Market Snapshot
| Dow | 46091.53 | -498.50 | (-1.07%) | | Nasdaq | 22432.87 | -275.23 | (-1.21%) | | SP 500 | 6617.31 | -55.09 | (-0.83%) | | 10-yr Note |
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| | NYSE | Adv 1465 | Dec 1263 | Vol 1.23 bln | | Nasdaq | Adv 2340 | Dec 2328 | Vol 8.65 bln |
Industry Watch
| Strong: Consumer Staples, Health Care, Communication Services, Real Estate, Energy, |
| | Weak: Consumer Discretionary, Information Technology, Utilities, Financials, Industrials |
Moving the Market
-- Losses in mega-cap stocks after Rothschild & Co. downgraded Microsoft (MSFT) and Amazon.com (AMZN)
--Broader market split in afternoon trading, mega-cap losses weighing on major averages
--Semiconductor names lag
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Major averages retreat as investors rotate out of mega-caps
18-Nov-25 16:30 ET
Dow -498.50 at 46091.53, Nasdaq -275.23 at 22432.87, S&P -55.09 at 6617.31
[BRIEFING.COM] The stock market saw some choppy action in today's trade, and while some pockets of the market posted solid performances, lingering weakness across tech and mega-cap names saw the S&P 500 (-0.8%), Nasdaq Composite (-1.2%), and DJIA (-1.1%) close below their 50-day moving averages for the second consecutive day.
As many as nine S&P 500 sectors held losses at once during session lows, while nine sectors held gains at session highs. Ultimately, five sectors finished higher, but the underperformance of the consumer discretionary (-2.5%) and information technology (-1.7%) sectors was prominent through the entirety of the session.
Home Depot (HD 336.48, -21.55, -6.02%) held the widest loss in the consumer discretionary sector after missing EPS estimates and lowering its FY26 guidance, which weighed on other retailers in the sector.
Amazon (AMZN 222.55, -10.32, -4.43%) also lagged after Rothschild & Co. downgraded the stock to Neutral from Buy.
The firm also downgraded Microsoft (MSFT 493.79, -13.70, -2.70%) to Neutral from Buy, which set the tone for early weakness in the technology sector.
The sector faced pressure in its chipmaker components, which sent the PHLX Semiconductor Index 2.3% lower, widening its week-to-date loss past 9.0%. NVIDIA (NVDA 181.37, -5.23, -2.80%) traded lower ahead of its earnings report after the close tomorrow, while names like Advanced Micro Devices (AMD 230.29, -10.23, -4.25%) and Micron (MU 228.50, -13.45, -5.56%) faced even steeper losses.
Meanwhile, Alphabet (GOOG 284.96, -0.64, -0.22%) faced some choppy action today, holding gains wider than 1.0% before ultimately closing below its flatline. Loop Capital upgraded the stock to Buy from Hold.
Despite Alphabet ceding its gain, the communication services sector (+0.1%) still finished in positive territory. Warner Bros. Discovery (WBD 23.69, +0.95, +4.18%) led the way as it prepares to receive bids from prospective buyers, while Netflix (NFLX 114.09, +3.80, +3.44%) saw some buying interest after its 10-to-1 stock split took effect yesterday.
The health care sector (+0.5%) unsurprisingly finished with one of the widest gains as investors continue to rotate into the sector amid valuation concerns that now surround the AI trade.
Medtronic (MDT 100.80, +4.52, +4.69%) paced the gains after a solid beat-and-raise earnings report, while Merck (MRK 96.43, +3.57, +3.84%) finished higher after announcing it will increase its quarterly dividend to $0.85 per share from $0.81 per share.
Elsewhere in the sector, managed care names including UnitedHealth (UNH 313.58, -6.94, -2.17%) and Elevance Health (ELV 324.53, -6.38, -1.93%) traded lower after President Trump lambasted health insurance companies in a Truth Social post this morning.
The energy sector (+0.6%) ended up with the widest gain as crude oil futures settled today's session $0.76 higher (+1.3%) at $60.68 per barrel.
Outside of the S&P 500, the Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.3%) shook off some early sluggishness to the tune of solid gains.
On the macro front, December rate cut expectations got a modest boost from the unexpected overnight release of some October weekly jobless claims data. Initial jobless claims for the week ending October 18 were 232K (prior revised to 219K from 218K); continuing jobless claims for the week ending October 11 were 1947K (prior revised to 1916K from 1926K). The CME FedWatch Tool now assigns a 51.1% probability to a 25-basis point rate cut at the December FOMC meeting, up from 42.4% yesterday.
Ultimately, today's action reflected a further rotation out of AI and mega-cap names and into more value-oriented positions. While breadth figures ended the day modestly positive, and sector strength was an almost even split, a 1.4% slide in the Vanguard Mega Cap Growth ETF was more than enough to facilitate losses at the index level.
The AI trade continues to stumble ahead of NVIDIA's earnings release tomorrow after the close, as not even headlines of a partnership between NVIDIA, Microsoft, and Anthropic, or the news that the U.S. is working on the sale of advanced chips to Saudi Arabia, triggered any buying interest.
U.S. Treasuries traded firmly with a bull steepener trade in play, having digested several economic releases today. The 2-year note yield settled down three basis points to 3.58%, and the 10-year note yield settled down one basis point to 4.12%.
- Nasdaq Composite: +16.2% YTD
- S&P 500: +12.5% YTD
- DJIA: +8.3% YTD
- Russell 2000: +5.3% YTD
- S&P Mid Cap 400: +1.1% YTD
Reviewing today's data:
- Weekly Initial Claims 232K; Prior was revised to 219K from 218K
- Weekly Continuing Claims 1.947 mln; Prior was revised to 1.916 mln from 1.926 mln
- August Factory Orders 1.4% (Briefing.com consensus 0.8%); Prior -1.3%
- The key takeaway from the report is that business spending remained on an upswing, evidenced by back-to-back increases in new orders for nondefense capital goods, excluding aircraft, in July and August.
- November NAHB Housing Market Index 38 (Briefing.com consensus 36); Prior 37
Chipmakers among today's laggards
18-Nov-25 15:30 ET
Dow -382.47 at 46207.56, Nasdaq -168.22 at 22539.88, S&P -30.04 at 6642.36
[BRIEFING.COM] The major averages are well improved from session lows but remain firmly in negative territory just before the close.
Bloomberg reports that the Trump administration plans to sell advanced AI chips to the Saudi Arabian AI company Humain. However, the headline has not had a noticeable effect on the standings of chipmaker names, as the PHLX Semiconductor Index is down 1.9% for the day.
Communincation services sector leads rebound effort
18-Nov-25 15:10 ET
Dow -310.53 at 46279.50, Nasdaq -148.89 at 22559.21, S&P -24.10 at 6648.30
[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.5%), and DJIA (-0.6%) sit at their best levels of the day, as the broader market, with the exception of some tech, mega-cap, and retailer names, is mostly higher.
The communication services sector (+1.0%) has mounted a strong turnaround effort today after holding a loss wider than 1.0% earlier in the session.
Alphabet (GOOG 288.72, +3.12, +1.09%), which traded higher in the premarket after Loop Capital upgraded the stock to Buy from Hold, is the best-performing mega-cap name today. Google launched its Gemini 3 today, which includes generative interfaces and an AI agent.
Meanwhile, Warner Bros. Discovery (WBD 23.66, +0.92, +4.05%) trades higher after setting November 20 as the first-round bid deadline for prospective buyers, while Netflix (NFLX 114.52, +4.23, +3.84%) also holds a solid gain.
S&P 500 slips 0.4% as tech memory stocks lead losses, Freeport surges on Grasberg restart plans
18-Nov-25 14:30 ET
Dow -328.40 at 46261.63, Nasdaq -148.28 at 22559.82, S&P -24.80 at 6647.60
[BRIEFING.COM] The S&P 500 (-0.37%) is in "first" place on Tuesday afternoon, down about 25 points with more aggressive losses being had elsewhere.
Briefly, S&P 500 constituents Western Digital (WDC 155.07, -7.38, -4.54%), Fortinet (FTNT 79.76, -2.18, -2.66%), and Dollar Tree (DLTR 101.03, -2.64, -2.55%) dot the bottom of the standings. WDC alongside fellow memory peers SNDK (-6.2%), MU (-4.2%), and STX (-1.1%) are weaker as investors employ more profit taking amid the group's ongoing strength.
Meanwhile, Freeport-McMoRan (FCX 41.02, +2.02, +5.18%) is near the top of the standings as investors cheered plans to restart large-scale Grasberg production, restore full copper and gold output, and project strong growth through 2029.
Gold slips as firm dollar and fading Fed cut hopes weigh on prices
18-Nov-25 14:00 ET
Dow -293.02 at 46297.01, Nasdaq -117.93 at 22590.17, S&P -15.20 at 6657.20
[BRIEFING.COM] With about two hours to go on Tuesday afternoon the tech-heavy Nasdaq Composite (-0.52%) is in second place, down about 118 points.
Gold futures settled $8.00 lower (-0.2%) at $4,066.50/oz, as a firmer dollar and reduced expectations for near-term Fed rate cuts pressured the non-yielding metal. Technical softness added to the drift lower, even as longer-term support from steady central-bank demand remains intact.
Meanwhile, the U.S. Dollar Index is now less than +0.1% higher to $99.57.
Amer Sports Delivers Beat-and-Raise Q3 Backed By Broad Growth Across Its Outdoor Brands (AS)
Amer Sports (AS) is nicely higher today after reporting its Q3 results this morning. The Finland-based athletic company comfortably beat expectations on the top and bottom line, with revenue accelerating, increasing 30% yr/yr to $1.76 bln. The company also raised its FY25 guidance, now expecting EPS of $0.88-0.92 from $0.77-0.82, above expectations, while revenue is now expected to grow 23-24% (about 6.375-6.427 bln) from +20-21% growth.
- Outdoor Performance remains a key driver, with revenue increasing 36% (+35% in Q2) to $724 mln, driven by strong Salomon footwear momentum; omni-comp in the segment was +33%.
- Technical Apparel followed, with revenue increasing 31% (+23% in Q2) to $683 mln, supported by Arc'teryx's reaccelerating DTC omni-comp (+27% from +15%), and continued strength across women's and footwear.
- Ball & Racquet had another double-digit quarter, up 16% yr/yr to $350 mln, an acceleration from +11% in Q2, driven by Wilson soft goods and solid racquet-sports demand across China, APAC, and Europe.
- DTC continued to reflect strong consumer connection, growing 51% group-wide as all regions delivered double-digit growth, led by APAC (+54%), China (+47%), EMEA (+23%), and the Americas (+18%).
- Looking ahead, AS expects growth to reach the high end of its long-term targets, alongside continued margin expansion, which increased 160 bps to 56.8%.
Briefing.com Analyst Insight
AS's beat-and-raise report is helping lift shares, supported by ongoing strength across Arc'teryx and Salomon footwear, which continue to anchor the company's growth. Salomon remains a standout with strong sports-style demand, improving traction in performance running, and rapid growth across China, Korea, and Japan. Regionally, APAC and China remain the fastest-growing markets, Europe provides a stable base, and North America is improving as AS refines its channel mix and leans more into DTC and better wholesale partners. Taken together with the raised FY25 outlook, these trends indicate AS remains well positioned as it moves toward 2026. Even so, shares have been stuck in a tight range since the big gap-up in May. Today's move is encouraging, but in a competitive retail environment, investors may still want to see sustained outperformance from Salomon and Arc'teryx.
Baidu's AI Cloud and AI-Powered businesses drive strong Q3, cushioning ad revenue drop (BIDU)
Baidu (BIDU) is showing notable relative strength today after beating Q3 EPS and revenue expectations, driven by robust AI Cloud and AI-native marketing services, cushioning a pronounced downturn in its legacy online marketing business. The company’s outlook and fundamentals highlight the shift to AI-fueled growth amid persistent challenges in traditional segments.
- Baidu Core revenue fell 7% yr/yr to RMB 24.7 bln, with operating income turning negative due to infrastructure impairments and cost pressures.
- Online Marketing revenue dropped 18% yr/yr as weak advertiser demand and macro softness persisted.
- Non-Online Marketing revenue rose 21% yr/yr to RMB 9.3 bln, led by strong AI Cloud growth.
- AI Cloud benefited from rising enterprise demand for full-stack AI infrastructure and agent-based solutions.
- AI-powered business revenue climbed 50% yr/yr to RMB 10.0 bln. Subscription-based AI Cloud Infra revenue jumped 128%.
- AI-native marketing services soared 262% yr/yr to RMB 2.8 bln on advertiser adoption of agents and digital humans.
- Apollo Go delivered 3.1 mln fully driverless rides in Q3, up 212% yr/yr, expanding to 22 cities.
Briefing.com Analyst Insight:
BIDU’s Q3 performance underscores the accelerating shift from legacy online advertising to scalable, high-growth AI businesses. Core digital ad softness continues to weigh on aggregate financials and near-term profits, as seen in the headline decline and impairment-driven loss, yet BIDU’s AI Cloud, AI-native marketing, and autonomous driving franchises are showing more durable, broad-based momentum. The AI Cloud segment is especially well positioned, benefitting from foundational tech, proprietary ERNIE models, and a rapidly scaling subscriber base. Apollo Go’s expansion and runaway growth further validate BIDU’s execution advantage in mobility. The business mix, while at an inflection point, is increasingly balanced toward AI-driven and recurring-revenue categories that could underpin margin recovery and multiple expansion as legacy headwinds eventually moderate. For now, visibility in online marketing remains limited and competitive threats persist, but BIDU is standing out among Chinese tech peers as one of the purest platform bets on commercial AI.
Klarna’s First Public Report Shows Accelerating Growth, but Losses and Competition Weigh (KLAR)
Klarna Group (KLAR) is trading lower after its Q3 results this morning, its first report since going public in September. The company beat revenue expectations, which increased 28% yr/yr to a record $903 mln, but operating loss widened to $(83) mln compared to $13 mln in the year-ago period. Management also expects further momentum in Q4, issuing upside revenue guidance of $1.065-1.080 bln, while GMV is expected to reach $37.5-38.5 bln.
- Like-for-like GMV accelerated from Q2, rising 23% to $32.7 bln, driven by U.S. GMV up 43% LfL, Southern Europe up 73% LfL, and Sweden up 18% LfL. U.S. revenue increased 51% yr/yr.
- The Klarna Card launched in July and has continued to surge, with GMV up 92% yr/yr, more than 4 mln sign-ups, and accounting for 15% of global transactions, reflecting strong consumer appetite for debit-first flexibility and KLAR's scalability.
- Fair Financing, its longer-term installment product, posted rapid adoption with U.S. GMV up 244% yr/yr and global GMV up 139%. It is now available at 18% of merchants, up from 10% two years ago.
- KLAR noted that credit quality remains strong. Realized losses fell 1 bps to 0.44% of GMV, and Fair Financing delinquencies improved 5% yr/yr. The increase in provisions to 0.72% of GMV (0.56% in Q2) reflects the accelerating Fair Financing portfolio.
- Transaction margin dollars, which represent total revenue minus total transaction costs, fell yr/yr to $281 mln from $316 mln. KLAR said this lag was expected given product mix shifts, including the longer-term nature of Fair Financing. Even so, it is guiding TMD in Q4 to $390-400 mln as compounding revenue begins to flow through.
Briefing.com Analyst Insight
KLAR's debut report is drawing a negative market reaction largely because profitability moved in the wrong direction despite strong top-line momentum. Growth metrics were undeniably robust, with accelerating GMV, rapid adoption of Klarna Card and Fair Financing, and stable credit performance. The increase in credit provisions is tied to product mix and growth rather than worsening quality, which should help ease investor concern. TMD weakness may appear like a red flag at first glance, but management's Q4 outlook suggests this will begin reversing as Fair Financing revenue flows through. Ultimately, KLAR's challenge remains convincing investors that its scaling model and AI-driven efficiency gains can translate into sustainable profitability in a competitive BNPL landscape.
Home Depot falls short on EPS again as weak housing market, strained consumer stall demand (HD)
Home Depot (HD) delivered a disappointing Q3, falling short of EPS expectations for the third consecutive quarter, with a $0.10 per share miss marking its largest EPS miss in over five years. The home improvement retailer also lowered its FY26 EPS guidance, now forecasting a 5% decline (to $14.48), versus prior estimates of a 2% decline, contributing to a steep drop in the stock this morning.
- HD cited a notably quiet hurricane and storm season as a primary reason for the weak results, which negatively affected key categories such as roofing, plywood, and generators.
- Broader consumer pressures and a sluggish housing market also weighed on demand, especially for big-ticket renovation projects that typically rely on financing.
- HD acknowledged that an anticipated Q3 demand lift failed to materialize, though asserted underlying demand remained stable relative to last quarter.
- On a modestly positive note, HD posted a slight revenue beat for Q3 and edged its FY26 revenue growth outlook higher to about 3% compared with the previous 2.8% estimate.
- The company also essentially reaffirmed FY26 comp guidance, now projecting slightly positive comp sales versus the prior outlook of +1%.
- Q3 comps increased a modest 0.2%, slowing from Q2’s 1.0% gain. Customer transactions fell 1.4%, but the average ticket rose to $90.39 from $88.65 yr/yr, largely attributed to trade-up for higher-ticket innovative products and modest price increases.
- The company also highlighted ongoing strength in Pro-heavy categories like gypsum, insulation, and plumbing, along with continued growth in digital sales, which rose 11% yr/yr.
- Commentary suggested that persistent housing market stagnation - currently at 40-year lows for turnover - plus continued consumer uncertainty around affordability and job security, are disproportionately damping home improvement demand.
- HD also leaned into its investments and recent GMS acquisition, which contributed approximately $900 mln to Q3 sales, and expects the acquisition to add $2 bln in fY26, but operating margin guidance was trimmed.
Briefing.com Analyst Insight:
HD’s results reinforce persistent housing and consumer headwinds across the home improvement sector. Q3’s EPS miss and downside FY EPS guidance lower the bar for rival Lowe’s (LOW), due to report results tomorrow. While management continues to push market share gains and invest in Pro ecosystem and digital initiatives, macro pressures appear entrenched -- investors should not expect a sharp turnaround until there is a genuine pickup in housing activity or renewed consumer strength. Near-term valuation looks less compelling as earnings visibility remains clouded by economic uncertainty and lack of cyclical catalysts.
XPeng loses its charge as soft Q4 guidance has shares speeding in reverse (XPEV)
XPeng (XPEV) provided strong upside results for 3Q25, driven by a 149.3%?yr/yr surge in deliveries to 116,007 vehicles. However, the company’s Q4 revenue guidance of RMB?21.5?-RMB?23.0?bln and expected vehicle volumes of 125,000-132,000 fell short of the FactSet Consensus estimates, sparking a sharp selloff in the stock.
- Q3 revenue rose to RMB?20.38?bln, up 101.8%?yr/yr, driven by strong volume growth from newly launched models.
- Deliveries of 116,007 units, up 149.3%?yr/yr and 12.4%?qtr/qtr, set a new record for the company.
- Vehicle gross margin contracted qtr/qtr to 13.1% from 14.3% in Q2, although it remains up yr/yr.
- SG&A expenses increased sharply by 33%, reflecting higher marketing and franchise commission costs. As a result, XPEV remained unprofitable with a non-GAAP net loss of RMB?(150)?mln, although that compares favorably to the loss of RMB?(1.53)?bln a year earlier.
- XPEV's weak guidance reflects rising competition in China’s EV market, especially in the mass-market segment, and margin pressure from new model launches.
- XPEV recently launched its mass-market model Mona M03 and is also ramping up investment in longer-term bets like flying-car concepts and humanoid robots, which may weigh investor sentiment.
Briefing.com Analyst Insight:
While XPEV delivered an impressive volume breakout in Q3, the margin squeeze and low-end pivot raise concerns about profitability going forward. The strong delivery growth vindicates XPEV’s product ramp, but the contraction in vehicle margin and big SG&A increase suggest cost pressures are mounting. The softer Q4 guidance underscores the intensifying competition in China’s EV market and questions around whether XPEV can sustain this growth while improving profitability. The rollout of the Mona M03 signals XPEV’s ambition to penetrate the mass-market segment, but such a move may compress margins further unless scale and cost efficiency follow quickly. Meanwhile, the company’s ambitious investments in flying cars and humanoid robots are exciting long-term propositions, yet they also represent a drag on near-term cash flow and may dilute management focus. XPEV appears to be in a transition phase: strong growth momentum, yet not yet delivered consistent earnings, and faces a tougher competitive environment ahead. Until we see evidence of margin recovery and sustained profitability, the valuation remains linked more to execution risk than to expansion potential alone.
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