After Hours Report

The stock market experienced some selling pressure today, but index-level performance didn't reflect that. The S&P 500 (+0.6%) reached a fresh all-time high of 6,100.81, powered by mega caps and chipmakers. 

The Vanguard Mega Cap Growth ETF (MGK) closed 1.7% higher while the PHLX Semiconductor Index (SOX) gained 1.7%, buoyed by enthusiasm around AI initiatives. This followed President Trump’s $500 billion AI infrastructure announcement, which brought together notable industry leaders like Oracle's (ORCL 184.22, +11.65, +6.8%) Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman, helping propel sentiment in the tech space.

Market internals painted a different picture. At both the NYSE and Nasdaq, decliners outpaced advancers and the equal-weighted S&P 500 closed 0.4% lower. Also, the Russell 2000 (-0.6%) and S&P Mid Cap 400 (-0.4%) closed lower.

This more subdued performance comes after a period of notable outperformance to kick off the year. The Russell 2000 and S&P Mid Cap 400 are still 3.3% and 5.1% higher, respectively, in 2025. Areas of the market that aren't seen as benefitting directly from the AI hype exhibited some consolidation activity today with the exception of some names that reported earnings results.

Netflix (NFLX 953.99, +84.31, +9.7%) was one of the day’s standout performers, surging after delivering the largest quarter of global streaming paid net ads in its history. Blue-chip names, including Procter & Gamble (PG 164.74, +3.02, +1.9%) and Dow component Travelers (TRV 246.72, +7.56, +3.2%), were also among the standouts, reporting strong earnings that bolstered investor confidence.

The 10-yr yield settled three basis points higher at 4.60% and the 2-yr yield settled two basis points higher at 4.30%. Treasuries moved to session lows after the $13 billion 20-yr bond reopening, which met stellar demand.

• S&P Midcap 400: +5.1% YTD
• Dow Jones Industrial Average: +3.8% YTD
• Nasdaq Composite: +3.6% YTD
• S&P 500: +3.5% YTD
• Russell 2000: +3.3% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 0.1%; Prior 33.3%
• December Leading Indicators -0.1% (Briefing.com consensus 0.0%); Prior was revised to 0.4% from 0.3%

Thursday's economic data includes:

• 8:30 ET: Weekly Initial Claims (Briefing.com consensus 219,000; prior 217,000) and Continuing Claims (prior 1.859 mln)
• 10:30 ET: Weekly natural gas inventories (prior -258 bcf)
• 12:00 ET: Weekly crude oil inventories (prior -1.96 mln)

Overseas:

• Europe: DAX +1.0%, FTSE -0.0%, CAC +0.9%
• Asia: Nikkei +1.6%, Hang Seng 0.0%, Shanghai -0.9%

Commodities:

• Crude Oil -0.52 @ 75.47
• Nat Gas +0.16 @ 3.51
• Gold +11.20 @ 2770.60
• Silver -0.06 @ 31.43
• Copper -0.04 @ 4.30

After-Hours Spotlight:

• Alcoa (AA) beats by $0.09, beats on revs; Issues FY25 guidance, expects total Alumina segment production to range between 9.5 to 9.7 million metric tons... AA up 0.8%
• AST SpaceMobile (ASTS) to offer $400 mln aggregate principal amount of convertible senior notes due 2032... ASTS down 13.0%
• Discover Financial Services (DFS) beats by $1.50, total loans down 6% yr/yr; Expects 2025 loan growth to align more closely with pre-pandemic norms... DFS up 0.1%
• Electronic Arts (EA) lowers its net bookings forecast for Q3 and FY25... EA down 8.6%
• Knight-Swift (KNX) beats by $0.03, reports revs in-line; guides Q1 EPS in-line; guides Q2 (Jun) EPS in-line... KNX up 4.2%
• RLI Corp (RLI) misses by $0.11, misses on revs... RLI down 5.3%

Fair Value for Thursday, January 23:

• S&P 500: 6,122
• Nasdaq 100: 21,997
• DJIA: 44,369

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

• Earnings/Guidance (Full Earnings Calendar):
  • Abbott Labs (ABT) beats by $0.01, reports revs in-line; guides FY25 EPS in-line
  • Agilysys (AGYS) beats by $0.04, misses on revs; guides FY25 revs below consensus
  • Ally Financial (ALLY) beats by $0.21, beats on revs; to sell its credit card business to CardWorks
  • Amphenol (APH) beats by $0.05, beats on revs; guides Q1 EPS above consensus, revs above consensus
  • Capital One (COF) reports Q4 (Dec) results, revs in-line
  • Comerica (CMA) misses by $0.09
  • Commerce Bancshares (CBSH) beats by $0.08, beats on revs
  • F.N.B. Corp (FNB) misses by $0.03
  • Fulton Fincl (FULT) reports Q4 earnings; sees $0.95-1.02 bln non-FTE net interest income in 2025
  • Genmab (GMAB) announces net sales of DARZALEX for 2024
  • GE Vernova (GEV) reports Q4 (Dec) results, misses on revs; reaffirms FY25 revs guidance
  • Halliburton (HAL) beats by $0.04, reports revs in-line
  • Hancock Whitney (HWC) beats by $0.12;  issues 2025 guidance in slides; expects deposits to be up low single digits yr/yr
  • Interactive Brokers (IBKR) beats by $0.19, beats on revs
  • Johnson & Johnson (JNJ) beats by $0.05, reports revs in-line; guides FY25 EPS in-line
  • Netflix (NFLX) beats by $0.06, beats on revs; guides Q1 EPS below consensus, revs below consensus; raises FY25 revs guidance; Q4 was the biggest quarter of net adds in co history; Expects to double ads revenue yr/yr in 2025
  • OFG Bancorp (OFG) beats by $0.13
  • Pathward Financial (CASH) beats by $0.06, beats on revs
  • Pinnacle Finl (PNFP) beats by $0.12, beats on revs; increases dividend
  • Premier Financial (PFC) reports Q4 (Dec) results, beats on revs (two ests)
  • Procter & Gamble (PG) beats by $0.02, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Progress Software (PRGS) beats by $0.12, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY25 EPS below consensus, revs above consensus
  • Sanara MedTech (SMTI) guides Q4 revenue above two analyst estimate, driven by increased sales of soft tissue repair products
  • Seagate Tech (STX) beats by $0.15, reports revs in-line; guides Q3 (Mar) EPS in-line, revs in-line
  • Stock Yards Bancorp (SYBT) Reports record fourth quarter earnings of $31.7 million or $1.07 per diluted share and record earnings for the year
  • Super Group (SGHC) sees Q4 revs above consensus
  • TE Connectivity (TEL) beats by $0.06, misses on revs; guides Q2 EPS below consensus, revs below consensus
  • Teledyne Tech (TDY) beats by $0.29, beats on revs; guides Q1 EPS below consensus; guides FY25 EPS below consensus
  • Textron (TXT) beats by $0.06, misses on revs; guides FY25 EPS below consensus, revs above consensus
  • Travelers (TRV) beats by $2.50, beats on revs
  • United Airlines (UAL) beats by $0.23, beats on revs; sees robust demand in 1Q25; projects Q1 EPS above consensus; FY25 earnings in-line
  • United Comm Banks (UCB) beats by $0.05, misses on revs
  • Viasat (VSAT) announced a restructuring of its Senior Executive Team; Reaffirms fiscal year 2025 financial guidance
  • Wintrust Fin (WTFC) beats by $0.15, net interest income increased 4.4%
  • Woodside Energy Group (WDS) reports Q4 operations update
  • Zions Bancorp (ZION) beats by $0.08, beats on revs; issues FY25 guidance in slides; expects net interest income to increase moderately yr/yr
• General News
  • Republican leadership agrees on plan to pass one large reconciliation bill with all of President Trump's priorities, according to The Hill
  • President Trump is using tariff threats to pressure Canada & Mexico to start renegotiating USMCA trade agreement, according to the Wall Street Journal
  • President Trump at press conference said he will likely impose additional Russian sanctions if Russia doesn't negotiate ceasefire with Ukraine
  • MrBeast interested in purchase of TikTok, according to Bloomberg
  • President Trump at press conference said he is open to Tesla (TSLA) CEO Elon Musk or Oracle (ORCL) Chairman Larry Ellison purchasing TikTok US
  • Activists against diversity, equity and inclusion efforts are targeting large banks, according to the Wall Street Journal
  • South Carolina aiming to restart nuclear plant to meet demand from artificial intelligence, according to the Wall Street Journal
  • Frank McCourt is interested in purchasing 50% of TikTok US, according to CNBC
  • President Trump says if Russia does not end Ukraine war soon, he will have "no other choice but to put high levels of taxes, tariffs, and sanctions on anything being sold by Russia to the United States"; says it's time Russia end the war
  • Ukrainian President Volodymyr Zelenskiy says US troops will need to be a peacekeeping force if war ends, according to
  • White House releases order for price relief in housing and healthcare sectors
  • Accenture (ACN): Workera announces strategic investment from Accenture, enabling Accenture to deliver Workera's solutions to clients globally, and a technology integration establishing Workera as the official skills intelligence layer within Accenture's LearnVantage platform
  • Accenture (ACN) invests in QuSecure to protect against future quantum Threats with crypto agility
  • Adobe (ADBE) introduces major new updates in Premiere Pro (beta), After Effects (beta), & Frame.io ahead of 2025 Sundance Film Festival
  • Air Products (APD) increases quarterly dividend to $1.79/share from $1.77/share
  • Alphabet (GOOG) announces a more powerful Android assistant with Gemini
  • Alphabet (GOOG): Google Fiber launches new lifestyle-based internet products to fit customers’ internet needs
  • Amazon (AMZN) to eliminate 1700 jobs amid Quebec operations exit, according to Reuters
  • Aptiv (APTV) announces intention to separate its electrical distribution systems business; reaffirms FY24 outlook
  • ArriVent BioPharma (AVBP) enters exclusive license agreement with Lepu Biopharma for MRG007
  • ASML (ASML) expects President Trump to continue ASML (ASML) chip export controls, according to Bloomberg
  • Azul (AZUL) Announces Expiration and Final Results of Previously Announced Exchange Offer in respect of Existing 2028 First Out Notes for New Notes and Solicitation of Consents to Proposed Amendments to the Existing Indenture
  • Berkshire Hathaway (BRK.B): Warren Buffett's Pilot Co to shutter international oil trading business, according to Reuters
  • Blackstone (BX) & Permira considering Mobile.de IPO, according to Reuters
  • Brandywine Realty (BDN) updates leasing momentum
  • Coherent (COHR) announces the launch of new pin-hole array biochips for medical diagnostics, with a focus on gene sequencing applications
  • Coherus (CHRS) Presents Final Phase 2 Clinical Casdozokitug Combination Data in Patients with Metastatic Hepatocellular Carcinoma at ASCO-GI 2025
  • Coinbase (COIN) appeals to U.S. courts for clarity on crypto trading and securities laws, according to Coindesk
  • CSG Systems (CSGS) Board Chair to step down at end of term
  • Dr. Reddy's (RDY) provides additional updates on Revlimid related disputes
  • Eisai (ESAIY) wants FY25 approval for Alzheimer's drug home version, according to Nikkei
  • Fortune Brands Innovations (FBIN) simplifies its executive leadership structure and is consolidating its U.S. regional offices
  • Forward Air (FWRD) amended Executive Severance and Change in Control Plan effective January 14, 2026
  • Gerdau S.A. (GGB) entered agreements to acquire Rio do Sangue S.A. and Paranatinga Energia S.A.
  • Granite Constr (GVA) awarded a contract worth approximately $71 mln by the United States Army Corps of Engineers to expand and update the rail yard at Fort Bliss in El Paso, TX
  • Greenwich LifeSciences (GLSI) provides update on commercial manufacturing
  • Grocery Outlet (GO) appoints Jason Potter as the Company’s President and Chief Executive Officer, effective February 3, 2025. Mr. Potter will also join the Company’s Board of Directors
  • Grupo Financiero Galicia (GGAL) commences rights offering
  • Home Bancshares (HOMB) increases share repurchase program to 20 mln shares
  • Host Hotels (HST) considers $1 billion sale of noncore properties, including iconic West Coast hotels, according to Bloomberg
  • IAC Inc. (IAC) enters into further amendment to its services agreement with Google (GOOG), effective April 1
  • Inhibrx Biosciences (INBX) announces preliminary data from the phase 1 Trial of ozekibart (INBRX-109) for the treatment of colorectal cancer
  • Intl Game Tech. PLC's (IGT) IGT Global Services Limited signed a seven-year contract with the Thuringian State Lottery in Germany
  • JPMorgan Chase (JPM) to lend $2.3 billion for Blue Owl's AI-focused data center development in Texas, according to Bloomberg
  • KBR (KBR) awarded a contract to support sustainable production of energy resources in Saudi Arabia by contributing to the delivery of Saudi Aramco's Master Expansion Program
  • LanzaTech (LNZA) to form JV and launch spin-out of LanzaX Business; names interim CFO
  • Masimo (MASI) appoints Katie Szyman as CEO; interim CEO Michelle Brennan named Chairman; both effective as of February 12
  • Matthews (MATW): Change Must Begin at the Top: Barington capital sends letter to Matthews international shareholders highlighting its director nominees' substantial CEO experience, relevant sector expertise and deep commitment to shareholder value creation
  • Microsoft (MSFT): Elon Musk says FTC's concern over Microsoft's OpenAI investment confirms Mr. Musk's claims that the pact between the two is anticompetitive, according to Bloomberg
  • Microsoft (MSFT): OpenAI aiming to release "operator" during this week, according to The Information
  • Microsoft (MSFT): Army is requesting new Integrated Visual Augmentation System (IVAS) information from interested in companies, according to Breaking Defense
  • Netflix (NFLX) to raise lowest-priced ad-supported streaming option by $1 per month to $7.99 a month, according to the Wall Street Journal
  • Newmark Group (NMRK) announces the firm has arranged a $2.3 bln loan to capitalize a 206 megawatt, Build-to-Suit data center development in Abilene, Texas on behalf of Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure
  • NRG Energy (NRG) increases quarterly dividend to $0.44/share from $0.4075/share
  • Open Lending (LPRO) announces that John J. Flynn, the company's co-founder, retired from the Board of Directors on January 16, 2025; On January 17, 2025, Mr. Flynn agreed to serve as a consultant through the end of 2025
  • Oracle (ORCL): President Trump at press conference alongside CEOs of OpenAI, Softbank (SFTBY), and Oracle confirm partnership to invest up to $500 billion in infrastructure connected to artificial intelligence
  • Performance Shipping (PSHG) announces that through a separate wholly-owned subsidiary, it has extended the time charter contract with ST Shipping & Transport Pte Ltd., a wholly-owned subsidiary of Glencore, for the 2011-built, 105,525 dwt Aframax tanker vessel, M/T P. Monterey
  • PG&E (PCG) detailed DOE loan aggreements
  • Prosperity Bancshares (PB) announces share repurchase program of ~ 4.8 mln shares of common stock
  • Q2 Holdings (QTWO) announces a strategic partnership with Alloy to deliver a joint ongoing fraud monitoring solution for Q2 Digital Banking customers
  • RCI Hospitality (RICK) closes $11 mln acquisition of Flight Club, the premier gentlemen's club in the Detroit market
  • Reddit (RDDT) and Snap (SNAP) are offering advertisers incentives because of ongoing TikTok saga, according to The Information
  • Rezolve AI Limited (RZLV) provides investor updates in presentation
  • Roche Hldg (RHHBY) receives 510(k) clearance from FDA for cobas liat molecular tests
  • Rocket Lab USA (RKLB) schedules the next Electron launch for Kinéis
  • Royal Caribbean (RCL) signs an agreement with Chantiers de l'Atlantique to order a sixth Edge Series ship for delivery to Celebrity Cruises in 2028
  • Sanara MedTech (SMTI) executes an exclusive license and distribution agreement with Biomimetic Innovations, a privately-held medical device company headquartered in Shannon, Ireland
  • Sanofi (SNY) receives EU approval for Sarclisa
  • ServiceNow (NOW) Enhances global partner program, unlocking new revenue and market opportunities for AI solutions
  • Smartsheet (SMAR): Blackstone and Vista Equity Partners Complete Acquisition of Smartsheet in a transaction valued at approximately $8.4 billion
  • Sphere Entertainment Co (SPHR): MSG Networks releases statement about dispute with Altice USA (ATUS)
  • Spirit Airlines (SAVEQ) decided to extend the Subscription Tender Deadline to February 13, 2025, and to extend certain related deadlines accordingly
  • Stellantis (STLA) Illinois factory to reopen with plans to rehire approx. 1,500 employees, according to NY Times
  • Teva Pharma (TEVA): FDA adds boxed warning about a rare but serious allergic reaction called anaphylaxis with the multiple sclerosis medicine glatiramer acetate (copaxone, glatopa)
  • Titan Intl (TWI): employees represented by the United Steelworkers vote to ratify new four-year contracts
  • TotalEnergies (TTE) aiming to delay $20 bln liquefied natural gas project in Mozambique, according to Financial Times
  • U.S. Antimony (UAMY) announces exclusive option agreement to acquire third group of Alaska antimony mining claims
  • USCB Financial Holdings (USCB) increases quarterly cash dividend 100% to $0.10/share from $0.05/share
  • Valneva SE (VALN) announces positive results for its Phase 2 clinical trial evaluating the safety and immunogenicity of two different dose levels of its single-shot chikungunya vaccine, IXCHIQ, in 304 children
  • Walt Disney (DIS) announces that Texans at Chiefs delivered 33.8 million viewers, ESPN’s most-watched NFL game ever
  • Workiva (WK) is more than 10% lower on the day on anticipated cutback in EU on ESG reporting
  • Yum China (YUMC) Announces Disclosure under Hong Kong Stock Exchange Rules in Relation to a Possible Quarterly Dividend

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

• Upgrades:
  • 3M (MMM) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $170
  • Cerence (CRNC) upgraded to Buy from Hold at Needham; tgt $16
  • Charles Schwab (SCHW) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $93
  • Crinetics Pharmaceuticals (CRNX) upgraded to Buy from Hold at Jefferies; tgt $55
  • Darden Restaurants (DRI) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $215
  • Mercantile Bank (MBWM) upgraded to Outperform from Market Perform at Hovde Group; tgt $54
  • Millicom International Cellular (TIGO) upgraded to Buy from Hold at HSBC Securities; tgt $34
  • Netflix (NFLX) upgraded to Buy from Hold at Canaccord Genuity; tgt raised to $1150
  • Netflix (NFLX) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $900
  • Netflix (NFLX) upgraded to Buy from Neutral at Rosenblatt; tgt $1494
  • Nordson (NDSN) upgraded to Buy from Hold at Loop Capital; tgt raised to $280
  • Olympic Steel (ZEUS) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $42
  • Seagate Tech (STX) upgraded to Buy from Hold at The Benchmark Company; tgt $120
  • Seagate Tech (STX) upgraded to Buy from Hold at Summit Insights
• Downgrades:
  • CAE (CAE) downgraded to Sector Perform from Outperform at National Bank Financial
  • Celsius (CELH) downgraded to Hold from Buy at TD Cowen; tgt lowered to $29
  • Charles River (CRL) downgraded to Mkt Perform from Outperform at William Blair
  • Elevance Health (ELV) downgraded to Equal-Weight from Overweight at Stephens; tgt lowered to $440
  • Fluence (FLNC) downgraded to Hold from Buy at Jefferies; tgt lowered to $15
  • Ford Motor (F) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $11
  • Hepsiburada (HEPS) downgraded to Hold from Buy at HSBC Securities; tgt $3.50
  • New Oriental Education & Technology (EDU) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $50
  • New Oriental Education & Technology (EDU) downgraded to Underperform from Outperform at Macquarie; tgt $44
  • New Oriental Education & Technology (EDU) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $52
  • Reddit (RDDT) downgraded to Neutral from Buy at ROTH MKM; tgt raised to $195
  • Rogers Comms (RCI) downgraded to Equal Weight from Overweight at Barclays
  • STMicroelectronics (STM) downgraded to Underweight from Equal Weight at Barclays
  • Yum! Brands (YUM) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $135
• Others:
  • Absci Corporation (ABSI) initiated with a Buy at Needham; tgt $9
  • ACV Auctions (ACVA) initiated with an Equal-Weight at Stephens; tgt $20.50
  • APi Group (APG) initiated with a Buy at Truist; tgt $45
  • BBB Foods (TBBB) initiated with a Market Perform at Itau BBA; tgt $32
  • Cytokinetics (CYTK) initiated with a Buy at Stifel; tgt $80
  • Daktronics (DAKT) initiated with a Buy at Craig Hallum; tgt $26
  • Edgewise Therapeutics (EWTX) initiated with a Hold at Stifel; tgt $30
  • OPENLANE (KAR) initiated with an Equal-Weight at Stephens; tgt $20
  • Orthofix (OFIX) initiated with a Buy at Canaccord Genuity; tgt $24
  • Sun Country Airlines (SNCY) initiated with a Overweight at JP Morgan; tgt $23
  • Viking Holdings Ltd (VIK) initiated with a Neutral at Goldman; tgt $49
  • Walt Disney (DIS) resumed with a Buy at Citigroup; tgt $12

• Econ Data (Thursday):
  • 8:30 ET: Weekly Initial Claims (Briefing.com consensus 219,000; prior 217,000) and Continuing Claims (prior 1.859 mln)
  • 10:30 ET: Weekly natural gas inventories (prior -258 bcf)
  • 12:00 ET: Weekly crude oil inventories (prior -1.96 mln)
• Earnings:
  • Monday (Jan 20)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (Jan 21)
    • Pre-Market: MMM SCHW CBU DHI FBK FITB KEY EDU ONB PEBO PLD UMC
    • After-Hours: AGYS COF FULT HWC IBKR NFLX CASH PNFP PRGS STX SFNC UAL WTFC ZION
  • Wednesday (Jan 22)
    • Pre-Market: ABT ALLY APH BKU CMA CBSH FNB GEV HAL JNJ OFG PG TEL TDY TXT TRV UCB
      
    • After-Hours: AA CACI CADE CATY CNS DFS HXL KMI KNX NBHC PLXS RLI SLG STLD WSBC
  • Thursday (Jan 23)
    • Pre-Market: ALK AAL AUB BANC ELV FBP FCX GATX GE MKC NTRS PPBI TCBI UNP VLY WNS
    • After-Hours: ASB COLB CSX CUBI EWBC FFBC GBCI ISRG SLM SSB TXN
  • Friday (Jan 24)
    • Pre-Market: AXP ERIC HCA LKFN NEE NWBI VZ
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike