Delta’s Big Buy, Strong Banking Results, The Micron Effect

A branch of Bank of America in San Francisco on January 14, 2021.

David Paul Morris | Bloomberg | Getty Images

What I watch July 18, 2022

  • Bank of America’s (BAC) quarterly earnings report was very strong. Revenue rose 6% to $22.79 billion, beating analyst estimates. Loan growth is good. The consumer is incredibly good – I don’t know if the consumer can be slowed down easily.
  • Goldman Sachs (GS) reported earnings and revenue above analysts’ estimates. Earnings of $7.73 per share vs. consensus of $6.58 per share.
  • Quarterly results from Citigroup (C) and Wells Fargo (WFC) were better than expected. Like Micron (MU), they fell in anticipation of lower earnings, then reversed when they weren’t as bad as expected.
  • Raytheon (RTX) CEO Greg Hayes told CNBC the company won’t be selling new narrow-body planes in six or seven years. How can they not do more? How could the airlines have been so ill-advised? Greg pleads for rate hikes to slow things down so he can get workers (mostly engineers) to build planes. NATO will be a great source of orders.
  • Barclays is slashing a utilities group’s price targets to drive home the idea that it might be over for that group right now.
  • Stifel lowers price target on industrial Parker-Hannifin (PH) to $283 from $343…all about baking in a recession.
  • Roku’s price target was lowered to $80 from $105 at Morgan Stanley. The analyst is cautious vis-à-vis the consumer; so careful, wouldn’t you cut the cord?
  • Starbucks (SBUX): Finally, an increase in target price. Piper Sandler’s Nicole Miller Regan goes from $80 to $84.
  • Housing analyst Ivy Zelman says home sales cancellations have increased due to the blistering speed of rate hikes.
  • Delta (DAL) buys 100 Boeing (BA) Max planes – first major order with the planemaker in more than a decade.
  • UnitedHealth’s (UNH) price target was raised to $587 from $570 at Morgan Stanley – another strong quarter for a Dow stock.
  • Bitcoin rebounds, breaks above $22,000… takes the pressure off the market.
  • Constellation Brands (STZ) remains a top pick at Jefferies.
  • Paramount (PARA) downgraded to sell from Morgan Stanley.
  • Disney (DIS) is raising the ESPN+ subscription price to $9.99 from $6.99 per month.
  • Deutsche Bank is very cautious on autos and is downgrading General Motors (GM) to retain earnings risk. Favors Tesla (TSLA), seeing opportunity after shares fall 30%.
  • Kraft Heinz (KHC) has launched a buy at Mizuho, ​​says Street is underestimating the company’s growth potential.
  • Bernstein analyst Toni Sacconaghi is slightly raising his third-quarter estimates for Apple (AAPL), due to better-than-expected supply and healthy Chinese demand. But he is worried about the figures for 2023…

(Jim Cramer’s Charitable Trust is long AAPL, STZ, WFC. See here for a complete stock list.)

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