Day Trade Cheat Sheet - August 05, 2026 (Morning)

 ## MARKET MOOD: MIXED Overnight markets showed a mixed tone as optimism around a potential US-Iran Strait of Hormuz deal buoyed risk appetite, while concerns over SpaceX’s heavy AI spending weighed on tech shares. Earnings beats from select consumer discretionary and semiconductor names provided pockets of strength amid broader caution. ## TOP 5 HEADLINES 1. SpaceX shares slide over 8% after AI spending surge rattles investors → Impact: Raises concerns about cash burn and near-term profitability in high-growth tech. 2. Bloomin’ Brands tops Q2 2026 estimates, lifts outlook → Impact: Consumer discretionary strength signals resilient demand, supporting retail and restaurant stocks. 3. Lattice Semiconductor raises forecasts after strong Q2 earnings, but shares fall 4.4% → Impact: Mixed reaction highlights profit-taking despite solid fundamentals in AI chipmakers. 4. AMD shares slide 8% after Musk flags plans to buy Nvidia chips for SpaceX → Impact: Competitive dynamics in AI chip space create uncertainty for AMD’s growth trajectory. 5. US private sector adds fewer jobs than expected in July: ADP → Impact: Slower job growth tempers expectations for aggressive Fed rate hikes, supporting cautious market sentiment. ## PRE-MARKET MOVERS ### Longs (Bullish Catalysts) **$BLMN** - Q2 earnings beat and raised outlook boost shares +22% premarket **$PCTY** - Buy rating maintained with raised price target at $180 by BTIG **$HNGE** - Price target raised to $100 by Barclays on strong growth prospects **$LSCC** - Raised forecasts after strong Q2 earnings despite share pullback **$SHOP** - Surges on strong Q2 revenue beat and robust guidance ### Shorts (Bearish Catalysts) **$SPCX** - Shares slide 8%+ on concerns over AI spending and lockup expiration **$AMD** - Shares down 8% after mixed earnings reaction and competitive chip concerns **$CDW** - Shares tumble 8% despite earnings beat, signaling profit-taking **$CRCT** - Pre-market weakness despite earnings beat, signaling cautious sentiment **$BBBY** - Data not available but recent volatility suggests bearish pressure ## INDEX BIAS **SPY:** NEUTRAL - Earnings beats support the index, but tech weakness and geopolitical risks cap upside. **QQQ:** BEARISH - Tech-heavy QQQ pressured by SpaceX and AMD declines despite pockets of AI optimism. **IWM:** BULLISH - Small caps benefit from consumer discretionary strength and less tech exposure. ## SECTORS **Favor:** Consumer Discretionary - Strong earnings from Bloomin’ Brands and Booking Holdings highlight resilience. **Avoid:** Technology - AI spending concerns and chip competition create near-term headwinds despite long-term growth. ## CATALYST WATCH - 08:30 AM ET: ADP July Employment Report (slower job growth noted) - 10:00 AM ET: ISM Services PMI (market to gauge economic momentum) - 04:00 PM ET: SpaceX lockup expiration could add selling pressure ## BOTTOM LINE **Today's Play:** Selective Markets face a tug-of-war between optimism on geopolitical easing and caution over tech sector earnings and spending. Consumer discretionary and select semiconductor names offer the best opportunities amid a cautious tech backdrop. Watch SpaceX and AMD closely for volatility triggers, while broader indices may trade sideways ahead of key economic data. Risk remains elevated from AI capex concerns and potential lockup-related selling.