Mid-Morning Look: August 06, 2026

Mid-Morning Look

Thursday, August 06, 2026

U.S. stocks rallying amid another day of sector rotation as after a nice 4 day rally from last week stalled yesterday, lifting the Nasdaq 100 nearly 10% during that strength amid a rebound in semis, Ai, etc., the technology group stumbles early behind weaker software outlooks (HUBS, FIG) and pullbacks in memory after generally strong results (SNDK, WDC), as investors rotate back into defensive sectors with Healthcare, Consumer Staples, and Energy seeing early strength. However, strength in large cap like AAPL, AMZN, MSFT, NVDA) help tech rebound. WTI crude is up slightly to around $76 a Barrel despite reports that Iran and Oman are close to finalizing a deal on Strait of Hormuz traffic. Oil prices rose on Thursday as investors remained cautious on the outcome of Iran-Oman talks. The Nasdaq, while down slightly, is only 3% from all-time highs while the Dow hit another record today along with the S&P 500 in a busy day of earnings and ahead of key nonfarm payroll data tomorrow morning. Of the 411 S&P 500 companies that have reported thus far in the S&P 500, 87% have beat vs 82% beating a year ago and the avg beat 14% vs 13% LY, avg miss -29% vs -21% LY and avg yr/yr earnings growth 25% vs 14% LY. The Nasdaq 100 (QQQ) dropped below its 50dma this morning but has quickly rebounded/recovered.

• U.S. Q2 non-farm productivity +1.4% (consensus +0.6%), vs Q1 +0.8% (prev +0.3%) while U.S. Q2 non-farm unit labor costs +1.3% (consensus +2.1%), vs Q1 +1.3% (prev +1.8%).
• Challenger layoffs showed 33,429 job cuts in July 2026, the fewest in two years…down 27% from June and 46% compared with the same month last year. Ai led all reasons for job cuts for a Fifth straight month and was responsible for 10.97K during the month.
• June wholesale inventories revised to +0.2% (consensus +0.3%) from +0.3%; June wholesale sales -3.0% (consensus +2.2%) vs May +3.5% (prev +3.4%); U.S. June stock/sales ratio 1.19 months’ worth vs May 1.15 months.

• Retail re-sell products: ETSY reported a 2Q above expectations, with GMS of $2.58B (+7.5% y/y adj.; down -8% reported), revenue of $668.3M (+9.3% y/y, and while active buyers were roughly stable y/y and gross buyer additions accelerated in the quarter; raised year guidance. As marketplace GMS now expected to grow ~MSD% y/y (prior ~LSD growth). EBAY delivered a strong quarter with GMV, revenue, and EPS above expectations, while growth categories continued to accelerate, though near-term EPS guidance reflects the impact of the Depop acquisition.
• In Nuclear power: CEG said it will sell a gas plant in Texas to LS Power for $860M and also raised its current-year operating earnings forecast on the back of robust power demand. SMR reported Q2 EBITDA loss of -$64M, slightly worse due to minimal revenue and higher R&D to support the supply chain and allow for quicker deployment. Also in the quarter, the company issued $947M of equity to bring the cash and investment balance to $1.9B. LEU said it would provide XE with enrichment services for Low-Enriched Uranium and High-Assay, Low-Enriched Uranium/are expected to support X-energy’s initial Xe-100 small modular reactors and TRISO-X fuel deployments.
• Payments sector: FISV shares fell as Q2 adj revs -4% to $4.96B missing ests $5.04B and adj EPS for Q2 decreased 26% and missed analyst expectations ($1.84 vs. $1.91); cuts FY26 adjusted EPS view to $7.20-$7.40, from prior view $8.00-$8.30 and  now expects organic revs for 2026 of (1%) to 0%. GPN was upgraded to Outperform at Wolfe Research after reported an in-line Q226 and reset guidance to account for Mideast impacts and in Wolfe’s view, include 2H26 conservatism. FOUR shares fall after cutting its guidance as sees FY26 adjusted EPS view to $5.15-$5.35 from $5.50-$5.70 (est. $5.56) and sees FY26 gross revenue less network fees $2.48B-$2.53B.

• OXY +5%; on earnings as reported its highest quarterly profit since 2022, surpassing Wall Street expectation; global production rose 2.4% to 1.43 million barrels of oil equivalent per day; Realized oil prices surge more than 50% year-over-year.
• PH +9%; rises after results and raising adjusted 2027 profit between $34.25-$35.25 per share, the midpoint of which is above analysts’ estimate of $34.04 while Q4 sales at the company’s aerospace systems segment rose 13.4% to $1.90B and overall revs $5.76B
• RL +4%; after Q1 adj EPS and sales $1.96B topped consensus $1.87B helped by resilient demand from young and affluent shoppers for its high-priced collections and raises fiscal 2027 revenue forecast to around 5% to 6%, compared to prior rise 4% to 5%.
• SEI +10%; delivered sharply higher-than-expected Q226 adjusted EBITDA (+24.0% versus Stifel’s estimate, +20.7% versus consensus), raised Q326 guidance by 11.4% at the midpoint versus the consensus, and expanded three long-term contracts.
• U +11%; after Q2 revs $546.46M topped consensus $514.6M led by Unity Vector AI and Grow Solutions; non-strategic revenue declined and guides Q3 strategic revenue of $540M-$550M (+44%-47% y/y) and expects Q3 adjusted EBITDA of $185M-$190M, up 69% to 74% y/y.

• BROS -16%; delivered an all-around beat and raised 2026 guidance for comps, revs, and EBITDA, but shares fell on softer Q3 comps guidance (+4–5%).
• CELH -15%; shares decline after Q2 revenue of $818M missed the $870M consensus estimate and adjusted EPS of $0.36 fell short of the $0.42 estimate and said gross margin fell to 48% from 51% y/y as ongoing aluminum cost inflation outweighed freight savings.
• FISV -7%; shares fell as Q2 adj revs -4% to $4.96B missing ests $5.04B and adj EPS for Q2 decreased 26% and missed analyst expectations ($1.84 vs. $1.91); cuts FY26 adjusted EPS view to $7.20-$7.40, from prior view $8.00-$8.30 and  now expects organic revs for 2026 of (1%) to 0%.
• FUN -18%; Q2 revs $864.9M missed the $933.3M estimate, with adjusted EBITDA of $243.1M falling well short of the $282.3M consensus and posted a net loss of $202.6M for the quarter
• HONA -19%; shares tumbled in first report as spin off from Honeywell as guides 2026 organic sales growth of 4%-5%, down from prior view 7%-9% increase and cuts year adj EPS to $7.60-$7.90, below analysts’ expectation of $8.86 after Q2 adj profit fell -32% y/y.
• PZZA -15%; cuts annual sales forecast, hurt by challenges in North America as sees annual global system-wide restaurant sales forecast to decline in the range of -2% to -4%, compared to its prior expectations of flat-to-low single digits and guides 2026 North America comparable sales to decline between -6% and -8% vs its prior expectations of a -2% to -4% decline.
• WDC -11%; despite a Q2 beat, as Wall Street noted while good, was not as good as peer STX recently; delivered a modest beat on earnings relative to consensus for F4Q26 as well as on its F1Q27 guidance, with the upside to consensus revenue driven primarily by pricing, which tracked better than expected at roughly +high teens % y/y