>>> US Close Dow -0.95% S&P -0.77%% Nasdaq -0.87% Russell -1.05%

Closing Stock Market Summary
The stock market fell under selling pressure for a second consecutive session. The S&P 500 dropped 0.8% and the Nasdaq Composite logged a 0.9% decline. Consolidation efforts were among the driving factors in today's trade.

Renewed tariff concerns and cautious corporate guidance were also driving factors. Ford (F 10.44, +0.27, +2.7%) and Mattel (MAT 16.65, +0.45, +2.8%), which both reported above-consensus Q1 earnings, held off on providing full-year guidance. Ford warned that tariffs may cut $1.5 billion from its profits, while Mattel acknowledged the volatile macro-environment and said it plans to raise toy prices.

President Trump announced impending pharmaceutical tariffs, expected to be detailed within two weeks. This comes amid a U.S. trade deficit of $140.5 billion in March, driven by a preemptive surge in imports, including a $20.9 billion increase in imports of pharmaceutical preparations.

Treasury Secretary Bessent said in an oversight hearing on Capitol Hill that some trade deals could be announced as early as this week and that up to 90% of deals could be completed by the end of the year, but stocks didn't react much.

Investors will also closely monitor the Federal Reserve's upcoming policy announcement for guidance on inflation and economic growth risks related to the tariffs. The May FOMC decision is tomorrow at 2:00 ET.

Treasuries settled with gains. The 10-yr yield dropped four basis points to 4.31% and the 2-yr yield dropped five basis points to 3.79%.
  • Dow Jones Industrial Average: -4.0% YTD
  • S&P 500: -4.7% YTD
  • S&P Midcap 400: -6.9% YTD
  • Nasdaq Composite: -8.4% YTD
  • Russell 2000: -11.1% YTD

Reviewing today's economic data:
  • The trade deficit widened to a record $140.5 billion in March (consensus -$127.5 billion) from a downwardly revised $123.2 billion (from -$122.7 billion) in February. The widening was the result of March exports being $0.5 billion more than February exports and March imports being $17.8 billion more than February imports.
    • The key takeaway from the report is the surge in imports, which detracted sharply from Q1 GDP, and was highlighted by a $22.5 billion increase in imports of consumer goods that was led by a $20.9 billion increase in pharmaceutical preparations.

Looking ahead to Wednesday, market participants receive the following data:
  • 7:00 ET: Weekly MBA Mortgage Index (prior -4.2%)
  • 10:30 ET: Weekly crude oil inventories (prior -2.696 mln)
  • 15:00 ET: March Consumer Credit (consensus $11.0 bln; prior -$0.8 bln)

>>> Electronic Arts beats by $0.06, beats on revs; guides Q1 EPS above consensus

Electronic Arts beats by $0.06, beats on revs; guides Q1 EPS above consensus, revs in-line; guides FY26 EPS in-line, revs in-line
  • Reports Q4 (Mar) earnings of $0.98 per share, $0.06 better than the FactSet Consensus of $0.92; revenues rose 8.0% year/year to $1.8 bln vs the $1.56 bln FactSet Consensus.
  • Co issues guidance for Q1, sees EPS of $0.49-0.66 vs. $0.33 FactSet Consensus; sees Q1 revs of $1.175 billion to $1.275 billion vs. $1.27 bln FactSet Consensus.
  • Co issues in-line guidance for FY26, sees EPS of $3.02-3.79 vs. $4.46 FactSet Consensus; sees FY26 revs of $7.6-8.0 bln vs. $7.58 bln FactSet Consensus.

EPS estimates are GAAP, while revenue is net bookings.

>>> NVIDIA CEO Jensen Huang CNBC interview (113.94 +0.12)

NVIDIA CEO Jensen Huang CNBC interview

Mr. Huang said:
  • Every country will realize that AI will be part of social infrastructure.
  • The company will keep reinventing itself.
  • It will be a tremendous loss not to be able to address the China market.
  • Always ready for shifts in government policy.
  • Hyperscalers realize that they are now intelligence factories.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • JRVR -20.4%, TCMD -19.7%, ICHR -15.1%, JELD -14.7%, HSTM -14.3%, PRAA -11%, CORT -9.4%, CSTL -8.4% (also to acquire Capsulomics, d/b/a Previse), PLTR -7%, CEG -7%, FN -6.7%, MD -6.5%, HIMS -6.4%, JJSF -5.9%, OMCL -5.4%, VRTX -5.2%, NMFC -5.2%, NOVT -5.1%, ULS -5%, BRBR -4.8%, MATX -4.5%, CRH -3.9%, ENR -3.8%, PHG -3.7%, ETD -3.6%, DASH -3.6% (also acquires Deliveroo), CELH -3.5%, LSCC -2.9%, VMEO -2.9%, BAM -2.7%, CLX -2.5%, F -2.4% (suspending FY25 guidance, also names new COO), DENN -2.4%, BCC -2.1%, KRC -2.1%, KNF -2.1%, IT -2%, CBT -1.9% (also increases dividend), CIGI -1.9%, PAY -1.8%, SUI -1.8%, CTRA -1.5%, BOW -1.5%, RACE -1.4%, EVER -1.3%, KOS -1.3%, IDYA -1.3%, THS -1.2%, BEAM -1%
Other news:
  • ALDX -12.2% (reports Phase 3 Dry Eye Disease Chamber Trial of Reproxalap and Plans NDA Resubmission)
  • WGRX -4.6% (stock offering by selling shareholder)
  • BLUE -3.3% (CG receives final regulatory approvals to complete acquisition of BLUE)
  • CANG -2.5% (April 2025 production update for crypto mining business)
  • RKLB -1.5% (announces launch window)
  • CLDX -1.3% (announces presentation of data from Phase 2 study of barzolvolimab)
  • UBER -1.3% (Pony AI and Uber form strategic partnership to advance autonomous mobility)
Analyst comments:
  • LINE -2.6% (downgraded to Neutral from Buy at BofA Securities)
  • FTNT -1.8% (downgraded to Sell from Hold at DZ Bank)
  • FVR -1.8% (downgraded to Neutral from Buy at BofA Securities)
  • MARA -1.8% (downgraded to Sell from Neutral at Compass Point)
  • SG -1.5% (downgraded to Neutral from Overweight at JPMorgan)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • TTAM +24%, TDUP +17.1%, SEDG +13%, SIBN +12.7%, AMRC +11.8%, IPI +11.8%, UPWK +10.4%, NBIX +10.3%, AESI +7.9%, SPNT +7.8%, TDW +7.8%, LMND +7.2%, RRX +7%, XMTR +6.9%, TALO +6.8% (also increases buyback authorization to $200 mln), FMS +6.8%, ERO +6.3%, CLDT +5.1%, PLOW +4.1%, VVX +4%, WEAV +3.7% (also to acquire TrueLark), CE +3.7% (also to divest its Micromax portfolio; also announces price increases), STRL +3.4%, NWN +3.3%, IQV +3.1%, ZTS +3.1%, ARRY +3%, LCII +2.9%, BWXT +2.7%, NHI +2.7%, INGR +2.6%, BFAM +2.5%, DOCN +2.3%, OGS +2.2%, GPN +2.2%, DDOG +2.2%, AL +2.1%, AVNS +2.1%, NPO +1.7%, SEE +1.7%, SHLS +1.6%, EVGO +1.4%, SNDX +1.3%, BTE +1.3%, ACM +1%, MWA +1%, KBR +1%, AEP +1%
Other news:
  • WRD +12% (Uber and WRD expand partnership)
  • PONY +10.8% (Pony AI and Uber form strategic partnership to advance autonomous mobility)
  • TLSA +4.1% (results from an open-label clinical study evaluating nasal foralumab)
  • AU +3.3% (AngloGold Ashanti and Gold Fields to pause proposed Ghana JV discussions)
  • UTZ +2.6% (CEO, among others, discloses insider purchases)
  • INGR +2.6% (discloses that it is in receipt of three non-binding offers with respect to Rafhan Maize)
  • VAL +2% (to sell jackup VALARIS 247)
  • SHLS +1.6% (to collaborate on up to 12 GW of solar projects)
  • ASH +1.6% (CFO to step down)
  • KGC +1.5% (acquires 7,574,237 units of Eminent Gold)
  • ARAY +1.5% (announces first SRS/SBRT patient treatments in Austria with the CyberKnife System)
  • ZEUS +1.1% (files for $200 mln mixed securities shelf offering)
Analyst comments:
  • SCSC +1.8% (upgraded to Buy from Neutral at Northcoast)
  • STNG +1% (upgraded to Buy from Hold at Fearnley)

>>> What to look at today - 6th of May 2025

The dollar snapped two days of declines on stronger US economic data, helping ease an outsized jump in Asian currencies. A gauge of the greenback rose 0.2% after data showed activity at US service providers accelerated in April. The Taiwanese dollar gained 0.3% following its biggest surge since the 1980s on Monday. The yen was little changed while the Malaysian ringgit weakened 0.8%. China’s central bank kept its daily fix for the yuan steady as the market reopened after a holiday.  US equity-index futures dropped 0.3% after the S&P 500 halted its longest rally in about 20 years. There’s no cash trading in Treasuries during the Asian day as Japan is closed for a holiday. President Donald Trump’s aggressive trade talk has rattled markets since he took office in January, undermining the dollar’s traditional haven role in times of stress and leading investors to allocate away from US assets. Central bankers from Taiwan to Hong Kong are responding to the sharp appreciation in local currencies by intervening in the market. Activity at US service providers accelerated in April after a slumping in the prior month. This suggests the services sector is holding up even as manufacturing contracts on the heels of higher US duties. Tariffs are the cornerstone of the Trump administration’s policy to address trade imbalances, increase domestic production and bolster national security. Meanwhile, the deep inversion of a popular Taiwan-dollar derivative suggests selling pressure on the US currency has plenty of room to run. The spread between the Taiwan dollar spot rate and one-year non-deliverable forwards on the Taiwan dollar-US dollar currency pair swelled to around 3,000 pips on Monday, the widest level in at least two decades. The divergence is the latest sign of seemingly insatiable demand for Taiwan’s currency on speculation the island will reach a trade deal with the US.
Meanwhile, Hong Kong authorities spent a record amount in an attempt to defend the foreign-exchange peg. The authorities said they continued to purchase US dollars. In late US hours, Ford Motor Co. pulled its financial guidance and said auto tariffs will take a toll on profit. Palantir Technologies Inc. dropped more than 9% in late trading Monday after its results failed to live up to investors’ loftiest expectations for a company whose stock has led the S&P 500 in gains this year. Attention will soon shift to Wednesday’s Federal Reserve decision after bond traders dialed back rate-cut bets that had steadily mounted as Trump’s trade war unleashed havoc in financial markets.  US After Hours F -2.6% on earnings and suspending FY25 guidance; NBIX +13%, UPWK +11.1%, TDW +9.7%, TALO +9.2% higher on earnings; WRD +18.2% as it expands Uber partnership, PLTR -8.6%.

Nikkei +1.04% Hang Seng +0.69% CSI +0.95% Shanghai Shenzen

Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH

S&P -0.29% Nasdaq -°.52% EuroStoxx -0.19% FTSE +0.18% Dax -0.17% SMI


Macro :
- Iran Says Waiting to Hear When Next US Talks Will Happen
- Saudi Arabia’s Budget Deficit Soared Even Before Oil’s Slump
- Pakistan Says India Chokes River Flow as Fears of Conflict Rise

Keep an eye on :
- ACAST SS : Acast 1Q Net Sales Beat Estimates
- AIR FP : Airbus Delivered Around 55 Jets in April Amid Engine Shortages
- AIR FP : Air Lease Faces New One-Year Delay for Airbus A321neo Jets
- ALKB DC : ALK-Abello 1Q Revenue Beats Estimates
- AMBEA SS : Ambea 1Q Net Sales Meet Estimates
- AVOL SW : Avolta Expands at JFK Terminal 5 with New Dining, Retail, and Video Gaming Experiences
- BAMI IM : Italy Unwilling to Ease BPM Conditions in Risk to UniCredit Deal
- BRAV SS : Bravida 1Q Net Sales Miss Estimates
- COFA FP : Coface 1Q Net Income Meets Estimates
- COLOB DC : Coloplast 2Q Ebitda Meets Estimates
- CON GY : Continental 1Q Adjusted Ebit Margin Beats Estimates
- DFDS DC : DFDS Maintains FY Revenue Forecast
- ELIS FP : Elis 1Q Organic Revenue Misses Estimates
- ETL FP : Eutelsat Shares Rise After Naming New CEO: EMEA Tech Wrap
- EVT GY : Evotec 1Q Revenue EU200M Vs. EU208.7M Y/y
- F US : Ford Pulls Guidance, Sees $1.5 Billion Hit From Trump’s Tariffs
- FME GY : Fresenius Medical Care 1Q Oper Income Excl Special Items EU457M
- GEBN SW : Geberit 1Q Ebitda Meets Estimates
- GTT FP : GTT to Buy Danelec for Enterprise Value of EU194m
- HIMS US :Hims & Hers Health Shares Drop After Gross Margin Misses
- BOSS GY : Hugo Boss 1Q Ebit Beats Estimates
- IDR SM : Indra 1Q Revenue Misses Estimates
- ISS DC : ISS 1Q Sales Meet Estimates; FY Outlook Maintained
- KEMPOWR FH : Kempower Names Bhasker Kaushal CEO
- SKB GY : Koenig & Bauer 1Q Ebit Loss EU14.2M
- KTN GY : Kontron 1Q Ebitda EU48M Vs. EU35.4M Y/y
- LSCC US : Lattice Semi 1Q Adjusted EPS Matches Estimates
- LIAB SS : Lindab 1Q Net Sales Beat Estimates
- MSFT US : Microsoft Said to Be Key Holdout for OpenAI Restructuring Plan
- NOEJ GY : Norma 1Q Adjusted Ebit Misses Estimates
- NYF SS : Nyfosa 1Q Total Income Meets Estimates
- OERL SW : Oerlikon 1Q Sales CHF391M Vs. CHF404M Y/y
- PLTR US : Palantir shares fall after hours despite revenue beat and raise
- PHIA NA : Philips Cuts FY Adjusted Ebita Margin Forecast (1)
- PNL NA : PostNL 1Q Revenue Misses Estimates
- RAA GY : Rational 1Q Ebit Misses Estimates
- RBI AV : Raiffeisen 1Q Net Income Beats Estimates
- RDC GY : Redcare Pharmacy NV Maintains FY Adjusted Ebitda Margin Forecast
- RNO FP : Stellantis, Renault Bosses Want Brussels to Help Out Small Cars
- RIEN SW : Rieter to Buy Barmag for Equity Purchase Price of CHF713m
- RUI FP : Rubis 1Q Revenue EU1.70B, Rubis Maintains FY Ebitda Forecast
- RVRC SS : RVRC Holding 3Q Net Sales Miss Estimates
- G24 GY : Scout24 1Q Oper Ebitda Beats Estimates
- SGL GY : SGL Carbon to Close Site in Lavradio, Portugal, by End-2026
- SHEL LN : Shell Names Colette Hirstius Shell USA President as of Aug. 1
- STAN LN : StanChart 1Q Profit Beats, Strong Wealth Business: Street Wrap
- STLA IM : Stellantis, Renault Bosses Want Brussels to Help Out Small Cars
- SF SS : Stillfront 1Q Sales Miss Estimates
- TMV GY : TeamViewer 1Q Revenue Misses Estimates
- TEL NO : Telenor 1Q Revenue Meets Estimates
- UBSG SW : Credit Suisse to Settle US DOJ Tax Investigation, Pay $511m
- VIRI FP : Viridien Sells Sercel Marlin Offshore Logistics Ops to ONGC
- VWS DC : Vestas 1Q Ebit Before Significant Items Beats Estimates
- UCG IM : Italy Unwilling to Ease BPM Conditions in Risk to UniCredit Deal
- DG FP : Vinci Mandating Provider Buy Shares Within Limit of EU375M
- WSU GY : Washtec 1Q Ebit EU4.9M Vs. EU5.1M Y/y (1)
- XXL NO : XXL Board Says Long-Term Holders Shouldn’t Accept Frasers Offer
- ZAL GY : Zalando 1Q Adjusted Ebit Misses Estimates

>>> Europe : Brokers Upgrades & Downgrades - 6th of May 2025

>>> Up
* Berkeley Raised to Equal-Weight at Morgan Stanley
* DWS Raised to Overweight at Morgan Stanley; PT 56.10 euros
* d'Amico Intl Shipping Raised to Buy at Fearnley; PT 4.60 euros
* Hafnia Raised to Buy at Fearnley; PT 64 kroner
* Torm Raised to Buy at Fearnley; PT 146 kroner
* UBS Raised to Buy at DZ Bank; PT 32 Swiss francs

>>> Down
* Chevron Cut to Sell at DZ Bank; PT $130
* Coface Cut to Neutral at Oddo BHF; PT 17 euros
* Eiffage Cut to Neutral at Grupo Santander; PT 122 euros
* Genova Property Cut to Hold at Kepler Cheuvreux
* National Grid Cut to Neutral at Citi; PT 1,050 pence
* Nordic Semiconductor Cut to Neutral at SpareBank; PT 120 kroner
* Norwegian Cruise PT Cut to $25 from $30 at Argus
* Orsted Cut to Neutral at SpareBank; PT 300 kroner
* Porsche Cut to Equal-Weight at Barclays; PT 42.50 euros
* Redeia Cut to Neutral at BNPP Exane; PT 19 euros

>>> Initiation
* Asker Healthcare Group Rated New Buy at Citi; PT 100 kronor
* GRK Infra Rated New Buy at Nordea; PT 13.30 euros
* Just Group Rated New Outperform at BNPP Exane; PT 165 pence
* Oxford Nanopore Rated New Buy at Investec; PT 200 pence
* Tryg Rated New Neutral at JPMorgan; PT 160 kroner
* Vistry Group Rated New Equal-Weight at Morgan Stanley

>>> Call
* Goldman Sees Buy-the-Dip Opportunity in AI After Big Tech Earns
* UK Builders’ Volume Recovery Not Priced In, Morgan Stanley Says