>>> US After Hours Summary: PATH -30%, CRM -16.4%, A -13.2%, NTNX -9.9%, AEO -7.

After Hours Summary: PATH -30%, CRM -16.4%, A -13.2%, NTNX -9.9%, AEO -7.3% lower on earnings; PSTG +6.3%, AI +5.7%, OKTA +3%, HPQ +2.6% higher on earnings; SRPT +4.9% to join S&P MidCap 400

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: RRGB +12.6%, AMSC +8.6%, PSTG +6.3%, AI +5.7%, SSYS +5.2%, OKTA +3%, HPQ +2.6%, ZBH +2.1% (also authorizes new $2 bln share repurchase program)

Companies trading higher in after hours in reaction to news: SRPT +4.9% (to join S&P MidCap 400), NWN +2% (authorizes new 5 mln share or $150 mln share repurchase program), PLTR +2% (awarded $480 mln U.S. Army contract), BBIO +1.8% (data shows Acoramidis increases serum transthyretin), TXG +0.9% (launches Xenium Prime 5K Pan-Tissue and Pathways panel), AZN +0.7% (FUSN shareholders approve acquisition by AZN), RKLB +0.7% (confirms scheduled launch date for NASA's PREFIRE mission), PLNT +0.3% (to complete refinancing transaction), RTX +0.3% (awarded $381 mln U.S. Navy contract modification), BA +0.2% (making progress on permanent solution to address issue with 737 MAX anti-ice system, according to Reuters), GBDC +0.1% (shareholders approve acquisition), FF +0.1% (CEO to retire), CMPR +0.1% (authorizes new $200 mln share repurchase program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: PATH -30% (also CEO stepping down; Founder and former CEO Daniel Dines will be re-appointed CEO), CRM -16.4%, A -13.2% (also authorizes new $2 bln share repurchase program), NTNX -9.9%, AEO -7.3%, NOAH -6.5%, NCNO -6.4%, IMVT -4.8% (also provides clinical update), CPRI -2.6%, CNC -1.4%, CRDO -1.1%, UHAL -0.2%

Companies trading lower in after hours in reaction to news: BRKR -5% (6 mln share offering), DOMO -4.7% (wins deal with Lencore), SITC -2.3% (stock offering by selling shareholders), NVDA -0.9% (supply for H100 continues to improve; still constrained on H200), POST -0.8% (reports avian influenza incidents at two third-party facilities; affirms EBITDA guidance for FY24), LDOS -0.6% (awarded $738 mln U.S. Air Force contract), TPC -0.4% (JV wins contract), AVD -0.1% (COO to retire)

Reuters : Boeing says it's making progress on 737 MAX anti-ice engine issue

Boeing says it's making progress on 737 MAX anti-ice engine issue

WASHINGTON, May 29 (Reuters) - Boeing (BA.N), opens new tab said Wednesday it is making progress on developing a permanent solution to address an issue with the 737 MAX anti-ice system that can overheat and could cause an engine failure.

The planemaker in January withdrew a request it filed with the Federal Aviation Administration last year seeking an exemption from a safety standard for its forthcoming 737 MAX 7 over the issue, which pushed potential certification into 2025.

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>>> US Close Dow -1.06% S&P -0.74% Nasdaq -0.56% Russell -1.48%

Closing Stock Market Summary
Today's trade featured a negative bias. Broad selling activity had the major indices in negative territory through the entire session. Ultimately, the indices settled near their lows of the session after selling increased in some heavily-weighted names that had been trading higher, acting as a limiting factor for index-level losses.

Amazon.com (AMZN 182.02, -0.13, -0.1%), Microsoft (MSFT 429.17, -1.15, -0.3%), and Alphabet (GOOG 177.40, -0.62, -0.4%) were among the standouts in that respect. AMZN had been up as much as 1.1% today, MSFT was up 0.11% at its high, and GOOG showed a 0.14% gain at its best level.

The broad retreat today left all 11 S&P 500 sectors with losses. The energy sector was among the top laggards, dropping 1.8%, amid falling commodity prices. WTI crude oil futures fell 0.8% to $79.25/bbl and natural gas futures slid 5.7% to $2.66/mmbtu.

Sector component Marathon Oil (MRO 28.68, +2.23, +8.4%) went against the grain, jumping more than 8% after news that ConocoPhillips (COP 115.25, -3.71, -3.1%) will acquire MRO in an all-stock transaction.

The industrial sector was the next worst performer, dropping 1.4%. Weak airline components weighed on the sector after American Airlines (AAL 11.62, -1.82, -13.5%) lowered its Q2 EPS below consensus and lowered its adjusted operating margin and TRASM guidance.

The overall downside bias was driven by some normal consolidation activity after a big run recently. With today's losses, the S&P 500 is still 4.6% higher this month and the Nasdaq Composite is 8.1% higher since the start of May.

The price action in Treasuries also contributed to the downside bias in equities. The 10-yr note yield rose eight basis points to 4.62% and the 2-yr note yield settled unchanged at 4.98%. Yields were already moving higher, but today's $44 billion 7-yr Treasury note sale, which met weak demand following this week's poor slate of note offerings, sparked increased selling action.

Today's economic data was limited to the weekly MBA Mortgage Applications Index, which declined 5.7% with refinance applications plunging 14% and purchase applications dropping 1%. Market participants also received the Fed's latest Beige Book, which said national economic activity continued to expand from early April to mid-May, but the release didn't garner outsized reactions from bonds or equities.
  • Nasdaq Composite: +12.7% YTD
  • S&P 500:+10.4% YTD
  • S&P Midcap 400: +5.0% YTD
  • Dow Jones Industrial Average: +2.0% YTD
  • Russell 2000: +0.5% YTD

Looking ahead, Thursday's economic calendar features:
  • 8:30 ET: Q1 GDP -- second estimate (consensus 1.3%; prior 1.6%), Q1 GDP Deflator -- second estimate (consensus 3.1%; prior 3.1%), Weekly Initial Claims (consensus 219,000; prior 215,000), Continuing Claims (prior 1.794 mln), advance April goods trade balance (prior -$91.8 bln), advance April Retail Inventories (prior 0.3%), and advance April Wholesale Inventories (prior -0.4%)
  • 10:00 ET: April Pending Home Sales (consensus -0.5%; prior 3.4%)
  • 10:30 ET: Weekly natural gas inventories (prior +78 bcf)
  • 11:00 ET: Weekly crude oil inventories (prior +1.83 mln)

TechCrunch : Mistral releases Codestral, its first generative AI model for code

Mistral releases Codestral, its first generative AI model for code

Mistral, the French AI startup backed by Microsoft and valued at $6 billion, has released its first generative AI model for coding, dubbed Codestral.

Codestral, like other code-generating models, is designed to help developers write and interact with code. It was trained on over 80 programming languages, including Python, Java, C++ and JavaScript, explains Mistral in a blog post. Codestral can complete coding functions, write tests and “fill in” partial code, as well as answer questions about a codebase in English.

Mistral describes the model as “open,” but that’s up for debate. The startup’s license prohibits the use of Codestral and its outputs for any commercial activities. There’s a carve-out for “development,” but even that has caveats: the license goes on to explicitly ban “any internal usage by employees in the context of the company’s business activities.”

The reason could be that Codestral was trained partly on copyrighted content. Mistral didn’t confirm or deny this in the blog post, but it wouldn’t be surprising; there’s evidence that the startup’s previous training data sets contained copyrighted data.

Codestral might not be worth the trouble, in any case. At 22 billion parameters, the model requires a beefy PC in order to run. (Parameters essentially define the skill of an AI model on a problem, like analyzing and generating text.) And while it beats the competition according to some benchmarks (which, as we know, are unreliable), it’s hardly a blowout.

While impractical for most developers and incremental in terms of performance improvements, Codestral is sure to fuel the debate over the wisdom of relying on code-generating models as programming assistants.

Developers are certainly embracing generative AI tools for at least some coding tasks. In a Stack Overflow poll from June 2023, 44% of developers said that they use AI tools in their development process now while 26% plan to soon. Yet these tools have obvious flaws.

An analysis of more than 150 million lines of code committed to project repos over the past several years by GitClear found that generative AI dev tools are resulting in more mistaken code being pushed to codebases. Elsewhere, security researchers have warned that such tools can amplify existing bugs and security issues in software projects; over half of the answers OpenAI’s ChatGPT gives to programming questions are wrong, according to a study from Purdue.

That won’t stop companies like Mistral and others from attempting to monetize (and gain mindshare with) their models. This morning, Mistral launched a hosted version of Codestral on its Le Chat conversational AI platform as well as its paid API. Mistral says it’s also worked to build Codestral into app frameworks and development environments like LlamaIndex, LangChain, Continue.dev and Tabnine.

>>> HP Inc. beats by $0.01, beats on revs; guides Q3 EPS in-line; guides FY24 EP

HP Inc. beats by $0.01, beats on revs; guides Q3 EPS in-line; guides FY24 EPS in-line (32.80 -0.34)
  • Reports Q2 (Apr) earnings of $0.82 per share, excluding non-recurring items, $0.01 better than the FactSet Consensus of $0.81; revenues fell 0.8% year/year to $12.8 bln vs the $12.61 bln FactSet Consensus.
    • Personal Systems net revenue was $8.4 billion, up 3% year over year (up 2% in constant currency) with a 6.0% operating margin. Consumer PS net revenue was down 3% and Commercial PS net revenue was up 6%. Total units were up 7% with Consumer PS units down 1% and Commercial PS units up 12%.
    • Printing net revenue was $4.4 billion, down 8% year over year (down 7% in constant currency) with a 19.0% operating margin. Consumer Printing net revenue was down 16% and Commercial Printing net revenue was down 12%. Supplies net revenue was down 5% (down 4% in constant currency). Total hardware units were down 17%, with Consumer Printing units down 17% and Commercial Printing units down 17%.
  • Co issues in-line guidance for Q3 (Jul), sees EPS of $0.78-0.92, excluding non-recurring items, vs. $0.85 FactSet Consensus.
  • Co issues in-line guidance for FY24 (Oct), sees EPS of $3.30-3.60, excluding non-recurring items, vs. $3.42 FactSet Consensus.