Morning Preview: July 17, 2023

Early Look

Monday, July 17, 2023









S&P 500










U.S. futures are edging lower while Asian markets declined on light volumes after Chinese data showed as uneven economic recovery as GDP and retail sales miss estimates while factory output and fixed investment beat. The Japanese Nikkei was closed for holiday while the Shanghai Index dropped -28 points to 3,209, and the Hong Kong cancels trading due to a typhoon. In Europe, the German DAX is down -84 points to 16,020, while the FTSE 100 is down -20 points to 7,413. Stock head into the week riding another winning week as the S&P rose 2.43%, the Dow added 2.30%, and the Nasdaq gained 3.32% last Friday on lower inflation data and expectations the Fed will be “one and done” on rate hikes after next weeks FOMC meeting. Big banks reported better earnings on Friday and managed care giant UNH posted a beat and raise quarter as well as earnings season kicked off on a good note. This week starting tomorrow, more banks and a handful of tech companies are expected to report results as corporate earnings should begin to dominate headlines the next few weeks.


Market Closing Prices Yesterday

·     The S&P 500 Index dipped -4.62 points, or 0.10%, to 4,505.42.

·     The Dow Jones Industrial Average rose 113.89 points, or 0.33%, to 34,509.03.

·     The Nasdaq Composite slipped -24.87 points, or 0.18%, to 14,113.70.

·     The Russell 2000 Index declined -19.80 points, or 1.01% to 1,931.09.


Economic Calendar for Today

·     8:30 AM ET           Empire Manufacturing for July…est. (-4.3)


Earnings Calendar:

·     Earnings Before the Open: GNTY

·     Earnings After the Close: CFB ELS FBK HBCP





















10-Year Note





World News

·     China GDP Grows 6.3% in Second Quarter, Misses Estimate; 2Q GDP expands 6.3%, missing 7.1% estimate; June retail sales rise 3.1% as factory output gains 4.4%; China holds key rate unchanged following June cut; data comes amid pressure for more stimulus to revive growth.


Sector News Breakdown


·     Tesla Inc. (TSLA) built its first Cybertruck, four years after Elon Musk first unveiled the pickup. Tesla shared the development on its Twitter account, posting a photo of workers in vests and helmets gathered around the vehicle.

·     Chewy (CHWY) upgraded to Buy from Neutral at Goldman Sachs and raise tgt to $50.


Energy, Industrials and Materials

·     Globus Maritime (GLBS) files $300m mixed securities shelf.

·     United Airlines Holdings Inc. (UAL) and its pilots’ union reached in principle a new labor agreement that is the richest ever at a US carrier, ending more than four years of negotiations.

·     Virgin Galactic (SPCE) broadens access to space with the first private astronaut mission ‘Galactic 02’; flight window opens August 10th.



·     Mastercard (MA) and Visa (V) mentioned positively in Barron’s noting shares of each have been on a tear-and yet their stocks remain cheap. Investors should take the opportunity to scoop up shares, said the article noting Visa’s current valuation multiple is a premium of about 30% over the S&P 500, half its historical average of roughly 60%. The picture is similar for Mastercard-it’s cheaper relative to the market and its own history than it has been in a while.

·     The US Department of Education will forgive $39 billion in student debt by updating a technical requirement under a long-existing program. The change, announced Friday, will help more than 804,000 borrowers.



·     Zai Lab and Argenx (ARGX) report positive topline data from ADHERE Study of VYVGART Hytrulo in patients with chronic inflammatory demyelinating polyneuropathy; the study met primary endpoint (p=0.000039); VYVGART(R) Hytrulo demonstrated 61% reduction (HR: 0.39 95% CI: 0.25; 0.61) in risk of relapse versus placebo

·     BridgeBio Pharma (BBIO) shares rose 14% after the company said it would share results from the latest phase of its transthyretin amyloid cardiomyopathy heart disease study. The commercial-stage biopharmaceutical company is set to make public findings from the phase 3 ATTRibute-CM clinical study during an investor call on Monday.

·     Pfizer’s (PFE) proposed $43 billion takeover of Seagen Inc. (SGEN) will face an investigation from the EU’s merger enforcers as the bloc continues to scrutinize large biotechnology deals. Seagen disclosed in a regulatory filing that both firms referred the deal to the European Commission.


Technology, Media & Telecom

·     AT&T (T) downgraded to Neutral from Buy and cut tgt to $16 from $22.

·     Baidu (BIDU) upgraded to Conviction Buy from Buy at Goldman Sachs and raised the price tgt to $197 from $183.

·     Frontier (FYBR) mentioned positively in Barron’s saying with a new management team and a refreshed balance sheet, the shares look attractive as the company progresses toward its goal of 10 million fiberoptic locations connected to its network.

·     Microsoft (MSFT) said it reached a binding agreement with Sony to keep the ‘Call of Duty’ video game franchise on the PlayStation platform.

·     Paramount Global’s (PARA) Shari Redstone’s National Amusements is in talks with creditors to renegotiate some of its debt, the Wall Street Journal reported late Friday afternoon.

·     Stratasys Ltd. (SSYS) rises after saying it has determined that the recently raised cash-and-stock buyout bid from 3D Systems Corp. (DDD) is likely a “superior proposal” as defined by its merger agreement with Desktop Metal (DM). Stratasys said it will “engage in discussions” with 3D Systems regarding its unsolicited bid. Separately, Stratasys said it “unanimously rejects” the cash partial tender offer from Nano Dimension (NNDM)

·     ViaSat Inc (VSAT) files for resale of up to 2.56 mln shares of common stock by the selling shareholders – SEC filing.


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.