After Hours Report

The S&P 500 (+0.2%) and the Nasdaq Composite (+0.5%) closed at or near their highs of the day after a surge of buying in the mega cap space in the afternoon trade. The Dow Jones Industrial Average closed slightly higher than yesterday and the Russell 2000 logged a 0.2% decline.

Apple (AAPL 213.25, +4.18, +2.0%), Amazon.com (AMZN 193.61, +7.27, +3.9%), and Tesla (TSLA 196.37, +9.02, +4.8%) were among the top performers from the mega cap space. NVIDIA (NVDA 126.40, +0.31, +0.3%) was another influential name in the mega cap space, trading down as much as 2.8% before turning higher ahead of the close.

FedEx (FDX 296.19, +39.81, +15.5%) also garnered attention today following better-than-expected earnings and an indication that demand is expected to improve through FY25. Meanwhile, General Mills (GIS 64.17, -3.09, -4.6%) was a standout loser after a fiscal Q4 earnings report that included a revenue miss driven by lower prices and lower volumes.

There was an underlying negative bias driving today's action. Decliners lead advancers by a roughly 4-to-3 margin at both the NYSE and at the Nasdaq.

The price action in Treasuries contributed to the underlying downside bias in equities. The 10-yr note yield settled eight basis points higher at 4.32% and the 2-yr note yield rose two basis points to 4.32% despite a solid $70 billion 5-yr note sale today. The market was also digesting a below-consensus New Home Sales report for May.

The equal-weighted S&P 500 registered a 0.4% decline and eight of the 11 S&P 500 sectors settled lower. The financial sector was among the worst performers, down 0.5%, while the consumer discretionary sector (+2.0%) led the pack. 

• Nasdaq Composite: +18.6% YTD
• S&P 500:+14.8% YTD
• S&P Midcap 400: +4.7% YTD
• Dow Jones Industrial Average: +3.8% YTD
• Russell 2000: -0.4% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index 0.8%; Prior 0.9%
• May New Home Sales 619K (Briefing.com consensus 650K); Prior was revised to 698K from 634K
  • The key takeaway from the report is that new home sales activity languished in May, but after accounting for the upward revision to April sales, the combined two-month period was actually better than what was embedded in the consensus estimate for May (650,000) and the original report for April (634,000). Even so, it is clear that higher mortgage rates and elevated prices continue to pressure new home sales (-16.5% yr/yr).

Thursday's economic calendar features:

• 8:30 ET: May advance goods trade balance (prior -$99.4 bln), advance Retail Inventories (prior 0.7%), advance Wholesale Inventories (prior 0.2%), weekly Initial Claims (Briefing.com consensus 238,000; prior 238,000), Continuing Claims (prior 1.828 mln), May Durable Orders (Briefing.com consensus -1.2%; prior 0.7%), Durable Orders ex-transportation (Briefing.com consensus 0.2%; prior 0.4%), Q1 GDP -- third estimate (Briefing.com consensus 1.3%; prior 1.3%), and Q1 GDP Deflator -- third estimate (Briefing.com consensus 3.1%; prior 3.0%)
• 10:00 ET: May Pending Home Sales (Briefing.com consensus 2.3%; prior -7.7%)
• 10:30 ET: Weekly natural gas inventories (prior +71 bcf)

Overseas:

• Europe: DAX -0.1%, FTSE -0.3%, CAC -0.7%
• Asia: Nikkei +1.3%, Hang Seng +0.1%, Shanghai +0.8%

Commodities:

• Crude Oil +0.09 @ 80.91
• Nat Gas -0.13 @ 2.62
• Gold -17.60 @ 2313.10
• Silver +0.01 @ 28.93
• Copper +0.01 @ 4.38

After-Hours Spotlight:

• AeroVironment (AVAV) beats by $0.21, beats on revs; guides FY25 EPS in-line, revs in-line... AVAV down 6.5%
• BlackBerry (BB) beats by $0.02, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY25 EPS in-line, revs in-line... BB up 7.2%
• Concentrix (CNXC) beats by $0.06, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY24 EPS in-line, revs in-line... CNXC up 2.6%
• H.B. Fuller (FUL) beats by $0.09, reports revs in-line; guides FY24 EPS in-line, revs in-line... FUL up 5.5%
• Levi Strauss (LEVI) beats by $0.05, reports revs in-line; reaffirms FY24 EPS guidance, revs guidance; increases dividend... LEVI down 12.5%
• Micron (MU) beats by $0.14, beats on revs; guides Q4 EPS in-line, revs in-line... MU down 5.3%
• MillerKnoll (MLKN) beats by $0.13, misses on revs; guides FY25 EPS in-line, revs in-line... MLKN down 1.3%

Fair Value for Thursday, June 26:

• S&P 500: 5,543
• Nasdaq 100: 20,016
• DJIA: 39,532

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

• Earnings/Guidance (Full Earnings Calendar):
  • Apple Hospitality REIT (APLE) provides investor updates in presentation; April and May prelim comps hotel RevPAR growth was 4.6% and 2.4% respectively
  • FedEx (FDX) beats by $0.07, reports revs in-line; guides FY25 EPS in-line, revs in-line; Expects the demand environment to moderately improve throughout FY25
  • General Mills (GIS) beats by $0.02, misses on revs; raises dividend
  • Grindr (GRND) sees FY27 COGS of 27%; OpEx of 41-44%; Adjusted EBITDA of 39-42%; sees revenue growth of 20-25% from FY23-FY27
  • Medtronic (MDT) announces departure of Karen Parkhill, Chief Financial Officer; reaffirms Q1/FY25 guidance
  • Paychex (PAYX) beats by $0.02, reports revs in-line; guides FY25 EPS in-line, revs in-line
  • Progress Software (PRGS) beats by $0.14, beats on revs; guides Q3 EPS below consensus, revs below consensus; raises FY24 EPS and revenue guidance
  • RumbleOn (RMBL) provides CDK Global update; does not believe at this time that it is reasonably likely to have a material impact
  • Southwest Air (LUV) expects Q2 RASM to decline in the 4.0-4.5% range compared with its prior expectation of a 1.5-3.5% decline, both on a year-over-year basis
  • Tecnoglass (TGLS) reiterates FY24 outlook
  • UniFirst (UNF) beats by $0.17, reports revs in-line; raises FY24 EPS guidance; reaffirms FY24 revenue guidance
  • Worthington Enterprises (WOR) misses by $0.14, misses on revs
• General News
  • Fed option traders are predicting a 300 basis point rate cut by March of 2025, according to Bloomberg
  • Former President Trump could announce his VP selection this week. Doug Burgum, JD Vance, and Marco Rubio are being considered, according to NBC News
  • White House announces first-of-its-kind funding to lower housing costs by reducing barriers to building more homes
  • Oil and gas explration company Citizen Energy nearing $2.5 bln PE deal, according to Bloomberg
  • Regulators could approve spot ether ETF by July 4, according to Reuters
  • Air Products (APD) breaks ground on $70 mln expansion of its Missouri manufacturing and logistics center
  • Albemarle (ALB) aiming to conduct more lithium auctions, according to Reuters
  • Apple (AAPL) expands Self Service Repair Diagnostics support to Europe
  • Barnes Group (B) is exploring strategic options including a sale, according to Bloomberg
  • Boeing (BA): FAA to adopt a new airworthiness directive for certain Boeing Model 767-200, -300, and -400ER series airplanes
  • Boeing (BA) facing another whistleblower claim about 787 jet parts, according to Bloomberg
  • C3.ai (AI) appoints Merel Witteveen as Interim COO, effective immediately
  • Datadog (DDOG) introduces unified OpenTelemetry collector and agent experience
  • DoorDash (DASH) held talks to take over Deliveroo but ended after valuation disagreement, according to Reuters
  • Ennis (EBF) announces its acquisition of Printing Technologies in Indianapolis, IN
  • FedEx (FDX) is conducting an assessment of the role of FedEx Freight in its portfolio structure
  • General Motors (GM) hires new CEO Marc Whitten for its Cruise self-driving division, effective July 16
  • Genius Sports (GENI) secured an agreement with the Union of European Football Associations to provide center of mass player tracking technology to UEFA for the UEFA Europa League
  • Honda Motor (HMC) announced lease options for the all-new 2025 Honda CR-V e:FCEV, America's first production plug-in hydrogen fuel cell electric vehicl
  • Intel (INTC) demonstrates first fully integrated Optical I/O Chiplet
  • Interactive Brokers (IBKR) launches forecast contracts on economic and climate events; Offers commission-free trading on ForecastEx
  • Kiniksa Pharmaceuticals (KNSA) enters into supply agreement with Samsung Biologics
  • Masimo (MASI) files investor presentation highlighting innovation-driven value, strategic initiatives to deliver robust growth and margin expansion and risks of ceding control to Politan
  • Meta Platforms (META): Supreme Court rules in favor of Biden administration in dispute with Republican states on social media content moderation
  • Mitsubishi Financial (MUFG) to Invest in Ascend Money; provides update regarding reports in certain media
  • Moderna (MRNA): CDC advisory panel votes to recommend high risk adults from age 14 to 60 and adults 75 and older receive RSV vaccine - CNBC
  • Moderna (MRNA): CDC experts will meet this week to consider expanding age group for respiratory syncytial virus vaccines for this year, according to Reuters
  • Norfolk Southern (NSC): NTSB says "failed wheel bearing caused norfolk southern train derailment in East Palestine, Ohio"
  • Novo Nordisk A/S (NVO) stops the ocedurenone CLARION-CKD trial and recognises impairment loss
  • Novo Nordisk A/S (NVO): EU EMA takes actions to tackle shortages of GLP-1 receptor agonists
  • Nu Holdings (NU): Nubank acquires Hyperplane, a data intelligence company from Silicon Valley
  • NVIDIA (NVDA) at annual meeting says that Blackwell Architecture platform will likely be the most successful product in its history, and even for the entire computer history
  • Oracle (ORCL) announces the general availability of HeatWave GenAI
  • P. T. Telekomunikasi (TLK) provides update on ransomware Brain Chiper attack
  • PENN Entertainment (PENN) has expanded its partnership with Ticketmaster to offer exciting new benefits for its more than 30 million loyalty members
  • Planet Labs (PL) committed to a plan to reduce its global headcount by approximately 180 employees; reaffirms guidance
  • PPL Corp (PPL) subsidiaries Louisville Gas and Electric Company and Kentucky Utilities Company will build on an earlier assessment of nuclear feasibility at the site of an existing Kentucky coal-fired power plant by exploring additional locations and partnerships that could support nuclear energy in the commonwealth
  • QuidelOrtho (QDEL): Carlyle Group (CG) affirms 17.6% active stake following the sale of 694,161 shares during June 12-24 period
  • Rapid7 (RPD): Jana Partners purchased a stake in RPD and will push for sale of the company, according to WSJ
  • Repare Therapeutics (RPTX) reports "positive" initial data from the ongoing Phase 1 MINOTAUR clinical trial evaluating lunresertib in combination with FOLFIRI in patients with advanced solid tumors
  • Rivian Automotive (RIVN) and Volkswagen Group (VWAGY) announce plans for joint venture to create industry-leading vehicle software technology and for strategic investment by Volkswagen
  • Shell plc (SHEL) to build carbon capture and storage projects in Canada
  • SoftBank (SFTBY) will develop medical services using artificial intelligence, according to Nikkei
  • Southwest Air (LUV): Elliott statement on Southwest Airlines' revenue guidance reduction
  • SSR Mining (SSRM): ISN announces that SSR Mining has selected ISNetworld as its primary contractor information management system for its Seabee Operations, a high grade underground mine specializing in the production of gold doré bars
  • Takata (TAK) wants partnerships with Chinese biotech companies, according to Bloomberg
  • TechTarget (TTGT) and 6sense announces the launch of a strategic partnership to integrate TechTarget’s proprietary account intent data into the 6sense Revenue AI Platform
  • Tecnoglass (TGLS) conducting a review of its strategic alternatives
  • Tempus AI (TEM) Tempus AI has received 510(k) clearance from the U.S. FDA for its Tempus ECG-AF device that uses AI to help identify patients who may be at increased risk of atrial fibrillation/flutter
  • Transocean (RIG) announces $188 mln ultra-deepwater drillship contract extension
  • U-Haul Holding Company (UHAL) acquires and is now serving customers at the former Able Mini Storage property at 1810 Gervais Court in Maplewood to better meet the self-storage needs of its customers in Ramsey County
  • Verizon (VZ) introduces new customer-first programs and benefits, refreshes the brand
  • Vicor (VICR) announces US Court for the District of Massachusetts granted a preliminary injunction barring subsidiaries of Foxconn from pursuing arbitration against Vicor before the China International Economic and Trade Arbitration Commission
  • Vital Farms (VITL) plans to expand its resilient supply chain with a second world-class egg washing and packing facility located in Seymour, Indiana
  • Walmart (WMT): Hibbett now offers same- and next-day delivery enabled by Walmart GoLocal and Salesforce Commerce Cloud
  • WPP plc (WPP): KKR (KKR) mulls taking control of FGS Global from WPP, according to FT

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

• Upgrades:
  • Acadia Realty Trust (AKR) upgraded to Neutral from Underweight at JP Morgan; tgt $18
  • Americold Realty Trust (COLD) upgraded to Overweight from Neutral at JP Morgan; tgt $30
  • Apple (AAPL) upgraded to Buy from Neutral at Rosenblatt; tgt raised to $260
  • Campbell Soup (CPB) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $52
  • Digital Realty Trust (DLR) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $170
  • Ero Copper (ERO) upgraded to Outperform from Market Perform at BMO Capital Markets
  • FedEx (FDX) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $359
• Downgrades:
  • Accenture (ACN) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $300
  • Aptiv (APTV) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $63
  • dLocal Limited (DLO) downgraded to Neutral from Buy at Goldman; tgt lowered to $
• Others:
  • Abacus Life (ABL) initiated with an Overweight at Piper Sandler; tgt $12
  • AeroVironment (AVAV) initiated with a Buy at BTIG Research; tgt $255
  • AGCO Corp (AGCO) initiated with a Neutral at Citigroup; tgt $108
  • Allison Transmission (ALSN) initiated with a Neutral at Citigroup; tgt $80
  • Arcadium Lithium (ALTM) initiated with an Outperform at RBC Capital Mkts; tgt $4
  • ATI Inc. (ATI) initiated with a Buy at BTIG Research; tgt $70
  • BWX Technologies (BWXT) initiated with a Buy at BTIG Research; tgt $110
  • Carpenter Tech (CRS) initiated with a Buy at BTIG Research; tgt $120
  • Caterpillar (CAT) initiated with a Buy at Citigroup; tgt $380
  • The Cigna Group (CI) initiated with an Overweight at Piper Sandler; tgt $400
  • CNH Industrial (CNH) initiated with a Buy at Citigroup; tgt $16
  • Corbus Pharma (CRBP) initiated with a Buy at B. Riley Securities; tgt $85
  • Cummins (CMI) initiated with a Buy at Citigroup; tgt $320
  • Deere (DE) initiated with a Neutral at Citigroup; tgt $395
  • Fabrinet (FN) initiated with a Hold at Jefferies; tgt $230
  • FMC Corp (FMC) initiated with an Equal Weight at Barclays; tgt $62
  • FTAI Infrastructure (FIP) initiated with a Mkt Outperform at JMP Securities; tgt $11
  • Leonardo DRS (DRS) initiated with a Buy at BTIG Research; tgt $30

• Econ Data (Thursday):
  • 8:30 ET: May advance goods trade balance (prior -$99.4 bln), advance Retail Inventories (prior 0.7%), advance Wholesale Inventories (prior 0.2%), weekly Initial Claims (Briefing.com consensus 238,000; prior 238,000), Continuing Claims (prior 1.828 mln), May Durable Orders (Briefing.com consensus -1.2%; prior 0.7%), Durable Orders ex-transportation (Briefing.com consensus 0.2%; prior 0.4%), Q1 GDP -- third estimate (Briefing.com consensus 1.3%; prior 1.3%), and Q1 GDP Deflator -- third estimate (Briefing.com consensus 3.1%; prior 3.0%)
  • 10:00 ET: May Pending Home Sales (Briefing.com consensus 2.3%; prior -7.7%)
  • 10:30 ET: Weekly natural gas inventories (prior +71 bcf)
• Treasury Auctions:
  • 13:00 ET: $44 bln 7-yr Treasury note auction results
• Earnings:
  • Monday (June 24)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (June 25)
    • Pre-Market: CCL SNX
    • After-Hours: FDX PRGS WOR
  • Wednesday (June 26)
    • Pre-Market: GIS PAYX UNF
    • After-Hours: AVAV CNXC FUL LEVI MU MLKN WS
  • Thursday (June 27)
    • Pre-Market: AYI APOG LNN MKC SMPL WBA
    • After-Hours: ACCD NKE
  • Friday (June 28)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike