Mid-Morning Look: March 20, 2024

Mid-Morning Look

Wednesday, March 20, 2024





DJ Industrials




S&P 500








Russell 2000






As expected, U.S. stocks are little changed to start the day, with investors anxiously awaiting results from the 2-day FOMC meeting at 2:00 PM ET and Fed Chairman Powell press conference at 2:30 PM. No rate changes are expected into the headlines, with fed fund futures now looking to June as the first possible rate cut. Markets will closely watch Powell comments especially pertaining to inflation after the last two CPI/PPI reports disappointed markets with back-to-back “hot” readings, raising fears rate cuts will be pushed out further. The U.S. dollar strong +0.3% above 104 into the FOMC today – now up 1.7% off the recent 3/8 low. Treasury yields are steady after rising last week, as the 10-yr sits at 4.3%. Reminder the S&P 500 closed at record highs on Tuesday, with investors showing no concern heading into the Fed meeting. Early sector leaders include Utilities (XLU), Consumer Discretionary (XLY), and Industrials (XLI), while Energy (XLE) and Healthcare (XLV) are down the most. In the AI space, Astera Labs’ (ALAB) 19.8M share IPO priced at $36.00, above its expected $32.00-$34.00 range, but indicated to open much higher.






WTI Crude















10-Year Note




Sector Movers Today

  • In Luxury retail: Kering (PPRUY) shares fell after the luxury retailer warned its Q1 sales are likely to drop by around 10% when the company booked revenue of EUR5.01 billion, weighed down by star label Gucci due to weakness in Asia (said Gucci, sales are expected to decline by nearly 20% on year). Recall shares of comp Burberry (BURBY) had issued a profit warning in January (shares of TPR, RL, CPRI were active)
  • In Paper & Forest Products: IP was upgraded to Buy at Citigroup following the naming of Andy Silvernail as CEO; Mr. Silvernail formerly served as CEO of IDEX (2011-20) and joins from KKR, where he was an executive advisor noting Mr. Silvernail is an outsider and a potential change agent; Truist reiterated Buys on BCC and LPX noting the US Census Bureau and Department of Housing and Urban Development released its monthly new residential construction report for February, including single-family housing starts, which increased 12% m/m (+~35% y/y), positive for Wood Products & Timber. AMCR CEO Ron Delia’s announced retirement and reaffirmed FY24 guidance.
  • Digital Advertising (TTD, ROKU, NFLX): Piper noted the digital ad market once again improved exiting the month of February, market spend growth was 60 basis points higher than expected in February, helping to push Q1 spend growth estimates 70 basis points higher to 9.3% Y/Y. Trade Desk total spending by Piper’s digital ad expert came in 100+ basis points above expectations for February and March monthly estimates.
  • In Refiners: Wells Fargo raises price targets on U.S. refiners given higher 2025 core profit refining valuation multiples; DK to $26 from $21, MPC to $214 from $183, PBF to $65 from $64, PSX to $179 from $163, and VLO to $171 from $138. The firm said transportation fuel demand YTD is up 0.4% in 2024; gasoline inventories YTD have declined 11 million barrels of oil (mmbbls) vs. 10-year average of 0.9 mmbbls.



  • CMG +6%; announced a 50 for 1 stock split, sending shares higher.
  • GIS +2%; reported a smaller-than-expected drop in Q3 sales (fell -1% vs. est. -3.1%) and beat profit estimates (EPS $1.17 vs. est. $1.05) citing steady demand for its high-priced food products as gross margin expanded 100 bps.
  • INTC +1%; and the White House announce preliminary terms for up to $8.5B in direct funding under CHIPS and Science act.
  • MBLY +5%; on news it will provide driving assistance software to Volkswagen’s luxury brands such as Audi, Bentley, Lamborghini, and Porsche
  • MODG +10%; after South Korean newspaper The Chosun Daily reported that the golf equipment company could be up for sale. No other major media source has confirmed the report yet. https://tinyurl.com/45d3rkyc
  • PDD +3%; as reported stronger-than-expected revenue as it ramped up its overseas expansion; Q4 adj EPS $2.40 tops consensus $1.61; Q4 revenue $12.52B vs. est. $11.14B; Q4 results beat driven by robust user growth and sales on its global platform, Temu.
  • SLRN +3%; positive early-stage study data of its experimental drug, lonigutamab, to treat thyroid eye disease saying the drug helped in reducing eye swelling within three weeks after first dose with no serious adverse events.
  • TSHA +19%; reported Q4 earnings, full-year revs $15.45M topping $14.5M estimate and issued an update on the Phase 1/2 AAV-based gene therapy, TSHA-102 for Rett syndrome.



  • AQST -14%; 16.667M share Spot Secondary priced at $4.50.
  • BNTX -8%; posted Q4 results that fell sharply to miss expectations, hurt by inventory write-downs by COVID-19 vaccine collaboration partner PFE; Q4 net profit dropped to EUR457.9M ($496.5M) and missed consensus of EUR2.37; Q4 revs sank 65.4% to EUR1.48B ($1.60B), below the consensus of EUR1.84B.
  • EQIX -4%; mentioned negatively by short seller Hindenburg Research saying their investigation revealed that Equinix manipulates its accounting for AFFO, the key profitability metric for REITs (said they estimate this metric was overstated by at least 22% in 2023 alone) https://hindenburgresearch.com/equinix/
  • JKS -8%; following Q4 results and guidance in solar sector.
  • NYXH -12%; announced top line data from their U.S. DREAM pivotal sleep apnea trial. Encouragingly, the data hit the trial’s primary endpoints (AHI and ODI), which will allow Nyxoah to file its fourth (and final) PMA module, and the company expects FDA approval in late-2024/early-2025 (shares of INSP down in sympathy, has STAR trial).
  • SIG -12%; after results/guidance as sees FY25 sales between $6.66B-$7.02B below consensus of $7.17B and Q1 sales between $1.47B-$1.53B vs. est. $1.61B and expects annual same store sales to decline between 11% and 7%; raises share buyback plan.
  • SMCI -3%; announced an underwritten public offering of 2M shares at a public offering price of $875.00 per share.


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.