Morning Preview: September 12, 2023

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Early Look

Tuesday, September 12, 2023









S&P 500










Stock futures are looking slightly lower after major averages finished higher on Monday led by tech and communications. Tech seeing a little pullback this morning as a softer cloud revenue outlook from software giant Oracle (ORCL) has shares down over -9%. Today’s attention stays with technology after Oracle and as Apple (AAPL) holds its annual product launch this afternoon where a new iPhone is expected to be unveiled at a higher price point and as the first of two major DOJ cases against Google goes to trial Tuesday. U.S. stocks closed higher Monday, with Tesla fueling the S&P 500 index’s gains while the DJIA rose for a third straight day, ending 0.3% higher. Stocks rose to start a big week of inflation data (CPI data on Wednesday and PPI on Thursday). The dollar stabilizes after Monday’s selloff; yen hovers around 146.65/USD and the Treasury 10-year yield steady around 4.29%. In Asian markets, The Nikkei Index gained 308 points to 32,776, the Shanghai Index fell -5 points to 3,137, and the Hang Seng Index dropped -70 points to 18,025. In Europe, the German DAX is down about -40 points to 15,759, while the FTSE 100 rises 40 points to 7,538.


Market Closing Prices Yesterday

·     The S&P 500 Index climbed 30.10 points, or 0.68%, to 4,487.59.

·     The Dow Jones Industrial Average rose 88.18 points, or 0.26%, to 34,664.77.

·     The Nasdaq Composite gained 156.37 points, or 1.14%, to 13,917.89.

·     The Russell 2000 Index advanced 3.60 points, or 0.19% to 1,855.14


Economic Calendar for Today

·     6:00 AM ET            NFIB Small Business Optimism for Aug

·     7:45 AM ET            ICSC Weekly Retail Sales

·     8:55 AM ET            Johnson/Redbook Weekly Sales

·     1:00 PM ET            US Treasury to sell $38B in 10-year notes.

·     4:30 PM ET            API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: VNCE

·     Earnings After the Close: EGIO EPM FARM INNV MAMA


Other Key Events:

·     Apple (AAPL) set Sept. 12 date for its launch of iphone 15, and new watches.

·     Goldman Sachs Annual CEEMEA Financials Symposium, 9/11-9/12, in London

·     Goldman Sachs Annual Global Retailing Conference, 9/12-9/13, in New York

·     Goldman Sachs China+ Conference 2023, 9/12-9/13, in Hong Kong

·     HC Wainright Annual Global Investment Conference, 9/11-9/13, in New York

·     RBC Capital Global Industrials Conference, 9/12-9/13, in Las Vegas

·     Roth MKM 10th Annual Solar & Storage Symposium at SPI, 9/12-9/13, in Las Vegas

·     Salesforce Dreamforce 2023 in San Francisco, 9/12-9/14

·     Truist Securities Internet Growth Summit (virtual), 9/12-9/15





















10-Year Note





World News

·     NFIB Small Business Optimism Index: 91.3 vs. 91.7 consensus, 91.9 in July.

·     Australian business conditions improved 0.2 to 13 according to the NAB survey because of a lift in trading and employment. Confidence also improved 1 point to 2.

·     Shutdown risk looms as US Congress faces spending, impeachment brawl ‘; The main dispute among House Republicans is a demand by roughly three-dozen members of the hardline House Freedom Caucus to cut spending for fiscal 2024 to $1.47 trillion — about $120 billion less than Biden and Republican House Speaker Kevin McCarthy agreed in May – Reuters.

·     The British pound drops to below $1.25 after UK labor market data highlighted stagflation risks to the economy. Sterling underperforms G-10 FX.


Sector News Breakdown


·     Casey General (CASY) Q1 EPS $4.52 vs. est. $3.36; Q1 adj EBITDA $315.5M, +7.6% y/y vs. est. $264.8M; Q1 revs fell -13% y/y to $3.87B vs. est. $3.89B; now expects to add at least 150 stores in FY24; Q1 inside same-store sales increased 5.4% compared to prior year.

·     TikTok has officially rolled out its e-commerce business in the United States after months of testing, according to a blog post on Tuesday.


Energy, Industrials and Materials

·     AerCap (AER) 40.68M share Spot Secondary priced at $59.00; GE unit to sell about 40.7 mln AER at $59 each for about $2.44 bln in all.

·     United Parcel Service (UPS) said its new five-year deal with Teamsters-represented workers will cost less than $30 bln that was outlined by the union. The contract, which covers about 340,000 UPS workers in the United States, would increase wage and benefit costs at a 3.3% compound annual growth rate over the life of the agreement. Contract-related costs in H2 2023 are expected to be about $500 mln more than UPS expected.

·     Smurfit Kappa (SMFKY) and U.S. rival WestRock (WRK) agreed to merge to create the world’s largest listed paper and packaging company worth nearly $20 billion. WestRock stockholders will get one share in the new company, called Smurfit WestRock, and $5 in cash for each share they hold, which works out to $43.51 per share, the companies said in a statement.



·     Cohen & Steers, Inc. (CNS) preliminary assets under management of $80.0 billion as of August 31, 2023, a decrease of $2.3 billion from assets under management at July 31, 2023. The decrease was due to market depreciation of $2.2 billion and distributions of $157 million, partially offset by net inflows of $12 million.

·     Civeo (CVEO) has entered into a definitive agreement to sell its McClelland Lake Lodge assets to a US-based mining project for approximately C$49M, or $36M.

·     Hut 8 Mining Corp. (HUT) said it mined 103 Bitcoin in August 2023, resulting in an average production rate of approximately 3.3 Bitcoin per day. No Bitcoin were sold during the month.



·     Affimed (AFMD) announced that the FDA has granted fast track designation to the combination of its innate cell engager AFM13 with AlloNK for the potential treatment of relapsed/refractory Hodgkin lymphoma.

·     CVS Health Corp. (CVS) reaffirmed the company’s previously announced full year 2023 GAAP diluted earnings per share guidance range of $6.53 to $6.75 and reaffirm its full year 2023 adjusted EPS guidance range of $8.50 to $8.70.

·     MoonLake Immunotherapeutic (MLTX) Q4 adj EPS ($0.11) vs est. ($0.21) on revs $205.9Mm vs est. $208.23Mm; adj EBITDA $2.3Mm vs est. $(2.108Mm).

·     Sight Sciences (SGHT) lowers FY 23 revenue view to $80M-$82M from prior $89M -$94M (est. $92.12M).


Technology, Media & Telecom

·     Oracle Corp. (ORCL) shares fall -9%; Q1 adj EPS $1.19 vs est. $1.15 on revs $12.5B vs est. $12.47B, cloud revs $4.6B, adj op mgn 41%; Q1 deferred revenues were $11.1B, Q1 operating cash flow was $7.0B, up 9%, and Q1 free cash flow was $5.7 billion, up 21%; sees Q2 EPS $1.30-$1.34 vs. est. $1.25; sees Q2 revenue up 5%-7% and sees Q2 cloud revenue up 29%-31%.

·     Skillsoft Corp. (SKIL) Q2 EPS loss (-$0.18) vs. est. loss (-$0.16); Q2 revs $141.2M vs. est. $140M; Q2 total bookings continuing operations $129.2M; still sees ADJ EBITDA $100M-$105M, vs. est. $103M; still sees bookings $610M-$640M, and still sees GAAP revenue $555M.$585M.

·     Klaviyo (KVYO) 19.2M share IPO price range $25.00-$27.00.


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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