Mid-Morning Look: July 27, 2026

Mid-Morning Look

Monday, July 27, 2026

U.S. stock markets off to a good start this week after falling last week, with Smallcaps rebounding along with the S&P 500 as oil prices tumble, easing inflationary pressures for the time being. The U.S. and Iran paused fighting over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz. The PHLX Semi Index (SOX) pulling back further after last week underperformance, down -2.35% around 11,500 as semis an early drag on tech/Nasdaq. Semi equipment names being led lower by ASML after a report said a state-backed Chinese firm has begun mass-producing domestic DUV lithography machines. Communications (XLC) Discretionary (XLY) and Consumer Staples (XLP) early leaders while Energy (XLE) and technology (XLK) lagging.

Note the 10-yr treasury yield hit a new 52-week high last week and 30-yr mortgage rates pushing back towards 7%, which remains a concerns for broader markets. The week doesn’t really start until 2:00 PM et on Wednesday when the FOMC holds its interest rate policy meeting (low chance of rate hike as generally expected to hold rates). Then earnings from META, MSFT Wednesday night, core PCE inflation and 2Q GDP print on Thursday morning at 8:30 am et, and then AAPL, AMZN earnings on Thursday night to round out the week (where 1/3 of the SPX are expected to report). The recent spike in oil prices has made the July Fed decision a closer call in recent days, but markets still expecting the FOMC to hold rates steady. In trade news, China said the U.S. agreed during trade talks to cap replacement tariffs on Chinese goods at 20%. Current tariffs stand at 12.5%, leaving room for further increases.

• Quantum compute: QBTS shares rose after AT signed an agreement to expand use of the company’s quantum computing technology across its network operations. AT&T plans to deploy D-Wave’s quantum tools across network operations, including outage response, routing and traffic management; RGTI expands collaboration with HPE and Pittsburgh supercomputing center to build new hybrid quantum-classical supercomputer. In research, Benchmark reinstated Buy on IONQ and $60 PT, QBTS Buy and $30 PT and RGTI Buy and $25 PT saying they are bullish as sees the legitimacy of the technology further building on the recent momentum E.G., fault tolerance required to achieve Universal Quantum Advantage.
• Oil & Gas sector: shares of E&P, oil service and equipment and majors all pulled back after the XLE jumped 3.3% last week on rising oil prices. The pullback in oil prices overnight weighed on the complex. EXE agreed to acquire natural gas and power marketer Twin Eagle Holdings from Five Point Infrastructure for $1.25B. BKR shares jumped as the oil service company posted a bigger Q2 beat and smaller drop in revs y/y while raises full-year IET order guidance and increasing Horizon 2 IET orders outlook to over $45B (followed better results from rival SLB last Friday).

• DAL +2%; airline sector rallied as oil prices tumbled, lifting the group; also, the WSJ reported UAL had approached DAL last year about a merger that would have combined the two most valuable U.S. carriers, according to people familiar with the matter, the WSJ reported. https://tinyurl.com/f2mh3zr3
• FBRX +39%; after agreed to be acquired by immunology company argenx (ARGX) for about $2.2 billion. Argenx is paying $77 a share in cash for Forte, a roughly 41% premium to Friday’s closing price of $54.78.
• GM +2%; was upgraded to buy from hold at Jefferies on confidence that 2027 will further strengthen the automaker’s position within the US profit oligopoly; said the investment case is well understood but continues to surprise, including strategic options for cash use beyond buy-backs
• QBTS +9%; after AT signed an agreement to expand use of the company’s quantum computing technology across its network operations. AT&T plans to deploy D-Wave’s quantum tools across network operations, including outage response, routing and traffic management
• RKLB +4%; as secured its largest launch contract to date—a $266M multi-launch award from the U.S. Space Force. The contract, awarded under the U.S. Space Force Space Systems Command’s Rocket Systems Launch Program, covers 12 suborbital launches, with an option for up to six additional missions.
• SRPT +5%; as appoints former ABBV executive Michael Severino, M.D., as Chief Executive Officer (CEO) as Doug Ingram to retire and serve as advisor until end of 2026.

• CAPR -65%; after saying FDA staff reviewers raised concerns about whether its cell therapy, deramiocel, has sufficient evidence of effectiveness for treating cardiomyopathy in Duchenne muscular dystrophy. The FDA last year declined to approve the muscle disorder drug, citing lack of efficacy data.
• CBRL -5%; after saying CEO Julie Masino is stepping down, ending a roughly three-year tenure while David Deno, the former CEO of Outback Steakhouse owner Bloomin’ Brands will take over.
• LEGN -12%; after saying Ying Huang has stepped down as chief executive officer and as a member of the board of directors, effective as of July 24, 2026.
• MPLT 62%; said phase 2 zephyr trial of ml-007c-ma meets primary endpoint in schizophrenia, but Adam Feuerstein of STAT news noted “Phase 2 results in schizophrenia appear to have fallen short of the “better Cobenfy” Bar. 4.5 point relative improvement on PANSS” (vs. expectations of HSD range)