Market Snapshot
| Dow | 46912.09 | -398.70 | (-0.84%) | | Nasdaq | 23054.01 | -445.81 | (-1.90%) | | SP 500 | 6720.31 | -75.97 | (-1.12%) | | 10-yr Note |
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| | NYSE | Adv 985 | Dec 1782 | Vol 1.35 bln | | Nasdaq | Adv 1326 | Dec 3325 | Vol 11.11 bln |
Industry Watch
| Strong: Energy, Health Care |
| | Weak: Information Technology, Consumer Discretionary |
Moving the Market
--Relative weakness in mega-cap space and growth stocks
--Slowdown concerns as Challenger, Gray & Christmas report job cuts in October (153,074) were the highest for any October since 2003
--Mixed response to huge load of earnings report since yesterday's close
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Closing Stock Market Summary
06-Nov-25 16:15 ET
Dow -398.70 at 46912.09, Nasdaq -445.81 at 23054.01, S&P -75.97 at 6720.31
[BRIEFING.COM] It was a struggle for the stock market today, largely because it was a struggle for growth stocks as a whole and many of the mega-cap stocks. Both groups were hit with some profit-taking interest and were saddled with residual concerns over stretched valuations and excess speculation.
In a certain respect, it was a rehash of Tuesday's selling in the wake of Palantir Technologies' (PLTR 175.07, -12.83, -6.83%) earnings report, only the losses overall weren't as significant. There was the same concentration factor, however.
The Vanguard Mega-Cap Growth ETF (MGK) and the Russell 3000 Growth Index were both down as much as 1.9% at their worst levels of the day before they pared their losses. They finished today's session down 1.7% and 1.6%, respectively.
Outsized losses in e.l.f. Beauty (ELF 76.62, -41.21, -34.97%), Duolingo (DUOL 193.74, -66.28, -25.49%), DoorDash (DASH 196.46, -41.54, -17.45%), and Paycom Software (PAYC 164.05, -19.66, -10.70%) after they disappointed with their results and/or guidance took a toll on investor sentiment, as did a Q3 warning from CarMax (KMX 30.88, -9.93, -24.33%), which also said its CEO will be stepping down.
Then, there was the overhang of losses in Tesla (TSLA 445.91, -16.16, -3.50%), NVIDIA (NVDA 188.08, -7.13, -3.65%), Meta Platforms (META 618.94, -17.01, -2.67%), Amazon (AMZN 243.04, -7.16, -2.86%), and Microsoft (MSFT 497.10, -10.06, -1.98%). Alphabet (GOOG 285.34, +0.59, +0.21%; GOOGL 284.75, +0.44, +0.15%) bucked that trend on a report that it will make its powerful AI chip, Ironwood, widely available in the coming weeks. That report presumably weighed some on NVIDIA.
Weakness in these mega-cap leaders made it all but impossible for the market cap-weighted indices to stake a claim on positive ground. In fact, the majority of stocks struggled today. Decliners led advancers by a 9-to-5 margin at the NYSE and by a better than 2-to-1 margin at the Nasdaq.
There were only two sectors that ended the day higher—energy (+0.9%) and health care (+0.2%). The latter saw some added news flow, with President Trump announcing in an Oval Office briefing that Eli Lilly (LLY 937.76, +11.95, +1.29%) and Novo Nordisk A/S (NVO 46.50, -1.96, -4.04%) will provide most-favored nation drug pricing for their weight-loss drugs.
The consumer discretionary (-2.5%) and information technology (-2.2%) sectors were today's worst-performing areas. Interestingly, they were the only two sectors that underperformed the S&P 500 (-1.1%). The other losing sectors were down between 0.3% and 0.7%.
There weren't any official government reports today due to the shutdown. Challenger, Gray & Christmas reported, however, that job cuts in October (153,074) were the highest they have been in any October since 2003.
That report also acted as a deterrent for buyers in today's session, although it was a factor in the gains seen in the Treasury market. The 2-yr note yield settled the session down six basis points at 3.57%, while the 10-yr note yield settled the session down six basis points at 4.09%.
- Nasdaq Composite: +19.4% YTD
- S&P 500: +14.3% YTD
- DJIA: +10.5% YTD
- Russell 2000: +8.7% YTD
A tentative rebound effort
06-Nov-25 15:30 ET
Dow -232.26 at 47078.53, Nasdaq -341.69 at 23158.13, S&P -52.42 at 6743.86
[BRIEFING.COM] There has been a rebound effort in the afternoon trade, albeit a tentative one that seems to be hinging on the performance of the mega-cap stocks.
The tone is better than it was before, as the S&P 500 held above 6,700 on the approach to its earlier lows (6,707.51).
Today's session has been governed largely by earnings news and the reaction to earnings results. That will be the case again tomorrow, as there is a huge lineup of companies set to report their quarterly results after today's close, such as Airbnb (ABNB 121.91, -0.59, -0.48%), Block (XYZ 71.86, -1.80, -2.44%), DraftKings (DKNG 28.32, +0.40, +1.43%), Expedia Group (EXPE 219.88, +6.06, +2.84%), MP Materials (MP 52.80, -2.14, -3.89%), The Trade Desk (TTD 46.88, -0.82, -1.73%), and Sweetgreen (SG 6.36, -0.11, -1.70%), to name a few.
Be sure to visit Briefing.com's Earnings Results Calendar for the full rundown of companies due to report their results.
Off the lows
06-Nov-25 15:00 ET
Dow -273.41 at 47037.38, Nasdaq -283.65 at 23216.17, S&P -42.89 at 6753.39
[BRIEFING.COM] The major indices have moved off their lows, with many stocks having pared larger losses after a steady barrage of selling interest during the morning session.
Fed Governor Miran (FOMC voter) stating that he thinks there will be a rate cut in December, CNN reporting that the Senate is moving closer to setting up votes to end the shutdown but that there are still some sticking points to work out, and OpenAI's Sam Altman saying the company expects to be above $20 billion in an annualized revenue run rate this year and growing to hundreds of billions by 2023 provided some headline material to mitigate some of today's negativity.
The Vanguard Mega-Cap Growth ETF (MGK), down as much as 1.9%, is down 1.1%; the Russell 3000 Growth Index, down as much as 1.9%, is down 1.1%; and the Philadelphia Semiconductor Index, down as much as 3.0%, is down 1.4%.
Concurrently, breadth figures have improved but remain negative at the NYSE and Nasdaq.
S&P 500 falls 0.6% as PTC, Coinbase, and Copart lag; Datadog jumps 24% on strong AI-driven results
06-Nov-25 14:30 ET
Dow -245.10 at 47065.69, Nasdaq -266.56 at 23233.26, S&P -41.92 at 6754.36
[BRIEFING.COM] The S&P 500 (-0.62%) is in second place on Thursday afternoon, down about 42 points.
Briefly, S&P 500 constituents PTC (PTC 173.75), Coinbase Global (COIN 301.07, -18.23, -5.71%), and Copart (CPRT 39.90, -2.03, -4.84%) pepper the bottom of the standings. PTC falls as investors react to the sale of its Kepware and ThingWorx IoT businesses to TPG, with strong Q4 results and FY26 guidance overshadowed by concerns over lost growth potential and portfolio narrowing.
Meanwhile, Datadog (DDOG 192.34, +37.36, +24.11%) is today's top performer after posting strong Q3 results and upbeat guidance that topped estimates, driven by solid demand and growing adoption of its new AI observability and security products.
Gold slips as stronger labor data tempers safe-haven demand amid Fed uncertainty
06-Nov-25 14:00 ET
Dow -318.64 at 46992.15, Nasdaq -346.14 at 23153.68, S&P -58.63 at 6737.65
[BRIEFING.COM] The Nasdaq Composite (-1.47%) is in last place on Thursday afternoon, down more than 345 points.
Gold futures settled $1.90 lower (-0.1%) at $3,991/oz, as traders weighed safe-haven demand against uncertainty over the Fed's next policy move. A softer dollar and ongoing U.S. government shutdown concerns offered support, but stronger labor data and cautious Fed commentary limited buying interest.
Meanwhile, the U.S. Dollar Index is down about -0.5% to $99.70.
Lyft posts record Q3, accelerates rideshare growth; Q4 guidance shows momentum (LYFT)
Lyft (LYFT) delivered a robust Q3 2025 performance with substantial upside across profitability and growth metrics. Aggressive execution of product, rewards, and partnership initiatives, especially in underpenetrated and high-value markets, underpinned momentum. The rideshare company also issued bullish Q4 guidance while reaffirming long-term targets, sparking a strong rally in shares.
- LYFT's GAAP EPS of $0.11 isn't comparable to the $0.24 consensus. However, adjusted EBITDA surged 29% yr/yr to a record $138.9 mln, near the high end of prior guidance, driven by record active riders, improved driver utilization, and expanded partnerships.
- Record Gross Bookings of $4.8 bln rose 16% yr/yr, fueled by double-digit rides growth, strong performance in underpenetrated U.S. markets, business and high-value segments, and recent acquisitions.
- Rides grew 15% yr/yr to 248.8 mln, marking the tenth consecutive quarter of double-digit growth, with notable strength from Lyft Silver and peak day records.
- Q4 guidance calls for Gross Bookings of $5.01-$5.13 bln (17-20% yr/yr growth), which is above expectations at the midpoint, and in-line adjusted EBITDA of $135-$145 mln, reflecting confidence in sustained acceleration.
- CEO David Risher reaffirmed long-term targets amid multiple growth catalysts including insurance reforms, global expansion, and new technology deployments.
- Autonomous vehicle progress includes scaling the Waymo partnership with integrated supply management in Nashville, leveraging LYFT’s Flexdrive for high vehicle availability and utilization, and plans for accretive economics and broader market expansion.
Briefing.com Analyst Insight:
LYFT’s Q3 results delivered clear strength in its core rideshare business, powered by network innovation, expanding global TAM via acquisitions, and meaningful traction with B2B, enterprise, and partnership channels. The bounce in margins and profitability underscores continued progress in platform economics, especially as insurance reforms begin to take hold and new business lines scale. The AV plans -- focused on practical, accretive partnerships -- should be watched for their long-term margin impacts but are not yet central to earnings. Competitive risks remain, especially with looming industry transitions and autonomous rollout costs, but LYFT’s multi-pronged growth strategy and global expansion provide several catalysts seem to justify premium sector consideration.
Duolingo Under Pressure After Q3 Results as "Long View" Meets Short-Term Skepticism (DUOL)
Duolingo (DUOL) is under heavy pressure today after reporting its Q3 results last night, trading to a new 52-week low. The company reported EPS of $5.95 compared to $0.49 in the prior year period, though that increase was largely due to a one-time tax benefit. Revenue was above estimates, increasing 41% yr/yr to $271.7 mln. The company also guided FY25 revenue to $1.026-1.032 bln, slightly above expectations.
- Daily active users reached 50.5 mln, up 36% yr/yr, but growth slowed from +49% in Q1 and +40% in Q2. Management said DAUs in September and October were trending around +30% yr/yr.
- Bookings rose 33% yr/yr to $281.9 mln, supported by a 34% increase in paid subscribers to 11.5 mln. Premium tiers like Family and Super drove mid-single-digit ARPU gains, while Max (9% of subs) remains slightly below expectations.
- Chess was a bright spot, becoming the fastest-growing subject with higher retention than language learning, while Asia remained the top growth region, driven by the Luckin Coffee partnership and strong engagement.
- CEO Luis von Ahn said Duolingo is prioritizing teaching quality and user growth over near-term monetization, consistent with its "long view" strategy. Q4 bookings guidance of $329-336 mln (+21-24%) reflects that shift and marks a slowdown from recent quarters.
Briefing.com Analyst Insight
DUOL delivered another strong quarter, with solid engagement, healthy subscriber growth, and new subjects like Chess, Math, and Music continuing to gain traction. The disappointment comes from management's renewed focus on the "long view," prioritizing teaching quality and user growth over near-term monetization. Bookings, which captures all revenue streams, shows a clear slowdown from prior quarters, reflecting that shift, and that move is testing investor patience. Its CEO said the company ultimately aims to build an app capable of teaching "billions of users," highlighting its long-term opportunity. That said, Duolingo now becomes more of a "show-me" story, as investors wait to see if its product-led approach can drive even greater engagement and scale over time.
Qualcomm tops Q4 estimates thanks to premium Android surge, but key risks weigh on shares (QCOM)
Qualcomm (QCOM) delivered a clean 4Q25 beat on core non-GAAP metrics - revenue of $11.3 bln and EPS $3.00, both above the high end of guidance - but reported a GAAP loss of $(2.89) per share after taking a $5.7 bln non-cash charge to write down deferred tax assets tied to new U.S. tax legislation. Management said the tax law will reduce future cash tax payments, leaving cash flow and the company’s operational momentum intact. The company also guided for 1Q26 revenue of $11.8-$12.6 bln and EPS $3.30-$3.50, each of which are ahead of expectations at the midpoints, driven by handset launches and strength in QCT.
- QCOM reported Handset revenue growth of +14% yr/yr, accelerating from +7% in Q3, driven by premium-tier Android demand, flagship launches, and higher content share. The company expects low-teens sequential growth into Q1.
- Auto revenue growth was +17% yr/yr, moderating from 21% in Q3 and 59% in Q2, reflecting normalized program ramps after outsized growth earlier in the year.
- The moderation appears to be a normalization following very strong prior comps (FY25 Automotive grew 36% y/y) and the lapping of earlier outsized ramps.
- IoT revenue growth was +7% yr/yr to $1.8 bln, slowing from +24% in Q3. Strength in industrial/networks and smart-glasses AI were offset by consumer seasonality.
- Management expects IoT to be seasonally softer in the next quarter after outperforming in Q4.
- QCOM announced AI200 (2026) and AI250 (2027) data-center inference chips. A third chip is planned for 2028. QCOM's early partner, HUMAIN, is targeting 200MW in 2026. QCOM is positioning around power-efficient inference in a direct challenge to NVIDIA (NVDA) and Advanced Micro Devices (AMD).
- The company plans a roadmap update and more KPI/performance detail in 1H26.
Briefing.com Analyst Insight
QCOM delivered a solid quarter underneath a tax-driven GAAP noise event, with beats on core metrics, upbeat guidance, and momentum in premium handsets. Management’s guidance for 1Q26 (midpoints above consensus) and the continued premium-tier Android momentum suggest near-term upside, while Automotive and IoT remain strategic multi-year growth engines. Auto and IoT growth did slow in Q4 but remain structurally positive and tied to long-cycle design wins. The market’s caution reflects timing risk in handset and auto ramps and the long road to scale in data-center AI, where execution vs. NVDA/AMD will be key. Still, the quarter reinforces QCOM’s premium handset leadership and emerging AI/data-center optionality. In our view, this remains a fundamentally strong story with near-term operational tailwinds and long-term catalysts, despite natural execution risk.
DoorDash Hits a Speed Bump: Strong Q3 Growth Can’t Deliver a Rally (DASH)
DoorDash (DASH -15%) is tumbling despite posting strong Q3 results that topped expectations. Revenue rose 27.3% yr/yr to $3.45 bln, its fastest growth since 2Q23. Total orders climbed 21% yr/yr to 776 mln, while Marketplace GOV increased 25% yr/yr to $25.0 bln, exceeding guidance of $24.2--24.7 bln.
- Adjusted EBITDA grew 42% yr/yr to $754 mln, near the high end of guidance but short of a Q2-style beat. Q4 adjusted EBITDA guidance of $710--810 mln implies stable margins.
- US restaurant GOV growth accelerated to its best pace in over three years, supported by execution and reinvestment.
- New Verticals (grocery, retail) saw rising engagement and new partnerships.
- International operations hit record unit economics, though order growth moderated slightly. DASH closed its £2.8 bln Deliveroo acquisition on October 2, which should lift Q4 results.
- The company plans hundreds of millions in new tech investments for 2026 to unify DoorDash, Deliveroo, and Wolt into a single AI-native global platform, adding long-term efficiency but near-term cost pressure.
Briefing.com Analyst Insight:
DoorDash's Q3 report paints a picture of strong growth and operational progress, yet the stock's decline reflects investor unease about future profitability. The upside in GOV and order trends shows that the core business remains healthy, but the lack of a Q3 EBITDA beat and rising 2026 tech spend cloud the near-term margin outlook. The Deliveroo integration should bring meaningful scale benefits, though execution risk is nontrivial. With shares trading at a premium EV/revenue multiple, investors appear reluctant to look past elevated investment spending and international deceleration. Overall, we view DASH as a solid growth story with long-term promise—but margins could see some pressure in 2026 on the new tech spend.
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.
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