Morning Preview: April 19, 2022

Auto PostDaily Market Report

Early Look

Tuesday, April 19, 2022









S&P 500










U.S. stocks looking lower to start, but already paring losses as earnings season is just heating up. The U.S. dollar index (DXY) posted a fresh 2-year high of 101.02 before dropping back to currently $100.75, while the buck surged to a fresh 14-year high above 128 against the haven Japanese yen. Treasury yields have moved higher as the U.S. 10-year treasury yield rises to new high at 2.909%, highest since- late 2018. The euro holding around the 1.08 level ahead of the French election tomorrow. In interest rate news, St Louis Fed president James Bullard weighed in late yesterday saying raising the benchmark more than 75-bps isn’t his base case, but he won’t rule it out. In earnings news, Dow component and Pharma giant JNJ reported an EPS beat, but sales missed with lower guidance and suspend its vaccine sales forecast, a handful of banks are out and NFLX after the close.


U.S. stocks edged lower on Monday, while the 10-year Treasury yield continued its upward march at 2.85% following a three-day holiday weekend. All three indexes wavered between small gains and losses throughout the day before sliding late day and ended with a late day spike to pare losses. Healthcare was the weakest major S&P 500 sector, while energy led gainers. The U.S. dollar, crude oil, gold, and Bitcoin all ended higher as stocks sputtered. In Asian markets, The Nikkei Index gained 185 points to 26,985, the Shanghai Index was little changed at 3,194, and the Hang Seng Index tumbles -2.28% or 490 points to 21,027. In Europe, the German DAX is down -0.85% to 14,040, while the FTSE 100 slips -0.4% to 7,585. US data today consists of Housing Starts and Building Permits for March and the only scheduled Fed speaker is Chicago Fed Evans who speaks to the Economic Club of NY.

Market Closing Prices Yesterday

·     The S&P 500 Index slipped -0.90 points, or 0.02%, to 4,391.69

·     The Dow Jones Industrial Average fell -39.54 points, or 0.11%, to 34,411.69

·     The Nasdaq Composite dipped -18.72 points, or 0.14%, to 13,332.36

·     The Russell 2000 Index declined -14.85 points, or 0.74% to 1,990.13


Economic Calendar for Today

·     7:45 AM ET        ICSC Weekly Retail Sales

·     8:30 AM ET         Housing Starts m/m for March…est. 1.745M

·     8:30 AM ET         Building Permits m/m for March…est. 1.825M

·     8:55 AM ET         Johnson/Redbook Weekly Sales

·     4:30 PM ET         API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: BMI, CBSH, CFG, FITB, HAL, HAS, IRDM, JNJ, LMT, MAN, MBWM, PLD, SBNY, SI, TFC, TRV






















10-Year Note





World News

·     Fed’s Bullard said late yesterday that the Federal Reserve needs to move quickly on rates to get them up to 3.5% this year and that a 75-bps hike cannot be ruled out, though is not his base case here. Any recession talk is premature.

·     Passengers on airplanes, trains and other public transportation in the U.S. don’t have to wear masks anymore, after a federal judge struck down the mandate on Monday. The U.S. Transportation Security Administration and the Centers for Disease Control and Prevention said orders requiring masks on public transportation would no longer be enforced, although both agencies recommended their continued use.

·     Ukraine’s Zelensky says Russian invasion of Ukraine has moved into “the next phase”; Russian tanks and artillery opened fire from the breakaway regions of Donetsk and Luhansk in the east


Sector News Breakdown


·     Hasbro (HAS) Q1 adj EPS $0.57 vs. est. $0.64; Q1 revs $1.16B vs. est. $1.15B; said has a plan for continued growth in 2022, including low-single digit revenue growth despite the strengthening of the U.S. dollar and potential risk of approximately $100M in Russia; mid-single digit growth in operating profit to achieve adjusted operating profit margin of 16%, above prior guidance

·     Stellantis (STLA) said it suspends production at Russian plant due to logistical difficulties, sanctions imposed on Moscow


Energy, Industrials and Materials

·     Halliburton (HAL) Q1 adj EPS $0.35, in-line with ests; Q1 revs rose 24% y/y to $4.28B vs. est. $4.2B; N.A. revs $1.93 billion, +37% y/y, Middle East and Asia revenue $1.03 billion, +17% y/y

·     JB Hunt (JBHT) 1Q EPS $2.29 vs est. $1.94 on revs $3.49B vs est. $3.28B; Intermodal revs grew 36%, driven by a 28% increase in revenue per load and complimented with a 7% increase in load volume; Dedicated Contract Service revs grew 28% because of a 20% increase in average revenue producing trucks and a 6% increase in fleet productivity versus the prior year period

·     Plug Power Inc. (PLUG) announced an agreement with Walmart Inc. (WMT) for an option to deliver up to 20 tons per day of liquid green hydrogen

·     The U.S. Supreme Court on Monday declined to hear Spire Inc.’s (SR) appeal of a lower court ruling that could close a 65-mile pipeline that runs through parts of Illinois and Missouri.

·     Utility rating changes at Barclay’s: POR upgraded to EW from UW and up tgt to $57, while downgraded CMS to EW from OW (tgt raised to $76) and PNW downgraded to UW from EW (tgt up to $78)



·     Citizens Financial (CFG) Q1 EPS $1.07 vs. est. $0.92; Q1 revs $1.645B; Q1 Tangible book value per share $30.97 vs. $32.79 last year

·     Commerce Bancshares (CBSH) Q1 EPS $0.97 vs. est. $0.88; Q1 revs $340.56M vs. est. $347.91M; Q1 net interest income was $208.8M, a slight increase over the prior quarter; Q1 net interest margin increased 2 basis points to 2.45%

·     Equity Lifestyle (ELS) 1Q adj FFO/share $0.72 vs est. $0.70; revs $360.2Mm vs est. $307.7Mm; guides 2Q FFO/share $0.58-0.64 vs. est. $0.65

·     FB Financial (FBK) 1Q adj EPS $0.74 vs est. $0.72; return on average assets for the first quarter was 1.13%, return on average common equity was 10.1% and return on tangible common equity was 12.4%.

·     Gamco Investors Inc (GBL) March assets under management were same $33.4 bln as March 31, 2021 and were $35.0 bln at December 31, 2021

·     Hope Bancorp (HOPE) Q1 EPS $0.50 vs. est. $0.39; Loan originations totaled $1.03 billion, a record first quarter high and representing a 21% increase y/y; Net interest margin expanded 8 basis points from Q4; recorded a negative provision for credit losses of $11.0 million

·     Truist Financial (TFC) Q1 EPS $1.23 vs. est. $1.09; Q1 revs fell -2.9% to $5.33B vs. est. $5.47B; Q1 CET1 capital ratio 9.4%; Q1 net charge-offs .25%



·     Johnson & Johnson (JNJ) Q1 adj EPS $2.67 vs. est. $2.61; Q1 revs miss at $23.43B below consensus $23.67B; guides FY adj EPS $10.15-$10.35 below est. $10.51; says given global supply surplus and demand uncertainty, company is suspending covid-19 vaccine sales guidance

·     Acadia Pharmaceuticals (ACAD) announces top-line results from phase 2 study evaluating acp-044 for the treatment of acute postoperative pain; says its non-opioid drug candidate ACP-044 did not meet the main goal in a mid-stage

·     AstraZeneca PLC (AZN) and Daiichi Sankyo Co. said that Enhertu, a cancer treatment, has been accepted by the U.S. FDA for priority review for patients with previously treated HER2-mutant metastatic non-small cell lung cancer

·     Cassava Sciences (SAVA) shares down -17%; New York Times reports the company that has trumpeted an exciting new treatment for Alzheimer’s disease is now under fire for irregularities in its research results, after several studies related to its work were retracted or questioned by scientific journals

·     Fulgent Genetics (FLGT) guides prelim Q1 revs about $300M after saying to acquire Inform Diagnostics for about $170M

·     Navidea Biopharma (NAVB) reported regulatory approval for its imaging agent, Lymphoaim, in India


Technology, Media & Telecom

·     Twitter (TWTR): Apollo Global Management Inc. is considering participating in a bid for Twitter Inc., according to the WSJ after Elon Musk’s $43 billion pitch recently. Twitter is expected to rebuff Mr. Musk’s offer in the coming days, some of the people said. The company is set to report earnings April 28 and may detail its stance then.

·     NetGear (NTGR) shares fell -9%; guides prelim Q1 net revs $202M-$212M, below est. $231.8M and prior view of $225M-$240M; prelim Q1 adj operating margin -5.3% to -4.3%; said consumer Wi-Fi market declined in Q1; supply of components to our factories were severely disrupted in March due to covid China lockdowns

·     Zendesk (ZEN) shares rose 8%; after a report the software firm is exploring a sale amid pressure from activist Jana Partners; Bloomberg reported Zendesk is working with adviser Qatalyst Partners and has contacted possible buyers

·     Super Micro (SMCI) guides Q3 EPS $1.28-$1.38 vs. est. $0.80 and guides Q3 net sales $1.3B-$1.35B (from prior $1.1B-$1.2B) vs. est. $1.14B

·     Griffon Corporation (GFF) has entered into a definitive agreement to sell Telephonics Corporation to TTM Technologies, Inc. (TTMI) for $330M in cash


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