CAPIS Morning Note – 7/14: Stocks Rally From Small Losses Overnight, PPI Comes In White Hot

Breaking News of Note: PPI rise 1.0% against estimates of 0.6% in June.  Federal Reserve Powell comments for today’s testimony is out and says ways off from altering policy and expects inflation to moderate. CEO Interview of Note: Blackrock (BLK) CEO Larry Fink was interviewed on CNBC and notes worried about inflation, does not think…

Breaking News of Note: PPI rise 1.0% against estimates of 0.6% in June.  Federal Reserve Powell comments for today’s testimony is out and says ways off from altering policy and expects inflation to moderate.

CEO Interview of Note: Blackrock (BLK) CEO Larry Fink was interviewed on CNBC and notes worried about inflation, does not think transitory. Concerned also about Delta Variant of Covid-19.  Too much cash on the sidelines so still bullish on stocks despite inflation and Delta Variant.

Earnings After The Close:

Beats: WAFD +0.10

Flat:  none

Misses: none

Capital Raises: 

IPOs Priced or News: None of note.

New SPACs launched: Wheels Up Experience (UP) will combine with Aspirational Consumer Lifestyle.

Secondaries Priced: CLDX IMRA LMAT  of note.

Notes Priced of note:  of note.

Common Stock filings: IMRA LMAT  of note.

Selling Shareholders of note: TBLA of note.

Private Placement of Public Entity (PIPE): None of note.

Mixed Shelf Offerings: SPPI of note.

Convertible Offering & Notes Filed:  of note.

Note Offerings Filed:  of note.

Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.

News After The Close:

Delta (DAL) to add 36 used Boeing (BA) and Airbus (EADSY) planes as travel demand recovers.

SandRidge Energy (SD) CEO resigns, names Grayson Pranin as new CEO.

Stable Road Acquisition Corp (SRAC) gets a fine of $8 million by SEC on misleading information on Momentus. (Reuters)

French regulator Autorite fines Google (GOOGL) 500 million Euros for noncompliance with several injunctions.

Dividend Increases: ALLY CMI

Stock Split:

Higher Guidance: LMAT  LB

Mixed Guidance:

Lower Guidance:

Buyback Announcements: LB ALLY

What’s Happening This Morning: Futures value reflects the change with fair value. China reported better trade data as exports rose 32%.

S&P 500 +14 Dow Jones Industrial Average +60  NASDAQ +98 Russell 2000 +10.  Fair values are mixed. Asia and Europe lower. VIX is at 17.35 from 17.20 in futures. VIX closed at 17.12 from 16.17. Gold and  silver higher with copper lower. WTI Crude Oil and Brent Oil Futures lower. Natural Gas is higher. $ is lower vs Euro, lower vs Pound and lower vs Yen. US 10 year Treasury price is at $133.17 from $133.44 with no change in yield at 1.37%. Bitcoin is at $32396 from $32924 yesterday morning and  higher by $56 and +0.17%.

Tuesday’s Action – 7/13 Close.  

Positive Sectors On Tuesday: Only Technology of note.

Negative Sectors On Tuesday: Real Estate, Industrials, Consumer Cyclicals and Utilities of note.

One Month Winners: Technology, Consumer Cyclical and Materials of note.

Three Month Winners: Energy, Real Estate and Healthcare of note.

Six Month Winners: Real Estate, Communication Services, Energy and Financials of note.

Twelve Month Winners: Materials, Communication Services, Industrials, Financials and Energy of note.

Year to Date: Energy, Communication Services, Financials, Real Estate and Industrials of note.

Stocks were lower, Bonds lower, U.S. Dollar dollar higher and Commodities were mixed. Updated 7/13 Close.

Upcoming Earnings Of: (sorted by market cap, highest to lowest with most visible names)

Today After the Close: none of note.

Thursday Before the Open: TSM, UNH, MS, SCHW, USB, TFC, PGR, BK, CTAS, CBSH, HOMB, WNS, HTLD of note.

Earnings This Morning Of Note:

Beats: BLK +0.63,DAL +0.28,  BAC +0.27

Flat:  none

Misses: PNC (0.05)

Still to Report: C, WFC

Insider Purchases:  One stock this morning with heavy short selling.

Below is the list of insider buys from this morning and is sorted by Erlanger Volume Swing (EVS). The idea here is simple. Find stocks where insiders are buying and the shorts are “dumb short sellers”. Only EXLS has dumb short sellers. Updated 7/13

Erlanger Research Advance/Decline Chart –Updated through 7/13 close. 

Gap Ups & Down In Early Pre-Market:

Gap up: CMP +17%, CPLG +9%, SPPI +5%, SCPH +4%, PRGO +4%, MDGL +4%

Gap down: IMRA -15%, SRAC -13%, GKOS -9%, LMAT -8%, SCR -8%

Rags & Mags: Highlighted Stories may be clicked through to the original story.  Repeated stories from prior days never listed, i.e. “rehashed news”.

Stocks making the biggest moves  BAC BLK DAL PTON (CNBC)

CNBC say several more months before a decision about use of a Covid-19 booster shot. This was only partially written yesterday.

Senate Democrats reach a deal on infrastructure for $3.5 to $4 trillion. Will include tax increases. Not sure if Senate Moderates will support. Done on party lines. (NYT)

White House aides are worried about inflation last more than a year. (NYT)

Federal Reserve Chairman Powell and Treasury Secretary Yellen to discuss housing with regulators on Friday. (Bloomberg)

Ark Investment (ARKK) sold Chinese stocks in last couple days. (Bloomberg)

Apple (AAPL) to increase iPhone production by 20%. (Bloomberg)

Dollar General (DG) looks to hire 50,000 workers by Labor Day.

eBay (EBAY) sells part of Adevinta stake to Permira for $2.25 billion.

Robinhood looks at the impact of recent inflation. Weber Grill to go public

Index Moving Averages: 7/12 Close – The Confidence Score moves to 93% from 90%.  


The President and The Vice President receive the President’s Daily Brief, Oval Office, 10:00 a.m. EST

Press Briefing by Press Secretary Jen Psaki, 12:30 p.m. EST

The President meets with a bipartisan group of Governors and Mayors to discuss the importance of the critical investments in the Bipartisan Infrastructure Framework to States and cities across the country; The Vice President, the Secretary of Commerce, and the Secretary of Labor also attend, Roosevelt Room, 3:00 p.m. EST

Fed Speakers

Federal Reserve Minneapolis President Neel Kaskari to speak at 1:30 EDT.


Weekly API Petroleum Institute Data is due out at 4:30 p.m. EDT.

Federal Reserve Beige Book is due out at 2:00 p.m. EDT.

Federal Reserve Chairman Jerome Powell begins testimony before Congress at 12:00 p.m. EDT.

June PPI is due out at 8:30 a.m. EDT and is expected to fall to 0.5% from 0.7%.

30 Year Treasury Auction of $24 billion at 1:00 p.m. EDT.

M&A Activity:

Verso (VRS) receives proposal by Atlas Holdings for $20 a share in cash, little premium as closed at $19.17.

Meetings of Note:

Sellside Conferences: Ladenburg Thalman Healthcare Conference (7/13-14) William Blair Biotech Focus Conference (7/13-15)

Company Meetings:   AIM (Webcast) SCPH (Conference Call)

Industry Meetings: None of note.

Upgrades & Downgrades: Todays recs see 14upgrades and 4 downgrades.

Tuesday Recs