After Hours Report

The stock market got hit with a few jabs early, but once again showed that it has plenty of fight in it, with the mega-cap stocks acting as the enforcer. Meta Platforms (META 670.90, +23.41, +3.6%), which is reportedly planning full, AI-generated ads by 2026, according to The Wall Street Journal, and NVIDIA (NVDA 137.38, +2.25, +1.7%), which remains the go-to AI play, were today's ringleaders.

The Vanguard Mega-Cap Growth ETF (MGK) advanced 0.9% versus the Invesco S&P 500 Equal-Weighted ETF (RSP), which was up 0.1% for the day.

The early hits flowed from the weekend news that the U.S. will be doubling the tariff rate for steel and aluminum imports to 50%, effective Wednesday, and China's pugilist stance that it was the U.S. that violated the preliminary trade agreement reached in Geneva.

That combination put the market on its heels, contemplating the potential for higher inflation stemming not only from the tariff increase but also from the potential for ongoing supply chain disruptions. 

The market cap-weighted S&P 500 declined 0.9% shortly after the open but just as quickly started to rebound following the release of a better-than-feared ISM Manufacturing PMI for May at 10:00 a.m. ET and a CNBC report that President Trump and President Xi are likely to speak this week. Later, Reuters, citing a U.S. Trade Representative draft letter, carried a report saying the Trump administration is seeking best offers from countries by Wednesday for trade negotiations.

By and large, it was a one-way trade higher from the time of the ISM report, with the S&P 500 and Nasdaq Composite stairstepping their way to successive highs. Both basically closed at their highs for the session.

Something notable about the move, other than it taking place on relatively light volume, is that it happened at the same time Treasury yields were pressing higher behind selling interest. The turnaround by the stock market, then, may have been helped by some asset reallocation out of bonds and into stocks.

We would venture a guess that it was also helped by short-covering activity and the squeezing in of sidelined investors sitting on a lot of cash, as the market's continued resilience left them fearful about missing out on further gains.

Ten of the 11 S&P 500 sectors finished higher. The energy sector (+1.2%) was the biggest gainer, aided by a nice pop in oil prices ($62.57, +1.81, +3.0%) after OPEC+ agreed to raise production by 411,000 barrels per day in July. Traders had been worried that the output hike could be much larger.

The information technology sector (+0.9%) was second in command today, lending its weight to the broader market along with the communication services sector (+0.6%). The industrials sector (-0.2%) was the only sector that gave up some ground.

Market breadth substantiated the somewhat narrow nature of today's gains. Decliners outpaced advancers by a roughly 5-to-4 margin at the NYSE, while advancers led decliners by a narrow margin at the Nasdaq.

• S&P 500: +0.9% YTD
• Nasdaq: -0.4% YTD
• DJIA: -0.5% YTD
• S&P 400: -4.1% YTD
• Russell 2000: -7.2% YTD

Reviewing today's data:

• The May ISM Manufacturing Index slipped to 48.5% in May (Briefing.com consensus 49.0%) from 48.7% in April. The dividing line between expansion and contraction is 50.0%, so the May reading suggests that activity in the manufacturing sector contracted at a slightly faster pace than the prior month.
  • The key takeaway from the report is that manufacturing sector activity was hampered in May by tariff uncertainty.
• Total construction spending decreased 0.4% month-over-month in April (Briefing.com consensus 0.1%) after a downwardly revised 0.8% decline (from -0.5%) in March. Total private construction was down 0.7% month-over-month, while total public construction was up 0.4% month-over-month. On a year-over-year basis, total construction spending was down 0.5%.
  • The key takeaway from the report is that residential spending weakened noticeably with a downturn in new single-family construction.

Overseas:

• Europe: DAX -0.23%, FTSE flat, CAC -0.2%
• Asia: Nikkei -1.3%, Hang Seng -0.6%, Shanghai holiday

Commodities:

• Crude Oil +1.81 @ 62.57
• Nat Gas 0.25 @ 3.70
• Gold +81.60 @ 3397.30
• Silver +1.65 @ 34.68
• Copper +0.18 @ 4.86

After-Hours Spotlight:

• Cal-Maine Foods (CALM) signs definitive agreement to acquire Echo Lake Foods in all cash transaction for approximately $258 mln... CALM down 0.7%
• Credo Technology Group (CRDO) beats by $0.08, beats on revs; guides Q1 revs above consensus... CRDO up 10.1%
• Pentair (PNR) files mixed securities shelf offering... PNR unchanged
• Strategy (MSTR) announces proposed initial public offering of STRD Stock; 2.5 mln shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock... MSTR up 0.2%
• Trevi Therapeutics (TRVI) announces proposed public offering of $100 mln of common stocks... TRVI down 2.9%
• Uber (UBER) appoints Andrew “Mac” Macdonald as President & COO, effective immediately... UBER up 0.1%

Fair Value for Tuesday, June 3:

• S&P 500: 5,946
• Nasdaq 100: 21,531
• DJIA: 42,368

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

• Earnings/Guidance (Full Earnings Calendar):
  • Campbell Soup (CPB) beats by $0.08, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Humana (HUM) reaffirms FY25 adjusted EPS guidance ahead of a series of meetings with investors and analysts between June 2-30
  • Li Auto (LI) reports May deliveries
  • NIO (NIO) reports May deliveries
  • Piedmont Office Realty Trust (PDM) completed over 500,000 square feet of leasing thus far in Q2; increasing 2025 leasing guidance to 1.8 to 2.0 mln square feet from initial guidance of 1.4 to 1.6 mln square feet
  • XPeng (XPEV) reports May deliveries
  • ZEEKR Intelligent Technology (ZK) reports May deliveries
• General News
  • China turns blame back on U.S. for violating preliminary trade agreement reached in Geneva, according to the Wall Street Journal
  • Ukraine strike deep in Russia takes out dozens of warplanes, according to the Wall Street Journal
  • President Trump announces doubling of steel, aluminum tariffs to 50%, effective Wednesday, according to Reuters
  • China tells US not to 'play with fire' on Taiwan after Hegseth comments, according to Politico
  • Proposal for nuclear deal sent to Iran by U.S., according to the New York Times
  • Fed's Daly (non-FOMC voter) thinks two rate cuts in 2025 still likely, according to Bloomberg
  • OPEC+ keeps output hike steady for July
  • Macau gaming revs increase 5% yr/yr in May
  • AES (AES) provided arbitral tribunal update
  • Alphabet (GOOG) confirmed plans to DOJ appeal
  • Arrowhead Pharmaceuticals (ARWR) Initiates Phase 1/2a Study of ARO-ALK7 for the Treatment of Obesity
  • Arvinas (ARVN) and Pfizer's Vepdegestrant Significantly Improves Progression-Free Survival for Patients with ESR1-Mutant, ER+/HER2- Advanced Breast Cancer
  • ASP Isotopes (ASPI) and Isotopia announce supply agreement for Gadolinium-160 to accelerate Terbium-161 production for advanced cancer therapies
  • AstraZeneca (AZN) reports IMFINZI (durvalumab) regimen reduced risk of progression, recurrence or death by 29% in early-stage gastric cancer vs. chemotherapy alone in MATTERHORN Phase III trial
  • AstraZeneca (AZN) reports Camizestrant reduced the risk of disease progression or death by 56% in patients with advanced HR-positive breast cancer with an emergent ESR1 tumor mutation in SERENA-6 Phase III trial
  • Bayer AG (BAYRY) reports Gadoquatrane submitted for marketing authorization in Japan
  • BeOne Medicines (ONC) Unveils Promising Clinical Data for Two Novel Breast Cancer Therapies at ASCO 2025
  • BioNTech (BNTX) and Bristol Myers Squibb (BMY) to co-development and co-commercialization BioNTech’s investigational bispecific antibody BNT327 across numerous solid tumor types
  • Boeing (BA) CEO says market not ready for a 737 Max replacement, according to Financial Times
  • CACI Intl (CACI) has been awarded nearly $638 mln in new contracts within the intelligence community to support various national security efforts
  • Cenovus Energy (CVE) provides operations update on impact of Alberta wildfires
  • Corpay's (CPAY) Cross-Border business has entered into an agreement with Real Madrid C.F. to become an Official Partner
  • CoStar Group (CSGP) and Happening Technology end dispute amicably
  • Danaher (DHR): SCIEX and Evosep Biosystems enter a reseller agreement to co-sell SCIEX mass spectrometry systems with the newly announced Evosep Eno, for standardized high-throughput proteomics
  • EchoStar (SATS): Maxar Space Systems has been awarded a contract by EchoStar to manufacture EchoStar XXVI, a high-power geostationary communications satellite based on the Maxar 1300 platform
  • FLEX LNG (FLNG) finalizes $175 million lease financing for Flex Courageous
  • Gilead Sciences (GILD) reports Trodelvy Plus Keytruda Reduces Risk of Disease Progression or Death by 35% Versus Keytruda and Chemotherapy in First-Line PD-L1+ Metastatic Triple-Negative Breast Cancer
  • GlaxoSmithKline (GSK): Linerixibat file accepted for review by FDA
  • Guardant Health (GH): In Largest Molecular Residual Disease (MRD) Study in Colon Cancer, Guardant Reveal Testing Prior to Chemotherapy Provides Robust Stratification for Risk of Disease Recurrence and Survival to Enable Timely Treatment Decisions
  • Hims & Hers Health (HIMS) cutting 4% of workforce, according to Bloomberg
  • Kymera Therapeutics (KYMR) announces "positive" clinical results from the Phase 1 healthy volunteer study of KT-621, its first-in-class, oral STAT6 degrader medicine
  • Liquidia Technologies (LQDA) announced that Liquidia is scheduled to make its first commercial shipment of YUTREPIA inhalation powder
  • Lockheed Martin (LMT) awarded an unpriced letter contract modification not-to-exceed $1.002 bln under an existing US Navy contract
  • Meta (META) considers using AI to evaluate risks of product updates made to its apps, according to TechCrunch
  • Meta Platforms (META) released on Friday its annual meeting results
  • Microsoft (MSFT) announced $400 mln Switzerland investment; will upgrade its four datacenters near Zurich and Geneva with advanced AI infrastructure
  • Moderna (MRNA) receives FDA approval for COVID-19 Vaccine mNEXSPIKE
  • Novartis AG (NVS) reports Pluvicto demonstrates statistically significant and clinically meaningful rPFS benefit in patients with PSMA-positive metastatic hormone-sensitive prostate cancer
  • Novartis AG (NVS) reports Kisqali reduces risk of recurrence in younger patients with early breast cancer in NATALEE subgroup analysis
  • Nurix Therapeutics (NRIX): Sanofi (SNY) Exercises License Extension Option to Nurix’s STAT6 Program
  • Opthea Ltd. (OPT) provided a corporate update following the resignation of four directors following both Opthea’s Phase 3 trials missing their primary endpoints and the 65% reduction in work force announced in April 2025
  • Perspective Therapeutics (CATX) Highlights Updated Interim Data from its Ongoing Phase 1/2a Clinical Trial of [212Pb]VMT-a-NET at the 2025 ASCO Annual Meeting
  • Petrobras (PBR) provides update on agreement with Proquigel
  • Pharvaris N.V. (PHVS) presents data supporting ongoing clinical development of deucrictibant in bradykinin-mediated angioedema
  • Pony AI (PONY) forms strategic partnership with Xihu Group for Robotaxi deployment in Shenzhen
  • Regeneron Pharma (REGN) reports Libtayo (cemiplimab) Phase 3 Data in the Adjuvant Treatment of Post-Surgical High-Risk Cutaneous Squamous Cell Carcinoma (CSCC) Have Potential to Be Practice-Changing
  • Regeneron Pharma (REGN) announces a strategic in-licensing agreement with Hansoh Pharmaceuticals Group Company Limited to acquire exclusive clinical development and commercial rights outside of the Chinese Mainland, Hong Kong and Macau for a dual GLP-1/GIP receptor agonist currently in Phase 3 testing
  • Regeneron Pharmaceuticals (REGN): Interim Results from Ongoing Phase 2 COURAGE Trial Confirm Potential to Improve the Quality of Semaglutide (GLP-1 receptor agonist)-induced Weight Loss by Preserving Lean Mass
  • Roche Hldg (RHHBY) reports new data show Genentech’s Itovebi Significantly Extended Survival in a Certain Type of HR-positive Advanced Breast Cancer
  • RTX (RTX) awarded a $536.7 mln US Navy contract
  • Samsung (SSNLF) looking at deal to include Perplexity's search into its devices, according to Bloomberg
  • Sandoz (SDZNY) launches first and only interchangeable denosumab biosimilars in US
  • Takeda (TAK) and Protagonist Announce ASCO Plenary Presentation Highlighting Full 32-Week Results from Phase 3 VERIFY Study of Rusfertide, Showing Reductions in Phlebotomy, Improved Hematocrit Control in Polycythemia Vera
  • Tesla (TSLA) not looking to make cars in India, according to Reuters
  • Teva Pharma (TEVA) presents new data showing substantial rates of undertreated Tardive Dyskinesia in Long-Term Care Settings at Psych Congress Elevate 2025
  • Teva (TEVA) Presents Latest Schizophrenia Portfolio Data Including Real-World Outcomes with UZEDY® (risperidone) Showing Lower Rates of and Longer Time to Relapse Compared to Oral Treatment Options and New Phase 3 SOLARIS Data Showing No Incidence of PDSS with TEV-'749 (olanzapine) to Date
  • The Real Brokerage (REAX) authorizes new share repurchase program for up to the lesser of $150 mln in value, or 35 mln in shares
  • Trevi Therapeutics (TRVI) Announces Positive Topline Results from the Phase 2b CORAL Trial of Haduvio in Patients with Idiopathic Pulmonary Fibrosis Chronic Cough
  • uniQure (QURE) provides a regulatory update on AMT-130, its investigational gene therapy for the treatment of Huntington’s disease
  • Vera Therapeutics (VERA) announced that the primary endpoint was met in the ORIGIN Phase 3 trial of atacicept for the treatment of immunoglobulin A nephropathy (IgAN) in adults
  • Zai Lab (ZLAB) Presents Positive Phase 1 Data for ZL-1310, a DLL3-Targeted ADC, Demonstrating Robust Anti-Tumor Activity and Safety in Patients with Extensive-Stage Small Cell Lung Cancer at 2025 ASCO Annual Meeting

• Upgrades:
  • ArcBest (ARCB) upgraded to Buy from Neutral at Goldman, tgt $101
  • BCE (BCE) upgraded to Outperform from Sector Perform at Scotiabank
  • Boeing (BA) upgraded to Buy from Neutral at BofA Securities, tgt $260
  • Church & Dwight (CHD) upgraded to Outperform from Sector Perform at RBC Capital, tgt $114
  • Coca-Cola Femsa (KOF) upgraded to Overweight from Equal Weight at Morgan Stanley
  • Doximity (DOCS) upgraded to Buy from Neutral at BTIG Research, tgt $80
  • Knight-Swift (KNX) upgraded to Buy from Neutral at Goldman, tgt $65
  • Nucor (NUE) upgraded to Outperform from Market Perform at BMO Capital, tgt $145
  • Old Dominion (ODFL) upgraded to Buy from Neutral at Goldman, tgt $200
  • Red Rock Resorts (RRR) upgraded to Outperform from Neutral at Mizuho, tgt $50
  • Rollins (ROL) upgraded to Buy from Hold at Jefferies, tgt $65
  • Saia (SAIA) upgraded to Buy from Neutral at Goldman, tgt $410
  • Schneider National (SNDR) upgraded to Buy from Neutral at Goldman, tgt $32
  • Werner (WERN) upgraded to Buy from Sell at Goldman, tgt $39
• Downgrades:
  • Arvinas (ARVN) downgraded to Market Perform from Outperform at Leerink, tgt $9
  • Canadian Pacific Kansas City (CP) downgraded to Neutral from Buy at Goldman, tgt $91
  • Centene (CNC) downgraded to Equal Weight from Overweight at Barclays, tgt $65
  • Charter (CHTR) downgraded to Market Perform from Outperform at Bernstein, tgt $410
  • CSX (CSX) downgraded to Neutral from Buy at Goldman, tgt $35
  • J.B. Hunt (JBHT) downgraded to Neutral from Buy at Goldman, tgt $164
  • Norfolk Southern (NSC) downgraded to Neutral from Buy at Goldman, tgt $278
  • NorthWestern Energy (NWE) downgraded to Neutral from Buy at Ladenburg, tgt $5
  • Rackspace (RXT) downgraded to Market Perform from Outperform at Raymond James
  • Shake Shack (SHAK) downgraded to Neutral from Buy at BTIG Research
  • Union Pacific (UNP) downgraded to Neutral from Buy at Goldman, tgt $263
• Others:
  • Affirm (AFRM) initiated with a Buy at Truist, tgt $58
  • American Integrity Insurance (AII) initiated with an Outperform at Citizens JMP, tgt $23
  • American Integrity Insurance (AII) initiated with an Overweight at Piper Sandler, tgt $20
  • American Integrity Insurance (AII) initiated with an Outperform at Keefe, Bruyette & Woods
  • Aspen Insurance (AHL) initiated with a Buy at Citigroup, tgt $43
  • Aspen Insurance (AHL) initiated with a Buy at Deutsche Bank, tgt $42
  • Aspen Insurance (AHL) initiated with a Buy at Jefferies, tgt $42
  • Aspen Insurance (AHL) initiated with a Buy at Piper Sandler, tgt $40
  • Aspen Insurance (AHL) initiated with a Buy at Truist
  • Aspen Insurance (AHL) initiated with an Equal Weight at Wells Fargo, tgt $37
  • Aspen Insurance (AHL) initiated with a Neutral at Goldman, tgt $38
  • Aspen Insurance (AHL) initiated with an Outperform at BMO Capital, tgt $38
  • Aspen Insurance (AHL) initiated with an Outperform at Citizens JMP, tgt $45
  • Avalo Therapeutics (AVTX) assumed with a Buy at H.C. Wainwright, tgt $15
  • Bill (BILL) initiated with a Hold at Truist, tgt $47
  • Block (XYZ) initiated with a Sell at Truist, tgt $60
  • Boundless Bio (BOLD) initiated with a Buy at H.C. Wainwright, tgt $5
  • Cardiol Therapeutics (CRDL) initiated with a Buy at H.C. Wainwright, tgt $9
  • DLocal (DLO) initiated with a Hold at Truist, tgt $12
  • Fiserv (FI) initiated with a Buy at Truist, tgt $181
  • Fidelity National Information Services (FIS) initiated with a Hold at Truist, tgt $84
  • Flywire (FLYW) initiated with a Buy at Truist, tgt $12
  • Global Payments (GPN) initiated with a Hold at Truist, tgt $79
  • Global-e Online (GLBE) initiated with a Sell at Truist, tgt $31
  • Lightspeed (LSPD) initiated with a Hold at Truist, tgt $11
  • Mastercard (MA) initiated with a Buy at Truist, tgt $640
  • PayPal (PYPL) initiated with a Sell at Truist, tgt $68
  • Pluri (PLUR) re-initiated with a Buy at Alliance Global Partners, tgt $12
  • PolyPid (PYPD) assumed with a Buy at H.C. Wainwright, tgt $11
  • RPM (RPM) initiated with a Buy at Citigroup, tgt $135
  • Senseonics (SENS) assumed with a Buy at H.C. Wainwright, tgt $1.10
  • Sensei Biotherapeutics (SNSE) assumed with a Buy at H.C. Wainwright, tgt $5
  • Shake Shack (SHAK) initiated with a Sector Weight at KeyBanc
  • Shift4 Payments (FOUR) initiated with a Hold at Truist, tgt $97
  • SoFi Technologies (SOFI) initiated with a Hold at Truist, tgt $14
  • Toast (TOST) initiated with a Buy at Truist, tgt $48
  • United Therapeutics (UTHR) initiated with an Overweight at Cantor Fitzgerald, tgt $405
  • Visa (V) initiated with a Buy at Truist, tgt $400

• Econ Data (Tuesday):
  • 10:00 ET: April Factory Orders (Briefing.com consensus -3.1%; prior 4.3%)
  • 10:00 ET: April JOLTS - Job Openings (prior 7.192M)
• Earnings:
  • Monday (June 2)
    • Pre-Market: CPB SAIC
    • After-Hours: CRDO
  • Tuesday (June 3)
    • Pre-Market: DG DCI FERG NIO OLLI SIG
    • After-Hours: ASAN BASE CRWD GWRE HPE YEXT
  • Wednesday (June 4)
    • Pre-Market: DLTR GCO REVG CXM THO
      
    • After-Hours: AGX DSGX FIVE GEF MDB PVH VRNT
  • Thursday (June 5)
    • Pre-Market: BF.B CIEN CBRL MOMO TTC VSCO
    • After-Hours: BRZE AVGO DOCU LULU AVO WOOF RBRK IOT TTAN MTN ZUMZ
  • Friday (June 6)
    • Pre-Market:ABM
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike