Morning Preview: August 30, 2023

Early Look

Wednesday, August 30, 2023









S&P 500










U.S. futures are looking slightly lower following a massive broad-based rally on Tuesday, with the S&P posting its biggest one-day gain since late June. Florida’s west coast is about to be impacted by Hurricane Idalia as it strengthened into a Category 4 storm and headed toward landfall. Nasdaq futures looking lower following disappointing earnings/results from AMBA, BOX, and HPQ last night in tech. In Asian markets, The Nikkei Index rose 106 points to 32,333, the Shanghai Index was little changed at 3,137, and the Hang Seng Index was also unchanged at 18,482. In Europe, the German DAX is down -50 points to 15,880, while the FTSE 100 rises 20 points to 7,484. European stocks fell after Spanish and German inflation data kept the possibility of another ECB rate hike firmly on the table. The yen weakens against the dollar as US Treasury yields rise, with investors waiting for ADP employment data. U.S.-listed shares of Chinese companies fall premarket amid geopolitical, property market worries after U.S. Commerce Secretary Gina Raimondo said American firms say China has become “uninvestable” (follows back-to-back days of strength in Asian markets).


Market Closing Prices Yesterday

·     The S&P 500 Index gained 292.89 points, or 1.45%, to 4,497.77.

·     The Dow Jones Industrial Average rose 292.89 points, or 0.85%, to 34,852.87.

·     The Nasdaq Composite surged 238.63 points, or 1.74%, to 13,943.76.

·     The Russell 2000 Index advanced 26.53 points, or 1.42% to 1,895.54.


Economic Calendar for Today

·     7:00 AM ET            MBA Mortgage Applications Data

·     8:15 AM ET            ADP Employment Index for August…est. 195K

·     8:30 AM ET            Gross Domestic Product (GDP) Q2 second estimate…est. +2.4%

·     8:30 AM ET            GDP Q2 Consumer Spending…prior 1.6%

·     8:30 AM ET            GDP Price Deflator for Q2…est. +2.2%

·     8:30 AM ET            GDP PCE Prices Q2-prelim…est. +2.6%

·     8:30 AM ET            GDP Core PCE Prices for Q2-prelim…est. +3.8%

·     8:30 AM ET            Advance Goods Trade Balance for July

·     10:00 AM ET          Pending Home Sales M/M for July

·     10:30 AM ET          Weekly DOE Inventory Data


Earnings Calendar:

·     Earnings Before the Open: BF/B CONN HOV MCFT REX VRA



Other Key Events:

·     China NBS Manufacturing PMI for August

·     Deutsche Bank 2023 Technology Conference, 8/30-8/31, in Dana Point, CA

·     Piper 2023 Texas Bank Tour, 8/28-8/30, in Dallas, TX

·     Stephens Restaurant Investor Field Trip, 8/28-8/30

·     Stifel Tech Executive Summit Deer Valley, 8/28-8/30, in Utah

·     William Blair West Coast Med Tech & Life Sciences Field Trip, 8/28-8/31 in San Diego





















10-Year Note





World News

·     Japanese Prime Minister Fumio Kishida said the government plans to introduce new subsidies next month to bring down record gasoline prices that have added to stubbornly high inflation.

·     UK home sales are on course to fall -21% to the lowest level seen since 2012 due to higher interest rates.


Sector News Breakdown


·     PVH Corp. (PVH) Q2 adj EPS $1.98 vs est. $1.76 on revs $2.207B vs est. $2.19B, adj EBIT $182Mm vs est. $174.86Mm; guides FY revs +3-4% (+2-3% const currency) vs est. +3.69% and adj EPS approx $10.35 vs prior approx $10.00 and est. $10.02.

·     Hyundai Motor Group said that it would acquire a 5% stake in Korea Zinc for 527.2 billion won ($397.74 million).

·     Toyota Motor (TM) has resumed production of Toyota and Lexus vehicles at 12 of its 14 plants in Japan following a system malfunction which prevented the ordering of parts – Nikkei reports.

·     In July, the EU car market continued its growth trajectory, expanding by 15.2%, marking “the twelfth consecutive month of growth; new car registrations reached 851,156 units as the bloc recovers from last year’s component shortages.


Energy, Industrials and Materials

·     America Woodmark (AMWD) Q1 adj EPS $2.78 vs. est. $2.30; Q1 revs $498.3M vs. est. $497.38M; sees FY24 revenue down low double digits, and boosts FY24 adjusted EBITDA view to $225M-$245M from $205M-$225M.

·     Cleveland-Cliffs Inc. (CLF) announced that it has reached a tentative agreement with the United Steelworkers (USW) on a new 3-year labor agreement. The new contract will cover approximately 430 USW-represented workers at Cliffs’ Northshore Mine in Minnesota.

·     U.S. Steel (X) has entered into confidentiality agreements with “numerous third parties” and started to review multiple unsolicited proposals ranging from partial acquisition to an entire buyout, the company said in a letter to its stockholders on Tuesday.

·     AAR Corp. (AIR) has signed two multi-year commercial agreements with Moog (MOG.A). The agreements are the first steps in a new strategic relationship that allows for potential future expansion of the scope of services provided.

·     The American Petroleum institute weekly inventories showed Crude drawdown of -11.5m barrels, Cushing -2.2m, Gasoline +1.4m, Distillate +2.5m.



·     FibroGen (FGEN) announces topline results from LELANTOS-2, a phase 3 clinical study of Pamrevlumab in ambulatory Duchenne Muscular Dystrophy (DMD) saying the study did not meet the primary endpoint — Pamrevlumab was generally safe and well tolerated.

·     Emergent BioSolutions Inc. (EBS) said its Narcan nasal spray that’s an antidote for an opioid overdose will be available without a prescription starting in September; said Narcan will have a suggested retail price of $44.99 a carton, or $22.50 per dose. The company has shipped Narcan to leading drug, pharmacy, and grocery stores.

·     Johnson & Johnson (JNJ) announces updated financials and 2023 guidance following completion of the Kenvue (KVUE) separation; expects 2023 adjusted reported earnings per share (eps) of $10.00 – $10.10; maintains its quarterly dividend of $1.19 per share.

·     Outlook Therapeutics Inc.’s stock (OTLK) tumbled 71% after saying the FDA has issued a Control Response Letter (CRL) for the company’s Biologics License Application for a treatment for wet age-related macular degeneration.


Technology, Media & Telecom

·     Ambarella (AMBA) shares fall -13% overnight on guidance; Q2 adj EPS ($0.15) vs est. ($0.21) on revs $62.121Mm vs est. $62.05Mm, adj gross margin 64.6%; guides Q3 revs $50Mm +/- 4% vs est. $67.6Mm, adj gr mgn 62-64%, adj op exp $46-49Mm.

·     Box Inc. (BOX) Q2 adj EPS $0.36 vs. est. $0.35; Q2 revs rose 6% y/y to $261.4M vs. est. $261.12M; expands stock buyback program by $100M; Q2 GAAP Operating Margin of 4%, Non-GAAP Operating Margin of 25%, both exceeding guidance; Q2 billings fell -1% y/y to $232.5M; raises low end of year profit view to $1.46-$1.50 from prior $1.44-$1.50.

·     Hewlett Packard Enterprises (HPE) Q3 adj EPS $0.49 vs est. $0.47 on revs $7.0B vs est. $6.986B, adj gr mgn 35.9%; guides Q4 revs $7.2-7.5B vs est. $7.491B, ARR 35-45% CAGR FY22-25, sees Q4 adj EPS $0.48-0.52 vs est. $0.49 and FY adj EPS $2.11-2.15 vs est. $2.11.

·     Hewlett Packard (HPQ) Q3 adj EPS $0.86 vs. est. $0.85; Q3 revs -9.9% y/y to $13.2B vs. est. $13.38B; cuts FY adj EPS view to $3.23-$3.35 from $3.30-$3.50 prior (est. $3.34) and guides FY free cash flow view to low end of prior $3B-$3.5B guidance.

·     nCino (NCNO) Q2 adj EPS $0.09 vs est. $0.07 on revs $117.236Mm vs est. $114.97Mm; sees Q3 revs $120-121Mm vs est. $121.44Mm, adj op Inc $13-15Mm and adj EPS $0.10-0.12 vs est. $0.12; sees FY revs $475-478.5Mm vs est. $476.79Mm, and adj EPS $0.38-0.41 vs est. $0.38.

·     Globalstar (GSAT) rises as the company named former CEO and executive chairman of Qualcomm, Paul Jacobs, as its new CEO.


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.