After Hours Report

Updated: 09-Apr-25 17:12 ET

Guidance stars don't align for Constellation Brands

It was a huge day for stocks. The Nasdaq Composite soared nearly 12%, the S&P 500 spiked 9.3%, and the Dow Jones Industrial Average bounced nearly 3,000 points.

The monumental rally followed President Trump's announcement of a 90-day suspension on recently imposed tariffs, reducing them to 10% for countries that have not retaliated against the U.S. However, the rate on imports from China increased to 125% from 104%.

The massive upside moves were aided by short-covering activity after the sharp declines of late, along with a big surge in the mega cap space.

Many of the most influential stocks in the market logged double-digit percentage gains. NVIDIA (NVDA 114.33, +18.03, +18.7%), Apple (AAPL 198.85, +26.43, +15.3%), Tesla (TSLA 272.10, +50.24, +22.6%), Microsoft (MSFT 390.49, +35.93, +10.1%), and Amazon.com (AMZN 191.10, +20.44, +12.0%) were huge beneficiaries of the surge in buying.

All 11 S&P 500 sectors closed at least 3.9% higher. The technology sector led the upside charge, registering a 14.2% gain, followed by consumer discretionary (+11.4%) and communication services (+10.0%).

The huge move up today was helped in part by the understanding that the $39 billion 10-yr note auction was met with strong demand, particularly from foreign buyers. The 10-yr yield hit 4.50% and settled at 4.40%, which is still 14 basis points higher than yesterday.

Participants were also digesting the FOMC's Minutes from the March meeting which showed that members generally saw increased downside risks to employment and economic growth and upside risks to inflation while indicating that high uncertainty surrounded their economic outlooks. The minutes garnered a muted response.

Dow Jones Industrial Average: -4.6% YTD
S&P 500: -7.2% YTD
S&P Midcap 400: -10.3% YTD
Nasdaq Composite: -11.3% YTD
Russell 2000: -14.2% YTD

Reviewing today's economic data:

Weekly MBA Mortgage Applications Index 20.0%; Prior -1.6%
February Wholesale Inventories 0.3% (Briefing.com consensus 0.3%); Prior 0.8%

Thursday's economic lineup features:

8:30 ET: March CPI (Briefing.com consensus 0.1%; prior 0.2%), Core CPI (Briefing.com consensus 0.3%; prior 0.2%), weekly Initial Claims (Briefing.com consensus 225,000; prior 219,000), and Continuing Claims (prior 1.903 mln)
10:30 ET: Weekly natural gas inventories (prior +29 bcf)
14:00 ET: March Treasury Budget (prior -$307.0 bln)

Overseas:

Europe: DAX -3.0%, FTSE -2.9%, CAC -3.3%
Asia: Nikkei -3.9%, Hang Seng +0.7%, Shanghai +1.3%

Commodities:

Crude Oil +2.67 @ 62.38
Nat Gas +0.31 @ 3.79
Gold +89.10 @ 3078.30
Silver +0.78 @ 30.42
Copper +0.23 @ 4.35

After-Hours Spotlight:

Constellation Brands (STZ) beats by $0.35, beats on revs; guides FY26 EPS below consensus, provides outlook for FY27-FY28, Announces new 3-year, $4.0 bln share repurchase authorization; signs agreement with The Wine Group to divest mainstream wine brands; Also is undergoing a review of its organizational structuring... STZ down 2.9%
Costco (COST) reports March adjusted comparable sales of +9.1%... COST up 0.5%
Easterly Government Properties (DEA) reduces dividend to be more in line with other net lease REITs; approved a 1-for-2.5 Reverse Stock Split; reaffirms FY25 core FFO guidance... DEA unchanged
Newsmax (NMAX): report that court ruled that co defamed Dominion Voting Systems with false reporting, according to Reuters... NMAX down 1.4%
PriceSmart (PSMT) beats by $0.01, reports revs in-line; comps +6.7%... PSMT down 0.3%
U.S. Steel (X): President Trump says he does not want to see U.S. Steel owned by Japan, according to Reuters... X down 11.2%

Fair Value for Thursday, April 10:

S&P 500: 5,490
Nasdaq 100: 19,280
DJIA: 40,814

Today's News Summary:

For a full rundown of today's market and after hours developments, see Live In Play

Earnings/Guidance (Full E arnings Calendar):
- Aehr Test Systems (AEHR) beats by $0.03 (two estimates), beats on revs; Temporarily withdraws FY25 guidance due to tariff uncertainty
- APA Corp. (APA) provides first-quarter 2025 supplemental information; sees Q1 estimated average realized price of $72.40/barrel for crude oil
- Cal-Maine Foods (CALM) misses by $0.34, reports revs in-line; Announced definitive agreement to acquire Echo Lake Foods
- Endeavour Silver (EXK) reports Q1 production of 1,205,793 silver oz and 8,338 gold oz, for silver equivalent production of 1.9 mln oz
- First Majestic Silver (AG) produces 7.7 mln AgEq ounces in Q1 2025 including a record 3.7 mln silver ounces
- Karman Space & Defense (KRMN) Reports Full-Fiscal Year 2024 Financial Results
- Neogen (NEOG) beats by $0.12, misses on revs; guides FY25 revs below consensus
- Nurix Therapeutics (NRIX) Reports First Quarter 2025 Financial Results and Provides a Corporate Update
- Osisko Gold Royalties (OR) provides 1Q25 update, including guidance for preliminary revenue from royalties and streams
- Sandstorm Gold (SAND) sees Q1 revs above consensus
- Simply Good Foods (SMPL) beats by $0.06, beats on revs; reaffirms FY25 revs guidance
- Terreno Realty (TRNO) announces Q1 operating, investment and capital markets activity
- Triple Flag Precious Metals Corp. (TFPM) issues upside Q1 revenue guidance
- Walmart (WMT) expects Q1 sales growth to continue to be in line with its 3-4% outlook and annual sales and operating income growth guidance remains unchanged
General News
- President Trump authorizes 90-day reciprocal tariff pause for 75 countries outside of China; says "there will be a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately"
- President Trump says he will raise tariff rate on Chinese imports to 125% from 104%, effective immediately
- China will continue to respond with "resolute and forceful' countermeasures to tariffs. China hopes the US will meet them "half way", according to CNBC
- China raises retaliatory tariffs on US goods to 84% from 34%; effective tomorrow
- China's central bank wants state lenders to reduce dollar purchases, according to Reuters
- President Trump says pharmaceutical tariffs are coming soon, according to Bloomberg
- Carmakers holding cars at ports amid tariffs, according to Financial Times
- Fox Business reporter Charlie Gasparino says "People close to the Trump White House say you can expect an announcement of some sort about formal negotiations over trade and tariffs with Japan, Vietnam, and possibly the UK as early as today"
- Conservative Republicans have concerns about reconciliation resolution because it would increase deficits too much, according to the New York Times
- The 10-yr note reopening drew a high yield of 4.435%, which stopped through the when-issued yield by three basis points. The bid-to-cover ratio (2.67x) was well above average (2.54x) while indirect takedown (87.9% vs 67.3% average) hit a record, reflecting huge foreign interest.
- White House strengthens the reliability and security of the United States electric grid
- President Trump signs executive order to expand use of coal in US
- BOE releases systemic risk survey results
- IMF reaches staff-level agreement with Argentina on a 48-month extended fund facility
- AAR Corp (AIR): Trax unit and Rolls-Royce launch interface between Trax's eMRO application and Rolls-Royce's Blue Data Thread platform
- Alphabet (GOOG): German regulator Bundeskartellamt says "Google will stop restricting competition in connection with Google Automotive Services and Google Maps Platform"
- AMMO (POWW) Chairman resigned; co received an additional deficiency notification letter
- Amylyx Pharmaceuticals (AMLX) Announces First Participant Dosed in Phase 1, Multiple Ascending Dose LUMINA Trial of AMX0114 in People Living with Amyotrophic Lateral Sclerosis
- Annexon (ANNX) Highlights Pivotal Data on First Potential Targeted Therapy for Guillain-Barré Syndrome (GBS) and Showcases New GBS Education Campaign at American Academy of Neurology (AAN) 2025 Annual Meeting
- Apple (AAPL): AppleInsider disputes Trump's claim that iPhone manufacturing could quickly move to the US
- Banco Macro (BMA) provides litigation update
- Blackstone (BX) announces $10.6 billion final close of largest ever european real estate drawdown fund
- BP (BP): The Trump administration revoked licenses for BP and Shell (SHEL) gas projects in Venezuelan waters, according to Financial Times
- Brookdale Senior Living (BKD) reports March weighted average occupancy increased 160 bps yr/yr to 79.5%
- Comcast (CMCSA) NBCUniversal announces intent to build Universal Theme Park and resort in the United Kingdom
- FormFactor (FORM) introduces EVOLVITY 300, expanding its 300 mm product line
- HireQuest (HQI) appointed C. David Hartley to serve as CFO effective May 31, 2025
- indie Semiconductor (INDI) CFO Kanwardev Raja Singh Bal resigns
- Jazz Pharma (JAZZ) entered into a preliminary class settlement agreement with the class of indirect Xyrem purchasers to settle all claims
- Littelfuse (LFUS) CFO to step down; provides transition plan
- Lotus Technology (LOT) appoints Daxue Wong as CFO, effective April 8
- Meta Platforms (META) whistleblower Sarah Wynn-Williams gives testimony to Senate
- Microsoft (MSFT) considers more job cuts, according to Business Insider
- Neogen (NEOG) CEO to step down
- Newmark Group (NMRK) promotes Luis Alvarado to COO
- OneStream (OS) approved certain changes to executive management - co-founder Thomas Shea will assume the role of president
- Palo Alto Networks (PANW) has surpassed $1.5 bln in cumulative sales through Google Cloud Marketplace
- Peabody Energy (BTU) announces that it is reviewing all options related to its acquisition of steelmaking coal assets from Anglo American
- Peloton (PTON) appoints Charles Kirol to the newly created role of Chief Operating Officer
- Post (POST) to close Cobourg, Ontario and Sparks, Nevada facilities
- Procter & Gamble (PG) increases quarterly cash dividend to $1.0568/share from $1.0065/share
- Redwire Corporation (RDW) and ispace-U.S. Sign MOu to jointly pursue commercial lunar exploration missions
- Satellogic (SATL) awarded a multi-year contract valued at $30 mln for its constellation services
- STMicroelectronics (STM): Italy wants to use veto power to block STM board actions, according to Bloomberg
- Tonix Pharma (TNXP) and Makana Therapeutics announce collaboration combining Tonix’s anti-CD40L monoclonal antibody (TNX-1500) with Makana’s genetically engineered organs in preclinical and clinical xenotransplantation studies
- TXNM Energy (TXNM) confirms recommendation to approve unopposed stipulation in PNM 2025 rate request
- UniFirst (UNF) announces $100 million share repurchase authorization
- Victoria's Secret (VSCO) announces series of leadership appointments, including Anne Stephenson named as President

Upgrades:
- Americold Realty Trust (COLD) upgraded to Overweight from Equal Weight at Barclays, tgt $21
- Apple (AAPL) upgraded to Hold from Underperform at Jefferies, tgt $167.88
- Associated Banc-Corp (ASB) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $26
- Bath & Body Works (BBWI) upgraded to Overweight from Neutral at Piper Sandler, tgt $35
- CF Industries (CF) upgraded to Sector Perform from Underperform at Scotiabank, tgt $81
- Constellation Energy (CEG) upgraded to Buy from Neutral at Citigroup, tgt $232
- Eastman Chemical (EMN) upgraded to Outperform from Sector Perform at RBC Capital, tgt $91
- First BanCorp (FBP) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $20
- Keurig Dr Pepper (KDP) upgraded to Overweight from Neutral at Piper Sandler, tgt $40
- Noah Holdings (NOAH) upgraded to Overweight from Neutral at JPMorgan, tgt $11.50
- Popular (BPOP) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $100
- Simon Property (SPG) upgraded to Buy from Hold at Stifel, tgt $168.50
- Starbucks (SBUX) upgraded to Hold from Underperform at Jefferies, tgt $76
- Travelers (TRV) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $247
Downgrades:
- Bio-Techne (TECH) downgraded to Sector Weight from Overweight at KeyBanc
- Bloom Energy (BE) downgraded to Sell from Neutral at Redburn Atlantic, tgt $10
- Ford (F) downgraded to Underperform from Market Perform at Bernstein
- Harvard Bioscience (HBIO) downgraded to Sector Weight from Overweight at KeyBanc
- Health Catalyst (HCAT) downgraded to In Line from Outperform at Evercore ISI
- Invesco (IVZ) downgraded to Hold from Buy at TD Cowen, tgt $13
- LyondellBasell (LYB) downgraded to Sector Perform from Outperform at RBC Capital, tgt $62
- Myriad Genetics (MYGN) downgraded to Neutral from Buy at Guggenheim
- OFG Bancorp (OFG) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $42
- PTC (PTC) downgraded to Neutral from Overweight at JPMorgan, tgt $160
- Rallybio (RLYB) downgraded to Neutral from Buy at H.C. Wainwright
- Rio Tinto (RIO) downgraded to Equal Weight from Overweight at Morgan Stanley
- RxSight (RXST) downgraded to Neutral from Buy at UBS, tgt $16
- W. R. Berkley (WRB) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $69
Others:
- Acadia Health (ACHC) initiated with a Buy at Guggenheim, tgt $36
- Affirm Holdings (AFRM) initiated with an Outperform at Evercore ISI, tgt $50
- Ardent Health Partners (ARDT) initiated with a Buy at Guggenheim, tgt $16
- Atlantic Union (AUB) initiated with an Equal Weight at Morgan Stanley, tgt $32
- Bionano Genomics Inc (BNGO) initiated with a Buy at H.C. Wainwright, tgt $10
- Block (XYZ) initiated with an In Line at Evercore ISI, tgt $52
- Boot Barn (BOOT) initiated with an Equal Weight at Stephens, tgt $100
- Casella Waste (CWST) initiated with a Buy at TD Cowen, tgt $130
- Centene (CNC) initiated with a Neutral at Guggenheim
- Cigna (CI) initiated with a Buy at Guggenheim, tgt $384
- Community Health (CYH) initiated with a Neutral at Guggenheim
- Couchbase (BASE) initiated with a Buy at Rosenblatt, tgt $20
- CRH (CRH) initiated with a Buy at Loop Capital, tgt $114
- CubeSmart (CUBE) initiated with a Neutral at Mizuho, tgt $39
- Elevance (ELV) initiated with a Buy at Guggenheim, tgt $518
- Extra Space (EXR) initiated with an Outperform at Mizuho, tgt $141
- Global Payments (GPN) initiated with an In Line at Evercore ISI, tgt $85
- HCA Healthcare (HCA) initiated with a Neutral at Guggenheim
- Humana (HUM) initiated with a Buy at Guggenheim, tgt $326
- Mastercard (MA) initiated with an In Line at Evercore ISI, tgt $550
- Molina (MOH) initiated with a Neutral at Guggenheim
- National Storage (NSA) initiated with a Neutral at Mizuho, tgt $35
- Newlake Capital Partners (NLCP) initiated with a Neutral at Lucid Capital Markets, tgt $14
- Palvella Therapeutics In (PVLA) initiated with a Buy at Chardan, tgt $50
- PayPal (PYPL) initiated with an In Line at Evercore ISI, tgt $65
- Public Storage (PSA) initiated with a Neutral at Mizuho, tgt $287
- Shift4 Payments (FOUR) initiated with an In Line at Evercore ISI, tgt $80
- Six Flags (FUN) initiated with a Buy at UBS, tgt $49
- Standex (SXI) initiated with a Buy at Roth MKM, tgt $175
- Tenet (THC) initiated with a Buy at Guggenheim, tgt $165
- Toast (TOST) initiated with an In Line at Evercore ISI, tgt $29
- Tractor Supply (TSCO) initiated with an Equal Weight at Stephens, tgt $56
- United Parks & Resorts (PRKS) initiated with a Neutral at UBS
- Universal Health (UHS) initiated with a Buy at Guggenheim, tgt $208
- Vertiv Holdings (VRT) initiated with an Outperform at Daiwa, tgt $73
- Visa (V) initiated with an In Line at Evercore ISI, tgt $330
- VTV Therapeutics (VTVT) initiated with a Buy at H.C. Wainwright, tgt $36

Econ Data (Thursday):
- 08:30 ET: March CPI (Briefing.com consensus 0.1%; prior 0.2%) and Core CPI (Briefing.com consensus 0.3%; prior 0.2%)
- 08:30 ET: Weekly Initial Claims (Briefing.com consensus 225,000; prior 219,000) and Continuing Claims (prior 1.903 mln)
- 10:30 ET: Weekly natural gas inventories (prior +29 bcf)
- 14:00 ET: March Treasury Budget (prior -$307.0 bln)
Earnings:Monday (Apr 7)
Pre-Market: None
After-Hours: PLAY GBX LEVI
Tuesday (April 8)
Pre-Market: RPM TLRY WDFC
After-Hours: CALM
Wednesday (April 9)
Pre-Market: DAL NEOG SMPL
After-Hours: STZ PSMT
Thursday (April 10)
Pre-Market: KMX LOVE
After-Hours: None
Friday (Apr 11)
Pre-Market: BLK BK FAST JPM MS WFC
After-Hours: None