Morning Preview: May 30, 2023

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Early Look

Tuesday, May 30, 2023









S&P 500










U.S. futures are higher by roughly +0.6% or 25 points to 4,238, near the overnight highs of 4,243.50 and building on last week’s gains after a bipartisan deal to raise the $31.4 trillion U.S. debt ceiling was reached in principle by the White House and the GOP this weekend, while Congress and the Senate are expected to vote in the coming days. After weeks of negotiations, President Joe Biden and House Speaker Kevin McCarthy have struck an agreement this weekend to raise the debt ceiling and avert a potentially devastating government default. The agreement, hammered out by Biden, McCarthy, and a small group of their deputies, is a two-year budget deal that would essentially hold spending flat for 2024, while boosting it for defense and veterans, and capping increases at 1% for 2025. It would suspend the debt limit until January 2025. The news is lifting futures ahead of a busy week of economic data. Last Friday, the Nasdaq 100 posted its best two-day performance since Feb. 2 despite more hawkish Fed commentary on rates, higher inflation data, and a jump in Treasury yields. For the week the Dow fell 0.997%, the S&P 500 rose 0.32% (closing above 4,200 for the first time since Aug 2022), and the Nasdaq added 2.5%. @bespokeinvest noted “the Tech sector heads into the weekend trading 3.23 standard deviations above its 50-DMA, its most overbought reading since January 2004!” In Asian markets, The Nikkei Index rose 94 points to 21,328, the Shanghai Index was up slightly at 3,224, and the Hang Seng Index gained 44 points to 18,595. In Europe, the German DAX is up 98 points to 16,050, while the FTSE 100 is down -32 points to 7,595.


Market Closing Prices Yesterday

·     The S&P 500 Index gained 54.17 points, or 1.30%, to 4,205.45.

·     The Dow Jones Industrial Average rose 328.69 points, or 1.00%, to 33,093.34.

·     The Nasdaq Composite surged 277.59 points, or 2.19%, to 12,975.69.

·     The Russell 2000 Index advanced 18.42 points, or 1.05% to 1,773.02.


Economic Calendar for Today

·     7:45 AM ET             ICSC Weekly Retail Sales

·     9:00 AM ET             Monthly Home Price Index for March

·     9:00 AM ET             S&P CaseShiller 20-City index for March

·     10:00 AM ET           Consumer Confidence for May

·     10:30 AM ET           Dallas Fed Manufacturing for May

·     1:00 PM ET              Fed’s Barkin Speaks on Monetary Policy, Outlook


Earnings Calendar:

·     Earnings Before the Open: SKY

·     Earnings After the Close: AMBA BOX HPE HPQ SPWH UHAL


Other Key Events:

·     American Thoracic Society (ATS) Conference, 5/20-5/24, in Washington DC

·     Berenberg European Conference 2023, 5/23-5/24, in New York

·     Jefferies Renewables & Clean Energy Conference (virtual), 5/23-5/24

·     JPMorgan Annual Global Tech, Media & Communications Conference, 5/22-5/24, in Boston, MA

·     UBS Financial Institutions Conference, 5/23-5/24, in Switzerland

·     UBS Global Energy Conference, 5/22-5/25, in Austin, TX

·     Wolfe Research Global Transportation & Industrials Conference, 5/23, in New York

·     China NBS Manufacturing PMI for May





















10-Year Note





World News

·     Treasury yields down across the board early as the 2-yr slips -8-bps to 4.51% and the 10-yr down -9-bps to 3.72%.

·     China has rejected a request by the United States for a meeting between their defense chiefs on the sidelines of an annual security forum in Singapore this coming weekend, the Wall Street Journal reported on Monday.

·     Japan’s jobless rate fell to 2.6% in April from 2.8% in the previous month, government data showed.


Sector News Breakdown


·     Ford Motor (F) upgraded to Buy from Hold at Jefferies with a price target of $16, up from $13.

·     Wynn Resorts Ltd. (WYNN) mentioned positively in Barron’s saying the operator of casino resorts is set to prosper as Macau rebounds from China’s zero-tolerance Covid-19 lockdown and shares are a solid bet with more growth to come.

·     Skyline Champion (SKY) Q4 EPS $1.00 vs. est. $0.93; Q4 revs $491.5M vs. est. $528.22M; q4 adjusted EBITDA margin 15.5%; q4 gross margin 28.7%.

·     ChargePoint Holdings (CHPT) upgraded to Buy from Neutral with a price target of $14, down from $15.50 at Bank America.


Energy, Industrials and Materials

·     Oil prices fell as much as 2% as concerns about the U.S. debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their OPEC+ meeting this weekend.

·     Daimler Truck Holding and Toyota Motor Corp (TM) have struck a preliminary deal to combine their truck units in Japan, the companies said on Tuesday.

·     Qantas Airways reaffirmed its capital expenditure outlook for fiscal 2024 provided in February as the company aims to add to its fleet.



·     Bank credit at all U.S. Commercial banks edges down to $17.29 trln in week ending May 17, vs $17.32 trln in prior week: Fed data, not seasonally adjusted.



·     Lexicon Pharmaceuticals Inc. (LXRX) announced that the FDA has approved INPEFA, a once-daily oral tablet to reduce the risk of cardiovascular death, hospitalization for heart failure, and urgent heart failure visit in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors.

·     SpringWorks Therapeutics (SWTX) announces full enrollment of phase 2 trial evaluating nirogacestat in patients with ovarian granulosa cell tumors.

·     Taro Pharmaceutical Industries Ltd. (TARO) said its controlling shareholder Sun Pharmaceutical Industries delivered a proposal letter with a non-binding indication of interest to acquire all Taro shares that it doesn’t already own for $38 per share in cash.


Technology, Media & Telecom

·     Activison (ATVI) “Call of Duty” video game, arguably the most successful ever, is at the center of the debate over whether Microsoft’s (MSFT) planned $75 billion acquisition of the company could give it an unfair edge to dominate the videogaming industry. The U.K.’s Competition and Markets Authority mentioned Call of Duty 41 times in the 20-page summary of its decision to reject the deal last month. The U.S. Federal Trade Commission cited the game 18 times in its 23-page complaint to quash the deal in December. – WSJ

·     Nvidia (NVDA) announced a new class of large-memory AI supercomputer – an NVIDIA DGX supercomputer powered by NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLink Switch System

·     Nokia (NOK) announces new 4G and 5G Core Network software solutions for mission critical needs of enterprise verticals.


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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