WS #13950

The dominant theme remains elevated oil prices and Middle East tensions, with Brent crude at $88.72 (-0.21%) and WTI near $83.1, supported by continued refinery disruptions from Ukrainian and Houthi attacks. This window is dominated by a heavy earnings cycle, with several high-significance beats and misses. Cisco (CSCO) crushed Q4 estimates with revenue of $17.25B (+17.6% Y/Y) and issued bullish FY27 guidance ($72.2B-$73.4B vs $68.69B est.), driven by $4B in AI orders, sending shares up 2.5% in extended trading. Coherent (COHR) also beat Q4 estimates and raised Q1 guidance on AI demand. However, Cerebras Systems (CBRS) tumbled after weak Q2 results (EPS -$2.98 vs -$1.41 est.) despite raising full-year guidance, highlighting a divergence in AI hardware sentiment. Other notable earnings include Grocery Outlet (GO) beating and raising guidance, and Leslie's (LESL) withdrawing its full-year outlook due to macroeconomic softness. The White House Press Secretary departure is confirmed by multiple sources but is not market-moving. The US DOE decision to not move forward with three proposed transmission corridors is a notable policy signal for the energy sector. Overall, the market narrative is stable with a tech-led rally, but oil prices remain a key risk factor.