Mid-Morning Look: June 09, 2026

Mid-Morning Look

Tuesday, June 09, 2026

U.S. stocks opened strong, as the S&P 500 and Nasdaq set to recover more ground after Friday’s massive selloff as oil prices and bond yields declined, but markets quickly pared gains. Smallcaps, however, showing early strength with Wall Street showing little concern ahead of tomorrows consumer price index (CPI) inflation report. US oil prices extend losses and fall below $88/barrel as President Trump continues to hint that a US-Iran deal is coming. Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from U.S. President Trump, though both sides warned they could resume hostilities. Tech started the pullback in markets as semis went from leaders to laggards along with weakness in energy though REITs, Financials and Consumer Discretionary led. Wall Street awaits CPI and PPI inflation data the next two days, ORCL earnings tomorrow night, ECB central bank meeting this week and the highly anticipated SpaceX (SPCX) IPO on Thursday night. Little chop early as early spike fades, will it hold?

• Existing Home Sales for May rose +3.2% to 4.17M unit rate vs April +0.7% 4.04M (prev 4.02M); May inventory of homes for sale 1.55M units, 4.5 months’ worth and the May National median home price for existing homes $429,300, +1.3% from May 2025
• April wholesale inventories revised to +0.6% (consensus +0.5%) from +0.5%; U.S. April wholesale sales +2.0% (consensus +2.4%); U.S. April wholesale sales +2.0% (consensus +2.4%) vs March +3.0% (prev +2.8%); U.S. April stock/sales ratio 1.19 months’ worth vs March 1.21 months

• In Homebuilders: KBW upgraded TOL to Outperform with $161 tgt and downgraded LEN to Underperform and cut tgt to $86 from $97 saying that in a challenging, K-shaped housing market, homebuilders levered to the entry-level consumer face earnings risk, while those exposed to the affluent, move-up, and active adult segments are better positioned to defend margins.
• Insurance: AJG was upgraded to Buy at UBS given greater upside from AssuredPartners synergies and Ai-driven cost savings, which it believes are underestimated by consensus. UBS is above consensus on margins by 70bps through 2026-28E, reflecting synergies, operating leverage, and Ai productivity gains. PRU was downgraded to Hold from Buy at Argus noting the company’s ongoing Japan issues, citing its April announcement that it would extend the suspension of new sales in Japan by an additional 180 days while extending the prior announcement of a 90-day suspension in February.

• ASO +7%; Q1 revs $1.44B in-line with estimates while raised low end of full-year guidance after Q1 performance; boosts FY26 adjusted EPS view to $6.40-$6.80 from $6.10-$6.60 vs. consensus $6.29.
• CECO +9%; after raising FY26 revenue forecast following acquisition of Thermon Group; now sees FY26 revs between $1.28B-$1.38B, up about 20% at midpoint of range vs. ests $968M noting the acquisition will generate $40M or more in cost synergies.
• DKNG +10%; shares surged after Morgan Stanley noted DKNG disclosed May annualized predictions contract volumes of ~$3.1B, +34% sequentially. Combined April-May volumes of $451M is 86% of Morgan’s 2Q estimate & June should be even stronger with the World Cup and incremental marketing.
• FCEL +22%; was upgraded to Buy from Hold at Canaccord and raised tgt to $30 from $12 citing the company’s potential opportunity over the coming years in the data center market for the upgrade.
• NUVL +38%; shares jump after agreeing to be acquired by GSK for $10.6B. GSK is making a tender offer for Nuvalent at $124 a share in cash, a 40% premium to yesterday’s close. The biotech has two experimental lung-cancer drugs in late development, zidesamtinib and neladalkib.
• PAYO +22%; shares spiked after Reuters reported this morning that Nuvei is in advanced talks to acquire the cross border payments company.
• SIRI +4%; was selected for inclusion in the S&P MidCap 400 index, replacing MASI.
• SJM +10%; Q4 adj EPS of $2.77, above ests of $2.64 and guides FY26 EPS $9.75-$10.25, largely above estimates of $9.79saying higher pricing, especially for coffee, along with lower debt interest, helped offset rising commodity costs; posted Q4 sales beat of $2.27B but sees Fy sales down -3%-4% vs. est. +0.7%.

• MTN -5%; shares fell after results as EPS $8.81 missed est. $8.95 while Q3 net income $314.4M vs. $389.7M y/y and Q3 adj Ebitda $586.4M, down from $647.7M y/y; reduced FY26 views  to in line with the update provided in April, expecting net income of $128M-$162M and Ebitda $735M-$755M.
• PRGO -3%; said both its chief executive and president resigned. The departures after the CEO’s personal conduct was found to violate the company code
• RDW -11%; as filed to sell up to $500M shares of common stock in offering.
• SAIL -8%; Q1 EPS $0.05/$280.1M revs (as sub revs +23% to $266M) vs. est. $0.04 and $275.8M; while Q1 operating loss shrank to -$80M from -$185M y/y, it was still wider than the -$40M loss in Q4; raised year rev view to $1.265B-$1.275B from prior $1.26B-$1.27B.