Wake Up Call

Hello ! Stock futures trimmed losses as traders weighed the latest readings on the US economy and labor market for clues on the outlook for Federal Reserve policy.
Two-year bonds extended gains after the GDP price index came in slightly lower on a second reading. Jobless claims were in line with expectations again. The move in bonds isn’t a big one, but it doesn’t look like we’ll be hitting a 5% yield today.
DATAS (In detail) :
* US Continued Jobless Claims w/e 1.791M vs. Exp. 1.797M (Prev. 1.794M, Rev. 1.787M)
* US Initial Jobless Claims w/e 219.0k vs. Exp. 218.0k (Prev. 215.0k, Rev. 216k)
* US Core PCE Prices Prelim* (Q1) 3.6% vs. Exp. 3.7% (Prev. 3.7%)
* US GDP 2nd Estimate* (Q1) 1.3% vs. Exp. 1.3% (Prev. 1.6%)
* US Adv Goods Trade Balance * (Apr) -99.41B (Prev. -91.54B, Rev. -92.29B)
* US GDP Deflator Prelim* (Q1) 3.1% vs. Exp. 3.1% (Prev. 3.1%)
* US Wholesale Inventories Adv * (Apr) 0.2% (Prev. -0.4%)
* US Retail Inventories Ex-Auto Adv * (Apr) 0.3% (Prev. -0.2%, Rev. -0.4%)
On the corporate side, shares of software companies are lower in premarket trading, after SALESFORCE gave a weak outlook, spurring worries over a slowdown in the sector more broadly and the firm’s relevance amid the advancement of AI.

Wall Street Movers

AGILENT TECHNOLOGIES -13% cut FY adj EPS $5.15 to $5.25 ($5.50 exp). Rev $6.42bn to $6.50bn ($6.76bn exp). 2Q adj EPS $1.22 ($1.19 exp). Net rev $1.57bn ($1.58bn exp). Board authorizes new $2bn share buyback program w/ $750m beginning by the end of FY.
AMERICAN EAGLE -8% 1Q net rev $1.14bn ($1.15bn exp) but Morgan Stanley flags the underperformance of the firm’s Aerie brand as a major negative. Number of AE Brand stores is 846 (849 exp).
BEST BUY +6% 1Q comparable sales -6.1% (-4.99% exp) due to less than exp sales in the US. Adj EPS $1.20 ($1.08 exp). Sees FY25 rev $41.3bn to $42.6bn ($42bn exp). Co. incurred $15m of restructuring charges in Q1 FY25, primarily related to employee termination benefits associated with an enterprise-wide restructuring initiative that commenced in Q4 FY24.
C3.AI +11% boosts FY25 rev $370.0m to $395.0m ($367.5m exp) supported by demand for AI features. 4Q Subscription rev $79.9m ($72.1m exp).
DISNEY flat Nelson Peltz has sold his entire stake in Walt Disney, Trian controlled Disney shares worth more than $3.5bn.
DOLLAR GENERAL +3.20% maintains FY25 EPS 4cst $6.80 to $7.55 ($7.26 exp). 1Q EPS $1.65 ($1.57 exp). Net sales $9.91bn ($9.88bn exp). Declares quarterly cash Dividend of $0.59/shr. Results were driven by strong customer traffic growth and market share gains during the quarter.
FOOTLOCKER +12% 1Q Adj EPS 22c (12c exp). Comparable sales -1.8% (-1.93% exp). Maintains FY25 guidance w/ capex $345m ($329.8m exp).
HP +4% 2Q net rev $12.80bn ($12.6bn exp) as the market recovers and new AI PCs are introduced. Adj EPS 82c (81c exp). 3Q adj EPS 4cst 78c to 92c (85c exp).
KOHL’S -23% 1Q comparable sales -4.4% (-1.74% exp). Adj loss per share 24c (adj EPS 6.7c exp). Cut FY25 adj EPS $1.25 to $1.85 ($2.39 exp) as demand for apparel and home goods remained weak.
MODERNA +2.9% as The Financial Times reported that the US government is nearing an agreement to bankroll a late-stage trial of the biotech firm’s mRNA pandemic bird flu vaccine.
SALESFORCE -15% cut 2Q rev 4cst $9.2bn to $9.25bn ($9.35bn exp) & Adj EPS 4cst $2.34 to $2.36 ($2.40 exp). 1Q adj EPS $2.44 ($2.38 exp). Rev $9.13bn ($9.15bn exp) >> ORCL -2.6%, NOW -1.2%, MDB -1.6%, ADBE -1.4%
TESLA +1.2% is also considering selling the full self-driving software as a monthly subscription, Reuters reports.

At A Glance

AMAZON said the FAA has given Prime Air additional permissions to operate drones beyond visual line of sight.
AMD, Broadcom, Cisco, Google, HPE, Intel, Meta, Microsoft form an ultra accelerator link promoter group to drive data centre AI connectivity
BOEING is due to tell federal regulators on Thursday how it plans to resolve safety problems that plague its production processes and pose potential risks for travelers.
BURLINGTON boosts FY25 adj EPS 4cst $7.35 to $7.75, saw $7 to $7.60 ($7.40 exp). 1Q rev $2.36bn ($2.35bn exp).
NUTANIX 4Q rev 4cst $530m to $540m ($546.1m exp). 3Q adj EPS 28c (17c exp). Billings $557.3m ($565m exp). Raises FY annual contract value billings $1.12bn to $1.13bn ($1.1bn exp).
OKTA raises FY25 adj EPS $2.35 to $2.40, saw $2.24 to $2.29 ($2.29 exp). 1Q adj EPS $2.35 to $2.40 ($2.29 exp). Rev $617m ($604.3m exp).
ROYAL BANK OF CANADA Q2 beat est on strong performance from the company’s capital-markets business and lower-than-exp provisions for potential loan losses.
PALANTIR +2.9% after the US Army awarded the company a $480m contract to the company for work on a project called the Maven Smart System through 2029.
PURE STORAGE 1Q adj EPS 32c (22c exp). Rev $693.5m ($685.6m exp). 2Q rev $755m ($750.4m exp). Co. spurring a round of price target hikes.
STRATASYS reported 1Q results and affirmed its forecast. Analysts are mostly positive on the report, with Cantor seeing pent-up demand fueling an acceleration in growth.
UIPATH sees FY25 rev $1.405bn to $1.41bn ($1.56bn exp). 2Q rev $300m to $305m ($342.4m exp). Co. announces CEO Rob Enslin departure. TD describes the news as a “notable 1-2 punch” and slashes its price target by almost 40%.
UNITED HEALTH Senator Ron Wyden called for regulators to investigate Co. over what he described as “negligent” security that led to one of the largest hacks in the history of US health care.

Broker Moves

UPGRADES

CORNING upgraded to overweight from neutral at JPMorgan
DATADOG upgraded to buy from neutral at BofA
MATTRESS & FURNITURE Raymond James noted a “solid uptick” in sales over the Memorial Day weekend compared to trends earlier in 2Q >> Watch LEG, W..
PAYPAL upgraded to buy from neutral at Mizuho Securities

DOWNGRADES

AGILENT PT Cut to $135 from $150 at Leerink
APPLE Cut to $72 from $80 at Evercore ISI
FIRST SOLAR Cut at Mizuho Securities to neutral from buy
SALESFORCE PT Cut to $285 from $330 at TD Cowen

INITIATIONS

ABBOTT Rated New Buy at Goldman
BOSTON SCIENTIFIC Rated New Buy at Goldman

Key Events

Thursday
15:00 US Pending Home Sales MoM
17:05 Fed's Williams Speaks at Economic Club of New York
22:00 Fed's Logan Speaks in Moderated Q&A

Game Of Corporate Actions

DIV EX DATE

Today : Constellation Energy ($0.3525); Electronic Arts ($0.19); Everest ($2); Loews ($0.0625); S&P Global ($0.91)
Tomorrow : Goldman Sachs ($2.75); Home Depot ($2.25); Qualcomm ($0.85); Valero Energy ($1.07); Xylem ($0.36)

EARNINGS

Today aft mkt : Costco Wholesale; Cooper; NetApp; Ulta Beauty