Morning Preview: July 02, 2024

Auto PostDaily Market Report

Early Look

Tuesday, July 2, 2024









S&P 500










After closing at the highs for the S&P 500 and Nasdaq yesterday in another market driven rally amid strength in technology stocks (XLK +18.4% YTD) and Communications (XLC +17.4% YTD), U.S. futures are looking at a pullback, being led lower by the same technology stocks heading into the midweek July 4th holiday. Nasdaq futures are down over -0.5% giving back a good portion of yesterday gains. The market concentration strength remains a focus as @MikeZaccardi notes “in the S&P 500 the degree of stock concentration is extreme; the top 10 companies have the highest weight in the index since 1929.” Interest rate sensitive stocks saw weakness on Monday, led lower by likes of homebuilders and dividend paying sectors as Treasury yields jumped. The 10-year yield is taking a small breather this morning, slipping 2bps to 4.457% after its recent spike, as the Treasury curve has been steepening in recent days due to resurfacing concerns about the U.S. fiscal outlook. Meanwhile energy prices extend gains as oil climbs to multi month highs and gasoline at best levels since early April. Bitcoin prices slip 1% after jumping over 5% yesterday above $63K. Hurricane Beryl strengthened after becoming the earliest ever Category 5 storm in the Atlantic, with the system heading toward Jamaica with life-threatening winds and heavy rainfall. In Asian markets, The Nikkei Index jumped 433 points to settle above 40K at 40,074, the Shanghai Index edged higher 2 points to 2,997, while the Hang Seng Index gained 50 points to 17,769. In Europe, the German DAX is down -177 points or nearly 1% to 18,112, while the FTSE 100 falls -23 points to 8,143 and the France Cac-40 drops -61 points to 7,500. Few data points of importance this week with JOLTs job data today, ADP private payrolls tomorrow and nonfarm payrolls on Friday.


Market Closing Prices Yesterday

  • The S&P 500 Index gained 14.61 points, or 0.27%, to 5,475.09.
  • The Dow Jones Industrial Average rose 50.66 points, or 0.13%, to 39,169.52.
  • The Nasdaq Composite jumped 146.70 points, or 0.83%, to 17,79.30.
  • The Russell 2000 Index declined -17.62 points, or 0.86% to 2,030.07.

Economic Calendar for Today

  • 7:45 AM ET ICSC Weekly Retail Sales
  • 8:55 AM ET                  Johnson/Redbook Weekly Sales
  • 9:30 AM ET                  Powell, Lagarde, Campos Neto Speak in Sintra
  • 10:00 AM ET JOLTS Job Openings for May
  • 4:30 PM ET API Weekly Inventory Data

Earnings Calendar:

  • Earnings Before the Open: MSM RDUS
  • Earnings After the Close: SLP





















10-Year Note




World News

  • OPEC’s crude production remained steady for a third month, while some key members continued to pump above agreed limits. The Organization of Petroleum Exporting Countries produced an average of 26.98 million barrels a day in June, or 80,000 a day less than during the previous month, according to a Bloomberg survey.
  • Iran’s oil output has reached 3.57m b/d and the country has been selling crude to Europeans, oil minister Javad Owji said, according to the semi-official Tasnim news agency.

Sector News Breakdown


  • Leisure related stocks, along with travel and insurance stocks being watched as Hurricane Beryl has strengthened to category 5, the highest level, becoming the strongest storm to ever form in the Atlantic at this time of the year. Shares of cruise lines (CCL, NCLH, RCL) were under pressure yesterday; watch insurers (ALL, AIR, TRV, PGR, RE, RNR).
  • Group 1 Automotive, Inc. (GPI) announced the expansion of its U.K. operations with the acquisition of four Mercedes-Benz dealerships located north of London in the county of Hertfordshire from L&L Automotive. This acquisition is expected to generate $105M in annual revenues.
  • Homebuilders D.R. Horton (DHI) and Lennar (LEN) both downgraded to Neutral from Buy at Citigroup and reduced estimates on builders to reflect softening housing activity this summer.

Energy, Industrial and Materials

  • In oil futures, West Texas Intermediate traded near a two-month high after breaking out of its recent trading range on an escalation in tensions in the Middle East and concerns over the rapid start to the Atlantic hurricane season.
  • Airbus (EADSY) won an order from Philippines budget airline operator Cebu Air which will buy up to 152 Airbus jets valued at $24 billion, an order it said would be the largest in the country’s history.
  • ArcelorMittal’s (MT) South African division has decided against shutting its steel plant in the KwaZulu-Natal province and is working on a plan to make it viable, it said on Tuesday, more than six months after announcing its closure.
  • MSC Industrial (MSM) Q3 adjusted EPS $1.33 vs. est. $1.34; Q3 revs $979.35M vs. est. $982.22M.
  • Shell Plc (SHEL) has temporarily paused construction of a biofuels plant in the Netherlands to seek ways to cut the cost of the project.
  • Twin Disc (TWIN) announced that it has been added to the Russell 2000 and Russell 3000 indexes, effective July 1.


  • Bank OZK (OZK) raises the dividend $0.01 or 2.56% from the prior quarter to $0.40.
  • Franklin Resources Inc. (BEN) files for offering of up to 31.6 mln shares by the selling stockholder.


  • Arcturus Therapeutics (ARCT) said ARCT-810 phase 2 study completed enrollment at 0.3 mg/kg dose level in Europe with data expected later this year; ARCT-810 to expand phase 2 clinical program in U.S. to enroll patients with more severe disease; said IND for phase 2 multiple ascending dose study to be submitted in next 60 days.
  • Incyte (INCY) downgraded to Underperform from Market Perform at BMO Capital.
  • Y-mAbs Therapeutics (YMAB) announced the appointment of Peter Pfreundschuh as Chief Financial Officer, effective June 28.

Technology, Media & Telecom

  • Paramount (PARA) shares up slightly pre-mkt after the New York Times reported Barry Diller is mulling a bid for controlling interest, citing people familiar with the matter. Diller’s digital-media conglomerate, IAC (IAC), has signed nondisclosure agreements with National Amusements, Paramount’s controlling shareholder, allowing the sides to exchange information regarding a potential deal
  • Fiverr (FVRR) downgraded to Neutral from Buy at UBS and cut tgt to $25 from $37.
  • Pure Storage (PSTG) downgraded to Sell from Neutral at UBS and raised tgt to $47 from $44.
  • Rapid7 (RPD) announced it has signed a definitive agreement to acquire Noetic Cyber, a cyber asset attack surface management, or CAASM company.
  • Sea Ltd. (SE) shares lower after the e-commerce group’s subsidiary PT Shopee International Indonesia accepted the report of alleged antitrust violations from Indonesian regulatory agency KPPU.
  • WideOpenWest (WOW) downgraded to underperform from market perform at Raymond James.


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