Earnings Week Kicks Off as Bears Press Consumer Names

Earnings in Focus

The week's biggest catalyst arrives today. Cisco Systems reports Q4 2026 results after the close. Its AI infrastructure commentary will set the tone for tech. Applied Materials follows tomorrow after the close — a key read on semiconductor demand. Coherent Corp and Trimble also report today. Tapestry steps up tomorrow as a test of luxury consumer spending. The Home Depot delivers Q2 results on Tuesday August 18, giving the market a housing health check.

Bears Press Consumer Stocks

Options flow is heavily skewed against consumer names. AT&T is the most bearish large-cap by sentiment. Just 12.9% of its options bets this week were bullish. Lululemon is similarly pressured — only 29.5% of flow leaned bullish as the stock sits 38.5% lower this year. Short sellers are also piling into MGM Resorts, where SI jumped to 13.6% of free float. Hertz remains a bear favourite at 69.6% of free float short.

Analyst Moves

Fox Corporation was downgraded today. It already carries 27.4% short interest of free float — one of the highest in media. On the positive side, analysts lifted targets for International Paper, Packaging Corp, Occidental Petroleum, and APA.

Insider Signals

Boston Scientific CEO Michael Mahoney bought $9M in shares on August 5. CoStar Group CEO Andrew Florance added $2.5M. On the other side, Charles Schwab founder filed sales exceeding $31M between July 28 and August 4.

Align Technology Patent Win

Align Technology prevailed in a China patent infringement action against Angelalign, a meaningful development for its competitive position in the world's largest orthodontics market.