Mid-Morning Look: August 07, 2026

Mid-Morning Look

Friday, August 07, 2026

U.S. stocks got a nice bump higher this morning with the big news being the surprise miss and negative jobs reading for July jobs report as Nonfarm Payrolls declined an unexpected (-23K) vs. +80K estimate while prior months were revised lower, & wage growth continued moderating. May and June payrolls were revised down by a combined 103K. While declining jobs in the U.S. is nothing to cheer about, it dramatically reduced the rate hike expectations of the Fed which has raised inflation concerns as a cause for fear. The private payrolls report rose +30K jobs, well below the +78K expected while factory jobs rose +5K vs. est. +4K. Average Hourly Earnings slid, rising +0.1% MoM vs. +0.3% estimate and are now +3.2% YoY vs. +3.5% estimate. The Labor force participation rate declined to 61.4% vs. 61.5% prior, which accounted for the unemployment rate dropping to 4.1% vs. 4.2% estimate. While unemployment fell, report could shift expectations toward rate cuts if softer employment trend persists. Earnings season has been strong (an understatement) as of the 440 S&P 500 companies that have reported thus far, 87% have beat results vs 82% beat rate last year with the avg beat 14% though avg miss -27%; avg yr/yr earnings growth 25% vs 14% last year and median yr/yr earnings growth 14% vs 8% Last year.  

Impact of the lower jobs data report: the dollar index (DXY) falls -0.3% to 99.60 as the Euro rises to 7-week high of $1.1567; Treasury yields tumbled across the board as rate hike chances tumble given the weaker jobs reading; precious metals back on the rise with gold, silver, platinum all surging on falling dollar/yields.  Shares of sectors that benefit from lower interest rates such as homebuilders, mortgage related companies, higher dividend paying sectors (utilities, REITs, telco) were among early market leaders on the weak jobs reading lowering chances of rate hikes by the Fed in coming meetings. Also seeing early strength in Consumer Discretionary (XLY) +1.3% along with technology (XLK) as software stocks rebound nicely on earnings, while materials get a boost (XLB) led by mining stocks on lower rate hike expectations (lifting gold and silver prices/miners). Energy (XLE) the early leader to the downside as oil prices dip and modest declines in Financials (XLF).

• Software sector strong on heels of several upbeat earnings reports overnight/this week. Companies including TEAM, FROG, TWLO surging after results/guidance last night with each having an explanation for AI helping rather than hurting its business. Earlier in the week good results from PLTR helped tech as well as NOW recently (with a few hiccups mid-week from HUBS, FIG). Shares of DDOG slumped yesterday despite beat and raise quarter noting shares have outperformed to record highs into print. The iShares Expanded Tech-Software Sector ETF is up 10% since the start of July amid a rotation from the PHLX Semiconductor Index’s which is down -15% drop same period.
• Solar stocks strong (FSLR, DQ, ENPH, FTCI, RUN) after The White House imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in Semiconductors and solar panels that is primarily produced by China. U.S. President Donald Trump’s proclamation under Section 232 of the Trade Expansion Act of 1962 is aimed at supporting domestic chip and solar supply chains needed to compete with Beijing on artificial Intelligence and energy.

• CART +14%; Q2 was a beat and raise on both the top and bottom lines; Q2 GTV growth was primarily driven by MAUs as GTV continued to outpace Orders; Q3 GTV guide came in better-than-expected, as the midpoint of 14% growth Y/Y was ahead of Street expectations by LSD%.
• DOCS +54%; shares surged after reported a solid beat, FQ2 revenue guidance in line with consensus (but at lower margins due to Ai investments), and FY guidance that was raised, but adj. EBITDA guidance cut also due to Ai spend; sees FY27 revenue $671M-$681M, above consensus $670.34M.
• DV +12%; to be acquired by Nielsen Holdings in a deal with an enterprise value of about $2.15 billion as Nielsen will pay $13.60 a share
• FIGS +35%; posted better-than-expected Q2 (June) results and updated favorably its guidance for 2026; Q2 revenue expanded 29% (vs. Street +22% and guidance for low-20% range), marking the third consecutive quarter of 28%+ sales growth; FIGS Teams business logged its largest revenue quarter in Q2.
• NET +13%; raised its annual forecasts, betting that resilient AI-driven demand will sustain traffic across its network as raises FY26 EPS view to $1.25-$1.26 from $1.19-$1.20 and boosts FY26 revenue view to $2.864B-$2.87B from $2.804B-$2.813B (est. $2.81B) which followed a strong beat for Q2 results.
• NTRA +19%; shares rose on results as 2Q revenue of $753M crushed consensus of $661M as gross Margin was 61.8% (ex-true up) and EPS was ($0.47) compared consensus of ($0.55); raised FY26 revenue guidance to be in the range of $2.85B-$2.91B from previous of $2.740B-$2.820B.
• ONTO +15%; as Q2 results well-above consensus led by stronger sequential revenue growth in advanced nodes (+50% QQ), spread across both memory and Logic/foundry; Non-GAAP EPS 20c above the high-end of prior guidance range. Q3 guide also well-ahead ($390M mid-pt vs est. $350M).
• TEAM +35%; after reported strong Q4 results as revs rose 28% y/y while remaining performance obligations (RPO) surged 44% to $4.82B and subscription ARR reached $6.6B, up 23%; issued better-than-expected Q1 guidance of $1.705B-$1.715B, above the $1.67B consensus, with cloud rev growth of 28.5%.
• TWLO +23%; topped Q2 expectations and delivered stronger-than-expected customer expansion, with its dollar-based net expansion rate of 116% exceeding the 110% estimate. For Q3, Twilio expects revenue of $1.505B-$1.515B and adjusted EPS of $1.42-$1.47, both above Wall Street estimates.

• QDEL -24%; shares tumbled as 2Q results topped consensus, with revs of $631M (vs. $619M cons) and EBITDA of $129M (vs. $109M cons), the company reduced its 2026 guidance, now expected adj EBITDA of $540M to $560M (from $615M to $630M prior), reflecting demand headwinds in China.
• REPL -7%; said the FDA granted accelerated approval to Replimune’s drug Tudriqev for advanced melanoma in patients whose tumors grew despite prior treatment. Wedbush said stock’s weakness is likely tied to the FDA-approved label citing a 24% objective response rate, ORR, below the 33% figure highlighted previously
• RMD -7%; after reported a mixed Q4 as halted Astral sales weighed on results. FY27 sales guidance was below prior Street.
• SEZL -31%; Adjusted EPS of $1.13 topped the $1.02 consensus, while revenue rose 52% Y/Y to $149.7M, beating estimates by $14.6M. GMV jumped 38% to $1.3B, while active subscribers surged 76% to 854K. non-transaction-related operating expenses rose to 29% of revenue from 25.3% in Q1, while transaction-related costs increased to 36.5% from 26%, weighing on investor sentiment.
• TTD -22%; after the digital advertising platform missed Q2 expectations on both revenue and adjusted EPS, raising concerns about slowing momentum. Revenue rose 3% Y/Y to $715M, below the $751.4M consensus, while adjusted EPS of $0.34 missed the $0.40 estimate.
• UAA -4%; forecast a steeper annual decline in revenue, struggling with weak consumer spending saying now expects full-year revenue to decline by mid-single-digit percentage, compared with its prior target of a slight decline