What I am looking at July 13, 2022

June consumer inflation jumps 9.1% year over year, stronger than estimates, fastest pace since December 1981. Core, ex-food and energy, also advances a greater-than-expected 5.9%.
- Stocks drop, bond yields rise, dollar pops. I think the Federal Reserve will hike interest rates 75 basis points at both its July and September meetings. That said, don’t look at these numbers in a vacuum, because lots of commodity prices are coming down.
- The dollar is still screaming versus euro, putting tech earnings under pressure. To help evaluate the foreign exchange risk, here’s a geographic revenue breakdown of all 33 companies in the Investing Club portfolio.
- Ahead of the report, Bank of America says it sees mild recession. Mortgage Bankers Association: Home loan applications dropped 1.7% last week. Purchase demand fell 4% and refinances rose 2%.
Twitter (TWTR) gets the upper hand, suing Elon Musk to enforce his original deal to buy the social media company.
Canaccord starts Musk’s Tesla (TSLA) with a buy, calls it a “sustainable behemoth.”
Club holding Alphabet’s (GOOGL) Google tapping the brakes on hiring. Like Meta, which laid off custodial staff.
Citi lowers Club holding Apple (AAPL) to $175 per share from $200, citing worsening consumer spending. These stocks may not bottom until price targets come down the way oil did; Barclays goes the other way, with a small PT increase to $167 from $166.
Hasbro (HAS) downgraded to hold from buy (sector weight from overweight) at KeyBanc. Wall Street likes Mattel (MAT) much better.
Very odd one: Deutsche Bank makes Cummins (CMI) a short-term buy idea and thinks that it could have good engine numbers. But it lowers its price target to $216 per share from $232.
Gap (GPS) goes to hold from buy Deutsche Bank, which cut its price target to $9 per share from $12; cites low visibility around Old Navy brand.
Piper Sandler cuts its price target on Palo Alto Networks (PANW) to $650 per share from $675. Kind of odd, doing so well: “game theory?” Same at Splunk (SPLK) to $120 from $130.
Delta Air Lines (DAL) reports quarterly earnings per share of $1.44 versus $1.73 estimate. Strong bookings. Revenue also beat expectations.
Bank of America cuts price target on PPG Industries (PPG) to $161 per share from $172, cites foreign exchange concerns.
Club holding Linde (LIN) price target trimmed to $369 per share from $370 at BofA, sees slowing macro environment.
Citi cuts its price target on Club holding Chevron (CVX) to $150 per share from $170. Will they raise the buyback? Will we sell some for the Trust?
Unity Software (U) to merge with Ironsource (IS), an Israeli ad-tech firm. Shares of Ironsource soar 50% in the premarket. Ironsource was brought public in a Thoma Bravo SPAC now valued at $4.4 billion.
Stitch Fix (SFIX) jumps nearly 8% in the premarket on Benchmark Capital’s Bill Gurley buy of one million shares. The stock down 73% this year.
Freeport-McMoRan (FCX) downgraded to neutral from buy at Citi, with a price target cut to $28 per share from $48. Copper will struggle.
Robinhood Markets (HOOD) price target cut to $8 per share from $9 at Deutsche Bank. Downward bias; negative revisions coming.
Wells Fargo raises price target on Club holding Johnson & Johnson (JNJ) to $195 per share from $190.
Stanley Black & Decker (SWK) price target cut to $128 per share from $158 at Deutsche Bank, which sees challenging setup.
BofA lowers price target on DuPont (DD) to $73 per share from $77, keeps buy rating. DuPont’s PT cut at UBS to $87 from $96.
Deutsche Bank goes to short-term sell on Rockwell Automation (ROK), cuts price target to $212 per share from $250.
Morgan Stanley downgrades Credit Suisse (CS). Stock is cheap. Turnaround is a timing issue.

(Jim Cramer’s Charitable Trust is long GOOGL, AAPL, LIN, CVX and JNJ. See here for a full list of the stocks.)