| | | Market Snapshot
| Dow | 46602.77 | -91.99 | (-0.20%) | | Nasdaq | 22788.38 | -153.30 | (-0.67%) | | SP 500 | 6714.58 | -25.69 | (-0.38%) | | 10-yr Note |
|
|
|
| | NYSE | Adv 887 | Dec 1865 | Vol 1.17 bln | | Nasdaq | Adv 1527 | Dec 3117 | Vol 10.44 bln |
Industry Watch
| Strong: Consumer Staples, Utilities, Health Care, Financials, Energy |
| | Weak: Consumer Discretionary, Communication Services, Information Technology, Materials, Real Estate, Industrials |
Moving the Market
S&P 500 and Nasdaq Composite notch fresh record highs
Modest pullback in the broader market as tech and mega-cap names face pressure
Countercyclical sectors outperforming
|
Retreat from record highs after early tech surge
07-Oct-25 16:30 ET
Dow -91.99 at 46602.77, Nasdaq -153.30 at 22788.38, S&P -25.69 at 6714.58
[BRIEFING.COM] The stock market's opening gains pushed the S&P 500 (-0.4%) and Nasdaq Composite (-0.7%) to fresh record highs before a late morning slip in mega-cap and tech names triggered a broad-based retreat, leaving the major averages devoid of any record closes today.
The DJIA (-0.2%) also closed lower, while the small-cap Russell 2000 (-1.1%) and S&P Mid Cap 400 (-1.1%) underperformed, highlighting the market's risk-off disposition today.
Only the defensive consumer staples (+0.9) and utilities (+0.4%) sectors created any sort of positive distance from their flat lines. Some late afternoon buying activity saw the financials, energy, and health care sectors all close with 0.1% gains.
Meanwhile, the consumer discretionary sector (-1.4%) finished with the widest loss, as Tesla's (TSLA 433.09, -20.16, -4.45%) release of a more affordable, rear-wheel-drive Model Y failed to live up to the hype that its teased announcement generated yesterday.
Ford Motor (F 11.92, -0.77, -6.07%) added to the auto woes today, sliding after The Wall Street Journal reported that a fire at an aluminum supplier plant could disrupt the business for months.
The sector also faced pressure in its homebuilder names, sending the iShares U.S. Home Construction ETF 3.1% lower.
Mega-cap weakness contributed to losses in the communication services (-0.7%) and information technology (-0.5%) sectors, with the Vanguard Mega Cap Growth ETF closing with a 0.6% loss.
While the technology sector did not close with the widest loss today, its reversal from an earlier gain prompted the major averages to retreat beneath their flat lines.
The sector got off to a hot start after IBM (IBM 293.89, +4.47, +1.54%) announced a partnership with Anthropic, Dell (DELL 150.85, +5.09, +3.49%) increased its long-term annual revenue growth expectations, and Advanced Micro Devices (AMD 211.51, +7.80, +3.83%) continued to build on yesterday's momentum after announcing a partnership with OpenAI.
Just before midday, the sector slipped into negative territory following a report from The Information that suggested Oracle (ORCL 284.57, -7.02, -2.41%) will face financial challenges renting out NVIDIA (NVDA 185.04, -0.50, -0.27%) chips.
The PHLX Semiconductor Index would go on to finish with a 2.1% loss after an early gain.
Though today's retreat was broad-based, it was also modest. The S&P 500 and Nasdaq Composite both sit on their flatlines for the week, while the DJIA holds a modest 0.3% week-to-date loss. The lingering lack of macro developments combined with a few negative corporate headlines kept the major averages range-bound for the majority of the session. While a buy-the-dip move did not transpire today, the major averages remain within striking distance of their fresh record highs.
U.S. Treasuries overcame some opening weakness on Tuesday, recording their first higher finish since Thursday. The 2-year note yield settled down three basis points to 3.57%, and the 10-year note yield settled down four basis points to 4.13%.
- Nasdaq Composite: +18.0% YTD
- S&P 500: +14.2% YTD
- Russell 2000: +10.2% YTD
- DJIA: +9.5% YTD
- S&P Mid Cap 400: +4.3% YTD
Reviewing today's economic data:
- Consumer credit increased by $0.4 billion in August (Briefing.com consensus: $13.1 billion) following an upwardly revised $18.0 billion increase (from $16.0 billion) in July.
- The key takeaway from the report is that the expansion in consumer credit was miniscule in August due to a decrease in revolving credit, which saw its biggest decrease since March.
August Consumer Credit Report
07-Oct-25 15:25 ET
Dow -131.55 at 46563.21, Nasdaq -159.60 at 22782.08, S&P -29.77 at 6710.50
[BRIEFING.COM] The major averages trade in a steady range, a touch off session lows, as the market enters the final half hour of today's session.
Consumer credit increased by $0.4 billion in August (Briefing.com consensus: $13.1 billion) following an upwardly revised $18.0 billion increase (from $16.0 billion) in July.
The key takeaway from the report is that the expansion in consumer credit was miniscule in August due to a decrease in revolving credit, which saw its biggest decrease since March.
Tesla Model Y announcement
07-Oct-25 15:05 ET
Dow -151.45 at 46543.31, Nasdaq -141.19 at 22800.49, S&P -27.06 at 6713.21
[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.3%) continue their afternoon trudge through negative territory.
Shares of Tesla (TSLA 440.87, -12.38, -2.73%) remain lower after the company announced a new Model Y rear-wheel drive vehicle starting at $36,140 with standard features.
The stock rose 5.5% yesterday in anticipation of the release, though the actual release has not generated enough buzz to lift it from negative territory.
In separate automobile news, Reuters reports that the Trump administration is considering revoking $1.1 billion in auto plant funding to Stellantis (STLA 10.92, +0.13, +1.20%) and General Motors (GM 56.90, -1.29, -2.22%).
Just released, consumer credit increased by $0.36 billion in August (Briefing.com consensus: $13.1 billion) following an upwardly revised $18.05 billion increase (from $16.0 billion) in July.
S&P 500 slips 0.45% as Seagate, D.R. Horton, and Expedia weigh; Estee Lauder outperforms
07-Oct-25 14:30 ET
Dow -177.62 at 46517.14, Nasdaq -152.86 at 22788.82, S&P -30.32 at 6709.95
[BRIEFING.COM] The S&P 500 (-0.45%) is in second place on Tuesday afternoon, down about 30 points.
Briefly, S&P 500 constituents Seagate Tech (STX 225.62, -17.21, -7.09%), D.R. Horton (DHI 161.31, -10.22, -5.96%) and Expedia Group (EXPE 214.65, -9.18, -4.10%) dot the bottom of the average. STX along with other memory peers is notably weaker today on possible profit taking with the sector up handsomely these past week weeks, DHI falls after Evercore ISI downgraded the stock to In-Line this morning.
Meanwhile, Estee Lauder (EL 91.35, +2.69, +3.03%) is near the top of today's standings despite a dearth of corporate news.
Gold tops $4,000 as safe-haven demand surges on Fed cut bets and geopolitical jitters
07-Oct-25 14:00 ET
Dow -156.47 at 46538.29, Nasdaq -173.99 at 22767.69, S&P -32.29 at 6707.98
[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.76%) is today's worst-performing major average, down nearly 174 points.
Gold futures settled $28.10 higher (+0.7%) at $4,004.40/oz, as investors piled into safe-haven assets amid U.S. government shutdown worries, a weaker dollar, and renewed geopolitical tensions. Expectations for imminent Fed rate cuts and continued central-bank buying further fueled the metal's climb to fresh record highs.
Meanwhile, the U.S. Dollar Index is up about +0.4% to $98.47.
James Hardie Sharply Higher on Q2 Guide Up; Marks a Return to Yr/Yr Growth (JHX)
James Hardie (JHX) is sharply higher today after issuing upside Q2 (Sep) guidance this morning ahead of its official earnings report in November. The company guided Q2 revenue of $1.29-1.30 bln and EPS of $0.26-0.27. The Q2 guidance is a nice rebound for the exterior building products maker, following a steep sell-off after its Q1 (Jun) miss earlier in August.
- The Q2 revenue guidance implies 34-35 % yr/yr revenue growth, which would mark a return to growth following 4 consecutive quarters of declines.
- The company noted that its siding & trim business sales exceeded expectations, with organic net sales falling low single digits yr/yr. Distributors and dealers also reduced inventory less than anticipated.
- Recall JHX completed its acquisition of AZEK in July. The integration and synergy remain on track, with AZEK growing mid-single digits in both net sales and sell-through for Deck, Rail & Accessories. Management highlighted opportunities to gain shelf space and cross-sell siding through AZEK's dealer network.
- While single-family construction remains challenging, the improved outlook highlights the value of AZEK and suggests that repair and remodel demand may be more resilient than expected.
Briefing.com Analyst Insight
The large upside in guidance is encouraging and reflects steady performance across both siding & trim and AZEK. Channel trends appear more stable than earlier in the year, helped by more balanced inventory levels. While the broader housing market remains mixed, early synergy progress and increased visibility into siding & trim bode well for JHX in FY26.
Dell more than doubles growth forecast as AI demand accelerates infrastructure expansion (DELL)
Dell Technologies (DELL) issued a bullish long-term outlook at its 2025 Securities Analyst Meeting, sharply raising its growth targets and underscoring how accelerating AI adoption is transforming its business. The new framework reflects greater confidence in DELL’s infrastructure and storage franchises, as well as its ability to capitalize on surging AI-driven compute demand.
- DELL raised its long-term annual revenue growth target to +7-9% (from +3-4%) and lifted its Non-GAAP EPS growth target to +15% (from 8%+).
- Management reaffirmed Q3 and FY26 guidance, reinforcing credibility and consistent execution.
- DELL expects AI-related global data center CapEx to hit $400 bln in 2025, doubling from prior forecasts, while the 2027 AI hardware and services TAM has jumped to $310 bln from $124 bln two years ago.
- Unstructured data growth of 55% annually (now 80% of all new data) is fueling strong demand for DELL’s AI-optimized storage and infrastructure solutions.
- DELL anticipates $6.7 trillion in global data center investment, with architectural shifts toward high-density, power-efficient clusters that align with its full-stack infrastructure approach.
Briefing.com Analyst Insight:
DELL’s upgraded long-term model positions it squarely at the center of the AI infrastructure boom. The company’s decision to double its growth targets is striking, reflecting both secular tailwinds in compute and storage and its confidence in sustaining operational leverage. The reaffirmation of near-term guidance adds credibility to this bullish narrative, suggesting underlying momentum is already materializing. With a massive and expanding TAM in AI hardware and services, DELL’s end-to-end infrastructure strategy and leadership in enterprise storage give it a compelling runway for durable earnings growth, making it one of the more assertive and well-positioned large-cap tech stories heading into 2026.
McCormick Q3 Earnings Top Estimates, But FY25 Outlook Weighs on Stock (MKC)
McCormick is trading lower despite delivering another solid quarterly performance in Q3 (Aug), marking its second consecutive EPS beat after a Q1 miss. Revenue rose 2.7% yr/yr to $1.72 bln, in line with expectations, driven largely by volume growth in the Consumer segment.
- Consumer segment sales rose 4% (+3% organic) to $973 mln, led by strong US volume gains, expanded Frank's RedHot promotions, new packaging, and innovation in mustard.
- Flavor Solutions segment grew 1% yr/yr (+1% organic) to $752 mln, overcoming softness in large CPG and foodservice customers with QSR growth in the Americas and Asia Pacific.
- MKC reaffirmed FY25 revenue guidance at +1-3% in constant currency, but lowered FY25 EPS guidance, citing rising commodity costs and incremental tariffs.
- Gross margin remained under pressure, especially from increased costs in the lower-margin FS segment.
Macro & Market Commentary: McCormick flagged continued macro challenges, particularly for low to mid-income consumers adjusting their buying habits — more frequent trips, fewer items per basket, and a focus on value. While cooking at home remains a tailwind, competitive pressure (notably in the US Mexican flavor category) and inflationary cost pressures loom large into FY26.
Briefing.com Analyst Insight:
Q3 results were encouraging, but the downward EPS guidance casts a shadow. Investors appear focused on the softer Q4 outlook and signs that headwinds will persist into next year. With a pressured margin profile and tough comps ahead, MKC may stay rangebound despite execution in its core Consumer business.
Constellation Brands beats muted Q2 expectations, but demand and tariff headwinds persist (STZ)
Constellation Brands (STZ) narrowly flipped the script in Q2, beating consensus on both EPS and revenue after a Q1 miss, but the upside came against a deliberately low bar and a backdrop of ongoing demand stress. Management reaffirmed the lowered FY26 framework (EPS $11.30–$11.60; enterprise net sales -6% to -4%), while warning that margin pressure and macro-driven volume weakness remain the dominant stories.
- Beer depletions fell 2.7%, slightly better than expected, but still point to demand pressure among lower-income Hispanic consumers. Modelo and Corona volumes declined 4% and 7%, respectively, due to economic headwinds and affordability concerns.
- Wine & Spirits shipments dropped 7.1% and organic net sales fell 19%. Portfolio reshaping toward premium brands continues, but results remain inconsistent, and growth hasn’t stabilized.
- Operating margin contracted 200 bps to 35.7%, pressured by tariffs and higher aluminum costs, with roughly $90 mln in combined tariff impact expected for the year.
- CapEx and marketing investments remain elevated, as the company prioritizes brand strength and supply chain upgrades despite weak volumes.
Briefing.com Analyst Insight:
STZ’s Q2 was a relative improvement, but strength came largely from low expectations rather than accelerating demand. The beer segment’s modest outperformance masks persistent softness in core Hispanic markets, while premiumization efforts in Wine & Spirits are taking longer to bear fruit. Tariffs and cost inflation continue to erode margins, leaving little near-term relief despite cost-saving efforts. With muted guidance reaffirmed and mixed brand performance, the stock’s upside appears limited until clear signs of volume recovery and margin stability emerge.
Verizon taps former PayPal head Dan Schulman as new CEO in shift towards digital innovation (VZ)
Verizon (VZ) announced that former PayPal (PYPL) CEO Dan Schulman will become its new Chief Executive Officer, replacing Hans Vestberg, who will remain as a special advisor through October 4, 2026. Shares of VZ are trading sharply lower following the announcement, reflecting investor uncertainty around the leadership change and the strategic direction Schulman may take.
- Mr. Schulman, who has served on VZ’s Board of Directors since 2018 and was elected Lead Independent Director in December 2024, brings extensive leadership experience, including nearly a decade as PYPL’s CEO, where he oversaw its split from eBay (EBAY). He also previously held senior roles at AT&T (T), Priceline, American Express (AXP), and Virgin Mobile.
- The transition comes at a critical juncture for VZ, as the company faces rising competition and slowing subscriber growth. In 2Q25, VZ reported consumer postpaid net phone losses of 51,000, an improvement from the 109,000 loss a year earlier, but still highlighting ongoing churn pressure with a 0.90% churn rate.
- Schulman’s appointment follows a wave of spectrum-related activity among competitors -- AT&T’s $23 bln acquisition of EchoStar (SATS) spectrum, and SpaceX’s $17 bln purchase of SAT’s AWS-4 and H-block licenses.
- VZ is reportedly considering acquiring SAT’s AWS-3 licenses to stay competitive in network coverage and capacity.
- Under Vestberg, VZ made heavy 5G investments, but monetizing those assets into stronger market share and revenue growth has proven difficult.
- Schulman will likely focus on digital transformation, customer experience improvements, and monetizing VZ’s 5G platform to reinvigorate growth.
Briefing.com Analyst Insight:
The appointment of Dan Schulman as VZ’s new CEO is not entirely unexpected given his long tenure on the board, but it still surprised some investors who anticipated an internal successor. Schulman’s background in digital payments and customer engagement could bring a fresh perspective to VZ’s growth strategy, particularly in leveraging 5G and enterprise solutions. However, his limited telecom CEO experience may raise execution concerns in an industry facing capital intensity and fierce competition. While the move signals VZ’s intent to pivot toward digital innovation and service diversification, investors appear cautious until Schulman articulates a clearer roadmap to reignite growth and expand profitability.
|
|
