Stocks Pointing to a Much Higher Open — Inflation Data and Higher Rates Are Now Meaningless Data Points

The 10yr bond is ticking up to 2.93% this morning. When it finally reaches 3.00%, I am told the world will end. Insane Ray Dalio has increased his short position at Bridgewater to $22 billion.

What the fuck is his problem?

George Soros bought some OSTK — because MUH blockchain.

And futures are +165.

You’ve got to get into the cryptos or at a minimum the crypto proxies. “The Fly” is never wrong and even when he is wrong — he is right.

So why are stocks running so hard after hotter than expected inflation data, in spite of the fact that rates are edging higher. CNBC’s Steve Liesman has a few ideas. I like his last one — black boxes ignoring humans and instead trading on algorithms.

Whatever the reason — stocks are traveling along the past of least resistance and are now going up in spite of higher rates, which is a narrative pivot.

Gapping up
In reaction to strong earnings/guidance:
TRIP +17.2%, SEDG +15.6%, PKD +15.5%, SDPI +14.2%, YNDX +8.4%, DRD +8.1%, CTL +7.7%, CSCO +7.3%, ACOR +5.5%, VNDA +5%, ARRS +4.2%, CC +4.2%, A +4%, LPI +4%, USFD +4%, WM +3.7%, MMLP +3.5%, MRO +3.5%, AVP +3.5%, KIM +3.4%, GG +3%, AEG +2.8%, CCE +2.7%, HII +2.6%, GEL +2.5%, CVE +2.4%, CF +2.2%, ECA +2.2%, ZTS +2.1%, GROW +2%, INCY +2%, NLY +1.8%, SB +1.4%, CYBR +1.4%, GPN +1.3%

M&A news:
SHLM +8.7% (to be acquired by LyondellBasell (LYB) for $2.25 bln, or $42/share)
NOK +1.6% (initiates strategic review of its Digital Health business)

Select names showing strength following following 13F filings:
TEVA +7.6% (Berkshire Hathaway and Jana disclose new position)
OSTK +5.7% (Soros Fund Management discloses new stake)
SWN +2.7% (new Third Point /Dan Loeb stake)
CVG +2.3% (Elliott Management discloses new stake)
JCP +1.6% (Greenlight Capital – David Einhorn – disclosed new stake)
NFLX +0.9% (Third Point disclosed new stake)
BHF +0.9% (David Einhorn’s Greenlight Capital disclosed new stake)

Other news:
ATRS +20.2% (FDA approval of partner’s product utilizing QuickShot Auto Injector), AMAG +19.8% (FDA approved Makena subcutaneous auto-injector to reduce risk of preterm birth; to file NDA for Bremelanotide later this quarter), COOL +17.6% (was initiated with Overweight rating and $70 tgt at Cantor Fitzgerald after the close), OMER +14.7% (announces new results from the company’s ongoing Phase 2 study of OMS721 evaluating patients with hematopoietic stem cell transplant-associated thrombotic microangiopathy), ARWR +9.7% (receives regulatory clearance to begin Phase 1/2 study of ARO=HBV for treatment of Hepatitis B), HIIQ +7.6% (executed a consent order granting a Certificate of Authority to conduct business as a third-party insurance administrator in the State of Florida to Health Plan Intermediaries Holdings), SBCF +5% (will replace Deltic Timber (DEL) in the S&P SmallCap 600), AXON +4.9% (initiated a corporate realignment to focus its efforts and resources on its ongoing and future programs that included a reduction in its workforce), BLDP +3.2% (wins $4.2 mln program to develop next-gen air-cooled fuel cell stack for forklift trucks ), NBIX +3.1% (Neurocrine Biosci announced that the FDA has provided guidance on the regulatory path forward to support the New Drug Application NDA for Opicapone), TRVG +2.2% (following TRIP results), BEN +2% (announces $3 special dividend), RMBS +1.5% (Rambus signs license agreement with Gemalto to protect against side-channel attacks ), SHPG +1.5% (FDA accepted the CINRYZE sBLA to expand the currently approved indication to include children aged 6 years and older with hereditary angioedema), TRP +1.5% (will move forward with a $2.4 billion expansion of its NGTL System), CRBP +1.4% (announces data from a human clinical model shows that lenabasum (formerly known as anabasum) is an activator of resolution of innate immune responses and is the first experimental therapeutic shown to activate this pathway in humans), BAC +1.1% (reports out that Amazon/ BofA partnering for lending program; also new Senator Investment Group and Owl Creek disclosed news stakes, Appaloosa/David Tepper increased stake), PCLN +1.1% (following TRIP results; also Meritage disclosed new stake), EXPE +1% (following TRIP results), .

Analyst comments:
ADVM +4.6% (resumed with a Overweight at Piper Jaffray)
CRM +2.2% (upgraded to Buy from Hold at Jefferies)
BIDU +2% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
DNOW +2% (upgraded to Buy from Neutral at Seaport Global Securities)
CRTO +1.8% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)
BMY +1.5% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
KLAC +1.5% (upgraded to Buy from Neutral at Citigroup)
OHI +1.4% (upgraded to Outperform from Market Perform at Wells Fargo)
BG +1.1% (upgraded to Overweight from Equal-Weight at Stephens)
MRNS +0.8% (initiated with a Buy at H.C. Wainwright; tgt $33 (closed at 6.08 on Wed))
DK +0.7% (upgraded to Neutral from Underperform at BofA/Merrill)
PBYI +0.7% (added to US Focus List at Citigroup)

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