Early Look

Wednesday, August 19, 2026

U.S. futures are down slightly overnight, looking to snap the 3 day losing streak for major averages as a recent resurgence in oil prices and bond yields has once again raised the inflation concerns on Wall Street. The Nasdaq ended down 1.33% on Tuesday, while the S&P 500 fells -0.69% and Smallcap Russell underperformed down over -1.3%. The 30-year Treasury yield earlier touched 5.3371%, highest level since 2007 before paring back. Brent settles at $91.02 a barrel, highest close since July 24 and is higher again this morning. The move came as fears of an escalating Middle East conflict stoked inflation worries and weighed on stocks. Oil prices settled at their highest in more than three weeks after Iran said it would adopt a more offensive stance and the Strait of Hormuz would remain closed, while the United States ruled out extending a ceasefire. Retail earnings in focus this morning as shares of Lowe’s (LOW) slips after a mixed quarter and narrowed guidance while Target (TGT) Q2 results come in above consensus estimates.

In Asian markets, The Nikkei Index tumbled -2,134 points or 3.16% to 65,326, the Shanghai Index tumbled -95 points to 3,894, and the Hang Seng Index edged higher 23 points to 25,495. The Korean Kospi fell -69 points or 6.41% to 1,012. In Europe, the German DAX is down -14 points to 26,114, while the FTSE 100 is down -22 points to 10,705. Indian shares fell, with high crude oil prices and rising global bond yields weighing on appetite for risk assets globally as the Nifty 50 index has fallen for seven straight sessions, its longest losing streak in 11 months, dropping 2.1% over the period. The BSE Sensex dropped in six out of seven sessions, dipping 2.1%. On the day, the Nifty 50 slid 0.32% to 24,078.30 and the Sensex lost 0.42% to 76,909.68.

• The Dow Jones Industrial Average fell -116.38 points, or 0.22%, to 53,343.40
• The Nasdaq Composite dumped -355.20 points, or 1.33%, to 26,289.71
• The Russell 2000 Index declined -39.65 points, or 1.30% to 3,017.89

• 10:30 AM ET                 Weekly EIA Inventory Data
• 1:00 PM ET US Treasury to sell $13B in 20-year bonds

• Earnings After the Close: ARAY BILL ALVO BULL COTY NDSN TLX UFI WOLF

• Needham 7th Annual Virtual Semiconductor & Semicap 1x1 Conference, 8/19-8/20
• Piper California Medtech & Diagnostics Bus Tour, 8/18-8/20
• Seaport Global 15th Annual Summer Investor Virtual Conference, 8/18-8/19

• Estee Lauder (EL) Q4 adj EPS $0.39 vs. est. $0.32; Q4 revs $3.63B vs. est. $3.55B; sees FY27 adjusted EPS $3.06-$3.31, vs. consensus $3.18 while sees FY27 organic net sales growth of 3%-5% and raises FY27 adjusted operating margin view to 12.7%-13.5%; completed restructuring program, reducing 10,000 positions for operational efficiency
• La-Z-Boy (LZB) Q1 adj. EPS $0.43 vs. est. $0.49; sales $475.7Mm vs. est. $501.4Mm; adj. operating Income $18.7Mm vs est $22.58Mm; adj. operating margin 3.9%; positive written same-store sales; Q2 sales guidance $500Mm-$520Mm vs. est. $536.8Mm; Q2 adj. operating margin guidance 4.0%-5.5%.
• Lowe's (LOW) Q2 adj EPS $4.40 tops consensus $4.22 on revs $25.96B vs. est. $26.11B; Q2 comparable sales for the quarter increased 0.2%, driven by strong performance in Pro and home services sales; said Q2 online sales rose +15.7% y/y; narrows FY26 EPS view to $12.25 from $12.25-$12.75 (est. $12.45); narrows FY26 revenue view to $92B from $92B-$94B and narrows FY26 comps to flat from flat to up 2%
• Target Corp. (TGT) Q2 adj EPS $4.11 vs. est. $2.29; Q2 sales rose 5.3% y/y to $26.54B vs. est. $26.14B; Q2 comp sales rose +3.8% vs. est. +2.43%; Q2 operating income jumped 94.4% y/y to $2.56B helped by $994M in pretax refunds; Q2 Operating margin widened 4.4% to 9.6%; gross margin rate expanded 4.7 percentage points to 33.7%; raises FY EPS view to $9.90-$10.90 from prior $7.5-$8.50 and sees net sales growth around 5% vs. prior range of 4%.
• Toll Brothers (TOL) Q3 adj EPS $2.97 vs. est. $2.93; Q3 revs fell -8% y/y to $2.65B vs. est. $2.62B; Q3 net income fell -24.2% y/y to $280.1M; Q3 deliveries declined 10% to 2,662 homes; Q3 Home sales gross margin narrowed 1.7 percentage points to 23.9%; Q3 backlog edged down 2.2% to $6.24B; guidance reaffirmed for about $10.5B of home sales revenues, with adjusted home sales gross margin of 26.1%.

• Lyntris (LYNX) 17M share IPO priced at $17.50 as the defense contractor deal size was reduced to 17M shares of common stock from 24M shares of common stock and priced below the $19.00-$22.00 range.
• Mercury Systems (MRCY) Q4 adj. EPS $0.37 vs. est. $0.38; revenue $289.8Mm vs. est. $266.1Mm; adj. EBITDA $49.0Mm vs. est. $45.8Mm, backlog over $1.9B with $1.0B representing orders expected to be recognized as revenue within next 12 month.
• SQM Inc. (SQM) posted a Q2 net profit of $660M for the three months ended June, compared with estimates of $553.90M; Sales of lithium carbonate equivalent jumped 59% in the quarter; posted revenue of $2.47B during the quarter, higher than analyst estimates of $2.29B.

• Pershing Square (PS) was downgraded to Neutral/High Risk from Buy/High Risk at Citigroup to reflect price performance since May 2026, which has reduced total return potential over the next 12 months and balanced risk-reward.
• The S&P 500 Financials sector (BKX) had risen for 13 consecutive weeks, the longest such streak on record, according to BTIG strategist Jonathan Krinsky, but he warns that the group could be vulnerable to a pullback as September approached.

• Merck (MRK) and Moderna (MRNA) announce phase 3 interpath-001 trial of intismeran autogene plus Keytruda® met endpoints of recurrence-free survival (RFS) and distant metastasis-free survival (DMFS) in patients with completely resected Stage IIB-iv melanoma.

• IBM Corp. (IBM) successfully connected and cooled two modular cryogenic systems into a single environment below 15 millikelvin, designed to eventually link hundreds of quantum chips.
• IonQ (IONQ) announced a collaboration with Canadian Microelectronics Corporation, operating as CMC Microsystems. This collaboration integrates IonQ's commercial trapped-ion quantum computing systems into Canada's FABrIC Quantum Computing Sandbox.
• Keysight Technologies (KEYS) Q3 adj EPS $3.07 vs. est. $2.48; Q3 revs rose 36% y/y to $1.85B vs. est. $1.75B; guides Q4 EPS $3.34-$3.40 vs. est. $2.68 and revs $1.93B-$1.95B vs. est. $1.82B; Q3 operating margin rose 7.6 percentage points to 24.9% while orders increased 56% y/y to $2.09B.
• Nvidia (NVDA) had some small batches of its H200 chips allowed to enter mainland China, as Beijing tries to aid its leading Ai companies in the race to catch up with US rivals, the Financial Times reported. ByteDance and Tencent have each received about 10,000 H200 processors in recent weeks, while a few other Chinese tech groups could soon obtain approval for shipments of similar size
• Samsung (SSNLF) has raised the prices for some advanced contract chipmaking services by up to 15% due to strong demand, especially from Chinese customers - Reuters
• Samsung (SSNLF) plans to increase the number of floors at its new fab under construction in Pyeongtaek from the originally planned two to three, per Korean media. More specifically, the fabs being redesigned as three-story facilities are Pyeongtaek P5 Plants 1 and 2, which together will constitute the world’s largest semiconductor manufacturing facility at a single site.
• SK Hynix (SKHY) shares rise after announcing it would buy back and cancel 40 trillion won ($28.61 billion) ‌worth of treasury shares and allocate more than 50% ‌of free cash flow generated between 2025 and 2027 to boost shareholder returns.
• WhiteFiber (WYFI) announces $250M convertible senior notes offering

Mid-Morning Look

Wednesday, August 19, 2026

U.S. stocks bouncing notably this morning, looking to snap their 3 day losing streak as a spike in bonds (and subsequent pullback in Treasury yields) boosted markets after headlines that the U.S. Treasury increasing size of liquidity support buyback operations for longer-dated nominal coupon securities. The 30-yr yield went down about -9bps to 5.20% (off 5.337% Tuesday, its highest since 2007) and the 10-yr yield down -6bps to 4.64%. The pullback in yields boosted precious metal prices as gold and silver jump. As yields break out, the Treasury and Fed again used their various tools to suppress them and send the dollar lower while risk assets go higher. Healthcare (XLV) sector rises +3.7% to new all-time highs $176 along with Biotech (XBI) after MRK/MRNA data boosts industry. The US dollar slides as the euro hits around 1.1665 extending its latest run on the Treasury news. Technology (XLK) one of the few weak spots in the S&P 500 today, down -1.6%, while nearly every other sector is higher, as Wall Street has been rotating out of the AI builders/infrastructure and into the AI users.

There were lots of big individual stock stories today including: 1) retailers LOW, TGT, TJX all reporting earnings (results mostly beat, guidance mixed – more details below); 2) massive news in biotech space as MRNA/MRK shares surge after the two companies said a customized vaccine kept patients cancer-free for longer than standard treatments after melanoma skin cancers had been cut out (boosting the biotech/healthcare space); 3) MRVL jumps in semi space on GOOGL stake headlines while SKHY rises on buyback headlines as semis look to rebound after sliding on Tuesday; 4) EL shares jump on earnings in consumer staples space.

In trade news, President Trump announced a three-day pause on the planned 50% tariffs against Canada, citing progress toward a deal. The U.S.-Canada agreement is expected to include market access for U.S. goods, economic-security commitments and digital-trade alignment. Canada said implementation of the tariffs has been postponed through August 21 pending finalization of the agreement.

• MRNA +131%; as the company and MRK reveal their personalized mRNA cancer vaccine succeeded in Phase 3 slowing melanoma recurrence and spread with Keytruda; trial met its primary endpoint of recurrence-free survival and a key secondary endpoint of distant metastasis-free survival.
• MRVL +7%; after saying it issued GOOGL a warrant to buy a stake worth about $12.18 billion as part of a deal to help develop custom chips for the search giant (shares of AVGO declined on the headlines)
• NSC +3%; shares jumped as the U.S. Surface Transportation Board said it has resumed consideration of UNP’s proposed merger with the railroad, while stressing that the move does not signal approval of the $85-billion deal.
• PPC +13%; shares jumped after majority owner JBS made a new offer to buy the remaining stake it doesn't already own and delist the co. Brazil's JBS, which owns ~82% proposed a stock-for-stock deal, a different approach from a failed 2021 all-cash bid that was withdrawn after price issues.
• TEM +14%; shares jumped in sympathy with the MRK news primarily as a Precision Oncology/AI Diagnostics and data play. Moderna utilizes Tempus AI’s genetic and multimodal data platform primarily through an ongoing, expanded partnership with Tempus’ clinical partner, Personalis (PSNL
• TGT +6%; posted Q2 comp sales growth of 3.8% vs. estimates of 2.4%, with net sales of $26.54B beating the $26.14B consensus and adjusted EPS of $4.11 crushing the $2.29 estimate; raises FY EPS view to $9.90-$10.90 from prior $7.5-$8.50 and sees net sales growth around 5% vs. prior range of 4%.
• TOL +6%; as Q3 results beat, but partially mixed, though housing/mortgage names getting a boost as the Treasury intervenes overnight to lower bond yields; TOL reported a 3Q EPS beat last night, driven by a 16% HB EBIT margin and JV income, while Q3 revs fell -8% y/y to $2.65B vs. est. $2.62B.
• VIK +2%; posted Q2 revs rising 16.5% y/y to $2.19B beating the $2.14B estimate as adj Ebitda rose 18.2% y/y saying revenue growth was mainly driven by increased Capacity Passenger Cruise Days from fleet growth; advance bookings for 2026 season are $6.39B up 13% y/y same point.

• CIFR -6%; AI infrastructure sector broadly lower (WULF, IREN, HUT, HIVE, RIOT and others), getting hit as Tuesday's announcement in Pennsylvania that it is looking to place higher requirements on data center developers could slow project timelines (follows Texas in tightening Data Center rules).
• LZB -13%; shares tumble after Q1 written same-store sales inflected positive in the quarter (to +3%), but sales and EPS were below expectations given ongoing challenges in the industry; also issued Q2 sales and implied EPS guidance below consensus, pressured by continued investments
• MRCY -9%; posted quarterly results as Q4 adj. EPS $0.37 vs. est. $0.38; revenue $289.8Mm vs. est. $266.1Mm; adj. EBITDA $49.0Mm vs. est. $45.8Mm, backlog over $1.9B.
• NBIS -13%; as announces proposed private offering of $4.50B of convertible Senior notes saying proceeds to fund business growth, data center expansion, Ai Cloud development.
• TJX -1%; reported Q2 adj EPS of $1.22 beats by $0.03 and revenue rose 5.4% y/y to $15.18B, slightly beating by $20M and raises FY27 pretax profit margin view (to 12%-12.1%) and diluted earnings per share guidance; guided Q3 EPS $1.30-$1.32 vs. est. $1.35 while reaffirms comp sales view of +3%-4%.
• WYFI -22%; as the company unveiled a proposed private placement of $250M Convertible Senior Notes due 2032 under Rule 144A. Initial purchasers may buy up to an additional $37.5M of notes within 13 days of issuance.

Closing Recap

Wednesday, August 19, 2026

U.S. stocks finished modestly higher on a day where the big story was the U.S. Treasury saying it is at least doubling the maximum size of purchases of longer-dated nominal coupons in its program to buy back government debt, raising the cap from $2 billion to at least $4 billion per operation beginning Sept. 9. That news was welcomed by Wall Street as stock prices jumped along with a big rebound in Treasury prices, as yields pulled back notably from multi-year highs, leading to a rise in risk assets and precious metals/crypto. In stock news, technology (XLK) was the biggest laggard in the S&P along with financials (XLF) as banks slid all day. The data-center backlash is intensifying stateside as Pennsylvania became the latest state to impose strict rules on developers Tuesday (followed restrictions from Texas and New York recently) which weighed on data center plays. Healthcare (XLV) and Biotech (XBI) was the big winner today following as MRNA’s personalized mRNA cancer therapy, developed with MRK, reduced the risk of melanoma recurrence and distant spread in a late-stage trial when used in combination with Keytruda. Consumer Discretionary (XLY), materials (XLB) and Consumer Staples (XLP) rounded out the winners. Retailer earnings were in focus this morning with TGT, LOW, RTJX moving with WMT, BABA reporting tomorrow morning.

In trade news, Bloomberg reported the tentative trade agreement between the U.S. and Canada would cut tariffs on certain Canadian exports of steel and aluminum to 25%, citing people familiar with the matter. Details have yet to be finalized and are not anticipated to apply across the board, and different rates could apply to certain derivative products that include such metals, the authors note.

Interesting stats: 1) @Barchart noted on X, Stock Market Crash Hindenburg Omen Triggered. The Hindenburg Omen, an indicator that correctly detected the 1987 and 2008 stock market crashes, has triggered 15 times in the past 3 months for the $SPX. The record is 16 times, which was followed by a 19% dump.” 2) @Barchart also noted on X, “The number of days when the S&P 500 price and breadth move in opposite directions is on track to shatter the record.”

• Following the headlines, bonds jumped and yields fell as the 30-yr yield fell almost 10 basis points (bps) to around 5.187% (after hitting 19-yr highs of 5.337% the day prior), while the benchmark 10-yr yield fell -56bps to 4.64%. Separately, an $18B U.S. Treasury auction of 20-year bonds had steady demand (bit to over 2.53), as a global selloff of long-term government debt eased with the prospect of increasing buybacks with high yield of 5.204%, up from 5.163% in the July 22 tender.
• The U.S. dollar (DXY) was broadly lower as the USD/JPY came under renewed pressure after the U.S. Treasury Department expanded liquidity support measures. The unexpected Treasury buyback announcement may reflect growing concern over the long-end selloff. The announcement comes after a rally in JGBs ahead of a closely watched 20-year auction.
• Bitcoin extended recent gains rising over 6% to $68,650 as crypto surged ahead of President Donald Trump hosting crypto executives later in the day as U.S. regulators advance their framework for certain digital assets; Ethereum +9.25% nearing $2,100.

• Consumer Products: in beauty space, EL Q4 top/bottom line results topped consensus while forecast annual profit above consensus (sees FY27 adjusted EPS $3.06-$3.31 vs. consensus $3.18) while sees FY27 organic net sales growth of 3%-5% and raises FY27 adj operating margin view to 12.7%-13.5%.
• Discount Retailers: DLTR was upgraded to Hold and raise tgt to $135 from $85 as sees improved execution and potential upside from Dollar Tree’s multi-price strategy; Q2 rolling foot traffic increased 1.4% versus a 0.8% decline in Q1, with July traffic up 4.5%.
• Off Price Retail sector: TJX reported Q2 adj EPS of $1.22 beats by $0.03 and revenue rose 5.4% y/y to $15.18B, slightly beating by $20M and raises FY27 pretax profit margin view (to 12%-12.1%) and diluted earnings per share guidance and plans to increase store growth to 4% beginning in FY28; shares fell as guided Q3 EPS $1.30-$1.32 vs. est. $1.35 while reaffirms comp sales view of 3%-4% growth.
• Food sector: PPC shares jumped after majority owner JBS made a new offer to buy the remaining stake it doesn't already own and delist the co. Brazil's JBS, which owns ~82% proposed a stock-for-stock deal, a different approach from a failed 2021 all-cash bid that was withdrawn after price issues; several food related stocks surging today CPG, GIS, SJM, KHC among others.

• Homebuilder sector: Shares of U.S. housebuilders jump as Treasury yields retreat (KBH, DHI, LEN, etc.) TOL reported a 3Q EPS beat last night, driven by a 16% HB EBIT margin and JV income, as its higher-income buyer base offset the closing of more aged specs this quarter; Q3 revs fell -8% y/y to $2.65B vs. est. $2.62B; Q3 net income fell -24.2% y/y to $280.1M; Q3 deliveries declined 10%.
• Home Furnishing sector: LZB shares tumble after Q1 written same-store sales inflected positive in the quarter (to +3%), but sales and EPS were below expectations given ongoing challenges in the industry; also issued Q2 sales and implied EPS guidance below consensus, pressured by continued investments.

• Leisure sector: DOOO was upgraded from Hold to Buy at TDCowen as the firm forecast revenue growth of ~6% Y/y. The positive is strength in Year-Round (+18% Y/y) as Defender momentum/share gains continue, and a final inventory alignment (~$100mm) of wholesale-to-retail.
• Casinos & Gaming: Truist noted  latest LV Strip survey (LVS, WYNN, CZR, MGM) is showing a choppy Q3 after Q2 finished positive. A strong July is followed by a softer Aug/Sept which somewhat ties to Q2 earnings commentary and follows Truist's thesis of an improving but not "hockey stick" recovery. Truist's early read into Oct shows positive momentum with strong trends across all cohorts (even at Low-End).

• Utilities/Nuclear: Goldman Sachs said Tuesday’s announcement in Pennsylvania that it is looking to place higher requirements on data center developers could slow project timelines, but believe the actual impact on high-quality, large-scale data center developments will be minimal, with the primary burden falling on speculative, under-capitalized projects. Shares on TLN, NRG, and VST all fell sharply on the news, creating a buying opportunity said the broker.

• Crypto sector: shares of BLSH, CRCL, COIN, BMNR, MSTR and other crypto related names jumped today as President Trump hosted crypto executives as U.S. regulators advance their framework for certain digital assets. The SEC this week proposed long-awaited rules that would exempt certain Token offerings from securities regulations, making it easier for crypto companies to issue tokens and raise money.
• Insurance sector: Morgan Stanley upgraded shares of NP, TWFG to Overweight saying in P&C Insurance State of the Industry that while Q2 results showed overall strong margins, with continued growth deceleration due to intensifying competition, share price moves did not fully Align with fundamentals. The form upgrades NP and TWFG to Overweight due to differentiated growth profiles vs peers.
• Brokers & Exchanges: CME was downgraded to Hold from Buy at Deutsche Bank in Brokers, Asset Managers & Exchanges earnings recap saying while they remain constructive on many of the stocks in its coverage over a 12-month Horizon, many stocks in its coverage have substantially outperformed the market in recent weeks and now sees less upside potential to its price targets vs entering Q2 earnings.
• Fintech sector: JKHY delivered Q4 results and F2027 outlook is ahead of expectations as the beat was driven predominantly by stronger non-GAAP revenues in the Payments and Complementary segments, along with additional upside from deconversion revenues. FY2027 outlook is stronger vs. Consensus at the midpoint for non-GAAP revenues and implied adjusted operating income.
• Mortgage service sector: shares of RKT, COMP, ZG, OPEN and others saw early strength as Treasury yields fell amid Treasury intervention on long end of the curve.

• Healthcare Technology; TEM shares jumped in sympathy with the MRK news primarily as a Precision Oncology/AI Diagnostics and data play. Note Tempus has an expanded multi-year strategic collaboration with Merck focused on Ai-driven Precision Medicine, biomarker discovery, resistance mechanisms, and rational combinations using Tempus’s de-identified multimodal data + Lens platform/Workspaces. Also, Moderna utilizes Tempus AI’s genetic and multimodal data platform primarily through an ongoing, expanded partnership with Tempus’ clinical partner, Personalis (PSNL).
• More follow thru in MedTech/genomics: shares of PRME, RXRX, DNA also moved higher like TEM success validates the broader platform of personalized/individualized cancer vaccines that rely on tumor sequencing to identify patient-specific neoantigens, AI/computational prediction of immunogenic targets, and delivery via mRNA. This de-risks the approach and lifts sentiment across adjacent biotech names involved in precision oncology, AI-driven discovery, synthetic biology, genomics data, and gene/editing technologies—even if they are not direct partners or competitors in this trial.

• Aerospace sector: SPCX shares fell ahead of next IPO-related lock-up release tomorrow, Thursday, August 20, 2026, involving up to ~319M shares. SpaceX went public around June 11–12, 2026, at $135 per share. It uses a staggered lock-up. HONA was upgraded to Overweight at Morgan Stanley saying the company’s revenue growth is likely to be weaker than peers but its current valuation more than compensates for risks. Against a backdrop of robust commercial aerospace and defense demand, HONA's broad installed base and sizable Commercial Aftermarket and Defense & Space exposure should limit the risk that supply chain constraints alone translate into sustained negative growth.
• Transport sector: NSC shares jumped as the U.S. Surface Transportation Board said it has resumed consideration of UNP’s proposed merger with the railroad, while stressing that the move does not signal approval of the $85-billion deal. The board removed the proceeding from abeyance after determining that supplemental information submitted by the railroads was sufficient to resume the review process.
• Precious metal miners surged with CDE, AG, AEM, HL, FSM all rising more than 10% by midday given the jump in precious metal prices (gold/silver/palladium) after the surprise liquidity support announcement by the U.S. Treasury that knocked down bond yields and the dollar. Industrial metal names like CENX fell along with steel stocks NUE, STLD, CLF after Bloomberg reported the tentative trade agreement between the U.S./Canada would cut tariffs on certain Canadian exports of steel and aluminum to 25%.

• Hyperscalers: GOOGL raised A$5.5B ($3.89B) via its inaugural Australian Dollar debt issuance, according to a term sheet seen by Reuters; GOOGL raised the amount by issuing 3-, 5-, 10- and 20-year bonds, the term sheet showed. The company set the coupon at 6.9% for the longest tenor bond tranche, according to the term sheet.
• Telecom sector: CCOI was downgraded to Underweight at JP Morgan and cut tgt to $9 from $22 after another disappointing quarter, noting a slower wave-installation pace and softer revenue and EBITDA, and sees continued sales pressure for Cogent, driven in part by the runoff of legacy Sprint contracts.

• IT Services & Consulting: KEYS posted another beat and guidance raise, driven by AI infrastructure-related demand, and company now on track toward annualized EPS greater than $15 by YE27, a year earlier than prior forecast. WYFI shares fell as the company unveiled a proposed private placement of $250M Convertible Senior Notes due 2032 under Rule 144A. Initial purchasers may buy up to an additional $37.5M of notes within 13 days of issuance.
• Robotics sector: JD launches robotics strategy, plans ten‑billion‑yuan investment by 2028 to help 100 brands top 1 bln yuan sales; said it will focus on supply‑chain, services and technology to accelerate commercialization and scenario deployment of robotics.

• CBRS announced a new version of its server hardware that includes its dinner-plate-sized chips that it says will speed AI chatbot queries. CBRS unveiled the CS-4, claiming up to 30x faster than NVDA and AMD GPU setups while doubling the CS-3 and delivering 10x the throughput per watt. Cerebras makes AI hardware and chips that compete with Nvidia and targets the portion of AI called inference, the computing process of generating an answer in a chatbot such as Anthropic’s Claude.
• MRVL shares jumped after saying it issued GOOGL a warrant to buy a stake worth about $12.18 billion as part of a deal to help develop custom chips for the search giant.
• NVDA chips were in focus after reports that small batches of H200 processors — roughly 10,000 units each — have been allowed to enter mainland China for ByteDance and Tencent – Financial Times said.
• SKHY announced a massive shareholder return plan as the AI-memory leader plans to buy back and cancel up to KRW40T ($28.6B) of stock, while committing to return more than 50% of 2025-27 free cash flow to shareholders.

Street Recommendations

Wednesday, August 19, 2026

• COLL Barclays lowered the firm's price target on Collegium Pharmaceutical to $48 from $56 and keeps an Overweight rating on the shares. The firm reduced estimates post the Q2 report to reflect Nucynta pricing dynamics. However, Collegium's "higher-value" ADHD portfolio remains underappreciated at current valuation levels, creating an attractive entry point, the analyst tells investors in a research note.
• GPI Barclays analyst John Babcock lowered the firm's price target on Group 1 Automotive to $365 from $435 and keeps an Overweight rating on the shares. The firm remains constructive on the auto dealers and raised estimates post the Q2 reports. Investors are "engaging at right valuations, but seem largely on sidelines," the analyst tells investors in a research note.
• LAD Barclays raised the firm's price target on Lithia & Driveway to $415 from $360 and keeps an Overweight rating on the shares. The firm remains constructive on the auto dealers and raised estimates post the Q2 reports. Investors are "engaging at right valuations, but seem largely on sidelines," the analyst tells investors in a research note.
• PAG Barclays raised the firm's price target on Penske Automotive to $225 from $220 and keeps an Overweight rating on the shares. The firm remains constructive on the auto dealers and raised estimates post the Q2 reports. Investors are "engaging at right valuations, but seem largely on sidelines," the analyst tells investors in a research note.
• SAH Barclays analyst John Babcock lowered the firm's price target on Sonic Automotive to $87 from $92 and keeps an Equal Weight rating on the shares. The firm remains constructive on the auto dealers and raised estimates post the Q2 reports. Investors are "engaging at right valuations, but seem largely on sidelines," the analyst tells investors in a research note.
• KEYS Barclays raised the firm's price target on Keysight Technologies to $429 from $387 and keeps an Overweight rating on the shares. The company's fiscal Q3 results were strong with the wireline business driven by AI infrastructure demand, expanding use cases and increasing test intensity, the analyst tells investors in a research note. The firm says Keysight 's over $2B of orders in Q4 and wireline orders more than doubling year-over-year "highlights the robust demand."

• HD BofA analyst Christopher Nardone lowered the firm's price target on Home Depot to $407 from $412 and keeps a Buy rating on the shares. Higher Pro exposure should support continued outperformance for Home Depot despite a muted housing backdrop, with comps trending toward the high end of guidance and core results indicating continued market-share gains, although supply chain costs are pressuring margins and tariff refunds now provide a meaningful earnings benefit, the analyst tells investors in a research note.
• ZM BofA reinstated coverage of Zoom Communications with a Buy rating and $130 price target. The company is transitioning from a single product video meetings provider into a broader communications and work platform, the analyst tells investors in a research note. The firm believes Zoom's growth recovery is "durable." The company's product cycles can support mid-single-digit earnings growth, contends BofA.
• NOW BofA raised the firm's price target on ServiceNow to $150 from $130 and keeps a Buy rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• FIG BofA raised the firm's price target on Figma to $33 from $30 and keeps a Buy rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• WDAY BofA raised the firm's price target on Workday to $205 from $140 and keeps a Neutral rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• ADBE BofA raised the firm's price target on Adobe to $220 from $190 and keeps an Underperform rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• SNOW BofA analyst Koji Ikeda raised the firm's price target on Snowflake to $395 from $330 and keeps a Buy rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• GTLB BofA raised the firm's price target on GitLab to $45 from $38 and keeps a Neutral rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• AMPL BofA raised the firm's price target on Amplitude to $14 from $12 and keeps a Neutral rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.
• ZETA BofA analyst Matt Bullock raised the firm's price target on Zeta Global to $34 from $29 and keeps a Buy rating on the shares. Broad-based software multiple expansion, improving growth at select infrastructure names, and easing AI-disruption concerns are driving the re-rating, with estimates and fundamental views unchanged, the analyst tells investors in a research note.

• EVTL Canaccord lowered the firm's price target on Vertical Aerospace to $9 from $10.50 and keeps a Buy rating on the shares. The firm updated its model following Q2 results where Management provided some key operational updates on the business as it works toward Valo CDR.

• CRWD Cantor Fitzgerald analyst Jonathan Ruykhaver raised the firm's price target on CrowdStrike to $250 from $181 and keeps an Overweight rating on the shares reflecting the recent 4-for-1 stock split. Channel checks remain strong, with 58% of partners reporting results ahead of plan and continued endpoint share gains, but elevated valuation expectations mean an $8M+ annual recurring revenue beat and raise may be needed to sustain current share levels, the analyst tells investors in a research note.

• CRCT Goldman Sachs analyst Katherine Murphy assumed coverage of Cricut with a Sell rating with a price target of $4.50, up from $3.75. The rating is unchanged from Goldman's prior coverage. The firm sees limited upside to the stock relative to the rest of its hardware coverage and believes Cricut's current valuation does not reflect the magnitude of near-term demand headwinds from elevated PC costs and pressure on consumer discretionary spend.

• MD Jefferies downgraded Pediatrix Medical to Hold from Buy with a price target of $28, up from $27. The firm sees a more neutral risk/reward with the shares up 150% since its upgrade two years ago. Pediatrix's enhanced advance premium tax credit headwind will materialize at some point, capping the company's near-term earnings growth, the analyst tells investors in a research note.
• SJM Jefferies raised the firm's price target on J.M. Smucker to $140 from $129 and keeps a Buy rating on the shares. The firm says coffee remains a key driver for Smucker, with fiscal Q1 retail volumes recovering as pricing moderates and Bustelo and Folgers lead. The company's Uncrustables is also showing strong momentum, while Hostess stays pressured but is improving sequentially, the analyst tells investors in a research note. Jefferies believes coffee deflation and tariff laps will convert the company's sales headwind into a profit tailwind, driving margin expansion.
• HSAI Jefferies analyst Aaron Wang reiterates a Buy rating on Hesai with a $30 price target while initiating coverage of the Hesai-H shares with a Buy rating and HK$29.30 price target. The company's Q3 guidance implies a revenue growth acceleration in the second half of 2026 with full-year LiDAR shipment guidance remained at 3.0M-3.5M units, the analyst tells investors in a research note. The firm says Hesai's margin outlook remains resilient despite pricing pressure.

• NOK JPMorgan believes the market "has been too slow to react" to Nokia's revenue potential in AI and cloud. The company's order book points to 2027 and 2028 earnings estimates that consensus is not modelling, the analyst tells investors in a research note. Nokia has also gained share in internet protocol networks, adds JPMorgan. The firm believes Nokia will be able to line up component supply to "ramp up much more significantly" in 2027 and in 2028. Nokia remains a top pick at JPMorgan with an Overweight rating and $21 target price, offering 100% upside.
• KEYS JPMorgan raised the firm's price target on Keysight Technologies to $425 from $400 and keeps an Overweight rating on the shares following the earnings report. The company posted another beat and guidance raise, driven by AI infrastructure-related demand, the analyst tells investors in a research note. The firm says Keysight described customers as rapidly revising expectations higher, which is leading to record order growth.

• CRWD Mizuho raised the firm's price target on CrowdStrike to $240 from $175 and keeps an Outperform rating on the shares. The firm adjusted targets in the enterprise software group as part of a July earnings preview. Sentiment across software has improved Mizuho's channel checks have been positive, the analyst tells investors in a research note. The firm says AI adoption continues to climb while data modernization remains a "big positive trend."
• GTLB Mizuho raised the firm's price target on GitLab to $34 from $28 and keeps a Neutral rating on the shares. The firm adjusted targets in the enterprise software group as part of a July earnings preview. Sentiment across software has improved Mizuho's channel checks have been positive, the analyst tells investors in a research note. The firm says AI adoption continues to climb while data modernization remains a "big positive trend."
• OKTA Mizuho analyst Gregg Moskowitz raised the firm's price target on Okta to $145 from $125 and keeps a Neutral rating on the shares. The firm adjusted targets in the enterprise software group as part of a July earnings preview. Sentiment across software has improved Mizuho's channel checks have been positive, the analyst tells investors in a research note. The firm says AI adoption continues to climb while data modernization remains a "big positive trend."
• PANW Mizuho raised the firm's price target on Palo Alto Networks to $415 from $305 and keeps an Outperform rating on the shares. The firm adjusted targets in the enterprise software group as part of a July earnings preview. Sentiment across software has improved Mizuho's channel checks have been positive, the analyst tells investors in a research note. The firm says AI adoption continues to climb while data modernization remains a "big positive trend."
• SNOW Mizuho raised the firm's price target on Snowflake to $355 from $295 and keeps an Outperform rating on the shares. The firm adjusted targets in the enterprise software group as part of a July earnings preview. Sentiment across software has improved Mizuho's channel checks have been positive, the analyst tells investors in a research note. The firm says AI adoption continues to climb while data modernization remains a "big positive trend."

• BAND Piper Sandler raised the firm's price target on Bandwidth to $52 from $38 and keeps a Neutral rating on the shares. The firm notes Bandwidth is up over two times this year primarily on the potential around the Agentforce deal, the potential around Voice AI, the "even-year" re-acceleration, and the bounce in Communication Software as a group. With Piper's estimates moving higher, the firm raises its price target but would issue some caution given the risk-reward at these levels, especially looking at likely reported growth rates beyond this year.

• MCK RBC Capital analyst Ryan Halsted initiated coverage of McKesson with a Sector Perform rating and $845 price target. The firm believes the company's integrated model and specialty drug exposure position it well to navigate Inflation Reduction Act-driven revenue headwinds. However, the pharmacy benefit channel poses steerage risks and McKesson faces near-term challenges to prescription technology solutions segment income growth as GLP-1 prior authorizations are pressured by coverage reductions, the analyst tells investors in a research note.

• PANW Stifel raised the firm's price target on Palo Alto Networks to $415 from $330 and keeps a Buy rating on the shares. Palo Alto Networks is positioned for an upside Q4 print, with four of five Tier-1 partners above expectations, strong platform, CyberArk, AI, and 2H26 pipeline commentary, and potential upside across organic and inorganic growth, the analyst tells investors in a research note.
• ZS Stifel analyst Adam Borg raised the firm's price target on Zscaler to $200 from $175 and keeps a Buy rating on the shares. Zscaler is expected to deliver at least in-line Q4 results with potential 2% revenue and 0.5% annual recurring revenue upside, while reaffirming FY27 guidance, with AI security, Zero Trust, sales leadership changes, lower-end enterprise expansion, and the October Analyst Day key areas of focus, the analyst tells investors in a research note.

• OKTA Truist analyst Junaid Siddiqui raised the firm's price target on Okta to $165 from $120 and keeps a Buy rating on the shares as part of an off-cycle software earnings preview. The "setup appears constructive" as cyber spending remains resilient, the analyst tells investors in a research note. However, Truist says cyber budgets are becoming more concentrated around identity security, cyber resilience, AI governance, data security, and platform consolidation. The firm favors Rubrik and Sailpoint heading into earnings, saying both are positioned for "beat-and-raise quarters."
• PANW Truist raised the firm's price target on Palo Alto Networks to $435 from $375 and keeps a Buy rating on the shares as part of an off-cycle software earnings preview. The "setup appears constructive" as cyber spending remains resilient, the analyst tells investors in a research note. However, Truist says cyber budgets are becoming more concentrated around identity security, cyber resilience, AI governance, data security, and platform consolidation. The firm favors Rubrik and Sailpoint heading into earnings, saying both are positioned for "beat-and-raise quarters."
• IOT Truist raised the firm's price target on Samsara to $38 from $30 and keeps a Hold rating on the shares as part of an off-cycle software earnings preview. The "setup appears constructive" as cyber spending remains resilient, the analyst tells investors in a research note. However, Truist says cyber budgets are becoming more concentrated around identity security, cyber resilience, AI governance, data security, and platform consolidation. The firm favors Rubrik and Sailpoint heading into earnings, saying both are positioned for "beat-and-raise quarters."

• CRBG Wells Fargo analyst Wes Carmichael raised the firm's price target on Corebridge to $39 from $36 and keeps an Overweight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• EQH Wells Fargo raised the firm's price target on Equitable Holdings to $64 from $60 and keeps an Overweight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• MET Wells Fargo raised the firm's price target on MetLife to $109 from $101 and keeps an Overweight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• PRU Wells Fargo analyst Wes Carmichael raised the firm's price target on Prudential to $110 from $103 and keeps an Underweight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• RGA Wells Fargo raised the firm's price target on Reinsurance Group to $291 from $269 and keeps an Overweight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• VOYA Wells Fargo analyst Wes Carmichael raised the firm's price target on Voya Financial to $104 from $100 and keeps an Equal Weight rating on the shares. Discussing the life insurance group, the firm says that generally, its price targets are increasing, driven by higher comparable multiples in its sum-of-the-parts valuations as well as modestly higher 2027 EPS aided by continued strong equity market performance and generally good recent results.
• KEYS Wells Fargo raised the firm's price target on Keysight Technologies to $405 from $390 and keeps an Overweight rating on the shares following quarterly results. The firm says that the company's position and execution as a broad beneficiary of significant technology and architectural cycles was once again highlighted.
• APP Wells Fargo analyst Alec Brondolo lowered the firm's price target on AppLovin to $325 from $357 and keeps an Overweight rating on the shares. The firm updated its views on mobile game trends after a challenging Q2. Data deep dive suggests player engagement remains stronger than expected, but top of funnel for new games is slowing. August checks suggest industry ROAS pressure has persisted into Q3, Wells adds.

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

• 10:00 AM ET NAHB Housing Market Index for August
• 4:00 PM ET                    Net Long-term TIC Flows for June

• Earnings After the Close: DCGO FLXS FN XP YALA

• Rosenblatt 6th Annual Age of AI Tech Virtual Summit, 8/17-8/18

• 8:30 AM ET                   Housing Starts M/M for July
• 8:30 AM ET                   Building Permits M/M for July
• 8:30 AM ET                   Import Prices M/M for July
• 8:30 AM ET                   Export Prices M/M for July
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 9:15 AM ET                   Industrial Production M/M for July
• 9:15 AM ET                   Capacity Utilization for July
• 10:00 AM ET                 Pending Home Sales M/M for July
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AUNA JKHY KEYS LZB MRCY SQM TOL ZTO

• Piper California Medtech & Diagnostics Bus Tour, 8/18-8/20
• Rosenblatt 6th Annual Age of AI Tech Virtual Summit, 8/17-8/18
• Seaport Global 15th Annual Summer Investor Virtual Conference, 8/18-8/19

• 10:30 AM ET                 Weekly EIA Inventory Data
• 1:00 PM ET US Treasury to sell $13B in 20-year bonds

• Earnings After the Close: ARAY BILL ALVO BULL COTY NDSN TLX UFI WOLF

• Needham 7th Annual Virtual Semiconductor & Semicap 1x1 Conference, 8/19-8/20
• Piper California Medtech & Diagnostics Bus Tour, 8/18-8/20
• Seaport Global 15th Annual Summer Investor Virtual Conference, 8/18-8/19

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   Philly Fed Business Index for August
• 10:00 AM ET                 Leading Indicators M/M for July
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data

• Earnings After the Close: FLO FLUX ICG OSIS ROST

• Needham 7th Annual Virtual Semiconductor & Semicap 1x1 Conference, 8/19-8/20
• Piper California Medtech & Diagnostics Bus Tour, 8/18-8/20

• 9:45 AM ET S&P Global Services PMI, Aug-flash
• 9:45 AM ET S&P Global Composite PMI, Aug-flash
• 1:00 PM ET                    Baker Hughes Weekly rig count data

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