Mid-Morning Look: June 05, 2026

Mid-Morning Look

Friday, June 05, 2026

The good news…another blowout jobs report this morning for May, marking three straight months of payroll gains (with big upward revisions), along with the upside surprise in job openings earlier this week, tell us the labor market is on firmer footing. The bad news…given the big spike in jobs data, coupled with rising inflation data the last few months and stock markets surging every day for 10 weeks, US interest rate futures raise odds of December rate hike after jobs data to 63% vs 48% just before (vs the expected three rate cuts in 2026 before the year started). A big shift in interest rate expectations has thus far failed to dent stock market optimism amid the euphoric stock market buying on AI demand and investments…but investors are noticing today. Treasury yields are jumping as the two-yr U.S. Treasury yield last up 9.6 basis points at 4.147% (highest level since Feb 2025) and the yield on 10-yr U.S. Treasury notes increases, last up 5.5 basis points at 4.532% on rising expectations of Fed rate hikes (not cuts) to tame inflation, while the economy is booming. Markets also awaiting a barrage of high profile IPOs in coming months, with SpaceX (SPCX) 555.5M share IPO expected to price at $135 next Thursday. Meanwhile crypto markets are tumbling, more than cut in half from all-time highs with Bitcoin in lows $60K range and Ethereum below $1,700. The Dow Jones Industrial Average came into today at record highs and the S&P 500 trying to make it a 10^th straight week of gains (would be longest streak since 1985), but early weakness in tech stocks weighing on sentiment along with rising rate hike fears hitting small cap stocks and precious metal prices with big declines in gold and silver. The Nasdaq now on track for 3 down days after rising 9 straight prior. Will the dip be bought yet again? Early leaders Consumer Staples, Healthcare again and Utilities.

• BBCP +43%; on strong results as Q2 revs $106.8Mm (+13.7% YoY beat $96.7Mm est.); gross profit $41.3Mm (+14% YoY vs. $36.2Mm), Q2 EBIT $12.1Mm (+46% YoY vs. $8.3Mm) vs est $9.099Mm; raises guides FY26 revs $410Mm–$425Mm from prior $390Mm–$410Mm).
• CMG +5%; upgraded to Overweight from Neutral at JPMorgan but lower tgt to $35 from $38, after meeting with management and noting shares are down 43% since May 2025 and at levels first hit in 2021, sees much more risk-weighted upside than downside.
• COO +7%; EPS beat of $1.21 versus Street $1.10 while Q2 revenue/EPS upside was tempered by management lowering FY26 CVI guidance—a function of a softer APAC market and some company specific challenges—and FY26 EPS guidance was left unchanged.
• GIII +8%; raises its annual EPS forecast to $2.15-$2.25 vs prior $2.00-$2.10 despite posting Q1 EPS loss (-$0.21) v. est. loss (-$0.30) on better revs and maintains annual net sales forecast of $2.71B and notes loss of about $470M of sales from Calvin Klein and Tommy Hilfiger products
• TTAN +7%; reported beat and-raise Q1, with GTV growing 23% Y/Y), rev increasing 25% Y/Y, and non-GAAP Outperform margin surpassing 15% all topping consensus while Enterprise traction also remained strong, w/customers above $100K in annualized billings representing over 60% of billings.

• GWRE -7%; delivered solid Q3 results but mixed FY26 guidance, with FY26 ARR coming in behind consensus; modest Q3 ARR miss (within guide but below Street) and maintained full year ARR outlook; Q3 ARR of $1.147B (consensus $1.148), up 19% Y/y (18% in cc) vs 22% q/q (21% in cc).
• LULU -12%; after mostly in-line Q1 results (GM missed slightly on higher markdowns), while co saw conversion drop off into April; per management, on negative Social Media commentary around the brand; guides FY26 revenue to be flat to decline 1%, down from its prior forecast of a 2% to 4% increase; sees year EPS $10.95-$11.15 vs. est. $12.27.
• QNT -5%; well below prior day IPO deal price of $60
• ZUMZ -22%; after results as Q1 EPS loss (-$0.82) vs. est. loss (-$0.87); Q1 sales $193.3M vs. est. $191M; sees Q2 outlook for sales of $210M-$215M vs. est. $218.4M; Q1 operating loss of $15.2M