Market Snapshot
| Dow | 46358.21 | -243.36 | (-0.52%) | | Nasdaq | 23024.65 | -18.75 | (-0.08%) | | SP 500 | 6735.10 | -18.61 | (-0.28%) | | 10-yr Note |
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| | NYSE | Adv 675 | Dec 2076 | Vol 1.12 bln | | Nasdaq | Adv 1686 | Dec 2978 | Vol 10.77 bln |
Industry Watch
| Strong: Consumer Staples |
| | Weak: Consumer Discretionary, Communication Services, Industrials, Real Estate, Materials, Financials, Energy, Information Technology, Health Care, Utilities |
Moving the Market
S&P 500 and Nasdaq Composite notch record highs before pulling back
Weakness across mega-cap names, NVIDIA (NVDA) a notable exception
Broad market pullback
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Major averages slip from record highs, rebound from session lows
09-Oct-25 16:25 ET
Dow -243.36 at 46358.21, Nasdaq -18.75 at 23024.65, S&P -18.61 at 6735.10
[BRIEFING.COM] The stock market's modest opening advance was enough to secure new record highs for the S&P 500 (-0.3%) and Nasdaq Composite (-0.1%), though a broad-based retreat quickly ensued, sending the major averages lower.
The DJIA (-0.5%) underperformed the group, staying in negative territory for the week.
While sector strength was split this morning, it deteriorated throughout the session, leaving just the consumer staples sector (+0.6%) in positive territory at the close.
Other defensive sectors spent considerable amounts of time above their baselines as well, but a handful of corporate developments saw the consumer staples sector maintain its advantage through the close.
Costco (COST 942.89, +28.09, +3.07%) captured a nice gain after reporting an increase in comparable sales of 6.0% for the month of September.
PepsiCo (PEP 144.73, +5.89, +4.24%) reported an earnings beat, and Kenvue (KVUE 16.84, +0.76, +4.70%) was one of the best-performing names in the S&P 500, continuing its rebound from recent record lows.
As for the declining sectors, the materials sector (-1.5) saw the widest loss despite Albemarle (ALB 96.50, +4.81, +5.25%) finishing as the best-performing S&P 500 name. Gold finally saw a pullback from its run to record highs, settling today's session $93.90 lower (-2.3%) at $3,976.50 per ounce.
The industrials sector (-1.4%) also lagged, even though Delta Air Lines (DAL 59.57, +2.45, +4.29%) captured a nice gain after beating EPS and revenue expectations, which sent United Airlines (UAL 101.34, +3.25, +3.31%) higher as well.
The sector faced pressure in its defense names after China's Ministry of Commerce announced the tightening of export restrictions on rare earth materials for high-tech products and military applications, sending the iShares US Aerospace and Defense ETF 1.8% lower.
The energy sector (-1.3%) rounds out the three S&P 500 sectors to close with a loss wider than 1.0%, moving lower as crude oil futures settled today's session $1.15 lower (-1.8%) at $61.42 per barrel.
This morning's retreat was initially led by the consumer discretionary (-0.2%) and communication services (-0.1%) sectors, which faced early pressure in their mega-cap components, though the market's largest names would go on to finish well off their session lows.
Tesla (TSLA 435.46, -3.23, -0.74%) narrowed its early loss by nearly two percentage points, while Meta Platforms (META 733.51, +15.67, +2.18%) and Amazon (AMZN 227.74, +2.52, +1.12%) captured nice gains.
NVIDIA (NVDA 192.57, +3.46, +1.83%) also contributed with a strong performance after receiving a target raise to $300 from $240 at Cantor Fitzgerald. In conjunction with Oracle's (ORCL 297.04, +8.41, +2.91%) advance, the information technology sector (-0.1%) stayed close to its flatline despite a majority of components moving lower.
The Vanguard Mega Cap Growth ETF (-0.1%) also closed just beneath its baseline after facing a loss of 0.5% earlier in the session.
Today's action once again featured a lack of notable macro catalysts. The market did not receive any economic data of note due to the ongoing government shutdown, the Senate once again failed to pass a funding bill to end the shutdown, and none of today's FOMC speakers said anything to nudge the market's rate cut expectations in one way or another.
While the lack of drivers made for an uneventful afternoon, a late session pickup in buying among the market's largest names suggests investors may already be looking to capitalize on another buy-the-dip play.
U.S. Treasuries saw some selling early in the cash session that resulted in yields drifting higher across the curve. The 2-year note yield settled up two basis points to 3.60%, and the 10-year note yield settled up two basis points to 4.15%.
- Nasdaq Composite: +19.2% YTD
- S&P 500: +14.5% YTD
- Russell 2000: +10.7% YTD
- DJIA: +9.0% YTD
- S&P Mid Cap 400: +4.3% YTD
Mega-caps improve standing just before the close
09-Oct-25 15:35 ET
Dow -305.97 at 46295.60, Nasdaq -45.13 at 22998.27, S&P -24.57 at 6729.14
[BRIEFING.COM] The major averages are slightly improved from their session lows, though a fierce buy-the-dip play would need to come to fruition quickly to bring them back to their baselines.
Ferrari (RACE 404.77, -74.44, -15.53%) is on track for its worst trading day ever on the New York Stock Exchange after the company disappointed investors with updated earnings guidance.
Meanwhile, Tesla (TSLA 435.22, -3.47, -0.79%) has substantially narrowed its loss for the day after being down 2.7% this morning. With Amazon (AMZN 226.79, +1.57, +0.70%) also reversing an earlier loss, the consumer discretionary sector (-0.3%) is no longer among the worst-performing S&P 500 sectors today.
The Vanguard Mega Cap Growth ETF (-0.2%) has halved its earlier loss, and the market-weighted S&P 500 (-0.4%) now considerably outperforms the S&P 500 Equal Weighted Index (-0.9%).
Equities and commodities both face pressure today
09-Oct-25 15:00 ET
Dow -315.85 at 46285.72, Nasdaq -73.53 at 22969.87, S&P -30.88 at 6722.83
[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.4), and DJIA (-0.7%) sit near session lows as the market enters the final hour of the session.
The consumer staples sector (+0.3%) remains the only S&P 500 sector in positive territory as the stock market largely retreats after fresh record highs.
Commodities also faced pressure today, as crude oil futures settled today's session $1.15 lower (-1.8%) at $61.42 per barrel, contributing to a 1.3% loss in the energy sector.
Even gold, which has surged to record high levels over the past week, settled today's session $93.90 lower (-2.3%) at $3,976.50 per ounce
S&P 500 slips as AppLovin, PulteGroup, and Newmont weigh; Albemarle jumps on TD Cowen target boost
09-Oct-25 14:25 ET
Dow -263.60 at 46337.97, Nasdaq -83.58 at 22959.82, S&P -28.03 at 6725.68
[BRIEFING.COM] The S&P 500 (-0.42%) is in second place on Thursday afternoon, down about 28 points.
Briefly, S&P 500 constituents AppLovin (APP 600.35, -29.35, -4.66%), PulteGroup (PHM 121.53, -6.13, -4.80%), and Newmont Corporation (NEM 84.85, -3.55, -4.02%) dot the bottom of the standings. APP slides after a Needham analyst call flagged slowing growth in its core gaming business and muted momentum in e-commerce initiatives, while PHM falls after Barclays warned of softer margins, elevated valuations, and overly optimistic 2026 estimates across large-cap homebuilders, and NEM is weaker owing in part to losses in gold.
Meanwhile, Albemarle (ALB 96.16, +4.47, +4.88%) is one of today's better performers, stronger today after analysts at TD Cowen upped their target on the stock to $85 from $70 ahead of the Q3 print.
Gold drops 2.4% to $3,972 as traders take profits after record run, dollar strengthens
09-Oct-25 14:00 ET
Dow -246.88 at 46354.69, Nasdaq -103.47 at 22939.93, S&P -29.42 at 6724.29
[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.45%) is in second place on Thursday afternoon, down about 103 points.
Gold futures settled $97.90 lower (-2.4%) at $3,972.60/oz, as traders took profits after a record run above $4K, pressured by a firmer dollar and easing geopolitical tensions. Analysts said the pullback looks technical, with underlying support from rate-cut bets and central-bank demand still intact.
Meanwhile, the U.S. Dollar Index is up about +0.6% to $99.44.
Costco's comps shine again in September, fueled by traffic, ticket size, and digital sales (COST)
Costco (COST) reported another solid month of sales growth in September, underscoring the retailer’s continued momentum heading into the holiday season. Comparable sales rose +6.0% when excluding gasoline and foreign exchange impacts. While slightly below August’s +6.9% and July’s +7.0%, last September’s sales were boosted by roughly 2% in the U.S. and 1.5% worldwide due to hurricane-related buying and port strikes.
- Extended Executive hours and higher traffic/average spend supported sales.
- COST is seeing broad category strength. In Q4 (reported on September 25), fresh foods were up high-single digits, while standout non-foods included gold & jewelry, electronics, toys, gift cards, and men’s apparel.
- E-commerce surged +26.3% in September, driven by faster delivery, expanded online assortment, and improved digital integration.
- COST's strong September sales indicate that Amazon’s (AMZN) same-day delivery hasn’t impacted its market share yet.
- Strong momentum sets COST up well for the upcoming holiday season.
Briefing.com Analyst Insight:
COST’s September results reaffirm its position as one of the most reliable retail performers in a still-choppy consumer environment. While the month’s comps showed a mild sequential slowdown, the underlying trends -- strong traffic, healthy ticket growth, and robust e-commerce -- remain highly encouraging. The company’s blend of value, quality, and member loyalty continues to buffer it against macro and competitive pressures, including AMZN’s latest delivery push. With category strength broad-based and digital engagement accelerating, COST enters the holiday quarter with strong operating momentum and renewed pricing power.
PepsiCo moves higher on EPS beat and accelerating revenue growth; volumes still a watch point (PEP)
PepsiCo (PEP) is moving higher today after reporting its Q3 results this morning. The beverage and snack food giant beat EPS expectations, while reported revenue growth accelerated, increasing 2.6% yr/yr to $23.94 bln, which was in line with expectations. Organic revenues increased 1.3% compared to 2.1% in Q2.
- Revenue growth accelerated despite a 1% volume decline; PBNA delivered 2% organic growth with a 3% volume headwind from the Pack Water transition. Beverage volume grew excluding Pack Water.
- PFNA margin trends improved as cost cuts and tighter promotions gained traction; permissible snacks like Sun Chips, Simply, and Quaker rice cakes posted double-digit growth.
- International remained strong with 4% organic growth (18 straight quarters of mid-single-digit or better); International beverages led with 6% organic growth.
- Management noted away-from-home is growing about 2-3x than that of retail.
- Highlights included double-digit growth in Pepsi Zero Sugar, continued Mountain Dew strength, and strong momentum in Poppi and Propel.
- Margins expanded on pricing, mix, and productivity actions, including automation, logistics, and trade optimization, and expects to mitigate higher supply chain costs moving forward.
- Management called discussions with Elliott constructive, noting alignment on strategy and shared view that the stock is undervalued.
Briefing.com Analyst Insight
PepsiCo's Q3 results showed resilience, with accelerating revenue and expanding margins despite ongoing volume pressure. Cost actions are gaining traction, and innovation in zero-sugar and functional beverages continues to perform well. Constructive engagement with Elliott and the addition of Walmart CFO Steve Schmitt should further strengthen PepsiCo's focus on efficiency and profitability. Overall, it was a solid quarter, encouraging in the longer-term, but with limited near-term upside as volume and input cost headwinds persist.
AZZ Misses Q2 Earnings but Reaffirms FY26 Guidance: A Warning Sign for Manufacturing Stocks? (AZZ)
AZZ Inc. (AZZ) came under pressure following a rare earnings miss for fiscal Q2 (Aug), its first in over two years. The company—known for its hot-dip galvanizing and coil coating services—offers early insights into the manufacturing sector ahead of peak earnings season. However, this report raises some concerns.
- Revenue rose just 2% yr/yr to $417.3 mln, well below expectations, while EPS also missed estimates—marking a sharp reversal from a strong $0.20 beat in Q1.
- Despite the shortfall, AZZ reaffirmed its FY26 EPS and revenue guidance, suggesting confidence in a stronger second half.
Segment performance was mixed:
- Metal Coatings (MC): Sales grew 10.8% yr/yr to $190 mln, driven by volume growth and solid infrastructure-related demand across construction, industrial, and electrical transmission markets. Adjusted EBITDA margin dipped 90 bps to 30.8% due to mix shift, but this segment was clearly the bright spot.
- Precoat Metals (PM): Sales declined 4% yr/yr to $227.3 mln as demand softened in construction, HVAC, and appliance markets. EBITDA margin also fell 90 bps to 20.2% on lower volume.
Briefing.com Analyst Insight:
This was a disappointing quarter for AZZ, especially following a strong Q1. The miss in both revenue and EPS makes us more cautious for manufacturing names as we head into the heart of Q3 earnings season. While the FY26 guidance reaffirm is a modest positive, the weakness in Precoat Metals and soft demand in key end markets suggest broader industrial headwinds. AZZ may be a canary in the coal mine—raising a yellow flag for the rest of the manufacturing space.
Delta Air Lines climbs higher as premium and loyalty growth fuel another strong quarter (DAL)
Delta Airlines (DAL) delivered a strong Q3 performance that easily topped expectations, sending the stock sharply higher today. EPS came in at $1.71, up 14% yr/yr and well ahead of estimates, while revenue rose over 6% yr/yr to a Q3 record $16.67 bln. Adjusted unit revenue (TRASM) increased 0.3% yr/yr, representing a 3.5-point sequential improvement, reflecting both resilient pricing and improving travel demand. DAL’s strong Q3 results and upbeat Q4 guidance serve as a bullish indicator for the broader commercial airline industry as competitors prepare to announce their Q3 results.
- The airline’s Q4 EPS guidance of $1.60-$1.90 came in above expectations at the midpoint, while its revenue growth outlook of +2-4% also topped estimates.
- DAL highlighted strong momentum for the remainder of FY25 and into FY26, noting that sales trends have accelerated across all geographies and every advance purchase window over the past six weeks.
- Domestic operations were a bright spot, with unit revenue up 2% yr/yr driven by an 8% rise in corporate sales, ongoing strength in premium cabins, and an inflection in main cabin revenue growth. DAL expects domestic unit revenue to remain positive in Q4.
- Premium revenue climbed 9% yr/yr, and loyalty revenue also grew 9%, supported by a 12% increase in American Express (AXP) remuneration to $2 bln.
- The company noted that yr/yr comparisons were modestly aided by lapping last year’s CrowdStrike (CRWD) outage, which boosted total revenue growth by 2.6 points and unit revenue growth by 1.1 points.
Briefing.com Analyst Insight:
DAL’s Q3 results reinforced the effectiveness of its premiumization and diversification strategy, which continues to set it apart from peers. Stronger-than-expected guidance and accelerating demand trends suggest that DAL is benefiting from both leisure resilience and an improving corporate travel backdrop. While the favorable comparison to last year’s outage adds a small asterisk to the growth figures, the broader demand recovery and loyalty-driven revenue base are clear positives. Importantly, DAL’s strong results and confident outlook set an optimistic tone for the airline industry as peers prepare to report their own Q3 earnings. With operational efficiency improving and premium and Amex partnerships driving high-margin growth, DAL looks well-positioned heading into the key holiday travel season and early FY26.
Figma Extends Sharp Rally After OpenAI Highlights ChatGPT Integration
Recent IPO Figma (FIG) continues to rally sharply higher after its collaborative design platform was spotlighted by OpenAI CEO Sam Altman during the company's "ChatGPT Inside" developer event yesterday. Shares have now surged more than 30% since the event, though the stock still remains well below post-IPO highs.
- The new Figma app in ChatGPT, featured on Figma's blog and at OpenAI's event, lets users convert brainstorming sessions or uploaded sketches into FigJam diagrams like flowcharts and wireframes, directly within ChatGPT.
- For Figma, the integrated app provides visibility to ChatGPT's massive user base and underscores the strength of its flagship design platform, with room to expand future AI capabilities as its beta tools like Make and Buzz mature.
- ChatGPT can also suggest the Figma app when diagramming would be useful, further boosting visibility.
- OpenAI said it will open app submissions next year, paving the way for new monetization channels, potentially benefiting early entrants like Figma.
Briefing.com Analyst Insight
While the mention at OpenAI's event has sparked enthusiasm among investors, there are still some concerns. The company reported Q2 results in early September, with Q3 revenue guidance of $263-265 mln implying a slowdown to about 33% growth from 41% in Q2. FY25 guidance of $1.021-1.025 merely met analyst forecasts, which failed to satisfy high-growth expectations. Following the strong run, its forward P/S ratio is even more lofty, north of 27x. That said, the event brings more enthusiasm to the name and could open new opportunities as AI-assisted design adoption accelerates.
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