Mid-Morning Look: June 04, 2026

Mid-Morning Look

Thursday, June 04, 2026

Rotation, rotation, rotation…U.S. stocks are mixed with the Dow Jones Industrial Average rising over 700 points along with gains in Smallcap Russell 2000 and little changed S&P 500, while it’s the Nasdaq that weighs early given a sharp pullback in semiconductors (SOX) from all-time highs following Broadcom (AVGO) results and guidance last night. Rotation into other sectors as tech sees a pullback off recent record highs, back into Mag 7 large caps (AAPL, AMZN, GOOGL, META, MSFT) as well as beaten up sectors like financials, healthcare and defensive sectors. Energy sector falls given a decline in oil prices after a report that President Trump is reluctant to resume full-scare war with Iran despite recent clashes, while Israel and Lebanon said they had agreed to a cessation of hostilities contingent on Hezbollah withdrawing its fighters from South Lebanon and halting its attacks on Israel. Crypto assets tumbled overnight before paring losses as Bitcoin hit lows just above $60,000 (4 month lows) as money coming out of sector ahead of big IPOs in coming days with SpaceX (SPCX) launches IPO of 555.56M Class A shares as IPO price expected to be $135 per share and IPO has overallotment option of 83.3 million shares. Today, HON’s Quantinuum (QNT) 28M share IPO priced at $60.00 after the deal size was increased to 28M shares from 26.5M and priced above $53.00-$55.00 target range. Nasdaq down only -0.75% despite the drop in semi shares as the large cap tech and software see strength. @bespokeinvest noted on X, “The S&P 500 is down fractionally, but the advance/decline line is on pace for its best reading (+297) in nearly two months.”

Oil prices slipped (but remain elevated) after in a joint statement with the U.S. on Wednesday, Israel and Lebanon said they had agreed to a cessation of hostilities contingent on Hezbollah withdrawing its fighters from South Lebanon and halting its attacks on Israel. The ceasefire is contingent on a complete cessation of Hezbollah fire and the evacuation of all Hezbollah operatives from the south Litani sector,” said the statement. Separately, last night, the Republican-led House voted 215-208 to halt the US war with Iran as four Republicans joined Democrats. Recent days have brought contradictory messages regarding the U.S.-Iran peace process while they traded a new round of air strikes.

• Weekly Jobless Claims climbed to 225,000, the highest since February and above consensus 213,000 and prior week reading of 212,000 as the 4 -week moving avg climbed to 214,750 from 208,250 prior week; continued claims fell to 1.777M from 1.785M prior and vs. consensus 1.780M.

• Metals & Mining: in steel sector, BMO Capital raised tgts on STLD to $296 from $240 and NUE to $285 from $250 saying past price increases are expected to drive steady earnings growth for sheet steel producers. The firm noted that current sheet prices will stay elevated for longer, with stronger momentum. Both Steel Dynamics and Nucor posted a rise in first-quarter profit in April, helped by higher steel prices resulting from tighter supply due to mill outages and imports falling to multi-year lows. Wells Fargo also raising tgts while downgraded CMC to Equal  Weight from Overweight as views the stock’s valuation as full amid excess rebar supply concerns which faces unprecedented new domestic supply from existing and new players. Wells raised tgts on CLF to $14 from $9, NUE to $292 from $244, RS to $376 from $343 and STLD to $293 from $235, expecting further strength until October. The firm said unusually lean service center inventories mean mills will need to restock even when Q3 demand softens seasonally and thinks prices may correct in Q4 as supply catches up with demand.
• AI Sector: AI Q4 results topped Street estimates (EPS loss (-$0.33) vs. est. loss (-$0.37); Q4 revenue $51.6M vs. est. $50.2M; sees Q1 revenue $50M-$54M, vs. consensus $51.7M) , but Bank America noted lower gross margins (down 32pts Y/y in FQ4) is concerning, even if growth can reaccelerate. IBM and Google Cloud announce strategic partnership to scale AI with human expertise and AI powered delivery. AMZN announced a €10B investment in its European fulfillment network and introduced an upgraded AI-powered Proteus warehouse robot. The new Proteus can respond to conversational prompts, prioritize tasks, plan routes, and move autonomously.

• BX +3%; along with a bounce in private credit stocks (ARES, APO, CG, OWL, KKR) after Partners Group shares rebound slightly after saying it would largely meet investors’ redemption requests for May at its largest private equity fund. Partners Group said its main U.S. fund, Partners Group Private Equity, which manages around $17B, received tenders in May for around 6% of the fund’s value.
• MDT +5%; was upgraded to Buy at BTIG with $90 tgt saying the company has demonstrated consistent MSD organic growth the past several quarters, and the trajectory is improving. Also noted underlying organic revenue growth is structurally higher than in the past and with combined growing new product contributions, reasonable FY1H27 comps, and an FYQ426 print that will force the Street higher, sees an attractive top-line set-up.
• PINS +5%; after announces $4B Cloud services commitment with AWS through 2031.
• TTC +3%; raised its FYEPS view to $4.50-$4.62 from prior $4.40-$4.60 and boosted its year sales view to rise 4%-6.5% from prior 3%-6.5% growth view following a Q2 beat.
• UNH +5%; after being upgraded to Buy from Neutral at Bank America and raise tgt to $450 from $420 as improving Medical cost trends and supportive near term data points set up a favorable Q2 earnings setup and attractive risk/reward. If utilization trends continue to moderate, UNH should lead a broader MCO rally.

• AVGO -14%; posted in-line results but better guidance driven primarily by upside in Infrastructure Software, but shares tumbled after guiding Q3 semiconductor revenue from AI $16B below ests $17.2B and at the same time did not raise its AI semiconductor sales forecast for 2026.
• CRWD -7%; despite strong results and positive analyst commentary: delivered strong Q1 results, exceeding consensus on ARR, EPS and free cash flow, with NNARR of $256M (+32% y/y) modestly ahead of consensus of $253M; while top-line beat was lighter than recent quarters, mgmt paired it with a substantial guidance raise.
• FIVE -10%; said it sees Q2 comparable sales rising 7%-9%, slowing from 12.4% a year earlier and 22.7% in Q1 as Jefferies said the outlook implies a sequential deceleration on a two-year stack, suggesting growth has peaked despite continued earnings upside; beat Q1 ests and raised annual forecast (sees FY sales $5.4-5.48B vs est $5.36B).
• NTSK -19%; as NNARR beat was only in line with investor expectations, as roughly half the sales force has yet to reach full productivity and mgmt raised the revenue midpoint by more than the Q1 beat…but did not generate enough ARR in the April quarter to alleviate investor concerns and FCF and NRR were disappointing.
• PVH -27%; downgraded to In-line from Outperform at Evercore said the Q1 beat was “low quality update”, which leaves risk of further negative estimate revisions in 2H’26 and PVH’s trends in EMEA worsened significantly than expected in April (taking the FY EMEA rev outlook to down -MSD% from up slightly prior).
• SNBR -70%; shares tumbled after the Wall Street Journal reported that the firm is preparing to file for Chapter 11 bankruptcy, citing people familiar with the matter. SNBR grapples with high debt as well as weakening performance and plans to use bankruptcy process to reorganize while keeping business intact.
• WOOF -15%; shares fell after posting Q1 EPS loss (-$0.05) vs est $0.02, adj EBITDA $97.36Mm vs est $92.23Mm on revs $1.5B vs est $1.489B; sees Q2 sales about +0.3% vs est $0.48% and adj EBITDA $110-112Mm vs est $116.04Mm and FY adj EBITDA $415-430Mm vs est $424.53Mm.