Mid-Morning Look: August 27, 2026

Mid-Morning Look

Thursday, August 27, 2026

U.S. stock markets are higher as heavily weighted technology stocks are leading (XLK +2.3%), but overall breadth is weak as ten of eleven S&P sectors are currently lower, led by declines in defensive related sectors such as Healthcare, Utilities and Consumer Staples as money rolls back into semis and software names behind strong earnings from NVDA, CRM, CRWD and OKTA overnight. Nvidia’s bullish outlook boosted tech shares, though caution ahead of Fed Chair Kevin Warsh’s Jackson Hole speech on Friday and uncertainty over the Strait of Hormuz checked appetite for risk. Nvidia’s revenue forecast exceeded expectations, sending its shares up 7% and boosted semis (SOX) and AI plays. Federal Reserve Bank of Kansas City President Jeffrey Schmid said the current setting of central bank rates is not providing restraint to the economy, suggesting he still favors raising rates to get inflation back to 2%. When it comes to rate policy “I don’t know what we’re restricting currently with the rate policy that we’re at today,” he said. Early strength in oil prices and treasury yields as gold slips and the dollar little changed ahead of Warsh Friday.

• Discount/Dollar stories: mixed reactions as DG rises after raised its annual comp sales forecast to range of 2.5%-2.9%, vs. prior forecast of 2.2%-2.7% after posting Q2 comp sales growth +3.5%; also raises FY26 EPS view to $7.80-$8.00 from $7.20-$7.45 and ups FY26 net sales growth view to 4%-4.3% from 3.7%-4.2%. DLTR shares fell as Q2 beat EPS/sales helped by tariff benefit and raises FY26 adj EPS view to $7.70-$8.05 from $6.70-$7.10 (est. $7.04) but only affirms FY26 annual net sales and comparable sales forecasts amid macroeconomic uncertainty weighing on consumer spending.
• Food & Beverage sector: HRL posted mixed results/guidance as adjusted EPS of $0.37 topped a Street estimate of $0.35 and management lifted the lower end of the FY26 EPS range. On the negative side, organic sales growth declined 2% and management lowered full-year targets. Pernod (PRNDY) said it now expects to achieve only the lower end of its long-term sales target through 2029; said Overweight expects sales growth at the lower end of its 3% to 6% target range through 2029; sales in the U.S. and China fell 14% and 19%, respectively, in the year ended June 30. CELH was downgraded to Hold from Buy at Deutsche Bank with $35 PT saying expectations are rising faster than evidence and says fundamental challenges have continued to mount.
• Power sector: BWXT was upgraded to Equal Weight at Wells Fargo ahead of its investor day Sept 29 where WELLS expects a multi-year forecast for MSD- HSD revenue & HSD+ EBITDA growth, roughly in line with consensus expectations. Piper noted it has been a tumultuous two weeks for the Power Services group as SEI has fallen 21% since 8/17/26 with LBRT -17%, PUMP -17%, KGS -9%, and AESI -6%, as a combination of Ai data center moratoriums and publicity around Equipment/permits have given investor pause. Ai data center moratoriums in Texas, Pennsylvania, and Michigan with additional States pushing back on development, have clearly indicated data Centers will be a political hot button issue for November midterms. Furthermore, publicity questioning power Generation Equipment performance and emission related permits has given investors pause on the Ai related trade. TE receives approval to develop data center at Giga Arctic Campus in Norway; expects 50 mw data center operational in 2027 with expansion potential; holds 50-year lease with extension options on giga arctic site; engaged in conversations with multiple parties to explore options.

• CRWD +17%; Q2 ARR rose 25% y/y, beating by $46M, the largest beat in several years per Keybanc, and raised FY ARR by $63M, on top of an already large raise in FQ1; Q2 $333M NNARR 51% YoY (>Q4’26 high watermark), and FY ARR/NNARR growth upped ~1pt/~6pts to 26%/34% above views.
• NVDA +7%; Q2 results solidly beat ($96.2B/$2.22 vs Street at $92.3B/$2.09). Datacenter upside on continued Blackwell momentum with strength across both Hyperscale customers (up 13% QoQ and 102% YoY) and guidance also well above consensus.
• OKTA +23%; delivered a strong Q2, with accelerating cRPO growth (14.1% Y/y cRPO growth that accelerated vs 12.2% last qtr and topped consensus at 10.8%), record non-Q4 bookings, and improving enterprise and new-product momentum; also raised FY27 guidance across revenue, operating Income, EPS, and free cash flow.
• TE +10%; after receives approval to develop data center at Giga Arctic Campus in Norway; expects 50 mw data center operational in 2027 with expansion potential; holds 50-year lease with extension options on giga arctic site; engaged in conversations with multiple parties to explore options.
• TENB +11%; on news it will replace LEG in the S&P SmallCap 600 effective prior to the opening of trading on Monday, August 31. S&P MidCap 400 constituent SGI is acquiring Leggett & Platt in a deal expected to be completed soon, pending final closing conditions.
• VEEV +19%; delivered a strong Q2 with total revs ~2.5% above consensus and R&D subscription revenue growth of 19% above consensus of 17%; also Q2 normalized billings came in 4.7% above consensus and raised its FY27 billings guide by 1.2% alongside revenue and adj. EBIT.

• CELH -4%; downgraded to Hold from Buy at Deutsche Bank with $35 PT saying expectations are rising faster than evidence and says fundamental challenges have continued to mount.
• CSIQ -2%; shares fell after quarterly results/guidance as reported a wider Q2 EPS loss (-$1.40) vs. est. loss (-$1.23); Q2 revenue $1.21B, tops consensus $1.14B but guides Q3 revs $1.3B-$1.5B.
• HPQ -7%; overall results mixed, with an EPS beat but concerning margin trends in PCs and Print as Bank America noted the outlook as challenged by rising memory costs, demand elasticity from higher pricing and FQ4 PS OM expected below FQ3.
• HRL -8%; posted mixed results/guidance as adjusted EPS of $0.37 topped a Street estimate of $0.35 and management lifted the lower end of the FY26 EPS range. On the negative side, organic sales growth declined 2% and management lowered full-year targets.
• MRNA -4%; after announces proposed private placement of $2.0B of convertible Senior notes
• PRNDY -6%; said it now expects to achieve only the lower end of its long-term sales target through 2029; said Overweight expects sales growth at the lower end of its 3% to 6% target range through 2029; sales in the U.S. and China fell 14% and 19%, respectively, in the year ended June 30
• WEN -12%; shares tumbled after Reuters reported Nelson Peltz’s Trian Fund Management has no plans to make a take-private bid for Wendy’s at this time https://tinyurl.com/yb68p6b7