Day Trade Cheat Sheet - August 12, 2026 (Morning)

 ## MARKET MOOD: MIXED Overnight markets showed cautious optimism as U.S. inflation data came in cooler than expected, easing fears of a Fed rate hike in September. However, geopolitical tensions around the Strait of Hormuz and mixed corporate earnings kept sentiment balanced between risk-on and risk-off. ## TOP 5 HEADLINES 1. Cooler CPI inflation reading bolsters case for Fed to hold rates in September → Impact: Reduces immediate rate hike expectations, supporting equities. 2. Nvidia CEO Jensen Huang to update on $1 trillion GPU opportunity on Aug. 26 → Impact: Keeps AI and semiconductor sectors in focus for growth. 3. Cava stock leaps as growth returns; Chili's parent Brinker misses but outlook remains strong → Impact: Positive momentum in casual dining stocks. 4. Talen Energy shows solid free cash flow yield with upside if data center pipeline converts → Impact: Energy sector could benefit from infrastructure growth. 5. Dogecoin celebrates lifetime gain of 12,802% → Impact: Crypto sentiment remains upbeat despite broader market caution. ## PRE-MARKET MOVERS ### Longs (Bullish Catalysts) **$ONON** - Mixed Q2 results but shares up 1.1% after earnings beat and maintained overweight ratings. **$CAVA** - Shares jump on strong growth return and raised EBITDA outlook. **$CORE** (CoreWeave) - Surges 16-18% premarket on strong Q2 revenue and margin beat amid AI demand. **$AMBQ** - Needham raises price target to $85 after positive Q2 results. **$SMCI** - Rallying post-Q4 earnings that strengthened the bull case. ### Shorts (Bearish Catalysts) **$STXS** - Q2 EPS beat but sales miss, signaling potential pressure. **$ONON** - Despite share gains, multiple price target cuts and lowered sales outlook suggest caution. **$SANO** (Sanrio) - Shares plunge 18% after earnings miss and profit disappointment. **$CACC** - Earnings missed estimates, raising concerns on growth. **$QNST** - Rating downgrade after clinical failure impacts outlook. ## INDEX BIAS **SPY:** NEUTRAL - Inflation data supports holding rates, but geopolitical risks and mixed earnings cap upside. **QQQ:** BULLISH - Strong AI-related earnings and Nvidia’s upcoming update keep tech momentum intact. **IWM:** BEARISH - Small caps face headwinds from uneven earnings and cautious economic outlook. ## SECTORS **Favor:** Technology - AI earnings beats and Nvidia’s GPU opportunity drive sector strength. **Avoid:** Consumer Discretionary - Mixed restaurant results and margin pressures weigh on retail and dining stocks. ## CATALYST WATCH - 08:30 ET: U.S. CPI inflation data release (July) - Expected 3.4% YoY, 0.1% MoM - 08:30 ET: U.S. Core CPI inflation data - Key for Fed rate expectations - 16:30 ET: Nvidia CEO Jensen Huang’s update on GPU opportunity (Aug. 26 preview) ## BOTTOM LINE **Today's Play:** Selective The market is digesting a cooler inflation print that reduces the likelihood of a September rate hike, supporting risk assets, especially in tech and AI-related names like **$CORE** and **$ONON**. However, geopolitical tensions near the Strait of Hormuz and mixed earnings from consumer sectors warrant caution. Traders should focus on high-conviction tech growth plays and avoid discretionary stocks with margin concerns. Watch CPI data closely for any surprises that could shift Fed expectations.