Market Snapshot
| Dow | 46190.40 | +238.37 | (0.52%) | | Nasdaq | 22680.00 | +117.44 | (0.52%) | | SP 500 | 6664.00 | +34.94 | (0.53%) | | 10-yr Note |
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| | NYSE | Adv 1392 | Dec 1355 | Vol 1.21 bln | | Nasdaq | Adv 1975 | Dec 2663 | Vol 9.60 bln |
Industry Watch
| Strong: Financials, Consumer Staples, Energy, Consumer Discretionary, Communication Services |
| | Weak: Utilities, Materials |
Moving the Market
Financials sector recovers some losses after regional banking names faced pressure yesterday, supported by strong earnings
Weakness in tech names
Broader market strength comes on weak breadth, suggesting underlying weakness
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Major averages cement solid week-to-date gains
17-Oct-25 16:25 ET
Dow +238.37 at 46190.40, Nasdaq +117.44 at 22680.00, S&P +34.94 at 6664.00
[BRIEFING.COM] The stock market recovered from some early instability as broad strength pushed the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.5%) higher, cementing solid week-to-date gains.
While many sectors spent the morning flipping between positive and negative territory, nine S&P 500 sectors ultimately finished with gains.
The consumer staples sector (+1.2%) led the way, supported by nearly all of its components trading higher and Kenvue (KVUE 15.29, +1.18, +8.36%) capturing the widest gains across S&P 500 names today, recovering over half of yesterday's losses that came after reports the company will face litigation in the U.K. for alleged links between its talc-based products and ovarian cancer.
The financials sector (+0.8%) also outperformed as it shook off some of yesterday's weakness. Regional banking names faced significant losses after Zions Bancorp (ZION 49.67, +2.74, +5.84%) disclosed $50 million in charge-offs linked to fraudulent loans, adding to recent lending and liquidity concerns throughout the industry. Many of those names rebounded at least slightly today, with the KBW Regional Bank ETF (KRE 59.08, +0.94, +1.61%) recovering a chunk of yesterday's retreat.
Support came from a slate of banking names that beat earnings expectations, including Truist (TFC 42.60, +1.51, +3.67%), Comerica (CMA 74.92, +1.07, +1.45%), and Fifth Third (FITB 40.89, +0.53, +1.31%).
Creditor names also traded higher as industry leader American Express (AXP 346.62, +23.50, +7.27%) reported another earnings beat and raised the low end of its FY25 EPS and revenue guidance.
While the information technology sector (+0.4%) finished near the bottom of the standings, its move into positive territory was pivotal to the stabilization of the major averages. Weakness among semiconductor names saw the PHLX Semiconductor Index close 0.3% lower (which was well above its session lows).
Oracle (ORCL 291.45, -21.55, -6.88%) also faced a steep loss after the company's AI World Conference, with investors seemingly focused on commentary that the company is willing to accelerate investments in the near term, potentially pressuring margins and near-term earnings.
Despite the various pressures the sector faced, its three largest components, NVIDIA (NVDA 183.22, +1.41, +0.78%), Microsoft (MSFT 513.58, +1.97, +0.39%), and Apple (AAPL 252.29, +4.84, +1.96%), all closed with gains.
Only the materials (-0.4%) and utilities (-0.4%) sectors finished lower.
Macro developments were quieter today. Treasury Secretary Scott Bessent will discuss trade with the Chinese Vice Premier He Lifeng this evening, and President Trump is still reportedly set to meet with Chinese President Xi over the coming weeks.
The government remains shut down, which prevented the release of any economic data today. Rate cut expectations remain high ahead of next week's delayed release of the September Consumer Price Index.
U.S. Treasuries finished the week on a lower note, lifting yields on longer tenors off their lowest levels since April while the 2-year yield climbed off its lowest level in over three years. The 2-year note yield settled up three basis points to 3.46%, and the 10-year note yield settled up three basis points to 4.01%.
- Nasdaq Composite: +17.5% YTD
- S&P 500: + 13.3% YTD
- Russell 2000: +10.0% YTD
- DJIA: +8.6% YTD
- S&P Mid Cap 400: +3.3% YTD
Major averages poised for higher finish
17-Oct-25 15:35 ET
Dow +285.51 at 46237.54, Nasdaq +128.05 at 22690.61, S&P +36.35 at 6665.41
[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.7%), and DJIA (+0.7%) look to close the week on a higher note, treading in a steady range near session highs.
Eight S&P 500 sectors trade in positive territory, and seven hold gains wider than 0.5%.
The information technology sector (+0.6%) is among those sectors, steadily trading higher throughout the session as chipmaker performance has improved. After facing a loss wider than 1.5%, the PHLX Semiconductor Index (-0.2%) now sits just beneath its flatline.
Micron (MU 202.37, -0.16, -0.08%) has rebounded from an earlier loss that followed a Reuters report that stated the company is looking to exit China's server market.
Mega-caps advance, major averages holds solid gains
17-Oct-25 15:05 ET
Dow +326.33 at 46278.36, Nasdaq +138.63 at 22701.19, S&P +40.24 at 6669.30
[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.5%), and DJIA (+0.7%) are charting new session highs as the market enters the final hour of the session.
While the major averages have recovered from their early losses, the small-cap Russell 2000 (-0.7%) remains pinned beneath its flatline, though its current week-to-date gain of 2.3% still bests its larger counterparts.
The market's largest names, conversely, have improved throughout the session. The Vanguard Mega Cap Growth ETF holds a 0.6% gain, with Tesla (TSLA 437.64, +8.89, +2.07%) and Apple (AAPL 252.46, +5.01, +2.03%) among the standouts.
S&P 500 near highs as financials and biotech lead; Newmont slumps with gold pullback
17-Oct-25 14:30 ET
Dow +294.00 at 46246.03, Nasdaq +142.58 at 22705.14, S&P +39.63 at 6668.69
[BRIEFING.COM] The S&P 500 (+0.60%) is near HoDs, up about 40 points on Friday afternoon.
Briefly, S&P 500 constituents Gilead Sciences (GILD 123.62, +5.77, +4.90%), Capital One (COF 210.97, +7.82, +3.85%), and Axon (AXON 673.78, +21.61, +3.31%) pepper the top of the standings. COF is higher in sympathy to American Express' (AXP 346.61, +23.49, +7.27%) move post the beat and raise, while AXON caught a bullish TD Cowen note this morning.
Meanwhile, Newmont Corporation (NEM 91.69, -6.58, -6.70%) slides pretty hard amid losses in gold futures.
Gold pulls back after record run, still up 5% for the week on safe-haven demand and Fed cut bets
17-Oct-25 14:00 ET
Dow +175.78 at 46127.81, Nasdaq +57.84 at 22620.40, S&P +18.53 at 6647.59
[BRIEFING.COM] The Nasdaq Composite (+0.26%) is in last place, up about 57 points with two hours to go on Friday.
Gold futures settled $91.30 lower (-2.1%) at $4,213.30/oz, trimming some of the week's strong gains but still up +5.3% overall. The pullback followed a record-setting rally fueled by safe-haven demand amid credit concerns, U.S./China tensions, and expectations for Federal Reserve rate cuts. Reports suggested that investors took profits after gold briefly topped $4,300, while continued central bank buying and ETF inflows kept underlying sentiment firm. HSBC also raised its gold forecasts, citing geopolitical risk and a weaker dollar as ongoing drivers of strength.
Meanwhile, the U.S. Dollar Index is now less than +0.1% higher at $98.44.
Micron holds steady amid exit from China server market, placing focus on booming AI demand (MU)
Micron (MU) shares are holding up well despite a Reuters report that the company plans to exit the server chip business in China following heightened regulatory pressure from Beijing. Investors appear confident that MU can offset the lost sales in China’s data center market through booming demand from U.S. hyperscalers and a rebound in smartphone-related memory demand.
- MU will continue to sell to two Chinese customers with major data center operations outside of mainland China, including Lenovo. It will also maintain sales to automotive and mobile phone customers in China.
- In FY24, MU generated roughly $3.4 bln in revenue from mainland China, representing about 12% of total revenue.
- The exit announcement comes on the heels of MU’s stellar 4Q25 results, reported on September 24, which included a significant EPS beat and upside guidance for 1Q26.
- Growth continues to be fueled by surging demand for HBM (high bandwidth memory) chips, which powered a 214% revenue jump in the Cloud Memory unit last quarter.
- DRAM prices remain elevated due to persistent supply constraints and strong demand, helping push Q4 gross margin up 670 bps to 45.7%.
Briefing.com Analyst Insight:
While the decision to exit China’s server chip business underscores the geopolitical and regulatory challenges that U.S. chipmakers face, MU’s strategic position in AI-related memory solutions gives it a strong offsetting growth engine. The company’s booming HBM sales and strengthening pricing power in DRAM and NAND are likely to cushion any near-term revenue loss tied to China. This move may even streamline operations and reduce risk exposure to unpredictable policy actions. Investors are rightly focusing on MU’s dominant role in the AI-driven memory cycle, which appears to be in its early innings. With expanding margins and a favorable demand backdrop, the stock’s resilience today looks well justified.
CSX Stays on Track Under New CEO; Intermodal Strength and Smoother Operations Highlight Q3 (CSX)
CSX (CSX) is tracking higher today after reporting its Q3 results last night. The rail operator beat EPS expectations, while revenue was in line, falling just 0.9% to $3.59 bln. The decline this quarter was much less pronounced than in the previous three quarters. Volumes increased 1% yr/yr and 2% sequentially to 1.61 mln units.
- Intermodal was the source of strength despite soft trucking market and muted pricing, with revenue up 4% on a 5% increase in volume, offsetting weaker export coal and softer merchandise trends.
- Minerals, fertilizer, metals, and automotive saw volume gains, led by minerals (+12% volume, +8% revenue), while merchandise, forest products, chemicals, and ag stayed weak amid tariff, trade, trucking and commodity headwinds.
- Operationally, train velocity improved to its fastest pace since early 2021, while dwell time fell to its lowest level since mid-2023. Intermodal TPC rose to 93% (from 90%) and carload TPC climbed to 83% (from 75%), reflecting fluidity of its network.
- With the Howard Street Tunnel and Blue Ridge projects complete, customers should see improved service from fewer out-of-route miles. CSX expects to benefit from double-stack clearance through Baltimore in 2QFY26.
- New CEO Steve Angel downplayed the likelihood of large-scale M&A, citing regulatory barriers and integration challenges, instead emphasizing "best-in-class" performance as key value drivers.
Briefing.com Analyst Insight
This was a solid, steady quarter that helped build confidence under new leadership, showcasing operational progress and improving network performance. Service continues to improve, costs are being well managed, and intermodal is holding up well in a mixed market. While some uncertainty lingers, investors appear comfortable with the company's direction. The stock is edging closer to its highs on the report, though not quite enough to break through yet.
Interactive Brokers Volumes Surge, but ForecastEx Steering Clear of Sports Betting For Now (IBKR)
Interactive Brokers is trading roughly flat following a modest Q3 EPS beat. Revenue rose a healthy 21.2% yr/yr to a record $1.66 bln, topping expectations and marking its strongest growth since Q4 of last year.
- Commissions climbed to a record $537 mln, up 23% yr/yr, fueled by higher trading volumes from IBKR's expanding base of active customers. Volumes outpaced industry averages across major asset classes.
- Options volume surged 27% yr/yr to a new quarterly high, while equity volumes jumped 67% yr/yr as global participation in markets increased.
- Net interest income hit a record $967 mln, aided by higher segregated cash and margin loan balances, and a sharp rise in securities lending, despite lower benchmark rates in most major currencies.
- Crypto trading volumes rose 87% qtr/qtr and were more than 5x yr/yr. IBKR introduced recurring buy orders for crypto and added Solana to its Hong Kong crypto platform.
- Macro: The firm highlighted a more favorable macro backdrop in Q3, with the Fed's first rate cut since late last year, contributing to positive sentiment. Investors remained active during both market dips and rallies.
- Analysts took interest in ForecastEx, IBKR's prediction market platform. It now features 8,200+ open forecast contracts, up 27% qtr/qtr, and contract volumes traded surged 165% sequentially.
- When asked about launching sports betting contracts, IBKR downplayed the possibility, stating it's awaiting legal clarity and is not currently considering entry into sports betting. The firm is focused on growing broker partnerships and driving customer participation on ForecastEx.
Briefing.com Analyst Insight:
This was a solid quarter for Interactive Brokers, with record revenue, commissions, and interest income underscoring the platform's growing appeal to active traders globally. The strength in options, equities, and crypto volumes speaks to a broadening customer base and high engagement, even as market conditions fluctuate. However, the flat stock reaction suggests investors may have been looking for a bigger beat or more headline excitement. The cautious stance on sports betting likely disappointed some speculative bulls. Still, with strong core fundamentals, IBKR remains a compelling name in the brokerage space, even if the ForecastEx platform remains more of a long-term wild card than a near-term catalyst.
American Express exceeds Q3 estimates, raises FY25 outlook as Platinum Card demand surges (AXP)
American Express (AXP) extended its streak of strong performance, topping EPS estimates for the seventh consecutive quarter as consumer spending remained robust. EPS rose 19% yr/yr to $4.14, while Total Billed Business climbed 8% yr/yr to $388.1 bln, supported by healthy demand from younger, affluent cardmembers.
- The company raised the low end of its FY25 EPS guidance to $15.20-$15.50 from $15.00-$15.50 and now expects revenue growth of 9-10%, versus its prior 8-10% range.
- Demand for its refreshed Platinum Card, which carries an $895 annual fee, exceeded expectations, with new U.S. Platinum account acquisitions doubling pre-refresh levels.
- Total proprietary new cards added were 3.2 mln, with millennials and Gen Z comprising 64% of global consumer new accounts.
- Credit quality remained stellar, as the Q3 net write-off rate held steady at 1.9%, 30+ days past due was just 1.3%, and provisions for credit losses declined to $1.3 bln from $1.4 bln a year ago.
Briefing.com Analyst Insight:
AXP delivered another strong quarter, demonstrating the durability of its premium customer base and disciplined credit management. The raised FY25 outlook is a constructive shift from last quarter’s cautious reaffirmation and signals growing confidence in sustained spending trends. While the Platinum Card’s successful relaunch underscores AXP’s pricing power and brand appeal, the company remains tied to the broader trajectory of consumer confidence and discretionary spending. Given the healthy credit metrics and upside guidance, the risk-reward profile still looks favorable, though the stock’s valuation may already reflect much of this optimism. Overall, the company’s ability to expand margins while maintaining industry-leading credit quality reinforces its positioning as one of the most resilient names in financial services.
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