Mid-Morning Look: July 06, 2026

Mid-Morning Look

Monday, July 06, 2026

U.S. stocks are notably higher as investors return from the 3-day holiday weekend in a bullish mood, adding to last weeks gains which saw the S&P 500 gain 1.75%, the Nasdaq climb 2.12%, and the Dow climbed 1.97% last week ending at an all-time high. Nasdaq leading gains early helped by a “buy the dip” in chip names (SOX) and memory names while SK Hynix announces its $28B US IPO listing. Oil is mixed and yields are down even as Fed Fund futures continue to fully price a rate hike by year end. The Dow Jones Industrial Average comes into the week at record highs and a 4th straight weekly gain, longest win streak since October 2024. Easing geopolitical tensions, and renewed strength in AI-related technology shares are supporting risk appetite ahead of today’s ISM Services PMI and a busy week of Fed speakers, FOMC minutes, and the unofficial start of earnings season.

Oil prices fell on Monday after OPEC+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies. There was no settlement for WTI on Friday as U.S. markets were closed ahead of the Independence Day holiday on Saturday.

Both contracts were little changed last week after mostly falling over the past few weeks. Treasury yields are lower with oil prices holding near low end of range since late February. Auctions ahead this week: $58b 3Y new issue Tuesday, $39b 10Y & $22b 30Y reopenings (2nd) Wednesday & Thursday.

• S&P Global Services PMI Jun F reported at 51.2 (vs. est 51.3; prev 51.3) and the S&P Composite PMI was 51.9 (vs. est 52.2; prev 52.2).

• Banks: Several research calls as Morgan Stanley downgraded TFC to Equal Weight as CEO transition amidst rising Southeast deposit competition introduces uncertainty around near-term estimates, while the firm downgraded PB to Equal Weight as well saying the stock has been under pressure on weaker growth and the banks is seeing pressure on organic loan growth. OZK was downgraded from Buy to Hold at TD Cowen saying while shares appear inexpensive, TDCowen doesn’t see enough catalysts for near-term Re-rating. Lastly at Jefferies, HBAN was downgraded to Hold from Buy as believe near-term headwinds could persist, including a lingering M&A-related discount, while upgraded USB to Buy from Hold (tgt to $75 from $60) saying recent updates point to U.S. Bancorp tracking toward the high end of its 6%-7% guidance for both net interest income and fee income, with operating leverage potentially exceeding 300 basis points in 2026 and upgraded CFR to Buy on asset sensitivity and expected growth moderation improve outlook.
• In Insurance: ALL & CB were downgraded at HSBC to Hold from Buy; LNC was upgraded to Overweight at Barclays as sees the company nearing the end of its capital-building process and may soon be able to redeploy capital through share repurchase. UNM announces $3.8 bln long-term care reinsurance deal with Fortitude Re; In other research, Morgan Stanley downgraded BRO to Underweight (from EW) and SLDE to Equal Weight (from OW) saying they see more compelling risk/ reward elsewhere in the insurance space.

• AVGO +5%; as expanded their long-standing technology partnership through 2031 with AAPL as Broadcom will develop and supply a range of custom ASIC silicon products for multiple generations of Apple products under new multi-year agreements.
• IREN +14%; along with gains in CIFR, HUT, WULF as AI data center, HPC, infrastructure names rebounding after tumbling last week on META impact.
• LEU +6%; will replace WSR in the S&P Smallcap 600 effective prior to the opening of trading on Tuesday, July 14.
• WULF +18%; shares surged after Anthropic signs lease for TeraWulf data center in Kentucky as the data center will have capacity of around 400 megawatts with first power delivery expected in the second half of 2027. The lease is initially expected to generate around $19 billion in revenue.

• CLVT -5%; announces divestment of Life Sciences & Healthcare segment for $600M to Atlaris; reaffirms full-year 2026 financial outlook to record ~$225 to $250M non-cash goodwill impairment.
• CPB -3%; along with CAG, GIS, KHC, KDP in food/consumer staples as flows back into tech today.
• DDOG -2%; was downgraded to Market Perform (raise tgt to $226 from $180) at Bernstein as the firm raised its long-term estimates citing increasing confidence in the company’s AI platform opportunity but downgraded on valuation and elevated near-term expectations.
• MSTR -3%; as Strategy sells more than 3,000 BTC. It had just bought 1,550 of those BTC in early June.
• SOLS -12%; to acquire ESI in a $14.5B cash-stock deal, including debt. ESI holders get $10 cash + 0.5 SOLS/share, a ~15% premium, and will own ~44% of the combined company.