Early Look

Wednesday, October 7, 2026

Another day, another record for the S&P 500 and Nasdaq Composite on Tuesday as strength in technology (XLK) continues to pave the way for strong market results, but stock index futures were lower on Wednesday as Treasury yields resume their upward march and traders looked forward to the release of the Federal Reserve's latest meeting minutes later in the day. The S&P 500 registered its 28^th record closing high of the year its first record closing since August 13^th, while the Nasdaq posted its 24^th record closing high of the year. The blue-chip Dow remains about 5% below its August 5 record closing high. Futures are lower as the 10-year Treasury yield jumps +6 bps to 5.32%, on track for its highest close since April 2002, while the 30-year rose +6 bps to 5.70%, its highest since May 2002. The move comes as investors await the $39 billion 10-year Treasury auction and Fed minutes. In Asian markets, The Nikkei Index fell -648 points to 70,035, the Shanghai Index remained closed for Golden Week holiday and the Hang Seng Index fell -150 points to 24,130. In Europe, the German DAX is down -320 points to 25,129, while the FTSE 100 slides -66 points to 10,475. A fairly light day of economic data with no major movers outside of a $39B 10-year Treasury auction later in the afternoon, while earnings seasons gets underway next week. The S&P 500, while making new highs, has been stuck in a relatively tight trading range for the last month, pressured by stubbornly high Treasury yields and energy prices, but boosted by AI stocks.

• The Dow Jones Industrial Average rose 253.38 points, or 0.49%, to 51,521.28
• The Nasdaq Composite gained 122.48 points, or 0.45%, to 27,599.79
• The Russell 2000 Index declined -16.84 points, or 0.59% to 2,830.30

• 10:30 AM ET                 Weekly DOE Inventory Data
• 1:00 PM ET US Treasury to sell $39B in 10-year notes
• 3:00 PM ET                    Consumer Credit for August

• Earnings After the Close: APLD LEVI RELL RGP

• UK house prices were unchanged year-on-year in September 2026, following a 0.4% decline in August.
• France's trade deficit narrows to €6.1B in August as imports fall faster than exports.

• Honda (HMC) delays next-gen CR-V hybrid production several months in US, Canada; Overhauled SUV model's mass production pushed back to at least April 2027.

• Shell (SHEL) said that Q3 upstream exploration well write-offs are expected to total about $300M, while upstream production is forecast at 1.735 million to 1.835 million barrels of oil equivalent a day; said Q3 integrated gas production was expected to be about 74k-780K barrels of oil equivalent per day, compared with a previously expected range of 570K-630K.
• Sigma Lithium (SGML) resumes operations after court upholds environmental licenses, reaffirms 330,000t 2027 production target. Federal appeals court ruling enables full resumption of mining-industrial operations.
• TechnipFMC (FTI) awarded flexibles contract by Petrobras (PBR) in deal contract valued between $75M and $250M included in Q3 2026 inbound orders; awarded significant subsea contract by Petrobras for flexible pipe systems offshore Brazil.
• Worthington Steel (WS) Q1 adj. EPS $0.57 vs. est. $0.92; sales $2.73B vs. est. $3.14B; adj. EBIT $78.5Mm; operating Income $56.0Mm.
• ZIM Integrated Shipping (ZIM) raised its guidance for the year reflecting continued strong market demand and favorable momentum in freight rates; now expects to generate Adjusted EBITDA of between $2.7B-$3.0B vs, prior view $2.0B-$2.4B and adj EBIT of $1.4B-$1.7B vs. prior $700M-$1.1B.

• Byline Bancorp, Inc. (BY) and Illinois State Bancorp, Inc. announce definitive merger agreement in a deal valued at $87.90M in cash and stock; Byline to pay $5.10M cash for outstanding stock options settlement and to issue 1.4M shares and $28.90M cash to Illinois State Bancorp shareholders.
• Figure Technology Solutions (FIGR) said September Consumer Loan Marketplace Volume reached $5.119B in Q3 2026, landing at the high end of the company’s previously issued guidance range of $4.8B to $5.2B. Volume surged 107% Y/Y (up from $2.469B in Q3 2025) and 20% Q/Q (up from $4.259B in Q2 2026). For September alone, volume reached $1.783B, up 9% M/M and 104% Y/Y.

• Caribou Biosciences (CRBU) shares tumble as announces strategic alternatives review, discontinues Vispa-Cel and CB-011 CAR-T Programs, cuts workforce; had $113.8M cash at June 30; was unable to line up investor financing to pay for Ph3 studies of its allo Car-T cancer programs.
• Humana (HUM) was upgraded to Overweight from Neutral at Cantor Fitzgerald.
• Neogen Corp. (NEOG) Q1 adj. EPS $0.08 vs. est. ($0.07); revenue $222.8Mm vs. est. $208.2Mm; adj. EBITDA $41.6Mm vs est $36.67Mm; adj. EBITDA margin 18.7%; FY revenue guidance $885Mm-$890Mm vs. est. $883.2Mm; FY adj. EBITDA guidance $181Mm-$183Mm vs. est. $179.2Mm

• Microsoft (MSFT) will unveil on Wednesday a new laptop powered by Nvidia's (NVDA) chips, seeking to turn Windows into a platform for AI agents to handle tasks such as writing code without having to access the cloud, analysts said, per Reuters.
• NetApp (NTAP) upgraded to Outperform from In Line at Evercore ISI and raised tgt to $300 from $210 saying guidance for about 17% growth appears conservative given it implies a steep second half deceleration to 9%.
• Penguin Solutions (PENG) Q4 EPS $1.00 vs. consensus $0.77 and sales $566.7M vs. est. $521M; Q4 adj operating income $89.8M vs. est. $69M;  guides FY adj EPS $4.45 vs. est. $3.39; appoints Stephen Cumming as Senior Vice Pres and Chief Financial Officer to support accelerated growth.

Mid-Morning Look

Wednesday, October 07, 2026

U.S. stocks opens lower, retreating from record territory for the S&P 500 index (SPX) and Nasdaq Composite as oil and bond yields jump again. The yield on 10-yr U.S. Treasury notes climbs to highest since 2002 at 5.36% and oil prices resume their upward momentum ahead of this afternoons 10-year Treasury auction at 1:00 pm and the Fed Minutes from prior FOMC policy meeting at 2:00 pm. European markets pressured as French government bonds came under renewed pressure as budget talks remain in focus. The 10-year French OAT yield rose almost 14 basis points to 4.889%, while the 10-year German Bund yield was up 3.3 basis points to 3.507%. Brent crude oil prices rose over 1% back above $102 a barrel while WTI prices hovered around $90 after Houthi militants attacked Saudi airports. In macro headlines overnight, VP Vance said Iran must cut nuclear enrichment capacity to end war; unclear how Tehran makes decisions; US remains open to a deal but wants concrete nuclear concessions; we're not going to trade words for actions. The dollar continued to strengthen as oil prices rose, prompting a fall in bitcoin and gold and silver prices. Dollar index +0.5% to 102.35 as Euro extends declines -0.64% to 1.185 (lowest levels since mid-May). The euro is not only weaker versus the dollar, but against all its G10 peers. Investors are concerned about France’s budget deficit and the overall state of public finances. Seeing the biggest declines early in financials/banks,  gold/silver miners, housing stocks on the spike in yields.

• Beverage sector: STZ reported Q2 adj. EPS $3.74 above est. $3.56 n better sales $2.63B vs. est. $2.54B, and guided FY adj. EPS guidance $11.20-$11.90 vs est $11.71; Q2 Beer net sales rose over 5% on 5.5% shipment volume growth, while beer operating margin fell 160 basis points to 39.0%; ABEV downgraded to Underperform at Bank America noting shares went up by 3% since the first round of Brazil's presidential election, vs Ibovespa +7.6%, but the firm sees a less favorable setup for Ambev given its limited leverage to lower rates, muted earnings momentum amid weak beer trends.
• Auto Retailers: StoneX said they were trimming Q3 estimates across the group for auto retailers (GPI, LAD, PAG) to reflect front-end GPU pressure and a slower aftersales trajectory. However, with the group having de-rated toward the low end of its historical range, they think the current setup more than discounts those headwinds — the structural earnings base in parts and service, F&I and captive finance is intact, and what we see forming is dispersion by franchise mix rather than a sector-wide downcycle. UBS also cuts 2027 estimates across the franchise dealers (ABG, GPI, PAG, LAD, CARG, CARS) by a mid-single-digit percentage on slower parts & service growth and higher floor-plan interest expense.
• Transport sector: Citigroup upgraded shares of XPO to Buy in Transports while previewed the sector into Q3 earnings saying recent declines across Transports have created a more favorable risk-reward setup into Q3 earnings, even as macro risks (higher fuel prices, rising interest rates) seem likely to keep many investors cautious. Among the biggest stories in transports over the past month was JBHT's mid-September profit warning; top picks CHRW, SAIA, TFII, GXO and Parcels (UPS). ODFL was upgraded to Peer Perform from Underperform at Wolfe Research noting that the stock has pulled back by 28% since early June and says the stock has historically outperformed materially following similarly large pullbacks, and no longer sees absolute downside for Old Dominion.

• LPCN +20%; after Health Canada approves Tlando for testosterone replacement therapy, with partner Verity Pharma set to launch the drug in Canada by end of 2026.
• NTAP +3%; was upgraded to Outperform from In Line at Evercore ISI and raised tgt to $300 from $210 saying guidance for about 17% growth appears conservative given it implies a steep second half deceleration to 9%.
• PENG +15%; after raising its FY27 net sales outlook to about $2.43B at midpoint of range vs prior forecast of about $2.17B at midpoint; FY revenue growth expected at 40% YoY, plus/minus 10% and guided FY27 adj EPS at $4.45, plus or minus $0.70 vs. est. $3.38 following Q4 top and bottom line beats.
• VLO +2%; along with gains in other refiners MPC, PBF, DINO, DK with many at or near all-time highs again amid rising energy costs, crack spreads.
• ZIM +3%; raised its guidance for the year reflecting continued strong market demand and favorable momentum in freight rates; now expects to generate Adjusted EBITDA of between $2.7B-$3.0B vs, prior view $2.0B-$2.4B and adj EBIT of $1.4B-$1.7B vs. prior $700M-$1.1B.

• BLDR -4%; was downgraded to Sector Perform from Outperform with a $62 PT (from $88) at RBC Capital on risk to Q4 and FY'27 estimates driven by volume weakness, gross margin pressure, and fierce competitive dynamics.
• BULL -19%; after CNBC reported that a congressional committee found the digital investment platform's ties to China's government pose a national-security threat to U.S. finance. The bipartisan House Select Committee on China found a gap between how Webull markets itself as an American company versus how it is actually controlled.
• CRBU -49%; after announced it is exploring strategic alternatives and plans to discontinue further development of both of its allogeneic Car-T programs Vispa-cel (anti-CD19 for LBCL) and Cb-011 (anti-BCMA, R/r MM) citing challenging financing environment for allogeneic Car-T cell Therapies and lack of capital availability as reasons for today's decision
• FCEL -14%; after appoints Matthew Latino as CFO, who succeeds Michael Bishop as part of a planned leadership transition. Latino joins FCEL from water technology firm XYL, where he served as senior vice president of finance and segment CFO for its Measurement & Control Solutions business.
• OC -5%; was downgraded to Sector Perform from Outperform with a $127 PT (from $172) at RBC Capital on worsening cost backdrop and downside risk to Q4 and 1H'27 estimates following another weak storm season; was also downgraded to Sell from Hold with a $106 PT at Vertical Research Partners.
• WS -8%; in steel sector after earnings results last night.

Closing Recap

Wednesday, October 07, 2026

U.S. stocks slipped as the S&P 500 and Dow Jones Industrials snapped their 5-day winning streaks, and the S&P and Nasdaq both pulled back off record all-time highs as a resurgence in Treasury yields again raised inflation concerns. Oil prices were higher to start as well, but reversed and ended lower by settlement. Another day of weak market internals despite being near record highs with many more 52-week lows vs. 52-week highs and market breadth decisively in favor of decliners over advancers. Interest rate sensitive sectors financials/banks, precious metals/miners, housing and high dividend paying sectors (Utilities, telecom, REITs) were all notably lower given the spike in Treasury yields again with the 10-yr topping 5.36% earlier and 7.63% mortgage rate (highest since Oct ’23). A stronger 20-year bond auction showed demand and briefly eased Treasury yields, but the move was brief. We are heading into Q3 earnings next week with big banks (JPM, C, GS, WFC) and a handful of notable large caps reporting before the onslaught begins. Analysts currently expect S&P 500 earnings growth of 30.6%, in aggregate, for the July-to-September period, led by an expected 114.7% jump in energy earnings, followed by a 66.5% estimated surge in tech results, according to LSEG.

Fed Minutes breakdown: Federal Reserve policymakers were divided last month over the rationale for raising interest rates, with "some participants" seeing a hike as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation. The competing arguments were outlined in the minutes of the US central bank's September 15-16 meeting, at which the Fed voted unanimously to raise the policy rate by a quarter of a percentage point even as officials disagreed about whether the move was largely precautionary or represented a shift towards significantly tighter monetary policy meant to curb investment and spending. The split, and the varying interpretations of where the economy stands right now, set up a debate at the October 27-28 policy meeting over whether inflation has taken on a broader, demand-driven dimension that warrants further Fed action now.

• Gold declined to a two-month low, falling -$46.40 or 1.11% to settle at $4,140.70 an ounce, while silver prices dropped -$1.30 or 2.1% to settle at $60.29 an ounce, pressured by a strong US dollar and Treasury yields. The US dollar index (DXY) climbed 0.5%, making greenback-denominated gold more expensive for holders of other currencies, and 10-year US Treasury yields were at an over two-decade high. Bitcoin dropped 2.7% to $83,336, while other major cryptocurrencies took a bigger drubbing throughout, with ethereum down 5.2% to $2,559 and XRP dropping 5.5% to $1.42.

• Building product sector: BLDR and OC both downgraded to Sector Perform at RBC Capital and MHK downgraded to underperform, citing primarily driven by volume weakness and incremental pressures on GM% for BLDR; for MHK, RBC is well below the Street on Q4 EPS (its est. moves -17% to $1.42 vs Street $1.69) and on '27 (its est. falls -9% to $8.97 vs Street $10.06).
• Auto Retailers: StoneX said they were trimming Q3 estimates across the group for auto retailers (GPI, LAD, PAG) to reflect front-end GPU pressure and a slower aftersales trajectory. However, with the group having de-rated toward the low end of its historical range, they think the current setup more than discounts those headwinds — the structural earnings base in parts and service, F&I and captive finance is intact, and what we see forming is dispersion by franchise mix rather than a sector-wide downcycle. UBS also cuts 2027 estimates across the franchise dealers (ABG, GPI, PAG, LAD, CARG, CARS) by a mid-single-digit percentage on slower parts & service growth and higher floor-plan interest expense.

• Industrial sector: CAT, DE, AGCO, CNH among farm equipment names that were weaker after the U.S. Federal Trade Commission and the U.S. Department of Agriculture are seeking comments on whether farm-equipment makers and dealers engage in practices that restrict competition and repair access. The inquiry also focuses on dealer network restrictions and consolidation, areas that could draw broader regulatory scrutiny of the agricultural equipment industry.
• Shipping and tanker sector: ZIM raised its guidance for the year reflecting continued strong market demand and favorable momentum in freight rates; now expects to generate Adjusted EBITDA of between $2.7B-$3.0B vs, prior view $2.0B-$2.4B and adj EBIT of $1.4B-$1.7B vs. prior $700M-$1.1B.
• Power & Utilities: BKH announced that it has reached definitive agreements to serve a GOOG data center in WY. To support the facility, BKH expects to invest $1.8B in new generation and forecasts ~$150M of incremental net income by 2030.
• Energy, Alt Energy & Solar: refiners, VLO, PBF, MPC, CVI all hitting all-time highs today; FCEL shares fell appoints Matthew Latino as CFO, who succeeds Michael Bishop as part of a planned leadership transition. Latino joins FCEL from water technology firm XYL, where he served as senior vice president of finance and segment CFO for its Measurement & Control Solutions business.

• Investment banking/Alts sector: KBW upgraded MC to Outperform, and downgraded PJT to Market Perform in Q326 M&A, Traditional AMs, & Solutions Providers Preview. The firm said for the M&A Independents, expects large cap strategic activity to remain strong and drive industry volumes, but are tempering Y/Y growth expectations at the industry level for 2027 following the outsized growth in this area in recent years. EPS estimates for the Traditional Asset Managers skewed modestly lower following market movements in Q3, but it continues to see BLK and IVZ as best positioned to generate consistent net inflows in the space given their expansive passive presences. Also, MC was upgraded from Sell to Neutral at UBS saying the M&A backdrop, particularly within sponsor activity, remains challenging, and MC's pipeline has softened largely as expected…but the stock and valuation have reset meaningfully.

• FinTech sector: BULL shares tumbled after CNBC reported that a congressional committee found the digital investment platform's ties to China's government pose a national-security threat to U.S. finance. The bipartisan House Select Committee on China found a gap between how Webull markets itself as an American company versus how it is actually controlled.
• Mortgage sector: UWMC was downgraded to Market Perform in mortgage opco preview at KBW noting mortgage rates spiked sharply in Q3, with the most meaningful increase occurring in September. The 30-yr FRM mortgage rate (Freddie Mac weekly PMMS) reached 7.28% on 10/1, up from 6.43% on 7/2. So, KBW is reducing its EPS estimates and price targets for the mortgage originators.

• LPCN shares active after Health Canada approves Tlando for testosterone replacement therapy, with partner Verity Pharma set to launch the drug in Canada by end of 2026.
• MRNA and MRK rose after AI healthcare technology company TEM announces multi-year collaboration with the firms to support the potential commercialization of intismeran autogene, an experimental personalized mRNA cancer treatment developed by Moderna and Merck.
• RARE agrees to sell an FDA Priority Review Voucher for $210M in cash; received the voucher upon the FDA approval of Genglycos, its treatment for glycogen storage disease type Ia, also known as Von Gierke disease

• Medical Supplies and Device sector: Barclay’s initiated the sector and providing top Large-Cap Ideas: EW, SYK with other OW-rated Large-Cap Names: ABT, GEHC, ISRG  Their top SMID-Cap Ideas: BBNX, DXCM, LIVN, while other OW-rated SMID-Cap Names: AXGN, BLCO, PRCT, TMDX. The firm said recent underperformance creates an opportunity to own high-quality names at attractive multiples, while stabilizing fundamentals in 2027 should drive improving sentiment.

• Containerboard & Packaging sector: Wells Fargo previewed the sector saying they expect Q3 results from containerboard producers to be impacted by ongoing price/cost headwinds on sturdy-but-muted demand. However, optimism likely to remain buoyed by Sept price hike commentary. The firm said based on recent management comments, regional exposures positive end mkt trends, sees a more favorable set-up for PKG into the Q3 print than SW. And sees greater NT risk to EU exposed SW—though would be buyers of any additional pullbacks given valuation and '27 setups.

• Software sector: PENG shares rose after raising its FY27 net sales outlook to $2.43B at midpoint vs prior forecast of about $2.17B at midpoint; FY revenue growth expected at 40% YoY, plus/minus 10% and guided FY27 adj EPS at $4.45, plus or minus $0.70 vs. est. $3.38 following Q4 top and bottom line beats. APPF was downgraded to neutral at UBS on the back of a ~40% recovery from June lows as the shares now appear to appropriately reflect a potential moderating growth outlook.
• Security software: ZS held its Investor Day providing a FY31 ARR target base case of $8B+ in ARR (17% CAGR) and an upside case of $10B (22% CAGR) due to AI tailwinds.
• Storage sector: NTAP was upgraded to Outperform from In Line at Evercore ISI and raised tgt to $300 from $210 saying guidance for about 17% growth appears conservative given it implies a steep second half deceleration to 9%.
• Gaming Software sector: shares of Unity (U) after GOOGL and Unity announce partnership on new AI gaming platform. Google and Unity's platform allows users to generate and customize playable games from text prompts without coding. Roblox has been expanding its own AI creation suite, including a text-to-game tool called Build that was launched in July.

• Reuters reported Elon Musk said TSLA will build and run the Terafab Ai chip complex, with TSM possibly subleasing a part of it. Replying to a post on X that said the most likely outcome was TSM owning and running the fab, Musk: "No, we will build and run the fab. Let there be ZERO doubt about that."
• MRVL was upgraded from Hold to Buy at TD Cowen and raised its tgt to $350 from $245 as the fundamental growth drivers for the company have now fully shifted to the company's strong connectivity franchise and the concentration risk Associated with custom XPU programs has been largely de risked.
• Analog semis (ADI, NXPI, MCHP, TXN, and ON), Cantor said they remain bullish on the Analog group as checks continue to suggest that AI-related demand is driving positive cyclicality in the broader-based market, with tight market conditions expected to continue throughout all of CY27 - supporting sustainable pricing upside and elongated above-seasonal growth

Street Recommendations

Wednesday, October 7, 2026

• A Barclays raised the firm's price target on Agilent to $195 from $175 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• AVTR Barclays raised the firm's price target on Avantor to $15 from $13 and keeps an Underweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• BRKR Barclays analyst Luke Sergott raised the firm's price target on Bruker to $70 from $58 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• CBOE Barclays lowered the firm's price target on Cboe Global Markets to $343 from $354 and keeps an Overweight rating on the shares. The firm adjusted targets in the brokers, asset managers and exchanges group as part of a Q3 earnings preview. The volume outlook for the exchanges "was a bit varied" in Q3 but remained "quite strong," the analyst tells investors in a research note.
• DHR Barclays raised the firm's price target on Danaher to $255 from $230 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• GH Barclays analyst Luke Sergott raised the firm's price target on Guardant Health to $220 from $200 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• ILMN Barclays raised the firm's price target on Illumina to $200 from $160 and keeps an Underweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• IQV Barclays analyst Luke Sergott raised the firm's price target on Iqvia to $300 from $275 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• MTD Barclays raised the firm's price target on Mettler-Toledo to $1,700 from $1,575 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• NTRA Barclays raised the firm's price target on Natera to $475 from $340 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• DGX Barclays analyst Luke Sergott raised the firm's price target on Quest Diagnostics to $260 from $250 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• RGEN Barclays analyst Luke Sergott raised the firm's price target on Repligen to $225 from $175 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• TMO Barclays analyst Luke Sergott raised the firm's price target on Thermo Fisher to $750 from $650 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• TWST Barclays raised the firm's price target on Twist Bioscience to $215 from $112 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• WAT Barclays raised the firm's price target on Waters to $500 from $460 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.
• WST Barclays analyst Luke Sergott raised the firm's price target on West Pharmaceutical to $440 from $400 and keeps an Overweight rating on the shares. The firm adjusted targets in the life science and diagnostic group as part of a Q3 earnings preview. Barclays sees an "extremely tough setup" for stocks, saying valuations appear full and bake in material upside on Q3 and next year estimates. However, the analyst thinks the sector can continue to work on AI beneficiary themes.

• CARR Bernstein lowered the firm's price target on Carrier Global to $64 from $78 and keeps a Market Perform rating on the shares ahead of quarterly results. The firm says concerns are less on Q3, which management has largely telegraphed at conference season but rather that Americas margins seem to be high on the sell side and investors expect them to cut the EPS guide in Q4.
• DAL Bernstein analyst David Vernon lowered the firm's price target on Delta Air Lines to $100 from $106 and keeps an Outperform rating on the shares. The firm is updating its model to reflect a more challenging fuel environment, a 0.5% hit to capacity growth from New York ATC staffing issues, and a demand backdrop that has held up.

• ZS BofA raised the firm's price target on Zscaler to $240 from $210 and keeps a Buy rating on the shares. The firm, which came away from Zscaler's investor day "more bullish on its positioning for the AI era," notes that the company reaffirmed Q1 and FY27 guidance and introduced a path to more than $8B of ARR by FY31.
• STZ BofA analyst Peter Galbo lowered the firm's price target on Constellation Brands to $120 from $145 and keeps an Underperform rating on the shares following the company's Q2 report and reiteration of its FY27 financial outlook. The firm believes a lower multiple is justified given the lack of an evident, sustainable turnaround in the beer business.
• MRVL BofA raised the firm's price target on Marvell to $400 from $365 and keeps a Buy rating on the shares, stating that management presented "a compelling multi-year growth outlook" at the company's analyst day. The company's revised outlook calls for a nearly $80B sales midpoint by FY31, implying a 60%-plus calendar 2026-30 CAGR, which was "well above" prior sell-side consensus, the analyst noted. Following the event, the firm raised its FY28 and FY29 pro-forma EPS forecasts by 15% and 26% to $7.59 and $13.92, respectively.
• NEO BofA raised the firm's price target on NeoGenomics to $20 from $16 and keeps a Neutral rating on the shares. While Neogenomics' disclosure yesterday of a CEO transition "came as somewhat of a surprise" as it was earlier than expected, BofA believes it is a well-planned transition not related to financial performance and ahead of 2027 guide issuance and does not envision an overall strategy change, the analyst tells investors. The firm, which believes the CEO transition news overshadowed "an otherwise solid 3Q performance," views the 14% stock price decline yesterday as "an overreaction," the analyst added.

• MRVL Cantor Fitzgerald analyst C.J. Muse raised the firm's price target on Marvell to $350 from $330 and keeps a Neutral rating on the shares. Marvell's bullish investor meeting raised its CY30 revenue outlook to about $80B and EPS to more than $30, well above expectations, supported by rapid growth in Custom Silicon, Interconnect, and switching, with follow-on hyperscaler wins, expanding XPU Attach opportunities, and emerging scale-up/scale-in applications providing significant upside potential, the analyst tells investors in a research note.
• ZS Cantor Fitzgerald analyst Jonathan Ruykhaver raised the firm's price target on Zscaler to $275 from $225 and keeps an Overweight rating on the shares. Zscaler is building a differentiated platform and, while the path toward $10B in annual recurring revenue will come down to sales execution, continued strong net retention and new logo upside leave the FY31 target well within reach, the analyst tells investors in a research note.

• TSM Citi analyst Laura Chen raised the firm's price target on TSMC to NT$4,000 from NT$3,800 and keeps a Buy rating on the shares. Citi also opened an "upside 90-day catalyst watch" on TSMC. The firm expects the company to top its recently raised guidance when reporting Q3 results on October 15. It believes consensus estimates will move higher post the earnings print.
• APD Citi lowered the firm's price target on Air Products to $312 from $330 and keeps a Neutral rating on the shares. The firm adjusted targets in the specialty chemicals group ahead of the Q3 reports. Citi reduced estimates citing modest cost pressures and select end market weakness. However, most companies in the group can maintain guidance due to strong pricing and growth trends, the analyst tells investors in a research note. The firm views Ecolab as best positioned into earnings.
• IFF Citi lowered the firm's price target on IFF to $100 from $101 and keeps a Buy rating on the shares. The firm adjusted targets in the specialty chemicals group ahead of the Q3 reports. Citi reduced estimates citing modest cost pressures and select end market weakness. However, most companies in the group can maintain guidance due to strong pricing and growth trends, the analyst tells investors in a research note. The firm views Ecolab as best positioned into earnings.
• LIN Citi lowered the firm's price target on Linde to $560 from $580 and keeps a Buy rating on the shares. The firm adjusted targets in the specialty chemicals group ahead of the Q3 reports. Citi reduced estimates citing modest cost pressures and select end market weakness. However, most companies in the group can maintain guidance due to strong pricing and growth trends, the analyst tells investors in a research note. The firm views Ecolab as best positioned into earnings.

• WLTH Goldman Sachs analyst James Yaro raised the firm's price target on Wealthfront to $11 from $10 and keeps a Neutral rating on the shares. As crypto market caps and volumes stabilize, crypto revenue estimates are inflecting higher for the first time since 4Q25, though revisions remain bifurcated between firms benefiting from the recovery in crypto activity and retail brokers facing weaker trading volumes, the analyst tells investors in a research note.
• MRVL Goldman Sachs analyst James Schneider raised the firm's price target on Marvell to $270 from $220 and keeps a Neutral rating on the shares. Marvell's Investor Day reinforced the bullish long-term AI/connectivity opportunity, with above-Street FY31 targets of 55%-60% revenue CAGR, 56%-59% gross margins, 44%-46% operating margins, and $30 EPS, the analyst tells investors in a research note.

• ZS Guggenheim raised the firm's price target on Zscaler to $254 from $214 and keeps a Buy rating on the shares to reflect higher growth and cash flow in the outer years following the company's investor day meeting.
• GMAB Guggenheim analyst Michael Schmidt raised the firm's price target on Genmab to $58 from $54 and keeps a Buy rating on the shares, which remain a Top Pick of the analyst. The firm is updating estimates, now reflecting de-risked 1L DLBCL sales assumptions for epcoritamab, following the announcement of positive topline results from the Phase 3 EPCORE DLBCL-2 study in the broad ITT patient population.

• SVRA JPMorgan initiated coverage of Savara with an Overweight rating and $12 price target. The firm sees "plenty of catalysts" for Savara in the near-term, including the potential approval of Molbreevi in the U.S. on or before the FDA action date of November 22. The company also faces potential approvals in the UK and European Union in Q4 of 2026 and Q1 of 2027, respectively, the analyst tells investors in a research note. JPMorgan believes Molbreevi has blockbuster potential.
• FCX JPMorgan analyst Bill Peterson raised the firm's price target on Freeport-McMoRan to $92 from $77 and keeps an Overweight rating on the shares. The firm adjusted targets in the base metals group as part of a Q3 earnings preview. JPMorgan prefers copper fundamentals over the medium- to long-term versus aluminum.
• AA JPMorgan lowered the firm's price target on Alcoa to $50 from $52 and keeps a Neutral rating on the shares. The firm adjusted targets in the base metals group as part of a Q3 earnings preview. JPMorgan prefers copper fundamentals over the medium- to long-term versus aluminum.
• MRVL JPMorgan raised the firm's price target on Marvell to $360 from $305 and keeps an Overweight rating on the shares following the investor day. The company outlined "significant upward revisions" across its total addressable market, custom silicon opportunity, and multi-year revenue framework, the analyst tells investors in a research note. The firm says Marvell is an transitioning to an increasingly broad AI infrastructure platform. It sees a "credible path" for Marvell to reach $35 of earnings per share by 2030.

• MC Keefe Bruyette upgraded Moelis to Outperform from Market Perform with a price target of $66, down from $68. The firm shifted preferences in the mergers and acquisition independents group as part of a Q3 earnings preview. Keefe expects large cap strategic activity to remain strong and drive industry volumes, but reduced year-over-year growth expectations at the industry level for 2027 following the outsized growth in this area in recent years. It upgraded Moelis and downgraded PJT Partners as a result.
• PJT Keefe Bruyette analyst Alex Bond downgraded PJT Partners to Market Perform from Outperform with a price target of $159, down from $195. The firm shifted preferences in the mergers and acquisition independents group as part of a Q3 earnings preview. Keefe expects large cap strategic activity to remain strong and drive industry volumes, but reduced year-over-year growth expectations at the industry level for 2027 following the outsized growth in this area in recent years. It upgraded Moelis and downgraded PJT Partners as a result.

• ZS Morgan Stanley analyst Meta Marshall raised the firm's price target on Zscaler to $185 from $165 and keeps an Equal Weight rating on the shares after having attended the company's analyst day, citing "modestly higher" free cash flow estimates and a higher out-year multiple for the firm's raised target.
• MRVL Morgan Stanley analyst Joseph Moore raised the firm's price target on Marvell to $300 from $268 and keeps an Equal Weight rating on the shares. Marvell targets $70B-$90B of FY31 revenue and greater than $30 of EPS at the midpoint, notes the analyst, saying the targets are at least 20% higher than the firm had forecast. The firm likes the growth drivers, but "don't know that they needed to raise the bar this high," the analyst added.

• MRVL Piper Sandler analyst David O'Connor raised the firm's price target on Marvell to $400 from $270 and keeps an Overweight rating on the shares. The firm notes Marvell surpassed expectations at its Investor Day yesterday, introducing a FY31 revenue target of $70B-$90B and over $30 of EPS, well above Piper and consensus estimates. With design-wins secured and multiple shots on goal to unlock FY31 targets, Piper came away impressed and views the investment case as even more compelling.
• TSN Piper Sandler lowered the firm's price target on Tyson Foods to $56 from $66 and keeps an Overweight rating on the shares. The firm is updating its Chicken estimates for elevated feed costs and chicken breast pricing pressure. Feed costs are elevated, with corn up 21.8% in Q4 and soybean up 21.2%, impacting margins, especially if costs remain elevated.

• OC RBC Capital downgraded Owens Corning to Sector Perform from Outperform with a price target of $127, down from $172. RBC's roofing checks indicate residential shingle sell-in volumes may not be as bad as feared in Q3. However, this comes at the expense of Q4, the analyst tells investors in a research note. RBC now sees "notable downside risk" to Owens Corning's Q4 estimates and potential for negative carryover into the first half of 2027 "following another weak storm season."
• MHK RBC Capital downgraded Mohawk Industries to Underperform from Sector Perform with a price target of $112, down from $130. While the company's Q3 results "should be fairly insulated from upcoming headwinds given timing dynamics," RBC's estimates for Mohawk's Q4 and 2027 are well below consensus, the analyst tells investors in a research note. The firm sees the the company's risk/reward as "incrementally worsening." Sluggish demand in flooring, driven by broader macro and housing weakness, is likely to compound with additional price and cost headwinds, contends RBC.
• BLDR RBC Capital analyst Mike Dahl downgraded Builders FirstSource to Sector Perform from Outperform with a price target of $62, down from $88. The firm sees risk to the company's Q4 and 2027 estimates due to volume weakness and incremental pressures on gross margins. Builders FirstSource is facing weaker volumes, a slightly higher recent lumber and sheet goods mix, and competitive dynamics that "remain fierce," the analyst tells investors in a research note.

• ZS Stifel raised the firm's price target on Zscaler to $235 from $200 and keeps a Buy rating on the shares. At the company's first analyst day since 2021, management did "a nice job" outlining the growing importance of both securing AI and using AI to improve security, and why its zero-trust architecture is the right approach, the analyst tells investors.

• ZS TD Cowen raised the firm's price target on Zscaler to $230 from $200 and keeps a Buy rating on the shares following the investor day. The firm says AI is powering Zero Trust for Users while Zscaler is expanding its total addressable market with platform innovation and new customer landing beachheads. Zscaler announced plans for its expanding security platform as it enters its next growth phase, the analyst tells investors in a research note.

• APPF UBS downgraded AppFolio to Neutral from Buy with a price target of $220, up from $200. The firm cites valuation for the downgrade with the shares up 40% from the June lows. AppFolio's shares now appear to appropriately reflect a potential moderating growth outlook, the analyst tells investors in a research note. UBS reduced its fiscal 2027 revenue expectations for AppFolio citing slower unit growth amid a more challenging environment characterized by interest rate and financing pressures. It sees a more balanced risk/reward at current share levels.
• MRVL UBS raised the firm's price target on Marvell to $350 from $335 and keeps a Buy rating on the shares. Marvell's 2028/C2027 guidance is only in line with expectations, but its new F2031/C2030 outlook of more than $30 EPS is well above investor expectations and may prove conservative given upside from custom compute, interconnect scale-in opportunities, operating leverage, and buybacks, the analyst tells investors in a research note.
• GM UBS lowered the firm's price target on General Motors to $112 from $114 and keeps a Buy rating on the shares. The firm sees a $0.4B EBIT beat and expects the company to either push through the beat or indicate trending towards higher end of range, effectively messaging no change to 4Q26, the analyst tells investors in a research note.
• F UBS lowered the firm's price target on Ford to $15 from $17 and keeps a Buy rating on the shares. Ford's Q3 results are now expected to be roughly in line after late-quarter F-150 downtime reduced the previously expected beat, while 2027 profit guidance should remain limited, but the stock remains attractive around $12 given potential for a BESS announcement, the analyst tells investors in a research note.
• TSLA UBS analyst Joseph Spak raised the firm's price target on Tesla to $391 from $385 and keeps a Buy rating on the shares. Tesla remains more sentiment- than results-driven, and at current levels, the risk/reward looks tactically favorable, the analyst tells investors in a research note.

• LEN Wells Fargo lowered the firm's price target on Lennar to $75 from $80 and keeps an Equal Weight rating on the shares. The firm says fresh inventories picked up in its scrape this month will likely show up with more discounts next month as they age. To that end, Wells' scrape data likely doesn't paint the full picture of what will ultimately flow through Lennar's P&L in Q4/Q1. The firm is also mindful that Lennar is potentially stepping up sales to MRP; these investment sales represent volumes that likely don't ever hit the company's website.
• EXPE Wells Fargo analyst Ken Gawrelski lowered the firm's price target on Expedia to $275 from $307 and keeps an Equal Weight rating on the shares. The firm sees Q3 as low point of year for nights growth, FY26 bookings guide unchanged given choppy travel trends and uncertain macro, and Q4 GB guide implying the third consecutive quarter of slowing growth. Renewed agentic concerns are unlikely to ease near-term, Wells adds.
• IP Wells Fargo analyst Gabe Hajde lowered the firm's price target on International Paper to $42 from $46 and keeps an Overweight rating on the shares. The firm expects Q3 results from cboard producers to be impacted by ongoing price/cost headwinds on sturdy-but-muted demand. However, optimism is likely to remain buoyed by September price hike commentary. CPB edges lower largely on slightly eased supply tightness, Wells adds.
• PKG Wells Fargo analyst Gabe Hajde lowered the firm's price target on Packaging Corp. to $245 from $246 and keeps an Equal Weight rating on the shares. The firm expects Q3 results from cboard producers to be impacted by ongoing price/cost headwinds on sturdy-but-muted demand. However, optimism is likely to remain buoyed by September price hike commentary. CPB edges lower largely on slightly eased supply tightness, Wells adds.
• BKNG Wells Fargo lowered the firm's price target on Booking Holdings to $190 from $220 and keeps an Equal Weight rating on the shares. The firm says prolonged Middle East conflict continues to pressure long-haul travel demand, weighing on Booking most vs. peers given geo footprint. Wells sees some risk on Q4 guide vs. consensus. Agentic concerns are back at the forefront.

Rating abbreviations…

***OP = Outperform

***SP = Sector Perform

***UP = Underperform

***OW = Overweight

***EW = Equal-weight

***UW = Underweight

***Report powered by thefly.com***

What’s on Tap Weekly Calendar

• 9:45 AM ET S&P Global Services PMI, Sept-final
• 10:00 AM ET                 Employment Trends for September
• 10:00 AM ET ISM Non-Manufacturing PMI for September

• Earnings After the Close: None

• 8:30 AM ET                   International Trade for August
• 8:30 AM ET                   Advanced Goods Trade Balance for August
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 1:00 PM ET US Treasury to sell $58B in 3-year notes
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AXIL NEOG PENG SAR STZ WS

• 10:30 AM ET                 Weekly DOE Inventory Data
• 1:00 PM ET US Treasury to sell $39B in 10-year notes
• 3:00 PM ET                    Consumer Credit for August

• Earnings After the Close: APLD LEVI RELL RGP

• 8:30 AM ET                   Continuing Claims
• 10:00 AM ET                 Wholesale Inventory M/M for August
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 1:00 PM ET US Treasury to sell $22B in 30-yr notes

• Earnings After the Close: ODC

• 10:00 AM ET                 University of Michigan 1-yr and 5-yr inflation expectations
• 12:00 PM ET WASDE October crop report
• 1:00 PM ET                    Baker Hughes Weekly rig count data

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