Mid-Morning Look

Wednesday, July 15, 2026

U.S. stocks are moving higher, building on the prior day gains as earnings season is off to a solid start and softer inflation readings the last two days helping ease interest rate hike fears. After a “cooler” June consumer prices (CPI) inflation report Tuesday helped boost stock markets and push down interest rate hike chances by the Fed, today’s PPI data further validated the lower inflation view as June month-over-month PPI final demand -0.3% (consensus 0.0%). After a few days of mixed returns, strength in large cap tech helping buoy markets as AAPL hits a new all-time high, along with gains in AMZN, MSFT, META and GOOGL in Mag 7. More noise in the Middle East as U.S. Central Command launched a fourth consecutive day of strikes on Iran and reinstated a blockade of Iranian ports after President Trump reversed plans to charge protection fees for ships transiting the Strait of Hormuz. The U.S. said the attacks were intended to degrade Iran’s ability to target commercial shipping in the strategic waterway. Donald Trump reversed his plan to impose a 20% toll on ships transiting the Strait of Hormuz a day after announcing it initially. Still, no impact on U.S. stocks as the focus remains on earnings and inflation. ASML giving aid to the AI trade after better earnings and guidance in semi equipment on strong orders. In FinTech, PYPL shares rise on Reuters report Stripe, Advent offer to buy PayPal for more than $53 billion at $60.50 a share.

• NY Fed’s Empire State current business conditions index +15.6 in July above the consensus +8.8 and vs +5.7 in June; new orders index surges +22.2 in July vs +3.5 in June, employment index at +11.4 in July vs +9.6 in June, six-month business conditions index +27.9 in July vs +30.1 in June while prices paid index drops to +52.3 in July vs +61.0 in June in a strong reading.
• China Q2 GDP reported at +0.9% q/q in-line with estimates and 4.3% y/y vs 4.5% consensus and its weakest reading pace since 2022. China June Unemployment Rate 5% vs 5.1% consensus; June Retail Sales +1% y/y vs -0.1% consensus and Industrial output +5.3% y/y vs 4.7% consensus.

• Aerospace: Morgan Stanley with several rating changes as they downgraded LOAR and TDG from Overweight to Equal weight in commercial aerospace, and downgrade CAE to Underweight. In Space, downgrades VOYG from Equal weight to Underweight all citing relative risk/reward profiles. The firm’s highest-conviction ideas are FTAI in Commercial Aerospace, NOC in Defense, and HAWK in Space Technologies, reflecting what it believes are the most attractive combinations of secular growth, earnings durability, and risk/reward. In other news, RDW secured $21.5M in follow-on purchase orders to support the U.S. Army’s Family of Small Uncrewed Aircraft Systems program. KRMN rallied after news it will replace BTSG in the S&P Smallcap 600 index effective Friday 7/17. In Drones, UMAC was initiated Buy and $42 PT at HCW noting its product portfolio spans flight controllers, Electronic speed controllers (ESCs), analog video systems, FPV headsets, drone Motors, and pending the Upgrade Energy acquisition, batterie.
• Managed Care sector: after a massive rally for the sector the last few months, shares are sliding despite a beat and raise quarter for ELV. The company Q2 adj EPS $7.45 tops consensus $6.21 on revs $49.8B vs. est. $48.63B while raises FY26 adjusted EPS view to ‘at least $27.00’ from prior view “at least $26.75” (vs. consensus $26.91) and boosts FY26 operating cash flow guidance to at least $6B; medical cost ratio of 89.7%, was up from 88.9% a year earlier (shares of CNC, HUM, UNH take a breather today).

• ASML +3%; said it now expects full year 2026 total net sales to be between EU43B and EU45B (midpoint at EU44B), compared to the prior forecast range of EU36B and EU40B (midpoint at EU38B); sees gross margin to be between 54% and 56% versus the prior forecast range of 51% and 53%.
• BABA +6%; as AAPL’s on-device artificial Intelligence system got its long-awaited approval for release in China, integrating Alibaba Group Holding Ltd.’s Qwen Ai into the iPhone experience.
• BLK +6%; after results; as Q2 EPS $13.91 vs. est. $12.67; Q2 revs rose 31% y/y to $7.08B vs. est. $6.82B; Q2 AUM $15,34T vs. est. $15.19T, up from $12.53T a year earlier and $13.89 trillion in the first quarter; attributed revenue growth to higher base fees, positive market performance, and strong inflows.
• KRMN +6%; after news it will replace BTSG in the S&P Smallcap 600 index effective Friday 7/17.
• LION +7%; is considering a sale and has attracted takeover interest from Bollore Group amid accelerating consolidation in the media industry, Reuters reported saying the company has been working with an investment bank to evaluate inbound approaches https://tinyurl.com/3rn3jy2n  
• MANE +16%; said its oral, extended-release formulation of minoxidil induced hair growth in women with mild-to-moderate pattern hair loss, achieving the goal of a single-arm mid-stage study. The company is enrolling female participants in a Phase 2/3 study with results expected next year.
• PYPL +13%; after Stripe and private equity firm Advent International have jointly offered to buy PYPL for over $53 billion, Reuters reported; offer of $60.50 per share represents about 28% premium to co’s last closing price and follows an initial approach made in early April, https://tinyurl.com/3z7z9d9y  
• XPEV +4%; aims to build monthly production capacity of more than 1,000 IRON robots by the end of this year, WSJ reported citing people familiar with the matter. XPeng introduced the IRON humanoid robot concept in November as part of its broader physical AI strategy.

• CELC -15%; shares fell after rising late Tuesday when the FDA approved its drug for an advanced form of breast cancer, making it the company’s first product to gain market entry… but the company delayed the launch until late 3Q26, which weighed on sentiment.
• CRDF -32%; after saying it sold 8.57M shares and accompanying warrants at $1.05 in registered direct offering and said certain insiders and directors to buy 731,707 shares and warrants at $1.435; the co intends to use net offering proceeds for working capital and general purposes.
• ELV -8%; reported Q2 adj EPS $7.45 tops consensus $6.21 on revs $49.8B vs. est. $48.63B while raises FY26 adjusted EPS view to ‘at least $27.00’ from prior view “at least $26.75” (vs. consensus $26.91) and boosts FY26 operating cash flow guidance to at least $6B; medical cost ratio of 89.7%, was up from 88.9% a year earlier (shares of CNC, HUM, UNH take a breather today).
• PNR -12%; said prelim Q2 sales fell -17% to $930M vs. est. $1.14B and sees adj EPS $1.12 vs. est. $1.48 saying results impacted by Pool channel inventory destocking and IEEPA refunds; sees 2026 sales down (-4% to 7%), revising prior guide of up +2% to +4% and guides 2026 adj EPS of $4.60-$4.80 below prior outlook.
• SKHY -6%; as Memory stocks give back a little of prior day gains (MU, SNDK, SKHY). On Tuesday, SKHY shares jumped 27%; server maker DELL climbed 7%; and storage play SanDisk rose 5%.
• WNC -11%; shares tumbled after the company announced a private offering of $100M in convertible senior unsecured notes due 2032, with an option for initial purchasers to buy an additional $15M. Wabash plans to use the proceeds for general corporate purposes