After Hours Report

It was a much better-looking market today than yesterday. Yesterday's market wasn't "bad" in terms of returns, but it wasn't so great in terms of participation. Today was a different story. The returns looked even better, and the participation was broad-based.

Advancers led decliners by a better than 4-to-1 margin at the NYSE and by a better than 2-to-1 margin at the Nasdaq.

An encouraging earnings report and outlook from Micron (MU 126.00, -1.25, -0.98%), which was up 107% from its April 7 low going into the report, provided the jumpstart, along with hopes of easier monetary policy that were stirred by a Wall Street Journal report indicating the president is thinking about naming the replacement for when Fed Chair Powell's term ends in May 2026 by September or October, if not sooner. The 2-yr note yield dropped six basis points to 3.72%, and the 10-yr note yield fell four basis points to 4.25%.

A strong durable goods orders report for May and a comforting initial jobless claims report for the week ending June 21 lent some added support with their positive growth takeaways, overshadowing the downward revision to the dated Q1 GDP report.

The communication services sector (+1.8%) was today's best-performing sector, but the cyclical energy (+1.5%), consumer discretionary (+1.2%), industrials (+1.1%), and materials (+1.1%) sectors outperformed in today's session, which was subsidized by continued advances in the mega-cap stocks.

Separately, the Philadelphia Semiconductor Index, paced by gains in Marvell (MRVL 79.97, +4.04, +5.32%) and Broadcom (AVGO 270.17, +5.52, +2.09%), rose 0.9%, bringing its quarterly gain to 29.8%. NVIDIA (NVDA 155.02, +0.71, +0.46%) also contributed to today's move.

While the mega-cap cohort did just fine today, it was the small-cap and mid-cap stocks that shined. The Russell 2000 finished up 1.7%, while the S&P Midcap 400 Index increased 1.3%.

The S&P 500, which needed a move above 6,147.43 to set a new all-time high, came within a whisker of doing so, hitting an intraday high of 6,146.52. It also flirted with a record closing high but fell just short in that regard, too.

• S&P 500: +4.4% YTD
• Nasdaq: +4.4% YTD
• DJIA: +2.0% YTD
• S&P 400: -0.8% YTD
• Russell 2000: -2.6% YTD

Reviewing today's data:

• Durable goods orders surged 16.4% month-over-month in May (Briefing.com consensus 6.6%) on a 230.8% increase in orders for nondefense aircraft and parts. Excluding transportation, durable goods orders were up 0.5% month-over-month (Briefing.com consensus 0.1%).
  • The key takeaway, however, is that new orders for nondefense capital goods, excluding aircraft -- a proxy for business spending -- increased 1.7% on the heels of a 1.4% decline in April, reflecting a strong rebound after the reciprocal tariff pause announcement.
• Initial jobless claims for the week ending June 21 decreased by 10,000 to 236,000 (Briefing.com consensus 247,000), while continuing jobless claims for the week ending June 14 increased by 37,000 to 1.974 million, which is the highest level since November 6, 2021.
  • The key takeaway from the report is that initial jobless claims -- a leading indicator -- remain entrenched at fairly low levels that are not associated with a recession or even a significant slowdown for that matter, but to be fair, continuing jobless claims are elevated and do point to some softening in the labor market. Businesses may not be laying off a lot of employees, but it has gotten more challenging to find a new job after losing a job.
• The third estimate for Q1 GDP featured a downward revision to -0.5% (Briefing.com consensus -0.2%) from the second estimate of -0.2% that was driven by downward revisions to consumer spending and exports that were partly offset by a downward revision to imports. The GDP Price Deflator increased to 3.8% (Briefing.com consensus 3.7%) from the second estimate of 3.7%.
  • The key takeaway is that this report is very much "dated," given that we are just a few days away from the end of the second quarter, so it shouldn't have much cachet as a mover for a market that has been cheered since early April by the arrival of hard economic data that has quieted recession concerns. 
• The Advance International Trade in Goods deficit widened to $96.6 billion in May from -$87.0 billion in April, with exports dropping more than imports. Adv. Retail Inventories increased 0.3% after being unchanged in April, and Adv. Wholesale Inventories fell 0.3% after a 0.1% increase in April.
• May Pending Home Sales +1.8% (Briefing.com consensus 0.4%; prior -6.3%).

Overseas:

• Europe: DAX +0.6%, FTSE  +0.2%, CAC unch
• Asia: Nikkei +1.7%, Hang Seng -0.6%, Shanghai -0.2%

Commodities:

• Crude Oil +0.36 @ 65.24
• Nat Gas -0.09 @ 3.31
• Gold -5.30 @ 3348.50
• Silver +0.47 @ 36.59
• Copper +0.15 @ 5.12

After-Hours Spotlight:

• Concentrix (CNXC) misses by $0.05, beats on revs; guides Q3 EPS in-line, revs above consensus; raises FY25 EPS and revenue guidance... CNXC down 8.9%
• Cormedix (CRMD) announces proposed public offering of $84 mln of common stock... CRMD down 10.4%
• DNOW Inc. (DNOW) to acquire MRC Global in an all-stock transaction valued at approximately $1.5 bln... DNOW up 1.5%
• Domo (DOMO) announces expanded collaboration with Snowflake (SNOW) to deliver a suite of applications on Snowflake Marketplace... DOMO up 2.6%
• J.M. Smucker (SJM) announces commitment to remove FD&C colors from all consumer food products by the end of CY27... SJM unchanged
• lululemon athletica (LULU) files mixed securities shelf offering... LULU unchanged
• NIKE (NKE) beats by $0.01, beats on revs, gross margin decreased 44 bps, North America revenue down 11%; Expects headwinds from "Win Now" actions to moderate going forward... NKE down 0.2%

Fair Value for Friday, June 27:

• S&P 500: 6,193
• Nasdaq 100: 22,665
• DJIA: 43,693

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

• Earnings/Guidance (Full Earnings Calendar):
  • Acuity (AYI) beats by $0.68, beats on revs
  • Coca-Cola (KO) discloses that it expects $2.2 bln in CapEx in 2025
  • Encompass Health (EHC) published its 2025 Investor Reference Book with longer term guidance
  • Equinix (EQIX) provides longer term guidance at analyst day
  • H.B. Fuller (FUL) beats by $0.10, reports revs in-line; raises FY25 EPS and revenue guidance
  • HIVE Digital Technologies (HIVE) reports FY25 results; misses on revs
  • Jefferies (JEF) misses by $0.04, beats on revs, Investment Banking net revenues up 6% yr/yr
  • Lindsay Corp (LNN) beats by $0.38, beats on revs
  • McCormick (MKC) beats by $0.04, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance
  • Micron (MU) beats by $0.31, beats on revs; guides Q4 EPS above consensus, revs above consensus
  • MillerKnoll (MLKN) beats by $0.16, beats on revs; guides Q1 EPS in-line, revs above consensus
  • Raymond James (RJF) reports May operating data
  • Steelcase (SCS) beats by $0.06, beats on revs; guides Q2 EPS below consensus, revs in-line
  • Trex (TREX) reaffirms Q2 and FY25 revenue outlook
  • Walgreens Boots Alliance (WBA) beats by $0.05, beats on revs; Given pending transaction with Sycamore Partners, company previously withdrew its FY25 guidance
  • Worthington Steel (WOR) beats dual estimate by $0.23, beats on revs
• General News
  • Multiple Republican senators tell leadership that they are not ready to support the reconciliation bill and want changes to certain provisions, according to Politico
  • Senate considering delays Medicaid cuts in large reconciliation bill, according to PunchBowl News
  • President Trump considers announcing his selection for 2026 Fed Chair this summer. Kevin Warsh, Scott Bessent, and Christopher Waller are among the contenders, according to WSJ
  • Senator Susan Collins (R-ME) wants tax hike on those making $100 mln or more as part of reconciliation bill, according to Bloomberg
  • EU debating if they want a quick trade deal with U.S. of if they want to fight for better terms, according to Reuters
  • China still dragging out approvals for rare earth exports, according to WSJ
  • China to loosen ban on urea exports, according to Bloomberg
  • CDC Advisory Committee on Immunization Practices votes 6-0 to approve annual flu vaccine
  • Summer gas prices hit lowest level since 2021, according to NY Times
  • Federal Reserve officials' recent shift against July interest rate cut discussed in Bloomberg report
  • FAA Administrator Chris Rocheleau says "It has been thrilling to see advanced air mobility technologies in action. The FAA is working to safely integrate these new aircraft into our nation’s airspace while supporting innovation and shaping the future of global aviation"
  • White House Press Secretary Karoline Leavitt says the July 9 tariff deadline is "not critical"; says President Trump can always "pick a reciprocal tariff rate" for countries that refuse to make deals; asked if deadline could be extended; she said "perhaps", but that is up to President Trump
  • EU considers lowering tariffs on a variety of imports in order to secure a trade deal with the Trump administration, according to WSJ
  • Bank of Mexico's Governing Board decided to lower the target for the overnight interbank interest rate by 50 basis points to 8.00%
  • EU receives latest counterproposal from the Trump administration on trade, according to Politico
  • Aduro Clean Technologies (ADUR) welcomes David Weizenbach as Chief Operating Officer
  • Aldeyra Therapeutics (ALDX) announces receipt of a Special Protocol Assessment Agreement Letter from the U.S. FDA for ADX-2191, an investigational drug candidate, for the treatment of primary vitreoretinal lymphoma, a rare and potentially fatal cancer currently lacking FDA-approved therapy
  • Altimmune (ALT) announces "positive" topline results from the Impact Phase 2b Trial of Pemvidutide in the treatment of MASH
  • Alvotech (ALVO) agrees to lowered interest rate on senior secured term loan facility
  • Amazon (AMZN): AWS VP behind generative AI and Bedrock exits Amazon as talent battle escalates, according to Reuters
  • Apple (AAPL) will change application store rules to avoid EU fines, according to FT
  • Asana (ASAN) names Dan Rogers as CEO
  • Aurora Cannabis (ACB) expands patient access to medical cannabis in Canada with extended compassionate pricing program
  • BeOne Medicines (ONC) announce major advancements to its industry-leading oncology pipeline during today’s investor R&D Day
  • Bit Digital (BTBT) initiates a strategic transition to become a pure play Ethereum staking and treasury company
  • Blink Charging (BLNK) says "All certified Honda (HMC) dealerships must upgrade their EV charging by 2026 & Blink is here with special pricing for all orders placed before the end of 2025"
  • BRC Inc. (BRCC) eliminated the position of Chief Technology and Operations Officer, effective upon the departure of the current Chief Technology and Operations Officer, Christopher Clark
  • Cerence (CRNC) sees intraday volume spike on PTO ruling in Samsung (SSNLF) case
  • Charter (CHTR) and Walt Disney (DIS) broaden partnership with free Hulu for Spectrum TV Select and return of key channels
  • Compass Diversified (CODI) provides an update on its financial statements amid the ongoing investigation into Lugano Holding
  • ContextLogic (LOGC) announces appointment of Michael Scarola as CFO, effective June 30
  • Core Scientific (CORZ): CoreWeave (CRWV) revives bid to acquire CORZ as AI infrastructure demands grow, according to WSJ
  • Corebridge Financial (CRBG) announces transformative individual retirement variable annuity transaction with venerable
  • CRISPR Therapeutics (CRSP) reports "positive" additional Phase 1 data for CTX310 targeting ANGPTL3 and provides update on in Vivo cardiovascular pipeline
  • Dominion Energy (D) elected a new independent director, Jeffrey J. Lyash as part of continuing board refreshment
  • Edgewise Therapeutics (EWTX) reports 'positive' results on sevasemten program for Becker and Duchenne Muscular Dystrophies
  • enCore Energy (EU) Announces High Uranium Extraction Rates in South Texas; Commends Texas for Energizing its Nuclear Energy Strategy with Passage of Three Key Bills
  • Energy Fuels (UUUU) receives approval for operations at Donald Rare Earth and Mineral Sand Project
  • Equinor (EQNR) and Shell (SHEL) provide joint venture update; name UK North Sea’s largest independent oil and gas producer Adura
  • Equinor (EQNR) and its Fram partners will invest more than NOK 21 billion in a new subsea development
  • FS KKR Capital (FSK) Co-President Brian Gerson to resign effective as of June 28, 2025, in order to pursue other professional opportunities
  • FTI Consulting (FCN) among consulting firms who received letters from the Trump administration asking them to justify contracts, according to WSJ
  • fuboTV (FUBO) and Weigel Broadcasting Co announce a multi-year agreement for distribution of seven networks including MeTV, and WCIU, the U Chicago
  • Galaxy Digital (GLXY) announces Final Close of Oversubscribed Galaxy Ventures Fund I at over $175 mln
  • General Dynamics (GD) awarded a $580 million Integrated Base Defense Sustainment Support task order to continue enhancing the security and readiness of U.S. Army bases
  • Glaukos (GKOS) announces EU MDR certification for iStent infinite
  • Granite Constr (GVA) to expand southern Nevada Water infrastructure with addition of rice pumping station
  • ICL Group (ICL) signed agreements for the supply of potash to customers in both China and India for the year 2025
  • I-Mab (IMAB) reports 'positive' Givastomig Phase 1b dose escalation data in combination with immunochemotherapy in patients with 1L gastric cancers at ESMO GI 2025
  • Incyte (INCY) announces that the Company’s Board of Directors has unanimously appointed Bill Meury as President and Chief Executive Officer and a member of the Company’s Board of Directors, effective immediately
  • Intl Game Tech's (IGT) Canada Solutions subsidiary signs an eight-year agreement with Atlantic Lottery to supply its IntelligenEVO video lottery central system technology across Atlantic Canada
  • Lockheed Martin (LMT) awarded a $250 mln modification to previously awarded US Navy contract
  • Maravai Life Sciences (MRVI) appoints Rajesh Asarpota as CFO, effective June 30
  • Merck (MRK) announces that the U.S. Centers for Disease Control and Prevention Advisory Committee on Immunization Practices voted to recommend ENFLONSIA as an option for the prevention of respiratory syncytial virus lower respiratory tract disease in infants younger than 8 months of age who are born during or entering their first RSV season
  • Meta (META) poached three researchers from OpenAI, according to WSJ
  • Meta (META) secures win in artificial intelligence copyright case, according to FT
  • Meta Platforms (META) in discussions to acquire PlayAI, according to Bloomberg
  • Mobilicom Ltd. (MOB) and Palladyne AI (PDYN) partner to deliver cybersecure autonomy for drones, industrial robots and other unmanned systems
  • Novartis AG (NVS): ProFound Therapeutics announces multi-year strategic collaboration with Novartis to discover and develop novel therapeutics for cardiovascular disease
  • Novo Nordisk (NVO) continues efforts to support patient access to authentic, FDA approved Wegovy® and prioritize patient safety
  • Palantir Technologies (PLTR) and The Nuclear Company Partner to Launch Platform to Rapidly Scale Nuclear Deployment
  • Peabody (BTU) extended lockout of Helensburgh mine, according to Reuters
  • Pfizer (PFE) announces "positive" topline phase 3 results for HYMPAVZI in hemophilia A or B with inhibitors
  • PureTech Health plc (PRTC) founded entity Vor Bio (VOR) announces exclusive global license agreement with RemeGen for late-stage autoimmune asset and $175 million private placement
  • Qiagen (QGEN) elects Stephen Rusckowski as Chairman following the Annual General Meeting of Shareholders on June 26
  • Reitar Logtech Holdings (RITR) initiates spin-off of Logistics Automation Unit
  • Rivian Automotive (RIVN) aiming to eliminate dozens of manufacturing jobs, according to Tech Crunch
  • Rocket Lab USA (RKLB) successfully launches its 67th Electron rocket on a dedicated launch for radio frequency geospatial analytics provider HawkEye 360
  • Serve Robotics (SERV) launches service in Atlanta market
  • Tesla (TSLA) Executive Omead Afshar departs amid broader leadership turnover, according to Bloomberg
  • Tesla (TSLA) Robotaxis had first safety concern reported by Austin, according to Business Insider
  • Tempus AI (TEM): Ambry Genetics announces that a peer-reviewed study validating the accuracy of the Ambry CARE Program for hereditary cancer risk assessment has been published in the Journal of the National Comprehensive Cancer Network
  • Tesla (TSLA) Robotaxi's had traffic problems in first tests, according to Reuters
  • Theravance Biopharma (TBPH) announces approval of YUPELRI (revefenacin) by China's NMPA
  • Travel + Leisure Co (TNL) announces closing of Seventh Amendment to its credit agreement, establishing a new $1.0 bln revolving credit facility scheduled to mature in June 2030 on improved terms
  • Trex (TREX) announces that Brenda Lovcik has resigned as CFO to accept a position in Minnesota; The company has begun a search to identify the next CFO
  • Turkcell (TKC) to issue lease certificates and debt instrument
  • Uber (UBER) in discussions with founder to fund a self driving car acquisition of U.S. unit of Pony.AI (PONY), according to NY Times
  • Valneva SE (VALN) enters exclusive vaccine marketing and distribution agreement for Germany with CSL Seqirus
  • Viatris (VTRS) announced positive top-line results from VEGA-3, the second pivotal Phase 3 trial evaluating MR-141 in presbyopia
  • Walmart (WMT) will soon close Sam's Club fulfillment center in Forth Worth, TX, according to Reuters
  • Waymo (GOOG, GOOGL) could be worth $45 bln based on Tesla (TSLA) Robotaxi launch, according to WSJ
  • Wiley (WLY) approves a $250 mln share repurchase authorization and raises quarterly dividend to $0.355/share for annualized dividend of $1.42/share compared to prior annualized dividend of $1.41/share

• Upgrades:
  • Amcor (AMCR) upgraded to Buy from Neutral at UBS
  • Elanco (ELAN) upgraded to Outperform from Market Perform at William Blair
  • FactSet (FDS) upgraded to Market Perform from Underperform at Raymond James
  • Forward Air (FWRD) upgraded to Buy from Hold at Stifel, tgt $29
  • General Mills (GIS) upgraded to Outperform from Sector Perform at RBC Capital, tgt $63
  • Helios Technologies (HLIO) upgraded to Overweight from Sector Weight at KeyBanc, tgt $40
  • IAG (ICAGY) upgraded to Outperform from Market Perform at Bernstein
  • Kinross Gold (KGC) upgraded to Buy from Hold at Jefferies, tgt $18
  • Penn Entertainment (PENN) upgraded to Outperform from Market Perform at Citizens JMP, tgt $24
  • Truist Financial (TFC) upgraded to Buy from Neutral at Citigroup, tgt $55
  • Texas Pacific Land (TPL) upgraded to Buy from Hold at Texas Capital, tgt $1,280
• Downgrades:
  • Adaptimmune (ADAP) downgraded to Neutral from Outperform at Mizuho, tgt $0.50
  • ASML (ASML) downgraded to Hold from Buy at Jefferies
  • Equinix (EQIX) downgraded to Market Perform from Outperform at BMO Capital, tgt $850
  • Equinix (EQIX) downgraded to Market Perform from Strong Buy at Raymond James
  • MGM Resorts (MGM) downgraded to Market Perform from Outperform at Citizens JMP
  • New Fortress Energy (NFE) downgraded to Neutral from Buy at BTIG Research
  • Trade Desk (TTD) downgraded to Equal Weight from Overweight at Wells Fargo, tgt $68
• Others:
  • Amer Sports (AS) initiated with an Overweight at Piper Sandler, tgt $45
  • Amcor (AMCR) resumed with an Overweight at Wells Fargo, tgt $10
  • Amrize (AMRZ) initiated with a Neutral at BofA Securities, tgt $56
  • Arista Networks (ANET) initiated with an Overweight at KeyBanc, tgt $115
  • Bankwell Financial (BWFG) initiated with a Market Perform at Raymond James
  • Capricor Therapeutics (CAPR) initiated with a Buy at B. Riley Securities, tgt $21
  • Centrus Energy (LEU) initiated with a Neutral at JPMorgan, tgt $148
  • Cisco (CSCO) initiated with an Overweight at KeyBanc, tgt $77
  • Dell Technologies (DELL) initiated with a Sector Weight at KeyBanc
  • Dutch Bros (BROS) initiated with a Neutral at Goldman, tgt $75
  • Dyne Therapeutics (DYN) initiated with a Buy at JonesResearch, tgt $30
  • Eupraxia Pharmaceuticals (EPRX) initiated with a Buy at H.C. Wainwright, tgt $12
  • Haemonetics (HAE) initiated with an Outperform at Robert W. Baird, tgt $87
  • HP Enterprise (HPE) initiated with a Sector Weight at KeyBanc
  • Ideaya Biosciences (IDYA) initiated with an Overweight at Wells Fargo, tgt $44
  • JBS (JBS) initiated with an Outperform at BMO Capital, tgt $20
  • NRG Energy (NRG) initiated with an Overweight at Barclays, tgt $197
  • Nutanix (NTNX) initiated with an Overweight at KeyBanc, tgt $95
  • Provident Financial (PFS) initiated with a Strong Buy at Raymond James, tgt $21
  • Redwire (RDW) initiated with a Hold at Truist, tgt $16
  • SanDisk (SNDK) initiated with a Buy at Citigroup, tgt $57
  • SiriusPoint (SPNT) initiated with an Outperform at Oppenheimer, tgt $25
  • Solid Biosciences (SLDB) initiated with a Buy at Citigroup, tgt $14
  • Super Micro (SMCI) initiated with a Sector Weight at KeyBanc
  • Texas Instruments (TXN) initiated with a Neutral at Arete, tgt $203.80
  • Unity (U) reinstated with an Underperform at BofA Securities, tgt $15E

• Econ Data (Friday):
  • 08:30 ET: May Personal Income (Briefing.com consensus 0.4%; prior 0.8%), Personal Spending (Briefing.com consensus 0.2%; prior 0.2%), PCE Price Index (Briefing.com consensus 0.1%; prior 0.1%), and core-PCE Price Index (Briefing.com consensus 0.1%; prior 0.1%)
  • 10:00 ET: June Univ. of Michigan Consumer Sentiment - Final (Briefing.com consensus 60.5; prior 52.2)
• Earnings:
  • Monday (June 23)
    • Pre-Market: CMC FDS
    • After-Hours: KBH
    Tuesday (June 24)
    • Pre-Market: CCL SNX
    • After-Hours: AVAV BB FDX WOR
      
  • Wednesday (June 25)
    • Pre-Market: GIS PAYX WGO
      
    • After-Hours: FUL JEF MU MLKN SCS WS
  • Thursday (June 26)
    • Pre-Market: AYI LNN MKC WBA
    • After-Hours: CNXC NKE
  • Friday (June 27)
    • Pre-Market: APOG
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike