US STOCKS PREMARKET: November 5, 2025

Futures Indices

Dow Futures: +0.1%
S&P 500 Futures: 0.0%
Nasdaq 100 Futures: 0.0%
US 10-year yield: 4.64%

Market Environment

US equity futures are steady this Wednesday after a marked drop on Tuesday, especially for the Nasdaq, as the AI frenzy fades and investors question the soaring valuations of tech giants.

"The last 24 hours have clearly shown a move to safety, with growing concerns about high valuations in the tech sector," said Jim Reid, analyst at Deutsche Bank.

"Although it's just one down day, a shift in market sentiment is noticeable. Some are starting to talk about a possible correction, particularly since the 'Magnificent 7' have outperformed the rest of the S&P 500."

On the macroeconomic front, several indicators will be released today:

ADP Private Employment Report (October) before the open, expected at +28K after -32K in September.
Final Composite PMI and ISM Services during the session: forecasts point to stable PMI (54.8) and a slight rise for ISM Services (51.0 vs 50.0).

In crypto, Bitcoin is down 20% over one month, entering bear market territory.

Stocks to Watch

Biohaven (BHVN) -44%
Shares collapse after the FDA rejects its flagship drug Vyglxia. A major blow to the company's pipeline.

Supermicro (SMCI) -9.6%
Despite strong revenue guidance, quarterly results disappoint, weighing heavily on the stock.

Ramaco Resources (METC) -10%
The group announces a $300M issuance of zero-coupon convertible bonds through 2031, diluting existing shareholders.

Alight (ALIT) -9%
Revenue down 4% year-on-year, negative impact from sale of its payroll segment. Guidance also under pressure.

AMD (AMD) -3.2%
While results beat expectations, the stock suffers amid widespread distrust of tech shares.

Unity Software (U) +12%
Results top expectations, with strong momentum anticipated in the "Grow" and "Create" segments.

DigitalOcean (DOCN) +9.5%
Solid results provide reassurance, despite mixed guidance. The stock benefits in a demanding market.

Recommendation Changes

Upgrades

The Ensign Group (ENSG) → Oppenheimer upgrades to Outperform with a new target of $210 (from $170).
Super Micro Computer (SMCI) → KGI Securities upgrades to Outperform, raising the target to $60 (from $56).
O'Reilly Automotive (ORLY) → Raymond James upgrades to Outperform with a target of $105.
Qualys (QLYS) → Piper Sandler raises to Neutral with a target of $135 (from $115).

Neutral

AMD (AMD) → JP Morgan maintains Neutral, target raised to $270 (from $180).
Apple (AAPL) → Daiwa Securities maintains Outperform, target $300 (from $230).
Alphabet (GOOGL) → KGI Securities maintains Outperform, target $345 (from $245).
Caterpillar (CAT) → Jefferies maintains Buy, target $700 (from $570).
Palantir (PLTR) → CTBC maintains Buy, target $235 (from $142.3).
Lumentum (LITE) → B Riley maintains Neutral, target $147 (from $83).
Grab Holdings (GRAB) → CLSA maintains Accumulate, target $6.50 (from $5.25).
Waters Corp (WAT) → Wells Fargo maintains Equalweight, target $385 (from $315).

Downgrades

Biohaven (BHVN) → Extremely negative post-FDA reaction; consensus likely headed lower.
Archer-Daniels-Midland (ADM) → JP Morgan downgrades to Underweight, target cut to $59 (from $61).
Fiserv (FI) → BNP Paribas downgrades to Neutral, drastic target cut to $62 (from $200).
Southern Company (SO) → Jefferies downgrades to Hold, target reduced to $103 (from $114).
Mosaic (MOS) → RBC downgrades to Sector Perform, target at $30.
Trex Company (TREX) → Deutsche Bank downgrades to Hold, target $40 (from $92).
Cava Group (CAVA) → Baird maintains Outperform, but target cut to $72 (from $95).
Paylocity (PCTY) → Citi maintains Buy, but target trimmed to $175 (from $221).
Pinterest (PINS) → Citi maintains Buy, target reduced to $38 (from $50).
Upstart (UPST) → JP Morgan maintains Overweight, target trimmed to $65 (from $88).
Dupont (DD) → KeyBanc maintains Overweight, but target cut to $44 (from $93).
Norwegian Cruise (NCLH) → BNP Paribas maintains Neutral, target cut to $21 (from $27).

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