After Hours Report

Today's trade was somewhat mixed despite a solid showing at the index-level. The market-cap weighted S&P 500 extended its record high, climbing 0.8%, and the equal-weighted S&P 500 registered a 0.7% gain. Decliners had a slim lead over advancers, though, at both the NYSE and at the Nasdaq. 

The underlying negative bias, driven by consolidation activity, was not enough to offset buying activity in some mega cap stocks. 

Outsized gains in Apple (AAPL 216.67, +4.18, +2.0%) and Microsoft (MSFT 448.37, +5.80, +1.3%), which are two of the three stocks with a market cap above $3 trillion, provided some support to the broader market. The Vanguard Mega Cap Growth ETF (MGK) was up 0.9%. 

Broadcom (AVGO 1828.87, +93.83, +5.4%) was another top performer today, along with other semiconductor-related names. The PHLX Semiconductor Index (SOX) jumped 1.6%.

Strength in the mega cap and semiconductor spaces also boosted the S&P 500 information technology (+1.2%) and consumer discretionary (+1.4%) sectors to the top of the leaderboard today. These sectors combined comprise 43% of the index. 

The rate-sensitive real estate (-0.8%) and utilities (-0.5%) sectors were the top laggards, clipped by a jump in yields. 

The 10-yr note yield closed seven basis points higher at 4.28% and the 2-yr note yield settled eight basis points higher at 4.76%.

Today's economic data was limited to the NY Fed Empire State Manufacturing Index, which rose to -6.0 in June (Briefing.com consensus -13.0) from -15.6 in May.

• Nasdaq Composite: +19.0% YTD
• S&P 500:+14.8% YTD
• S&P Midcap 400: +5.0% YTD
• Dow Jones Industrial Average: +2.9% YTD
• Russell 2000: -0.3% YTD

Looking ahead, Tuesday's economic calendar features the May Retail Sales report at 8:30 ET. Other data include:

• 9:15 ET: May Industrial Production (Briefing.com consensus 0.4%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 78.5%; prior 78.4%)
• 10:00 ET: April Business Inventories (Briefing.com consensus 0.3%; prior -0.1%)
• 16:00 ET: April net Long-Term TIC Flows (prior $100.5 bln)

Overseas:

• Europe: DAX +0.4%, FTSE -0.1%, CAC +0.9%
• Asia: Nikkei -2.0%, Hang Seng -0.0%, Shanghai -0.6%

Commodities:

• Crude Oil +0.81 @ 78.89
• Nat Gas -0.09 @ 2.79
• Gold -21.00 @ 2328.60
• Silver -0.12 @ 29.38
• Copper -0.06 @ 4.44

After-Hours Spotlight:

• Chegg (CHGG) announces restructuring plan and new vision for growth... CHGG up 23.9%
• La-Z-Boy (LZB) beats by $0.25, beats on revs; expects industry to continue to be challenged in FY25... LZB up 10.8%
• Lennar (LEN) beats by $0.22, beats on revs, new orders increased 19%; Issues Q3 guidance, including deliveries of 20,500-21,000... LEN down 1.8%
• NextEra Energy (NEE) to sell $2.0 bln of equity units... NEE down 4.0%

Fair Value for Tuesday, June 18:

• S&P 500: 5,541
• Nasdaq 100: 20,178
• DJIA: 39,204

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

• Earnings/Guidance (Full Earnings Calendar):
  • ING Groep (ING) provides financial targets for 2024-2027 at its Capital Markets Day
  • JPMorgan Chase (JPM) reports May card metrics
  • Solid Power (SLDP) reaffirms FY24 guidance
  • Steel Dynamics (STLD) sees Q2 EPS below consensus
  • U.S. Steel (X) gudies Q2 EPS in-line, but lowers adjusted EBITDA guidance
• General News
  • Minneapolis Fed President Neel Kashkari (not a voting FOMC member) in interview says December rate cut is a "reasonable prediction," according to CBS News
  • Top CEOs are supporting Donald Trump in hope of shaping his agenda, according to The Wall Street Journal
  • Israel suspended daytime military operations near Gaza southern border to allow for humanitarian relief, but said offensive in Rafah will continue, according to New York Times
  • Bill Gates wants to invest billions in nuclear power, according to Bloomberg
  • The Biden administration is prepared to release more oil from strategic reserves if gas prices rise, according to FT
  • US Surgeon General Dr. Vivek Murthy wants warning labels on social media platforms amid risks to teen health, according to New York Times
  • Appeals Court to hear challenge to TikTok ban or forced sale law, according to Reuters
  • Israel's military says Hezbollah aggression is bringing the nation to the brink of wider escalation, according to Reuters
  • AAON (AAON) announces completion of second share repurchase program
  • Adobe (ADBE): U.S. is suing ADBE related to subscription plans practices, according to Reuters
  • Adobe (ADBE): FTC confirms it filed a complaint against ADBE and executives for hiding fees, preventing consumers from easily cancelling software subscriptions
  • Adobe (ADBE) issues statement regarding FTC complaint
  • Advance Auto (AAP) announces cyber attack; threat actor offered what it alleged to be company data for sale on June 4
  • Agios (AGIO) Presents Positive Results from Phase 3 ENERGIZE Study of Mitapivat in Non-Transfusion-Dependent Thalassemia in Plenary Session at the European Hematology Association 2024 Hybrid Congress
  • Amazon (AMZN) will have to pay $122 mln in Texas patent case, according to Reuters
  • Amazon's (AMZN) One Medical might have patient safety issues, according to Washington Post
  • American Express (AXP) reports May card metrics
  • Amgen (AMGN) announces that the FDA has approved BLINCYTO (blinatumomab) for the treatment of adult and pediatric patients one month or older with CD19-positive Philadelphia chromosome-negative B-cell precursor acute lymphoblastic leukemia (B-ALL) in the consolidation phase, regardless of measurable residual disease (MRD) status
  • Apple (AAPL) aiming to discontinue Apple Pay later product, according to 9to5Mac
  • Archer Aviation (ACHR) announces the signing of an MOU focused on electrifying Signature’s industry-leading network of over 200 airport terminals, giving Archer access to takeoff and landing sites in major metropolitan areas across the U.S. and globally, including New York, Los Angeles, San Francisco Bay Area, and Texas
  • Autodesk (ADSK) comments on letter from Starboard
  • Autodesk (ADSK): Starboard Value purchased $500 mln stake, according to The Wall Street Journal
  • AZEK (AZEK) announces that its Board of Directors authorized the Company to repurchase up to $600 mln of the Company’s Class A common stock in addition to the remaining ~$75 mln available pursuant to the Company’s prior authorization
  • Bank of America (BAC) reports May card metrics
  • Beyond Meat (BYND) responds to study about processed foods
  • BioNTech (BNTX) discloses it has been informed by its partner MediLink Therapeutics that the FDA has placed a partial clinical hold on the multicenter, open-label, first-in-human Phase 1 clinical
  • Boeing (BA) whistleblower complaints to FAA have increased, according to Bloomberg
  • Boeing (BA): Some candidates have turned down position of BA CEO, according to WSJ
  • Boeing (BA) CEO Dave Calhoun will tell Senate tomorrow that he understands concerns about safety culture, according to Reuters
  • Cameco (CCJ), Saskatchewan Power Corporation and Westinghouse Electric Company have signed a memorandum of understanding to evaluate the potential of Westinghouse’s nuclear reactor technology and the associated nuclear fuel supply chain required for Saskatchewan’s future clean power needs
  • Capital One (COF) reports May card metrics
  • Citigroup (C) reports May card metrics
  • Citigroup (C): Regulators unhappy with Citigroup's living will plan, according to WSJ
  • DraftKings (DKNG): Supreme Court denies request to hear Florida sports betting case
  • D-Wave Quantum (QBTS) and Davidson Technologies announce the forthcoming placement of the second US-based D-Wave Advantage quantum computer
  • Embraer SA (ERJ) getting ready for Farnborough Airshow next month, according to Reuters
  • Ford Motor (F) aiming to discontinue Model e Certified Program, according to Drive Tesla Canada (see 5.24 12:23 for when this news was first speculated)
  • Galapagos NV (GLPG) presents encouraging new data for CD19 CAR-T candidate GLPG5101 in non-Hodgkin lymphoma at EHA 2024
  • General Motors (GM): UAW members vote 98% to ratify new contract at Ultium (unit of GM)
  • Grifols’ Biotest (GRFS) receives FDA approval for innovative Yimmugo immunoglobulin to treat primary immunodeficiencies
  • Hewlett Packard Enterprise (HPE): NVIDIA (NVDA) CEO Huang to appear at HPE's Investor Relations Summit on June 18 to speak about the companies' AI partnership
  • Johnson & Johnson (JNJ): Updated Phase 2 CAPTIVATE study results demonstrate sustained clinical benefit
  • Johnson & Johnson (JNJ) reports late-breaking results showing nipocalimab significantly improves Sjögren's disease activity in a Phase 2 study
  • JPMorgan Chase (JPM) reports May card metrics
  • L3Harris (LHX) announces a strategic collaboration with Accenture (ACN) to accelerate its technology reinvention
  • Marsh McLennan (MMC): Oliver Wyman announces that it has entered into an agreement to acquire Veritas Total Solutions
  • Matthews International (MATW) refutes Tesla (TSLA) allegations
  • Merck (MRK): FDA approves pembrolizumab with chemotherapy for primary advanced or recurrent endometrial carcinoma
  • Nurix Therapeutics (NRIX) Presents Positive Results from Ongoing Clinical Trial of NX-5948 in Patients with Relapsed Refractory Chronic Lymphocytic Leukemia (CLL) at the European Hematology Association Congress
  • NVIDIA (NVDA) crypto lawsuit will be reviewed by SCOTUS, according to Bloomberg
  • Oracle (ORCL) APEX AI assistant enables natural language-based development of enterprise applications
  • PepsiCo (PEP) workers in Tulsa have voted by 95% to join Teamsters Local 886 in Oklahoma City
  • Roblox (RBLX)  hires former Micorosft (MSFT) Xbox exec, according to The Verge
  • RTX's (RTX) Collins Aerospace announces that the French Direction Générale de l'Armement (DGA) has selected the company's vehicle-mounted Air Traffic Navigation, Integration, and Coordination System for the tactical control, approach and landing capabilities of the French Armée de Terre
  • Sociedad Quimica y Minera (SQM) announces long-term lithium supply agreement with Hyundai Motors (HYMTF) and Kia Corporation
  • SolarEdge Technologies (SEDG) announces the global rollout of SolarEdge ONE for C&I, a comprehensive software-based energy optimization platform for Commercial and Industrial solar applications, expected to become generally available in the coming months
  • Taiwan Semiconductor Manufacturing (TSM) planning price increase for 3nm products, according to TrendForce
  • Tesla (TSLA) halted Cybertruck deliveries because of wiper problem, according to Electrek
  • Tesla (TSLA) CEO Elon Musk being investigated by SEC for alleged late disclosures of Twitter stock, according to The Wall Street Journal
  • Tesla (TSLA) received Shanghai approval for driver assistance testing, according to Bloomberg
  • Tesla (TSLA): Elon Musk posts to X "Working on the Tesla Master Plan 4. It will be epic."
  • TPG Inc. (TPG) announces a significant strategic growth investment in K2 Medical Research, an integrated clinical trial site platform specializing in central nervous system trials for leading pharma and biotech sponsors
  • United Natural Foods (UNFI) may be considering a sale, though executives have denied the rumors, according to Supermarket News
  • Walt Disney's (DIS) "Inside Out 2" generated $155 mln at US box office this weekend
  • Warner Bros. Discovery's (WBD) TNT might no longer have NBA rights after this season, according to New York Times
  • Wells Fargo (WFC) is renegotiating startup deal after incorrectly forecasting revenue, according to The Wall Street Journal

Ratings Changes (see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • Best Buy (BBY) upgraded to Buy from Neutral at UBS; tgt raised to $106
  • Brighthouse Financial (BHF) upgraded to Mkt Perform from Underperform at Keefe Bruyette; tgt lowered to $47
  • Capri Holdings (CPRI) upgraded to Buy from Neutral at Citigroup; tgt $41
  • Fate Therapeutics (FATE) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $6
  • Greif (GEF) upgraded to Buy from Neutral at BofA Securities; tgt raised to $77
  • ICU Medical (ICUI) upgraded to Outperform from Mkt Perform at Raymond James; tgt $135
  • Itau Unibanco Holding SA (ITUB) upgraded to Overweight from Equal-Weight at Morgan Stanley
  • Keurig Dr Pepper (KDP) upgraded to Hold from Sell at Truist; tgt raised to $34
  • Newmont Corporation (NEM) upgraded to Buy from Neutral at UBS; tgt raised to $50
  • Ollie's Bargain Outlet (OLLI) upgraded to Overweight from Neutral at JP Morgan; tgt $105
  • Public Service (PEG) upgraded to Buy from Neutral at Guggenheim; tgt $82
  • Toll Brothers (TOL) upgraded to Neutral from Sell at Goldman; tgt raised to $124
• Downgrades:
  • Louisiana-Pacific (LPX) downgraded to Sell from Neutral at Goldman; tgt lowered to $81
  • MSC Industrial (MSM) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • MSC Industrial (MSM) downgraded to Hold from Buy at Loop Capital; tgt $80
  • Union Pacific (UNP) downgraded to Hold from Buy at Loop Capital; tgt lowered to $238
• Others:
  • Alkermes Plc (ALKS) initiated with a Buy at TD Cowen; tgt $34
  • Bowhead Specialty Holdings (BOW) initiated with a Mkt Outperform at JMP Securities; tgt $31
  • Bowhead Specialty Holdings (BOW) initiated with an Outperform at RBC Capital Mkts; tgt $32
  • Bowhead Specialty Holdings (BOW) initiated with a Mkt Perform at Keefe Bruyette; tgt $30
  • Bowhead Specialty Holdings (BOW) initiated with an Equal-Weight at Morgan Stanley; tgt $26
  • Bowhead Specialty Holdings (BOW) initiated with a Neutral at JP Morgan; tgt $27
  • Endeavour Silver (EXK) resumed with an Outperform at BMO Capital Markets; tgt $6
  • Kayne Anderson BDC (KBDC) initiated with a Neutral at UBS; tgt $17
  • Kayne Anderson BDC (KBDC) initiated with a Buy at BofA Securities; tgt $17.50
  • Kayne Anderson BDC (KBDC) initiated with a Mkt Perform at Keefe Bruyette; tgt $17
  • Kayne Anderson BDC (KBDC) initiated with an Outperform at RBC Capital Mkts; tgt $17
  • Kayne Anderson BDC (KBDC) initiated with an Overweight at Wells Fargo; tgt $17
  • Legend Biotech (LEGN) initiated with a Buy at Truist; tgt $88
  • Lexicon Pharma (LXRX) initiated with a Buy at H.C. Wainwright; tgt $10
  • Life360 (LIF) initiated with a Buy at Canaccord Genuity; tgt $40
  • Life360 (LIF) initiated with an Outperform at Evercore ISI; tgt $37
  • Life360 (LIF) initiated with a Buy at Loop Capital; tgt $36
  • Owens Corning (OC) resumed with a Neutral at Goldman; tgt $187
  • Palantir Technologies (PLTR) initiated with a Buy at Argus; tgt $29
  • Postal Realty (PSTL) resumed with a Buy at Stifel; tgt $15.50
  • Q32 Bio (QTTB) initiated with a Buy at Guggenheim; tgt $100
  • The Trade Desk (TTD) initiated with an Outperform at Wedbush; tgt $110

• Econ Data (Tuesday):
  • 8:30 ET: May Retail Sales (Briefing.com consensus 0.3%; prior 0.6%), Retail Sales ex-auto (Briefing.com consensus 0.2%; prior -0.1%)
  • 9:15 ET: May Industrial Production (Briefing.com consensus 0.4%; prior 0.0%) and Capacity Utilization (Briefing.com consensus 78.5%; prior 78.4%)
  • 10:00 ET: April Business Inventories (Briefing.com consensus 0.3%; prior -0.1%)
  • 16:00 ET: April net Long-Term TIC Flows (prior $100.5 bln)
• Treasury Auctions:
  • 13:00 ET: $13 bln 20-yr Treasury bond reopening results
• Earnings:
  • Monday (June 17)
    • Pre-Market: None
    • After-Hours: LZB LEN
  • Tuesday (June 18)
    • Pre-Market: CRMT CGNT PDCO
    • After-Hours: KBH
  • Wednesday (June 19)
    • Pre-Market: None
    • After-Hours: SCS
  • Thursday (June 20)
    • Pre-Market: ACN CMC DRI GMS JBL KR WGO
    • After-Hours: SWBI
  • Friday (June 21)
    • Pre-Market: KMX FDS
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike