After Hours Report

A soft start for the stock market firmed up as the session progressed thanks to the stabilizing influence of the mega-cap stocks and a welcome pullback in crude oil prices, which flirted with $120.00/bbl early in the day before settling the session up just 0.1% at $114.93/bbl.

The pop in oil prices stemmed from a report that EU leaders had agreed to a ban on 90% of Russia's crude imports by the end of the year. That pop in prices stirred concerns about discretionary spending potential and inflation pressures persisting longer than expected. Consequently, there was an early push to do some selling following last week's huge gains.

At their lows of the morning, the Dow, Nasdaq, and S&P 500 were down 1.4%, 1.6%, and 1.3%, respectively. They didn't stay down -- or at least they didn't stay depressed. Instead, they demonstrated some resilience to selling efforts, which itself became a catalyst that attracted renewed buying interest that helped each of the indices edge their way into positive territory.

The upside momentum, however, didn't run abated like it did last week. There was more weakness beneath the surface than met the eye, evidenced by an advance-decline line that favored declining issues by a 2-to-1 margin at the NYSE and by a 7-to-5 margin at the Nasdaq. The relative strength of the mega-cap stocks stood out in the Vanguard Mega-Cap growth ETF (MGK), which slipped 0.3% versus a 0.9% decline for the Invesco S&P 500 Equal Weight ETF (RSP).

Today ultimately turned into a day of consolidation as market participants sat on the idea that there will be some key economic reports later this week, including the May ISM Manufacturing Index on Wednesday and the May Employment Situation Report on Friday.

Also, the trading action was stunted by a lack of market-moving corporate news and rising yields in the Treasury market, which were triggered by the early move in oil prices and a contention from Fed Governor Waller (FOMC voter) that he supports a policy rate above the neutral rate by the end of the year.

The 10-yr note yield settled the day up 10 basis points at 2.84% while the 2-yr note yield jumped eight basis points to 2.54%. The U.S. Dollar Index increased 0.1% to 101.77.

Reviewing today's economic data:

• The Conference Board's Consumer Confidence Index dipped to 106.4 in May (Briefing.com consensus 103.7) from an upwardly revised 108.6 (from 107.3) in April. In the same period a year ago, the index stood at 120.0.
  • The key takeaway from the report is that inflation continues to be top of mind for consumers, which could pose downside risk for the economy if inflation pressures persist and curtail consumers' discretionary spending activity.
• The S&P Case-Shiller Home Price Index was up 21.2% year-over-year in March (Briefing.com consensus 20.0%) following an upwardly revised 20.3% (from 20.2%) in February. The FHFA Housing Price Index increased 1.5% month-over-month in March following a downwardly revised 1.9% increase (from 2.1%) in February.
• The May Chicago PMI checked in at 60.3 (Briefing.com consensus 55.5) versus 56.4 in April.

Looking ahead, market participants will receive the weekly Mortgage Applications Index, the Final IHS Manufacturing PMI for May, the May ISM Manufacturing Index, the April JOLTS - Job Openings Report, the April Construction Spending Report, and the Fed's Beige Book.

• Dow Jones Industrial Average -9.3% YTD
• S&P 500 -13.3% YTD
• S&P 400 -11.5% YTD
• Russell 2000 -16.6% YTD
• Nasdaq Composite -22.8% YTD

Overseas: 

• Europe: DAX -1.3%, FTSE +0.1%, CAC -1.4%
• Asia: Nikkei -0.3%, Hang Seng +1.4%, Shanghai +1.2%

Commodities: 

• Crude Oil +0.16 @ 114.93
• Nat Gas -0.53 @ 8.20
• Gold -3.80 @ 1847.60
• Silver -0.43 @ 21.65
• Copper -0.01 @ 4.29

After-Hours Spotlight:

• Ambarella (AMBA) beats by $0.07, reports revs in-line; guides JulQ revs below consensus... AMBA down 6.4%
• ChargePoint (CHPT) reports Q1 results, beats on revenue; guides Q2 and FY23 revenue inline... CHPT down 4.1%
• Digital Turbine (APPS) reports EPS in-line, grows revs 93.7% yr/yr to $184.14 mln; expects Q1 EPS of $0.34-0.35 and revs of $183-187 mln... APPS up 0.5%
• HP Inc. (HPQ) beats by $0.03, beats on revs; guides JulQ EPS mostly above consensus; guides FY22 EPS mostly above consensus... HPQ up 0.3%
• Meta Platforms (FB) to change ticker symbol to "META" effective June 9... FB up 0.1%
• Salesforce (CRM) beats by $0.04, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; raises FY23 EPS guidance above consensus, raises non-GAAP operating margin guidance, lowers revenue guidance below consensus... CRM up 5.9%
• Victoria's Secret (VSCO) beats by $0.27, reports revs in-line; guides Q2 EPS in-line, revenue inline... VSCO up 6.7%

Fair Value for Wednesday, June 1st:

• S&P 500: 4,131
• Nasdaq 100: 12,643
• DJIA: 32,962

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

• Earnings/Guidance (Full Earnings Calendar):
  • Hawaiian Holdings (HA) updates Q2 outlook
  • KE Holdings (BEKE) beats by $0.35, beats on revs; guides Q2 revs below consensus; proposes share repurchase program
  • Nano Dimension (NNDM) reports Q1 results
• General News:
  • President Biden will meet with Fed Chairman Jerome Powell at White House today, according to Bloomberg
  • President Biden in OpEd says he will support Fed on inflation and job growth will likely slow, according to the Wall Street Journal
  • President Biden says US is “not going to send to Ukraine rocket systems that can strike into Russia”
  • Ukraine conducting counteroffensive to reclaim city in southern Ukraine. Russia continues to attack eastern Ukraine with attempts to capture Sievierodonetsk, according to the New York Times
  • EU announces that it "should now be able to finalise a ban on almost 90% of all Russian oil imports by the end of the year; We will soon return to the issue of the remaining 10% of pipeline oil."
  • FDA along with CDC, the Public Health Agency of Canada and the Canadian Food Inspection Agency, state, and local partners are investigating a multistate outbreak of hepatitis A infections in the United States
  • Shanghai offers tax rebates to companies ahead of June 1 return to operations following lockdown, according to Bloomberg
  • Senator Chris Murphy (D-CT) sees areas of compromise on gun legislation involving red flag laws, enhanced background checks, and school security, according to Politico
  • Some Democrats fear proposals around banning assault weapons will cost them politically ahead of the midterm elections, so they want to focus on red flag laws and background checks in order to try and get 60 Senate votes, according to The Hill
  • Thousands of flights were cancelled over the weekend, according to ABC News
  • "Top Gun: Maverick" was the biggest opening weekend for Tom Cruise, according to CNN
  • White House Economic Advisor Brian Deese CNBC interview
  • President Biden says he and Fed Chairman Jerome Powell will discuss inflation; he respects Fed independence; says economy needs to transition to steady growth
  • OPEC mulling suspension of Russia from oil production deal, according to WSJ
  • Shanghai will begin easing COVID-19 restrictions tomorrow and reopening businesses, according to NY Times
  • Alexandria RE (ARE) raises quarterly dividend to $1.18 from $1.15/share
  • Allegion (ALLE) announced that John H. Stone will succeed David D. Petratis as president and CEO, effective July 11
  • Amgen (AMGN) announces positive topline Phase 2 data for investigational Olpasiran in adults with elevated lipoprotein(a)
  • American Electric (AEP): Southwestern Electric Power Company has announced plans to add three renewable energy projects totaling 999 megawatts
  • argenx (ARGX) reports the UK MHRA has granted early access to Efgartigimod for generalized myasthenia gravis
  • BioMarin Pharm (BMRN) announces durable hemostatic efficacy maintained over 6 years in ongoing phase 1/2 study of valoctocogene roxaparvovec, investigational gene therapy for hemophilia
  • Blackstone (BX) aiming to purchase Advarra for $5 bln, according to Bloomberg
  • Blink Charging (BLNK): EB Charging announces an agreement with Q-Park to deploy nearly 600 charging points across 80 sites in the United Kingdom and Ireland
  • Boeing (BA): Norwegian to purchase 50 Boeing 737 MAX 8 aircraft
  • Breeze Holdings Acquisition Corp. (BREZ) merger partner D-Orbit Secures additional launch ports with SpaceX for 2023 rideshare missions
  • Bristol-Myers (BMY) receives FDA approval for two Opdivo-based regimens as first-line treatments for unresectable advanced or metastatic esophageal squamous cell carcinoma
  • BRP Inc. (DOOO) announces executive appointments to support future growth plans
  • Canadian Pacific (CP) announces a new multi-year agreement with CMA CGM Group
  • Cenovus Energy (CVE) and its partners have agreed to restart the West White Rose Project offshore Newfoundland and Labrador
  • Chart Industries (GTLS) completes the acquisition of Fronti Fabrications for $20 mln
  • Credit Suisse (CS) mulling options to increase capital, according to Reuters
  • Denali Therapeutics (DNLI) and Biogen (BIIB) announce that dosing has commenced in the global Phase 2b LUMA study to evaluate the efficacy and safety of BIIB122
  • Dexcom (DXCM) issues statement on recent media and market speculation
  • Eledon Pharmaceuticals (ELDN) announces positive topline results from phase 2a trial of tegoprubart demonstrating safety, target engagement, and biomarker response in patients living with amyotrophic lateral sclerosis
  • Eni S.p.A. (E) signs strategic agreement with XEV targeting the Italian industrial supply chain for vehicle assembly
  • Enlivex Therapeutics (ENLV) announces new preclinical data in ovarian cancer showing a substantial survival benefit when allocetra is combined with pd-1 checkpoint inhibition at the American Society of Clinical Oncology (Annual Meeting
  • Ford Motor (F): Tata Motors (TTM) and Ford signed a Memorandum of Understanding with the Government of Gujarat for the potential acquisition of FIPL's Sanand vehicle manufacturing facility
  • Franklin Resources (BEN) agrees to acquire Alcentra from BNY Mellon (BK)
  • General Motors (GM): GM Defense expands into Canada
  • GlaxoSmithKline (GSK): ViiV Healthcare announces marketing approval by Japan’s Ministry of Health, Labour and Welfare for Vocabria (cabotegravir) used in combination with Rekambys (rilpivirine), the first and only complete long-acting treatment for HIV
  • Gritstone (GRTS) Announces Updated Overall Survival Results in Advanced Colorectal Cancer Patients from Phase 1/2 Study of GRANITE and Trial in Progress Poster at ASCO
  • Hanesbrands (HBI) identified that it had become subject to a ransomware attack and activated its incident response and business continuity plans designed to contain the incident
  • Hasbro (HAS): Alta Fox issues letter to shareholders regarding the need to elect a capital allocation and disclosure expert to Hasbro’s 13-member board
  • Horizon Pharma (HZNP) announced data from the Phase 3 pivotal trial of UPLIZNA in NMOSD illustrating the treatment’s effectiveness among patients with different genetic make-ups
  • IBM (IBM) ordered to pay $1.6 bln in BMC Software case, according to Bloomberg
  • IMAX (IMAX) reports best Memorial Day Weekend opening ever with $32.5 global million debut of "Top Gun: Maverick"
  • Interactive Brokers (IBKR) launches fractional shares trading for European stocks and ETFs
  • Jefferies (JEF): Leucadia Asset Management, the asset management division of Jefferies Financial Group Inc., announces a strategic relationship with Pearlstone Alternative
  • JinkoSolar's (JKS) principal operating subsidiary signs a new agreement with Aldo Solar for the distribution of 600 MW N-type Tiger Neo modules
  • Largo Resources (LGO) receives acceptance of its notice to initiate a normal course issuer bid
  • Lazydays Holdings (LAZY): KWM writes letter to LAZY board challenging directors to represent minority shareholders
  • Lexicon Pharma (LXRX) has resubmitted a New Drug Application to the U.S. Food and Drug Administration seeking approval for the marketing and sale of sotagliflozin for the treatment of heart failure
  • LivePerson (LPSN): Starboard delivers open letter to LivePerson stockholders
  • MiMedx Group (MDXG): Prescience Point Capital Management Releases Presentation Detailing Board And Management Failures at MiMedx Group
  • Moderna (MRNA) and Takeda (TAK) announce plans to transfer Marketing Authorization for Spikevax COVID-19 vaccine in Japan to Moderna
  • MoneyGram (MGI) aiming to introduce platform with Stellar blockchain, according to Bloomberg
  • Nestle (NSRGY) in discussions for additional formula shipments, according to Bloomberg
  • New Pacific (NEWP) Intersects 60.48 Metre Interval Grading 236 Grams Per Tonne Silver at the Silver Sand Project
  • Northrop Grumman (NOC) awarded a US Navy $254 mln price modification to previously awarded contract for SEWIP
  • Novartis AG (NVS) facility that produced cancer drug had quality problems, according to Stat News
  • Novartis AG's (NVS) Sandoz announces new global ‘Act4Biosimilars’ initiative, to improve patient access and increase adoption by at least 30% in 30+ countries by 2030
  • Novartis AG (NVS): FDA approves Novartis Kymriah CAR-T cell therapy for adult patients with relapsed or refractory follicular lymphoma
  • Osisko Gold Royalties (OR) signs binding agreement with respect to the previously announced metals stream on the Trixie Mine
  • Outlook Therapeutics (OTLK) announces that the U.S. Food and Drug Administration has requested additional information in order to complete the filing of the Company’s Biologics License Application for ONS-5010/ LYTENAVA for the treatment of wet age-related macular degeneration
  • Rayonier Adv. Materials (RYAM) anounced that De Lyle W. Bloomquist has been appointed President and Chief Executive Officer of the Company, effective immediately; reaffirms FY22 EBTIDA guidance
  • Raytheon Technologies (RTX) awarded a US Army $525 mln contract modification for Stinger missiles
  • Realogy (RLGY) to change its name and ticker to Anywhere Real Estate (HOUS), effective June 9
  • Regeneron Pharma (REGN) receives Priority Review acceptance for Dupixent from FDA
  • Regeneron Pharma (REGN) completes acquisition of Checkmate Pharmaceuticals (CMPI)
  • Roche Hldg (RHHBY) receives FDA approval of label extension for Evrysdi
  • Rogers Comms (RCI), Shaw (SJR) and the Commissioner of Competition reach agreement to resolve the interim injunction application
  • Samsung (SSNLF) lowers expectations for smartphone production, according to MK Korea
  • Sanofi (SNY) reports FDA placed Cialis Rx-to-OTC switch on clinical hold
  • SciSparc (SPRC) has signed a collaboration agreement with Polyrizon Ltd.
  • Sealed Air (SEE) announces Henry R. Keizer as Chair of its Board of Directors
  • Smith & Wesson Brands (SWBI): Canada will be implementing a national freeze on handguns to prevent individuals from bringing newly acquired handguns into Canada and from buying, selling, and transferring handguns within the country
  • Sprott Inc (SII) appoints Whitney George as CEO, effective June 30
  • Stryker (SYK) announces that its Q Guidance System received 510(k) clearance from the U.S. Food and Drug Administration
  • Superior Group (SGC) announce that the Board of Directors of the Company has appointed Michael Koempel to the role of CFO of the Company, effective May 31, 2022
  • Swvl (SWVL) announces portfolio optimization program to turn cash flow positive in 2023
  • Taylor Morrison Home (TMHC) authorizes increase in the amount available for repurchases of its common stock to $500 million from $250 million previously
  • Tesla (TSLA) Shanghai output was restored to 70% of pre-lockdown levels, according to Reuters
  • TG Therapeutics (TGTX) announces that the U.S. Food and Drug Administration has extended the Prescription Drug User Fee Act goal date to December 28, 2022, for the Biologics License Application for ublituximab as a treatment for patients with relapsing forms of multiple sclerosis
  • trivago (TRVG) authorized a program to repurchase up to 10 million of the Company's American Depositary Shares
  • Tyler Tech (TYL) has acquired Quatred; financial terms were not disclosed
  • Y-mAbs Therapeutics (YMAB) announces FDA acceptance for priority review of BLA for OMBLASTYS as treatment for neuroblastoma
  • Zai Lab (ZLAB) to Present New PRIME Subgroup Analysis for Niraparib in Ovarian Cancer at 2022 ASCO Annual Conference
  • Zealand Pharma (ZEAL) Announces Multiple Presentations at the 82nd Annual American Diabetes Association Scientific Sessions, Including Initial Clinical Data on GLP-1/GLP-2 Dual Agonist Dapiglutide
  • Zentalis Pharma (ZNTL) promotes Cam Gallagher to President

(see Upgrades/Downgrades calendar for full list):

• Upgrades:
  • DISH Network (DISH) upgraded to Buy from Hold at Truist; tgt raised to $60
  • Grab (GRAB) upgraded to Outperform from Mkt Perform at Bernstein; tgt $3.04
  • Linde plc (LIN) upgraded to Outperform from In-line at Evercore ISI; tgt $355
  • Magellan Midstream (MMP) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $56
  • Mercury (MRCY) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $72
  • Novo Nordisk A/S (NVO) upgraded to Buy from Neutral at Guggenheim
  • Nurix Therapeutics (NRIX) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $25
  • NuStar Energy (NS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $18
  • Volkswagen AG (VWAGY) upgraded to Buy from Hold at HSBC Securities
  • Zoom Video (ZM) upgraded to Outperform from Underperform at Daiwa Securities; tgt raised to $121
• Downgrades:
  • Cheniere Energy Partners (CQP) downgraded to Underweight from Equal Weight at Wells Fargo; tgt $55
  • Essex Property (ESS) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $320
  • Kilroy Realty (KRC) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $70
  • NetScout Systems (NTCT) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $33
  • NorthWestern (NWE) downgraded to Underperform from Neutral at BofA Securities; tgt raised to $62
  • PubMatic (PUBM) downgraded to Hold from Buy at Jefferies; tgt lowered to $23
  • Sunoco LP (SUN) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $41
  • Vornado Rlty Trust (VNO) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $40
• Others:
  • ADS-TEC Energy GmbH (ADSE) initiated with a Buy at Berenberg; tgt $10
  • Bausch + Lomb (BLCO) initiated with a Buy at Guggenheim; tgt $24
  • Bausch + Lomb (BLCO) initiated with an Overweight at Wells Fargo; tgt $23
  • Eastman Chemical (EMN) initiated with an Outperform at Credit Suisse; tgt $130
  • FMC Corp (FMC) initiated with an Underperform at Credit Suisse; tgt $109
  • Hyperfine (HYPR) initiated with an Outperform at Evercore ISI; tgt $7
  • Linde plc (LIN) initiated with an Outperform at Credit Suisse; tgt $380
  • Liquidia Technologies (LQDA) initiated with a Buy at BTIG Research; tgt $14
  • PepGen (PEPG) initiated with a Buy at BofA Securities; tgt $16
  • PepGen (PEPG) initiated with an Outperform at SVB Leerink; tgt $40
  • PPG Industries (PPG) initiated with an Underperform at Credit Suisse; tgt $115
  • Sherwin-Williams (SHW) initiated with an Underperform at Credit Suisse; tgt $245

Upcoming Events:

• Econ data (Tuesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior -1.2%) · 9:45 ET: Final May IHS Markit Manufacturing PMI (prior 57.5)
  • 10:00 ET: April job openings (prior 11.549 mln), April Construction Spending (Briefing.com consensus 0.6%; prior 0.1%), and May ISM Manufacturing Index (Briefing.com consensus 54.9%; prior 55.4%)
• Earnings:
  • Monday (May 30)
    • Pre-Market: None
    • After-Hours: None
  • Tuesday (May 31)
    • Pre-Market:  BEKE
    • After-Hours:   AMBA APPS HPQ CRM SPWH VSCO
  • Wednesday (June 1)
    • Pre-Market:  CPRI CONN DCI WB
    • After-Hours: AI CHWY CRDO DSGX ESTC GME HPE MDB NCNO NTAP PSTG PVH SMTC S PATH VEEV
  • Thursday (June 2)
    • Pre-Market:  CAE CIEN DBI HRL SCWX SPTN TTC
    • After-Hours: ASAN CVGW COO CRWD JOAN LULU OKTA PD PHR RH ZUMZ
  • Friday (June 3)
    • Pre-Market:  None
    • After-Hours: None
    • Full Earnings Calendar