Mid-Morning Look: June 17, 2021

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Mid-Morning Look

Thursday, June 17, 2021






DJ Industrials




S&P 500








Russell 2000






U.S. stock futures looked weaker overnight, adding to yesterday’s late day pullback after investors digested the FOMC rate decision and future interest rate outlook, but major averages rebounding following upbeat comments from billionaire hedge fund manager as overall averages are mixed. David Tepper in comments to CNBC’s Scott Wapner praised the Federal Reserve for maintaining its accommodative policy and said the stock market remains in good shape given the central bank’s current stance. As a result, Tepper said that the stock market is “still fine” for time being, even amid signs that sentiment within the Fed is growing for an earlier rate hike. That was enough to turn markets from “red” to green” rather quickly. Treasury yields also failing to extend yesterday’s modest spike, with the 10-yr down at 1.54% (off yesterday highs above 1.59% briefly). Yesterday, the Fed maintained its current monetary policy stance, leaving its key rate near zero and continuing its pace of asset purchases while moving up the timeline for a potential policy shift. Markets are mixed early as high growth sectors such as technology are outperforming, while commodity prices/stocks are among the biggest decliners, along with a reversal lower for banks/financial stocks after outperformance initially Wednesday after the FOMC decision. Gold prices down over 4%, along with sharp drops in silver, platinum, and other industrial metals as the dollar surges. Dow Transports underperform, dropping back below the 15,000 level (off recent record highs of 16,170).


Economic Data

·     Weekly Jobless Claims worse than-expected as claims reported at 412K vs. est. 360K, while prior month slightly revised to 375K from 376K; continued claims rose to 3.518M in latest week vs. est. 3.430M and from 3.517M prior week; the 4-week moving average fell to 395K from 403K; the U.S. insured unemployment rate unchanged at 2.5%







WTI Crude















10-Year Note





Sector Movers Today

·     Auto sector; Ford Motor (F) said it expects Q2 adjusted earnings before interest and taxes to top the company’s prior expectations and be significantly better than a year ago – but net income for Q2 is still expected to be substantially lower than a year ago; FSR and MGA signs long-term manufacturing deal, which finalizes all aspects of original agreement entered on Oct. 15 which Magna will supply the vehicle platform and build the electric carmaker’s Ocean SUV – they also confirmed production of all-electric Fisker Ocean SUV is projected to start in November; RIDE says it has no binding purchase orders from customers; CHPT partners with Mercedes-Benz USA to launch Mercedes Me Charge charging solution

·     Commodities, Metals & Materials; CMC 3Q adj EPS $1.04 tops the $0.83 estimate on better sales $1.8B vs. est. $1.7B; industrial metals pressured again (aluminum, copper, steel) with shares of AA, FCX, NUE falling – recall yesterday, reports China has stepped up its campaign to rein in commodity prices and reduce speculation in a bid to ease the threat to its pandemic rebound from soaring raw material costs; gold miners (precious metals) getting crushed after the FOMC interest rate outlook adjustment yesterday, dollar spiking, sinking silver, gold, platinum prices on the day (hits AUY, GOLD, AEM, NEM)

·     Casinos, Gaming, Lodging & Leisure sector; busy sector as JPMorgan raised tgts and estimates (well ahead of consensus) for cruse industry (CCL tgt to $36, NCLH to $38 and RCL to $123) as positive bookings momentum and pricing continues for the broader cruise industry; in towables, Northcoast downgraded CWH, THO and WGO to Neutral from Buy after latest checks revealed price increases are negatively impacting retail demand and there are new formidable competitors entering the RV industry that may alter 2022 market share dynamics. In the current RV Industry environment, we prefer LCII to the RV OEMs; in theme parks, Wedbush raised price tgt on FUN to $63 from $61 and unchanged on SIX as are comfortably ahead of the Street in most cases with what they believe to be substantial demand for theme parks outweighing the significant pinch from increased wages; in casinos, Hong Kong said will ease certain COVID travel rules by shortening hotel quarantines to 7 days for vaccinated travelers (WYNN, MLCO impacted); in boating sector (BC, MBUU), Truist reiterating ratings and estimates but lowering targets across the board by 5-15% to acct for negative comp overhang and incremental inflationary risks

·     Insurance; ALL said May catastrophe losses $213 million which comprised of 7 events, -13% YoY; VOYA downgraded to Neutral from Buy at Citigroup as continue to have a favorable view of the company’s business mix and management’s actions / execution over the past few years; late yesterday, the Justice Department said it would sue to stop insurance broker AON’s $30 billion bid for WLTW citing antitrust concerns. Shares of AJG were active as the co had agreed to buy assets from the two insurance brokers were selling in order to get antitrust approval in Europe



·     ACOR +16%; said it has repaid in full its convertible senior notes due 2021 using cash in hand – prior to repayment, there was $69 mln in aggregate principal amount of 2021 notes outstanding (debt pay down prompts upgraded at HC Wainwright saying removes overhang)

·     LEN +2%; Q2 EPS of $2.65 beat consensus of $2.37 and included a $0.30 net loss on investments, driven by stronger HB revenue and margins while orders increased +32% vs. BTIG +28% est

·     NNOX +15%; as submits 510(k) marketing application to the U.S. FDA for the first version of its multi-source 3-D medical imaging system, Nanox.ARC

·     NVAX +3%; along with gains in other Covid vaccine makers after CVAC vaccine shot results fell short on efficacy compared with other vaccines in a preliminary analysis of a large study

·     NVDA +4%; strength in technology, semiconductors specifically

·     RUN +6%; extends gains from yesterday amid strength in solar space – gain traction on potential application for EV charging (Morgan Stanley comments yesterday)



·     CVAC -46%; after saying its COVID-19 vaccine was only 47% effective in a late-stage trial, missing the study’s main goal and throwing

·     FCX -4%; as industrial metals extend pullback – broad selling pressure again in commodities after leading the early part of 2021 – recall yesterday, reports China has stepped up its campaign to rein in commodity prices and reduce speculation in a bid to ease the threat to its pandemic rebound from soaring raw material costs

·     HNST -8%; downgraded to Neutral from Buy at Guggenheim citing balanced risk/reward though notes reported solid 1Q results – the first quarter since becoming a public company – posted Q1 EPS loss but revs top estimates

·     JPM -1%; down along with other large cap banks (C, WFC, BAC), giving back yesterday gains, as Treasury yield fail to follow through higher after FOMC event yesterday

·     NEM -5%; gold miners down with selling pressure in precious metals today with dollar bouncing, interest rate outlook timeframe moved up (FCX, X, NUE, AA all lower)

·     NOVN -19%; shares tumble as 3.64M shares secondary priced at $11.00

·     UONE -5%; files to sell 2.93M shares of Class A common stock for holders



·     Angel Oak Mortgage (AOMR) 7.2M share IPO priced at $19.00

·     C4 Therapeutics (CCCC) 4.25M share Secondary priced at $37.00

·     iSpecimen (ISPC) 2.25M share IPO priced at $8.00

·     Northern Oil and Gas (NOG) 5M share Spot Secondary priced at $17.50

·     Novan Inc. (NOVN) 3.64M shares secondary priced at $11.00

·     Lyell Immunopharma (LYEL) 25M share IPO priced at $17.00

·     Verve Therapeutics (VERV) 14.04M share IPO priced at $19.00


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.

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