Futures Indices
Dow Futures: 0.00%
S&P 500 Futures: +0.40%
Nasdaq 100 Futures: +0.70%
US 10-year Yield: 4.29%
Market Environment
US markets are rebounding this Wednesday, buoyed by a major legal victory for Google in an antitrust case. Federal Judge Amit Mehta ruled that Google would not be forced to sell its Chrome browser or end its $20 billion search agreement with Apple.
This decision, seen as an "enormous win for Cupertino and Google," according to Wedbush, removes a major uncertainty for the two tech giants. Alphabet is up more than 5% pre-market, Apple is rising by nearly 3%.
Another market driver: Zscaler delivered results and forecasts that beat expectations, supporting tech amid a tough macro backdrop. Meanwhile, trade tensions persist and investors are cautiously awaiting upcoming employment data.
To watch today:
- JOLTS report (job openings) expected at 7.38M
- US factory orders for July expected at -1.3% M/M
“Although the JOLTS report is out today, all attention will gradually shift to Friday’s jobs report,” notes Jim Reid of Deutsche Bank.
Stocks to Watch
** Alphabet (GOOG +5.5%, GOOGL +5.9%)**
Up sharply after a favorable court ruling in the antitrust case, dismissing the possibility of breaking up Chrome and ensuring the continuity of its partnership with Apple.
** Apple (AAPL +3%)**
Benefits from the same decision, lifting the risk of ending its search agreement with Google, seen as a key catalyst for upcoming AI.
** Zscaler (ZS +2.45%)**
Q4 results well above expectations, with bullish guidance cheered by the market.
** HealthEquity (HQY +3.94%)**
Strong results (EPS and revenues above expectations), driven by AI and expanded HSA coverage.
** NuScale (SMR +3.89%)**
Surges after announcing a strategic partnership with TVA for 6 GW of modular nuclear reactors.
** Skillz (SKLZ -10.33%)**
Falls after Tether announces it is ending several strategic agreements.
** Etsy (ETSY -0.27%)**
Eighth straight session of declines, with no positive catalyst in sight.
** Air Industries Group (AIRI +6.60%)**
Jumps after announcing two military contracts totaling $6.9M.
Recommendation Changes
Upgrades
- Bio-Techne Corp. ($TECH) → RBC upgrades to Outperform, target raised from $61 to $73
- BorgWarner Inc. ($BWA) → Baird upgrades to Outperform, target from $41 to $52
- Chipotle ($CMG) → Redburn upgrades to Buy, target set at $55
- Ionis Pharma ($IONS) → BMO upgrades to Outperform, target from $40 to $70
- Transunion ($TRU) → Needham upgrades to Buy, target at $115
- Icon Plc ($ICLR) → Redburn upgrades to Buy, target from $184 to $236
Neutral
- Medpace Holdings ($MEDP) → Redburn lowers to Neutral, but raises target from $342 to $474
- Lucid Group ($LCID) → Baird maintains Neutral, target raised from $2 to $20
- Thor Industries ($THO) → Truist maintains Hold, target from $86 to $115
- United Therapeutics ($UTHR) → Wells Fargo maintains Equalweight, target raised to $414
Downgrades
- Accenture ($ACN) → Redburn lowers to Neutral, target reduced from $350 to $250
- Air Lease Corp ($AL) → Deutsche Bank lowers to Hold, target from $66 to $65
Register here
Have a great session
Sylvain Mouilhaud: Stock Coach
