Let's bring in Kevin Green, senior markets correspondent right away to help set up the action today. All right, KG. So markets are ready for the marquee event today and I wonder if that can shift direction when you think about the tech trade recently.Nvidia, >> I mean it potentially could. I mean we are expecting around a 7% move either to the upside or downside when it comes to Nvidia and I think the conference call is really going to drive the market. Where do they actually still see growth.Where are they ...

Core Viewpoint - Small-cap biotech stocks are experiencing a resurgence, driven by market rotation and improving technical indicators, with healthcare emerging as a constructive sector [2][4] Industry Overview - The Health Care Select Sector SPDR Fund (XLV) has increased by 11.09% in 2025, while the iShares Biotechnology ETF has gained approximately 25% year-to-date [2][3] - Analysts suggest that capital is flowing out of high-flying AI stocks into more attractive healthcare and biotech opportunities [3][4] M&A Activity - Increased mergers and acquisitions (M&A) activity in the biotech sector has been noted, with significant deals including Pfizer's $10 billion acquisition of Metsera and Roche's $3.5 billion acquisition of 89bio [4][5] - This M&A activity is expected to bolster potential upside for both large-cap and small-to-mid-cap biotech companies [4] Methodology for Stock Selection - The list of the best small-cap biotech stocks was curated based on companies with market capitalizations between $300 million and $2 billion, focusing on those with the highest upside potential as of November 10, 2025 [8] Company Highlights - **Viridian Therapeutics, Inc. (NASDAQ:VRDN)**: - Upside potential of 36.71% with a cash position of $888 million and key patient enrollments in late-stage clinical studies [10][11][12] - **UroGen Pharma Ltd. (NASDAQ:URGN)**: - Upside potential of 49.17%, reporting a significant increase in demand revenue and a cash position of $127.4 million [14][15][16] - **Liquidia Corporation (NASDAQ:LQDA)**: - Upside potential of 55.49%, with YUTREPIA achieving profitability earlier than expected and a cash position of $157.5 million [19][20][22]

Core Insights - The market is experiencing a rotation, with pressure on mega-cap stocks while sectors like healthcare and financials are performing well [1][3][5] - Since early August, the broader market has shown signs of pressure, masking the improving breadth of the market [2][4] - The S&P 500 is up 16% for the year, with a notable increase of 37% since April 8, indicating a stealth rally [5][6] Sector Performance - Healthcare has surged significantly, while financials have also shown strong performance [3][5] - Growth sectors such as technology, communication services, and consumer discretionary are underperforming compared to other sectors [3][6] - The equal-weighted index is gaining traction, providing a clearer picture of market performance beyond large-cap stocks [4][5] Small Cap Dynamics - Non-profitable small-cap names have dominated the market, leading to profit-taking in these areas [6][7] - Traditional small-cap value names have struggled, highlighting a shift in market dynamics [6][7] Technology Sector Insights - The technology sector is seeing a changing of the guard, with notable winners excluding the major "MAG 7" names [7][8] - Cisco is highlighted as a strong performer within the technology space, indicating potential investment opportunities [8]

Core Viewpoint - US stocks experienced a decline on Thursday as the recent market rotation lost momentum, despite the Dow reaching new highs [1] Group 1: Market Performance - The Dow Jones Industrial Average fell approximately 94 points, translating to a decrease of 0.2% [1] - The S&P index also showed signs of decline, indicating a broader market pullback [1]

Market Overview - The market is experiencing a rotation, with value stocks outperforming cheaper stocks, particularly in healthcare and financial sectors [1] - The Dow has closed above 48,000 for the first time, marking the 1,615th all-time high [2][3] - There is a notable increase in market breadth, with more stocks in the S&P 500 above their 20-day moving average compared to the previous week [3] Sector Performance - Seven sectors have shown positive performance, with eight sectors outperforming the S&P 500 [4] - The technology sector is currently trading at 23 times forward earnings, indicating it is the most expensive sector, while other sectors like financials and industrials are trading at much lower valuations [6][7] International Markets - European financial banks are reaching all-time highs, suggesting a positive outlook for international markets [5] - There is a belief that if the U.S. tech stocks stall, investors may need to consider international markets for better opportunities [10] Investor Sentiment - Current consumer confidence levels are reportedly lower than during the Great Financial Crisis, indicating a cautious sentiment among consumers [11] - Despite concerns, there are still reasons to believe that the bull market is not over, supported by a dovish Federal Reserve and positive earnings reports [12]

Market Overview - The market is currently retesting important support levels, particularly the 50-day moving average, which has shown signs of intraday rallies following recent probing [2][5] - There is a notable weakness in market breadth, with a decline in the number of new highs and stocks above their 40-week or 200-day moving averages [2][5] Sector Rotation - A rotation is occurring in the market, moving away from larger tech stocks towards more traditional sectors like consumer goods, as evidenced by the performance of companies like Nike and McDonald's [3][5] - The AI trade, which has been a significant driver of market performance, is seeing some profit-taking, leading to a potential shift towards sectors that have been out of favor [4][5] Healthcare Sector - The healthcare sector is showing signs of recovery, with several companies like Exact Sciences, Eli Lilly, and Merck experiencing downtrend reversals [7][10] - Biotech stocks are also performing well, with the IBB index reaching record highs and companies like Amgen and Gilead showing significant improvements [9][10][11] Investment Opportunities - There is a constructive outlook for biotech and healthcare, suggesting that these sectors may be good places to allocate capital as they show signs of improvement and less risk compared to tech stocks [10][11]

Market Overview - The market is experiencing poor breadth, with concerns about high valuations, particularly in tech and AI-related stocks [2][4] - Liquidity is decreasing in the market, contributing to profit-taking across various sectors, especially in technology [2][3] Valuation Metrics - The S&P 500 is trading at 23 times forward earnings estimates, above its 5-year average of 20 times, while the NASDAQ 100 is at 28 times compared to 19 times in 2022 [6] - An equal-weighted S&P 500 index is trading at a more than 25% discount to the standard S&P 500 index, indicating potential for rotation if market conditions change [7] Sector Performance - Consumer cyclicals are under scrutiny, with the potential for them to benefit from market rotation, but they need to demonstrate stronger performance [8] - Industrial sectors have shown flat performance over the past 10 to 11 months, indicating a lack of clear leadership in the market [9] Earnings Reports - Amgen reported a 12% growth in product sales, driven by a 14% increase in volume, although offset by a 4% decrease in net selling price [11] - The company raised its full-year revenue and EPS guidance, reflecting positive performance despite initial stock fluctuations [11] Small Cap Stocks - Small-cap stocks have not participated in the recent tech-driven market rally and are more exposed to temporary disruptions from business shutdowns [12][14] - Since October, larger market-cap stocks have outperformed smaller-cap stocks across most sectors, indicating a divergence in performance based on market capitalization [14]

Core Viewpoint - There is a subtle rotation occurring from more offensive sectors to more defensive ones, indicating a shift in market sentiment [2]. Group 1 - The rotation suggests that investors are becoming more cautious and are reallocating their investments towards sectors that are considered safer [2]. - This trend may reflect broader economic concerns or a response to recent market volatility [2].

Core Insights - The market is experiencing a rotation from speculative stocks to companies with strong fundamentals, as consumer staples, healthcare, and tech sectors outperform [1] - Honeywell's stock rose 7% following a strong quarterly earnings report, with organic revenue and adjusted earnings per share exceeding guidance [1] - GE Vernova is recovering after a significant drop, with positive sentiment around its nuclear franchise and CEO's engagement with OpenAI [1] Company Summaries - **Honeywell**: The company reported strong quarterly earnings, with all key metrics meeting or exceeding the higher end of its guidance. The upcoming spin-off of its advanced materials business, Solstice, is expected to reveal more value [1] - **GE Vernova**: After a decline of over 10%, the stock is rebounding, driven by positive perceptions of its nuclear business and strategic connections being made by its CEO with major tech players [1] Stock Coverage - Stocks mentioned in the rapid-fire segment include Tesla Inc., Lam Research, IBM, United Rentals, and American Airlines, indicating a broad interest in various sectors [1]

Market Overview - US stocks are experiencing a positive reaction following the Federal Reserve's first interest rate cut of the year, with major indexes reaching all-time highs. The S&P 500 is up 0.72%, the Dow is up 0.67%, and the Nasdaq has increased by 1.49% this week [1][2]. Federal Reserve Actions - The Federal Reserve's recent 25-basis point cut was the first since December of the previous year, with only one dissenting vote for a larger cut. Fed Chair Jerome Powell described this as a "risk management cut" in response to labor market softness, indicating potential for two more cuts this year [2][3]. Historical Context - Historically, the S&P 500 tends to rally after rate cuts following a long pause, with an average gain of about 15% over 12 months based on data since 1976. The current easing cycle began after the last rate hike in July 2023 [4]. Small-Cap Performance - Small-cap stocks are showing strong performance, with the Russell 2000 index recently hitting a new all-time high after a period of stagnation since November 2021. The forward P/E ratio of small-caps is at its lowest relative to large-caps since 1999, indicating potential for further growth [5][6]. Stocks to Watch - Credo Technology Group (CRDO) has seen a significant increase in its stock price, surging over 150% in 2025, and recently reported fiscal first-quarter earnings of 52 cents per share, exceeding estimates by 48.6% [8][9]. - IonQ (IONQ), a quantum computing company, has also experienced stock growth after acquiring Oxford Ionics, with expected revenue growth of 115% to $92.7 million this year, despite operating at a net loss [12][13]. Market Sentiment - The current market trend remains strong, with bullish sentiment not yet reaching cautionary levels, suggesting potential for further upside. Many individual stocks are outperforming, indicating a healthy market environment [15].