Mid-Morning Look: June 26, 2023

Mid-Morning Look

Monday, June 26, 2023

Index

Up/Down

%

Last

 

DJ Industrials

-37.73

0.11%

33,689

S&P 500

2.99

0.07%

4,351

Nasdaq

33.71

0.25%

13,526

Russell 2000

13.29

0.73%

1,834

 

 

U.S. stocks opened the new trading week with caution, but dip buyers quickly jumped in (again), as major averages seeing strength at the open after the Nasdaq snapped an 8-straight week advance and S&P snapped its 5-week win streak on Friday. Uncertainties out of Russia added to global concerns initially as well as slowing growth concerns given recent central bank rate hikes overseas…but was quickly erased. Meanwhile, the VIX retreated below 14 after climbing to 14.71 following the weekend Russian turmoil. Dow Transports outperform, rising around 1% to its best levels since early March, while Smallcaps also leading early, as the Russell 2000 outperforms large caps. Energy is the top S&P sector followed by Technology and REITs, while Healthcare -1.15% and Staples lead the declines. Philly semi-index (SOX) leading the rally in tech again, up 2% to 3,575. Individual news stories for the most part quiet, but a few key movers listed down below.

 

 

Macro

Up/Down

Last

 

WTI Crude

-0.03

69.13

Brent

0.34

74.19

Gold

4.40

1,934.00

EUR/USD

0.0019

1.0907

JPY/USD

-0.10

143.58

10-Year Note

-0.012

3.727%

 

 

Stock GAINERS

·     LCID +13%; takes a 3.7% stake in luxury car maker Aston Martin under a deal that will see the electric vehicle start-up supplying the car maker with batteries and other technology.

·     MLTX +60%; following positive Phase II data over the weekend saying Sonelokimab (SLK) phase 2 HS trial met its primary endpoint of HiSCR75 at 12 weeks.

·     MRNA +2%; upgraded to Buy from Neutral at UBS but cut tgt to $191 from $221 citing valuation, pipeline progress with line of sight to the next generation of mRNA vaccines beyond COVID.

·     PACW+4%; as ARES announced that certain funds managed by its Alternative Credit strategy have completed the acquisition of a $3.5 billion specialty finance loan portfolio from PACW

·     SLG +18%; announced that it has sold a 49.9% interest in 245 Park Avenue to a U.S. affiliate of Mori Trust Co., Ltd. at a gross asset valuation of $2.0 billion.

·     WOLF +4%; after announced a $1.25 billion secured note financing from an investment group led by APO, with an accordion feature for up to an additional $750 million.

 

Stock LAGGARDS

·     AVTX -86%; after saying its experimental therapy AVTX-002 did not meet the main goal measured by reduction in asthma-related events compared to placebo.

·     CCL -9%; earnings and sales beat but forecast Q3 adj profit marginally below estimates amid higher marketing and labor costs; said booking volumes for the second quarter scaled a new peak, shattering record volumes seen in the first quarter.

·     FGEN -77%; after saying its experimental drug, pamrevlumab, to treat a type of lung disease (IPF) failed to meet its main goal in phase III trial study and said it plans to discontinue a second late-stage trial on the drug for treating idiopathic pulmonary fibrosis.

·     GOOGL -1%; downgraded from Buy to Neutral at UBS while raise tgt to $132 from $123 given it’s difficult to see upside to its current high-single-digit Sites growth estimates.

·     MRCY -9%; after its Board noted following a comprehensive review of strategic alternatives, the company’s strategic plan under a refreshed leadership team represents the best path forward.

·     PFE 5%; said is discontinuing its once-daily oral GLP-1 agonist lotiglipron, in favor of twice-daily danuglipron but is now also developing a once-daily “modified release version” of danuglipron.

·     TSLA -1%; downgraded to Neutral from Buy at Goldman Sachs, but raises its EPS, target multiple (45x to 55x) and price target from $185 to $248.

_________________________________________________________________

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.