S&P futures dipped 0.1% in Friday morning trading, following a strong Thursday where the S&P 500 and Nasdaq hit new all-time highs, led by big tech. Treasuries remained firmer after Thursday’s rebound. The dollar index was stable, gold fell 0.3%, Bitcoin futures rose 0.5%, WTI crude dropped 1.6%, and copper declined over 2%.
Markets are closing out a busy week, buoyed by post-election momentum with support from unwinding hedges, lower VIX, seasonality, resumed buybacks, and expectations of deregulation and tax cuts. Rate stabilization has also provided recent support, though concerns about potential tariff impacts on growth and inflation remain.
Economic data today includes the preliminary University of Michigan consumer sentiment and inflation expectations for November, with Fed Governor Bowman speaking at 11:00. Next week’s highlights include CPI on Wednesday, PPI on Thursday, and retail sales on Friday, with Fedspeak throughout and Powell speaking on Thursday afternoon.
Company News:
- ANET fell on underwhelming 2025 revenue guidance.
- ABNB saw demand improvements but focus remained on growth investments.
- FTNT dropped on weak Q4 billings guidance.
- MNST missed estimates with a slowing energy drink growth rate.
- SQ reported light gross profit growth.
- DKNG lowered guidance.
- AXON surged after an earnings beat and raised outlook.
- PINS guidance was below buyside expectations.
- EXPE beat on bookings, room nights, and EBITDA.
- AKAM guidance fell short on delivery.
- TOST rallied on a beat, raised guidance, and margin progress.
- CNH declined after a miss and guidance cut.
- RIVN missed but maintained FY guidance.
- DOCS beat and raised guidance.
- SG was in line but faced high expectations with stock up 273% YTD.
- FIVN jumped on an earnings beat and positive AI commentary.
- CPRI fell after missing estimates, dragged down by Versace and Michael Kors.
U.S. equities were mostly higher on Thursday, with the S&P 500 up 0.74% and the Nasdaq rising 1.51%, both setting fresh record closes (the 49th of the year for the S&P). The Dow was flat, while the Russell 2000 declined by 0.43%. This session followed a strong rally on Wednesday, where the S&P 500 had its best post-election performance on record, climbing over 2.5%. Thursday’s market saw strength in big tech, semiconductors, tech hardware, and consumer-focused sectors like apparel and home improvement. Laggards included energy, banks, credit cards, asset managers, and industrials such as transports and machinery. Treasuries firmed across the curve after Wednesday’s sharp yield rise. The dollar index fell 0.7% following a strong previous session, gold rose 1.1%, Bitcoin futures gained 0.2%, and WTI crude settled up 0.9%.
The FOMC announcement was the key event of the day, with the Fed cutting rates by 25 basis points to 4.50-4.75% as expected. The statement emphasized continued economic growth and data dependency for future decisions. Initial jobless claims matched forecasts, though continuing claims hit their highest level since November 2021. Overseas, China reported its fastest export growth in over two years, while the BoE and Riksbank both cut rates and Norges Bank held steady.
GICS Sector Summary:
Information Technology
- Applovin (APP): Shares surged 46.3% after a big Q3 EBITDA beat and strong revenue. The company’s AXON algorithm enhancements and e-commerce pilot outperformed expectations, leading to raised Q4 guidance and a $2B buyback increase.
- Wolfspeed (WOLF): Dropped 39.2% after a mixed fiscal Q1 report and weak December guidance, citing challenges in industrial and energy markets and headwinds from Fab transition and restructuring plans.
- Klaviyo (KVYO): Fell 15.9% despite a Q3 beat on EPS, revenue, and operating income; raised FY24 guidance but trimmed top-end operating income expectations due to margin outlook concerns.
Consumer Discretionary
- Under Armour (UAA): Rose 27.2% on a Q2 EPS and revenue beat, with raised FY25 guidance and better-than-expected gross margins.
- Zillow Group (ZG): Gained 25% following a Q3 revenue beat and strong EBITDA, driven by new product execution and market share growth in Residential and Rentals.
- Dutch Bros (BROS): Increased 28.1% after Q3 comp and EBITDA growth, with positive traffic growth and mobile order/pay rollout. FY guidance was raised.
- Hanesbrands (HBI): Up 18% on better Q3 results and improved Q4 guidance, highlighting strategic actions and debt reduction.
- YETI Holdings (YETI): Gained 7.6% after a Q3 beat in EPS and revenue, confirming FY24 EPS guidance at the high end, supported by strong drinkware and cooler sales.
- Krispy Kreme (DNUT): Declined 4.6% after missing Q3 earnings and revenue estimates; offset by 15% growth in Fresh Daily and digital sales but pressured by weaker consumer sentiment in the U.S. and U.K.
Health Care
- Gilead Sciences (GILD): Up 6.8% after beating Q3 estimates and raising FY24 guidance, with strong HIV product sales and better Veklury performance.
- McKesson (MCK): Increased 10.6% on strong Q2 results driven by U.S. Pharma and raised FY25 EPS guidance. The company expanded its buyback program by $400M.
- Dentsply Sirona (XRAY): Fell 28% despite better-than-expected Q3 revenue and in-line EBITDA, as it lowered FY organic growth and revenue guidance due to U.S. market pressures.
Industrials
- Vistra (VST): Rose 7.7% after in-line Q3 results and an increase in the share buyback plan, with FY24 guidance raised.
- Halliburton (HAL): Down 3.1% following a miss on Q3 EPS, FCF, and revenue, with analysts noting lower D&E margins and weaker international results.
Communication Services
- Warner Bros. Discovery (WBD): Gained 11.8% despite missing Q3 EBITDA, revenue, and FCF estimates. The company saw a boost in DTC subscribers, attributed to international growth and strong quarterly results for Max.
Consumer Staples
- e.l.f. Beauty (ELF): Rose 11.4% on a Q2 EPS and revenue beat, with raised FY guidance and a strong presence in drugstore channels.
Financials
- Clear Secure (YOU): Dropped 25.8% after a Q3 beat on EPS and EBITDA but missed revenue targets. The company noted a decline in Clear Plus net retention and high expectations after strong YTD performance.
Materials
- Corteva (CTVA): Fell 5% after missing Q3 EPS and revenue expectations, with EBITDA also below forecasts. The company cut FY24 guidance, impacted by dry weather in Brazil and competitive pressures affecting pricing.
Eco Data Releases | Friday November 8th, 2024
S&P 500 Constituent Earnings Announcements | Friday November 8th, 2024
Data sourced from FactSet Research Systems Inc.
