After Hours Report

Updated: 20-May-25 16:56 ET

Palo Alto Networks slides after earnings report

The S&P 500 had a six-session win streak going, but on the seventh day it rested. There were no gains today as the stock market operated in consolidation mode following the massive run from the April 7 low. The Dow and Nasdaq followed suit, posting modest losses of their own, while the Russell 2000 was flat.

There wasn't any U.S. economic data of note to drive things, and the corporate news was limited. There was some added attention on President Trump's visit to Capitol Hill to discuss his objectives for the reconciliation bill with House GOP members. Reportedly, he told them not to mess with Medicaid cuts and rebuked the efforts by the SALT Caucus to raise the deduction limit beyond the $30,000 currently proposed, telling them to "let it go."

There was some chatter that neither camp was fully swayed by the president's exhortations, so there was a component of uncertainty around the reconciliation bill that contributed to the consolidation effort.

Overall, there wasn't much conviction in today's selling action. Eight S&P 500 sectors finished lower, but only one -- energy (-1.0%) -- declined at least 1.0%. Losses for the remaining sectors ranged from 0.2% to 0.8%. The three winning sectors -- utilities (+0.3%), health care (+0.3%), and consumer staples (+0.2%) -- reflected a more defensive-minded tape.

Market breadth skewed negative. Decliners led advancers by an 8-to-5 margin at the NYSE and by a roughly 11-to-10 margin at the Nasdaq.

Dow component Home Depot (HD 377.05, -2.21, -0.6%) was among the decliners, losing ground after a mixed Q1 report that featured an EPS miss, a revenue beat, a reaffirmation of FY26 guidance, and a declaration that the company does not plan to raise prices due to tariffs.

Alphabet (GOOG 165.32, -2.55, -1.5%) was another decliner amid its I/O event; meanwhile, Tesla (TSLA 343.82, +1.73, +0.5%) slotted into the advancers column but finished well off its session high of $354.98. Mega-cap stocks, in general, were softer today, which fit with today's consolidation bias, but they showed some vigor in the closing stages to help the indices come back from lower levels as the closing bell approached. The Vanguard Mega-Cap Growth ETF (MGK) declined 0.5% after being down 1.2%.

Overseas:

Europe: DAX +0.3%, FTSE +0.9%, CAC +0.8%
Asia: Nikkei +0.1%, Hang Seng +1.5%, Shanghai +0.4%

Commodities:

Crude Oil +0.15 @ 62.12
Nat Gas -0.24 @ 3.45
Gold +50.00 @ 3284.80
Silver +0.64 @ 33.16
Copper -0.01 @ 4.66

After-Hours Spotlight:

Keysight (KEYS) beats by $0.05, beats on revs; guides Q3 EPS in-line, revs above consensus... KEYS up 5.1%
Kraft Heinz (KHC) has been evaluating potential strategic transactions to unlock shareholder value; Also announces that Berkshire Hathaway Inc. will no longer hold Board seats at the company... KHC up 0.1%
Modine Manufacturing (MOD) beats by $0.17, beats on revs; guides FY26 revs in-line... MOD up 1.8%
Palo Alto Networks (PANW) beats by $0.03, reports revs in-line; guides JulQ EPS in-line, revs in-line... PANW down 4.2%
Take-Two (TTWO) announces proposed public offering of $1 bln shares of its common stock... TTWO down 3.4%
Toll Brothers (TOL) beats by $0.67, beats on revs; Issues guidance for Q3 and FY26, including Deliveries of 11,200-11,600 units for FY26... TOL up 5.2%
Viasat (VSAT) reports Q4 (Mar) results, beats on revs; guides FY26 revs above consensus... VSAT down 1.2%

Fair Value for Wednesday, May 21:

S&P 500: 5,958
Nasdaq 100: 21,439
DJIA: 42,770

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):
- 8x8 (EGHT) reports EPS in-line, revs in-line; guides JunQ EPS in-line, revs in-line; guides FY26 EPS in-line, revs in-line
- Agilysys (AGYS) beats by $0.25, beats on revs; guides FY26 revs below consensus
- Amer Sports (AS) beats by $0.12, beats on revs; guides Q2 EPS in-line, revs in-line; raises FY25 guidance
- Bilibili (BILI) beats by RMB0.33, beats on revs
- BW LPG Ltd (BWLP) reported Q1 results with outlook
- Eagle Materials (EXP) misses by $0.36, misses on revs
- Frontier Group Holdings (ULCC) reaffirms Q2 EPS guidance
- GDS Holdings (GDS) reports Q1 (Mar) results, revs in-line; reaffirms FY25 revs guidance
- Home Depot (HD) misses by $0.04, beats on revs; reaffirms FY26 EPS guidance, revs guidance
- Hovnanian (HOV) misses by $0.02, misses on revs; guides Q3 above consensus
- PONY AI Inc. (PONY) Announces Unaudited First Quarter 2025 Financial Results
- The Cigna Group (CI) reaffirms FY25 EPS guidance ahead of meetings with investors and analysts over the next several weeks
- Transcat (TRNS) beats by $0.09, reports revs in-line
- Trip.com Group (TCOM) beats by RMB0.59, reports revs in-line
- Viking Holdings Ltd (VIK) beats by $0.05, beats on revs
- Vipshop (VIPS) beats by RMB0.08, reports revs in-line; guides Q2 revs in-line
- Vodafone PLC (VOD) reports FY25 results; launches new buyback
General News
- Punchbowl News reporter Jake Sherman says President Trump "has told House Republicans to lay off Medicaid. Before he went into the room, he told reporters that he is not for Medicaid cuts but rather getting rid of waste, fraud, and abuse. HFCers (House Freedom Caucus) are pushing a restructuring of the funding mechanism of Medicaid"
- House Republican leadership has not yet reached agreement on the state and local tax deduction in the reconciliation bill. House Speaker Mike Johnson wants a vote before Memorial Day, according to Politico
- President Trump losing patience with New York/California Republicans on state and local tax deduction, according to Politico
- There are no signs that President Trump alleviated concerns of certain Republicans who are currently against large reconciliation bill, according to NY Times
- Senate votes 66-32 to advance stablecoin legislation to a full Senate vote
- Reserve Bank of Australia decided to lower the cash rate target by 25 basis points to 3.85%
- PBOC announces new loan prime rate
- HHS & CMS set most-favored-nation pricing targets
- Albany Intl (AIN) announces resignation of CFO Robert Starr, effective May 23; Jairaj Chetnani appointed as interim CFO as conducts a formal search for Mr. Starr’s successor
- Alphabet's (GOOG) Waymo says "excited to share that the CPUC has approved our application to operate our fully autonomous commercial ride-hailing service in the South Bay and nearly all of San Jose!"
- Apple (AAPL) to let developers build AI apps using its own models, marking major shift ahead of WWDC, according to Bloomberg
- ASP Isotopes (ASPI) enters into definitive agreements with terraPower including loan agreement for construction of a HALEU production facility and supply agreements for HALEU
- atai Life Sciences (ATAI) Announces Positive Topline Data from Part 2 of Beckley Psytech’s Phase 2a Study of BPL-003 in Combination with SSRIs for Treatment-Resistant Depression
- BMW Group (BMWKY) announced buy back program with a volume of up to EUR 2 billion
- BridgeBio Pharma (BBIO) reports Acoramidis reduced incidence of atrial fibrillation events in patients with ATTR-CM
- Chevron (CVX): U.S. to extend Chevron’s Venezuela waiver by 60 days amid talks with Maduro government, according to Bloomberg
- Coinbase Global (COIN): DOJ to investigate customer data theft, according to Bloomberg
- CoreCivic (CXW) authorizes additional $150 mln for share repurchase
- CRISPR Therapeutics (CRSP) and Sirius Therapeutics Announce Multi-Target Collaboration to Develop Novel siRNA Therapies
- Cybin (CYBN) applauds recent comments made by Dr. Martin Makary, Commissioner of the U.S. FDA relating to the importance of accelerating and prioritizing research on the clinical benefits of psychedelic therapeutics
- DeFi Technologies (DEFT) announces strategic joint venture and foundational equity investment in Fire Labs
- Dollar Tree (DLTR): In partnership with Brigade Capital Management and Macellum Capital Management, announces that Duncan MacNaughton will serve as Chairman and Chief Executive Officer of Family Dollar
- D-Wave Quantum (QBTS) announces availability of Advantage2 Quantum Computer
- FedEx (FDX) announces leadership roles as it makes progress to separate its LTL freight division; John A. Smith, Chief Operating Officer, U.S. and Canada, of Federal Express, has been selected to serve as President and CEO
- General Motors (GM) will stop exporting cars from U.S. to China, according to Reuters
- GitLab (GTLB) achieves Authority to Operate status at the Moderate impact level from the Federal Risk and Authorization Management Program for GitLab Dedicated for Government under the sponsorship of the General Services Administration
- Google (GOOG, GOOGL) will not offer publishers options in artificial intelligence search, according to Bloomberg
- Harley-Davidson (HOG) cofnirms that all nine of Harley-Davidson's Director nominees were elected at the Annual Meeting; the rigorous search process for Harley-Davidson's next CEO continues at pace, led by the search committee
- Honda (HMC) plans to scale back EV investments and focus on hybrids, according to Reuters
- Innoviva (INVA) announced the United States commercial availability of ZEVTERA (ceftobiprole medocaril sodium for injection), the newest addition to the Company’s growing antibiotic portfolio
- Lithium Americas (LAC): Apollo Silver expands Calico project land package by over 285%
- Marti Technologies (MRT) appoints Cenk Özeker as its Chief Financial Officer, effective May 14; he replaces the Company’s former Interim CFO, Deniz Terlemez
- NANO Nuclear Energy (NNE) and and MIT’s Department of Nuclear Science and Engineering Launch advanced irradiation study to investigate salt-based thermal storage for nuclear applications
- Nike (NKE) to eliminate jobs in technology unit, according to Bloomberg
- Nintento (NTDOY) will partner with Samsung (SSNLF) to build chips for Switch 2, according to Bloomberg
- Perpetua Resources (PPTA) receives final federal permit for Stibnite Gold Project
- Pfizer (PFE) enters into exclusive licensing agreement with 3SBio
- Porch Group (PRCH) announces retirement of majority of 2026 unsecured convertible notes; reduces 2026 debt maturity to $29 million
- REGENXBIO (RGNX) closes a non-dilutive, limited recourse royalty bond agreement of up to $250 million with Healthcare Royalty
- Sanofi (SNY): Viz.ai announces a multi-year partnership with Sanofi (SNY) and Regeneron (REGN) to deploy and evaluate an AI-powered workflow solution for chronic obstructive pulmonary disease
- Schrodinger (SDGR) announces CFO appointment; Richie Jain to succeed Geoffrey Porges as CFO; reaffirms Q2 software revenue guidance
- Talos Energy (TALO) appoints Gregory Babcock as interim CFO, effective June 28
- Tesla (TSLA) CEO Elon Musk says he will lead TSLA for next 5 years, according to CNBC
- Tesla (TSLA) CEO Elon Musk CNBC interview: He expects to have "hundreds of thousands" of self-driving Tesla cars on the road by the end of 2026
- Tesla (TSLA) CFO Vaibhav Taneja will receive a $139 mln pay package, according to the Wall Street Journal
- Tourmaline Bio (TRML) announces topline results from the ongoing Phase 2 TRANQUILITY Trial Evaluating Pacibekitug in Patients with Elevated High-Sensitivity C-reactive Protein and Chronic Kidney Disease
- Trevi Therapeutics (TRVI) announces additional analyses from phase 2a RIVER trial of Haduvio in patients with refractory chronic cough
- TXNM Energy (TXNM) announces Henry Monroy as its new Senior Vice President and Chief Financial Officer
- Verra Mobility (VRRM) authorizes a stock repurchase program to repurchase up to $100 million of its outstanding shares of Class A common stock
- Vertex Pharma (VRTX) authorizes $4 bln share repurchase program
- Victoria’s Secret & Co. (VSCO) Adopts Limited-Duration Shareholder Rights Plan
- Viridian Therapeutics (VRDN) Announces Positive Long-Term Durability Data from the Veligrotug Phase 3 THRIVE Clinical Trial in Patients with Active Thyroid Eye Disease
- Zymeworks (ZYME) Presents Preclinical Data on ZW1528 at the American Thoracic Society International Conference

Upgrades:
- Air Lease (AL) upgraded to Buy from Neutral at Citigroup, tgt $68
- Blue Owl Capital (OWL) upgraded to Outperform from Market Perform at Keefe Bruyette, tgt $23
- Celanese (CE) upgraded to Market Perform from Underperform at BMO Capital, tgt $55
- Energy Recovery (ERII) upgraded to Buy from Hold at Fearnley, tgt $15
- HP Enterprise (HPE) upgraded to Outperform from In Line at Evercore ISI, tgt $22
- ImmunityBio (IBRX) upgraded to Overweight from Neutral at Piper Sandler, tgt $5
- Kinetik Holdings (KNTK) upgraded to Buy from Neutral at Citigroup, tgt $55
- Kroger (KR) upgraded to Hold from Sell at Melius Research, tgt $70
- LivaNova (LIVN) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $60
- Loma Negra (LOMA) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $15
- Mettler-Toledo (MTD) upgraded to Buy from Neutral at UBS, tgt $1,350
- MKS Inc. (MKSI) upgraded to Buy from Hold at Deutsche Bank, tgt $110
Downgrades:
- AES Corp. (AES) downgraded to Underperform from Hold at Jefferies, tgt $9
- Alcon (ALC) downgraded to Hold from Buy at Deutsche Bank
- Asana (ASAN) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $14
- ATI Inc. (ATI) downgraded to Sector Weight from Overweight at KeyBanc
- Chubb (CB) downgraded to Hold from Buy at Deutsche Bank, tgt $303
- Equinor (EQNR) downgraded to Hold from Buy at Berenberg
- Equinor (EQNR) downgraded to Reduce from Hold at Kepler Cheuvreux
- KLA Corp. (KLAC) downgraded to Hold from Buy at Deutsche Bank, tgt $790
- MongoDB (MDB) downgraded to Hold from Buy at Loop Capital
- Nutanix (NTNX) downgraded to Market Perform from Outperform at Raymond James
- Onto Innovation (ONTO) downgraded to Hold from Buy at Jefferies, tgt $110
- Prime Medicine (PRME) downgraded to Neutral from Buy at H.C. Wainwright
- Prime Medicine (PRME) downgraded to Neutral from Overweight at JPMorgan
- SBA Communications (SBAC) downgraded to Hold from Buy at Deutsche Bank, tgt $247
- Vivos Therapeutics (VVOS) downgraded to Neutral from Buy at Alliance Global Partners, tgt $2.25
- Westlake (WLK) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $76
Others:
- Amgen (AMGN) assumed with a Neutral at Guggenheim, tgt $288
- ArriVent BioPharma (AVBP) initiated with a Buy at JonesResearch; tgt $40
- Banco BBVA Argentina (BBAR) initiated with a Market Perform at Itau BBA, tgt $18
- Banco Macro (BMA) initiated with a Market Perform at Itau BBA, tgt $85
- Cameco (CCJ) assumed with a Buy at Goldman, tgt $65
- Capricor Therapeutics (CAPR) initiated with a Buy at Roth Capital, tgt $31
- Kymera Therapeutics (KYMR) resumed with a Buy at Stifel, tgt $55
- Lionsgate Studios (LION) initiated with an Outperform at Raymond James, tgt $10
- Metals Company (TMC) initiated with a Buy at H.C. Wainwright, tgt $5.50
- Nuscale Power (SMR) initiated with a Neutral at Goldman, tgt $24
- OneStream (OS) initiated with an Outperform at William Blair
- QT Imaging (QTIH) initiated with a Buy at Ladenburg, tgt $3.40
- SAP (SAP) initiated with an Overweight at Wells Fargo
- SES AI (SES) initiated with an Overweight at Cantor Fitzgerald, tgt $2
- Starz Entertainment (STRZ) initiated with an Outperform at Raymond James, tgt $19
- TNL Mediagene (TNMG) initiated with a Speculative Buy at Benchmark, tgt $3.50
- Zymeworks (ZYME) initiated with a Buy at TD Cowen

Econ Data (Wednesday):
- 07:00 ET: MBA Mortgage Applications Index (Prior 1.1%)
- 10:30 ET: EIA Crude Oil Inventories (Prior +3.45M)
Earnings:Monday (May 19)
Pre-Market: TH
After-Hours: AEGHT AGYS TRNS TCOM
Tuesday (May 20)
Pre-Market: AS BILI EXP GDS HD HOV VIK VIPS
After-Hours: JHX KEYS MOD PANW SKY TOL VSAT ZTO
Wednesday (May 21)
Pre-Market: BIDU GOOS DY LOW MDT TGT TJX VFC WB WIX
After-Hours: DOMO ENS RAMP SNOW URBN ZM
Thursday (May 22)
Pre-Market: AAP ADI BJ LSPD RL TD
After-Hours: ADSK CPRT DECK INTU LGF.A ROST STEP WDAY
Friday (May 23)
Pre-Market: BAH BKE
After-Hours: None