After Hours Report

The stock market churned, but it did not burn in a session marred by some disappointing economic data and an acknowledgment by President Trump that President Xi is "very tough, and extremely hard to make a deal with."

There was no other context behind the president's remark, as speculation swirled that the two leaders could speak on Friday, but it was enough to cast some doubt on the state of the U.S.-China relationship and where their respective tariff rates and trade restrictions could go.

The market, for the most part, chopped around today in a lightly traded session that lacked conviction on the part of buyers and sellers. Still, the market cap-weighted indices managed to hold their form with the help of some relative strength among the mega-cap stocks, namely Meta Platforms (META 687.95, +21.10, +3.2%), Amazon.com (AMZN 207.23, +1.52, +0.7%), and NVIDIA (NVDA 141.92, +0.70, +0.5%).

Their gains helped mitigate the weakness in CrowdStrike (CRWD 460.56, -28.20, -5.8%) after its earnings report and disappointing revenue guidance and the weakness in Apple (AAPL 202.82, -0.45, -0.2%) after it was downgraded at Needham to Hold from Buy.

Once again, the semiconductor stocks stood out from the crowd, evidenced by the 1.4% gain in the Philadelphia Semiconductor Index. They were an outlier in a hesitant market that was also grappling with growth concerns driven by today's main economic reports.

The ADP Employment Change Report for May indicated that there were only 37,000 jobs added to private-sector payrolls (Briefing.com consensus 115,000) and none for small businesses, which lost 13,000 jobs. That report came out at 8:15 a.m. ET, and it was followed at 10:00 a.m. ET by the ISM Services PMI for May, which printed a contractionary reading (49.9%) for only the fourth time in the last 60 months.

Treasury yields turned lower in the wake of both reports. The 2-yr note yield, at 3.96% just before the ADP release, settled at 3.88%, down eight basis points. The 10-yr note yield, at 4.46% just before the ADP release, settled at 4.36%, down 10 basis points.

The dollar traded lower in conjunction with Treasury yields, but the drop in rates failed to motivate a hot stock market that took a breather in a consolidation trade. Entering today, the S&P 500 was up 23.5% from its April 7 low and trading at 21.6x forward 12-month earnings, which is a 17% premium to its 10-yr average, according to FactSet.

The communication services sector (+1.4%) was the best-performing sector and the only sector up at least 1.0%. The materials (+0.3%) and real estate (+0.3%) sectors were the next best-performing sectors. The energy (-1.9%) and utilities (-1.7%) sectors were today's biggest losers.

• S&P 500: +1.5% YTD
• Nasdaq: +0.8% YTD
• DJIA: -0.3% YTD
• S&P 400: -3.1% YTD
• Russell 2000: -5.9% YTD

Reviewing today's economic data:

• The ISM Services PMI fell to 49.9% in May (Briefing.com consensus 52.0%) from 51.6% in April. The dividing line between expansion and contraction is 50.0%, so the May reading reflects services sector activity pivoting to contraction from growth in the prior month. This is only the fourth time in the last 60 months that the Services PMI has been below 50.0%.
  • The key takeaway from the report is that it signaled a worrying mix of a contraction in growth for the largest economic sector and a continued increase in prices. That will be interpreted as a stagflation report (even though the employment index tipped back into an expansion mode). In any case, the overarching message of the report is that growth has slowed amid all the tariff uncertainty.
• ADP said private sector employment increased by 37,000 in May (Briefing.com consensus 115,000) following a downwardly revised 60,000 (from 62,000) in April. The goods-producing sector saw a loss of 2,000 jobs, while the service-providing sector saw an increase of 36,000. Mid-sized firms added 49,000 jobs, but small firms shed 13,000 jobs, and large firms saw a loss of 3,000 jobs.
• The S&P Global US Services PMI checked in at 53.7 versus its prior reading of 50.8.
• The MBA's Mortgage Applications Index was down 3.9% wk/wk, with refinance applications down 4% and purchase applications down 4%.

Overseas:

• Europe: DAX +0.7%, FTSE +0.2%, CAC +0.5%
• Asia: Nikkei +0.8%, Hang Seng +0.6%, Shanghai +0.4%

Commodities:

• Crude Oil -0.54 @ 62.87
• Nat Gas unch @ 3.72
• Gold +22.00 @ 3399.60
• Silver +0.02 @ 34.65
• Copper +0.06 @ 4.89

After-Hours Spotlight:

• Costco (COST) reports May comparable sales of +6.0% (excluding the impacts from changes in gasoline prices and FX); e-Commerce adjusted comps of +12.0%... COST down 0.7%
• CyberArk (CYBR) announces proposed private offering of $750 million of 0.00% convertible senior notes due 2030... CYBR down 2.1%
• Five Below (FIVE) beats by $0.03, reports revs in-line, comps +7.1%; mid-point of Q2 EPS guidance above consensus, revs above consensus; guides FY26 EPS in-line, revs in-line; CFO to step down... FIVE up 5.0%
• Greif (GEF) beats by $0.06, misses on revs; Issues FY25 guidance... GEF up 2.1%
• MongoDB (MDB) beats by $0.34, beats on revs; guides Q2 EPS above consensus, revs in-line; guides FY26 EPS above consensus, revs in-line; Announces additional share repurchase authorization of $800 mln... MDB up 11.9%
• PVH (PVH) beats by $0.05, beats on revs; guides Q2 EPS below consensus, revs above consensus; guides FY26 EPS below consensus, reaffirms FY26 revs guidance... PVH down 6.0%
• Verint Systems (VRNT) beats by $0.16, beats on revs; guides FY26 EPS in-line, revs in-line... VRNT up 18.4%

Fair Value for Thursday, June 5:

• S&P 500: 5,980
• Nasdaq 100: 21,761
• DJIA: 42,485

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

• Earnings/Guidance (Full Earnings Calendar):
  • AeroVironment (AVAV) provides investor updates in presentation
  • ANI Pharma (ANIP) reits 2025 guidance in presentation
  • Asana (ASAN) beats by $0.03, reports revs in-line; guides Q2 EPS in-line, revs in-line; guides FY26 EPS above consensus, revs in-line
  • Couchbase (BASE) beats by $0.02, beats on revs; guides Q2 revs below consensus; guides FY26 revs in-line
  • CrowdStrike (CRWD) beats by $0.07, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; raises FY26 EPS guidance, guides revs in-line; Approves Share repurchase program of up to $1.0 bln of common stock
  • Digital Turbine (APPS) beats by $0.09 (two estimates), beats on revs; Raises FY25 revenue guidance, still in-line
  • Dollar Tree (DLTR) beats by $0.05, beats on revs; raises FY26 EPS in-line, reaffirms FY26 revs guidance
  • Genesco (GCO) beats by $0.04, beats on revs; reaffirms FY26 EPS guidance, guides FY26 revs above consensus
  • Guidewire Software (GWRE) beats by $0.42, beats on revs; guides mid-point of Q4 revs above consensus
  • Hewlett Packard Enterprise (HPE) beats by $0.05, beats on revs; guides Q3 EPS and revs in-line; raises low end of FY25 EPS guidance; lowers high end of FY25 CC revenue guidance
  • Lumentum (LITE) raises 4Q25 EPS and revenue guidance above consensus; Guides 1Q26 revenue above consensus
  • Old Dominion (ODFL) provides Q2 metrics update
  • REV Group (REVG) beats by $0.13, beats on revs; raises FY25 revenue guidance, still in-line, lowers adjusted net income guidance
  • Sprinklr (CXM) beats by $0.02, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY26 EPS above consensus, revs above consensus
  • Thor Industries (THO) beats by $0.75, beats on revs; reaffirms FY25 EPS guidance, revs guidance
  • Transocean (RIG) expects Q2 results to include a $1.1-1.2 bln non-cash charge associated with the impairment of certain rigs
  • Yext (YEXT) beats by $0.02, beats on revs; Raises full year adjusted EBITDA guidance
• General News
  • White House confirms adjusting imports of aluminum and steel into the United States
  • President Trump said on Truth Social that, 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH'
  • Steel and aluminum tariff hike to 50%, effective today; UK exempt for five-weeks, according to Bloomberg
  • Automakers express concerns about production disruption due to China's export restrictions, according to Reuters
  • Senate Leader Thune suggests SALT deduction cap in House bill will need to change, according to Bloomberg
  • Rising cost for hedging currency risk reduces appeal of owning Treasuries for foreign investors, according to The Wall Street Journal
  • India goes to WTO with concerns about U.S. auto tariffs, according to Bloomberg
  • Aecom Tech (ACM) awarded global U.S. Air Force contract to support environmental programs
  • Autoliv (ALV) raises dividend and authorizes new stock repurchase program; reaffirms FY25 guidance at Capital Markets Day
  • Anaptys (ANAB) announces positive rosnilimab data updated through six months in robust Phase 2b Trial in RA
  • Brookfield Asset Mgmt (BAM) to advance AI infrastructure in Sweden through SEK 95 billion investment
  • Cable ONE (CABO) announces that Julia Laulis Chair of the Company’s Board of Directors, President, and CEO will retire; she will continue in her current roles until the earlier of December 31, 2025, or the appointment of her successor
  • Cango (CANG) enters third amendment to share-settled crypto mining assets acquisitions
  • Cardinal Health (CAH) announced the U.S. launch of its multi-parameter, single-patient use monitoring system that enables the continuous monitoring of cardiac activity, blood oxygen and temperature with one point of connection
  • CareDx (CDNA) Authorizes new $50 million share repurchase program; representing ~ 5% of outstanding shares
  • Corvus Pharmaceuticals (CRVS) announces new interim data from the randomized, double-blind, placebo-controlled Phase 1 clinical trial evaluating soquelitinib in patients with moderate to severe atopic dermatitis
  • FMC Corp (FMC) announces agreement with Corteva Agriscience that will expand its fluindapyr fungicide technology in the U.S. corn and soybean markets
  • GlaxoSmithKline (GSK) commences second tranche of share buyback program
  • Informatica (INFA) expands collaboration with Snowflake (SNOW) Partnership, enabling trusted ai-ready data through Snowflake Apache Polaris and Cortex AI Integration
  • Inotiv (NOTV) discloses that the SEC’s Division of Enforcement has concluded its investigation; Division does not intend to recommend an enforcement action
  • Kosmos Energy (KOS) and partners sign MOU to extend Ghana production licenses to 2040
  • NASDAQ (NDAQ) reports May 2025 volumes; U.S. equity options volume of 316 mln contracts compared to 346 mln contracts in April 2025 and 259 mln contracts in May 2024
  • Nokia (NOK) to lead PROACTIF, a multimillion Europe robotics and unmanned technology project
  • Outset Medical (OM) appoints Renee Gaeta as CFO, effective immediately; reiterates financial guidance
  • Philips (PHG) to repurchase up to 6 million shares to cover long-term incentive plans
  • QuidelOrtho (QDEL) announces strategy to accelerate growth in molecular diagnostics; co to acquire full ownership of LEX Diagnostics after 510(k) clearance by the U.S. FDA for consideration at closing of ~$100 million and plans to discontinue the Company's Savanna platform development
  • Redwire Corporation (RDW) announces that its advanced lunar and Martian manufacturing technology, Mason, has passed Critical Design Review with NASA participation
  • Rimini Street (RMNI) provides Oracle (ORCL) litigation updates
  • Roche Hldg (RHHBY) receives approval of Evrysdi tablet from EC
  • Sable Offshore Corp. (SOC) discloses litigation update; Sable is exploring all possible avenues available to address these preliminary rulings
  • Sagimet Biosciences (SGMT) announces Phase 3 Results for Denifanstat for the Treatment of Moderate-to-Severe Acne from Partner Ascletis met all endpoints
  • Sionna Therapeutics (SION) Announces Positive Phase 1 Data for NBD1 Stabilizers SION-719 and SION-451 and Advances Both Programs in Clinical Development for Cystic Fibrosis
  • STAAR Surgical (STAA) provides investor updates in presentation; notes that it addressed short term challenges
  • Stepan Company (SCL) announces a significant increase in its production capacity for Alpha Olefin Sulfonates; expands its AOS capacity by 25%
  • Stoke Therapeutics (STOK) provides certain updates related to the Company’s Phase 3 EMPEROR study of zorevunersen; initiated the Phase 3 EMPEROR study with the first United States sites initiated in May 2025
  • Telix Pharmaceuticals (TLX) receives approval of Illuccix PSMA-PET imaging agent in Portugal
  • Tesla (TSLA): Sales of Tesla's China-made EVs down 15% yr/yr in May, according to Reuters
  • UnitedHealth (UNH) provided updates on its 2025 annual shareholder meeting and actions taken by its Board; authorized payment of a cash dividend of $2.21 per share, up from $2.10 per share
  • Veeva Systems (VEEV) and Sarah Cannon Research Institute announce a strategic collaboration to drive speed and efficiency in oncology clinical trials across SCRI's more than 200 research site locations
  • Vigil Neuroscience (VIGL) announces an update on the Phase 2 IGNITE open-label clinical trial evaluating iluzanebart, a monoclonal antibody TREM2 agonist, for the potential treatment of adult-onset leukoencephalopathy with axonal spheroids and pigmented glia
  • Vitesse (VTS) has resolved this pending litigation in North Dakota with Hess (HES)
  • Warner Bros. Discovery (WBD): Majority of Warner Bros. Discovery shareholders reject 2024 pay package for CEO and other executives, according to Bloomberg
  • Wells Fargo (WFC) confirms that the Federal Reserve has removed the limits on growth in total assets imposed in its 2018 consent order and announces a special employee award

• Upgrades:
  • Agenus (AGEN) upgraded to Buy from Neutral at H.C. Wainwright, tgt $25
  • AnaptysBio (ANAB) upgraded to Buy from Neutral at H.C. Wainwright, tgt $38
  • Cactus (WHD) upgraded to Overweight from Equal Weight at Barclays, tgt $54
  • Dollar General (DG) upgraded to Outperform from Perform at Oppenheimer, tgt $130
  • Embraer (ERJ) upgraded to Buy from Hold at HSBC, tgt $57
  • NovaGold (NG) upgraded to Outperform from Sector Perform at RBC Capital, tgt $7
  • Snowflake (SNOW) upgraded to Buy from Neutral at UBS, tgt $265
  • XP Inc. (XP) upgraded to Buy from Neutral at Goldman, tgt $23
  • Yext (YEXT) upgraded to Buy from Neutral at B. Riley Securities, tgt $10
  • Yum! Brands (YUM) upgraded to Buy from Neutral at Goldman, tgt $167
• Downgrades:
  • Algonquin Power (AQN) downgraded to Sector Perform from Outperform at National Bank, tgt $6.75
  • Apple (AAPL) downgraded to Hold from Buy at Needham
  • Aptiv (APTV) downgraded to Neutral from Buy at Guggenheim
  • Constellation Energy (CEG) downgraded to Neutral from Buy at Citigroup, tgt $318
  • CrowdStrike (CRWD) downgraded to Neutral from Buy at BofA Securities, tgt $470
  • CrowdStrike (CRWD) downgraded to Hold from Buy at Canaccord Genuity, tgt $475
  • CrowdStrike (CRWD) downgraded to In Line from Outperform at Evercore ISI, tgt $440
• Others:
  • Akebia (AKBA) assumed with a Buy at H.C. Wainwright, tgt $8
  • Banco Santander (SAN) reinstated with a Buy at Citigroup
  • Centrus Energy (LEU) initiated with a Buy at BofA Securities, tgt $160
  • Chagee (CHA) initiated with a Buy at Citigroup, tgt $43.70
  • DraftKings (DKNG) initiated with an Outperform at Bernstein, tgt $46
  • Flutter Entertainment (FLUT) initiated with a Market Perform at Bernstein, tgt $275
  • Graphic Packaging (GPK) initiated with a Neutral at UBS, tgt $24
  • INmune Bio (INMB) initiated with a Buy at Lucid Capital, tgt $25
  • International Paper (IP) initiated with a Buy at UBS, tgt $60
  • Liberty Formula One (FWONA) initiated with a Market Perform at Bernstein, tgt $105
  • Live Nation (LYV) initiated with an Outperform at Bernstein, tgt $185
  • NewAmsterdam Pharma (NAMS) initiated with an Overweight at Cantor Fitzgerald, tgt $42
  • Packaging Corp. (PKG) initiated with a Neutral at UBS, tgt $200
  • Primo Brands (PRMB) initiated with an Overweight at Barclays, tgt $40
  • Sonoco (SON) initiated with a Neutral at UBS, tgt $48
  • TAT Technologies (TATT) initiated with a Buy at Truist, tgt $35
  • TKO Group (TKO) initiated with an Outperform at Bernstein, tgt $190
  • Unicycive Therapeutics (UNCY) initiated with a Buy at Lucid Capital, tgt $12
  • Warner Music (WMG) initiated with an Outperform at Bernstein, tgt $32

• Econ Data (Wednesday):
  • 08:30 ET: Initial Jobless Claims (Briefing.com consensus 235K; prior 240K) and Continuing Jobless Claims (prior 1919K)
  • 08:30 ET: April Trade Balance (Briefing.com consensus -$117.2B; prior -$140.5B)
  • 08:30 ET: Q1 Productivity - Rev (Briefing.com consensus -0.8%; prior -0.8%) and Unit Labor Costs - Rev (Briefing.com consensus 5.7%; prior 5.7%)
  • 10:30 ET: EIA Natural Gas Inventories (prior +101 bcf)
• Earnings:
  • Monday (June 2)
    • Pre-Market: CPB SAIC
    • After-Hours: CRDO
  • Tuesday (June 3)
    • Pre-Market: DG DCI FERG NIO OLLI SIG
    • After-Hours: ASAN BASE CRWD GWRE HPE YEXT
  • Wednesday (June 4)
    • Pre-Market: DLTR GCO REVG CXM THO
      
    • After-Hours: AGX DSGX FIVE GEF MDB PVH VRNT
  • Thursday (June 5)
    • Pre-Market: BF.B CIEN CBRL MOMO TTC VSCO
    • After-Hours: BRZE AVGO DOCU LULU AVO WOOF RBRK IOT TTAN MTN ZUMZ
  • Friday (June 6)
    • Pre-Market:ABM
    • After-Hours: None
  General Motors: 5,000 members at GM's Arlington, TX assembly plant join UAW strike