After Hours Report

Today was a fluid day in terms of major news items. We'll synthesize them in a bullet-point format while pointing out that the stock market acted well in the morning session and poorly in the afternoon session.

The S&P 500 climbed as high as 5,999.70 but just couldn't make it over the 6,000 threshold and was eventually driven as low as 5,921.20, with stocks like Tesla (TSLA 284.68, -47.37, -14.3%), Costco (COST 1010.81, -40.88, -3.9%), Brown-Forman (BF.B 27.25, -5.95, -17.9%), and Palantir Technologies (PLTR 119.91, -10.10, -7.8%) in the driver's seat.

Here is a glimpse of what unfolded today:

• President Trump and President Xi had a phone call and agreed to have their respective teams meet again soon. This news hit early, and market participants seemed to like the idea that the tone of the call sounded more conciliatory than combative.
• Elon Musk decried the one big, beautiful bill on social media and urged lawmakers to "kill the bill," which ultimately drew the ire of President Trump, who expressed his disappointment in Elon Musk and suggested in his own social media post that terminating Elon's government subsidies and contracts would be the easiest way to save billions and billions of dollars in the budget.
• The European Central Bank voted to cut its key interest rates by 25 basis points. While that news was expected, it did not weigh on the euro, which was up 0.2% against the dollar.
• Q1 productivity decreased 1.5% (Briefing.com consensus -0.8%) versus the preliminary report of a 0.8% decrease. Unit labor costs, meanwhile, were revised up to 6.6% (Briefing.com consensus 5.7%) from the preliminary reading of 5.7%.
• Initial jobless claims for the week ending May 31 increased by 8,000 to 247,000 (Briefing.com consensus: 235,000). Continuing jobless claims for the week ending May 24 decreased by 3,000 to 1.904 million; however, the four-week moving average of 1,895,250 is the highest level since November 27, 2021.
• The trade deficit plunged in April to $61.6 billion (Briefing.com consensus: -$117.2 billion) from an upwardly revised deficit of $138.3 billion (from -$140.5 billion) in March. Exports were $8.3 billion more than March exports, but imports were $68.4 billion less than March imports.
• Circle Internet Group (CRCL 83.23, +52.23, +168.5%) had a wildly successful debut. After pricing its IPO at $31.00 per share, the global fintech specializing in stablecoins traded as high as $103.75 before closing the session at 83.23.

Briefly, there was some good and some bad in today's newsflow, so it was rather fitting that breadth figures reflected a mixed disposition. Advancers and decliners were about even at the NYSE, while decliners led advancers by a 13-to-9 margin at the Nasdaq.

Tesla was the biggest drag on the underperforming Nasdaq and fellow growth stocks, which underperformed value stocks today. Overall, buying interest was subdued, as the totality of today's news wasn't enough to maintain the market's bullish momentum in front of tomorrow's Employment Situation Report.

There was only one sector that eked out a gain. That was the communication services sector (+0.06%). The consumer discretionary sector (-2.5%), hurt by Tesla, was the worst-performing sector, followed by consumer staples (-1.2%), which felt the pressure of losses in Costco after a report showing a moderation in same-store sales for May and losses in Brown-Forman, which disappointed with its earnings results and FY26 outlook.

The remaining sectors logged losses between 0.1% and 0.6%.

• S&P 500: +1.0% YTD
• Nasdaq: -0.1% YTD
• DJIA -0.5% YTD
• S&P 400: -3.2% YTD
• Russell 2000: -6.0% YTD

Reviewing today's economic data:

• Q1 productivity decreased 1.5% (Briefing.com consensus -0.8%) versus the preliminary report of a 0.8% decrease. Unit labor costs, meanwhile, were revised up to 6.6% (Briefing.com consensus 5.7%) from the preliminary reading of 5.7%.
  • Briefing.com Analyst Insight: The combination of declining productivity and the big jump in unit labor costs has stagflation undertones that will complicate the Fed's assessment of the overall economic picture and what to do with its policy rate.
• Initial jobless claims for the week ending May 31 increased by 8,000 to 247,000. Continuing jobless claims for the week ending May 24 decreased by 3,000 to 1.904 million; however, the four-week moving average of 1,895,250 is the highest level since November 27, 2021.
  • Briefing.com Analyst Insight: These data point to some softening in the labor market but altogether don't ring any loud alarm bells for the economic outlook. Yes, initial jobless claims -- a leading indicator -- have risen, but they remain well below levels associated with a recession. It won't be until the initial claims numbers start to exceed 300,000 on a regular basis that alarms will sound with respect to the labor market and the economy's growth trajectory.
• One thing that became crystal clear this morning is that the trade deficit plunged in April to $61.6 billion (Briefing.com consensus -$117.2 billion) from an upwardly revised deficit of $138.3 billion (from -$140.5 billion) in March. Exports were $8.3 billion more than March exports, but imports were $68.4 billion less than March imports.
  • Briefing.com Analyst Insight: Bear in mind that the March trade deficit was at a record level, driven by a surge in imports that was a function of frontrunning the tariffs. With the April report, there is little question that the tariff actions upended import activity. The result is that there was a major dent made in the trade deficit, which President Trump will enjoy seeing. Another takeaway is that the plunge in imports will result in the net exports component making a materially positive contribution to Q2 GDP and economists raising their Q2 GDP forecasts.

Overseas:

• Europe: DAX +0.2%, FTSE +0.1%, CAC -0.2%
• Asia: Nikkei -0.5%, Hang Seng +1.1%, Shanghai +0.2%

Commodities:

• Crude Oil +0.50 @ 63.37
• Nat Gas -0.05 @ 3.67
• Gold -24.40 @ 3375.20
• Silver +1.16 @ 35.81
• Copper +0.04 @ 4.93

After-Hours Spotlight:

• Braze (BRZE) beats by $0.02, beats on revs; guides Q2 EPS below consensus, revs above consensus; guides FY26 EPS below consensus, revs above consensus... BRZE down 9.2%
• Broadcom (AVGO) beats by $0.01, reports revs in-line, reports AI revenue in-line; guides Q3 revs above consensus... AVGO down 2.6%
• DocuSign (DOCU) beats by $0.09, beats on revs, Q1 billings below prior guidance; guides Q2 revs above consensus; guides FY26 revs above consensus, lowers FY26 billings guidance; increases share buyback auth by $1 bln... DOCU down 16.7%
• Guess? (GES) beats by $0.25, beats on revs; guides Q2 EPS below consensus; guides FY26 EPS in-line... GEs unchanged
• lululemon athletica (LULU) beats by $0.02, reports revs in-line, comps of +1%; guides Q2 EPS below consensus, revs in-line; guides FY26 EPS below consensus, revs in-line... LULU down 19.9%
• Petco Health and Wellness (WOOF) misses by $0.02, reports revs in-line; guides Q2 revs in-line; reaffirms FY26 revs guidance... WOOF down 6.6%
• Rubrik (RBRK) beats by $0.17, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY26 EPS above consensus, revs above consensus... RBRK up 2.5%
• Samsara (IOT) beats by $0.05, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY26 EPS above consensus, revs above consensus... IOT down 11.4%
• ServiceTitan (TTAN) beats by $0.06, beats on revs; guides Q2 revs above consensus; guides FY26 revs above consensus; also announces the availability of its integration with EagleView... TTAN down 13.5%
• Vail Resorts (MTN) beats by $0.50, reports revs in-line... MTN down 1.1%
• Zumiez (ZUMZ) beats by $0.11, reports revs in-line; guides Q2 EPS below consensus, revs in-line; Approved share repurchase of $15 mln of common stock... ZUMZ down 7.9%

Fair Value for Friday, June 6:

• S&P 500: 5,948
• Nasdaq 100: 21,582
• DJIA: 42,380

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

• Earnings/Guidance (Full Earnings Calendar):
  • Argan (AGX) beats by $0.51, reports revs in-line
  • Buckle (BKE) reports May comp sales increased 7.2%
  • Cboe Global Markets (CBOE) reports trading volume for May 2025; Multiply-listed options increased 27.6% yr/yr
  • Ciena (CIEN) misses by $0.10, beats on revs
  • 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%
  • Descartes (DSGX) misses by $0.03, reports revs in-line
  • Fastenal (FAST) reports May sales data; Net sales increased 4.3% to $687.3 mln, Daily sales increased 9.3% to $32.7 mln
  • 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
  • Greif (GEF) beats by $0.06, misses on revs; Issues FY25 guidance
  • Hello Group (MOMO) beats by RMB1.00, beats on revs; guides Q2 revs above consensus
  • Hon Hai Precision (HNHPF) reports May sales increased 11.9% yr/yr to NT$615.75 bln
  • LGI Homes (LGIH) reports it closed 416 homes in May vs 450 in April
  • 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
  • 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
  • Saia (SAIA) reports Q2 LTL operating data update
  • Scotts Miracle-Gro (SMG) issues upside FY25 EPS guidance, reaffirms previously announced FY25 guidance, including U.S. Consumer net sales low single-digit growth
  • Tradeweb Markets (TW) reports total trading volume for the month of May 2025 of $55.4 trillion
  • United Micro (UMC) reports May sales declined 0.15% yr/yr to NT$19.48 bln
  • Verint Systems (VRNT) beats by $0.16, beats on revs; guides FY26 EPS in-line, revs in-line
  • Winnebago (WGO) issues downside Q3 EPS and revenue guidance
  • XPO, Inc. (XPO) reports preliminary LTL segment operating metrics for May 2025; LTL tonnage per day decreased 5.7%, as compared with May 2024, attributable to a year-over-year decrease of 5.0% in shipments per day and a decrease of 0.7% in weight per shipment
• General News
  • President Donald J. Trump restricts the entry of foreign nationals to protect the United States from foreign terrorists and other national security and public safety threats
  • President Donald J. Trump Restricts Foreign Student Visas at Harvard University
  • EU extends safeguard measures suspension on iron and steel to support war-torn Ukraine’s economy
  • Elon Musk continues to denounce the one, big beautiful bill, saying on X, "Kill the bill," according to Politico
  • Big differences between Senate and White House threaten the president's July 4 deadline for getting bill done, according to Punchbowl News
  • China's restrictions on exports of rare earth minerals threatens auto production, according to Reuters
  • Aluminum industry executives express concerns about demand destruction following tariff rate increase, according to Bloomberg
  • Senate confirms Fed Governor Bowman as Vice Chair for Supervision, according to Reuters
  • ECB expected to cut its deposit rate by 25 basis points today to 2%, according to Bloomberg
  • Japan's 30-yr bond auction not good, but better than feared, according to Bloomberg
  • Alphabet (GOOG) to continue to expand engineering staff into 2026, according to Bloomberg
  • Alvotech (ALVO) and Dr. Reddy’s (RDY) enter into collaboration to co-develop biosimilar candidate to Keytruda
  • Amazon.com (AMZN) testing humanoid robots for delivery work, according to The Information
  • Apple (AAPL):  US appeals court decides not to pause key parts of lower court order requiring AAPL to immediately open its App Store to more competition, according to Reuters
  • Avadel Pharmaceuticals (AVDL): FDA grants Orphan Drug Designation for LUMRYZ
  • Barrett Business (BBSI) appoints Joseph Clabby as Chairman, he succeeds Tony Meeker, who will continue to serve as a member of the board
  • Bayer AG (BAYRY) reports simultaneous treatment start with Finerenone and SGLT-2-inhibitor demonstrated positive data in patients with CKD associated with type 2 diabetes
  • Biogen (BIIB) Canada is disappointed by INESSS's recommendation against listing SKYCLARYS, despite its therapeutic potential for individuals living with Friedreich ataxia — a community in urgent need of treatment options
  • Boeing (BA) discloses in SEC filing that it entered into a Non-Prosecution Agreement with the U.S. Department of Justice; Company is subject to a $487.2 mln overall criminal monetary penalty
  • Boyd Gaming (BYD) COO Theodore Bogich to retire, effective December 31, 2025
  • Canada Goose (GOOS) Provides Update on Arbitration Proceedings
  • Cathay Bancorp (CATY) authorizes new share repurchase program
  • Cipher Mining (CIFR) announces May 2025 operational update; mines 179 Bitcoin
  • Corcept (CORT) Presents Results from Phase 2 Study of Dazucorilant in Patients with Amyotrophic Lateral Sclerosis (ALS) at ENCALS 2025 Annual Meeting
  • Cullinan Therapeutics (CGEM) enters into an agreement with Genrix Bio for a global, all indication, exclusive license to velinotamig, a BCMAxCD3 bispecific T cell engager
  • Descartes (DSGX) announces cost reduction initiatives, including 7% global workforce reduction
  • Diginex Limited (DGNX) announces the signing of a Memorandum of Understanding for a cash and share acquisition of Resulticks, a globally recognized leader in real-time, AI-driven customer engagement and data management solutions
  • D-Wave Quantum (QBTS) received proceeds of about $15.3 mln in connection with the exercise of about 1.33 mln warrants to purchase shares of common stock with exercise price of $11.50 per warrant from May 30, 2025 through June 3, 2025
  • Energy Transfer (ET): The Bureau of Industry and Security, U.S. Department of Commerce notifies Energy Transfer, by letter dated June 3, pursuant to Section 744.21(b) of the Export Administration Regulations, that a license is required for the export, reexport, or transfer of ethane classified in the following Schedule B number and description listed in the U.S. Census Bureau’s Schedule B
  • Equinor (EQNR) and Centrica sign long-term gas sales agreement of 55 TWh of natural gas per year for a period of 10 years starting 1 October 2025 at terms reflecting market prices
  • Franklin Resources (BEN) reports preliminary month-end assets under management of $1.57 trillion at May 31, 2025, compared to $1.53 trillion at April 30, 2025
  • Humana (HUM) ready to back Medicare Advantage billing curbs, according to The Wall Street Journal
  • HUTCHMED (HCM) and Innovent jointly announce NDA Acceptance for Fruquintinib Combination with Sintilimab in China
  • IperionX (IPX) awarded a $99 mln US Army contract for R&D of low-cost domestic titanium for defense applications
  • Joint Corp (JYNT) has authorized a stock repurchase program expected to begin in August 2025 under which the company may repurchase up to $5 mln of its outstanding common stock
  • Kimberly-Clark (KMB) forms strategic partnership with Suzano (SUZ); focus on higher growth, higher margin
  • Lifeway Foods (LWAY) announces expanded distribution for several of its top-selling product lines; Also issues upside Q2 revenue guidance
  • Metalpha Technology (MATH) forms alliance with DogeOS to expand crypto innovation
  • Nintendo (NTDOY) confirmed the launch of Nintendo Switch 2
  • Petrobras (PBR) submits a declaration of interest for exploratory blocks in the Ivory Coast
  • Procter & Gamble (PG) announced today a 2-year, non-core restructuring program while presenting at the Deutsche Bank’s dbAccess Global Consumer Conference
  • REGENXBIO (RGNX) announces new positive interim data from the Phase I/II AFFINITY DUCHENNE trial
  • Shift4 Payments (FOUR) names new CEO
  • Starbucks (SBUX) names Mike Grams as COO
  • Starz Entertainment Corp (STRZ): Warner Bros. Discovery (WBD)’s designee to the Company’s Board of Directors resigned
  • Sun Life (SLF) Announces Early Renewal of Normal Course Issuer Bid
  • Suzano S.A. (SUZ) and Kimberly-Clark announces the creation of a US$3.4 billion joint venture focused on the manufacture, marketing and distribution of consumer and professional tissue products, such as toilet paper, napkins, paper towels and facial tissues in over 70 countries
  • The Metals Company (TMC) and Nauru announce updated sponsorship agreement for Nauru Ocean Resources
  • TKO Group Holdings (TKO): Endeavor entered into an agreement to purchase 1,579,080 shares of Class A Common Stock from Vincent K. McMahon in a private transaction at a per share price of $158.32 for aggregate consideration of approximately $250 million
  • Transocean (RIG) announces that a $100 mln, two-well option was exercised for the Transocean Spitsbergen in Norway
  • Uber (UBER) appoints PANW CEO Nikesh Arora to its board
  • Volaris Aviation (VLRS) reports May traffic results

• Upgrades:
  • Broadcom (AVGO) upgraded to Buy from Hold at Erste Group
  • Dollar Tree (DLTR) upgraded to Overweight from Neutral at JPMorgan, tgt $111
  • Dr. Reddy's (RDY) upgraded to Buy from Hold at HSBC, tgt $16.90
  • Intuitive Surgical (ISRG) upgraded to Buy from Hold at Erste Group
  • OGE Energy (OGE) upgraded to Overweight from Equal Weight at Barclays, tgt $47
  • Southern Company (SO) upgraded to Buy from Hold at Jefferies, tgt $100
  • Texas Instruments (TXN) upgraded to Market Perform from Underperform at Bernstein, tgt $180
  • Udemy (UDMY) upgraded to Equal Weight from Underweight at Morgan Stanley, tgt $9
  • Visa (V) upgraded to Outperform from Neutral at Mizuho, tgt $425
• Downgrades:
  • Chewy (CHWY) downgraded to Hold from Buy at Jefferies, tgt $43
  • Coursera (COUR) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $11
  • Eli Lilly (LLY) downgraded to Hold from Buy at Erste Group
  • Ferguson (FERG) downgraded to Hold from Buy at Berenberg, tgt $215
  • Hamilton Insurance (HG) downgraded to Market Perform from Outperform at BMO Capital, tgt $23
  • Lavoro (LVRO) downgraded to Underperform from Outperform at Oppenheimer
  • MercadoLibre (MELI) downgraded to Hold from Buy at Jefferies, tgt $2,800
  • Salesforce (CRM) downgraded to Hold from Buy at Erste Group
• Others:
  • CoreWeave (CRWV) initiated with a Neutral at Arete, tgt $130
  • Excelerate Energy (EE) initiated with a Buy at Jefferies, tgt $39
  • Funko (FNKO) initiated with a Buy at Texas Capital, tgt $8
  • Kingsoft Cloud (KC) assumed with a Buy at UBS, tgt $14
  • Marvell (MRVL) initiated with a Buy at China Renaissance
  • Milestone Pharmaceuticals (MIST) assumed with a Buy at H.C. Wainwright, tgt $5
  • Monopar Therapeutics (MNPR) initiated with a Buy at Lucid Capital, tgt $71
  • Nebius Group (NBIS) initiated with a Buy at Arete, tgt $84
  • Parker-Hannifin (PH) initiated with an Equal Weight at Morgan Stanley, tgt $700
  • Phio Pharmaceuticals (PHIO) assumed with a Buy at H.C. Wainwright, tgt $14
  • PolyPid (PYPD) initiated with a Buy at Roth Capital, tgt $9
  • Telix Pharmaceuticals (TLX) initiated with an Outperform at Wedbush, tgt $22

• Econ Data (Friday):
  • 08:30 ET: May nonfarm payrolls (Briefing.com consensus: 130K; prior 177K)
  • 08:30 ET: May nonfarm private payrolls (Briefing.com consensus: 123K; prior 167K)
  • 08:30 ET: May unemployment rate (Briefing.com consensus: 4.2%; prior 4.2%)
  • 08:30 ET: May avg. hourly earnings (Briefing.com consensus: 0.3%; prior 0.2%)
  • 08:30 ET: May avg. workweek (Briefing.com consensus: 34.3; prior 34.3)
  • 15:00 ET: April Consumer Credit (Briefing.com consensus: $10.3B; prior $10.2B)
• 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