After Hours Report

Updated: 17-Jun-25 17:03 ET

Plains All American selling NGL business to Keyera

The major indices shifted lower today, unable to build on yesterday's gains as geopolitical worries took over as a primary driver. Specifically, the day started on a cautious-minded note following the news that President Trump left the G-7 Summit abruptly to get back to Washington to attend to an evolving Israel-Iran conflict.

The president said in a Truth Social post that everyone should evacuate Tehran immediately. That set the tone for a soft start, along with the report that retail sales and industrial production were both weaker than expected in May. Selling efforts picked up in the afternoon, however, when the president took to Truth Social again to say that we (the U.S.) know where Iran's Supreme Leader is, that he is an easy target, but that we are not going to take him out (kill!) -- at least not for now. He added that "our patience is wearing thin."

These remarks were made as speculation swirled that the U.S. could possibly get involved in the conflict by dropping "bunker bombs" built by the U.S. and flown by the U.S. to destroy Iran's nuclear enrichment facilities that lie deep underground.

The president's comments quickly led to de-risking behavior that took the S&P 500 back below 6,000 and triggered additional safe-haven buying interest in Treasuries and the dollar. The 2-yr note yield settled the day down two basis points at 3.95%, while the 10-yr note yield dropped seven basis points to 4.39%. The U.S. Dollar Index was up 0.8% to 98.76.

Every S&P 500 sector was down today, with the exception of energy (+1.0%). It deviated from the pack, following WTI crude futures higher (73.27, +1.44, +2.0%), which did an about-face from Monday.

Health care (-1.6%) was the biggest sector laggard amid reports discussing the possibility of stricter disclosure rules and tighter regulations over pharmaceutical advertising and a Senate Finance Committee proposal for larger cuts to Medicaid spending than what was proposed by the House. Eli Lilly (LLY 791.27, -16.31, -2.02%) was caught up in the sector's weakness as it also announced an approximately $1.0-1.3 billion cash acquisition of Verve Therapeutics (VERV 11.38, +5.11, +81.50%).

There was some added attention on the underperformance of the consumer discretionary sector (-1.6%). Many components traded lower in a knee-jerk response to the retail sales report; however, the sector's homebuilding components were down on industry news that included an earnings miss and disappointing outlook from Lennar (LEN 104.61, -4.88, -4.46%) and a dour NAHB Housing Market Index for June, which dropped to 32 (Briefing.com consensus 36) from 34 in May.

Breadth figures reflected today's more risk-averse tone, as did the 12.7% increase in the CBOE Volatility Index to 21.54. Decliners led advancers by a better than 2-to-1 margin at the NYSE and Nasdaq.

S&P 500: +1.7% YTD
Nasdaq: +1.1% YTD
DJIA: -0.8% YTD
S&P 400: -3.4% YTD
Russell 2000: -5.7% YTD

Reviewing today's economic data:

Retail sales declined 0.9% month-over-month in May (Briefing.com consensus -0.6%) following a downwardly revised 0.1% decline (from 0.1%) in April. Excluding autos, retail sales fell 0.3% month-over-month (Briefing.com consensus 0.1%) following a downwardly revised unchanged reading (from 0.1%) in April.
- This was not a good report in terms of hard economic data. It reflected a more cautious-minded consumer, who, in general, pulled back spending on goods. Clothing and accessories store sales (+0.8%) were a surprising outlier, but otherwise, there was a retrenchment in spending in many discretionary categories, including electronics and appliance store sales (-0.6%) and food services and drinking places (-0.9%). This report will help support arguments that the Fed should be cutting rates soon.
Industrial production fell 0.2% month-over-month in May (Briefing.com consensus 0.1%) following an upwardly revised 0.1% increase (from 0.0%) in April. The capacity utilization rate was 77.4% (Briefing.com consensus 77.7), down from an unrevised 77.7% in April. Total industrial production increased 0.6% yr/yr while the capacity utilization rate was 2.2 percentage points below its long-run average.
- The key takeaway from the report is that manufacturing output was little changed in May despite the announcement in early April that the reciprocal tariffs would be paused. The tepid activity is consistent with slower economic growth in its own right and likely also reflects the planning uncertainty that goes hand-in-hand with the tariff uncertainty.
Import prices were unchanged in May after increasing 0.1% in April, while import prices, excluding oil, increased 0.3% after increasing 0.4% in April. Export prices fell 0.9% after increasing 0.1% in April, while export prices, excluding agriculture, fell 1.0% after rising 0.1% in April.
The NAHB Housing Market Index fell to 32 in June (Briefing.com consensus 36) from 34 in May.
Business Inventories were unchanged in April (Briefing.com consensus 0.0%) after rising a revised 0.1% (from 0.0%) in March.

Overseas:

Europe: DAX -1.1%, FTSE -0.5%, CAC -0.8%
Asia: Nikkei +0.6%, Hang Seng -0.3%, Shanghai flat

Commodities:

Crude Oil +1.44 @ 73.27
Nat Gas +0.11 @ 3.86
Gold -10.40 @ 3406.80
Silver +0.70 @ 37.16
Copper -0.03 @ 4.81

After-Hours Spotlight:

Amazon (AMZN) Ads and Disney (DIS) Advertising announce collaboration... AMZN unchanged/DIS down 0.4%
Bitdeer Technologies (BTDR) files $300 mln convertible notes private offering... BTDR down 6.8%
Corporación América Airports (CAAP) reports a 15.9% year-on-year increase in passenger traffic in May 2025... CAAP up 2.7%
La-Z-Boy (LZB) misses by $0.01, beats on revs; guides Q1 revs in-line... LZB down 0.2%
Pegasystems (PEGA) shareholders approve two-for-one stock split, rading will begin on a split-adjusted basis on June 23... PEGA down 0.7%
Plains All American (PAA) executes definitive agreements for $3.75 billion sale of NGL business to Keyera... PAA up 2.9%

Fair Value for Wednesday, June 18:

S&P 500: 6,040
Nasdaq 100: 21,958
DJIA: 42,564

Today's News Summary:

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

Earnings/Guidance (Full E arnings Calendar):
- Jabil (JBL) beats by $0.24, beats on revs; mid-point of AugQ EPS and revenue guidance above consensus
- Lennar (LEN) misses by $0.13, beats on revs, provides outlook
- TechTarget (TTGT): Informa TechTarget confirms five-month revenues in line with first half 2025 guidance
- Wiley (WLY) beats single est by $0.10, beats single est on revs; guides FY26 EPS above single estimate, revs in-line
General News
- President Trump leaves G-7 early and returns to Washington, DC to focus on Middle East; says "everyone should immediately evacuate Tehran" (Iran's capital); denies reports that he has reached out to Iran for peace talks
- President Trump requested that his national security team be ready in the White House Situation Room today and told reporters he wants a "real end" to Iran's nuclear program, according to ABC News
- President Trump posted on Truth Social "We know exactly where the so-called "Supreme Leader" is hiding. He is an easy target, but is safe there—we are not going to take him out (kill!), at least not for now. But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!"
- President Trump confirms implementation of UK/US trade deal, according to the Independent
- G7 Leaders’ issue statement on recent developments between Israel and Iran
- European Commission President von der Leyen said at the G7 summit that EU countries should have a unified approach to challenging China's trade practices
- Senate Republicans acknowledge the $10K cap for state and local tax deduction is a placeholder for future negotiations as New York House Republicans say the cap is too low, according to The Hill
- Senate tax committee proposed a full phase-out of solar and wind energy tax credits by 2028, according to Reuters
- Senate Republicans to omit Medicare Advantage cuts, but proposes more aggressive Medicaid cuts, according to Bloomberg
- Senator Ron Johnson (R-WI) says he will not support the reconciliation bill because it doesn't cut spending enough, according to The Hill
- The Bank of Japan left its policy rate at 0.50%, as expected, and voted to slow JGB purchases by JPY200 bln per quarter, starting April 2026
- Canadian Prime Minister Mark Carney expects a trade deal with the U.S. in 30 days, according to Reuters
- President Trump tells reporters that the EU is not offering a fair trade deal, according to Reuters
- President Trump says he might extend TikTok deadline again, according to Reuters
- Central banks are planning to purchase more gold this year and expect dollar holdings will fall, according to FT
- Eurozone's June ZEW Economic Sentiment 35.3 (expected 23.5; last 11.6)
- IEA says amid rising geopolitical strains, oil markets face new uncertainties as the drivers of supply and demand growth shift
- Amazon (AMZN): Announces Prime Day Event from July 8 to July 11, Offering Members More Time to Shop and Save
- Apple (AAPL) will have to face a consumer lawsuit over iCloud storage, accoridng to Economic Times
- Arista Networks (ANET) names Todd Nightingale as COO
- Ballard Power (BLDP) CEO Randy MacEwen to step down, with Marty Neese assuming the position, effective July 7
- Boeing (BA): U.S. clears potential $2bln sale of fighter jet parts to Australia, with Boeing as lead contractor, according to reuters
- Castle Biosciences (CSTL) enters in to collaboration and license agreement with SciBase
- Fastly (FSLY) appoints Kim Compton as CEO, effective immediately
- Ferrari (RACE) aiming to delay second EV model until 2028 due to weak demand, according to Reuters
- FrontView REIT (FVR) terminates CFO Randall Starr for cause, effective immediately
- Microsoft (MSFT): OpenAI discussing making antitrust complaints to regulators, according to WSJ
- NASDAQ (NDAQ) announced annual meeting results yesterday; Board Re-elects Adena T. Friedman as Chair of the Board
- Oracle (ORCL) provides several updates at Oracle Defense Tech Summit
- Softbank (SFTBY) raised $4.8 billion for T Mobile (TMUS) stake sale, according to Bloomberg
- Trip.com (TCOM) announces deal with MMYT to purchase MMYT shares from TCOM
- UnitedHealth (UNH) cuts commissions for brokers on some Medicare Advantage Plans, according to Bloomberg
- Yum! Brands (YUM) appoints Chris Turner as Chief Executive Officer effective October 1, 2025

Upgrades:
- Alkermes (ALKS) upgraded to Buy from Neutral at UBS, tgt $42
- Comstock Resources (CRK) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $34
- Cooper Companies (COO) upgraded to Buy from Hold at Needham, tgt $94
- Roku (ROKU) upgraded to Buy from Hold at Loop Capital, tgt $100
Downgrades:
- FrontView REIT (FVR) downgraded to Neutral from Overweight at JPMorgan, tgt $12
- Health Catalyst (HCAT) downgraded to Neutral from Buy at BTIG Research
- Millicom (TIGO) downgraded to Sector Perform from Outperform at Scotiabank, tgt $37
- Navitas Semiconductor (NVTS) downgraded to Hold from Buy at Deutsche Bank, tgt $3.50
- Nutrien (NTR) downgraded to Market Perform from Outperform at Raymond James, tgt $68
Others:
- Acumen Pharmaceuticals (ABOS) initiated with a Buy at Citigroup, tgt $4
- Amylyx (AMLX) initiated with a Buy at Citigroup, tgt $12
- Arcellx (ACLX) initiated with a Buy at Citigroup, tgt $110
- Artivion (AORT) initiated with a Buy at Canaccord Genuity, tgt $35
- Avidity Biosciences (RNA) initiated with an Outperform at Wolfe Research, tgt $55
- Beazer Homes (BZH) initiated with a Buy at Texas Capital, tgt $25
- BridgeBio (BBIO) initiated with an Outperform at Wolfe Research, tgt $49
- Century Communities (CCS) initiated with a Buy at Texas Capital, tgt $68
- Coinbase (COIN) initiated with a Buy at China Renaissance, tgt $353.30
- EOG Resources (EOG) initiated at Equal Weight at Stephens, tgt $137
- EyePoint (EYPT) initiated with an Outperform at RBC Capital, tgt $28
- Galectin Therapeutics (GALT) assumed with a Buy at H.C. Wainwright, tgt $6
- Green Brick (GRBK) initiated with a Buy at Texas Capital, tgt $71
- Legacy Housing (LEGH) initiated with a Buy at Texas Capital, tgt $29
- LGI Homes (LGIH) initiated with a Hold at Texas Capital, tgt $56
- NewAmsterdam Pharma (NAMS) initiated with a Buy at Citigroup, tgt $42
- Novavax (NVAX) initiated with a Sell at Citigroup, tgt $6
- Opus Genetics (IRD) initiated with a Buy at Lucid Capital, tgt $5
- Protagonist Therapeutics (PTGX) initiated with a Buy at Citigroup, tgt $72
- PTC Therapeutics (PTCT) initiated with a Buy at Truist, tgt $80
- SAP (SAP) initiated at Overweight at Piper Sandler
- Sarepta (SRPT) initiated with a Peer Perform at Wolfe Research
- Theravance Biopharma (TBPH) initiated with a Buy at JonesResearch, tgt $24
- Vertex (VERX) initiated at Overweight at Piper Sandler, tgt $48
- Venture Global (VG) initiated with a Buy at Johnson Rice, tgt $20

Econ Data (Wednesday):
- 07:00 ET: MBA Mortgage Applications Index (prior 12.5%)
- 08:30 ET: Initial Jobless Claims (Briefing.com consensus 253K; prior 248K) and Continuing Jobless Claims (prior 1956K)
- 08:30 ET: May Housing Starts (Briefing.com consensus 1356K; prior 1361K) and Building Permits (Briefing.com consensus 1411K; prior 1412K)
- 10:30 ET: EIA Crude Oil Inventories (prior -3.64M)
- 12:00 ET: EIA Natural Gas Inventories (prior +109 bcf)
- 14:00 ET: FOMC Rate Decision and Summary of Economic Projections
- 16:00 ET: April Net Long-Term TIC Flows
Earnings:Monday (June 16)
Pre-Market: None
After-Hours: LEN
Tuesday (June 17)
Pre-Market: JBL WLY
After-Hours: LZB
Wednesday (June 18)
Pre-Market: GMS KFY
After-Hours: SWBI
Thursday (June 19)
Pre-Market: None
After-Hours: None
Friday (June 20)
Pre-Market: ACN KMX DRI KR
After-Hours: None