Morning Preview: March 27, 2023

Early Look

Monday, March 27, 2023









S&P 500










U.S. futures pointing to a higher open, rising +0.6% to 4,025, adding to Friday and last week gains as upbeat sentiment in the regional banking sectors helps lift markets. Last week, the Dow gained 1.2%, the S&P 500 1.4%, and the Nasdaq climbed 1.7%. Stocks are getting a small pop this morning, led by strength in banking stocks after First Citizens BancShares Inc (FCNCA) said it would acquire deposits and loans of Silicon Valley Bank, boosting hopes for other troubled banks. In Asian markets, The Nikkei Index advanced 91 points to 27,476, the Shanghai Index fell -14 points to 3,251, and the Hang Seng Index declined -347 points to 19,567. In Europe, the German DAX is up nearly 200 points to 15,153, while the FTSE 100 gains 63 points to 7,469. Quiet day with no scheduled US economic data due. This past week the Federal Reserve raised interest rates at a ninth straight meeting and indicated there may be more hikes to come in a clear sign it’s confident that its bid to quell inflation won’t deepen a nascent banking crisis. Fed hikes by 25 basis points, sticks to outlook for higher rates despite bond and stock markets saying otherwise. With anxiety over the return of “systemic risk” in the banking sector following the baking failure of SVB Bank, something not seen since the Global Financial Crisis beginning in 2008, policy makers and politicians are once again in the spotlight. U.S. Treasury yields edged higher on Monday as some fears about the banking sector eased.


Market Closing Prices Yesterday

·     The S&P 500 Index climbed 22.27 points, or 0.56%, to 3,970.99.

·     The Dow Jones Industrial Average rose 132.28 points, or 0.41%, to 32,237.53.

·     The Nasdaq Composite gained 36.56 points, or 0.31%, to 11,823.96.

·     The Russell 2000 Index advanced 14.63 points, or 0.85% to 1,734.92.


Economic Calendar for Today

·     1:00 PM ET                   U.S. Treasury to sell $42B in 2-year notes.


Earnings Calendar:

·     Earnings Before the Open: ABOS CCL VERO

·     Earnings After the Close: CTMX EE FOR A HOFV MEDS PVH RAIL RGTI


Other Key Events:

·     Enterprise Connect Conference & Expo, 3/27-3/30, in Orlando, FL

·     Shop Talk Conference, 3/26-3/30, in Las Vegas





















10-Year Note





World News

·     Vladimir Putin said Russia is preparing to station tactical nuclear weapons in Belarus, escalating a confrontation with the US and its allies. The US will monitor the implications of Putin’s move, the White House’s National Security Council said. Putin also said Russia and China haven’t formed a “military alliance.” – Bloomberg.

·     Germany’s Ifo Business Climate Index rose to 93.3 points in March, from 91.1 points in February, its fifth consecutive reported rise in the index.

·     There are a lot of commercial real-estate assets in the banking sector and there are some losses there that will probably work its way through the banking sector. So that process will take time to fully become clear.’ – Neel Kashkari, Minneapolis Fed president.


Sector News Breakdown


·     Rivian (RIVN) is relocating parts of its manufacturing engineering team to its Illinois factory as part of a reorganization aimed at speeding up production, according to a person familiar with the plan – WSJ reported late Friday.

·     WingStop (WING) downgraded to underperform from hold at Jefferies on skepticism that the stock offers any further upside.


Energy, Industrials and Materials

·     Babcock & Wilcox (BW) Solar Energy, Inc. awarded Illinois community solar installation contracts by Summit Ridge energy totaling more than $15M.

·     Union Pacific Corp. (UNP) said it reached a tentative agreement with General Committee 953, part of its largest union, The International Association of Sheet Metal, Air, Rail and Transportation Workers

·     Saudi Aramco, the world’s biggest oil producer, has agreed to buy a 10% stake in a giant oil complex in China for $3.6 billion, in a deal that will significantly expand its refining presence in China.



·     First Citizens BancShares Inc (FCNCA) said it would acquire deposits and loans of Silicon Valley Bank, closing one chapter in the crisis of confidence that has ripped through global financial markets. The news has several other regional banks moving higher pre-mkt (FRC, CFG, FITB, PACW, ZION, WAL, and others).

·     U.S. authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank (FRC) more time to shore up its balance sheet – Bloomberg.

·     Banking turmoil and recession risks are spelling trouble for the global IPO market, keeping it mired in a slump even after investors started the year thinking that the worst of the stocks rout might be over. Companies have raised just $19.7 billion via initial public offerings in 2023, according to data compiled by Bloomberg. That’s down 70% year-on-year.

·     Asset managers, Virtus Investment Partners (VRTS) and Victory Capital Holdings (VCTR) both upgraded to overweight from neutral and underweight, respectively at Piper saying the stocks are undervalued versus peers.

·     Verisk Analytics Inc. (VRSK) files for mixed shelf; size not disclosed.



·     AstraZeneca Plc (AZN) said its drug Eplontersen showed positive results in a late-stage trial among hereditary transthyretin patients; said Eplontersen drug met its co-primary endpoints through 66 weeks in the NEURO-TTRansform Phase III trial.

·     Brainstorm (BCLI): The FDA will convene a meeting of independent advisers to review a personalized cell therapy for ALS that the agency has previously refused to consider – STAT News reports

·     Iovance Biotherapeutics Inc. (IOVA) said it has completed its Biologics License Application submission to the FDA for lifileucel in advanced melanoma.

·     NuCana plc’s (NCNA) shares slide as the European Patent Office issued judgment late on Friday declaring drug developer’s ‘190 patent’ as not valid.


Technology, Media & Telecom

·     Blackbaud Inc. (BLKB) rises 14% after its largest shareholder Clearlake Capital Group L.P. disclosed a bid to buy all the outstanding Blackbaud shares for $71 each, a 22.8% premium to Friday’s closing price of $57.83. The per-share bid would value the provider of software for the philanthropic community at about $3.78 billion.

·     Jack Ma, Alibaba Group Holding Ltd.’s (BABA) billionaire co-founder, has returned to mainland China after spending roughly a year overseas, the WSJ reported.

·     Elon Musk said Twitter employees will receive stock awards based on a roughly $20 billion valuation, less than half of the $44 billion price he acquired the company for last year – WSJ reported.

·     Corning (GLW) upgraded to buy from hold at Deutsche Bank saying the telecoms and electronics equipment maker is turning a corner.

·     Dish (DISH) downgraded to Neutral from Buy at UBS and tgt cut to $10 from $27.

·     Pinterest (PINS) upgraded to Buy from Neutral at UBS and raise tgt to $35 from $27.


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.