WS #12938

The dominant theme in this window is a flurry of earnings reports, with several notable beats and misses. Teradyne (TER) reported a massive beat, with Q2 EPS of $2.47 vs $2.09 estimate and revenue of $1.33B vs $1.22B, and issued strong Q3 guidance well above consensus. This is a high-signal positive for TER and the semiconductor test equipment sector. Conversely, O-I Glass (OI) missed estimates significantly (EPS $0.09 vs $0.26), sending shares lower. Ford (F) beat Q2 estimates and raised its full-year outlook, a positive for the auto sector. Waste Management (WM) beat EPS but missed revenue and lowered its full-year sales guidance, a mixed signal. Veralto (VLTO) beat and raised guidance. Extra Space Storage (EXR) beat FFO estimates but missed revenue. On the geopolitical front, Saudi Arabia vowed a decisive response after Iraq-launched drones hit oil sites again, and a US official stated that Iran is overreaching with demands on the Strait of Hormuz, which are being rejected. This escalation supports oil prices and energy stocks. Additionally, AT&T closed a $23B deal to buy wireless spectrum licenses from EchoStar, a positive for T and a negative for EchoStar. The FCC moved to ban Chinese robots, boosting Agility Robotics (CCXI) and impacting the humanoid ETF. The macro narrative is stable with no new Fed or macro surprises, but the earnings season is providing stock-specific catalysts.