S&P futures are up 0.1% in Thursday morning trading after U.S. equities closed mixed on Wednesday. Laggard sectors included semiconductors, metals, builders, regional banks, healthcare, machinery, and trucking, while software, airlines, EVs, energy, and some retail stocks outperformed. Treasuries were mixed, the Dollar index rose 0.3%, gold fell 1.1%, Bitcoin futures gained 2%, and WTI crude rose 0.7%.
The market faces a push-pull dynamic in the post-election period, with bullish factors like seasonality, buybacks, and expected deregulation balanced against concerns that “Trump trade” momentum may be overdone, with potential growth drags from tariffs, immigration policies, and rising deficits.
The U.S. economic calendar includes PPI data and jobless claims, with expectations for a 0.2% m/m rise in headline PPI and core PPI up 0.3%, while claims are projected to increase to 224K. Fed Governor Kugler discussed disinflation and labor market trends, suggesting a pause if progress stalls. Fed Chair Powell will speak on the economic outlook at 3:00 p.m. ET.
Corporate news was relatively quiet. Cisco (CSCO) lagged post-earnings on public sector weakness despite AI order strength. Disney (DIS) beat expectations with Disney+ subscriber growth and FY25 EPS guidance. ASML (ASML) rose after reiterating its 2030 outlook. HP (HPQ) missed on Q4 EBITDA and issued softer Q1 guidance. CNH Industrial (CNH) gained on news of Greenlight Capital’s stake. Tapestry (TPR) and Capri (CPRI) called off their merger. Advance Auto Parts (AAP) missed earnings and announced 700 store closures. Sonos (SONO) beat estimates, highlighting software improvements. Beazer Homes (BZH) posted an EBITDA beat and expects further community growth in FY25
U.S. equities closed mixed on Wednesday, with the Dow up 0.11%, the S&P 500 gaining 0.02%, while the Nasdaq fell 0.26% and the Russell 2000 declined 0.94%. Markets ended off session highs after a quiet afternoon, with weakness in sectors like semiconductors, tech hardware, industrial metals, homebuilders, managed care, hospitals, regional banks, credit cards, containerboard, machinery, trucking, and Chinese tech. Big tech performance was mixed, with Amazon (AMZN-US) as a notable gainer, while outperforming sectors included airlines, software, EVs (particularly Rivian, RIVN-US), E&Ps, refiners, agricultural chemicals, casual dining, hotels, auto retail, off-price retail, telecom, and tobacco.
Treasuries were mixed with the yield curve steepening, following Tuesday’s substantial selloff. The Dollar index rose 0.5% with gains across major currencies. Gold closed down 0.8%, while Bitcoin futures posted their seventh consecutive day of gains, up 1.1%. WTI crude ended the session up 0.5%.
In macroeconomic data, October’s core CPI print came in line with expectations, easing fears of a hotter reading. This has shifted market-based odds toward a 25-basis point rate cut in December, with FedWatch indicating just an 18% chance of a pause, down from 41% the previous day. However, there is cautious interpretation of the Fed’s potential signaling, given that there is one more CPI print ahead of the December FOMC decision. Bulls remain focused on seasonality, buybacks, FOMO (fear of missing out), and positive macro momentum, while bears point to rate pressures from hotter growth, stickier inflation, Trump policy impacts, a stronger dollar, and stretched valuations. October’s CPI showed shelter costs accelerating (0.4% from 0.2%) and a used vehicle price increase due to hurricane impacts. Key upcoming data includes PPI on Thursday and retail sales on Friday. Several Fed officials expressed cautious views, and Fed Chair Powell’s comments are highly anticipated on Thursday.
Company News by GICS Sector
Information Technology
- Rocket Lab USA (RKLB-US): Shares surged 28.4% after reporting Q3 revenues 3% ahead of estimates and Q4 revenue guidance of $125–135 million, along with a new multi-launch contract for its Neutron rocket.
- Paymentus Holdings (PAY-US): Increased 27% on Q3 earnings and revenue beats, with stronger-than-expected customer activity and bookings. The company raised Q4 and FY24 guidance.
- ZoomInfo (ZI-US): Fell 19.5% despite a Q4 earnings beat; billings missed, and analysts expressed concern that the bottoming process in demand, particularly with SMBs, was taking longer than expected.
- Skyworks Solutions (SWKS-US): Down 4.5% despite Q4 EPS and revenue coming in slightly above estimates, as Q1 guidance disappointed due to ongoing inventory challenges in various segments like automotive and networking.
- Tower Semiconductor (TSEM-US): Up 12.3% with a Q3 EPS beat and Q4 revenue guidance above expectations. The company also announced a $350 million investment to expand capacity in Silicon Photonics and Silicon Germanium
- Stratasys (SSYS-US): Shares rose 20.5% on Q3 beats across EPS, EBITDA, and revenue, and the company raised FY24 guidance, benefiting from stronger recurring revenue in the Consumables segment.
- Natera (NTRA-US): Increased 19.1% as Q3 results exceeded expectations, led by its Signatera product, which has overtaken Panorama as the main revenue driver. The company raised FY24 guidance for revenue, margins, and cash flow.
- Spotify Technology (SPOT-US): Shares rose 11.4% with in-line Q3 revenue but better-than-expected operating income and premium subscriber metrics. Q4 guidance for operating income also came in ahead of forecasts.
- CyberArk Software (CYBR-US): Delivered strong results across key metrics and guided above expectations, indicating solid demand and business expansion.
Health Care
- Progyny (PGNY-US): Dropped 19.1% after missing Q3 expectations and lowering FY24 guidance. Concerns included weakening consumption trends, lack of ART cycle visibility, and more positive views on the 2025 season.
Communication Services
- Spotify Technology (SPOT-US): Positive Q3 takeaways, with premium net adds and GM expansion as standouts. Operating income and subscriber growth also beat expectations.
Industrials
- Spirit Airlines (SAVE-US): Declined 59.3% on news that the airline may be considering bankruptcy options after merger talks with Frontier Airlines fell through.
Consumer Discretionary
- Rivian (RIVN-US): Benefited from an expanded partnership with Volkswagen, focused initially on EV software and potentially expanding into battery technology. Shares gained 13.7% after announcing an upsized joint venture with Volkswagen, expanding its June commitment from $5 billion to $5.8 billion for EV software and potential battery module collaborations.
- Topgolf Callaway Brands (MODG-US): Declined 9.2%, even as Q3 EPS, EBITDA, and revenue were positive. The company cut FY24 guidance and cited demand headwinds for its Topgolf business.
Consumer Staples
- The Honest Company (HNST-US): Big Q3 beat on revenue and margins, boosting its FY24 guidance above consensus expectations. Shares were up 25.2% with a strong Q3 EBITDA beat driven by revenue and margin expansion; FY24 guidance was raised, marking the fourth consecutive quarter of positive EBITDA.
Financials
- Rocket Companies (RKT-US): Down 9.1% after posting weaker Q4 guidance amid declining origination volumes, though management noted expanding market share.
Eco Data Releases | Thursday November 14th, 2024
S&P 500 Constituent Earnings Announcements | Thursday November 14th, 2024
Data sourced from FactSet Research Systems Inc.
