Overnight Summary & Early Morning Trading:
- The S&P 500 finished Wednesday lower by -0.27% at 6022.24 from Tuesday higher by 0.55% at 6038.81.
- Futures are lower this morning by -30.50 (-0.51%) at 5998.50 around 6:15 a.m. EDT.
- The cash range is now 100 points on the S&P 500 cash for the year, 6000 to 6100. Year to date the S&P 500 is up by 2.39% from 2.67% on Friday’s close.
Executive Summary:
- This is inflation week with PPI due out today. Earnings are quiet.
Breaking News:
- A Boeing Dreamliner 787 crashed overnight in India causing selling in the Dow.
Quote of The Day: None of note.
Key Events of Note Today:
- PPI is out today along with Weekly Natural Gas Inventories and Weekly Jobless Claims.
- 4-Week Bill Auction at 11:30 a.m. EDT.
- 30-Year Note Auction at 1:00 p.m. EDT.
- Fed Speak speakers in blackout until after next week’s meeting.
- President Trump participates in a bill signing ceremony, signs Executive Orders and participates with the First Lady in the Congressional Picnic.
Notable Earnings Out After The Close:
- Beats: ORCL +0.06 of note.
- Misses: None of note.
- Flat: OXM of note.
Capital Raises:
- IPOs For The Week: None of note.
- New IPOs/SPACs launched/News: None of note.
- IPOs Filed/Priced: None of note.
- Secondaries Filed or Priced:
- OKLO commences public offering of $400 million shares of common stock.
- INTS announces proposed public offering of common stock.
- HYMC announces public offering of units of the company for gross proceeds of approximately $40 million.
- Notes Priced:
- Notes Files: None of note.
- Convertibles Filed: None of note.
- Direct Offering: None of note.
- Exchangeable Subordinate Voting Shares: None of note.
- Private Placements:
- NET announces proposed private offering of $1.75 billion of convertible senior notes due 2030.
- GME announces proposed private offering of $1.75 billion of convertible senior notes due 2032.
- Selling Shareholders of note:
- ORIC files for 19,230,845 share common stock offering by selling shareholders.
- DFDV files for 12,375,896 share common stock offering by selling shareholders.
- Mixed Shelf Offerings:
- BLDP files mixed securities shelf offering.
News After The Close:
- Dana (DAN) announces agreement to sell off-highway business for $2.7 billion to Allison Transmission Holding (ALSN); $1 billion capital return authorization.
- Cisco (CSCO) higher in after-hours trading as Saudi Arabia taps company and Advanced Micro Devices (AMD) for AI cloud project. (The Information)
- Microsoft (MSFT) moving higher in after-hours trading as company works on developing a version of its Copilot AI tool for the Department of Defense. (Business Insider)
- GD awarded a $706.5 million US Army contract.
- USFD awarded a max $188 million Defense Logistics Agency contract for full-line food and beverage items.
- HHS Secretary Kennedy names 8 new members for vaccine panel.
- OSK awarded a $792 million modification to US Army contract.
Exchange/Listing/Company Reorg and Personnel News:
- FTRE names Anshul Thakral as Fortrea’s CEO, effective August 4.
- NMAX announces appointment of Ambassador Paula J. Dobriansky to its Board of Directors.
Buybacks: None of note.
Dividends Announcements or News
- Stocks Ex Div Today of note: TSM BABA PSA BR TLK ADT JXN BDC FRO MCY MDU CIVI INSW SFL
- Stocks Ex Div Thursday of note: None of note.
- FLXS announces 17% increase in quarterly dividend to $0.20/share.
- UHT increases quarterly cash dividend to $0.74/share from $0.735/share.
- WRB increases quarterly cash dividend 12.5% to $0.09/share from $0.08/share.
Stocks Moving Up & Down After The Close:
- Gap Up: SKIL +16.3%, ORCL +6.7%, FTRE +5% DAN +3.6%, SRE +3.2%, OSK +2.9%, UHT +2.4% of note.
- Gap Down: GTLB -13.9%, SLP -12.4%, OXM -10.1%, GME -11%, PPTA -9.9%, OKLO -4.4%, HPP -4%, NET -2.3%, ERIE -2.3%, DFDV -2.3% of note.
What’s Happening This Morning: (as of 7:50 a.m. EDT)
- Futures S&P 500 -31, NASDAQ 100 -106, Dow Jones -270. Europe is lower while Asia is lower as well. Bonds are at 4.37% from 4.50% on the 10-Year. Crude Oil and Brent Crude are lower with Natural Gas higher. Gold and Silver higher with Copper lower. The U.S. Dollar is lower versus the Euro, lower against the Pound and lower against the Yen. Bitcoin is at $107,080 from $109,319 lower by $-1692 (-1.57%).
Sector Action:
- Daily Positive Sectors: Energy, Utilities and Industrials were notable for their higher gains.
- Daily Negative Sectors: Consumer Cyclicals, Materials, Real Estate and Communication Services were notable for lower gains.
- One Month Winners: Communication Services, Technology, Industrials, Consumer Cyclicals, Financials of note.
- Three-Month Winners: Technology, Industrials, Communication Services, Financials and Utilities of note.
- Six-Month Winners: Communication Services, Financials, Consumer Defensive, Utilities and Materials of note.
- Twelve-Month Winners: Financials, Communication Services, Technology, Consumer Cyclical, Industrials and Utilities and of note.
- Year to Date Winners: Materials, Financials, Utilities, Industrials and Communication Services of note.
Bolded means the Sector is new to the period in which it falls.
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
- Thursday After the Close: ADBE RH of note.
- Friday Before The Open: None of note.
Notable Earnings of Note This Morning:
- Beats: UNFI +0.22 of note.
- Misses: None of note.
- Still to Report: None of note.
Company Earnings Guidance:
- Positive Guidance: None of note.
- Negative or Mixed Guidance: SLP of note.
Advance/Decline Daily Update: The A/D Line was weak on Wednesday.
Gap Ups & Down In Early Pre-Market: (+2% or down more than -2%):
- Gap Up: AAOI +13.2%, AUTL +11.6%, FFAI +9.3%, MESO +8.6%, FTRE +8.3%, CVGW +8.3%, ORCL +7.8%, ADCT +5.4%, ONC +5.1%, DAN +4.6%, EDIT +3.4%, CSWC +2.5%, of note.
- Gap Down: HYMC -21.3%, TNXP -20.2%, PPTA -14.5%, SLP -13.5%, GME -12.7%, OXM -10.1%, DFDV -8.3%, HPP -7.3%, BA -7.3%, OKLO -5.4%, BLDP -4.2%, SPR -3.8%, JOBY -3.3%, ORIC -3.1%, NET -2.9%, MOLN -2.5%, ERIE -2.3%, EH -2% of note.
Insider Action: No stock see Insider Buying with dumb short selling. No stock see Insider Buying with smart short sellers.
Rags & Mags: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.
- Bloomberg Lead Story: Trump Says Will Set Unilateral Tariffs in Two Weeks. (Bloomberg)
- Markets Wrap: Stock Futures and Bonds drop into PPI data on Trump tariff talk. (Bloomberg).
- A Shadow Fed Chairman in the offing? (CNBC)
- Air India plane which was a Boeing (BA) 787 Dreamliner crashed early this morning.
- China affirmed trade deal announced by the Trump administration yesterday. (Reuters)
- Israel ready to launch operation in Iran. (CBS News)
- Iran steps up enrichment. (Bloomberg)
- Salesforce.com (CRM) blocked AI competitors from using Slack data. (The Information)
- Big Take: The clash over ICE Raids in LA. (Podcast)
Bolded on story link means behind a Pay Wall.
Economic & Geopolitical:
- Economic Releases:
- PPI is due out at 8:30 AM ET, which has a high trading impact, and the prior PPI report was a decrease of -0.50% with an estimate of 0.20% for this month.
- Weekly Jobless Claims are due out at 8:30 a.m. EDT.
- Weekly Natural Gas Inventories are due out at 10:30 a.m. EDT.
- President Trump’s Daily Schedule.
- President Trump attends a Bill Signing at 11:00 a.m. EDT.
- President Trump signs Executive Orders at 3:30 p.m. EDT.
- President Trump participates in the Congressional Picnic at 7:00 p.m. EDT.
- Federal Reserve Speakers none of note today as they are in a blackout until next week’s meeting is over.
M&A Activity: None of note.
Moving Average Table: Remains at 94% for Equities. Bonds improve.
Meeting & Conferences of Note:
- Sellside Conferences:
- Deutsche Bank Global Auto Industry Conf
- Evercore ISI Consumer & Retail Conference
- Goldman Sachs Healthcare Conference
- J.P. Morgan European Healthcare Conf
- Mizuho Technology Conference
- RBC Capital Markets Mining & Materials Conf
- Rosenblatt Securities Technology Summit
- Sidoti & Co. Small Cap Conference
- Wells Fargo Industrials & Materials Conference
- Shareholder Meetings: FIVE, GME, ICCC, IR, LYV, SERV, SHOT
- Top Analyst, Investor Meetings: ADP, AMD, BLK, CAH, CAT, CLDX, OVID, TSLA
- Fireside Chat: None of note.
- FDA Presentation: None of note.
- R&D Day: None of note.
- Meetings:
- AAPL’s Worldwide Developer Conference (Day 4)
- AMD Advancing AI
- Cisco Live
- NVIDIA GTC Paris
- Three Part Advisors East Coast IDEAS Conf
- Zacks SCR Life Sciences Investor Forum
Upgrades & Downgrades:
The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting is to make the reader aware of market-moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.
Upgrades: TAC of note.
Downgrades: CAG LINE of note.
