Market Snapshot
| Dow | 47562.66 | +40.75 | (0.09%) | | Nasdaq | 23724.98 | +143.81 | (0.61%) | | SP 500 | 6840.19 | +17.86 | (0.26%) | | 10-yr Note |
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| | NYSE | Adv 1587 | Dec 1175 | Vol 1.46 bln | | Nasdaq | Adv 2742 | Dec 1929 | Vol 11.01 bln |
Industry Watch
| Strong: Consumer Discretionary, Energy, Financials, Industrials, Real Estate |
| | Weak: Materials, Consumer Staples, Utilities, Communication Services, Information Technology, Health Care |
Moving the Market
Amazon (AMZN) surges higher after earnings report
Mega-cap names mixed, broader market moving lower
Cooling expectations for another rate cut in December
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Amazon's record run caps strong week
31-Oct-25 16:35 ET
Dow +40.75 at 47562.66, Nasdaq +143.81 at 23724.98, S&P +17.86 at 6840.19
[BRIEFING.COM] The stock market finished its record-setting week on a higher note as Amazon (AMZN 244.22, +21.36, +9.58%) soared past all-time highs while the broader market overcame some intraday sluggishness, ultimately helping the major averages close well off their session lows.
Gains in Amazon and other mega-cap names saw the Nasdaq Composite (+0.6%) advance the furthest, while the S&P 500 (+0.3%) and DJIA (+0.1%) captured more modest gains.
Amazon rallied after besting earnings expectations yesterday afternoon, with investors particularly enthused by a 20% acceleration in AWS sales growth. Tesley Advisory Group raised its target for the stock to $300 from $265, while Pivotal Research Group raised its target to $300 from $285.
The consumer discretionary sector (+4.1%) was the epicenter of mega-cap strength today, as Tesla (TSLA 456.56, +16.46, +3.74%) also mounted a solid advance.
While an earnings beat from Apple (AAPL 270.37, -1.03, -0.38%) left investors hoping for another full-blown mega-cap rally, the stock, along with the broader information technology sector (-0.3%), faced some choppiness throughout the day, ultimately finishing modestly lower.
NVIDIA (NVDA 202.49, -0.40, -0.20%) also faced a slight retreat, though the PHLX Semiconductor Index (+0.2%) closed with a gain.
First Solar (FSLR 266.94, +33.36, +14.28%) and Western Digital (WDC 150.21, +12.08, +8.75%) were among the best-performing S&P 500 names after reporting their earnings.
Meanwhile, the communication services sector (-0.3%) also faced a loss as Meta Platforms (META 648.35, -18.12, -2.72%) lagged while Alphabet (GOOG 281.82, -0.08, -0.03%) finished flattish. Netflix (NFLX 1118.86, +29.86, +2.74%) captured a nice gain after announcing a 10-for-1 stock split this morning.
Ultimately, the Vanguard Mega Cap Growth ETF finished 0.3% higher. The S&P 500 Equal Weighted Index (+0.2%) performed similarly to the market-weighted S&P 500 (+0.3%).
Advancers outpaced decliners by a roughly 4-to-3 ratio on the NYSE and a roughly 7-to-5 pace on the Nasdaq after three consecutive days of negative breadth.
Five S&P 500 sectors finished with gains, though outside of the communication services sector (+4.1%), they were relatively modest.
The energy sector (+0.6%) was the only other sector to close with a gain wider than 0.5%, supported by crude oil futures settling today's session $0.39 higher (+0.6%) at $60.95 per barrel. Chevron (CVX 157.64, +4.11, +2.68%) advanced after beating earnings expectations, while Exxon Mobil (XOM 114.36, -0.34, -0.29%) faced a slight retreat after its earnings report.
Losses were also relatively modest today, as only the materials (-0.9%) and utilities (-0.8%) sectors finished more than 0.5% lower.
Outside of the S&P 500, the small-cap Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.6%) outperformed.
On the macro front, the market's expectations for further easing from the Fed this year were dampened by commentary from a handful of officials.
Kansas City Fed President Jeffrey Schmid (voting FOMC member) said his decision to oppose this week's 25-basis-point rate cut stemmed from inflation remaining above target and market conditions that he viewed as still strong. Dallas Fed President Lorie Logan, who will be a voting member in 2026, echoed similar concerns regarding the October decision and added, "I find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labor market will cool more rapidly."
The CME FedWatch tool now assigns a 65.0% probability of at least a 25-basis point rate cut in December, down from 72.8% yesterday and 95.8% one week ago.
Despite the softer rate-cut expectations, Amazon's surge to record highs was enough to warrant a solid ending to a strong week of mega-cap leadership. With mega-cap earnings now in the rearview, the market's largest names are largely in record territory as the AI investment cycle booms, though the broader market has some catching up to do.
U.S. Treasuries had a quiet finish to October, with yields finishing the month at levels last seen three weeks ago. The 2-year note yield finished unchanged at 3.61% (+13 basis points this week, +1 basis point in October), and the 10-year note yield settled up one basis point to 4.10% (+10 basis points this week, -5 basis points in October).
- Nasdaq Composite: +22.9% YTD
- S&P 500: + 16.3% YTD
- DJIA: +11.8% YTD
- Russell 2000: +11.2% YTD
- S&P Mid Cap 400: +4.0% YTD
Reviewing today's data:
- The Chicago PMI hit 43.8 in October (Briefing.com consensus 42.0), up from 40.6 in September.
Major averages moving higher just before the close
31-Oct-25 15:35 ET
Dow +172.35 at 47694.26, Nasdaq +239.52 at 23820.69, S&P +43.80 at 6866.13
[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.9%), and DJIA (+0.3%) are on an upward trajectory as the market enters the final half hour of the session.
Apple (AAPL 272.13, +0.73, +0.27%) returns to positive territory, helping lift the information technology sector (+0.3%) back above its flat line late in the session.
While Amazon's (AMZN 246.89, +24.03, +10.78%) impressive move did not materialize into a full-blown mega-cap rally, enough of the market's largest names captured modest gains to keep the major averages on track for a strong ending to a record-setting week.
Energy sector moves higher
31-Oct-25 15:05 ET
Dow +71.42 at 47593.33, Nasdaq +157.09 at 23738.26, S&P +24.55 at 6846.88
[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.6%), and DJIA (+0.1%) hold modest gains following a slight uptick in sector strength.
Five S&P 500 sectors hold gains for the day, with three of those among the five sectors currently set to close the week in positive territory.
The energy sector is a member of both groups, supported by crude oil futures settling today's session $0.39 higher (+0.6%) at $60.95 per barrel.
Chevron (CVX 158.82, +5.30, +3.45%) is the sector's best performer after topping earnings estimates, while Exxon Mobil (XOM 114.65, -0.04, -0.03%) is flat after beating EPS estimates, missing on revenues, and raising its dividend.
S&P 500 gains led by Robinhood, Church & Dwight, and GoDaddy; Dexcom sinks on weak revenue results
31-Oct-25 14:25 ET
Dow +45.33 at 47567.24, Nasdaq +169.88 at 23751.05, S&P +22.59 at 6844.92
[BRIEFING.COM] The S&P 500 (+0.33%) is in second place on Friday afternoon, up about 23 points.
Briefly, S&P 500 constituents Robinhood (HOOD 147.17, +9.10, +6.59%), Church & Dwight (CHD 86.82, +5.02, +6.14%), and GoDaddy (GDDY 132.35, +5.61, +4.43%) dot the top of the standings. CHD and GDDY rise following earnings, while HOOD moves higher after a target increase at KeyBanc.
Meanwhile, Dexcom (DXCM 59.49, -8.71, -12.77%) is today's worst laggard after posting a steep Q3 revenue miss that overshadowed an EPS beat and largely in-line FY25 guidance, fueling concerns about slowing growth momentum.
Gold falls below $4,000 as stronger dollar and diminished Fed cut hopes weigh on safe-haven demand
31-Oct-25 14:00 ET
Dow -77.20 at 47444.71, Nasdaq +129.85 at 23711.02, S&P +8.86 at 6831.19
[BRIEFING.COM] With about two hours to go on the week the tech-heavy Nasdaq Composite (+0.55%) is up about 130 points.
Gold futures settled $19.40 lower (-0.5%) at $3,996.50/oz, capping a -3.4% weekly decline as a firmer U.S. dollar and reduced expectations for another Fed rate cut in December weighed on the metal. Easing U.S./China tensions and fund outflows further pressured safe-haven demand, pushing prices below the $4,000 level.
Meanwhile, the U.S. Dollar Index is up about +0.3% to $99.80.
Zillow Rent’s Due—and Paying Off: Zillow Builds Momentum with Surging Multifamily Growth (ZG)
Zillow (ZG) is trading higher after delivering a solid Q3 report, featuring modest EPS upside and stronger-than-expected revenue growth. Q3 revenue climbed 16.4% yr/yr to $676 mln, above prior guidance of $663-673 mln. Adjusted EBITDA rose 30% yr/yr to $165 mln, exceeding guidance of $150-160 mln, and showing improved momentum from Q2's +22% growth. Q4 revenue guidance of $645-655 mln came in roughly in line with expectations.
- For Sale segment revenue rose 10% yr/yr to $488 mln, led by a 36% jump in Mortgages to $53 mln as financing activity modestly recovered.
- Rentals remained the standout, with revenue up 41% yr/yr to $174 mln, powered by a 62% surge in multifamily revenue.
- Zillow Rentals averaged 2.5 mln monthly active listings in Q3, including 69,000 multifamily properties, nearly double the 35,000 listed two years ago. The company sees significant runway ahead, with roughly 140,000 multifamily properties nationwide still untapped.
Zillow characterized the housing market as "bouncing along the bottom," but emphasized that it continues to outperform the broader real estate industry. The company's strategy has evolved well beyond simple home search—Zillow is now positioning itself as a diversified, transaction-focused platform connecting users through the full housing journey: from discovery and touring to agent matching and financing.
Briefing.com Analyst Insight:
Zillow's strong Q3 print highlights its resilience in a weak housing market and the traction of its Rentals and Mortgage businesses. The pivot toward a broader housing transaction ecosystem appears to be paying off, particularly as multifamily inventory and digital rental demand accelerate. However, with home listings still constrained and rates high, top-line growth could remain choppy in the near term. We view Zillow as an emerging cyclical recovery story—solid execution, expanding optionality, but tied to a housing rebound that may take several quarters to fully materialize.
Western Digital Higher After Q1 Beat as AI-Driven HDD Demand Fuels Growth (WDC)
Western Digital (WDC) is trading sharply higher today after reporting its Q1 (Sep) results last night. The company comfortably beat expectations on the top and bottom line, with revenue remaining robust, up 27.4% yr/yr to $2.82 bln. The midpoint of Q2 EPS and revenue guidance also sits ahead of expectations at $1.88 (range $1.73-2.03) and $2.9 bln (range $2.80-3.00).
- Management said the rapid acceleration of agentic AI adoption is generating massive data volumes, and that HDDs remain the most reliable, scalable, and cost-effective way to store them. Cloud revenue increased 31% yr/yr.
- This surge in AI workloads is fueling robust demand for its latest high-capacity ePMR drives (26TB CMR / 32TB UltraSMR), with shipments surpassing 2.2 mln units in Q1, up from 1.7 mln in Q4.
- The shift toward these higher-capacity drives is lengthening lead times, prompting customers to provide more visibility, with seven top hyperscalers having purchase orders through the first half of CY26 and five extending through all of CY26; one large customer is already under agreement for all of CY27.
- This mix helped boost gross margin 600 bps yr/yr and 260 bps sequentially to 43.9%.
- Management highlighted rapid progress in its HAMR development, noting it remains on track to begin qualification for one hyperscale customer in the first half of CY26 and to expand to up to three customers through the year, leaving it well positioned for a volume ramp in CY27.
Briefing.com Analyst Insight
Expectations were high coming into this report, and WDC delivered standout results. The call made it clear that the surge of AI-driven data is creating powerful and durable tailwinds for HDD adoption. Elevated shipments of its 26TB and 32TB drives, longer-duration hyperscale POs, and accelerated HAMR qualification point to sustained growth, strong visibility, and increasing confidence in its long-term roadmap. With a richer mix, expanding margins, and AI data workloads still accelerating, Western Digital appears well positioned heading into FY26 and beyond.
Reddit's ad revenue soars as AI tools boost performance, but slowing DAUq growth a concern (RDDT)
Reddit (RDDT) delivered a strong beat-and-raise for Q3, easily exceeding EPS and revenue estimates with net income surging 430% yr/yr to $163 mln. The stock is rallying on robust fundamentals and a confident Q4 revenue guidance above expectations.
- Advertising revenue jumped 74% yr/yr to $549 mln, driven by broad strength across verticals, geographies, and channels, as well as new AI-powered ad tools enhancing campaign performance and efficiency.
- Gross margin expanded 90 bps to 91%, reflecting scaling operating leverage and continued optimization of RDDT's ad stack and platform.
- Daily Active Unique users (DAUq) increased 19% to 116 mln, surpassing expectations, with international users growing strongly to 64.4 mln. U.S. logged-in DAUq grew 7% to 23.1 mln, though this marks a continuing slowdown in U.S. user growth.
- RDDT continued advancing its AI offerings, including Reddit Answers, a chatbot-like feature integrated into search delivering community-powered, contextual responses. AI-driven ad automation tools also contributed to stronger advertiser outcomes and drove adoption of complex ad formats.
- For Q4, RDDT guided revenue to $655-$665 mln, beating consensus, with adjusted EBITDA of $275-$285 mln. Growth is expected to be fueled by continued user engagement growth, international expansion, product enhancements, and AI-driven monetization tools.
Briefing.com Analyst Insight:
RDDT's Q3 results demonstrate its strong position as a leader in online communities and digital advertising, with accelerating monetization driven by innovative AI tools and differentiated ad products. The 74% surge in advertising revenue reflects increasing advertiser confidence in RDDT’s unique audience and precise targeting capabilities enhanced by AI. International user growth and product improvements support sustained engagement, while slowing U.S. logged-in user growth continues to warrant attention. The company’s expansion in gross margin and achievement of a 40% adjusted EBITDA margin signal significant financial maturity. AI initiatives like Reddit Answers are pivotal in improving user experience and ad performance, helping RDDT differentiate itself amid competitive pressures. Overall, RDDT is executing well on growth, profitability, and technological innovation, positioning itself strongly for continued momentum in Q4 and into 2026.
Apple’s Strong Q4 Sets Stage for Record Q1, But Investors Want More AI Clarity (AAPL)
Apple (AAPL) is trading modestly lower today after posting its Q4 (Sep) results last night. The company delivered another strong quarter, beating EPS expectations while revenue climbed 8.7% yr/yr to a September-quarter record of $102.5 bln, in line with estimates. Looking ahead, Apple guided Q1 (Dec) revenue well above expectations, projecting a 10-12% increase, about $136.7-139.2 bln, which would be its best quarter ever, and double-digit iPhone revenue growth.
- iPhone revenue rose 6% yr/yr to $49 bln, a September-quarter record though it missed expectations due to supply constraints. The shortfall aligns with reports of strong iPhone 17 demand, and the bullish Q1 guide calling for record iPhone sales underscores that demand remains robust and is working through those constraints.
- Mac revenue increased 13% to $8.7 bln on strong MacBook Air demand. iPad held flat yr/yr at $7 bln after an 8% decline in Q3, while Wearables stayed flat at $9 bln, supported by Watch and AirPods, which Cook called a "huge hit."
- Services was a bright spot, reaching an all-time high of $28.8 bln, up 15% yr/yr, with all-time records across every region except China, which saw a September-quarter record. It boasts a 75.3% gross margin, a major contributor to Apple's profitability.
- Revenue grew 6% in the Americas, 15% in Europe, 12% in Japan, and 14% in the rest of Asia Pacific, while Greater China fell about 4%, reflecting increased domestic competition. Cook said Apple expects a return to growth in China in Q1.
- Apple plans to ramp AI investment, with DecQ operating expenses of $18.1-$18.5 bln, reflecting higher R&D tied to AI but still well below the AI capex levels at Google (GOOG), Amazon (AMZN), and Meta (META).
- Tariffs were in line with guidance at $1.1 bln and are expected to rise to about $1.4 bln in Q1. Despite the higher tariff impact, gross margin improved 70 bps sequentially to 47.2%, above prior guidance, and is expected to hold between 47-48% next quarter, reflecting strong mix and cost control.
Briefing.com Analyst Insight
Apple once again proved why it remains a powerhouse, delivering another impressive quarter and issuing a bullish outlook that points to its best-ever revenue quarter and record iPhone sales. The strong response to the iPhone 17 lineup highlights the strength of Apple's ecosystem, even amid supply constraints. Operational execution remains a differentiator, with gross margins above guidance despite higher tariffs and elevated R&D. While China weakness drew attention, management expects a rebound in Q1. With AI-related spending still modest compared to others in the AI capex cycle, investors are eager to see how Apple's growing investment in intelligence and silicon innovation can accelerate new product differentiation and sustain its growth leadership into 2026.
Amazon Prime Performance: AWS Delivers and Retail Reigns in a Blowout Q3 (AMZN)
Amazon (AMZN +11%) is surging today after posting blowout Q3 results, highlighted by its largest EPS beat in years. Revenue jumped 13.4% yr/yr to $180.2 bln, the strongest growth since 4Q23. Operating income surged to $21.7 bln, well above guidance of $15.5-20.5 bln, and Q4 guidance was solid, setting up a strong holiday season.
- North America Stores sales grew +11% yr/yr to $106.3 bln, while International rose 14% yr/yr (+10% CC) to $40.9 bln. The Everyday Essentials category is nearly doubling overall business growth YTD, and Prime Day was the biggest ever. AMZN also began rolling out three-hour delivery in select U.S. cities.
- The company is investing $4 bln to expand its rural delivery network and enhancing its Stores segment with AI tools. Its Rufus AI shopping assistant now serves 250 mln customers, driving an estimated $10 bln in incremental annualized sales.
- AWS sales grew 20.2% yr/yr to $33 bln, marking the strongest growth in 11 quarters and a meaningful reacceleration from recent quarters in the high teens. AWS backlog expanded to $200 bln, not including several new deals signed in October that exceed the entire Q3 deal volume. This points to sustained growth momentum into 2026.
- Advertising Services revenue rose +22% CC to $17.7 bln, maintaining its momentum as Amazon's full-funnel ad strategy and DSP platform gain traction.
- CapEx for AWS reached $34.2 bln in Q3 ($89.9 bln YTD) as AMZN continues investing in AI infrastructure. Full-year FY25 CapEx is expected around $125 bln, rising further in 2026. The increase in 2026 was similar to what we heard from MSFT.
Briefing.com Analyst Insight:
Amazon delivered a knockout quarter with broad-based strength across AWS, Advertising, and its core Retail business. The AWS reacceleration to 20% growth after several slower quarters is particularly encouraging, signaling rising AI-related workloads and renewed enterprise confidence. The strong backlog and improving retail margins make this one of the more balanced growth stories in mega-cap tech. What really stood out to us was the deal volume signed in October, which is not included in backlog. It reminds us a bit of Oracle (ORCL) a couple of quarters ago and then they reported massive backlog in subsequent quarters.
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