Early Look
Wednesday, September 21, 2022
Futures |
Up/Down |
% |
Last |
Dow |
61.00 |
0.20% |
30,862 |
S&P 500 |
6.25 |
0.16% |
3,879 |
Nasdaq |
-3.50 |
0.03% |
11,918 |
U.S. futures are steady ahead of the Fed rate decision coming this afternoon, where markets are pricing an 80%+ chance of the FOMC boosting the fed funds rate by 75 basis points and less than 20% for 100 bps. Shares of defense stocks (NOC, LMT) and oil and gas stocks (XOM, OXY) rise after Russian leader Putin ordered a partial mobilization to hold on to disputed territories in Ukraine, while travel stocks slip. Treasury yields edge lower after jumping yesterday (2-yr down from near 4% levels and 10-yr off 11-year highs above 3.6% before paring gains). Stocks fell and Treasury yields rose to multiyear highs Tuesday on expectations the Federal Reserve will unveil more forceful monetary tightening to curb inflation this week. The S&P 500 lost 1.1% while the Dow industrials and Nasdaq Composite retreated 1%. All eyes are on the Fed, which is concluding its two-day policy meeting, with results at 2:00 PM today. Stock losses were broad into Tuesday afternoon, hitting all 11 S&P sectors. In Asian markets, The Nikkei Index tumbled -375 points to 27,313, the Shanghai Index edged lower -5 points to 3,117, and the Hang Seng Index declined -336 points to 18,444. In Europe, the German DAX is down -17 points to 12,653, while the FTSE 100 rises 40 points to 7,235.
Market Closing Prices Yesterday
· The S&P 500 Index dropped -43.96 points, or 1.13%, to 3,855.93
· The Dow Jones Industrial Average fell -313.45 points, or 1.01%, to 30,706.23
· The Nasdaq Composite tumbled -109.97 points, or 0.95%, to 11,425.05
· The Russell 2000 Index declined -25.34 points, or 1.40% to 1,787.50
Economic Calendar for Today
· 7:00 AM ET MBA Mortgage Applications Data
· 10:00 AM ET Existing Home Sales M/M for August
· 10:30 AM ET Weekly DOE Inventory Data
· 2:00 PM ET FOMC Policy Meeting Results – 75bps hike expected to 3%-3.25% range
Earnings Calendar:
· Earnings Before the Open: GIS
· Earnings After the Close: FUL KBH LEN SCS
Other Key Events:
· FOMC Policy Meeting Results at 2:00 PM ET– 75bps hike expected to 3%-3.25% range
· Credit Suisse Annual Houston Oil & Gas Conference, 9/20-9/21, in Houston, TX
· Deutsche Bank Annual Leveraged Finance Conference, 9/19-9/21, in Arizona
· Roth Capital Annual Solar & Storage Symposium, 9/20-9/21, in Anaheim, CA
· Salesforce User Conference: Dreamforce 2022, 9/20-9/22, in San Francisco, CA
· Sidoti Fall Small Cap Conference (virtual), 9/21-9/22
· Wells Fargo 5th Annual Consumer Conference, 9/20-9/22, in CA
Macro |
Up/Down |
Last |
Nymex |
2.00 |
85.94 |
Brent |
2.15 |
92.77 |
Gold |
12.40 |
1,683.50 |
EUR/USD |
-0.0048 |
0.9924 |
JPY/USD |
0.14 |
143.85 |
10-Year Note |
-0.033 |
3.54% |
World News
· Russian President Vladimir Putin raised the threat of a nuclear response and ordered Russian reservists to mobilize in an escalation of the war in Ukraine – WSJ
· The British government unveiled a multibillion-pound bailout to help companies with their energy bills this winter amid soaring prices that threaten to put many out of business.
Sector News Breakdown
Consumer
· Stitch Fix (SFIX) 4Q adj EBITDA ($31.8Mm) vs est. ($30Mm) on revs $481.9Mm vs est. $489Mm; EPS ($0.89) vs est. ($0.63), active clients -9% y/y to 3,795,000; guides 1Q adj EBITDA ($15Mm) to ($10Mm) vs est. ($13.25Mm) and net revs $455-465Mm vs est. $522.7Mm
· Estee Lauder (EL) upgraded to Buy from Neutral at Goldman Sachs
· Beyond Meat (BYND) chief operating officer suspended after arrest for allegedly biting man’s nose
Energy, Industrials and Materials
· The America Petroleum Institute said weekly crude oil stockpiles rose 1.035M barrels, with Cushing inventories rising 510K barrels, gasoline inventories jumping 3.225M barrels and distillates with a 1.53M barrel build
· China has begun running down its crude stockpiles, which could signal that refiners are getting ready to boost fuel exports – Bloomberg
· US defense stocks Northrop Grumman (NOC), Lockheed Martin (LMT), and Raytheon (RTX) rising after Russian President Vladimir Putin declared a partial mobilization with the Kremlin also moving to annex occupied regions of Ukraine
· Schlumberger (SLB) rolled out a cloud-based enterprise data solution on Wednesday to deliver the most comprehensive capabilities for subsurface data.
Financials
· Block (SQ) downgraded to Neutral from Outperform at SMBC Nikko
Healthcare
· Aurora Cannabis (ACB) reports Q4 revenue C$50.2M vs. C$54.83M a year ago
· OraSure (OSUR) wins contract to supply “together take me home,” HIV self-testing initiative sponsored by the centers for disease control and prevention. Under program, CDC will provide $41.5 mln over a five-year period to support community testing
· Puma Biotechnology (PBYI) announces exclusive license agreement with Takeda (TAK) for the development and commercialization of Alisertib, an investigational Aurora Kinase A Inhibitor
· Pulse Biosciences (PLSE) announces strategic change of focus in support of significant additional opportunities for medicinal related nano-pulse stimulation
Technology, Media & Telecom
· Take-Two Interactive Software Inc (TTWO) said that a hacker had gained access to the help desk platform of its unit 2K Games and sent a malicious link to certain customers. The company urged users not to open any mails or click on any links received from 2K Games Support account
· Saga Communications, Inc. (SGA) increases quarterly cash dividend to $0.25 per share and declares a special cash dividend of $2.00 per share
· Micron (MU) downgraded to Neutral from Buy at Mizuho and cut tgt to $56 from $75
· Western Digital (WDC) downgraded to Neutral from Buy and tgt cut to $40 from $62 at Mizuho
· Tencent Music Entertainment (TME) has successfully listed on the Main Board of The Stock Exchange of Hong Kong
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.