Radiology & Biomedical Imaging announce the launch of a Care Innovation Hub, a joint research collaboration that aims to address meaningful clinical challenges in three key areas: accessibility to advanced medical imaging, non-invasive diagnosis and management of neurological and neurodegenerative disease, and precision oncology
  • General Motors (GM): Vianode has been selected as a strategic supplier of high-performance anode graphite solutions to General Motors
  • Glaukos (GKOS) Announces Positive Clinical Updates for its iDose Sustained-Release Procedural Pharmaceutical Platform
  • GoDaddy (GDDY): FTC takes action against GoDaddy for alleged lax data security for its website hosting services
  • Grab (GRAB) and BYD (BYDDY) enter strategic partnership to expand electric vehicle fleet offering across Southeast Asia
  • Hudson Pacific Properties (HPP): office properties and studio facilities and equipment located in Los Angeles are undamaged and fully operational
  • Hyliion (HYLN) purchases M Line additive manufacturing systems from colibrium additive to scale production of KARNO generators
  • InflaRx (IFRX) receives European Commission marketing authorization for GOHIBIC to treat SARS-CoV-2-induced ARDS in ICU patients
  • Intel (INTC) to separate Intel Capital, its global venture capital arm, into a standalone fund; Standalone operations expected to begin in 2H25
  • Intl Game Tech. PLC (IGT): lottery and iLottery operations have been recertified by the World Lottery Association
  • Intuitive Machines (LUNR) named as recipient of NASA Space Network Services contract award
  • JPMorgan Chase (JPM) reports December card metrics
  • JP Morgan (JPM) CEO Jamie Dimon succession list is narrowing, according to the New York Times
  • Kennametal (KMT) announces three to five plant closures by the end of FY27; initiates headcount reduction
  • Keros Therapeutics (KROS) has voluntarily halted all dosing in the TROPOS trial
  • L3Harris (LHX) CEO provides DOGE’s Musk and Ramaswamy recommendations to modernize national defense ecosystem
  • Lineage (LINE) aiming to eliminate jobs, according to the Wall Street Journal
  • LiveWire Group (LVWR) announces the launch of the all-new S2 Alpinista, now available for purchase with inventory available at North American and European dealers
  • Lundin Mining (LUNMF) and BHP (BHP) form strategic alliance with completion of Filo acquisition and launch of Vicuña Corp. to develop emerging copper district
  • Meta (META) believes India antitrust ruling could hurt its business, according to Reuters
  • Microsoft (MSFT) to lay off employees on security, sales, and gaming teams separate from performance cuts, according to Business Insider
  • Microsoft (MSFT) announces new Quantum Ready program
  • Millicom International Cellular (TIGO) approved a new shareholder remuneration policy
  • Natera (NTRA) Announces Innovation Roadmap, with Advancements in MRD and Early Cancer Detection
  • Nokia (NOK) signs multi-year video technologies license agreement with Samsung (SSNLF)
  • NVIDIA (NVDA) announcing its first Quantum Day at GTC 2025 on Thursday, March 20
  • OS Therapies (OSTX) announces "positive" data from a Phase 2b clinical trial of OST-HER2
  • Palladyne AI (PDYN) and Red Cat Holdings (RCAT) announce first successful multi-drone collaborative autonomous flight
  • Plug Power (PLUG) announces a landmark purchase agreement with Allied Green Ammonia
  • Pony AI (PONY) becomes the first company in China approved for autonomous truck platooning tests
  • Rapid7 (RPD) achieved the In Process Designation from the Federal Risk and Authorization Management Program for its InsightGovCloud Platform
  • Sinclair Broadcast (SBGI) and NBC announce a comprehensive, multi-year agreement that renews station affiliation agreements for all 21 of Sinclair’s owned and/or operated NBC affiliates, with the stations reaching nearly 7 million U.S. TV households
  • Southwest Air (LUV): Department of Transportation to file lawsuit against LUV for delayed flights - CNBC
  • Sunoco (SUN): U.S. Supreme Court declines to hear a bid by Sunoco and other oil companies to end Honolulu lawsuit, according to Reuters
  • Tesla (TSLA): SEC files lawsuit against TSLA CEO Elon Musk for allegedly not properly disclosing stake in Twitter before his purchase of the company
  • Trilogy Metals (TMQ) Announces Positive Study Results for the Bornite Copper Project Located in Alaska, USA
  • Verastem (VSTM) announces the appointment of Matthew E. Ros as chief operating officer
  • Vertical Aerospace Group (EVTL) names Dómhnal Slattery as Chairman
  • Viasat (VSAT) named as recipient of NASA Near Space Network Services contract
  • Vista Energy (VIST) promoted Matías Weissel to Chief Operations Officer
  • Volkswagen AG (VWAGY) CFO targets productivity gains to secure German plant competitiveness, according to Reuters
  • Vontier's Driivz (VNT) announced a partnership with ON the RUN Charging to install its EV charging and energy management software across chargers located at convenience stores in Canada
  • Zai Lab (ZLAB) announces "positive" topline results from the China subpopulation of the global Phase 3 innovaTV 301 study, demonstrating a clinically meaningful improvement in overall survival with TIVDAK treatment for patients with previously treated recurrent or metastatic cervical cancer compared to chemotherapy

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

• Upgrades:
  • Adobe (ADBE) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $425
  • CareDx (CDNA) upgraded to Equal Weight from Underweight at Wells Fargo; tgt lowered to $24
  • CBRE Group (CBRE) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $160
  • Centerspace (CSR) upgraded to Buy from Neutral at Janney; tgt $72
  • Devon Energy (DVN) upgraded to Outperform from Mkt Perform at Bernstein; tgt $45
  • Digital Realty Trust (DLR) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $194
  • Edison (EIX) upgraded to Neutral from Sell at Ladenburg Thalmann; tgt $56.50
  • EQT Corp. (EQT) upgraded to Outperform from Mkt Perform at Bernstein; tgt $73
  • Healthpeak Properties (DOC) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $25
  • KB Home (KBH) upgraded to Neutral from Sell at Seaport Research Partners
  • Macerich (MAC) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $20
  • NNN REIT (NNN) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $48
  • NorthWestern (NWE) upgraded to Buy from Neutral at Ladenburg Thalmann; tgt $57.50
  • SAP SE (SAP) upgraded to Buy from Hold at Kepler
  • The Shyft Group (SHYF) upgraded to Buy from Neutral at DA Davidson; tgt $15
  • Weyerhaeuser (WY) upgraded to Sector Outperform from Neutral at CIBC; tgt $35
• Downgrades:
  • Aris Water Solutions (ARIS) downgraded to In-line from Outperform at Evercore ISI; tgt raised to $27
  • Douglas Emmett (DEI) downgraded to Neutral from Buy at Janney
  • Gaming and Leisure Properties (GLPI) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $53
  • Helmerich & Payne (HP) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $39
  • Intuit (INTU) downgraded to Underperform from Neutral at Exane BNP Paribas; tgt $530
  • Lam Research (LRCX) downgraded to Peer Perform from Outperform at Wolfe Research
  • NNN REIT (NNN) downgraded to Neutral from Buy at Janney; tgt $43
  • Noble Corporation (NE) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $41
  • NOV Inc. (NOV) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $18
  • Safehold (SAFE) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $19
  • SentinelOne (S) downgraded to Neutral from Buy at UBS; tgt lowered to $25
  • SLB (SLB) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $44
  • Tidewater (TDW) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $68
  • Transocean (RIG) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $5
  • Valaris (VAL) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $59
  • XPO, Inc. (XPO) downgraded to Hold from Buy at Stifel; tgt lowered to $124
• Others:
  • Affirm (AFRM) initiated with an Outperform at William Blair
  • CNX Resources (CNX) initiated with a Hold at TD Cowen; tgt $27
  • Curbline Properties (CURB) initiated with a Neutral at Compass Point; tgt $24
  • Enbridge (ENB) initiated with a Buy at TD Securities
  • Pembina Pipeline (PBA) initiated with a Buy at TD Securities
  • SoFi Technologies (SOFI) initiated with an Outperform at William Blair
  • South Bow Corporation (SOBO) initiated with a Hold at TD Securities
  • TC Energy (TRP) initiated with a Buy at TD Securities

• Econ Data (Thursday):
  • 8:30 ET: December Retail Sales (Briefing.com consensus 0.5%; prior 0.7%), Retail Sales ex-auto (Briefing.com consensus 0.5%; prior 0.2%), weekly Initial Claims (Briefing.com consensus 212,000; prior 201,000), Continuing Claims (prior 1.867 mln), January Philadelphia Fed survey (Briefing.com consensus -6.0; prior -16.4), December Import Prices (prior 0.1%), Import Prices ex-oil (prior 0.0%), Export Prices (prior 0.0%), and Export Prices ex-agriculture (prior 0.1%)
  • 10:00 ET: November Business Inventories (Briefing.com consensus 0.1%; prior 0.1%) and January NAHB Housing Market Index (Briefing.com consensus 45; prior 46)
  • 10:30 ET: Weekly natural gas inventories (prior -40 bcf)
• Earnings:
  • Monday (Jan 13)
    • Pre-Market: None
    • After-Hours: KBH
  • Tuesday (Jan 14)
    • Pre-Market: None
    • After-Hours: APLD CVGW
  • Wednesday (Jan 15)
    • Pre-Market: BLK BK C GS JPM WFC
      
    • After-Hours: CNXC FUL HOMB SNV
  • Thursday (Jan 16)
    • Pre-Market: BAC FHN IIIN MTB MS PNC USB UNH TSM
    • After-Hours: OZK JBHT
  • Friday (Jan 17)
    • Pre-Market: CFG FAST HBAN RF SLB STT TFC WBS
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike