Market Snapshot
| Dow | 46253.10 | -17.15 | (-0.04%) | | Nasdaq | 22670.10 | +148.38 | (0.66%) | | SP 500 | 6671.05 | +26.75 | (0.40%) | | 10-yr Note |
|
|
|
| | NYSE | Adv 1688 | Dec 1069 | Vol 1.17 bln | | Nasdaq | Adv 2734 | Dec 1927 | Vol 11.46 bln |
Industry Watch
| Strong: Communication Services, Information Technology, Utilities, Real Estate |
| | Weak: Industrials, Materials, Financials, Energy |
Moving the Market
Broad-based strength, with tech and mega-cap names outperforming
Q3 earnings reports continue to impress
Rate cut optimism remains strong
|
Major averges finish mostly higher, though stocks fade from opening strength
15-Oct-25 16:30 ET
Dow -17.15 at 46253.10, Nasdaq +148.38 at 22670.10, S&P +26.75 at 6671.05
[BRIEFING.COM] The stock market opened to broad-based gains in response to optimism around trade tensions with China, though sector strength deteriorated throughout the day, with the major averages ultimately finishing well off their session highs.
The tech-heavy Nasdaq Composite (+0.7%) finished with the widest gains as tech and mega-cap stocks put up strong performances, while the S&P 500 (+0.4%) also captured a modest gain, and the DJIA finished flat. Meanwhile, the small-cap Russell 2000 (+1.0%) outperformed, while the S&P Mid Cap 400 (+0.1%) had a flattish performance.
All eleven S&P 500 sectors traded higher for much of the morning after Treasury Secretary Bessent suggested in a press conference that a longer trade truce could be achieved if China delays implementing its restrictions on rare earth exports.
The early gains pushed the major averages back near their record-high levels from last week, though eroding strength saw them dip beneath their flatlines in the early afternoon.
Although the information technology sector (+0.7%) gave back around half of its early gains, its strength remained key to today's index-level advance, especially after its weakness yesterday limited growth in the major averages despite broader market strength.
The sector was supported by strength in chipmakers after chip-making equipment manufacturer ASML (ASML 1009.81, +26.63, +2.71%) reported strong bookings in its Q3 earnings report this morning.
Advanced Micro Devices (AMD 238.60, +20.51, +9.40%) was one of the top-performing names in the S&P 500 today, and the PHLX Semiconductor Index closed with a 3.0% gain.
The communication services sector (+1.0%) also finished higher, as, like chipmakers, several mega-cap names shook off yesterday's retreat. Alphabet (GOOG 251.71, +5.52, +2.24%) and Meta Platforms (META 717.55, +8.90, +1.26%) were among the stocks that pushed the Vanguard Mega Cap Growth ETF (+0.6%) higher, though fading strength in the market's largest names throughout the session saw the S&P 500 Equal Weighted Index (+0.2%) close just slightly lower than the market-weighted S&P 500 (+0.4%).
The real estate (+1.5%) and utilities (+1.3%) sectors continued their run of outperformance this week.
While four S&P 500 sectors ultimately closed lower, only the materials (-0.5%) and industrials (-0.5%) sectors retreated more than 0.1%.
The industrials sector faced pressure in its defense names after Treasury Secretary Scott Bessent suggested that the Trump administration may ask defense contractors to scale back stock buybacks in favor of increased research and development spending to support national security.
The iShares U.S. Aerospace and Defense ETF retreated 1.5%.
On the earnings front, the market faced a busy slate of reports, and mixed reactions to several names in the financials sector (-0.1%) left the sector hovering near its flatline by the close.
Morgan Stanley (MS 162.65, +7.31, +4.71%) and Bank of America (BAC 52.28, +2.19, +4.37%) captured solid gains in response to their earnings beats, while PNC (PNC 182.34, -7.39, -3.90%) faced pressure due to downside guidance and Progressive (PGR 226.50, -13.90, -5.78%) slipped on an earnings miss.
Macro developments were relatively thin today, though the market remains vulnerable to volatility in response to trade tensions with China.
The Fed's October Beige Book showed that overall economic activity was little changed from the previous period, which in turn had little effect on the major averages.
Rate cut expectations remain high, and the government remains shut down, leaving investors focused mostly on corporate earnings and trade headlines for direction. Despite the retreat from earlier highs, the market's resilience in the face of recent pullbacks shows that risk appetite is still holding up, though the recent intraday swings suggest a more cautious tone underneath the surface.
U.S. Treasuries finished Wednesday with losses across the curve after reversing from their mostly higher start. The 2-year note yield settled up two basis points to 3.50%, and the 10-year note yield settled up two basis points to 4.05%.
- Nasdaq Composite: +17.4% YTD
- S&P 500: + 13.4% YTD
- Russell 2000: +13.0% YTD
- DJIA: +8.7% YTD
- S&P Mid Cap 400: +4.3% YTD
Reviewing today's data:
- The Empire State Manufacturing survey rose to 10.7 in October (Briefing.com consensus -1.8) from -8.7 in September.
- The weekly MBA Mortgage Index fell 1.8% to follow last week's 4.7% decrease. The Purchase Index was down 2.7% while the Refinance Index fell 1.0%.
- The Federal Reserve's Beige Book for October showed little overall change in economic activity since the last report. Consumer spending softened a touch while demand for leisure and hospitality from foreign tourists continued weakening. Wealthier individuals continued spending on luxury travel and accommodations. Manufacturing activity varied with some contacts reporting challenges from tariffs and falling demand. Employment was little changed while prices continued climbing.
Defense stocks slip as Trump administration may ask them to scale back buybacks
15-Oct-25 15:35 ET
Dow +14.79 at 46285.04, Nasdaq +168.45 at 22690.17, S&P +31.67 at 6675.97
[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.8%), and DJIA (+0.1%) remain seated with modest gains as the market enters the final half hour of the session.
The broader market is poised for a mostly higher finish, with only the industrials (-0.4%), materials (-0.2%), and financials (-0.1%) holding modest losses.
Defense stocks continue to weigh down the industrials sector after Treasury Secretary Scott Bessent suggested that the Trump administration may ask defense contractors to scale back stock buybacks in favor of increased research and development spending to support national security.
The iShares U.S. Aerospace and Defense ETF is down 1.2%.
Government shutdown persists
15-Oct-25 15:05 ET
Dow +32.34 at 46302.59, Nasdaq +168.86 at 22690.58, S&P +33.21 at 6677.51
[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (+0.1%) are trading in a steady range, hovering near the midpoint between their early highs and session lows.
A Senate bill to fund the government failed to get the 60 votes needed to pass, meaning the shutdown will persist.
President Trump signed an executive order that will allow the military to be paid during the shutdown.
Stocks steady as Beige Book shows modest growth, rising inflation
15-Oct-25 14:30 ET
Dow +25.77 at 46296.02, Nasdaq +127.09 at 22648.81, S&P +23.70 at 6668.00
[BRIEFING.COM] The broader market mostly held its modestly higher lines after the Fed released its October Beige Book at the bottom of the hour. The report showed that overall economic activity was little changed from the previous period, with three Districts seeing slight-to-moderate growth, five reporting no change, and four noting some softening. Consumer spending, especially on retail goods, has cooled lately, though auto sales got a lift in some areas from strong EV demand ahead of a federal tax credit expiration at the end of September.
Outlooks for growth varied by region and sector. A few Districts said sentiment had improved, with some contacts expecting stronger demand over the next 6–12 months. Others, however, still pointed to ongoing uncertainty that could drag on activity. One District flagged the potential downside from a prolonged government shutdown.
- Employment: Job levels were mostly steady in recent weeks, with softer labor demand across many regions and sectors. Several Districts noted more layoffs and attrition, citing weaker demand, economic uncertainty, and in some cases, rising investment in AI technologies.
- Wages: Pay increased modestly to moderately across most Districts, though labor and cost pressures intensified due to higher employer health insurance expenses.
- Prices: Inflation picked up again during the period, with faster input cost growth tied to higher import prices and rising costs for services like health care and tech. Tariff-related price pressures also came up, though some companies held prices steady to avoid losing customers.
Currently, the yield on the benchmark 10-yr Treasury note is up about a single basis point at 4.045%.
Gold rises to $4,201 as dovish Fed bets and global tensions boost safe-haven demand
15-Oct-25 14:00 ET
Dow +33.33 at 46303.58, Nasdaq +99.15 at 22620.87, S&P +17.62 at 6661.92
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.44%) is the top performer on Wednesday afternoon, firmly off lows from the previous half hour.
Gold futures settled $38.20 higher (+0.9%) at $4,201.60/oz, as investors bet on multiple Fed rate cuts following dovish central bank comments. Safe-haven demand also strengthened amid renewed U.S./China trade tensions, political uncertainty abroad, and a weaker dollar.
Meanwhile, the U.S. Dollar Index is down about -0.2% to $98.82.
Abbott Labs delivers steady Q3 results and guidance, but report offers little new excitement (ABT)
Abbott Laboratories’ (ABT) 3Q25 results were generally in line with expectations, consistent with its pattern of steady performance. Revenue rose 6.9% yr/yr to $11.37 bln, or 7.5% excluding COVID-19 testing-related sales, while EPS landed near consensus estimates. FY25 EPS guidance was maintained at $5.12–$5.18, with organic sales growth reaffirmed at +7.5–8.0%. Results and guidance come across as somewhat underwhelming, reflected in today’s stock weakness.
- Medical Devices led growth, up 12.5% organically to $5.4 bln, driven by double-digit gains in Diabetes Care, Electrophysiology, Rhythm Management, Heart Failure, and Structural Heart. Continuous Glucose Monitor (CGM) sales reached $2.0 bln, up 20.5%, supported by FreeStyle Libre adoption and new product launches.
- Established Pharmaceuticals grew 7.1% organically, with emerging markets up 11.1%, led by Creon, Duphaston, and Brufen across Asia, Latin America, and the Middle East.
- Diagnostics declined 7.8% organically as COVID-19 testing dropped 74% to $69 mln. Excluding COVID products, revenue edged up 0.4%, weighed down by soft demand in China and volume-based procurement programs.
Briefing.com Analyst Insight:
ABT’s Q3 results reflect its typical steady execution but lacked significant upside. Medical Devices remains the primary growth engine, fueled by CGM and cardiac device adoption. Established Pharmaceuticals provides reliable contributions from emerging markets, while Diagnostics normalizes post-pandemic. The reaffirmed full-year outlook signals confidence but offers little new excitement. Investors may await stronger catalysts, such as faster Libre adoption or new device approvals, to drive stock momentum. Overall, while ABT remains a solid, predictable performer, near-term upside appears limited without incremental innovation or market expansion.
ASML Higher on Q3 Results as Improved Visibility and AI-Driven Demand Signal Steadier Outlook (ASML)
ASML (ASML) is moving higher after reporting its Q3 results this morning. The semiconductor equipment giant, a focal point of the ongoing AI-driven capex boom, delivered a more modest EPS beat than in previous quarters, while revenue edged up just 0.7% yr/yr to €7.52 bln, missing expectations. Encouragingly, the midpoint of ASML's Q4 revenue outlook of €9.2-9.8 bln sits well above consensus, and management reaffirmed its FY25 revenue growth target of roughly 15% to about €32.5 bln.
- Management noted improved visibility this quarter from Q2, citing ongoing AI infrastructure investments and broader customer momentum across both logic and advanced DRAM, along with continued adoption of more EUV layers that boost lithography intensity.
- On the other hand, it expects China customer demand and sales to significantly decline in 2026 compared to 2024 and 2025.
- Net system sales were driven by logic (65%) and memory (35%), with logic orders supported by leading-edge node transitions and memory strength tied to advanced DRAM and HBM demand.
- Bookings totaled €5.4 bln, split 53% logic and 47% memory, including €3.6 bln in EUV systems as customers continue migrating from multi-patterning to single EUV exposure.
- Gross margin of 51.6% was strong and helped drive the EPS beat despite the revenue miss; ASML expects margins of 51-53% in Q4 and around 52% for FY25.
- Shipped its first 3D packaging lithography tool (XT:260) and highlighted progress with its high-NA EUV platform.
Briefing.com Analyst Insight
This was a good quarter for ASML and a nice bounce back from Q2 after signaling customer hesitation and uncertainty. The tone was notably more upbeat, with management pointing to steady progress in AI-related logic and DRAM buildouts and an ongoing shift toward higher EUV layer adoption. The risk remains geopolitical, with China sales expected to be significantly lower in 2026, though the strong Q4 guide and reaffirmed FY25 outlook suggest a solid finish to the year. The expectation that FY26 will not fall below FY25 also points to a more stable demand environment heading into the next cycle.
Bank of America Consumer Strength and Credit Gains Drive Big Bank Beat (BAC)
Bank of America (BAC) is trading sharply higher after delivering its biggest EPS beat since 4Q23, continuing the positive earnings trend seen across the big banks. Strong growth on both the top and bottom lines led to record net interest income, driven by solid operating leverage and consistent momentum across all business units as the bank heads into 2026.
- Consumer Banking remained a standout, posting $3.4 bln in after-tax earnings, up 28% yr/yr, with 600 bps of operating leverage. BAC added 212,000 net new checking accounts, marking its 27th consecutive quarter of growth.
- Global Wealth & Investment Management reported net income of nearly $1.3 bln, up 19% yr/yr, fueled by strong Merrill and Private Bank advisory performance. Lending in this segment grew by $12 bln in Q3, while client balances topped $4.6 trillion, helped by $84 bln in AUM flows over the past year.
- Global Banking saw rising client activity in investment banking, with fees (excluding self-led deals) jumping 43% yr/yr to $2.0 bln, driven by strong M&A and capital raising activity.
- Credit quality improved, with provision for credit losses down to $1.3 bln from $1.6 bln in Q2. Consumer net charge-offs of $978 mln decreased $81 mln vs Q2, and the credit card charge-off rate improved to 3.46% from 3.82% in Q2 and 3.70% a year ago.
BAC's results echoed trends seen in recent reports from JPM and GS — particularly in investment banking, which has seen a resurgence amid strong equity markets and increased M&A activity. Trading also benefited from market momentum, while credit quality improvements further buoyed investor sentiment.
Briefing.com Analyst Insight:
Bank of America delivered an across-the-board beat with solid contributions from every business unit, particularly Consumer Banking and Wealth Management. The improvement in credit quality and the continuation of net interest income strength give BAC a solid footing heading into FY26. However, while BAC is benefiting from sector-wide tailwinds like stronger IB and improving credit, questions remain around sustainability once the rate tailwind fades. Still, the stock looks reasonably valued and may appeal to investors looking for broad-based financial exposure with improving fundamentals.
Morgan Stanley crushes Q3 estimates with broad-based strength in wealth management and trading (MS)
Morgan Stanley (MS) easily surpassed expectations for both EPS and revenue in Q3, delivering one of its strongest quarters in years. Expectations were high following solid results from peers like Goldman Sachs (GS), Citigroup (C), and JPMorgan Chase (JPM), yet MS managed to exceed them decisively. Total revenue rose 20% yr/yr to $15.8 bln, with broad-based strength across Wealth Management, equity trading, and equity underwriting.
- Institutional Securities revenue jumped 25% to $8.5 bln. Investment Banking surged 44% to $2.1 bln, driven by an 80% spike in equity underwriting and a 25% gain in Advisory.
- Rebounding IPO and M&A activity, improved CEO confidence, and a steadier rate backdrop fueled the recovery.
- Equity trading revenue climbed 35% yr/yr, highlighted by record prime brokerage results as hedge fund activity and volumes rebounded.
- The firm outperformed GS this quarter in key areas, posting stronger Investment Banking (+44% vs. +42%) and equity trading growth (+35% vs. -9%).
- Wealth Management revenue increased 12% to $8.2 bln, with $81 bln in net new assets. DARTs rose 24% to over 1 mln as record stock markets and heightened client activity boosted asset and trading flows.
Briefing.com Analyst Insight:
MS entered Q3 needing to prove its diversified model could outperform -- and it did. Strength in underwriting and advisory reflects a revival in capital markets, while Wealth Management remains a steady profit engine. Record equity trading results showcase its scale and client depth. After trailing Goldman last quarter, MS reasserted its edge across key areas. While market tailwinds played a role, execution was exceptional, suggesting this rebound has staying power. With momentum building across both cyclical and recurring segments, the firm appears well-positioned to sustain earnings growth into 2026.
Domino's Pizza on a Roll: Q3 Comps Impress as Best Deal Ever and Stuffed Crust Do Well (DPZ)
Domino's stock is trading higher after a strong Q3 report, driven by solid EPS upside, robust U.S. comps, and early momentum from its new DoorDash partnership.
- Revenue rose 6.2% yr/yr to $1.15 bln, in-line with expectations.
- EPS beat driven by strong sales and favorable investment timing.
- US same-store sales +5.2%, up from +3.4% in Q2 and a big turnaround from -0.5% in Q1 — despite tough comps of +3.0% in Q3 last year.
Key Drivers:
- "Best Deal Ever" promotion ($9.99 any pizza online) resonated strongly with value-focused consumers.
- Parmesan Stuffed Crust Pizza launch performed exceptionally well.
- New Bread Bites flavors (garlic and cinnamon) also added momentum.
- Full DoorDash rollout completed in Q3; expected to boost comps further into 2026 as awareness and marketing increase.
- Upgrades to e-commerce platform and new app (coming by year-end) should enhance digital experience and drive conversion.
DPZ reiterated confidence in hitting its +3% US comps target in 2026, noting that recent innovations and platform changes are now part of its core offering, not temporary promotions.
Briefing.com Analyst Insight:
Domino's delivered a strong quarter, with standout US comps showing that value pricing and menu innovation are clicking. With delivery expansion through DoorDash and digital upgrades on the way, DPZ looks well-positioned for sustainable growth in 2026—and today's stock move reflects that optimism.
|
