Ten Stories Moving the Market

Artificial Intelligence cloud company CoreWeave lifted its targets for ​2026 revenue and adjusted operating profit, encouraged by a ballooning order book, benefits from ​price increases and more compute capacity coming online this year – Reuters. (Why you should care – the raised guidance speaks to the lack of available data center compute capacity)

Super Micro Computer forecast fiscal 2027 revenue above Wall Street expectations, betting that ​strong demand for its AI-optimized servers would fuel another year of ‌growth – Bloomberg. (Why you should care – management forecast current quarter revenue of $14.5 billion to $15.5 billion, exceeding the highest analyst forecast of $13.3 billion)

Lumentum Holdings reported fiscal fourth-quarter earnings and revenue that topped consensus estimates amid high expectations; the company's fiscal first-quarter 2027 guidance also came in ahead of consensus estimates – Investor’s Business Daily. (Why you should care – the report speaks to the strength in demand for data center equipment)

Pakistani Defense Minister Khawaja Asifsaid the U.S. and Iran are “close to some sort of arrangement” over the Strait of Hormuz, even after both sides appeared to toughen their positions in the long-deadlocked negotiations – Bloomberg. (Why you should care – a reopening of the Strait would weigh on global oil prices and inflation growth moving forward)

The U.S. military fired on a Panama-flagged container ship as it attempted to transit the Gulf of Oman to an Iranian port in violation of a US naval blockade on Iran – FT. (Why you should care – the U.S. is seeking to squeeze Iran’s economy in an effort to strike a deal that reopens the Strait of Hormuz)

A key oil supply valve from the Middle East that involves shuttle transits through the Strait of Hormuz is continuing to function in the face of a recent spate of attacks; U.S. Energy Secretary Chris Wright said the seven-day average for oil leaving Hormuz is almost 9 million barrels a day – Bloomberg. (Why you should care – that’s roughly half the total when the Strait was fully open)

Canada's minister in charge of U.S. trade relations, Dominic ​LeBlanc, met with U.S. trade officials for ‌the third time in as many weeks to try to avert looming tariffs on August 19; the U.S. Trade Representative's office said that the tariffs would ​apply to nearly $20 ​billion of imports ⁠from Canada – Reuters. (Why you should care – Ottawa is said to be prepared to offer some concessions to strike a deal)

Demand for electricity in Texas is expected to grow at a far slower pace after the state imposed a pause on new data center projects; state power demand is forecast to rise by 5.6% next year, compared to the 14% annual load growth predicted in a July government report – Bloomberg. (Why you should care – Texas recently decided to conduct an audit on all proposed data center projects seeking to connect to the state’s power grid)

Home sales fell in July, getting the summer off to a poor start after the housing market suffered through another sluggish spring selling season; sales of existing homes declined 1.7% in July over the previous month to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors – WSJ. (Why you should care – elevated interest rates continue to weigh on the housing market, keeping a lid on domestic economic growth)

Federal Reserve Bank of Chicago ‌President Austan Goolsbee is more concerned about too-high inflation than about any labor market weakness; Goolsbee characterized the labor market as being stable, without being good – Reuters. (Why you should care – Goolsbee is not a voter on the rate setting FOMC this year)

Economic Calendar:

Earnings – COHR, CSCO, EAT, NBIS, PFGC, TRMB

U.S. – IEA Monthly Report (5 a.m.)

U.S. - MBA Mortgage Applications (7 a.m.)

U.S. – CPI for July (8:30 a.m.)

U.S. - Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)

Treasury Auctions $42 Billion in 10-Year Notes (1 p.m.)

U.S. – Federal Budget Balance for July (2 p.m.)