After Hours Report
The S&P 500 (+0.4%) finished Thursday with a modest gain, slightly outpacing the Nasdaq (+0.2%) and the Dow (+0.2%) while small caps lagged, sending the Russell 2000 lower by 0.4%.
The modestly higher finish in the large cap indices was a reflection of continued resilience to selling efforts, as participants remained fearful of missing out on further gains after a big rally off the April low.
Equities saw some early pressure stemming from President Trump's toughening stance on trade and some renewed geopolitical concerns surrounding the Middle East, but that was offset by rate-cut friendly economic data.
President Trump said that letters with trade term offers will be sent to different countries. These offers will not leave much room for negotiation since he added that they will come with a "take it or leave it" caveat.
There was also some focus on the growing tensions in the Middle East after yesterday's report that U.S. Embassy staff in Baghdad received authorization to leave their post. President Trump confirmed the report last evening, and today, ABC News reported that Israel is considering military action against Iran with logistical support from the U.S.
Economic data released today included a cooler-than-expected PPI report for May (0.1%; Briefing.com consensus 0.2%) and a jobless claims report, which showed a big jump in Continuing Claims (+54,000 to 1.956 million) to levels not seen since late 2021.
Today's data strengthened the market's rate cut expectations for September, and it played a part in the market's opening rise off lows. Eight sectors finished the day in positive territory with top-weighted technology (+1.0%) finishing only behind the lightly-weighted utilities sector (+1.3%).
The technology sector received daylong support from fifth-largest component Oracle (ORCL 199.85, +23.47, +13.3%), which soared to a fresh record after the company beat Q3 expectations and issued in-line guidance for Q4. Chipmakers were among the outperformers in early trade, but the PHLX Semiconductor Index (+0.3%) gave back the bulk of its early gain, finishing behind the broader market.
On the downside, the communication services sector (-0.6%) was the worst performer, though it is still one this month's leaders, having climbed 3.2% since the end of May versus a 2.3% month-to-date gain in the S&P 500. Industrials (-0.2%) also lagged with Boeing (BA 203.75, -10.25, -4.8%) weighing the group down after an Air India 787 crashed shortly after take-off in Ahmedabad.
Treasuries ended with solid gains, as the 10-yr note and shorter tenors essentially finished where they started while the long bond outperformed with help from today's strong $22 bln 30-yr bond sale. The 10-yr yield fell six basis points to 4.36%, ending just below its 50-day moving average (4.369%).
Reviewing today's economic data:
- The Producer Price Index for final demand increased 0.1% month-over-month in May (Briefing.com consensus 0.2%) after decreasing a revised 0.2% (from -0.5%) in April. The Producer Price Index for final demand, less foods and energy, also increased 0.1% month-over-month (Briefing.com consensus 0.3%), while the April reading was revised up to -0.2% from -0.4%. On a year-over-year basis, the index for final demand was up 2.6%, versus an upwardly revised 2.5% in April (from 2.4%), while the index for final demand, less foods and energy, was up 3.0%, versus an upwardly revised 3.2% (from 3.1%) in April.
- The key takeaway from the report is that the positive impact of a cooler-than-expected reading is largely being offset by upward revisions to readings from April. That said, the year-over-year Core PPI rate decelerated to 3.0% from 3.2%, which is a positive development.
- Initial jobless claims for the week ending June 7 hit 248,000 (Briefing.com consensus 250,000), unchanged from the prior week's upwardly revised level (from 247,000). Continuing jobless claims for the week ending May 31 increased by 54,000 to 1.956 million from last week's downwardly revised 1.902 million (from 1.904 million).
- The key takeaway from the report is that continuing claims reached a level not seen since late 2021, which will invite some questions about the strength of the labor market since laid-off workers are having an increasingly difficult time finding new jobs quickly.
Tomorrow's data will be limited to the 10:00 ET release of the preliminary reading of the University of Michigan's Consumer Sentiment Index for June (Briefing.com consensus 53.0; prior 52.2).
- S&P 500 +2.8% YTD
- Nasdaq Composite +1.8% YTD
- Dow Jones Industrial Average +1.0% YTD
- S&P Midcap 400 -2.2% YTD
- Russell 2000 -4.1% YTD
Overseas:
- Europe: DAX -0.7%, FTSE +0.2%, CAC -0.1%
- Asia: Nikkei -0.7%, Hang Seng -1.4%, Shanghai flat
Commodities:
- Crude Oil -0.17 @ 68.04
- Nat Gas -0.02 @ 3.49
- Gold +58.00 @ 3402.20
- Silver +0.03 @ 36.30
- Copper +0.02 @ 4.84
After-Hours Spotlight:
- Adobe (ADBE) beats by $0.09, beats on revs; guides Q3 EPS above consensus, revs in-line; raises FY25 EPS and revenue guidance... ADBE up 0.1%
- DraftKings (DKNG) will implement a 50-cent transaction fee on all mobile and online bets placed in Illinois through DraftKings Sportsbook, effective September 1... DKNG up 0.2%
- RH (RH) beats by $0.22, misses slightly on revs; guides Q2 revs below consensus; reaffirms FY26 revs guidance; delaying launch of new concept... RH up 18.3%
Fair Value for Friday, June 13:
- S&P 500: 6,049
- Nasdaq 100: 21,931
- DJIA: 42,990
For a full rundown of today's market and after hours developments, see Live In Play
- Earnings/Guidance (Full Earnings Calendar):
- America's Car-Mart (CRMT) beats by $0.40, beats on revs
- Cardinal Health (CAH) raises FY25 non-GAAP diluted EPS guidance; Establises preliminary FY26 non-GAAP diluted EPS guidance in-line
- Equinox Gold (EQX) provides updated 2025 gold production and cost guidance
- Hippo (HIPO) introduces 2028 financial targets and enters into agreement with The Baldwin Group to form a strategic partnership
- Lovesac (LOVE) beats by $0.06, reports revs in-line; guides Q2 revs in-line; guides FY26 EPS in-line, revs in-line
- Oracle (ORCL) beats by $0.06, beats on revs; issues in-line EPS and revenue guidance for Q1
- Oxford Industries (OXM) reports EPS in-line, beats on revs; guides Q2 EPS below consensus, revs in-line; lowers FY26 EPS and revenue guidance
- Simulations Plus (SLP) issues downside revenue guidance for Q3 and FY25
- General News
- China affirmed trade deal announced by the Trump administration yesterday, according to Reuters
- Israel ready to launch operation in Iran, according to CBS News
- President Trump tells reporters that he is willing to extend July 8 tariff deadline, but he doesn't think it would be necessary; says "very happy" with China trade agreement; says at some point, possibly within two weeks, he would send letters to trading partners saying "take this deal or leave it", similar what he did with EU
- President Trump signs executive orders on drones, flying cars, and supersonics
- Health secretary RFK Jr. names 8 new members for vaccine panel, according to STAT News
- Democratic socialist candidate Zohran Mamdani leads Andrew Cuomo in Democratic primary race for NYC Mayor, according to Politico
- ADC Therapeutics (ADCT) Announces Updated Data from LOTIS-7 Clinical Trial Presented at the European Hematology Association 2025 Congress
- ADC Therapeutics (ADCT) also announced it will advance its preclinical exatecan-based ADC targeting prostate-specific membrane antigen and will discontinue early development efforts for the remaining preclinical programs in solid tumors; plans to shut down its UK facility and reduce the global workforce across functions by approximately 30%
- Airbus (EADSY) CEO Christian Scherer says he is "cautiously hopeful" about 2025 delivery targets, according to Reuters
- Allied Gaming (AGAE) has filed a lawsuit in the United States District Court for the Central District of California, against Knighted Pastures, LLC and its Managing Partner, Roy Choi, as well as Naomi Choi, Mr. Choi’s mother, and Yiu-Ting So, a long time business partner of Mr. Choi
- Applied Optoelectronics (AAOI) announced the first volume shipment of high-speed data center transceivers to a recently re-engaged major hyperscale data center customer
- Autolus Therapeutics (AUTL) Presents Long-Term Follow Up from the FELIX Study Demonstrating Obe-Cel's Potential for Long-Term Remission in R/R B-ALL at the 2025 European Hematology Association (EHA) Congress
- BeOne Medicines (ONC) Showcases Breakthrough Data in CLL and MCL at EHA 2025
- Biogen (BIIB) reports Dapirolizumab Pegol Phase 3 Data in SLE presented at the Annual EULAR show improvement in fatigue and reduction in disease activity
- Boeing (BA): Air India confirms that flight AI171, from Ahmedabad to London Gatwick, was involved in an accident today after take-off
- Bristol-Myers (BMY) presents data across targeted protein degradation research including CELMoD agents and BCL6 Ligand Directed Degrader at EHA 2025
- Brookdale (BKD) files investor presentation highlighting Board's effective oversight of clear, compelling strategy to deliver long-term shareholder value
- Capital Southwest Corp. (CSWC) transitions to monthly dividends
- Cenovus Energy (CVE) restores full production at Christina Lake
- Cisco (CSCO): Saudi Arabia taps company and Advanced Micro Devices (AMD) for AI cloud project, according to The Information
- CSX (CSX) ratifies labor deal with locomotive engineers
- Disc Medicine (IRON) Presents Positive Clinical Data Updates Across Portfolio at the European Hematology Association (EHA) 2025 Annual Congress
- Erie Indemnity (ERIE) identified unusual network activity on June 7, which the Company determined to be the result of an information security event
- Flexsteel Ind (FLXS) announces 17% increase in quarterly dividend to $0.20/share
- Fortrea (FTRE) names Anshul Thakral as Fortrea’s CEO, effective August 4
- General Dynamics (GD) awarded a $706.5 mln US Army contract
- Innoviva (INVA) subsidiary, Innoviva Specialty Therapeutics, announces that the U.S. FDA has granted Priority Review for the New Drug Application for zoliflodacin, an investigational first-in-class, single dose, spiropyrimidinetrione oral antibiotic for the treatment of uncomplicated gonorrhea in adults and pediatric patients 12 years and older
- Matador Resources (MTDR) & and San Mateo Midstream announce leadership promotions
- Mesoblast (MESO) receives Accelerated Approval Pathway for Revascor from FDA
- Microsoft (MSFT) works on developing a version of its Copilot AI tool for the Department of Defense, according to Business Insider
- Mizuho Financial (MFG) announces that the claims on Marelli Holdings and certain of its subsidiaries held by Mizuho Bank, Ltd., a subsidiary of MHFG, may be delayed or become irrecoverable
- Molecular Partners (MOLN) presents positive data from ongoing Phase 1/2a trial of MP0533 in AML at EHA 2025
- Newsmax (NMAX) announces appointment of Ambassador Paula J. Dobriansky to its Board of Directors; Also issues FY25 revenue guidance
- NexGen Energy (NXE) announces regulatory approval of 2025 Site Program at Rook I Property
- Novartis (NVS) reports Fabhalta shows statistically significant and clinically meaningful improvements in hemoglobin in new population of patients with PNH
- Nurix Therapeutics (NRIX) presents updated positive data demonstrating durable, deepening responses in ongoing clinical trial of Bexobrutideg (NX-5948) monotherapy in patients with relapsed/refractory chronic lymphocytic leukemia and waldenström macroglobulinemia
- Nvidia (NVDA) and Samsung (SSNLF) plans to invest in Skild AI, according to Bloomberg
- Oshkosh (OSK) awarded a $792 mln modification to US Army contract
- Salesforce.com (CRM) blocked AI competitors from using Slack data, according to The Information
- Schrodinger (SDGR) announces encouraging initial clinical data from its ongoing Phase 1, open-label, dose-escalation study of SGR-1505 in patients with relapsed/refractory B-cell malignancies
- Sempra Energy (SRE) executes a non-binding heads of agreement with JERA Co. for a 20-year sale and purchase agreement for liquefied natural gas offtake of 1.5 million tonnes per annum on a free on board basis from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas
- Syndax Pharmaceuticals (SNDX) announces new data from the pivotal AUGMENT-101 trial of Revuforj, the Company’s first-in-class menin inhibitor, in patients with relapsed or refractory mutant NPM1 and NUP98-rearranged (NUP98r) acute myeloid leukemia
- Target (TGT) increases quarterly dividend to $1.14 per common share from the prior quarterly dividend of $1.12
- Teleflex (TFX): New prospective cohort study reporting the efficacy of arrow chlorhexidine-impregnated central venous catheters demonstrates reduced infection rates among ICU patients
- US Foods (USFD) awarded a max $188 mln Defense Logistics Agency contract for full-line food and beverage items
- Xpeng (XPEV) developing autonomous driving chips for Volkswagen (VWAGY) cars, according to FT
- Upgrades:
- Datadog (DDOG) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $150
- Tapestry (TPR) upgraded to Buy from Hold at TD Cowen, tgt $100
- TransAlta (TAC) upgraded to Buy from Hold at Jefferies
- Downgrades:
- Americold Realty (COLD) downgraded to Neutral from Outperform at BNP Paribas Exane, tgt $18
- CF Industries (CF) downgraded to Peer Perform from Outperform at Wolfe Research
- Conagra Brands (CAG) downgraded to Underperform from Neutral at BofA Securities, tgt $20
- Conmed (CNMD) downgraded to Hold from Buy at Needham
- GAP Airports (PAC) downgraded to Underperform from Neutral at BofA Securities
- Lineage (LINE) downgraded to Underperform from Neutral at BNP Paribas Exane, tgt $42
- Ouster (OUST) downgraded to Hold from Buy at WestPark Capital
- Ouster (OUST) downgraded to Neutral from Overweight at Cantor Fitzgerald, tgt $19
- The Bancorp (TBBK) downgraded to Market Perform from Outperform at Keefe Bruyette, tgt $65
- United Natural Foods (UNFI) downgraded to Neutral from Buy at Northcoast
- Venture Global (VG) downgraded to Neutral from Buy at UBS, tgt $18
- Others:
- Affirm (AFRM) initiated with an Equal Weight at Stephens, tgt $69
- AngloGold Ashanti (AU) initiated with a Buy at Roth Capital, tgt $52
- Celsius Holdings (CELH) resumed with a Buy at Stifel, tgt $47
- Connect Biopharma (CNTB) initiated with a Buy at H.C. Wainwright, tgt $7
- Freshpet (FRPT) resumed with a Buy at Stifel, tgt $90
- Gambling.com (GAMB) initiated with a Buy at Texas Capital, tgt $17
- Genius Sports (GENI) initiated with a Buy at Texas Capital, tgt $14
- Harrow (HROW) initiated with a Buy at BTIG Research, tgt $62
- LendingClub (LC) initiated with an Overweight at Stephens, tgt $15
- Modine (MOD) initiated with an Overweight at KeyBanc, tgt $125
- Monster Beverage (MNST) resumed with a Buy at Stifel, tgt $72
- Open Lending (LPRO) initiated with an Equal Weight at Stephens, tgt $2.50
- Oportun Financial (OPRT) initiated with an Overweight at Stephens, tgt $10
- OppFi (OPFI) initiated with an Equal Weight at Stephens, tgt $14.50
- Pagaya (PGY) initiated with an Overweight at Stephens, tgt $22
- Prairie Operating (PROP) initiated with a Buy at Roth Capital, tgt $8
- QXO (QXO) initiated with an Outperform at Robert W. Baird, tgt $32
- SoFi Technologies (SOFI) initiated with an Overweight at Stephens, tgt $20
- Torrid (CURV) initiated with a Neutral at BTIG Research
- Tvardi Therapeutics (TVRD) initiated with an Overweight at Piper Sandler, tgt $78
- Upstart (UPST) initiated with an Equal Weight at Stephens, tgt $55
- Econ Data (Friday):
- 10:00 ET: June Univ. of Michigan Consumer Sentiment - Prelim (Briefing.com consensus 53.0; prior 52.2)
- Earnings:
- Monday (June 9)
- Pre-Market: CVGW
- After-Hours: CASY
- Pre-Market: ASO CNM SJM UNFI
- After-Hours: PLAY GME GTLB SFIX
- Wednesday (June 11)
- Pre-Market: CHWY SAIL VSCO
- After-Hours: ORCL OXM
- Pre-Market: CHWY SAIL VSCO
- Thursday (June 12)
- Pre-Market: LOVE
- After-Hours: ADBE RH
- Friday (June 13)
- Pre-Market: None
- After-Hours: None
- Monday (June 9)
