Morning Preview: November 27, 2023

Early Look

Monday, November 27, 2023









S&P 500










U.S. futures are edging lower after stocks finished higher for a fourth week in a row on Friday, while the S&P 500 is up more than 10% during this win streak (all four weeks up 1% or more). Oil prices decline for a fourth day on OPEC+ production concerns ahead of this week’s meeting while gold climbs to six-month highs amid a weaker dollar and key Treasury auctions this week. Stocks ended mostly higher on Friday in a subdued, abbreviated trading session. For the week, the Dow rose 1.3%, while the S&P 500 gained 1% and the Nasdaq added 0.9%. US stocks end the shortened session with small moves led by gains in the Dow Industrials, as investors look to consumer spending headlines this weekend for major retailers with strong Black Friday, weekend, and Cyber Sunday sales figures. In Asian markets, The Nikkei Index declined -177 points to 33,447, the Shanghai Index fell -9 points to 3,031, and the Hang Seng Index dropped -34 points to 17,525. In Europe, the German DAX is lower by -24 points to 16,005, while the FTSE 100 is down -14 points to 7,473.


Market Closing Prices Yesterday

·     The S&P 500 Index gained 2.72 points, or 0.06%, to 4,559.42.

·     The Dow Jones Industrial Average rose 117.12 points, or 0.33%, to 35,390.15.

·     The Nasdaq Composite dropped -15.00 points, or 0.11%, to 14,250.85.

·     The Russell 2000 Index advanced 11.72 points, or 0.67% to 1,807.23.


Economic Calendar for Today

·     10:00 AM ET                New Home Sales M/M for October…est. 725K

·     10:30 AM ET                Dallas Fed Manufacturing Index for November

·     12:00 PM ET                US Treasury to auction $51B in 2-year notes

·     1:00 PM ET                   US Treasury to auction $52B in 5-year notes


Earnings Calendar:

·     Earnings Before the Open: CRNC

·     Earnings After the Close: ZS


Other Key Events:

·     Bank America European Tech Fieldtrip, 11/27-12/1 (virtual)

·     UBS Global Technology Conference, 11/27-11/30, in Scottsdale, AZ





















10-Year Note





World News

·     China’s industrial profit fell 7.8% on year, narrowing from a 9.0% decline in the January to September period, said the statistics bureau.


Sector News Breakdown


·     Adobe said Black Friday online sales in the U.S. reached a record $9.8B, a 7.5% y/y increase and expects consumers to spend another $10B over the weekend and $12B on Cyber Monday.

·     Online sales reached $70.9B globally, an 8% increase from Black Friday last year, according to data from Salesforce. Black Friday global online sales were $65.3 billion last year.

·     Adobe estimated that a record $5.6 billion was spent online on Thursday, up 5.5% year over year.

·     Shopify, which counts both online and offline sales from its merchants, said global sales increased 22% year over year to a record $4.1 billion.

·     Foot Locker (FL) downgraded to Sell from Neutral at Citigroup with $18 tgt ahead of earnings.

·     FREYR Battery (FREY) announced organizational optimizations, including leadership changes intended to align resources with FREYR’s business priorities.


Energy, Industrials and Materials

·     Canadian Pacific (CP) downgraded to Hold from Buy (tgt to $77 from $85), Old Dominion (ODFL) downgraded to Hold from Buy (tgt to $386 from $475) and Canadian National (CNI) all downgraded to Hold from Buy at Deutsche Bank.

·     Graphic Packaging (GPK) downgraded to Market Perform from Strong Buy at Raymond James as expects the shares to remain range bound in the near term.

·     Weyerhaeuser (WY) downgraded to Market Perform from Strong Buy at Raymond James as the firm reduced its timber real estate investment trust sector recommendation to Market Weight in conjunction with rating downgrades to Weyerhaeuser and PotlatchDeltic (PCH).

·     Petrobras (PBR) said it terminated the contract to sell a refinery located in the city of Fortaleza because of the lack of compliance by the buyer.



·     Affirm (AFRM), Marqueta (MQ), Upstarts (UPST): Shoppers are relying more on flexible payment methods, also known as Buy Now, Pay Later (BNPL). Adobe noted that BNPL orders rose 72% w/w from Nov. 18 to Nov. 24. BNPL revenue increased 47% in that period, Adobe said.



·     GSK (GSK) said its blood cancer drug Blenrep had reached a key goal in a late-stage trial, as the drug, when combined with existing drug bortezomib plus steroid dexamethasone, significantly extended the time before the disease progressed, or the patients died, in those suffering from relapsed or refractory multiple myeloma.

·     GE HealthCare (GEHC) downgraded to Sell from Neutral at UBS and cut tgt to $66 from $86 saying soft orders, tough comps and a lack of prices rises puts UBS ests below 2024 consensus.

·     Jazz Pharmaceuticals (JAZZ) downgraded to Neutral from Buy at UBS and cut tgt to $135 from $170 saying early competitor launch metrics imply potential downside for Jazz’s sleep portfolio.

·     Teva (TEVA) upgraded to Buy from Neutral at UBS and raised tgt to $13 from $11 calling it uniquely positioned to undergo a significant transition” to a more brand focused company.


Technology, Media & Telecom

·     Activist investor Elliott Investment Management has taken a more than $2 billion stake in Crown Castle (CCI) and is expected to push for change at the owner of wireless towers. Elliott plans to engage with the company to try to boost its share price after accumulating the stake – WSJ.


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.