After Hours Report

The S&P 500 gained 1.7% on Wednesday in a broad-based advance to close at its highest level since March 6. The Nasdaq Composite (+2.1%) and Russell 2000 (+3.0%) increased more than the benchmark index, while the Dow Jones Industrial Average rose 1.5%. 

Stocks reclaimed the prior day's losses at the open and proceeded to drift higher throughout the day. The market remained resilient with little news to meaningfully deter its bullish mindset or economic recovery hopes. All 11 S&P 500 sectors contributed to the advance. 

The energy sector (+3.8%) followed oil prices ($33.51, +1.21, +3.8%) higher after EIA data showed an unexpected weekly decline in crude inventories. The financials (+2.2%) and communication services (+2.7%) sectors followed suit, with the latter benefiting from a 6.0% gain in shares of Facebook (FB 229.97, +13.09). The health care sector (+0.1%) eked out a small gain.   

In Washington, the Senate passed the Holding Foreign Companies Accountable Act, which requires certain foreign companies listed in the U.S. to certify that they are not owned or controlled by a foreign government. Failure to provide appropriate certification could result in de-listing.

The increased scrutiny on Chinese companies pressured shares of Alibaba (BABA 216.79, -0.41, -0.2%) and Baidu (BIDU 108.52, -1.23, -1.1%), while the broader U.S. market was barely bothered by the bill's potential to worsen U.S.-China tensions. 

Shares of Target (TGT 119.63, -3.53, -2.9%) and Lowe's (LOW 116.99, +0.12, +0.1%) struggled throughout the session despite beating top and bottom-line estimates. TGT shares fell 3%, while LOW shares squandered an early 5% gain. Analog Devices (ADI 114.57, +8.24, +7.8%) was an earnings standout. 

Separately, the FOMC Minutes from the April meeting revealed that policymakers discussed targeting yields on shorter tenors and considered changes to how forward guidance is expressed. The 2-yr yield declined two basis points to 0.16%, and the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.2% to 99.14. 

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 2.6% following a 0.3% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for April, the Philadelphia Fed Index for May, and the Conference Board's Leading Economic Index for April on Thursday. 

• Nasdaq Composite +4.5% YTD
• S&P 500 -8.0% YTD
• Dow Jones Industrial Average -13.9% YTD
• Russell 2000 -19.3% YTD

Overseas: 

• Europe: DAX +1.3%, FTSE +1.1%, CAC +0.9%
• Asia: Nikkei +0.8%, Hang Seng +0.1%, Shanghai -0.5%

Commodities: 

• Crude Oil +1.21 @ 32.51
• Nat Gas -0.07 @ 1.77
• Gold +6.00 @ 1751.60
• Silver +0.14 @ 18.05
• Copper +0.04 @ 2.46

After-Hours Spotlight:

• Flexion Therapeutics (FLXN) announces public offering of $75.0 mln of its common shares... FLXN down 6.2% after hours
• Take-Two (TTWO) misses by $0.17, beats on revs; guides FY21 EPS below consensus, net bookings below consensus... TTWO down 3.8% after hours
• Expedia Group (EXPE) misses by $0.46, beats on revs... EXPE up 4.1% after hours
• Gilead Sciences (GILD) and Galapgos NV (GLPG) announce "positive" top-line results from Phase 2b/3 trial of filgotinib... GILD down 0.9% and GLPG down 10.5% after hours
• scPharmaceuticals (SCPH) commences public offering of common stock; size not disclosed... SCPH down 12.4% after hours
• Shoe Carnival (SCVL) misses by $0.19, beats on revs... SCVL up 6.8% after hours
• Skyline Champion (SKY) misses by $0.08, misses on revs... SKY down 4.2% after hours
• Keurig Dr Pepper (KDP) announces public secondary offering of 40.0 mln shares of its outstanding common stock by Maple Holdings B.V.... KDP down 1.7% after hours
• L Brands (LB) misses by $0.28, misses on revs... LB down 1.2% after hours
• Aurora Cannabis (ACB) to acquire Reliva in all-share transaction... ACB up 30.0% after hours
• Boston Scientific (BSX) announces concurrent offerings of $750.0 mln common shares and $750.0 mln of shares of its Series A Mandatory Convertible Preferred Stock... BSX down 4.0% after hours
• Synopsys (SNPS) beats by $0.23, beats on revs; guides JulQ EPS below consensus, revs below consensus; guides FY20 EPS in-line, reaffirms FY20 revs guidance... SNPS up 1.5% after hours
• Boot Barn Holdings (BOOT) misses by $0.08, misses on revs, same store sales decreased -4.7%... BOOT down 2.6% after hours
• Nordson (NDSN) beats by $0.32, beats on revs... NDSN up 1.4% after hours
• Ruth's Hospitality Group (RUTH) announces that Jefferies LLC has agreed to purchase $43.5 mln of the company’s common stock... RUTH down 5.7% after hours
• Walt Disney (DIS) is not presenting a reopening proposal to Florida officials tomorrow, as was previously reported, according to a CNBC Now tweet... DIS down 0.4% after hours
• Lemaitre Vascular (LMAT) files for $200 mln mixed securities shelf offering... LMAT unchanged after hours
• Vanda Pharma (VNDA) wins motion to dismiss False Claims Act lawsuit filed against the company... VNDA unchanged after hours

Today's News Summary:

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

• Earnings/Guidance (Full Earnings Calendar):
  • Analog Devices (ADI) beats by $0.04, reports revs in-line; guides Q3 EPS in-line, revs in-line
  • CSW Industrials (CSWI) reports Q4 results
  • Dr. Reddy's (RDY) reports Q4 results
  • Frontline (FRO) reports Q1 (Mar) results
  • Kornit Digital (KRNT) misses on EPS, reports revs in-line, guides 2H20 revs above consensus
  • Lowe's (LOW) beats by $0.45, beats on revs
  • McKesson (MCK) beats by $0.17, beats on revs; guides FY21 EPS below consensus, revs below consensus
  • Netease (NTES) beats by CNY3.90, beats on revs
  • QIWI (QIWI) reports Q1 results and reaffirms 2020 guidance
  • Red Rock Resorts (RRR) reports Q1 results, misses on revs, suspends dividend
  • Ship Finance Intl (SFL) reports Q1 (Mar) results, beats on revs
  • Sociedad Quimica y Minera (SQM) beats by $0.07, misses on revs
  • Target (TGT) beats by $0.19, beats on revs
  • Urban Outfitters (URBN) reports Q1 results, misses on revs, comparable retail segment sales decreased 28%
  • VEREIT (VER) beats by $0.01, reports revs in-line
• General News:
  • Senate passes the Holding Foreign Companies Accountable Act
  • President Trump and Senate Republicans are hoping reopening states will ease pressure to pass additional stimulus, according to Bloomberg
  • New York City is struggling to meet state standards for reopening and hospital admissions are increasing, according to Bloomberg
  • Former FDA commissioner Dr. Scott Gottlieb CNBC interview: He still believes Moderna (MRNA) results are "encouraging", but it would be nice to have more data; he believes phase 2 or phase 3 could take longer than company believes
  • World Health Organization rejects President Trump's demands for an overhaul, but member nations agree to review the response to coronavirus, according to the New York Times
  • Restaurants are asking for rent extensions, according to the Wall Street Journal
  • Trump considering travel ban on Brazil over coronavirus, according to Reuters
  • New renewable power is set to decline for the first time in 20 years, according to Bloomberg
  • 3D Systems (DDD) appoints Wayne Pensky as interim CFO, effective May 26
  • Aldeyra Therapeutics (ALDX) announced the planned advancement of the investigational new HSP90 inhibitor ADX-1612 to clinical testing for COVID-19
  • American Tower (AMT) increases quarterly dividend slightly to $1.10/sh from $1.08/sh
  • Applied Genetic Technologies (AGTC) announced the publication of positive preclinical data that provide the foundation for the vector and starting dose used in its ongoing Phase 1/2 clinical trial in patients with XLRP due to mutations in the RPGR gene
  • ARMOUR Residential REIT (ARR) announces resumption of monthly dividends; to pay $0.09/share common stock dividend in June
  • AstraZeneca (AZN) receives FDA approval for Lynparza
  • Bio-Techne (TECH) partners with Kantaro Biosciences to develop and scale production of COVID-19 serology test
  • BRT Apartments (BRT) provides business update
  • Clorox (CLX) raises quarterly dividend by 5% to $1.11 per share, up from $1.06 per share prior
  • Eiger BioPharmaceuticals (EIGR) announces FDA acceptance of NDA for filing with priority review for Zokinvy as treatment for Progeria and Progeroid Laminopathies
  • Fluor (FLR) awarded the front-end engineering and design for Minnkota Power Cooperative’s Project Tundra; contract value undisclosed
  • Halliburton (HAL) lowers Q2 dividend of $0.045 a share, prior $0.18 per share
  • Inovio Pharma (INO) 'announced the publication of the preclinical study data for IN0-4800, its COVID-19 DNA vaccine, demonstrating robust neutralizing antibody and T cell immune responses against coronavirus SARS-CoV-2'
  • Interface (TILE) cuts quarterly dividend to $0.01/sh from $0.065/sh to conserve cash
  • Johnson & Johnson (JNJ) to permanently discontinue sales of talc-based baby powder product in the US and Canada
  • Lockheed Martin (LMT) to slow pace of production of F-35 jets at Texas site, potentially leading to delivery delays for 18-24 jets, according to Reuters
  • Luckin Coffee (LK) resumes trading
  • Merck's (MRK) LYNPARZA (olaparib) was approved by FDA for treatment of HRR gene-mutated metastatic castration-resistant prostate cancer that has progressed following prior treatment with enzalutamide or abiraterone
  • Myriad Genetics (MYGN): FDA approved the BRACAnalysis CDx test for use as a companion diagnostic to identify men with metastatic castration-resistant prostate cancer who are eligible for treatment with Lynparza
  • Nordic American Tanker (NAT) to declare Q2 dividend of $0.20 per share, prior $0.14 per share
  • Northrop Grumman (NOC) increases quarterly dividend by 10% to $1.45/sh
  • PAE (PAE) wins ten-year contract to provide aircraft maintenance to the U.S. Customs and Border Protection Agency
  • Panasonic (PCRFY) restarting production at Tesla’s (TSLA) Buffalo, NY solar panel factory this week, according to TheVerge.com
  • Roche Hldg (RHHBY) announces availability of Elecsys Anti-SARS-CoV-2 antibody test at sites throughout the US
  • Surface Oncology (SURF) entered into a clinical trial collaboration with Merck to evaluate the safety and efficacy of combining its SRF617 w/ Keytruda; co also announced ~$30 mln at-the market facility
  • Viasat (VSAT) awarded $999 mln Navy contract

• Upgrades:
  • Anheuser-Busch InBev (BUD) upgraded to Neutral from Underweight at JP Morgan
  • Cheniere Energy (LNG) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $64
  • Cree (CREE) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $60
  • CSX (CSX) upgraded to Buy from Neutral at UBS; tgt raised to $80
  • Delek US Holdings (DK) upgraded to Neutral from Sell at Goldman; tgt raised to $22
  • Duke Realty (DRE) upgraded to Buy from Neutral at BofA/Merrill; tgt raised to $40
  • Eagle Materials (EXP) upgraded to Outperform from Mkt Perform at Raymond James; tgt $80
  • Fresenius Medical (FMS) upgraded to Equal-Weight from Underweight at Morgan Stanley
  • Green Plains (GPRE) upgraded to Buy from Hold at Jefferies; tgt raised to $16
  • Logitech Int'l SA (LOGI) upgraded to Neutral from Sell at UBS
  • Ultrapar Participacoes (UGP) upgraded to Buy from Neutral at Goldman
  • Union Pacific (UNP) upgraded to Buy from Neutral at UBS; tgt raised to $181
  • Zions Bancorp (ZION) upgraded to Buy from Neutral at DA Davidson; tgt $36
• Downgrades:
  • Anaplan (PLAN) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $50
  • Afya (AFYA) downgraded to Neutral from Buy at UBS; tgt lowered to $21.50
  • Arco Platform (ARCE) downgraded to Neutral from Buy at UBS; tgt raised to $57
  • Charles Schwab (SCHW) downgraded to Neutral from Buy at Compass Point; tgt $35
  • Cosan (CZZ) downgraded to Neutral from Buy at Goldman
  • Pinduoduo (PDD) downgraded to Neutral from Buy at BofA/Merrill; tgt $64
  • Sunnova Energy (NOVA) downgraded to Neutral from Buy at BofA/Merrill; tgt $15
  • TD Ameritrade (AMTD) downgraded to Neutral from Buy at Compass Point; tgt $38
• Others:
  • AES (AES) initiated with a Buy at Seaport Global Securities; tgt $17
  • American Electric (AEP) initiated with a Buy at Seaport Global Securities; tgt $86
  • American States Water (AWR) initiated with a Buy at Seaport Global Securities; tgt $84
  • American Water Works (AWK) initiated with a Buy at Seaport Global Securities; tgt $130
  • Arconic (ARNC) initiated with an Outperform at Credit Suisse; tgt $22
  • AVANGRID (AGR) initiated with a Neutral at Seaport Global Securities
  • California Water (CWT) initiated with a Neutral at Seaport Global Securities
  • CNO Financial (CNO) initiated with a Neutral at Piper Sandler; tgt $14
  • DTE Energy (DTE) initiated with a Buy at Seaport Global Securities; tgt $121
  • Entergy (ETR) initiated with a Buy at Seaport Global Securities; tgt $108
  • Essential Utilities (WTRG) initiated with a Neutral at Seaport Global Securities
  • Eversource Energy (ES) initiated with a Buy at Seaport Global Securities; tgt $88
  • Exelon (EXC) initiated with a Buy at Seaport Global Securities; tgt $40
  • FirstEnergy (FE) initiated with a Buy at Seaport Global Securities; tgt $47
  • GrowGeneration (GRWG) initiated with a Buy at The Benchmark Company; tgt $8
  • NRG Energy (NRG) initiated with a Buy at Seaport Global Securities; tgt $42.50
  • PPL Corp (PPL) initiated with a Neutral at Seaport Global Securities
  • Public Service (PEG) initiated with a Neutral at Seaport Global Securities
  • SJW (SJW) initiated with a Neutral at Seaport Global Securities
  • Southern (SO) initiated with a Buy at Seaport Global Securities; tgt $60
  • Vistra Energy (VST) initiated with a Neutral at Seaport Global Securities

Upcoming Events:

• Econ data (Thursday):
  • 08:30 ET: Initial Claims for week ending May 16 (Briefing.com consensus 2.400 mln; prior 2.981 mln) and Continuing Claims for week ending May 9 (prior 22.833 mln)
  • 08:30 ET: Philadelphia Fed Survey for May (Briefing.com consensus -43.0; prior -56.6)
  • 10:00 ET: Existing Home Sales for April (Briefing.com consensus 4.32 mln; prior 5.27 mln)
  • 10:00 ET: Leading Indicators for April (Briefing.com consensus -5.3%; prior -6.7%)
  • 10:30 ET: EIA natural gas inventories for week ending May 16 (prior +103 bcf)
• Earnings:
  • Monday (May 18)
    • Pre-Market: IGT SE
    • After-Hours: BIDU BILI BVN IQ
  • Tuesday (May 19)
    • Pre-Market:  AAP DY EXP HD KSS SINA WMT WB
    • After-Hours: KRNT NTES RRR SQM URBN
  • Wednesday (May 20)
    • Pre-Market:  ADI EV FRO LOW MCK ROLL TGT VER
    • After-Hours:  BOOT CPRT EXPE HUYA YY LB NDSN SCVL SKY SNPS TTWO ZTO
  • Thursday (May 21)
    • Pre-Market:  WMS AINV BBY BJ BRC DAVA HRL MDT TGP TNK TJX USPH
    • After-Hours: A DECK HPE INTU RAMP NVDA PANW PRSP PLT ROST SPLK
  • Friday (May 22)
    • Pre-Market: BABA BKE CAE DE FL PDD
    • After-Hours: None of note
    • Full Earnings Calendar