US PREMARKET ACTIONS: October 13, 2025

Futures Indices

Dow Futures: +0.7%
S&P 500 Futures: +1.1%
Nasdaq 100 Futures: +1.5%

Market Environment

US index futures gave up part of their early gains following strong remarks from Treasury Secretary Scott Bessent, who called China's export restrictions a "provocation" and insisted that the United States had "responded firmly."

Intense exchanges took place over the weekend between Chinese and American officials, with more meetings scheduled in the coming days. Bessent suggested the US could take an even tougher stance if Beijing refused to cooperate.

On Friday, indices dropped sharply after Donald Trump threatened to raise tariffs on China, calling the country "very hostile," and sent letters to other countries to encourage export restrictions.

Nevertheless, in a Sunday post, Trump tried to ease tensions, calling Xi Jinping "highly respected" and saying both nations want to "avoid economic pain," adding that the US "wants to help China, not harm it."

According to the press, Trump is considering banning the export of Boeing aircraft parts to China in retaliation for Chinese restrictions on rare earths.

“I think the recent improvement is mainly due to American fears of shortages if the punitive tariffs announced after Liberation Day were actually implemented,” explains Jim Reid (Deutsche Bank).

“The current suspension of US surtaxes expires on November 10. There's still time to negotiate, and the market may soon start to price in a reasonable chance of a deal once the shock passes,” he adds.

Meanwhile, the US government shutdown enters its 13th day, and earnings season begins this week with reports from JPMorgan (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Bank of America (BAC), and Morgan Stanley (MS).

Stocks to Watch

Advanced Micro Devices (AMD) + premarket expected higher
KGI Securities upgrades its rating to outperform with a price target raised from $150 to $260, driven by increasing confidence in AI demand.

Rocket Lab (RKLB)
Morgan Stanley maintains its equal-weight rating but sharply raises the target from $20 to $68, recognizing the company’s tech advancements.

Comfort Systems USA (FIX)
Stifel remains at buy, raising the target from $746 to $917, reflecting continued growth in climate infrastructure.

MKS Instruments (MKSI)
Morgan Stanley confirms its overweight rating, target revised from $120 to $151, citing solid demand recovery in semiconductors.

Fiserv (FISV)
Goldman Sachs remains at buy but lowers the target from $192 to $149, citing more cautious digital payments growth outlook.

Robert Half (RHI)
BMO Capital remains neutral, reducing its target from $47 to $36, due to persistent weakness in temp employment demand.

Mid-America Apartment Communities (MAA)
Wolfe Research maintains its underperform rating and cuts its target from $152 to $121, citing pressures in the residential rental market.

Rating Changes

Upgrades

Advanced Micro Devices (AMD) → Upgraded to outperform by KGI Securities, target: $260

Neutral

APA Corporation (APA) → Rating maintained at "in-line" by Evercore ISI, target raised from $16 to $21
Cleveland-Cliffs (CLF) → Rating maintained by JP Morgan, target raised from $10 to $13
Bloom Energy (BE) → "Outperform" maintained by Baird, target from $76 to $94
Comfort Systems USA (FIX) → Buy maintained by Stifel, target $917
MKS Instruments (MKSI) → Overweight confirmed by Morgan Stanley, target $151
Rocket Lab (RKLB) → Equalweight maintained, target strongly raised to $68
Sandisk (SNDK) → Equalweight maintained by Wells Fargo, target doubled from $50 to $115

Downgrades

Fiserv (FISV) → Buy maintained but target reduced to $149 by Goldman Sachs
Robert Half (RHI) → Neutral performance maintained by BMO, target cut to $36
Mid-America Apartment Communities (MAA) → Underperform confirmed, target reduced to $121

Have a good session, everyone!
Sylvain Mouilhaud: Stock Coach