Morning Preview: July 09, 2024

Early Look

Tuesday, July 9, 2024









S&P 500










After closing at another record high on Monday, S&P and Nasdaq futures are pointing yet again to new highs, with non-stop strength in technology, communications and AI related stocks still leading markets. U.S. stocks ended mostly higher on Monday with NYSE breadth slightly positive as the S&P 500 and Nasdaq each scored new record closes on Monday as investors await Federal Reserve Chair Jerome Powell’s testimony (today and tomorrow) and inflation data due later this week (CPI Thursday, PPI Friday). The Dow Jones Industrial Average ended roughly 0.1% lower, while the S&P 500 edged up 0.1% to score a new record high, and the Nasdaq Composite rose 0.3%. Asian markets tracked US strength as the Nikkei Index surged 799 points or nearly 2% to settle at 41,580, the Shanghai Index gained 36 points or 1.26% to 2,959, while the Hang Seng Index finished flat at 17,523. In Europe, the German DAX is down -45 points to 18,426, while the FTSE 100 is little changed at 8,191. Federal Reserve Chair Jerome Powell on Tuesday testifies before the Senate Banking Committee in a hearing likely to take stock of whether recent signs of slowed inflation and a slowing U.S. job market will prompt the central bank to accelerate its plans to cut interest rates. The Fed next meets on July 30-31, and since the June meeting investors have increased bets, the Fed will cut rates in September. The Nasdaq and S&P 500 look to make it a 6th straight day of record gains.


Market Closing Prices Yesterday

  • The S&P 500 Index climbed 5.66 points, or 0.10%, to 5,572.85.
  • The Dow Jones Industrial Average fell -31.08 points, or 0.08%, to 39,344.79.
  • The Nasdaq Composite gained 50.98 points, or 0.28%, to 18,403.74.
  • The Russell 2000 Index advanced 11.94 points, or 0.59% to 2,038.67.

Economic Calendar for Today

  • 6:00 AM ET NFIB Small Business Optimism for June
  • 7:45 AM ET ICSC Weekly Retail Sales
  • 8:55 AM ET                  Johnson/Redbook Weekly Sales
  • 10:00 AM ET                 Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee
  • 1:00 PM ET US Treasury to sell $58B in 3-year notes
  • 4:30 PM ET API Weekly Inventory Data

Earnings Calendar:

  • Earnings Before the Open: BYRN HELE
  • Earnings After the Close: KRUS SAR SGH

Other Key Events:

  • SEMICon West, 7/9-7/11
  • China CPI M/M and Y/Y and PPI Y/Y for June





















10-Year Note




World News

  • Morgan Stanley’s equity strategist Michael Wilson said on Monday that “the chance of a 10% correction is highly likely between now and the election.” “Not because of the election but because uncertainty is likely to prevail,” Wilson said during an interview with Bloomberg Television on Monday.
  • US June Small Business Optimism Rises to 91.5; vs. est. 90.2.

Sector News Breakdown


  • Lennar (LEN) upgraded to Neutral from Underperform at Wedbush.
  • Helen of Troy (HELE) Q1 adj EPS $0.99 vs. est. $1.59 and sales fell -12% y/y to $416.8M vs. est. $445.8M; forecasts FY net sales $1.89B to $1.94B, vs. prior forecast $1.97B to $2.03B and FY adj EPS $7.00 to $7.50, below the prior forecast $8.70 to $9.20.
  • Athletic Brewing continues to ride the wave of Americans drinking less alcohol, the WSJ reports noting the biggest nonalcoholic beer brand in the U.S. has closed a new financing round that values it at around $800 million, people familiar with the matter said. That is roughly double its valuation from just two years ago.

Energy, Industrials and Materials

  • BP Plc (BP) shares slide after warning that its Q2 earnings would take a hit of up to $700 million from significantly lower refining margins; BP also said results would be hit by after-tax asset impairments and one-off contract provisions of between $1 billion and $2 billion. These include charges relating to a review of its Gelsenkirchen refinery in Germany.
  • Air Lease Corp. (AL) activity update for the second quarter of 2024; said as of June 30, its fleet comprised of 474 owned aircraft & 67 managed aircraft; fleet comprised of 307 new aircraft on order from Boeing and Airbus set to deliver through 2029.
  • C.H. Robinson (CHRW) was upgraded to Neutral from Underweight at JPMorgan and downgraded Werner (WERN) and Heartland Express (HTLD) to Underweight from Neutral in trucking.
  • GFL Environmental (GFL) downgraded to Market Perform from Outperform at BMO Capital.


  • Assured Guaranty (AGO) upgraded to Outperform from Market Perform at Keefe Bruyette.
  • Bank America (BAC) upgraded to neutral from underweight at Piper, predicting an upward inflection in its net interest income after an expected trough in the second quarter.
  • Bitcoin prices bounce, +2% around $57,450 after sliding the last week.
  • The Federal Reserve is mulling updating rules on how it calculates an extra layer of capital it imposes on US global systemically important banks, Reuters reports, citing four people familiar with the matter.


  • Indivior (INDV) cuts FY24 revenue view to $1.15B-$1.22B from $1.24B-$1.33B (est. $1.25B) and lowered its FY24 adjusted operating profit view to $285M-$320M from $330M-$380M to reflect continued adverse market dynamics impacting near-term Sublocade NR growth as well as the initial commercial adoption of Opvee; At the mid-point, the group continues to expect NR growth for Sublocade of 25% and adjusted operating income growth of 12% in FY24.
  • Intellia Therapeutics (NTLA) was sued by BlueAllele for patent infringement in the United States District Court for the District of Delaware as the complaint alleges infringement of BlueAllele’s bi-directional insertion template patents, which cover the company’s transformational platform used in the development and treatment of genetic diseases.

Technology, Media & Telecom

  • Walt Disney (DIS) unveiled plans to launch a new cruise ship that will set sail from Tokyo starting in fiscal 2028, adding a ninth vessel to the brand’s growing fleet. It is part of a 10-year, $60 billion expansion of Disney’s theme parks and cruise business. Disney currently has five cruise ships in operation.
  • Semiconductor price tgts raised at KeyBanc: Our quarterly supply chain findings were mixed. As such, we have revised several companies’ estimates and tgts. The firm said the improving bookings momentum they observed last quarter in China has not sustained as the auto market continues to correct; traditional server demand has begun to see a meaningful recovery, while gen AI demand remains robust; Most positive for NVDA (PT to $180), CRUS (PT to $155), MU (PT to $165), MPWR (PT to $975), MRVL (PT to $95), mixed for AMD (PT to $220), and negative for QCOM (PT to $225), ON (PT to $85), and LSCC


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.