Morning Preview: September 26, 2023

Early Look

Tuesday, September 26, 2023









S&P 500










U.S. futures are looking lower, pulling back after a stark warning from JPMorgan Chase CEO Jamie Dimon who said there will be stress in the system in a worst-case scenario of Fed rate hitting 7% along with stagflation. “Going from zero to 5% caught some people off guard, but no one would have taken 5% out of the realm of possibility. I am not sure if the world is prepared for 7%,” Dimon said in an interview with the Times of India. That came as Minneapolis Fed President Neel Kashkari said he expects one more rate hike this year. Treasury yields have pulled back from 16-year highs of 4.56% to 4.5%, while the dollar is little changed at 10-month highs. Asian stocks decline led by Greater China on growing concern over the nation’s worsening property crisis. In Asian markets, The Nikkei Index fell -363 points to 32,315, the Shanghai Index fell -13 points to 3,102, and the Hang Seng Index declined -262 points or 1.48% to 17,466. In Europe, the German DAX is down over -100 points to 15,302, while the FTSE 100 is little changed at 7,627.


The S&P 500 ended higher on Monday despite a continued march higher for Treasury yields, with the 10-year Treasury yield jumping 10 basis points to 4.541%, the highest yield since October 2007. Gains were led by Energy, Financials, and Industrials, while defensive Utilities, Staples, and REITs underperformed. The concern about rates being “higher for longer” by the FOMC pushed stocks lower last week, with the S&P posting its worst week since March and is down 3-straight into this week. With the end of the third quarter drawing near, investors said market moves may be relatively muted until companies report quarterly results in the coming weeks. Next potential catalyst is a slew of economic data points late week including on durable goods and the personal consumption expenditures price index for August, and second-quarter Gross Domestic Product.


Market Closing Prices Yesterday

·     The S&P 500 Index climbed 17.38 points, or 0.40%, to 4,337.44.

·     The Dow Jones Industrial Average rose 43.04 points, or 0.13%, to 34,006.88.

·     The Nasdaq Composite gained 59.51 points, or 0.45%, to 13,271.32.

·     The Russell 2000 Index advanced 7.74 points, or 0.44% to 1,784.24.


Economic Calendar for Today

·     7:45 AM ET                  ICSC Weekly Retail Sales

·     8:55 AM ET                  Johnson/Redbook Weekly Sales

·     9:00 AM ET                  Monthly Home Price M/M for July

·     9:00 AM ET                  Case Shiller 20-City M/M for July

·     10:00 AM ET                Consumer Confidence for September

·     10:00 AM ET                New Home Sales M/M for August

·     10:00 AM ET                Richmond Fed Index for September

·     1:00 PM ET                   US Treasury to sell $45B in 2-year notes.

·     4:30 PM ET                   API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: CTAS MITQ SNX

·     Earnings After the Close: AIR COST MLKN PRGS UNFI


Other Key Events:

·     BMO Capital San Francisco & Silicon Valley Property Tour, 9/26-9/28, in San Francisco, CA

·     Cantor Global Healthcare Conference, 9/26-9/28, in New York





















10-Year Note





World News

·     Fed’s Kashkari said there’s still more work to do on services inflation; we can get back to 2% target; we may need to cut rates if real rates are tightening; rates could probably go a little higher and be held there for longer to cool things off; falling inflation next year might justify backing of the Fed Funds rate to stop it getting tighter.

·     Senate Republicans and Democrat negotiators are nearing a deal on short term spending measures to keep US govt going after 1 Oct; the legislation would extend funding for 4-6 weeks and present a challenge for speaker McCarthy on whether to hold a vote on it – Bloomberg.


Sector News Breakdown


·     Ford Motor Co. (F) said it has halted work on a $3.5 billion battery factory in Michigan, just days after the carmaker made concessions to its striking workers.

·     Thor Industries (THO) Q4 EPS $1.68 tops consensus $0.96; Q4 revs fell -28.4% y/y to $2.74B vs. est. $2.42B; sees FY EPS $6.25-$7.25 vs. est. $7.12 on sales $10.5B-$11B vs. est. $10.81B; said still cautious on the global economic outlook, associated impacts on consumer demand, appetite for discretionary purchases.

·     Fisker Inc. (FSR) said it expects to reach its target of deliveries of 300 vehicles a day later this year; said it has manufactured 5,000 Fisker Ocean all-electric SUVs, up from 3,123 as of Sept. 7, the last time it offered an update.

·     Nissan Motor Co (NSANY) said all its new European models will be fully electric and it plans to sell only electric vehicles (EVs) on the continent by 2030.

·     DraftKings (DKNG) upgraded to Overweight from Neutral at JPMorgan and raised its price tgt to $37 from $26.

·     WingStop (WING) upgraded to Buy from Hold at Stifel and tgt raised to $200.

·     AKA Brands Holdings (AKA) will affect a one-for-12 reverse stock split of its common stock.


Energy, Industrials and Materials

·     The Canada Energy Regulator approved a route change request for the Trans Mountain oil pipeline expansion on Monday, clearing a major hurdle and avoiding months of delay for the Canadian government-owned project.

·     Flowserve (FLS) upgraded to Buy from Hold at Jefferies.

·     PNM Resources (PNM) upgraded to Buy from Neutral at Mizuho.



·     Envestnet (ENV) named Joshua Warren as its chief financial officer, effective Nov. 15; said Warren replaces Peter D’Arrigo in the role, who served as CFO since 2008.

·     Some offshore creditors of China Evergrande Group are planning to join a winding-up court petition filed against the cash-strapped developer if it doesn’t submit a new debt revamp plan by next month, two sources familiar with the matter said – Reuters reported.



·     Immunovant, Inc. (IMVT) announced that subcutaneously administered doses of IMVT-1402 produced dose-dependent reductions in IgG in initial data from a Phase 1 clinical trial in healthy adults, with no dose-related changes in serum albumin or LDL-C.

·     Liquidia Corporation (LQDA) said the FDA accepted for review the Company’s amendment to the tentatively approved new drug application (NDA) for YUTREPIA (Treprostinil) inhalation powder in which the Company is seeking to add the treatment of pulmonary hypertension associated with interstitial lung disease (PH-ILD) to the label.

·     Regeneron Pharmaceuticals, Inc. (REGN) and Sanofi (SNY) announced the FDA accepted for Priority Review the supplemental Biologics License Application (sBLA) for Dupixent (dupilumab) to treat children aged 1 to 11 years with eosinophilic esophagitis (EoE). The target action date for the FDA decision is January 31, 2024.


Technology, Media & Telecom

·     Alibaba Group Holding (BABA) announces intention to spin-off its logistics unit, Cainiao Smart Logistics Network Ltd, on the Hong Kong stock exchange as a separate listing.

·     Arm Holding (ARM) shares finished at their highs on Monday, rising 6% to $54.44 and snapping its 6-day losing streak since its IPO debuted.

·     Voxel Jet AG (VJET) said to explore strategic alternatives including investments, mergers, and acquisitions, sending shares higher overnight after the close.

·     Kneron, a U.S.-based semiconductor startup, said on Tuesday it raised an additional $49 million in its funding round as looks to ramp up commercialization of its artificial intelligence chips. Taiwanese giant Foxconn and Alltek were among the investors in the round – CNBC.


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.