Tesla, Wells Fargo, and Delta Air Lines Among 5 Stocks Grabbing Morning Headlines

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Devon Divests More Assets

Devon Energy Corp (NYSE:DVN) is in the spotlight after the company officially agreed to sell its 50% stake in the Access Pipeline to Wolf Midstream Inc, a portfolio company of the Canada Pension Plan Investment Board for around $1.1 billion. The deal includes a potential additional payment of CAD$150 million, dependent on the sanctioning and development of a thermal-oil project at Devon’s Pike lease. The sale marks the completion of Devon’s divestiture program, which has totaled $3.2 billion so far, and improves Devon’s investment-grade balance sheet. The number of funds in our database with holdings in Devon Energy Corp (NYSE:DVN) rose by 11 quarter-over-quarter to 58 as of the end of March.

JPMorgan Beats

JPMorgan Chase & Co. (NYSE:JPM) shares are 2% in the green this pre-market after the bank beat top and bottom-line expectations by $1.05 billion and $0.12 per share respectively, pulling in EPS of $1.55 on sales of $25.21 billion for the second quarter. The company’s consumer and community banking sales rose by 4% and JPMorgan’s overall CET1 ratio inched up by 90 basis points to 11.9%. Tangible book value jumped to $50.21 per share from $46.13 per share a year earlier. Look for JPMorgan shares to do well if the global economy recovers and interest rates normalize. 97 funds that we follow had a bullish position in JPMorgan Chase & Co. (NYSE:JPM) at the end of March, down by three quarter-over-quarter.

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Wells Fargo Drawing Interest After Fed President Comment

Wells Fargo & Co (NYSE:WFC) is being watched today after Federal Reserve Bank of Philadelphia President Patrick Harker said that the U.S economy might need two interest rate hikes by the end of the year. Although Harker’s stance could be construed as dovish given that he thought the economy needed two to three hikes in late May, his comments could be construed as bullish for interest rate-related stocks. Due to Britain’s vote to leave the EU on the 23rd of last month and due to the political sensitivity of raising rates before an upcoming Presidential election, many traders assumed the Fed would keep interest rates lower for longer and only raise them once in 2016, in December. If the Fed raises them twice this year to avert higher inflation down the road, Wells Fargo will benefit with higher interest-related income. The higher profits could translate into faster dividend growth down the road. 90 funds tracked by Insider Monkey owned shares of Wells Fargo & Co (NYSE:WFC) as of the most recent 13F reporting period, up by five from a quarter previous.

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Disclosure: None

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