Mid-Morning Look: July 28, 2026

Mid-Morning Look

Tuesday, July 28, 2026

U.S. stocks are mixed again as the Dow Jones Industrials benefit from large cap sector diversification, while AAPL leads higher ahead of earnings eclipsing $5 trillion market cap, but the tech heavy Nasdaq corrects further as technology (XLK) tumbles -3.8% behind another drop in the SOX -6.4%. The tech sell off has been aggressive in July, with a 10% correction in the Nasdaq 100 (QQQ), while semis (SOX) fall over -23% this month. The S&P 500 is down slightly on the day due to the tech weakness, but actually nine of eleven sectors are higher including a 3.7% jump in Consumer Staples (XLP), helped by Coke (KO) earnings, a 3% jump in healthcare (XLV) and a 2.2% jump for materials (XLB) after chemicals and material names rise.

Global markets were mixed as investors digest a sharp technology selloff across Asia, improving Middle East diplomacy, and a busy slate of U.S. economic data ahead of Wednesday’s FOMC decision. Falling crude prices are easing inflation concerns, while this week’s megacap tech earnings remain the primary catalyst for risk sentiment. The dominant premarket theme is a violent rotation out of technology, with MU, SNDK, WDC, SKHY retreating as memory and semiconductor names bear the brunt of the overnight Asia tech selloff. The Nikkei Index tumbled -2,566 points or 3.95% to 62,364, while the KOSPI index dropped as much as -10.9%, to the lowest level since mid-April after triggering its 9th circuit breaker of 2026 dragged down by a broad retreat in tech stocks. Chip names and other AI-related firms are extending their selloff as worries about China’s progress in advanced chipmaking weighs down sentiment. This is also exasperating concerns over the sustainability of the AI spending boom.

WTI is trending lower this morning in thin early trading to $80.78, and Brent is down 1.8% this morning as well.- The Times of Israel is reporting that mediators believed they were close to a breakthrough that would revive the memorandum of understanding signed by the U.S. and Iran last month, according to an Arab official and a second source familiar with the matter. However, the intermediaries were awaiting a final decision from Trump after his meeting with Netanyahu on Tuesday. Bloomberg is reporting that negotiators from Iran and Oman are trying to reach an agreement to restart shipping through the Strait of Hormuz.

• Richmond Fed composite manufacturing index +5 in July vs +4 in June and Richmond Fed manufacturing shipments index +8 in July vs +4 in June.

• Transport sector: UPS traded higher initially on earnings and guidance beats, but shares reversed after comments on conference call about tariff impacts and volume declines in some parts amid declines in Europe exports; RXO was downgraded to Sell from Hold at TD Cowen as sees the Montgomery Supreme Court decision and recent CHRW verdict as creating a tougher liability backdrop for the large truckload brokers. RXO is among the most exposed given its long-haul mix and leverage.
• Food & Beverages: KO beat on both the top and bottom line as Q2 EPS as global unit case volume +5% and raised FY26 organic revenue and EPS growth guidance; expects organic revenue growth of about 5%, compared with its prior target of 4%-5% growth and EPS growth of 9%-10% vs. prior target of 8%-9%. Overall group PEP, KHC, KDP, MDLZ, etc. saw strength helped by KO results as well as general rotation into defensive sectors as the selloff in technology accelerates.
• Utility sector: DTE posted Q2 profit above estimates and said it has invested more than $2.6 billion in its utilities during the first half of the year to strengthen its electric and natural gas infrastructure; CNP Q2 adj EPS $0.40 vs. est. $0.37; increased 10-year capital investment plan by $1.2B to $66.7B; reiterated full-year 2026 non-GAAP EPS guidance; CMS Q2 EPS beat though net income fell -40% y/y and expenses also climbed over 2% y/y; XYL posted Q2 beat and raises its annual profit forecast to $5.55 to $5.70 per share, compared with its previous forecast of $5.35 to $5.60 (est. $56.54).

• BA +3%; reported a larger-than-expected quarterly loss after taking a $280M charge on its Air Force One replacement program but generated positive free cash flow (FCF of $631M, vs. negative -$200M y/y; core EPS loss per share of (-$0.76) worse than ests (-$0.30) though narrower than the (-$1.24) core loss y/y.
• IP +5%; was upgraded from Neutral to Overweight at JP Morgan saying valuation after incorporating a further $50/t suggests ~43% upside for IP versus today’s share price. Even if JPMC was to assume no further cost-out or 80-20 improvements it could still justify upside of ~34%.
• IQV +14%; raises FY2026 adj EPS forecast to $12.80-$13.00 from prior forecast of $12.65-$12.95as midpoint tops ests $12.90; posted Q2 EPS and rev beat $4.37B vs. est. $4.3B.
• KO +6%; beat on both the top and bottom line as Q2 EPS as global unit case volume +5% and raised FY26 organic revenue and EPS growth guidance; expects organic revenue growth of about 5%, compared with its prior target of 4%-5% growth and EPS growth of 9%-10% vs. prior target of 8%-9%.
• NUE +7%; posted Q2 adjusted EPS of $4.84 vs the Street’s $4.46, and the guidance range of $4.50-$4.60 provided in mid-June as Q2 featured a strong earnings performance in Steel Mills, which featured a volume uplift from the record Q126 and benefited from ~$130M in cash refunds.
• SHW +6%; shares rise as beats Q2 profit estimates posting $3.70 EPS vs est. $3.52 and net sales rise 7.5% to $6.79B from $6.31B y/y; Paint Stores Group sales grew by 5%; raises FY EPS view to $11.80-$12.20, compared with its prior forecast of $11.50-$11.90.

• GLW -16%; Q2 core sales rose 17%, beating analyst expectations ad core EPS for Q2 increased 30%, also beating analyst expectations but sales in its optical segment rose 32% to $2.07B, down from 36% growth q/q and below the 81% jump y/y; guides Q3 core sales and EPS to grow double digits y/y.
• NVTS -14%; posts Q2 revenue of $10.5M, compared to $14.5M y/y; reports Q2 net loss of (-$228.22M) vs. loss of (-$49.08M) y/y saying wider loss ties to a non-cash charge tied to its 2022 acquisition of GeneSiC; NVTS was sued by Japanese chipmaker Renesas last week over alleged AI chip trade-secret theft.
• REPL -18%; shares fell after FDA staff says the clinical trial conducted for Replimune’s therapy, RP1, did not provide substantial evidence that it works when combined with BMY’s nivolumab in advanced melanoma; says the trial could not determine whether RP1, rather than nivolumab alone, drove the observed benefit.
• RXO -5%; was downgraded to Sell from Hold at TD Cowen as sees the Montgomery Supreme Court decision and recent CHRW verdict as creating a tougher liability backdrop for the large truckload brokers. RXO is among the most exposed given its long-haul mix and leverage