Morning Note - 06/04/26: Crowdstrike and Broadcom Gap Down, NASDAQ Getting Crushed

Overnight Summary and Early Morning Trading:

• The S&P 500 finished Wednesday lower by -0.74% at 7553.68 from Tuesday higher by 0.13% at 7609.78.

• The S&P 500 sees support now at 7500 from 7600. Resistance is now at 7600 from 7500. In the last two months, support has moved from 6300 to 7500.

• S&P 500 hit its 24th All-Time Closing High of 2026 on Monday.

• Futures are lower this morning by -30.50 (-0.40%) at 7541 on the SP 500 at 6:30 a.m. EDT.

• Bond Market is higher today on price with the 10-Year Yield at 4.475% from 4.481%.

Executive Summary:

• Stocks had a ninth up week, with the S&P 500 gaining 19.49% in the last nine weeks. We are now up 8.63% since the peak in January on the S&P 500 as of last Friday’s close.

• U.S. moves into Week 15 of its attack on Iran. Deal or no deal?

Key Geopolitical Events of Note:

• Economic news of note.

  • Weekly - Natural Gas Inventories and Jobless Claims of note.

  • Monthly - None of note.

• Fed Speakers of Note today: Daly (1:10 p.m. EDT)

• President Trump’s schedule:

  • Participates in Executive Time at 8:00 a.m. EDT.

  • Receives Intelligence Briefing at 11:00 a.m. EDT.

  • Makes Announcement on Beautiful, Clean Coal at 3:00 p.m. EDT.

  • Participates in a Policy Meeting at 5:30 p.m. EDT

Notable Earnings Out After The Close:

• Beats: ULTA +0.85, GME +0.14, PANW +0.06, GTLB +0.02, YEXT +0.02 of note.

• Misses: None of note.

• Flat: None of note.

Capital Raises of Note/Pricings:

• IPO Filings: None of note.

• Secondaries Filed Or Priced:

  • JBIO announces proposed underwritten public offering.

  • AEVA launches $100 million follow-on public offering of its common stock.

  • ASYS - Closing of $60 Million Oversubscribed Public Offering of Common Stock.

  • AVEX - Pricing of Public Offering.

  • BMNR - Proposed Series A Perpetual Preferred Stock Offering.

  • BTSG - Pricing of Secondary Offering of Common Stock and Concurrent Share Repurchase.

  • DDD - Pricing of $50 Million Upsized Public Offering.

  • JBIO - Pricing of Public Offering of Common Stock.

  • JZ - Closing of $5 Million Registered Direct Offering.

  • MASK: Form F-1.. Up to 17,128,381 Class A Ordinary Shares.

  • PULM: Form S-3.. 490,910 Shares of Common Stock.

  • QNT - Pricing of Upsized Initial Public Offering.

• Notes Filed Or Priced:

  • ATI - Pricing of Senior Notes Offering.

  • BGS - Pricing of Offering of Senior Notes due 2031.

  • COST: Form S-3ASR.. Debt Securities.

  • OUT - Pricing of Senior Unsecured Notes Offering.

  • QXO - Pricing of Senior Notes.

• Convertible Offerings Filed or Priced:

  • CELC - Pricing of Upsized Public Offering of 0.250% Convertible Senior Notes Due 2032.

• Private Placement: None of note.

• Direct Offering: None of note.

• Exchangeable Subordinate Voting Shares: None of note.

• Private Placements: None of note.

• Selling Shareholders:

  • CUE files for 4,090,908 share common stock offering by selling shareholders.

  • AEVA files for 3,509,719 share common stock offering by selling shareholders.

• Mixed Shelf Offerings:

  • AEVA files mixed securities shelf offering.

After The Close:

• Crowdstrike (CRWD) beat and raised by stock still lower in after hours.

• Broadcom (AVGO) beat and raised by not enough so lower in in after hours.

• PVH beat and raised on revenues and earnings but revenues below consensus.

• Costco (COST) same store sales for May rose 8%.

• NASDAQ (NDAQ) reports monthly volumes for May; U.S. equity options volume of $382 million contracts compared to 316 million a year ago.

• CBOE reports monthly volumes for May; U.S. equity options volume of $382 million contracts compared to 316 mln a year ago. (Stats)

• SpaceX amended IPO prospectus with the SEC, disclosing that it intends to offer 555.56 million shares at $135/share, which would result in total gross proceeds of $75.0 bln and a valuation of about $1.75 trillion.

• President Trump plans $700 million funding push for coal plants and export site.

• US House passes resolution to end the Iran War. (The Hill)

• 10-Q Delays: None of note.

Wednesday’s Winners:

• TLYS +13.1%, VSTM +4.4%, AI +2.2%, IOVA +3.2%, ALNY +2.5%

Wednesday’s Losers:

• ADCT -45.8%, NTSK -20.6%, PVH -19.8%, DDD -15.2%,AEVA -11.1%, AVGO -12.8%, WOOF -12.1%, FIVE -10.8%, CRWD -10.7%, CUE -7.1%, VEEV -4.6%

Executive, Corporate Changes:

• NTSK announces that CFO Drew Del Matto intends to retire.

• ET discloses that co-CEO Marshall McCrea intends to retire on or before December 31, 2026.

Dividend Announcements:

• Top Names Ex-Dividend Thursday: CI FF HD NE SU EXC LIN SAR NVDA PRMB PYPL QCOM.

• Top Names Ex-Dividend Friday: None of note.

Buybacks:

• ZG authorizes an additional $1.25 billion in repurchases under its previously announced buyback program.

What Happening This Morning:

Futures S&P 500 -37.00, NASDAQ 100 -395 Dow Jones +262. Europe is mixed while Asia is lower ex China. Bond yield is at 4.465% from 4.481% on the 10-Year. Crude Oil and Brent Crude are lower with Natural Gas higher. Gold, Silver and Copper are higher. The U.S. Dollar is lower versus the Euro, lower against the Pound and lower against the Yen. Bitcoin is at $62,364 from $67,247.

.

Sector Action:

• Daily Positive Sectors: Healthcare, Consumer Defensive and Energy were the leaders.

• Daily Negative Sectors: All others led the way lower.

• One Month Winners: Technology, Communication Services, Consumer Defensive, Healthcare and Real Estate of note.

• Three-Month Winners: Energy, Materials, Utilities, Consumer Defensive and Industrials of note.

• Six-Month Winners: Energy, Materials, Utilities, Industrials, Healthcare and Consumer Defensive of note.

• Twelve-Month Winners: Materials, Energy, Industrials, Utilities, Communication Services and Technology of note.

• Year to Date Winners: Energy, Materials, Consumer Defensive, Utilities and Industrials of note.

Bolded means the Sector is new to the period in which it falls.

Upcoming Earnings Of Note: (Erlanger Chartroom Software – sorted by market cap, highest to lowest with most visible names)

• Today After the Close:

• Friday Before The Open:

Notable Earnings of Note This Morning:

• Beat: CIEN +0.18, CAL +0.04 of note.

• Missed: CMCO -0.12 of note.

• Flat: None of note.

• Still to Report: BFB TTC of note.

Company Earnings Guidance:

• Positive Guidance: After The Close & This Morning - AVGO FIVE VEEV of note.

• Mixed - None of none.

• Negative or Mixed Guidance: After The Close & This Morning - CRWD NTSK WOOF PVH of note.

Advance/Decline Daily Update:

Gap Ups & Down In Early Pre-Market: (+2% or down more than -2%):

• Gap Up: FBRX +10%, GME +9.9%, AUPH +4.3%, SHW +3.1%, CATX +2.8%, CTKB +2.6%, OBE +2.3% of note

• Gap Down: NRXP -21%, YEXT -16.9%, TTI -14.4%, THO -9.8%, LUNR -7.7%, ATNI -4.8%, TE -4.5%, GTLB -3.9%, PANW -3.9%, ARDT -3.6%, KEN -3.5%, DBVT -3.2%, CDRO -2.2%, HGV -2.1%, ARGX -2.1%, NBTX -2%, of note.

Insider Action: NCLH AAT INR LODE CECO with Insider Buying with dumb short selling. None see Insider Buying with smart short sellers. Above $100,000 in purchases with high shorts but no history: EDBL of note.

Other Trading Action: None of note.

Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific. Bolded source means paywall.

• WSJ Lead Story: Terms Revealed For SpaceX $75 billion IPO. (WSJ)

• NY Times Lead Story: Republicans Begin To Test Limits of Trump’s Power. (NYT)

• USA Today: Tomorrow is free donut day. Where to get them? (USA Today)

• Bloomberg: NASDAQ Futures Tumble On Broadcom Testing AI Trade. (Bloomberg)

• Market Wrap: Stock rally stall as traders weigh peace prospect. (Bloomberg)

Economic & Geopolitical:

• Federal Reserve Speakers of note today:

  • Federal Reserve San Francisco President Mary Daly speaks at 1:10 p.m. EDT.

• President Trump’s schedule for today:

  • Participates in Executive Time at 8:00 a.m. EDT.

  • Receives Intelligence Briefing at 11:00 a.m. EDT.

  • Makes Announcement on Beautiful, Clean Coal at 3:00 p.m. EDT.

  • Participates in a Policy Meeting at 5:30 p.m. EDT.

• Economic Data Out -

  • Weekly

    • Natural Gas Inventories and Jobless Claims at 10:30 a.m. EDT and 8:30 a.m. EDT.

  • Monthly

    • None of note.

M&A Activity & Daily: None of note.

Moving Average Table: 80% from 96% of Equities are Positive, and 12% from 24% Bonds are Positive.

Meeting & Conferences of Note:

• Sellside Conferences:

  • Baird Consumer, Technology & Services Conference

  • DB dbAccess Basic Materials Conf

  • Evercore TMT Global Conference

  • Jefferies Defense Technology Summit

  • Jefferies Healthcare Conference o Microsoft Build

  • Noble Emerging Growth Equity Conference

  • Piper Global Exchange & Fintech

  • RBC Global Energy, Power & Infrastructure Conference

  • TD Cowen Future of the Consumer Conference

  • UBS Auto and AutoTech Summit

  • William Blair Growth Stock Conference

• Top Analyst, Investor: None of note.

• Shareholder Meetings: None of note.

• Fireside Chat: None of note.

• FDA Presentation: None of note.

• R&D Day: None of note.

• Meetings:

  • Nareit REIT Week Conference

  • Snowflake Summit

  • Cisco Live!

Upgrades & Downgrades:

The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting is to make the reader aware of market-moving recommendations.

Upgrades: RTX, UNH, CG, XPRO of note.
Downgrades: ODD of note.