Market review from UTEX — week 33

Wall Street closed the week in the green: the SPY rose 2.6%, the Nasdaq gained 4.3%. Top gainers: Coherent (+40%), Palantir (+36%), Zebra Technologies (+27%), Lumentum (+24%). The most notable declines were in The Trade Desk (-26%), Western Digital (-23%), and SanDisk (-12%).

Bitcoin rose 4.2% and is now trading around $65,100. Ethereum climbed 4.5% to $1,920.

July was very weak for the labor market: nonfarm payrolls fell by 23,000 versus a forecast of +88,000 — the weakest reading since February. Data for May and June were also revised down by more than half. The unemployment rate unexpectedly fell from 4.2% to 4.1%, but not due to an improvement in employment — some people likely just stopped looking for work.

The key data this week will be the Consumer Price Index (CPI) and Producer Price Index (PPI) for July. Analysts expect consumer inflation to slow by 0.1% and producer inflation by 0.6%.

Earnings season continues, with results from Rocket Lab, AST SpaceMobile, Hims & Hers Health, Super Micro Computer, CoreWeave, Nebius, Intuitive Machines, and Applied Materials due in the coming days.

Top trading ideas for this week

🔴 Rocket Lab (RKLB). Report on August 10 after market close. Investors will be focused on the total backlog, which already exceeds $2.2 billion, as well as updates on the development of the Neutron heavy‑lift rocket. In late July, the company secured a record contract for suborbital launches for U.S. missile defense. Earlier, Rocket Lab signed a $397 million defense contract. In late June, NASA also selected Rocket Lab to launch research satellites as part of solar and Earth exploration programs.

🔴 CoreWeave (CRWV). Report on August 11 after market close. Traders are pricing in a potential swing of up to 13% in either direction after the report. Investors expect significant revenue growth but are concerned about data center construction delays. Ahead of the report, the stock has pulled back 35% from its highs.

🔴 Lumentum Holdings (LITE). Report on August 11 after market close. The stock has more than doubled since the start of the year. Zacks and Visible Alpha analysts forecast revenue growth of more than 100% year‑over‑year, with an average price target around $1,110–$1,126. Last week, the stock jumped 25% on news that the U.S. may ban imports of new Chinese optical transceivers for U.S. data centers. Lumentum would be a direct beneficiary of demand redirected from giants like Microsoft, Amazon, and Meta.

🔴 Cisco Systems (CSCO). Report on August 12 after market close. The stock has risen 50–60% year‑to‑date. Zacks and LSEG forecast profit growth of roughly 18% year‑over‑year. Cisco's management sharply raised its AI infrastructure order target from hyperscalers for fiscal 2026 from $5 billion to $9 billion. In the previous quarter, the company booked $1.9 billion in AI orders in just three months, triple the year‑ago figure. The average price target is around $123–$135.

🔴 Cerebras Systems (CBRS). Report on August 12 after market close. One of Nvidia's main competitors. After the previous report (+94% year‑over‑year revenue growth), analysts expect continued explosive growth driven by sales of its massive Wafer‑Scale Engine 3 AI chip. The main focus will be on gross margin and whether the company is reducing its reliance on a limited pool of large clients. The average price target is $281.36.

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