Pencils down, it’s time for lunch. Here’s what you missed this morning:

• 🟥 | Market Snapshot: US stocks fell this morning, with the Dow shedding nearly 1% and the S&P 500 heading for its worst week in 3 months.

• 🏠 | In focus: Freddie Mac announced that the 30-year fixed-rate mortgage averaged 6.77% for the week ending July 18, marking the lowest level since mid-March. This is a notable drop from the 6.89% figure reported in the prior week.

• 🌬️| Noteworthy: A recent incident at the Vineyard Wind offshore energy project caused debris, including shards of fiberglass, to scatter across Massachusetts beaches. The event is the latest in a series of failures involving wind turbines built by GE Vernova.

• 🥤 | The Midday Trade: Coca-Cola to Convenience Stores. Scroll down for more.

Plus, today’s partner can help you election-proof your finances. Click here to learn more.

TOGETHER WITH DATALIGN ADVISORY

Election-Proof Your Finances

Navigate the uncertain waters of the upcoming election with confidence. Our expert-driven questionnaire, backed by years of financial expertise, delivers personalized insights tailored to your unique goals.

Secure your financial future today at datalignadvisory.com!

STREET STATS

MORNING MOVERS

American Express, Intuitive Surgical, & Plug Power

AXP: Shares of American Express fell despite reporting a 39% increase in profit from a year ago. However, revenue fell below expectations (Barron’s)

ARM: British semiconductor company Arm Holdings’ stock rose after an upgrade from Morgan Stanley to Overweight from Equal Weight (YF)

ISRG: Intuitive Surgical’s stock popped following stronger-than-expected Q2 results with EPS of $1.78, significantly higher than the projected $1.54 (YF)

PLUG: Shares of Plug Power tumbled after the company announced a $200 million common stock offering for “general corporate purposes” (MW)

CMA: Comerica’s stock dove after the bank reported net interest income of $533 million, which was lower than its net interest income a year ago (SA)

TOP CALLS

Equifax: Oppenheimer Maintains Outperform on Equifax, Raises Price Target to $300 (Trade It)

Sage Therapeutics: Mizuho Maintains Neutral on Sage Therapeutics, Lowers Price Target to $16 (Trade It)

Wintrust: Keefe, Bruyette & Woods Downgrades Wintrust Finl to Market Perform, Raises Price Target to $115 (Trade It)

Ladder Cap: BTIG Assumes Ladder Cap at Buy, Announces Price Target of $13.5 (Trade It)

Lilium: Cantor Fitzgerald Initiates Coverage On Lilium with Overweight Rating, Announces Price Target of $2 (Trade It)

Triumph Financial: Piper Sandler Maintains Underweight on Triumph Financial, Raises Price Target to $65 (Trade It)

THE MIDDAY TRADE

Coca-Cola to Convenience Stores

A Big Overreaction

Coca-Cola Femsa is the largest franchise bottler of Coca-Cola products in the world by volume, as well as a burgeoning convenience-store business. Femsa (FMX) is a holding company that owns a near-majority stake in it.

Its ADR spiraled after the CFO and COO left in February and is down nearly 9% YTD. The Mexican presidential election results also had a significant negative impact on the stock. Now, analysts say this was all an overreaction.

Growing Globally

According to analysts, the business is strong and growing. It has also been busy offloading nonessential businesses, allowing it to buy back shares and issue dividends to shareholders. Its convenience store arm, known as Oxxo, is in the process of expanding into South and Central America, as well as Texas.

It plans to build roughly 1,000 new stores in Mexico this year and just opened its 500th store in Brazil and Colombia. These stores generate 10% margins, the highest of any convenience store in the world.

Discount Shares

The ADR currently trades at slightly above 20 times forward earnings. According to Allspring’s Derrick Irwin, this is a lower multiple than pre-pandemic, even though the company has higher growth and is committed to returning capital to its shareholders.

Additionally, Irwin values the company at $49.7 billion, and yet its market cap is only $37 billion, giving it a 26% discount. He expects that gap to start to close, so now may be investors chance to obtain maximum value.

TOGETHER WITH DATALIGN ADVISORY

Election-Proof Your Finances

Navigate the uncertain waters of the upcoming election with confidence. Our expert-driven questionnaire, backed by years of financial expertise, delivers personalized insights tailored to your unique goals.

Secure your financial future today at datalignadvisory.com!

SURVEY THE STREET

As you’ve probably already heard or experienced, there’s been a global cyber outage that’s caused massive issues across industries, grounding flights, forcing some broadcasters off the air, and hitting both banking and healthcare services.

The cause stems from CrowdStrike’s product update, which is impacting users of Microsoft's Windows Operating System.

Shares of CrowdStrike are already falling this morning, and some are predicting the stock could see its worst trading day ever.

Plus, Yesterday’s Poll + Results:

Will ASML recover, or will it continue to feel the impact of the US-China trade war?

🟩🟩🟩🟩🟩🟩 😁 Recover

🟩🟩🟩🟩🟩🟩 🤕 Continue to feel the impact

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