WS #13525

The market is navigating a busy earnings session with several high-profile moves. Applovin (APP) tanked 18% premarket on a Q2 revenue miss and a Piper Sandler downgrade (PT cut from $665 to $385), signaling AI-adtech valuation pressure. HubSpot (HUBS) faces its largest one-day drop in history after weak guidance, with analysts slashing targets. Datadog (DDOG) continues to slide 14% on soft guidance despite strong revenue growth. On the positive side, SoundHound AI (SOUN) soared 26% on strong results and raised guidance, while Novavax (NVAX) raised its 2026 revenue outlook after a Q2 beat. Constellation Energy (CEG) jumped on a Q2 beat and raised FY26 EPS guidance, riding surging power demand. Hertz (HTZ) surged 16% on a Q2 beat with high short interest. Fox (FOXA) declared a dividend after its strong quarter. In the AI infrastructure space, Zayo announced an 8,000-mile fiber build with NVIDIA to scale AI factory capacity, and Alphabet is seeking up to $25 billion from its bond sale. The AI leadership shakeup at Google (Hassabis to chairman, Jeff Dean to startup) is a strategic signal. Geopolitically, the Strait of Hormuz situation shows signs of de-escalation with Iran and Oman agreeing on a 60-day transit route, though reopening remains conditional; this counters the bearish oil thesis. Ukraine struck two Russian oil refineries (Bashneft-Novoil and Slavneft-Yanos), which could support oil prices. US jobless claims came in at 199K, below estimates, indicating a resilient labor market. The Fed remains hawkish with officials signaling potential rate hikes, which pressures growth stocks. Bitcoin is trading around $64-65K with low volatility, and prediction markets show a higher chance of hitting $50K than $100K in 2026.