US EQUITY OPEN: Stocks mixed at the open; software & cyber hit on ZS guidance miss

OPEN: US equities open flat with the move higher in semis/memory showing moderation for now with SMH -0.5% and DRAM +1.7%. Energy continues to underperform benchmarks on optimism that a deal between the US and Iran is getting closer; the latest leg lower came on Iran State TV reports that it has a draft of the initial, unofficial framework for the MoU with the US. According to the draft MoU, US military forces will withdraw from the vicinity of Iran and lift the naval blockade. The move lower in oil prices has seen slight weakness in the dollar and upside in T-notes. Updates this afternoon on US supply include a US 2yr FRN and a US 5yr note auction. Tech and Financials underperform; meanwhile, Consumer Discretionary, Staples and Healthcare outperform. Software names (IGV -1.1%) have seen pressure, specifically, cybersecurity (CIBR -2.4%), after Zscaler reported disappointing guidance despite beating on Q3 metrics. In other news, the NZD outperforms on a hawkish RBNZ hold, while precious metals are hit on concerns over persistent inflation.

STOCK SPECIFICS

• Sandisk (SNDK): Upgraded at Barclays to 'Overweight' from 'Equal Weight'.
• Zscaler (ZS): Q4 rev. outlook missed gave "disappointing" initial FY27 guidance.
• Semtech (SMTC): EPS & rev. beat.
• Insulet (PODD):  Announced a voluntary medical device correction for specific lots of several pods.
• Verra Mobility (VRRM):  Received a contract termination notice from Avis Budget CAR, effective September 2026.
• Hims & Hers Health (HIMS): Board Member Wells bought ~$1.2M in stock.
• Dycom (DY): Earnings & guidance beat.
• Bath & Body Works (BBWI): Adj. EPS beat.
• FedEx  (FDX): Upgraded at JPMorgan to 'Overweight' from 'Neutral'.
• Dollar General (DG): Downgraded at Deutsche Bank to 'Hold' from 'Buy'.