Futures Indices
- Dow Futures: -0.1%
- S&P 500 Futures: -0.2%
- Nasdaq 100 Futures: -0.3%
Market Environment
US index futures are down this Friday, extending yesterday’s decline. Employment market concerns are weighing on sentiment, as the US faces continued government paralysis.
Yesterday, indices dropped after a report showed a sharp increase in job cuts for October. This statistic reversed the bullish momentum sparked by strong ADP and ISM data released Wednesday. The 10-year US Treasury yield saw its biggest daily drop since October 2023 (-7.6 basis points).
“This move triggered a global return of risk aversion.” – Jim Reid, Deutsche Bank
The US government shutdown enters its 38th day, with negotiations still uncertain. A Senate vote on a temporary resolution is scheduled for today.
“In the absence of a functioning government, employment data is missing and markets are relying on unreliable indicators like opinion surveys.” – Paul Donovan, UBS
Additionally, several Fed members, including Philip Jefferson and Stephen Miran, will speak today, potentially providing further clues on the rate trajectory.
Stocks to Watch
Intellia (NTLA): -29.38%
Massive drop following the revelation of a patient death during a gene editing clinical trial in Q3.
Archer Aviation (ACHR): -14.08%
Double pressure: disappointing Q3 results and concerns over the agreement with Hawthorne Airport.
Azitra (AZTR): -13.74%
The stock slumped despite denying a $44 million fundraising reported in the media.
JFrog (FROG): +22.32%
Q3 results beat expectations and annual outlook revised upward.
Wendy’s (WEN): +8.72%
Profit above expectations, driven by international growth despite weakness in the US market.
Airbnb (ABNB): +4.16%
Although EPS missed expectations, the market welcomed improved margin forecasts for the year.
Fluor (FLR): +3.68%
Solid Q3 results and announcement of a NuScale monetization plan.
Nvidia (NVDA): -1.56%
Under pressure after revelations of a bearish position from Michael Burry on the stock.
Recommendation Changes
Upgrades
- AMD ($AMD) → CICC to outperform (from neutral), target raised from $166 to $265.
- Datadog ($DDOG) → KeyBanc to overweight, target $230.
- Expedia ($EXPE) → Piper Sandler to neutral, target raised to $250.
- Globus Medical ($GMED) → Truist to buy, target $93.
- Host Hotels ($HST) → Compass Point to buy, target $22.
- Parker-Hannifin ($PH) → Stifel to hold, target raised to $850.
- Black Hills ($BKH) → Scotiabank to sector outperform, target raised to $81.
Neutral
- Middleby ($MIDD) → JP Morgan to neutral, target lowered to $125.
- Astera Labs ($ALAB) → CITIC maintains add, target raised to $202.
- DuPont ($DD) → Citi maintains buy, target raised to $47.
- Bunge Global ($BG) → CICC maintains outperform, target raised to $110.
- Macom Tech ($MTSI) → Barclays maintains overweight, target $200.
- Natera ($NTRA) → Canaccord maintains buy, target $250.
- Warner Bros Discovery ($WBD) → Bernstein maintains market perform, target $23.50.
- Sandisk ($SNDK) → BNP Paribas maintains neutral, target $230.
- Instacart ($CART) → Bernstein maintains outperform, target cut to $45.
- Primo Brands ($PRMW) → JP Morgan maintains overweight, target cut to $23.
- Shift4 Payments ($FOUR) → RBC maintains outperform, target cut to $96.
- Strategy Inc. ($STRY) → President Capital maintains buy, target cut to $309.
- Hubspot ($HUBS) → Cantor maintains overweight, target cut to $500.
- Norwegian Cruise Line ($NCLH) → Jefferies maintains buy, target cut to $26.
Downgrades
- Americold Realty ($COLD) → RBC downgraded to sector perform, target reduced to $13.
- Carmax ($KMX) → RBC downgraded to sector perform, target cut to $34.
- Dentsply Sirona ($XRAY) → William Blair downgraded to market perform (from outperform).
Have a good session everyone!
Sylvain Mouilhaud: Stock Coach
