US PREMARKET ACTIONS: August 27, 2025

**Futures Indices**
Dow Futures: 0.02%
S&P 500 Futures: 0.00%
Nasdaq 100 Futures: 0.10%
US 10-year yield: 4.28%

**Market Environment**

US markets are moving without clear direction this Wednesday, as investors remain cautious ahead of the highly anticipated Nvidia (NVDA) earnings report after the close. Analysts expect +50% annual revenue and earnings growth, driven by strong demand for AI chips and data center momentum.

Other key earnings are also expected today, including results from CrowdStrike (CRWD), Snowflake (SNOW), and HP (HPQ).

On Tuesday, Wall Street closed slightly higher despite political tensions. Former President Donald Trump announced he wants to remove Lisa Cook, a member of the Fed's board of governors, over a mortgage fraud case. Cook has announced she will file a lawsuit to contest this decision.

"US economists do not anticipate a radical short-term policy change, as Cook was already one of the most dovish members of the committee. However, there could be broader implications for the Fed, since a majority of the board of governors (not the full FOMC) is sufficient to adjust the interest rate on required reserves." — Henry Allen, Deutsche Bank

Despite this uncertainty, markets advanced, with the S&P 500 ending just -0.04% from its all-time high, supported by economic data arguing against a sharp slowdown, especially after the recent jobs report.

Furthermore, the US has doubled tariffs on certain Indian products to 50%, reigniting trade tensions with New Delhi.

**Stocks to Watch**

MongoDB (MDB) +30%
Q2 results exceeded expectations and outlook raised for the full year. Annual revenue now forecasted between $2.34 and $2.36 billion, versus $2.29 billion expected by the market.
Kohl’s (KSS) +15%
The group raised its guidance despite mixed quarterly results. Now targeting annual EPS between $0.50 and $0.80, versus consensus at $0.50.
nCino (NCNO) +12%
Strong Q2 performance with high subscription revenue momentum. The company raised its annual guidance, with expected EPS between $0.77 and $0.80.
Okta (OKTA) +6%
Better-than-expected results and acquisition of Israeli startup Axiom (~$100M) to strengthen its cloud identity offering. Strong demand in the public sector and for Auth0 products.
PVH (PVH) +6%
Sales growth for Tommy Hilfiger and Calvin Klein. Raised annual targets despite the estimated negative impact of $0.25/share from new tariffs.

Down

J.M. Smucker (SJM) -6%
Results missed expectations for both revenue and EPS. Although sales guidance was raised, the stock fell.
Deutsche Bank (DB) -3%
The stock dropped after a downgrade from Goldman Sachs, citing limited upside potential following a +50% rally since the start of the year.

**Recommendation Changes**

Upgrades

Eli Lilly ($LLY) → HSBC upgrades to Hold from Reduce, target raised from $675 to $700.
MongoDB ($MDB) → Baird affirms Outperform, target raised from $260 to $335.
Aecom ($ACM) → Baird remains at Outperform, target raised from $130 to $138.
Carnival Corp ($CCL) → Rothschild & Co Redburn maintains Buy, target raised from $37 to $43.
Delta Air Lines ($DAL) → Goldman Sachs maintains Buy, target raised from $67 to $68.
Domino’s Pizza ($DPZ) → Guggenheim remains Neutral, target raised from $485 to $490.
Expedia Group ($EXPE) → Baptista Research maintains Hold, target raised to $235.90.
Allegion ($ALLE) → Mizuho affirms Neutral, target raised to $170.

Neutral

Globalfoundries ($GFS) → Arete Research upgrades from Sell to Neutral, while lowering the target to $37.
Camden Property Trust ($CPT) → Truist remains at Buy, but lowers the target from $131 to $123.
Lululemon ($LULU) → Citi maintains Neutral, target lowered from $270 to $220.

Downgrades

The Trade Desk ($TTD) → Baptista Research downgrades from Outperform to Buy, with a lower target of $74.30.

Have a great session everyone
Sylvain Mouilhaud: Stocks Coach