Earnings, M&A and a Bond Rout Set the Tone

Earnings Season Kicks Off

Nike opens the Q3 earnings season today, hosting its Q1 FY2027 call at 5pm ET. Bears have already retreated. Short interest in Nike collapsed 82% in a week, falling to just 0.49% of float. Availability sits at 517% of short interest. That says the squeeze risk most expected has largely unwound before the print even lands. Options traders still see potential in the name: the RSI sits at 35 and the stock is down 44% year-to-date, so any positive surprise could move it sharply.

Bond Yields Dominate Macro

US 10-year Treasury yields hit their highest level since 2002 this week. That backdrop is pressing on rate-sensitive equities across sectors. Chip stocks are drawing the heaviest negative-bet options volume. Micron leads that screen, even as Morgan Stanley reiterates a Buy with a $1,200 target. Taiwan's August export orders came in at a record $103bn, up 71% year-on-year, supporting the bull case for memory demand.

M&A Moves Semiconductors

ON Semiconductor agreed to acquire Synaptics for $123 per share in cash. Options activity jumped in both names on the announcement. Synaptics is up 37% year-to-date. The deal adds consolidation pressure to a sector already running hot on the Taiwan data.

Short Squeeze Watch

Lucid Group now carries 58.5% short interest as a share of free float, with availability at just 0.06%. Wolfspeed sits at 81% short interest. Both names have almost no room for bears to add further. First Solar grabbed fresh attention today after filing a patent infringement lawsuit against JA Solar. The suit adds a new variable for a stock already closely watched by short sellers in the clean-energy space.

Insider Confidence

Uber President and COO Andrew MacDonald filed $5.3 million in open-market purchases, executed at $75 to $76 per share. The discretionary nature of the trade makes it a meaningful signal.