Mid-Morning Look: August 09, 2023

Mid-Morning Look

Wednesday, August 09, 2023






DJ Industrials




S&P 500








Russell 2000






U.S. stocks slide on the open, failing to hold overnight gains as investors await key inflation data tomorrow morning (July CPI), while inflation data in China overnight showed decelerating prices. Energy stocks outperform again, the top sector in the S&P as oil prices extend gains with WTI crude setting fresh 9-month highs. Several headwinds were in focus yesterday sinking stocks (though rebounded late day) after Moody’s bank downgrades and downgrade warnings put additional stress on the banking group, while Italy unexpectedly approved a 40% windfall tax on Tuesday (hitting Euro banks). But overnight, the Italian Finance Minister talked back some of the comments, saying that the new windfall tax could not exceed 0.1% of a lender’s total assets. Overnight, China’s consumer and producer prices fell together for the first time since 2020, as the consumer price index registered its first decline in more than two years, falling -0.3% in July from a year earlier, and producer prices fell for a 10th consecutive month, contracting -4.4%. Earnings season winding down with tonight the last real flurry before retailers report the next two weeks (WMT, TGT, HD, LOW, etc.). The S&P currently flat awaiting tomorrow CPI.







WTI Crude















10-Year Note






·     AKAM +9%; delivered a solid beat-and-raise as revenue slightly beat consensus driven by Security upside and reacceleration, while Delivery was light.

·     ARRY +23%; delivered an impressive Q2 beat — beating >10% on revenue, posting 29.5% GMs vs. 20.8% consensus, and ~2x Adj. EBITDA vs. consensus and raised year EPS and Ebitda views.

·     AXON +12%; raised its FY23 revenue outlook to a range of $1.51B-$1.53B from prior $1.44B-$1.46B (est. $1.5B) after Q2 results easily topped consensus.

·     CELH +17%; shares jump on Q2 top/bottom-line beat and says its drinks were available in more stores, and sold more drinks per location, on average; said its market share doubled in Q2 to 8.6%, making it the 3rd most popular energy drink in the US.

·     DBTX +73%; to be acquired by REGN for $4 per share, in a deal valued at about $109M, strengthening its gene therapy and hearing loss programs.

·     DUOL +9%; reported Q2 results that beat expectations and raised its full-year forecast.

·     MQ +15%; as Q2 revenues grew 24%, 5% above ests but below the 1% in prior qtrs. and adj gross profit rose 8% vs. guidance of LSD growth, but the renewal of the Cash App contract with SQ helped shares outperform.

·     MRTX +29%; after announcing compelling initial clinical data for MRTX1719 in MTAP-deleted cancers demonstrating favorable safety profile and early signs of strong clinical activity.

·     PENN +12%; announced a 10-year partnership with Disney’s (DIS) ESPN and said it was divesting from Barstool Sports, selling 100% of its stake back to Barstool founder Dave Portnoy.

·     TOST +19%; raises annual revenue outlook to $3.81B-$3.87B from $3.71B-$3.80B (est. $3.78B) after Q2 revs grew 45% y/y to $978M, topping analysts est. of $941.98M.

·     TWLO +2%; reported 2Q results that were largely above expectations, highlighted by $120m non-GAAP operating profit (12% margin) and raised 2023 non-GAAP operating profit guidance to a range of $350-400m, above the prior range of $250-350m.



·     ASLE -20%; reported 2Q adjusted EBITDA of ($0.5M) vs. Stifel expectation of $6.2M as no aircraft sales were made during the quarter on the back of weaker conditions in the cargo market.

·     DKNG -9%; om competition fears after PENN announced a 10-year partnership with Disney’s (DIS) ESPN as its app will be promoted across ESPN platforms.

·     DOCS -20%; reported mixed 1Q financial results with good revenue and EPS upside but the macro and small shifts in customer marketing priorities drove significantly lower bookings

·     GTES -7%; as 15m share secondary offering prices at $11.75 per share as BX to sell shares taking the private equity stake from ~50% to ~44%.

·     PUBM -29%; after results last night and two broker downgrades.

·     RBLX -18%; as missed Q2 bookings estimates amid waning demand for its online games and intensifying competition hurt growth as Q2 adj. EBITDA $37.9M misses $48.5M estimate and reported Q2 net bookings $780.7M vs. est. $784.9M.

·     SMCI -23%; as posted Q4 earnings and revenue that topped estimates but its 2024 outlook disappointed, coming in at $10B for revs, only slightly above the $9.88B est.

·     UPST -29%; as Q2 revs fell -40% y/y to $135.8M vs. est. $135.9M; said lending partners originated 109,447 loans, totaling $1.2 billion across platform, down 64% y/y; sees Q3 loss (-$28.2M) and revs about $140M.

·     XYL -3%; after short seller Spruce Point Capital issued a strong sell recommendation.

·     ZIP -13%; downgraded from Outperform to In Line at Evercore/ISI in the wake of In-Line & lower Q2 EPS results saying fundamentals are weaker than Evercore had anticipated, and trends are continuing to deteriorate faster than it had expected.


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.