Early Look

Wednesday, June 4, 2025

U.S. futures are slightly higher, holding near overnight highs despite some negative trade developments overnight. Trump said that China’s Xi is very tough to make a deal with and signed an order to raise steel and aluminum tariffs to 50% from 25%. Last night on Truth Social, President Trump said, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” S&P futures (Spuz) are up 0.17% at 5,991 (overnight high 5,996.75), coming off back-to-back daily gains of over +0.5%. Tech stocks are getting a little boost overnight as shares of GWRE, DELL, YEXT and LITE rise on results and guidance, though cybersecurity giant CRWD shares fall after a softer rev guidance outlook. In Asian markets, The Nikkei Index jumped 300 points to 37,747, the Shanghai Index gained 14 points to 3,376, and the Hang Seng Index advanced 141 points to 23,654. In Europe, the German DAX is up 144 points to 24,235, while the FTSE 100 is up 17 points to 8,804. Chip stocks (SOX) look to extend gains again today as the SOX approaches the 5,000 level ahead of AVGO earnings tomorrow night. In research AAPL was downgraded ahead of its Worldwide Developers Conference next week. Data scheduled for Wednesday includes ADP National Employment data for May as well as S&P Global and ISM‘s services sector activity readings for May. Ahead of a U.S. central bank meeting next week, monthly jobs data due on Friday will likely offer more signs on how trade uncertainty is affecting the U.S. economy. Gold and oil prices are flat. Euro zone business activity barely expanded in May as the HCOB Eurozone Composite Purchasing Managers’ Index, compiled by S&P Global, fell to 50.2 in May from 50.4 in April, higher than a preliminary estimate of 49.5 but its weakest since February.

• The Dow Jones Industrial Average rose 214.16 points, or 0.51%, to 42,519.64
• The Nasdaq Composite jumped 156.34 points, or 0.81%, to 19,398.96
• The Russell 2000 Index advanced 32.82 points, or 1.59% to 2,102.98

• 8:15 AM ET ADP Private Payrolls for May…est. +110K
• 9:45 AM ET S&P Global Composite PMI, May-final…prior 52.1
• 9:45 AM ET S&P Global Services PMI, May-final…prior 52.3
• 10:00 AM ET ISM Non-Manufacturing PMI for May…est. 52.0
• 10:30 AM ET                Weekly DOE Inventory Data

• Earnings After the Close: AGX BARK CHPT DSGX FIVE GEF MDB PL PVH TLYS VRNT

• Deutsche Bank 16th Annual Global Industrials, Materials & Building Products Conference, 6/4-6/5, in New York
• Jefferies Global Healthcare Conference in New York City
• NAREIT REITweek: Investor Conference
• RBC Capital Global Energy, Power & Infrastructure Conference, 6/3-6/4, in New York
• William Blair Growth Stock Conference
• China Caixin Services PMI for May

• Dollar Tree (DLTR) Q1 adj EPS $1.26 vs. est. $1.21 and revs $4.6B vs. est. $4.53B; Q1 same-store net sales: Dollar Tree Same-Store Net Sales +5.4% and sees Q2 SSS trending toward higher end of 3%-5% range; raises FY25 adjusted EPS view to $5.15-$5.65 from $5.00-$5.50 (est. $5.21) and said continues to expect its full-year fiscal 2025 net sales from continuing operations to be in the range of $18.5B-$19.1B.
• Sportsman’s Warehouse (SPWH) Q1 adjusted EPS loss (-$0.41) vs. est. loss (-$0.47); Q1 revs rose 2% y/y to $249.1M above consensus $238.25M; delivered first positive same store sales comp in nearly four years, rising +2%; backs FY25 revenue view down 1% to up 3.5%, reaffirms Fy25 adjusted EBITDA view $33M-$45M.
• Tesla (TSLA) deliveries of China-made Model 3 and Model Y vehicles, including both domestic sales and exports to Europe and other markets, fell 15% in May from a year earlier to 61,662 vehicles, after a 6% fall in April, data from the China Passenger Car Association showed. Its China-made EV deliveries were up 5.5% from April.
• Thor Industries (THO) Q3 EPS $2.53 vs. est. consensus $1.80; Q3 revs $2.89B vs. est. $2.61B as Q3 results exceeded our expectations on both the top and bottom lines; sees FY25 EPS $3.30-$4.00 vs. consensus $3.47 and sees FY25 revenue $9.0B-$9.5B, vs. consensus $9.23B.

• Oneok (OKE) announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC from NGP XI Midstream Holdings, L.L.C. for $940M, consisting of $530M in cash and $410M in Oneok common stock.

• HealthEquity (HQY) Q1 adj EPS $0.97 vs est. $0.82, adj EBITDA $140.2Mm vs est. $123.5Mm on revs $330.844Mm vs est. $322.5Mm; guides FY revs $1.285-1.305B vs est. $1.302B and adj EPS $3.61-3.78 vs est. $3.63.
• Merus (MRUS) 5.27M share Spot Secondary priced at $57.00.
• Trevi Therapeutics (TRVI) 17.4M share Secondary priced at $5.75

• Crowdstrike (CRWD) Q1 adj EPS $0.73 vs est. $0.65 on revs $1.103B vs est. $1.104B; guides Q2 revs $1.145-1.152B below the consensus est. $1.16B and adj EPS $0.82-0.84 vs est. $0.81; sees FY revs $4.74-4.81B vs est. $4.774B and adj EPS $3.44-3.56 vs est. $3.43; announces share repurchase authorization of up to $1B.
• Asana Software (ASAN) Q1 EPS $0.05 vs est. $0.02; Q1 revs $187.3M vs. est. $185.4M; number of Core customers, or customers spending $5,000 or more on an annualized basis, grew to 24,297 in Q1, an increase of 10% y/y; customers spending $100,000 or more on an annualized basis in Q1 grew to 728, +20% y/y; sees Q2 EPS $0.04-$0.05 on revs $192M-$194M vs. est. consensus $0.04/$192.2M.
• Couchbase (BASE) Q1 adj op Inc ($4.2)Mm vs est. ($4.8)Mm on revs $56.5Mm vs est. $55.5Mm; guides Q2 revs $54.4-55.2Mm vs est. $56.47Mm, ARR $255.8-258.8Mm and adj op Inc ($5.1)Mm – ($4.1)Mm vs est. ($3.15)Mm; sees FY revs $228.3-232.3Mm vs est. $230.17Mm, ARR $279.3-284.3Mm and adj op Inc ($15.5)Mm – ($10.5)Mm vs est. ($10.82)Mm.
• GlobalFoundries (GFS) plans to invest around 1.1B euros in German city of Dresden, Handelsblatt daily reports
• Guidewire Software (GWRE) Q3 EPS $0.88 vs. est. $0.47; Q3 revs $293.5M vs. est. $286.4M; Q3 subscription and support revenue was $181.8M, rising 32%; license revenue was $57.2M, rising 2%; and services revenue was $54.5M, rising 17%, each as compared to the same quarter in fiscal year 2024; raises FY25 revenue view to $1.178-$1.186B, from $1.164B-$1.174B (est. $1.17B).
• HP Enterprises (HPE) Q2 EPS $0.38 vs. est. $0.33; Q2 revs $7.63B vs. est. $7.50B; Q2 server revenue was $4.1B, up 6% y/y in actual dollars and up 7% in constant currency; Q2 operating profit margin 5.9%, compared to 11.0% y/y; Q2 Intelligent Edge revenue was $1.2 billion, up 7% y/y; and Hybrid Cloud revenue was $1.5 billion, up 13% y/y in actual dollars and 15% in constant currency; sees Q3 EPS $0.40-$0.45 vs. est. $0.42 and revs $8.2B-$8.5B vs. consensus $8.23B.
• Lumentum (LITE) raises Q4 EPS view to $0.78-$0.85 from prior $0.70-$0.80 and consensus $0.75; raises Q4 revenue view to $465M-$475M from $440M-$470M (est. $457.5M) and boosts its Q4 operating margin view to 14%-15% from 13%-14%.
• STMicroelectronics (STM) shares rise overnight following positive comments from biggest U.S. peer, ON Semiconductor (ON), about a potential recovery in the industrial and automotive sectors in the 2H25.
• Yext Inc. (YEXT) Q1 adj EPS $0.13 vs est. $0.11, adj EBITDA $24.7Mm vs est. $21.79Mm on revs $109.5Mm vs est. $107.6Mm; raises FY adj EBITDA guide to $103-105Mm vs est. $101.27Mm.
• D-Wave Quantum (QBTS) files $400M mixed securities shelf