Market Snapshot

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📉 Banana Bits

• Warren Buffett steps down as Berkshire chairman, handing the role to son Howard

• Google’s Gemini breached three companies during an authorized cybersecurity test

• Kashkari says inflation remains too high across the U.S. economy, not just energy

• U.S.-China talks tackle AI, trade and critical minerals ahead of the Trump-Xi summit

• Japan raises interest rates to a 31-year high as inflation stays near target

Market News

Chip strength supported Friday’s mixed close, while lower oil lifts futures before Monday’s bell.

Wall Street finished mixed Friday as rising Treasury yields and expensive oil kept inflation concerns front and center. The 10-year yield briefly topped 5%, while WTI settled at $100.30 a barrel. A semiconductor rally helped the S&P 500 gain 0.17% and the Nasdaq climb 0.40%, but the Dow slipped 0.18% and declining stocks outnumbered advancers across both major exchanges.

Trading volume surged during triple witching, when stock options, index options, and index futures expired simultaneously. Approximately 25.29 billion shares changed hands across U.S. exchanges, roughly 56% above the recent 20-day average. Bitcoin also jumped 5.9% to around $81,000, while the yen pared its losses after reports that Japanese authorities conducted rate checks, a potential step toward currency intervention.

The economic data added another warning sign. U.S. factory output unexpectedly fell 0.3% in August after seven consecutive monthly gains, missing expectations for a 0.3% increase. Overall industrial production was unchanged as weakness in motor vehicles, computer equipment, and other durable goods offset stronger utilities output.

Monday’s setup is more positive. S&P 500 futures rose approximately 0.4% and Nasdaq futures gained 0.6% as Asian chipmakers rallied. WTI fell below $99 on signs that more Gulf supply was reaching the market, while the 10-year Treasury yield eased back to around 4.97%.

Peel Take: Friday was a split-screen market. Chipmakers kept the major indexes afloat, even as weak breadth, $100 oil, and a 5% Treasury yield showed growing pressure beneath the surface. Monday is offering some relief, with oil and yields easing and futures pointing higher. But markets are still pricing roughly a 56% chance of another Fed hike in October, meaning any renewed jump in energy prices or yields could quickly test the chip-led bounce.

What's Ripe

Strategy Inc. (MSTR) 16.39% 

• Strategy surged 16.4% as Bitcoin jumped 5.9% to around $81,000, increasing the value of the company’s enormous crypto holdings. The rally extended across crypto-linked stocks, with Coinbase and Robinhood also climbing sharply.

• Peel Take: Strategy remains one of Wall Street’s most amplified bets on Bitcoin. When crypto rallies, its enormous Bitcoin treasury can send the stock moving even faster, making Strategy behave like Bitcoin with the volume turned up.

Sandisk Corp. (SNDK) 10.99% 

• Sandisk jumped 11% as the rally in AI-linked memory stocks continued, supported by tight NAND supply, rising industry prices, and growing demand for data-center storage. The company was also scheduled to join the S&P 100 before Monday’s opening bell, providing another technical tailwind for the shares.

• Peel Take: AI requires more than advanced processors. It also needs enormous amounts of high-speed storage. Tight NAND supplies are giving Sandisk greater pricing power, while its S&P 100 addition creates additional demand from index-tracking funds.

What's Rotten

Nucor Corp. (NUE) 6.32%

• Nucor dropped 6.3% after forecasting third-quarter diluted EPS of $5.55 to $5.65, below the $5.87 FactSet consensus. The steelmaker expects higher earnings from its steel mills and steel products businesses, but weaker raw-materials results and the absence of a $130 million procurement-cost refund that benefited the previous quarter weighed on the outlook.

• Peel Take: Nucor’s core steel businesses are still improving, but investors had already priced in stronger results. Weaker raw-materials profitability and the loss of a previous one-time benefit left its outlook below Wall Street’s expectations.

Netflix Inc. (NFLX) 4.67%

• Netflix dropped 4.7% after Wells Fargo downgraded the streaming giant to Underweight from Neutral and cut its price target to $57 from $80. The bank said daily viewing time per subscriber during the first half of 2026 was approximately 8% lower than in the first half of 2023, citing weaker engagement and a lack of breakout original series.

• Peel Take: Netflix may lead the streaming pack, but staying on top requires a steady supply of must-watch shows. Without another Stranger Things-sized hit, the company may need to spend more heavily on original content to get viewers watching again.

🧠 Technical Trip

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🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

• Paramount’s Warner Bros. deal secured FCC clearance for foreign backing, though litigation still blocks closing

• The FedEx-Advent group secured 89.81% of InPost shares, clearing its €7.8 billion takeover threshold

• Harworth rejected Peel Holdings’ sweetened £599.8 million takeover offer, saying it still undervalued the company

• Orion180 raised $240 million in its Nasdaq IPO after pricing shares below the marketed range

• AI forecasting startup Mantic raised a $25 million seed round led by Radical Ventures

Student Success Corner

Banana Brain Teaser

Previous

A company has $500 million of revenue and a 30% gross margin. Management cuts COGS by 8%, while revenue stays unchanged. What is the company’s new gross margin?

Answer: 35.6%

Today

A stock earns $4.00 of EPS and trades at 15× P/E. EPS rises 25%, but the P/E falls by 20%. What is the new stock price?

How Would You Rate Today's Peel?

Happy Investing,
Chris, Elie, Mitchell, Fernanda, Nick, & Patrick

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