Morning Preview: June 21, 2023

Early Look

Wednesday, June 21, 2023









S&P 500










U.S. futures are looking flat to slightly higher after posting modest losses on Tuesday, trading in a narrow 15-point range overnight as investors wait for Fed Chair Powell to testify at US House Committee later this morning (10:00 AM ET). U.S. stocks dipped for a second straight day on Tuesday, closing in negative territory as investors began the holiday-shortened week by taking profits in the wake of a sustained rally amid signs of weakening global demand and ahead of Fed Chairman Jerome Powell’s congressional testimony Wednesday which could be a potential market mover. All three major U.S. equity indexes ended the session in the red but off session lows, with energy and material stocks falling the most. The broad sell-off comes on the heels of the Nasdaq’s longest weekly winning streak since March 2019 (8-weeks), and the S&P 500’s longest since November 2021 (currently 5-weeks). Bitcoin rose as much as 5% Tuesday, crossing $28,000 for the first time since May. The Dollar is modestly firmer against the majority of its G10 peers and almost flat versus the rest of them. In Asian markets, The Nikkei Index advanced 186 points to 33,575, the Shanghai Index fell -42 points to 3,197, and the Hang Seng Index dropped -388 points to 19,218. In Europe, the German DAX is up 20 points to 16,131, while the FTSE 100 is little changed at 7,572. In stock news overnight, package delivery giant Fed-Ex (FDX) reported weaker quarterly revs and lower guidance, pushing shares lower overnight.


Market Closing Prices Yesterday

·     The S&P 500 Index dropped -20.79 points, or 0.47%, to 4,388.80.

·     The Dow Jones Industrial Average fell -245.25 points, or 0.72%, to 34,053.87.

·     The Nasdaq Composite slipped -22.28 points, or 0.16%, to 13,667.29.

·     The Russell 2000 Index declined -8.77 points, or 0.47% to 1,866.70.


Economic Calendar for Today

·     7:00 AM ET             MBA Mortgage Applications Data

·     8:55 AM ET             Johnson/Redbook Weekly Sales

·     10:00 AM ET           Fed Chair Powell to testify at US House Committee

·     12:25 PM ET           Fed’s Goolsbee Speaks at Global Food Forum

·     1:00 PM ET             US Treasury to sell $15B in 20-year notes.

·     4:30 PM ET             API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: WGO

·     Earnings After the Close: EPAC KBH SCS


Other Key Events:

·     Bank America EU Tech, Media, Telecom Conference, 6/20-6/21, in London

·     Goldman Sachs Business Services, Transport & Leisure Conference, 6/19-6/21, in London

·     Jefferies Nantucket Consumer Conference, 6/20-6/21, in Nantucket, MA

·     JP Morgan Energy, Power, & Renewables Conference, 6/20-6/22, in New York

·     Maxim Healthcare Conference (virtual), 6/20-6/21

·     Truist Healthcare Disruptors & Digital Health Summit, 6/21-6/22, in New York





















10-Year Note





World News

·     UK CPI remained at 8.7% YoY in May against the consensus expectation for a fall to 8.4%; core CPI unexpectedly accelerated to 7.1% YoY from 6.8% YoY.


Sector News Breakdown


·     Tesla (TSLA) CEO Elon Musk said last night India’s Prime Minister Narendra Modi was pushing the company to make a “significant investment” in the country, adding that such an announcement was expected soon.

·     China unveiled a 520-billion-yuan ($72.3 billion) package of tax breaks over four years for electric vehicles (EVs) and other green cars (watch share of TSLA, NIO, LI, XPEV).

·     La-Z-Boy (LZB) 4Q adj EPS $0.99 vs est. $0.72 on revs $561Mm vs est. $533Mm, adj op mgn 9.8%, retail segment comps flattish; says in FY24 expect to grow ahead of industry from normalized base with 2H stronger than 1H; sees 1Q sales $470-490Mm vs est. $522.45Mm and operating margin 6.5-7.5%.

·     Dollar Tree (DLTR) reaffirms targets as still sees FY23 EPS view $5.73-$6.13 (est. $6.01) and still sees FY23 revenue view $30.0B-$30.5B (est. $30.36B).

·     Beauty Health (SKIN) downgraded to Hold from Buy at Stifel and cut tgt to $10 from $17.


Energy, Industrials and Materials

·     FedEx (FDX) shares fall -4% on revs miss/guidance; Q4 adj EPS $4.94 vs. est. $4.89; Q4 revs $21.9B vs. est. $22.67B; guides 2024 adj EPS $16.50-$18.50 vs. est. $18.31; introduces fiscal 2024 outlook, including $1.8B of drive cost savings; CFO Lenz to retire; is forecasting: flat to low-single-digit-percent revenue growth y/y; said Q4 operating results in qtr fell from lower global volumes, partially offset by decreased expenses, higher U.S. domestic yields.

·     PureCycle Technologies (PCT) said it successfully produced the first run of Ultra-Pure Recycled resin from post-industrial recycled material at commercial scale.

·     ONEOK (OKE) files for mixed shelf.

·     Petrobras (PBR) upgraded to Buy from Neutral at Goldman Sachs.



·     Arbor Realty (ABR) to replace Ranger Oil (ROCC) in S&P Small Cap 600.



·     Exact Sciences Corp (EXAS) said Blue-C study met all endpoints, showing improved cancer sensitivity, specificity, & precancer sensitivity; plans to complete FDA submission for next-generation Cologuard by end of 2023.

·     Catalent (CTLT) announced that Matti Masanovich has been named Senior Vice President & Chief Financial Officer, effective July 5, 2023.

·     Teleflex (TFX) downgraded to Hold from Buy at Needham following checks that indicate that urologists are reducing their use of UroLift.


Technology, Media & Telecom

·     Adobe (ADBE) upgraded to Outperform from Market Perform at BMO Capital with a price target of $570, up from $500.

·     SoftBank (SFTBY) founder Masayoshi Son said last night that the world’s largest tech investor will go on the offensive soon amid excitement over advances in artificial intelligence, ending more than a year of relative dormancy in startup investments.


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.