Midday Mashup, 2026年10月28日

The earnings wave that was overwhelming the Gulf conflict this morning is now colliding with it. Iran has rejected the latest US proposal, delivered through Qatar, for a seven-day plan to reopen the Strait of Hormuz, calling Washington's demand for upfront transfer of its uranium and an immediate end to the blockade a list of "unacceptable demands, not an offer." Iran's foreign minister says the country remains in contact with intermediaries and is still willing to explore ways to implement its own seven-day plan faster, but its armed forces are "fully prepared to defend the country." Oil futures have turned higher, up roughly $3 a barrel, with fresh fighting in Yemen and a new missile attack on Aden's airport renewing supply concerns. European gas has reached €100 for the first time since 2022.

Equities are holding up despite the geopolitical reversal, with the S&P roughly flat as sector dispersion widens. Semiconductor and health care names are driving gains: SK hynix is up 13.2%, Fabrinet 7.8%, and Flex 9.9%, while Labcorp jumps 10.5%. On the other side, F5 Networks has fallen 20.5% and Enphase Energy 17.0%, with CoStar Group down 13.7%, C.H. Robinson off 11.6% and Lennox International down 10.2%. Vertiv is the standout industrial gainer at 14.2% after raising guidance.

Corporate activity remains heavy. Amphenol beat estimates with revenue up 65% and raised its dividend 20%, GE Vernova agreed to buy Trench Group for $9 billion, and Penske Automotive is being taken private by its namesake Penske Corporation and Mitsui at $212 a share, valuing the company near $16.3 billion. Old Dominion Freight Line matched estimates on improved operating ratio, and Clean Harbors raised full-year guidance alongside a CEO transition. Dropbox is cutting 9% of its workforce as part of a reorganization, saying the move is unrelated to any shortfall in results.

Policy news added to the mix: the Bank of Canada raised its rate to 2.5% and warned further hikes may be needed as energy costs persist, while the UK's budget showed borrowing rising to 4.2% of GDP next year and the OBR cut its 2027 growth forecast to 1% from 1.6%, citing the energy shock.