**Futures Indices**

Dow Futures: +0.2%
S&P 500 Futures: +0.3%
Nasdaq 100 Futures: +0.4%
US 10-year Yield: 4.11% (stable)

---

Market Environment

US markets are catching their breath this morning, buoyed by strong results from Micron (MU) which are boosting Nasdaq futures. Yesterday, the indices ended a streak of three consecutive all-time highs, halted by cautious comments from Jerome Powell.

"Powell deliberately noted that inflation and unemployment are moving in the wrong direction, according to the Fed" — Paul Donovan, UBS.

"Two factors weighed yesterday: doubts over the $100B deal between Nvidia and OpenAI, and Powell's more cautious tone on the labor market." — Jim Reid, Deutsche Bank.

Fears of an AI bubble risk are resurfacing, with some analysts drawing parallels to accounting practices of the 1990s.

On watch today: release of new home sales (August), expected down to 649K, and a speech by Mary Daly (San Francisco Fed) on economic outlook.

---

Stocks to Watch

**Lithium Americas (LAC) +78%**
Stock surges after rumors that the Trump administration may seek up to 10% stake as part of the renegotiation of a $2.3B DoE loan for the Thacker Pass project.

**ServiceNow (NOW) +3%**
Morgan Stanley upgrades the stock to "Overweight", highlighting sustained subscription growth (~20%) and attractive FCF potential. Price target raised to $1,250.

**Micron Technology (MU) +2%**
Quarterly results and forecasts well above consensus, driven by AI demand. Revenue expected between $12.2B and $12.8B for Q1.

**Cohu (COHU) -9%**
Dives after announcing a $200M private placement of convertible notes due 2031.

---

Ratings Changes

Upgrades

Quanta Services (PWR) → Jefferies upgrades to Buy, price target raised from $398 to $469.
ServiceNow (NOW) → Morgan Stanley upgrades to Overweight, price target from $1,040 to $1,250.
Corning (GLW) → Citi confirms Buy, price target from $72 to $93.
Elanco (ELAN) → Stifel maintains Buy, price target from $18 to $23.
Micron (MU) → CTBC Securities reaffirms "add", target from $142 to $188.
Rambus (RMBS) → Loop Capital maintains "buy", target from $80 to $125.
Lam Research (LRCX) → B. Riley confirms Buy, target from $130 to $160.
Oklo (OKLO) → Daiwa maintains "outperform", target from $86 to $120.
Lyft (LYFT) → TD Cowen remains at Buy, target raised from $22 to $30.
Sandisk (WDC) → Citi confirms Buy, target from $80 to $125.

Neutral

C.H. Robinson (CHRW) → Susquehanna keeps positive view, target raised from $125 to $160.
Globant (GLOB) → Santander keeps Neutral, target reduced from $114 to $68.
SPS Commerce (SPSC) → Cantor remains Overweight, but lowers target from $170 to $135.
Willscot (WSC) → Barclays maintains Equalweight, target reduced from $34 to $22.

Downgrades

Adobe (ADBE) → Morgan Stanley downgraded to "Market Weight" and target reduced from $520 to $450.
Crowdstrike (CRWD) → DZ Bank downgraded to "Sell", target raised from $400 to $440.
Keurig Dr Pepper (KDP) → Barclays downgraded to "Market Weight", target reduced from $39 to $26.

---

Have a good session everyone
Sylvain Mouilhaud: Stock Coach