Early Look

Wednesday, October 21, 2026

U.S. futures are looking mixed with Dow futures indicated lower, while Nasdaq futures bounce slightly behind mixed earnings results last night as investors ready themselves for a busy earnings day, including results from Tesla (TSLA), Meta (META) and IBM (IBM) after the close. SpaceX (SPCX) shares rise over 8% overnight after posted better-than-expected quarterly results driven by AI infrastructure and cloud services growth, while Elon Musk said both SpaceX and Tesla have formed special committees to discuss the idea of a merger. Netflix (NFLX) shares slide -6% in premarket after the streamer's Q4 revenue forecast missed estimates and 2026 ad revenue guidance was lowered. Semis (SOX) get a boost after SMCI last night boosted its next quarter margins and rev outlook sending shares higher by 10%. US WTI crude oil futures rise more than $2 to session high of $99.88/bbl ahead of weekly oil stockpiles data later this morning. In Asian markets, The Nikkei Index jumped 545 points to 64,621, the Shanghai Index fell -22 points to 3,713, the Kospi rose 32 points or 3.76% to 891, and the Hang Seng Index fell -215 points to 23,651. In Europe, the German DAX is up 133 points to 25,437, while the FTSE 100 is little changed at 10,732. Wall Street ended Tuesday's session with mixed results. The S&P 500 and Dow Jones Industrial Average advanced, while the Nasdaq Composite closed slightly lower.

• The Dow Jones Industrial Average rose 529.85 points, or 1.02%, to 52,495.88
• The Nasdaq Composite slipped -6.07 points, or 0.02%, to 26,424.82
• The Russell 2000 Index advanced 45.12 points, or 1.65% to 2,773.41

• 10:30 AM ET                 Weekly DOE Inventory Data
• 1:00 PM ET US Treasury to sell $13B in 20-year notes

• Earnings After the Close: BANR BBT BDN CACI CASH CATY CCI CSX EFSB EGBN EGP EPRT ESI FAF FR FRME FULT GGG GL GSBC GTY HBNC HXL IBM KALU KMI KNX LBRT LOB LRCX LUV MEDP META MMLP MOH NTST OII PKG PNFP Q ROL RS SAP SEIC SLG SON SSB STC TCBI TCBX TFIN TSLA TXN URI WCN WDFC WH WSBC

• Stride Inc. (LRN) Q1 revs $639.4M vs. est. $612.3M; Sees 2Q outlook for revenue of $625M-645M vs. consensus of $633.1M and 2Q outlook for adj operating income of $135M-$145M; sees FY outlook for revenue of $2.53B-$2.61B above consensus estimates of $2.54B and prior view $2.49B-$2.52B.

• US-listed space-linked stocks rally premarket after SpaceX reports first quarterly profit as publicly traded company. US space cos Firefly Aerospace (FLY), Rocket Lab (RKLB), Intuitive Machines (LUNR), and Satcomms firm EchoStar (SATS) all looking higher post SPCX results.
• Wabtec (WAB) Q3 adj EPS $2.83 vs. est. $2.73 and revs $3.12B vs. est. $3.2B; reports total backlog $31.435B as of September 30; raises FY26 adjusted EPS view to $10.85-$11.05 from $10.60-$10.90 and above consensus $10.87.
• Weatherford Int’l (WFRD) Q3 EPS $1.66 topped consensus $1.27; Q3 revs $1.14B vs. est. $1.13B; said Q3 adj EBITDA margin expanding 204 basis points sequentially to 22.2% and adjusted free cash flow of $155M

• Annaly Inc. (NLY) Q3 book value per common share $17.86; Q3 pre-tax loss $984.4M; Q3 net interest income $543.6M
• Bank OZK (OZK) Q3 EPS $1.50 vs. est. $1.43 (beat); NII $403Mm vs est $397.43Mm (above est.); NIM 4.24%
• Capital One Financial (COF) Q3 adj. EPS $6.69 vs. est. $5.50 (beat); revenue $16.34B vs. est. $16.2B (beat); NII $12.9B vs est $12.732B; NIM 8.41%; net charge-offs $3.1B; Discover integration continues to go well; 30+ day performing delinquencies rate for Auto 4.64% at Sept end.
• Chubb Inc. (CB) Q3 adj. EPS $7.66 vs est $6.81, +0.8% YoY; net premiums written $15.1B vs est $13.801B, +1.9% YoY, with P&C +1.9% and Life +1.4%; P&C combined ratio 84.1%; ROE 15.3%.
• East West Bancorp (EWBC) Q3 EPS $2.76 vs. est. $2.72; Q3 revs rose 6% y/y to $823M vs. est. $811.1M; Q3 Quarter-end deposits increased 7% y/y to a record $71.5B, while loans grew 7% to a record $59.7B; Q3 provision for credit losses jumped 36% from the previous quarter to $45M.
• Hancock Whitney (HWC) Q3 adj. EPS $1.66 vs. est. $1.66 (in line); revenue $420.118Mm vs. est. $421.744Mm (miss); NII $313.107Mm vs est $323.45Mm; NIM 3.61%; adj. PPNR $189.3Mm; CET1 11.53%; FY26 NII growth guidance 9%-9.5% vs est +8.79%.
• Metropolitan Bank (MCB) reports Q3 EPS $2.58, tops consensus $2.38; Q3 revs $100.6M vs. consensus $97.1M; Q3 net interest income rose 26.3% y/y; Q3 Net interest margin expanded to 4.36% from 3.88% y/y citing higher yields on loans and securities, elevated prepayment penalties and deferred fee recognition from increased loan payoffs.
• Nicolet Bankshares (NIC) Q3 core EPS $3.15 tops consensus $3.05; Q3 revs $175.02M vs. est. $141.28M; Q3 Net interest income climbed 79% y/y to $142.23M while noninterest expense fell 12% q/q to $91.3M, primarily due to lower merger-related costs and debt-redemption losses.
• QCR Holdings (QCRH) Q3 adj. EPS $2.21 vs. est. $2.09 (beat); revenue $99.174Mm vs. est. $81.793Mm (beat); NII $68.7Mm vs est $72.7Mm (miss).

• Integra LifeSciences (IART) lowers FY26 adjusted EPS view to $2.30-$2.40 from $2.40-$2..00; lowers FY26 revenue view to $1.634B-$1.654B from $1.654B-$1.695B (est. $2.38/$1.66B); FY26 revenue guidance represents a reported growth of (0.1%)-1.2% and organic growth of (-0.3%) to (0.9%).
• Intuitive Surgical (ISRG) Q3 adj. EPS $3.00 vs. est. $2.64 (beat); revenue $3.049B vs. est. $2.906B (beat); adj. operating Income $1.27B vs est $1.129B; da Vinci systems shipped 546; FY26 worldwide da Vinci procedure growth guidance 14%-15%; FY26 adj. gross margin guidance 68.7%-69.3%; booked $450Mm class-action settlement charge.
• Thermo Fisher (TMO) Q3 adj EPS $6.68 vs. est. $6.40; Q3 revs $12.4B vs. est. $11.95B; said Q3 results were driven by launches of new products including Orbitrap Isora mass spectrometer, EMPAD G2 electron detector, EliA CTD 13 Screen autoimmune test, and Ion 560 sequencing chip.

• AT&T Corp. (T) Q3 adjusted EPS $0.65 vs. est. $0.60; Q3 revs rose 5.3% y/y to $32.3B vs. consensus $31.65; added 379,000 net monthly bill-paying wireless subscribers during the third quarter, largely in line with the 379,300 consensus; now expects annual adjusted profit per share of about $2.40, compared with its prior forecast of $2.25 to $2.35; said 442,000 new fiber internet users and 327,000 new fixed wireless subscribers added in the third quarter.
• Micron's (MU) Taiwan unit and a union representing workers at its Taichung operations have reached a labor agreement, prompting both sides to withdraw from mediation scheduled for Oct. 22. The agreement covers multiple issues, but its terms were not disclosed.
• Nvidia (NVDA) announced plans with a group of supply chain partners to expand global manufacturing capacity to meet growing demand for its accelerated computing and full-stack AI factory platform. Working with Amkor Technology (AMKR), IBIDEN, King Yuan Electronics, Samsung Electro-Mechanics, Siliconware Precision Industries and Unimicron Technology Corp.
• Pegasystems (PEGA) Q3 net income fell -68% y/y to $14.09M while revs rose to $393.3M below consensus $421M; Q3 EPS $0.35 vs. est. $0.48; annual contract value climbed 20% y/y to $975.99M at September 30; total ACV increased 6% to $1.65B; attributed weaker-than-expected ACV growth through the first three quarters largely to go-to-market execution challenges; warned that greater scrutiny of large technology investments could continue to hurt ACV growth and cash generation for the rest of 2026.
• SuperMicro (SMCI) shares jump after guides Q1 revs at $18.5B-$19.50B vs. guidance of $14.5B-$15.50B primarily due to increased demand for AI platforms and sees Q1 gross margins estimated at 12.0%-12.5% versus guidance of 10.4%-10.8% (DELL, HPE among companies rising on guidance).

Mid-Morning Look

Wednesday, October 21, 2026

U.S. stocks opened higher, led by a bounce in tech/Ai stocks after SpaceX (SPCX) earnings/comments as well as updated upside guidance for AI server company SMCI, both giving lifts to semis/neoclouds…but the bounce was brief as futures pair gains. Industrials (XLI), technology (XLK) and Energy (XLE) early sector leaders while Communications (XLC) leads the declines after NFLX earnings results weigh on shares, along with Healthcare (XLV) pulling back from record highs and Consumer Staples (XLP) also notably lower. Alphabet (GOOGL) slips 2.1% on weaker ad-trend commentary. Treasury yields are little changed, with the 10-year down 3 basis points to 5.08% and the 30-year off 2.6 basis points to 5.399%, the dollar index essentially flat at 101.67, gold adds $10.30 to $4,152.90 an ounce and bitcoin gains 0.9% to $83,723. A heavy slate of Q3 earnings is otherwise driving single-stock action: AT&T tumbles as fiber ARPU pressure overshadows its raised EPS outlook, Abbott Laboratories falls after trimming its full-year comparable sales growth view even as it unveiled plans to spin off its nutrition business, and Intuitive Surgical drops on decelerating U.S. procedure growth. Oil prices rose by more than $1 as attacks on Gulf shipping and no signs of diplomatic progress to end ‌the Iran war fueled supply disruption fears, with the Brent benchmark hovering near 5-month ‌highs. Tonight earnings from META, TSLA, LRCX, TXN, IBM, SAP in the tech space dominate.

• Life Science & Tools sector: TMO Q3 slightly ahead of consensus, with Q3 organic revenue growth above expectations (+6% vs +4.3% consensus). Products and services revenue came in above estimates while life sci was slightly below; DHR shares fall after Q3 revs rose 9% y/y to $6.55B, just below the $6.56B overall consensus as its diagnostic and life sciences segments ($2.88B and $1.87B in revs respectively) failed to offset weakness in its biotech segment ($1.8B vs. est. $1.87B); sees Q4 adj core revenue ex: respiratory revenue to increase in the 4% to 5% range y/y vs Q3 growth of 5.5% (shares of other comps were volatile on results/guides including AVTR, A, WAT, ILMN, MTD
• Waste sector: UBS upgraded shares of CLH from Neutral to Buy (tgt to $375 from $325) driven by potential earnings upside from capital deployment and improvement in fundamentals. The firm also downgraded CWST from Buy to Neutral (tgt to $95 from $122), reflecting a reduction in its earnings outlook driven by lower assumed M&A activity. UBS now expects management to focus on smaller acquisitions, reducing its cumulative 2026-30E EBITDA/share forecast by 7%.

• COF +3%; reported PPNR beat and materially better than-expected; Domestic Card’s NCO rate was 3.98% (below consensus), and the company released $225mn of reserves, including a $250 million release in Domestic Card.
• CRWD +4%; along with gains in other security software stocks CHKP, ZS, OKTA, FTNT, S and others after the WSJ reported Ai just found a bug that puts up to 70% of the world’s websites at risk. Ai Tools helped find one of the most severe online bugs ever. Cyber experts are racing to patch it before hackers use Ai to exploit it.
• ROIV +4%; announced positive results from phase 3 trials evaluating a treatment for non-infectious uveitis; said brepocitinib met the primary endpoint for two phase 3 trials, with a once-daily 45 mg dose showing a statistically significant benefit in time to treatment failure vs. a placebo.
• SMCI +13%; jump after guides Q1 revs at $18.5B-$19.50B vs. guidance of $14.5B-$15.50B primarily due to increased demand for AI platforms and sees Q1 gross margins estimated at 12.0%-12.5% versus guidance of 10.4%-10.8% (DELL, HPE rise in sympathy)
• SPCX +10%; reported $14.6B in revenue for Q3, (+161% YoY) vs. est. $12.72B and $4.4B in net income, buoyed by a surge in its AI business and steady growth at its Starlink satellite-internet unit. Connectivity and Super Intelligence (SI) revenues jumped 69% and 830% y/y, respectively.
• UAL +2%; climbs after guiding Q4 unit revenue growth to accelerate from Q3's 15.9% to 20%+ y/y, even as Q3 EPS of $2.54 came in at the low end of guidance on higher fuel costs.

• CMG -4%; after TD Cowen downgraded on concerns that Chipotle's October sales are shaping up to miss the Q4 inflection point it had previously expected.
• IART -7%; as lowers FY26 adjusted EPS view to $2.30-$2.40 from $2.40-$2..00; lowers FY26 revenue view to $1.634B-$1.654B from $1.654B-$1.695B (est. $2.38/$1.66B); FY26 revenue guidance represents a reported growth of (0.1%)-1.2% and organic growth of (-0.3%) to (0.9%).
• ISRG -2%; posted +14% worldwide da Vinci procedure growth modestly bettering consensus of +13.4% and system installations coming in considerably ahead (546 vs the Street's 476) but U.S. procedures disappoint, where +10% growth once again fell short of buy-side consensus of ~+12%.
• NFLX -3%; shares fell as Q3 EPS $0.87 vs. est. $0.82 (beat) and revs of $12.874B were mostly in-line with consensus on better operating Income $4.46B, but guided q4 revenue guidance to $13.44B vs. est. $13.52B (below), EPS to $0.67 vs. est. $0.73 (below) while FY26 FCF outlook cut to about $12B and FY26 Ad revenue outlook cut to about $2.7B from about $3B.
• PEGA -2%; after announced disappointing Q3 results, with EPS of $0.35 (consensus $0.47) on revenue of $393M (consensus $422M), a growth of 3% Y/y (consensus 11%) as cloud revenue of 219M (consensus $230M) was a 19% Y/y increase (consensus 25%).
• T -4%; Q3 EPS $0.65 top est. $0.60 as revs rose 5.3% y/y to $32.3B vs. consensus $31.65; added 379,000 net monthly bill-paying wireless subscribers during Q3, vs. the 383K consensus; now expects annual adj EPS of about $2.40, compared with its prior forecast of $2.25-$2.35; fiber ARPU fell 4% in Q3 due to introductory pricing, discounts for bundled Wireless/Broadband customers.
• TKNO -30%; announces pricing of $40M public offering of common stock, an 8M share Spot Secondary priced at $5.00.

Closing Recap

Wednesday, October 21, 2026

U.S. stock markets put in a solid day, as investors rotated back into Technology (XLK +1.68%) and Industrials (XLI +0.91%) while more defensive sectors that have led in recent weeks such as Healthcare (XLV), Consumer Staples (XLP) and Utilities (XLU) lagged on the day as Wall Street awaits key earnings after the bell from Tesla (TSLA) and Meta (META) in the AI space. In addition to those two, IBM, LRCX and TXN are also expected to report in the tech space tonight. Shares of SpaceX (SPCX) advanced today along with AI server company SMCI after positive results and guidance, helping revive the Ai trade for today at least, but commentary/spending/results from META tonight can quickly change things. Investors are also focused on the Fed’s October 27-28 policy meeting and next week’s US Personal Consumption Expenditures (PCE) report for clues on future rate moves. The Fed remains in their “blackout” period ahead of next week’s decisions, and economic data has been quiet this week after last weeks hotter inflation readings. Major U.S. averages did pull back in the final hour of trading, paring gains as oil stocks jumped and yields edged higher. One of the quieter yet very impactful stories of the day was that Major websites in US and Europe go dark as operators race to protect systems from hackers. The vulnerabilities, dubbed “PHP2Shell,” affect PHP, an open-source programming language that works behind the scenes to run websites, including those built on WordPress, Drupal and Joomla. Nearly 70% of websites use PHP, according to cybersecurity firm Cloudflare. PHP developers released emergency security patches Wednesday, warning that temporary safeguards cannot fully protect vulnerable systems.

• Cryptocurrencies rebounded nicely today as Bitcoin rose over 2% nearing $85,000 midday, while Ethereum prices climbed over 2.5% topping $2,500 after being under pressure in recent trading sessions. Bitcoin looks to be taking some of its cues from the stock market. It's not a new sentiment, but one that's seeing a resurgence after bitcoin briefly started to move higher despite weakness in AI stocks last month.
• U.S. Treasury yields edged higher as investors await more economic data before the Federal Reserve's October interest rate meeting next week. The U.S. 2-year yield, which is sensitive to short-term interest rates, hovers around 4.823%, up 3.8bps today. The U.S. 10-year yield rose 3 bps to 5.145%. The Treasury auctioned off $13 billion in reopened 20-year bonds this afternoon. Yields have been sensitive to movements in the equity markets in recent days, as concerns about the impact of higher borrowing costs on AI infrastructure stocks such as CoreWeave have weighed on stocks and increased the safe-haven appeal of Treasuries, sending yields lower.

• Restaurant sector: CMG was downgraded from Buy to Hold at TD Cowen and cut tthat32 from $44 as worries Oct. sales are shaping up to miss the Q4 inflection point that it had previously expected over an easy monthly compare.
• Auto sector: in tires, Michelin (MGDDY) shares fell overseas after reported a drop in Q3 sales volumes, falling -0.6% on year versus a company-compiled consensus looking for 0.6% growth.

• Waste sector: UBS upgraded shares of CLH from Neutral to Buy (tgt to $375 from $325) driven by potential earnings upside from capital deployment and improvement in fundamentals. The firm also downgraded CWST from Buy to Neutral (tgt to $95 from $122), reflecting a reduction in its earnings outlook driven by lower assumed M&A activity. UBS now expects management to focus on smaller acquisitions, reducing its cumulative 2026-30E EBITDA/share forecast by 7%.
• Chemical sector: IPAR announced 3Q sales results of $430M (flat) vs. consensus $423.8.0M noting they estimate the Middle East conflict to have represented a 1 point headwind to sales this quarter; total sales were flat y/y at $430M, with growth driven by a +4% increase in European-based operations, which helped offset a -7% decline in U.S.-based operations.
• Space sector: SPCX reported $14.6B in revenue for Q3, (+161% YoY) vs. est. $12.72B and $4.4B in net income, buoyed by a surge in its AI business and steady growth at its Starlink satellite-internet unit. Connectivity and Super Intelligence (SI) revenues jumped 69% and 830% y/y, respectively.
• Elon Musk says a merger of his two companies, SPCX, would be "a good idea" and that they formed special committees to discuss a union. U.S. listed space-linked stocks rally premarket after SpaceX reports first quarterly profit as publicly traded company with names like FLY, RKLB, LUNR, PL and SATS all seeing volatility.
• US crude and gasoline stocks fell last week, while distillate inventories rose, the US Energy Information Administration (EIA) said. Crude inventories fell by 3.06 million barrels to 412.5 million barrels in the week vs analysts' expectations for a 820,000-barrel draw. Crude stocks at the Cushing, Oklahoma, delivery hub rose 987,000 barrels in the week, the EIA said.
• U.S. gasoline stocks fell by 2.95 million barrels in the week to 205.3 million barrels, the EIA said, compared with analysts' expectations for a 443,000-barrel draw.​ Distillate stockpiles, which include diesel and heating oil, rose 1.68 million barrels in the week to 104.3 million barrels, versus expectations for a 1.16 million-barrel drop, the EIA data showed.

• Consumer Finance; COF reported PPNR beat and materially better than-expected; Domestic Card’s NCO rate was 3.98% (below consensus), and the company released $225mn of reserves, including a $250 million release in Domestic Card. In research, ALLY was downgraded to In Line from Outperform at Evercore after results and downgraded SYF to In Line from Outperform with a price target of $78, down from $80 as expects potential earnings headwinds and macro volatility to limit incremental upside catalysts to the shares and argues that the valuation seems fair.
• Insurance sector: CB reported operating EPS of $7.66, beating consensus of $6.79, helped by better-than-projected favorable prior period reserve development ($511 mln vs. $138 mln est.; driven by North America Personal P&C and Overseas General) and a slightly stronger underlying P&C combined ratio (83% vs. 84% est.), partially offset by higher-than-expected catastrophe losses ($705 mln vs. $390 mln est.), while NII ($1,791 mln) was broadly in line.

• ROIV announced positive results from phase 3 trials evaluating a treatment for non-infectious uveitis; said brepocitinib met the primary endpoint for two phase 3 trials, with a once-daily 45 mg dose showing a statistically significant benefit in time to treatment failure vs. a placebo.
• Managed care sector: ELV raised its annual profit forecast after posting better-than-expected quarterly results due to higher premiums and lower medical costs, as sees its annual profit forecast to be at least $29 per share, vs. prior of at least $27 per share; Q3 medical loss ratio was 90.6% vs. est 91.17%; raises FY26 operating cash flow view to 'at least $6.5B' from prior view 'at least $6B.
• Life Science & Tools sector: TMO Q3 slightly ahead of consensus, with Q3 organic revenue growth above expectations (+6% vs +4.3% consensus). Products and services revenue came in above estimates while life sci was slightly below; DHR shares fall after Q3 revs rose 9% y/y to $6.55B, just below the $6.56B overall consensus as its diagnostic and life sciences segments ($2.88B and $1.87B in revs respectively) failed to offset weakness in its biotech segment ($1.8B vs. est. $1.87B); sees Q4 adj core revenue ex: respiratory revenue to increase in the 4% to 5% range y/y vs Q3 growth of 5.5% (shares of other comps were volatile including AVTR, A, WAT, ILMN, MTD).
• Medical Equipment & Devices: ISRG shares tumble after mixed results as posted +14% worldwide da Vinci procedure growth modestly bettering consensus of +13.4% and system installations coming in considerably ahead (546 vs the Street's 476) but U.S. procedures disappoint, where +10% growth once again fell short of buy-side consensus of ~+12%. COR to acquire American Oncology network to strengthen support of community Oncology in a deal that values Aon at $2.40B enterprise value including up to $100M CVRS.

• META reports after the close. Meta plans to introduce new nonvoting stock to fund its AI investments without diluting CEO Zuckerberg's control, reports Semafor citing sources
• SMCI shares jumped after guides Q1 revs at $18.5B-$19.50B vs. guidance of $14.5B-$15.50B primarily due to increased demand for AI platforms and sees Q1 gross margins estimated at 12.0%-12.5% versus guidance of 10.4%-10.8% (DELL, HPE rise in sympathy).
• Anthropic posted a staggering -$80.7B net loss in the first half of 2026, up from -$13B a year earlier and nearly double its full-year 2025 loss of -$42B. -$72B of the loss stems from non-cash accounting adjustments reflecting changes in the value of convertible notes and other financing instruments, leaving an estimated -$8.7B loss after these charges are excluded. At the same time, revenue surged to $16.3B from just $1.1B a year earlier, but computing and infrastructure spending nearly quadrupled to $9B, exceeding the $7.3B spent throughout 2025.
• NVDA & AMKR are planning to expand advanced packaging capacity by over 300% by 2028 while Nvidia's other partners target 15x more optical-engine capacity. Nvidia is also putting $1.1B upfront to secure additional chip testing capacity as Jensen Huang says, "demand is extraordinary."
• MBLY was downgraded to Underperform at RBC Capital citing two structural concerns: Base ADAS displacement risk as OEM architectures shift toward centralized compute, and near-total premium product dependence on Volkswagen, a customer it thinks could actively move away from MBLY.
• MU’s Taiwan unit and a union representing workers at its Taichung operations have reached a labor agreement, prompting both sides to withdraw from mediation scheduled for Oct. 22. The agreement covers multiple issues, but its terms were not disclosed.
• Neocloud/Data center sector: Truist said compute commentary from SPCX Q3 is supportive of continued pricing power and shorter payback periods for Ai Cloud providers (CRWV, NBIS). Despite market concerns relating to financing for Ai Cloud providers this past week, Truist believes SPCX's Q3 represents the first data point during the earnings season to support the bull case for Ai Cloud providers. IREN announced that it has established IREN Europe and secured the civil works license for its planned AI data center in Badajoz, Extremadura, Spain. The project is planned to deliver approximately 300MW of capacity, with initial operations targeted for 2028. APLD was reinstated with a Buy rating and $35 PT at Roth on asymmetric upside from secured equipment, a repeatable AI factory design, and improving market lease economics.

• DOCN was upgraded to Overweight from Neutral at Piper (cuts tgt to $126 from $142) saying the recent share-price pullback creates an attractive entry point given accelerating AI-driven growth, AI-startup exposure and potential upside to LT revs.
• PEGA shares fell after announced disappointing Q3 results, with EPS of $0.35 (consensus $0.47) on revenue of $393M (consensus $422M), a growth of 3% Y/y (consensus 11%) as cloud revenue of 219M (consensus $230M) was a 19% Y/y increase (consensus 25%); the company said continues to see GTM challenges, with management commenting that new Acv growth through the first three quarters of 2026 “did not reflect the opportunity they see in the market.
• ZM was upgraded to Outperform at Oppenheimer with $130 tgt after they attended the Zoomtopia conference in the last two days and were impressed by the company's range of new services, as were its customers. OPCO gains confidence in its transition from video meetings to a broader Ai communications and workflow platform.

• Telecom sector: AT&T Corp. (T) shares fell as Q3 adj EPS $0.65 topped est. $0.60 as revs rose 5.3% y/y to $32.3B vs. consensus $31.65; added 379,000 net monthly bill-paying wireless subscribers during Q3, vs. the 383K consensus; now expects annual adj EPS of about $2.40, compared with its prior forecast of $2.25-$2.35; said 442,000 new fiber internet users and 327,000 new fixed wireless subscribers added in the third quarter; said fiber ARPU fell 4% in Q3 due to introductory pricing, discounts for bundled Wireless and Broadband customers.

Street Recommendations

Wednesday, October 21, 2026

• COF Barclays raised the firm's price target on Capital One to $238 from $237 and keeps an Overweight rating on the shares. The firm views the company's Q3 report as strong. Capital One is positioned to reaccelerate growth in fiscal 2027, the analyst tells investors in a research note.
• GM Barclays analyst Dan Levy lowered the firm's price target on General Motors to $105 from $110 and keeps an Overweight rating on the shares following the Q3 report. The company guided down 2027 on incremental commodity headwinds, the analyst tells investors in a research note. However, the firm believes the fundamental drivers of GM's year-over-year earnings improvement remain intact.
• ISRG Barclays raised the firm's price target on Intuitive Surgical to $500 from $485 and keeps an Overweight rating on the shares. The company's Q3 results "delivered on just about every front," the analyst tells investors in a research note. It believes Intuitive's "sluggish" procedures overshadow a solid earnings print.
• NFLX Barclays analyst Kannan Venkateshwar lowered the firm's price target on Netflix to $65 from $70 and keeps an Equal Weight rating on the shares following the Q3 report. Netflix's advertising guidance "may fuel the slowing momentum narrative further," the analyst tells investors in a research note. The firm says the company's 2027 growth visibility remains limited, meaning the stock "may not recover through this year."

• UPS Bernstein lowered the firm's price target on UPS to $127 from $131 and keeps an Outperform rating on the shares ahead of quarterly results. The firm is expecting a top and bottom line beat for the quarter, as higher surcharges bring the top line higher and domestic margins come in slightly better than the prior guide.
• MMM Bernstein analyst Varun Govindaraj raised the firm's price target on 3M to $197 from $171 and keeps a Market Perform rating on the shares. On pure headline numbers, this wasn't as exciting a print as what was seen in Q2, the firm says. Organic growth at 3.3% was a slight miss, although margins and EPS came in better than expected.

• STX BofA raised the firm's price target on Seagate to $1,200 from $1,150 and keeps a Buy rating on the shares. The firm, which expects Seagate to report a "strong" fiscal Q1, models revenues at the high end of guidance and EPS of $7.60, higher than the guidance range of $7.10-$7.50, the analyst tells investors in a preview.

• MDLZ BTIG analyst Rob Dickerson raised the firm's price target on Mondelez to $74 from $73 and keeps a Buy rating on the shares. Whether it's drought, too much rain, winds, black pod disease, aging cocoa farms, and/or reduced pesticide use, concerns continue to circle around West Africa's main crop cocoa harvest vis-a-vis current inventories and demand, the analyst tells investors in a research note. Cocoa hit a three-year low $3K per metric ton in March of this year, but it's gradually creeping to near $6K, driving the average cost up about 70% over the past six months, the firm added.

• CACI Cantor Fitzgerald analyst Colin Canfield raised the firm's price target on CACI to $785 from $675 and keeps an Overweight rating on the shares. CACI faces potential near-term Technology growth softness offset by stronger Expertise results, while investors focus on ARKA-driven space-intelligence synergies and Navy O&M tailwinds, the analyst tells investors in a research note. The firm says delayed defense programs appear largely priced in, with strong cash generation providing downside resilience.

• IONS Citi analyst Eric Joseph views the recent pullback in shares of Ionis Pharmaceuticals as overdone. The firm says a potentially soft initial quarter post the severe hypertriglyceridemia label expansion is immaterial to Tryngolza longer term forecasts. It keeps a Buy rating on Ionis with a $100 price target.
• SPCX Citi analyst John Godyn added an "upside 90-day catalyst watch" on SpaceX while keeping a Buy rating on the shares with a $240 price target. The company has established it can report quarterly beats with increased outlooks and this will continue into Q4, the analyst tells investors in a research note. Citi also views Flight 15 as likely a "monumental space-industry catalyst" that sets the stage for rapid reusability.
• NRGV Citi analyst Vikram Bagri lowered the firm's price target on Energy Vault to $4.75 from $6 and keeps a Buy rating on the shares. The firm adjusted targets in the alternative energy equipment and services group as part of a Q3 earnings preview. Renewables remain out of favor due to higher interest rates, policy uncertainty, and rising costs, the analyst tells investors in a research note. However, Citi believes "robust underlying demand" is increasingly disconnected from the "weak" equity market sentiment.
• FLNC Citi lowered the firm's price target on Fluence Energy to $11 from $20 and keeps a Buy rating on the shares. The firm adjusted targets in the alternative energy equipment and services group as part of a Q3 earnings preview. Renewables remain out of favor due to higher interest rates, policy uncertainty, and rising costs, the analyst tells investors in a research note. However, Citi believes "robust underlying demand" is increasingly disconnected from the "weak" equity market sentiment.
• NXT Citi lowered the firm's price target on Nextpower to $111 from $121 and keeps a Buy rating on the shares. The firm adjusted targets in the alternative energy equipment and services group as part of a Q3 earnings preview. Renewables remain out of favor due to higher interest rates, policy uncertainty, and rising costs, the analyst tells investors in a research note. However, Citi believes "robust underlying demand" is increasingly disconnected from the "weak" equity market sentiment.
• SMR Citi analyst Vikram Bagri lowered the firm's price target on NuScale Power to $4 from $6.50 and keeps a Sell rating on the shares. The firm adjusted targets in the alternative energy equipment and services group as part of a Q3 earnings preview. Renewables remain out of favor due to higher interest rates, policy uncertainty, and rising costs, the analyst tells investors in a research note. However, Citi believes "robust underlying demand" is increasingly disconnected from the "weak" equity market sentiment.

• FITB Evercore ISI upgraded Fifth Third to Outperform from In Line with a price target of $60, up from $57. With the CMA systems conversion "now solidly in the rearview," the firm expects Fifth Third's strong fundamental outlook to drive above-peer returns, the analyst tells investors. The firm forecasts greater than 20% ROTCE in 2027-28, which compares "particularly well" versus peers at about 17%, the analyst added.
• SYF Evercore ISI downgraded Synchrony to In Line from Outperform with a price target of $78, down from $80. The firm expects potential earnings headwinds and macro volatility to limit incremental upside catalysts to the shares and argues that the valuation seems "fair" given the evolving backdrop.

• GM Goldman Sachs lowered the firm's price target on General Motors to $96 from $112 and keeps a Buy rating on the shares. GM's shares fell 7% despite higher 2026 EPS and free cash flow guidance as rising input costs threaten 2027 EBIT growth, though the full-size pickup refresh through 2028-2029, software revenue growth, and a new $20B buyback authorization support the medium-term outlook, the analyst tells investors in a research note.

• FUN Guggenheim analyst Curry Baker lowered the firm's price target on Six Flags to $17 from $28 and keeps a Buy rating on the shares. The firm is updating its model to account for softer overall Q3 trends due to weather; while also reducing Q4 estimates on negative October weather and a negative news cycle and ride closures due to the death in Georgia, the analyst tells investors.
• NFLX Guggenheim analyst Michael Morris lowered the firm's price target on Netflix to $78 from $80 and keeps a Buy rating on the shares following Q3 results that met guidance, but were paired with an outlook the firm calls "modestly short of expectations."
• NOC Guggenheim raised the firm's price target on Northrop Grumman to $640 from $612 and keeps a Buy rating on the shares. Though management held its 2026 revenue outlook, it did provide initial 2027 guidance calling for 5%-7% top line growth, marking an acceleration off the 2026 high-end rate of 5.5%, the analyst tells investors in a post-earnings note.

• HAL Jefferies analyst Lloyd Byrne raised the firm's price target on Halliburton to $47 from $46 and keeps a Buy rating on the shares. The company's 2027 guidance outlined a clear path to growth and margin expansion without a North America frac recovery, the analyst tells investors in a research note.

• GE JPMorgan lowered the firm's price target on GE Aerospace to $375 from $400 and keeps an Overweight rating on the shares. The firm says a challenging market backdrop for aerospace stocks continued with GE's Q3 report. The company is coming off several quarters of exceptionally strong aftermarket growth, with the deceleration underway "driving some indigestion for the stock," the analyst tells investors in a research note. JPMorgan believes GE is navigating a challenging market.
• MMM JPMorgan raised the firm's price target on 3M to $191 from $185 and keeps an Overweight rating on the shares. The firm upped the company's estimates post the Q3 report. JPMorgan views the quarterly report as "encouraging in a number of respects."
• SPCX JPMorgan analyst Doug Anmuth raised the firm's price target on SpaceX to $500 from $240 and keeps an Overweight rating on the shares following the Q3 report. The company beat on sales across all three of its segments, but the the primary driver going forward is super intelligence, the analyst tells investors in a research note. The firm says SpaceX now expects to end 2026 with between 2-3 gigawatt of compute and to build an incremental 10 GW in 2027, well above the previously expected range. In a discussion w/management, SpaceX also said that it is not considering raising equity, JPMorgan adds.
• NFLX JPMorgan lowered the firm's price target on Netflix to $81 from $85 and keeps an Overweight rating on the shares. The shares are trading off post the Q3 report on slightly lower 2026 revenue expectations and continued investor concern on Netflix's 2027 growth and margin outlook, the analyst tells investors in a research note. JPMorgan believes the company's core subscription business remains healthy.

• ISRG Mizuho lowered the firm's price target on Intuitive Surgical to $400 from $415 and keeps a Neutral rating on the shares following the Q3 report. The firm cites persisting procedures headwinds for the target cut.

• MSCI Morgan Stanley raised the firm's price target on MSCI to $671 from $662 and keeps an Overweight rating on the shares. Q3 showed strength as key performance indicators accompanied the top-line beat, the analyst tells investors in a post-earnings note.
• GE Morgan Stanley lowered the firm's price target on GE Aerospace to $375 from $400 and keeps an Overweight rating on the shares. The firm views initial 2027 commentary as "a floor rather than a ceiling," says the analyst, who adds that durable aftermarket demand and strong earnings visibility support upside.
• GM Morgan Stanley lowered the firm's price target on General Motors to $95 from $101 and keeps an Overweight rating on the shares after the company hit consensus expectations in Q3 and reiterated the midpoint of its adjusted EBIT guidance. GM's more cautious 2027 commentary "should not come as surprise" given the magnitude of the recent commodity and logistics inflation, says the analyst, who argues that yesterday's stock reaction was "overblown" and recommends buying shares on the dip.
• EWBC Morgan Stanley analyst Ryan Kenny raised the firm's price target on East West Bancorp to $168 from $164 and keeps an Overweight rating on the shares following what the firm calls "another beat and raise quarter."

• EFX Needham raised the firm's price target on Equifax to $210 from $190 and keeps a Buy rating on the shares. The company's Q3 results were in line with Street estimates on revenue, but beat on EPS as margin leverage from AI-driven productivity initiatives and buybacks added a punch to earnings, the analyst tells investors in a research note. The firm adds that while it expects higher rates to remain a headwind, the combination of margin leverage, share repurchases, and the pending acquisition of Circulo de Credito add enough potency to the bull case to remain constructive at this time.

• TWLO Oppenheimer raised the firm's price target on Twilio to $325 from $275 and keeps an Outperform rating on the shares. The firm expects solid Q3 results with about 3%-4% upside to consensus and roughly 5%-plus upside to gross profit projections. This reflects modest year-over-year growth deceleration and less upside, reflecting tougher year-over-year comparisons and not a change in business momentum. Oppenheimer's checks suggest broad-based demand across regions/verticals.
• NFLX Oppenheimer lowered the firm's price target on Netflix to $80 from $85 and keeps an Outperform rating on the shares. The firm notes shares are weaker on Q4 advertising revenue guidance miss with low-single-digit viewership growth likely to continue until big hits return. Management remains confident that price increases, international subscriber growth and advertising can drive sustainable double digits revenue growth.

• AKAM Piper Sandler lowered the firm's price target on Akamai to $120 from $158 and keeps an Overweight rating on the shares. The market over the last few weeks has focused on the AI-demand, return on invested capital, and financing concerns in the AI-as-a-service space, driving an over 25% selloff in many names, the analyst tells investors in a research note. Piper reduced its terminal multiples across the group citing investor sentiment, resulting in the price target cuts. It believes the sector is likely to remain "in the penalty box" until free cash flows move more positively or financing becomes more clear. The firm, however, would use the pullback to "build positions slowly." Piper reiterates CoreWeave as its preferred name in the space "with the most conservative assumptions of the group." The company's financing concerns are the "most overblown" versus reality, the analyst agues.
• NFLX Piper Sandler lowered the firm's price target on Netflix to $78 from $85 and keeps an Overweight rating on the shares. Netflix reported a mostly in-line Q3 print, though shares are down about 6% after market, the firm notes. Engagement issues have weighed down on the stock, and the recent management changes and headcount cuts signal Netflix is looking to execute more effectively, particularly in the U.S. The FY26 ads revenue reset is a disappointment, says Piper. Nevertheless, management sounds more focused and the addition of Peter Rice should help.

• SMBK Raymond James downgraded SmartFinancial to Outperform from Strong Buy with a price target of $56, down from $58. The firm cites its tempered net interest margin expectations for the downgrade. The stock's 36% year-to-date rally has reduced the upside as the "higher for longer" rate environment pressures SmartFinancial's funding costs and adds risk for growth, the analyst tells investors in a research note.

• NFLX Rosenblatt lowered the firm's price target on Netflix to $71 from $75 and keeps a Neutral rating on the shares. The company's Q3 report featured slowing growth, a key executive change, and 6% staff cuts, the analyst tells investors in a research note. The firm dies see a clear argument for a much higher sustained growth pace at Netflix.

• FNF Stephens analyst John Campbell lowered the firm's price target on Fidelity National to $50 from $55 and keeps an Overweight rating on the shares. Mortgage rates have risen sharply and the firm now expects weaker residential volumes, says the analyst, who is lowering estimates for Fidelity ahead of its Q3 earnings release.
• CBSH Stephens lowered the firm's price target on Commerce Bancshares to $62 from $64 and keeps an Equal Weight rating on the shares. Q3 results were a bit softer than consensus expected primarily due to weaker net interest income, the analyst tells investors.
• BOKF Stephens lowered the firm's price target on BOK Financial to $141 from $148 and keeps an Equal Weight rating on the shares. Q3 results were highlighted by excellent loan growth, net interest margin expansion, good cost controls and stable credit, the analyst tells investors.
• FITB Stephens analyst Matt Olney lowered the firm's price target on Fifth Third to $59 from $61 and keeps an Equal Weight rating on the shares. Q3 results were highlighted by strong deposit growth, excellent cost controls, and stable credit trends, the analyst tells investors.

• LYFT TD Cowen lowered the firm's price target on Lyft to $26 from $30 and keeps a Buy rating on the shares as part of a Q3 earnings preview. The firm reduced its second half of 2026 rides growth estimates based on Lyft's intra-quarter comments that second half rides growth would be similar to the 10% year-over-year rides growth in the first half.
• SPCX TD Cowen raised the firm's price target on SpaceX to $224 from $200 and keeps a Buy rating on the shares. The company reported a Q3 sales and EBITDA beat across its segments, the analyst tells investors in a research note. TD upped its estimates for SpaceX following the earnings report.

• TEAM Truist analyst Miller Jump raised the firm's price target on Atlassian to $250 from $185 and keeps a Buy rating on the shares as part of a "constructive" broader research note previewing Q3 results for Infrastructure Software names. Partner checks are pointing to healthy spending, continued consolidation, and increasingly tangible AI-driven consumption, the analyst tells investors in a research note. Enterprises continue to consolidate technology spending around broader platforms as they look to reduce complexity, improve interoperability and drive greater value from existing investments, the firm added.
• FROG Truist raised the firm's price target on JFrog to $115 from $110 and keeps a Buy rating on the shares as part of a "constructive" broader research note previewing Q3 results for Infrastructure Software names. Partner checks are pointing to healthy spending, continued consolidation, and increasingly tangible AI-driven consumption, the analyst tells investors in a research note. Enterprises continue to consolidate technology spending around broader platforms as they look to reduce complexity, improve interoperability and drive greater value from existing investments, the firm added.
• DT Truist raised the firm's price target on Dynatrace to $70 from $60 and keeps a Buy rating on the shares as part of a "constructive" broader research note previewing Q3 results for Infrastructure Software names. Partner checks are pointing to healthy spending, continued consolidation, and increasingly tangible AI-driven consumption, the analyst tells investors in a research note. Enterprises continue to consolidate technology spending around broader platforms as they look to reduce complexity, improve interoperability and drive greater value from existing investments, the firm added.

• CWST UBS analyst Jon Windham downgraded Casella Waste to Neutral from Buy with a price target of $95, down from $122. The firm cites its reduced earnings estimates driven by lower assumed acquisition activity for the downgrade. UBS now expects Casella to focus on smaller acquisitions, reducing its cumulative EBITDA through 2030 by 7%. The stock's historical premium valuation was supported by Casella's ability to create value through equity funded acquisition-driven growth, the analyst tells investors in a research note. According to TipRanks, UBS has a 4-star analyst on Casella Waste. [View TipRanks Star Ranking]:[https://www.tipranks.com/experts/analysts/jon-windham]
• GE UBS raised the firm's price target on GE Aerospace to $380 from $377 and keeps a Buy rating on the shares. GE Aerospace's accelerating services order growth and improving 2027 visibility provide better-than-expected evidence of an orderly aerospace aftermarket slowdown, supporting expectations for rising earnings estimates, upside to consensus, and continued long-term compounding despite deceleration in 2027-2028 and elevated oil prices, the analyst tells investors in a research note.
• KR UBS raised the firm's price target on Kroger to $66 from $63 and keeps a Neutral rating on the shares. Kroger outlined a credible plan to regain market share through price investments, improved customer experience, and cost savings leveraging its scale and data assets, but the stock's next leg higher depends on execution and demonstrable results, the analyst tells investors in a research note.
• GM UBS analyst Joseph Spak lowered the firm's price target on General Motors to $109 from $112 and keeps a Buy rating on the shares. Rising commodity costs could drive an 8% downward revision to GM's 2027 EBIT consensus to $15B, making EBIT growth increasingly dependent on fixed-cost savings, the analyst tells investors in a research note.
• SPCX UBS raised the firm's price target on SpaceX to $230 from $210 and keeps a Buy rating on the shares. SpaceX's momentum is expected to continue as new compute deals ramp in Q4, Starship advances toward ship-and-booster catch milestones, and Grok improves, with its unique combination of assets offering significant long-term value as execution progresses, the analyst tells investors in a research note.

• ISRG Wells Fargo analyst Larry Biegelsen lowered the firm's price target on Intuitive Surgical to $486 from $487 and keeps an Overweight rating on the shares. The firm notes the company reported Q3 revenue of $3.05B and non-GAAP EPS of $3.00, both ahead of Wells and consensus expectations. Wells highlights that WW procedure guide narrowed to 14%-15%, management quantified 2027 I&A pricing actions at roughly 3%-5% of revenue/procedure gross, and net is likely lower.
• HAS Wells Fargo raised the firm's price target on Hasbro to $100 from $90 and keeps an Equal Weight rating on the shares. The firm notes the company delivered another MTG-fueled beat. Implied Q4 guide below Street included shift and typical conservatism. Wells says stock is rightfully up, but sees balanced risk/reward at 16-tines 2027 as Exodus looms.
• RLI Wells Fargo raised the firm's price target on RLI Corp. to $53 from $51 and keeps an Underweight rating on the shares. The firm notes shares outperformed on the better-than-feared underlying margins as property margin and growth proved more durable. Increasing competition is broadening, Wells says, with risk skewed to the downside at 3.4-times current BV.
• KR Wells Fargo raised the firm's price target on Kroger to $60 from $58 and keeps an Equal Weight rating on the shares. The firm notes CEO Foran pitched a funded strategic repositioning with an attractive algo. Wells is intrigued, but acknowledges that improving value perception is complicated, past cost cuts haven't yielded returns, backdrop is tough, and progress to take time.
• MSCI Wells Fargo analyst Jason Haas raised the firm's price target on MSCI to $720 from $685 and keeps an Overweight rating on the shares. Net new came in above Street expectations, reflecting MSCI's rapid pace of innovation, effective go-to-market execution, and the growing ecosystem around its tools, the firm says. Management maintained FY26 guidance across nearly all metrics, Wells adds.

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

• Earnings After the Close: AERO AGNC BOKF CCK FNB KARO RBB RLI SFBS STLD WAL WASH WRB WTFC ZION

• 8:30 AM ET                   Housing Starts M/M for September
• 8:30 AM ET                   Building Permits M/M for September
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 10:00 AM ET                 Pending Home Sales M/M for September
• 4:30 PM ET API Weekly Inventory Data

• Earnings After the Close: ADC ALK CB COF ELS EWBC HWC ISRG LRN MCB NFLX NLY NP ORRF OZK PEGA QCRH UAL

• 10:30 AM ET                 Weekly DOE Inventory Data
• 1:00 PM ET US Treasury to sell $13B in 20-year notes

• Earnings After the Close: BANR BBT BDN CACI CASH CATY CCI CSX EFSB EGBN EGP EPRT ESI FAF FR FRME FULT GGG GL GSBC GTY HBNC HXL IBM KALU KMI KNX LBRT LOB LRCX LUV MEDP META MMLP MOH NTST OII PKG PNFP Q ROL RS SAP SEIC SLG SON SSB STC TCBI TCBX TFIN TSLA TXN URI WCN WDFC WH WSBC

• 8:30 AM ET                   Continuing Claims
• 10:00 AM ET                 Leading Index M/M for September
• 10:30 AM ET                 Weekly EIA Natural Gas Inventory Data
• 11:00 AM ET                 Kansas City Fed Manufacturing for October

• Earnings After the Close: ABCB AMTB APPF ASB BBD BE BY BYD COLB CUBI DECK EBC ENVA FIBK GBCI HTH JAKK KN KNSL KRC MRTN MXL NEM ORC PINE REXR RNG SAM SIGI SLM SPFI SRCE SSNC USCB UVE VRSN WDC WSFS

• 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

.