Mid-Morning Look: August 25, 2026

Mid-Morning Look

Tuesday, August 25, 2026

U.S. stocks were solidly higher overnight as a rally/rebound in key technology stocks helped boost major averages, but stocks have been paring gains on the open, led by declines in consumer staples and discretionary behind a weaker outlook and earnings results from Dicks Sporting Goods (DKS) as shares tumble -25% and drag other retailers lower. Semiconductors (SOX) rebound as NVDA rises for the first time in 8 days ahead of earnings tomorrow night, along with the rest of the group while software falls/optical rises. Oil prices fell more than 3% to a one-week low as traders shrugged off the latest U.S. sanctions campaign against Iran, viewing economic pressure as posing less risk to oil supplies than a military escalation. The lower oil has Treasury yields lower. Bitcoin hit highs above $81,000 as the rally continues, though is off its best levels. Boston Fed President Susan Collins said today the Fed will need to raise interest rates soon unless coming data show a continued decline in inflation that remains too high and which has become a “pervasive” concern for businesses and households. Stanley Druckenmiller criticized Treasury Secretary Scott Bessent’s plan to buy long-term Treasuries to lower yields, calling it a “mistake.” He argues rising borrowing costs reflect deeper problems: persistent inflation, widening deficits and $40 trillion in National debt. Druckenmiller warned that suppressing long-term yields only delays necessary fiscal reforms, calling the Treasury yield America’s key remaining fiscal disciplinarian.

• US June home prices in 20 metro areas +0.2% seasonally adj (consensus +0.1%) vs +0.2% in May (previous +0.2%) – S&P Cotality Case-Shiller reported. US June 20-metro area home prices non-adjusted +0.4% vs +0.9% in May (previous +0.9%). US June 20-metro area home prices +2.1% (consensus +1.7%) from year ago vs +1.6% in May (previous +1.6%).
• Richmond Fed composite manufacturing index +4 in Aug vs +5 in July while Richmond Fed manufacturing shipments index +11 in Aug vs +8 in July.

• Payments sector: FOUR was upgraded to Overweight at Wells Fargo (tgt to $59 from $55) as sees an improved share setup post the Q2 report. The firm also downgraded FIS to Equal Weight from Overweight (tgt cut to $46 from $58) saying the company’s recent execution challenges in capital markets raise questions about its multi-year growth potential, and sees FIS’s banking growth decelerating in the second half of 2026 against tougher compares, creating a lack of near-term catalysts for the shares.
• Sporting goods Retail: DKS cut its full-year sales forecast to $21.9B-$22.2B, compared with its earlier forecast of $22.1B-$22.4B, and cuts FY26 adjusted EPS view to $11.00-$12.00 from $13.50-$14.50; said taking a more cautious view of balance of year (follows Q2 top/bottom line miss). Results weighed on NKE as DKS cited weakness in Foot Locker segment, but also hitting broad retail space.

• KURA +7%; Chief Executive Officer, Chairman and President Troy Wilson bought 100,000 shares worth $1.2M on August 24. The purchase price was $12.4 per SEC filing.
• MRNA +10%; picks up steam after last weak cancer vaccine data sent shares soaring.
• NVDA +2%; rebounds ahead of earnings tomorrow night, trying to snap its 7 day losing streak.
• SMCI +7%; in broad bounce back for semiconductors (MRVL, and optical names CIEN, LITE, etc.)

• APA -2%; falling with a decline in oil prices weighing on COP, CVX, XOM and other oil stocks.
• DKS -21%; cut its full-year sales forecast to $21.9B-$22.2B, compared with its earlier forecast of $22.1B-$22.4B, and cuts FY26 adjusted EPS view to $11.00-$12.00 from $13.50-$14.50; said taking a more cautious view of balance of year (follows Q2 top/bottom line miss).
• NKE -3%; weighed down by DKS results which cited soft results from key vendor Footlocker for its lowered outlook and commentary.