Morning Preview: September 11, 2023

Early Look

Monday, September 11, 2023









S&P 500










Stocks look to rally to kick off the busy trading week after the S&P fell -1.29% last week, the Dow lost -0.75%, and the Nasdaq shed -1.93% in a week dominated by technology weakness. The recent surge in Treasury yields and the dollar have raised concerns for investors, and the 10-month highs for oil prices have exacerbated concerns about inflation ahead of key economic data this week. The August U.S. consumer price index will be published Wednesday, and the August retail sales report is due Thursday. In stock news, TSLA shares are jumping over 6% this morning after Morgan Stanley upgraded the shares and boosted its price target while TWNK shares jump on an M&A report in the WSJ (more below). In Asian markets, The Nikkei Index fell -139 points to 32,467, the Shanghai Index rose 26 points to 3,142, and the Hang Seng Index dropped -105 points to 18,096. In Europe, the German DAX is up 80 points to 15,824, while the FTSE 100 rises 13 points to 7,490. The yen strengthened after BOJ Governor Ueda said ending negative rate policy is an option if wages continue to rise.


Key Events this week: on Monday 9/11, ORCL earnings expected after the close. On Tuesday 9/12, Apple (AAPL) reveals its latest product launch as Wedbush said this week they expect a $100 price increase on the iPhone 15 Pro and iPhone 15 Pro Max model for the first price increases from Cupertino in years. On Wednesday 9/13, the August Consumer Price Index (CPI) data is expected with ests for headline M/M to rise +0.6% (vs. prior +0.2%) and Y/Y to rise +3.6% (vs. prior +3.2%) and on a core basis (ex: food & energy) to rise +0.2% M/M (in-line w prior) and rise +4.3% Y/Y (down from +4.7%). The recent spike in energy prices has led to higher ests. Lastly, the UAW contract with the Big Three US automakers (GM, F, STLA) is set to expire Thursday 9/14 and a strike could hurt OEMs as well as part/suppliers (ADNT, BWA, DAN, MGA, VC). Also Thursday morning, the European Central Bank (ECB) meeting, and the August Producer Price Index (PPI) is expected at 8:30 AM. Also, another busy week for Wall Street Conferences including Financial, Healthcare, and Industrial conferences.


Market Closing Prices Yesterday

·     The S&P 500 Index climbed 6.35 points, or 0.14%, to 4,457.49.

·     The Dow Jones Industrial Average rose 75.86 points, or 0.22%, to 34,576.59.

·     The Nasdaq Composite gained 12.69 points, or 0.09%, to 13,761.53.

·     The Russell 2000 Index declined -4.21 points, or 0.23% to 1,851.54.


Economic Calendar for Today

·     1:00 PM ET                   US Treasury to sell $42B in 3-year notes.


Earnings Calendar:

·     Earnings Before the Open: BOWL FCEL

·     Earnings After the Close: AVO CASY MTRX ORCL SKIL


Other Key Events:

·     Goldman Sachs Annual CEEMEA Financials Symposium, 9/11-9/12, in London

·     HC Wainright Annual Global Investment Conference, 9/11-9/13, in New York





















10-Year Note





Sector News Breakdown


·     Tesla (TSLA) upgraded to Overweight from Equal-Weight at Morgan Stanley and raised its price target by 60% to $400 per share from $250 calling it their “Top Pick” as believe that Dojo can add up to $500B to Tesla’s enterprise value, expressed through a faster adoption rate in Mobility (robotaxi) and Network Services (SaaS).”

·     Hostess Brands (TWNK) shares +15% after the WSJ reported that J.M. Smucker Co. (SJM) is about to buy it. Smucker beat out competition against General Mills (GIS) to buy out Hostess for about $4 billion. That’s according to a report by The Wall Street Journal.

·     Instacart (CART) said it plans to offer 22 million shares at an estimated price of $26 to $28 a share with lead underwriters Goldman Sachs and J.P. Morgan in a bid to raise about $594 million in its upcoming initial public offering (IPO). Including the overallotments stock provided to the underwriters, the grocery store app will have about 279.33 million shares outstanding, giving it a market capitalization of about $7.5 billion.


Energy, Industrials and Materials

·     AAR Corp. (AIR) mentioned positively in Barron’s saying this airplane parts company isn’t a household name, but every airline knows it because it sells used, repaired, and overhauled engine and airframe parts they need to keep their planes flying. The $2 billion company also provides repair and maintenance services at seven facilities spread across North America.

·     Astra Space (ASTR) files $100M mixed securities shelf.

·     Diamondback Energy Inc. (FANG) said it would get a $500 million payment and retain a 30% equity interest as part of the formation of a new joint venture entity, Deep Blue Midland Basin LLC, with Five Point Energy LLC, a private-equity firm.

·     Vietnam Airlines JSC will sign an initial agreement to buy about 50 Boeing (BA) 737 Max jets in a deal valued at $10B – Bloomberg reported this weekend.

·     Enphase Energy Inc. (ENPH) shares mentioned positively in Barron’s saying the supplier of solar equipment have taken a tumble this year, but they are expected to get a boost as the company’s expansion plan unfolds.

·     The U.S. and Saudi Arabia are in talks to secure metals in Africa needed for both countries’ energy transitions, as the White House tries to curb China’s dominance in the electric-vehicle supply chain and the kingdom looks to buy $15 billion in global mining stakes – WSJ.



·     Cigna Group (CI) reaffirms projected full year 2023 consolidated adjusted income from operations on a per share basis of at least $24.70 per share.

·     AstraZeneca (AZN) and Daiichi Sankyo said that datopotamab deruxtecan, a cancer drug, combined with the Imfinzi cancer treatment–with or without chemotherapy–showed disease control rates of 92% and 93% respectively in patients with previously untreated advanced or metastatic non-small cell lung cancer.

·     Gilead Sciences (GILD) announced early data from the global, open-label, Phase 2 EVOKE-02 study evaluating Trodelvy(R) (Sacituzumab govitecan-hziy) in combination with Merck’s anti-PD-1 therapy KEYTRUDA (pembrolizumab) with or without platinum agents in patients with previously untreated advanced or metastatic non-small cell lung cancer (NSCLC) without actionable genomic alterations. The results are being presented today at the IASLC 2023 World Conference on Lung Cancer (#WCLC23) hosted by the International Association for the Study of Lung Cancer.

·     Neumora Therapeutics, a clinical-stage biopharmaceutical company backed by Amgen (AMGN), on Monday said it plans to sell 14.7 million shares at between $16 and $18 apiece in its initial public offering.


Technology, Media & Telecom

·     Alibaba (BABA) said former CEO Daniel Zhang was stepping down as head of the cloud business. Zhang was due to stand down as CEO on Sunday to focus on the cloud unit. Eddie Wu, his successor as CEO, will now also oversee the cloud business as well.


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.