Chi — Week of Aug. 2, 2026
Market Overview
As of August 2, 2026, the S&P 500 is trading at approximately 7,000, having recovered 0.70% recently. Analysts project earnings growth of about 25% for the full year, indicating a bullish outlook despite the historical trend of declining performance in August. The Nasdaq Composite has also bounced back slightly, closing up 0.9% on the same day, following a rough July where it experienced declines. Economic indicators show an inflation rate at 3.5%, down from previous highs, while the Federal Reserve has maintained interest rates between 3.50% and 3.75% for several months, suggesting a cautious but stable economic environment. Overall, the market sentiment is cautiously optimistic as earnings reports loom, tempered by historical seasonal trends.
Long Picks
Kodiak Gas Services KGS
Technical Setup
Stock consolidating after pullback with support near $55-58 zone; trading above 200-day moving average; RSI around 45 provides room for upside without being overbought; bullish flag pattern forming ahead of earnings.
Fundamental Driver
Leading provider of outsourced natural gas compression with high-margin revenue model. Strong fleet utilization and analyst consensus indicating substantial upside.
Analyst Detail
(1) Core long argument: Kodiak benefits from structural tailwinds in U.S. natural gas production growth. Its modern compression fleet and 'as-a-service' model deliver predictable cash flows. Analysts project continued double-digit revenue growth. (2) Near-term catalysts include an earnings release on August 6. (3) Current levels near support offer a sound entry point into earnings given strong backlog visibility.
Cirrus Logic CRUS
Technical Setup
Shares holding above key 50-day moving average; MACD showing early bullish crossover. Support at $125 with resistance near $140-150.
Fundamental Driver
Leader in high-performance mixed-signal chips with strong revenue growth and high gross margins.
Analyst Detail
(1) Core long argument: Cirrus Logic is executing a multi-year transformation with expanding content per device in premium smartphones and new audio converters. (2) Near-term catalysts include earnings on August 5. (3) Current price near support provides an attractive entry ahead of earnings.