Morning Preview: June 30, 2021

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Early Look

Wednesday, June 30, 2021









S&P 500









Stocks are pulling back a bit off record highs in the S&P and Nasdaq to close out the first half of the year. The Dow is in jeopardy of being the only major index to close June in the red as tech stocks have led the recent rally. Oil prices have rallied after last night’s API data showed a large drop in crude inventories. Markets will be watching ADP’s private employment report this morning ahead of the NFP jobs report Friday. Additionally, DIDI makes its much-anticipated NYSE debut today in the biggest US share offering by a Chinese company since Alibaba and biggest IPO of the year so far. In Asian markets, The Nikkei Index is off by 132.5 points, the Shanghai Index is higher by 18 points, and the Hang Seng Index has pulled back 152 points. In Europe, the German DAX is lower by 140 points, while the FTSE 100 has slipped 40 points from yesterday.


Market Closing Prices Yesterday

The S&P 500 Index rose 1.46 points, or 0.03%, to 4,292

The Dow Jones Industrial Average advanced 11.32 points, or 0.03%, to 34,294

The Nasdaq Composite gained 27.83 points, or 0.19%, to 14,528

The Russell 2000 Index declined -13.49 points, or 0.58% to 2,308


Economic Calendar: 

·      7:00 AM ET                 MBA Mortgage Applications Data

·      8:15 AM ET                 ADP Employment Change for June

·      9:45 AM ET                 Chicago PMI for June

·      10:00 AM ET               Pending Home Sales MoM for May

·      10:30 AM ET               Weekly DOE Inventory Data


Earnings Calendar:

·      Earnings Before the Open: BBBY, GIS, SCHN, STZ, UNF

·      Earnings After the Close: FC, MU


Other Key Events:

·      Raymond James Company Meetings at Mobile World Congress (virtual), 6/28-7/1

·      China Caixin Manufacturing PMI for June





















10-Year Note





World News

Euro zone inflation was 1.9% in June, slightly lower than the 2.0% recorded in May, and in-line with forecasts and the ECB target.


Sector News Breakdown


Ammo (POWW) 4Q adj EPS $0.04 vs est ($0.01) on sales $24.2Mm vs est $23.95Mm

Barnes & Noble Education (BNED) Q4 EPS ($0.86) vs est. ($0.57) on sales $222.8M vs est. $230.5M; q$ retail comp sales -6.9%

LMP Automotive (LMPX) Q1 adj EPS $0.13 vs est. ($0.05) on sales revs $33M vs est. $30M. sees Q2 revs $147.6M vs est. $116M

DA Davidson initiated VOXX at Buy with a $21 PT

Didi Global (DIDI) raised $4.4B in its IPO, pricing it at $14/ADS at the top end of its indicated range and upsizing it to 317 million ADS vs the planned 288 million ADS; the company is expected to debut on the NYSE today


Atmos Energy (ATO) filed for a mixed shelf of up to $5B

TechnipFMC (FTI) announced it was awarded a subsea contract by Petrobras (PBR) for the Buzios 6-9 fields located in the Santos basin offshore Brazil

Piper named Shoals Technologies (SHLS) a new OW with a $43 PT and vie wit as a core holding for energy transition investors



electroCore (ECOR) announced its plans for a stock offering but did not disclose its size

Mizuho initiated Buy ratings on Cabaletta Bio (CABA) with a $22 PT, Arcutis Biotherapeutics (ARQT) with a $58 PT, and Eloxx Pharmaceuticals (ELOX) bwith a $3.10 PT

Avid Bioservices (CDMO) Q3 revs $27.6M vs est. $21.6M; guides FY22 revs $115-117Mm vs est. $112.2Mm

Altimmune (ALT) discontinued its development of AdCOVID after it did not stimulate an adequate immune response in healthy volunteers, and will focus on its ongoing obesity and liver programs

Cervel Therapeutics (CERE) filed for an offering of 14M shares


Industrials & Materials

Aerovironment (AVAV) 4Q adj EPS $1.04 vs est $0.81 on revs $136Mm vs est $147.2Mm, funded backlog $211.8Mm as of April 30; guides FY revs $560-580Mm vs est $571.5Mm

MP Materials (MP) was initiated at Outperform with a $45 PT at Baird

Eagle Bulk Shipping (EGLE) announced a secondary offering of 1.5M shares


Technology, Media & Telecom

QUMU reported preliminary Q2 results and expects revs $5.7-5.9M vs est. $6.57M, Q2 net loss $4.3M-$4.9M

COHU new Buy with $65 pt at Rosenblatt

Grid Dynamics (GDYN) launched a proposed follow-on public offering of about 10.1M shares

Fastly (FSLY) appointed Ron Kisling as CEO; Kisling is currently serving as CFO at GOOGL’s Fitbit

Advanced Micro Devices (AMD) won unconditional EU merger approval to buy Xilinx (XLNX)


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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