Morning Preview: June 14, 2023

Early Look

Wednesday, June 14, 2023









S&P 500










S&P futures holding higher into today’s FOMC meeting, up +0.2% at 4,425 (high 4,428 and low 4,413) where no rate hike is widely expected today; PPI inflation data expected at 8:30. The strength and resiliency of US stocks has been staggering, with stocks surging in June after a strong start to 2023, as the S&P comes into the FOMC meeting up 4.55 MTD, the Nasdaq +4.9% MTD, the Dow (which is up 6-straight days) +3.9% MTD and the Russell 2000 Smallcap index up 8.3% MTD, just halfway thru June. Stock strength was broad based on Tuesday with ten of eleven S&P sectors finishing higher, paced by gains in Materials (+2%), Energy and Technology following tamer CPI inflation and central bank action out of China that boosted growth hopes. Shares of Delta (DAL) and Tesla (TSLA) each posted their 13th straight day of gains on Tuesday as upside momentum continues in many names. In Asian markets, The Nikkei Index surged 483 points to 33,502, the Shanghai Index slipped -4 points to 3,228, and the Hang Seng Index declined -113 points to 19,408. In Europe, the German DAX is up 88 points to 16,319, while the FTSE 100 rises 34 points to 7,629. Oil held on to gains driven by signs China is considering a broad range of stimulus measures to revive its flagging recovery.


Market Closing Prices Yesterday

·     The S&P 500 Index jumped 30.08 points, or 0.69%, to 4,369.01.

·     The Dow Jones Industrial Average rose 145.79 points, or 0.43%, to 34,212.12.

·     The Nasdaq Composite surged 111.40 points, or 0.83%, to 13,573.32.

·     The Russell 2000 Index advanced 23.12 points, or 1.23% to 1,896.03.


Economic Calendar for Today

·     7:00 AM ET             MBA Mortgage Applications Data

·     8:30 AM ET             Producer Price Index (PPI) M/M for May…est. (-0.1%)

·     8:30 AM ET             Producer Price Index (PPI) Y/Y for May…est. +1.5%

·     8:30 AM ET             PPI Ex: Food & Energy M/M for May…est. +0.2%

·     8:30 AM ET             PPI Ex: Food & Energy Y/Y for May…est. +2.9%

·     10:30 AM ET           Weekly DOE Inventory Data

·     2:00 PM ET              FOMC Policy Meeting


Earnings Calendar:

·     Earnings Before the Open: ATEX CODA

·     Earnings After the Close: LEN RFIL POWW


Other Key Events:

·     Deutsche Bank Global Auto Industry Conference, 6-13/6/15, in New York

·     Goldman Sachs 44th Annual Global Healthcare Conference, 6/12-6/15, in CA

·     Goldman Sachs European Financials Conference, 6/13-6/15, in Paris

·     Oppenheimer 2023 Software Bus Tour, 6/12-6/14, in San Francisco, CA

·     Oppenheimer 23rd Annual Consumer Growth & E-Commerce Conference, 6/13-6/14 (virtual)

·     Oppenheimer Annual Semiconductor Bus Tour, 6/14-6/15 – Silicon Valley

·     RothMKM Digital Advertising Summit (virtual), 6/12-6/15

·     Sidoti Small-Cap Conference (virtual), 6/14-6/15

·     China House Prices Y/Y for May, Industrial Output, Retail Sales data





















10-Year Note





Sector News Breakdown


·     Copa Holdings (CPA) said that its capacity (ASMs) for May 2023 rose 15.3% from a year earlier to 2,313.7 million; system-wide passenger traffic (RPMs) was 1,992.6 million in May, up 15.8% from last year; system load factor for the month was 86.1%, 0.4% higher than May 2022.

·     United Natural Foods (UNFI) said it will cut about 150 roles as part of its restructuring effort aimed at consolidating from four operating regions to three; says the initiative is to enhance profitability, speedy decision-making and reduce administrative layers.


Energy, Industrials and Materials

·     Casella Waste (CWST) 5.26M share Secondary priced at $85.50.

·     Shell Plc (SHEL) will increase its dividend by 15% and boost natural gas production as new CEO Sawan refocuses on the fossil fuels that drove record profits last year.

·     TotalEnergies (TTE) signed an agreement with U.S. energy company NextDecade (NEXT) and investment firm Global Infrastructure Partners to jointly develop the first phase of a liquefied natural gas project in Texas. TTE will buy a 17.5% stake in NextDecade for $219 million in three steps as part of the deal, with an initial 5.06% stake already acquired on Tuesday for $40 million.



·     Discover Financial Services (DFS) said May credit card delinquency rate 1.37% at May end vs 1.38% at April end; credit card charge-off rate 1.78% at may end vs 1.78% at April end.



·     UnitedHealth Group (UNH) shares slip over -4% after the managed care giant warned of a Q2 spike in medical costs (comments made at GS conference last night); said there has been a rise in volumes of non-urgent surgeries in second quarter, adding margin pressure to insurers; UNH said it expects pent-up demand to drive up its Q2 medical loss ratio to the high-end or moderately above its full-year outlook of 82.1% to 83.1% (watch ELV, HUM, CI, MOH shares).

·     Acadia Pharmaceuticals (ACAD) announced the addition of a new Phase 3 development candidate to its rare disease portfolio, ACP-101, for the treatment of hyperphagia in Prader-Willi syndrome.

·     Agile (AGRX) said it plans to increase Twirla prescriptions filled through telemedicine platforms that utilize vitaCare, such as Twenty-eight Health; expanding commercial reach through strategic partnerships continues to drive achieving 2023 net revenue in the range of $25-$30 million.

·     PepGen (PEPG) said while it awaits receipt of an official clinical hold letter from the FDA, they are withdrawing prior guidance with respect to the timeline for initiating a Phase 1 study of PGN-EDODM1 in patients with myotonic dystrophy type 1 in the first half of 2023 in any geography.

·     RadNet (RDNT) 7.6M share Spot Secondary priced at $29.75.


Technology, Media & Telecom

·     Advanced Micro Devices (AMD) rises early after Reuters reported Amazon Web Services is considering using new AI chips from AMD, an AWS executive told Reuter; though said AWS has not made a final decision, the executive added.

·     Logitech International (LOGI) shares -10% after saying longtime President and Chief Executive Officer Bracken Darrell would step down.

·     Intevac (IVAC) guides FY23 revenue $43M-$48M vs. est. $37.3M; said plan to ship one TRIO system and remain confident in the significant growth potential ahead for the TRIO, where our joint development agreement continues to progress towards qualification and first purchase order before year-end.

·     Iteris Inc. (ITI) Q4 EPS loss (-$0.01) vs. est. $0.03; Q4 revs rose 24% y/y to $42.4M vs. est. $40.47M; said believe demand environment for smart mobility infrastructure will remain favorable.

·     Vodafone (VOD) shares rise after announcing merger with CK Hutchison of their British operations, creating the UK’s largest mobile operator. The combined business will be called Mergeco; Vodafone will own 51% of the combined business and Hutchison 49%.


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.