Short Report: Bears sell into sharp rally in Hims & Hers
Protect Your Portfolio Against Market Uncertainty
SHORT INTEREST GAINERS
Ortex reported short interest in Hims & Hers (HIMS) is up for the fourth consecutive week, rising from 34.3% to 36.3%, with intra-week high above 37% marking a record high. Days to cover on the name was up slightly from 1.5 to 1.6. Bears are loading up on the stock despite its strong performance over the past few weeks. Shares have more than doubled from the lows in the first week of April as well as year-to-date. In the five day period covered, Hims & Hers was up 42%, with much of those gains coming after the company reported a strong top-line beat with its Q1 results and affirmed its guidance.
Ortex-reported short interest in AST SpaceMobile (ASTS) slipped to a four-month low of about 22% late last week but increased notably from 22.4% to 27.7% this week, tracking a sharp stock price rally last Friday. The company had announced that it will be holding a quarterly business update this coming Monday, driving a 14% gain in shares. Days to cover also gained from 6.8 to 7.1, a three-month high. For the five-day period covered through Thursday, AST SpaceMobile ended up 10%, and year-to-date, the stock is up 22%.
Ortex-reported short interest in Madrigal Pharmaceuticals (MDGL) tracked sideways in a 34%-35% range over the past four weeks, though with the stock finding some support over the past two trading sessions following four consecutive sessions of losses, bears are boosting their exposure. Shorts as a percentage of free float on Madrigal jumped from 34.8% to a four-month high of 38.9%, though days-to-cover was little changed with a 30bps decline to 6.7. Following the company's earnings last week, the stock initially jumped 5% on Thursday but closed lower on the day. This week, Madrigal shares were 8.5% in the five-day period through Thursday.
SHORT INTEREST DECLINERS
Ortex-reported short interest in Savers Value Village (SVV) hit a one-month high above 25% last Friday but has now receded overall for the second consecutive week. This week, shorts as a percentage of free float slipped from 23.5% to 21.9% – the lowest level since October of 2024. Likewise, days-to-cover was down from 17.8 to a multi-month low of 15.7. Buyers are driving out the bears following the company's Q1 earnings beat last Thursday that saw the stock surge % in the following session. For the five-day period covered through Thursday, Savers Value was up 20% and year-to-date, shares are up about 8%.
Ortex-reported short interest in Groupon (GRPN) fell steeply after the company's blowout Q1 results this week. Shorts as a percentage of free float collapsed from 36.5% to 30.0%, the lowest level in nearly nine months, with days-to-cover also slipping from 3.4 to a multi-month low of 3.1. The stock surged 42% after Groupon reported a surprise profit against expected Q1 earnings loss and also topped consensus on the top line on Thursday, driving pronounced short-covering late in the week. Year-to-date, Groupon shares have now more than doubled.
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He concluded his remarks by extending an invite to Sir Keir to visit India 'very, very soon'. 11:22 AM BST Deal on workers will allow UK to benefit from India's 'skilled talent', says Modi Narendra Modi said the trade deal struck between India and the UK was the product of 'many years of hard work'. The prime minister of India thanked Sir Keir Starmer for the 'warm welcome and gracious hospitality' he had received at Chequers. Speaking through a translator, Mr Modi said the trade pact was a 'blueprint for our shared prosperity'. Mr Modi said a double contributions convention (DCC) deal which will make it easier for workers from each country to work temporarily in the other country would 'inject new energy into the service sectors of both countries'. He said it would 'promote ease of doing business' and the UK economy would benefit from India's 'skilled talent'. Opposition parties in the UK have claimed the DCC deal risked undercutting British workers. The Government rejected those claims as 'completely false'. 11:18 AM BST UK-India trade deal to cut Indian tariffs from 15pc to 3pc The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain. It will see tariffs on an array of British goods reduced from an average of 15pc to 3pc, with the aim of boosting the £11bn of imports into the south Asian nation. Whisky tariffs will be slashed in half and will fall further over successive years, while other industries including soft drinks, cars and cosmetics are also expected to see cheaper duties. The deal is expected to result in 2,200 jobs across the country and £6bn investment by British and Indian businesses. The UK and India are also bolstering co-operation on tackling corruption, fraud, organised crime and illegal migration, by sharing criminal records and other intelligence. But the deal has not given the UK as much access as it would have liked to India's financial and legal services industries. The UK-India trade agreement promises some benefits for the UK's financial services, with Chancellor Rachel Reeves understood to have pushed on behalf of the sector in discussions with her Indian counterpart. But more wide-ranging access was not agreed, and talks continue on a bilateral investment treaty aimed at protecting British investments in India and vice versa. The two nations also continue to discuss UK plans for a tax on high-carbon industries, which India believes could hit its imports unfairly. 11:11 AM BST Starmer takes credit for getting India trade deal over the line Sir Keir Starmer said the finalisation of the India trade deal would send a 'powerful message that Britain is open for business'. The Prime Minister said: 'The UK has been negotiating a deal like this for many years but it is this Government that got it done.' 'This is not the extent or the limit of our collaboration with India,' he added. Sir Keir said the two countries intended to 'strengthen our relationship further' in the coming years in areas like defence, climate and health. Trade negotiations started in 2022 under the previous Tory government. 11:09 AM BST Starmer: India trade deal will deliver £4.8bn boost to UK economy Sir Keir Starmer said the signing of the trade deal with India represented a 'landmark moment for both our countries'. Speaking alongside Narendra Modi at Chequers, the Prime Minister said the agreement was now 'signed, sealed and ready to be delivered'. The pact will be 'good for jobs, good for business' and will deliver a boost to the UK economy worth £4.8bn, he said. 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Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal then formally signed the trade agreement in the great hall of Chequers, the Prime Minister's country estate in Buckinghamshire. 10:29 AM BST Britain 'at risk of continued jobs falls' Britain is at 'risk of continued jobs falls', economists warned after closely watched data showed employers cutting staff numbers in response to Rachel Reeves's tax raid. The UK PMI jobs index fell to 45.1 from 46.6 in June, which was the weakest since February, as companies reported that tax hikes on payrolls were forcing them to lower their headcount. Rob Wood, chief UK economist at Pantheon Macroeconomics, said the latest drop 'breaks a fitful improvement in the PMI jobs balance since February'. He warned that PMI data has recently been prone to revisions which have improved the picture for the UK economy but said the latest figures were likely to 'justify a rate cut next month' by the Bank of England. He said: 'For now we are inclined to downplay the weakness, waiting for the final PMI at least, but the jobs balance poses a risk of continued jobs falls.' 10:20 AM BST 'Not a lot of cheer' in UK economic data 10:07 AM BST Bank of England 'reassured' to cut interest rates The Bank of England will be reassured that it can keep cutting interest rates once a quarter after closely watched data showed a slowndown in Britain's economy. Growth in the UK's private sector slowed down last month as the PMI reported a reading of 51 in July, sliding from a nine-month high of 52 in June. Any score above 50 indicates that activity is growing while any score below means it is contracting. Ashley Webb of Capital Economics said: 'July's flash PMIs provide further evidence that the upside risks to inflation have continued to fade and payroll employment is still falling.' He added: 'Overall, the further falls in payroll employment and slowing services price inflation should reassure the Bank of England that it can cut interest rates from 4.25pc now to 4pc in August and continue cutting rates at the current pace of one 25 basis points rate cut per quarter.' 09:57 AM BST Borrowing costs edge lower as economy weakens The cost of government borrowing edged lower as traders bet that weak economic data cemented the case for the Bank of England to cut interest rates next month. The yield on two-year UK gilts – a benchmark for the cost of servicing the national debt – was down around two basis points to 3.85pc despite bond yields rising across the rest of Europe's major markets. 09:41 AM BST Job cuts accelerate as Reeves tax raid bites Britain's private sector companies cut jobs at the fastest pace since February, a closely watched survey showed, as Rachel Reeves's tax raid pushed up staffing costs. Employment in both the manufacturing and service sectors fell for the 10th consecutive month during July, the S&P Global Flash UK PMI showed. Bosses complained that increased payroll costs had forced them into redundancies and hiring freezes. In April, companies faced an increased in employer National Insurance contributions and the national minimum wage, which were announced in the Chancellor's Budget last year. 'The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year,' said Chris Williamson, chief business economist at S&P Global. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's Budget and the broader destabilising effect of geopolitical uncertainty. 'Particularly worrying is the sustained impact of the Budget measures on employment. Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July. 'The weak growth trajectory and sustained culling of jobs will add to pressure on the Bank of England to cut rates again at its next policy meeting in August.' 09:30 AM BST Trump tariffs hit FTSE dividends UK-listed companies are expected to pay out £1.8bn less in dividends this year after Donald Trump's tariff policies hit the dollar. UK dividends fell by 1.4pc to £35.1bn in the second quarter of the year, a report by share registrar Computershare showed. It came as the value of the pound surged by 5pc against the dollar during the same period, impacting the results of many FTSE 100 companies, which measure their results in the US currency. President Trump's tariff policies have raised concerns about so-called US exceptionalism, prompting investors to shift assets away from the dollar to alternatives. As a result, Computershare forecast the UK would pay out dividends of £88.3bn this year, down 1.4pc. Chief executive Mark Cleland said: 'Overall, companies are cautious, tending not to announce significant increases in their dividends – indeed many have made cuts – and special dividends are in steep decline this year too.' 09:08 AM BST EU approves €93bn retaliation if US trade talks fail The European Union's member countries have approved counter-tariffs on €93bn (£80.7bn) of US goods. The tariffs could be imposed should the bloc fail to reach a trade deal with Washington, EU diplomats said. 09:05 AM BST Cars and healthcare to 'benefit most' from EU-US trade deal Carmakers, healthcare companies and consumer staples would benefit most from the potential EU-US trade deal, Deutsche Bank said. Analysts said the latest reports indicate there would be a 10pc tariff on top of the levies that existed before 'liberation day'. It said that if there were no tariffs on specific sectors, this 'would be even beyond our bullish base case', indicating it expects stocks would rally more sharly than expected. Strategist Maximilian Uleer said: 'We see consumer discretionary (foremost autos), healthcare and consumer staples as most hit from sector specific tariffs. 'Accordingly, we would expect the three sectors to benefit most.' 08:56 AM BST Banks help push European shares higher European shares rose to a six-week high amid optimism over a potential EU-US trade agreement. The pan-European STOXX 600 index gained 0.6pc to its highest since June 11. Germany's blue-chip Dax added 0.9pc and the UK's FTSE 100 advancing 0.6pc to an all-time peak, marking a sixth straight session of gains. A 2.3pc rise in banks led gains among European sectors, helped by Deutsche Bank and BNP Paribas. Deutsche Bank climbed 4.4pc after the German lender returned to a better-than-expected profit in the second quarter, while French bank BNP Paribas gained 1.9pc after reporting a smaller-than-expected decline in second-quarter profit. Roche gained 2pc after the Swiss drugmaker reported better-than-expected first-half operating profit. On the flip side, Nestle dropped 4.5pc after the Swiss consumer giant announced a strategic review of its vitamins business and posted first-half results. The European Central Bank is widely expected to keep rates steady at 2pc after seven consecutive cuts. 08:42 AM BST German factory output 'remains fragile' Germany's key manufacturing sector 'remains fragile', economists have warned after closely watched data showed factory output continued to shrink. The closely watched HCOB Germany Composite PMI showed factory production remained in contraction, where it has been for three years, although the pace of output has expanded for five months in a row. Its overall PMI reading – a tracker of private sector activity – declined unexpectedly to 50.3 in July from June's 50.4, although this shows activity overall remains in expansion territory. Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: 'The economic situation in the manufacturing sector remains fragile.' He added: 'Overall, we see increasing signs of a recovery in the manufacturing sector, a picture that is confirmed by the latest investment initiative by key business leaders and supported by the measures taken by the federal government, including more favourable depreciation conditions for investments since July 1. 'Even higher US tariffs should not fundamentally change this outlook.' 08:31 AM BST French private sector hit for 11th straight month France's private sector economy continued to deteriorate at the beginning of the third quarter as business activity shrankfor an eleventh successive month, a closely watched survey showed. French companies' expectations for the year ahead slumped sharply to their weakest since November last year, according to the HCOB Flash France PMI. Jonas Feldhusen of Hamburg Commercial Bank, said: 'France remains under considerable pressure, both economically andpolitically. GDP growth is unlikely to exceed the 1pc mark this year. At the same time, questions are mounting over whetherPrime Minister Bayrou can sustain his austerity course politically. Global trade upheaval is compounding the strain on France as a business location, though the recent deal between Washington and Tokyo may bring a potential EU–US agreement closer within reach.' 08:23 AM BST European stocks jump at the open European shares leapt higher at the open amid hopes for a trade deal between the EU and US. The Dax in Frankfurt surged by 0.9pc to 24,469.30 while the Cac 40 in Paris gained 0.4pc to 7,879.98. 08:10 AM BST Trump: Countries faces tariffs of 15pc to 50pc Donald Trump said countries in trade talks with the US would be hit with tariffs ranging from 15pc to 50pc. The US president told at AI summit in Washington: 'We'll have a straight, simple tariff of anywhere between 15pc and 50pc. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' 08:04 AM BST UK stocks jump amid US trade deal optimism The FTSE 100 rose at the start of trading amid optimism that the European Union and US are nearing a deal for 15pc tariffs on goods from the bloc. The UK's flagship stock index climbed 0.4pc to 9,088.41 while the mid-cap FTSE 250 gained 0.1pc to 22,042.59. 07:57 AM BST European Central Bank expected to hold interest rates The European Central Bank is expected to announce that it will keep interest rates on hold later today. The ECB has halved its policy rate from a record 4pc to 2pc in the space of just one year after taming a surge in prices that followed the end of the pandemic and Russia's invasion of Ukraine. The hold would pause seven straight cuts as it waits for the fog surrounding Europe's trade relations with the United States to clear. With inflation now back at its 2pc goal and expected to stay there, eurozone central bankers are expected to instead observe what kind of tariffs Donald Trump imposes on the European Union. 07:43 AM BST Trump to visit Fed as he ramps up pressure for interest rate cuts Donald Trump will visit the US Federal Reserve later as he ramps up pressure on its chair Jerome Powell to cut interest rates. The US president has lambasted the head of the US central bank for being 'too late' to reduce borrowing costs, calling him a 'numbskull' on Tuesday and musing publicly about firing him. Mr Trump has said higher interest rates are costing the US economy billions of dollars. The US central bank held interest rates steady this year as policymakers monitored the effects of Mr Trump's tariff campaign on inflation. The White House announced the surprise visit from Mr Trump but gave no further details. It is not clear if Mr Trump will meet Mr Powell, who he nominated as Fed chair during his first term in office. It comes weeks after officials accused the Fed of mismanaging the $2.5bn renovation of two historic buildings in Washington, DC. 07:37 AM BST Brussels heads towards 15pc US tariff rate The European Union is on course to agree a trade deal resulting in a 15pc tariff on exports to the US, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan, officials said in a brief to EU envoys on the talks. Under the outlines of the potential deal, the 15pc rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5pc, Reuters reported. There could also be concessions for sectors like aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. 07:31 AM BST Good morning European stocks were on track to surge at the start of trading amid hopes for an EU-US trade deal. France's Cac 40 was up 1.6pc in premarket trading while Germany's Dax gained 1.3pc after diplomatic sources told the Telegraph that Brussels is close to agreeing a trade deal that will slap 15pc tariffs on American imports of EU goods, similar to the deal with Japan. This would avoid a 30pc tariff threatened by Donald Trump in a letter to the European Union earlier this month. Deutsche Bank analyst Jim Reid said: 'Indeed, if a 15pc total rate inclusive of existing tariffs is agreed as suggested, this would mark only a marginal increase compared to the 10pc additional tariffs that EU exports to the US have faced since Liberation Day but with certainty about the future.' EU trade commissioner Maroš Šefčovič met with US commerce secretary Howard Lutnick on Wednesday. Mr Trump said the US was in 'serious negotiations' with the EU and that 'we will let them pay a lower tariff' if the bloc opens up to American businesses. US treasury secretary Bessent said: 'We are making good progress with the EU.' Here is what you need to know: 5 things to start your day Tesla takes veiled swipe at Trump | Tesla announces sharply lower profits amid a political backlash British Army tests German-made kamikaze drones | Start-up has raised £9m and is looking to make the devices in UK after working with MoD The wealthy seaside idyll facing a tidal wave of taxes | Residents of 'Britain's Palm Springs' have seen their lives turned upside down by Reeves's raid BT poaches Virgin Media O2's finance chief | Telecoms giant to appoint Patricia Cobian after four years at rival Sam Ashworth-Hayes: China and America are now locked in a race for the next superweapon | As a new cold war beckons, nurturing homegrown tech and talent has scarcely been so critical What happened overnight Asian shares rose amid optimism that the US-Japan tariff agreement will be followed by more trade deals. Traders are speculating that the US may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week. European leaders were meeting with top Chinese officials in Beijing to discuss trade, climate change and global conflicts. But observers said solid agreements were unlikely. In Asian trading, Japan's Nikkei 225 surged nearly 2pc to 41,983.50. The Shanghai Composite Index added 0.4pc to 3,595.58 while Hong Kong's Hang Seng index rose 0.4pc to 25,631,08. South Korea's Kospi climbed 0.9pc to 3,211.21 after central bank data showed Thursday that the country's economy expanded at a 0.6pc annual rate in the last quarter, above expectations thanks to robust private consumption and exports. India's BSE Sensex edged 0.7pc higher to 82,726.64 and Australia's S&P ASX 200 slid 0.1pc to 8,729.20. On Wall Street, the Dow Jones Industrial Average rose 1.1pc, to 45,010.29, the S&P 500 rose 0.8pc, to 6,358.97, and the Nasdaq rose 0.6pc, to 21,020.02. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.388pc from 4.372pc late on Tuesday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
The Hill
2 hours ago
- The Hill
Markets jump after Powell rebuffs Trump
The S&P 500 finished 0.4 percent up, and the Dow Jones Industrial Average finished up 208 points or 0.47 percent. The tech-heavy Nasdaq Composite gained about a quarter of percent to close above 21,108. Top gainers on the day included Comfort Systems USA, Bel Fuse, Deckers Outdoor Corp. and IES Holdings, according to Morningstar. The bond market also cooled off Friday. The 10-year Treasury yield finished slightly down after trading higher during the day as did the 30-year. The bond market has exhibited major stresses this year through Trump's trade war. Outflows from long-dated U.S. public and private bond funds reached close to $11 billion in the second quarter, according to a June Financial Times analysis using EPFR data. Friday's gains followed a confrontation between Trump and Powell on Thursday in which Powell repelled an attack from Trump — this time not on social media but on television.
