Morning Preview: May 28, 2024

Early Look

Tuesday, May 28, 2024

Futures

Up/Down

%

Last

Dow

-25.00

0.06%

39,133

S&P 500

7.25

0.14%

5,329

Nasdaq

56.00

0.30%

18,932

 

 

U.S. stock futures look set for gains as investors return from the three-day holiday weekend, helped by shares of Apple (AAPL) amid reports of improved China iPhone sales. Apple Inc. (AAPL) smartphone shipments in China were 52% higher in April than a year ago to 3.495 million units from 2.301 million a year earlier, extending a rebound seen in the previous month, according to data. Stocks ended last week mixed as the Dow Jones Industrial Average declined -2.3%, the S&P 500 was flat, and the Nasdaq was up 1.4% extending weekly gain to 5-weeks. The U.S. dollar was down 0.3% at 104.72 against a basket of currencies on Friday, after advancing in five of the last six trading sessions. For the week the index was up 0.2%. U.S. stocks posted solid gains on Friday led by shares of NVDA which jumped last week after strong earnings and outlook for its AI chips and giving a boost to the wider sector. Mixed economic reports continue to keep the broader market in check on worries that the Fed will keep rates higher for longer. Today we got some more data points and Fed speakers. In Asian markets, The Nikkei Index dipped -44 points to 38,855, the Shanghai Index fell -14 points to 3,109, and the Hang Seng Index slipped -6 points to 18,821. In Europe, the German DAX is down -7 points to 18,766, while the FTSE 100 is down -21 points to 8,295.

 

Market Closing Prices Yesterday

  • The S&P 500 Index gained 36.88 points, or 0.70%, to 5,304.72.
  • The Dow Jones Industrial Average edged higher 4.33 points, or 0.01%, to 39,069.59.
  • The Nasdaq Composite jumped 184.76 points, or 1.10%, to 16,920.79.
  • The Russell 2000 Index advanced 21.26 points, or 1.04% to 2,069.67.

Economic Calendar for Today

  • 12:55 AM ET                Fed’s Mester Speaks at Bank of Japan Event
  • 7:45 AM ET                  ICSC Weekly Retail Sales
  • 9:00 AM ET                  Monthly Home Prices M/M for March
  • 9:00 AM ET                  CaseShiller 20-city index for March
  • 9:55 AM ET                  Fed’s Kashkari Gives Panel Remarks
  • 10:00 AM ET                Consumer Confidence for May
  • 10:30 AM ET                Dallas Fed manufacturing for May
  • 1:00 PM ET                   US Treasury to sell $69B of 2-year notes.
  • 1:00 PM ET                   US Treasury to sell $70B in 5-year notes.

Earnings Calendar:

  • Earnings Before the Open: None
  • Earnings After the Close: APPS BOX CAVA FFIE HEI OOMA

Other Key Events:

  • Goldman Sachs Electrify Europe: Utilities and Clean Energy Conference, 5/28-5/29, in London.
  • Goldman Sachs Global Semiconductor Conference, 5/28-5/30, in New York
  • Keybanc Industrials and Basic Materials Conference 5/28-5/30, in Boston, MA

 

 

Macro

Up/Down

Last

Nymex

1.25

78.97

Brent

0.17

83.27

Gold

11.20

2,345.70

EUR/USD

0.0018

1.0876

JPY/USD

-0.03

156.83

10-Year Note

-0.01

4.463%

 

Sector News Breakdown

Consumer

  • DraftKings (DKNG) and Flutter (FLUT) shares weaker this morning after Illinois senators have approved a 2025 budget that includes raising the state’s sports betting tax and implementing a progressive tax rate for operators based on revenue. On May 26, the Illinois Senate passed a version of the budget that includes a progressive wagering tax increase that would levy a 40% rate on operators with the highest adjusted gross revenue.
  • GameStop (GME) announced late Friday it completed the ATM offer first announced on 5/17, selling ~45M shares over the last several days for a total of $933.4MM. Those 45M incremental shares increased the total shares outstanding by about 15%.
  • Toyota (TM) has unveiled plans for a new generation of internal combustion engines, betting on a continued need for older technologies even as car buyers shift towards Tesla (TSLA) and other electric-vehicle makers, Financial Times reports.

Energy, Industrials and Materials

  • Algonquin Power & Utilities Corp. (AQN) has entered into a support agreement with a private limited company, which is controlled by Energy Capital Partners, and Atlantica Sustainable Infrastructure Plc (AY). Bidco has agreed, subject to the terms of the Transaction Agreement, to acquire 100% of the shares of Atlantica for $22.00 per share in cash.
  • BP (BP) and U.S. shale producer EOG Resources (EOG) are in discussions to jointly develop a natural gas field off the coast of Trinidad and Tobago, the British company said. The field holds just under 1 trillion cubic feet of natural gas but will eventually be tied back to another BP discovery, bringing the area to be developed closer to 1.5 tcf of gas.
  • DuPont (DD) upgraded to Buy after spin announcement at Citigroup.
  • Repsol (REPYY) plans to sell a stake in its renewable energy operations in the U.S.–valued at around 600 million euros ($651.15M), with an initial capacity of 800 megawatts of photovoltaic power, Spanish newspaper Expansion reports.

Financials

  • Bank of Nova Scotia (BNS) beat analysts’ estimates as it saw continued momentum in its wealth-management and capital-markets businesses; Q2 adjusted EPS C$1.58 vs. C$1.69 last year and Q2 revenue C$8.35B vs. C$7.91B last year; Q2 Provisions for credit losses increased to C$1 billion ($733.94 million) from C$709 million in the year-ago period.
  • PayPal (PYPL) hopes to boost its growth by starting an ad network juiced with something it already owns, data on its millions of users, the WSJ reported. PYPL plans to build an ad sales business around the reams of data it generates from tracking the purchases as well as the broader spending behaviors of millions of consumers who use its services.

Healthcare

  • G1 Therapeutics (GTHX) announced the presentation of mature Phase 2 clinical trial results describing the positive impact of Trilaciclib in combination with a TROP2 ADC on overall survival and tolerability compared to SG alone. The poster is being presented at the 2024 ASCO meeting May 31 to June 4
  • Insmed (INSM) shares surge 130% pre- mkt after announces positive topline results from landmark aspen study of brensocatib in patients with bronchiectasis; said phase 3 study achieves primary endpoint for both dosage strengths of brensocatib; said brensocatib well-tolerated at both dosage strengths.
  • Merck (MRK) announces phase 3 keynote-522 trial met its overall survival (OS) endpoint in patients with high-risk early-stage triple negative breast cancer; Merck’s Keytruda consistent with past safety profile.
  • Healthcare payments company Waystar said it was aiming to raise up to $1.04 billion in its initial public offering in the United States.

Technology, Media & Telecom

  • Apple Inc. (AAPL) smartphone shipments in China were 52% higher in April than a year ago to 3.495 million units from 2.301 million a year earlier, extending a rebound seen in the previous month, according to data from a research firm affiliated the Chinese government. Apple’s shipments in China increased by 12% in March, marking a significant improvement from the first two months of 2024, when the company experienced a 37% slump in sales.

_________________________________________________________________

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.