Morning Preview: June 23, 2021

Early Look

Wednesday, June 23, 2021









S&P 500










Markets are looking modestly higher in the U.S., tracking gains in Europe and Asia as investors appear at ease over the inflation picture after Federal Reserve Chairman Powell reiterated yesterday in testimony to Congress that a spike in inflation likely was temporary, easing worries that the central bank could pull back on economic support. Stocks closed higher on Tuesday as the Nasdaq posted a record closing high, boosted by shares of large cap tech as Amazon, Microsoft, and Apple paced the gains in a further rotation into growth stocks. Amazon produced over $5.6 billion in total online sales in the United States on the first day of its Prime promotional event, according to Adobe Digital Economy Index. Helping boost markets further, Federal Reserve Chair Jerome Powell reaffirmed the U.S. central bank’s view during his testimony to Congress on the U.S. economy to not to raise interest rates too quickly based on the fear of coming inflation. Most of the 11 major S&P sector indexes rose, with consumer discretionary and energy among the biggest gainers, erasing most of last week’s market declines. In Asian markets, The Nikkei Index slipped -9 points to 28,874, the Shanghai Index rose 8 points to 3,566, and the Hang Seng Index jumped 507 points to 28,817. In Europe, the German DAX is down -75 points to 15,560, while the FTSE 100 is up 20 points to 7,110. Oil rises back above $75 as API weekly data shows stockpiles drop/shows tight market; Bitcoin rebounds 7% to $34,000, a more than $5,000 move off yesterday lows, having plunged more than 50% from its all-time highs above $65,000 in mid-April; Treasury yields remains little changed/tight range as 10-year at 1.475%.

Market Closing Prices Yesterday

·     The S&P 500 Index gained 21.65 points, or 0.51%, to 4,246.44

·     The Dow Jones Industrial Average rose 68.61 points, or 0.20%, to 33,945.58

·     The Nasdaq Composite jumped 111.79 points, or 0.79%, to 14,253.27

·     The Russell 2000 Index advanced 111.79 points, or 0.43% to 2,295.95


Events Calendar for Today

·     7:00 AM ET         MBA Mortgage Applications Data

·     9:45 AM ET         Markit Composite flash PMI, June

·     9:45 AM ET         Markit Manufacturing Services PMI, June…est. 61.5

·     10:00 AM ET      New Home Sales MoM for May…est. 870K

·     10:30 AM ET      Weekly DOE Inventory Data


Earnings Calendar:

·     Earnings Before the Open: PDCO, WGO

·     Earnings After the Close: CNXC, FUL, KBH, SCS


Other Key Events:

·     BMO Capital 2021 Chemical & Packaging Conference (virtual), 6/23

·     Goldman Sachs 17th Business Services, Transport & Leisure Conference (virtual), 6/21-6/23

·     Raymond James Human Health Innovation Conference (virtual), 6/21-6/23

·     Roth London Conference (virtual), 6/21-6/23

·     Jefferies Consumer Conference (virtual), 6/22-6/23

·     JPMorgan 2021 Energy, Power & Renewables Conference (virtual), 6/22-6/23

·     JPMorgan Payment & FinTech Forum (virtual), 6/23-6/24

·     Sidoti Investor Conference (virtual), 6/23-6/24





















10-Year Note





Sector News Breakdown


·     Xpeng (XPEV) shares rise upon on receiving approval to list on Hong Kong stock exchange; the company could raise as much as $2B in Hong Kong as soon as this year


Energy, Industrials and Materials

·     The American Petroleum Institute (API) showed a draw of 7.2M barrels of oil in the latest week, gasoline inventories show a build of 959K barrels, distillate inventories show a build of 992K barrels and Cushing inventories show a draw of 2.55M barrels.

·     Clean Energy Fuels (CLNE) said it contributed $50M to its 50-50 joint venture with BP Plc (BP) and forced the conversion of BP’s Class B units into Class A units.

·     Parker-Hannifin (PH) upgraded to Overweight from Sector Weight at KeyBanc

·     United Rentals (URI) upgraded to Buy from Neutral at Citi



·     IHS Markit (INFO) Q2 adj EPS 81c vs. est. 80c; Q2 revs $1.18B vs. est. $1.13B; raises FY21 adjusted EPS view to $3.15-$3.17 from $3.11-$3.16 (est. $3.16), ups FY21 revenue view to $4.635B-$4.675B from $4.535B-$4.635B (est. $4.6B) and boosts FY21 adj EBITDA view to $2.02B-$2.03B from $2B-$2.03B

·     Global Self Storage (SELF) 1.12M share Spot Secondary priced at $5.35

·     Intercontinental Exchange (ICE) upgraded to Conviction Buy from Buy at Goldman Sachs

·     LPL Financial (LPLA) downgraded to Buy from Conviction Buy at Goldman Sachs



·     BioXcel Therapeutics Inc (BTAI) launches $100M stock offering with $15M overallotment option on behalf of related stockholder

·     Enanta Pharmaceuticals (ENTA) says announced positive data from the first two dose cohorts of its Phase 1b study of EDP-514 in viremic chronic HBV patients who were not being treated with a nucleoside reverse transcriptase inhibitor

·     Gemini Therapeutics (GMTX) announces initial data from its ongoing phase 2a study of gem103 in patients with geographic atrophy secondary to dry age-related macular degeneration

·     GlaxoSmithKline PLC (GSK) said that it expects growth in sales and adjusted operating profit over the next five years to be underpinned by new vaccines and specialty medicines, as it set targets for the medium and l-t following planned 2022 demerger of its consumer healthcare business.

·     Hologic (HOLX) has received CE mark for its new Aptima CMV Quant assay in Europe, the company announced

·     United Therapeutics Corp. (UTHR) and Medtronic Inc. (MDT) have agreed to stop further efforts to develop and commercialize the implantable system for Remodulin, or ISR; the companies plan to wind down the development program and to support patients already enrolled in clinical studies of the ISR at United Therapeutics’ sole expense

·     Second Sight (EYES) 10M share Spot Secondary priced at $5.00

·     Teva Pharmaceuticals (TEVA) announced its U.S. launch of the first generic version of twice daily PERFOROMIST, formoterol fumarate inhalation solution, 20 mcg/2 ML, indicated to treat bronchoconstriction in patients with chronic obstructive pulmonary disease, including chronic bronchitis and emphysema


Technology, Media & Telecom

·     Intel Corp. (INTC) said it would create two new business units that would focus separately on software and high-performance computing and graphics; also said current executives Sandra Rivera and Raja Koduri will take on new senior leadership roles, while technology industry veterans Nick McKeown and Greg Lavender will join Intel.

·     Corning (GLW) said midday yesterday it is increasing its display glass substrate prices for Q3 “moderately” due to higher logistics and materials costs and other operational expenses during the extended glass shortage

·     Bentley Systems (BSY) announces offering of $500M of convertible senior notes

·     Sprinklr (CXM) 16.625M share IPO priced at $16.00

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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.