Mid-Morning Look: August 14, 2026

Mid-Morning Look

Friday, August 14, 2026

U.S. stocks trying to hold record highs for the S&P 500 around 7,800, on track for weekly gains as the combination of better inflation data this week (CPI, PPI) following softer jobs data last Friday, give hope to no rate hikes from the Fed in their upcoming September policy meeting, boosting Smallcaps, interest rate sensitive names and lending or mortgage/housing related names. This morning more weak data as the July retail sales figure showed a decline of -0.6% last month, its worst reading in over a year. Coming into the week, the big question was whether hot inflation would force the Federal Reserve into hiking interest rates at its September meeting. The market is now pricing in only a 30% chance of a September rate hike, according to the CME FedWatch tool, down from around 45% a week ago. Energy (XLE) is the big winner thus far on the week rising 7.8% (now +38% YTD) after the US resumed the blockade of the Strait of Hormuz, lifting oil prices. The United States threatened an indefinite naval blockade of Iran, raising concerns about disruptions to crude supplies from the Middle East.  

Among top stock sector stories, drone stocks rise after the Trump administration announced fresh tariffs to be imposed under section 232 of the Trade Expansion Act of 1962, this time on drones, citing excessive reliance on imported drones threatening “to impair the national security of the U.S.” The highest tariffs of 100% are set to be imposed on drones with “a maximum take-off weight of more than 25 kilograms, because those UAS can more easily be used for weapons-related purposes.” Smaller drones face a 25% tariff, these taking effect September. Tech is weak early as software stocks slide, giving back much of the late day gain on Thursday after Reuters report Thursday that Silver Lake is in talks to acquire WDAY, which juiced the overall sector. Earnings season is mostly behind us minus a few key tech companies the next 2 weeks and retailers HD, WMT, TGT next week.

• University of Michigan surveys of consumers sentiment prelim Aug 51.0 (consensus 54.5) vs final July 55.2 while the current conditions index prelim Aug 51.8 (consensus 55.0) vs final July 54.8 and the expectations index prelim Aug 50.6 (consensus 55.2) vs final July 55.4.
• University of Michigan surveys of consumers 1-year inflation outlook prelim Aug 4.3% vs final July 4.2% and University of Michigan surveys of consumers 5-year inflation outlook prelim Aug 3.3% vs final July 3.3%
• U.S. June Business Inventories unchanged; U.S. June inventory/sales ratio 1.30 months’ worth vs May 1.28 months; U.S. June business sales -1.1% vs May +2.1% (prev +2.1%).

• Drone sector: the group with strength after President Trump bolsters national security and strengthens U.S. supply chains by imposing tariffs on drones and their parts and components. A proclamation signed by Trump imposes a 100% ad valorem tariff on drones of a certain size or with certain capabilities that are particularly sensitive for national security purposes, the White House said, adding that a tariff of 25% will be imposed on drones that are smaller in size (drone names AVAV, DPRO, ONDS, RCAT, UMAC, DRNZ rallied) and rebuilds the U.S. Navy and America’s Shipbuilding industrial base (watch shares of HII)
• Memory sector: SKHY has approved a $38.3B investment in the construction of two new Semiconductor Fabrication facilities in South Korea. Within the specifics of the $880 bn plan, both Samsung and Sk Hynix plan to build multiple new facilities in the new hub outside of the capital City of Seoul. The $38.3B investment covers a new Yongin Y2 Fabrication plant at the Yongin. SNDK was initiated at Overweight and $2,250 PT after period of restriction coming out of the company’s 2026 Investor Day held in New York.

• ETON +35%; shares rise on results as Q2 adj. EPS $0.43 tops est. $0.10 and revenue $37.6Mm vs. est. $27.1Mm; on better operating Income $12.8Mm vs est $3.927Mm and sees FY revenue guidance more than $145Mm vs. est. $121.3Mm; FY adj. EBITDA margin guidance at least 35%.
• HTFL +27%; shares jumped on results after reported Q2 results that beat on both the top- and bottom lines, raised FY26 revenue guidance well above the magnitude of the quarterly beat (FY26 revenue view to $246M-$250M from $228M-$232M) and increased gross margin expectations too.
• IMXI +20%; after the company gained approval from New York regulators to be acquired by WU. The New York State Department of Financial Services is allowing the deal between the two cross-border payment companies on certain conditions.
• NMAX +17%; on results; Q2 EPS $0.02 vs. est. loss (-$0.03); Q2 revs $54.11M vs. est. $48.6M; affirms FY sales guidance of $212M-$216M vs. est. $213.2M; Q2 Adjusted EBITDA rose to $5.7M vs. year ago loss (-$3.8M); says affiliate fee revenue more than doubled to $13.4M and licensing revenue rose to $4.6M.
• NU +12%; after Q2 net profit of $1.06B topped consensus of $967.2M on revenue of $5.88B versus estimates of $5.60B, with return on equity of 33% and a 90-day default ratio of 6.9% on a $39.4B consolidated loan book.
• RDDT +13%; as it will replace AVB in the S&P 500 effective prior to the opening of trading on Tuesday, August 18 (AVB is being acquired by EQR around that time).
• UMAC +12%; along with ACAT, ONDS, RCAT, DRNZ after President Trump bolsters National Security and strengthens U.S. supply chains by imposing tariffs on drones and their Parts and components. A proclamation signed by Trump imposes a 100% Ad valorem tariff on drones of a certain size or with certain capabilities that are particularly sensitive for National Security purposes.
• VALN +28%; after the European Medicines Agency validated the marketing application for its Lyme disease vaccine candidate, developed with partner PFE.

• BBIO -2%; said its 5M share Spot Secondary priced at $78.00.
• GLOB -5%; as Q2 revenues came in above consensus, while EPS and margin results fell short on FX and utilization headwinds. Wedbush downgraded shares saying the co can no longer rebound over the next 12 months with the legacy T&M business continuing to see erosion from AI-driven processes.
• KLC -38%; shares fall after Q2 miss and lower guidance as Q2 adj EPS $0.08 missed the est. $0.10 while cuts its FY26 EPS view to $0.05-$0.15 from $0.15-$0.25 (est. $0.20) and lowers FY26 revenue view to $2.66B-$2.7B from $2.7B-$2.75B which was below consensus $2.71B.
• SPRY -5%; shares fell on results Q2 EPS ($0.63) loss missed the est. loss ($0.49) amid higher operating expenses from media and sales expansion; though said shift from broad consumer marketing to targeted high-volume prescriber engagement supported neffy market share growth
• YSS -11%; as Q2 revs rose 10% y/y to $92.5M vs. est. $89.4M as increase was primarily driven by growth in York’s major government programs, but sees FY revs $375M-$405M, well below the consensus $557.6M; posted Q2 net loss (-$39.3M); Q2 Backlog stood at $592M, down 8% from $642.3M on March 31, and up 9% from the start of the year.