Pre-market futures are mostly up at this hour, but off earlier morning highs. Global concerns about AI spending have once again dominated conversations on Wall Street over the past week or so, and after 20%+ growth in the tech-heavy Nasdaq year to date, the June swoon has taken profits and brought down gains here in the final weeks of the first half of calendar 2026.
Earnings results for one of the more recent trillion-dollar AI companies, Micron MU, are due after today’s close. The Zacks Rank #1 (Strong Buy) company is up +3% in early trading this morning, but roughly flat over the past month and -4% in the days leading up to the print. Expectations are typically lofty for one of the top AI firms, with +998% projected earnings gains on +292% in revenues for its fiscal Q3 performance.
Micron is working on a string of 12 straight earnings beats, with the trailing four-quarter average around +21%. So +1000% earnings growth year over year would not be too big of a surprise. That said, the share price has exploded to $1100 per share. A year and a half ago, Micron was trading under $100 per share.
Homebuilding Takes Center Stage After Months in Crisis
In a bipartisan bill passed by both houses of the U.S. Congress — when’s the last time we said that? — the 21st Century Road to Housing Act demonstrates lawmakers addressing the struggles in the domestic housing market. With a deficit of between 4-7 million homes and demand pushing prices ever higher, including +6% per month in places like Chicago, we see the housing formation on which much of the economy relies wallow at crisis levels.
The Road to Housing Act aims to cut both time and costs to create new housing, reducing red tape and staunch requirements for building. It also will give local jurisdictions more flexibility to convert unused structures into multi-family housing units, with monetary incentives included for communities committed to increasing housing supply. The bill is scheduled to be signed into law by President Trump today.
After today’s opening bell, New Home Sales for May are due. Expectations are for a bump of +10K from the previous month to +632K seasonally adjusted, annualized units, which would remain on the low end of the range over the past 10 years. Compare this with the recent high — +748K in November of 2025 — and low: +576K in January of 2026.
The tally for April demonstrated a downturn of -6.2% in new home sales, as mortgage rates stayed aloft and home prices continued to climb, particularly in the big cities. The survey saw a 9.4 months’ supply of new housing, totaling 489K units. The median price for a new home last month, nation-wide, was $422,500.
KB Home KBH, in its fiscal Q2 report Tuesday afternoon, saw a +2% beat on revenues but a -0.99% miss on earnings. These were off expectations of -71% earnings growth year over year and -28% on revenues. Homebuilder Lennar LEN and Pulte Home PHM report earnings roughly four weeks from now.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
