Early Look

Friday, October 23, 2026

U.S. futures are mixed as the Nasdaq is flattish after tumbling -2.6% on Thursday, led by a route in semiconductors (SOX) down to key technical levels, while the S&P 500 futures are down slightly. Bond markets surged on Thursday, as the 10-year yield fell over 18 bps to 4.95%, and the 5-year yield fell over -20bps (biggest one day drop in yields in 2 years) as a sharp pullback in Tech stocks led to a rally in safe haven assets. Oil prices rose on Friday, with Brent crude touching a more than five-month high, after Houthi attacks in Saudi Arabia stoked concern over ‌further disruption to energy supplies from the Middle East. Brent crude futures gained $1.14, or 1%, to $114.31 ‌a barrel, having earlier reached $114.72 for the highest level since May 4. US West Texas Intermediate crude gained $1.65, ​or 1.7%, to $101.12. In Asian markets, The Nikkei Index fell -214 points to 62,693, the Shanghai Index rose 32 points to 3,690, and the Hang Seng Index advanced 158 points to 23,093. In Europe, the German DAX is down -224 points to 25,147, while the FTSE 100 slides -60 points to 10,664.

Tech (XLK) sector saw no bounce on Thursday, down -3% and now down -6.8% in October, but it has been a good month of returns for just about every other S&P sector, which is why major averages remain not far off their recent all-time highs. Consumer Staples (XLP) are +11.65% this month, Energy (XLE) +9.87%, Utilities (XLU) +8.7%, Healthcare (XLV) +7.65% while Materials (XLB), Financials (XLF) and Discretionary (XLY) are all up 5% this month. @bespokeinvet noted on X, “This will be the first time the Nasdaq 100 $QQQ has had three 2%+ drops in a 7-day span since April 2025.” The AI trade is coming off a major beating as concerns over rising financing costs and a potential slowdown in capex weighed on already-battered neocloud stocks like CoreWeave (CRWV). AI chip giants Nvidia (NVDA) and AMD (SPCX) also retreated, along with other infrastructure plays.

• The Dow Jones Industrial Average rose 11.89 points, or 0.02%, to 52,867.98
• The Nasdaq Composite plunged -694.00 points, or 2.60%, to 26,008.86
• The Russell 2000 Index edged higher 3.02 points, or 0.11% to 2,784.

• 9:45 AM ET S&P Global Services PMI, Oct-flash
• 9:45 AM ET S&P Global Composite PMI, Oct-flash
• 10:00 AM ET                 University of Michigan Confidence, Oct-final
• 10:00 AM ET                 University of Michigan 1-yr and 5-yr inflation expectations, Oct-final
• 1:00 PM ET                    Baker Hughes Weekly rig count data

• Boyd Gaming (BYD) Q3 adj. EPS $1.67 vs. est. $1.64 (beat); revenue $990.455Mm vs. est. $1.001B (miss); adj EBITDAR $319.6Mm vs est $288.15Mm.
• Comfort Systems (FIX) Q3 EPS $13.91 vs. est. $12.87 (beat); revenue $3.766B vs. est. $3.401B (beat); gross profit $934.482Mm; operating Income $624.57Mm vs. est. $583.2Mm (beat); operating cash flow $1.010B; same-store backlog $17.39B; expects organic growth, high profitability and solid cash flow through year-end and into 2027; CFO Bill George to retire, with Julie Shaeff succeeding him.
• Deckers Outdoors (DECK) Q2 adj. EPS $2.31 vs. est. $1.79 (beat); sales $1.481B vs. est. $1.506B (miss); gross profit $895.1Mm; gross margin 60.5%; operating Income $389.5Mm vs est $307.05Mm (beat); FY EPS outlook $7.80-7.95 vs. est. $7.51 (above); FY sales outlook $5.700B-5.725B vs. est. $5.880B (below); FY gross margin outlook 58.5%.
• Norwegian Cruise Line (NCLH) was downgraded to Underweight from Neutral at JPMorgan and cut tgt to $11 from $13 ahead of earnings as sees an inline quarter but downside risk to second half of 2027 net yield estimates. The potential for prolonged geopolitical headwinds could constrain demand recapture in Europe.

• Newmont Mining (NEM) Q3 adjusted EPS $2.20 vs. consensus $1.94; says remains on track to achieve full-year 2026 production guidance and improved full-year cost outlook, supported by disciplined operational execution in the third quarter, demonstrating the strength and resilience of our world-class portfolio; in Q3 produced approximately 1.3 million attributable gold ounces, and generated $1.9 billion of free cash flow.
• Rocket Lab (RKLB) completed its 98th Electron launch on Oct. 23, 2026, delivering three satellites for HawkEye 360 (HAWK). The mission from Launch Complex 1 in New Zealand placed the satellites into a 520-kilometer low Earth orbit. The flight marked its 19th successful launch this year. It was the third dedicated Electron mission for HawkEye 360.
• Global crude steel production in September fell 0.2% from a year earlier to 142.4 million tonnes, World Steel Association data showed on Friday. Crude steel output from China, the world's top producer and consumer of the metal, rose 0.1% to 73.6 million tonnes in September.

• Citigroup (C) has received Chinese regulatory approval to establish a wholly owned securities business in Shanghai, expanding its onshore capabilities across underwriting, brokerage, trading, research, and investment advisory services for domestic and international clients.
• Enova international (ENVA) Q3 adj. EPS $4.48 vs. est. $4.42 (beat); revenue $1.009B vs. est. $1.002B (beat); adj. EBITDA $269Mm vs. est. $246.3Mm (beat); operating Income $247.212Mm.
• Kilroy Realty (KRC) Q3 FFO $0.88, in-line with consensus and revs $266.75M vs. est. $267.41M; now sees FY26 Nareit FFO to $3.55-$3.59 from $3.49-$3.63 (est. $3.59); said momentum in West Coast markets continued to accelerate in Q3, with over 800,000 square feet of long-term leases signed.
• Kinsale Capital (KNSL) Q3 adj. EPS $5.70 vs. est. $5.13 (beat); revenue $454.8Mm vs est $476.73Mm (miss); gross written premiums $462.868Mm vs est $476.91Mm (miss); combined ratio 75.4%; expense ratio 22.0%; ROE 19.9%; Christopher R. Tangard to succeed as CFO effective March 2, 2027.
• Rexford Industrial (REXR) Q3 Core FFO/share $0.60 vs est $0.60; revenue $239.103Mm vs est $235.71Mm (beat); company share of Core FFO $132.698M, down 6% Y/Y; FY Core FFO/share outlook raised to $2.41-2.44 vs est $2.41
• Robert Half (RHI) Q3 EPS $0.49 vs. est. $0.47; Q3 revs $1.36B, in-line with consensus $1.36B; said Talent solutions returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2 percent. Global enterprise earnings exceeded the midpoint of our third-quarter guidance; guides Q4 EPS $0.36-$0.46 below consensus $0.47 and revs $1.285B-$1.385B vs. consensus $1.36B.
• Selective Insurance (SIGI) Q3 revs $1.33B and EPS $2.11 with combined ratio 96.8% while guides FY combined ratio 96.5%-97.5%; raises dividend 12% and authorizes $200M share buyback; Operating ROE was 16.9% in the quarter, with excellent investment income and improved underwriting performance, led by a lower loss ratio.
• SLM Corp. (SLM) Q3 EPS loss (-$0.19) vs. est. $0.26; Q3 net interest income $339M.

• Dr Reddy's Laboratories (RDY) has expanded its portfolio of generic versions of Ozempic with two new brands, according to product photographs and marketing materials reviewed by Reuters, after supply disruptions hit sales of its original Obeda injection in India's semaglutide market.
• Gilead Sciences, Inc. (GILD) announced that it has entered into a definitive agreement to acquire an oral IL-23R inhibitor program, including lead asset HCXT-2001, from PepStar Therapeutics Limited, a privately held, clinical-stage biotechnology company.
• Tango Therapeutics (TNGX) announced promising results from its ongoing Phase 1/2 study of vopimetostat, an investigational PRMT5 inhibitor with first- and best-in-class potential, in combination with Revolution Medicines' (RVMD) RAS-ON inhibitors in patients with MTAP-deleted and RAS-mutant metastatic pancreatic ductal adenocarcinoma and NSCLC.
• Zymeworks (ZYME) enters into an exclusive global license and collaboration agreement with Roche for zw209, a trispecific T cell engager targeting dll3. Zymeworks to receive $55M upfront, $40M at phase 1B start, up to $718M in milestones,
• An experimental Huntington’s drug from Alnylam Pharmaceuticals (ALNY) showed promise in a small study, the company said, suggesting it can partially silence the mutant Gene that drives the devastating neurological disorder. Patients who received the highest dose of the drug, called brezosiran, saw the levels of mutant huntingtin in their spinal fluid fall by 60% or 64% on average.

• @bespokeinvest noted on X, “The 3x long semis ETF $SOXL is down 50% since October 5th when the semis made a short-term higher high. -50%”
• Alphabet (GOOGL) board declares $15.63/share Preferred dividend.
• AppFolio (APPF) Q3 adj. EPS $1.82 vs. est. $1.79 (beat); revenue $295.691Mm vs. est. $294.4Mm (beat), +19% Y/Y; adj. operating Income $81Mm vs est $77.39Mm; FY revenue outlook $1.122B-1.127B vs. est. $1.124B (midpoint slightly above).
• Knowles (KN) Q3 EPS $0.38 vs. est. $0.36; Q3 revs rose 20% y/y to $184.0M vs. est. $172.1M; guides Q4 EPS $0.39-$0.43 vs. est. $0.38 on revs $180M-$190M vs. est. $174.6M and higher FY 26 revs of $689M.
• MaxLinear (MXL) Q3 adj. EPS $0.62 vs. est. $0.55 (beat); revenue $218.057Mm vs. est. $211.4Mm (beat), +72% Y/Y; gross profit $128.1Mm; gross margin 58.7%; operating Income $30.2Mm; Q4 revenue outlook $240Mm-260Mm vs. est. $220.72Mm (above); revolving credit commitments increased $70Mm to $200Mm.
• Omnicom (OMC) Q3 adj EPS $2.73 tops consensus $2.67; Q3 revs rose 59% y/y to $6.4B vs. est. $6.22B; said integration was nearly complete, with $900 million in cost-reduction synergies targeted for 2026.
• OpenAI is near agreement to raise up to $30B in funding at a $1.25 trillion valuation ahead of a potential initial public offering, people familiar with the deal told CNBC.
• RingCentral (RNG) Q3 adj. EPS $1.33 vs est $1.28; revenue $676.043Mm vs. est. $667Mm (beat); gross profit $494.303Mm; operating Income $53.886Mm; FY adj. EPS outlook $5.07-5.12 vs est $5.04; FY revenue outlook $2.650B-2.657B vs est $2.64.
• SK Hynix Inc. (SKHY) has scrapped plans for a US listing of its Solidigm unit after facing strong shareholder opposition and regulatory scrutiny over concerns that the move could undermine minority investor interests.
• SS&C Technologies (SSNC) Q3 adj EPS $1.78 vs. est. $1.77 on inline revs $1.69B; Q3 organic revenue growth of 5.2%, record adjusted consolidated EBITDA of $674.8 million, and margins of 39.9%; narrows FY26 adjusted EPS view to $7.11-$7.17 from $6.93-$7.25 and narrows FY revenue view to $6.74B-$6.78B from $6.67B-$6.83B.
• Western Digital (WDC) Q1 adj. EPS $4.64 vs. est. $4.09 (beat); revenue $4.381B vs. est. $4.136B (beat); operating Income $2.046B vs est $1.915B (beat); gross margin 57.8%; Q2 adj. EPS outlook $5.80 vs. est. $4.84 (above); Q2 revenue outlook $5.1B vs. est. $4.57B (above); Q2 adj. gross margin outlook 60.5%.
• Verisign (VRSN) Q3 EPS $2.35 vs. est. $2.41; Q3 revs rise 6% y/y to $443M vs. est. $440.5M; said domain name base grew 6.1% y/y to 182.5 mln .com and .net registrations, with 13.1 mln new registrations in the qtr.

Mid-Morning Look

Friday, October 23, 2026

U.S. stocks opened lower as caution returned after a sharp pullback in AI-linked names, with telecom shares also under pressure on competition fears. Wall Street’s main indexes faced selling after Thursday’s slide—Nasdaq was down about 2.6%, the S&P 500 off 1.2%, and the Philadelphia Semiconductor Index (SOX) falling 6.7%—driven by renewed worries over AI financing costs, heavy capital spending, and questions around near-term monetization. AI shares have swung sharply this month. They came under pressure earlier amid CoreWeave’s debt burden and the rising cost of funding large infrastructure buildouts, then rallied midweek on upbeat results from SpaceX and Super Micro before reversing. Shares of tech were weaker early, but some segments of the AI space seeing a small bounce early.

The sell-off accelerated Thursday after Meta dropped nearly 8% on its first cash outflow in more than a decade and broader concerns over AI-related expenditures. Rising interest rates and intense capital demand have pushed financing costs higher, weighing on bond prices and equity valuations for some AI infrastructure players and raising doubts about future earnings.

Telecom stocks tumbled as well, with AT&T, Verizon, and T-Mobile falling after reports that SpaceX is in talks with cellular infrastructure companies about launching a nationwide wireless carrier. Cell-tower operators moved in the opposite direction—Crown Castle rose more than 10% and American Tower about 7%—while SpaceX shares gained roughly 2%. Under the surface, the recent action has looked less like a broad risk-off move and more like a rotation out of mega caps into other areas, leaving the S&P largely treading water amid the churn.

Macro factors added to the cautious tone. Brent crude traded above $114 a barrel—the highest since May—on escalating Middle East supply risks and reports of possible fresh military action involving Iran. Treasury yields held just under 5%, even as oil and inflation concerns lingered; part of the yield moderation has been linked to tightening financial conditions in the AI sector. U.S. growth has remained resilient, with Q3 on track to annualize in the 3% range, and AI-related investment continues to account for a large share of that expansion. Investors are also watching upcoming earnings and the Federal Reserve’s policy meeting next week for further direction.

• University of Michigan surveys of consumers 1-year inflation outlook final Oct 4.7% vs prelim 4.7% and final Sept 4.6% and University of Michigan surveys of consumers 5-year inflation outlook final Oct 3.5% vs prelim 3.5% and final Sept 3.4%.
• University of Michigan surveys of consumers sentiment final Oct 48.0 (consensus 46.3) vs preliminary Oct 46.3 and final Sept 48.1; current conditions index final Oct 46.7 vs prelim Oct 44.7 and final Sept 50.9; expectations index final Oct 48.8 vs prelim Oct 47.3 and final Sept 46.3.

• Oil Services & Equipment: as oil prices hit fresh 15 month highs, with Brent around $115 per barrel, oil stocks are leading in the S&P with notable gains for COP, CVX, EOG, HAL, OXY, XOM; also, SLB Q3 adj EPS $0.64 vs. est. $0.62 and Q4 revs rose 6% Y/y to $9.44B vs. est. $9.28B; Q3 N.A. revs $2.4B; Data Center Solutions revenue jumped 76% y/y to $230M; see a very compelling outlook for 2027, with further upside as Middle East activity recovers.
• Auto Suppliers sector: ALV and GTNX fall after Q3 misses, with Autoliv narrowing its FY adjusted operating margin guidance to the low end of its 10.5%-11% range on tariff, raw material and logistics headwinds; LKQ plunges after withdrawing FY26 guidance and naming Salvatore Abbate as new CEO, citing European ERP disruption and UK/Benelux volume declines.
• Homebuilders: the sector soared on Thursday (DHI, KBH, LEN, TOL, PHM) as a massive pullback in Treasury yields eased mortgage rates, giving a boost to the housing/mortgage industry. Today, NVR was downgraded to Underperform from Buy at Bank America after a disappointing Q326 in which orders and absorption were much weaker than it expected. Construction & Materials: FIX reported a strong Q3 with revenue and EBITDA growth exceeding expectations while organic revenue was +46% vs Keybanc’s +33% with a stronger outperformance in Electrical. BTB of 2x was also very strong with Electrical at 2.4x and Mechanical at 1.8x. Margins came in below expectations with Electrical margins ~200 bps lower q/q and Y/y.

• CCI +12%; shares of towers AMT, CCI, SBAC were higher after reports that SPCX seeks access to 80,000 US cell sites for Wireless network, while shares of traditional telco stocks TMUS, VZ, AT) tumbled amid fears of increasing competition and costs for existing telecom operators
• RHI +11%; after earnings as Q3 EPS $0.49 vs. est. $0.47; Q3 revs $1.36B, in-line with consensus $1.36B though guides Q4 EPS $0.36-$0.46 below consensus $0.47 and revs $1.285B-$1.385B vs. consensus $1.36B.
• RNG +8%; shares jumped after results as subscription revenue showed solid upside at $6.9M relative to the midpoint, its largest beat of the year, and the full year was raised by $10.5M at the midpoint. Ai ARR was up to 15% of total in a larger sequential jump.
• SKHY +3%; after nixed plans for a U.S. listing of its Solidigm flash memory and storage business; news seen as possible positive because the market may have struggled to absorb this new supply. The South Korean memory giant faced pushback from shareholders.
• SLB +2%; Q3 adj EPS $0.64 vs. est. $0.62 and Q4 revs rose 6% Y/y to $9.44B vs. est. $9.28B; Q3 N.A. revs $2.4B; Data Center Solutions revenue jumped 76% y/y to $230M; see a very compelling outlook for 2027, with further upside as Middle East activity recovers.

• ALV -6%; after Q3 adj EPS $2.19 missed the $2.31 consensus estimate while sales were little changed y/y, down to $2.69B vs. est. $2.73B; Q3 adj operating margin slipped to 9.7% versus 10.0% y/y; narrowed its full-year profitability guidance.
• BE -11%; more concerns in the power/AI/infrastructure sector, falling despite reported Q3 revs of $1.24B, ahead of consensus $1.07B, coming with improving GM at 34.5%, and op margin was 23.1% while raised guidance once again, now targeting revenue of $4.4B $4.6B.
• DECK -3%; Piper downgraded to Underweight citing a rare Q2 sales miss while Decker’s lowered sales guide at both brands and EPS for the year; as athletic marketplace dynamics aren't expected to meaningfully improve until next Summer/Fall.
• LKQ 18%; after withdraws FY26 guidance, citing weak performance in Europe; guides Q3 adj EPS in the range of $0.47-$0.53, below consensus of $0.69 citing Europe underperformance on ERP implementation disruptions in Germany and volume declines in UK and Benelux. Also appointed ex-Veritiv CEO Salvatore Abbate as CEO, effective December 15, 2026.
• MRNA -2%; sees continued pressure after leaked cancer-vaccine trial details disappointed investors; showed MRNA mRNA cancer vaccine, intismeran autogene, reduced the risk of melanoma recurrence or death by 42% in a Phase 3 trial. The sell-off could be partially due to concerns that SOC will instead favor neoadjuvant Keytruda therapy plus profit taking.
• MRTN -6%; after earnings miss as costs came in higher than expected from the broad based fuel headwinds felt in the TL industry, along with health Insurance claims and driver wage increases.
• NCLH -4%; was downgraded to Underweight at JPMorgan and cut tgt to $11 ahead of earnings as sees an inline quarter but downside risk to second half of 2027 net yield estimates. The potential for prolonged geopolitical headwinds could constrain demand recapture in Europe.
• TNGX -16%; shares volatile after the chemotherapy-free combination of its experimental drug vopimetostat and RVMD recently approved Rasonque shrank tumors in 82% of patients with advanced pancreatic cancer, early-stage data presented at ESMO show
• WDC -2%; despite the hard-drive maker reporting adjusted earnings per share of $4.64 versus $4.10 expected, and guiding quarterly revenue and earnings solidly above the Street. Management said it has "good visibility" with its top seven customers out to 2030 and 2031.

Closing Recap

Friday, October 23, 2026

US equity futures extended declines overnight following yesterday’s roll in both the S&P and Nasdaq on ai buildout funding concerns. Both indices then hit fresh five-week lows early in the regular session. The good news, perhaps, is Fed expectations are finding more agreement on no change in October with a hike more likely in December (71% implied probability).  The current implied rate now stands at 4.098% for December 2026, and 4.514% for December 2027. Following a couple early rally attempts, stocks were mixed into mid-morning with breadth favoring decliners by 2:1 as small caps underperformed with IWM (-0.57%) versus SPY (-0.27%) and QQQ (+0.46%). SPY breadth favored decliners by 7:2 while QQQ breadth similarly favored decliners by 8:5. Sector performance remained tilted negative, though with some reversal versus yesterday. Energy (+2.26%), Technology (+0.87%) and Real Estate (+0.25%) were early outperformers among S&P sector ETFs, while Consumer Discretionary (-1.31%), Industrials (-1.33%) and Consumer Staples (-1.70%) paced the underperformers with 3 sectors gaining versus 8 declining.

In sentiment today, the daily Fear & Greed Index registered Extreme Fear at 20/100 versus last week’s 22 (also Extreme Fear), and down from last month’s 32 (Fear) reading. By comparison, yesterday’s bull-bear spread in the American Association of Individual Investors (AAII) weekly survey was also lower week/week at -8.9% vs -2.9% last week. Bulls slipped to 36.9% from 38.7% while Bears rose to 45.8% from 41.6%. Interesting, though, that NAAIM’s survey of investment professionals continues to hold up, rising to 87.7, its highest since late September (88.1), from 74.5 the prior week. The reading remains in the middle of its range since May (71.8 to 102.7). The index represents the average exposure to US Equity markets reported by NAAIM members and ranges from −200% (2x short) to +200% (2x long).

Heading into the final hour of trading, the Nasdaq had ridden the rollercoaster down and up but was back to flat while the S&P remained in the red. As has been the case recently, performance was particularly narrow with only Energy, Technology and Real Estate seeing gains and breadth broadly in favor of decliners.  Next week we ramp up earnings and get a Fed rate decision, so expect plenty of catalysts and volatility potential. Key items for next week include: FOMC rate decision next Wednesday the 28th (2 day meeting starts Tuesday) - widely expected to hold rates steady, earnings from AMZN, BA, KO, V, GOOGL, MSFT, LLY, SBUX, ABBV, CVX, XOM among many others; also GDP and core PCE inflation data late in the week; ECB and BOJ holding Central bank policy meetings and also in the AI space, Oracle (ORCL) holding its Ai event midweek. For the week, the S&P 500 fell -0.47%, the Nasdaq declined -0.71%, and the Dow climbed 0.41%.

• University of Michigan surveys of consumers 1-year inflation outlook final Oct 4.7% vs prelim 4.7% and final Sept 4.6% and University of Michigan surveys of consumers 5-year inflation outlook final Oct 3.5% vs prelim 3.5% and final Sept 3.4%.
• University of Michigan surveys of consumers sentiment final Oct 48.0 (consensus 46.3) vs preliminary Oct 46.3 and final Sept 48.1; current conditions index final Oct 46.7 vs prelim Oct 44.7 and final Sept 50.9; expectations index final Oct 48.8 vs prelim Oct 47.3 and final Sept 46.3.

• WTI crude futures gained overnight and extended gains into the regular session as concerns grew over escalation with Iran and throughout the Middle East. Comments from Trump did nothing to de-escalate as he said we could end the war in Iran very quickly and take all of the oil but was non-committal on an actual path forward before noting the US would not attack prior to mid-term elections. Also supporting today’s rise was another tanker strike by an unknown projectile in the Strait of Hormuz near Oman. December WTI crude settled +$3.80/bbl, or +3.82%, at $103.27.  Brent Crude futures settle at $116.72/bbl, up $3.55, or 3.14% (for the week Brent rose 6.2% and WTI crude 4.3%).
• Treasury prices declined this week as a sharp pullback in Tech stocks led to a rally in safe haven assets. The benchmark 10 year yield rose 3.5 bps today to settle at 4.987%, but was down 11 bps on the week, falling for a third straight week (down 29 bps over that stretch). The 2 year yield fell 5.4 bps on the week to 4.68%, down 4 straight weeks into the FOMC meeting next week, and down 18bps over that stretch.

• Homebuilders: the sector soared on Thursday (DHI, KBH, LEN, TOL, PHM) as a massive pullback in Treasury yields eased mortgage rates, giving a boost to the housing/mortgage industry. Today, NVR was downgraded to Underperform from Buy at Bank America after a disappointing Q326 in which orders and absorption were much weaker than it expected.
• Construction & Materials: FIX reported a strong Q3 with revenue and EBITDA growth exceeding expectations while organic revenue was +46% vs Keybanc’s +33% with a stronger outperformance in Electrical. BTB of 2x was also very strong with Electrical at 2.4x and Mechanical at 1.8x. Margins came in below expectations with Electrical margins ~200 bps lower q/q and Y/y.

• Auto sector: auto supplier ALV shares fell after Q3 adj EPS $2.19 missed the $2.31 consensus estimate while sales were little changed y/y, down to $2.69B vs. est. $2.73B; Q3 adj operating margin slipped to 9.7% versus 10.0% y/y; now sees full year adjusted operating margin expectation to around 10.5%, the low end of our range of around 10.5%-11%; LKQ shares tumbled after withdraws FY26 guidance, citing weak performance in Europe; guides Q3 adj EPS in the range of $0.47-$0.53, below consensus of $0.69 citing Europe underperformance on ERP implementation disruptions in Germany and volume declines in UK and Benelux.

• Power sector: BE reported Q3 revs of $1.24B, ahead of consensus $1.07B, coming with improving GM at 34.5%, and op margin was 23.1% while raised guidance once again, now targeting revenue of $4.4B $4.6B, the raise being 12% at the midpoint, and at $450M, it's ~2.5x the 3Q beat; Backlog continues to grow faster than revenue, despite 3Q revenue increasing 138% y/y.
• MLPs/Pipeline sector: HESM upgraded from Market Perform to Outperform at Raymond James as argues the Chevron/Bakken contract-reset selloff overstates distribution risk. Reset reduces projected 2027 EBITDA by roughly $400m, yet pro-forma cash flow supports the ~$3.20 expected annual payout, roughly a 10.7% yield at report reference price.

• MRNA sees continued pressure after leaked cancer-vaccine trial details disappointed investors; showed MRNA mRNA cancer vaccine, intismeran autogene, reduced the risk of melanoma recurrence or death by 42% in a Phase 3 trial. After two years, 82% of patients who received the vaccine alongside MRLK’s Keytruda remained cancer-free vs. 70% on Keytruda alone.
• RDY has expanded its portfolio of generic versions of Ozempic with two new brands, according to product photographs and marketing materials reviewed by Reuters, after supply disruptions hit sales of its original Obeda injection in India's semaglutide market.
• TNGX shares volatile after the chemotherapy-free combination of its experimental drug vopimetostat and RVMD recently approved Rasonque shrank tumors in 82% of patients with advanced pancreatic cancer, early-stage data presented at ESMO show. The Phase 1/2 trial enrolled 22 heavily pretreated patients whose tumors harbor MTAP deletions.
• ZYME enters into an exclusive global license and collaboration agreement with RHHBY for zw209, a trispecific T cell engager targeting dll3. Zymeworks to receive $55M upfront, $40M at phase 1B start, up to $718M in milestones,

• Railroad sector: U.S. railroads continued to benefit from shippers shifting cargo to rail from trucks, with UNP, CSX and NSC all posting higher quarterly revenues and profits this week. Soaring diesel prices and tight trucking capacity have spurred demand for more efficient rail. Intermodal containers and trailers transported by railroads increased 12.6% from a year earlier in the week ended Oct. 17, according to the Association of American Railroads. CSX, UNP and NSC reported volume increases of 5%, 6% and 3%, respectively, in the third quarter. The companies benefited from fuel surcharges, though fuel expenses weighed on margins.
• Airlines, Trucking & Freight sector: MRTN shares fell after earnings miss as costs came in higher than expected from the broad based fuel headwinds felt in the TL industry, along with health Insurance claims and driver wage increases. Higher oil prices had a negative impact on airlines with UAL, AAL, DAL, LUV and others falling today.

• Towers sector: shares of towers AMT, CCI, SBAC were higher after headlines that SPCX seeks access to 80,000 US cell sites for Wireless network, while shares of traditional telco stocks TMUS, VZ, AT) tumbled. Bloomberg reported SpaceX is in talks with CCI to access at least 80,000 US cellular sites as it seeks to build a fourth nationwide wireless carrier. Bernstein said a potential SpaceX mobile network build-out would could create substantial leasing opportunities for tower companies while increasing competition and costs for existing telecom operators.

• Semiconductor stocks are testing their 200-day moving average for the first time in 16 months as concerns over returns on heavy AI spending weigh on technology shares. The iShares Semiconductor ETF (SOXX) fell 6.62% on Thursday, touching its 200-day moving average at $473.39, while the Philadelphia Semiconductor Index (SOX) also declined sharply.
• @bespokeinvest noted on X, “The 3x long semis ETF $SOXL is down 50% since October 5th when the semis made a short-term higher high. -50%.”
• RMBS announced a strategic partnership w/ChipAgents, a start-up focused on developing an autonomous semi design layer/platform across digital, analog, and 3D ICs. RMBS will adopt ChipAgents’ agentic AI platform across its chip design, IP development and verification workflows
• SKHY shares rose after scrapping plans for a US listing of its Solidigm unit after facing strong shareholder opposition and regulatory scrutiny over concerns that the move could undermine minority investor interests.
• In memory/HDD sector, WDC shares fell despite $4.64 adjusted EPS versus $4.11 expected; revenue $4.38B, +55% y/y; next-quarter revenue guide $5.0B–$5.2B, ahead of roughly $4.6B consensus - earnings strength overshadowed by AI-capex rerating and competition concerns.
• Software sector: RNG shares jumped after results as subscription revenue showed solid upside at $6.9M relative to the midpoint, its largest beat of the year, and the full year was raised by $10.5M at the midpoint. Ai ARR was up to 15% of total in a larger sequential jump than the Company had been putting up previously as the product portfolio both broadens and matures.

Street Recommendations

Friday, October 23, 2026

• SGHC Barclays initiated coverage of Super Group with an Equal Weight rating and $13 price target. The company's growth profile is attractive at is the stock's current trading valuation, the analyst tells investors in a research note. However, Barclays sees a relatively better risk/reward among Super Group's peers, namely DraftKings, Flutter Entertainment, and Rush Street Interactive.
• AXGN Barclays lowered the firm's price target on AxoGen to $50 from $55 and keeps an Overweight rating on the shares. The firm says its scenario analysis indicates the BioCircuit deal has the potential to drive significant upside to Street estimates as Nerve Tape is incorporated into Axogen's portfolio.
• R Barclays raised the firm's price target on Ryder to $315 from $300 and keeps an Overweight rating on the shares. The company's Q3 results came in well ahead of expectations with asset sale gains and leasing segment demand both surprising to the upside, the analyst tells investors in a research note.
• SAP Barclays analyst Raimo Lenschow raised the firm's price target on SAP to $288 from $243 and keeps an Overweight rating on the shares. The firm views the company's Q3 report as strong. SAP's AI offering is gaining traction, the analyst tells investors in a research note.
• STLD Barclays analyst Richard Garchitorena lowered the firm's price target on Steel Dynamics to $280 from $285 and keeps an Overweight rating on the shares. The company reported record steel earnings with a resolved aluminum yield issue that keep its 2027 earnings ramp intact, the analyst tells investors in a research note.
• WH Barclays analyst Brandt Montour lowered the firm's price target on Wyndham Hotels to $101 from $102 and keeps an Overweight rating on the shares. The company's "beat and raise" Q3 was overshadowed by a net unit growth cut, which was expected, the analyst tells investors in a research note. The firm believes the "cautious tone" on interest rates weighs on the whole space.

• ALLE BofA upgraded Allegion to Buy from Neutral with a price target of $200, up from $164, following Q3 earnings and guidance that was "significantly better" than the firm's expectations. Following the report, the firm raised its 2026, 2027 and 2028 EPS estimates by 3%, 9% and 11%, respectively.
• PHVS BofA upgraded Pharvaris to Buy from Neutral with an unchanged price target of $44. Shares have pulled back since the positive Phase 3 prophylactic data in September, though the firm does not think this reflects a change in fundamentals given continued positive feedback for key opinion leaders, says the analyst, who sees an "attractive entry point" ahead of regulatory catalysts expected in 2027.
• VLO BofA lowered the firm's price target on Valero to $465 from $471 and keeps a Neutral rating on the shares. After a "strong beat carried by East Coast refining," the firm says Valero's refinery systems reflect no year-over-year signals of demand destruction during the last seven days, apart from falling home heating oil sales in Europe amid warmer weather there.
• BFH BofA raised the firm's price target on Bread Financial to $131 from $127 and keeps a Buy rating on the shares. Shares underperforming following the Q3 print is due to management's measured tone on 2027 with NIM peaking in 2026, says the analyst, who adds that the "2027 bar is tougher because 2026 keeps getting better."

• AVTX BTIG analyst Julian Harrison lowered the firm's price target on Avalo Therapeutics to $10 from $58 and keeps a Buy rating on the shares. The Phase 3 INTREPID study evaluating the safety and efficacy of lutikizumab, an investigational dual-variable-domain interleukin 1alpha/1beta antagonist, in adults and adolescents with moderate to severe hidradenitis suppurativa was weaker than expected, the analyst tells investors in a research note. BTIG has lowered its probability of success for abdakibart in HS from 85% to 80%, and cut its peak sales estimate from $5.2B to $1.2B.
• BE BTIG lowered the firm's price target on Bloom Energy to $250 from $295 and keeps a Buy rating on the shares after its Q3 results. The management called out a near term margin drag due to the ramp of new production capacity and expedited customer timelines, the analyst tells investors in a research note. Bloom remains in prime position to deliver much needed BtM generation capacity, but the cost of adding manufacturing capacity is weighing on the margin story, the firm added.
• CRS BTIG lowered the firm's price target on Carpenter Technology to $470 from $620 and keeps a Buy rating on the shares. The firm cites the company's "unusual" revenue miss, though the management states that Specialty Alloys Operations - SAO - operating margins have not peaked but rather just slowed due to quarterly noise, the analyst tells investors in a research note.

• SRAD Canaccord analyst Jason Tilchen lowered the firm's price target on Sportradar to $22 from $24 and keeps a Buy rating on the shares. The firm noted sentiment remains challenged across digital gaming, with prediction market (PM) cannibalization and muted sportsbook growth since the World Cup still weighing on US online sports betting (OSB) stocks.
• KMB Canaccord analyst Susan Anderson initiated coverage of Kimberly-Clark with a Hold rating and $105 price target. The company is transitioning from a commodity-focused paper business to a premium personal care and wellness platform, the analyst tells investors in a research note. The firm believes Kimberly-Clark's shift toward health and wellness with the Kenvue acquisition is necessary since its legacy paper products have become increasingly commoditized. However, the company faces immediate challenges, including sales disruptions in China, higher commodity costs, and the aftermath of a distribution center fire, contends Canaccord. It cites near-term uncertainties and execution risks for the Hold rating.

• IMUX Cantor Fitzgerald analyst Yanni Souroutzidis initiated coverage of Immunic with an Overweight rating.

• ACM Citi lowered the firm's price target on Aecom to $79 from $84 and keeps a Buy rating on the shares. The firm adjusted targets in the engineering and construction group as part of a Q3 earnings preview. Citi says that despite "increased noise" on AI infrastructure investment growth, "robust" backlogs and company-specific actions position its preferred companies to meet or beat consensus estimates.
• J Citi analyst Andrew Kaplowitz raised the firm's price target on Jacobs to $188 from $181 and keeps a Buy rating on the shares. The firm adjusted targets in the engineering and construction group as part of a Q3 earnings preview. Citi says that despite "increased noise" on AI infrastructure investment growth, "robust" backlogs and company-specific actions position its preferred companies to meet or beat consensus estimates.
• KBR Citi lowered the firm's price target on KBR to $48 from $49 and keeps a Buy rating on the shares. The firm adjusted targets in the engineering and construction group as part of a Q3 earnings preview. Citi says that despite "increased noise" on AI infrastructure investment growth, "robust" backlogs and company-specific actions position its preferred companies to meet or beat consensus estimates.
• MTZ Citi lowered the firm's price target on MasTec to $308 from $408 and keeps a Buy rating on the shares. The firm adjusted targets in the engineering and construction group as part of a Q3 earnings preview. Citi says that despite "increased noise" on AI infrastructure investment growth, "robust" backlogs and company-specific actions position its preferred companies to meet or beat consensus estimates.
• FLR Citi analyst Andrew Kaplowitz added an "upside 90-day catalyst watch" on Fluor while keeping a Buy rating on the shares with a $68 price target into the earnings report. The company could have booked "potentially significant" awards in Q3 along with a "cleaner" portfolio mix, the analyst tells investors in a research note.
• MRNA Citi analyst Geoff Meacham says Moderna shares dropped yesterday after leaked, then later confirmed, Phase 3 INTerpath-001 data demonstrated intismeran plus pembrolizumab reduced the risk of recurrence or death by 42% versus pembrolizumab monotherapy in adjuvant melanoma. This is is "clinically meaningful advance" but expectations had moved beyond a positive melanoma study, with some investors "assigning value to an effective-cure narrative and success across additional solid tumors," the analyst tells investors in a research note. Citi believes the new data raises questions about whether intismeran's benefit justifies individualized tumor harvesting and manufacturing. It keeps a Sell rating on Moderna shares with an $80 price target.
• VRSN Citi raised the firm's price target on VeriSign to $345 from $325 and keeps a Buy rating on the shares. The firm sees a clear catalyst path for the company to accelerate revenue growth into 2027. Citi says domain registrations are accelerating. It believes VeriSign is well positioned to report upside to revenue and earnings estimates "through multiple levers going forward."

• TMO DZ Bank downgraded Thermo Fisher to Hold from Buy with a $650 price target.

• ABBV Goldman Sachs raised the firm's price target on AbbVie to $294 from $258 and keeps a Neutral rating on the shares. AbbVies lutikizumab met Phase 3 endpoints in hidradenitis suppurativa with a tolerable safety profile, but efficacy appears weaker than Bimzelx, limiting its likely commercial upside despite potential FDA approval and unmet treatment needs, the analyst tells investors in a research note.
• RHI Goldman Sachs raised the firm's price target on Robert Half to $33 from $29 and keeps a Sell rating on the shares. Robert Half's improving margins and returning growth in Talent Solutions and Protiviti signal a gradual recovery, but declining contract staffing volumes, weak discretionary hiring, and longer-term AI disruption risks continue to cloud the earnings outlook and weigh on shares, the analyst tells investors in a research note.
• NDAQ Goldman Sachs analyst Alexander Blostein raised the firm's price target on Nasdaq to $120 from $109 and keeps a Buy rating on the shares. The outlook remains constructive, supported by 18% FinTech ARR growth, strong index inflows and data demand, long-term tokenization opportunities, and robust buybacks, while higher near-term expenses are expected to be offset over time by AI-driven efficiencies and operating leverage, the analyst tells investors in a research note.
• DECK Goldman Sachs analyst Brooke Roach lowered the firm's price target on Deckers Outdoor to $75 from $86 and keeps a Sell rating on the shares. Deckers Outdoor beat Q2 EPS expectations excluding a tariff-refund benefit, but weaker HOKA and UGG sales prompted lower FY outlooks amid shipment delays, softer U.S. consumer demand, and underwhelming HOKA franchise updates, despite continued international strength, the analyst tells investors in a research note.
• WDC Goldman Sachs lowered the firm's price target on Western Digital to $540 from $615 and keeps a Neutral rating on the shares. Despite a strong quarter and guidance well above consensus, Western Digital shares may trade modestly lower as elevated near-term capex and potential competitor capacity increases could cap valuation multiples, even as management expects sustained demand, constrained industry supply, and continued growth in revenue, margins, and earnings, the analyst tells investors in a research note.
• POOL Goldman Sachs raised the firm's price target on Pool Corp. to $245 from $215 and keeps a Buy rating on the shares. Pool's strategic initiatives are showing early success through customer growth, improved execution, and pricing discipline, with potential 2027 revenue upside from pricing, longer-term industry outperformance, M&A optionality, and robust free cash flow supporting growth investments and shareholder returns despite macro headwinds, the analyst tells investors in a research note.

• ULTA Jefferies raised the firm's price target on Ulta Beauty to $730 from $670 and keeps a Buy rating on the shares. After having hosted Ulta's CEO and Chief Merch & Digital Officer, the firm came away more bullish on the company's ability to take share in a highly competitive market, the analyst tells investors.

• BC JPMorgan lowered the firm's price target on Brunswick to $66 from $80 and keeps a Neutral rating on the shares. The firm cut its second half of 2026 and 2027 estimates for Brunswick after its channel work pointed to below-industry sell-throughs for the company's boat brands in dealer networks with elevated use of rebates and promotions.
• BE JPMorgan lowered the firm's price target on Bloom Energy to $292 from $314 and keeps an Overweight rating on the shares. The firm cites lower trading multiples in the peer group for the target cut. Bloom reported Q3 results well above expectations and significantly increased its fiscal 2026 guidance for the third time this year, the analyst tells investors in a research note. JPMorgan believes the company's execution "continues to impress."
• CNK JPMorgan raised the firm's price target on Cinemark to $41 from $39 and keeps a Neutral rating on the shares. The firm adjusted targets in the cinema group as part of a Q3 earnings preview. JPMorgan upped its 2026 box office outlook citing Q3 strength in demand.
• IMAX JPMorgan raised the firm's price target on Imax to $58 from $50 and keeps an Overweight rating on the shares. The firm adjusted targets in the cinema group as part of a Q3 earnings preview. JPMorgan upped its 2026 box office outlook citing Q3 strength in demand.

• ATRO KeyBanc initiated coverage of Astronics with a Sector Weight rating and no price target. The firm sees a favorable macro backdrop within aerospace and defense amid aging fleets, production ramps, and capacity constraints. However, KeyBanc is cautious on the potential impact from elevated fuel prices and future fleet retirements. While aftermarket demand remains strong, Astronics' risk/reward is more balanced than in prior periods, the analyst tells investors in a research note.

• SBUX Mizuho lowered the firm's price target on Starbucks to $105 from $115 and keeps a Neutral rating on the shares. The firm updated targets in the restaurant group ahead of the Q3 reports. Mizuho favors Brinker, Restaurant Brands and Wingstop going into earnings next week.
• CAKE Mizuho analyst Nick Setyan raised the firm's price target on Cheesecake Factory to $110 from $93 and keeps a Neutral rating on the shares. The firm updated targets in the restaurant group ahead of the Q3 reports. Mizuho favors Brinker, Restaurant Brands and Wingstop going into earnings next week.
• WING Mizuho lowered the firm's price target on Wingstop to $200 from $240 and keeps an Outperform rating on the shares. The firm updated targets in the restaurant group ahead of the Q3 reports. Mizuho favors Brinker, Restaurant Brands and Wingstop going into earnings next week.

• WDC Morgan Stanley raised the firm's price target on Western Digital to $668 from $643 and keeps an Overweight rating on the shares. Western posted a strong, pricing-driven beat in the September quarter and December quarter EPS guidance of $5.80 was 13% above the firm's above-consensus $5.25 forecast, but "the market continues to be fickle," the analyst tells investors.
• BE Morgan Stanley raised the firm's price target on Bloom Energy to $335 from $310 and keeps an Overweight rating on the shares. Bloom beat consensus and buyside expectations on revenue and EBITDA, while issuing its third guidance raise for the year, notes the analyst, who adds that "another beat and raise continues Bloom's strong execution."
• PG Morgan Stanley raised the firm's price target on Procter & Gamble to $185 from $166 and keeps an Overweight rating on the shares. Brand interventions and recent reinvestment have "begun to bear fruit," says the analyst, pointing to Q1 organic sales growth strength as evidence. The firm also views P&G as well positioned from a relative EPS standpoint in "a tough HPC environment," the analyst added.

• DIOD Needham initiated coverage of Diodes with a Buy rating and $110 price target. The firm says Diodes offers an "attractive combination" of growth and margin expansion amid rising semiconductor content and improving manufacturing leverage. AI infrastructure gives the company a "meaningful secular tailwind" while the company sees a recovery in automotive and industrial demand, the analyst tells investors in a research note.

• GL Piper Sandler downgraded Globe Life to Neutral from Overweight with a price target of $165, down from $200. Globe Life is viewed as a "predictable safe haven" within the life insurance industry, but this is less so following the Q3 earnings report, the analyst tells investors in a research note. Piper says three negatives appeared this quarter: exposure to medical claims severity, medical claim irregularity in Medicare supplement that will likely continue into subsequent quarters, and 2027 guidance that, when unpacked, is less favorable on an underlying core business basis than expected.
• EL Piper Sandler analyst Anna Andreeva raised the firm's price target on Estee Lauder to $125 from $115 and keeps an Overweight rating on the shares ahead of quarterly results. The firm says innovation pipeline looks much improved, China Beauty sales continue to outpace overall retail sales, and passenger traffic through China's airports bounced back to growth in Q1 2027.
• GNRC Piper Sandler lowered the firm's price target on Generac to $279 from $303 and keeps an Overweight rating on the shares. The firm hosted Partners at a nationally ranked law firm to discuss EO 14420, which gives DOE authority to block / condition foreign equipment used in the bulk-power system, and whether data center emergency backup gen falls within its scope. The key takeaway was yes, backup generators for large loads could be in scope, but would be a low priority if they lack comms, are less critical to grid function, and domestic alternatives are in short supply.
• BX Piper Sandler raised the firm's price target on Blackstone to $126 from $125 and keeps a Neutral rating on the shares. The firm notes Blackstone posted a core EPS beat and the stock traded up 8%-plus. More so than current quarter earnings, Piper believes strength was driven by management's commentary that it expects a significant step-up in realizations in Q4 2026 and double-digit base management fee growth in 2027.

• HESM Raymond James analyst J.R. Weston upgraded Hess Midstream LP to Outperform from Market Perform with a $32 price target. The stock's recent selloff following the Chevron restructuring has created a more attractive entry point, the analyst tells investors in a research note. The firm believes Chevron's 38% ownership cancellation, contribution of Denver-Julesburg assets, and contract extensions to 2045 "provide meaningful exchange of value for the lower rate."
• FR Raymond James downgraded First Industrial Realty to Outperform from Strong Buy with a price target of $71, down from $86. The company reported a "'weaker" Q3 with reduced development leasing guidance for 2026 and a 2027 outlook for cash leasing spreads that reflected a sooner and more substantial slowdown than anticipated, the analyst tells investors in a research note. Raymond James now assumes a lower valuation for the shares.
• ORI Raymond James downgraded Old Republic to Outperform from Strong Buy with a price target of $45, down from $48. Old Republic's earnings outlook has weakened amid elevated mortgage rates, soft housing activity, and intensifying Specialty Insurance competition, though strong capital generation, shareholder returns, and disciplined reserving remain supportive, the analyst tells investors in a research note.
• BNTC Raymond James analyst Tiago Fauth initiated coverage of Benitec Biopharma with an Outperform rating and $14 price target. Benitec is a clinical-stage biotechnology company developing BB-301, a potentially disease-modifying intramuscular gene therapy currently in Phase 1b/2a for the treatment of oculopharyngeal muscular dystrophy-related dysphagia, the analyst tells investors in a research note. The firm think the merits outweigh the risks. Benitec's current valuation implies low expectations, contends Raymond James.
• CAMP Raymond James initiated coverage of Camp4 Therapeutics with a Strong Buy rating and $10 price target. CMP-002 represents an underappreciated, potentially multibillion-dollar opportunity in SYNGAP1-related disorders, with strong genetic rationale and encouraging preclinical evidence of SynGAP restoration and functional rescue, though clinical benefit remains unproven ahead of the pivotal Phase 1/2 readout in 1H28, the analyst tells investors in a research note.

• MRTN Stephens lowered the firm's price target on Marten Transport to $12.50 from $15 and keeps an Equal Weight rating on the shares. Q3 EPS was light of the firm's estimate and consensus as costs came in higher than expected, the analyst tells investors.
• TFIN Stephens raised the firm's price target on Triumph Financial to $70 from $67 and keeps an Equal Weight rating on the shares. A Q3 EPS miss was driven by elevated LLP expense as credit trends slipped from higher nonaccrual loans, though the firm was "encouraged" to see the Q3 pre-provision net revenue beat, the analyst tells investors.
• ENVA Stephens analyst Kyle Joseph raised the firm's price target on Enova to $225 from $215 and keeps an Overweight rating on the shares, stating that the company delivered "solid" Q3 results and "strong" Q4 guidance.
• POOL Stephens analyst Trey Grooms raised the firm's price target on Pool Corp. to $230 from $200 and keeps an Overweight rating on the shares. The Q3 sales beat was driven largely by pricing, with volume flattish overall, says the analyst, who is "increasingly convicted that trough earnings are behind us," which should support a recovery in the multiple ahead of an eventual underlying demand inflection.

• BOOT TD Cowen lowered the firm's price target on Boot Barn to $160 from $190 and keeps a Buy rating on the shares as part of a fiscal Q2 earnings preview. TD views the earnings print as "critical" given the year-to-date stock pressure on concerns around slower comps. Boot Barn's compares ease after October, the analyst tells investors in a research note.

• WDC UBS lowered the firm's price target on Western Digital to $435 from $470 and keeps a Neutral rating on the shares. Western Digital delivered another strong quarter and outlook amid supply-constrained demand, but rising capex, accelerating industry supply, and greater uncertainty over post-cycle demand could drive further multiple compression, undermining the case for HDD stocks to trade at a premium to memory stocks, the analyst tells investors in a research note.
• DECK UBS lowered the firm's price target on Deckers Outdoor to $137 from $140 and keeps a Buy rating on the shares. Despite disappointing FY27 sales guidance, Deckers' Hoka and Ugg brands remain healthy with potential for high-single-digit-plus five-year sales CAGR, supporting a constructive long-term outlook despite concerns that growth may have peaked, the analyst tells investors in a research note.
• LUV UBS analyst Atul Maheswari raised the firm's price target on Southwest to $54 from $52 and keeps a Buy rating on the shares. Southwest's Q3 RASM beat and strong Q4 guidance highlight accelerating business momentum and the benefits of its transformation initiatives, supporting further margin expansion and potential stock upside despite elevated fuel costs, the analyst tells investors in a research note.
• APPF UBS raised the firm's price target on AppFolio to $240 from $220 and keeps a Neutral rating on the shares. AppFolio's Q3 results show modestly slowing unit and revenue growth amid multifamily market headwinds, with underlying Q4 growth near 17%, but persistent financing constraints could further pressure growth in FY27, the analyst tells investors in a research note.
• RNG UBS raised the firm's price target on RingCentral to $105 from $45 and keeps a Neutral rating on the shares. RingCentral's accelerating subscription revenue growth, driven by stabilizing UCaaS demand and rising AI/CCaaS contributions, alongside higher FY26 guidance and improving margins, reinforces confidence in continued growth and progress toward its 20% GAAP EBIT margin target, the analyst tells investors in a research note.

• ARGX Wells Fargo lowered the firm's price target on Argenx to $1,336 from $1,356 and keeps an Overweight rating on the shares. The firm notes that the muted reaction reflects the run-up into the print with the Q3 Vyvgart beat priced in. Wells would be a buyer ahead of the December empa Phase 3 multifocal motor neuropathy data, where positive results should drive a re-rating. 2027 setup is attractive, the firm says, with myasthenia gravis tailwinds.
• ABT Wells Fargo raised the firm's price target on Abbott to $120 from $119 and keeps an Overweight rating on the shares. The firm is updating its Nutrition NewCo spin analysis and valuation methodology. Wells now values Abbott on a sum-of-the-parts basis, based on 18.5-times its ex-Nutrition 2028 EPS and $9 Nutrition equity value.
• SPOT Wells Fargo raised the firm's price target on Spotify to $660 from $570 and keeps an Overweight rating on the shares. Operating expenses are decelerating and gross margins are holding in fine as Spotify becomes far more tech-enhanced and feature-rich, the firm says. Wells sees operating margin leverage ahead and investments support strong revenue growth visibility, which are the reasons to pay 25-times price-to-free-cash-flow.
• PG Wells Fargo raised the firm's price target on Procter & Gamble to $180 from $164 and keeps an Overweight rating on the shares. The company's Q1 saw its best organic sales growth in nearly three years and comparisons get easier in Q2 and Q4, the firm notes. This puts upside to reiterated top-line guidance well in scope along with prospects for improving EPS confidence through FY27, despite worse inflation, adds Wells.
• DOW Wells Fargo analyst Abigail Eberts raised the firm's price target on Dow Inc. to $40 from $35 and keeps an Overweight rating on the shares. The firm is raising its estimates to account for ongoing self-help measures plus a stronger outlook for P&SP as Wells expects further traction for polyethylene price increases near-term given the ongoing conflict in the Middle East.
• DECK Wells Fargo lowered the firm's price target on Deckers Outdoor to $70 from $85 and keeps an Underweight rating on the shares. The firm notes this was a second straight "print with holes, and the holes get larger." HOKA concerns grow, while Ugg now a larger piece of the Bear Case too, says Wells, adding that it sees nothing compelling beyond valuation.
• SLM Wells Fargo analyst Donald Fandetti lowered the firm's price target on SLM to $24 from $28 and keeps an Overweight rating on the shares. The firm notes market volatility/rates led SLM to hold off on seasoned loan sales, a key driver of the lower 2026 EPS guide. Wells points out that debt resolution issues are still weighing a bit.
• HBAN Wells Fargo lowered the firm's price target on Huntington Bancshares to $19 from $21 and keeps an Overweight rating on the shares. The firm notes the company's core results were mixed, and its guide fell slightly short. While the acceleration in EPS growth and ROTCE remains, the trajectory is likely to take longer than initially expected, Wells adds.
• SCCO Wells Fargo raised the firm's price target on Southern Copper to $193 from $190 and keeps an Equal Weight rating on the shares. The firm notes the Q3 beat and strong free cash flow appeared largely priced into its full valuation, keeping Wells on the sidelines. Tia Maria start-up was pushed to the first half of 2028, while the pending capital expenditures review suggests potential upside to the $1.8B budget.

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

• 10:30 AM ET                 Dallas Fed manufacturing Index for October
• 1:00 PM ET US Treasury to sell $69B in 2-year notes

• Earnings After the Close: AGYS AMKR ARE BLX BRO BRX CBK CDNS CINF CLS CLW CTOS DORM FLXS FSBC FSUN GBX GGB HIG HTO HWKN KFRC NE NUE NWBI PDM PECO PFG PSA PSMT RMBS SSD TRTX VLRS WELL ZDGE

• 8:30 AM ET                   Durable Goods Orders M/M for September
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 9:00 AM ET                   Monthly Home Prices M/M for August
• 9:00 AM ET                   CaseShiller 20-city index for August
• 10:00 AM ET                 Consumer Confidence for October
• 10:00 AM ET                 New Home Sales M/M for September
• 10:00 AM ET                 Richmond Fed Index for October
• 1:00 PM ET US Treasury to sell $70B in 5-year notes
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: AAT ACGL APAM BANC BBAI BBNX BKR BOOM BUSE BXP CAKE CHE CR CSGP CTO CZR ENPH EQT ESS EXE EXLS EXR FCF FE FFBC FFIV HAFC HIW HOOD ICLR INTA IVT KIDS LOGI LPLA LSTR LUNG MANH MCRI MIR NBHC NBR NOV NTB NXPI OCFC OI OKE ORN PDS PPG RBBN RNR ROG RRC RUSHA SKHY ST STAG STX TER TRMK UCTT UHS UMBF V VTR WERN WM WPC ZWS

• 8:30 AM ET                   Advance goods Trade Balance for September
• 10:30 AM ET                 Weekly EIA Inventory Data
• 2:00 PM ET FOMC Interest rate decision, no rate change expected

• Earnings After the Close: AEM AGI AIN ALGN ALKT ALRS AM AMRZ AR AUR AWK AXS BELFA BHC BHE BN BNL CBAN CCS CHDN CLB CLPT CMG CMPR CNMD CNXN COHU CP CSL CVNA CYH EBAY EFOR EG EGO EHC EPAC EPR EQIX F FCPT FDX FLS FORM FTNT GEN GFL GKOS GOOGL HDSN HLI HONA INVH KGC KLAC KREF LXU MAA MAZ MGM MGRC MORN MSFT MTH MUSA MYRG NEO NNBR NOW NXT OLED ORLY PBI PFS PI PLXS PPC PRCH PTEN QTWO QUAD RJF RM RSI SCI SFM SIMO STRL TDOC TENB THG TMUS TYL UFPI VICI WEX WFG WHD

• 8:30 AM ET                   Continuing Claims
• 8:30 AM ET                   Personal Income M/M for September
• 8:30 AM ET                   Personal Spending M/M for September
• 8:30 AM ET PCE Price Index M/M for September
• 8:30 AM ET PCE Price Index Y/Y for September
• 8:30 AM ET                   Core PCE Price Index M/M for September
• 8:30 AM ET                   Core PCE Price Index Y/Y for September
• 8:30 AM ET                   Gross Domestic Product (GDP) Q3-E
• 8:30 AM ET GDP Consumer Spending for Q3-E
• 8:30 AM ET GDP Price Deflator for Q3-E
• 8:30 AM ET GDP PCE Price Index M/M for Q3-E
• 8:30 AM ET GDP Core PCE Price Index Y/Y for Q3-E
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 10:30 AM ET                 Dallas Fed PCE for September
• 1:00 PM ET US Treasury to sell $44B in 7-year notes

• Earnings After the Close: ACCO ACIC AJG ALHC AMZN ASUR ATEC ATOM ATR AX AXTI BFAM BVN CDNA CNO COIN COLM COUR CUBE CUZ CVLG DLR DVA DXC DXCM EIX EMN ERIE EXEL EXPO FBIZ FDXF FHI FISI FMC FND FORR FSLR GDDY GDYN GILD GLPI HR HTGC ILMN INBK INGM INTC INVX IR KWR LNT MDLZ MEOH MERC MHK MIAX MMSI MSTR MTX MTZ NEXA OLN OSIS OSPN PEB PFSI PINS PMT PRTTS PTCT RBLX RDDT REAL RIVN RMD RSG RYAN SBUX SKYW SNDK SNDR SPSC SPXC STRZ SUPN SYK TBBK TFII TWLO VALE VLTO WKC WTI WY

• 9:45 AM ET                   Chicago PMI for October
• 1:00 PM ET                    Baker Hughes Weekly rig count data

• China NBS Manufacturing PMI, Composite PMI for October
• China NBS Non-Manufacturing PMI for October

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