TheChek News Flow

After Hours Summary: EA / DIOD +8%, MTCH +7%, QRVO +6% are higher, while INGN -26%, TWOU -17%, DDD / SUPN / NVTA -15%, TRIP -6% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: MTSI +8.6%, EA +8.3%, DIOD +8%, AVLR +7.4%, MTCH +7.2%, OUT +6.3%, SGMS +6%, QRVO +5.9%, JCOM +4.7%, EVRI +4.5%, KGC +4.2%, PAA +3.4%, CRZO +3.3%, NCR +3%, PZZA +2.7%, PEN +2.6%, TWO +2.3%, FANG +2.2%

Companies trading higher in after hours in reaction to news: CYH +6% (Chairman/CEO disclosed the purchase of nearly 1 mln shares worth more than $3 mln), TXMD +4.2% (after closing more than 16% lower on the day), COTY +2.4% (ahead of earnings), TTWO +2.2% / ATVI +0.7% (EA sympathy), ZM +1.5% (authorization under the US Federal Risk and Authorization Management Program has been approved, with the sponsorship of the US Department of Homeland Security), BYND +1.4% (continued momentum), ALSN +0.4% (to repurchase 4,977,043 shares of common stock from Ashe Capital Management for aggregate consideration of $232.4 mln), DWDP +0.2% (Board approves separation of Agriculture Division, which will become Corteva Agriscience)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: INGN -26.2%, TWOU -16.7%, DDD -15.3%, SUPN -14.8%, NVTA -14.7%, LTHM -12.7%, PBPB -12.5% (light volume), AERI -8.5%, ACLS -6.6% (light volume), FARM -6.6% (ticking lower; also announces departure of CEO Michael Keown; appoints Christopher P. Mottern as Interim CEO, effective immediately), HCLP -6.4%, TRIP -6.2%, OPK -5.5%, ZAGG -5.2%, WU -3.4%, HUBS -3.3%, WING -2.6%, S -2.4%, PEGA -2.2%, LYFT -1.7%

Companies trading lower in after hours in reaction to news: RGNX -2.5% (ticking lower after reporting additional interim Phase 1/2a trial update for RGX-314 for the treatment of wet age-related macular degeneration)

 Stock Market Summary

U.S. stocks sold off on Tuesday, as increased uncertainty about a U.S.-China trade resolution contributed to a broad-based effort to de-risk. The 1.7% drop in the S&P 500, which was down as much as 2.4% at one point and flirting with its 50-day moving average (2856.44), sent the benchmark index below the 2900 level on a closing basis for the first time in nearly a month.

The Dow Jones Industrial Average dropped 1.8%, the Nasdaq Composite dropped 2.0%, and the Russell 2000 dropped 2.0%.

The stock market began the day noticeably lower after USTR Robert Lighthizer accused China of reneging on its prior commitments, and said the higher 25% tariff rate on $200 billion of Chinese imports will go into effect Friday. China is prepared to impose retaliatory tariffs on U.S. imports, but it will still send Vice Premier Liu He to Washington to continue trade talks later this week.

Investors yesterday had largely shrugged off President Trump's threat to raise the tariff rate to 25% from 10% on $200 billion of Chinese imports starting Friday. Unlike yesterday, though, there was little effort to buy the dip, which helped exacerbate selling interest throughout the day.

All 11 S&P 500 sectors finished lower as investors also sought to de-risk after a strong start to the year with an understanding that a meaningful trade resolution may take longer than expected. Nine of the 11 sectors finished with losses of at least 1.0%.

The trade angst also contributed to general growth concerns, which were manifested in lower oil prices ($61.24/bbl, -$1.01, -1.6%) and relative weakness in the cyclical sectors. The trade-sensitive S&P 500 information technology (-2.1%), industrials (-2.0%), and materials (-1.8%) sectors were among Tuesday's worst-performers.

Trading was largely defensive, evidenced by a flight-to-safety in U.S. Treasuries, firmness in the U.S. dollar, and a huge spike in the CBOE Volatility Index (VIX 20.94, +5.50, +35.1%). The move in the VIX reflected interest in hedging against further downside.

The 2-yr yield declined three basis points to 2.28%, and the 10-yr yield declined five basis points to 2.45%. The U.S. Dollar Index increased 0.1% to 97.60.

Reviewing Tuesday's economic data, which included the JOLTS - Job Openings and Labor Turnover Survey for March and the Consumer Credit report for March:

• The JOLTS report showed that job openings increased to 7.488 million in March from a revised 7.142 million (from 7.087 million) in February.
• Total outstanding consumer credit increased by $10.3 billion in March (consensus $17.0 billion) after increasing an upwardly revised $15.4 billion (from $15.2 billion) in February.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index on Wednesday. China's trade balance report will also be released overnight, which will play directly into the market's mindset about where the trade negotiations might be headed.

• Nasdaq Composite +20.0% YTD
• Russell 2000 +17.3% YTD
• S&P 500 +15.1% YTD
• Dow Jones Industrial Average +11.3% YTD