Market Review: June 15, 2023

Closing Recap

Thursday, June 15, 2023





DJ Industrials




S&P 500








Russell 2000





Equity Market Recap

·     After weakening overnight, S&P futures shrugged off a mixed bag of economic reports as nothing to excite hawks or doves then began a morning melt-up. Softening economic data from China also weighed on equities overnight, but a rate cut and news of a new spending program and other stimulus to offset the weakness did see a favorable response. By mid-morning, US equities were enjoying a rally with breadth a bit better than 3:2 in favor of advancers. Mid-day sector leaders were Energy and Healthcare in a reversal from yesterday, while Real Estate was the only S&P sector in the red.

·     Data-wise, today’s AAII Sentiment Survey registered a 48% bullish reading, the highest since November 2021 and the first time above average on consecutive weeks since November 2021, as well. The bearish reading was 22.2%, the lowest since July 2021. Similarly, @charliebillelo highlights 61% of people reported owning stocks in the most recent Gallup poll, the most since 2008. Following on yesterday’s Fed dot plot hinting at two more rate hikes in 2023, @DiMartinoBooth begs to differ, saying she doesn’t see another hike this year given cooling inflation and momentum to the downside.

·     Heading into the final hour of trading, both the NASDAQ and S&P 500 extended gains beyond +1% on the day. Breadth expanded to almost 3:1 in favor of advancers, as all S&P sector groups gained. Growth and value also both rose, with the Russell 1000 Growth +1.42% versus the Russell 1000 Value +1.25%.


Economic Data:

·     US initial jobless claims 262k versus 245k forecast and 261k prior.

·     US Philly Fed -13.7 versus -14 expected and -10.4 prior.

·     US core retail sales mo/mo 0.1% versus 0.1% expected and 0.4% prior.

·     NY Fed manufacturing 6.6 versus -15.1 anticipated and -31.8 prior.



·     August gold futures erased overnight weakness to settle +$1.80/oz, or +0.09%, to $1,970.70. The recovery allowed a second consecutive up day for gold despite the brief roll after yesterday’s, “hawkish pause” from the Fed.

·     July WTI oil futures bounced back from yesterday’s weakness to settle +$2.35, or 3.44%, to $70.62/bbl, the highest in a week. Brent similarly bounced $2.47, or 3.37%, to $75.67/bbl. The recovery was broadly attributed to data from China reflecting a 15.4% rise in oil refinery throughput to mark the second-highest monthly total (62Mm metric tons). Later stories on China planning a new spending drive and other stimulus to offset economic weakness also supported today’s rally.


Currencies & Treasuries

·     Both the US Dollar and Treasury yields faded after mixed economic data and time for the market to digest yesterday’s Fed commentary.






WTI Crude















10-Year Note





Sector News Breakdown


·     IPO Cava Group (CAVA) began trading today, the “Chipotle of Mediterranean food” sold 14.44M shares to investors at $22 per share. Shares opened +91% and continued trading at the elevated range as investors expressed FOMO for an IPO for the first time since the debut of MBLY in October.

·      Kroger Co. (KR), in another significant earnings release, reported an EPS beat, revenue miss and mixed forward guidance as budget conscious shoppers continue to struggle with inflation, shares traded lower all day.

·     Lennar (LEN) reported earnings after the bell on Wednesday, its shares trading higher after a double beat and an optimistic conference call today. CEO Miller said he is seeing demand come back to the US housing market.

·     Tesla (TSLA) shares alternated all day between a small gain and loss following the stock’s first negative close in 2 weeks yesterday. Momentum traders began picking through the wreckage of the EV sector, buying beaten down EV names such NKLA & WKHS.

·     AutoZone Inc (AZO) board authorized repurchase of an additional $2B of company’s common stock in connection with its ongoing share repurchase program.

·     Domino’s Pizza (DPZ) was another notable ratings change recipient, upgraded from Hold to Buy, $350 PT. The analyst predicts delivery sales to stabilize over the next 12 months, while carryout sales grow to new record highs.

·     Kohl’s (KSS) was upgraded to Outperform at TD Cowen, who expects new home decor & gifting product, improved fashion execution, a simplified promotional strategy, and pragmatic store layout revisions to drive healthier and more consistent traffic and faster inventory turns.



·     Patterson-UTI Energy (PTEN) and NexTier Oilfield Solutions (NEX) confirmed yesterday’s WSJ article, announcing in a PR that they would combine in a “merger of equals, creating an industry leading drilling and completions service provider.



·     SoFi Technologies (SOFI) saw its +43%, 12-day rally come to an end after Oppenheimer downgraded the fintech to Perform from Outperform. The pre-mkt downgrade was made on valuation, however, the analyst still believes in the fintech company’s bullish thesis.

·     Capital One (COF) shares were weaker after the financial holding company filed an 8-K which revealed that May’s trust data showed that credit card delinquencies grew month over month.

·     Bitcoin traded under the $25K level for the first time since March 16th after overnight news that 2 South Korean crypto exchanges had halted withdrawals. The shares of US crypto miner Marathon Ditigal (MARA) warned the public of fraudulent activity being perpetrated in Marathon’s name.



·     •Mersana Therapeutics, Inc. (MRSN), a clinical-stage biopharmaceutical company, saw its shares lose over half their value after announcing that the FDA issued a Partial Clinical Hold on the clinical trials of the company’s NEXT and UPGRADE-A antibody-drug conjugates.


Industrials & Materials

·     Jabil Inc., (JBL) shares moved higher following an earnings report this morning that showed a Q4 EPS and revenue beat but lowered their forward guidance.

·      Goodyear (GT), the tire manufacturer, witnesses a rally in its shares after boutique Gordon Haskett published a note stating that the company may be the focus of an activist investor or “an imminent takeover.” Gordon had mentioned Elliot Associates as the possible activist a month ago.


Technology, Media & Telecom

·     Palantir (PLTR) shares closed above $16 for the first time since January 2022 as an AI technology fueled from early May continued. BofA reiterated their Buy rating and raised their price target to $18, calling the tech company “on of the dominant providers in generative AI.”


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.