Macro :
- U.K. Queen Will Not Travel to COP26 at Glasgow Monday: The Sun
Keep an eye on :
- ENT LN : DraftKings Jumps, Entain Falls as $22.4 Billion Merger Unravels
After Hours Summary: ENPH +12.2%, JNPR +5%, FFIV +4%, TWTR +3.1%, MSFT +1.6% higher on earnings; HOOD -7.1%, TXN -3.5%, V -3.4% lower on earnings; CRTX -72.7% and ANGN -56.8% fall on clinical dataAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: ENPH +12.2%, WIRE +11.6%, JNPR +5%, TENB +4.2%, TER +4.2%, FFIV +4%, FBHS +3.7%, TWTR +3.1%, MTDR +1.8%, MSFT +1.6%, MANH +1.2%, APAM +0.6%, HPP +0.1%, AJRD +0.1%
Companies trading higher in after hours in reaction to news: NOVA +4.2% (NOVA partners with CHPT to offer Sunnova customers EV charging solutions), EVGO +3.5% (announces the opening of a new EV charging station), PSNL +2.4% (announces issuance of patents related to NeXT Liquid Biopsy), AEP +1.5% (to sell Kentucky operations to Liberty for $2.846 bln enterprise value), FHN +1.2% (authorizes $500 mln increase to share repurchase program), HARP +0.8% (CEO resigns, names new CEO), PFE +0.8% (FDA committee votes 17-0 to recommend PFE vaccine for kids 5-11), GTY +0.6% (increases dividend), INTC +0.5% (CEO discloses purchase of 10K shares), CHPT +0.3% (NOVA partners with CHPT to offer Sunnova customers EV charging solutions), AMZN +0.1% (AWS announces general availability of Amazon EC2 DL1 instances), TEVA +0.1% (announces collaboration on licensing and development of MODAG's lead compound anle138b)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: HOOD -7.1%, QS -5.2%, RRC -4.6%, NCR -4.2%, TXN -3.5%, NBR -3.5%, UMBF -3.4%, V -3.4% (also increases dividend), AGYS -3.3%, VBTX -2.9%, HA -2.8%, CSGP -2.7%, COF -1.5%, BYD -1.1% (also authorizes $300 mln share repurchase program), NAVI -1%, WSBC -0.8%, GOOG -0.7%, AMD -0.6%, MASI -0.4%, ACCO -0.2% (also increases dividend), EGP -0.1%, FCF -0.1%, HIW -0.1%, USNA -0.1%
Companies trading lower in after hours in reaction to news: CRTX -72.7% (reports data from Phase 2/3 GAIN trial; co-primary endpoints were not met in overall population), ANGN -56.8% (reports topline results from Phase 3 trial of ANG-3777), DBVT -25.7% (provides regulatory updates from the FDA and EMA for Viaskin Peanut), VALN -8.2% (stock offering), FDMT -5.3% (stock offering), AMBA -0.3% (to acquire Oculii), CQP -0.1% (increases dividend), VEI -0.1% (concludes drilling phase of longest onshore horizontal well in Louisiana), BKH -0.1% (increases dividend), VAL -0.1% (awarded two-year floater contract with Esso Exploration Angola)
Closing Stock Market SummaryThe S&P 500 (+0.2%) and Dow Jones Industrial Average (+0.04%) set intraday and closing record highs on Tuesday, but the major indices closed near session lows as fatigue may have crept in. The Nasdaq Composite finished with a comparable 0.1% gain, while the Russell 2000 fell 0.4%.
Early in the session, the S&P 500 was up 0.7% -- coming within two points of the 4600 level -- amid positive price momentum, mega-cap strength, and resilient earnings commentary. The Vanguard Mega Cap Growth ETF (MGK 249.89, +0.73) increased just 0.3% after being up 1.1% intraday.
Despite the lackluster finish, nine of the 11 S&P 500 sectors still closed higher with gains ranging from 0.2% (financials) to 0.7% (energy). The communication services (-0.5%) and industrials (-0.6%) sectors were the only sectors that closed lower.
The latter two sectors were pressured by weakness in Facebook (FB 315.81, -12.88, -3.9%) and Lockheed Martin (LMT 331.91, -44.42, -11.8%), both of which issued downside revenue guidance. The earnings landscape was generally more constructive, though.
UPS (UPS 218.07, +14.17, +7.0%), for instance, rose 7% after providing upbeat results and raising its 2021 operating margin guidance. Notably, the company said the economy remained strong in the third quarter despite supply chain issues and that it'll be raising prices next year -- like many other companies facing higher input costs and strong demand.
Dow component 3M (MMM 182.16, -0.24, -0.1%) closed little changed following its earnings report, while General Electric (GE 107.44, +2.14, +2.0%) and Eli Lilly (LLY 248.44, +3.39, +1.4%) pleased shareholders with their results.
Microsoft (MSFT 310.11, +1.98, +0.6%) and Alphabet (GOOG 2793.44, +17.98, +0.7%) rose modestly in front of their earnings reports after the close.
Elsewhere, U.S. Treasuries settled mixed in a curve-flattening trade despite better-than-expected consumer sentiment data for October and new home sales data for September.
The 2-yr yield increased two basis points to 0.45%, and the 10-yr yield decreased two points to 1.62%. The U.S. Dollar Index increased 0.1% to 93.93. WTI crude futures rose 1.1%, or $0.92, to $84.65/bbl.
Reviewing Tuesday's economic data:
- The Conference Board's Consumer Confidence Index increased to 113.8 in October (consensus 108.0) from an upwardly revised 109.8 (from 109.3) in September.
- The key takeaway from the report is that it marked the first upturn in consumer confidence since June, reflecting a feeling of relief about the waning impact of the spreading Delta variant and an improvement in income and labor market prospects.
- New home sales increased 14.0% month-over-month in September to a seasonally adjusted annual rate of 800,000 (consensus 755,000) from a downwardly revised 702,000 (from 740,000) in August. Taking the downward revision into account, the two-month stack of new home sales growth was roughly in-line with estimates.
- The key takeaway from the report is that the growth in new home sales is concentrated in higher-priced homes, as inflation pressures, exacerbated by supply constraints, are curtailing the building of lower-priced homes.
- The S&P Case-Shiller Home Price Index for August was up 19.7% yr/yr (consensus 20.0%).
- The FHFA Housing Price Index increased 1.0% m/m in August following a 1.4% increase in July.
Looking ahead, investors will receive Durable Goods Orders for September, the Advance Intl. Trade in Goods, Retail Inventories, and Wholesale Inventories reports for September, and the weekly MBA Mortgage Applications Index on Wednesday.
- S&P 500 +21.8% YTD
- Nasdaq Composite +18.2% YTD
- Dow Jones Industrial Average +16.8% YTD
- Russell 2000 +16.3% YTD



