Mid-Morning Look: July 07, 2026

Mid-Morning Look

Tuesday, July 07, 2026

U.S. stocks are lower with the tech heavy Nasdaq feeling the brunt of selling pressure, down over 1.4% led by a further pullback in semiconductor stocks (SOX) after the group led markets higher for most of 2026 (SOX up 71% YTD still, but down from best levels of up 100% just a few weeks back). Blockbuster results from Samsung Electronics overnight in Asia failed to lift the AI trade, while news that Chinese startup DeepSeek is developing its own AI chip in a push that could reduce its reliance on Nvidia and Huawei chips also did not help tech sentiment. Also in the memory space, SK Hynix is due to join the Nasdaq this week in a $28 billion listing, one of the world’s largest new share sales. Shares of MU, SNDK, WDC, STX and many others are down between 20%-30% from all-time highs just a few weeks ago, but still, many are up over 200% YTD. Oil prices also rose 2% on renewed Middle East tensions after reports of vessels attacked near strait of Hormuz, which is also raising Treasury yields. No Fed speakers today but attention will be on the FOMC minutes out tomorrow given the quickly changing expectations around the Fed’s path going forward. In data, the U.S. trade deficit widens in May, to $77.6 billion from April’s revised $54.6 billion. In a week relatively light on economic indicators, markets await Fed minutes tomorrow. The 10-year yield is at 4.513%, up from yesterday’s settle of 4.479%. The two-year rises to 4.139% from 4.124%.

• Aerospace: Wall Street initiated coverage of SPCX today after it was added to the Nasdaq 100 index last night as Nasdaq tweaked its rules to fast-track its inclusion because AI companies have become crucial to the broader market. Top rating and tgt went to Raymond James with a Strong Buy and $800 tgt, along Overweight/Buy ratings from Morgan Stanley ($300 tgt), Cantor ($246 tgt), Deutsche Bank ($255 tgt), JPM ($225 tgt), Macquarie ($250 tgt), Bank America ($235 tgt), Bernstein ($239 tgt), Needham ($200 tgt), Stifel ($190 tgt) and UBS ($210 tgt).
• Managed Care: Cantor with several price tgt changes in Q2 preview as CNC Raise PT to $75 from $60, CVS to $110 from $100, ELV to $450 from $400, HUM to $300 from $264) & HCA lowered to $525 from $588, as well as estimates for ACHC. Cantor prefers exposure to payors over providers into Q226 earnings season as management calls, proprietary checks (enrollment, volume survey, labor), & investor conversations have driven this view. Cantor’s payor picks are CNC .
• In Consumer Finance: BFH upgraded to Equal Weight from Underweight at Barclay’s (tgt to $104 from $70), citing better credit performance and loan growth heading into Q2 results, while the firm downgraded shares of SLM to Equal Weight (tgt to $26 from $30), heading into Q2 results, citing prolonged credit uncertainty. Mortgage Finance: Barclays downgraded PFSI to Equal Weight from Overweight (tgt to $93 from $107), citing a lower ROE outlook. The firm lowered its origination estimates and trimmed EPS estimates for the originators to reflect an elevated 30-year fixed-rate mortgage and a softer spring selling season. Continue to favor FAF, RKT, and UWMC

• CRM +2%; as software names seeing early strength amid rotation out of semiconductors with shares of ADBE, HUBS, MSFT, NOW, TEAM rising).
• CRNX +99%; as agreed to be acquired by VRTX for $85 per share in $10B deal. Vertex plans to finance the deal using cash on hand and debt, supported by $4.5B in committed Bridge financing.
• FISV +4%; after the WSJ reported big banks have held talks about a potential deal to acquire a network owned by the financial technology company that could allow the lenders to bypass federal debit-card fee caps https://tinyurl.com/55y2jjp8  
• FSLR ; was upgraded to Buy from Hold at Deutsche Bank with a $272 price target as remains one of the fundamentally strong business for investors looking for a US based panel production company along with a strong balance sheet (net cash of $2.1B as of Q2).
• PEP +3%; ahead of earnings later this week while the defensive food and consumer staples sector sees rotation into the group with CAG, CPB, GIS, KHC, MKC all up 2% or more.

• COMP -9%; as announced additional data from a second ongoing late-stage trial for its psychedelic therapy COMP360 against treatment-resistant depression.
• NVDA -2%; after Reuters reported Chinese startup DeepSeek is developing its own AI chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models.
• RIVN -12%; files to sell 75M shares of common stock; guides Q2 revs $1.55B-$1.65B for the quarter, with ests $1.46B and above the $1.3B reported y/y primarily due to an increase in vehicle deliveries…but expects the growth will be partially offset by a lower average selling prices.
• RXST -5%; announced a non-exclusive license agreement for the development + commercialization of post-operative light adjustable PCIOL technologies saying it will receive a $60M upfront payment and potentially an additional $140M in payments; also guides Q2 revs $32M-$34M vs. est. $32M.
• SPCX -5%; after addition to Nasdaq 100 and Wall Street initiates coverage with positive ratings (mostly Buy/Outperform rated).
• WULF -11%; along with weakness in HUT, NBIS, CRWV, CLSK, CIFR, IREN, RIOT as the Ai data center/infrastructure space continues downside momentum into a second week