Morning Preview: July 14, 2022

Auto PostDaily Market Report

Early Look

Thursday, July 14, 2022









S&P 500










A rough start to the trading day with S&P futures down a little over 1% at 3,760 but has bounced off overnight lows of 3,806.25 with the dollar up 0.5% as investors increase their bets that the Fed will raise interest rates by 100 basis points when it meets later this month after data showed US consumer prices rose 9.1% in June. Stocks slipped on Wednesday after June inflation data hit its highest level since 1981, adding to fears that the Fed will get more aggressive to tame rising prices. Next up weekly jobless claims and producer prices (PPI) for June where ests for headline PPI M/M to rise +0.8% for June and Y/Y to rise +10.7%. For core reading (ex food & energy) PPI est. to rise +0.5% M/M and +8.1% Y/Y. Bank earnings on tap this morning including Dow component JPMorgan (JPM) and Morgan Stanley (MS). Gold has completely lost its haven status, erasing yesterday gains on the dollar strength while oil prices slip. In Asian markets, The Nikkei Index climbed 164 points to 26,643, the Shanghai Index dipped a few points to 3,281, and the Hang Seng Index edged lower -46 points to 20,751. In Europe, the German DAX is lower by -0.6% to 12,677, while the FTSE 100 is down about -40 points to 7,112. In crypto, lender Celsius Network filed for Chapter 11 bankruptcy after a cash crunch. The yen falls to fresh 24-year lows as the dollar extends gains. JPMorgan declines this morning after Q2 results disappoint.

Market Closing Prices Yesterday

·     The S&P 500 Index dropped -17.02 points, or 0.45%, to 3,801.78

·     The Dow Jones Industrial Average fell -208.54 points, or 0.67%, to 30,772.79

·     The Nasdaq Composite slumped -17.15 points, or 0.15%, to 11,247.58

·     The Russell 2000 Index declined -2.15 points, or 0.12% to 1,726.04


Economic Calendar for Today

·     8:30 AM ET          Weekly Jobless Claims

·     8:30 AM EST        Continuing Claims

·     8:30 AM ET          Producer Price Index (PPI) MoM for June

·     8:30 AM ET          Producer Price Index (PPI) YoY for June

·     8:30 AM ET          PPI core, Ex: Food & Energy MoM for June

·     8:30 AM Et           PPI Core, Ex: Food & Energy YoY for June

·     10:30 AM ET        Weekly EIA Natural Gas Inventory Data


Earnings Calendar:

·     Earnings Before the Open: CAG, CTAS, FRC, JPM, MS

·     Earnings After the Close: AOUT


Other Key Events:

·     China Industrial output, Retail Sales, House Price data for June

·     China Q2 GDP data

·     SEMICon West 2022, 7/12-7/14, in San Francisco

·     William Blair Biotech Focus Conference (virtual), 7/12-7/14





















10-Year Note





World News

·     The bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was -19.6 vs -33.4 last week. Bulls rise to 26.9% from 19.4%, Neutrals fall to 26.6% from 27.8%, and Bears fall to 46.5% from 52.8%

·     European Commission sees EU GDP at 2.6% this year and 1.4% in 2023- down from May predication of 2.7% and 2.3%; Inflation seen at 7.6% in 2022 and 4% next year, up from 6.1% and 2.7%.

·     Indonesia and India on Thursday underscored a call by emerging nations for more climate change financing, warning that rising energy prices due to the Ukraine war would make it difficult for countries to cut emissions – Reuters


Sector News Breakdown


·     Costco (COST) upgraded to Buy from Hold at Deutsche Bank

·     Dollar General (DG) downgraded on balanced risk/reward at Citi

·     Major League Baseball, and MGM Resorts International (MGM) and BetMGM, announced the renewal and expansion of an integrated partnership that, in 2018, designated MGM Resorts as MLB’s first official gaming sponsor.



·     WTI crude -2.8% to $93.58 having tumbled in the past two weeks on recession concerns and a surging dollar, and despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruption in Libya

·     ERCOT posts operational notice on website calls on certain businesses to reduce power use Texas grid issues emergency response notice on tight supplies



·     JPMorgan (JPM) Q2 EPS $2.76 vs. est. $2.88; Q2 revs $31.63B vs. est. $31.97B; Provision for credit losses $1.10 billion, vs. estimate $1.07 billion; Return on equity 13%, estimate 13.5%; Q2 NII excluding markets was $13.7 billion, up 26%, driven by higher rates and balance sheet growth; qtrly fixed income markets revenue was $4.7 billion, up 15%; says temporarily suspended share buybacks which will allow us maximum flexibility to best serve our customers

·     Horace Mann (HMN) guides FY22 core EPS $2.10-$2.30 below consensus $3.38 saying it experienced Q2 catastrophe losses well above the company’s 10-year historical average; said Q2 catastrophe losses for will be approximately $44M-$47M, pretax.

·     Manning & Napier (MN) announced that preliminary June 30, 2022, assets under management were $18.5 billion, which included approximately $13.3 billion in separately managed accounts and approximately $5.2 billion in mutual funds and collective investment trusts.

·     Tradeweb (TW) backs FY22 CapEx view $62M-$68M and backs FY22 adjusted expense’s view $620M-$655M

·     United Insurance Holdings Corp. (UIHC) said its Board has initiated a review of its strategic and capital raising alternatives and will consider a wide range of options: amongst other things, a potential sale, merger, subsidiary divestiture, formation of a new Florida-domiciled reciprocal exchange, as well as the sale of equity, surplus notes or other financing or strategic transactions.

·     Victory Capital Holdings (VCTR) reported assets under management of $154.9B as of June 30, 2022, and average assets under management for the second quarter period of $165.7B.

·     Celsius Network filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring.



·     ContraFect (CFRX) tumbles -75% as announces independent DSMB recommends exebacase phase 3 disrupt study be stopped for futility following interim analysis

·     Cytomx Therapeutics (CTMX) announces restructuring to realign capital resources and extend cash runway to 2025; partnered clinical-stage programs continue to advance; to focus internal efforts on wholly owned next-generation conditionally activated therapeutics

·     Royalty Pharma plc (RPRX) said it agreed to acquire a royalty interest in TRELEGY ELLIPTA (Trelegy) from Theravance Biopharma, Inc. (TBPH) and Innoviva, Inc. (INVA) for $1.31 billion in cash up front and up to $300 million in additional payments contingent on milestones

·     Novavax (NVAX) said the FDA authorizes emergency use of Novavax COVID-19 vaccine has determined that adjuvanted has met the statutory criteria for issuance of an EUA

·     Bellus Health (BLU) 16.5M share Spot Secondary being re-offered at $9.25


Industrials & Materials

·     The Vertex Company, a V2X company (VVX), has begun work The Vertex Company on up to $850M U.S. Navy contract after the award was upheld by U.S Government bid protest decisions.


Technology, Media & Telecom

·     Taiwan Semi (TSM) posted Q2 net income of $1.55 a share topping the $1.44 estimate, while revenue rose 43.5% Y/Y to $17.9 billion; forecast Q3 revenue of between $19.8 billion and $20.6 billion, ahead of the $18.6 billion forecast; forecast revenue growth that could be the highest in 10 quarters, saying it was “highly confident” about its long-term prospects

·     AMD (AMD) upgraded to Outperform from Market Perform at BMO Capital

·     Twitter (TWTR) upgraded to Buy from Neutral at Rosenblatt


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.

Live Trading

Open an Account

Paper Trading