Bears and Downgrades Set the Tone for Earnings Week

Markets open August with a bearish tilt. Short sellers, analysts, and options traders all moved in the same direction this weekend — more caution, fewer longs.

Earnings Calendar Dominates

Over 1,800 companies report this week. Palantir kicks things off today after the close. AMD, Caterpillar, and Merck follow Tuesday. Eli Lilly — the $1 trillion GLP-1 giant — headlines Wednesday. Investors are watching AI spending and drug pricing closely across every sector.

Short Sellers Load Up

ORTEX data shows sharp short interest increases heading into the week. Chewy sits at 82.4% SI of free float. Hertz is at 84.6%, down 69% year-to-date and in deep oversold territory with an RSI of 26.7. Sable Offshore jumped 11 points in a week to 43.7%. Bears are clearly positioning before results, not after.

Analysts Turn Cautious

Three downgrades landed over the weekend. Johnson Controls, Bristol-Myers Squibb, and Zebra Technologies all received cuts. BMY's sell-to-buy ratio now stands at 9 vs 8. Amazon was the bright spot — its consensus target lifted to $321.95 with near-universal buy support from 59 analysts.

Insiders Cash Out at Schwab

Charles R. Schwab filed $20.8 million in sales at SCHW across three transactions. Medpace insiders filed over $8.8 million in sells in a single day. Not all insiders are selling — Albertsons saw buyers step in with $2.4 million in purchases at $11.51 per share.

Canada: WestJet Strike Hits Travel

Flight attendants at WestJet walked out today over a pay dispute. Air Canada may benefit from redirected passengers but the broader travel sector faces fresh uncertainty heading into peak summer.