Morning Preview: June 27, 2023

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Early Look

Tuesday, June 27, 2023









S&P 500










U.S. stock futures edge higher as growth stocks recovered and investors looked ahead to several pieces of economic data this morning for signs on how much longer the Federal Reserve will hike interest rates. China stocks looking higher after Chinese Premier Li Qiang said the country will take steps to boost demand, invigorate markets, promote development while accelerating the green transition and opening “high level” parts of its economy to the outside world. Stock market caution prevailed on Monday as major averages ended near the lows heading into the halfway point of the year and quarter end. In Asian markets, The Nikkei Index fell -160 points to 32,538, the Shanghai Index rose 38 points to 3,189, and the Hang Seng Index jumped 354 points to 19,148. In Europe, the German DAX is up about 10 points to 15,833, while the FTSE 100 is flat at 7,454. Market participants were focusing on the European Central Bank Forum in Sintra, Portugal where several key policymakers including Fed Chair Jerome Powell will speak this week.


Economic Calendar for Today

·     7:45 AM ET                  ICSC Weekly Retail Sales

·     8:30 AM ET                  Durable Goods Orders M/M for May…est. (-1.0%)

·     8:30 AM ET                  Durable Goods Ex: Transports M/M for May…est. (-0.1%)

·     8:55 AM ET                  Johnson/Redbook Weekly Sales

·     9:00 AM ET                  Monthly Home Price Index M/M for April

·     9:00 AM ET                  CaseShiller 20-city Index for April…est. +0.4%

·     10:00 AM ET                Consumer Confidence for June…est. 104.0

·     10:00 AM ET                New Home Sales M/M for May…est. 675K

·     10:00 AM ET                Richmond Fed index for June…prior (-15)

·     10:30 AM ET                Dallas Fed Services for June

·     1:00 PM ET                   US Treasury to sell $43B in 5-year notes.

·     4:30 PM ET                   API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: APLM KFY LVO SCHN SNX WBA

·     Earnings After the Close: AVAV JEF TGAN


Other Key Events:

·     DA Davidson Retail Bus Tour, 6/27, in Boston, MA

·     Goldman Sachs Berlin Disruptive Technology Symposium, 6/27-6/28, in Berlin

·     Truist Securities Healthcare Disruptors & Digital Health Summit, 6/27


Market Closing Prices Yesterday

·     The S&P 500 Index declined -19.34 points, or 0.44%, to 4,328.99.

·     The Dow Jones Industrial Average dipped -11.66 points, or 0.03%, to 33,715.77.

·     The Nasdaq Composite dropped -156.74 points, or 1.16%, to 13,335.78.

·     The Russell 2000 Index edged higher 1.63 points, or 0.09%, to 1,823.26.





















10-Year Note





World News

·     US Treasury Secretary Janet Yellen plans to visit Beijing in early July for high-level economic talks; also, Biden administration executive order that would regulate and potentially cut off certain US investments in China is almost done and could be launched as soon as late July – Bloomberg.


Sector News Breakdown


·     Lordstown Motors (RIDE) has filed for Chapter 11 bankruptcy protection and said it was putting itself up for sale. Lordstown also said it filed litigation against Foxconn after a deal to provide the start-up with about $170 million in cash fell through.

·     AutoZone Inc. (AZO) said Bill Rhodes would relinquish his positions as chief executive and president in January 2024 and become executive chairman of the car-parts retailer’s board. Philip Daniele, a 29-year veteran of the company, will replace Rhodes.


Energy, Industrials and Materials

·     TechnipFMC (FTI) said it has been awarded a significant contract by Azule Energy to supply subsea production systems for the Block 18 Infills development, offshore Angola.

·     Abcam (ABCM) providing the following guidance for FY2024. Reported revenue of approximately GBP475M-GBP525M, representing 11.3% to 13.4% CER revenue CAGR and 10.0%-12.1% organic revenue CAGR from FY2019. Including the ongoing cost refinement actions announced last month, 2024 adjusted operating profit margins are expected to be between 32% to 36%, and adjusted EBITDA margins are expected to be between 42% and 46%.

·     Circor (CIR) has accepted a proposal from affiliates of investment funds managed by KKR (KKR) to increase the price of its previously announced definitive merger agreement with Circor from $49 to $51 per common share in cash, an increase of $2 per share. The all-cash transaction will be valued at $1.7B, including the assumption of debt.



·     Brookfield Reinsurance has agreed to acquire all the outstanding shares of common stock of American Equity (AEL) not already owned for $55.00 per share in $4,3B deal; shareholders will receive $38.85 in cash and several BAM shares having a value equal to $16.15.

·     Applied Digital Corp. (APLD) estimate that Q4 revs will be approximately $22M (consensus at $26.9M), estimate that net loss overall will be approximately $6.8M and adjusted EBITDA will be in the range of $2.7M-$3.2M.

·     Freddie Mac (FMCC) said total mortgage portfolio increased at an annualized rate of 3.7% in May and single-family delinquency rate decreased from 0.61% in April to 0.58% in May.

·     Robinhood (HOOD) cuts about 150 jobs or 7% off full-time employees in 3rd round of layoffs – the WSJ reported last night.



·     Ideaya Biosciences (IDYA) files mixed securities shelf.

·     Eli Lilly (LLY) said its experimental drug retatrutide in a mid-stage trial helped patients with obesity lose up to 24.2% of their body weight after 48 weeks. The study’s results, released on Monday, were published in the New England Journal of Medicine. STAT News noted that the drug that acts on three hormones (rather than the single target in Novo Nordisk’s Wegovy) led to the greatest weight loss yet seen by a new generation of drugs.

·     AstraZeneca’s (AZN) Xigduo XR, a once-daily fixed-dose combination, has been approved by China’s National Medical Products Administration, or NMPA, for the treatment of adults with type-2 diabetes.

·     Johnson & Johnson’s (JNJ) proposed $8.9B settlement of thousands of lawsuits alleging that its talc products cause cancer faces a crucial hurdle this week as a U.S. bankruptcy judge in N.J. considers whether a J&J subsidiary may resolve them by filing for bankruptcy.

·     Terns Pharmaceuticals (TERN) said that new preclinical data from a transgenic mouse model evaluating TERN-601, the Company’s novel oral GLP-1R agonist, were highlighted in a poster presentation at the American Diabetes Association’s Scientific Sessions.


Technology, Media & Telecom

·     Alibaba (BABA) downgraded to Market-Perform at Bernstein noting shares have traded in a range since their downgrade a year ago; says Alibaba GMV growth will show improvement in the June quarter, meanwhile merchant feedback has continued to point to anemic marketing spend intentions.

·     Nvidia (NVDA) announced Monday that it is partnering with Snowflake (SNOW) to offer generative AI technology to the cloud-based data warehousing company’s customers.

·     Stratasys Ltd. (SSYS) received a raised buyout bid from 3D Systems Corp. (DDD), which 3D Systems said represents “meaningful enhancements” to its previous bid. 3D said its new bid, Stratasys shareholders will receive $7.50 in cash and $1.3223 new 3D shares for each Stratasys share they own valued at $19.53 each.

·     Mobileye Global (MBLY) announced that CFO, Anat Heller, will be stepping down from her role for personal reasons, effective immediately.


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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