Rebel’s Edge Notes

Positive sentiment is supported by recent economic data indicating stability in inflation and jobless claims, which may ease concerns about aggressive interest rate hikes from the Federal Reserve. In the U.S., initial jobless claims released today rose to 209k for the week ending August 8, above the 202k expected, though the level still suggests continued strength in the labor market. Additionally, producer prices were flat in July, contrasting with forecasts of a slight increase, which may further support a dovish stance from the Fed regarding future rate hikes.

Prediction: NFL MVP – Josh Allen leads

TPR (Tapestry) – Approximately -15%: Luxury goods company (Coach, Kate Spade) reported results that failed to satisfy elevated expectations despite an upbeat outlook in some reports. Shares gapped lower and continued selling as investors focused on growth sustainability or other details.  While the company returned to profitability with net income of $347.8 million, compared to a loss of $517.1 million a year earlier, it did not meet revenue expectations for fiscal 2027.   Sharp gap-down from recent levels near $150+. Key near-term support around prior consolidation zones or the $120–$130 area; resistance at the gap-fill near the prior close. High volume confirms the move

CSCO: Networking giant beat on revenue/EPS and issued strong FY2027 guidance driven by AI infrastructure, but margin outlook (gross margins guided lower) triggered profit-taking after a strong YTD run. Cisco Systems Inc reported strong fourth-quarter results, with revenue of $17.25 billion exceeding the forecast of $16.82 billion and adjusted earnings per share of $1.22 surpassing the consensus estimate of $1.17. Despite this positive performance, the stock is trading lower in pre-market hours, reflecting a sell-off following the earnings announcement. Investors reacted to the company’s guidance for fiscal 2027, projecting revenue between $72.2 billion and $73.4 billion and adjusted EPS of $5.05 to $5.11, which, while above estimates, did not alleviate broader market sentiment concerns. This decline follows a modest increase in after-hours trading yesterday, highlighting a significant reversal in sentiment as trading approaches the regular session.

COHR: Coherent Corp’s stock is experiencing a notable decline in pre-market trading, despite a price target increase by Needham to $420 from $380 and strong fourth-quarter earnings results. The company reported revenue of $2.05 billion and adjusted earnings per share of $1.74, both surpassing analyst expectations. However, the stock’s downward pressure appears to stem from heightened market expectations following a recent surge in share price. Analysts suggest that while the company’s fundamentals remain strong, there are concerns about sustaining aggressive growth projections. Social media discussions indicate a sentiment that the stock may have been overvalued leading into the earnings announcement, despite robust demand in key segments.

CBRS (Cerebras Systems) – Approximately -12%: AI chip/wafer-scale company missed on headline GAAP revenue despite strong core/cloud growth and raised full-year guidance. Hardware sales declined (“lumpy” demand and data-center constraints), raising questions about scaling vs. Nvidia. Large post-IPO name with high expectations. Technicals: Continued weakness from the post-earnings gap (prior close ~$262). Support levels near $215–$220 (pre-market area), then $200–$205 and stronger horizontal support around $168–$172 / 52-week low zone near $161. Resistance at the gap and recent highs. High volatility; volume elevated.