Mid-Morning Look: August 19, 2026

Mid-Morning Look

Wednesday, August 19, 2026

U.S. stocks bouncing notably this morning, looking to snap their 3 day losing streak as a spike in bonds (and subsequent pullback in Treasury yields) boosted markets after headlines that the U.S. Treasury increasing size of liquidity support buyback operations for longer-dated nominal coupon securities. The 30-yr yield went down about -9bps to 5.20% (off 5.337% Tuesday, its highest since 2007) and the 10-yr yield down -6bps to 4.64%. The pullback in yields boosted precious metal prices as gold and silver jump. As yields break out, the Treasury and Fed again used their various tools to suppress them and send the dollar lower while risk assets go higher. Healthcare (XLV) sector rises +3.7% to new all-time highs $176 along with Biotech (XBI) after MRK/MRNA data boosts industry. The US dollar slides as the euro hits around 1.1665 extending its latest run on the Treasury news. Technology (XLK) one of the few weak spots in the S&P 500 today, down -1.6%, while nearly every other sector is higher, as Wall Street has been rotating out of the AI builders/infrastructure and into the AI users.

There were lots of big individual stock stories today including: 1) retailers LOW, TGT, TJX all reporting earnings (results mostly beat, guidance mixed – more details below); 2) massive news in biotech space as MRNA/MRK shares surge after the two companies said a customized vaccine kept patients cancer-free for longer than standard treatments after melanoma skin cancers had been cut out (boosting the biotech/healthcare space); 3) MRVL jumps in semi space on GOOGL stake headlines while SKHY rises on buyback headlines as semis look to rebound after sliding on Tuesday; 4) EL shares jump on earnings in consumer staples space.

In trade news, President Trump announced a three-day pause on the planned 50% tariffs against Canada, citing progress toward a deal. The U.S.-Canada agreement is expected to include market access for U.S. goods, economic-security commitments and digital-trade alignment. Canada said implementation of the tariffs has been postponed through August 21 pending finalization of the agreement.

• MRNA +131%; as the company and MRK reveal their personalized mRNA cancer vaccine succeeded in Phase 3 slowing melanoma recurrence and spread with Keytruda; trial met its primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival.
• MRVL +7%; after saying it issued GOOGL a warrant to buy a stake worth about $12.18 billion as part of a deal to help develop custom chips for the search giant (shares of AVGO declined on the headlines)
• NSC +3%; shares jumped as the U.S. Surface Transportation Board said it has resumed consideration of UNP’s proposed merger with the railroad, while stressing that the move does not signal approval of the $85-billion deal.
• PPC +13%; shares jumped after majority owner JBS made a new offer to buy the remaining stake it doesn’t already own and delist the co. Brazil’s JBS, which owns ~82% proposed a stock-for-stock deal, a different approach from a failed 2021 all-cash bid that was withdrawn after price issues.
• TEM +14%; shares jumped in sympathy with the MRK news primarily as a Precision Oncology/AI Diagnostics and data play. Moderna utilizes Tempus AI’s genetic and multimodal data platform primarily through an ongoing, expanded partnership with Tempus’ clinical partner, Personalis (PSNL
• TGT +6%; posted Q2 comp sales growth of 3.8% vs. estimates of 2.4%, with net sales of $26.54B beating the $26.14B consensus and adjusted EPS of $4.11 crushing the $2.29 estimate; raises FY EPS view to $9.90-$10.90 from prior $7.5-$8.50 and sees net sales growth around 5% vs. prior range of 4%.
• TOL +6%; as Q3 results beat, but partially mixed, though housing/mortgage names getting a boost as the Treasury intervenes overnight to lower bond yields; TOL reported a 3Q EPS beat last night, driven by a 16% HB EBIT margin and JV income, while Q3 revs fell -8% y/y to $2.65B vs. est. $2.62B.
• VIK +2%; posted Q2 revs rising 16.5% y/y to $2.19B beating the $2.14B estimate as adj Ebitda rose 18.2% y/y saying revenue growth was mainly driven by increased Capacity Passenger Cruise Days from fleet growth; advance bookings for 2026 season are $6.39B up 13% y/y same point.

• CIFR -6%; AI infrastructure sector broadly lower (WULF, IREN, HUT, HIVE, RIOT and others), getting hit as Tuesday’s announcement in Pennsylvania that it is looking to place higher requirements on data center developers could slow project timelines (follows Texas in tightening Data Center rules).
• LZB -13%; shares tumble after Q1 written same-store sales inflected positive in the quarter (to +3%), but sales and EPS were below expectations given ongoing challenges in the industry; also issued Q2 sales and implied EPS guidance below consensus, pressured by continued investments
• MRCY -9%; posted quarterly results as Q4 adj. EPS $0.37 vs. est. $0.38; revenue $289.8Mm vs. est. $266.1Mm; adj. EBITDA $49.0Mm vs. est. $45.8Mm, backlog over $1.9B.
• NBIS -13%; as announces proposed private offering of $4.50B of convertible Senior notes saying proceeds to fund business growth, data center expansion, Ai Cloud development.
• TJX -1%; reported Q2 adj EPS of $1.22 beats by $0.03 and revenue rose 5.4% y/y to $15.18B, slightly beating by $20M and raises FY27 pretax profit margin view (to 12%-12.1%) and diluted earnings per share guidance; guided Q3 EPS $1.30-$1.32 vs. est. $1.35 while reaffirms comp sales view of +3%-4%.
• WYFI -22%; as the company unveiled a proposed private placement of $250M Convertible Senior Notes due 2032 under Rule 144A. Initial purchasers may buy up to an additional $37.5M of notes within 13 days of issuance.