Market Overview - U.S. stock futures showed mixed performance following a mixed close on Thursday, with major indices experiencing fluctuations [1] - The Dow Jones increased by over 600 points, indicating a rotation out of expensive tech stocks, while overall risk appetite remained strong after the Federal Reserve's third consecutive interest-rate cut [1] Economic Indicators - The 10-year Treasury bond yielded 4.17%, while the two-year bond was at 3.53%, with a 73.4% likelihood of the Federal Reserve maintaining current interest rates [2] Futures Performance - Dow Jones futures increased by 0.17%, while S&P 500 and Nasdaq 100 futures decreased by 0.19% and 0.54%, respectively [3] Stocks in Focus - Costco Wholesale Corp. reported better-than-expected financial results for Q1 of fiscal 2026 but saw a premarket decline of 0.52% [7] - Broadcom Inc. dropped 5.18% due to disappointing guidance regarding gross margins and a higher tax rate for fiscal 2026 [7] - Lululemon Athletica Inc. surged 9.49% after exceeding Q3 expectations and raising full-year guidance [16] - RH experienced a 4.26% increase despite mixed Q3 results, reporting earnings of $1.71 per share, missing estimates [16] - Tilray Brands Inc. rose 28.11% following the announcement of its new product line [16] Analyst Insights - Scott Wren from Wells Fargo anticipates moderate growth and easing price pressures in the U.S. economy, projecting S&P 500 earnings growth of slightly over 11% [12] - Wren recommends active management and suggests reallocating funds from Communication Services and Information Technology to sectors like Financials, Industrials, and Utilities, which are expected to benefit from AI capital expenditures [13][14]

Market Overview - U.S. stock futures showed mixed performance following a mixed close on Thursday, with major indices experiencing fluctuations [1][3] - The Dow Jones increased by over 600 points, indicating a rotation out of expensive tech stocks, while overall risk appetite remained strong after the Federal Reserve's third consecutive interest-rate cut [1][2] Economic Indicators - The 10-year Treasury bond yielded 4.17%, while the two-year bond was at 3.53%, with a 73.4% likelihood of the Federal Reserve maintaining current interest rates [2] Company Performance - **Costco Wholesale Corp. (NASDAQ:COST)**: Experienced a 0.52% decline in premarket trading despite better-than-expected financial results for Q1 fiscal 2026, maintaining a weaker price trend [7] - **Broadcom Inc. (NASDAQ:AVGO)**: Dropped 5.18% due to disappointing guidance regarding shrinking gross margins and a higher tax rate for fiscal 2026, but maintains a stronger price trend overall [7] - **Lululemon Athletica Inc. (NASDAQ:LULU)**: Jumped 9.49% after exceeding Q3 expectations and raising full-year guidance, despite a weaker long-term price trend [16] - **RH (NYSE:RH)**: Increased by 4.26% despite mixed Q3 results, reporting earnings of $1.71 per share, missing estimates, but revenue of $883.81 million beat expectations [16] - **Tilray Brands Inc. (NASDAQ:TLRY)**: Surged 28.11% following the announcement of a new product line, maintaining a stronger long-term price trend [16] Sector Insights - Analysts suggest a rotation from Communication Services and Information Technology into sectors with more upside potential, specifically highlighting Financials, Industrials, and Utilities as favored sectors [12][14] - The anticipated GDP growth and moderating inflation are expected to create a favorable environment for risk assets, particularly equities [12]

Core Insights - Lululemon Athletica Inc reported better-than-expected third-quarter results, with earnings of $2.59 per share, surpassing analyst estimates of $2.27 by 14.15% [1] - The company's quarterly revenue reached $2.57 billion, exceeding the Street estimate of $2.48 billion and showing an increase from $2.4 billion in the same period last year [1] - Following the positive earnings report, Lululemon raised its full-year guidance and announced a CEO succession plan along with an increase in its share buyback program [2] Stock Performance - Lululemon shares rose 9% to $203.82 in pre-market trading after the earnings announcement [2] - Other notable stock movements included cbdMD, Inc. gaining 57.6% and Paranovus Entertainment Technology Ltd. surging 52.2% in pre-market trading [5]