After Hours Report

The major averages saw their push into record territory halted today, with the S&P 500 (-0.7%), Nasdaq Composite (-0.9%), and DJIA (-1.2%) all retreating from yesterday's record highs. The market faced a combination of pressures today, with mega-cap and select tech names facing some profit-taking after a strong stretch of leadership, while oil prices and Treasury yields rose in response to escalating geopolitical tensions.

Sector strength waned throughout the session, with six S&P 500 sectors finishing lower, three of which retreated by more than 1%.

The top-weighted information technology sector (-1.5%) was the worst-performing sector, making it for the major averages to notch gains today. Semiconductor stocks faced some choppiness but turned in another relatively strong finish, with the PHLX Semiconductor Index gaining 1.4%. However, NVIDIA (NVDA 214.90, -7.92, -3.55%) lagged amid a weak showing from "magnificent seven" names today.

Microsoft (MSFT 427.59, -13.72, -3.11%) finished with a similar loss, though the broader software space was also under pressure today, with the iShares GS Software ETF (IGV 100.20, -4.53, -4.33%) extending yesterday's slide. Palo Alto Networks (PANW 280.43, -16.75, -5.64%) moved sharply lower despite turning in a strong earnings report.

Amazon (AMZN 250.02, -6.50, -2.53%) provided poor mega-cap leadership for the consumer discretionary sector (-1.1%), which also faced broad pressure from rising yields and a retreat in Ulta Beauty (ULTA 471.21, -23.66, -4.78%) despite a strong earnings report of its own.

All told, the Vanguard Mega Cap Growth ETF finished 1.1% lower, with some analyst commentary suggesting that mega-cap stocks could face some profit-taking as investors look for a source of funds for SpaceX (SPCX) and other upcoming high-profile IPOs.

Outside of the mega-cap space, the financials sector (-1.2%) also lagged, with festering private credit concerns weighing on asset manager names.

Meanwhile, the energy sector (+1.4%) captured the widest gain as crude oil futures settled today's session $2.25 higher (+2.4%) at $96.08 per barrel as the state of U.S.-Iran negotiations remains muddy, with reports of fresh strikes this morning testing the limits of the already tenuous ceasefire.

The consumer staples (+0.8%) and health care (+0.7%) sectors also notched solid gains as investors sought more defensive holdings today. Outside of the S&P 500, the Russell 2000 (-1.3%) lagged amid the step back in risk sentiment and rise across yields today.

The combination of oil-driven pressure, and pronounced weakness across the market's weightiest components, proved to be too much for the major averages to extend their record streak. However, with the S&P 500 still up in nine out of the last ten sessions, and the market demonstrating a propensity to buy any dips across growth-related names, sentiment remains largely intact in the near term.

U.S. Treasuries were under selling pressure today, as rising oil prices, new tariff proposals, and some solid economic data all converged to drive the view that the Fed won't be cutting the target range for the fed funds rate anytime soon. The 2-year note yield settled up four basis points to 4.09%, and the 10-year note yield settled up four basis points to 4.49%. 

• Russell 2000: +16.6% YTD
• Nasdaq Composite: +15.5% YTD
• S&P Mid Cap 400: +13.5% YTD
• S&P 500: +10.4% YTD
• DJIA: +5.5% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -2.5%; Prior -8.5%
• May ADP Employment Change 122K (Briefing.com consensus 110K); Prior was revised to 105K from 109K
• May S&P Global U.S. Services PMI - Final 50.7; Prior 50.9
• April Factory Orders 4.8% (Briefing.com consensus 3.5%); Prior was revised to 1.8% from 1.5%
  • The key takeaway from the report is that the headline numbers masked a weak month for business spending, evidenced by the 1.0% decline in nondefense capital goods orders, excluding aircraft. To be fair, that decline followed a very strong 3.8% increase in March, so it could just be a natural pullback after a large increase.
• May ISM Non-Manufacturing Index 54.5% (Briefing.com consensus 53.6%); Prior 53.6%
  • The key takeaway from the report is the understanding that activity for the country's largest business sector picked up pace in May, notwithstanding higher prices that were reflected in the highest average 12-month reading (68%) since April 2023.

Overseas:

• Europe: DAX -1.2%, FTSE -0.4%, CAC -0.7%
• Asia: Nikkei +2.5%, Hang Seng -1.5%, Shanghai +0.2%

Commodities:

• Crude Oil +2.25 @ 96.08
• Nat Gas +0.04 @ 3.21
• Gold -56.50 @ 4463.40
• Silver -2.16 @ 73.51
• Copper -0.16 @ 6.50

After-Hours Spotlight:

• Broadcom (AVGO) beats by $0.04, reports revs in-line; guides Q3 revs above consensus...AVGO -6.0%
• Costco (COST) reports May adjusted comparable sales of +8.0%...COST +0.8%
• CrowdStrike (CRWD) beats by $0.03, beats on revs; guides Q2 EPS in-line, revs above consensus; raises FY27 EPS guidance above consensus, revs above consensus; Announces four-for-one stock split...CRWD -10.4%
• Descartes (DSGX) beats by $0.03, beats on revs...DSGX -0.2%
• Five Below (FIVE) beats by $0.45, beats on revs, comps +22.7%; guides Q2 EPS and revs above consensus; guides FY27 EPS and revs above consensus...FIVE -8.5%
• Netskope (NTSK) beats by $0.01, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY27 EPS above consensus, revs above consensus...NTSK -19.6%
• Petco Health and Wellness (WOOF) reports Q1 (Apr) results, revs in-line; guides Q2 revs in-line; reaffirms FY27 revs guidance...WOOF -11.8%
• PVH (PVH) beats by $0.19, beats on revs; guides Q2 EPS above consensus, revs below consensus; reaffirms FY27 EPS guidance, guides FY27 revs below consensus...PVH -22.1%
• Veeva Systems (VEEV) beats by $0.10, beats on revs; guides Q2 EPS above consensus, revs above consensus; raises FY27 EPS above consensus, revs above consensus...VEEV -4.9%

Fair Value for Thursday, June 4:

• S&P 500: 7,564
• Nasdaq 100: 30,618
• DJIA: 50,743

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

• Earnings/Guidance (Full Earnings Calendar):
  • Figure Technology Solutions (FIGR) reports May operating metrics
  • GameStop (GME) beats by $0.14 (single estimate), revenue increased by 14% yr/yr; Approves a $2.0 bln share repurchase authorization
  • GitLab (GTLB) beats by $0.02, beats on revs; guides Q2 EPS below consensus, revs in-line; guides FY27 EPS in-line, revs in-line
  • Macy's (M) beats by $0.10, beats on revs; raises FY27 EPS in-line, revs in-line
  • Medtronic (MDT) beats by $0.01, beats on revs; guides FY27 EPS below consensus; raises dividend
  • Miami International Holdings (MIAX) reports May trading metrics with 23.7% increase in multi-list options ADV YTD
  • MiniMed (MMED) misses by $0.53, beats on revs
  • Nanobiotix (NBTX) provides Q1 operational and financial update
  • Ollie’s Bargain Outlet (OLLI) beats by $0.04, reports revs in-line; raises FY27 EPS guidance above consensus, revs in-line
  • Palo Alto Networks (PANW) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs above consensus
  • Scotts Miracle-Gro (SMG) reaffirms FY26 guidance, including EPS and U.S. Consumer net sales growth
  • Sprinklr (CXM) beats by $0.01, beats on revs; guides Q2 EPS below consensus, revs in-line; guides FY27 EPS in-line, revs below consensus
  • Thor Industries (THO) misses by $0.06, beats on revs; lowers FY26 EPS below consensus, reaffirms FY26 revs guidance
  • Ulta Beauty (ULTA) beats by $0.85, beats on revs; comp sales +5.3%; guides FY27 EPS in-line, reaffirms FY27 revs guidance
  • Yext (YEXT) beats by $0.02, misses on revs
• General News
  • Iran launched multiple rocket and drone attacks in the Persian Gulf, and the U.S. conducted self-defense strikes on Iran's Qeshm Island. The attacks placed additional pressure on a fragile ceasefire. NBC News
  • Fed Chair Kevin Warsh hired conservative policy analysts Paul Winfree and Daniel Heil as advisers. Bloomberg
  • Los Angeles Mayor Karen Bass advanced to a runoff. Her opponent is yet to be decided, but former reality TV star Spencer Pratt is currently in second place. The top two advance to a runoff in November. NY Times
  • President Trump in an interview confirmed he told Israeli Prime Minister Benjamin Netanyahu he is "f----g crazy." He also said the U.S. blockade could remain in place through Labor Day. NY Post
  • Centcom said "U.S. forces successfully defeated multiple Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East, June 2"
  • Republican Steve Hilton and Democratic candidate Xavier Becerra currently in the top two spots for California governor. Tom Steyer is in third. The top two will advance to a runoff, but the election is too close to call
  • USTR proposes action in 60 Section 301 investigations relating to failures to take action on trade in forced labor goods; Canada, Mexico and EU will face !0% tariff; China, Japan, and India will face 12.5% tariff
  • Agilent (A) announces the FDA has approved the expanded use of PD-L1 IHC 22C3 pharmDx for use on the Dako Omnis platform
  • Airgain (AIRG) announces continued expansion of its connectivity portfolio with FirstNet, built with AT&T
  • Alphabet (GOOG): UK CMA secures "fairer deal for publishers and improves Google search services in UK"
  • Ardent Health (ARDT) announces that Dave Caspers has been appointed President and Chief Executive Officer, effective immediately; He succeeds Marty Bonick, who has stepped down to pursue other opportunities
  • argenx (ARGX) presents new Efgartigimod data showing long-term sustained patient benefit in Myositis and Sjogren’s Disease at EULAR 2026
  • Arvinas (ARVN) to re-prioritize its portfolio; plans to seek an out-licensing agreement for any additional clinical trials for ARV-806
  • Atlantic Union Bankshares (AUB) announced that Doug Woolley, executive vice president and chief credit officer, plans to retire effective April 1, 2027
  • Axsome Therapeutics (AXSM) has resolved all patent litigation related to Axsome’s product SUNOSI
  • Booking Holdings' (BKNG) Priceline introduced the next generation of Penny, its AI-powered travel assistant and one of the most advanced AI booking experiences in travel
  • Cabaletta Bio (CABA) announces new clinical data supporting rese-cel as a potential treatment for multiple autoimmune diseases, including findings that further inform Cabaletta’s registrational strategy in myositis and systemic sclerosis as well as its preconditioning-free program in lupus
  • Canadian Pacific Kansas City Ltd. (CP) has broken its May monthly record for transporting Canadian grain and grain products
  • Cue Biopharma (CUE) announces the transition of its board as the Company continues its strategic growth
  • Customers Bancorp's (CUBI) subsidiary, Customer's Bank, announces a strategic collaboration with ElevenLabs
  • Digi Power X Inc. (DGXX) announced a $35 mln commitment to purchase NVIDIA's (NVDA) next-generation Vera Rubin platform
  • Fluor (FLR) awarded a $1.03 bln modification to previously awarded Navy contract for naval nuclear propulsion work at the Naval Nuclear Laboratory
  • GitLab (GTLB) announces restructuring plan, includes an up to 14% reduction in its global workforce; expects to exit 22 countries
  • Grand Canyon Education (LOPE) discloses potential amendment to Grand Canyon University Master Services Agreement
  • Hycroft Mining (HYMC) announces the results from its S-K 1300 Technical Report Summary and Initial Assessment at the Hycroft Mine in Nevada, USA
  • IAC Inc. (IAC) posts supplemental financial information to reflect the Search segment as discontinued operations following expiration of services agreement with Google
  • IDEAYA Biosciences (IDYA) and Roche (RHHBY) partner on targeted pancreatic cancer combination study
  • Insulet (PODD) announces the U.S. rollout of new algorithm enhancements for the Omnipod 5 Automated Insulin Delivery System
  • IREN Limited (IREN) announces the signing of a transmission connection agreement to support a planned 800MW data center campus in Bundey, South Australia
  • Johnson & Johnson (JNJ) presents new data further reinforcing the role of nipocalimab in lowering the autoantibodies driving Sjögren's disease
  • Johnson & Johnson (JNJ) late-breaking results show nipocalimab significantly reduced systemic lupus erythematosus (SLE) disease activity in a Phase 2 study
  • Kenon Holdings' OPC Energy Ltd. (KEN) announces construction finance agreement and EPC agreement for the Hadera power plant expansion project
  • Klarna Group (KLAR) updates timing on PriceRunner antitrust case against Google (GOOG)
  • Kura Oncology (KURA) highlights darlifarnib’s potential as a foundational combination platform for KRAS-mutant cancers and outlines development strategy
  • Lending Club (LC) to transfer the listing of its common stock to the Nasdaq from the NYSE on June 22 to reflect the rebranding of LendingClub Bank to Happen Bank
  • Lockheed Martin (LMT) successfully intercepted a Group 3 one-way attack test drone using a Joint-Air-to-Ground Missile launched from a GRIZZLY containerized launcher for the first time
  • Lotus Technology (LOT) opens European orders for Eletre X hybrid SUV
  • Mannkind (MNKD) enters data-rich development period with completion of randomization in phase 1B INFLO-1 study and enrollment of first patient in phase 2 INFLO-2 trial for nintedanib DPI in patients with IPF
  • Medtronic (MDT) announces strategic investments to support future expansion of cardiac ablation portfolio as physician demand for Affera technologies broadens
  • Medtronic (MDT) announces significant milestones to unlock expanded indications for the Hugo robotic-assisted surgery system in the United States and to shape the future of surgery
  • Meta (META) retreats on plan for internal mouse tracking. Reuters
  • Microsoft (MSFT): Dun & Bradstreet announces the availability of Graph Connector in Microsoft 365 Copilot
  • Nestle (NSRGY) aiming to take full control of Yfood Labs GmbH, according to Bloomberg
  • Netskope (NTSK) joins Anthropic's Project Glasswing
  • Nova Minerals Limited (NVA): Supreme Court of New South Wales approved redomiciliation related proposals
  • Novo Nordisk (NVO) launches oral Wegovy in first market outside the U.S.
  • Open AI CEO Sam Altman will visit the White House today. Politico
  • Palvella Therapeutics (PVLA) announces completion of its pre-New Drug Application meeting with FDA for QTORIN 3.9% rapamycin anhydrous gel in microcystic lymphatic malformations
  • Partners Group decided to cap withdraws from $8.6 bln fund, according to Reuters
  • RTX (RTX) awarded a $515.8 mln modification to previously awarded Navy contract
  • SEALSQ Corp (LAES) deepens quantum strategy with Quobly investment
  • Shopify (SHOP) announces $3 bln increase to share repurchase program
  • STMicroelectronics (STM) launches AI-enabled industrial vibration sensor targeting predictive maintenance market
  • Texas Instruments (TXN) announces that CFO Rafael Lizardi will retire; names Julie Knecht as next CFO
  • TG Therapeutics (TGTX) announces positive pharmacokinetic, pharmacodynamic, safety, and tolerability data from its Phase 1 clinical trial evaluating subcutaneous formulation of ublituximab as compared to IV BRIUMVI
  • The Cigna Group (CI) dropping coverage of GLP-1 drugs for its employees, according to Reuters
  • UnitedHealth (UNH) updates on annual shareholder meeting, board actions
  • Xcel Energy (XEL) provides CPUC updates; reaffirms guidance
  • Zenas BioPharma (ZBIO) reports data from the registrational Phase 3 INDIGO Trial of Obexelimab in Immunoglobulin G4-Related Disease (IgG4-RD), simultaneously presented at the EULAR 2026 Congress and published in the New England Journal of Medicine

• Upgrades:
  • Acadia Healthcare (ACHC) upgraded to Buy from Hold at Jefferies, tgt $30
  • Aveanna Healthcare (AVAH) upgraded to Outperform from Sector Perform at RBC Capital, tgt $10
  • Rezolute (RZLT) upgraded to Outperform from Market Perform at Citizens, tgt $11
  • SSR Mining (SSRM) upgraded to Outperform from Sector Perform at RBC Capital, tgt $40
  • Yum! Brands (YUM) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $185
• Downgrades:
  • AT&T (T) downgraded to Perform from Outperform at Oppenheimer
  • Campbell's (CPB) downgraded to Underperform from Market Perform at Bernstein, tgt $19
  • Carter Bankshares (CARE) downgraded to Market Perform from Outperform at Hovde Group, tgt $30
  • Chipotle Mexican Grill (CMG) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $37
  • Conagra Brands (CAG) downgraded to Underperform from Market Perform at Bernstein, tgt $12
  • Fulcrum Therapeutics (FULC) downgraded to Underweight from Overweight at JPMorgan
  • General Mills (GIS) downgraded to Underperform from Market Perform at Bernstein, tgt $31
  • Heron Therapeutics (HRTX) downgraded to Hold from Buy at Needham
  • Kraft Heinz (KHC) downgraded to Underperform from Market Perform at Bernstein, tgt $21
  • Leidos (LDOS) downgraded to Hold from Buy at Jefferies, tgt $140
  • MGM Resorts (MGM) downgraded to Hold from Buy at CBRE, tgt $50
  • Oddity (ODD) downgraded to Sector Weight from Overweight at KeyBanc
  • Rio Tinto (RIO) downgraded to Underperform from Sector Perform at RBC Capital
  • Shake Shack (SHAK) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $76
  • Shake Shack (SHAK) downgraded to Outperform from Strong Buy at Raymond James, tgt $85
  • Simply Good Foods (SMPL) downgraded to Market Perform from Outperform at Bernstein, tgt $12
  • Thermo Fisher Scientific (TMO) downgraded to Hold from Buy at HSBC, tgt $540
  • Victoria's Secret (VSXY) downgraded to Hold from Buy at Jefferies, tgt $73
  • Victoria's Secret (VSXY) downgraded to Neutral from Buy at UBS, tgt $90
  • Yext (YEXT) downgraded to Neutral from Buy at B. Riley, tgt $5
• Others:
  • Agilysys (AGYS) initiated with an Overweight at Piper Sandler, tgt $110
  • Amprius Technologies (AMPX) initiated with a Buy at Clear Street, tgt $33
  • Boyd Gaming (BYD) initiated with a Buy at Texas Capital, tgt $106
  • BridgeBio Pharma (BBIO) initiated with a Buy at Canaccord, tgt $104
  • Construction Partners (ROAD) initiated with a Hold at Truist, tgt $130
  • Danaher (DHR) initiated with a Buy at DZ Bank, tgt $210
  • DigitalOcean (DOCN) initiated with an Overweight at KeyBanc, tgt $200
  • FedEx Freight (FDXF) initiated with an Outperform at Raymond James, tgt $180
  • Horizon Quantum (HQ) initiated with a Buy at Needham, tgt $20
  • LATAM Airlines (LTM) initiated with an Overweight at JPMorgan, tgt $70
  • Merlin Labs (MRLN) initiated with a Buy at TD Cowen, tgt $11
  • Neurogene (NGNE) initiated with a Buy at Rodman & Renshaw, tgt $70
  • Norwegian Cruise Line (NCLH) initiated with a Market Perform at Bernstein, tgt $18
  • Omnicom (OMC) initiated with a Buy at Goldman, tgt $146
  • RELX (RELX) initiated with a Buy at Goldman
  • T1 Energy (TE) initiated with an Outperform at Northland, tgt $16
  • Upstream Bio (UPB) initiated with a Buy at H.C. Wainwright, tgt $36
  • Viking Holdings (VIK) initiated with an Outperform at Bernstein, tgt $120
  • Vox Royalty (VOXR) initiated with a Buy at Roth Capital, tgt $8
  • WPP (WPP) initiated with a Sell at Goldman

• Econ Data (Thursday):
  • 08:30 ET: Q1 Productivity (Briefing.com consensus: 0.8%; prior 0.8%) and Unit Labor Costs (Briefing.com consensus: 2.3%; prior 2.3%) - Revised
  • 08:30 ET: Weekly Initial Jobless Claims (Briefing.com consensus: 216,000; prior 215,000) and Continuing Jobless Claims (prior 1786K)
  • 08:30 ET: Richmond Fed President Barkin (non-FOMC voter)
  • 10:00 ET: Fed Governor Bowman (FOMC voter)
  • 10:30 ET: EIA Natural Gas Inventories (prior +92 bcf)
  • 13:00 ET: Kansas City Fed President Schmid (non-FOMC voter)

• Earnings:
  • Monday (June 1)
    • Pre-Market: SAIC
    • After-Hours: CRDO HPE
      
    Tuesday (June 2)
    • Pre-Market: DCI DG MOMO ODD SIG VSCO YSWY
    • After-Hours: GTLB PANW ULTA
      
  • Wednesday (June 3)
    • Pre-Market: M MDT MMED OLLI CXM
      
    • After-Hours: AI AVGO CRWD DSGX FIVE NTSK WOOF PVH VEEV
      
  • Thursday (June 4)
    • Pre-Market: BF.B CAL CIEN CMCO TTC
    • After-Hours: AGX COO DOCU GWRE LULU PL RBRK IOT TTAN WLTH ZUMZ
  • Friday (June 5)
    • Pre-market: ABM
    • After-Hours: None