Earnings, Cruise Upgrades, and AI Bears Drive Tuesday's Market

Earnings Week Kicks Off

A packed earnings calendar sets the tone for the week. CarMax reports Tuesday morning with short sellers holding 11.5% of its free float — a notable bearish bet going into results. Jabil also reports today. The week's marquee prints arrive June 23, when FedEx and Carnival both step up. FedEx carries just 1.6% SI % FF, meaning bears are largely absent. Carnival has benefited from a wave of analyst optimism heading into the print.

Cruise Sector Gets Analyst Love

Citigroup lifted targets on Royal Caribbean Cruises to $362 and Norwegian Cruise Line to $25, both with Buy ratings. The upgrades align with bullish options activity on Carnival, where traders are placing longer-dated bets through September expiries. The cruise trade is clearly gaining momentum across multiple data types.

AI Chip Sceptics and Biotech Bulls

Short sellers added aggressively to Cerebras Systems, pushing its SI % FF from 6.3% to 32.4% in one week. Bears are openly challenging the AI chip hopeful's valuation. Meanwhile, the market's biggest insider story runs the other direction — Summit Therapeutics CEO Robert Duggan filed a $50M purchase of SMMT shares, part of a $52M cluster of buying from three insiders. That is one of the largest insider buying clusters seen in US markets recently.

Auto Rivalry Heats Up

General Motors unveiled its 2027 Chevy Silverado today, targeting Ford and Stellantis directly with bigger V8 engines and a new 10-speed gearbox. The reveal adds competitive pressure across the Detroit trio heading into the second half of 2026.

Europe Watch

Babcock International holds its full-year earnings call this Sunday, drawing attention from European defence-sector investors.