WS #13495

The dominant theme in this window is the post-market earnings dump, with several high-profile names moving sharply after hours. AppLovin (APP) reported strong revenue growth (+53% YoY) but shares tumbled ~21-22% after hours on a minor revenue miss and soft Q3 guidance, a classic 'sell the news' reaction that could pressure high-multiple software names. SanDisk (SNDK) delivered a massive double beat (EPS $39.25 vs $34.52 est, revenue $8.97B vs $8.39B est) yet shares fell ~3% after hours as the forecast midpoint disappointed high expectations, echoing the pattern seen in the prior window. HubSpot (HUBS) cut FY26 sales guidance below estimates, sending shares lower and reinforcing the 'SaaSmageddon' narrative of AI-driven disruption in software. In contrast, several names beat and rallied: Block (XYZ) raised FY26 EPS guidance and saw shares trade up initially, though bitcoin gross profit fell 31% after Cash App fee cuts; CACI International surged on a strong FY27 outlook; and e.l.f. Beauty raised FY27 guidance sharply. The Fed narrative is stable: Governor Lisa Cook reiterated readiness to raise rates if inflation doesn't slow, with the Fed holding at 3.5%-3.75% — a hawkish tilt that could weigh on growth stocks. Geopolitically, the US-Iran Hormuz deal talks are in 'final' stages per Al Jazeera, with Kalshi odds rising to 27%, and Houthis claimed a missile strike on a Saudi oil vessel in the Gulf of Aden, keeping oil risk elevated. Overall, the earnings-driven moves are the primary signal, with a bifurcation between AI/software names facing high expectations and those with clear fundamental beats.