Markets head into a packed week with GOOGL earnings front and centre. Oil prices are flashing warning signs. Analyst downgrades are hitting software hard.
Tuesday's main event is Alphabet reporting Q2 results after the bell. All eyes are on AI-driven ad revenue and Google Cloud momentum. Options traders are positioning aggressively ahead of the print. Intel follows on Wednesday, with investors watching for turnaround progress under CEO Lip-Bu Tan.
Analysts dealt blows to software names today. Intuit and Salesforce both took downgrades. IBM had its target cut to $264.35. The pattern points to broad caution on enterprise tech valuations. bucked the trend — its target was lifted and short interest sits at just 1.6% of free float.
Short sellers are pressing hard on speculative names. Lucid Group short interest reached 38.1% of free float. Cost to borrow hit 229.7% APR. SoundHound AI sits at 41.6% SI % FF with near-zero availability. Squeeze conditions are building in both names.
An analyst warned today that gas prices have entered territory not seen even in 2008. Oil touched $90 after Iran struck tankers. Crude later eased as Tehran signalled openness to mediation proposals. The USO oil ETF carries 95% SI % FF with a cost to borrow of 4.47% APR — reflecting aggressive bearish positioning on crude.
UK gilt markets face pressure. Investors are bracing for higher spending after a change in prime minister. Sterling is under strain. London Stock Exchange Group also announced plans to launch round-the-clock trading next year. China's state funds bought $9bn in shares to support markets following last week's AI tech sell-off.
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