Morning Preview: December 27, 2022

Early Look
Tuesday, December 27, 2022
Futures |
Up/Down |
% |
Last |
Dow |
220.00 |
0.66% |
33,595 |
S&P 500 |
26.25 |
0.66% |
3,895 |
Nasdaq |
60.50 |
0.54% |
11,135 |
U.S. futures are pointing to a higher open, with the S&P +0.65% approaching 3,900 (which stands as the overnight high) as investors return from the three-day Christmas holiday weekend to light volumes. U.S. futures and Asian markets get a boost after reports China will reopen its border to international travelers on January 8th, after the country made an abrupt U-turn on its COVID-19 containment policies earlier this month. News flow is quiet, as expected, in the final week of trading for 2022. In Asian markets, The Nikkei Index rises +0.15% at 26,447, the Shanghai Index gains 30 points to 3,095, and the Hang Seng Index fell -86 points to 19,593. In Europe, the German DAX is up +0.75% to 14,045. Oil prices hit a three-week high with WTI crude above $80 per barrel and Brent topping $85 as China’s latest easing of COVID-19 restrictions spurred hopes of a fuel demand recovery.
Market Closing Prices Yesterday
· The S&P 500 Index climbed 22.43 points, or 0.59%, to 3,844.82
· The Dow Jones Industrial Average rose 176.44 points, or 0.53%, to 33,203.93
· The Nasdaq Composite gained 21.74 points, or 0.21%, to 10,497.86
· The Russell 2000 Index advanced 6.85 points, or 0.39% to 1,760.93
Economic Calendar for Today
· 7:45 AM ET ICSC Weekly Retail Sales
· 8:30 AM ET Advance Goods Trade Balance for November
· 9:00 AM ET Monthly Home Price Index M/M for October
· 9:00 AM ET CaseShiller 20-City Index M/M for October
· 10:30 AM ET Dallas Fed manufacturing for December
· 1:00 PM ET US Treasury to sell $42B in 2-year notes
Macro |
Up/Down |
Last |
Nymex |
0.79 |
80.35 |
Brent |
0.89 |
84.81 |
Gold |
13.00 |
1,817.20 |
EUR/USD |
0.003 |
1.0665 |
JPY/USD |
0.46 |
133.32 |
10-Year Note |
+0.03 |
3.777% |
World News
· South Korea suspended some commercial flights and scrambled military assets to shoot at drones from North Korea that crossed their heavily armed border Monday, Bloomberg reported
Sector News Breakdown
Consumer
· Costco Wholesale Corp. (COST) mentioned positively in Barron’s noting the stock has slipped 19% this year on less-than-robust sales, making it a buying opportunity
· Mattel Inc. (MAT) mentioned positively in Barron’s saying the toy company will get a boost from movie tie-ups for its Monster High and Barbie dolls products, with sales growth pegged at 4% to 5% annually through 2024
· Nio Inc. (NIO) cuts its Q4 delivery outlook to 38,500-39,500, down from previous outlook of 43,000-48,000m saying it has been facing challenges in deliveries and productions, along with supply chain constraints, caused by the outbreak of COVID-19 in China
· Nio Inc. (NIO) founder and Chief Executive Officer William Li said the Chinese EV maker may face a challenging first half as a cut in government subsidies and the broader economic slowdown erode local demand in the world’s largest new-energy vehicle market – Bloomberg
· Tesla Inc. (TSLA) halted production at its Shanghai plant on Saturday, Reuters reported, bringing forward by one day a plan to suspend operations at its most productive manufacturing hub for a week
· Purple Innovation (PRPL) files $90M mixed securities shelf
Energy, Industrials and Materials
· Oil prices hit a three-week high with WTI crude above $80 per barrel and Brent topping $85 as China’s latest easing of COVID-19 restrictions spurred hopes of a fuel demand recovery
· Boeing Co. (BA) was awarded a U.S. Army contract valued at up to $497.1 million
· Lockheed Martin Corp. (LMT) won a Navy contract worth up to as much as $1.05 billion
· Southwest Airlines Co. (LUV) canceled about two-thirds of its flights Monday or about 2,700, in a meltdown that stranded thousands of customers and that worsened while other airlines began to recover from the holiday winter storm.
Healthcare
· KalVista Pharmaceuticals, Inc. (KALV) announced that it has entered into a subscription agreement with institutional investors to sell, in a registered direct offering, an aggregate of 9.484 million shares of common stock at a price of $6.00 per share and 182,470 prefunded warrants at a price of $5.999 for total gross proceeds of approximately $58 million
· SpringWorks Therapeutics, Inc. (SWTX) said it has completed the submission of a New Drug Application (NDA) to the FDA for nirogacestat, an investigational gamma secretase inhibitor, for the treatment of adults with desmoid tumors.
· BrainStorm Cell Therapeutics (BCLI) says the FDA will discuss the contents of a refusal to file letter regarding its New Biologics License Application for NurOwn for the treatment of ALS. FDA scheduled a Type A meeting on Jan. 11, 2023
Technology, Media & Telecom
· Apple Inc’s (AAPL) Japan unit is being charged 13 billion yen ($98 million) in additional taxes for bulk sales of iPhones and other Apple devices to foreign tourists that were incorrectly exempted from the consumption tax, the Nikkei newspaper said.
· Japan’s Kyocera Corp plans to invest 1.3 trillion yen ($9.77 billion) for manufacturing facilities and development of semiconductor-related products over three years starting in the 2023/24 business year, the Nikkei daily reported
· Leonteq said it was lowering its profit expectations for 2022 due to reduced client demand in the second half of the year.
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.