Morning Preview: April 17, 2024

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Early Look

Wednesday, April 17, 2024









S&P 500










After slipping for a third day on Tuesday, U.S. futures are pointing to a rebound early, helped by gains in Europe and China as earnings season begins to heat up. Chip stocks down early after ASML orders fell short of expectations, while better results from luxury retail LVMH and shoe retailer Adidas helped European markets. In U.S. earnings, airline UAL soars after its earnings results while trucker JBHT dips on its earnings miss in the transport sector. More financial earnings today before big cap tech takes over next week with USB, FHN, CFG, DFS among those reporting. Stocks ended lower in choppy trading on Tuesday as Treasury yields climbed, with investors weighing the likely path of interest rates in a resilient U.S. economy with persistent inflation. Markets were volatile late day after Federal Reserve Chair Jerome Powell said recent inflation data has not given policymakers enough confidence to ease credit soon, noting that the U.S. central bank may need to keep rates higher for longer than previously thought. Note given this latest pullback, the S&P 500 and the Nasdaq are nearly 4% off from record high levels reached last month. WTI crude edges lower amid a continuing focus on Israel’s response to Iran’s weekend attack and a possible rise in US crude inventories. The Dollar Index (DXY) fell for the first time in six sessions while European stocks gain. In Asian markets, The Nikkei Index declined -509 points to 37,961, the Shanghai Index surged 64 points or 2.14% to settle at 3,071, and the Hang Seng Index was little changed at 16,251. In Europe, the German DAX is up 122 points to 17,889, while the FTSE 100 rises 40 points to 7,861.


Market Closing Prices Yesterday

  • The S&P 500 Index slipped -10.41 points, or 0.21%, to 5,051.41.
  • The Dow Jones Industrial Average rose 63.86 points, or 0.17%, to 37,798.97.
  • The Nasdaq Composite dropped -19.77 points, or 0.12%, to 15,865.25.
  • The Russell 2000 Index declined -8.23 points, or 0.42% to 1,967.48.

Economic Calendar for Today

  • 7:00 AM ET                  MBA Mortgage Applications Data
  • 2:00 PM ET                   Federal Reserve Releases Beige Book
  • 10:30 AM ET                Weekly DOE Inventory Data
  • 1:00 PM ET                   US Treasury to sell $13B in 20-year notes.
  • 4:00 PM ET                   Net Long-term TIC Flows for February
  • 5:30 PM ET                   Fed’s Mester Gives Update on Fed
  • 7:15 PM ET                   Fed’s Bowman Speaks at IIF Global Outlook Forum

Earnings Calendar:

  • Earnings Before the Open: ABT ASML BKU CFG FCCO FHN NOK PLD TRV USB

Other Key Events:

  • American Academy of Neurology (AAN), 4/13-/18 in Denver, CO
  • Piper Spring Biopharma Symposium, 4/16-4/17, in Boston, MA





















10-Year Note




World News

  • Canada will raise capital gains taxes on businesses and wealthy individuals, the new rate hits in June, government sees C$19.4 Bln over five years; the funds will be helped to pay for tens of billions in new spending aimed at making housing more affordable.
  • Japan’s Tankan sentiment index for manufacturers stood at plus 9, down from the previous month’s 10; services sector index fell to plus 25 from plus 32 in the previous month.
  • Japan exports gained 7.3% in March from a year earlier vs estimated gain of 7% y/y; Imports fell 4.9%, compared with the consensus estimate of a 5.1% decline; Shipments to China saw a 12.6% increase, accelerating from 2.5% in the previous month.
  • The latest weekly API report showed crude oil inventories rose by 4.09 million barrels; Gasoline inventories fell by 2.51 million barrels; Distillate inventories fell by 427,000 barrels.

Sector News Breakdown


  • United Airlines (UAL) Q1 adj EPS loss (-$0.15) vs est. (-$0.57) on rev s$12.5B vs est. $12.45B; qtrly CASM -0.6%, CASM-ex +4.7%; TRASM +0.6%; sees FY EPS $9.00-11.00 vs est. $9.43; lowers FY24 adjusted CapEx view to ~$6.5B from ~$9B; sees Q2 adjusted EPS $3.75-$4.25, vs. consensus $3.76.
  • Auto parts supplier Continental AG (CTTAY) Q1 revenue and profit margin came in below expectations; Q1 sales were 9.8 billion euros ($10.40B), below an analyst consensus of 10 billion euros, while adjusted EBIT margin of 2% was also below consensus forecast of 3.7%; the company confirmed its FY guidance.
  • The FTC is preparing to sue to block Tapestry’s (TPR) $8.5B takeover of Capri Holdings (CPRI), The New York Times reported saying according to people two people familiar with the matter, FTC commissioners will meet this week to discuss the case, which could precede a formal vote on whether to file a lawsuit.

Energy, Industrials and Materials

  • JB Hunt (JBHT) Q1 EPS $1.22 vs est. $1.52 on revs $2.94B vs est. $3.121B; decline in rev primarily driven by 9% decrease in segment gross rev per load in both intermodal and truckload, 22% fewer loads in integrated capacity solutions, modest decline in avg trucks and productivity in dedicated contract services; intermodal volume was flat vs same period in 2023, Transcontinental Network loads increased 5%, Eastern Network Loads fell -7% y/y.
  • The White House is calling for higher tariffs on Chinese steel and aluminium, to help shore up the American steel sector and woo its workers in this year’s election; Biden proposes raising 301 tariffs on China steel, aluminum – watch shares of STLD, NUE, AA, CENX, FCX, CLF, and others.


  • First Horizon (FHN) Q1 adj EPS $0.35 vs. est. $0.34; loans at end-period $61.75B; deposits at end-period $65.74B; Q124 RoTCE of 11.0% and adjusted RoTCE of 11.6% with tangible book value per share of $12.16.
  • Fulton Financial (FULT) Q1 EPS $0.40 vs. est. $0.39; Q1 revenue $264M vs. est. $216.5M; Q1 net interest margin 3.32% vs. 3.53% last year and Q1 provision for credit losses $10.9M vs. $24.5M last year.
  • Hancock Whitney (HWC) Q1 EPS $1.28 ex-items vs est. $1.18 on NII $269Mm vs est. $272.18Mm; credit loss allowance -$340.8Mm.
  • Interactive Brokers (IBKR) boosted its qtrly dividend to $0.25 from $0.10; Q1 adj EPS $1.64 vs est. $1.63 on net interest income (NII) $747Mm vs est. $759.6Mm; Q1 revs rose 14% y/y to $1.2B, in-line with estimates; said trading volume was mixed across product types as options contract volume was up 24%, but futures contract and stock share volumes were down 3% and 16%, respectively.
  • U.S. Bancorp (USB) Q1 adj EPS $0.90 vs. est. $0.88; Q1 revs $6.72B vs. est. $6.71B; sees Q2 net interest income relatively stable vs. Q1 2024 of about $4.0B; sees FY2024 net interest income $16.1 bln to $16.4 bln.


  • Eli Lilly (LLY) reported positive results of its obesity drug Zepbound in obstructive sleep apnea, giving the medication a new edge in the highly competitive obesity market. The results also pave the way for Zepbound to potentially become the first approved treatment for obstructive sleep apnea, or OSA, a common disorder characterized by breathing interruptions during sleep.
  • Sage Therapeutics (SAGE) announced topline results from PRECEDENT, a double-blind, placebo-controlled Phase 2 study of the investigational oral medicine dalzanemdor, or SAGE-718, in people with mild cognitive impairment or MCI, in Parkinson’s Disease
  • Bluebird Bio (BLUE) announced the delay in 10-q filing.
  • Ontrack (OTRK) Q4 adj EPS ($0.27) vs est. ($0.21) on revs $3.5Mm vs est. $4.037Mm; sees Q1 revs $2.5-2.9Mm vs est. $4.3Mm.

Technology, Media & Telecom

  • ASML Holding (ASML) shares dropped overnight after Q1 net bookings were EUR3.61 billion, or $3.84 billion, well below the estimates of nearly EUR5.10 billion; bookings for extreme ultraviolet lithography machines came to EUR656 million; the FY24 is unchanged; posted Q1 net profit of EUR1.22B vs. prior EUR2.05B and sales came to EUR5.29B, down from EUR7.24B.
  • Autodesk Inc. (ADSK) shares fell after announced will not file 10-k for year ended Jan 2024 within 15-day extension period due to ongoing internal investigation re free cash flow, non-Gaap operating margin practices.
  • HubSpot (HUBS) announces departure of chief customer officer; promotes existing sales, marketing, and customer success leaders.
  • Omnicom (OMC) Q1 adj EPS $1.67 vs. est. $1.55; Q1 revs $3.63B vs. est. $3.62B; reported Q1 EBITA of $500.4M and 13.8% margin; Operating expenses increased $54.8 million, or 1.8%; SG&A expenses decreased $3.9 million, or 4.4%.
  • Disney (DIS): Plans to expand the Disneyland Resort cleared a major hurdle Wednesday, as local officials endorsed a new blueprint governing the development of Walt Disney’s Southern California theme parks over the next 40 years.


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.

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