Daily Brief - August 03, 2026 (Morning)

 ## Pre-Market Overview U.S. stock futures are modestly higher ahead of the opening bell, reflecting cautious optimism following the recent de-escalation in Middle East tensions. The Dow Jones, S&P 500, and Nasdaq 100 futures have all edged up, supported by news that former President Trump has called off a planned strike on Iran, which has eased geopolitical risk. This development is helping to stabilize markets after last week’s volatility. In Asia, markets showed mixed performance with South Korea’s KOSPI dropping over 4% due to renewed weakness in chip stocks, while Japan’s manufacturing output hit a 12-year high, supported by strong demand. Europe’s key indices are also starting August on a positive note, buoyed by hopes for progress in U.S.-Iran diplomacy and easing oil prices. The overall market sentiment is cautiously constructive, but investors remain watchful of earnings reports and geopolitical developments. Cryptocurrency markets are under pressure, with Bitcoin down 1.45% to $62,592.70 and Ethereum falling 2.25% to $1,841.00 amid ongoing concerns related to a Coldcard hardware wallet exploit. Oil prices have declined sharply on hopes of an Iran nuclear deal, while gold prices are edging higher, supported by softer inflation concerns and geopolitical uncertainty. ## Top Stories Moving Markets - **Trump Calls Off Planned Iran Strike** Former President Trump announced he is halting a planned military strike on Iran and signaling fresh negotiations. This news has significantly reduced geopolitical risk premiums, leading to a rally in U.S. futures and a sharp drop in oil prices. Energy stocks and defense contractors will be closely watched for reactions to this development. - **TotalEnergies Acquires Shell’s European Renewables, Sells Stake to KKR** TotalEnergies agreed to acquire Shell’s European onshore renewables business and simultaneously sold a 50% stake in its renewable portfolio to KKR. This strategic move underscores TotalEnergies’ commitment to expanding its clean energy footprint in Europe. Stocks like **$TTE**, **$SHEL**, and **$KKR** will be in focus as investors digest the deal’s implications for growth and capital allocation. - **Sandisk Stock Falls Ahead of Earnings** Sandisk shares are down nearly 5% premarket ahead of their August 5 earnings report. Wall Street expects $33.38 EPS on $8.24 billion revenue. The decline suggests investor caution, possibly due to concerns about margin pressure or demand softness. **$SNDK** will be a key name to watch for guidance and margin commentary. - **Alibaba Unveils New AI Model, Shares Rally** Alibaba’s announcement of its new "Qwen 3.8-MAX" AI model has sparked a rally in its shares, highlighting intensifying U.S.-China competition in artificial intelligence. This development positions Alibaba as a serious AI contender and could influence sentiment across Chinese tech stocks, including **$BABA**. - **Tesla Price Target Lowered Despite Buy Rating** Stifel maintained a Buy rating on Tesla but lowered the price target to $491, reflecting concerns about valuation despite confidence in Tesla’s long-term prospects. Investor debate continues around Tesla’s growth trajectory and Elon Musk’s leadership, with **$TSLA** likely to see volatility. ## Stocks to Watch Today - **$HOOD** - Cantor Fitzgerald maintains Overweight rating but lowers price target to $115, signaling confidence tempered by valuation concerns. - **$TTE**, **$SHEL**, **$KKR** - TotalEnergies’ acquisition and stake sale deal to reshape European renewables exposure. - **$SNDK** - Shares down 5% ahead of earnings; watch for margin and demand signals. - **$BABA** - Shares rally on new AI model launch, signaling renewed investor interest. - **$TSLA** - Stifel Buy rating maintained but price target cut; watch for investor reaction. - **$BA** - Boeing shares up nearly 2% premarket amid industrial sector strength and positive technical outlook. - **$PLTR** - Shares jump ahead of quarterly results, reflecting optimism on AI and software growth. - **$UBER** - Expected to have significant market moves during earnings season. - **$GILD** - Also in focus for upcoming earnings with potential for volatility. - **$AMD** - Earnings report due Tuesday; chip sector remains volatile. - **$AMZN** - Market focused on AI spending and capex outlook ahead of earnings. - **$WDC** - Shares under review ahead of earnings; watch for pricing strength commentary. ## Sector Setup - **Technology:** Moderately positive as AI developments from Alibaba and anticipation of earnings from chipmakers like AMD and Applied Materials drive interest. However, sector faces pressure from recent sell-offs and valuation concerns. - **Energy:** Mixed. Oil prices have plunged on Iran deal hopes, pressuring traditional energy stocks. However, TotalEnergies’ strategic renewables acquisition signals growth potential in clean energy. - **Industrials:** Boeing’s strong premarket performance and robust factory demand underpin a positive outlook for industrials. - **Financials:** Cantor Fitzgerald’s upgrade on Robinhood and KKR’s involvement in renewables deals highlight selective strength in financials tied to tech and energy transitions. ## Economic Calendar & Fed No major economic releases or Fed events are scheduled for today. Market focus remains on corporate earnings and geopolitical developments. ## Crypto & Commodities Bitcoin is down 1.45% to $62,592.70, and Ethereum has fallen 2.25% to $1,841.00. The declines are linked to ongoing concerns over a Coldcard hardware wallet exploit, which has overshadowed optimism from geopolitical developments. Gold prices are rising modestly, supported by softer inflation expectations and geopolitical uncertainty. Oil prices have dropped sharply on hopes for an Iran nuclear deal, easing inflation pressures and impacting energy sector sentiment. ## Trading Game Plan - Monitor geopolitical developments closely, especially any updates on U.S.-Iran negotiations and their impact on oil and defense stocks. - Favor technology stocks with strong AI exposure, such as **$BABA**, **$PLTR**, and **$AMZN**, while remaining cautious on chipmakers ahead of earnings. - Watch energy sector for volatility; traditional oil stocks may face headwinds from falling prices, but renewable energy plays like **$TTE** could benefit from strategic acquisitions. - Keep an eye on industrials, particularly **$BA**, for signs of sustained demand and earnings strength. - Manage risk around earnings reports from Sandisk, Tesla, AMD, and Uber, as these could drive significant intraday moves. - Crypto investors should be cautious given the recent sell-off and security concerns impacting Bitcoin and Ethereum. - No major economic data today, so market moves will likely be driven by corporate news and geopolitical headlines.