Markets on Edge: Chips, Earnings, and Insider Exits

Earnings Season in Full Swing

August 6 is one of the busiest days of the earnings season. Eli Lilly delivered a standout result, with revenue up 48% driven by GLP-1 drug demand. Analysts responded positively — the consensus target rose to $1,283. Walt Disney, Uber, and CVS Health all reported today as well. AppLovin and DoorDash are due after the close.

Chips Under Pressure

SanDisk shares fell sharply after its forecast missed expectations despite a 501% YTD run. SolarEdge cratered more than 30% on weak sales. Alphabet dropped after losing a key AI executive. The Dow posted its third consecutive record close, but the S&P 500 and Nasdaq retreated as chipmakers weighed.

Payments stocks bucked the tech selloff. Analysts raised targets on Visa to $415, Mastercard to $664, and Global Payments to $95.59. Insulet was downgraded with its target cut by $31 to $204.

Short Sellers Pick Their Spots

Hertz sits at 82% short interest of free float with zero shares left to borrow — a potential squeeze candidate. Chewy is similarly crowded at 78.4%. Five9 saw short interest jump 3.7 percentage points in a week to 15% of free float.

Options traders are also fading the chip rally. Micron and SanDisk both drew heavy bearish put activity. Rocket Companies, by contrast, is seeing bullish options build ahead of Q2 earnings.

Insiders Head for the Exit

Charles Schwab and family filed $38M in SCHW stock sales this week. Life Time Group's entire C-suite sold over $24M in a single session at LTH. Billionaire Carlos Slim filed $37M in PBF Energy sales. The volume of executive selling stands out heading into the back half of earnings season.