Mid-Morning Look: May 13, 2026

Mid-Morning Look

Wednesday, May 13, 2026

U.S. stock futures were strong overnight following an extended rebound in tech after sliding yesterday morning, but then 8:30 rolled around. The April producer price index (PPI) inflation data surprised Wall Street, reported at a +1.4% M/M in April, well above the +0.5% consensus, while March’s PPI was revised to an increase of +0.7% from the +0.5% rise it originally estimated. April’s increase is the largest one-month advance since March 2022. That data, on top of the “hotter” CPI data on Tuesday took some of the wind out of the sails for investors, meaning an interest rate cut is unlikely anytime soon, with the next move more likely a rate hike if inflation continues to push higher. While energy is a main factor of the inflation, the core PPI reading was also surprisingly higher showing prices are rising in many segments. At the same time, Treasury yields remain stubbornly high as do energy prices given the ongoing Iran situation and Strait of Hormuz shipping channel remaining closed. Stocks jumped overnight as Spuz hit overnight highs of 7,454.25, which was just shy of the record high of 7,454.75 reached on Monday. Early market strength is in Healthcare and Consumer Staples (two of the leaders yesterday) as investors turn to defensive sectors. However, stock markets are still holding just off recent record highs through all of this as the euphoric state of the AI demand picture and its impact on some of the biggest names in the stock market continue to provide an underlying bid for major averages. Investor sentiment also remains strong ahead of the two day U.S./China meeting between Trump/Xi.

• Core PPI, which excludes food and energy, increased 1.0% M/M vs. +0.3% consensus and +0.2% prior (revised from +0.1%). That put the Y/Y increase at 5.2% vs. +4.3% consensus and +4.0% prior (revised from +3.8%). Ex: foods, energy, and trade services, the gauge rose 0.6% M/M in April, higher than the +0.3% consensus and accelerating from +0.2% in March.
• More than three-quarters of the 2.0% increase in the index for April final demand goods comes from a 7.8% jump in final demand energy. The gasoline index surged 15.6% M/M.

• Energy Services: FLNC prices 20M Class A shares by controlling stockholders at $21.00 per share; EOSE shares surged after the company and Cerberus Capital Management are establishing a development and investment company called Frontier Power USA, that will bring together Eos’ energy storage technology and Cerberus’ institutional capital and operating experience. Cerberus is providing a $100 million equity commitment and will receive Eos warrants and controlling equity in Frontier Power USA in exchange. AEIS announced a private offering of $1 bln convertible bonds (CBs) due 2031. SEI announces completion of $2 billion financing and expansion of existing power contract.
• In Aerospace & Defense: KRMN reported 1Q26 earnings largely in line with the Street and modestly increased its 2026 revenue/EBITDA outlook slightly above Street as raises FY26 revenue view to $720M-$735M from $715M-$730M and UPS EBITDA guidance to $208.5M-$219.5M from $207M-$218M. drone maker RCAT shares tumbled after saying it sold 23.94M shares (or $225M) at $9.40 per share in an offering that was increased from $200M, which was priced at a 14.8% discount to its last sale. ATRO Q1 sales rose 12% Y/y to $230.61M vs. est. $227.7M; Q1 Aerospace operating margin expanded to 16.5%; raises 2026 revenue guidance to a range of $970M to $1B.
• In Utility, Solar & Nuclear sector: AEP 20.47M share Spot Secondary priced at $127.00; OKLO shares were active after reported quarterly results; NXT shares jumped after Q4 results beat on both revenue and EPS, posted solid bookings quarter in excess of $1B and exited the fiscal year with a backlog of more than $5.25B and raises FY27 revenue view to $3.8B-$4.1B from $3.6B-$3.8B, (and consensus $3.93B), while backs its profit outlook.

• EOSE +10%; after the energy storage company reported first-quarter revenue that beat the average analyst estimate and announced the formation of a development and investment battery energy storage project with Cerberus Capital Management
• NBIS +10%; Q1 revs jumped to $399M from $50.9M y/y and above consensus of $371.4M, benefiting from rising demand for Q1 infrastructure and cloud services while investments in GPUs and data center hardware for its core Ai biz drove Q1 capex to about $25B vs $544M y/y and above ests $2.4B spending.
• NXT +13%; shares jumped after Q4 results beat on both revenue and EPS, posted solid bookings quarter in excess of $1B and exited the fiscal year with a backlog of more than $5.25B and raises FY27 revenue view to $3.8B-$4.1B from $3.6B-$3.8B, (and consensus $3.93B), while backs its profit outlook.
• SATS +2%; after the FCC approved EchoStar’s $40 billion sale of wireless spectrum to SpaceX and AT&T; SATS is selling approximately 50 megahertz of its nationwide spectrum to AT&T for its 5G network for $23 billion, and EchoStar is selling 65 megahertz of its spectrum to SpaceX for $17 billion.
• TSEM +17%; shares jumped on results as Q1 revs $414M topped ests $411M on better EPS while guided Q2 revs $455M above consensus $436M and said it landed $1.3 billion in deals for 2027 to supply chips that use light to move data at high speeds through artificial intelligence data centers.
• WOLF +13%; rises a 7^th straight day after Citrini Research recommended the stock, highlighting it as “a crouching tiger getting ready to reveal a dragon that deserves to not just be priced based on what their fab’s replacement value theoretically is, but reflect the fact that it’s not going to be replaced.”

• FLNC -2%; as prices 20M Class A shares by controlling stockholders at $21.00 per share.
• GILT -23%; Q1 revs rose 20% y/y to $110.5M but missed consensus of $114.5M while backs FY26 revenue view $500M-$520M.
• HIMS -6%; adds to prior day loss on mixed Q1 results, with both revenue and adjusted EBITDA coming in modestly below expectations as growth was pressured by a difficult Y/y comp resulting from record weight loss net adds.
• OKLO -5%; after the small nuclear reactor developer reported a Q1 (-$0.19), matching analyst expectations. The result, however, was wider than the (-$0.07) per-share loss recorded in the same period a year earlier.
• RCAT -15%; shares tumbled after saying it sold 23.94M shares (or $225M) at $9.40 per share in an offering that was increased from $200M, which was priced at a 14.8% discount to its last sale
• REI -22%; after 44.44M share Spot Secondary priced at $1.35.
• WIX -31%; shares tumbled after Q1 revs $541M vs. est. $544.2M, Q1 bookings grew 15% yr/yr, driven by strong new user cohort and Base44 momentum; maintains full-year 2026 outlook for bookings and revenue growth at mid-teens percentage y/y.