After Hours Report

NVIDIA (NVDA 139.18, +4.37, +3.2%) was primed to be the center of the stock market's attention today after it delivered some impressive quarterly results and guidance following yesterday's close. Market participants, though, were forced to divert their attention to a couple of legal rulings regarding the Trump administration's tariff measures and a spate of weaker-than-expected economic data that stirred some growth concerns.

Specifically, the U.S. Court of International Trade got things started with a ruling that President Trump does not have the legal authority to enforce reciprocal tariffs. The White House did not waste any time appealing that ruling, and it became known late in today's trade that the U.S. Court of Appeals granted the White House's request to temporarily reinstate the tariffs.

That ruling keeps the 10% global tariff, the 30% China tariff, and the 25% Canada/Mexico tariffs in place. The court gave the Trump administration until June 9 to respond. What both rulings did, though, was inject more uncertainty into the market that kept overall buying and selling efforts in check.

The same can be said for the second estimate for Q1 GDP, which showed a downward revision for personal spending; jobless claims data that showed the highest level for continuing jobless claims since November 13, 2021; and a 6.3% decline in pending home sales for April.

That collection of reports helped fuel a stark reversal in the Treasury market, which saw the 10-yr note yield and 30-yr bond yield hit 4.53% and 5.03%, respectively, in the overnight trade, with some deficit angst acting as a selling catalyst (the administration has been highlighting the collection of tariffs as a resource for paying down the national debt).

The 10-yr note yield settled today's session at 4.43%, while the 30-yr bond yield backed up to 4.93%, further fortified by a $44 billion 7-yr note auction that was met with strong demand. The U.S. Dollar Index was down 0.5% to 99.39 after being up 0.7% in the overnight trade.

The push lower in yields was not met with a concomitant surge in stock prices, given that growth concerns were behind much of the improvement in the Treasury market. Those concerns were augmented by Best Buy (BBY 66.32, -5.20, -7.3%) cutting its FY26 guidance and Dow component, Salesforce (CRM 266.92, -9.11, -3.3%), posting earnings results that were accompanied by a deceleration in growth for many of its core cloud segments.

Still, NVIDIA's results, and the AI growth optimism that followed them, offered some influential support for the broader market. The S&P 500 traded down to 5,873 at its worst level of the day, but buyers were quick to show up to help it regain a posture above the 5,900 level where it closed.

Ten of the 11 S&P 500 sectors were higher, but none were up more than 1.0%. The real estate sector (+0.9%) led that pack, but it was the information technology sector (+0.6%) that did the heavy lifting. The communication services sector (-0.3%) was the only sector to finish with a loss.

While today's gains were modest, breadth figures convey an otherwise positive bias. Advancers led decliners by a better than 2-to-1 margin at the NYSE and by a nearly 13-to-9 margin at the Nasdaq.

• S&P 500: +0.5% YTD
• Nasdaq: -0.7% YTD
• DJIA: -0.8% YTD
• S&P 400: -3.5% YTD
• Russell 2000: -7.0% YTD

Reviewing today's data:

• Initial jobless claims for the week ending May 24 increased by 16,000 to 240,000 (Briefing.com consensus 230,000), while continuing jobless claims for the week ending May 17 increased by 26,000 to 1.919 million, hitting their highest level since November 13, 2021.
  • The key takeaway from the report was the tandem jump in initial and continuing jobless claims, which denotes some increased layoff activity and some increased difficulty in finding a new job after being laid off.
• The second estimate for the Q1 GDP report showed a 0.2% decline in real GDP (Briefing.com consensus -0.3%) versus the 0.3% decline reported in the advance estimate. The GDP Price Deflator was unrevised at 3.7% (Briefing.com consensus 3.7%) following a 2.3% increase in Q4.
  • The key takeaway from the report is that it featured a downward revision to personal spending to 1.2% from 1.8% in the advance estimate, underscoring how the tariff uncertainty and inflation angst tempered consumer spending activity.
• April Pending Home Sales -6.3% (Briefing.com consensus -1.1%) versus downwardly revised 5.5% increase (from 6.1%) for March

Overseas:

• Europe: DAX -0.3%, FTSE -0.1%, CAC -0.1%
• Asia: Nikkei +1.9%, Hang Seng +1.4%, Shanghai +0.7%

Commodities:

• Crude Oil -0.87 @ 60.97
• Nat Gas -0.04 @ 3.52
• Gold +49.00 @ 3343.70
• Silver +0.26 @ 33.43
• Copper unch @ 4.67

After-Hours Spotlight:

• Ambarella (AMBA) beats by $0.03, beats on revs; guides Q2 revs above consensus... AMBA up 2.9%
• American Eagle (AEO) misses by $0.04, reports revs in-line; guides Q2 revs below consensus... AEO down 7.6%
• Cooper (COO) beats by $0.03, reports revs in-line; guides FY25 EPS above consensus, revs in-line... COO down 5.6%
• Costco (COST) beats by $0.04, reports revs in-line, adjusted comparable sales of +8.0%... COST up 0.3%
• Dell (DELL) misses by $0.15, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs in-line... DELL up 4.9%
• Elastic (ESTC) beats by $0.10, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY26 EPS above consensus, revs below consensus... ESTC down 11.3%
• Gap (GAP) beats by $0.06, beats on revs, comps +2%; guides Q2 revs in-line; reaffirms FY26 revs guidance... GAP down 17.4%
• Marvell (MRVL) beats by $0.01, reports revs in-line; guides Q2 EPS in-line, revs in-line... MRVL down 1.6%
• Microchip (MCHP) raises low end of Q1 EPS and revenue guidance ranges... MCHP up 2.4%
• NetApp (NTAP) beats by $0.03, reports revs in-line; guides JulQ EPS below consensus, revs in-line; guides FY26 EPS in-line, revs in-line... NTAP down 5.4%
• PagerDuty (PD) beats by $0.05, reports revs in-line; guides Q2 EPS below consensus, revs in-line; guides FY26 EPS above consensus, revs below consensus... PD down 5.8%
• UiPath (PATH) beats by $0.01, beats on revs; guides Q2 revs above consensus; guides FY26 revs above consensus... PATH up 11.2%
• Ulta Beauty (ULTA) beats by $0.89, beats on revs, comparable sales of +2.9%; raises FY26 EPS guidance, slightly raises upper end of revenue guidance range, raises upper end of comp guidance range... ULTA up 8.3%
• Zscaler (ZS) beats by $0.08, beats on revs; guides JulQ EPS above consensus, revs below consensus; names new CFO... ZS up 4.7%

Fair Value for Friday, May 30:

• S&P 500: 5,924
• Nasdaq 100: 21,413
• DJIA: 42,270

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

• Earnings/Guidance (Full Earnings Calendar):
  • Agilent (A) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY25 EPS in-line, revs in-line
  • American Woodmark (AMWD) beats by $0.19, misses on revs
  • ATS Corp (ATS) beats by CAD 0.03; beats on revs
  • Bath & Body Works (BBWI) beats by $0.07, misses on revs; guides Q2 EPS below consensus, revs below consensus; reaffirms FY26 EPS guidance, revs guidance
  • Best Buy (BBY) beats by $0.06, reports revs in-line; lowers FY26 EPS, revenue, and comp guidance
  • C3.ai (AI) beats by $0.04, reports revs in-line; guides Q1 revs in-line; guides FY26 revs in-line
  • Caleres (CAL) misses by $0.14, misses on revs; suspends guidance
  • e.l.f. Beauty (ELF) beats by $0.06, beats on revs; Not providing FY26 outlook due to wide range of potential outcomes related to tariffs, announces agreement to acquire rhode
  • Foot Locker (FL) misses by $0.02, misses on revs
  • Hamilton Lane (HLNE) beats by $0.04, beats on revs
  • Hormel Foods (HRL) beats by $0.01, reports revs in-line; lowers FY25 EPS guidance; raises FY25 revenue guidance
  • HP Inc. (HPQ) misses by $0.09, reports revs in-line; guides Q3 EPS below consensus; guides FY25 EPS below consensus
  • Immunovant Sciences (IMVT) beats by $0.07; Current cash balance provides runway for announced indications through GD readout expected in 2027
  • Kohl's (KSS) beats by $0.12, reports revs in-line; reaffirms FY26 EPS guidance, revs guidance
  • Li Auto (LI) misses by RMB0.40, beats on revs; guides Q2 revs below consensus
  • nCino (NCNO) reports EPS in-line, beats on revs; guides Q2 EPS below consensus, revs in-line; guides FY26 EPS in-line, revs above consensus
  • Nordson (NDSN) beats by $0.06, beats on revs; guides Q3 EPS in-line, revs in-line
  • Nutanix (NTNX) beats by $0.04, beats on revs; guides Q4 revs in-line; guides FY25 revs above consensus
  • NVIDIA (NVDA) beats by $0.08, beats on revs; provides Q2 revenue guidance, impacted by $8 bln loss in H20 revenue
  • Pure Storage (PSTG) beats by $0.04, beats on revs; guides Q2 revs above consensus; reaffirms FY26 revs guidance; CFO to step down
  • Royal Bank of Canada (RY) misses by CAD0.06, reports revs in-line
  • Salesforce (CRM) beats by $0.03, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus
  • SentinelOne (S) reports EPS in-line, revs in-line; guides Q2 revs below consensus; guides FY26 revs below consensus
  • SpartanNash (SPTN) misses by $0.11, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Synopsys (SNPS) beats by $0.28, reports revs in-line; guides Q3 EPS below consensus, revs in-line; guides FY25 EPS above consensus, revs in-line
  • Toyota Motor (TM) releases global sales, production results for April of 2025
  • Triumph Group (TGI) beats by $0.13, beats on revs; co previously announced it agreed to be acquired
  • Veeva Systems (VEEV) beats by $0.23, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY26 EPS above consensus, revs above consensus
• General News
  • US Court of International Trade blocks President Trump from imposing tariffs under emergency authority including 10% global tariff, 25% tariffs on Canada/Mexico and 30% China tariffs; White House will appeal this ruling
  • After court blow to tariffs, President Trump to take fight to Supreme Court, according to Bloomberg
  • President Trump could reimpose tariffs under section 122 or 232 authority despite today's court ruling. He could also ask the Supreme Court to issue an emergency stay, CNBC
  • U.S. and Iran are closing in on a broad nuclear agreement that could be reached during the next round of talks, according to CNN
  • The Trump administration suspends sales of jet engine technology to China, according to the New York Times
  • United States Congressional Joint Committee on Taxation says revised reconciliation bill that passed House will add $3.94 trillion to deficits over 10 years
  • Secretary of State Marco Rubio says "The U.S. will begin revoking visas of Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields."
  • Alcon (ALC) Announces FDA Approval of TRYPTYR (acoltremon ophthalmic solution) 0.003% for the Treatment of the Signs and Symptoms of Dry Eye Disease
  • Appian (APPN) authorizes $10 mln share repurchase program
  • Beam Therapeutics (BEAM) treatment of alpha-1 antitrypsin deficiency gets orphan status
  • Boeing (BA) at conference says China has indicated that deliveries will resume next month; says ramping up 737 out to 38/month; raises 787 production to 7/month
  • BRP Inc. (DOOO) President and CEO, Joe Boisjoli to retire by the end of the fiscal year
  • C3.ai (AI) and Baker Hughes announce a multi-year renewal and expansion of their joint venture agreement through June 2028
  • Cencora (COR): Ornella Barra informed the Company of her intent to resign from the Board effective immediately in anticipation of WBA's ownership falling below 5%
  • Chevron (CVX) will eliminate 800 Texas jobs, according to Reuters
  • Daiichi Sankyo (DSNKY): The Biologics License Application seeking accelerated approval in the U.S. for Daiichi Sankyo and Merck’s (MRK) patritumab deruxtecan based on the HERTHENA-Lung01 phase 2 trial for the treatment of adult patients with locally advanced or metastatic EGFR-mutated non-small cell lung cancer previously treated with two or more systemic therapies has been voluntarily withdrawn
  • enCore Energy Corp. (EU) receives radioactive materials license for upper Spring Creek ISR uranium project, South Texas; commences construction
  • Eton Pharmaceuticals (ETON) Announces U.S. FDA Approval for KHINDIVI™ (hydrocortisone) Oral Solution
  • General Motors (GM) CEO Mary Barra says she supports President Trump's tariffs, according to the Wall Street Journal
  • Google (GOOG, GOOGL) begins selling Pixel phones in India, according to Reuters
  • HP (HPQ) preparing to shift production out of China and increase prices amid tariff threats, according to the Wall Street Journal
  • Intellia Therapeutics (NTLA) provides update on its phase 3 studies
  • Jack In The Box (JACK) appoints Dawn Hooper as CFO, effective immediately
  • JetBlue Airways (JBLU) and United (UAL) announce Blue Sky: Unique consumer collaboration that links loyalty programs
  • Kadant (KAI) awarded $18 million in orders for wood processing systems
  • Keros Therapeutics (KROS) announces TROPOS topline data and corporate restructuring
  • Lockheed Martin (LMT) awarded a $509.8 mln modification to a previously awarded US Air Force contract
  • Moderna (MRNA) provides update on investigational pandemic influenza program
  • Neurocrine Biosciences (NBIX) presents new positive data from Phase 2 Study of NBI-1117568 in adults with schizophrenia at American Society of Clinical Psychopharmacology 2025
  • Nike (NKE) starting to increase some prices, according to the New York Post
  • NIKE (NKE): Chief Innovation Officer John Hoke to retire after 30+ year tenure, according to Bloomberg
  • Novo Nordisk (NVO) is losing control of anti-obesity market, according to the Wall Street Journal
  • Nvidia (NVDA) CEO Jensen Huang in interview says dialogue will continue with Trump administration on China restrictions, CNBC
  • ORIC Pharmaceuticals (ORIC) announces potentially best-in-class preliminary efficacy and safety data from ongoing phase 1b Trial of ORIC-944 in combination with AR inhibitors for the treatment of patients with mCRPC
  • Outdoor Holding (POWW) announces that Steve Urvan will serve as CEO and Chairman of the Board following recent closing of divestiture of ammunition manufacturing division; Also settled ongoing litigation with Mr. Urvan
  • PagSeguro Digital (PAGS) announces the launch of its third share repurchase program of up to US$ 200 million
  • Paramount (PARA) offered $15 mln to settle President Trump's lawsuit, but Mr. Trump wants more, according to the Wall Street Journal
  • Royal Bank of Canada (RY) to repurchase up to 35 million of its common shares
  • Smith Douglas Homes Corp (SDHC) announces stock repurchase program for up to $50 mln
  • Sony (SONY) financial arm spinoff will give unit capacity to raise funds, according to Reuters
  • Taysha Gene Therapies (TSHA) announces pivotal part B Trial Design Details for TSHA-102 in Rett syndrome enabled by IRSF natural history data and positive clinical data from Part A of the REVEAL adult/adolescent and pediatric trials evaluating TSHA-102
  • Terrestrial Energy (HOND) names Brian Thrasher as CFO
  • Tesla (TSLA) targeted June 12 launch of Robotaxi service in Austin, according to Bloomberg
  • Tesla (TSLA) CEO Elon Musk says "As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Trump for the opportunity to reduce wasteful spending'
  • The Metals Company (TMC) received NOAA determination granting TMC USA a priority of right to receive exploration licenses
  • VersaBank (VBNK) announces intention to realign corporate structure to standard US bank framework
  • Victoria's Secret (VSCO) stopped some operations and told employees to avoid using technology amid a "security incident", according to Bloomberg
  • Yum China (YUMC) announces US$510 mln share repurchase agreements for second half of 2025 as part of broader capital return plan

• Upgrades:
  • Claritev (CTEV) upgraded to Overweight from Neutral at Piper Sandler, tgt $44
  • eXp World (EXPI) upgraded to Buy from Neutral at DA Davidson, tgt $10.75
  • HCA Healthcare (HCA) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $385
  • Lamar Advertising (LAMR) upgraded to Buy from Neutral at Citigroup, tgt $135
  • Nvidia (NVDA) upgraded to Buy from Hold at Summit Insights
  • Southwest (LUV) upgraded to Buy from Hold at Deutsche Bank, tgt $40
  • Tenet Healthcare (THC) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $195
• Downgrades:
  • Aspen Aerogels (ASPN) downgraded to Equal Weight from Overweight at Barclays, tgt $7
  • Chain Bridge Bancorp (CBNA) downgraded to Neutral from Overweight at Piper Sandler, tgt $29
  • Cleveland-Cliffs (CLF) downgraded to Hold from Buy at Jefferies, tgt $6
  • GE Vernova (GEV) downgraded to Hold from Buy at Jefferies, tgt $517
  • InflaRx (IFRX) downgraded to Outperform from Strong Buy at Raymond James, tgt $2
  • Paramount (PARA) downgraded to Neutral from Buy at Citigroup, tgt $12
  • Salesforce (CRM) downgraded to Sector Perform from Outperform at RBC Capital, tgt $275
  • Savara (SVRA) downgraded to Neutral from Buy at H.C. Wainwright, tgt $2
  • SentinelOne (S) downgraded to Neutral from Buy at BofA Securities, tgt $21
  • SentinelOne (S) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $18
  • Starbucks (SBUX) downgraded to Hold from Buy at TD Cowen, tgt $90
  • WillScot (WSC) downgraded to Market Perform from Outperform at William Blair
• Others:
  • BioNTech (BNTX) initiated with a Neutral at Goldman, tgt $110
  • DBV Technologies (DBVT) reinstated with a Sell at Goldman, tgt $7.25
  • Dyne Therapeutics (DYN) initiated with an Outperform at Evercore ISI, tgt $46
  • Equity Lifestyle (ELS) initiated with an Equal Weight at Barclays, tgt $70
  • HP Inc. (HPQ) initiated with a Neutral at KGI Securities, tgt $25
  • Kellanova (K) reinstated with a Neutral at Citigroup, tgt $83.50
  • National Grid (NGG) initiated with an Outperform at BNP Paribas Exane, tgt $80.40
  • Pursuit (PRSU) initiated with a Buy at Stifel, tgt $38
  • Steris (STE) initiated with a Hold at Jefferies, tgt $263
  • Sun Communities (SUI) initiated with an Overweight at Barclays, tgt $141
  • Unilever (UL) initiated with an Outperform at BNP Paribas Exane, tgt $73
  • USA Rare Earth (USAR) initiated with a Buy at Roth Capital, tgt $15

• Econ Data (Friday):
  • 08:30 ET: April Adv. Intl. Trade in Goods (prior -$162.0B), Retail Inventories (prior -0.1%), and Wholesale Inventories (prior 0.5%)
  • 08:30 ET: April Personal Income (Briefing.com consensus 0.3%; prior 0.5%), Personal Spending (Briefing.com consensus 0.2%; prior 0.7%), PCE Price Index (Briefing.com consensus 0.1%; prior 0.0%), and Core-PCE Price Index (Briefing.com consensus 0.1%; prior 0.0%)
  • 09:45 ET: May Chicago PMI (Briefing.com consensus 45.0; prior 44.6)
  • 10:00 ET: May Univ. of Michigan Consumer Sentiment - Final (Briefing.com consensus 50.8; prior 50.8)
• 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