Earnings Season in Full Swing, Bulls Lead

US Market: Earnings Drive the Action

Earnings season is delivering sharp moves in both directions. Unity Software surged 36% after a Q2 beat. FIGS jumped 33% and Amplitude popped 27% — both catching shorts badly offside. Arhaus exploded 30% post-results, though options traders remain cautious about the follow-through.

Not every report impressed. Sweetgreen cratered 16% after disappointing numbers. Shift4 Payments dropped 22% on earnings, despite bears holding firm through the selloff. Warby Parker also stumbled after its print.

Options flow is leaning bullish heading into next week. Cogent Biosciences drew 100% positive call flow ahead of an FDA catalyst. Trump Media & Technology Group also saw call buyers dominate.

Big Week Ahead for Semis and Networking

The week ahead is packed. Cisco Systems reports Wednesday after the close. Applied Materials follows Thursday. Both are key reads on AI infrastructure spending. Super Micro Computer also reports mid-week — its 17% short interest makes it a squeeze candidate if results beat.

Short Squeezes and Insider Sales

Hertz is deep into a short squeeze. SI sits at 65.4% of free float with zero shares available to borrow. SoundHound AI faces the same dynamic at 43.1% SI with no borrow left.

On the insider front, NEXT plc CEO Simon Wolfson sold over £32M in NXT shares on August 5. Charles Schwab's founder filed $30.3M in sales of SCHW stock. Three Life Time Fitness executives at LTH sold a combined $24.5M on the same day.

Europe: FX and Macro Themes

The FT reports the US sold euros to prop up the yen — an intervention that blindsided the ECB. The dollar move has broad implications for European exporters. Jane Street is also in talks to offload $11bn of debt to private credit investors including Pimco, signalling stress in one of the market's most active trading firms.

El Niño risks are growing. One of the strongest weather patterns since 1950 threatens food supplies and could push inflation higher — a macro risk worth watching.