After Hours Report

Stocks struggled under selling activity, leading the major indices to close sharply lower. The S&P 500 dropped 2.2%, the Nasdaq Composite fell 3.1%, and the Dow Jones Industrial Average declined 1.7%.

There was a negative bias through the entire session following NVIDIA's (NVDA 104.49, -7.71, -6.9%) announcement that it expects Q1 results to include up to $5.5 billion of charges associated with H20 products due to export restrictions for China. AMD (AMD 88.29, -7.00, -7.4%) also announced an expected impact of $800 million.

Selling increased noticeably in the afternoon following remarks from Fed Chair Powell, who appeared at an event in Chicago, indicating that he doesn't think the Fed will make progress on its dual mandate goals this year and that there isn't a "Fed put."

This morning's economic data also contributed to the downside bias despite solid headline numbers in the retail sales report. Total retail sales increased 1.4% month-over-month in March (Briefing.com consensus 1.3%) following an unrevised 0.2% increase in February. Excluding autos, retail sales rose 0.5% month-over-month (Briefing.com consensus 0.2%) following an upwardly revised 0.7% increase (from 0.3%) in February.

The negative takeaway related to the belief that last month's data may have been inflated by buying activity ahead of the tariff impacts and may decrease in the future. 

Mega caps and semiconductor shares led the downside charge amid ongoing uncertainty on the tariff front and related to growth concerns. The Vanguard Mega Cap Growth ETF (MGK) dropped 3.3% and the PHLX Semiconductor Index (SOX) fell 4.1%.

The technology sector registered the largest decline by a decent margin, falling 3.9%. The next worst performing sector was consumer discretionary (-2.7%) and communication services (-2.5%).

• Dow Jones Industrial Average: -6.8% YTD
• S&P 500: -10.3% YTD
• S&P Midcap 400: -12.8% YTD
• Nasdaq Composite: -15.6% YTD
• Russell 2000: -16.4% YTD

Reviewing today's economic data:

• Weekly MBA Mortgage Applications Index -8.5%; Prior 20.0%
• March Retail Sales 1.4% (Briefing.com consensus 1.3%); Prior 0.2%, March Retail Sales ex-auto 0.5% (Briefing.com consensus 0.2%); Prior was revised to 0.7% from 0.3%
  • The complicated element -- and key takeaway from the report -- is that the strength has a lot to do ostensibly with getting ahead of the tariff actions, which is to say the strength may not be sustained. If there is a counterargument to that point, it is that sales at food services and drinking places were up a robust 1.8% in March after declining 0.8% in February.
• March Industrial Production -0.3% (Briefing.com consensus -0.3%); Prior was revised to 0.8% from 0.7%, March Capacity Utilization 77.8% (Briefing.com consensus 77.9%); Prior 78.2%
  • The key takeaway from the report is that the large decline in the output of utilities overshadowed the increase in manufacturing output and mining output, so the headline decline isn't as bad as it looks at first blush.
• February Business Inventories 0.2% (Briefing.com consensus 0.3%); Prior 0.3%
• April NAHB Housing Market Index 40 (Briefing.com consensus 39); Prior 39

Thursday's economic calendar includes:

• 8:30 ET: March Housing Starts (Briefing.com consensus 1.418 mln; prior 1.501 mln), Building Permits (Briefing.com consensus 1.455 mln; prior 1.456 mln), weekly Initial Claims (Briefing.com consensus 225,000; prior 223,000), Continuing Claims (prior 1.850 mln), and April Philadelphia Fed Survey (Briefing.com consensus 10.0; prior 12.5)
• 10:30 ET: Weekly natural gas inventories (prior +57 bcf)

Overseas:

• Europe: DAX +0.3%, FTSE +0.3%, CAC -0.1%
• Asia: Nikkei -1.0%, Hang Seng -1.9%, Shanghai +0.3%

Commodities:

• Crude Oil +0.50 @ 61.83
• Nat Gas +0.02 @ 3.25
• Gold +99.40 @ 3341.00
• Silver +0.60 @ 32.91
• Copper +0.06 @ 4.68

After-Hours Spotlight:

• Alcoa (AA) beats by $0.47, misses on revs... AA up 1.6%
• CSX (CSX) misses by $0.03, reports revs in-line... CSX down 1.2%
• Intel (INTC) ticking lower after needing a license to export AI chips to China, according to FT.com... INTC down 0.2%
• Quantum Computing (QUBT) announces retirement of CEO and President William McGann, effective May 12; Yuping Huang names as interim CEO and President... QUBT down 0.9%

Fair Value for Thursday, April 17:

• S&P 500: 5,309
• Nasdaq 100: 18,392
• DJIA: 39,870

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

• Earnings/Guidance (Full Earnings Calendar):
  • Abbott Labs (ABT) beats by $0.02, reports revs in-line; guides Q2 EPS in-line; reaffirms FY25 EPS guidance
  • ADTRAN (ADTN) subsidiary disclosed that its final IFRS financial statements will deviate from previously disclosed preliminary financial results; Company is in the process of assessing the impact
  • ASML (ASML) beats by €0.56, beats on revs; guides Q2 revs in-line; reaffirms FY25 revs guidance
  • Autoliv (ALV) beats by $0.48, beats on revs
  • BW LPG Ltd (BWLP) provides update on Product Services Q1 segment performance
  • Citizens Financial Group (CFG) beats by $0.02, reports revs in-line
  • Commerce Bancshares (CBSH) beats by $0.05, beats on revs
  • First Horizon (FHN) beats by $0.02, misses on revs
  • Fulton Fincl (FULT) beats by $0.11
  • Hancock Whitney (HWC) beats by $0.09, reports revs in-line; guides in slides: expects FY25 loans and deposits to be up low single digits yr/yr
  • Heineken (HEINY) reports Q1 trading update; reaffirms outlook
  • Interactive Brokers (IBKR) misses by $0.04, beats on revs; raises quarterly dividend
  • J.B. Hunt Transport (JBHT) beats by $0.02, reports revs in-line, intermodal volumes up 8%
  • Main Street Capital (MAIN) issues in-line Q1 net investment income per share guidance
  • Marten Transport (MRTN) reports EPS in-line, misses on revs
  • NVIDIA (NVDA) expects Q1 results to include up to approximately $5.5 bln of charges associated with H20 products for inventory, purchase commitments, and related reserves
  • Omnicom (OMC) beats by $0.05, reports revs in-line
  • Perion Network (PERI) issues upside Q1 revenue guidance
  • Progressive (PGR) misses by $0.42, beats on revs
  • Prologis (PLD) beats by $0.05, beats on revs; reaffirms FY25 core FFO guidance
  • Rio Tinto (RIO) reports Q1 production
  • Semler Scientific (SMLR) also provided Q1 guidance -- sees Q1 revs of $8.8-8.9 mln
  • Sitio Royalties Corp. (STR) issues quarterly preview; sees Q1 production of 18.9 MBbls/d oil and 42.1 MBoe/d total, both exceeding midpoint of prior guidance
  • TechTarget (TTGT) confirms 2024 revenue guidance; provides 2025 outlook
  • Travelers (TRV) beats by $1.10, misses on revs
  • United Airlines (UAL) beats by $0.17, reports revs in-line, TRASM up 0.5%, premium cabin revenue up 9.2%; issues in-line Q2 EPS guidance and provides two sets of EPS guidance for FY25, stating that it's "impossible to predict the macro environment this year with any degree of confidence"; Also is removing 4 ppts of scheduled domestic capacity
  • U.S. Bancorp (USB) beats by $0.05, reports revs in-line; guides FY25 revs in-line
  • Vale S.A. (VALE) reports Q1 production and sales
  • Wipro (WIT) reports Q4 results
• General News
  • Treasury Secretary Scott Bessent plans to use trade tariff negotiations to pressure US trading partners to limit China dealings, according to the Wall Street Journal
  • China open to trade negotiations with US as long as cabinet members are respectful, according to Bloomberg
  • President Trump says "Japan is coming in today to negotiate tariffs, the cost of military support, and “trade fairness.” I will attend the meeting, along with Treasury & Commerce secretaries. Hopefully something can be worked out which is good (great!) for Japan and the USA!"
  • California Governor Gavin Newsom files lawsuit to stop President Trump's tariffs, according to Bloomberg
  • President Trump signs executive order to help lower drug prices through Medicare drug price negotiation program
  • President Trump orders Commerce Department to launch 232 investigation into critical minerals, which could result in tariffs
  • China Q1 GDP was 1.2% versus 1.6% prior
  • The Bank of Canada maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%
  • The Trump administration considering measures that would block DeepSeek from buying US technology, according to NY TImes
  • OCC announces changes to organizational structure
  • Advanced Micro Devices (AMD) expects that the Export Control may result in charges of up to approximately $800 million in inventory, purchase commitments and related reserves
  • Alphabet (GOOG): YouTube received social media ban exemption in Australia, according to Bloomberg
  • Apple's (AAPL) VP of western Europe and global enterprise sales, Mark Rogers, to leave this fall following 27 years at the company, according to Bloomberg
  • Arrowhead (ARWR) appoints Daniel Appel as CFO, effective May 13
  • Bayer AG (BAYRY) unit BlueRock Therapeutics announces publication in Nature of 18-month data from Phase 1 clinical trial for bemdaneprocel, an investigational cell therapy for Parkinson’s disease
  • Bayer AG (BAYRY) celebrated the grand opening of its new 70,000 square foot expansion at its Myerstown facility, following a $44 million investment in 2022
  • Biogen (BIIB) reports Leqembi is the first medicine that slows progression of early Alzheimer’s Disease to be authorized in the European Union
  • Boeing (BA) & HRL Laboratories achieve key milestone in quantum entanglement swapping satellite mission
  • Boeing (BA): Russia interested in purchasing Boeing jets with frozen funds, according to Bloomberg
  • Cadence Design (CDNS) has entered into a definitive agreement with Arm (ARM) to acquire Arm’s Artisan foundation IP business, consisting of standard cell libraries, memory compilers, and general-purpose I/Os optimized for advanced process nodes at the leading foundries
  • Caesars Entertainment (CZR) announces an expansion to its partnership with AGS (AGS) making Caesars’ online casino platforms the exclusive first online home for the immensely popular Triple Coin Treasures® family of slot titles
  • Campbell Soup (CPB) names Elizabeth Duggan as President of Snacks division
  • Cardiff Oncology (CRDF) announces completion of enrollment in Phase 2 CRDF-004 Trial Evaluating Onvansertib for the Treatment of First-line RAS-mutated metastatic colorectal cancer
  • Cullinan Therapeutics (CGEM) announced that the EMA approved its Clinical Trial Application (CTA) for CLN-978
  • CuriosityStream (CURI) disclosed that it entered into new third-party agreements, which the Company expects will generate more than $7 million in revenue during Q2
  • Diginex Limited (DGNX) forms strategic alliance with AIKYA to launch its ESG reporting platform, diginexESG, in Malaysia
  • Dollar Tree (DLTR): CFO S. Glendinning disclosed purchase of 17K shares between $72.50-$72.83 worth approx. $1.2 mln (purchases made 4/14, 4/15)
  • Ford Motor (F) notifies dealers that it will increase prices if tariffs continue, according to Auto News
  • General Dynamics (GD): Gulfstream Aerospace Corp's subsidiary earns type certification from the Federal Aviation Administration along with certification from the European Union Aviation Safety Agency and has done so with even greater performance capabilities than originally anticipated
  • Google (GOOG, GOOGL) will have to face GBP 5 bln UK search lawsuit, according to CNBC
  • H & R Block (HRB): The Trump administration plans to end IRS direct File program, according to AP News
  • Harley-Davidson (HOG) disclosed letter from Jared Dourdeville indicating the company mischaracterized events - he expressed that CEO Zeitz should be terminated immediately
  • Harley-Davidson (HOG): H Partners Launches Withhold Campaign to Remove Three Entrenched Directors of Harley-Davidson at 2025 Annual Meeting
  • Hertz Global (HTZ): CNBC's Scott Wapner reports, citing source, that Pershing Square's (PSHZF) stake in Hertz, including shares and swaps, is actually 19.8%
  • Honda (HMC) will move Civic production to Indiana from Japan, according to Reuters
  • Humana (HUM) lost administrative appeal in Medicare ratings case, according to Bloomberg
  • Huntington Ingalls' (HII) Mission Technologies division, was recently elected to the executive committee of the Information Warfare Research Project Consortium
  • INmune Bio (INMB) receives patentability opinion for CORDStrom Platform Technology
  • Innate Pharma (IPHA) proposes to its shareholders to transform its corporate governance structure into a Board of Directors
  • IonQ (IONQ) has signed a memorandum of understanding with Intellian Technologies to explore how secure quantum networking can transform satellite communications
  • Interactive Brokers (IBKR) announces a four-for-one forward split of its common stock
  • Interpublic (IPG) appoints Jason Alan Snyder as its first-ever Global Chief AI Officer
  • IREN Limited (IREN) provides mining update - increased its installed self-mining capacity from 37 EH/s to 40 EH/s
  • Kenvue (KVUE) announces 5-year collaboration with Microsoft (MSFT) to transform digital operations
  • Kingsoft Cloud (KC) announces pricing of public equity offering of 18.5 mln shares
  • Kyndryl (KD) launches new AI private cloud services to speed customer development and deployment of enterprise AI Solutions
  • KKR (KKR) mulling sale of Atlantic Aviation for $10 bln, according to Bloomberg
  • L3Harris (LHX) has completed a $125 million expansion at its space manufacturing facility in Fort Wayne to support the Department of Defense’s urgent need for on-orbit technology to defend the homeland by building a “Golden Dome” around the United States
  • Lithia Motors (LAD) announces that COO Adam Chamberlain will transition from his current role on June 1 to join Mercedes-Benz (MBGAF) USA as CEO
  • McDonald's (MCD): The Shareholder Commons urges shareholders to vote against Board Chair Chris Kempczinski
  • Meta Platforms (META) in late March offered to pay $450 mln to settle antitrust case related to buying and freezing out small startups, far from $30 bln FTC demanded, according to the Wall Street Journal
  • NET Power (NPWR) announces that President and COO Brian Allen, and CFO Akash Patel will no longer serve in their roles with the Company; Marc Horstman appointed as new COO effective immediately
  • New Found Gold Corp. (NFGC) Provides Queensway Gold Project Overview and Plans; Files Technical Report
  • Newmont Corporation (NEM) has finalized the previously disclosed sales of its Akyem operation in Ghana and its Porcupine operation in Canada
  • NexPoint Diversified Real Estate Trust (NXDT) and NexPoint Hospitality Trust expect previously announced going private transaction to close on April 17
  • Nvidia (NVDA) did not tell some customers about new export rules, according to Reuters
  • Pinterest (PINS) explored major ad tech acquisition to boost ad sales, eyes partnerships and executive hires, according to The Information
  • Radius Recycling (RDUS): Magnetar Financial discloses 5.51% active stake
  • Rio Tinto (RIO) & Geomega provide update on bauxite residue valorization pilot
  • Sabre (SABR) renews long-term strategic partnership with Preferred Hotels & Resorts to help drive revenue to member hotels, including addition of SynXis Retailing and Gift Cards
  • SolarWinds (SWI) and Turn/River Capital complete merger
  • Sonoco Products (SON) increases quarterly common stock dividend to $0.53/share from $0.52/share
  • South Bow Corporation (SOBO) restarts Keystone Pipeline
  • Telix Pharmaceuticals (TLX): IPAX-Linz study reports efficacy for TLX101 Glioma Therapy Candidate
  • Tesla (TSLA): Tariffs are disrupting Tesla CyberCab production plans, according to Reuters
  • Tesla (TSLA) California sales declined 15% in Q1, according to Business Insider
  • Teva Pharma (TEVA): Glenmark Pharmaceuticals USA to launch dextroamphetamine saccharate, amphetamine aspartate, dextroamphetamine sulfate and amphetamine sulfate tablets
  • Texas Capital (TCBI) announces that President and CEO Rob C. Holmes was confirmed as Chairman of the Board of Directors at the conclusion of TCBI’s 2025 Annual Meeting of Stockholders
  • Varonis Systems (VRNS) announces a trategic partnership with Concentrix Corporation (CNXC) to deliver end-to-end solutions to help large enterprises implement and harness AI safely and effectively while protecting data
  • Vista Energy (VIST) announces the acquisition of Petronas Argentina
  • Webull Corporation (BULL) confirms business combination with SK Growth (SKGR) was completed
  • Woodside Energy Group (WDS) responds to media speculation

• Upgrades:
  • Boston Scientific (BSX) upgraded to Buy from Hold at Needham, tgt $113
  • Caterpillar (CAT) upgraded to Equal Weight from Underweight at Morgan Stanley, tgt $283
  • Cloudflare (NET) upgraded to Outperform from Neutral at Mizuho, tgt $135
  • Freeport-McMoRan (FCX) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $39
  • Grocery Outlet (GO) upgraded to Buy from Hold at Jefferies, tgt $18
    
  • Lockheed Martin (LMT) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $575
  • Pinnacle Financial (PNFP) upgraded to Outperform from Market Perform at Hovde Group, tgt $111
  • Union Pacific (UNP) upgraded to Buy from Neutral at Redburn Atlantic, tgt $259
  • United Rentals (URI) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $702
  • UWM Holdings (UWMC) upgraded to Neutral from Sell at UBS
  • Watts Water (WTS) upgraded to Buy from Hold at Stifel, tgt $229
    
  • Zurn Elkay Water (ZWS) upgraded to Buy from Hold at Stifel, tgt $34
• Downgrades:
  • Agco (AGCO) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $75
  • Ecolab (ECL) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $230
  • Epam Systems (EPAM) downgraded to Neutral from Overweight at Piper Sandler, tgt $170
  • General Dynamics (GD) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $305
  • Hillman Solutions (HLMN) downgraded to Neutral from Outperform at Robert W. Baird
  • Paccar (PCAR) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $96
  • REV Group (REVG) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $33
  • Target (TGT) downgraded to Neutral from Buy at Goldman, tgt $101
  • UMC (UMC) downgraded to Neutral from Outperform at Wedbush
  • U.S. Steel (X) downgraded to Neutral from Overweight at JPMorgan, tgt $38
• Others:
  • Agnico Eagle (AEM) reinstated with an Outperform at BMO Capital, tgt $181
  • Amentum (AMTM) initiated with an Underweight at Morgan Stanley, tgt $19
  • Ascendis Pharma (ASND) initiated with an Outperform at RBC Capital, tgt $205
  • Bowhead Specialty (BOW) initiated with an Overweight at Piper Sandler, tgt $44
  • Hudbay Minerals (HBM) reinstated with an Outperform at BMO Capital
  • Korro Bio (KRRO) initiated with a Buy at Chardan Capital Markets, tgt $25
  • Lyft (LYFT) initiated with an Outperform at Oppenheimer
  • MAC Copper (MTAL) reinstated with an Outperform at BMO Capital, tgt $11
  • Newmont (NEM) reinstated with an Outperform at BMO Capital, tgt $63
  • Nexa Resources (NEXA) reinstated with a Market Perform at BMO Capital, tgt $6
  • Pan American Silver (PAAS) reinstated with a Market Perform at BMO Capital
    
  • Paylocity (PCTY) initiated with a Sector Perform at Scotiabank, tgt $190
  • Reddit (RDDT) initiated with an Outperform at Oppenheimer, tgt $125
  • Royal Gold (RGLD) reinstated with a Market Perform at BMO Capital, tgt $196
  • Select Medical (SEM) initiated with an Outperform at Mizuho, tgt $25
  • UMB Financial (UMBF) reinstated with a Buy at BofA Securities
  • V2X (VVX) initiated with an Underweight at Morgan Stanley, tgt $51
  • Western Digital (WDC) assumed with an Overweight at Morgan Stanley
  • Wheaton Precious Metals (WPM) reinstated with an Outperform at BMO Capital, tgt $129

• Econ Data (Thursday):
  • 8:30 ET: March Housing Starts (Briefing.com consensus 1.418 mln; prior 1.501 mln), Building Permits (Briefing.com consensus 1.455 mln; prior 1.456 mln), weekly Initial Claims (Briefing.com consensus 225,000; prior 223,000), Continuing Claims (prior 1.850 mln), and April Philadelphia Fed Survey (Briefing.com consensus 10.0; prior 12.5)
  • 10:30 ET: Weekly natural gas inventories (prior +57 bcf)
  • 14:00 ET: Early close
• Earnings:
  • Monday (April 14)
    • Pre-Market: GS MTB
    • After-Hours: APLD FBK PNFP
  • Tuesday (April 15)
    • Pre-Market: ACI BAC C ERIC JNJ PNC
    • After-Hours: FLUT HWC IBKR JBHT OMC UAL
  • Wednesday (April 16)
    • Pre-Market: ABT ASML ALV CFG FHN PLD PGR TRV USB
      
    • After-Hours: AA OZK CNS CSX FNB FR HOMB KMI LBRT REXR SFNC SLG SNV TFIN
  • Thursday (April 17)
    • Pre-Market: ALLY AXP BMI SCHW DHI FITB HBAN IIIN KEY MAN MMC RF SNA STT TCBI TFC TSM UNH
    • After-Hours: NFLX
  • Friday (April 18)
    • Pre-Market: None
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike