Morning Preview: June 18, 2024

Early Look

Tuesday, June 18, 2024









S&P 500










U.S. futures are looking slightly higher, with the S&P up, but just below yesterday intraday highs as markets await Retail Sales data for May at 8:30 AM and commentary from several Federal Reserve officials. There were broad gains for U.S. stock again on Monday as the Nasdaq posted its 6th straight record closing high, the Dow Jones Industrial Average ended up nearly 200 points snapping a 4-day losing streak and the S&P 500 also record a new record (30th this year) as momentum in technology stocks drove gains yet again. Stocks saw big gains last week amid tamer inflation readings (CPI and PPI for May) and incredible upside momentum in tech stocks after better results from AVGO, ORCL, and ADBE and as AAPL surged to record highs after the co unveiled a long-awaited AI strategy, integrating “Apple Intelligence” tech across its suite of apps. The moves, coupled with a massive surge in semis (NVDA, ARM, QCOM), as the SOX is up 34% YTD after a +40% jump in 2023. @MikeZaccardi tweets: “More near-record buybacks: BofA Corp. client buybacks last week were the third largest in our weekly history since ’10.” Stocks have been in full swing higher, massive momentum in some of the largest tech stocks in the world heading into the mid-year index rebalances and summer lull with no fear at all as the CBOE Volatility index (VIX) remains depressed. In Asian markets, The Nikkei Index jumped 397 points to 38,482, the Shanghai Index gained 14 points to 3,030, and the Hang Seng Index fell -20 points to 17,915. In Europe, the German DAX is up 73 points to 18,141, while the FTSE 100 rises 33 points to 8,175. Copper prices are down around -2% and now off about 15% from their May record highs. Reminder that U.S> stock markets are closed tomorrow for holiday.


Market Closing Prices Yesterday

  • The S&P 500 Index jumped 41.63 points, or 0.77%, to 5,473.23.
  • The Dow Jones Industrial Average rose 188.94 points, or 0.49%, to 38,778.10.
  • The Nasdaq Composite surged 168.14 points, or 0.95%, to 17,857.02.
  • The Russell 2000 Index advanced 15.85 points, or 0.79% to 2,022.01.

Economic Calendar for Today

  • 7:45 AM ET ICSC Weekly Retail Sales
  • 8:30 AM ET                  Retail Sales M/M for May…est. +0.2%
  • 8:30 AM ET                  Retail Sales – Less Autos M/M for May…est. +0.2%
  • 8:55 AM ET                  Johnson/Redbook Weekly Sales
  • 9:15 AM ET                  Industrial Production M/M for May…est. +0.3%
  • 9:15 AM ET                  Capacity Utilization for May…est. 78.6%
  • 10:00 AM ET                Business Inventories M/M for April…est. +0.3%
  • 10:00 AM ET                Fed’s Barkin Discusses US Economy, Fed
  • 1:00 PM ET U.S. Treasury to sell $6B in 20-year notes.
  • 1:00 PM ET                   Fed’s Logan Speaks in Q&A
  • 1:00 PM ET                   Fed’s Kugler Speaks on Economy, Monetary Policy
  • 2:00 PM ET                   Fed’s Goolsbee Speaks in Panel Discussion
  • 4:00 PM ET                   Net Long-term TIC Flows for April
  • 4:30 PM ET API Weekly Inventory Data

Earnings Calendar:

  • Earnings Before the Open: CRMT PDCO VNCE
  • Earnings After the Close: KBH





















10-Year Note




World News

  • Australia Central bank (RBA) left its benchmark interest rate unchanged at 4.35% saying they are “not ruling anything in or out” to ensure inflation returns to target in reasonable timeframe; Board is resolute in determining returning CPI to target; need to be confident inflation is moving sustainably to target; it’ll sometime yet before inflation is sustainably in target; inflation remains above target and is proving persistent; process of returning CPI to target not likely to be smooth; medium-term inflation expectations are consistent with target.
  • Federal Reserve Bank of Philadelphia President Patrick Harker said he sees one interest-rate cut as appropriate for this year based on his current forecast, underscoring the message that high interest rates are likely to persist. Harker said a recent report showing consumer prices cooled in May was “very welcome.”

Sector News Breakdown


  • La-Z-Boy (LZB) Q4 adj EPS $0.95 vs est. $0.70 on sales $554Mm vs est. $516.44Mm, adj op mgn 9.4%; guides Q1 sales $475-495Mm vs est. $475.65Mm, adj op mgn 6-7%, expect Q1 to be lowest sales and margin quarter of the year.
  • Lennar (LEN) Q2 EPS $3.45 vs. est. $3.24; Q3 revs rose 9.6% y/y to $8.77B vs. est. $8.57B; Q2 New orders increased 19% to 21,293 homes, backlog of 17,873 homes with a dollar value of $8.2 billion, Q2 deliveries increased 15% to 19,690 homes, Q2 gross margin on home sales of 22.6% vs. 22.5% y/y; guides Q3 new orders 20,500-21,000, vs. est. 21,095.
  • Chegg (CHGG) announces restructuring plan and new vision for growth; expects $40M-$50M savings in 2025; said restructuring includes departure of 441 employees, which represents 23% of Chegg’s global workforce.
  • Fisker Group (FSRN), the operating subsidiary of Fisker, announced that it filed for Chapter 11 protection in the District of Delaware on June 17, 2024.
  • Kroger (KR) upgraded to Outperform from Market Perform at BMO Capital.
  • Philip Morris International Inc. (PM) stopped online sales of its popular nicotine pouch brand Zyn in the US after an affiliate received a subpoena in the District of Columbia.

Energy, Industrials and Materials

  • A Boeing Co. (BA) quality inspector alleged that the planemaker mishandled and lost track of hundreds of faulty parts, some of which he said may have been installed on new 737 Max planes, the latest revelation by a whistleblower pointing out possible misconduct at the manufacturer – Bloomberg.
  • Cheniere Energy Inc (LNG) increasing share repurchase authorization by an additional $4B through 2027; plan to increase Q3 2024 dividend by about 15% to $2.00 per common share annualized.
  • State-run Coal India Ltd is exploring lithium blocks in Argentina along with a U.S. company to secure supplies of the battery material, an Indian source with direct knowledge said on Tuesday – Reuters.
  • XP Power (XPPLF) shares dropped as much as 24% in early trade on Tuesday after Advanced Energy Industries (AEIS), dropped a possible 468 million pound ($593.8 million) offer for the power converter solutions provider.


  • Veris Residential (VRE) said “following careful consideration of all relevant factors, consistent with our disciplined approach and with the best interests of our shareholders in mind, we have made the decision to withdraw our previously announced public offering of common stock.”
  • Wolfe Research LLC hired top—ranked oil and gas analyst Doug Leggate from Bank of America Corp. (BAC) as the privately-held company bulks out its sell-side energy research. Leggate, who led Bank of America’s global oil and gas coverage from Houston, will start in his new role in the third quarter of this year – Bloomberg.


  • KalVista Pharmaceuticals, Inc. (KALV) announced the submission of a New Drug Application (NDA) for U.S. FDA review of sebetralstat, a novel investigational oral plasma kallikrein inhibitor for the on-demand treatment of hereditary angioedema (HAE) attacks in adults and pediatric patients aged 12 years and older.
  • UroGen Pharma (URGN) 5M share Spot Secondary priced at $17.50.
  • The U.S. state of Kansas sued Pfizer (PFE), accusing the company of misleading the public about its COVID-19 vaccine by hiding risks while making false claims on its effectiveness.

Technology, Media & Telecom

  • Nvidia (NVDA) to get 20% weighting and billions in investor demand, while Apple (AAPL) demoted in major tech fund ‘; Microsoft and Nvidia will likely have a weight of around 21% in this tech ETF, while Apple will be down to about 4.5%, according to Matthew Bartolini, head of SPDR Americas Research; The rebalance will be in effect for one quarter, even if Apple outperforms Nvidia significantly ahead of the official date – CNBC.
  • Esports platform Brag House Holdings has filed for an initial public offering of 1.6 million shares at an expected price of $5 apiece; the company said it expects net proceeds of about $6.21 million – Reuters.


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.