Stocks were mixed on Tuesday morning as investors weighed a new round of earnings reports, including strong results from Uber. The ride-hailing service reported better-than-expected revenue and its first quarter of positive free cash flow, sending the shares up 17%. On the negative side, Caterpillar shares fell more than 3% after the company posted mixed results and warned of lower construction equipment sales in China. The Dow fell 0.3%, the S&P rose 0.1%, and the Nasdaq rose 0.6%. Crude oil traded near $95 per barrel, while gold rose $8 to $1795 per ounce.

The major indices turned on the afterburners in July following a difficult June. The S&P 500 soared 9%, regaining all its losses from June. The Nasdaq and the Nasdaq 100 both exploded over 12%, recapturing their June declines and then some. The S&P MidCap 400 and the Russell 2000 rocketed almost 11%. It was the largest 20-day rate-of-change (ROC) for the "500," the "400," and the "2000" since late 2020/early 2021. The Nasdaq and the QQQs saw a better 20-day ROC in early April, which, as we now know, was a bear-market rally.

Last week was the busiest of the quarter for earnings, with many sharp stock-price moves following above- or below-consensus results or changes in guidance. Through July 26, Refinitiv noted that 133 S&P 500 companies had reported earnings, with 76% beating expectations, above the long-term average of 66%. The blended (actual for those reporting and consensus for those still to report) growth rate is 6.2%, near the 5.6% expectation and indicating the "beats" have not been robust. But the sour mood coming into the quarter is being greeted with relief that profit shortfalls and lowered guidance are not rampant. Our analysts always look for companies that boost outlooks during earnings season. Raising guidance can be a catalyst for strong returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus coverage with raised guidance or increased outlooks during the 2Q22 EPS reporting season.

Monday Tee-Up: No Summer Doldrums on Wall Street

Stocks rose on Thursday morning after paring early losses. GDP data was weaker than expected. The Commerce Department reported that the U.S. economy contracted at a 0.9% annualized rate in 2Q, below the Bloomberg consensus, which had called for a gain of 0.4%. The second straight quarterly decline in GDP, after a 1.6% drop in 1Q, met a common definition of recession. The Dow rose 0.7%, the S&P 0.8%, and the Nasdaq 0.6%. Crude oil rose 1% to $98 per barrel, while gold fell 2% to $1752 per ounce.

Earnings from major companies will continue on Friday, with 2Q reports from Twitter, Verizon, and Schlumberger. On Thursday, stocks extended their winning streak, with strong gains in the Consumer Discretionary and Healthcare sectors. Tesla shares rose nearly 10% following strong 2Q results, while AT&T fell more than 7%, despite above-consensus earnings, after management lowered its free cash flow guidance. On the employment front, first-time claims for state unemployment benefits rose to 251,000 for the week ended July 16, up from 244,000 a week earlier and above the Bloomberg consensus estimate. The Dow rose 0.51%, the S&P 0.99%, and the Nasdaq 1.36%. Crude oil fell more than 3% to $96.50 per barrel, while gold rose 1% to $1718 per ounce.

Second-Quarter Review and Outlook for the Second Half of 2022

Stocks rallied on Monday morning at the start of a big week for second-quarter earnings. Goldman Sachs rose nearly 3% after posting better-than-expected EPS and raising its dividend, while Bank of America rose modestly after mixed results. Housing market data was weak. The National Association of Home|Builders said that its housing market index fell to 55 in July from 67 in June. The reading missed the Reuters consensus of 65 and was the lowest since May 2020. The Dow rose 0.5%, the S&P 0.6%, and the Nasdaq 1.4%. Crude oil rose $4 to $102 per barrel, while gold traded near $1710 per ounce.

Monday Tee-Up: Housing and Earnings

In this edition, Global Beauty Looking Good, Paypal Looks Promising, Utilities Facing Challenges, and Hasbro, Ipsen, and Toast ties up with Sling.

In the stock market, the fear of upcoming news is often far worse than the news itself. We have important days just ahead, starting with June CPI today and June PPI on Thursday. We also have the start of Q2 EPS season, which kicks off this week with some important Financials reporting and moves to major Technology companies reporting toward the end of July. Many are still worried about inflation, despite some clear evidence of very weak commodity prices and a weakening economy. As well, many believe EPS estimates for the next few quarters are far too high. Technicians don't make predictions in those areas, but have some good advice. Ignore the numbers, but watch the reaction to the numbers.

We are witnessing some historic market data, which "eventually" should be good. Tuesday was actually a win for technicians, as the indices closed far off their lows as details of the Fed's pending rate decision drew near. The Wall Street Journal ran an article that said 75-basis-point increases are back on the table (which was denied by the Fed not long ago). At its low on the day, the S&P 500 was down to 3,706, a little more than a one-percent loss. That was the lowest level for the index since January of 2021.

Stocks plunged on Friday morning on further signs of accelerating inflation and concerns about the Fed's response. In a widely anticipated release, the Labor Department said that consumer prices rose at an 8.6% annual rate in May, up from 8.3% growth in April and above the consensus forecast of 8.3%. The reading was the highest in more than 40 years. The core CPI, excluding food and energy, rose 6.0% from the prior year, above the consensus of 5.9% growth. The Dow fell 2.1%, the S&P 2.5%, and the Nasdaq 3.1%. Crude oil fell to $121 per barrel, while gold traded near $1851 per ounce.

Vickers Stock Research, a subsidiary of Argus Research Group, tracks and analyzes insider trading and institutional ownership trends. Form 13-Fs are due 45 days after the end of calendar quarters, and have now come in from 1Q22. We like to review the 13Fs of the major activist investors, including Carl Icahn, Trian Fund Management, Jana Partners, and ValueAct Holdings, among others. Activist investing has evolved in recent years and is now less about generating a short-term return on an underpriced stock and more about achieving long-term returns through an active management/investor partnership. Here are some recent new purchases and key holdings of activist investors, according to the data from Vickers.