Mid-Morning Look: September 03, 2026

Mid-Morning Look

Thursday, September 03, 2026

U.S. stocks off to a strong start, particularly for the Nasdaq and S&P 500 as the U.S. dollar plunges and Treasury yields ease after economic data and Fed Waller comments. On of the bigger stories today was the U.S. dollar weakness against the Japanese yen, falling over 2% to below 156, extending its prior decline following economic data and to its lowest levels since late February as maybe seeing the early stages of carry trade unwind. Gold extended gains rising 2.3%, buoyed by a drop in the U.S. dollar and Treasury yields, as investors awaited key payrolls data that could tip the scales on expectations for a Federal Reserve rate hike this month. Comments by Federal Reserve Governor Christopher Waller saying that if upcoming data confirms that inflation pressures are cooling off, he is inclined to argue in favor of keeping interest rates steady at the U.S. central bank’s next policy meeting helped metals as well.

A few sectors active on earnings results with the software sector getting a bounce behind results/guidance from SNOW last night which sent share sup more than 20%; at the same time, semiconductors pulled back after AVGO reported better quarterly results, but next quarter revenues and margins came in below consensus. Retail a focus with big movers on earnings (FIVE, VSXY, PVH, WOOF) while food related names slide behind weaker results/guidance from CPB and TSN. Financials (XLF) back near all-time highs rising on the day. The broader market has a bigger problem in rising bond yields as the 10-year Treasury yield is creeping higher again. Oil prices hovered near six-week highs after fresh U.S. strikes on Iran and renewed Israeli threats against Tehran heightened concerns about disruptions. Both benchmarks are up more than 10% on the week following fresh strikes between the U.S. and Iran.

• ISM non-manufacturing sector shows PMI 55.4 in August (consensus 54.2) vs 54.1 in July; ISM non-manufacturing business activity index 61.7 in August vs 59.1 in July; ISM non-manufacturing new orders index 60.9 (3 ½ year highs) in August vs 57.2 in July; prices paid index 72.6 in August vs 70.3 in July and employment index 47.8 in August vs 47.4 in July.
• Weekly Jobless Claims climbed to 206,000 from 204,000 last week and vs. consensus 205,000; the 4-week moving average climbed to 207,250 from 205,750 prior week (previous 205,500); continued claims climbed to 1.779M from 1.771M prior week and vs. consensus 1.790M.
• The U.S. trade deficit widened sharply in July as strong domestic demand boosted imports, positioning trade to exert another drag on economic growth in the third quarter. The trade shortfall increased 24.4% to (-$88.6 billion) vs. economists forecast the deficit at (-$90.0 billion); July exports -2.1% vs June -0.8%, imports +2.8% vs June -1.8%. U.S. July exports $310.72B vs June $317.34B, imports $399.30B vs June $388.52B.

• Drone stocks move higher early (DPRO, ONDS, RCAT, UMAC) after the NY Times reported the Trump administration puts tariffs of up to 100% on foreign-made drones. In addition, the F.C.C. is weighing stiff restrictions on common drone technology such as thermal Imaging and aerosol spraying.
• Metals & Mining sector: gold and silver miners (AEM, NEM, AG, FSM, HL, CDE, WPM, etc.) saw sizeable gains again today in another bounce as gold/silver prices jumped following more dovish commentary from Fed’s Waller at a Reuters event today saying he is willing to sit and wait and be patient regarding rates.
• Software sector: SNOW shares a standout to the upside, surging for a second quarter in a row following better results as EPS of $0.62/$1.55B revs (vs. consensus $0.45/$1.48B), up 35% Y/y versus 33% last quarter, product revenue of $1.49B up 37% Y/y (accelerated by ~300bps Q/Q) with cRPO of $4.91B (consensus 4.75B), growth of ~42% versus 38% last quarter; and better guidance as raised for the year well in-excess of the 2Q beat. The results boosting the software sector broadly again today after a strong earnings season (TEAM, NOW, DDOG, MNDY, HUBS higher).

• FIVE +5%; posted their 5th straight qtr of double-digit comps, with a 14.1% comp vs. 13.0%E as the growth was almost entirely driven by transactions and occurred across cohorts, geographies and categories; sees FY revs $5.63-5.71B vs est $5.544B and adj EPS $9.83-10.31 vs est $9.25.
• HCM +13%; after signing a licensing deal with GSK for an experimental solid tumor drug; GSK will pay a unit of HUTCHMED (China) $110 million upfront for rights to an experimental drug for solid tumors.
• NTSK +3%; reported solid Q2 results with 27% y/y ARR growth ahead of consensus expectations as the ARR/revenue beat came in higher relative to last quarter. Looking ahead, FY/27 revenue guidance moved higher than the Q2 beat reflecting 25.5% growth vs. 24% previously.
• SNOW +21%; following better results as EPS of $0.62/$1.55B revs (vs. consensus $0.45/$1.48B), up 35% Y/y versus 33% last quarter, product revenue of $1.49B up 37% Y/y (accelerated by ~300bps Q/Q) with cRPO of $4.91B (consensus 4.75B), growth of ~42% versus 38% last quarter; and better guidance as raised for the year.

• AVGO -6%; reported solid Q3 results and provided mixed Q4 guidance while Ai guidance for FY27 was increased to $115B vs $100B prior and expected to double again in FY28 to $230B equating to 10GW and 20GW respectively; shares fell on Q4 rev guidance which came in at $34.8B vs. $35.03B estimate and margins 66% vs. est. 66.5%.
• CIEN -11%; raises FY26 revenue view to $6.42B plus/minus $50M from $6.3B (vs. consensus $6.33B) and guides Q4 revs above consensus; reported better-than-expected results as earned an adj EPS $2.11 and revenue jumped 37% y/y to $1.67B (vs. est. $1.73 and $1.64B). Optical networking revenue came in at $1.19B.
• CPB -9%; posted in-line Q4 EPS of $0.39 and sales $2.1B vs. est. $2.14B; the company cut its Q4 dividend to $0.25 from $0.39 to speed up debt reduction; forecasts annual sales below estimates on weak consumer spending as sees 2027 net sales to fall between -2% and 4%, vs. est. -0.8%.
• MEI -12%; as Q1 sales rose 10%, beating analyst expectations, while adjusted EBITDA fell yr/yr as lost contribution from the divested dataMate business and investments in talent and capabilities offset higher sales; company affirmed fiscal 2027 guidance.
• MRNA -3%; was downgraded to Sell at Redburn while raise tgt to $81 from $40 saying views the Phase 3 INTerpath-001 trial of intismeran autogene plus Keytruda as a “great result” – but notes the subsequent share price reaction implies a near ubiquitous usage across tumor types for which Redburn has seen little or no data.
• PHR -4%; reported 2Q revenue/EBITDA were 0.3%/7.2% ahead of consensus on strong cost control. Despite the EBITDA beat, management held FY guidance flat (in line with Street at midpoints) to accelerate 2H investment in the burgeoning ProviderConnect and AccessOne opportunities
• PSNY -14%; cut its full-year delivery forecast, hurt by the U.S. crackdown on Chinese-linked vehicles that forced it out of the United States, as now expects its annual volume growth to be low-to-mid single-digit, from a previous forecast of low double-digit growth.
• RARE -46%; after its neurodevelopmental disorder treatment, apazunersen, failed to meet both its main goal of improving cognitive skills and its secondary goals of overall patient response in participants with Angelman syndrome, a rare nervous system condition.
• TSN -7%; as cuts its FY26 revenue view to up 1.5%-2% from up 2.5%-3.5%, primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history, as well as the expected impact of lower cattle prices on the value of live cattle inventories.
• VSXY -12%; posted mixed Q2 results as EPS $0.95 topped the $0.77 estimate and sales of $1.61B rose 10% y/y but just missed consensus and same store sales rose 9% (in-line with ests); forecast sales of $1.57B-$1.6B in Q3 vs. est. $1.57B and raised its year sales view to $7.1B-$7.18B from prior $7.03B-$7.13B.