Mid-Morning Look: July 09, 2026

Mid-Morning Look

Thursday, July 09, 2026

A strong start for U.S. markets overnight as the tech trade/AI names outperform early amid optimism for the space, while the software sector tumbles on further fears of AI impact. Software stocks were broadly lower initially after SBUX announced it is developing AI-powered in-house tools to replace software from MSFT and IBM (which is weighing on the whole software complex), but the sector has rebounded since. Consumer Staples, Energy, Communications are early decliners while Technology and Financials the early leaders. Stocks opened higher but have since pared gains with the Nasdaq falling over 200 points from its highs. Economic data was slightly weaker while oil reverses lower after jumping 5% Wednesday on renewed Iran/US Middle East tensions. Next notable focus (ahead of earnings next week), is the US listing of SK Hynix tomorrow in the U.S. in memory chip sector.

• June Existing Home Sales -2.4% to 4.09M annual rate vs May +3.7% (prev +3.2%); June inventory of homes for sale 1.56M units, 4.6 months’ worth; U.s June National median home price for existing homes at record high $440,600, +1.8% from June 2025.

• Transports: Citigroup upgraded KNX and SAIA to Buy and ODFL to Neutral following recent share pullbacks, citing Q2 trucking earnings on pace for some of the strongest year-over-year EPS gains in years on tighter capacity, higher truckload rates, and margin recovery, though the firm flags more modest upside in 2H26 relative to 1H.
• Containerboard & Packing sector: Citigroup named BALL, SON and CCK as top picks into Q2 earnings, citing solid underlying demand in beverage cans and containerboard, compelling valuation at 8.5x NTM EBITDA versus the 5-year average of 9.3x, and expectations that most producers will reiterate full-year guidance despite Q2 and 2026 estimates trimmed roughly 1% on higher recycled fiber and freight cost. PKG was downgraded at Wells Fargo noting the company has been a relative outperformer through the Middle East conflict – helped by a flight to quality – and now trades at a sizable premium vs. key peers.
• Software stocks were broadly lower initially after SBUX announced it is developing AI-powered in-house tools to replace software from MSFT and IBM including alternatives to a Microsoft inventory-tracking system and an IBM maintenance-management tool, with potential rollout by end of 2026 pending testing results. The news sunk shares of other software names NOW, CRM, ADBE etc. in reaction before the group posted a notable rebound and moved higher for many names). Separately, CRM was downgraded from Overweight to Sector Weight at Keybanc citing a lack of evidence that the Agentforce AI platform will offer future upside.

• ALHC +7%; shares rebound after falling -17% on Wednesday following a press article that highlighted a wrongful termination lawsuit by a former executive. Keybanc said this morning they believe the stock move was unwarranted and would use the weakness as a buying opportunity.
• ALNY +12%; and BBIO shares jump as well after failed heart disease drug trial for AZN (shares tumble) as both companies already have approved drugs for ATTR-C; AZN said Wainua did not meet the main goal of reducing cardiovascular deaths and recurring heart problems.
• CBRS +4%; announced a major expansion of its European infrastructure as will bring its first European data center capacity online by the end of 2026, with rapid build-out across France and the Nordics. The company plans to expand total capacity to 200 MW by the end of 2027.
• FBRX +36%; shares jumped after statistically significant FB102 benefit observed by day 64 and continued through week 24; said FB102-treated subjects continued improving through week 24 after completion of the 12-week treatment period.
• FCEL +5%; after announcing a collaboration with Siemens (SIEGY) to explore scalable fuel cell power solutions. Siemens will design and supply electrical balance of plant (EBOP) systems for fuel cell installations, supporting the rapid deployment of 100-plus MW commercial projects.
• INMD +4%; shares rise as Steel Partners, an investment firm and long-time InMode shareholder, offers to buy co for $16.75 per share in cash; offer values INMD at about $963M.
• LASR +27%; after awarded $627 million joint laser weapon system contract; initial award valued at $44 mln, program ceiling up to $627 mln.
• MARA +14%; has agreed to acquire a 1,200-acre powered land site in Texas, aiming to develop a digital infrastructure campus for high-performance computing and Bitcoin mining.
• MU +8%; announces plans ​to invest ​up ​to $3 billion to ‌strengthen ⁠the US ​semiconductor ​supply-chain ⁠ecosystem; also raises its planned US investment to over $250 billion through 2035, which it expects to create over 90,000 jobs.

• IBM -2%; after reports said Starbucks is introducing AI to reduce reliance on Microsoft and other firms; shares of several software companies (NOW, CRM, TEAM all falling in sympathy)
• IONS -20%; along with weakness in AZN after saying their phase iii trial for the heart drug Wainua (eplontersen) failed to meet its primary objective. The trial was testing the drug’s ability to reduce cardiovascular deaths and recurring heart issues in patients with a rare, fatal heart condition called transthyretin-mediated amyloid cardiomyopathy (ATTR-CM).
• META -2%; as plans to start manufacturing its in-house Iris AI chip in September and double compute capacity to 14GW in 2027, from 7GW in 2026. Memo shows long-term supply deals for memory, flash storage and fiber optics, with AI infra spend up to $145B this year, per Reuters.
• PEP -4%; posted mixed Q2 results as adj EPS of $2.20 per share fell short of the $2.21 a share expected while revs rose 6.4% y/y to $24.18B above the $23.95B while backed its full-year outlook for earnings and sales growth.
• PSKY -6%; as the company will not close its $110B acquisition of $WBD before July 22, the Oregon attorney general’s Office said on Wednesday, pushing out the timeline for the deal’s closure by an additional week.
• RXT -25%; shares tumbled after the company said it expects a reduction of $150M in revenue and $20M in EBITDA for full year 2026; now expects revenue to be between $2.45B and $2.55B (midpoint at $2.5B), versus the prior forecast range of $2.6B to $2.7B.