Morning Preview: December 11, 2023

Early Look

Monday, December 11, 2023









S&P 500










U.S. futures are edging lower following mixed results overseas, as European markets slip while Asian markets rebound to finish mostly higher, and the dollar is flat ahead of a big week on US inflation data. It was another solid performance for U.S. stocks last week as the S&P 500 closed at its highest since March 2022, rising 0.2% on the week with a strong Friday performance while the Nasdaq 100 closes at its highest levels since January 2022 after rising 0.69% on Friday. The S&P 500 notched its sixth straight week of gains, longest since streak ended November 2019 amid a lower inflation reading (UoM inflation expectations) and what the media called another “goldilocks” jobs report – not too “hot” as headline jobs rose, and unemployment rate fell and not too “cold” as revisions the last 2-months were lower, and wages edged higher m/m. This leaves the S&P higher heading into the final FOMC meeting of the year this Wednesday where Wall Street has been betting on a more dovish stance. In Asian markets, The Nikkei Index advanced 483 points to 32,791, the Shanghai Index rose 21 points to 2,991, and the Hang Seng Index dropped -132 points to 16,201. In Europe, the German DAX is down -13 points to 16,745, while the FTSE 100 is down -55 points to 7,500. The Japanese yen extended declines on reports the Bank of Japan see little need to rush into scrapping negative rates (USD/JPY rises 0.9% to trade around 146.20). European stocks are little changed, hovering near their highest since February 2022. Treasuries decline, pushing US 10-year yields up 2bp to 4.25%. This week jam packed including 3 bond auctions (3-yr, 10-yr and 30-yr), the Nov CPI data on Tuesday, Nov PPI on Wednesday and then the FOMC meeting on Wednesday afternoon followed by Fed Chairman Powell’s press conference. Bitcoin -5% at $42,300 in sharp volatility overnight (fell -$2,000 quickly overnight from $43,200 to lows around $41K before partially rebounding).


Market Closing Prices Yesterday

·     The S&P 500 Index gained 18.78 points, or 0.41%, to 4,604.37.

·     The Dow Jones Industrial Average rose 130.49 points, or 0.36%, to 36,247.87.

·     The Nasdaq Composite gained 63.98 points, or 0.45%, to 14,403.97.

·     The Russell 2000 Index advanced 12.57 points, or 0.67% to 1,880.82.


Economic Calendar for Today

·     10:00 AM ET                Employment Trends for November

·     1:00 PM ET                   US Treasury to sell $40B in 10-year notes.


Earnings Calendar:

·     Earnings Before the Open: None

·     Earnings After the Close: BLBD CASY EMKR MAMA


Other Key Events:

·     Oppenheimer 5G Summit: The Revolution Continues, 12/11





















10-Year Note





World News

·     WSJ’s Nick Timiraos reported: Fed officials aren’t likely to entertain serious conversations about when to cut rates this week-and potentially for several months unless the economy weakens more than expected. Still, they don’t think rates need to remain at their current, economically restrictive setting indefinitely. Officials’ updated rate projections, to be released Wednesday after their meeting, will show that most expect to cut rates somewhat next year.


Sector News Breakdown


·     An investor group has made a $5.8 billion offer to buy Macy’s (M) the WSJ reported. Arkhouse Management and Brigade Capital Management on Dec. 1 submitted a proposal to acquire the shares they don’t already own for $21 a share

·     Domino’s Pizza (DPZ) downgraded to Neutral from Overweight at Piper.

·     Gildan Activewear (GIL) announces leadership changes – Vince Tyra Appointed as President and CEO; Glenn Chamandy Leaving.

·     Kraft Heinz (KHC) upgraded to Outperform from in-line at Evercore ISI.

·     WingStop (WING) downgraded to Hold from Buy at Benchmark.


Energy, Industrials and Materials

·     Parsons (PSN) awarded $21M USACE contract for munitions response geophysics.



·     W. R. Berkley (WRB) said to pay a special cash dividend of 50c per share.



·     Cigna (CI) announced an additional $10B stock buyback, bringing its total share repurchase to $11.3B. Separately, the WSJ reported that Cigna and Humana (HUM) could not agree to financial terms of an M&A deal, and that Cigna is shifting its efforts toward a smaller acquisition.

·     Harpoon Therapeutics (HARP) files for secondary offering of up to 25.8 mln shares of common stock.

·     HCA Healthcare Inc. (HCA) mentioned positively in Barron’s saying shares look like a buy, even as it underperforms stocks broadly. Fear from investors that a new class of weight-loss drugs such as Ozempic will cut into demand is subsiding.

·     SmileDirectClub (SDCCQ) said that it would wind down global operations, effective immediately. SmileDirectClub said its aligner treatment is no longer available through its telehealth platform and that customer care support is no longer available. SmileDirectClub entered chapter 11 in September, succumbing to weakening sales and mounting lawsuits.

·     Australian drug supplier Sigma Healthcare agreed to merge with privately owned pharmacy operator CW Group, saying it would pay A$700 million in cash and issue sufficient new shares.


Technology, Media & Telecom

·     Shari Redstone is in talks to sell the controlling interesting in Paramount (PARA) parent National Amusements to media and entertainment company Skydance, Puck and the New York Times reported Sunday. On Friday, shares of Paramount Global Inc. rallied 13% after Deadline reported Skydance and private-equity firm RedBird Capital were kicking the tires on National Amusement, which has a 77% stake in Paramount.

·     Sea Ltd (SE) shares slip after reports TikTok to spend $1.5 billion taking over GoTo’s Indonesia Shop; Chinese firm will combine its shopping business with GoTo unit; TikTok has used Indonesia as template for global shopping push

·     Pinterest (PINS) upgraded to Outperform from Sector Perform at RBC Capital and raised its price tgt to $46 from $32.


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.