After Hours Summary: Yellen gets confirmed; JJSF -13.9% and BOOT -3.1% fall on earnings; STAA +5.8% gets added to S&P MidCap 400After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: IPAR +5% (guides Q4 revs above consensus), GGG +4.2%, FUL +3.4%, HXL +1.5%, ELS +1.2%, STLD +1.2%, LPG +0.7%, AGNC +0.5%, BRO +0.4%
Companies trading higher in after hours in reaction to news: OSTK +11.9% (announces partnership with Pelion Venture Partners to oversee Medici Ventures' blockchain assets), ICFI +10.2% (selected by EPA for Energy Star Services contract), BDGE +8.2% (to be added to S&P SmallCap 600), PBH +7.1% (to be added to S&P SmallCap 600), STAA +5.8% (to be added to S&P MidCap 400), APO +3.9% (new CEO), IAC +2.4% (Vimeo raises $300 mln in primary equity), NBTX +2.1% (announces new collaboration with SNY), BCRX +2.1% (Sarissa Capital Mgmt discloses 5.0% stake), ATNX +1.2% (CEO now recuperating from COVID-19 at home), MRSN +0.6% (Sarissa Capital Mgmt discloses 5.5% stake), BP +0.2% (reduces oil exploration staff to focus more on renewable energy, according to Reuters), PSN +0.1% (JV awarded DSB large framework contract), AAPL +0.1% (announces transition of Dan Riccio to a new role)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: JJSF -13.9%, KRMD -12.3% (guides FY20 revs below consensus; also announces CEO transition), BOOT -3.1%, AUY -1.6%, EPRT -0.3% (guides FY21 AFFO slightly below consensus), BXS -0.1%
Companies trading lower in after hours in reaction to news: QUMU -11% (stock offering), LPCN -9.1% (stock offering), SEEL -8.3% (stock offering), CVAC -3.8% (stock offering), ERF -3.6% (to acquire Bruin E&P HoldCo), ASO -2.2% (stock offering), SEER -1.7% (stock offering), CZR -0.5% (announces strategic investment in SuperDraft)
Closing Stock Market SummaryThe S&P 500 (+0.4%) and Nasdaq Composite (+0.7%) closed at record highs on Monday in a volatile session, as gains in the mega-caps and other defensive-oriented stocks outweighed losses in cyclical stocks. The Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.3%) closed in the red but off session lows.
The session started on a hot note, with shares of Apple (AAPL 142.92, +3.86, +2.8%) and Tesla (TSLA 880.80, +34.16, +4.0%) leading the mega-cap charge as analysts raised their price targets ahead of their earnings reports this week, and stocks with high short-interest positions like GameStop (GME 76.79, +11.78, +18.1%) continued to squeeze short sellers. GME shares were up 145% at one point today.
At their intraday morning highs, the S&P 500 was up 0.5%, the Nasdaq was up 1.4%, and the Russell 2000 was up 1.2% at an all-time high. The Dow was never positive. The major indices, however, quickly took a relatively precipitous fall into negative territory on no specific news catalyst, suggesting a profit-taking motive among investors.
True to recent usual form, investors bought the intraday dip, but generally preferred to stick with most of the mega-cap names and lower-beta stocks within the S&P 500 utilities (+2.0%), consumer staples (+0.9%), real estate (+0.8%), and health care (+0.7%) sectors. The information technology sector rose 0.9%.
The cyclical energy (-1.1%), financials (-0.8%), industrials (-0.7%), and materials (-0.5%) sectors finished lower amid news that President Biden's $1.9 trillion stimulus deal is facing bipartisan resistance and could be pushed back to mid-March. The latter was an observation from Senate Majority Leader Schumer.
Lingering recovery concerns contributed to increased demand for longer-dated Treasuries, which caused some curve-flattening activity that pressured the financials space. The 10-yr yield fell five basis points to 1.04%, versus a flat reading on the 2-yr yield (0.12%). The U.S. Dollar Index increased 0.2% to 90.37. WTI crude futures rose 0.8%, or $0.44, to $52.77/bbl.
In other developments, Moderna (MRNA 147.00, +15.98, +12.2%) said its COVID-19 vaccine does protect against the variants that originated in the UK and South Africa, President Biden signed an executive order aimed at restoring the competitiveness of domestic manufacturers, and California Governor Newsom confirmed that the stay-at-home order has been removed in all regions.
Investors did not receive any notable economic data on Monday. Looking ahead, the Consumer Confidence Index for January, the S&P Case-Shiller Home Price Index for November, and the FHFA Housing Price Index for January will be released on Tuesday.
- Russell 2000 +9.5% YTD
- Nasdaq Composite +5.8% YTD
- S&P 500 +2.6% YTD
- Dow Jones Industrial Average +1.2% YTD
Gapping up
In reaction to earnings/guidance:
- CLF +6.2%, BHVN +4.3%, OPRX +3%, CADE +2.6%, KMB +1.7%, PHG +1.1%
M&A news:
- TSIA +82.6% (TS Innovation Acquisitions and Latch to merge and become publicly listed company)
- IACA +29.3% (ION Acquisition Corp: Taboola to become NYSE listed at an implied $2.6 bln valuation via a merger with ION Acquisition Corp)
- WPF +9.1% (Foley Trasimene Acquisition Corp. and Alight Solutions (ALIT) confirm merger)
- LCY +2.6% (Landcadia Holdings III and HMAN Group Holdings entered into merger agreement that will result in Hillman becoming a publicly listed company named Hillman Solutions Corp with ticker "HLMN") .
Other news:
- EXPR +125.1% (extends momentum after surging by +52% during Friday's session)
- SPRQ +50% (Sunlight Financial to list on NYSE through merger with Apollo (APO) -Affiliated Spartan Acquisition Corp. II)]
- AUPH +42% (receives FDA approval for LUPKYNIS)
- GME +40.6% (continued squeeze)
- AMC +36.5% (raises $917 mln of fresh investment capital since mid-December of 2020; increased liquidity should allow the company to make it through this winter; also entered into an equity distribution agreement sell up to 50,000,000 shares of Class A common stock through an "at-the-market" offering program) GEVO +16.7% (extends momentum after surging by +13% during Friday's session)
- NCTY +15.4% (signed five legally binding MOUs w/ 5 Bitcoin mining machine owners to purchase Bitcoin mining machines by the issuance of Class A ordinary shares)
- DTIL +9.1% (received a Notice of Allowance from the U.S. Patent and Trademark Office for a patent application covering PBCAR19B, a next-generation, stealth cell, CD19 product candidate for patients with relapsed/refractory (R/R) Non-Hodgkin Lymphoma)
- LX +6.1% (achieves 2020 loan origination target)
- ABEO +3.8% (announces successful type B meeting with FDA for pivotal phase 3 VIITAL study of EB-101 in Recessive Dystrophic Epidermolysis Bullosa)
- CLPT +2.3% (files for $120 mln mixed securities shelf offering)
- CNNE +2.2% (announces $250 million investment in Foley Trasimene Acquisition Corp. (WPF) and Alight Solutions Merger)
- KRNY +1.6% (authorizes 5% stock repurchase plan)
- ARWR +1.1% (files IND for phase 2b study of ARO-ANG3 for treatment of mixed dyslipidemia)
- AZN +0.8% (reports Calquence met primary efficacy endpoint in head-to-head trial against ibrutinib; receives approval in Japan for treatment of relapsed or refractory chronic lymphocytic leukaemia)
Analyst comments:
- CNST +3.9% (upgraded to Outperform from Market Perform at BMO Capital Markets)
- REGN +3.9% (upgraded to Outperform from Market Perform at BMO Capital Markets)
- MOS +2% (upgraded to Buy from Neutral at Citigroup)
- AEO +1.6% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
- CAKE +1% (upgraded to Neutral from Underweight at JP Morgan)
- MED +1% (upgraded to Buy from Hold at Jefferies)
- CRM +0.8% (upgraded to Hold from Sell at Loop Capital)