Morning Preview: June 22, 2023

Early Look

Thursday, June 22, 2023









S&P 500










U.S. futures looking at another lower open after the S&P 500 Index fell for a third straight day on Wednesday as the technology and communications sectors underperformed, while energy and utilities stocks advanced. A busy slate of events and speakers today with U.S. weekly jobless claims, U.S. May existing home sales, Kansas City Federal Reserve June business survey, Chicago Fed May economic activity index, U.S. Q1 current account all expected this morning. Also, Federal Reserve Chair Jerome Powell delivers semi-annual testimony to Senate Banking Committee at 10:00 AM while Fed Board Governors Christopher Waller and Michelle Bowman speak; Cleveland Fed chief Loretta Mester and Richmond Fed chief Thomas Barkin also speak. Stocks dropped yesterday after Federal Reserve Chair Jerome Powell warned higher rates would be needed to combat inflation, thwarting bets that the central bank is nearing the end of its tightening cycle. The timing of additional hikes will be based on incoming data, he said. The biggest selloff was in AI names, with traders taking profits from recent gains. The Bank of England is expected to raise rates 25bps this morning to 4.75% with increasing calls for tougher action to combat persistently high inflation; some economists have warned the CPI figures had been so bad the BOE might surprise with a 50bps hike today or signal a large move at its next policy meeting in August. In Asian markets, The Nikkei Index dropped -310 points to 33,264, the Shanghai Index and the Hang Seng Index markets were closed. In Europe, the German DAX is down -105 points to 15,917, while the FTSE 100 loses -64 points to dip under 7,500.


Economic Calendar for Today

·     8:30 AM ET              Weekly Jobless Claims…est. 260K

·     8:30 AM EST            Continuing Claims…est. 1.782M

·     8:30 AM ET              Current Account for Q1…est. (-$217.5B)

·     10:00 AM ET            Fed Chair Powell Appears Before Senate Banking Panel

·     10:00 AM ET            Fed’s Mester Speaks on the Economic Outlook in Cleveland

·     10:00 AM ET            Existing Home Sales M/M for May…est. 4.25M

·     10:00 AM ET            Leading Index M/M for May…est. (-0.7%)

·     10:30 AM ET            Weekly EIA Natural Gas Inventory Data

·     11:00 AM ET            Weekly DOE Inventory Data

·     11:00 AM ET            Kansas City Fed manufacturing for June


Earnings Calendar:

·     Earnings Before the Open: ACN CMC DRI FDS GMS MEI

·     Earnings After the Close: CGRN SWBI XAIR


Other Key Events:

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

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


Market Closing Prices Yesterday

·     The S&P 500 Index slumped -22.98 points, or 0.52%, to 4,365.73.

·     The Dow Jones Industrial Average fell -102.42 points, or 0.30%, to 33,951.45.

·     The Nasdaq Composite dropped -165.10 points, or 1.21%, to 13,502.20.

·     The Russell 2000 Index declined -3.69 points, or 0.20% to 1,863.01.



























10-Year Note






World News

·     The Swiss National Bank announced a 25-basis point hike, taking its policy rate to 1.75%, in line with expectations at its quarterly monetary policy meeting Thursday, but said further rises may be needed to bring inflation to target.


Sector News Breakdown


·     Tesla (TSLA) downgraded to Equal Weight from Overweight at Morgan Stanley on valuation, while raises price tgt to $250 from $200.

·     KB Homes (KBH) Q2 EPS $1.94 tops consensus $1.33; Q2 revs rose 26% y/y to $1.77B, topping consensus $1.42B; Q2 backlog fell -44% y/y to $3.46B; Q2 home deliveries increased 6% to 3,666 and average selling price decreased 3% to $479,500 vs. last year’s levels; boosts FY23 housing revenue view to $5.8B-$6.2B vs. $5.2B-$5.9B prior.

· (OSTK) shares rose 10% pre mkt after winning an auction for Bed Bath & Beyond’s intellectual property, digital assets for $21.5 million during a bankruptcy-run auction.

·     Steelcase (SCS) Q1 adj EPS $0.09 vs. est. $0.01; Q1 revs rose 2% to $751.9M vs. est. $718.15M; Q1 Gross margin 31.2% an improvement of 530 basis points y/y; guides Q2 adj EPS $0.19-$0.32 vs. est. $0.21 and revs seen $815M-$840M vs. est. $840.67M.

·     United Natural Foods (UNFI) announces partnership with RELEX Solutions to enhance demand planning capabilities and procurement efficiencies.


Energy, Industrials and Materials

·     Alcoa (AA) downgraded to Underweight from Equal Weight at Morgan Stanley.

·     Gulfport Energy (GPOR) announces offering of 1.3M shares of common stock for holders.

·     Spirit AeroSystems (SPR) said it will suspend factory production at its plant in Wichita, Kansas, the company said, after workers rejected a proposed four-year deal and announced a strike to begin on June 24.



·     Root Inc. (ROOT) shares jumped late day Wednesday after the WSJ reported Embedded Insurance offered $19.34 a share for the company, but hasn’t managed to negotiate a deal

·     Equinix (EQIX) downgraded to Perform from Outperform at Oppenheimer.



·     AlloVir (ALVR) 20M share Spot Secondary priced at $3.75.

·     Avid Biosciences (CDMO) Q4 EPS $0.00, in-line with consensus; Q4 revs $39.8M vs. est. $38.9M; sees FY24 revenue $145M-$165M, below consensus $181.27M

·     Trupanion (TRUP) extended yesterday’s losses amid California objection to rate increase.

·     Reviva Pharmaceuticals (RVPH) announces 80% global enrollment update for pivotal phase 3 RECOVER study evaluating Brilaroxazine for schizophrenia: enrollment ongoing at multiple sites in the US, Europe, and Asia.


Technology, Media & Telecom

·     Accenture (ACN) Q3 adj EPS $3.19 vs. est. $3.04; Q3 revs $16.6B vs. est. $16.56B; sees FY adj EPS $11.52-$11.63, vs. prior view $11.41-$11.63.

·     Applied Optoelectronics (AAOI) entered into a supply agreement, “the SOW No. 2”, with Microsoft Corp. (MSFT), pursuant to which the Company will provide certain design services and assembly services of goods in accordance with Microsoft’s specifications.

·     Logitech (LOGI) board approves new $1B buyback program.

·     DoubleVerify (DV) announced an expansion of its quality solutions with Meta (META) to enable media measurement and help maximize advertiser performance on Facebook and Instagram Reels.


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.