Early Look

Thursday, June 5, 2025

After one of the narrowest intraday trading ranges since February on Wednesday, U.S. futures are again little changed, up slightly and again in a tight 24-point trading range overnight (5,972.25 low to 5,996.50 high) as S&P futures remain less than 3% from all-time highs. Outside of any headlines pertaining to trade/tariffs, market participants are watching for fresh catalysts after this week’s stock rally lost steam following weaker ADP private sector hiring growth and ISM services sector data. Both data points disappointed Wall Street by a wide margin but major averages held strong ahead of Friday’s more important non-farm payroll report. In Asian markets, The Nikkei Index fell -192 points to 37,554, the Shanghai Index rose 7 points to 3,384, and the Hang Seng Index gained 252 points to 23,906. In Europe, the German DAX is up 100 points to 24,376, while the FTSE 100 is up 25 points to 8,827. Earnings out overnight are lifting shares of MDB, FIVE, VRNT and PL (while retailer PVH slides on its outlook) with results from AI chip giant AVGO tonight after the close. In macro news, U.S. President Donald Trump signed a proclamation on Wednesday banning the citizens of 12 countries from entering the United States, saying the move was needed to protect against “foreign terrorists” and other security threats. Later this morning, the ECB policy meeting is expected to produce another rate cut following a strong of slowing inflation readings.

• The Dow Jones Industrial Average fell -91.90 points, or 0.22%, to 42,427.74
• The Nasdaq Composite gained 61.53 points, or 0.32%, to 19,460.49
• The Russell 2000 Index declined -4.50 points, or 0.21% to 2,098.48

• 8:30 AM ET                  Weekly Jobless Claims…est. 235K
• 8:30 AM ET                  Continuing Claims…est. 1.91M
• 8:30 AM ET                  Nonfarm productivity for Q1…est. (-0.8%)
• 8:30 AM ET                  Unit Labor Costs for Q1…est. +5.7%
• 10:30 AM ET                Weekly EIA Natural Gas Inventory Data

• Earnings After the Close: AVGO AVO BBCP BRZE CURV DOCU IOT LULU MTN NX ODC RBRK TTAN WOOF ZUMZ

• Deutsche Bank 16th Annual Global Industrials, Materials & Building Products Conference, 6/4-6/5, in New York
• Piper Global Exchange & Trading Conference, 6/5, in Lotte New York Palace

• Euro area April Producer Prices rise 0.7% y/y below consensus est. +1.1% and Euro area April producer prices fall (-2.2%) m/m vs. est. (-2.1%).
• China’s services activity expanded at a slightly faster pace in May, with new orders growing more quickly than in April, though new export orders declined due to uncertainty stemming from U.S. tariffs. The Caixin/S&P Global services purchasing managers’ index (PMI), rose to 51.1 in May from 50.7, remaining above the 50-mark that separates expansion from contraction.
• German factory orders increased 0.6% in April from the previous month, while economists had predicted a 1.5% decline. Without large-scale orders, they were still 0.3% higher.
• President Trump announces full travel ban on people from 12 countries, partial restriction on 7 countries to go into effect Monday. “I have determined to fully restrict and limit the entry of nationals of the following 12 countries: Afghanistan, Burma, Chad, Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan, and Yemen,” the President wrote in the order.

• Bark Inc. (BARK) Q4 adj EBITDA $5.2Mm vs est. $3.032Mm on revs $115.4Mm vs est. $126.78Mm; sees Q1 revs $99-101Mm vs est. $127.83Mm and adj EBITDA ($1.0)Mm – $1.0Mm vs est. ($0.55)Mm.
• ChargePoint (CHPT) Q1 EPS loss (-$0.12) vs. est. loss (-$0.06); Q1 revs $97.6M vs. est. $100.6M; said sees Q2 revenue $90M-$100M, below consensus $108.4M while saying remains committed to its plans of achieving positive non-GAAP adjusted EBITDA during a quarter in fiscal year 2026.
• Costco (COST) reports net sales of $20.97B for May; said comparable sales for May in the U.S. 4.1%, Canada 3.3%, and international 6.6%.
• Five Below (FIVE) Q1 adj EPS $0.86 vs est. $0.82 on revs $970.5Mm vs est. $966.49Mm; guides Q2 revs $975-995Mm vs est. $958.31Mm and adj EPS $0.50-0.62 vs est. $0.56; sees FY revs $4.33-4.42B vs est. $4.366B and adj EPS $4.25-4.72 vs est. $4.76; said CFO Chipman to step down for personal reasons.
• Kimberly-Clark (KMB) is close to selling its Kleenex and tissue businesses outside North America for approximately $3.5B to Brazilian pulp maker Suzano as per the WSJ.
• Procter & Gamble (PG) plans to cut 7,000 jobs over the next two years as the maker of Gillette razors and Tide detergent looks to streamline its business.
• PVH Corp. (PVH) Q1 adj EPS $2.30 vs. est. $2.25; Q1 revs rose 2% y/y to $1.984B vs. est. $1.93B; guides Q2 adjusted EPS $1.85-$2.00 vs. consensus $2.46 and sees Q2 revenue growth low single digits; cuts FY25 EPS view to $10.75-$11 from $12.40-$12.75 (est. $12.52) while backs FY25 revenue growth view flat to up slightly.
• Tilly’s Inc. (TLYS) Q1 EPS loss (-$0.74) vs. est. (-$0.66); Q1 revs $107.6M vs. est. $108.2M; Q1 total comparable net sales, including both physical stores and e-commerce decreased by (-7.0%) relative to the comparable 13-week period ended May 4, 2024; sees 2Q net sales in range of approximately $150M to $158M, an estimated comparable net sales range decrease of 5% to flat to comparable period last year.

• Babcock & Wilcox (BW) announced an agreement to sell its diamond power international business to Andritz for $177M; said sale is expected to close in 30 days, 400 employees to transfer.
• Greif Inc. (GEF) Q2 EPS $1.19 vs est. $1.11, adj EBITDA $213.9Mm vs est. $196.97Mm on revs $1.386B vs est. $1.414B; guides FY low end adj EBITDA $725Mm vs est. $713.59Mm.
• Planet Labs (PL) Q1 EPS ($0.04) vs est. ($0.04), adj EBITDA $1.2Mm vs est. ($2.483Mm) on revs $66.265Mm vs est. $62.3Mm, adj gr mgn 59%; guides Q2 revs $65-67Mm vs est. $65.5Mm, adj gr mgn 56-57% and adj EBITDA ($4Mm) – ($2Mm) vs est. ($2.288Mm).
• XPO (XPO) reported certain preliminary LTL segment operating metrics for May 2025. LTL tonnage per day decreased 5.7%, as compared with May 2024, attributable to a year-over-year decrease of 5.0% in shipments per day and a decrease of 0.7% in weight per shipment. Actual results for May 2025 may vary from the preliminary results reported above.

• Visa (V) was upgraded to Outperform from Neutral at Mizuho and raised tgt to $425 from $359 saying its category analysis shows Visa’s subdued excess growth versus U.S. personal consumption expenditures post COVID has largely been the result of vertical mix shit, as less card-based categories have outgrown more card-based categories post pandemic.

• Eli Lilly (LLY) downgraded to Hold from Buy at Erste Group.
• Humana (HUM) has told congressional staffers that it will support moves that would curtail billing practices worth billions in extra payments to the industry, the Wall Street Journal reported. The company is willing to back new limits on lucrative payments insurers can gain from diagnoses recorded by nurse practitioners who visit millions of enrollees in their homes

• CyberArk (CYBR) announces $750M convertible senior notes offering
• MongoDB Inc. (MDB) Q1 adj EPS $1.00 vs. est. $0.66; Q1 revs rose 22% y/y to $549M vs. est. $528.2M; Q1 adj net income $86.3M vs. est. $56.5M; Q1 Atlas Revenue up 26% y/y and were 72% of total Q1 revenue; for Q1 added 2,600 customers, with over 57,100 total customers as of April 30, 2025; guides FY adj EPS $2.94-$3.12 vs. est. $2.65 and revs $2.25B-$2.29B vs. est. $2.27B; announces share repurchase authorization of $800M.
• Verint Systems (VRNT) Q1 adj EPS $0.29 vs. est. $0.23; Q1 revs $208M vs. est. $194.22M; backs FY26 adjusted EPS view $2.93 at midpoint (est. $2.93) and backs FY26 revenue view $960M, plus or minus 3% vs. est. $957.82M; Q1 AI ARR which includes AI-powered software increased 24% y/y and represents close to 50% of total ARR.