Mid-Morning Look: July 21, 2023

Mid-Morning Look

Friday, July 21, 2023






DJ Industrials




S&P 500








Russell 2000






Wall Street’s main indexes opened higher, setting the Dow on track for its tenth straight day of gains, while mega-cap growth and technology stocks recovered after sharp losses in the previous session. However, the gains were short-lived as stocks have since rolled to lows with the Nasdaq “red” and the S&P flattish. Large cap tech names rebounded from yesterday’s 2% decline heading into a crucial week of earnings and an FOMC meeting where another rate hike is expected. Tech fell on Thursday behind TSLA, NFLX, TSM reports (weighed on semis) but investors position ahead of AMZN, MSFT, META, GOOGL results next week. Dow Transports slip behind rail weakness after CSX results. Financials mixed as consumer finance names fall behind AXP results while midcap banks continue to surprise to upside with earnings, deposits and mixed NII. Early market leaders are defensive Utilities, Staples, and Healthcare while Communications and Materials lag. Treasury yields dip after jumping on Thursday while the dollar index (DXY) moves back above 101.







WTI Crude















10-Year Note





Sector Movers Today

·     In Solar: NOVA was downgraded to Market Perform at BMO Capital and lower tgt to $25 after recent outperformance noting the co has been BMO’s preferred idea among residential solar installers and has significantly less exposure than peers to CA NEM 3.0. TD Cowen lowers tgt for ENPH to $313 from $317, SPWR to $11 from $15, and SUNL to $0.75 from $1 saying coming away from recent channel checks and attending InterSolar Europe in mid-June, remains cautious on the demand fundamentals near term for residential solar and see risk to 2024 consensus estimates for ENPH, SEDG, and SPWR.

·     In Banks: ASB beat expectations on fees and expenses but missed NII and credit costs. CMA Q2 EPS $2.01 tops $1,.86 est. and $1.92 y/y as Q2 net interest income (NII) of $621M above $561M y/y but sees a -4% drop in net interest income in Q3 with average loans about flat and average deposits down 1% to 2%. HBAN Q2 EPS $0.35 tops $0.34 est. as net interest income of $1.35B, up 7% y/y. OZK Q2 EPS $1.47 vs. est. $1.43 as fees were better and expenses came in lower. RF Q2 EPS $0.59 was in-line w/ests, set aside $118M in provision for credit losses vs. $60M y/y; NII rose about 25% to $1.38B.



·     ALV %; after earnings as Q2 adj EPS $1.93 vs. est. $1.43; Q2 revs $2.64B vs. est. $2.54B; said Q2 profitability improved substantially, positively impacted by price increases, organic growth, and our cost reduction activities; backs FY23 view.

·     CMA ; Q2 EPS $2.01 tops $1,.86 est. and $1.92 y/y as Q2 net interest income (NII) of $621M above $561M y/y but sees a -4% drop in net interest income in Q3 with average loans about flat and average deposits down 1% to 2%.

·     DWAC +63%; after settling charges of fraud with the U.S. SEC related to “material misrepresentations” made to investors; to pay an $18M penalty if closes a merger transaction.

·     EBS +4%; said it got FDA approval for its anthrax vaccine. Cowen analyst notes that the approval is an incremental positive as it was largely expected.

·     HOG +2%; upgraded to Buy from Neutral with $47 tgt at Davidson after its most recent checks revealed better than feared 2Q23 U.S. retail, & strong progress with MY22 inventory clearance.

·     ROP +3%; rises after boosting year outlook.



·     AXP -5%; as Q2 revs miss at $15.05B vs. est. $15.36B while EPS $2.89 tops est. $2.81; said Q2 provision for credit losses $1.20B vs. est. $1.12B and guides FY eps $11.00-$11.40, vs. est. $11.06.

·     CSX -4%; as Q2 revs fell -3% y/y to $3.7B vs est. $3.735B; said the decline in revenue was primarily due to lower fuel recovery, pricing declines in export coal and lower intermodal volume.

·     ENVX -4%; downgraded at TDCowen to Market Perform from Outperform owing to valuation, with the stock up 74% YTD and 61% in just the last 18 trading days.

·     IPG -11%; after lowering its FY organic revenue growth to 1%-2% from prior range of 2%-4% growth; Q2 revs fell -2.5% y/y to $2.7B but topped ests.

·     ISRG -2%; reported Q2 revenue in line with estimates, Da Vinci placements above expectations, concerns around slowing bariatric growth drive weakness in stock after hours.

·     MRTX -9%; as the European Medicines Agency’s panel declined to back authorization for co’s drug to treat a type of lung cancer as it did not fulfill the requirements for conditional support.

·     SIRI -15%; downgraded by three analysts (Pivotal, Evercore/ISI, and Deutsche Bank) following a massive (+115% since 6/21) run in SIRI stock.


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.