US PREMARKET STOCKS: October 30, 2025

Futures Indices

Dow Futures: -0.20%
S&P 500 Futures: 0.00%
Nasdaq 100 Futures: 0.00%

Market Environment

US indices are moving without a clear trend this Thursday as investors await the highly anticipated reports from Apple (AAPL) and Amazon (AMZN) after market close.

Sino-American relations bring a breath of moderate optimism: Donald Trump announced a one-year deal with China on rare earths and critical minerals, including an immediate reduction on fentanyl tariffs (from 20% to 10%).

"Markets will likely be reassured, but not euphoric," notes Paul Donovan (UBS).

The Fed cut its rates by 25 basis points, as expected, bringing the policy rate to 3.75%-4.00%. However, Jerome Powell tempered expectations of another move in December.

"The signal remains hawkish, consistent with our expectation of fewer cuts than anticipated," explains Jim Reid (Deutsche Bank).

Last night, tech sent mixed signals despite 89% year-on-year growth in capex at Microsoft, Meta, and Alphabet.

Stocks to Watch

**Meta Platforms (META) -7.1%**
Drop after a one-time $16bn tax charge despite raising its annual expense outlook.

**Alphabet (GOOGL) +6.7%**
First quarter above $100bn in revenue. The Gemini AI assistant exceeds 650 million monthly users.

**Microsoft (MSFT) -3.1%**
Results beat expectations, but heavy investment in OpenAI weighs on profitability.

**Sirius XM (SIRI) +6.03%**
Results beat forecasts, especially a GAAP EPS of $0.84 vs. $0.78 expected.

**Cleveland-Cliffs (CLF) -11.43%**
Falls after announcing a $964m capital raise.

**Viavi Solutions (VIAV) +11.02%**
Gains after solid results and a recommendation upgrade from B. Riley.

**Allegro MicroSystems (ALGM) +8.49%**
Q2 results and outlook ahead of expectations.

**Eli Lilly (LLY) +3.62%**
Supported by an upward revision of its annual outlook.

**Builders FirstSource (BLDR) +3.37%**
EPS of $1.88 vs. $1.72 expected; revenue above forecasts.

**Howmet Aerospace (HWM) -1.71%**
Strong results but some profit-taking after recent rally.

**MP Materials (MP) +2.6% / USA Rare Earth (USAR) +3% / TMC (TMC) +2.5% / CRML +6.7% / Energy Fuels (UUUU) +3.8%**
Rare earths sector rebounds after China suspends export controls.

Change in Recommendation

Upgrades

Coinbase ($COIN) → HC Wainwright upgrades to buy (from sell), target raised from $300 to $425.

Comerica ($CMA) → Evercore ISI upgrades to in-line from underperform, target $88.

Verisk Analytics ($VRSK) → Barclays upgrades to overweight, target adjusted from $310 to $275.

Neutral

Alphabet ($GOOGL) → Canaccord keeps buy, target raised from $270 to $330.

Aurora Innovation ($AUR) → TD Cowen maintains hold, target reduced from $7.40 to $5.50.

C.H. Robinson ($CHRW) → Bernstein maintains market perform, target raised from $108 to $135.

Caterpillar ($CAT) → Daiwa remains neutral, target adjusted from $430 to $595.

Chipotle ($CMG) → BTIG remains buy, target reduced from $57 to $45.

Flex Ltd. ($FLEX) → JP Morgan remains overweight, target raised from $60 to $75.

Flowserve ($FLS) → Citi remains buy, target raised from $68 to $82.

Ionis Pharma ($IONS) → Bernstein remains market perform, target raised from $50 to $65.

KLA Corp ($KLAC) → BNP Paribas remains neutral, target raised from $820 to $1200.

Sprouts Farmers ($SFM) → BMO remains market perform, target reduced from $120 to $90.

TE Connectivity ($TEL) → JP Morgan remains neutral, target raised from $204 to $260.

Wayfair ($W) → RBC remains sector perform, target raised from $51 to $86.

Bio-Rad ($BIO) → Wells Fargo remains equalweight, target raised from $265 to $340.

BridgeBio ($BBIO) → TD Cowen remains buy, target raised from $60 to $95.

Centene ($CNC) → Nephron Research remains buy, target raised from $36 to $45.

Downgrades

American Electric Power ($AEP) → BMO downgrades to market perform from outperform, target $126.

Avantor ($AVTR) → JP Morgan downgrades to neutral from overweight, target cut from $14 to $12.

Boeing ($BA) → Deutsche Bank downgrades to hold from buy, target cut from $255 to $240.

Fiserv ($FI) → Goldman Sachs downgrades to neutral from buy, target cut from $149 to $79.

Have a good session everyone
Sylvain Mouilhaud: Stock Coach