Mid-Morning Look: June 13, 2022

Mid-Morning Look

Monday, June 13, 2022






DJ Industrials




S&P 500








Russell 2000






U.S. stocks open in “bear market” territory, with the S&P making new 2022 lows (after posting its worst week since January and on track for worst 3-day loss since March 2020) as fear rises ahead of this week’s FOMC policy meeting. The S&P 500 would officially enter a bear market with a close below 3,837.25, marking a 20% drop from its record high in early January. The decline in the Nasdaq 100 from its peak last November (-31.7%) is larger than its decline during the 2020 Covid pandemic crash (-30.4%). Bespoke note the Nasdaq 100 barely hanging onto a 2% gain since Election Day 2020, down 13% since Inauguration Day 2021. Dow Transports hitting 52-week lows. Not many places to hide as Treasury yields sharply higher across the curve as bonds fall (10-year 3.28%, 2-yr 3.2% and 30-yr 3.3%). Following last Friday’s “hotter” than expected CPI data, where consumer prices hit fresh 40-year highs (showing that inflation has not peaked), markets fear a more aggressive rate hike cycle than previously expected, with some economists calling for a potential 75 bps hike this week and roughly 175 bps in the next 3-meetings combined. That is a far cry from the prior expectation of two 50-bps hikes the next two meetings and then a potential pause in September. Oil tumbles along with gold as well, but Bitcoin and other crypt destruction grabbing lots of headlines today as Bitcoin (BTC) down as much as -19% below $23,500, while Ethereum (ETH) crumbles as much as -27% to $1,225. FOMC policy meeting this week and PPI inflation data tomorrow morning. So far, straight down day across the board for markets.







WTI Crude















10-Year Note





·     AMLX +6%; had its ALS drug Albrioza approved by Health Canada, though is still under FDA scrutiny, and an approval decision is expected in September

·     BLUE +36%; after a U.S. FDA panel unanimously backs company’s two gene therapies – eli-cel for a rare neurological disease and beti-cel for certain Beta-thalassemia patients. FDA decision for beti-cel and eli-cel expected by Aug 19 and Sept 16

·     DAWN +106%; following early data from a pivotal Phase 2 trial for its experimental therapy Tovorafenib in children with pediatric low-grade glioma, a brain tumor.

·     DRE +3%; be acquired by PLD in a deal worth $26 billion, including the assumption of debt, the companies said as Duke Realty shareholders would receive 0.475 times a Prologis share for each Duke Realty share they own, an improvement from prior offer of 0.466 times

·     EDU +2%; as Chairman Yu Minhong brought back English teaching with a live-streaming session on Friday evening on Douyin, the Chinese version of TikTok owned by ByteDance, SCMP reported (also upgraded at J.P Morgan to Overweight from Neutral

·     PWR ; upgraded to Buy from Neutral at UBS and raise tgt to $156 from $140 now that the solar overhang has cleared, and they have more confidence in EPS growth ahead



·     ASTR -25%; as its mission to send tiny storm-monitoring NASA satellites to orbit on Sunday failed after a second-stage booster engine shut down early in space; failure occurred roughly 10 minutes after a successful liftoff of Astra’s Rocket 3.3 at 1:43 p.m. ET

·     COIN -16%; Crypto currency stocks tumbling along with broader stock markets, with Bitcoin (BTC) down as much as -19% below $23,500, while Ethereum (ETH) crumbles as much as -27% to $1,225 as investors bail out of riskier assets (MSTR also tumble)

·     CZR -10% among biggest decliners in consumer discretionary space (NCLH, PENN, BKNG, LVS, EXPE) and leisure on fears of inflation and rates hitting consumer spending

·     DWAC -9%; after the SPAC that is buying the company behind Donald Trump’s Truth Social said it received another subpoena from the SEC related to the acquisition

·     PLD -7%; after agreeing to acquire DRE in $26B deal

·     REV -34%; extending Friday’s -52% decline after reports the Co is preparing to file for Chapter 11 protection as soon as this week (WSJ among other media outlets reported late Friday)


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.