Mid-Morning Look: June 09, 2023

Mid-Morning Look

Friday, June 09, 2023

Index

Up/Down

%

Last

 

DJ Industrials

115.60

0.34%

33,949

S&P 500

27.45

0.64%

4,321

Nasdaq

139.74

1.06%

13,378

Russell 2000

-1.60

0.09%

1,879

 

 

U.S. stocks extend yesterday gains, pushing major averages higher for the day/week as the S&P (SPX) rises/holds above the 4,300 level while the Nasdaq bounce turns the Composite positive for the week, looking to make it a 7th-straight weeks of gains (longest since Jan 2020). Following Thursday’s advance, the S&P 500 is now up 20% from its 10/12/22 closing low (defined as Bull market). The prior bear market saw the index fall 25.4% over 282 days. Philly semiconductor-index (SOX) rises +1.6% above 3,570 (52-week high stands at 3,643 on May 30th). Market strength deceiving, as again the larger weighted sectors carrying the load as NYSE breadth has decliners leading advancers by 1.5:1, led by the usual suspects for 2023: Consumer Discretionary (XLY) +1.35% (+25.9% YTD), Technology (XLK) +1.35 (YTD +34.5) and Communications (XLC) +0.2% (YTD +31.9%) while most other S&P sectors down on day to start. AAPL, AMZN, AMD, GOOGL, META, NVDA, NFLX, TSLA remain the market leaders. Lack of catalysts today (no Fed speakers, economic data, earnings), as momentum remains clearly to the upside ahead of big week coming up (CPI, PPI, FOMC policy meeting and ECB meeting). Barclays noted today that investors are giving up on the bearish view and start chasing the new bull market.

 

 

Macro

Up/Down

Last

 

WTI Crude

0.18

71.47

Brent

0.07

76.03

Gold

4.20

1,982.80

EUR/USD

-0.0011

1.0770

JPY/USD

0.39

139.30

10-Year Note

0.043

3.757%

 

 

Stock GAINERS

·     ADBE +5%; upgraded to Overweight at Wells Fargo and raised tgt to $525 from $420 saying they come away from recent work more confident Gen AI is a tailwind to ADBE as it expects much of the early value to accrue to established platforms.

·     BRZE +21%; reported a solid 1Q with rev growth of 31% above Street of 28% (but below prior qtr +40%), RPO of $478M, up 22% y/y, billings of $117M, up 29% y/y, and FY24 organic growth guide was raised from 23% to 24%.

·     DOCU +1%; Q1 beat as EPS $0.72 vs. est. $0.56, revs +12% y/y to $661.4M vs. est. $641.7M but -14% growth last quarter, adj op mgn 26.6% vs. 23.6% last quarter; Q1 billings of $674.8M (+10% y/y); guides Q2 revs $675M-$679M vs. est. $670.3M and raises year rev outlook.

·     GLW +4%; upgraded to OW at Morgan Stanley saying believe estimates and valuation are de-risked and expect improved fiber demand and Display margin improvement from price increases to be more meaningful catalysts in FY24, setting up attractive risk/reward.

·     NFLX +2%; after the WSJ reported that the co’s long-awaited crackdown on password sharing in the U.S. delivered a windfall of new subscribers in its earliest days, according to new data from streaming analytics company Antenna. https://tinyurl.com/4sveze8s

·     ROKU +7%; on track for 10th straight positive trading day.

·     SIEN +69%; after announced that the FDA has granted a 510k-clearance for the Company’s novel, patented1 AlloX2 Pro Tissue Expander.

·     TSLA +6%; rises for an 11th straight day, fresh 7-month highs after GM announces collaboration with the EV charging company, to integrate North American charging standard connector design into its EVs beginning 2025.

 

Stock LAGGARDS

·     AMSWA -20%; shares fell as reports Q4 revs fell -14% y/y to $29.9M vs. est. $30.71M; sees FY24 revenue $120M-$126M vs. est. $131.48M.

·     CHPT -11%; falling alongside other EV charging station companies (EVGO, BLNK) as TSLA announced collaboration on EV charging stations (follows deal with Ford announced last month).

·     DISH -4%; appears increasingly desperate to sell assets and raise money – and continues to battle speculation from insiders that it could face bankruptcy – NY Post https://tinyurl.com/2etr7zxp

·     MTN -5%; top/bottom-line miss as Q3 EPS $8.18/$1.24B vs. est. $8.84/$1.27B; lowers FY23 net income view to $251M-$283M from $321M-$396M; said Q3 pass product sales through May 30 for N.A. ski season increased approximately 6% in units and approximately 11% in sales.

·     PL -24%; after mostly in-line Q1, but lowered guidance for Q2 and for the current FY24 (Jan), citing lighter-than-expected bookings in Q1, longer sales cycles, and generally smaller deal sizes.

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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.