Tech is bleeding: Buy the dip or wait for the bottom? 15/07/2026

 


HOT stories for today

Market wrap:

• US stocks advanced Tuesday after a softer-than-expected inflation report strengthened expectations that the Federal Reserve may avoid more aggressive interest-rate increases this year. The consumer price index fell 0.4% in June from the previous month, bringing the annual inflation rate down to 3.5%. Economists surveyed by Dow Jones had forecast a 0.2% monthly decline and a 3.8% yearly increase. The data prompted traders to scale back expectations for a near-term rate hike. The probability of an increase at the Fed’s July meeting dropped to 17% from 42% a day earlier, according to CME’s FedWatch Tool.
• Markets are still pricing in tighter policy later this year, however, with a 63% chance that rates will be at least a quarter-point higher after the September meeting. Geopolitical tensions remained in focus Wednesday after the US military launched another round of strikes against Iran and resumed a naval blockade near the Strait of Hormuz. The 10-year Treasury yield rose 2 basis points to 4.602%, while spot gold fell 0.6% to $4,030.25 an ounce. Silver declined 0.5% to $58.35. Oil prices also moved higher as the conflict intensified and concerns over disruptions to Iranian exports persisted. Investors are now turning to another busy earnings session, with United Airlines (UAL), Morgan Stanley (MS), Johnson & Johnson (JNJ) and BlackRock (BLK) scheduled to report Wednesday.

IBM Warning Deepens Software Selloff

• IBM's (IBM) record 25% plunge on Tuesday sparked a sharp rotation across the technology sector, reinforcing concerns that soaring AI infrastructure spending is diverting corporate budgets away from software. The company's weaker-than-expected preliminary earnings highlighted a growing trend: customers are prioritizing spending on servers, memory and AI hardware while delaying software purchases. Analysts say limited technology budgets are increasingly being directed toward the physical infrastructure needed to support artificial intelligence.
• The warning weighed on software stocks, with ServiceNow (NOW), Workday (WDAY), SAP (SAP) and Salesforce (CRM) all moving lower, while hardware, semiconductor and data-storage companies outperformed.Investors will now be watching upcoming software earnings closely to determine whether IBM's results signal a broader slowdown in enterprise software spending as the AI investment cycle continues to favor hardware.

Stocks on the move:

• CleanSpark (CLSK): Shares surged 11% after the digital-infrastructure company secured a 20-year data-center lease in Georgia, representing $6.6 billion in contracted revenue.
• HCA Healthcare (HCA): Shares fell more than 7% after the hospital operator cut its full-year earnings outlook. HCA now expects earnings of $28.70 to $30.50 per share, down from its previous range of $29.10 to $31.50, and also lowered the upper end of its 2026 revenue forecast.
• JPMorgan Chase (JPM): Shares gained 2% after the bank reported stronger-than-expected second-quarter results. Adjusted earnings came in at $6.14 per share on revenue of $58.02 billion, compared with analyst estimates of $5.85 per share and $50.19 billion.
• Apple (AAPL): Shares slipped 1% after KeyBanc downgraded the stock to underweight from sector weight. Its $250 price target implies about 21% downside, with the firm warning that higher prices could pressure consumer demand.
• IBM (IBM): Shares plunged 25% after the company issued weaker-than-expected preliminary second-quarter results. IBM expects adjusted earnings of $2.93 per share, below the $3.01 consensus estimate.

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Watchlist: IBM, META, ASML, JNJ, MS, PGR, CTAS, MU, SKHY

Key Economic Events Today:

EST time

08:30 am: USD Core PPI, PPI
08:30 am: USD Empire State Manufacturing Index
08:45 am: USD FOMC Member Williams Speaks
10:00 am: USD Fed Chairman Warsh Testifies
10:30 am: USD Crude Oil Inventories
02:00 pm: USD Beige Book


Earnings

BMO (Before Market Open): ASML Holding (ASML), Johnson and Johnson (JNJ), Morgan Stanley (MS), BlackRock (BK), Progressive Corp. (PRG)

AMC (After Market Close): United Airlines (UAL), J.B. Hunt (JBHT)


The TEFS Analyst team wishes you a successful day!