Market Snapshot
| Dow | 47356.91 | -205.75 | (-0.43%) | | Nasdaq | 23834.62 | +109.64 | (0.46%) | | SP 500 | 6853.59 | +13.40 | (0.20%) | | 10-yr Note |
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| | NYSE | Adv 1072 | Dec 1639 | Vol 567.74 mln | | Nasdaq | Adv 1601 | Dec 2791 | Vol 8.83 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology |
| | Weak: Real Estate, Consumer Staples, Materials, Industrials, Financials |
Moving the Market
Gains in mega-cap tech after Amazon (AMZN) announced a $38 billion AWS deal with OpenAI
NVIDIA (NVDA) up after U.S. approved sale of its chips to UAE
Weakness in the broader market
| Palanitir Technologies trades higher ahead of earnings
03-Nov-25 15:30 ET
Dow -205.75 at 47356.91, Nasdaq +109.64 at 23834.62, S&P +13.40 at 6853.59
[BRIEFING.COM] The major averages continue to sit in a mixed fashion after spending the majority of the session in a sideways drift.
The consumer discretionary (+1.8%) and information technology (+0.3%) sectors hold on to the bulk of their early gains, while the utilities (+0.2%) and communication services (+0.1%) sectors have also resurfaced in positive territory.
Palantir Technologies (PLTR 206.21, +5.74, +2.86%) is one of the top movers in the information technology sector, trading higher ahead of its earnings release after the close.
Since May 2024, Palantir has guided above consensus for both the next quarter and the full year. Investors will watch whether management continues this bullish trend and supports the view that its rapid growth and AI-driven demand are sustainable heading into year-end. The bar is high, and with a forward P/E near 245x, shares are priced for perfection. Investors will be looking for another clear beat and above-consensus guide to keep the rally intact.
December rate cut expectations little changed following Fed commentary
03-Nov-25 15:00 ET
Dow -211.77 at 47350.89, Nasdaq +136.67 at 23861.65, S&P +16.48 at 6856.67
[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.6%), and DJIA (-0.4%) are little changed from previous levels as the market enters the final hour of the session.
Fed Governor Lisa Cook (voting FOMC member) said in a speech today that policy "is not on a predetermined path," highlighting risks to both sides of the dual mandate ahead of the December FOMC meeting. Ms. Cook's comments echoed the sentiment of Fed Chair Jerome Powell, who stated last week that a December rate cut is far from a foregone conclusion.
Meanwhile, San Francisco Fed President Mary Daly (nonvoting FOMC member) said that the Fed should be open-minded about cutting rates in December, according to Bloomberg.
December rate cut expectations have held steady throughout the session, with the CME FedWatch tool assigning a 65.3% probability to another 25-basis point rate cut in December.
S&P 500 edges higher as Incyte and Wynn climb on upbeat news; Charter sinks after downgrades
03-Nov-25 14:30 ET
Dow -165.92 at 47396.74, Nasdaq +113.09 at 23838.07, S&P +14.78 at 6854.97
[BRIEFING.COM] The S&P 500 (+0.22%) is in second place on Monday afternoon, up about 15 points.
Briefly, S&P 500 constituents Incyte (INCY 100.23, +6.75, +7.22%), Expand Energy (EXE 108.64, +5.33, +5.16%), and Wynn Resorts (WYNN 124.44, +5.45, +4.58%) dot the top of the standings. INCY rallies after multiple bullish analyst reactions to new early-stage myelofibrosis data for the company's INCB0989 drug candidate, while WYNN jumps higher on this weekend's October casino revenue data out of Macau.
Meanwhile, Charter Comm (CHTR 219.51, -14.33, -6.13%) is near the bottom of the average after catching a few sell side downgrades over the weekend in reaction to last week's earnings.
Gold rises on softer dollar, Fed rate-cut hopes; gains capped by hawkish comments, easing tensions
03-Nov-25 14:00 ET
Dow -184.19 at 47378.47, Nasdaq +152.60 at 23877.58, S&P +19.35 at 6859.54
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.64%) is in first place on Monday afternoon, up about 153 points.
Gold futures settled $15.20 higher (+0.4%) at $4,015.90/oz, supported by a softer U.S. dollar and renewed expectations for Federal Reserve rate cuts. Gains were tempered by hawkish Fed commentary and easing geopolitical tensions, which limited safe-haven demand.
Meanwhile, the U.S. Dollar Index is now up less than +0.1% to $99.85.
Dow slips as Merck, Nike, Honeywell weigh; Amazon rallies, Dow still up 4% from October lows
03-Nov-25 13:30 ET
Dow -217.20 at 47345.46, Nasdaq +162.84 at 23887.82, S&P +18.69 at 6858.88
[BRIEFING.COM] The Dow Jones Industrial Average (-0.46%) is in last place on Monday afternoon, down 217 points.
A look inside the DJIA shows that Merck (MRK 83.41, -2.57, -2.99%), Nike (NKE 62.84, -1.75, -2.71%), and Honeywell (HON 197.21, -4.12, -2.05%) litter the bottom of the standings.
Meanwhile, Amazon (AMZN 256.47, +12.25, +5.02%) is posting strong gains.
The DJIA is now up +4.17% off the mid-October lows.
IREN soars to record highs on $9.7 bln Microsoft AI cloud deal; Stock now up 630% YTD (IREN)
IREN Limited (IREN) announced a landmark $9.7 bln five-year cloud-services contract with Microsoft (MSFT), granting MSFT access to cutting-edge NVIDIA (NVDA) GB300/Blackwell GPUs via IREN’s infrastructure. The deal, which also includes a separate $5.8 bln procurement agreement with Dell Technologies (DELL) to supply the hardware, has sent IREN’s shares launching to new highs and underscored the firm’s transformation into a serious AI-cloud platform player.
- IREN has surged by about 630% year-to-date, driven by the AI infrastructure narrative and major contract announcements. That meteoric rise has pushed its 1-year forward P/E ratio to a lofty 65x, reflecting elevated investor expectations.
- Under the MSFT deal, IREN will provide access to NVDA's GB300/Blackwell GPUs over five years; MSFT’s choice of IREN underscores IREN’s turnkey capability -- from power, cooling, datacenter shell through to GPU stack.
- This contract follows IREN’s October 7 announcement of several multi-year cloud contracts with AI companies (leveraging NVDA Blackwell GPUs) and its target to exceed $500 mln in annualized run-rate revenue by end of Q1 2026, based on approximately 23,000 GPUs currently operating or on order.
- Several catalysts are driving this growth: booming demand for AI training/inference infrastructure, constrained supply of next-gen GPUs and power/cooling capacity, and IREN’s vertically integrated model (renewable-powered grid capacity plus large data-center campus footprint) which positions it to scale cost-effectively.
- In parallel, MSFT reported that its 1Q26 capex surged to $34.9 bln, up from prior guidance of over $30 bln, and that FY26 capex will outpace FY25 -- reversing its earlier moderation plan. MSFT also plans to increase GPU/CPU spending sequentially in Q2 and boost its datacenter footprint and AI capacity (up roughly 80% this year, doubling over two years), all of which reinforces the tailwinds facing IREN as a provider of that infrastructure.
Briefing.com Analyst insight:
IREN’s transformation from mining/power-centric business into a high-performance AI-cloud infrastructure provider is being validated in real time with a marquee hyperscaler as an anchor tenant. The $9.7 bln deal with MSFT significantly de-risks IREN’s growth trajectory and anchors long-term GPU-demand visibility. That said, the stretched valuation (65× forward P/E) leaves little margin for execution missteps, delays or supply/cost inflation. Delivering on GPU deployment, meeting MSFT’s milestones, managing capex and power infrastructure risk are key to justifying the premium. For investors, IREN offers a compelling structural story if you believe the AI-compute boom is in early innings, but it’s not without risk given the scale and complexity of what’s required.
Freshpet Stays Fresh on Consumer Trends, Delivers Upbeat Q3 Despite Challenging Backdrop (FRPT)
Freshpet (FRPT) is moving nicely higher today after posting strong Q3 results this morning. The pet food maker reported EPS of $1.86, a massive jump from $0.24 a year ago, while revenue rose 14% yr/yr to $288.8 mln, beating expectations. The company slightly trimmed its FY25 revenue outlook to roughly 13% growth, from prior guidance of +13-16%, citing uncertainty around consumer sentiment. Still, investors appear to be looking past the modest adjustment, focusing instead on Freshpet's ability to adapt and succeed in a more challenging backdrop.
- Revenue was driven by 12.9% volume growth and 1.1% price and mix. Freshpet saw broad-based strength, with U.S. pet retail up 10%, U.S. food up 8%, and pet specialty up 2%.
- Digital orders jumped 45%, and the company noted it remains significantly underpenetrated in e-commerce, including direct-to-consumer, and is preparing for it to become a more meaningful growth driver heading into 2026.
- Management shifted its advertising to emphasize freshness benefits and emotional connection, with new campaigns resonating well with consumers and MVP households.
- The company also leaned into value, introducing new entry-level offerings like its Complete Nutrition Bag, multi-packs, and a sharper price point on its one-pound chicken roll to attract more price-sensitive shoppers.
- These efforts, along with new manufacturing technology, helped FRPT achieve positive free cash flow, now expected for the full year, a year ahead of schedule.
Briefing.com Analyst Insight
This was a strong and encouraging quarter for Freshpet, particularly given the cautious consumer backdrop and growing competition in the category. Management continues to adapt effectively, maintaining strong demand, disciplined spending, and progress in key strategic areas like digital and value offerings. New competitors are seen more as proof that the fresh pet food trend is here to stay rather than a real threat, and Freshpet is sticking to its focus on brand strength instead of heavy discounting. Even with the slight guidance cut, investors seem encouraged by how well the company is executing and by the resilience of the category. Freshpet looks well set up to keep gaining ground once conditions start to improve.
Kimberly-Clark: From Diapers to Tylenol: KMB Absorbs Kenvue in Consumer Care Combo (KMB)
There was some big M&A news in the consumer products space this morning. Kimberly-Clark (KMB -13%) announced a deal to acquire Kenvue (KVUE +15%) in a cash and stock transaction, which will combine Kenvue's consumer health portfolio — including Aveeno, Band-Aid, Listerine, Neutrogena, and Tylenol — with Kimberly-Clark's established brands like Kleenex and Huggies, creating one of the largest consumer goods companies globally.
- This transaction brings together two iconic American companies with complementary portfolios, spanning $10 bln-dollar brands that reach nearly half the global population. KMB's focus on baby care, tissues, and adult health will pair with KVUE's leadership in consumer health and wellness.
- Kenvue's recent challenges likely made it a more willing seller. Since its 2023 spin-off from Johnson & Johnson (JNJ), KVUE has faced slowing sales growth, a CEO shake-up after Thibaut Mongon's firing, and lingering Tylenol autism lawsuit concerns, which the company has strongly denied. Kenvue had already been conducting a review of strategic alternatives, making this deal less of a surprise and possibly its best path forward.
- The combined company is projected to generate 2025 annual revenue of approximately $32 bln and $7 bln of adjusted EBITDA. Management expects to achieve $1.9 bln in cost synergies and $500 mln in incremental profit from revenue synergies, partially offset by about $300 mln in reinvestment.
- Overall, this appears to be a strategically sound combination. For KMB, it represents a significant expansion into consumer health and enhances category diversification. For KVUE, the merger offers a stable platform and a much-needed reset following operational and reputational headwinds. Additionally, KMB may have benefited from KVUE's depressed share price, acquiring valuable brands at an attractive valuation.
Briefing.com Analyst Insight:
This deal looks like a win-win on paper. For KMB, it provides scale, diversification, and exposure to higher-margin consumer health segments — but at $48.7 bln, it's a hefty price tag that raises leverage concerns and that likely explains why KMB is trading sharply lower. KMB's track record in brand management and category expansion supports the long-term logic, but we'll be watching how it balances debt reduction with growth investments. For KVUE, this is an elegant exit from a rough independent run, and shareholders likely fare better here than if the company had continued solo. Near-term upside may be capped as investors digest deal terms, but strategically, this move solidifies KMB as a global consumer powerhouse.
onsemi shows sequential recovery in Q3 as AI momentum builds (ON)
onsemi (ON) delivered mostly solid 3Q25 results, edging past EPS and revenue expectations even as macro headwinds persisted. EPS of $0.63 landed near the high end of ON's prior guidance but declined 36% yr/yr, while revenue of $1.55 bln fell 12% yr/yr, marking a ninth straight quarter of annual contraction. Looking ahead, the company guided Q4 EPS to $0.57–$0.67 and revenue to $1.48–$1.58 bln, roughly in line with consensus, reflecting steady demand normalization and disciplined execution.
- Each core business unit posted yr/yr declines, with Power Solutions Group (PSG) and Analog & Mixed-Signal Group (AMG) down 11% and Intelligent Sensing Group (ISG) down 18% as softness in automotive and industrial markets, along with strategic refocusing in ISG, tempered results.
- Non-GAAP gross margin fell sharply yr/yr to 38% (GAAP 37.9%) from 28.2%, pressured by weaker utilization and mix, though margin improved 190 bps qtr/qtr as manufacturing efficiency increased and mix improved.
- Signs of stabilization are emerging across core end markets, including automotive and industrial, while AI revenue is becoming meaningful; sequentially, PSG grew 6% and AMG rose 5%, with ISG up 7% on improved design wins and AI traction.
- AI continues to scale as a key growth vector -- ON expects approximately $250 mln in AI revenue in 2025, doubling yr/yr, driven by differentiated capabilities across the power delivery stack from wall to core.
Briefing.com Analyst Insight:
ON’s Q3 results showed measured improvement, highlighted by sequential revenue growth across business units and expanding qtr/qtr margins, suggesting the worst of the downcycle may be past. Still, the ninth straight quarter of yr/yr declines and sharp margin compression underscore that the recovery remains gradual, with broader automotive and industrial end markets stabilizing rather than accelerating. The company’s differentiated AI power solutions and growing design funnel offer a compelling long-term narrative -- AI revenue doubling and reaching $250 mln this year reinforces that momentum. However, execution on capacity and inventory transitions remains critical, and valuation support likely hinges on visibility into a sustained demand reacceleration in 2026. With in-line Q4 guidance and sequential stability emerging, the stock appears more of a patient accumulation story than a near-term momentum trade.
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.
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