Morning Preview: April 05, 2024

Early Look

Friday, April 5, 2024









S&P 500










U.S. futures are looking at a modest bounce after stocks sunk on Thursday in a late day rollover, with the S&P 500 posting its 2nd biggest losing day of the year (biggest drop since February 13th), the Dow Jones Industrial Average dropped a 4th straight day, and the Nasdaq posted its biggest one day percentage drop in about a month as investors snapped up bonds and the Volatility index (VIX) jumped over 2 points to 16.35 (highest since November). So, what sparked the late day roll? Well comments from a handful of Fed speakers starting the decline after Federal Reserve Bank of Richmond Thomas Barkin said it’s “smart” for the central bank to take time to gain greater clarity about the inflation trajectory before lowering interest rates. Barkin’s comments followed by Federal Reserve President of Minneapolis Kashkari questioning the need for rate cuts at all in 2024 (vs. the originally forecasted 6-cuts or last look 3-cuts for 2024) if the economy remains strong. Chicago’s Fed Goolsbee added he wants to be more convinced inflation is on a path to 2% before cutting rates. Stocks extended losses late day as crude oil prices jumped after reports of an imminent attack by Iran on Israel for the recent consulate attack, which weighed on sentiment. This all comes ahead of Friday’s payrolls which are forecast to increase by at least 200,000 for a fourth straight month after a better ADP private payroll reading on Wednesday. In Asian markets, The Nikkei Index tumbled -781 points or nearly 2% to 38,992, the Shanghai Index dipped -5 points to 3,069, and the Hang Seng Index was little changed, down a point to 16,723. In Europe, the German DAX is lower by -260 points or 1.43% to 18,140, while the FTSE 100 is down -70 points to 7,905.


Market Closing Prices Yesterday

  • The S&P 500 Index dropped -64.28 points, or 1.23%, to 5,147.21.
  • The Dow Jones Industrial Average fell -530.16 points, or 1.35%, to 38,596.98.
  • The Nasdaq Composite slumped -228.38 points, or 1.40%, to 16,049.08.
  • The Russell 2000 Index declined -22.37 points, or 1.08% to 2,053.83.

Economic Calendar for Today

  • 8:30 AM ET                  Non-Farm Payrolls for March…est. +200K (prior +275K)
  • 8:30 AM ET                  Private Payrolls for March…est. +160K (prior +223K)
  • 8:30 AM ET                  Manufacturing Payrolls for March…est. 5K (prior -4K)
  • 8:30 AM ET                  Unemployment Rate for March…est. 3.9%
  • 8:30 AM ET                  Average Hourly Earnings M/M for March…est. +0.3% (prior +0.1%)
  • 1:00 PM ET                   Baker Hughes Weekly rig count data
  • 3:00 PM ET                   Consumer Credit for February…est. $15.0B





















10-Year Note




World News

  • Retail sales in the Euro Area decreased 0.50% in February of 2024 over the previous month, more than consensus of -0.40%. The volume of retail trade compared to last month decreased for food, drinks, tobacco by 0.4%; decreased for non-food products by 0.2%; decreased for automotive fuel in specialized stores by 1.4%.

Sector News Breakdown


  • Cinemark (CNK) upgraded to Overweight from Underweight at Wells Fargo.
  • Krispy Kreme (DNUT) upgraded to Overweight from Neutral at Piper Sandler and raised tgt to $20 from $14, following last week’s announcement of a national partnership with McDonald’s (MCD).
  • Kura Sushi (KRUS) Q2 EPS loss (-$0.09) vs. est. loss (-$0.03); Q2 revs $57.3M vs. est. $56.6M; raises FY24 revenue view from $239M-$244M to $243M-$246M (est. $242.9M).
  • Tesla Inc. (TSLA) is relying on technical support from Apple Inc. (AAPL) as the car company seeks to prove at an upcoming high-profile trial over the safety of its Autopilot system that a Model X driver who worked for the iPhone maker was playing a video game on his phone when he crashed and died.

Energy, Industrials and Materials

  • Chesapeake (CHK) said federal regulators are taking a closer look at their planned $7.4 billion acquisition of Southwestern Energy (SWN), as the companies have received requests from the Federal Trade Commission for additional information and documentary materials as the antitrust enforcer reviews the deal.
  • Duke Energy (DUK) has reached an agreement to sell its 50% ownership interest in Pioneer Transmission to John Laing Group, an international investor and active manager of core infrastructure assets.
  • Eaton (ETN) upgraded to Outperform from Sector Perform at RBC Capital.
  • Gulfport Energy (GPOR) downgraded to Sector Weight from Overweight at KeyBanc.
  • Nucor Corporation (NUE) announced that it is introducing a weekly Nucor Consumer Spot Price (CSP) to provide its customers with consistent and transparent communications regarding the Company’s hot-rolled coil spot pricing. Nucor will issue the first CSP on Monday, April 8, 2024.


  • First Horizon (FHN) upgraded to Outperform from Market Perform at Keefe Bruyette.
  • SoFi (SOFI) upgraded to Market Perform from Underperform at Keefe Bruyette.


  • Johnson & Johnson (JNJ) to acquire Shockwave Medical (SWAV) for $335 per share in cash, an enterprise value of approximately $13.1B including cash acquired.
  • AstraZeneca (AZN) Imfinzi improved overall survival in limited-stage lung cancer trial; Imfinzi results stem from Adriatic phase 3 trial; data supports Imfinzi role the treatment of early lung cancer after chemoradiotherapy.
  • Agilent (A) upgraded to Buy from Hold at Stifel and raised price tgt to $163 from $145.
  • Teladoc Health, Inc. (TDOC) announced that Jason Gorevic is departing the company, effective immediately. The Board of Directors has appointed Mala Murthy acting Chief Executive Officer while it searches for Mr. Gorevic’s permanent successor. Ms. Murthy has served as the Company’s Chief Financial Officer since 2019.

Technology, Media & Telecom

  • Samsung (SSNLF) is planning to more than double its semiconductor investment in Texas to approximately $44B. To aid with the finance of this expansion, Samsung is also expected to receive billions in subsidies from the U.S. Chips Act. – WSJ reports.
  • Altice USA (ATUS) downgraded to Underweight from Equal Weight at Wells Fargo.
  • Fox Corp. (FOXA) upgraded to Buy from Neutral at Seaport Research.
  • Digi Communications NV has agreed to sell part of its fiber networks in Spain to a consortium led by Macquarie Group Ltd. as it seeks funds to pay for its expansion plan in the country, including buying remedies from the Orange-Masmovil deal.


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.