Market Snapshot
| Dow | 47310.79 | +225.76 | (0.48%) | | Nasdaq | 23499.82 | +151.16 | (0.65%) | | SP 500 | 6796.28 | +24.74 | (0.37%) | | 10-yr Note |
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| | NYSE | Adv 1881 | Dec 843 | Vol 1.37 bln | | Nasdaq | Adv 3041 | Dec 1637 | Vol 10.08 bln |
Industry Watch
| Strong: Communication Services, Consumer Discretionary, Materials, Industrials, Health Care |
| | Weak: Consumer Staples, Information Technology, Real Estate |
Moving the Market
Resilience in the market after yesterday's tech- and mega-cap led retreat
Advanced Micro Devices (AMD) reverses pre-market loss after beating earnings expectations yesterday afternoon
Broad participation
Late-session sell-off in the information technology sector limits major averages' gains
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Broad strength outweighs late tech slide as major averages rebound
05-Nov-25 16:25 ET
Dow +225.76 at 47310.79, Nasdaq +151.16 at 23499.82, S&P +24.74 at 6796.28
[BRIEFING.COM] The stock market staged a solid rebound today, with early strength in mega-cap and technology names broadening into a wider advance. The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.5%) all finished firmly higher, even as the information technology sector (-0.1%) slipped into the red late in the session.
Several of the market's largest names captured gains that mirrored yesterday's losses, though mixed strength ultimately saw the Vanguard Mega Cap Growth ETF (+0.1%) finish with just a modest gain. The communication services (+1.7%) and consumer discretionary (+1.0%) sectors finished at the top of the standings by way of their largest components, as mega-cap weakness was largely concentrated in the information technology sector.
Meta Platforms (META 635.95, +8.63, +1.38%) traded higher for the first day since its earnings report last Wednesday, while Alphabet (GOOG 284.75, +6.69, +2.41%) reapproached last week's record high levels.
Tesla (TSLA 462.23, +17.97, +4.05%) was a standout among the mega-caps, reclaiming the bulk of yesterday's 5.2% slide despite reports of weak sales in Germany.
Elsewhere in the consumer discretionary sector, McDonald's (MCD 305.67, +6.46, +2.16%) traded higher despite a Q3 earnings miss and in-line revenue, with investors focusing on stronger-than-expected same-store sales momentum in both global and U.S. markets.
The information technology sector (-0.1%) held one of the widest gains for much of the session but eventually faced some pressure late in the afternoon. Apple (AAPL 270.14, +0.10, +0.04%) and Microsoft (MSFT 507.16, -7.17, -1.39%) spent most of the day in a lackluster fashion, while NVIDIA (NVDA 195.19, -3.50, -1.76%) reversed an earlier gain of nearly 2.0%.
Despite the late slide in NVIDIA, chipmaker names still largely outperformed today, sending the PHLX Semiconductor Index 3.0% higher.
Advanced Micro Devices (AMD 256.33, +6.28, +2.51%) traded higher after a beat-and-raise earnings report, reversing a pre-market loss that had investors worried it might follow a similar trajectory to Palantir Technologies (PLTR 187.90, -2.84, -1.49%), which moved sharply lower yesterday on valuation concerns despite a blowout earnings report.
Micron (MU 237.50, +19.47, +8.93%) was a notable standout on reports that SK Hynix is aiming to increase HBM4 supply prices by 50%. That headline contributed to a solid gain in Seagate Tech (STX 275.77, +25.39, +10.14%) as well.
The consumer staples (-0.3%) and real estate (-0.1%) sectors also closed with modest losses, while the utilities sector finished flat.
Seven other S&P 500 sectors captured gains as the market benefitted from relatively wide participation that saw advancers outpace decliners by a roughly 2-to-1 ratio on the NYSE and Nasdaq. The positive breadth figures were a welcome sight to a market that has seen thin leadership from its largest names drive the most recent push to record highs. Ultimately, the S&P 500 Equal Weighted Index (+0.6%) outperformed the market-weighted S&P 500 (+0.4%).
The Russell 2000 (+1.5%) and S&P Mid Cap 400 (+0.7%) also outperformed as the market exhibited a less defensive posture today.
While some late pressure in tech saw the major averages close with roughly half of their early gains, the broader tone remained supportive as stronger breadth pointed to a less volatile demeanor.
Meanwhile, U.S. Treasuries retreated, lifting yields to their highest levels since early October after a quiet first two sessions of the week. The midweek affair started in flat fashion, but selling interest began building after the open as the market received generally upbeat economic data that included renewed growth in the ADP Employment Change report (42,000; prior -29,000) and expansionary readings of the S&P Global U.S. Services PMI (54.6) and the ISM Services Index (52.4%) for October.
The 2-year note yield settled up five basis points to 3.63%, and the 10-year note yield settled up seven basis points to 4.16%.
- Nasdaq Composite: +21.7% YTD
- S&P 500: +15.6% YTD
- DJIA: +11.2% YTD
- S&P Mid Cap 400: +3.8% YTD
Reviewing today's data:
- Weekly MBA Mortgage Applications Index -1.9%; Prior 7.1%
- October ADP Employment Change 42K (Briefing.com consensus 26K); Prior was revised to -29K from -32K
- October S&P Global U.S. Services PMI - Final 54.8; Prior 54.2
- October ISM Services 52.4% (Briefing.com consensus 50.9%); Prior 50.0%
- The key takeaway from the report is that it is not a data point that falls in favor of a rate cut in December. Business activity for the nation's largest sector accelerated in October, while the prices index (which measures prices paid for materials and services by services organizations) hit its highest level in three years.
Quiet afternoon leaves major averages poised for solid gains
05-Nov-25 15:30 ET
Dow +290.50 at 47375.53, Nasdaq +240.78 at 23589.44, S&P +48.57 at 6820.11
[BRIEFING.COM] The major averages remain firmly above their baselines as the market enters the final half hour of the session.
The Supreme Court heard the Trump administration's argument for tariffs, with several members expressing skepticism around the president's tariff authority, but a decision is not expected to be made anytime soon.
Macro headlines have been relatively quiet otherwise, leaving the market focused on today's strong rebound effort.
Investors are set to receive another sizable batch of earnings reports after the close, though there are fewer names of consequence compared to other days this week.
Tesla mounts solid rebound
05-Nov-25 15:00 ET
Dow +290.31 at 47375.34, Nasdaq +288.21 at 23636.87, S&P +52.74 at 6824.28
[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.2%), and DJIA (+0.6%) trade near session highs with an hour left in today's action.
If the gains are maintained through the close, the major averages will trim their week-to-date losses to less than 0.5%.
Participation remains broad, with only the consumer staples sector (-0.1%) holding a slim loss.
The communication services sector (+1.6%) maintains its lead, though the consumer discretionary sector (+1.2%) is not far behind. Tesla (TSLA 465.47, +21.21, +4.77%) has now almost completely mitigated yesterday's 5.2% slide after spending time in negative territory this morning.
Starbucks (SBUX 82.48, +2.88, +3.62%) is another top performer, with shares unaffected by a Bloomberg report that the Starbucks union is planning a nationwide strike on Red Cup Day to pressure the company for a contract deal.
S&P 500 up 0.8% as Seagate jumps 12.8% on memory price boost, AES rises on strong Q3 results
05-Nov-25 14:30 ET
Dow +291.75 at 47376.78, Nasdaq +268.81 at 23617.47, S&P +52.28 at 6823.82
[BRIEFING.COM] The S&P 500 (+0.77%) is in second place on Wednesday afternoon, up more than 52 points.
Briefly, S&P 500 constituents Seagate (STX 282.38, +32.00, +12.78%), Solstice Advance Materials (SOLS 48.00, +4.35, +9.97%), and AES (AES 14.05, +0.61, +4.54%) dot the top of the standings. STX rallies on news that SK Hynix raised prices for HBM4 memory supplied to Nvidia (NVDA 201.14, +2.45, +1.23%) by over 50%, fueling optimism for stronger margins, with AES rising as investors cheer strong Q3 revenue above expectations and reaffirmed 2025 guidance, supported by new renewables projects, utility rate base growth, and a robust pipeline of signed power purchase agreements.
Meanwhile, Zimmer Biomet (ZBH 87.48, -15.70, -15.22%) is today's top laggard after a slight revenue miss and unchanged full-year guidance signaled slowing international demand and limited near-term upside despite solid U.S. growth.
Gold rebounds nearly 1% to $3,993 as caution rises ahead of jobs data
05-Nov-25 14:00 ET
Dow +281.24 at 47366.27, Nasdaq +280.67 at 23629.33, S&P +55.85 at 6827.39
[BRIEFING.COM] The Nasdaq Composite (+1.20%) is in first place on Wednesday afternoon, up more than 280 points.
Gold futures settled $32.40 higher (+0.8%) at $3,992.90/oz, rebounding after yesterday's sharp drop as bargain hunters stepped in and risk sentiment turned cautious. The move came ahead of U.S. jobs data, with traders watching for signals on the Federal Reserve's rate path and seeking safety amid renewed economic uncertainty.
Meanwhile, the U.S. Dollar Index is up less than +0.1% to $100.25.
Humana delivers upside Q3 EPS, but MA Star Rating risks put pressure on shares (HUM)
Humana (HUM) exceeded EPS expectations for 3Q25 and reaffirmed its FY25 adjusted EPS guidance of approximately $17.00, but the stock is diving lower due to lowered GAAP EPS guidance and concerns about future Medicare Advantage (MA) plan ratings and bonuses.
- HUM’s FY25 GAAP EPS guidance was lowered to approximately $12.26 from prior guidance of $13.77, driven by expectations for a significant decline in the number of higher-rated MA plans in 2025, which will reduce 2026 CMS quality bonus payments and negatively impact revenue, cash flows, and operating results next year.
- A key factor behind this risk is a recent U.S. judge’s decision against HUM’s challenge to the 2025 CMS MA plan star ratings, where higher-rated plans receive substantially larger payments, often worth hundreds of millions to billions annually.
- The Insurance segment benefit ratio for 3Q was 91.1%, in line with prior guidance of "just above 91%" and up from 89.9% a year earlier. This rise in medical benefit ratios echoes a broader industry trend seen among competitors like UnitedHealth (UNH), Cigna (CI), CVS Health (CVS), and Centene (CNC), largely due to rising medical cost inflation, increased care utilization, and pricing pressures.
- On a more positive note, HUM now expects a decline of approximately 425,000 Medicare Advantage members for 2025, an improvement compared to its prior forecast of up to 500,000 members, supported by stronger retention and sales mix changes.
Briefing.com Analyst Insight:
HUM delivered a solid EPS beat for 3Q25 and maintains confidence in its full-year adjusted EPS outlook near $17. However, investors are concerned by the lowered GAAP EPS guidance and the headwinds expected in 2026 due to the decline in high-star Medicare Advantage plans and consequent reduced CMS bonuses. The court ruling against HUM's challenge of its plan ratings intensifies this risk. Rising medical benefit ratios reflect industry-wide cost pressures but are expected to stabilize over time. The improved membership decline forecast and initiatives to enhance retention provide some offsetting positives, but uncertainty around quality ratings and their financial impact loom large. Overall, while operational execution remains strong, these macro headwinds suggest near-term caution for the stock.
AMD Delivers Record Q3; Muted Reaction as Investors Weigh Valuation, Rally, and AI Sentiment (AMD)
Advanced Micro Devices (AMD) is seeing a muted reaction after delivering strong Q3 results last night, even as the company reported record revenue, beat expectations on both the top and bottom line, and guided Q4 above expectations. After posting in-line EPS last quarter, AMD returned to modest upside, while revenue surged 35.6% yr/yr to a record $9.2 bln. Its Q4 guidance of $9.3-9.9 bln also points to further acceleration.
- Record results were fueled by broad-based strength across data center AI, server, and PC markets.
- Data center revenue accelerated 22% yr/yr (34% q/q) to $4.3 bln, fueled by a sharp MI350 GPU ramp and record server CPU sales, with 5th Gen EPYC "Turin" accounting for about half of total EPYC revenue.
- AMD said its Data Center AI business is entering a new growth phase as momentum builds ahead of MI400 accelerators and Helios rack-scale systems in 2026, positioning it on track for "tens of billions" in annual revenue by 2027.
- Client and Gaming also hit a record $4.0 bln, up 73% yr/yr (12% q/q), supported by strong Ryzen CPU and Radeon GPU demand. Client rose 46% yr/yr to $2.8 bln, while Gaming jumped 181% to $1.3 bln.
- AMD said it will deepen its partnership with OpenAI on next-generation hardware, software, and system development, a move aimed at accelerating its Data Center AI growth, with potential to generate over $100 bln in revenue over the next few years. Oracle will also be a lead launch partner for the MI450 series, deploying tens of thousands of GPUs on OCI starting in 2026.
- Q4 guidance calls for continued Data Center and CPU growth, partially offset by seasonal Gaming declines. Gross margin is expected near 54.5%, up slightly from Q3, and excludes any MI308 sales to China, though AMD noted it has received some export licenses and is evaluating demand.
Briefing.com Analyst Insight
AMD's report had plenty to like, with record revenue, upbeat guidance, and tangible AI traction, yet shares initially dipped as investors weighed valuation amid stretched AI sentiment. The stock has already doubled this year, and much of the heavy AI revenue lift is still a few quarters out as MI450 and Helios systems come online in 2026. That said, the fundamentals and setup look attractive, supported by strong EPYC CPU demand, including next-gen traction, as hyperscalers expand compute capacity, growing visibility from major customer wins, and a strengthening full-stack platform that positions AMD well for the next wave of data center growth.
McDonald's Sizzles Despite an EPS Miss — Investors Lovin’ the Comps (MCD)
McDonald's (MCD) is trading higher following its Q3 earnings release, as investors look past an EPS miss and in-line revenue to focus on stronger-than-expected same-store sales momentum in both global and U.S. markets.
- Global comps rose +3.6%, following +3.8% in Q2, marking back-to-back quarters of solid growth.
- U.S. comps increased +2.4%, fueled by higher average checks and steady traffic gains, sustaining the rebound from -3.6% in Q1.
- MCD gained traffic share in most top U.S. markets despite ongoing consumer pressure.
- The company cited a bifurcated consumer base: lower-income traffic down nearly double digits, higher-income traffic up nearly double digits.
- MCD is leaning on value offerings, including new $5-$8 Extra Value Meals, which account for about 30% of US transactions.
- Chicken innovation remains a bright spot — the Snack Wraps relaunch at $2.99 drove strong demand, while international products like the Chicken Big Mac (UK) and McC Wings (Australia) outperformed.
- Management expects consumer headwinds to persist into 2026, but remains confident in its value strategy and menu innovation to sustain momentum.
Briefing.com Analyst Insight:
McDonald's delivered a surprisingly strong quarter beneath the surface, even if the headline EPS miss initially raised eyebrows. Investors are rewarding the stock for consistency — especially after weakness at Chipotle (CMG) highlighted how fragile consumer spending has become. MCD's ability to sustain positive comps across both global and US markets, despite heavy pressure on lower-income consumers, speaks to the strength of its brand, operational execution, and pricing discipline.
Still, we remain cautious on the longer-term outlook. The company's heavy exposure to price-sensitive consumers makes its near-term comps vulnerable if inflation remains sticky. While the return of value meals should help traffic, margin pressure may persist. MCD looks fairly valued — a dependable defensive play, but not a high-growth story at this stage.
Pinterest's cautious outlook and competition from Meta and Google has shares plunging (PINS)
Pinterest (PINS) delivered mixed results for 3Q25, reporting an EPS miss while achieving in-line revenue. The company’s midpoint guidance for Q4 revenue fell short of consensus, and management’s cautious commentary on macro uncertainty and new tariffs has sent shares sharply lower.
- Revenue grew 17% yr/yr to $1.049 bln, meeting expectations, but PINS missed on EPS due to increased investments and a negative ad mix shift driven by international expansion, which carries lower ad pricing.
- Q4 revenue guidance of $1.313-$1.338 bln (14-16% yr/yr growth) puts the midpoint slightly under Street expectations, reflecting ongoing uncertainty around tariffs and continued “pockets of moderating ad spend,” especially among large U.S. retailers coping with related margin pressures.
- Management said a new tariff in Q4 is “impacting the home furnishings category,” compounding their conservative tone. There are ongoing concerns about the digital ad environment, with particular mention of market uncertainty and “broader trends” impacting spend.
- Intensifying competition from Alphabet (GOOG) and Meta Platforms (META) is evident in PIN’s subdued results and outlook, especially as both rivals recently posted stronger quarters.
- PIN’s challenges in fully capturing performance budgets and continuing adoption of AI-driven ad tools is highlighted as an area lagging behind larger peers.
- On a positive note, global Monthly Active Users (MAUs) surged 12% yr/yr to 600 mln, exceeding expectations, with accelerated strength in Gen Z and continuing international momentum.
- Europe revenue climbed 41% yr/yr to $193 mln, and Rest of World revenue soared 66% to $70 mln, supporting the narrative that robust international growth remains a major bright spot for PINS.
Briefing.com Analyst Insight:
PIN’s mixed print and modest Q4 guide are disappointing, especially in the context of heavyweights GOOG and META posting strong quarters and pointing to healthy digital ad recovery. Management’s warnings about market uncertainty and tariffs in Q4 -- especially in categories like home furnishings -- have cast a shadow, and investors are reacting accordingly. While strong international growth and record MAUs provide support, PINS remains in catch-up mode on ad tech innovation compared to peers. Until PINS demonstrates consistent outperformance and better monetization, especially in the U.S., the stock’s upside may remain capped.
Shopify's Q3 shines with robust 32% GMV growth, but shares dip on Q4 outlook (SHOP)
Shopify (SHOP) delivered a robust Q3, showcasing consistent growth and profitability, though the stock is trading lower post-earnings, likely due to investor concerns over Q4 guidance and tariff impacts. The company reported strong gross merchandise volume (GMV), revenue, and free cash flow, underpinned by strategic AI integrations and international expansion.
- GMV reached $92 bln, up 32% yr/yr (30% in cc), marking the highest growth rate since 2021. Growth was broad-based across merchant sizes, with notable strength in merchants generating over $25 mln annually.
- International GMV surged 41%, particularly in Europe (49% growth), highlighting SHOP’s global traction.
- Monthly recurring revenue (MRR) rose 10%, with 35% from higher-priced Plus plans, though yr/yr comparisons were impacted by last year’s one-month paid trials and Plus pricing changes.
- Free cash flow margin hit 18% ($507 mln), up from 16% in Q2 and 15% in Q1, reflecting disciplined cost management.
- SHOP’s AI initiatives, including Sidekick (used by 750,000 shops in Q3) and agentic commerce tools like Catalog and Checkout Kit, are gaining traction. Partnerships with ChatGPT, Microsoft Copilot, and Perplexity position SHOP at the forefront of conversational commerce.
- The company expects Q4 revenue growth in the mid-to-high 20s, a step down from Q3’s 32%, reflecting a tough comparison to 4Q24’s high growth and lapping the PayPal (PYPL) partnership expansion.
- Gross profit growth for Q4 is projected in the low-to-mid 20s, with free cash flow margin slightly above Q3’s 18%, tempered by elevated payment losses and tax receivable timing.
Briefing.com Analyst Insight:
SHOP’s Q3 results underscore its ability to balance growth and profitability, with 32% GMV and revenue growth paired with an 18% free cash flow margin. The company’s AI-driven tools and international expansion are clear strengths, positioning it to capture the evolving commerce landscape. However, the stock’s post-earnings decline likely reflects investor caution around Q4’s softer guidance and ongoing tariff concerns, which have prompted modest price increases by merchants but no significant GMV impact yet. While SHOP’s diversified merchant base and enterprise wins (e.g., Estée Lauder, e.l.f. Cosmetics) bolster its resilience, the high valuation (P/S of roughly 20x) and potential macro headwinds suggest caution.
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