After Hours Report

Today's session started on a delicate note, as there was some nervous tension emanating from the Treasury market following the news that the House passed the reconciliation bill early this morning in a 215-214 party-line vote.

That bill, among other things, raises the SALT deduction cap to $40,000 (from $10,000), moves up the Medicaid work requirement date to December 2026 from 2029, and increases the debt ceiling by $4 trillion. The Tax Foundation estimates that it will increase long-run GDP by 0.6% and add $3.3 trillion to deficits over the next 10 years.

There was some knee-jerk selling in the Treasury market that took the 10-yr note yield up to 4.63% and the 30-yr bond yield up to 5.15%. Those moves triggered some added weakness in the equity futures market, but they started to reverse following a jobless claims report at 8:30 a.m. ET that showed a 36,000 increase in continuing jobless claims to 1.903 million for the week ending May 10. Yields then took another turn lower after the Existing Home Sales Report for April at 10:00 a.m. ET produced the slowest annualized pace of sales for that month (4.00 mln) since 2009.

By the time the Treasury market's cash session settled at 2:00 p.m. ET, the 10-yr note yield had retraced to 4.55%, while the 30-yr bond yield backed down to 5.06%. That improvement coincided with a pickup in the U.S. Dollar Index (+0.4% to 99.91) and fostered a recovery move by the stock market, which started the session on a softer note.

The recovery in the stock market was paced by the mega-cap stocks and the growth stocks, with names like Alphabet (GOOG 171.98, +1.92, +1.1%), NVIDIA (NVDA 132.83, +1.03, +0.8%), and Snowflake (SNOW 203.18, +24.06, +13.4%), which reported earnings and a reassuring outlook, exhibiting relative strength. 

The major indices were plodding along with modest gains, but most of those gains were relinquished in a sell program that hit the market in the last 30 minutes of trading.

The consumer discretionary (+0.6%), communication services (+0.3%), and information technology (+0.1%) sectors, all of which house mega-cap constituents, were the lone sectors to end the session in positive territory. The industrials sector was flat, and the other seven sectors sported losses ranging from 0.1% (materials and financials) to 1.4% (utilities). 

• DJIA: -1.6% YTD
• S&P 500: -0.7% YTD
• Nasdaq: -2.0% YTD
• S&P 400: -4.4% YTD
• Russell 2000: -8.3% YTD

Reviewing today's economic data:

• Initial jobless claims for the week ending May 17 decreased by 2,000 to 227,000 (Briefing.com consensus 232,000), while continuing jobless claims for the week ending May 10 increased by 36,000 to 1.903 million.
  • The key takeaway from the report is that initial jobless claims are running steady at levels that are well below recession-type readings; moreover, this report covered the period in which the survey for the May employment report was conducted and should contribute to expectations that nonfarm payrolls will again show a relatively solid print.
• Preliminary May S&P Global US Manufacturing PMI (Actual 52.3; prior 50.2) and Services PMI (Actual 52.3; prior 50.8).
• Existing home sales decreased 0.5% month-over-month in April to a seasonally adjusted annual rate of 4.00 million (Briefing.com consensus 4.15 million) from an unrevised 4.02 million in March. Sales were down 2.0% from the same period a year ago.
  • The key takeaway from the report is that the median existing home price reached an April record of $414,000, putting the spotlight on affordability constraints as prices rise alongside mortgage rates.

Overseas:

• Europe: DAX -0.5%, FTSE -0.5%, CAC -0.6%
• Asia: Nikkei -0.8%, Hang Seng -1.2%, Shanghai -0.2%

Commodities:

• Crude Oil -0.37 @ 61.21
• Nat Gas -0.09 @ 3.64
• Gold -18.20 @ 3295.10
• Silver -0.43 @ 33.21
• Copper +0.01 @ 4.68

After-Hours Spotlight:

• Autodesk (ADSK) beats by $0.14, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS in-line, revs in-line... ADSK up 2.3%
• Deckers Outdoor (DECK) beats by $0.40, beats on revs; guides JunQ EPS and revs below consensus; will not provide FY26 guidance; increases share repurchase authorization to $2.5 bln... DECK down 13.4%
• Intuit (INTU) beats by $0.72, beats on revs; guides Q4 EPS above consensus, revs above consensus... INTU up 8.1%
• Ross Stores (ROST) beats by $0.03, reports revs in-line, comps flat; guides Q2 EPS below consensus; withdraws full year guidance... ROST down 10.6%
• Workday (WDAY) beats by $0.22, reports revs in-line, subscription revenue slightly ahead of guidance; Guides Q2 subscription revenue in-line, reaffirms FY26 subscription revenue guidance, raises FY26 Non-GAAP operating margin guidance... WDAY down 5.2%
• Xerox (XRX) reaffirms FY25 revenue guidance, which is above consensus; Also continues to expect synergies associated with Lexmark transaction of at least $238 mln... XRX down 9.0%

Fair Value for Friday, May 23:

• S&P 500: 5,858
• Nasdaq 100: 21,179
• DJIA: 41,939

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

• Earnings/Guidance (Full Earnings Calendar):
  • Advance Auto (AAP) beats by $1.22, beats on revs; reaffirms FY25 EPS guidance, revs guidance; Q1 comps -0.6%
  • American Superconductor (AMSC) beats by $0.02, beats on revs; guides Q1 EPS above two analyst estimate, revs above two analyst estimate
  • Analog Devices (ADI) beats by $0.15, beats on revs; guides Q3 EPS above consensus, revs above consensus
  • BJ's Wholesale (BJ) beats by $0.22, reports revs in-line; reaffirms FY26 EPS guidance
  • Delcath (DCTH) issues FY25 guidance, including for total CHEMOSAT and HEPZATO KIT revenue; Also announces intention to enter into a Medicaid National Drug Rebate Agreement
  • Domo (DOMO) beats by $0.10, beats on revs; guides Q2 EPS in-line, revs in-line; raises FY26 EPS and revenue guidance
  • Dorian LPG (LPG) misses by $0.16, reports revs in-line
  • Enersys (ENS) beats by $0.19, reports revs in-line; guides Q1 EPS below consensus, revs below consensus
  • Lightspeed (LSPD) misses by $0.01, reports revs in-line; guides Q1 revs in-line; guides FY26 revs in-line
  • LiveRamp (RAMP) beats by $0.02, beats on revs; guides JunQ revs above consensus; guides FY26 revs in-line
  • Protolabs (PRLB) reaffirms Q2 guidance
  • Raymond James (RJF) reports April operating data
  • Thermon Group (THR) beats by $0.05, reports revs in-line; guides FY26 EPS below consensus, revs below consensus
  • Urban Outfitters (URBN) beats by $0.32, beats on revs
  • Snowflake (SNOW) beats by $0.03, beats on revs, easily beats product revenue guidance; Issues upside Q2 product revenue guidance, raises FY26 product revenue guidance
  • Toronto-Dominion Bank (TD) beats by CAD0.20
  • Williams-Sonoma (WSM) beats by $0.09, beats on revs, comps +3.4%; reaffirms FY26 revs and comp guidance
  • Zoom Communications (ZM) beats by $0.12, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus
• General News
  • House passes large reconciliation bill by a vote of 215-214 which includes extension of 2017 tax cuts for all income levels, spending cuts (Medicaid and green energy spending), deregulation, energy reform, immigration reform, and a debt ceiling increase of $4 trillion; bill now heads to the Senate where changes are expected
  • President Trump privately told European leaders that Russian President Putin is not prepared to end war, according to the Wall Street Journal
  • Secretary of Homeland Security Kristi Noem says "Two Israeli Embassy staff were senselessly killed tonight near the Jewish Museum in Washington DC. We are actively investigating and working to get more information to share. Please pray for the families of the victims."
  • CMS rolls out aggressive strategy to enhance and accelerate Medicare Advantage audits
  • Bitcoin crosses $111,000 for first time amid increasing institutional demand
  • OPEC considering another large production increase in July
  • ANI Pharmaceuticals (ANIP) announces initiation of Phase 4 clinical trial of purified Cortrophin gel for the treatment of acute gout flares
  • AT&T (T) also announced it remains committed to repurchasing shares under the previously announced $10 billion authorization; reaffirms FY25 financial and operations guidance
  • Atlantic Union Bankshares (AUB) announces planned retirement of Robert M. Gorman, EVP and Chief Financial Officer; expected to occur on or before March 31, 202
  • Atour Lifestyle Hldgs. Ltd. (ATAT) authorized a three-year share repurchase program of up to US$400 mln
  • Aurinia Pharma (AUPH): New AURORA 1 analysis: LUPKYNIS-based triple immunosuppressive therapy yields deep proteinuria reduction in lupus nephritis
  • BAE Systems (BAESY) awarded a US Army contract action not-to-exceed $423 mln
  • Bayer's (BAYRY) Eylea 8 mg approved in China for wet age-related macular degeneration
  • Boeing (BA) and Airbus (EADSY) making progress on manufacturing output, according to Reuters 
  • BYD (BYDDY) tops Tesla (TSLA) in Europe sales, according to Bloomberg
  • CACI Intl (CACI) awarded a $147.5 mln US Army contract
  • Civeo (CVEO) awarded 3-year contract with leading metallurgical coal producer in Australian Bowen Basin; Anticipated that contract will generate approximately A$64 mln in revenue over 2025-2028 period
  • Coinbase Global (COIN): Maine AG announces COIN data breach notification
  • Comcast (CMCSA): NBCUniversal bids for MLB rights that ESPN dropped, according to the Wall Street Journal
  • Crown Castle (CCI) decreases quarterly cash dividend to $1.0625/share from $1.565/share
  • Eli Lilly (LLY) announces marketing authorization for Kisunla (donanemab) in Australia for the treatment of early symptomatic Alzheimer's disease
  • Expro Group (XPRO) secures $80 mln multi-year TRS contracts
  • Fannie Mae (FNMA): President Trump says "I am giving very serious consideration to bringing Fannie Mae (FNMA) and Freddie Mac (FMCC) public. I will be speaking with Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and the Director of the Federal Housing Finance Agency, William Pulte, among others, and will be making a decision in the near future."
  • Ginkgo Bioworks (DNA) appoints Steven Coen as CFO, effective May 30
  • HIVE Digital Technologies (HIVE) reaches record 9.5 EH/s milestone
  • Insmed (INSM): Brensocatib Shows Consistent Efficacy and Safety Across Three Prespecified Subgroups in New Data from Landmark ASPEN Study
  • Instil Bio (TIL) and ImmuneOnco announced the Phase 2 trial in first-line NSCLC of IMM2510/AXN-2510, a PD-L1xVEGF bispecific antibody, in combination with chemotherapy in china is on track to complete enrollment in Q3 2025; initial results anticipated in H2 2025
  • JP Morgan (JPM) CEO Jamie Dimon warns of stagflation risks in the economy, according to Bloomberg
  • LivaNova (LIVN) provided litigation updates
  • Main Street Capital (MAIN) completed a new portfolio investment to facilitate the minority recapitalization of Doral Corporation
  • MercadoLibre (MELI) names Ariel Szarfsztejn as new CEO; current CEO Marcos Galperin to become Executive Chairman
  • NeoGenomics (NEO) announced the commercial launch of c-MET CDx for NSCLC, its c-MET companion diagnostic immunohistochemistry assay
  • NIKE (NKE) plans to raise prices on wide range of footwear, apparel, and equipment as soon as this week, according to CNBC
  • NIKE (NKE) to sell to Amazon for first time since 2019, according to TheInformation.com
  • Nissan Motor (NSANY) nearing deal to procure EV batteries in US from Ford / SK joint venture, according to Bloomberg
  • NVIDIA (NVDA) and Navitas Semiconductor (NVTS) announce a collaboration on next-gen 800 V HVDC architecture to support ‘Kyber’ rack-scale systems
  • OpenAI aiming to ship 100 million AI companion devices, according to the Wall Street Journal
  • Palantir Technologies (PLTR) awarded a $795 mln modification to US Army contract
  • Pfizer (PFE) sees FDA setback on prostate cancer drug, according to Bloomberg
  • Pitney Bowes (PBI) names Kurt Wolf as CEO, intends to repurchase $150 mln in shares in 2025, will conduct a comprehensive strategic review
  • POSCO (PKX) discloses update to previously reported Hyundai Motor (HYMTF) rumors; is still in discussions regarding the shareholding ratio and investment scale for participating in construction of mill in Louisiana
  • Protolabs (PRLB) appoints Suresh Krishna as President and CEO, effective immediately
  • Radian Group (RDN) announces new $750 million share repurchase authorization
  • Rio Tinto (RIO) CEO to step down later this year; updates CEO succession plan
  • RTX (RTX) awarded a $380 mln modification to previously awarded US Air Force contract
  • Skeena Gold & Silver (SKE) signs interconnection agreement with Coast Mountain Hydro and secures access to clean, cost-effective energy supply for Eskay Creek
  • Stellantis (STLA) increases its share in the total EU30 market and confirms its leadership in the hybrid car segment
  • Super Micro Computer (SMCI) and Digi Power X (DGXX) entered into collaboration to deploy customized B200 GPU rack solutions
  • Synaptics (SYNA) hires former Qualcomm exec as its new CEO
  • TAT Technologies (TATT) expands MRO partnership with leading international cargo carrier; 5-year contract valued at $40-55 million
  • TEGNA (TGNA) shareholders approve all board of directors’ proposals at 2025 Annual Meeting
  • Walmart (WMT) to cut around 1,500 jobs in a restructuring, according to The Wall Street Journal

• Upgrades:
  • Dana (DAN) upgraded to Outperform from Sector Perform at RBC Capital, tgt $20
  • Inogen (INGN) upgraded to Buy from Hold at Needham, tgt $12
  • Integer (ITGR) upgraded to Buy from Neutral at Citigroup, tgt $140
  • Planet Fitness (PLNT) upgraded to Buy from Hold at Stifel, tgt $120
  • United Rentals (URI) upgraded to Overweight from Sector Weight at KeyBanc, tgt $865
  • Urban Outfitters (URBN) upgraded to Overweight from Neutral at JPMorgan, tgt $78
  • Zoom Communications (ZM) upgraded to Buy from Hold at Needham, tgt $100
• Downgrades:
  • Becton Dickinson (BDX) downgraded to Neutral from Buy at Citigroup, tgt $185
  • Bruker (BRKR) downgraded to Neutral from Buy at Citigroup, tgt $40
  • Canada Goose (GOOS) downgraded to Sell from Hold at Williams Trading
  • CrowdStrike (CRWD) downgraded to Sell from Buy at DZ Bank, tgt $370
  • Equinor (EQNR) downgraded to Equal Weight from Overweight at Barclays
  • Guidewire (GWRE) downgraded to Neutral from Buy at DA Davidson, tgt $226
  • MAG Silver (MAG) downgraded to Sell from Buy at TD Securities
  • Marvell (MRVL) downgraded to Hold from Buy at Melius, tgt $66
  • Sunrun (RUN) downgraded to Underperform from Market Perform at BMO Capital, tgt $4
  • Sunrun (RUN) downgraded to Neutral from Outperform at BNP Paribas Exane, tgt $10
  • Target (TGT) downgraded to Neutral from Buy at BofA Securities, tgt $105
  • Target (TGT) downgraded to Market Perform from Outperform at Telsey Advisory Group, tgt $110
    
  • UroGen Pharma (URGN) downgraded to Neutral from Buy at H.C. Wainwright
  • W. R. Berkley (WRB) downgraded to Neutral from Buy at Goldman, tgt $76
  • ZTO Express (ZTO) downgraded to Neutral from Buy at BofA Securities, tgt $19
• Others:
  • Applied Digital (APLD) initiated with an Outperform at Citizens JMP, tgt $12
  • Astera Labs (ALAB) initiated with an Outperform at William Blair
  • Climb Bio (CLYM) initiated with a Buy at BTIG Research, tgt $7
  • Core Scientific (CORZ) initiated with an Outperform at Citizens JMP, tgt $15
  • CoreWeave (CRWV) initiated with a Market Perform at Citizens JMP
  • Corporacion America Airport (CAAP) initiated with a Buy at BofA Securities, tgt $24.70
  • Expand Energy (EXE) initiated with an Outperform at Bernstein, tgt $150
  • Goodyear Tire (GT) reinstated with an Overweight at JPMorgan, tgt $17
  • Hut 8 (HUT) initiated with an Outperform at Citizens JMP, tgt $25
  • Intuitive Machines (LUNR) initiated with an Equal Weight at Barclays, tgt $13
  • Oruka Therapeutics (ORKA) initiated with a Buy at BTIG Research, tgt $44
  • Philip Morris (PM) initiated with a Buy at Needham, tgt $195
  • Rapt Therapeutics (RAPT) assumed with a Buy at H.C. Wainwright, tgt $
  • Serve Robotics (SERV) initiated with an Overweight at Cantor Fitzgerald, tgt $17
  • Solaris Energy (SEI) initiated with a Buy at Citigroup, tgt $32
  • Summit Therapeutics (SMMT) initiated with a Buy at Clear Street, tgt $33
  • TeraWulf (WULF) initiated with an Outperform at Citizens JMP, tgt $7
  • VTEX (VTEX) initiated with a Hold at Jefferies, tgt $7.30

• Econ Data (Friday):
  • 10:00 ET: April New Home Sales (Briefing.com consensus 679K; prior 724K)
• 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
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike