Mid-Morning Look: November 20, 2023

Auto PostDaily Market Report

Mid-Morning Look

Monday, November 20, 2023






DJ Industrials




S&P 500








Russell 2000






U.S. stocks extending gains, adding to the recent 3-week winning streak that has lifted the S&P 13 of the last 15 trading days heading into today and the Nasdaq 100 rises to its highest levels since January 2022 as the year end rally continues (Nasdaq +10% MTD and 35% YTD). All fears of further Fed tightening were erased 2-weeks ago following softer inflation data, and it has been “off to the races” since, as Wall Street turns their attention to when the Fed may “ease”. All macro concerns (Ukraine and Israel/Hamas) and the prior weaker-than-expected Q3 earnings and cautious outlooks in various sectors that took October stock prices lower have all been forgotten as the Fed/rates all the matters again. Treasury yields have tumbled this month and the dollar down to 2-month lows on expectations of the Fed being done with hikes. Economic data overall, especially in Housing has shown weakness but Wall Street remains hopeful of a “soft landing” for the economy. Usual suspects again leading as Technology (XLK) +0.8% and Communications (XLC) +0.55% and up 48% YTD and 46.8% respectively doing the heavy lifting again while most other S&P sectors are down on the day with breadth up slightly on day. The stock market news flow, as expected ahead of the Thanksgiving Day holiday shortened week is very thin, but a soap opera at OpenAI and Microsoft this weekend stealing all the headlines and boosting shares of MSFT to new all-time highs (details below). Items to watch this week include some earnings (NVDA, ZM, ADI, ADSK, HPQ in tech and URBN, KSS, LOW, BBY, AEO, ANF in retail and FOMC Minutes tomorrow. S&P futures (Spuz) takeout last week highs of 4,541.25 (11/15), rising as high as 4,543.







WTI Crude















10-Year Note





Sector Movers Today

·     What a weekend for OpenAI and MSFT! Current CTO Mira Murati appointed as interim CEO following OpenAI board’s sudden decision to terminate Sam Altman late Friday – key executives Greg Brockman, President and Co-Founder also resigned following Mr. Altman’s departure. Then OpenAI co-founder Sam Altman joined MSFT to lead its AI effort after the board replaced him with Twitch’s ex-CEO. Altman and Greg Brockman will lead a newly created in-house AI development team at the US software firm, a major OpenAI backer. Microsoft remains committed to the relationship and is looking forward to working with the startup’s new CEO, Emmett Shear, CEO Satya Nadella said in a post early on Monday. More than 500 OpenAI staffers have reportedly threatened to quit on Monday unless the company’s embattled board of directors resigns over its surprise move on Friday to oust Sam Altman from the company.

·     Paper & Packaging sector: Truist noted containerboard prices soften for first time since May – boxboard remains flat (GPK, WRK, IP). Noted on Friday, Fastmarkets RISI released its weekly Pulp & Paper Week (PPW) publication that included November containerboard and boxboard pricing and relevant commentary. Pricing for domestic containerboard declined $20/ton, while boxboard pricing remained unchanged from October.



·     BA +3%; upgraded to Buy from Hold at Deutsche Bank and raise tgt to $270 from $204 saying rationale is simple: aircraft deliveries are accelerating, and it thinks there’s a credible case to be made that this improved performance can be sustained.

·     BBAR +20%, along with strength in other Argentina US listed stocks (YPF, GGAL) after right-wing Javier Milei wins Argentina’s presidential election in a surprising development.

·     MNOV +15% reported positive results from mid-stage trial of its experimental treatment, MN-166, against Glioblastoma.

·     MSFT +1%; shares have just hit a new all-time high on the news that Sam Altman is joining Microsoft after OpenAI board’s sudden decision to terminate Sam Altman late Friday while key executives Greg Brockman, President and Co-Founder also resigned.

·     PENN +5%; upgraded from Neutral to Buy at Bank America and raised tgt to $30 as they believe ESPN Bet creates an asymmetric risk-reward.



·     BAYRY -18%; after saying it is cancelling a phase III study program to investigate the efficacy and safety of asundexian, an oral Factor XIa (FXIa) inhibitor; the study showed inferior efficacy compared to a standard treatment.

·     BMY -2%; after saying the FDA is convening an advisory committee to review a drug application and peer Bayer stopped a trial as analysts note feedback suggests heightened risk to broader Factor XIa inhibitors, including BMY’s Phase 3 trial of milvexian.

·     CHGG -7%; downgraded at Morgan Stanley as sees weaker trends in October and greater competition from generative AI in the longer term.

·     IP -3%; as Truist noted containerboard prices soften for first time since May – boxboard remains flat (GPK, WRK, IP).

·     NSTG -47%; after withdrawing full-year and Q4 guidance after losing patent verdict to TXG

·     TSVT -17%; after the company along with BMY said the FDA won’t meet its Dec. 16 target action date application seeking approval of Abecma for earlier lines of triple-class exposed relapsed or refractory multiple myeloma after opting for AdCom meeting.

·     URI -2%; after UK competitor Ashtead Group issues warning citing lower emergency response activity in its U.S. business as expects annual group and U.S. rental rev growth of 11%-13%, below prior forecast of 13%-16%.


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

Live Trading

Open an Account

Paper Trading