Market Snapshot
| Dow | 46225.79 | +473.74 | (1.04%) | | Nasdaq | 22305.12 | +227.05 | (1.03%) | | SP 500 | 6605.55 | +66.80 | (1.02%) | | 10-yr Note |
|
|
|
| | NYSE | Adv 2165 | Dec 529 | Vol 675.39 mln | | Nasdaq | Adv 3263 | Dec 1151 | Vol 8.27 bln |
Industry Watch
| Strong: Communication Services, Health Care, Consumer Discretionary, Real Estate, Consumer Staples, Industrials, Financials |
| | Weak: -- |
Moving the Market
--December rate-cut odds reinvigorated following dovish commentary from New York Fed President John Williams (voting FOMC member)
--Broad-based advance pushes major averages higher following mixed strength this morning
|
Volatiliy eases into week's close
21-Nov-25 15:35 ET
Dow +473.74 at 46225.79, Nasdaq +227.05 at 22305.12, S&P +66.80 at 6605.55
[BRIEFING.COM] The stock market is closing in on solid gains to end what has been a tumultuous week for equities.
The major averages currently hold gains wider than 1.0% as all eleven S&P 500 sectors trade in positive territory.
The CBOE Volatility Index is down 12.2% to 23.20, suggesting that some of the defensive positioning that defined the earlier part of the week is easing as sentiment stabilizes into the close.
NVIDIA holds slight gain after China headlines
21-Nov-25 15:05 ET
Dow +682.58 at 46434.63, Nasdaq +326.74 at 22404.81, S&P +95.01 at 6633.76
[BRIEFING.COM] The S&P 500 (+1.6%), Nasdaq Composite (+1.5%), and DJIA (+1.4%) sit a touch off of session highs as the market enters the final hour of the session.
NVIDIA (NVDA 181.08, +0.44, +0.24%) shares traded higher in the early afternoon following a Bloomberg report that the Trump administration is considering allowing the company to sell its H200 chips to China. The stock is up just modestly for the day, though it is significantly improved from morning lows that saw shares fall over 4.0%.
S&P 500 jumps as ODFL, ALGN, IT lead rebound; Vistra lags despite quiet news
21-Nov-25 14:30 ET
Dow +786.97 at 46539.02, Nasdaq +432.01 at 22510.08, S&P +117.09 at 6655.84
[BRIEFING.COM] The S&P 500 (1.79%) is in second place on Friday afternoon, up about 117 points.
Briefly, S&P 500 constituents Old Dominion (ODFL 136.47, +10.18, +8.06%), Align Tech (ALGN 142.83, +10.02, +7.54%), and Gartner (IT 238.11, +13.98, +6.24%) pepper the top of the standings, bucking their recent trends lower as the broader market, too, gets a breather from its recent declines.
Meanwhile, utility firm Vistra Corp. (VST 169.57, -4.22, -2.43%) is near the bottom of the average despite a dearth of corporate news, slipping alongside a modest dip in treasury yields.
Gold rises on dovish Fed signals, but still ends the week lower amid a firmer dollar
21-Nov-25 14:00 ET
Dow +747.51 at 46499.56, Nasdaq +344.11 at 22422.18, S&P +101.27 at 6640.02
[BRIEFING.COM] The Nasdaq Composite (+1.56%) is in second place on Friday afternoon, having followed a broader march to HoDs in recent trading.
Gold futures settled $19.50 higher (+0.5%) at $4,079.50/oz, as softer U.S. data and dovish Fed commentary revived hopes for a near-term rate cut, prompting some bargain-hunting and haven demand. But the metal still finished the week slightly lower as a firmer dollar and steadier labor readings kept traders cautious about how quickly easing might actually arrive.
Meanwhile, the U.S. Dollar Index is up less than +0.1% to $100.26.
Dow jumps 485 points as Merck, Home Depot lead; Walmart lags, index still on track for weekly loss
21-Nov-25 13:30 ET
Dow +485.61 at 46237.66, Nasdaq +121.39 at 22199.46, S&P +52.55 at 6591.30
[BRIEFING.COM] The Dow Jones Industrial Average (+1.06%) is in first place on Friday afternoon, up more than 485 points.
A look inside the DJIA shows that Merck (MRK 99.38, +4.41, +4.64%), Home Depot (HD 344.43, +12.05, +3.63%), and Sherwin-Williams (SHW 339.49, +11.48, +3.50%) are some of today's best performers.
Meanwhile, Walmart (WMT 105.32, -1.79, -1.67%) slides to the bottom of the average.
The DJIA is poised to end the week -1.93% lower.
Elsewhere, at the top of the hour, Baker Hughes (BKR 48.94, +0.87, +1.81%) announced a weekly U.S. rotary rig count of 554, +5 w/w and -29 yr/yr.
Gap Fashions a Strong Q3 with Accelerating Comps and Guidance Raise (GAP)
Gap (GAP) is trading sharply higher after reporting its Q3 (Oct) results last night. It beat EPS expectations, while revenue accelerated, increasing 3% yr/yr to $3.9 bln, in line with expectations. It also raised FY26 revenue guidance to $15.36-15.40 bln from $15.24-15.39 bln, which was above expectations.
- Comp sales accelerated to +5% from +1% in Q2, marking its best quarterly comp in over four years and the seventh straight quarter of comp growth.
- By brand, Gap led with comps +7% (+4% in Q2), Old Navy followed at +6% (+2% in Q2), and Banana Republic delivered +4% (+4% in Q2). Athleta remains a laggard with comps -11%, down from -9% in Q2.
- Gross margin declined 30 bps to 42.4% as tariffs weighed on profitability, but results were still better than expected. Lower discounting supported AUR growth, while operating margin of 8.5% fell 80 bps, including an estimated 190 bps tariff headwind, which implies roughly 110 bps of underlying margin expansion.
- The back-to-school season was strong, and management noted a positive early read on holiday trends, supported by trend-right assortments and refreshed marketing. Furthermore, it expects tariff pressure to remain similar in Q4, but mitigation efforts should begin to offset the impact as the company moves into the new year.
Briefing.com Analyst Insight
GAP's Q3 results showcased broad-based strength across its three largest brands, driving its best comp performance in over four years. Old Navy was a standout this quarter, with management noting that its value-focused assortments resonated across all income cohorts, underscoring continued consumer demand for accessible price points in an uneven macro environment. Athleta remains the key drag as the brand undergoes a broader strategic reset under new leadership. Management cautioned that the turnaround will take time, with early efforts centered on reestablishing Athleta's premium positioning, making it a watch point in the quarters ahead. With that said, raised guidance, improving tariff mitigation, and solid early holiday momentum suggest GAP is heading into the new year on stronger footing.
Elastic stretching lower as cautious FY26 outlook overshadows strong Q2 performance (ESTC)
Elastic (ESTC) reported a strong 2Q26 with better-than-expected EPS and revenue, driven by substantial AI momentum and robust sales-led subscription growth, but shares sold off due to cautious FY26 guidance that aligns closely with consensus, implying potential second-half pressures.
- ESTC exceeded raised Q2 revenue guidance delivered on October 9, reporting revenue of $423 mln (up 16% yr/yr) and surpassed reaffirmed EPS of $0.56-$0.58 with EPS of $0.64.
- Sales-led subscription revenue grew 18% in reported terms (17% cc), reflecting strong commitments and consumption across cloud and self-managed.
- Elastic Cloud revenue growth moderated slightly to 22% yr/yr, down from 24% in the prior quarter and 23% in 4Q25.
- The company highlighted strong AI adoption with more than 2,450 customers using Elastic Cloud for GenAI applications, including 370 with annual contract values (ACV) above $100,000.
- Sales pipeline strength and visibility remain high, with about 80% of total business in the sales-led subscription model, and GenAI contributing about five points to overall growth on a 15% base outlook.
- ESTC secured several large enterprise deals over $10 mln TCV and achieved notable wins in security, observability, and AI areas, including a $26 mln contract with the U.S. Cybersecurity and Infrastructure Security Agency.
- The company continues to invest heavily in AI and vector search capabilities, unveiling new AI features and the Agent Builder product, aimed at simplifying AI agent creation and enhancing platform relevance.
- Q3 guidance anticipates revenue of $437-$439 mln (about 15% growth midpoint) and EPS in the range $0.63-$0.65.
- FY26 revenue guidance has been raised to $1.715-$1.721 bln (about 16% growth midpoint) with non-GAAP EPS guidance of $2.40-$2.46, backed by strong deal momentum and sales execution.
Briefing.com Analyst Insight:
Despite top-line strength, ESTC shares reacted negatively due to guidance implying 2H26 may not outperform consensus, keeping some caution amid competitive and macroeconomic uncertainties. The company's strong AI-driven capabilities, together with its open-source architecture and strategic partnerships, position it uniquely to capture market share in the growing AI infrastructure sector while maintaining cost efficiency advantages over competitors. This focus should enable ESTC to sustain its growth momentum and expand its footprint in enterprise AI solutions despite ongoing competitive pressures and macroeconomic risks.
Ross Stores Sharp Q3 Acceleration and Improved Holiday Outlook Highlight Off-Price Momentum (ROST)
Ross Stores (ROST) is moving higher today, reaching a new all-time high, after reporting its Q3 (Oct) results last night. It comfortably beat EPS expectations, its largest beat in seven quarters, while revenue also came in above expectations, rising 10.4% to $5.6 bln, its strongest growth in seven quarters. Additionally, after providing Q4 guidance in the previous quarter, it raised its EPS outlook to $1.77-1.85 ($1.74-1.81 prior), comp sales to +3-4% from +2-3%, and expects sales growth of 6-8%, in line with expectations.
- Comps accelerated to +7% from +2% in Q2, well above the +2-3% guide, driven by both higher transactions and larger basket size.
- Strength was broad-based across regions and income cohorts, with cosmetics, shoes, and ladies leading the way. dd's DISCOUNTS also saw similar comps, and the home category showed a meaningful improvement from Q2.
- Expense control, including lower domestic freight, favorable occupancy costs, and less tariff-related processing pressure, helped lift operating margin to 11.6%, ahead of expectations. The tariff impact on Q3 EPS was $0.05, also better than expected.
- Management called out an exceptional back-to-school season, with momentum carrying into the holidays, supported by compelling branded assortments, ample closeout availability, and refreshed marketing that is boosting traffic and engagement.
Briefing.com Analyst Insight
This was an impressive quarter for ROST, highlighted by a sharp acceleration in comps to +7%, echoing the strong beat posted by peer TJX (TJX). Value offerings, refreshed marketing, and an exceptionally strong back-to-school season highlight how well Ross' assortments are resonating with consumers in a still-uneven macro environment. The tariff impact was better than expected in Q3 and is expected to be negligible in Q4, helping support profitability. With raised Q4 guidance for both comps and EPS and continued value-seeking consumer behavior, ROST is well positioned into holiday, and the strong results are helping drive the stock to new all-time highs.
Intuit posts strong Q1 beat, powered by AI-driven platform and broad-based momentum (INTU)
Intuit (INTU) delivered a strong 1Q26, easily surpassing FactSet consensus estimates for EPS and revenue, with the smallest revenue quarter boosted by broad-based strength and advanced AI-driven platform enhancements. The focus now shifts to its mixed Q2 outlook and reaffirmed FY26 guidance, which reflect momentum across the business, but also increased investments and impacts from expense timing.
- Global Business Solutions Group (GBSG) posted 18% revenue growth to $3.0 bln, driven by strong growth in QuickBooks Online accounting (up 25% due to pricing, customer growth, mix shift).
- Online Ecosystem revenue grew 21% to $2.4 bln, driven by payments, capital, bill pay, and payroll service adoption with total online payments volume up 29%, boosting retention and monetization.
- Consumer segment revenue increased 21% to $894 mln, supported by Credit Karma’s 27% growth to $651 mln.
- Credit Karma gained market share in personal loans (+13 points), credit cards (+10 points), and auto insurance (+3 points), reflecting stronger engagement and improved member originations.
- Credit Karma’s turnaround is credited to TurboTax integration, innovative AI assistants (Debt Assistant, Refund Assistant), and partnerships that enable personalized financial product matching.
- AI advancements, including Accounting Agent (saves customers up to 12 hours/month), Payments Agent (enables payments 5 days faster), and Payroll and Sales Tax agents that automate tasks and compliance, are resonating with customers.
- INTU's partnership with OpenAI integrates the company's apps into ChatGPT, enabling personalized financial advice powered by INTU’s proprietary AI in a secure manner.
- Q2 guidance shows mixed signals: EPS of $3.63–$3.68 (below expectations) and revenue of $4.52–$4.56 billion (above expectations). FY26 guidance was reaffirmed at EPS of $22.98-$23.18, revenue of $20.99-$21.19 bln.
Briefing.com Analyst Insight:
With Q1 typically the lowest revenue period, INTU’s beat and robust platform execution showcase the durability of its offerings and sustained innovation. However, Q2’s EPS guide below consensus creates near-term uncertainty, keeping investor focus on FY26 segment and company-wide outlooks. AI advancements, platform consolidation, and the Credit Karma rebound are pivotal narratives as INTU navigates ongoing tech sector volatility and positions for accelerated growth.
Abott Labs intensifies cancer diagnostics push with $21 bln acquisition of Exact Sciences (ABT)
Abbott Labs (ABT) announced its acquisition of Exact Sciences (EXAS) for $105/share in cash, representing a 56% premium over the unaffected stock price from Tuesday (Bloomberg reported on a possible deal yesterday), and a $21 bln equity value, or about 5.7x next year's sales. This deal marks ABT's entry into the cancer diagnostics market, leveraging EXAS’s leading products like Cologuard and Oncotype DX, which have shown strong growth, including a 22% rise in screening revenue in EXAS's recent Q3 results.
- Strategically, the deal doubles ABT’s diagnostics total addressable market (TAM) from $60 bln to over $120 bln, positioning it for leadership in personalized, preventative cancer diagnostics.
- EXAS brings a strong product portfolio, scale, innovation culture, and a rich pipeline across cancer screening, therapy selection, and monitoring.
- ABT’s diagnostics growth has faced headwinds from declining COVID-19 testing, with Q3 organic Diagnostics revenue down nearly 8% and COVID-19 testing sales plunging 74%.
- Post-acquisition, ABT’s total diagnostics sales will exceed $12 bln annually, with the deal expected to add 50 bps to total sales growth and 300 bps to diagnostics segment growth.
- The acquisition is expected to be dilutive to adjusted EPS in the first two years (estimated 0.20 in 2026, 0.16 in 2027) but accretive thereafter.
- ABT expects at least $100 mln in annual pre-tax synergies by 2028 to help finance the transaction.
- Gross margins are projected to expand by approximately 100 bps company-wide and 700 bps within diagnostics.
- ABT’s disciplined capital strategy maintains dividend growth and plans to reduce debt over time after the acquisition.
Briefing.com Analyst Insight:
ABT’s acquisition of EXAS strategically rejuvenates its diagnostics growth with a high-potential entry into cancer diagnostics. Despite the premium valuation, favorable growth and margin accretion, along with meaningful synergies and a powerful product pipeline, support a compelling long-term outlook. Execution of integration and expansion into international markets will be pivotal in maximizing the acquisition’s value and positioning ABT as a diversified leader in next-generation diagnostics.
|
