After Hours Report

The stock market closed sharply higher across the board. The Dow Jones Industrial Average was more than 1,100 points higher than Friday's close. The S&P 500 jumped 3.3% and the Nasdaq Composite closed 4.4% higher.

Market participants were enthused by a notable easing in the trade war with China. Both the U.S. and China agreed to a 90-day reduction in tariffs, effective Wednesday, with the U.S. dropping tariffs on China from 145% to 30% and China dropping tariffs on the U.S. from 125% to 10%.

The good news for the market is that the reductions were larger than expected. The less than good news for the market is that the reductions expire in 90 days if both sides can't reach a more permanent trade deal. 

The market was focused on the positive takeaway for today, fueling an everything-rally. Moves were helped by short-covering activity and a fear of missing out on further gains. 

Outsized moves in the mega cap space also played a big role in the performance of major equity indices. Apple (AAPL 210.79, +12.52, +6.3%) was a standout in that respect, surging 6%.

Apple, along with other mega caps and chipmakers, helped propel the S&P 500 technology sector to close 4.7% higher. The consumer discretionary (+5.7%) and communication services (+3.4%) sectors, which also house mega cap constituents, were among the top performers.

The risk-on bias in the market left the defensive-oriented utilities sector (-0.7%) alone in the red by the close. 

The risk-on skew also resulted in the selling of Treasuries, the gain in the U.S. Dollar Index (+1.6% to 101.90), a drop in gold prices ($3,228.90, -15.80, -3.5%), and the sharp decline in the CBOE Volatility Index (-16.3%, or 3.55, to 18.35).

The 10-yr yield settled eight basis points higher at 4.46% and the 2-yr yield settled 12 basis points higher at 4.00%.

• Dow Jones Industrial Average: -0.3% YTD
• S&P 500: -0.6% YTD
• S&P Midcap 400: -2.3% YTD
• Nasdaq Composite: -3.1% YTD
• Russell 2000: -6.2% YTD

Reviewing today's economic data:

• The Treasury Budget for April showed a surplus of $258.4 billion compared to a surplus of $209.5 billion in the same period a year ago. The April deficit resulted from receipts ($850.1 billion) exceeding outlays ($591.8 billion). The Treasury Budget data are not seasonally adjusted so the April surplus cannot be compared to the March deficit of $160.5 billion.
  • The key takeaway from the report is that there was some relief on the deficit side of things with tax receipts swelling in April; however, the budget deficit at this point in the fiscal year is still 22% greater than in fiscal 2024.

Looking ahead to Tuesday, market participants receive the following economic data:

• 6:00 ET: April NFIB Small Business Optimism Index (prior 97.4)
• 8:30 ET: April CPI (Briefing.com consensus 0.3%; prior -0.1%) and Core CPI (Briefing.com consensus 0.3%; prior 0.1%)

Overseas:

• Europe: DAX +0.3%, FTSE +0.6%, CAC +1.4%
• Asia: Nikkei +0.4%, Hang Seng +3.0%, Shanghai +0.8%

Commodities:

• Crude Oil +0.87 @ 61.92
• Nat Gas -0.11 @ 3.98
• Gold -115.80 @ 3228.90
• Silver -0.29 @ 32.62
• Copper -0.04 @ 4.61

After-Hours Spotlight:

• Arrowhead (ARWR) beats by $3.19, beats on revs... ARWR up 8.1%
• GigaCloud Technology (GCT) beats by $0.16, beats on revs; guides Q2 revs in-line... GCT up 20.3%
• indie Semiconductor (INDI) reports EPS in-line, misses on revs; guides Q2 revs below consensus... INDI down 11.7%
• Power Integrations (POWI) beats by $0.03, reports revs in-line; guides Q2 revs in-line, new $50 mln share-repurchase authorization... POWI down 4.4%
• Rapid7 (RPD) beats by $0.15, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; guides FY25 EPS above consensus, revs below consensus... RPD up 0.9%
• Topgolf Callaway Brands (MODG) beats by $0.17, beats on revs; guides Q2 revs below consensus; reiterates FY25 revs in-line... MODG up 5.4%
• ZoomInfo (ZI) beats by $0.01, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY25 EPS above consensus, revs above consensus.... ZI down 1.4%

Fair Value for Tuesday, May 13:

• S&P 500: 5,861
• Nasdaq 100: 20,940
• DJIA: 42,482

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

• Earnings/Guidance (Full Earnings Calendar):
  • Akero Therapeutics (AKRO) beats by $0.06
  • Dole plc (DOLE) misses by $0.04, beats on revs
  • Essential Utilities (WTRG) beats by $0.23, beats on revs; reaffirms FY25 EPS guidance
  • Fortrea (FTRE) beats by $0.07, beats on revs
  • Hudbay Minerals (HBM) beats by $0.14, beats on revs
  • Macerich (MAC) beats by $0.02, beats on revs
  • Monday.com (MNDY) beats by $0.40, beats on revs; guides Q2 revs in-line; guides FY25 revs above consensus
  • NRG Energy (NRG) beats by $0.93, beats on revs; Reaffirms 2025 capital allocation, and announces agreement to acquire power portfolio from LS Power
  • RadNet (RDNT) misses by $0.37, beats on revs; raises outlook
  • Sally Beauty (SBH) beats by $0.03, misses on revs
  • Seadrill Ltd (SDRL) reports Q1 (Mar) results, revs in-line; reaffirms FY25 revs guidance
  • Sportradar Group AG (SRAD) beats by €0.02, beats on revs; reaffirms FY25 revs guidance
  • Surgery Partners (SGRY) misses by $0.03, reports revs in-line; reaffirms FY25 revs guidance
  • United Parks & Resorts Inc. (PRKS) misses by $0.06, misses on revs
• General News
  • US agrees to cut China tariffs to 30% from 145% for 90 days (20% fentanyl tariffs plus 10% reciprocal tariffs); China agrees to cut retaliatory tariffs from 125% to 10% for 90 days; US and China will establish a mechanism to continue discussions about economic and trade relations; new tariff rates effective Wednesday
  • President Trump will sign executive order today at 9:00 ET that will require government to adopt a “most favored nation” pricing model for prescription drugs
  • President Trump says 10% baseline tariff will remain in place unless an "exceptional" offer is made by a trading partner, according to Bloomberg
  • House Republicans release text of large reconciliation bill which includes extension of 2017 tax cuts for all income levels, spending cuts (Medicaid and green energy spending), energy reform, immigration reform, and a debt ceiling increase of $4 trillion
  • President Trump will visit Saudi Arabia, Qatar and the United Arab Emirates this week. The trip is expected to focus heavily on business deals and new investments from the region, according to Washinton Post
  • Chicago Fed President Goolsbee (FOMC voter) continues to expect lower growth and higher inflation, according to The New York Times
  • Japan doesn't want US trade deal that excludes auto tariffs, according to Bloomberg
  • Treasury Secretary Scott Bessent urges Congress to raise debt ceiling by mid-July to avoid exhaustion of government cash (Republicans want to include debt ceiling increase in large reconciliation bill)
  • Reconciliation bill will include some Medicaid work requirements, but will not reduce the minimum share the government contributes to the program, according to the Wall Street Journal
  • Ukrainian President Volodymyr Zelenskyy will hold talks with Russia after intervention by President Trump, according to the Wall Street Journal
  • India's ceasefire with Pakistan is holding, according to Reuters
  • EU and Japan reinforce tech and digital partnership
  • Court of International Trade will hear arguments on legality of President Trump's tariffs on Tuesday, according to the Wall Street Journal
  • House committees will begin the markup process on the large reconciliation bill Tuesday. The initial bill does not increase taxes on high income earners, according to The Hill
  • OMB Director Russ Vought looking at military spending, according to the Wall Street Journal
  • U.S aviation and airline officials to meet as they consider further reductions at Newark International Airport following breakdowns in radar systems, according to Bloomberg
  • Newark Mayor Ras Baraka was arrested for allegedly trespassing as immigration detention facility, according to NBC News
  • AbCellera (ABCL) Presents Positive Preclinical Data on ABCL575 at the 2025 SID Annual Meeting
  • Alphabet (GOOG): Texas Attor­ney Gen­er­al Ken Pax­ton secures his­toric $1.375 bil­lion set­tle­ment with Google relat­ed to Tex­ans’ data pri­va­cy rights
  • Amylyx Pharmaceuticals (AMLX) announces "positive" Week 48 data from the Phase 2 open-label HELIOS clinical trial of AMX0035 (sodium phenylbutyrate [PB] and taurursodiol [TURSO, also known as ursodoxicoltaurine]) in adults living with Wolfram syndrome
  • Anheuser-Busch InBev (BUD) announces new $300 million investment in manufacturing operations across the U.S.
  • Apogee Therapeutics (APGE) announces positive interim results from the phase 1B trial of APG808, its novel half-life extended IL-4Ra antibody, in patients with mild-to-moderate asthma
  • Apple (AAPL) mulling increasing iPhone prices without blaming price increase on tariffs, according to the Wall Street Journal
  • AstraZeneca (AZN) receives approval for Aerosphere in UK
  • Boeing (BA): The Trump administration will accept luxury Boeing 747-8 jumbo jet as a gift from Qatar, according to ABC News
  • Brown-Forman (BF.A) and Korbel Champagne Cellars announce end of their sales, marketing, and distribution relationship
  • Chewy (CHWY) CFO to step down, reaffirms Q1 guidance, says its long term plan remains intact
  • CSX (CSX) announces tentative labor agreement with locomotive engineers
  • Eli Lilly (LLY) reports Zepbound (tirzepatide) showed superior weight loss over Wegovy (semaglutide) in complete SURMOUNT-5 results published in The New England Journal of Medicine
  • Entegris (ENTG) announces that Bertrand Loy will retire as President and Chief Executive Officer after 13 years in those roles, effective August 18, 2025
  • Fortrea (FTRE) announces CEO stepping down
  • GE Aerospace (GE): US Commerce Department begins investigation of imports of commercial aircraft and jet engines and parts for commercial aircraft and jet engines (232 investigations could result in new tariffs on the sector)
  • Invesco (IVZ) announces April 30, 2025 assets under management
  • Lazard (LAZ) reports April 2025 assets under management
  • Liquidia Technologies (LQDA) provides update on litigation filed by United Therapeutics (UTHR)
  • Lockheed Martin (LMT) awarded a $742 mln US Army contract for production of High Mobility Artillery Rocket Systems
  • Madrigal (MDGL) Announces New Clinical Data Demonstrating Rezdiffra (resmetirom) Significantly Improved Multiple Noninvasive Tests and Portal Hypertension Risk in Patients with Compensated MASH Cirrhosis
  • Marriott (MAR) increases quarterly cash dividend to $0.67/share from $0.63/share
  • Microsoft (MSFT): OpenAI in discussions with Microsoft to unlock new funding, according to Financial Times
  • Novartis AG (NVS) will keep producing medicines for malaria and leprosy, according to Reuters
  • Novo Nordisk A/S (NVO) reports Once-weekly Sogroya is an efficacious and well-tolerated long-acting growth hormone in children with growth disorders
  • PriceSmart (PSMT) appoints Gualberto Hernandez as CFO, effective June 1; Michael McCleary to retire
  • Rio Tinto (RIO) and Sumitomo Metal Mining sign Rio Tinto and Sumitomo Metal Mining sign agreement for Winu Project JV
  • Rio Tinto (RIO): Judge blocks land exchange for Rio Tinto mine, according to Reuters
  • Rocket Pharmaceuticals (RCKT) announces late-breaking oral presentation of Data from Phase 1 Clinical Trial of RP-A601 for PKP2 Arrhythmogenic Cardiomyopathy Accepted at 28th Annual Meeting of the American society of gene and cell therapy
  • Toyota (TM) could be impacted the most from auto tariffs, according to Bloomberg
  • V2X (VVX) announces that its Board of Directors has approved a share repurchase program under which the Company may purchase, from time to time, up to $100 mln of the Company's common stock for a three-year term ending on May 12, 2028

• Upgrades:
  • AB InBev (BUD) upgraded to Buy from Neutral at Goldman, tgt $88'
  • ACI Worldwide (ACIW) upgraded to Buy from Neutral at DA Davidson, tgt $60
  • Astera Labs (ALAB) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $99
  • Cloudflare (NET) upgraded to Outperform from Market Perform at CICC, tgt $154
  • Coinbase (COIN) upgraded to Neutral at Compass Point, tgt $195
  • DraftKings (DKNG) upgraded to Buy from Hold at CBRE, tgt $54
  • eBay (EBAY) upgraded to Buy from Neutral at Daiwa, tgt $70
  • Federal Signal (FSS) upgraded to Overweight from Sector Weight at KeyBanc, tgt $110
  • Forge Global (FRGE) upgraded to Overweight from Neutral at Piper Sandler, tgt $30
  • Hilton (HLT) upgraded to Buy from Hold at Jefferies, tgt $296
  • Johnson Controls (JCI) upgraded to Buy from Hold at Deutsche Bank, tgt $112
  • Marriott (MAR) upgraded to Buy from Hold at Jefferies, tgt $303
  • Monster Beverage (MNST) upgraded to Outperform from Market Perform at CICC, tgt $65
  • SLR Investment (SLRC) upgraded to Buy from Neutral at Ladenburg, tgt $16.50
  • Teva (TEVA) upgraded to Overweight from Neutral at JPMorgan, tgt $23
  • TotalEnergies (TTE) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $60.80
  • Wayfair (W) upgraded to Buy from Hold at Argus, tgt $40
• Downgrades:
  • Amphastar (AMPH) downgraded to Neutral from Overweight at JPMorgan, tgt $30
  • BP (BP) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $26.50
  • Braskem (BAK) downgraded to Neutral from Outperform at Bradesco BBI, tgt $4
  • Docebo (DCBO) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $32
  • Equinor (EQNR) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $22.70
  • Ibex (IBEX) downgraded to Neutral from Outperform at Robert W. Baird, tgt $30
  • Iovance Biotherapeutics (IOVA) downgraded to Hold from Buy at Truist
  • Lucky Strike (LUCK) downgraded to Neutral from Buy at Roth Capital, tgt $9
  • TaskUs (TASK) downgraded to Neutral from Outperform at Robert W. Baird, tgt $16.50
  • Target (TGT) downgraded to Underperform from Market Perform at Bernstein, tgt $82
  • Warner Music (WMG) downgraded to Neutral from Buy at Goldman, tgt $28
• Others:
  • Amentum (AMTM) initiated with an Outperform at Citizens JMP, tgt $30
  • Lionsgate Studios (LION) initiated with a Hold at TD Cowen; tgt $8
  • ON Semiconductor (ON) resumed with an Equal Weight at Morgan Stanley, tgt $39
  • Orange County Bancorp (OBT) initiated with an Outperform at Hovde Group, tgt $30.50
  • Primo Brands (PRMB) initiated with an Outperform at Mizuho, tgt $43
  • Radiopharm (RADX) initiated with a Buy at ThinkEquity, tgt $15

• Econ Data (Tuesday):
  • 06:00 ET: April NFIB Small Business Optimism (Prior 97.4)
  • 08:30 ET: April CPI (Briefing.com consensus 0.3%; prior -0.1%) and Core CPI (Briefing.com consensus 0.3%; prior 0.1%)
• Earnings:
  • Monday (May 12)
    • Pre-Market: CTRI DOLE WTRG FTRE FOXA HBM MAC MNDY NRG RDNT METC SBH SDRL SWX SRAD SGRY PRKS
    • After-Hours: ACHC ARWR BCO CNNE DVA GETY GCT HTZ HPK INDI IAS MLNK NFE PLUG POWI RPD RPAY SPG SARO MODG VTLE XENE ZI
  • Tuesday (May 13)
    • Pre-Market: CAMT IMOS CYBR HUYA IGT JD LEGN LOAR ONON PSFE SE SLAB TME UAA
    • After-Hours: CAE ECG EXEL KRMN KLC OKLO WBTN
  • Wednesday (May 14)
    • Pre-Market: ARCO CLBT DT DAVA GLBE KRNT RSKD SRRK SFL SONY TSEM
      
    • After-Hours: BOOT CSWC CSCO DLO DXC IBTA JACK LAZR NXT STE
  • Thursday (May 15)
    • Pre-Market: WMS BABA BIRK CSIQ DE GAMB BEKE MRX NTES WMT ZK
    • After-Hours: AMAT CAVA DOCS GLOB TTWO
  • Friday (May 16)
    • Pre-Market: BRC FLO RBC
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike