After-Hours Market Wrap: Mixed Earnings and Tech Activity Dominate Late Trading

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•  21 Oct 2024
 

After-hours trading remained particularly active, with the Nasdaq 100 After Hours Indicator climbing 16.76 points to 20,378.23 on substantial volume of over 95 million shares.

NVIDIA $NVDA led the after-hours activity, trading at $143.95 with over 6.4 million shares changing hands, highlighting continued investor interest in AI-related stocks. Another notable mover was Medpace, which tumbled 11% following disappointing revenue results, reflecting the market's harsh reaction to earnings misses during this critical reporting season.

In the earnings spotlight, Nucor $NUE reported better-than-expected Q3 results with EPS of $1.49, beating estimates, though shares declined 1.32% as the steelmaker warned of lower Q4 earnings. AGNC Investment $AGNC disappointed investors with a Q3 earnings miss, reporting $0.43 per share against expectations of $0.47, sending shares down 2.08% in after-hours trading.

The real estate sector saw mixed results as Alexandria Real Estate Equities $ARE posted in-line FFO of $2.37 per share and beat revenue expectations, though shares still declined 1.82%. In the banking sector, Cathay General Bancorp $CATY shares dropped 3.15% after missing earnings estimates, while HDFC Bank $HDB bucked the trend with a 4.32% gain following its quarterly results.

A major healthcare sector development saw Cigna $CI shares tumble 4.71% following reports of renewed merger talks with Humana, as investors expressed concerns about regulatory hurdles and pricing. Meanwhile, Kenvue $KVUE emerged as a bright spot, surging 5.52% after activist investor Starboard Value disclosed a significant stake in the consumer health company.

In technology news, IBM $IBM saw modest pressure, down 0.19%, ahead of its crucial earnings report due Tuesday, with investors keen to assess the company's AI initiatives and software strength. SAP $SAP shares showed resilience, dipping just 0.42% despite mixed Q3 results, as the company raised its cloud software outlook for 2024.

The telecommunications sector is preparing for a significant earnings week, with Verizon $VZ shares declining 0.66% ahead of Tuesday's results, as investors focus on subscriber numbers and capital expenditure plans. Disney $DIS made headlines with a 0.68% decline after announcing James Gorman as its next chairman and setting early 2026 for CEO succession.

Heavy after-hours trading volume was also observed in other major tech names including Apple ($AAPL), Cisco ($CSCO), and Alphabet ($GOOGL), along with energy giant ExxonMobil ($XOM), suggesting investors are actively repositioning their portfolios ahead of more earnings releases this week. The mixed results and guidance updates from reporting companies indicate a cautiously optimistic but selective market environment as we progress through the earnings season.