Market Snapshot
| Dow | 47426.91 | +314.67 | (0.67%) | | Nasdaq | 23214.72 | +189.10 | (0.82%) | | SP 500 | 6812.60 | +46.73 | (0.69%) | | 10-yr Note |
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| | NYSE | Adv 1962 | Dec 780 | Vol 1.17 bln | | Nasdaq | Adv 3138 | Dec 1514 | Vol 7.33 bln |
Industry Watch
| Strong: Information Technology, Utilities, Materials, Consumer Staples, Financials, Materials, |
| | Weak: Communication Services, Health Care |
Moving the Market
--Stocks continue to see broad strength following boosted December rate-cut odds
--Initial jobless claims remain far from levels typically seen ahead of a recession
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Stocks advance amid sleepy pre-holiday session
26-Nov-25 16:25 ET
Dow +314.67 at 47426.91, Nasdaq +189.10 at 23214.72, S&P +46.73 at 6812.60
[BRIEFING.COM] The stock market had a largely uneventful session a day before the Thanksgiving holiday, but recently renewed hopes of a December rate cut left stocks with room to run, sending the major averages higher despite a lack of intraday catalysts. The S&P 500 (+0.7%), Nasdaq Composite (+0.8%), and DJIA (+0.7%) finished a touch off of session highs, moving the S&P 500 and DJIA within 0.5% of their unchanged month-to-date levels.
Stocks advanced in broad fashion, much like recent sessions, but added support came from strong leadership in the top-weighted information technology sector (+1.6%).
The sector's chipmaker components rebounded from some weakness yesterday that followed reports that Alphabet (GOOG 320.28, -3.36, -1.04%) is looking to challenge NVIDIA (NVDA 180.26, +2.44, +1.37%) in the AI chip space. NVDA brushed off the report yesterday, claiming their GPUs remain "a generation ahead" of the competition.
NVIDIA reclaimed about half of yesterday's retreat, and the PHLX Semiconductor Index posted a solid 2.8% gain.
Elsewhere in the technology sector, Dell (DELL 133.26, +7.34, +5.83%) was one of the top-performing S&P 500 names after posting its widest earnings beat in three quarters.
Nine total S&P 500 sectors finished the session with gains amid another day of strong participation, with advancers outpacing decliners by a roughly 5-to-2 ratio on the NYSE and a roughly 5-to-3 clip on the Nasdaq.
Only the communication services sector (-0.5%), which faced some profit-taking in Alphabet, and the health care sector (-0.3%), which has been on a nearly double-digit run this month, closed lower.
Outside of the S&P 500, the Russell 2000 (+0.9%) and S&P Mid Cap 400 (+0.7%) captured similar gains to that of their larger counterparts.
Ultimately, today's action furthered the market's rebound efforts from what has up until recently been a lackluster month. Elevated rate cut expectations continue to push stocks forward in broad fashion, while solid performances across tech, and in particular, chipmaker names, give some credence to the notion that the AI trade may be recovering from some recent weakness.
The market will be closed tomorrow in observance of the Thanksgiving holiday, and Friday's session will be abbreviated, with the market closing at 1:00 PM ET.
U.S. Treasuries had a mixed showing ahead of tomorrow's Thanksgiving closure. The 2-year note yield settled up two basis points to 3.48%, and the 10-year note yield finished unchanged at 4.00%.
Reviewing today's data:
- Initial jobless claims for the week ending November 22 decreased by 6,000 to 216,000 (Briefing.com consensus: 225,000). That is the lowest level of initial claims since April. Continuing jobless claims for the week ending November 15 increased by 7,000 to 1.960 million.
- The key takeaway from the report is that initial claims filings are nowhere close to a recession-type level and continue to reflect a generally low-firing environment.
- Durable goods orders increased 0.5% month-over-month in September (Briefing.com consensus: 0.3%) following an upwardly revised 3.0% increase (from 2.9%) in August. Excluding transportation, durable goods orders rose 0.6% (Briefing.com consensus: 0.2%) following an upwardly revised 0.5% increase (from 0.4%) in August.
- The key takeaway from the report is that business spending, viewed through the lens of nondefense capital goods orders excluding aircraft (+0.9%), showed no signs of slowing, keeping pace with the 0.9% increase seen in August and exceeding the 0.7% growth rate in July.
- The November Chicago PMI retracted to 36.3 (Briefing.com consensus 44.5) from a prior reading of 43.8.
- The MBA Mortgage Applications Index for the week ended November 22 increased 0.2%, from a prior decrease of 5.2%.
- The Fed's November Beige Book reported little overall change in activity since October. Two Districts saw modest softness while one saw modest growth. Consumer spending weakened but spending on higher-end items remained strong. There was no significant change in travel trends while Manufacturing increased slightly. There was some pressure on overall employment while prices rose moderately.
Major averages pad week-to-date gains
26-Nov-25 15:35 ET
Dow +388.23 at 47500.47, Nasdaq +230.84 at 23256.46, S&P +59.06 at 6824.93
[BRIEFING.COM] The major averages are little changed from previous levels as they look to close in on another solid advance this week.
Today's gains leave the S&P 500 down just 0.2% for the month of November and the DJIA just 0.1% off of its unchanged month-to-date level. The tech-heavy Nasdaq Composite remains 1.9% lower on the month, largely due to a 4.6% slide in the technology sector this month.
However, today's current 1.6% gain in the tech sector has helped the major averages pad their week-to-date gains and put more distance between their current standings and their 50-day moving averages.
Chipmakers continue to pace solid gains
26-Nov-25 15:05 ET
Dow +391.55 at 47503.79, Nasdaq +230.53 at 23256.15, S&P +59.77 at 6825.64
[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.0%), and DJIA (+0.8%) trade in a tight range near session highs with an hour left in today's action.
Chipmaker names continue to provide solid leadership, with the PHLX Semiconductor Index now up 3.3% for the day. NVIDIA (NVDA 180.20, +2.38, +1.34%) moves back into positive territory for the week with today's gain, while Advanced Micro Devices (AMD 215.01, +8.88, +4.31%) recaptures what it lost in yesterday's 4.2% slide.
Fed Beige Book Shows Economic Activity Flat, Consumer Spending Slows, Prices Rise Moderately
26-Nov-25 14:30 ET
Dow +408.54 at 47520.78, Nasdaq +215.32 at 23240.94, S&P +57.60 at 6823.47
[BRIEFING.COM] The broader market shook out little changed after the Fed released its November Beige Book at the bottom of the hour. The report showed that economic activity was little changed since the previous report, according to most of the twelve Federal Reserve Districts, though two Districts noted a modest decline and one reported modest growth. Overall consumer spending declined further, while higher-end retail spending remained resilient. Currently, the S&P 500 (+0.85%) is in last place, up 58 points.
Outlooks were largely unchanged overall. Some contacts noted an increased risk of slower activity in coming months, while some optimism was noted among manufacturers.
- Employment: Employment edged down as firms mostly managed labor needs through hiring limits, reduced hours, or AI-driven efficiency, while wage growth remained modest amid pockets of skilled labor shortages and rising health insurance costs.
- Prices: Prices rose moderately, driven by widespread input cost pressures from tariffs and other expenses, with varying pass-through to customers, some margin compression, and expectations that cost pressures will persist despite mixed plans for near-term price increases.
Currently, the yield on the benchmark 10-yr Treasury note is up less than a single basis point at 4.002%.
Gold rises $25 to $4,202 as Fed rate-cut bets lift demand; Nasdaq leads gains
26-Nov-25 14:00 ET
Dow +347.71 at 47459.95, Nasdaq +186.83 at 23212.45, S&P +52.68 at 6818.55
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.81%) is in first place on Wednesday afternoon, up about 186 points.
Gold futures settled $25.00 higher (+0.6%) at $4,202.30/oz, as traders leaned harder into expectations for a December Fed rate cut following softer U.S. data and continued dovish signals. The move was supported by firm longer-term demand sentiment, with fresh forecasts pointing to sustained central-bank and investor buying into 2026.
Meanwhile, the U.S. Dollar Index is down about -0.2% to $99.60.
Zscaler plunges lower as cautious FY26 ARR guidance clouds over robust Q1 results (ZS)
Zscaler (ZS) delivered a very strong 1Q26 print on almost every operating metric, but a conservative ARR outlook for the remainder of FY26 is overshadowing the upside and driving the sharp post-earnings sell-off. The tension between robust demand across its three growth pillars and a modestly higher full-year ARR guide is the central issue for the stock near term.
- Q1 revenue rose 25.5% yr/yr to $788.1 mln, and ARR increased 26% to $3.204 bln, both ahead of expectations, while non-GAAP EPS also comfortably topped consensus.
- RPO growth accelerated to 35% yr/yr to $5.9 bbln (from 31% last quarter) and cRPO grew 29%, underscoring strong demand and visibility despite a still-tight IT spending backdrop.
- Profitability remains a key differentiator. ZS operated at “Rule-of-78,” with 26% revenue growth and a 52% free cash flow margin, alongside 22% non-GAAP operating margin.
- The issue for the stock is guidance. FY26 ARR is now projected at $3.698-$3.718 bln (22.7–23.3% growth), only slightly above prior guidance and by less than the amount by which Q1 ARR exceeded forecasts at the midpoint.
- This implies management effectively used most of the Q1 ARR beat to de-risk the year, rather than re-basing expectations higher, which investors interpret as a sign of caution for the remaining three quarters.
- Importantly, the cautious ARR posture comes even as AI Security ARR has already exceeded the prior $400 mln FY26 target three quarters early and is now expected to surpass $500 mln by year-end.
- Data Security Everywhere ARR has accelerated to about $450 mln, and Zero Trust Everywhere has more than 450 enterprises, hitting its FY26 goal early and driving incremental demand for AI and data security.
- The Z-Flex commit-to-spend model (over $175 mln in Q1 TCV, up 70% qtr/qtr) is proving to be a powerful upsell and consolidation lever, pushing larger, multi-module platform deals.
- The Red Canary and SPLX acquisitions slightly exceeded internal expectations but remain immaterial to near-term revenue, serving instead as key strategic pieces that deepen ZS’s AI-powered SecOps and AI Security platforms.
Briefing.com Analyst Insight:
ZS’s quarter was fundamentally very strong, with accelerating RPO, robust growth across AI Security, Data Security Everywhere, and Zero Trust Everywhere, and elite free cash flow margins for a company at this scale. However, the modest step-up in FY26 ARR guidance - smaller than the Q1 ARR beat - introduces an asterisk to the print and explains the sharp share-price reaction, as a premium-multiple story is now paired with a more conservative growth outlook for the balance of the year. The key debate is whether this caution proves to be disciplined “under-promise and over-deliver” guidance or an early signal that sustaining mid-20s ARR growth will be incrementally tougher even with a powerful AI and Zero Trust product cycle underway.
Autodesk’s Q3 Beat and Upside Guide Fueled by AECO Strength and Rising AI-Driven Workflows (ADSK)
Autodesk (ADSK) is trading sharply higher after reporting its Q3 (Oct) results last night. The design software provider comfortably beat EPS and revenue expectations, with revenue increasing 18% yr/yr to $1.85 bln, its strongest growth rate in over 3 years. The company also issued upside Q4 guidance, expecting EPS of $2.59-2.67 and revenue of $1.901-1.917 bln, and raised its annual billings guidance to $7.465-7.525 bln from $7.355-7.445, reflecting continued momentum as accelerating AECO activity, rising cloud adoption, and deeper enterprise engagement continue to drive durable growth.
- Strength was broad-based across its three largest segments. AECO was up 23% yr/yr to $921 mln, AutoCAD and AutoCAD LT increased 15% yr/yr to $458 mln, and Manufacturing grew 16% yr/yr to $355 mln.
- Billings, a key forward-looking indicator, increased 21% yr/yr to $1.855 bln. While growth moderated from Q2's 36% pace, the call emphasized that underlying demand remains healthy, with strong renewal activity, continued expansion across enterprise accounts, and improving linearity through the quarter.
- Autodesk continues to see elevated demand from AI-driven data center construction, public infrastructure projects, and industrial facility build-outs, areas that more than offset ongoing softness in commercial.
- Faster adoption of Construction Cloud, broader Fusion usage, and increased reliance on AI tools like Sketch AutoConstrain, are boosting customer productivity and fueling stronger engagement and attach rates.
Briefing.com Analyst Insight
Autodesk's Q3 update underscored resilient demand drivers, particularly in AECO where data center expansion, infrastructure spending, and industrial building activity continue to support growth. Manufacturing also showed steady strength, helped by broader Fusion adoption and customers shifting more design and simulation workflows onto Autodesk's cloud platform. Billings growth moderated but remained healthy, consistent with solid renewal activity and expanding enterprise usage. Management characterized the macro backdrop as broadly stable but noted that overall uncertainty remains elevated. Separately, Autodesk is still working through its sales and marketing optimization efforts, which could introduce some operational noise. Even so, momentum in Construction Cloud, rising Fusion attach rates, and deeper use of AI-driven design tools point to improving engagement and a more embedded position within customer workflows. Taken together, the mix of broad-based growth, resilient subscription trends, and strengthening platform adoption supports a constructive setup as it gears up for the new year.
Dell Goes Full Throttle on AI Servers: Q4 Guide Powers Up the Stock (DELL)
Dell (DELL) is trading higher after posting Q3 (Oct) results that delivered its largest EPS beat in three quarters. While revenue rose 10.8% yr/yr to $27.01 bln, it came in slightly below expectations. What overshadowed the modest top-line miss, however, was Dell's huge Q4 (Jan) EPS and revenue guidance, with revenue projected at $31--32 bln, far above consensus and the clear driver of today's strong stock reaction.
- Infrastructure Solutions Group (ISG): $14.1 bln, up 24% yr/yr, marking 7 consecutive quarters of double-digit growth and setting a new record. Server & Networking revenue: $10.1 bln, up 37% yr/yr, also a record. Dell noted that AI momentum accelerated sharply in the second half, on top of an already strong first half.
- AI Server Performance: AI server orders in Q3: $12.3 bln; YTD orders: $30 bln — both record levels. Demand broadened across neoclouds (Tier 2 CSPs) and sovereign customers. AI server shipments: $5.6 bln in Q3 $15.6 bln YTD. Q4 forecast: Dell expects to ship $9.4 bln of AI servers — a record — bringing full-year shipments to ~$25 bln, up 150%+ yr/yr.
- Dell's infrastructure business is proving to be one of the strongest AI beneficiaries outside the hyperscalers. Momentum in servers — especially AI-optimized systems — shows Dell is increasingly on the shortlist for enterprises, "neoclouds," and sovereign buyers that want alternatives to the big three CSPs.
- Dell's AI pipeline is not only large — it is diversifying. That's important because it reduces dependency on a few megaclients and makes the revenue stream more durable.
- Client Solutions Group (CSG): Commercial revenue: $10.62 bln, up 5% yr/yr. Consumer revenue: $1.86 bln, down 7% yr/yr, though demand is improving as Dell refocuses its positioning. SMB demand remained strong. The PC refresh cycle remains intact, supported by an aging installed base and the shift toward Windows 11 upgrades.
Briefing.com Analyst Insight
Dell delivered the type of Q4 guidance that forces investors to recalibrate their expectations upward, particularly around AI infrastructure. While Q3 revenue was a touch light, the magnitude of AI server orders, backlog, and shipment forecasts makes the shortfall mostly irrelevant. The company is clearly emerging as a major beneficiary of the second wave of AI build-outs — especially across neoclouds and sovereigns, where demand is broadening beyond the hyperscalers. Still, investors should be mindful that AI cycles can be lumpy, and Dell's storage business remains a soft spot. The PC refresh cycle helps provide balance, but the long-term story remains heavily tied to sustaining AI momentum.
Workday shares slump despite another EPS beat as Q4 outlook fails to impress (WDAY)
Workday (WDAY) delivered another EPS beat in 3Q26 - its 14th straight - but revenue growth of nearly 13% and in-line Q4 subscription guidance failed to excite investors. Shares sold off as the outlook offered little upside and higher-education softness tied to federal funding pressured near-term subscription growth.
- Subscription revenue grew 15% yr/yr to $2.244 bln, while cRPO increased 17.6% to $8.21 bln, up over $100 mln sequentially and slightly above expectations excluding M&A.
- AI adoption continued to build: over 75% of net-new deals included an AI product, helping drive 1.5 points of ARR growth. Customers executed more than 1 bln AI actions on WDAY this year.
- Paradox, Sana, and Pipedream are accelerating WDAY’s AI roadmap, boosting cRPO, expanding cross-sell, and creating new entry points into non-Workday environments. Paradox contributed revenue within weeks of closing.
- Higher-education softness tied to federal funding created isolated pressure on subscription growth, though WDAY noted strong long-term win rates.
- Backlog and retention remain solid. Total subscription backlog rose 17% yr/yr to $25.96 bln with 97% gross revenue retention.
Briefing.com Analyst Insight:
WDAY delivered another clean EPS beat, but investors were disappointed by revenue and guidance that merely met expectations rather than exceeded them. The underlying fundamentals - steady subscription growth, strong cRPO, and rising AI contribution - remain intact, but the company hasn’t yet shown the revenue acceleration some expected from its expanding AI portfolio. Early traction from Paradox and Sana is promising, especially given their impact on ARR and cross-sell, but it will take a few more quarters to determine whether AI can materially lift WDAY’s organic growth rate. Until then, the stock may struggle to regain momentum without clearer signs of an upswing in subscription growth or a broader demand tailwind.
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