After Hours Report

Stocks experienced mixed action on the first session of the new month. The S&P 500 (-0.1%) and Dow Jones Industrial Average (-0.5%) settled lower while the Nasdaq Composite logged a 0.3% gain.

A solid gain in NVIDIA (NVDA 1150.00, +53.67, +4.9%), which introduced new products, limited downside moves in the major indices, but concerns about economic growth kept the broader market in check. 

The aforementioned concerns were stirred by this morning's release of the ISM Manufacturing Index for May, which reflected a faster pace of contraction than the market expected (actual 48.7%; expected 49.6%). A reading below 50% indicates a contraction in activity.

Yields moved lower in response. The 10-yr note yield fell 11 basis points to 4.40% and the 2-yr note yield fell seven basis points to 4.82%. Dropping market rates had been a source of support for equities recently, but worries about an economic slowdown that could affect earnings prospects drove stock market action today. 

On a related note, the Atlanta Fed GDPNow model estimate for Q2 real GDP growth is now 1.8%, down from 2.7% on May 31, in response to the soft data.

WTI crude oil futures ($74.29/bbl, -2.79, -3.6%) settled sharply lower in another manifestation of slowdown concerns, which could translate to weaker demand for oil. 

This price action contributed to the selling in the S&P 500 energy sector. It was the worst performing sector by a decent margin, dropping 2.6%. The utilities (-1.2%) and industrial (-1.3%) sectors were the next worst performers. 

Meanwhile, the information technology sector (+1.0%) led the pack by a decent margin, followed by the health care sector (+0.7%). 

Separately, there was some speculative buying activity in the meme stock space after "Roaring Kitty" posted a screenshot showing a big position in GameStop (GME 28.00, +4.86, +21.0%).

• Nasdaq Composite: +11.8% YTD
• S&P 500:+10.5% YTD
• S&P Midcap 400: +6.4% YTD
• Dow Jones Industrial Average: +2.1% YTD
• Russell 2000: +1.6% YTD

Reviewing today's economic data:

• May S&P Global US Manufacturing PMI - Final 51.3; Prior 50.0
• May ISM Manufacturing Index 48.7% (Briefing.com consensus 49.6%); Prior 49.2%
  • The key takeaway from the report is that it showed a faster pace of contraction in manufacturing activity that will stir worries about the economy missing its mark with a soft landing.
• April Construction Spending -0.1% (Briefing.com consensus 0.2%); Prior -0.2%
  • The key takeaway from the report is that nonresidential spending was down in both private and public construction markets, which will be a drag on Q2 GDP growth.

Tuesday's economic calendar features:

• 10:00 ET: April Factory Orders (Briefing.com consensus 0.6%; prior 1.6%) and April job openings (prior 8.488 mln)

Overseas:

• Europe: DAX +0.6%, FTSE -0.2%, CAC +0.1%
• Asia: Nikkei +1.2%, Hang Seng +1.8% Shanghai -0.3%

Commodities:

• Crude Oil -2.79 @ 74.29
• Nat Gas +0.17 @ 2.75
• Gold +24.50 @ 2370.10
• Silver +0.38 @ 30.81
• Copper +0.06 @ 4.66

After-Hours Spotlight:

• FibroGen (FGEN) announces FDA Clearance of Investigational New Drug Application for FG-3165, a Galectin-9 targeting monoclonal antibody, for the treatment of patients with solid tumors... FGEN up 25.2%
• GitLab (GTLB) beats by $0.07, beats on revs; guides JulQ EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs above consensus... GTLB down 4.8%
• HealthEquity (HQY) beats by $0.14, beats on revs; guides FY25 EPS above consensus, revs above consensus... HQY up 4.3%

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

• Earnings/Guidance (Full Earnings Calendar):
  • Autodesk (ADSK) completes planned procedures regarding audit investigation; projects Q1 and Q2 numbers ahead of consensus; raises FY25 EPS outlook, reaffirms FY25 revenue forecast; appoints interim CFO
  • Centerspace (CSR) issued guidance within investor slides; reaffirms FY24 core FFO guidance
  • Chatham Lodging (CLDT) provides business update - April and May RevPAR trend well above second quarter guidance
  • Exact Sciences (EXAS) reaffirms its second-quarter 2024 and full-year 2024 financial guidance
  • Healthcare Services Group (HCSG) provides update on client restructuring; reiterates 2024 cash flow forecast & ROY outlook
  • Humana (HUM) sees FY24 (Dec) EPS of ~$16.00, excluding non-recurring items, vs. $16.37 FactSet Consensus
  • JetBlue Airways (JBLU) issues upward guidance
  • Li Auto (LI) reports May deliveries
  • NIO (NIO) reports May deliveries
  • NorthWestern (NWE) releases presentation; reaffirms guidance for FY24 (Dec) EPS of $3.42-$3.62, excluding non-recurring items, vs. $3.50 FactSet Consensus
  • Welltower (WELL) raises FY24 normalized FFO guidance, announces 10% dividend increase, provides update
  • XPeng (XPEV) reports May Deliveries
  • ZEEKR Intelligent Technology (ZK) reports May delivery update
• General News
  • OPEC+ to maintain reduced production level into 2025, according to Reuters
  • Indian equities reach fresh records after incumbent Prime Minister wins third term, according to Market Watch
  • Japanese automakers admit to mishandling safety tests, according to the New York Times
  • Macau Gaming Inspection and Coordination Bureau reported May gross revs +29.7% yr/yr to HKD 20.2 bln versus HKD 15.6 bln in May of 2023
  • DoE's Office of Petroleum Reserves announced that contracts have been awarded for the acquisition of 3.0 million barrels of U.S.-produced crude oil for the Strategic Petroleum Reserve
  • NYSE says it's currently evaluating which LULD halts were erroneous; halts determined to have been caused by erroneous bands will be considered for potential busts
  • FBI released NICS background checks data; May 2024 Total NICS Background Checks were 2,126,085, -16.7% yr/yr
  • NYSE says "All impacted stocks have reopened. All systems are currently operational."
  • NYSE says impacted stocks have since reopened (or are in the process of reopening) and the price bands issue has been resolved
  • Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) working on new chip design, according to DigiTimes
  • Advanced Micro (AMD) announces several product updates
  • Aecom Tech (ACM) awarded U.S. nationwide program management services contract to support FEMA’s disaster resilience efforts
  • Agios (AGIO) Announces Phase 3 ENERGIZE-T Study of Mitapivat Met Primary Endpoint and All Key Secondary Endpoints in Adults with Transfusion-Dependent Alpha- or Beta-Thalassemia
  • Alkermes (ALKS) Presents Data From Phase 1b Study of ALKS 2680 Demonstrating Improved Wakefulness in Patients With Narcolepsy Type 1 at SLEEP 2024
  • Arrow Electronics (ARW) signed a new distribution agreement with Broadcom (AVGO) for VMware solutions covering 20 European countries
  • Arrowhead Pharmaceuticals (ARWR) Reports Successful Topline Results for Plozasiran from the Pivotal Phase 3 PALISADE Study in Patients with Familial Chylomicronemia Syndrome
  • ASML (ASML) and imec open joint High NA EUV Lithography Lab offering an early development platform to the leading-edge semiconductor ecosystem
  • Astellas Pharma (ALPMY) receives FDA Orphan Drug Designation for its treatment of pancreatic cancer - bispecific antibody against CLDN18.2 and T cell receptor complex CD3
  • AstraZeneca (AZN) reports Tagrisso with the addition of chemotherapy recommended for approval in the EU by CHMP for patients with EGFR-mutated advanced lung cancer
  • AstraZeneca (AZN) reports ENHERTU (fam-trastuzumab deruxtecan-nxki) demonstrated a median progression-free survival of 13.2 months in HR-positive, HER2-low and HER2-ultralow metastatic breast cancer following one or more lines of endocrine therapy
  • AstraZeneca (AZN) announces Tagrisso plus chemo recommended for approval in EU
  • AZZ (AZZ) names Jason Crawford as CFO
  • Babcock & Wilcox Enterprises (BW) has been granted a limited notice to proceed by NorthStar Clean Energy to begin work on a Bioenergy with Carbon Capture and Storage conversion of a former coal-fired power plant
  • Berkshire Hathaway (BRK.A): NYSE technical error causes some stock prices to reflect 99% losses, according to CNBC
  • Bitfarms (BITF) provides monthly production report and update on its fleet upgrade and expansion
  • BrainsWay (BWAY) Receives Expanded FDA Labeling to Treat Late Life Depression
  • Bristol Myers Squibb’s (BMY) Breyanzi demonstrates clinically meaningful outcomes across broad range of B-Cell Malignancies in new data presented at 2024 ASCO Annual Meeting
  • Brookfield Asset Mgmt (BAM) confirmed it is in the early stages of assessing a possible cash offer for Tritax EBOX
  • Celldex Therapeutics (CLDX) Presents Data Demonstrating Profound Improvements in Angioedema in Barzolvolimab Phase 2 Study in Chronic Spontaneous Urticaria at EAACI 2024
  • CEMEX S.A. (CX) was not aware of the causes that may have initiated the unusual movements presented during May 31, 2024
  • ChromaDex (CDXC) receives FDA Orphan Drug Designation for its treatment of ataxia telangiectasia - Nicotinamide Riboside Chloride
  • Corbus Pharma (CRBP) announces SYS6002 (CRB-701) A Next-Generation Nectin-4 Targeting Antibody Drug Conjugate Continues to Demonstrate Encouraging Safety and Efficacy Observed in Patients with Nectin-4 Positive Tumors in a Clinical Update Presented at ASCO 2024
  • Crinetics (CRNX) presents new data at ENDO 2024 that increases body of evidence positioning once-daily, oral paltusotine as potential first-choice treatment option for Acromegaly
  • Crinetics (CRNX) announces positive initial findings at ENDO 2024 for Atumelnant in two ongoing, open-label studies for the treatment of Congenital Adrenal Hyperplasia (CAH) and ACTH-Dependent Cushing’s Syndrome (ADCS
  • Cullinan Therapeutics (CGEM) Announces Positive Initial Data from Pivotal Phase 2b REZILIENT1 Study of Zipalertinib
  • Curtiss-Wright (CW) entered into an agreement to acquire the stock of Ultra Nuclear Limited and Weed Instrument, a subsidiary of Ultra Electronics, for $200 mln in cash
  • Deciphera Pharmaceuticals (DCPH) announces that results from the Company’s MOTION pivotal Phase 3 study of vimseltinib in patients with TGCT are being highlighted in an oral presentation at the 2024 American Society of Clinical Oncology Annual Meeting
  • Diana Shipping (DSX) through a separate wholly-owned subsidiary, enters into a time charter contract with Aquavita International S.A., for one of its Post-Panamax dry bulk vessels, the m/v Electra
  • Eli Lilly (LLY) presents Updated Data from the Phase 1/2 Study of Olomorasib in KRAS G12C-Mutant Advanced Solid Tumors Presented at the 2024 ASCO® Annual Meeting
  • Embraer SA (ERJ): Mexicana de Aviación has ordered 20 Embraer E2 aircraft
  • Genmab (GMAB) and BioNTech (BNTX) report Investigational Acasunlimab (DuoBody -PD-L1x4-1BB) in Combination with Pembrolizumab Demonstrates Meaningful Clinical Activity in Phase 2 Trial in Patients with Previously Treated Metastatic Non-small Cell Lung Cancer
  • Genmab (GMAB) reports Preliminary Analysis of Data Evaluating Investigational Epcoritamab (DuoBody CD3xCD20) Combination Demonstrates 95% Overall Response Rate in Patients with Previously Untreated Follicular Lymphoma
  • Genmab (GMAB): Investigational Tisotumab Vedotin Phase 2 data demonstrates encouraging antitumor activity in patients with recurrent or metastatic Head and Neck Squamous Cell Carcinoma (HNSCC)
  • Gilead (GILD) and Arcus (RCUS) Announce Etrumadenant Plus Zimberelimab Regimen Significantly Reduced the Risk of Death in Third-line Metastatic Colorectal Cancer
  • Gilead (GILD) and Arcus (RCUS) Announce Etrumadenant Plus Zimberelimab Regimen Significantly Reduced the Risk of Death in Third-line Metastatic Colorectal Cancer
  • Gilead Sciences (GILD): Kite’s Tecartus demonstrates sustained overall survival in adult patients with relapsed/refractory B-cell acute lymphoblastic leukemia
  • GlaxoSmithKline (GSK) reports Belantamab Mafodotin combination reduced the risk of disease progression or death by nearly 50% versus standard of care combination in relapsed/refractory multiple myeloma
  • GlaxoSmithKline (GSK) reports Blenrep combination reduced the risk of disease progression or death by nearly 50% versus standard of care combination in relapsed/refractory multiple myeloma
  • Golub Capital (GBDC) closes merger with Golub Capital BDC 3, Inc., declares special distributions totaling $0.15 Per Share
  • Hawkins (HWKN) has completed the acquisition of the assets of Intercoastal Trading and its affiliated companies; financial terms were not disclosed
  • HF Foods (HFFG) Chairman to resign
  • Honda Motor's (HMC) American Honda reports May sales +6.4% yr/yr to 127,129 units
  • Humana (HUM): University of Alabama at Birmingham Health System and Humana sign agreement, expanding Humana’s Medicare Advantage Provider Network in Alabama
  • HUTCHMED (HCM) Highlights Publication of Phase III FRUTIGA Results in Nature Medicine
  • Hyatt’s (H) Growth Momentum Continues With Record Global Pipeline of 129,000 Rooms
  • IDEAYA (IDYA) Announces Results for Darovasertib Phase 2 IST in Neoadjuvant Uveal Melanoma at ASCO and Clinical Update for Phase 2 Company-Sponsored Neoadjuvant Study
  • iLearningEngines (AILE) filed for offering of up to 22,624,975 shares of common stock issuable upon exercise of warrants, up to 100,774,669 shares of common stock and up to 8,250,000 warrants to purchase common stock
  • Immunocore (IMCR) presents KIMMTRAK clinical data demonstrating that patients with stable disease and confirmed tumor reduction have similar clinical outcomes to patients with partial response
  • Intellia Therapeutics (NTLA) Announces Positive Long-Term Data from Ongoing Phase 1 Study of NTLA-2002, an Investigational In Vivo CRISPR Gene Editing Treatment for Hereditary Angioedema
  • Interactive Brokers (IBKR) reports its Electronic Brokerage monthly performance metrics for May: 2.360 mln DARTs, 27% higher than prior year and 1% higher than prior month
  • Jazz Pharmaceuticals (JAZZ) Presents Overall Survival and Longer Follow-Up Data from HERIZON-BTC-01 Trial Evaluating Zanidatamab in Previously Treated HER2-Positive Biliary Tract Cancer at ASCO 2024
  • Johnson & Johnson (JNJ) reports late-breaking results from PALOMA-2 study of subcutaneous amivantamab in combination with lazertinib show clinically meaningful antitumor response and improved safety profile in patients with EGFR-mutated non-small cell lung cancer
  • Kadant (KAI) has completed the acquisition of Dynamic Sealing Technologies and affiliates for ~$55 mln in cash
  • KalVista Pharmaceuticals (KALV) Presents Data on Persisting Unmet Needs in Hereditary Angioedema at the European Academy of Allergy and Clinical Immunology (EAACI) Congress 2024
  • Lindsay Corp (LNN) announces irrigation project valued at more than $100 million
  • Liquidia Technologies (LQDA): District Court issues favorable ruling and denies United Therapeutics’ (UTHR) request to block YUTREPIA launch
  • Melco Resorts & Entertainment (MLCO) board of directors has approved a new US$500 million share repurchase program
  • Merck KGaA (MKKGY) oncology pipeline poised to advance cancer treatment
  • Merus (MRUS) Presents Interim Data on MCLA-145 Monotherapy and in Combination with Pembrolizumab at the 2024 ASCO® Annual Meeting
  • Meta Platforms (META) confirms Meta Connect will be September 25 + 26; will explore the future of AI and mixed reality and share progress on our long-term vision to help build the metaverse
  • MicroStrategy (MSTR) discloses entry of a Consent Order and Judgment
  • Moderna (MRNA) releases adjuvant melanoma presentation for ASCO
  • NETGEAR (NTGR) reports that on May 30, 2024, Administrative Law Judge Doris Johnson Hines of the U.S. International Trade Commission issued an Initial Determination finding that China-based TP-Link violated federal law by importing and selling in the United States its multi-band Wi-Fi devices, routers and mesh networking devices
  • Neurocrine Biosciences (NBIX) Announces Publication of Primary CAHtalyst™ Adult Phase 3 Study Results of Crinecerfont for the Treatment of CAH in The New England Journal of Medicine
  • Neurogene (NGNE) Announces NGN-401 Gene Therapy for Rett Syndrome Selected by FDA for START Pilot Program
  • NIO (NIO) driving in reverse despite reporting record deliveries for May
  • Novo Nordisk A/S (NVO) launches national Wegovy campaign, Power of Wegovy
  • Nucor (NUE) has entered into an agreement to acquire Rytec Corporation
  • NVIDIA (NVDA) announces several product updates
  • Ocular Therapeutix (OCUL) approved a strategic reduction in force to eliminate 37 full-time employees
  • Omeros (OMER) further strengthens its balance sheet through series of financing transactions extending maturity on a majority of its outstanding debt into 2028
  • Paramount Global (PARA): Skydance planning $23/share offer for PARA voting stock, according to Bloomberg
  • Pfizer’s (PFE) ADCETRIS Regimen Produces Clinically Meaningful Improvement in Overall Survival in Patients with Relapsed/Refractory Diffuse Large B-cell Lymphoma
  • Pitney Bowes (PBI) announces the opening of a new 45,000 square foot Presort Services operating center serving the St. Louis, MO market
  • Precigen (PGEN) announces groundbreaking pivotal study Data for PRGN-2012 in patients with recurrent respiratory papillomatosis in which more than half of patients achieved complete response
  • Puma Biotechnology (PBYI) announces presentation of findings from a Phase I/Ib study of alisertib in advanced EGFR-mutated lung cancer
  • QIAGEN (QGEN) expands QIAstat-Dx syndromic testing menu in the U.S. with launch of molecular test to improve gastrointestinal care
  • Royal Air Maroc looking to acquire new jets, according to Bloomberg
  • S&P Global (SPGI) comments on last week's service interruptions; company is taking appropriate steps to mitigate the risk of similar matters occurring in the future
  • Spotify (SPOT) raises US prices
  • Structure Therapeutics (GPCR) Reports Positive Topline Data from its Phase 2a Obesity Study and Capsule to Tablet PK Study for its Oral Non-Peptide Small Molecule GLP-1 Receptor Agonist GSBR-1290
  • Summit (SMMT) Raises $200 Million; Also Expands License Territories for Ivonescimab
  • SunPower (SPWR) announces $50 million draw on previously announced second lien term loan to further business operations as company executes business plan
  • Takeda (TAK) and Pfizer (PFE) Announce Four-Year Results from Positive Phase 3 HD21 Trial of Additional ADCETRIS® (brentuximab vedotin) Combination in Frontline Hodgkin Lymphoma
  • Tesla (TSLA) releases statement against ISS views
  • Teva (TEVA) Presents First Real-World Data from the IMPACT-TD Registry Study at Psych Congress Elevate 2024
  • Toronto-Dominion Bank (TD): Florida employee took bribes, allegedly opened fraudulent accounts at local branch, according to Bloomberg
  • Toyota Motor (TM): Results of investigation regarding model certification applications
  • uniQure (QURE) Receives FDA Regenerative Medicine Advanced Therapy (RMAT) Designation for Investigational Gene Therapy AMT-130 in Huntington’s Disease
  • Valneva SE (VALN) announces that the results of two Phase 2 clinical trials of Lyme disease vaccine candidate, VLA15, were published in the peer-reviewed medical journal, The Lancet Infectious Diseases
  • Vodafone PLC (VOD): UK CMA extension of CK Hutchinson (CKHUY) jv merger inquiry has now ended, and 24 days will be added to the statutory deadline
  • Whitestone REIT (WSR) Continues Board Refreshment
  • WisdomTree (WT): ETFS Capital Limited with ownership of approximately 10% of the outstanding Common Stock respondes to reports from Institutional Shareholder Services Inc. and Glass, Lewis & Co on its campaign for stockholders to vote Against the re-election of the Chairman Win Neuger, Director Anthony Bossone, and CEO and Director Jonathan Steinberg, to the board of directors of WisdomTree
  • Zentalis Pharma (ZNTL) provides investor updates in presentation
  • Zevra Therapeutics (ZVRA) announces that final positive results from its placebo-controlled, double-blind Phase 2 clinical trial evaluating the safety and tolerability of KP1077 in patients with idiopathic hypersomnia were presented in a poster at SLEEP 2024, the 38th annual joint meeting of the American Academy of Sleep Medicine and the Sleep Research Society

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

• Upgrades:
  • Best Buy (BBY) upgraded to Buy from Sell at Citigroup; tgt raised to $100
  • Kimberly-Clark (KMB) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $165
  • Masimo (MASI) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $160
  • MongoDB (MDB) upgraded to Neutral from Sell at Guggenheim
• Downgrades:
  • Bank of Montreal (BMO) downgraded to Mkt Perform from Outperform at Keefe Bruyette
  • Caribou Biosciences (CRBU) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $3
  • CAVA Group (CAVA) downgraded to Neutral from Overweight at JP Morgan; tgt $77
  • Commerzbank AG (CRZBY) downgraded to Neutral from Buy at Citigroup
• Others:
  • Altus Power (AMPS) initiated with a Buy at Seaport Research Partners; tgt $6.50
  • Apple Hospitality REIT (APLE) initiated with a Neutral at Wedbush; tgt $15
  • Bowman Consulting Group (BWMN) initiated with an Outperform at Robert W. Baird; tgt $37
  • Broadcom (AVGO) initiated with a Buy at Melius; tgt $1850
  • BWX Technologies (BWXT) initiated with a Buy at CLSA
  • Enphase Energy (ENPH) added to Goldman's US Conviction List
  • Guardant Health (GH) resumed with a Buy at Jefferies; tgt $32
  • Illumina (ILMN) resumed with a Hold at Jefferies; tgt $115
  • International Money Express (IMXI) resumed with a Buy at BTIG Research; tgt $25
  • Krispy Kreme, Inc. (DNUT) resumed with an Overweight at JP Morgan; tgt $14
  • Loar Holdings (LOAR) initiated with a Buy at Jefferies; tgt $65

• Econ Data (Tuesday):
  • 10:00 ET: April Factory Orders (Briefing.com consensus 0.6%; prior 1.6%) and April job openings (prior 8.488 mln)
• Earnings:
  • Monday (June 3)
    • Pre-Market: SAIC
    • After-Hours: GTLB
  • Tuesday (June 4)
    • Pre-Market: BBWI CNM DBI DCI FERG
    • After-Hours: CRWD GWRE HPE PVH SPWH SFIX VRNT
  • Wednesday (June 5)
    • Pre-Market: BF.B CPB DLTR HIBB OLLI REVG THO UNFI
    • After-Hours: CHPT BASE FIVE GEF LULU SMTC CXM VSCO
  • Thursday (June 6)
    • Pre-Market: ABM BIG CIEN GII SJM NIO TTC
    • After-Hours: AGX BRZE DOCU AVO IOT MTN ZUMZ
  • Friday (June 7)
    • Pre-Market: None
    • After-Hours: None
General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike