After Hours Report

Cyclical sectors led the S&P 500 to a 1.2% gain on Thursday, while mega-cap technology stocks carried the Nasdaq Composite to a 1.4% gain and into positive territory for the year. The Dow Jones Industrial Average rose 0.9%, and the Russell 2000 rose 1.6%. 

The day started with investors receiving economic data that the market construed as relatively good: weekly initial jobless claims totaled 3.169 million (Briefing.com consensus 2.900 million), but it was encouraging that it reflected another 677,000 decline from the prior week. Likewise, China's imports fell more than expected in April, but an increase in exports was a nice surprise.

Weekly claims are a leading indicator, so the declining trend appeared to endorse the market's reopening/recovery enthusiasm, which was made apparent in the outperformance of the cyclical energy (+2.5%), financials (+2.2%), and materials (+2.1%) sectors.

The S&P 500 peaked at around the 2900 level before gradually paring gains throughout the afternoon. The defensive-oriented consumer staples (-0.4%) and health care (-0.1%) sectors closed in negative territory.  

It was still a good day with many stocks receiving earnings-related boosts, including PayPal (PYPL 146.29, +17.98, +14.0%), T-Mobile US (TMUS 95.29, +8.70, +10.1%), Lyft (LYFT 31.78, +5.66, +21.7%), and Twilio (TWLO 170.89, +48.49, +39.6%). Investors were especially pleased to hear PayPal and Lyft noting improved/stabilizing conditions in April. 

Moderna (MRNA 53.19, +4.24, +8.7%) was another story stock after announcing it received FDA approval to proceed to a Phase 2 trial for its COVID-19 vaccine candidate.

It wasn't a true risk-on day, though, as U.S. Treasuries padded gains throughout the session and WTI crude futures ($23.65/bbl, -0.30, -1.3%) gave up an intraday gain. The advance in Treasuries drove the 2-yr yield down six basis points to 0.11% and the 10-yr yield down eight basis points to 0.63%. The U.S. Dollar Index declined 0.2% to 99.88. 

Reviewing Thursday's economic data:

• Initial claims for the week ending May 2 decreased by 677,000 to 3.169 million (Briefing.com consensus 2.900 mln). Continuing claims for the week ending April 25 surged by 4,636,000 to 22.647 million, which is a record high.
  • The market, in its current frame of mind, is apt to see the decline in initial claims as relatively good news, yet the key takeaway from the report is that the massive influx of initial claims is just bad in an absolute sense for economic activity because those jobs won't be recovered nearly as quickly as they have been lost.
• Nonfarm business sector labor productivity decreased 2.5% in the first quarter (Briefing.com consensus -6.0%) following a 1.2% increase in the fourth quarter. Unit labor costs increased 4.8% (Briefing.com consensus +2.9%) after increasing 0.9% in the fourth quarter.
  • The key takeaway from the report is that productivity was weak, which is a headwind to an increased standard of living. That headwind should be even stronger in the second quarter.
• Consumer credit contracted by $12.1 bln in March (Briefing.com consenus $7.5 bln) after increasing a downwardly revised $20.0bln (from $22.3 bln) in February.
  • The key takeaway from the report is that it shows how banks and finance companies grew more restrictive in extending revolving credit to individuals in March.

Looking ahead, investors will receive the Employment Situation Report for April and Wholesale Inventories for March on Friday.

• Nasdaq Composite +0.1% YTD
• S&P 500 -10.8% YTD
• Dow Jones Industrial Average -16.3% YTD
• Russell 2000 -23.1% YTD

Overseas: 

• Europe: DAX +1.4%, FTSE +1.4%, CAC +1.5%
• Asia: Nikkei +0.3%, Hang Seng -0.7%, Shanghai -0.2%

Commodities: 

• Crude Oil +0.18 @ 24.17
• Nat Gas -0.03 @ 1.91
• Gold +36.00 @ 1724.50
• Silver +0.58 @ 15.60
• Copper +0.04 @ 2.39

After-Hours Spotlight:

• Alarm.com (ALRM) beats by $0.08, beats on revs; guides FY20 EPS below consensus, revs below consensus... ALRM down 0.1% after hours
• Appian (APPN) beats by $0.08, beats on revs; guides Q2 EPS below consensus, revs below consensus; withdraws FY20 guidance... APPN down 12.1% after hours
• Booking Holdings (BKNG) misses by $1.37, beats on revs... BKNG up 0.4% after hours
• Camping World (CWH) beats by $0.12, beats on revs... CWH up 20.0% after hours
• Cloudflare (NET) beats by $0.02, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY20 EPS in-line, revs above consensus... NET down 11.9% after hours
• Dropbox (DBX) beats by $0.04, reports revs in-line... DBX up 1.4% after hours
• Fiserv (FISV) reports EPS in-line, misses on revs; withdraws 2020 guidance; announces CEO succession plan... FISV down 5.0% after hours
• Glu Mobile (GLUU) misses by $0.06, beats on revs; guides FY20 revs above consensus... GLUU up 2.2% after hours
• Intuit (INTU) lowers Q3 guidance, withdraws FY2020 outlook... INTU down 2.8% after hours
• Live Nation (LYV) misses by $0.24, misses on revs... LYV down 1.2% after hours
• Microchip (MCHP) beats by $0.11, reports revs in-line; guides Q1 EPS in-line, revs in-line... MCHP up 0.6% after hours
• Monster Beverage (MNST) beats by $0.04, beats on revs... MNST up 2.3% after hours
• Motorola Solutions (MSI) beats by $0.19, reports revs in-line; guides Q2 EPS below consensus, revs below consensus; withdraws FY20 guidance... MSI down 9.7% after hours
• News Corp. (NWSA) beats by $0.03, misses on revs... no after hours indication for NWSA
• Paylocity (PCTY) beats by $0.03, beats on revs; guides Q4 revs below consensus; guides FY20 revs in-line... PCTY down 4.8% after hours
• Proofpoint (PFPT) beats by $0.11, beats on revs; guides Q2 EPS above consensus, revs in-line... PFPT down 4.8% after hours
• Qualys (QLYS) beats by $0.12, reports revs in-line; guides Q2 EPS above consensus, revs below consensus; lowers FY20 guidance... QLYS down 9.1% after hours
• Qorvo (QRVO) beats by $0.49, beats on revs; guides Q1 EPS above consensus, revs mostly above consensus... QRVO up 3.7% after hours
• Redfin (RDFN) beats by $0.11, beats on revs; guides Q2 revs in-line... RDFN down 0.9% after hours
• Roku (ROKU) beats by $0.01, beats on revs... ROKU down 9.5% after hours
• Stamps.com (STMP) beats by $0.33, beats on revs; reaffirms FY20 EPS guidance, revs guidance... STMP down 7.4% after hours
• Synaptics (SYNA) beats by $0.08, misses on revs; guides Q4 revs below consensus... SYNA down 4.4% after hours
• Teradata (TDC) beats by $0.04, misses on revs; guides Q2 EPS, revs below consensus; withdraws FY2020 guidance... TDC down 9.4% after hours
• The Trade Desk (TTD) beats by $0.49, beats on revs; not providing Q2 guidance; withdraws FY20 guidance... TTD down 7.3% after hours
• TripAdvisor (TRIP) misses by $0.09, misses on revs... TRIP down 3.9% after hours
• Uber (UBER) reports Q1 results beats on revs; after an 80% decline in rides in April, UBER has experienced week-on-week growth over the past three weeks... UBER up 8.2% after hours
• Yelp (YELP) misses by $0.10, beats on revs... YELP down 5.3% after hours
• Zillow (ZG) beats by $0.08, beats on revs; guides Q2 revs below consensus... ZG down 0.4% after hours

Fair Value for Friday, May 8:

• S&P 500: 2874
• Nasdaq 100: 9089
• DJIA: 23779

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):
  • 3D Systems (DDD) beats by $0.02, misses on revs
  • Ameriprise Financial (AMP) beats by $1.48, beats on revs; raises dividend
  • Anheuser-Busch InBev (BUD) misses by $0.08, beats on revs
  • Apache (APA) beats by $0.19, misses on revs
  • ArcelorMittal (MT) beats by $1.30, misses on revs
  • Bausch Health (BHC) reports EPS in-line, revs in-line; guides FY20 revs below consensus
  • Becton Dickinson (BDX) beats by $0.26, beats on revs; withdraws guidance
  • Benefitfocus (BNFT) beats by $0.05, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; guides FY20 EPS above consensus, revs in-line
  • Bottomline Tech (EPAY) misses by $0.06, misses on revs
  • Bristol-Myers (BMY) beats by $0.27, beats on revs; reaffirms FY20 EPS guidance; slightly lowers FY20 revenue guidance; guides FY21 EPS in-line
  • Carvana (CVNA) misses by $0.54, reports revs in-line
  • CenturyLink (CTL) beats by $0.02, misses on revs, withdraws FY20 outlook
  • Danaher (DHR) reports EPS in-line, revs in-line
  • DISH Network (DISH) misses by $0.44, beats on revs
  • Energizer (ENR) misses by $0.16, reports revs in-line; withdraws FY20 outlook
  • Etsy (ETSY) misses by $0.15, beats on revs; guides Q2 revs above consensus
  • Extended Stay America (STAY) beats by $0.02, beats on revs; cuts quarterly dividend to $0.01/share from $0.23/share
  • Fastly (FSLY) beats by $0.18, beats on revs; guides Q2 EPS above consensus, revs above consensus; raises FY20 EPS above consensus, revs above consensus
  • FormFactor (FORM) beats by $0.11, beats on revs
  • Fortinet (FTNT) beats by $0.10, beats on revs; guides Q2 EPS above consensus, revs above consensus
  • Fox Factory Holding (FOXA) misses by $0.03, beats on revs
  • GoDaddy (GDDY) beats by $0.07, reports revs in-line; guides Q2 revs in-line
  • Grubhub (GRUB) beats by $0.03, reports revs in-line
  • Hain Celestial (HAIN) beats by $0.04, beats on revs; guides FY20 EPS above consensus
  • Hyatt Hotels (H) misses by $0.17
  • Insight Enterprises (NSIT) beats by $0.16, misses on revs; withdraws guidance
  • InterActiveCorp (IAC) reports Q1 (Mar) results, beats on revs 
  • Jacobs Engineering (J) beats by $0.08, beats on revs; guides Q2 EPS above consensus, revs above consensus
  • JetBlue Airways (JBLU) beats by $0.01, misses on revs
  • Livongo Health (LVGO) beats by $0.07, beats on revs; guides Q2 revs in-line; guides FY20 revs in-line
  • Lyft (LYFT) reports Q1, beats on revs, does not provide guidance
  • Marathon Oil (MRO) misses by $0.01, beats on revs
  • Moderna (MRNA) beats by $0.01, misses on revs
  • Nu Skin (NUS) beats by $0.11, beats on revs; guides Q2 EPS above consensus, revs above consensus; guides FY20 EPS above consensus, revs above consensus
  • NuVasive (NUVA) beats by $0.07, reports revs in-line
  • PayPal (PYPL) misses by $0.08, misses on revs; provides Q2 guidance; withdraws FY20 guidance
  • Peloton (PTON) reports Q3 results, beats on revs; guides Q4 revs above consensus
  • Pioneer Natural Resources (PXD) beats by $0.21, beats on revs; reduces capex budget
  • Qiagen (QGEN) beats by $0.07, beats on revs; guides Q2 EPS above consensus; suspends FY20 guidance
  • Quidel (QDEL) beats by $0.27, beats on revs
  • Raytheon Technologies (RTN) beats by $0.73, beats on revs
  • RE/MAX Holdings (RMAX) reports EPS in-line, revs in-line
  • Rent-A-Center (RCII) beats by $0.10, reports revs in-line
  • RingCentral (RNG) beats by $0.01, beats on revs; guides Q2 EPS in-line, revs in-line; guides FY20 EPS in-line, revs above consensus
  • SolarEdge Technologies (SEDG) misses by $0.32, beats on revs; guides Q2 revs below consensus
  • Sonos (SONO) misses by $0.21, misses on revs
  • Spirit Airlines (SAVE) misses by $0.24, misses on revs
  • Square (SQ) misses by $0.15, beats on revs
  • Stericycle (SRCL) misses by $0.08, misses on revs, withdraws 2020 guidance
  • Teva Pharma (TEVA) beats by $0.17, beats on revs; reaffirms FY20 EPS in-line, revs in-line
  • TiVo (TIVO) misses by $1.34, misses on revs
  • T-Mobile US (TMUS) beats by $0.07, misses on revs
  • TreeHouse Foods (THS) beats by $0.04, beats on revs; guides Q2 EPS in-line, revs in-line; reaffirms FY20 EPS guidance, revs guidance
  • Trimble (TRMB) beats by $0.08, beats on revs; no guidance for Q2 or 2020
  • Twilio (TWLO) beats by $0.17, beats on revs; guides Q2 EPS above consensus, revs above consensus
  • Valvoline (VVV) reports EPS in-line, revs in-line
  • ViacomCBS (VIAC) beats by $0.18, beats on revs
  • Vista Outdoor (VSTO) beats by $0.04, misses on revs; guides Q1 EPS below consensus, revs below consensus
  • Vonage (VG) beats by $0.04, beats on revs; guides Q2 revs above consensus; guides FY20 revs above consensus
  • Wynn Resorts (WYNN) misses by $1.85, beats on revs
  • YETI Holdings (YETI) beats by $0.06, beats on revs, withdraws FY20 outlook
  • Zynga (ZNGA) misses by $0.17, beats on revs; guides Q2 revs above consensus; guides FY20 revs above consensus
• General News:
  • President Trump will have a report on whether or not China is fulfilling its agreements under phase one trade deal next week (90 day enforcement deadline is May 15)
  • Chinese Vice Premier Liu He and USTR Robert Lighthizer will discuss progress of trade deal next week after President Trump threatened to "terminate" the agreement if China did not live up to commitment, according to Bloomberg
  • Senate Majority Leader Mitch McConnell (R-KY) says Senate will soon pass China human rights bill
  • Secretary of State Mike Pompeo in CNBC interview says US knows "for sure" that the virus originated in Wuhan, China and that China covered this up
  • President Trump believes the economic cost of coronavirus lockdowns have grown too high and it is time to move on, according to the New York Times
  • Senate Republicans are currently against additional coronavirus aid, according to the Wall Street Journal
  • Richmond Fed President Tom Barkin in CNBC interview says the Fed is not considering negative interest rates and that he expects to see a slow comeback on the consumer side because most people will still be cautious
  • Michigan Governor Gretchen Whitmer will allow manufacturing in her state to resume, according to Reuters
  • U.S. Postal Service is in "Financial Peril;" USPS executives have asked Congress for some $75 bln in grants & loans, according to The Wall Street Journal citing Government Accountability Office
  • Amazon (AMZN) mulling investment in Future Retail Ltd., according to Bloomberg
  • Brookfield Asset Mgmt (BAM) announced the launch of a $5 billion Retail Revitalization Program to aid retail businesses
  • Carnival's (CCL) Princess Cruises extends pause of global ship operations through the remaining 2020 summer season
  • Chesapeake Utilities (CPK) increases quarterly cash dividend to $0.44/share from $0.405/share
  • Costco (COST) reports April comps -4.7%
  • Eli Lilly (LLY) reports Tyvyt combined with Gemzar and platinum chemotherapy met the predefined primary endpoint in the Phase 3 ORIENT-12 study
  • Gilead Sciences (GILD) confirms regulatory approval of Veklury (remdesivir) in Japan for patients with severe COVID-19
  • MGM (MGM) has warned 63,000 employees of potential layoffs, according to the Wall Street Journal
  • Murphy Oil (MUR) relocates corporate headquarters to Houston, consolidating activities amid industry oil price collapse
  • Neiman Marcus commences voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court
  • Norwegian Cruise Line (NCLH) CEO Frank Del Rio says company has enough cash for 18 months without revenue, according to Reuters
  • Plug Power (PLUG) announces progress in hydrogen vertical integration strategy; agrees to increase term loan facility with Generate Capital
  • ViacomCBS (VIAC) announces expanded distribution agreement with Google (GOOG)

• Upgrades:
  • Ashland (ASH) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $62
  • BWX Technologies (BWXT) upgraded to Neutral from Underperform at BofA/Merrill; tgt $60
  • CAI Intl (CAI) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $21
  • General Motors (GM) upgraded to Buy from Hold at Deutsche Bank; tgt $30
  • Natera (NTRA) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $45
  • National Fuel Gas (NFG) upgraded to Outperform from Mkt Perform at Raymond James; tgt $48
  • National Fuel Gas (NFG) upgraded to Sector Outperform from Sector Perform at Scotiabank; tgt $44
  • nLIGHT (LASR) upgraded to Buy from Hold at Craig Hallum
  • Occidental Petro (OXY) upgraded to Hold from Sell at SunTrust; tgt $13
  • Sun Life (SLF) upgraded to Outperform from Sector Perform at RBC Capital Mkts
  • Tapestry (TPR) upgraded to Buy from Hold at HSBC Securities; tgt $20
• Downgrades:
  • Alnylam Pharma (ALNY) downgraded to Neutral from Overweight at JP Morgan; tgt raised to $137
  • AxoGen (AXGN) downgraded to Hold from Buy at Canaccord Genuity; tgt $12
  • Cars.com (CARS) downgraded yesterday to Hold from Buy at Craig Hallum
  • Community Healthcare Trust (CHCT) downgraded to Neutral from Buy at B. Riley FBR; tgt $40
  • Compass Minerals (CMP) downgraded to Neutral from Overweight at JP Morgan; tgt $45
  • Deciphera Pharmaceuticals (DCPH) downgraded to Neutral from Buy at Nomura; tgt lowered to $60
  • Lyft (LYFT) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $31
  • Pampa Energia S.A. (PAM) downgraded to Neutral from Buy at Citigroup
  • Ralph Lauren (RL) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $76
  • Shopify (SHOP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $700
  • Shopify (SHOP) downgraded to Neutral from Buy at DA Davidson
  • Simon Properties (SPG) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $60
  • SolarEdge Technologies (SEDG) downgraded to Hold from Buy at Canaccord Genuity; tgt $128
• Others:
  • Compugen (CGEN) initiated with an Outperform at SVB Leerink
  • GAN Limited (GAN) initiated with a Buy at B. Riley FBR; tgt $16.50
  • Leidos (LDOS) resumed with an Outperform at Credit Suisse; tgt $133
  • Magnolia Oil & Gas (MGY) initiated with a Sector Outperform at Scotiabank; tgt $7.50
  • Usio (USIO) initiated with a Buy at Ladenburg Thalmann; tgt $4.50

Upcoming Events:

• Econ data (Friday):
  • 08:30 ET: Nonfarm payrolls for April (Briefing.com consensus -21.0M; Prior -701K)
  • 08:30 ET: Nonfarm Private Payrolls for April (Briefing.com consensus -21.3M; Prior -713K)
  • 08:30 ET: Avg. Hourly Earnings for April (Briefing.com consensus +0.4%; Prior +0.4%)
  • 08:30 ET: Unemployment Rate for April (Briefing.com consensus 16.2%; Prior 4.4%)
  • 08:30 ET: Avg. Workweek for April (Briefing.com consensus 33.8; Prior 34.2)
  • 10:00 ET: Wholesale Inventories for March (Briefing.com consensus -1.0%; Prior -0.7%)
• Earnings:
  • Monday (May 4)
    • Pre-Market: PETS GATX KELYA PFGC NNN PETS PBI TSN WAB WEC WLK
    • After-Hours: ACHC ALSN AIG AWR CAR CHGG DLB FN FIVN FRPT ITRI JKHY KMT KN LEG LMNX MHK MOS RMBS O RBC REXR SHAK SWKS SYKE THC TXRH TREX VNOM VNO WWD XPO
  • Tuesday (May 5)
    • Pre-Market:  ACM AER AMCX APTV ARMK ARCC DBD D DD DEA FCAU GPI HSIC ITW INCY INGR IPGP JELD JLL TREE LGIH LPX LITE MNK MPC SBSI SYY TRI BLD TDG USCR USFD W WBT WRK
    • After-Hours: ATVI ANET BYND BLKB CAMP CAKE COHU CMP DVA DK DVN EA ICFI IOSP INGN INSP NVTA JAZZ KGC KLAC LC LPSN DOOR MTCH MATX MAT MELI MEOH MODN MYGN NVRO ONTO PINS PAA PLNT PRO PRU SFM STOR VRSK VOYA DIS WU
  • Wednesday (May 6)
    • Pre-Market:  AEIS ALXN ARES ASTE BWA BG CARS CBZ CDW FUN IMOS CNHI CGEN CVS DISCA GCP GM GEL GPC ROCK GPN KL KKR MYE NYT DNOW NS ODP OMI PZZA PSN PAG SBH STNG SMG SHOP TMHC TNC MEET VMC WD WM WEN WING WYND ZTS
    • After-Hours:  ADTN DDD AYX BNFT BIO CVNA CTL CF CHEF CXW DAR EQIX ETSY STAY FTNT FOXA FOXF GBT GDDY GRUB HR HI HUBS H IMMU INSG LVGO LYFT MX NTRA NDLS NUS NUVA PYPL PTON QTWO QGEN QDEL RP RNR RCII REZI RNG SEDG SAVE SQ TMUS REAL TWLO VVV VIAV WCN ZAYO ZIXI ZNGA
  • Thursday (May 7)
    • Pre-Market:  AAN ACIW GOLF BUD BLL BHC BCE BDX BMY CRL CCOI CTB CORE CTVA DHR EPC IT THRM GTN HAIN HL HES HLT HIMX IDCC IRM JBLU KAR KTB LAMR LAUR MUR NTCT PENN PRFT DOC PBH PWR SERV SRCL TGNA TU TEVA TW VIAC VIRT VG YETI
    • After-Hours: ADT AL ALRM APPN AAXN BECN BILL BJRI BKNG CTSH SCOR ED CCRN DBX ENV EOG FSLR FISV GLUU GPRO LOPE GH HLF ICUI IPHI PODD ITGR LHCG LSI LYV MTW VAC MCHP MNST NWSA NUAN OMCL PDCE PEB PBA PRAA PFPT PBYI QRVO QLYS RPD RDFN RBA ROKU SKYW STMP SPWR SVMK SYNA TDC TTD TRUE TCX UBER OLED UPLD ECOL YELP ZG
  • Friday (May 8)
    • Pre-Market: AXL ATH AVA BLMN BPMP BR BIP CATM REOAD CRON UFS ESNT EVTC EVOP EXC GTT HEES HSC HMSY TWNK TILE KIM LEA NJR NBL OUT PBF PNW PPL SABR SSP SEAS SR SHO SWCH TEN VTR
    • After-Hours: None of note
    • Full Earnings Calendar