Regeneron (REGN) stock fell more than 18% in early trading after the company's experimental drug for smoker's lung failed a late-stage trial.

The drug did, however, pass a separate earlier-stage trial.

Read more on Regeneron here.

Consumer sentiment steadied in May as Americans grew more optimistic about the US economy following developments in President Trump’s trade policy.

According to the final May reading of the University of Michigan consumer sentiment survey released Friday, headline sentiment remained unchanged from the previous month, halting a four-month streak of sharp declines.

While sentiment dipped in the preliminary May reading, it rebounded later in the month, buoyed by a temporary pause on certain tariffs on Chinese goods that helped improve the economic outlook.

"Expected business conditions improved after mid-month, likely a consequence of the trade policy announcement," Joanne Hsu, director of consumer surveys at the University of Michigan, said in the release.

Long-run inflation expectations, which reflect the outlook over the next five to ten years, eased to 4.2% in May from 4.4% in April, marking the first decline since December 2024 and ending an unprecedented four-month streak of increases.

Meanwhile, year-ahead inflation expectations held relatively steady at 6.6%, up slightly from 6.5% in April. This modest uptick is the smallest since the election and signals a break in the four-month trend of sharp increases in short-run inflation expectations.

Still, the improvement in inflation expectations wasn’t enough to outweigh other areas of weakness, leaving consumers' overall mood subdued.

"These positive changes were offset by declines in current personal finances stemming from stagnating incomes throughout May," Hsu said. "Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future."

US stocks slid on Friday as investors absorbed a fresh wave of tariffs uncertainty and a cooldown in inflation pressures, according to the Federal Reserve's preferred price gauge.

The benchmark S&P 500 (^GSPC) fell about 0.3% while the tech-heavy Nasdaq Composite (^IXIC) Dow Jones Industrial Average (^DJI) also slipped roughly 0.3%, after the major gauges ended Thursday in the green.

The latest reading of the Federal Reserve's preferred inflation gauge showed price increases slowed in April as inflation remained above the Fed's 2% target. The release comes as investors have been closely watching data releases for signs of how President Trump's tariff policy is impacting the economy.

The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.5% on an annual basis, in line with expectations and lower than the 2.7% seen in March. Core prices rose 0.1% in April from the prior month, in line with expectations and the monthly increase seen in March.

On a yearly basis, PCE increased by 2.1%, below the 2.2% economists had expected.

From Bloomberg:

Read more here.

Costco (COST) stock was roughly flat in premarket trading after the company reported mixed earnings on Thursday.

The wholesale retailer's adjusted earnings per share were $4.28, above estimates for $4.24, while revenue of $63.21 billion slightly missed expectations.

Yahoo Finance's Brooke DiPalma reports:

Read more here.

Yahoo Finance's Hamza Shaban reports:

Read more here from today's Morning Brief.

Gap's (GAP) shares sank after the retailer laid out the multimillion-dollar hit to 2025 operating income it expects from President Trump's tariffs, but kept its 2025 forecast unchanged.

The stock dropped over 14% despite the retailer posting better-than-expected sales and profit in its first quarter results late on Thursday.

Gap said it expects added tariff-related costs of $250 million to $300 million. But the company said it has strategies to halve that amount, without providing full details. It projects a hit of up to $150 million to its full-year operating income, mainly in the second half.

Reuters reported:

Read more here.

Markets across the Asia-Pacific saw pullbacks Friday after yesterday's boost following the temporary reinstatement of Trump's "unlawful" tariffs.

Japan’s benchmark Nikkei 225 (^N225) declined 1.1% with investors eyeing growing inflation.

In South Korea, the Kospi (^KS11) dropped 0.9% as markets remain rattled ahead of a presidential election in a tough political climate.

Hong Kong's Hang Seng Index (^HSI) sank 1.5% as China’s CSI 300 (3188.HK) sli0.3%

Australia's S&P/ASX 200 (^AXJO) hovered around the baseline, with a gain of less than 0.1%

Newsmax (NMAX)

Shares in conservative media group Newsmax dropped 10.4% after hours Thursday resulting in a drop of over 75% since the company went public in March. Despite growing viewership Newsmax has faced a number of problems and is currently still engaged in a lawsuit with Dominion Voting Systems over "false claims" spread by the news source after the 2020 election. An overly ambitious IPO valuation combined with weak financial returns have continued to crater stock value.

Ulta Beauty (ULTA)

Ulta Beauty stock jumped up 8.3% in extended trading after the company beat analyst expectations for Q1. A 4.5% increase in net sales leading to $2.8b in revenue allowed Ulta to issue better-than-expected guidance for Q2. Earnings were reported at $6.70 per share.

The Gap (GAP)

Stock in apparel company The Gap nosedived 14.8% after-hours despite a solid earnings report as investors eye a potential a $300m hit to the bottom line from Trump's tariffs. The Gap reported revenue of $3.46 billion, well over analyst expectations of $3.42, while earnings per share came in at $0.51.