WS #13524

The dominant theme in this window is a busy Q2 earnings season with several high-profile beats and misses, alongside a notable de-escalation signal on the Strait of Hormuz. Datadog (DDOG) beat Q2 expectations and raised its top-line outlook, but shares fell sharply on soft Q3 sequential growth guidance and a disappointing FY26 EPS midpoint, highlighting continued AI-software valuation sensitivity. Ralph Lauren (RL) delivered a strong beat (EPS $4.59 vs $4.32 est, revenue $1.96B vs $1.867B est) with robust comps in US and Asia, signaling consumer resilience in premium retail. Fox (FOXA) crushed Q4 estimates (EPS $1.79 vs $1.42 est, revenue $4.212B vs $3.643B est), boosted by sports and political ad spending. On the negative side, Fiserv (FISV) slashed its FY26 adjusted EPS guidance, sending shares lower; Duolingo (DUOL) issued Q3 sales guidance below estimates; and EPAM Systems (EPAM) cut FY26 sales guidance. Celestica (CLS) tumbled 15% on a $3 billion equity offering. In crypto, Bitcoin ETFs saw a 3-day inflow streak topping $626M, with Bitcoin trading around $64.5K, while Chainalysis reported over $30M stolen in violent crypto attacks in 2026, a record pace. The Strait of Hormuz situation is de-escalating: Iran and Oman reportedly agreed on route coordinates with a joint statement nearing finalization, though reopening remains conditional on US concessions and only 2 vessels passed overnight via the southern route, indicating traffic is not yet normal. This counters the bearish oil thesis from the blockade, potentially pressuring oil prices and benefiting importers. Additionally, Alphabet (GOOGL) returned to the bond market with a sweeping 10-part offering to fuel AI ambitions, and a major AI leadership shakeup saw Demis Hassabis step down as DeepMind CEO to become chairman and Alphabet chief scientist, with Jeff Dean leaving to co-found a startup—a signal of potential strategic shifts at Google.