Morning Preview: January 10, 2023

Early Look

Tuesday, January 10, 2023









S&P 500










U.S. futures are edging slightly lower, as investors express caution ahead of Fed Chairman Powell comments at 9:00 AM this morning. S&P futures trading in a narrow range overnight (3,915.75 hi and 3,897.50 low) after markets slumped on Monday following hawkish central bank comments. San Francisco Fed President Mary Daly pushed back against market optimism, saying she is paying attention to core services ex-housing and that Fed rate hikes above 5% are likely. Atlanta Fed President Raphael Bostic repeated he favors getting rates to 5%-5.25% and holding above 5% for a long time. Markets this morning likely concerned over the potential that Powell’s comments come across a tad more hawkish than before to push back on the perceived loosening in financial conditions. The 10-year Treasury yield rose 3 bps to 3.55% and the 2-year yield rose 3 bps to 4.23%. In Asian markets, The Nikkei Index rose 201 points to 26,175, the Shanghai Index slipped -6 points to 3,169, and the Hang Seng Index dropped -56 points to 21,331. In Europe, the German DAX is down about -70 points to 14,725, while the FTSE 100 dipped -15 points to 7,710. In addition to Powell, investors watching the JPM Healthcare Conference and ICR Retail Exchange Conference this week.


Market Closing Prices Yesterday

·     The S&P 500 Index slipped -2.98 points, or 0.08%, to 3,892.10

·     The Dow Jones Industrial Average fell -112.66 points, or 0.33%, to 33,517,95

·     The Nasdaq Composite gained 66.36 points, or 0.63%, to 10,635.65

·     The Russell 2000 Index advanced 3.12 points, or 0.17% to 1,795.91


Economic Calendar for Today

·     4:30 AM ET           Powell, Bailey, Schnabel Speak at Riksbank in Stockholm

·     6:00 AM ET           NFIB Small Business Optimism for December

·     7:45 AM ET           ICSC Weekly Retail Sales

·     8:00 AM ET           Fed’s Powell Discuses Central Bank Independence at Riksbank Event

·     8:55 AM ET           Johnson/Redbook Weekly Sales

·     9:00 AM ET            Fed Chairman Powell speaks

·     10:00 AM ET         Wholesale Inventory M/M for November

·     1:00 PM ET            US Treasury to sell $40B in 3-year notes

·     4:30 PM ET            API Weekly Inventory Data


Earnings Calendar:

·     Earnings Before the Open: ACI BBBY SNX

·     Earnings After the Close: SAR


Other Key Events:

·     Fed Chair Jay Powell is set to speak on a panel that will discuss central bank independence in Stockholm at a symposium organized by Sweden’s central bank

·     JPMorgan 41st annual Healthcare Conference, 1/8-1/12, in San Francisco, CA

·     ICR 2023 Retail Conference, 1/9-1/12, in Orlando, FL

·     Goldman Sachs European Utilities Investor Relations Day 2023 (virtual)

·     Goldman Sachs 2023 Macro Themes: Currencies & EM (virtual), 1-10/1-12

·     Needham 25th Annual Growth Conference (virtual), 1/10-1/12





















10-Year Note





Sector News Breakdown


·     Amazon (AMZN) plans to shut three UK warehouses in a move that will impact 1,200 jobs

·     Express, Inc. (EXPR) said it sees FY22 comparable sales of around flat, consistent with prior outlook and EPS loss ($1.18 to $1.22), within the range of prior outlook, excluding impact of $260 million in proceeds from WHP partnership expected to close January 2023

·     PriceSmart (PSMT) 1Q EPS $1.05 vs est. $0.98 on revs $1.05B vs est. $1.08B, comp net merchandise sales +5.0%, membership renewal 87.9%

·     Wolverine World Wide (WWW) cuts FY22 revenue view to $2.685B from $2.74B-$2.79B prior and vs. consensus $2.68B; guided Q4 EPS at loss (15c)-(5c) vs. est. loss (-$0.11) and revs $665M vs. est. $658.8M and FY22 EPS at $1.41-$1.51 vs. est. $1.45



·     APA Corp. (APA) assumed with Underperform from Buy at Mizuho and cut tgt to $48 from $52

·     Comstock Resources (CRK) assumed with a Neutral from Buy at Mizuho; cut tgt to $17

·     Chevron (CVX) assumed to Neutral from Buy at Mizuho with a target of $200 from $185

·     Exxon Mobil (XOM) assumed with Buy from Neutral at Mizuho and raise tgt to $140 from $90

·     ONEOK (OKE) reaches agreement on Medford NGL Facility insurance claim for $930 million

·     Phillips 66 (PSX) assumed with Neutral from Buy at Mizuho, but up tgt to $121 from $115

·     Southwestern Energy (SWN) assumed Neutral from Buy at Mizuho and cut tgt to $9 from $11



·     Agilent (A) authorizes $2 billion share repurchase program

·     Accolade Inc. (ACCD) 3Q adj EBITDA ($10.2M) vs est. ($11.85M) on revs $90.9Mm vs est. $87.5Mm; sees 4Q revs $97-101Mm vs est. $101.7Mm and adj EBITDA ($1M)-$3M vs est. $3.8Mm; sees FY24 revs about $410Mm vs est. $405.4Mm and adj EBITDA margin (7)%-(5)%

·     Berkeley Lights (BLI) said it sees FY22 revenue $78M-$78.5M, below consensus $85.36M citing a delay in several Beacon platform placements, which are now expected in 2023, and lower revenue from partnership and services contracts.

·     CVS Health (CVS) is looking into an acquisition of Oak Street Health (OSH), Bloomberg reported citing people familiar with the matter

·     OrthoPediatrics (KIDS) guides prelim Q4 revs $31M vs. est. $33.8M, representing growth of 25% compared to $24.8M y/y

·     Sight Sciences (SGHT) sees 4Q revs $20.4-20.6Mm vs est. $20.1Mm; announces CFO/Treasurer steps down

·     Sutro Biopharma (STRO) announces update from stro-002, luveltamab tazevibulin (luvelta), phase 1 dose-expansion study and registrational plans in advanced ovarian cancer; plans to initiate phase 2/3 registration-directed study called reframe in Q2


Industrials & Materials

·     A.O. Smith (AOS) downgraded to Sell from Neutral at UBS

·     AZZ Inc. (AZZ) 3Q adj EPS $0.88 vs est. $0.79 on revs $373.3Mm vs est. $359.8Mm; adj EBITDA $71.2Mm vs est. $74.5Mm; reaffirms FY sales guide $1.27-1.32B vs est. $1.33B, raises adj EPS guide to $4.05-4.25 from $3.80-4.00 vs est. $3.82

·     Chemours (CC) downgraded to sector perform from outperform at RBC on expectations that a challenging fourth quarter for the chemicals firm will feed into the first half of 2023.

·     PPG Industries (PPG) downgraded to sector perform from outperform at RBC with limited upside seen for the paint-maker’s stock amid expectations that volumes will come under pressure

·     Boeing (BA) downgraded to equal weight from overweight at Morgan Stanley, saying the stock is now approaching fair value following recent outperformance

·     Paccar (PCAR) downgraded to Underperform from Peer Perform at Wolfe Research

·     WD-40 Co (WDFC) 1Q $1.02 vs est. $1.09 on revs $134.4Mm vs est. $140.7Mm; reit FY23 guide, sees FY sales $545-570Mm vs est. $544.2Mm, gross margin 51-53%, EPS $5.09-5.24 vs est. $5.17

·     Virgin Orbit (VORB) shares fell after the company confirmed that its first launch out of the United Kingdom failed to reach orbit. This was Virgin Orbit’s sixth mission to date, and its second launch failure – CNBC


Technology, Media & Telecom

·     Microsoft (MSFT) considers $10 billion investment in ChatGPT Creator; ChatGPT has crowned a year of advances for AI applications; OpenAI already working on next generation of technology – Bloomberg

·     E2open Parent Holdings (ETWO) Q3 EPS $0.06 vs. est. $0.07; Q3 revs rise 20.4% y/y to $164.9M vs. est. $168.1M; cuts FY23 revenue view to $655M-$660M from $668M-$676M (est. $669.7M); FY23 adjusted ebitda is reaffirmed in range of $217M-$223M

·     Udemy Inc. (UDMY) sees 4Q revs $164-167Mm vs est. $166Mm; President Greg Brown promoted to CEO role and will join board of directors

·     Altice USA (ATUS) downgraded to Neutral from Buy at Goldman Sachs

·     ChipMOS (IMOS) reports Q4 revenue $152.5M, down 10.8%


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.