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Pre-market futures are filling in the gaps from yesterday’s modest selloff: the Dow is +312 points, the S&P 500 +35, the Nasdaq +201 and the small-cap Russell 2000 +23 points. Ten-year bond yields are back below +4.7% by a smidge, while the 2-year holds beneath +4.2%. Spot oil prices are steady, with WTI just below $87 per barrel (/bbl) and Brent crude just below $94/bbl.
These are narrow victories in the near term, but they matter to early birds trading in the pre-market. This goes especially for a Friday morning in August without any major economic or earnings reports to sift through. The U.S. has shifted its policy to economic warfare in its military campaign against Iran, which began with major bombing six months ago and resulted in the closure of the Strait of Hormuz.
BJ’s Stores Beats Q2 Estimates
Ahead of the opening bell, and putting something of a cap on retail earnings results for the week, BJ’s Wholesale Club BJ posted easy beats on both top and bottom lines for its Q2 this morning. Earnings of $1.36 per share outpaced the Zacks consensus by two solid dimes, and improving from the $1.14 per share reported a year ago. Revenues of $6.09 billion improved over expectations by a robust +3.54%. For more on BJ’s earnings, click here.
What to Expect from the Market Today
After today’s open, look for the August print on flash S&P Manufacturing and Services PMI. Both are expected to tick up from previous levels: to 54.0 on the Manufacturing side and +53.9 on Services. Both look safely in growth territory, above the 50 threshold.
Obviously, we will also remain in tune with developments in Iran regarding U.S. strategy, etc. Oil prices are now up over the past two weeks, so anything that sends prices the opposite direction would likely be welcomed by the stock market. Also, notable crypto gains this week have garnered some attention, triggered by the liquidity move from the U.S. Treasury on long-term bonds. Crypto investing had been rather dire ahead of this news, but cryptocurrencies are up double-digits this week.
What to Expect from the Market Next Week
Arguably the biggest earnings report of Q2 earnings season comes mid-week next week: Zacks Rank #2 (Buy)-rated NVIDIANVDA — still the AI play among AI plays — reports quarterly results after the closing bell on Wednesday afternoon. Expectations are for still-impressive +99% earnings growth on +96.5% gains year over year in revenues. These, believe it or not, represent something of a cooling-down period on the bottom line (May earnings surged +140% year over year), as comps grow tougher to obliterate after several quarters of outsized gains.
Also Wednesday of next week, Personal Consumption Expenditures (PCE) for July are due for release. Last time around, this key inflation metric showed +3.7% year over year on headline, +3.3% on core. Clearly these are much warmer than the Fed’s +2% inflation target. Q2 GDP gets its second revision in the same batch of news items; investors look for an upward revision from the initial read of +1.5%.
Finally, the annual Jackson Hole symposium is scheduled for late next week. This year’s theme is “Financial Innovation: Implications for Payments and Policy.” Fed Chair Kevin Warsh is scheduled to deliver the keynote address, his first Jackson Hole summit since taking over as head of the Fed.
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Traffic, digital convenience, merchandising upgrades, higher-margin revenue streams and disciplined investment support Target’s path toward sustainable profitable growth over time.
Cousins benefits from Sun Belt lifestyle office demand and favorable leasing. Portfolio recycling and flexible capital support earnings and occupancy gains.
Decoupled revenues, expanding large-load demand, disciplined costs, steady capital investment and reliable financing support Exelon’s long-term earnings and dividend growth.
AI data center demand, NVIDIA ecosystem ties and broad interconnect and custom ramp-ups support Marvell’s multi-year growth and disciplined cash returns.
Brand momentum, Active Group mix, product innovation, international momentum and balance-sheet repair support sustained profitable growth despite external risks.
Alexandria Real Estate Equities (ARE)Downgraded: 08/20/26
Alexandria faces low occupancy, weak renewal economics and uneven biotech demand. Higher funding costs and reliance on dispositions continue to constrain its earnings outlook.
Rigetti’s reliance on milestone-based revenues and execution risks on its roadmap are concerning. Intense competition from larger, well-funded peers adds further pressure on its long-term prospects.
Limited underlying growth, unproven AI monetization, rising compute and interest costs, and intense competition constrain revenue and earnings upside potential.
Debt, long equipment lead times, Permian exposure, rising operating costs and execution demands could constrain growth and capital allocation flexibility.
Weak growth, margin pressure, a lowered 2026 outlook, high goodwill and leverage, intense competition and no dividend increase Fiserv’s near-term risks.
Deteriorating asset quality, huge CRE and residential mortgage loan exposure and high debt levels are headwinds for BankUnited. Mounting expenses because of technology upgrades are a concern, too.
Elevated expenses, debt, competition and Market Intelligence restructuring create execution risks that could constrain margins, growth and future valuation upside.
Clorox faces mounting near-term headwinds from inflation, global economic pressures and intensifying competition, all of which threaten to weigh on its profitability in fiscal 2027.
American Eagle is well placed in cost-reduction efforts and brand progress. In the second half, the company expects to cycle tariffs and advertising investments.
Resilient travel demand, premium mix, loyalty partnerships, and technology-led personalization support revenue durability, cash generation, and strategic flexibility over cycles.
Streaming profitability, ESPN monetization, franchise reach, Experiences growth and disciplined capital returns support Disney's long-term earnings outlook and competitive position.
AI factory demand, fast product cadence, broader customers, software attach and substantial capital returns support NVIDIA’s upside despite ongoing execution risks.
Advertising expansion, global scale, broader content formats and production technology support growth, monetization, engagement and long-term operating efficiency for Netflix.
Global malocclusion opportunity, portfolio expansion, international adoption, digital workflows, DSO relationships and financial flexibility support Align Technology’s long-term growth prospects.
Traffic, digital convenience, merchandising upgrades, higher-margin revenue streams and disciplined investment support Target’s path toward sustainable profitable growth over time.
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