WDC news sentiment

Stocks Supported by Renewed Middle East Optimism

The S&P 500 Index ($SPX) (SPY) today is up +0.04%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.07%. September E-mini S&P futures (ESU26) are up +0.02%, and September E-mini Nasdaq futures (NQU26) are down -0.11%. Stock indices are mixed today. Stocks found support after crude prices gave up a 2% overnight advance and turned negative, knocking bond yields lower after Pakistan signaled the US and Iran were close to an arrangement that could reopen the Strait of Hormuz. Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. Stock index futures were initially under pressure in overnight trade as rising crude oil prices fanned inflation fears and pushed bond yields higher. WTI crude initially jumped more than +2% in overnight trade, adding to Monday’s +5% surge, as President Trump hardened his stance toward Iran. The jump in crude prices initially pushed the 10-year T-note yield up to a 1-week high of 4.73%, but yields fell back with crude prices, and the 10-year T-note yield is now down -2 bp to 4.68%. The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 85% of the 446 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data. Sep WTI crude oil prices (CLU26) relinquished a +2% increase in overnight trade and turned lower when Al Jazeera said that talks between Oman and Iran to reopen the Strait of Hormuz have reached an advanced stage. Pakistani defense minister Khawaja Asif said today that signals in the "last two to three days are that we are close to some sort of agreement." Crude prices initially jumped to a 1-week high today after President Trump late Monday hardened his stance toward Iran, making it unlikely there will soon be a deal to reopen the Strait of Hormuz. In response to Iran’s demand for compensation for war damages, President Trump said he will “demand compensation from Iran for people killed and wounded with roadside bombs and many conflicts to people in Lebanon, Syria, Yemen and Gaza over the last 50 years.” Crude prices fell from their highs today On Sunday, Mr. Trump signaled he's prepared to let economic pressure on Iran build rather than launch additional military strikes, saying the US was only "semi-negotiating" with Iran on the Strait of Hormuz and that the US blockade of Iran was deepening the country's financial woes. The risk of a renewed flare-up across the Middle East remains high, as another UAE tanker was targeted by a missile on Saturday while transiting the Strait of Hormuz. Also, on Sunday, Houthi militants in Yemen claimed an attack on Saudi Arabia's Jazan refinery. The markets are discounting a 48% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16. Overseas stock markets are mixed today. The Euro Stoxx 50 is up +0.40%. China's Shanghai Composite closed down -0.82%. Japan's Nikkei-225 Stock Average did not trade, with Japanese markets closed for the Mountain Day holiday. Interest Rates September 10-year T-notes (ZNU6) are up +4 ticks today. The 10-year T-note yield is down -2.9 bp to 4.678%. Sep T-notes rebounded from a 1-week low today and moved higher, and the 10-year T-note yield fell from a 1-week high of 4.733% and turned lower. Short covering emerged in T-notes today after WTI crude gave up most of a +2% overnight advance, weakening inflation expectations and boosting T-notes. T-notes initially moved lower today after WTI crude oil rose more than +2% t

SA analyst upgrades/downgrades: TSLA, NVDA, BBBY, WDC

[Man looking at currency trading app on his smart phone from his home office] Alistair Berg Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) and Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) both received upgrades, with analysts pointing to Nvidia's expanding AI platform and Tesla's improved top-line growth as key factors. Meanwhile, Western Digital (WDC [https://seekingalpha.com/symbol/WDC]) and Bed Bath & Beyond (BBBY [https://seekingalpha.com/symbol/BBBY]) face more skeptical outlooks, with analysts citing valuation concerns after a massive run-up and execution risks around a speculative turnaround strategy, respectively. UPGRADES * NVIDIA (NVDA [https://seekingalpha.com/symbol/NVDA]): Upgrade Hold to Buy by Future Stack Investment [https://seekingalpha.com/article/4930933-nvidia-the-story-is-bigger-than-gpus-now]. The analyst sees Nvidia's valuation now better reflecting its robust AI platform, with networking, software, and enterprise AI creating a deepening moat that increases customer dependence and switching costs. > _"The recent pullback has presented a great entry point. That's why I'm upgrading Nvidia from Hold to Buy. I just think the business is growing better than the valuation indicates."_ * TESLA (TSLA [https://seekingalpha.com/symbol/TSLA]): Upgrade Sell to Hold by A.J. Button [https://seekingalpha.com/article/4932029-tesla-is-still-far-too-pricey]. The analyst acknowledges Tesla's renewed top-line growth, with Q2 revenue increasing 26% year over year, but notes that deteriorating margins and an extreme 188x earnings multiple limit the stock's appeal versus alternatives. > _"Elon Musk’s newfound distance from Donald Trump is a positive in every Tesla market except maybe some U.S. red states. Nearly half of Tesla’s revenue comes from outside the U.S., and much of the U.S. leans Democrat, including a sizeable percentage of EV buyers. So, Musk staying out of politics (or at least being less visible in it) is a positive for Tesla’s revenue."_ DOWNGRADES * WESTERN DIGITAL (WDC [https://seekingalpha.com/symbol/WDC]): Rating Downgrade by Bashar Issa. [https://seekingalpha.com/article/4931854-western-digital-even-unprecedented-demand-has-price-downgrade] After shares surged more than 600% since the analyst's initial Buy rating, the downgrade reflects a view that the value unlocked by splitting WDC's HDD and SSD operations has largely been realized. > _"My view is that the ticker has become overvalued. A big part of WDC's growth is tied to higher selling prices as opposed to volumes. When prices normalize, WDC revenue could suffer."_ * BED BATH & BEYOND (BBBY [https://seekingalpha.com/symbol/BBBY]): Downgrade to Sell by Vince Martin [https://seekingalpha.com/article/4931362-bed-bath-and-beyond-q2-an-unprecedented-unfocused-plan-downgrade-sell]. The analyst views the investment case for the soon-to-be-renamed Neighborhood Intelligence as highly speculative, with CEO Marcus Lemonis's multi-pillar turnaround strategy facing daunting execution risks and little evidence of early traction. > _"The numbers—fuzzy as they still are, with several deals closing at or after the end of the second quarter—are useful in triangulating the potential upside in BBBY stock if Lemonis's plan works. But any model of the company's financials in the future in turn rests on the evaluation in the present_ of the strategy here and how likely it is to work." MORE ON MARKETS * The S&P 500 Faces A Potentially Sharp Volatility Unwind [https://seekingalpha.com/article/4933279-the-sp500-faces-a-potentially-sharp-volatility-unwind] * Weak Jobs Report Seals The Deal On No Rate Hikes This Year [https://seekingalpha.com/article/4933232-weak-jobs-report-seals-deal-on-no-rate-hikes-this-year] * July Jobs Report: Payrolls Turn Negative As The Labor Force Keeps Shrinking [https://seekingalpha.com/article/4933257-july-jobs-report-payrolls-turn-negative-as-the-labor-force-keeps-shrinking] * U.S. equities advanced after a weaker than forecasted payroll

Memory Stocks Blast Off: Micron, SK Hynix, SanDisk, Western Digital, and Seagate All Rally Double-Digits

Micron Jumps 5%, SanDisk Rises 6%, Western Digital Climbs 4% as Memory Stocks Rebound With Chips

Seagate Technology to report fiscal fourth quarter and FY26 results on July 28

Western Digital (WDC) Stock Still Trades Below Fair Value Despite Huge Run

Is Western Digital (WDC) Cheap Following Its AI Driven Index Shift?

Does Western Digital’s (WDC) Shift Into Growth Indexes Recast Its Core AI Storage Narrative?