Market Overview - The tech sector is facing challenges due to significant capital expenditures in AI infrastructure, leading to declines in the Nasdaq and S&P 500 by -0.25% and -0.29% respectively [1] - Over $380 billion has been spent on AI infrastructure, raising concerns about overspending in the sector [2] Company Performance - AMD's stock rose by +9% after CEO Lisa Su projected a revenue growth of +35% annually for the next three to five years, alleviating some fears regarding AI overspending [2] - Cisco Systems reported fiscal Q1 earnings of $1.00 per share, exceeding estimates by 2 cents and showing a year-over-year improvement from 91 cents per share. Revenues reached $14.88 billion, surpassing the estimated $14.78 billion and increasing by over $1 billion year-over-year [5][6] - Cisco has maintained a streak of earnings beats, with a trailing 4-quarter average earnings beat of +3.86%. The company raised guidance for both earnings and revenues for the next quarter and the full fiscal year, resulting in a +6% increase in shares during late trading [6] Sector Trends - Speculative AI companies like D-Wave and IonQ saw declines of -8.9% and -6.8% respectively, influenced by Rigetti Computing's -9.9% drop following a revenue miss in its Q3 report [3] - The Dow Jones Industrial Average closed at an all-time high of 48,249, up +322 points (+0.67%), with major banks benefiting from this trend, including Goldman Sachs which gained +3.5% due to a $110 billion move to take Electronic Arts private [4] Upcoming Earnings - Disney and Applied Materials are expected to report fiscal Q4 results, with Disney's earnings projected to decline by -9.65% despite a +1.37% revenue growth, while AMAT is anticipated to see a -9% drop in earnings and a -4.93% decrease in revenue [8]

In the absence of official data, investors have turned to alternative indicators, including a report from ADP released on Tuesday. That report showed that the private sector lost an average of 11,250 jobs per week during the four weeks ending October 25th. The figures suggest that the labor market weakened in the latter half of October compared with the earlier part of the month. Separately, economists at Goldman Sachs estimated that U.S. payrolls fell by 50,000 in October after accounting for employees par ...

Market Overview - U.S. equity markets are expected to open strongly due to improved investor sentiment following a bipartisan deal in the Senate to end the government shutdown [1][3] - Major index futures are showing gains, with S&P 500 futures up approximately 0.7% to 0.9%, Nasdaq 100 futures up 1.2% to 1.5%, and Dow Jones futures up 0.1% to 0.4% [2][4] Economic Impact - The government shutdown, lasting 40 days, has created significant economic uncertainty, delaying crucial data releases and impacting various sectors [3] - The resolution of the shutdown is anticipated to lead to the release of delayed economic reports, including the Consumer Price Index (CPI), initial jobless claims, retail sales, and Producer Price Index (PPI) for October [5] Company Developments - Nvidia (NVDA) saw a 7% stock decline last week but is expected to recover as optimism returns to the tech sector, with CEO Jensen Huang requesting TSMC to increase chip supplies for AI technology [7] - Apple (AAPL) recently surpassed a $4 trillion market value, indicating the strength of major tech players [11] - Pfizer (PFE) has agreed to acquire Metsera for up to $10 billion, winning a bidding war against Novo Nordisk [11] - CoreWeave ([CRWV]) is set to release earnings today, with shares having more than doubled since going public, driven by deals with Nvidia and Meta [11] - Toyota Motor Corporation (TM) unveiled a new Battery Electric Vehicle (BEV) model, part of its strategy for carbon neutrality [11] - Visa (V) and Mastercard (MA) are nearing a deal with merchants that could reshape the credit card rewards landscape [11] - UPS (UPS) and FedEx (FDX) may face operational impacts due to the FAA grounding MD-11 planes following a recent crash [11] - Diageo (DEO) appointed former Tesco boss Dave Lewis as its new chief [11] - Nomad Foods (NOMD) reported lower revenue and earnings in Q3 2025, citing ongoing market headwinds [11] Upcoming Events - The week includes important economic updates, such as the German Harmonized Index of Consumer Prices (HICP) and Eurozone's Q3 GDP [6] - High-profile earnings reports are expected from companies like Cisco (CSCO), Applied Materials (AMAT), Walt Disney (DIS), and others [8]

Core Insights - Palantir Technologies has demonstrated strong quarterly results, surpassing expectations and raising its revenue guidance significantly for the year [1][4] - The company has achieved a remarkable 152% return this year, leveraging artificial intelligence to enhance its offerings [2] - Palantir's third-quarter revenue reached $1.18 billion, exceeding analyst expectations of $1.09 billion, with adjusted earnings per share of $0.21, above the estimated $0.17 [3] Financial Performance - Palantir's revenue guidance for the full year has been raised to approximately $4.4 billion, up from a previous estimate of $4.1 billion [4] - The company's revenue grew by 63% year-over-year in the last quarter, an acceleration from the 48% growth in the previous quarter [4] - In comparison, Nvidia's growth rate was 56% in its last earnings report, down from 69% a quarter earlier, indicating Palantir's growth is outpacing Nvidia's [5] Market Position and Valuation - Palantir's market capitalization is around $450 billion, with a price-to-earnings ratio of 430, significantly higher than Nvidia's market cap of $4.8 trillion and a price-to-earnings ratio of 56 [7] - Despite Palantir's impressive growth, its high valuation raises concerns about its sustainability as an investment compared to Nvidia, which is viewed as a safer long-term buy [10][11] - Hedge fund manager Michael Burry's put options on Palantir suggest skepticism about its valuation, indicating potential concerns about a price decline [8][9]

Core Earnings Reports - Walt Disney is set to report earnings on Thursday, following the launch of its ESPN sports app and plans to acquire the NFL network [4] - CoreWeave, an AI data center firm, is expected to report earnings on Monday, with shares having more than doubled since going public earlier this year, driven by partnerships with Nvidia and Meta [3] - Cisco's earnings report on Wednesday comes after the company nearly doubled its AI sales target in the previous quarter [4] - Applied Materials is scheduled to report on Thursday, facing sales restrictions to China [4] Economic Indicators - The small business optimism survey for October will provide insights into how economic pressures are affecting small firms [2] - The monthly federal budget report from the Treasury Department is anticipated to reveal revenue from tariffs [2] - Key economic data releases, including the Consumer Price Index and retail sales for October, are delayed due to the government shutdown [10] Market Context - The trading week will be shortened due to the Veterans Day holiday, with bond markets, banks, and government offices closed on Tuesday, while stock markets remain open [1] - Investors are focusing on corporate earnings reports amid the government shutdown, which is delaying several key economic reports [1][2]

Group 1 - Halozyme Therapeutics (HALO) stock improved its Relative Strength (RS) Rating from 68 to 73, indicating a positive trend in market leadership [2] - Incyte stock declined despite exceeding third-quarter forecasts, attributed to a conservative 2025 outlook that did not meet Wall Street's expectations [3] Group 2 - Taiwan Semiconductor Manufacturing Company (TSMC) is highlighted as a leading player in the chipmaking industry, alongside other notable tech stocks that are featured on best stock lists [5] - Several companies, including Xencor, Scholar Rock Holding, Ginkgo Bioworks Holdings, Cytokinetics, and Oric Pharmaceuticals, received upgrades in their Relative Strength Ratings, reflecting improved market performance [5]

Group 1: Market Sentiment and Speculation - Concerns about speculation in the AI sector are rising, with Goldman Sachs CEO David Solomon warning that much of the capital invested in AI may not yield returns [1][6] - Hedge fund manager Michael Burry has taken bearish positions against Nvidia and Palantir, two leading companies in the AI market, indicating a belief that these stocks may be overvalued [3][5] Group 2: Company Performance - Palantir's shares have increased by 260% over the past year, despite a recent pullback following earnings [2] - Nvidia has seen its stock price surge by 41% year-to-date and an impressive 1,240% over the past five years, briefly achieving a $5 trillion valuation [2] Group 3: Investment Strategies - A put option allows investors to sell a stock at a predetermined price, typically used when expecting a decline in stock price; Scion Asset Management disclosed put options on 1 million shares of Nvidia and 5 million shares of Palantir [3] - The notional value of the put positions held by Scion is nearly $1.1 billion, reflecting significant bearish sentiment towards these stocks [1][3]

BREAKING: Stocks Fall Sharply For Week, But Bulls Make Stand Friday Investors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience. Interactive Brokers (IBKR) stock is in a 5% buy zone in a cup base after robustly outperforming the broader stock market this year, with the online trading platform attracting more clients, fueling profit and sales growth. The S&P 500 stock is Thursday's selection for IBD 50 Stocks To Watc ...

What Happened? Shares of data collaboration platform LiveRamp (NYSE:RAMP) jumped 8.3% in the morning session after the company reported strong third-quarter financial results that surpassed analyst expectations and raised its full-year revenue forecast. For the quarter, LiveRamp's total revenue grew 7.7% year-over-year to $199.8 million, beating Wall Street's projections. The company also posted an adjusted earnings per share of $0.55, which was 13.6% higher than analysts had anticipated. Looking ahead, L ...

Market Overview - U.S. stock futures declined on Thursday following a positive close on Wednesday, with major benchmark indices showing lower futures [1] - The 10-year Treasury bond yielded 4.14%, while the two-year bond was at 3.61%, with a 67.3% likelihood of the Federal Reserve cutting interest rates in December [2] - Major indices' futures changes included Dow Jones -0.06%, S&P 500 -0.02%, Nasdaq 100 -0.06%, and Russell 2000 -0.19% [2] Company Performance - Coherent Corp. (NYSE:COHR) saw a significant increase of 14.31% after reporting revenue of $1.58 billion, a 17% year-over-year growth, and earnings of $1.16 per share compared to $0.67 from the same quarter last year [5] - Airbnb Inc. (NASDAQ:ABNB) rose 0.041% in premarket trading ahead of its earnings report, with expectations of $2.34 earnings per share on revenue of $4.08 billion [6] - Apple Inc. (NASDAQ:AAPL) fell 0.27% after news of a deal to pay Alphabet Inc. approximately $1 billion yearly for AI technology to enhance Siri [6] - Marvell Technology Inc. (NASDAQ:MRVL) surged 8.55% amid reports of SoftBank Group exploring a potential takeover of the company [6] Sector Insights - The sectors with the largest gains included communication services, consumer discretionary, and materials, while consumer staples and information technology sectors closed lower [8] - Applovin Corp. (NASDAQ:APP) jumped 6.17% after reporting revenue of $1.41 billion, which missed analyst estimates, but earnings of $2.45 per share exceeded expectations [13] Analyst Insights - Sean Peche, founder of Ranmore Fund Management, expressed concerns about the stock market being overvalued, drawing parallels to Japan's late-1980s bubble, citing high valuations and euphoria driven by U.S. tech dominance [10][11] - Peche highlighted that the Magnificent 7 trades at 58x free cash flow, which worsens to 77x when accounting for stock-based compensation, suggesting a need for caution among investors [11][12]