Morning Preview: August 16, 2023

Early Look

Wednesday, August 16, 2023









S&P 500










Stock futures are steady following sharp declines yesterday in the US and weak action in Asia overnight as Treasury yields take a breather after rising for the fourth session in a row Tuesday, coming off highs not seen since 2007. Concerns surrounding the Chinese economy weighed on sentiment this week after a handful of data points show continued weakness in one of the worlds largest economies. In stock news, Target (TGT) reported mixed Q2 results and lowered guidance but shares looking higher initially. The minutes of the Federal Reserve’s policy meeting last month are to be released at 2:00 PM today and may indicate how many policymakers feel the U.S. central bank is done raising interest rates and whether possible risks to the economy from the aggressive monetary tightening have taken on more weight in their debate. The Fed raised its benchmark overnight interest rate to the 5.25%-5.50% range at the July 25-26 meeting. There is also a bevy of economic data points for markets to chew on as well this morning. In Asian markets, The Nikkei Index dropped -472 points or 1.46% to settle at 31,766, while the Shanghai Index fell -26 points or -0.8% to 3,150. In Europe however, major averages are little changed with the German DAX steady at 15,773, while the FTSE 100 is down -0.4% at 7,360.


Market Closing Prices Yesterday

  • The S&P 500 Index dropped -51.86 points, or 1.16%, to 4,437.86.
  • The Dow Jones Industrial Average fell -361.24 points, or 1.02%, to 34,946.39.
  • The Nasdaq Composite slumped -157.28 points, or 1.14%, to 13,631.05.
  • The Russell 2000 Index declined -24.74 points, or 1.29% to 1,895.75.


Economic Calendar for Today

  • 7:00 AM ET                  MBA Mortgage Applications Data
  • 8:30 AM ET                  Housing Starts M/M for July
  • 8:30 AM ET                  Building Permits M/M for July
  • 9:15 AM ET                  Industrial Production M/M for July
  • 9:15 AM ET                  Capacity Utilization for July
  • 10:30 AM ET                Weekly DOE Inventory Data
  • 2:00 PM ET                   FOMC Meeting Minutes from July 26 meeting


Earnings Calendar:

  • Earnings Before the Open: CRWS EAT PFGC TGT TJX TWIN
  • Earnings After the Close: AVT CSCO KE NVGS PYCR SNPS WOLF


Other Key Events:

  • Deutsche Bank 2023 Transportation Conference, 8/15-8/16, in New York
  • Sidoti Micro-Cap Conference (virtual), 8/16-8/17
  • Stephens Super Regional Bank Field Trip, 8/16-8/17
  • Stifel Biotech Executive Summer Summit, 8/14-8/16, in Newport, RI





















10-Year Note





World News

  • U.S. June net overall capital flow +$147.8B vs -$161.6B in May (previous -167.6 bln); U.S. June net long-term flow (ex-swaps/other) +$195.9B vs. $23.6 bln in May; China’s U.S. Treasury securities holdings $835B in June vs 847 bln in May.


Sector News Breakdown


  • Target Corp. (TGT) Q2 EPS $1.80 vs. est. $1.40; Q2 revs fell -4.9% y/y to $24.3B vs. est. $24.91B; Q2 comp store sales -5.4% vs. +2.6% y/y and digital comp sales -10.5% y/y vs. +9% y/y; guides Q3 EPS $1.20-$1.60 vs. est. $1.83 and lowers year profit forecast to $7.00-$8.00 from prior $7.75-$8.75 (est. $7.81).
  • Jack Henry Associates (JKHY) Q4 EPS $1.34 vs est. $1.18 on revs $534.6Mm vs est. $512.78Mm; guides FY24 adj revs $2.19-2.21B vs est. $2.194B and adj op margin 22.1-22.2%.
  • Hyundai Motor India Limited (HYMTF) signed an asset purchase agreement for the acquisition and assignment of identified assets related to General Motors India’s Talegaon Plant in Maharashtra.


Energy, Industrials and Materials

  • Australia’s Azure Minerals said it rejected a buyout bid from Sociedad Quimica y Minera de Chile (SQM) valuing the lithium developer at A$901.4 million ($584.74 million), Reuters reported late Tuesday.
  • Mercury Systems (MRCY) Q4 adj EPS $0.11 vs est. $0.59 on revs $253.2Mm vs est. $282.8Mm, adj EBITDA $21.9Mm vs est. $59.34Mm; guides FY24 revs $950Mm-1.0B vs est. $1.046B, adj EBITDA $160-185Mm below est. $198.6Mm and adj EPS $1.14-1.48 vs est. $1.76;
  • Occidental Petroleum (OXY) enters into agreement to acquire direct air capture technology innovator Carbon Engineering in proposed deal for total cash consideration of approximately $1.1 bln; transaction is expected to close before end of 2023.
  • Saia, Inc. (SAIA) said July final LTL shipments per workday increased 6.0%, LTL tonnage per workday increased 3.4% and LTL weight per shipment declined 2.4% to 1,401 pounds y/y.



  • Coinbase (COIN) secures approval to bring federally regulated crypto futures trading to eligible US customers. Coinbase will now be the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures, on an integrated trading solution for our verified customers
  • dLocal (DLO) shares extend Tuesday’s rally after the FinTech reported better-than-expected results and named e-commerce veteran Pedro Arnt as its co-CEO.
  • H&R Block (HRB) Q4 adj EPS $2.05 vs est. $1.88 on revs $1.032B vs est. $1.013B; guides FY24 revs $3.53-3.585B vs est. $3.563B, EBITDA $930-965Mm vs est. $941.72Mm, adj EPS $4.10-4.30 vs est. $4.01; announced a 10% dividend increase today.



  • AngioDynamics, Inc. (ANGO) said the FDA granted Breakthrough Device designation for the Company’s AngioVac System for the proposed indications for use to include the non-surgical removal of vegetation from the right heart.
  • Agilent Technology (A) Q3 adj EPS $1.43 vs est. $1.36 on revs $1.67B vs est. $1.659B; guides FY revs $6.8-6.85B vs est. $6.971B and adj EPS $5.40-5.43 vs est. $5.50.


Technology, Media & Telecom

  • Intel (INTC) and Tower Semiconductor (TSEM) mutually agreed to terminate the proposed acquisition of Tower as they were unable to get the required regulatory approvals in a timely manner; Intel will pay a termination fee of $353M to TSEM.
  • Foxconn Technology is starting production of Apple’s (AAPL) new iPhone 15 at a facility in the Indian state of Tamil Nadu, and aims to deliver the phones only weeks after they begin shipping from factories in China, Bloomberg News reported.
  • (JD) Q2 EPS $0.74 vs. est. $0.68; Q2 revs rose 7.6% y/y to $39.7B vs. est. $38.5B; said continued to gain market share in core categories of home appliances and 3C, propelled by our supply chain advantages and service quality


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.