After Hours Report

There was hardly any interference from sellers today, as the stock market rallied around a confluence of supportive developments. Stocks began on a high note and steadily added to their gains as the session carried on, benefiting from sidelined investors getting squeezed back into the action by a fear of missing out on further gains. The indices closed near their highs for the day. 

There were three primary catalysts behind today's advance:

1. President Trump announced that he will be delaying the implementation of his recommended 50% tariff rate for the EU until July 9 to allow more time to negotiate a deal. This decision followed a phone call with European Commission President von der Leyen, who is reportedly wanting to accelerate trade talks now.
2. Treasury yields took a welcome step back, bolstered by reports that Japan is considering reducing its issuance of ultra-long bonds. The 10-yr note yield fell eight basis points to 4.43%, cutting below the closely watched 4.50% level, and the 30-yr bond yield dropped 10 basis points to 4.94%, moving below the closely watched 5.00% level.
3. The Consumer Confidence Index for May showed a solid jump to 98.0 (Briefing.com consensus 87.0) from a downwardly revised 85.7 (from 86.0) for April, as average 12-month inflation expectations eased from 7.0% to 6.5%.

These were the primary catalysts, but the consumer discretionary (+3.0%), information technology (+2.6%), and communication services (+2.1%) sectors were the main drivers of a broad-based rally effort that included the outperformance of the mega-cap stocks and small-cap stocks.

All 11 S&P 500 sectors finished higher, but only the three sectors mentioned above had a better return than the S&P 500. The smallest gainers were the utilities (+0.8%) and energy (+0.8%) sectors.

With the tariff temperature cooling for now, efforts to hedge for downside protection were tapered. The CBOE Volatility Index fell 13.6% to 19.25.

Today's session was controlled by buyers, evidenced by an A-D line that favored advancers by a better than 6-to-1 margin at the NYSE and by a better than 2-to-1 margin at the Nasdaq.

In other developments, the Treasury market digested a $69 billion 2-yr note auction in decent shape. The high yield of 3.955% stopped through the when-issued yield of 3.965% by a basis point, albeit on slightly weaker-than-average dollar demand. The U.S. Dollar Index was up 0.5% to 99.59.

• S&P 500: +0.7% YTD
• DJIA: -0.4% YTD
• Nasdaq: -0.6% YTD
• S&P 400: -2.5% YTD
• Russell 2000: -6.3% YTD

Reviewing today's economic data:

• Total durable goods orders decreased 6.3% month-over-month in April (Briefing.com consensus -8.1%) following a downwardly revised 7.6% increase (from 9.2%) in March, with a 17.1% decline in transportation equipment orders acting as the key drag. Excluding transportation, durable goods orders rose 0.2% month-over-month (Briefing.com consensus 0.0%) following a downwardly revised 0.2% decline (from 0.0%) in March.
  • The key takeaway from the report is that there was a big dropoff in business spending, evidenced by the 1.3% decline in new orders for nondefense capital goods excluding aircraft.
• March FHFA Home Price Index -0.1% month-over-month (Briefing.com consensus 0.2%) following a downwardly revised 0.0% (from 0.1%) in February.
• March S&P Case-Shiller Home Price Index increased 4.1% yr/yr (Briefing.com consensus 4.4%) following an unrevised 4.5% increase in February.
• The Conference Board's Consumer Confidence Index jumped to 98.0 in May (Briefing.com consensus 87.0) from a downwardly revised 85.7 (from 86.0) in June, breaking a string of five consecutive months of decline.
  • The key takeaway from the report is that there was a clear connection between the increase in consumer confidence and the pause in the reciprocal tariff rates, which triggered a material rally in stock prices and improved forecasts for the economic outlook. Note: roughly half of the responses came after the May 12 news that the U.S. and China were pausing their respective reciprocal tariff rates.

Overseas:

• Europe: DAX +1.0%, FTSE +0.7%, CAC flat
• Asia: Nikkei +0.5%, Hang Seng +0.4%, Shanghai -0.2%

Commodities:

• Crude Oil -0.63 @ 60.91
• Nat Gas +0.01 @ 3.74
• Gold -65.70 @ 3300.60
• Silver -0.29 @ 33.31
• Copper -0.10 @ 4.74

After-Hours Spotlight:

• Box (BOX) beats by $0.04, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus... BOX up 10%
• Exodus Movement (EXOD) files for $1 bln mixed securities shelf offering; also files for 1.5 mln share common stock offering by selling shareholders... EXOD up 0.7%
• HEICO (HEI) beats by $0.09, beats on revs... HEI up 0.7%
• Motorola Solutions (MSI) enters into definitive agreement to acquire Silvus Technologies for $4.4 bln; Acquisition expected to close in Q3 or Q4 of 2025... MSI up 0.1%
• Okta (OKTA)beats by $0.09, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, reaffirms FY26 revs guidance... OKTA down 11.6%
• Rocket Lab USA (RKLB) signs agreement to acquire Geost for $275 mln; acquisition would create an entirely new category for Rocket Lab... RKLB up 4.3%
• Semtech (SMTC) beats by $0.01, reports revs in-line; guides Q2 EPS in-line, revs in-line... SMTC down 2.8%
• Travelers (TRV) to sell its Canadian personal insurance business and majority of its Canadian commercial insurance business for US$2.4 bln.... TRV up 0.1%
• Vail Resorts (MTN) announces that Rob Katz, current Executive Chairperson, has been appointed CEO; Company also expects Resort Reported EBITDA for FY25 to be in lower half of prior guidance range... MTN up 10.9%

Fair Value for Wednesday, May 28:

• S&P 500: 5,934
• Nasdaq 100: 21,468
• DJIA: 42,408

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

• Earnings/Guidance (Full Earnings Calendar):
  • AutoZone (AZO) misses by $1.75, beats on revs
  • Bank of Nova Scotia (BNS) misses by CAD0.03, reports revs in-line
  • PDD Holdings (PDD) reports Q1 (Mar) results, misses on revs
  • Skyline Champion (SKY) misses by $0.11, misses on revs
• General News
  • President Trump agrees to extend deadline for EU tariffs to July 9 and says talks will begin "rapidly"
  • President Trump condemned Russian President Putin for recent attacks on Ukraine and said he is considering additional Russian sanctions, according to the New York Times
  • Japan mulling trimming issuance of long dated bonds, according to Reuters
  • EU agrees to accelerate discussions with U.S. to avoid trade war, according to Bloomberg
  • Senator Ron Johnson (R-WI) in interview says there is enough Senate Republicans to hold up the reconciliation bill unless larger spending cuts are included, according to CNN
  • Japan wants to reach tariff agreement with U.S. in June, according to Bloomberg
  • Nuclear talks between U.S. & Iran made some progress, but it was not conclusive, according to Washington Post
  • Minneapolis Fed President Neel Kashkari (not a voting FOMC member) gives remarks at the Bank of Japan’s Institute for Monetary and Economic Studies conference
  • President Trump tells reporters he wants U.S. to make technology products and military equipment, not sneakers or shirts, according to Reuters
  • EPA wants to eliminate greenhouse gas limits on power plants, according to the New York Times
  • Airbus (EADSY): Vietjet orders 20 more A330neo widebodies for future expansion
  • AMC Entertainment (AMC) sets Memorial Day holiday-weekend records for admissions revenue, food and beverage revenue, and total revenue, on the way to AMC’s biggest revenue weekend so far in 2025
  • Ardent Health Partners (ARDT) updates name to Ardent Health, Inc; effective June 3, 2025
  • AstraZeneca's (AZN) Imfinzi recommended for approval in the EU by CHMP as first and only perioperative immunotherapy for muscle-invasive bladder cancer
  • ATS (ATS) Announces Settlement with EV Customer, Preliminary Fourth Quarter 2025 Results and Fourth Quarter Earnings Call
  • Bank of Nova Scotia (BNS) announces intention to repurchase up to 20 million of its common shares; announced an increase to the quarterly dividend by 4 cents to $1.10/share
  • BeiGene (ONC), a company that will change its name to BeOne Medicines, announced that the CHMP of the EMA issued a positive opinion recommending approval of TEVIMBRA (tislelizumab), in combination with gemcitabine and cisplatin, for the first-line treatment of adult patients with recurrent, not amenable to curative surgery or radiotherapy, or metastatic NPC
  • Biogen (BIIB) announces collaboration to develop select novel RNAi therapies
  • BioSig Technologies (BSGM) signs definitive share exchange agreement with Streamex Exchange Corp. to launch first-mover real-world asset tokenization company bringing commodity markets on-chain
  • BYD (BYDYY) offers discounts, according to the Wall Street Journal
  • Chevron (CVX): The Trump administration will give Chevron a narrow license in Venezuela, according to Bloomberg
  • Coeur Mining (CDE) has authorized a $75 million share repurchase program, effective through May 31, 2026
  • Emergent BioSolutions (EBS) dislclosed litigation updates
  • Ericsson (ERIC) in consortium to develop Swedish AI factory
  • EyePoint Pharmaceuticals (EYPT) completes enrollment in pivotal phase 3 LUGANO Trial of DURAVYU for treatment of wet age-related macular degeneration
  • Fortuna Silver Mines (FSM) drills 8.6 g/t gold over 13.6 meters at Southern Arc prospect
  • Flowco Holdings (FLOC) COO John Gatlin gave notice of his intent to resign as an officer of the Company effective as of the close of business on August 1, 2025
  • Goldman Sachs (GS) CEO David Solomon receiving criticism from partners, according to Wall Street Journal
  • HSBC (HSBC) aiming to eliminate dozens of analyst jobs, according to Bloomberg
  • Ituran Location (ITRN) and Control receives new OEM Agreement with Stellantis (STLA) in South America
  • Littelfuse (LFUS) announces that Abhi Khandelwal has been appointed Executive Vice President and Chief Financial Officer, effective June 18, 2025
  • Lockheed Martin (LMT) awarded a $214.4 mln US Army contract
  • MindMed (MNMD) announces the appointment of Brandi L. Roberts as its Chief Financial Officer, effective June 2, 2025
  • Moderna (MRNA) submits application to the FDA for review of its Spikevax 2025-2026 formula, targeting the SARS-CoV-2 variant LP.8.1
  • NexGen Energy (NXE) announces best assays from Patterson Corridor East in Hole RK-25-232
  • Nvidia (NVDA) aims to introduce less expensive Blackwell chip in China, according to Reuters
  • Organigram Global (OGI) announces CEO succession plan; Beena Goldenberg, CEO to retire at the end of the Company’s fiscal year
  • Parsons (PSN) awarded a $169.4 mln US Army contract for design and construction of a new ammonium nitrate solution tank farm facility
  • Permian Basin Royalty Tr. (PBT) files second amended petition against Blackbeard Operating
  • Petrobras (PBR) clarifies negotiations with the State of Rio de Janeiro to refinance debts
  • Pony AI (PONY) partners with Dubai RTA to accelerate autonomous mobility in the Middle Eastern Metropolis
  • Portland Gen Elec (POR) filed a notice under Oregon law with the Oregon Public Utilities Commission (OPUC) of its intent to submit a regulatory application for approval of a holding company reorganization
  • Prothena (PRTA) Announces Phase 3 AFFIRM-AL Clinical Trial for Birtamimab in Patients with AL Amyloidosis Did Not Meet Primary Endpoint
  • Radware (RDWR): Leading Proxy Advisory Firm Glass Lewis Recommends Radware Stockholders Vote in Favor of Compensation Proposal for Chief Executive Officer
  • Rocket Pharmaceuticals (RCKT) provides update on phase 2 clinical trial of RP-A501 for Danon Disease
  • Samsung (SSNLF) aiming to invest in Exo, according to Bloomberg
  • SAP SE (SAP): Capgemini, Mistral AI and SAP combine forces to offer secure, scalable gen AI-powered solutions for regulated industries
  • Sasol (SSL) settles legal disputes with Transnet SOC
  • SoftBank (SFTBY) founder Masayoshi Son interested in creating joint US-Japan sovereign wealth fund, according to Financial Times
  • Southwest (LUV) will charge $35 for first checked bag starting Wednesday, according to the Wall Street Journal
  • Strategy (MSTR) announces ATM and BTC Activity Updates
  • Swvl (SWVL) announced the renewal of its contract during January 2025 with a large enterprise in essential services
  • Tandem Diabetes Care (TNDM) discloses in SEC filing that it and Roche (RHHBY) entered into a settlement, mutual release, and cross-license agreement to resolve all patent disputes related to the company's t:slim X2 pump
  • Tesla (TSLA) CEO Elon Musk says "Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on ??/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out"
  • Tesla (TSLA) Europe sales fall in April, according to Bloomberg
  • Toyota (TM) will introduce its own vehicle operating system in March, according to Financial Times
  • Trump Media & Technology (DJT) aiming to raise $3 bln to spend on cryptocurrencies, according to Financial Times
  • United Airlines (UAL) and Flight Attendants union reach labor agreement
  • Universal Technical Institute (UTI): President Trump says he considering taking away $3 bln in grants from Harvard and giving it to trade schools
  • USA Rare Earth (USAR) and PolarStar Innovations sign MOU for delivery of U.S.-made neo magnets
  • WeRide (WRD) launches Robotaxi and more autonomous driving products in Saudi Arabia
  • Yum! Brands' (YUM) KFC aiming to invest $2 bln in UK and Ireland, according to Reuters

• Upgrades:
  • BellRing Brands (BRBR) upgraded to Buy from Neutral at DA Davidson, tgt $85
  • Block (XYZ) upgraded to Outperform from Neutral at BNP Paribas Exane, tgt $72
  • Commercial Metals (CMC) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $50
  • Cummins (CMI) upgraded to Buy from Neutral at Goldman, tgt $431
  • Envista (NVST) upgraded to Outperform from Neutral at Robert W. Baird, tgt $23
  • Haleon (HLN) upgraded to Outperform from Neutral at BNP Paribas Exane, tgt $13.40
  • Hormel Foods (HRL) upgraded to Neutral from Underperform at BNP Paribas Exane, tgt $30
  • Kyverna Therapeutics (KYTX) upgraded to Buy from Neutral at H.C. Wainwright, tgt $5
  • LifeStance (LFST) upgraded to Buy from Neutral at UBS, tgt $8.50
  • Southwest (LUV) upgraded to Hold from Underperform at Jefferies, tgt $33
  • Terex (TEX) upgraded to Buy from Neutral at Goldman Sachs, tgt $60
  • Wingstop (WING) upgraded to Buy from Hold at Truist, tgt $400
• Downgrades:
  • AES Corp. (AES) downgraded to Hold from Buy at Argus
  • Atmus Filtration (ATMU) downgraded to Neutral from Buy at Goldman, tgt $39
  • CoreWeave (CRWV) downgraded to Equal Weight from Overweight at Barclays, tgt $100
  • Deckers Outdoor (DECK) downgraded to Neutral from Outperform at KGI Securities, tgt $110
  • Globus Medical (GMED) downgraded to Neutral from Buy at BTIG Research
  • Jack in the Box (JACK) downgraded to Hold from Buy at Truist, tgt $22
  • KBR (KBR) downgraded to Neutral from Buy at Goldman, tgt $55
  • Leidos (LDOS) downgraded to Neutral from Outperform at Robert W. Baird, tgt $163
  • Miniso (MNSO) downgraded to Hold from Buy at Deutsche Bank, tgt $20
    
  • National Storage (NSA) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $30
  • Prime Medicine (PRME) downgraded to Neutral from Buy at Citigroup, tgt $1.50
  • Prothena (PRTA) downgraded to Hold from Buy at Jefferies, tgt $6
  • Prothena (PRTA) downgraded to Perform from Outperform at Oppenheimer
  • Unity Biotechnology (UBX) downgraded to Neutral from Buy at H.C. Wainwright, tgt $2
  • U.S. Steel (X) downgraded to Peer Perform from Outperform at Wolfe Research
  • U.S. Steel (X) downgraded to Hold from Buy at Jefferies, tgt $55
• Others:
  • Camp4 Therapeutics (CAMP) initiated with an Outperform at Wedbush, tgt $8
  • DLocal (DLO) initiated with a Buy at Citigroup, tgt $14.60
  • Expro (XPRO) initiated with an Overweight at Wells Fargo, tgt $12
  • Niagen Bioscience (NAGE) initiated with a Buy at Canaccord Genuity, tgt $13
  • SanDisk (SNDK) initiated with a Buy at The Benchmark Company , tgt $58
  • SoundHound (SOUN) initiated with an Overweight at Piper Sandler, tgt $12
  • Tarsus Pharmaceuticals (TARS) assumed with a Buy at H.C. Wainwright, tgt $72

• Econ Data (Wednesday):
  • 07:00 ET: MBA Mortgage Applications Index
  • 14:00 ET: FOMC Minutes for May 6-7 meeting
• 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