Mid-Morning Look

Monday, August 11, 2025

U.S. stocks opening flat to slightly higher, looking to build on last week gains as the Nasdaq Comp and Nasdaq 100 (QQQ) look to extend its record closing highs last Friday, with the S&P 500 knocking on the door of yet another record high. No major economic data this morning, but some big inflation reports this week with CPI tomorrow (8/12) and PPI on Thursday 8/14). Semiconductors in the news after the White House confirms NVDA and AMD to pay 15% of AI chip sales in China to the U.S. to secure export licenses. Early strength in the usual suspects with Tech, Communications leading, along with a bounce this morning in healthcare. Defensive Staples, REITs and Utilities lagging as investors look to high beta trades. Markets awaiting a further pushout with trade deal for China as deadline approaches. Among top sector movers on news, crypto assets rise behind strength in Bitcoin/Ethereum; cannabis stocks jump on media reports President Trump considers reclassifying marijuana as less dangerous drug; lithium stocks surge on speculation of supply disruptions in China; media names active on M&A news (TGNA, TKO); semis get a boost after MU raises guidance; few other M&A deals announced today (IMXI rising as well as MLNK if separate deal headlines – see below). More momentum buying to kick off the week as fear remains absent for investors, gold plunges 2%.

• In Crypto: Bitcoin prices are surging, to highs around $122K before paring gains, while a weekend rally saw Ethereum surge to above $4,300, its highest level since Dec. 2021. CLSK appoints Matt Schultz CEO; reaffirms previously announced strategic plans. The crypto sector was bid higher all morning with miners such as HIVE, HUT, CIFR, IREN, MARA RIOT rising along with other crypto plays COIN, CRCL.
• In Metals & Mining: Gold miner Barrick (B) shares fell as Q2 gold production and sales volumes missed consensus estimates as operations at the Loulo-Gounkoto mine were suspended and the Carlin mine had a shutdown at the Gold Quarry roaster. In copper, FCX was upgraded to Overweight from Equal Weight at Morgan Stanley with an unchanged price target of $48 saying shares are not pricing in the benefits that will accrue to Freeport from the copper tariffs. FNV shares tumble as revenue miss overshadows record earnings ($1.24/$369.4M vs. $1.13/$378M).
• In Industrials: CMI was upgraded from Peer Perform to Outperform at Wolfe Research with $480 tgt saying wile Engine results remain pressured with a continued weak Class 8 truck market, CMI is delivering structurally higher margins and earnings that Wolfe believes should support a higher valuation. GNRC was upgraded from Underperform to Hold at Jefferies and raised tgt to $200 from $150, positive on the strategic shift away from the underperforming clean tech investments, which should raise margins. AAON shares tumbled after posting a Q2 sales miss.

• AVTR +4%; as activist investor Engine Capital has urged medical equipment maker AVTR to refresh its board with new directors, a letter on Monday showed. Engine Capital owns about 3% of the outstanding shares of Avantor.
• ELF +8%; was upgraded from Equal Weight to Overweight at Morgan Stanley and raised tgt to $134 from $114 saying considering potential profit contribution far above consensus expectations from pricing, upside from rhode accretion, and solid base business growth.
• IMXI +63%; as WU entered into a definitive agreement to acquire Intermex (IMXI) in an all-cash transaction at $16.00 per IMXI share, representing a total value of approximately $500 million
• MLNK +23%; announced it would be acquired by funds advised by affiliates of Centerbridge Partners, L.P. in an all-cash transaction that values MeridianLink at an enterprise value of approximately $2.0B, with MeridianLink holders receiving $20 per share in cash.
• MSOS +12%; Cannabis stocks rise (CURLF, TCNNF, CGC, CRON, TLRY) after the WSJ reported President Trump considers reclassifying marijuana as less dangerous drug. The President told donors earlier this month he was interested in reclassifying the drug https://tinyurl.com/ysxvy4p4
• MU +5%; raised their Q4 fiscal 2025 guidance, increasing revenue expectations to $11.2B +/- $100M, previous guidance $10.7B +/- $300M and raises 4Q adjusted eps view to $2.85, plus or minus $0.07 from $2.50 +/- $0.15 and vs. consensus $2.77 and also raised margin guidance.
• RUM +14%; after announces its intent to buy AI firm Northern Data where Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each Northern Data share tendered.
• TGNA +27%; shares surged after the WSJ reported late Friday that broadcaster NXST was in talks to acquire its smaller rival, citing people familiar with the matter. A transaction could coalesce soon, assuming negotiations don’t hit any last-minute snags https://tinyurl.com/4x9npefc

• ALTS -9%; after announcing a $1.5B registered stock deal and concurrent private placement to buy $WLFI tokens from World Liberty Financial. Overall, 200M shares will be issued by ALTS at $7.50 apiece, implying 16.4% discount to stock’s last close.
• B -3%; after Q2 gold production and sales volumes missed consensus estimates as operations at the Loulo-Gounkoto mine were suspended and the Carlin mine had a shutdown at the Gold Quarry roaster.
• LGND -7%; after announcing a $400 million offering of convertible bonds due 2030 in a private placement.
• MNDY -26%; shares tumbled on results as Q2 EPS $1.09 topped the $0.86 estimate on better revs $299M vs. est. $293.58 but narrows its FY25 revenue view to $1.22B-$1.23B from $1.22B-$1.26B (est. $1.22B) and sees FY25 operating income $154M-$158M.
• OMI -26%; shares fell on results as Q2 adj EPS $0.26 vs. est. $0.27 on revs $681.9M with adj Ebitda $96.6M vs. est. $128.8M.
• UPST -3%; shares fell after announcing a private offering of $500 million of convertible bonds due 2032 saying proceeds will be used to repurchase a portion of its convertible bonds due 2026 and to pay cost of capped calls, derivative transactions to offset dilution.