Early Look

Monday, August 31, 2026

U.S. stock futures are trading lower to kick off the trading week as tensions resumed in the Middle East after U.S. forces struck two Iranian launchers on Larak Island near the Strait of Hormuz, sending oil prices higher. Renewed conflict adds geopolitical risk for energy markets, particularly given Kharg Island's role in Iran's oil infrastructure, as Brent tops $91 per barrel, but Treasury yields unchanged with the 10-year holding high at 4.92%. A quiet weekend overall for stock news heading into the final trading week of the summer and before the Labor Day holiday weekend coming up. The big stock story this weekend was in California where shares of major California electric utilities fall (PCG, EIX, SRE) as California legislature amends Senate Bill 492, which addresses wildfire risk reduction and recovery, preserving insurers' ability to recover wildfire-related claim. In other news, President Trump said the U.S. will use Venezuelan crude to replenish the Strategic Petroleum Reserve, which has fallen to its lowest level in more than four decades. Trump said the process would begin shortly and could affect U.S. oil inventories and energy-market expectations as investors monitor changes in Venezuela policy.

The S&P 500 fell on Friday, but still notched a winning week, after Federal Reserve Chairman Kevin Warsh conveyed some worry over current inflation trends. The broad market index lost 0.3% on Friday, while the Nasdaq Composite slid 0.5%, weighed down by losses in semiconductor stocks and the Dow Jones Industrial Average was marginally lower. For the week, the S&P 500 rose 0.47%, QQQ finishes +0.42%and the Dow +0.53%,while IWM the underperformer down 1.4% on the week. The market's dominant catalyst was FOMC Chair Kevin Warsh as his speech Friday pushed September hike pricing sharply higher and drove a broad repricing across rates, FX and risk assets.

In Asian markets, The Nikkei Index fell -93 points to 66,311, the Shanghai Index rose 34 points to 3,986, and the Hang Seng Index dipped -17 points to 25,566. In Europe, the German DAX is down -231 points to 26,338, while the FTSE 100 is closed for Holiday. The dollar/yen briefly broke above 160, putting further yen weakness firmly on the radar for Japanese authorities. Japan already spent a record $96.4B defending the yen over the past month, yet the currency has given back more than half of its gains from that intervention.

• The Dow Jones Industrial Average dipped -9.45 points, or 0.02%, to 53,559.99
• The Nasdaq Composite slid -138.93 points, or 0.52%, to 26,402.42
• The Russell 2000 Index declined -41.97 points, or 1.39% to 2,972.37

• Earnings After the Close: CANG

• President Trump said this weekend, "The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer."
• Financial Stability Board Chair Andrew Bailey warned G20 finance ministers and central bank governors that frontier AI models, greater equity-market leverage, and elevated AI valuations could increase the risk of financial-market disruption.

• Honda Motor (HMC) and Nissan Motor (NSAY) formally announced that they are partnering to develop the software and electronic foundation for their next generation of software-defined vehicles. The collaboration between the Japanese automakers is a focused technology agreement and not a return to the earlier discussion of a full merger between the auto giants.
• Target Corp (TGT) files for mixed shelf; size not disclosed.
• Lowe's Companies Inc (LOW) files for offering of up to 2.5M shares of common stock.
• Volkswagen (VWAGY) CFO said believes that once current models are phased out in the early 2030s, its four German plants will lack economically viable follow-on production options. CFO said if the company does not cut excess capacity and instead continues planned production across all German plants, it would face a permanent cost disadvantage of about €1.5B a year.

• PG&E (PCG) tumble this morning, along with weakness in Edison (EIX) and Sempra Energy (SRE) amid failure of the California state legislature to pass meaningful reform. Friday was the last day for bills to be introduced, and the legislature passed SB 492, which does not do the two things required to re-rate California utilities: provide a replenishment mechanism or evergreen fund that will always maintain adequate capital in the wildfire fund and break the linkage between fund solvency and liability cap. PCG was downgraded at BMO, Wells Fargo and Mizuho which also cut EIX/SRE.
• SLB (SLB) announced it has signed an agreement to acquire Kelvion, a global provider of thermal management and heat exchange technologies; proposed deal for approximately $3.4B in cash; targets $4.5-$5B revenue and $700-$800M adj EBITDA for data center business in 2028.
• Saudi Arabia is in early talks to raise at least $8 billion in fresh loans as the Iran war pressures its economy and finances. Saudi Aramco is also discussing potential borrowing with banks.

• Arrowhead Pharmaceuticals (ARWR) presented results from the Phase 3 SHASTA-3 and SHASTA-4 studies of Plozasiran in adults with severe hypertriglyceridemia during a Hot Line Late-Breaking Science session at the European Society of Cardiology, ESC, Congress 2026 in Munich, Germany. SHASTA-3 and SHASTA-4 met their primary and all prespecified secondary endpoints and demonstrated deep and durable reductions in triglycerides.
• Bayer (BAYRY) said an experimental imaging agent accurately identified cardiac amyloidosis in a Phase 3 study, producing sensitivity of 94% and specificity of 86% based on agreement among independent scan readers. Detailed results from the REVEAL trial of iodine 124 evuzamitide were presented Sunday at the European Society of Cardiology Congress in Munich and published simultaneously in The Journal of the American Medical Association.
• BeOne Medicines (ONC) announced positive topline results from the second interim analysis of the Phase 3 HERIZON-GEA-01 trial evaluating Ziihera, in combination with chemotherapy, with and without Tevimbra, as first-line treatment for HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma, GEA.
• BioMarin Pharmaceutical (BMRN) shares rose pre mkt after the company announced it will receive 20% royalties from Denmark's Ascendis Pharma on sales of Yuviwel, a drug to boost lineae growth in children with achondroplasia, the most common form of dwarfism.
• Eli Lilly and Company (LLY) signed a definitive agreement to acquire Merida Biosciences for up to $2.875B in cash, including an upfront payment and contingent milestone payments. Merida’s lead asset MER511 is in Phase 1 for Graves’ disease and thyroid eye disease, with initial data showing robust reductions in pathogenic thyroid-stimulating antibodies and a favorable initial safety profile.
• Ideaya Biosciences (IDYA) announces successful FDA Type C Meeting for IDE849, DLL3 TOP1 ADC, on phase 3 registrational trial design for potential accelerated and full approval in extensive stage small cell lung cancer.
• Protagonist Therapeutics (PTGX) announced that Takeda (TAK) received U.S. FDA approval for MIMRYLO, a subcutaneously delivered first-in-class hepcidin mimetic peptide for the treatment of erythrocytosis in adults with polycythemia vera.

• SK Hynix (SKHY) is looking for a site in Japan to build a memory fab to be operated as a joint venture Bloomberg reported. "We are looking all over Japan," SK Hynix chairman Chey Tae-won told Bloomberg, "anywhere with good power and good water."
• SK Hynix (SKHY) is reportedly considering a partnership with Intel's (INTC) foundry division for the production of substrate chips for its upcoming generation of High Bandwidth Memory (HBM4E) products. This strategic move aims to reduce SK Hynix's dependence on TSMC (TSM) for substrate manufacturing. Industry insiders suggest that collaborating with Intel could enhance SK Hynix's options in terms of cost-efficiency and supply stability.

Mid-Morning Look

Monday, August 31, 2026

U.S. stock markets are pulling back to start the final trading week of the summer, as another surge in oil prices along with another bounce in Treasury yields is raising concerns on Wall Street after Iran and the United States traded attacks for the first time in over a month overnight. Iran fired missiles toward US military targets in Jordan and the United Arab Emirates in retaliation for a strike on Iranian rocket launchers that the US said were trying to launch sea mines into the Strait of Hormuz. Oil prices rose more than 2% on Monday while Treasury yields are higher again on the long end as the 10-yr rises 3.8bps to 4.764% and the 30-yr yield +5.97% to 5.267% which is weighing on dividend paying sectors and Smallcap stocks (IWM). After tumbling -2.88% on Friday, gold prices are down another -1.3% to $4,470 an ounce after FOMC Chair Warsh hawkish comments on rates last week weighs on metals/stocks.

Coming into the final trading week of the summer ahead of the Labor Day weekend, the Dow Jones Industrial Average was up 2.1% month-to-date, putting the index on track for its fifth consecutive monthly advance. The S&P 500 (SPX) and Nasdaq Composite are headed for their first one-month increases since May, up about 3% and 4%, respectively. Technology (XLK) has led the charge this month, with artificial intelligence-linked stocks outperforming, up nearly 6% for the month. Materials (XLB), Healthcare (XLV) and Energy (XLE) are both up over 5% this month, while Utilities (XLU) -3.6% and Industrials (XLI) -1.5%.

The market is getting more confident that the Federal Reserve will hike interest rates on Sept. 16, even if Federal Reserve Chairman Kevin Warsh didn’t quite say as much in his Jackson Hole speech Friday. His policy of no forward guidance made the hints he does offer even more enticing for market watchers.  The odds crept as high as 62% to start the week, up from 57% on Friday, according to CME’s FedWatch tool. Now attention turns to jobs data this week with nonfarm payrolls, ADP private payrolls and JOLTs.

• Oil stocks rise on higher oil prices (XOM, CVX, COP) following renewed U.S.-Iran military tensions around the Strait of Hormuz. Brent crude rose above $90 a barrel after U.S. forces struck Iranian missile launchers on Larak Island, while Iran retaliated with attacks on U.S. positions in the region, raising concerns over potential disruptions to oil flows through the key transit route.

• EPAM +3%; after activist hedge fund Engine Capital, which owns about 1.5% of EPAM, sends a letter to co's board highlighting the co's undervaluation and urges the initiation of a $750 mln accelerated stock buyback program.
• GME +3%; says it amended its previously announced debt exchange of $1.4B as revised deal would pay about 27% in cash, or roughly $358.4M, with remainder paid in stock; also reports preliminary Q2 revenue $780M-$800M vs $972.2M last year; cash, cash equivalents and marketable securities are expected to be in the range of $5.050B-$5.070B.
• SAIC +4%; raises FY27 adjusted EPS view to $10.65-$10.75 from $9.90-$10.10 (vs. consensus $10.18), while raises FY27 revenue view to $7.2B-$7.3B from $7B-$7.2B (est. $7.19B) and boosts FY27 adjusted EBITDA view to $750M-$755M from $720M-$730M
• SKHY +2%; as memory and semiconductor stocks are higher today; SKHY is looking for a site in Japan to build a memory fab to be operated as a joint venture Bloomberg reported. Also a report that SKHY is considering a partnership with INTC’s foundry division for the production of substrate chips for its upcoming generation of High Bandwidth Memory (HBM4E) products.

• HWM -5%; along with weakness in DPC after Elon Musk said Saturday that SPCX could start in-house casting of gas Turbine blades and vanes. Musk said that SpaceX and TSLA are building 100 gigawatts/year of solar production capacity, but Natural gas will be required to supplement it.
• PCG -19%; along with weakness in other California utilities (EIX, SRE) after California lawmakers reportedly blocked Gov. Gavin Newsom’s proposal to shift some catastrophic wildfire liability away from publicly traded utilities and onto insurers.
• PINS -5%; Pinterest Julia Brau Donnelly submits resignation as Pinterest CFO on August 26, 2026.

Closing Recap

Monday, August 31, 2026

Lots of market chop today to start the trading week as low volumes/quiet news ahead of the Labor Day holiday weekend kept markets in check, finishing lower but near the best levels of the day. It was a very tight range all afternoon ahead of some key economic data this week including nonfarm payrolls and ADP private payrolls, though most S&P sectors ended lower amid a rebound in oil prices and Treasury yields following the hawkish comments by Fed Chair Warsh at last week’s Jackson Hole Symposium. Oil prices haven’t slowed down as tensions in the Middle East keep spiking with the U.S. and Iran exchanging strikes for the first time in a month, while Iran said a tanker was hit by mines in the Strait of Hormuz. Market drama plus climbing inflation is a strong formula for a rate hike from the Fed, could it be September?

Coming into the final trading day of the month (and ahead of the Labor Day weekend), the Dow Jones Industrial Average was up 2.1% month-to-date, putting the index on track for its fifth consecutive monthly advance. The S&P 500 (SPX) and Nasdaq Composite are headed for their first one-month increases since May, up about 3% and 4%, respectively. Technology (XLK) has led the charge this month, with artificial intelligence-linked stocks outperforming, up nearly 6% for the month. Materials (XLB), Healthcare (XLV) and Energy (XLE) are both up over 5% this month, while Utilities (XLU) -3.6% and Industrials (XLI) -1.5%.

Stats of the day: @Bluekurtic noted on X, “Next week is a 4-day trading week with markets closed Monday for Labor Day. Fun stat: the S&P 500 has fallen on the first trading day of Labor Day week for 9 straight years since 2017. Longest such losing streak since 1950. In 2026, that day is Tuesday, Sept. 8.”; 2) @Bluekurtic also note don X, “ The S&P 500 has now gone 900+ days without a 20% bear market drawdown. If the AI era rhymes with the dot-com boom, we may not even be a third of the way through this streak. In the 1990s, the index went 3,102 days without a 20% drawdown.”

September is gearing up to be a monumental month for U.S. equity markets (SPY) (VOO), with $9.6T in options exposure set to expire between now and Sept. 18. This fast-approaching wave represents roughly 35% of all total U.S. options exposure, according to a recent note from Scott Rubner of Citadel Securities. The impending quarterly expiration alone will account for $6.2T, or 23% of total exposure, and is tracking to surpass June's record $7.7T triple-witching event. The vast majority of the expiration is heavily concentrated in SPX AM options, which total $4.0T. This massive roll-off creates a potential reset for the broader market's technical backdrop, Rubner warned. https://tinyurl.com/2p9kdsvw

• After tumbling -2.88% on Friday, gold prices were down another -$48.40, or -1.07%, to settle at $4,481.50 an ounce while December silver slips -$0.80, or -1.17%, at $66.99 an ounce after FOMC Chair Warsh hawkish comments on rates last week weighs on metals/stocks. However, for the month, gold ended higher by over 9% and silver 15% for the month. Wall Street continues to assess growing expectations of a Federal Reserve rate hike following hawkish comments from Chair Kevin Warsh as a surge in oil prices further added to inflation concerns.
• Treasury yields jumped on Monday as the 10-year rose 3.4bps to 4.75% (neared 4.77% earlier) while the 30-year yield climbed 5% to 5.25% which in turn boosted mortgage rates as the 30-year fixed rate recently hit 6.87%, the highest since June 2025.

• Specialty Retail sector: GME says it amended its previously announced debt exchange of $1.4B as revised deal would pay about 27% in cash, or roughly $358.4M, with remainder paid in stock; also reports preliminary Q2 revenue $780M-$800M vs $972.2M last year; cash, cash equivalents and marketable securities are expected to be in the range of $5.050B-$5.070B.
• Retailers: The WSJ reported the FTC and over 20 states plan to file a lawsuit against AMZN, alleging the company manipulated prices businesses paid to advertise on the platform; ANF was upgraded to Buy at Argus noting it had been looking for signs of improved sales strength as an update trigger, and those signs were evident with the company's Q2 earnings beat as Abercrombie & Fitch grew its sales and expanded margins.

• Oil stocks rise on higher oil prices (XOM, CVX, COP) following renewed U.S.-Iran military tensions around the Strait of Hormuz. Brent crude rose above $90 a barrel after U.S. forces struck Iranian missile launchers on Larak Island, while Iran retaliated with attacks on U.S. positions in the region, raising concerns over potential disruptions to oil flows through the key transit route.
• MLPs/Pipelines: OKE announced that it has executed a definitive agreement to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for total cash consideration of $4.425B. The acquisition will be funded through a $9B nonvoting minority equity investment from funds and affiliates managed by Apollo (APO). ONEOK intends to use $5B of proceeds from the equity investment to reduce ONEOK's existing indebtedness.
• Oil Service sector: SLB said it will acquire cooling equipment maker Kelvion from APO and funds managed by Triton for $3.4 billion in cash, expanding its data center business as rapid AI adoption drives demand for power and cooling infrastructure. SLB will also assume about $700 million of Kelvion's debt under the deal, which is expected to close in the first half of 2027; targets $4.5-$5B revenue and $700-$800M adj EBITDA for data center business in 2028.

• Insurance sector: AON will buy rival USI Insurance Services in a $17 billion deal from private equity firm KKR, as the insurance brokerage confirmed reports by the WSJ this weekend.

• ARWR presented results from the Phase 3 SHASTA-3 and SHASTA-4 studies of Plozasiran in adults with severe hypertriglyceridemia during a Hot Line Late-Breaking Science session at the European Society of Cardiology, in Munich, Germany. SHASTA-3 and SHASTA-4 met their primary and all prespecified secondary endpoints and demonstrated deep and durable reductions in triglycerides.
• BMRN announced that they've reached an IP settlement with ASND surrounding Yuviwel; economics show will receive (18-20% Royalty, paid retroactively) are better than anticipated said Stiefl  and a more legitimate hedge against any lost sales from patient switches.
• LLY signed a definitive agreement to acquire Merida Biosciences for up to $2.875B in cash, including an upfront payment and contingent milestone payments. Merida’s lead asset MER511 is in Phase 1 for Graves’ disease and thyroid eye disease, with initial data showing robust reductions in pathogenic thyroid-stimulating antibodies and a favorable initial safety profile.
• ONC announced positive topline results from the second interim analysis of the Phase 3 HERIZON-GEA-01 trial evaluating Ziihera, in combination with chemotherapy, with and without Tevimbra, as first-line treatment for HER2+ locally advanced or metastatic gastroesophageal adenocarcinoma.
• PTGX announced that TAK received U.S. FDA approval for MIMRYLO, a subcutaneously delivered first-in-class hepcidin mimetic peptide for the treatment of erythrocytosis in adults with polycythemia vera.

• Aerospace sector: shares of HWM, DPC declined after Elon Musk said Saturday that SPCX could start in-house casting of gas Turbine blades and vanes. Musk said that SpaceX and TSLA are building 100 gigawatts/year of solar production capacity, but Natural gas will be required to supplement it. Both HWM make blades and vanes for Aerospace engines and industrial gas turbines
• Gov’t service sector: SAIC raises FY27 adjusted EPS view to $10.65-$10.75 from $9.90-$10.10 (vs. consensus $10.18), while raises FY27 revenue view to $7.2B-$7.3B from $7B-$7.2B (est. $7.19B) and boosts FY27 adjusted EBITDA view to $750M-$755M from $720M-$730M.
• Metals & Mining: KALU upgraded to Buy from Neutral at UBS saying despite a strong Q2, shares are ~19% off Aug highs due to: 1) USMCA renegotiations; 2) CEO transition; & 3) scrap spread sustainability and says the selloff provides investors attractive entry point.

• Hardware sector: AAPL increased its U.S. subscription rates effective August 28, 2026, with the change taking effect immediately for new subscribers and existing subscribers. New pricing in the U.S.: Monthly: $14.99 (up from $12.99), Annual: $119 (up from $99). Apple One Individual (Apple TV + Apple Music + iCloud+ 50GB + Apple Arcade) now $21.95/month (up from $19.95)
• Memory sector: The Information reported China’s leading memory-chip maker, ChangXin Memory Technologies (CXMT), has begun producing advanced high-bandwidth memory in small quantities. CXMT is making HBM3E, an advanced type of high-bandwidth memory used in many of today’s leading Ai processors, according to two people familiar with the matter.
• IT Services & Consulting: EPAM shares active after activist hedge fund Engine Capital, which owns about 1.5% of EPAM, sends a letter to co's board highlighting the co's undervaluation and urges the initiation of a $750 mln accelerated stock buyback program.
• Semiconductors: AMD, CSCO announced that AMD Instinct MI355X GPU-based AI infrastructure built on Cisco Silicon One-based AI networking is now live in Saudi Arabia. SKHY is looking for a site in Japan to build a memory fab to be operated as a joint venture Bloomberg reported. Also a report that SKHY is considering a partnership with INTC’s foundry division for the production of substrate chips for its upcoming generation of High Bandwidth Memory (HBM4E) products.
• @GlobalMktObserv noted on X, “Semiconductor stocks represent ~14% of the total US stock market cap. This is down only -2 percentage points from June’s peak. In effect, this proportion is still TRIPLE the level seen in 2023. The percentage is also 2X HIGHER than at the 2000 Dot-Com Bubble peak of 7%. Meanwhile, the semiconductor index, $SOX, has dropped ~20% from its June peak.”
• Robotics: Goldman Sachs raised their humanoid robot forecast to ~890K units by 2030 and 6.5mn by 2035 — a $138bn market opportunity saying they look for robots to improve profitability for adopters in warehouse automation, car production, and semiconductor manufacturing. Best positioned across the value chain in US: Buy-rated AMZN, WMT, NVDA, JBL and Neutral-rated TSLA.

Street Recommendations

Monday, August 31, 2026

• OHI Barclays lowered the firm's price target on Omega Healthcare to $50 from $51 and keeps an Underweight rating on the shares. The firm adjusted targets in the healthcare real estate investment trust space, saying strong Q2 results were "tempered somewhat by mixed reactions as investors debate the durability of growth."
• SBRA Barclays analyst Richard Hightower raised the firm's price target on Sabra Health Care to $23 from $21 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the healthcare real estate investment trust space, saying strong Q2 results were "tempered somewhat by mixed reactions as investors debate the durability of growth."
• VTR Barclays raised the firm's price target on Ventas to $102 from $99 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the healthcare real estate investment trust space, saying strong Q2 results were "tempered somewhat by mixed reactions as investors debate the durability of growth."
• WELL Barclays raised the firm's price target on Welltower to $259 from $254 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the healthcare real estate investment trust space, saying strong Q2 results were "tempered somewhat by mixed reactions as investors debate the durability of growth."

• HPE BofA raised the firm's price target on HPE to $82 from $80 and keeps a Buy rating on the shares ahead of the company reporting fiscal Q3 results after market on September 2. The firm, which expects a strong quarter driven by strength in storage and industry standard servers, notes that its Q3 revenue and EPS estimates are slightly above guidance and notes that it expects management to tighten its FY26 revenue range and raise EPS slightly.
• TEAM BofA analyst Koji Ikeda raised the firm's price target on Atlassian to $210 from $175 and keeps a Buy rating on the shares. After having hosted an investor webinar with Atlassian Head of IR Martin Lam, the firm came away with greater conviction that Cloud growth can remain durable over the next three to five years, says the analyst, who raised the firm's multiple to reflect greater confidence in the durability of Cloud growth and FY28 total revenue acceleration.
• BDX BofA analyst Travis Steed raised the firm's price target on Becton Dickinson to $200 from $185 and keeps a Neutral rating on the shares after having hosted investors at two of the company's plants in Nebraska. The firm got incremental confidence there's margin opportunity left and also got a better appreciation of the manufacturing scale, the quality of products coming off the line, and the competitive moat at Becton Dickinson, the analyst says.
• MNSO BofA analyst Lucy Yu lowered the firm's price target on Miniso to $12.40 from $17.50 and keeps a Neutral rating on the shares. The firm cut its 2026 and 2027 non-IFRS EPS estimates by 20% and 16%, respectively, following the company's Q2 report. While valuation looks more compelling following a 40% correction year-to-date, near-term earnings risks remain, the analyst tells investors.
• NTAP BofA raised the firm's price target on NetApp to $206 from $180 and keeps a Neutral rating on the shares. Heading into fiscal Q1 earnings the firm sees overall demand for storage as strong, says the analyst, who believes the company has the ability to raise FY27 guidance.

• GTLB BTIG analyst Nick Altmann raised the firm's price target on GitLab to $52 from $36 and keeps a Buy rating on the shares ahead of its Q2 results. The setup on the stock is undoubtedly more demanding after its 40% gain since reporting Q1, but with agentic AI tailwinds to DevSecOps showing no signs of slowing, the firm sees scope for a stronger narrative coming out of Q2 earnings, the analyst tells investors in a research note.

• MNSO Citi downgraded Miniso to Neutral from Buy with a price target of $11.30, down from $23.40. The company reported a first half of 2026 operating miss and reduced its 2026 outlook, the analyst tells investors in a research note. Citi now sees limited upside potential and a balanced risk/reward at current share levels.

• RCAT Evercore ISI initiated coverage of Red Cat with an Outperform rating and $15 price target. The Department of War has fundamentally changed how it intends to deploy and procure drones in the battlefield and Red Cat is "the only publicly listed drone manufacturer with a program of record" that has invested in capex and inventory and is sitting on a strong balance sheet to benefit from the growing $53.6B federal drone budget, the analyst tells investors.
• CPB Evercore ISI lowered the firm's price target on Campbell's to $22 from $23 and keeps an In Line rating on the shares. Persistent sales weakness in the Snacks segment, elevated inflation at around 6%, and the need for growth investments are among the factors cited as the firm lowered FY27 expectations.

• KYMR Guggenheim raised the firm's price target on Kymera Therapeutics to $170 from $135 and keeps a Buy rating on the shares after having expanded the firm's KT-621 market model to include several Th2 diseases ahead of Phase 2b atopic dermatitis data due at year-end.

• SRE Mizuho analyst Anthony Crowdell downgraded Sempra Energy to Neutral from Outperform with a price target of $84, down from $104. The firm downgraded three California utilities citing the failure of the state legislature to pass meaningful reform. Friday was the last day for bills to be introduced, and the legislature passed SB 492, which does not do the two things required to re-rate California utilities: provide a replenishment mechanism or evergreen fund that will always maintain adequate capital in the wildfire fund and break the linkage between fund solvency and liability caps, the analyst tells investors in a research note. Mizuho says that while California Governor Newsom proposed several solutions to limit withdrawals from the wildfire fund, such as a $6B cap per incident and eliminating subrogation, both of the proposals failed to make it in the final legislation.
• PCG Mizuho analyst Anthony Crowdell downgraded PG&E to Neutral from Outperform with a price target of $16, down from $21. The firm downgraded three California utilities citing the failure of the state legislature to pass meaningful reform. Friday was the last day for bills to be introduced, and the legislature passed SB 492, which does not do the two things required to re-rate California utilities: provide a replenishment mechanism or evergreen fund that will always maintain adequate capital in the wildfire fund and break the linkage between fund solvency and liability caps, the analyst tells investors in a research note. Mizuho says that while California Governor Newsom proposed several solutions to limit withdrawals from the wildfire fund, such as a $6B cap per incident and eliminating subrogation, both of the proposals failed to make it in the final legislation. BMO Capital also downgraded PG&E this morning.

• HON Morgan Stanley raised the firm's price target on Honeywell Technologies to $250 from $245 and keeps an Equal Weight rating on the shares. With the Honeywell Aerospace spin in the rearview mirror, standalone Honeywell is now positioned for a stronger organic growth profile, though consensus estimates are "already setting a high bar," the analyst tells investors.

• RVMD Needham raised the firm's price target on Revolution Medicines to $275 from $240 and keeps a Buy rating on the shares. The firm is updating its model to reflect the approval and pricing of Rasonque, the analyst tells investors in a research note. Needham adds it remains optimistic for the company's pipeline which includes exploring a development path in CRC, combinations with VEGFi, PRMT5i etc.

• PYPL Truist lowered the firm's price target on PayPal to $53 from $62 and keeps a Hold rating on the shares after Bloomberg reported that Advent and Stripe walked away from buyout talks last week. This could be a negotiating tactic to lower the potential purchase price, though the firm is also questioning the strategic rationale for Stripe to buy PayPal and the lack of strategic motivation that puts a ceiling on the potential bid price, the analyst tells investors in a research note.

• AON UBS analyst Brian Meredith keeps a Neutral rating on Aon plc with a $387 price target after the Wall Street Journal reported the company is is nearing an agreement to acquire USI Insurance Services from KKR for roughly $17B, including debt. UBS views the potential deal as a strategic positive. The acquisition would establish Aon as one of the leading middle-market brokers in the U.S., which has historically grown faster than the upper-middle and large market segments, the analyst tells investors in a research note.
• PATH UBS analyst Radi Sultan raised the firm's price target on UiPath to $19 from $12 and keeps a Neutral rating on the shares ahead of the company's upcoming earnings report, citing recent checks.

• CSIQ Wells Fargo lowered the firm's price target on Canadian Solar to $17 from $18 to reflect a slightly lower EBITDA forecast, while keeping an Equal Weight rating on the shares. The firm notes the company reported a Q2 beat. Q3 revenue and module shipment guidance were light, but gross margin was above consensus.

Rating abbreviations…

***OP = Outperform

***SP = Sector Perform

***UP = Underperform

***OW = Overweight

***EW = Equal-weight

***UW = Underweight

***Report powered by thefly.com***

What’s on Tap Weekly Calendar

• 10:30 AM ET                 Dallas Fed Manufacturing for August

• Earnings After the Close: CANG

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 9:45 AM ET S&P Global Manufacturing PMI, Aug-final
• 10:00 AM ET                 Construction Spending M/M for July
• 10:00 AM ET ISM Manufacturing PMI for August
• 10:00 AM ET                 JOLTs Job Openings for July
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: CRDO DELL GTLB MDB PANW SPWH ZEPP

• 8:15 AM ET ADP Private Payrolls for August
• 10:00 AM ET                 Durable Goods Orders M/M for July
• 10:00 AM ET                 Factory orders M/M for July
• 10:30 AM ET                 Weekly EIA Inventory Data

• Earnings After the Close: AGX AI AVGO CHPT FIVE GOLD HPE MTRK NTAP NTSK PHR PVH SNOW TLYS WOOF

• 8:30 AM ET                   Weekly Jobless Claims
• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   International Trade for July
• 8:30 AM ET                   Nonfarm productivity for Q2
• 8:30 AM ET                   Unit Labor Costs for Q2
• 9:45 AM ET S&P Global Composite PMI, Aug-final
• 9:45 AM ET S&P Global Services PMI, Aug-final
• 10:00 AM ET ISM Non-Manufacturing PMI for August
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data

• Earnings After the Close: AMBA AOUT ASAN BBCP CURV DOCU EGAN GWRE IOT LULU MAMA NX OXM PATH PL SWBI ZS

• 8:30 AM ET                   Private Payrolls for August
• 8:30 AM ET                   Manufacturing Payrolls for August
• 8:30 AM ET                   Unemployment Rate for August
• 8:30 AM ET                   Average Hourly Earnings M/M for August
• 1:00 PM ET                    Baker Hughes Weekly rig count data