Market Insights for July 22nd
1. Watching the market today, I noticed a 5% organic growth that surpassed expectations. It’s a positive sign—but, honestly, it wasn’t without its flaws. On a related note, it seems Coke will be introducing a sugar cane version in the US this fall. Interestingly, President Trump mentioned he had a conversation with Coke about this last week.
2. General Motors reported strong revenue and sales numbers while also sticking to the year-round guidance shared back in May. However, the margins in North America dropped by 44% compared to last year, likely due to tariffs that are squeezing profits. This morning, stocks dropped by 3%. Still, CEO Mary Barra is showing strong leadership.
3. On Wall Street, it looks like openings are a bit subdued. This follows a record-setting closing yesterday for both the S&P 500 and the tech-heavy Nasdaq. The S&P is on track for its third consecutive positive month, which is noteworthy.
4. Stifel has upped its price target for Alphabet, Google’s parent company, from $200 to $218 per share. The company is set to report earnings tomorrow evening, placing it among the first of the “magnificent seven” to do so.
5. Tesla, also part of this “magnificent seven,” is slated to report earnings tomorrow night as well. A JP Morgan analyst recently shared that he spent a day using Tesla’s Robotaxi service in Austin, expressing that he felt safe during the experience.
6. In club news, Danaher’s shares fell over 3% despite exceeding profit and sales expectations. The life sciences firm has raised its year-round EPS guidance, indicating some financial strength, even as we adjusted our position to guard against potential revenue declines.
7. RTX has a history of reporting impressive quarters, consistently exceeding both top and bottom-line expectations, with a 15% increase in its backlog. Expectations for increased stock profits are optimistic given the 31% rise seen so far this year. However, owners of Collins Aerospace and Raytheon adjusted their year-round EPS guidance due to the impacts of tariffs.
8. Matt Boss at JPMorgan downgraded Lululemon, citing concerns over seasonal product issues despite previously being bullish on the brand. He did adjust his price target, increasing it from $303 to $224, which is just a notch below its previous closing price.
9. There’s some trouble brewing with the $500 billion AI data center initiative, known as Stargate. According to a report by the Wall Street Journal, which came out last night, this project—led by OpenAI and SoftBank—has yet to finalize a single transaction.
10. KeyBanc has upgraded Cleveland-Cliffs from a hold to a buy rating following its second-quarter earnings report. Analysts seem more optimistic about the risk/reward scenario with this company. CEO Lourenco Goncalves mentioned on “Mad Money” that he’s anticipating a boost in US car production, which should drive higher steel demand.
For those interested, I share my top 10 morning thoughts in a market email newsletter. It’s worth noting that I typically wait 45 minutes after a trade alert before buying or selling stocks in the Charitable Trust portfolio. If I discuss stocks on CNBC, I hold off for 72 hours before executing any trades. All investment-related information is subject to terms of use and privacy policies. Outcomes aren’t guaranteed.
