Morning Preview: June 23, 2023

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Early Look

Friday, June 23, 2023









S&P 500










U.S. futures looking lower initially, with the Nasdaq on track to snap its 8-week winning streak, and the S&P to snap its 5-week winning streak, posting modest losses coming into the final trading day of the week. U.S. stocks finished mostly higher on Thursday, with both the Nasdaq Composite and S&P 500 bringing a three-day losing streak to an end. The S&P 500 gained 16.16 points, or 0.4%, to finish at 4,381.85, and the Nasdaq Composite rose by 128.41 points, or 1.3%, to 13,630.61. The Dow and Smallcap Russell 2000 declined (Dow now on 4-day losing streak). The CBOE Volatility Index (VIX), or “fear” index, closed under 13 for the first time in more than 3 years. In Asian markets, The Nikkei Index tumbled -483 points to 32,781, the Shanghai Index was closed, and the Hang Seng Index dropped -328 points to settle the week at 18,889. In Europe, the German DAX is down -118 points at 15,870, while the FTSE 100 is down about -20 points to 7,482. Handful of economic data today in US.


Market Closing Prices Yesterday

·     The S&P 500 Index gained 16.15 points, or 0.37%, to 4,381.84.

·     The Dow Jones Industrial Average slid -4.75 points, or 0.01%, to 33,946.77.

·     The Nasdaq Composite jumped 128.41 points, or 0.95%, to 13,630.61.

·     The Russell 2000 Index declined -14.84 points, or 0.80% to 1,848.18.


Economic Calendar for Today

·     5:15 AM ET             Fed’s Bullard Speaks at Central Bank of Ireland Conference

·     9:45 AM ET             S&P Global Manufacturing PMI, June Flash

·     9:45 AM ET             S&P Global Manufacturing Services, PMI, June-F

·     1:00 PM EST           Baker Hughes Weekly rig count data

·     1:40 PM ET             Fed’s Mester Delivers Closing Remarks at Policy Summit


Earnings Calendar:

·     Earnings Before the Open: KMX


Other Key Events:

·     Russell Annual Reconstitution for June, effective on the close, 6/23





















10-Year Note





World News

·     Japan’s May CPI came in as expected on the headline CPI (3.2%) but higher-than-expected for the two core measures (3.2% and 3.4%). Japan core CPI (ex: fresh food) rolled in at 3.2% and the core CPI (ex: fresh food & energy) rose 0.2%pts to 4.3%.

·     Japan’s services PMI eased, to 54.2 from 55.9 in June, while the manufacturing PMI dipped back into contractionary territory of 49.8 after last month’s lift to 50.6.

·     UK consumer confidence improved to its strongest level in 17 months in a June survey taken before yesterday’s 50bp rate rise to 5.0%=; reported at -24 vs -26 consensus.


Sector News Breakdown


·     CarMax (KMX) Q1 EPS $1.44 vs. est. $0.79; Q1 revs $7.7B vs. est. $7.53B; Q1 retail used unit sales declined 9.6%, and comparable store used unit sales declined 11.4%, each from the prior year’s first quarter; wholesale units declined 13.6% from the prior year’s first quarter.

·     Smith & Wesson Brands (SWBI) 4Q adj EPS $0.32 vs est. $0.27 on revs $144.8Mm vs est. $138.38Mm, gr mgn 29%, adj EBITDA $30.3Mm vs est. $25.63Mm; raises quarterly dividend by 20% to $0.12; said for FY24, expect consumer demand to resemble demand in FF23.

·     Starbucks (SBUX) union says workers at more than 150 stores will strike over Pride décor.

·     Wayfair (W) upgraded to Market Perform from Underperform at MoffettNathanson.


Energy, Industrials and Materials

·     3M Co. (MMM) shares rallied; said it would pay $10.3 billion to settle claims it was responsible for so-called “forever chemicals” in drinking water; said it will take a charge for the amount in the second quarter.

·     Siemens Energy (SMNEY) withdrew its fiscal-year profit guidance and said it could cost upward of 1 billion euros, equivalent to around $1.1 billion, to fix issues related to wind-turbine component failures in its Siemens Gamesa subsidiary.

·     Apogee Enterprises (APOG) Q1 EPS $1.05 vs. est. $0.90; Q1 revs $361.71M vs. est. $354.77M; raises FY24 EPS view to $4.15-$4.45 from $3.90-$4.25 (est. $4.05).

·     Virgin Galactic (SPCE) files mixed securities shelf.



·     Fed discount window borrowing at $3.2 billion on June 21 vs. $3.6 billion on June 14; Fed ‘other credit’ at $172.3 billion on June 21 vs. $180.5 billion on June 14.

·     Stifel (SF) estimates that q2 investment banking and transactional revenue will be down 10-15% and 5-10%, respectively, from the prior quarter; said in May, total deposits increased while client cash balances were relatively flat with April’s levels.



·     GlaxoSmithKline (GSK) shares rise 6% early; has agreed to settle a Californian lawsuit over allegations that its heartburn treatment Zantac causes cancer.

·     Intercept Pharmaceuticals (ICPT) announces restructuring to strengthen focus on rare and serious liver diseases and significantly reduce operating expenses; said to discontinue all NASH-related investment; to reduce workforce by approximately one third; Lowers 2023 Non-Gaap Adjusted Operating Expense Guidance To $350-$370M.

·     ChromaDex Corp (CDXC) files for mixed shelf of up to $125 mln.

·     Trupanion (TRUP) said California approved over a 12% rate increase, which in addition to its’ previously approved 8% rate increase in November of 2022, brings the total approved rate to approximately 21% in the last seven months. New York approved Trupanion’s requested 18% rate increase, which in addition to its’ previously approved 6% rate increase in November of 2022.


Technology, Media & Telecom

·     MSG Entertainment (MSGE) 5.25M share Secondary priced at $31.00.

·     IonQ (IONQ) announced a partnership with QuantumBasel, where IonQ will provide two quantum computing systems, raised its FY23 bookings expectations by +25%, and launched its Forte system for commercial use.

·     Warner Bros. Discovery (WBD) is negotiating to sell around half of the storied Warner studio’s film and TV music-publishing assets for approximately $500 million – Variety reported.

·     Smith Micro Software Inc (SMSI) files for shelf of up to 17.1 mln shares of common stock by selling stockholders.


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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