Early Look

Thursday, July 2, 2026

On the heels of a few nice gains, investors started the new month in a more cautious mood and took some profits yesterday.  Today’s payrolls data likely will be the determining factor in the next move ahead of a long holiday weekend as concerns linger around the prospect of Fed hikes.  Is good news good news or is it bad? Earnings get going in couple weeks, though, and growth should be solid and that would be good news either way.

In Asian markets, The Nikkei Index slid 1,741.81 to 68,733.15, the Shanghai Index lost 83.54 to 4,028.90 and the Hang Seng Index gained 174.01 to 23,055.03.  In Europe, the German DAX is adding 139.82 to 25,178.90 while the FTSE 100 is higher by 51.17 to 10,529.56 and the CAC is up 65.58 at 8,402.87.

• The Dow Jones Industrial Average slipped 12.98 points, or 0.02%, to 52,306.22
• The Nasdaq Composite lost 173.69 points, or 0.66%, to 26040.03
• The Russell 2000 Index declined 2.07 points, or 0.07% to 3,022.30

• 8:30 AM ET                   Private Payrolls for June
• 8:30 AM ET                   Manufacturing Payrolls for June
• 8:30 AM ET                   Unemployment Rate for June
• 8:30 AM ET                   Average Hourly Earnings M/M for June
• 8:30 AM ET                   Weekly Jobless Claims
• 8:30 AM EST                 Continuing Claims
• 10:00 AM ET                 Factory Orders M/M for May
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 1:00 PM EST                 Baker Hughes Weekly rig count data

• Earnings After the Close: None

• In consumer products, WHR announced in an SEC filing they would 'gradually' phase out Supsa manufacturing facility in Mexico. BSET shares fell in AHs trading after reporting Q2 earnings: EPS $0.24 beat est $0.20 and Sales $83.753M beat est $83.300M.

• In energy, TEN announced second LNG carrier order in Hyundai Heavy Industries; to be delivered in July 2026 in South Korea with $3.5B in minimum secured revenues. TTE divests 8.5% interest in Marjoram gas field to Inpex for $350M.
• In industrials, CMCO announces CFO transition; appoints John R. Linker as CFO effective July 1, 2026; reaffirms fiscal year 2027 guidance. REZI announces board approves ADI spin-off, sets August 3 distribution under ticker 'ADIG'; shareholders of record expected to receive one share of ADI common stock for every two shares of Resideo common stock owned. QXO incurs $3B incremental term loan facility per SEC filing. KODK files to offer up to 4.43M shares of common stock by selling shareholders per SEC filing. GBX shares were slightly lower last night after reporting Q3 earnings: EPS $0.60 misses est $0.62 and Sales $576.500M misses est $612.694M.
  CLF Wins A Maximum $400M Indefinite-Delivery/Indefinite-Quantity Contract For Grain Oriented Electrical Steel
• In water services and utilities, AWK’s Missouri American Water unit seeks MoPSC approval for higher rates to fund about $1.6B in system investments between 2025 and 2028.
• In agriculture, BAYRY will consolidate U.S. glyphosate business Into distinct entity operating as Ruveon; Reinforces commitment to delivering trusted Roundup® brands and glyphosate products and services to U.S. customers. QXL demonstrates first all-optical HRG architecture for advanced inertial sensing.
• In mining, LEU signs contract with Department of Energy for $900M award.
• In aerospace, AVAV shares moved higher in AHs following announcement hey won a $500M firm-fixed-price contract for the procurement of commercial counter-unmanned aerial systems and counter small-unmanned aerial systems capabilities; Army Contracting Command is the contracting activity.
  
  

• In services, FC sharers fell by 20% in AHs trading following reporting Q3 earnings: EPS $0.27 misses est $0.28 and Sales $67.807M Miss est $68.334M and cut its FY26 sales guidance with its midpoint below estimates. VEON partners with MC to expand financial services across Ukraine, Kazakhstan, Pakistan and Uzbekistan.
• In real estate, STRS announced initial liquidating distribution of $5.00 per share to stockholders and intention to voluntarily delist from Nasdaq and deregister with SEC. GOOD announces that they have executed a 10-year lease with Ohio Life Sciences. CSGP announces launch of costar platform in france targeting €300b commercial real estate market.

• In healthcare services, GRDN acquires Wellness Concepts; terms not disclosed. ENSG purchases two skilled nursing facilities in Texas; terms not disclosed,
•  

• In software and hardware, AAPL is said to be preparing a new iPad Pro, redesigned entry-level MacBook Pro per Bloomberg. SYM buys private ARMS Innovations as it expands from warehouse automation to AI-powered operational intelligence; terms not disclosed. CTSH and Domyn Announce Strategic Partnership to Deliver Sovereign AI Solutions Across EMEA.
• In internet, GOOGL shares are lower in pre-market trading following last night’s: The European Union’s top court has upheld the record antitrust fine of $4.67 billion levied on Alphabet Inc.‘s Google over alleged anti-competitive practices.

In AI, the FT reports that OpenAI is discussing giving U.S. government 5% stake.

Mid-Morning Look

Friday, June 26, 2026

U.S. stocks are mixed again as the S&P 500 and Nasdaq are on track for weekly declines as chipmakers came under renewed selling pressure after a stellar run this quarter, with investors questioning high valuations and the repercussions of massive AI spending by companies. This morning the SPY traded below its 50dma support while the QQQs near its 50dma around $702.75 but have since bounced notably off lows. AI supply chain/semiconductors slipped after the New York Times reported that OpenAI is reportedly considering delaying its IPO until 2027 from a prior Q3/Q4 2026 target amid continued heavy spending, rising competition, and a less supportive equity backdrop, raising fresh questions around the pace of AI infrastructure investment. Separately, a report in The Information said OpenAI will reportedly roll out GPT-5.6 in phases, with select customers receiving early access, following requests from Washington amid growing scrutiny of advanced AI model releases. Other concerns remain inflation and rate hikes after data Thursday showed U.S. inflation (PCE) rose above 4% in May for the first time in three years, boosted by higher energy prices, keeping the possibility of a Fed rate hike alive.

The Dow Jones Industrial Average comes into the day at all-time highs 9extending gains early), boosted lately by shares of CAT, financials and healthcare while Smallcaps have held up very well. Overnight, President Trump said the Strait of Hormuz was open and that the US would buy wheat, corn and soybeans with Iranian funds, but the bounce was short-lived as Asian markets tumbled (Nikkie, Shanghai, Kospi) as tech sentiment soured. Bitcoin slips back below $60,000 this week as U.S. stock futures fall driven by losses in tech stocks (Bitcoin reached a 21-month low of $58,075 Thursday).

A key item today, The FTSE Russell indices will undergo their semi-annual rebalancing after markets close today. The rebalancing will impact $6 trillion of active and passive assets under management benchmarked to the major Russell indices, according to strategists at JPMorgan Asset Management. The event will result in lots of companies moving between indexes. Most notably, SpaceX is among those set to be added to the Russell 1000. Updated indices will go live Monday. Overall, 43 companies are expected to graduate from the Russell 2000 index of small-cap stocks to the Russell 1000 large-cap index.

• University of Michigan surveys of consumers 1-year inflation outlook final June 4.6% vs prelim 4.6% and final May 4.8% while 5-year inflation outlook final June 3.3% vs prelim 3.4% and final May 3.9%.

• In Chemicals: German chemicals group Evonik Industries (EVKIY) raised its full-year profit outlook after posting Q2 results that beat expectation; now sees 2026 adj EBITDA between EU2.0B ($2.28B) and EU2.2B, up from a previously forecast range of EU1.7B-2B; said Q2 adj EBITDA is expected to come in at between EU600M-650M, above views of about EU567M, driven by higher volumes and prices as well as ongoing cost cuts. Shares of US related comps include DD, EMN, ASH, HUN, CBT. FUL was upgraded to Overweight at JP Morgan as the firm thinks lower oil prices and the opening of the Strait of Hormuz are likely to minimize or lower H.B. Fuller's raw material cost pressure in 2027.
• In Aerospace: SPCX told investors that it plans to launch a new Starlink mobile service for U.S. consumers, the Financial Times reported, citing people familiar with the matter. SpaceX president and COO Gwynne Shotwell told investors during an IPO roadshow that the group was considering launching a Starlink retail product. The company could build its own terrestrial US mobile network. The move would require Starlink to sell mobile contracts to individual customers. RKLB shares bounced after NASA selected Rocket Lab to provide the launch service for both the agency’s PolSIR (Polarized Submillimeter Ice-cloud Radiometer) and Total and Spectral Solar Irradiance Sensor-2 (TSIS-2) missions.

• APOG +14%; on results as Q1 EPS $0.57 vs. est. $0.45 and revs fell -1% y/y to $342.68M but topped ests $333.8M; reaffirmed fiscal 2027expectce and expects Kalwall acquisition to close in July; said overall net sales declined due to lower volume, with higher material and freight costs impacting margins.
• CROX +5%; was upgraded to Overweight from Neutral and raised to $150 saying its North America DTC inflected to MSD in Q126 (best since Q224), and compares ease remainder of the year, Heydude is seeing green shoots in DTC, EPS estimates are upwardly biased.
• FCEL +20%; was upgraded to Buy at Jefferies with $24 tgt after Fit Energy data center deal saying the setup has materially shifted from "show me" to executing on visible backlog, while a deep valuation discount to BE creates an asymmetric entry point.
• INFQ +7%; initiated at Outperform and $20 tgt at Wedbush saying it is the only company commercializing the entire neutral-atom stack across Computing, sensing, and software from one shared technology core, and the only publicly traded neutral-atom pure-play.
• RKLB +4%; shares bounced after NASA selected Rocket Lab to provide the launch service for both the agency’s PolSIR (Polarized Submillimeter Ice-cloud Radiometer) and Total and Spectral Solar Irradiance Sensor-2 (TSIS-2) missions.

• CAPR -13%; after the U.S. FDA scheduled an advisory committee meeting to discuss the company’s marketing application for Deramiocel, a treatment targeting Duchenne muscular dystrophy.
• MSTR -2%; on track for its lowest level in more than two years. The stock slumped about 8% Thursday and comes into Friday with a seven-day losing streak, its worst seven-day losing streak since November 2022.
• OMER -18%; shares fell after saying the European Medicines Agency's key panel issued a negative opinion on its application for its drug narsoplimab to treat transplant-associated thrombotic microangiopathy (TA-TMA); OMER to request a re-examination of the opinion and review by an independent expert group.
• ON -19%; agreed to be acquire SYNA in an all-stock transaction, representing a total enterprise value of approximately $7B; SYNA shareholders to receive 1.35 shares of onsemi for each Synaptics share held.
• SFTBY -8%; shares of Softbank tumbled following NYT report that OpenAI is considering pushing its highly anticipated public debut into next year; potential postponement threatens to delay a massive liquidity event for the company's major financial backers.

Closing Recap

Wednesday, July 01, 2026

On the heels of a +15% quarter for the S&P 500 and a +21% quarter for the Nasdaq, the best since 2Q 2000, futures faded overnight.  NKE earnings didn’t help, but the stock was off less than 4% early and wasn’t a market mover.  Some investors likely are checking out early for the long holiday weekend, so the next couple days could be slow.  Then again, the Fed’s Warsh was out today noting prices are too high, inflation risks have come down and anyone who thought the Fed would be happy with inflation above 2% is going to be disappointed.  We certainly did not get a bounce on that last comment but most of his comments were consistent with his prior statements and perhaps less hawkish than feared and by mid-morning stocks had begun to stabilize. 

Early breadth favored advancers by 6:5 as small caps outperformed with IWM (+0.15%) versus SPY (-0.02%) and QQQ (-1.04%).  SPY breadth favoring advancers by 2:1 while QQQ breadth favoring advancers by 13:8. Sector performance had a slight positive bias with Communications (+3.18%), Financials (+1.70%) and Consumer Discretionary (+1.07%) outperforming among S&P sector ETFs, while Energy (-0.59%), Utilities (-0.67%) and Technology (-2.44%) paced the underperformers with 7 sectors gaining versus 4 declining. Sentiment, as measured by today’s Fear & Greed Index, remained at Fear with a 32/100 versus last week’s 25 (Extreme Fear) and still well below last month’s 56 (Greed).

While S&P futures turned green by late morning, the Nasdaq trailed despite an 11% gain in META and positive performance in most of the other mega caps apart from NVDA and AVGO.  Little changed through most of the afternoon with the S&P futures holding on to small gains, while the Nasdaq remained soft, but the underlying large-cap indices all closed lower in the end.  We won’t have any market-moving names reporting earnings tonight or tomorrow morning, so all eyes will be on US Nonfarm Payrolls tomorrow to steer stocks into the holiday long weekend.

• MBA Mortgage Applications 0.0% vs prior 1.0%
• ADP Private Payrolls for June 98k vs forecast 120k and prior 122k
• S&P Global Manufacturing PMI for June 53.9 vs forecast 55.7 and prior 55.7
• Construction Spending M/M for May 0.1% versus forecast 0.1% and prior 0.4%
• ISM Manufacturing PMI for June 53.3 versus forecast 53.9 and prior 54.0
• Weekly DOE Inventory Data 3.775M bbl draw versus forecast 4.5M bbl draw

• WTI crude futures eased overnight and never staged much of a rally.  Between headlines indicating OPEC+ is likely to raise output quotas at the Sunday meeting, a lower-than-expected weekly inventory draw and a relatively benign day or Iran headlines, there really was no significant catalyst to get buyers interested.  While US crude stocks dipped to the lowest level since 2018, concerns of future Fed hikes impacting demand likely offset this for now.  August futures settled -$0.92/bbl, or -1.32%, at $68.58.

Sector News Breakdown

Consumer

Retail, Consumer Staples & Restaurants:

• In online retail, GOOGL is to pay the equivalent of approximately SEK 14.3B in antitrust damages to KLAR-owned Pricerunner. EL was added to Goldman Sach’s “US Conviction List.” BBBY announced they have acquired TwoPonds For 7.2M BBBY Shares Worth ~$42.3M. BABA and AUS Merchant Services agree to pay $600M to resolve allegations that they failed to prevent illegal sales of pharmaceuticals.
• In retail, KR announced an agreement to acquire private Giant Eagle for $1.65B including $1.25B cash and $400M liabilities. KO and MAR announced the phased rollout of Coca-Cola brands in Marriott Hotels began today. NIQ completed acquisition of Flywheel's China eCommerce business. NKE shares crossed from red to green this morning despite last night’s lackluster earnings report, seller fatigue? Shares of WMT were lower after a bearish note from a Midwest research boutique. Barron’s reports that Zyn’s new ‘Lower Risk’ label could light up nicotine pouches sales (PM ).
• In staples, GIS shares were higher by almost 10% following an EPS & sales Q4 earnings beat.
• In leisure, TKO announced that they successfully staged first-ever WWE and UFC doubleheader in Saudi Arabia and Azerbaijan.

Autos, Leisure, Gaming & Lodging:

• In autos, MBGL completes separation from SPGI and begins trading on the NYSE as a global leader in automotive data & analytics. Shares of ALSN edged higher following announcement the co. would join the S&P MidCap 400. MU and GM announced a Strategic Customer Agreement (SCA) to secure a long-term, reliable supply of memory and storage platforms critical to GM's vehicle production and delivery at-scale.
• TSLA shares moved upward after Spain reported new Tesla registrations climbed 29.8% YoY in Jan-June while EVs as a whole climb 37.9% per ANFAC. BYDDY delivered 557,090 EVs in Q2, putting it on track to overtake TSLA as the world's top EV seller. PSNY shares rose following completion of $640M debt-to-equity conversions. NSANY cut costs on Mexico-made cars to mitigate 25% tariffs. STLA announced cumulative global deliveries will reach over 1.5M units as of end of June. GM announced Q2 U.S. deliveries 714,896 units, down 4.2% and weak EV sales.
  TM North America: reported June 2026 U.S. sales of 212,793 vehicles.

Energy

• In solar and power generation, NXT was added to Goldman Sach’s “US Conviction List.”
  NRGV announced an amendment to its AR convertible debentures securities purchase agreement.
• In oil and gas, shares of SOC regained some of yesterday’s -55% loss after announcing a 32.5M share stock offering. NGG’s National Grid Ventures unit will acquire a 35% stake in power solutions provider Joulent For $1.75B. NUAI shares fell after announcing the appointment of Charlie nelson as CEO effective July 1, 2026.

Financials

Banks, Brokers, Asset Managers:

• In banking, WFC was added to Goldman Sach’s “US Conviction List.” RMBI announced completion of merger with the Farmers Bancorp of Frankfort, Indiana. New IPO ITG, priced at $16, opens at $18 & trades to $17 RANGE AFTER.
• In SPACs, CEPO shares popped up after announcing the postponement of shareholder meeting to 10:00 am on July 10, 2026.
• In financial technology, FDS reported Q3 earnings: Adj. EPS $4.53 beat est $4.46 and Sales $622.918M beat est $618.248M; despite the double-beat shares declined on flat guidance and lowered margins. ICE and Nativx to launch energy-normalized compute futures contracts. DB says tokenized cash and collateral could transform financial markets by enabling 24/7 trading, near-instant settlement, and more efficient funding. Finance app network maker Plaid is said to consider US IPO.
• In investing, GS’s Goldman Sachs Private Credit Corp said they believe we are entering period of "meaningful dispersion" among private credit managers in an SEC filing. HLNE holds final close of sixth direct equity fund, raising $3.8B in and alongside the fund. IBKR reports brokerage metrics. and other financial information for June 2026; 5.269M daily average revenue trades, up 53% YoY and up 6% MoM. HOOD announces availability of new perpetual futures referencing commodities, ETFs, FX In European Union; accelerates global expansion with Robinhood Chain Mainnet, Stock Tokens, agentic trading & new suite of defi products; planning to launch crypto in U.K. soon. The head of BLK's private credit fund (TCPC) is in the process of leaving the firm after months of losses on soured loans and a US regulatory probe into the unit's valuation practices.

Bitcoin, FinTech, Payments:

• TONX shares lifted after announcing that they have entered a Rule 10b5-1 trading plan to support its $250 stock buyback plan. Shares of TOST moved slightly higher after it was announced they would replace BLD in the S&P 400 on 7/1. TW announced the successful completion of a landmark real-time transaction involving tokenized U.S. Treasuries. Binance failed to secure an EU license after regulators raised concerns over its history of financial-crime compliance.

Insurance & Services:

• DOCN showcases AI assistants and agents at momentum London 2026 to power the next era of agreement work and  introduces Iris AI Engine for agreements.

REITs:

• SITC announced it had sold its ground leasehold interest and all other interests in The Pike Outlets in Long Beach, California, for $50M in cash, according to a company statement.
  Net proceeds after adjustments for prorations, allocations, leasing maintenance, and other credits were approximately $46.5M.

Healthcare

Biotech & Pharma:

• ATLN’s Circle8 unit was awarded $175M contract extension from the Dutch Ministry of Infrastructure. RHHBY announced second digital tech hub in India, expanding global tech hub network to Hyderabad. NVO’s wegovy® is now accessible to eligible Medicare beneficiaries Living with obesity through Medicare GLP-1 Bridge. CANF shares soared after announcing Phase 2A pancreatic cancer study with namodenoson achieves primary safety endpoint and demonstrates durable survival outcomes in advanced disease.
• BBIO raised $1B in Preferred equity to accelerate present and upcoming launches. HROW shares were higher after announcing the commercial launch of BYOOVIZ(R) (ranibizumab-nuna), an FDA-approved biosimilar referencing LUCENTIS(i) (ranibizumab) and developed by Samsung Bioepis Co., Ltd. TNDM shares gained after announcing the launch of T:slim x2 insulin pump compatibility with ABT Freestyle Libre 3 Plus Sensor in five international markets. RCUS shares dropped modestly after announcing says Nature study links casdatifan-driven EPO suppression to improved outcomes in advanced kidney cancer. MRK scraps a Phase 2 Alzheimer's asset from partner Neuphoria per Endpoints. RGC is up 30%+ on much higher than usual volume in what appears to be a short squeeze situation according to desk chatter despite a small short interest ratio.
•  White House adds pandemic response staff as Ebola cases climb. Sharers of TARS fell after Culper Research published a short report. The FDA approves ABT’s HIV combo next assay under 510(k) bk261345 on June 29, 2026, per the FDA website.

Healthcare Services & MedTech movers:

• A launched AI-driven analysis module for Agilent Xcelligence RTCA Esight. GH shares rally after UNH’s UnitedHealth medical policy publication says they will cover colorectal cancer.

Industrials & Materials

Transports

• AIOT announced a new $30M stock repurchase program. UBER restructures AI data labeling division removes senior executives.

Aerospace & Defense

• KRMN was added to Citi’s “90-Day Upside Catalyst Watch List.” GOGO lifted higher after announcing that the FAA granted STC for Galileo HDX installation on Gulfstream G650, G650ER. Shares of LMT were higher following an upgrade from Citigroup.

Materials, Metals & Mining

•  ALOY announced that Robert Winspear resigns as CFO effective June 24, 2026 and appoints Craig Cunningham as CFO. MSM shares moved higher after the company reported better-than-expected Q3 earnings this morning.

Technology

Internet, Media & Telecom

• In media, SSTK shares fell sharply after GETY’s board moved to abandon the planned merger with Shutterstock, citing a U.K. CMA clearance condition tied to divesting Shutterstock’s editorial business. OPTU shares fell sharply after their subsidiary CSC Investments II said they expect to buy 120M Optimum Class A shares from 254,956,213 tendered at $2.50/share in $300M tender offer. BRSL shares gained after signing a five-year exclusive extension with SONY’s Sony Pictures for Ghostbusters Lottery games. Shares of FUBO rose and ADEA fell after Adeia initiated patent infringement litigation against FUBO alleging FUBO infringes four U.S. patents in Adeia's Media IP portfolio. META has named its chief marketing officer, Alex Schultz, as its new chief data officer, Schultz told Axios. Shares of BSP, an Italian technology company that bought up brands including AOL, Eventbrite and Vimeo, gained 30%+ in its first day of trading.
• In advertising, WPP announced expansion plans for WPP Enterprise Solutions, its global business unit for AI-driven transformation.

Hardware & Software movers:

• MSFT to cut under 2.5% of workforce in latest layoffs, Business Insider reports, impacting thousands of roles, including sales and consulting, as ​well as jobs at the Xbox Gaming division. Shares of beaten down software names NOW and CRM rebounded following upgrades from Guggenheim on overblown AI fears and valuation.
• The US’s lifting of restrictions on Anthropic’s Claude Fable 5 and Mythos 5 models moved cybersecurity names such as CRWD and PANW higher as the prospect of more demand heightened. MacRumors reports AAPL has reportedly cut iPhone 17 lineup production. SPCX has developed a prototype for a handset-like device designed to reshape how humans interact with artificial Intelligence that SpaceX has shown investors recently per the WSJ, using a QCOM Snapdragon chipset (Elon Musk later denied the WSG report).
• DT shares rose following announcing board appointments following constructive engagement with holder Starboard.
• SONY announces PlayStation will end physical Disc production for new games starting January 2028, to be sold digitally afterwards.
• In AI and cloud computing, Bloomberg reported (unconfirmed) that META is building a cloud business to sell excess AI compute; The internal initiative is called Meta Compute. The plans being considered: AI model access hosted on Meta infrastructure, similar to AWS Bedrock Raw Ai compute capacity, closer to Coreweave with developer access to Meta’s data Centers, chips, and models. META shares rose on the news while sharers of co’s such as CRWV and NBIS fell.

Semiconductors:

• HIMX announced Investee investment to be bought for $80M in cash, estimates pre-tax gain of $23-$24M upon closing. Shares of memory-related chip stocks MU, SNDK, WDC and STX are trading lower amid profit-taking following the industry-wide rally for H1 2026.

Street Recommendations

Thursday, July 2, 2026

ALEMBIC GLOBAL

• DOW Alembic Global analyst Hassan Ahmed lowered the firm's price target on Dow Inc. to $45 from $50 and keeps an Overweight rating on the shares.

BARCLAYS

• DAR Barclays analyst Theresa Chen raised the firm's price target on Darling Ingredients to $62 from $58 and keeps an Equal Weight rating on the shares. The firm sees a "constructive" Q2 backdrop for the company. Darling's Diamond Green Diesel unit will likely continue to benefit from the "supportive" policy environment along with solid utilization and capture tailwinds, the analyst tells investors in a research note.
• STZ Barclays analyst Lauren Lieberman lowered the firm's price target on Constellation Brands to $139 from $170 and keeps an Equal Weight rating on the shares. The firm updated the company's model post the fiscal Q1 report. It views Constellation's guidance as reasonable but sees limited visibility.

BENCHMARK

• DDOG Benchmark analyst Yi Fu Lee raised the firm's price target on Datadog to a "Street-high" $330 from $260 and keeps a Buy rating on the shares. Execution continues on the technology product-led motion front, as confirmed by detailed customer and partner ecosystem on the ground checks at Datadog that were "excellent," the analyst tells investors. The firm concludes that Datadog is competitively well positioned against peer leaders of the observability platform space.

BERNSTEIN

• TSN Bernstein analyst Alexia Howard lowered the firm's price target on Tyson Foods to $63 from $72 and keeps a Market Perform rating on the shares. Since last quarter's preview, the U.S. cattle supply has remained under pressure as the decline in headcount continues and the spread of New World screwworms keeps the borders closed, the firm says. Bernstein believes we may be seeing the first green shoots of herd rebuilding as heifer slaughter rates have slightly lowered, but remain above the threshold for a definitive rebuild cycle. The firm expects the Beef business to remain unprofitable and for segment margins to decline even further in the second half of 2026.

BOFA

• STZ BofA analyst Peter Galbo lowered the firm's price target on Constellation Brands to $145 from $152 and keeps an Underperform rating on the shares. The firm raised its FY27 EPS estimate to $11.70 from $11.57, primarily reflecting the Q1 EPS beat, but adds that it thinks the shipment build in Q1 is likely to reverse over the remainder of the fiscal year. The stock is "likely stuck in limbo until topline trends reaccelerate," the analyst tells investors.
• PPC BofA analyst Peter Galbo lowered the firm's price target on Pilgrim's Pride to $30 from $37 and keeps a Neutral rating on the shares. The firm updated estimates for the June quarter for protein producers to account for the latest USDA and third-party data.
• CAKE BofA analyst Sara Senatore raised the firm's price target on Cheesecake Factory to $79 from $66 and keeps a Neutral rating on the shares. The firm applies a higher relative multiple to reflect casual dining restaurant peer multiple expansion.

CITI

• DD Citi analyst Patrick Cunningham raised the firm's price target on DuPont to $170 from $168 and keeps a Buy rating on the shares ahead of the Q2 report. The firm believes easing Middle East tensions and lower crude prices will drive price/cost for DuPont.

GOLDMAN SACHS

• AAL Goldman Sachs analyst Catherine O'Brien raised the firm's price target on American Airlines to $15 from $10 and keeps a Sell rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.
• ALGT Goldman Sachs analyst Catherine O'Brien raised the firm's price target on Allegiant Travel to $142 from $125 and keeps a Buy rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.
• ALK Goldman Sachs analyst Catherine O'Brien raised the firm's price target on Alaska Air to $69 from $58 and keeps a Buy rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.
• DAL Goldman Sachs analyst Catherine O'Brien raised the firm's price target on Delta Air Lines to $116 from $80 and keeps a Buy rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.
• JBLU Goldman Sachs analyst Catherine O'Brien raised the firm's price target on JetBlue to $4.50 from $3.50 and keeps a Sell rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.
• UAL Goldman Sachs analyst Catherine O'Brien raised the firm's price target on United Airlines to $162 from $131 and keeps a Buy rating on the shares. The firm increased estimates in the airlines group citing stronger revenue trends and lower fuel prices. Strong demand momentum at the start of the year has continued despite significant fare increases beginning in March to offset higher fuel prices, the analyst tells investors in a research note.

HSBC

• ADBE HSBC analyst Stephen Bersey upgraded Adobe to Buy from Hold with a price target of $308, up from $282. The firm upgraded the shares after revaluating the company's risk associated with its AI-powered competitors. Adobe maintains strong revenue growth even though AI design tools were some of the first major AI applications available in the market, the analyst tells investors in a research note. HSBC believes the company's platform has "proved to be sticky" due to user workflow familiarity and new AI-powered features being embedded. As such, the firm thinks the market is overestimating the adverse impact of AI-based design tools on Adobe's business. The stock's reward now outweighs risks, contends HSBC.

JPMORGAN

• META JPMorgan analyst Doug Anmuth says Meta Platforms shares rallied 9% yesterday following a Bloomberg report indicating the company is developing plans for a cloud infrastructure business to sell access to its compute and models to third party customers. Meta is under pressure to monetize AI beyond advertising, and providing access to its infrastructure would generate incremental revenue and meaningful returns, the analyst tells investors in a research note. JPMorgan estimates one gigawatt of capacity could generate $20B of annual revenue, and several dollars of earnings per share. This would be "highly additive to Meta's current AI product efforts," the firm contends. However, JPMorgan would much prefer Meta develop core AI products, leverage them over its base of 4B users, and require "massive" compute for its own inference rather than selling access to its infrastructure. "What this means for forward capex is unclear," it says. JPMorgan keeps a Neutral rating on Meta shares.
• ARCC JPMorgan analyst Richard Shane lowered the firm's price target on Ares Capital to $18.50 from $19 and keeps an Overweight rating on the shares. The firm adjusted targets in the business development company group as part of a Q2 earnings preview. JPMorgan remains cautious on the space citing credit headwinds, net asset value marks, and dividend coverage. "While we expect a steadier tone, we would not characterize the backdrop as an all-clear," the analyst tells investors in a research note.
• MFIC JPMorgan analyst Richard Shane lowered the firm's price target on MidCap Financial to $9.50 from $10 and keeps a Neutral rating on the shares. The firm adjusted targets in the business development company group as part of a Q2 earnings preview. JPMorgan remains cautious on the space citing credit headwinds, net asset value marks, and dividend coverage. "While we expect a steadier tone, we would not characterize the backdrop as an all-clear," the analyst tells investors in a research note.
• TSLX JPMorgan analyst Richard Shane lowered the firm's price target on Sixth Street to $16.50 from $17.50 and keeps a Neutral rating on the shares. The firm adjusted targets in the business development company group as part of a Q2 earnings preview. JPMorgan remains cautious on the space citing credit headwinds, net asset value marks, and dividend coverage. "While we expect a steadier tone, we would not characterize the backdrop as an all-clear," the analyst tells investors in a research note.

KEYBANC

• MSM KeyBanc analyst Ken Newman raised the firm's price target on MSC Industrial to $145 from $132 and keeps an Overweight rating on the shares. Following MSC's Q3 results, the firm is raising its FY26 and FY27 estimates, and introducing new FY28 estimates. KeyBanc thinks MSC remains in the early innings of benefiting from a cyclical rebound in organic volumes while simultaneously leveraging actions to streamline its cost structure. As a result, it views MSC as having one of the best "coiled springs" in the firm's distribution coverage, and sees support for bull case EPS power of about $8/share in FY28 should cycle conditions continue to ramp.

MORGAN STANLEY

• STZ Morgan Stanley analyst Dara Mohsenian lowered the firm's price target on Constellation Brands to $158 from $183 and keeps an Equal Weight rating on the shares. Constellation reported Q1 upside and a June beer depletion rebound, but left fiscal year guidance unchanged, notes the analyst, who cites long-term industry challenges for the firm's unchanged Equal Weight rating.
• WLK Morgan Stanley analyst Vincent Andrews lowered the firm's price target on Westlake to $92 from $106 and keeps an Equal Weight rating on the shares. The firm updated estimates for Westlake ahead of the company's Q2 report.

PIPER SANDLER

• ABR Piper Sandler analyst Crispin Love lowered the firm's price target on Arbor Realty to $5.50 from $8 and keeps an Underweight rating on the shares. The mortgage environment has remained challenging, which is leading the firm to favor agency focused names going into the quarter versus the originators. 30-year mortgage rates remain elevated in the 6.50% range and Piper believes there will be little in the way of positive news on the mortgage origination front from management teams.
• NLY Piper Sandler analyst Crispin Love raised the firm's price target on Annaly Capital to $25 from $24.50 and keeps an Overweight rating on the shares. The mortgage environment has remained challenging, which is leading the firm to favor agency focused names going into the quarter versus the originators. 30-year mortgage rates remain elevated in the 6.50% range and Piper believes there will be little in the way of positive news on the mortgage origination front from management teams.
• PFSI Piper Sandler analyst Crispin Love lowered the firm's price target on PennyMac Financial to $106 from $112 and keeps an Overweight rating on the shares. The mortgage environment has remained challenging, which is leading the firm to favor agency focused names going into the quarter versus the originators. 30-year mortgage rates remain elevated in the 6.50% range and Piper believes there will be little in the way of positive news on the mortgage origination front from management teams.
• RWT Piper Sandler analyst Crispin Love lowered the firm's price target on Redwood Trust to $5.50 from $6.50 and keeps a Neutral rating on the shares. The mortgage environment has remained challenging, which is leading the firm to favor agency focused names going into the quarter versus the originators. 30-year mortgage rates remain elevated in the 6.50% range and Piper believes there will be little in the way of positive news on the mortgage origination front from management teams.

ROTH CAPITAL

• FC Roth Capital analyst Jeff Martin raised the firm's price target on Franklin Covey to $25 from $22 and keeps a Buy rating on the shares. Franklin Covey is expected to return to growth in FY27, driven by strong client retention, accelerating services attachment to subscription sales, and continued client expansion under a revised go-to-market strategy, with North America Enterprise strength seen as the primary driver even if near-term guidance reductions weigh on the share price, the analyst tells investors in a research note.

TD COWEN

• SHEL TD Cowen analyst Jason Gabelman lowered the firm's price target on Shell to $107 from $110 and keeps a Buy rating on the shares. The firm adjusted targets in the oil majors space as part of a Q2 earnings preview. TD sees "pockets of opportunity" in the sector following the "rapid correction" in crude prices and equities. The firm favors Shell, Chevron and TotalEnergies into earnings season.
• AAL TD Cowen analyst Tom Fitzgerald raised the firm's price target on American Airlines to $24 from $20 and keeps a Buy rating on the shares. The firm adjusted targets in the airlines space as part of a Q2 earnings preview. TD remains "broadly constructive" on the stocks, assuming the industry hangs on to this year's price increases. Investors will likely need confirmation that the post-Labor Day price increases are holding and demand is still robust for shares to extend gains, the analyst tells investors in a research note.
• LUV TD Cowen analyst Tom Fitzgerald raised the firm's price target on Southwest to $53 from $47 and keeps a Buy rating on the shares. The firm adjusted targets in the airlines space as part of a Q2 earnings preview. TD remains "broadly constructive" on the stocks, assuming the industry hangs on to this year's price increases. Investors will likely need confirmation that the post-Labor Day price increases are holding and demand is still robust for shares to extend gains, the analyst tells investors in a research note.
• BKR TD Cowen analyst Marc Bianchi raised the firm's price target on Baker Hughes to $77 from $75 and keeps a Buy rating on the shares. The firm believes its base OFSE and IET businesses remain largely on track. IET orders are likely down from a strong 1Q, but still pacing in line or above the annual guidance midpoint.
• GIS TD Cowen analyst Robert Moskow raised the firm's price target on General Mills to $32 from $31 and keeps a Hold rating on the shares. The firm updated its model following its Q4 earnings beat and in-line guidance for FY2027. Cowen attributes the out-sized reaction in the shares to short covering and an over-abundance of pessimism from the buy-side ahead of the print rather than investors fundamentally turning positive.

TRUIST

• DE Truist analyst Jamie Cook raised the firm's price target on Deere to $812 from $759 and keeps a Buy rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• URI Truist analyst Jamie Cook raised the firm's price target on United Rentals to $1,421 from $1,209 and keeps a Buy rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• J Truist analyst Jamie Cook lowered the firm's price target on Jacobs to $149 from $150 and keeps a Hold rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• PH Truist analyst Jamie Cook raised the firm's price target on Parker-Hannifin to $1,269 from $1,147 and keeps a Buy rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• AME Truist analyst Jamie Cook raised the firm's price target on Ametek to $303 from $275 and keeps a Buy rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• CGNX Truist analyst Jamie Cook raised the firm's price target on Cognex to $71 from $61 and keeps a Hold rating on the shares. The firm adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Truist sees positive setup for Q2 earnings reports across the sector. Demand trends remain strong across the group, with continued support from secular growth tailwinds in power, data center, aerospace and defense, and infrastructure, the analyst tells investors in a research note.
• OMF Truist analyst Arren Cyganovich lowered the firm's price target on OneMain to $70 from $73 and keeps a Buy rating on the shares. Truist continues to expect credit to improve in the second half of 2026 as the remaining pre-tightening personal loans roll off, the analyst tells investors in a research note.

UBS

• CRNX UBS analyst Ashwani Verma initiated coverage of Crinetics with a Buy rating and $55 price target. The stock's 44% pullback since mid-January provides an attractive entry point, the analyst tells investors in a research note. The firm says Crinetics has "multiple catalysts from potentially best-in-disease pipeline drugs with high likelihood of success." UBS has the most conviction in the Phase 3 atumelnant for congenital adrenal hyperplasia, and models peak sales of $2.0B.
• DPZ UBS analyst Dennis Geiger lowered the firm's price target on Domino's Pizza to $375 from $425 and keeps a Buy rating on the shares. Domino's Pizza offers an attractive risk/reward profile, with opportunities to improve U.S. sales and continue gaining market share despite macro and promotional pressures, as consumer survey data points to strong brand affinity and value perception that could support better sales growth over time, the analyst tells investors in a research note.

WELLS FARGO

• META Wells Fargo analyst Ken Gawrelski raised the firm's price target on Meta Platforms to $767 from $765 and keeps an Overweight rating on the shares. The firm sees another quarter of robust ad growth and an in-line Q3 revenue guide. Wells expects reiteration of intention to spend aggressively on capacity for model and applications efforts, while likely framing opportunity to lease excess capacity. Further, the firm sees an improving second half of the year catalyst path.
• GIS Wells Fargo analyst Chris Carey raised the firm's price target on General Mills to $33 from $30 and keeps an Underweight rating on the shares. The firm notes General Mills bounced off lows as EPS re-calibration proved better vs feared, logical as inflation prospects have improved in most recent weeks. With share improvement is factored in guidance, share improvement is thus key, Wells argues.

WOLFE RESEARCH

• CVX Wolfe Research analyst Doug Leggate upgraded Chevron to Outperform from Peer Perform with a $210 price target.

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

• Earnings After the Close: AVAV CNXC

• China Composite PMI
• China NBS Manufacturing PMI

• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 9:00 AM ET                   Monthly Home Prices M/M for April
• 9:00 AM ET                   CaseShiller 20-City index for April
• 9:45 AM ET                   Chicago PMI for June
• 10:00 AM ET                 JOLTs Job openings for May
• 10:00 AM ET                 Consumer Confidence for June
• 10:30 AM ET                 Dallas Fed Services for June
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: NKE PRGS STZ

• Goldman Sachs Digital Assets Conference, 6/30, in London

• 7:00 AM ET MBA Mortgage Applications Data
• 8:15 AM ET ADP Private Payrolls for June
• 9:45 AM ET S&P Global Manufacturing PMI for June
• 10:00 AM ET                 Construction Spending M/M for May
• 10:00 AM ET ISM Manufacturing PMI for June
• 10:30 AM ET                 Weekly DOE Inventory Data

• Earnings After the Close: BSET FC GBX

• 8:30 AM ET                   Private Payrolls for June
• 8:30 AM ET                   Manufacturing Payrolls for June
• 8:30 AM ET                   Unemployment Rate for June
• 8:30 AM ET                   Average Hourly Earnings M/M for June
• 8:30 AM ET                   Weekly Jobless Claims
• 8:30 AM EST                 Continuing Claims
• 10:00 AM ET                 Factory Orders M/M for May
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 1:00 PM EST                 Baker Hughes Weekly rig count data

• Earnings After the Close: None

Friday July 3^rd

• U.S. stock markets are closed in observance of Independence Day

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