Mid-Morning Look: June 12, 2026

Mid-Morning Look

Friday, June 12, 2026

An exciting day on Wall Street following a big surge in stocks Thursday, as risk sentiment has improved on hopes for a potential US-Iran agreement to end the fighting in the Persian Gulf and return the Strait of Hormuz to some form of normality. Equities have rallied hard the last 24 hours, bonds have risen/yields fell further, precious metals recovered and crude prices have slammed lower after President Trump cancelled new strikes on Iran midday yesterday and overnight said “the strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe” with VP Vance potentially attending talks in Europe.

@realDonaldTrump noted on Truth Social just after the market open, “The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing. What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth. Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith. AMAZING! Also, their totally rebuffed Drone attack last night against Indian Ships leaving the Hormuz Strait is TOTALLY UNACCEPTABLE. They better get their act together, and FAST!”

The other story is the SpaceX (SPCX) IPO which priced its 555.6M share deal at $135.00 in biggest IPO debut of all-time. The IPO raised a record $75 billion on the sale of 555.56 million shares, valuing the space, satellite and AI provider at $1.77 trillion. SpaceX is really three businesses under one stock: Starlink generates $11.4B in revenue and $4.4B in operating profit in 2025. SpaceX Launches generated $4.1B in revenue but lost money due to massive investment in Starship and AI (xAI + X) generated $3.2B in revenue but lost $6.4B in 2025. Space stocks LUNR, PL, SATL, ASTS, FLY, RDW, SPCE, YSS, VOYG among names active to the downside after the IPO. In other news, software stocks tumble again (IGV down a 9^th straight day) after ADBE results last night, while semiconductors (SOX) continue to lead. Eight of eleven S&P sectors higher led by utilities, REITs, materials and energy.

• In Utility: Power stocks active after The Trump administration declared a power emergency in the southeastern US due to forecasted dangerous heat that may stress power grids. An emergency order allows DUK to operate power plants at maximum output levels and exceed certain air pollution limits to boost generation. The National Weather Service warned of heat waves from South Carolina to Maine through Friday amid high humidity and hot weather in the Mid-Atlantic.
• Business Development Co (BDC): Wells Fargo downgraded shares of ARCC and KBDC to Equal Weight from Overweight and NCDL cut to Underweight. ARCC cut as sees limited upside on its 0.97x NAV valuation and faces potential headwinds on negative outcomes within its “Big 3” credits including Symplr; KBDC cut as sees limited upside on its 0.89x NAV valuation and NCDL falls despite its more median valuation of 0.7.

• FA +5%; will replace KW in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, June 16. A consortium led by KW’s CEO with Fairfax Financial Holdings Limited (TSE: FFH) is acquiring Kennedy-Wilson Holdings in a deal expected to close soon, pending final closing conditions.
• KTOS +3%; was upgraded to Overweight from Neutral at JP Morgan while lower PT to $82 from $99 saying growth remains the long-term focus in Defense and the outlook for Kratos on this front remains compelling, with margin rate expanding as well.
• NBIS +3%; after being added to the Nasdaq 100 index effective June 22^nd along with TER, ALAB, CRWV and RKLB and replacing CHTR, CTSH, INSM, VRSK, and ZS.

• ASTS -10%; as space related stocks seeing early weakness ahead of the SPCX IPO opening for trade, along with PL, SATS, RKLB, BKSY, RDW, FLY, LUNR, VOYG, SPACE.
• JAZZ -2%; said its lung cancer drug Zepzelca failed to meet the main goal of improving overall survival in a late-stage study, potentially risking its current regulatory status; said it has shared the trial results with the FDA and will discuss next steps regarding post-marketing requirements for the drug’s second-line indication.
• LEN -2%; reported mixed Q2 results as EPS beat but revs fell -5% Y/y to $7.9B vs. est. $8.0B and said Q3 home deliveries below estimates, expected between 20,500-21,500 homes vs expectations of 22,353 units, delivered 20,519 homes in Q2, 2% more y/y, but its average selling price fell about 5% to $371,000 per unit.
• MBX -8%; shares fell as in a one-year open-label extension study of once-weekly drug, canvuparatide, 57% of patients met the main response criteria, compared with 63% response rate seen at 12 weeks in a mid-stage trial while Barclays noted investor expectations were for 79% response rate seen at 6-mo.
• RR -5%; shares fell after says multiple prior financial statements require restatement due to errors; says earnings releases and prior audit reports for fy2024 and fy2025 should not be relied upon.