Early Look

Tuesday, October 20, 2026

New day, same market concerns has Nasdaq futures are lower, paced by the semis (SOX) and AI data center/neocloud names (CRWV, NBIS), giving back the prior day gains as fears over artificial-intelligence spending snapped back into focus. South Korean data center infrastructure company Elice tumbled in its market debut as the stock plunged 32% after its IPO despite reports retail demand was 400 times oversubscribed said Reuters. The weakness in the Kospi had shares of SK Hynix lower as well. Chip stocks finally snapped their nine-day losing streak on Monday (longest in 20 years), but the sector is back in the red already with declines pre mkt in semi and AI plays. Earnings are also set to play a big part in today's trading as shares of MMM, GE, GM, SYF, HAS all reported this morning with UAL, NFLX, SPCX out tonight. The broader market is holding up despite the tech weakness as Dow Jones Industrial Average futures are up slightly and S&P 500 futures are down less than 0.1%, though Nasdaq slides -0.5%. In Asian markets, The Nikkei Index tumbled -841 points to 64,075, the Shanghai Index edged higher 4 points to 3,735, and the Hang Seng Index declined -319 points to 23,867. The Korean Kospi slumped -32 points or 3.65% to settle at 858. In Europe, the German DAX is down -176 points to 25,143, while the FTSE 100 is down -68 points to 10,696. Crude oil prices extending gains with November WTI crude +4.40 or 4.33% to $108.15 per Barrel (Dec crude +2.08 to $100.65) and Brent Crude +1.71 or 1.56% at $111.25 per Barrel

• The Dow Jones Industrial Average fell -36.38 points, or 0.07%, to 51,966.03
• The Nasdaq Composite gained 290.85 points, or 1.11%, to 26,430.89
• The Russell 2000 Index advanced 6.93 points, or 0.25% to 2,728.30

• 8:30 AM ET                   Housing Starts M/M for September…est. 1.35M (prior 1.275M)
• 8:30 AM ET                   Building Permits M/M for September…est. 1.395M (prior 1.403M)
• 8:55 AM ET                   Johnson/Redbook Weekly Sales
• 10:00 AM ET                 Pending Home Sales M/M for September…est. (-0.5%)
• 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

• General Motors (GM) Q3 adj EPS $3.70 tops consensus $3.63 and revs $50B v. est. $48.76B; said Q3 Ebit rose 22% y/y to $4.1B; sees 2026 adjusted EBIT in the range of $14.5B-$15.5B, narrowed from previous guidance of $14B-$16B; guides FY EPS $12.75-$13.75 vs. est. $13.41; raises FY26 adjusted automotive free cash flow view to $11.5B-$12.5B vs. prior view $9.5B-$11.5B.
• Hasbro (HAS) Q3 revs $1.6B top consensus $1.48B; raised annual revenue forecast to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise; said Q3 revenue in its Wizards of the Coast and Digital Gaming segment during the third quarter rose 31%, while consumer products segment was up 4% from a year ago.

• Crown Holdings (CCK) Q3 adj. EPS $2.39 vs. est. $2.26, +7% YoY; sales $3.71B vs. est. $3.46B, +16% YoY, on more than 6% global Beverage can shipment growth and $405Mm of material cost pass-through, with a $4Mm currency headwind; Beverage can shipments North America +6%, Europe +4% and Asia up double digits; Q4 adj. EPS guidance $1.63-$1.73 vs. est. $1.80; FY adj. EPS guidance $8.35-$8.45 vs. est. $8.40; FY adj. free cash flow guidance at least $950Mm.
• Ge Aerospace (GE) Q3 adj EPS $2.25 vs est. $2.01 and Q3 revs $13.29B vs est. $12.87B; Q3 orders $19.0B; guides FY26 adj EPS $8.00-$8.10 vs est. $7.92 and FY26 rev growth of about 19-20% vs. consensus view $50.42B; expect 2027 commercial services to grow low-double-digits supported by over $170B commercial services backlog.
• Northrop Grumman (NOC) Q3 sales $11.1B vs. est. $11.13B; Q3 backlog increases to $110B; still sees FY Sales $43.75B-$44.25B vs. est. $44.05B; still sees FY Free Cash Flow $3.10B-$3.50B vs. est. $3.32B and sees FY Adj EPS $29.35-$29.75, above prior $28.60-$29.10; raises FY26 segment operating income view to $4.94B-$5.04B from prior view $4.85B-$5B.
• Steel Dynamics (STLD) Q3 EPS $5.26 vs. est. $5.41 (miss); revenue $6.509B vs. est. $6.434B (beat); adj. EBITDA $1.2B vs est $1.239B; gross profit $1.28B; operating Income $1B; looking ahead to 2027 & beyond, Co remain optimistic regarding domestic Steel & Aluminum industries.
• NuScale Power (SMR) downgraded to Underweight from Equal Weight at Barclays saying commercial delays and contract uncertainty increase the company's execution risk.

• BOK Financial (BOKF) Q3 EPS $2.64 vs. est $2.52; Q3 sales $561.44M vs. est. $572.2M; Q3 net interest income $370M and net interest margin 3%; no provision for credit losses necessary.
• FNB Corp. (FNB) Q3 EPS $0.43 in-line with consensus with Q3 net interest income $376.5M; Q3 non-interest income $92.5M; Q3 credit loss provision $19.64M.
• Prudential Financial, Inc. (PRU) announced that it has entered into definitive agreements to sell Prudential of Brazil and Prudential of Mexico to the CNP Assurances Group (respectively to CNP Seguradora, CNP Assurances' Brazilian subsidiary, and to CNP Assurances Holding) for an aggregate purchase price of $4.025 billion in cash, subject to certain closing adjustments.
• RBB Bancorp (RBB) Q3 EPS $0.74 vs. est. $0.58; Q3 net interest margin (NIIM) 3.16% up from 3.06% for the prior quarter; Q3 Nonperforming assets of $38.7M, a $4.9M, or 11.3%, decrease q/q; Book value and tangible book value per share rose to $31.75 and $27.44 at Sept 30, up from $31.51 and $27.23 at June 30.
• RLI Corp. (RLI) Q3 adj. EPS $0.86, +5% YoY; revenue $477Mm, -6% YoY; net premiums earned $424.9Mm, +4% YoY; gross premiums written $522.2Mm, +2% YoY, with Casualty $330.9Mm, Property $152.4Mm and Surety $38.9Mm; underwriting Income $58.8Mm vs. $60.5Mm YoY; combined ratio 86.2% vs. 85.1% YoY, with Casualty at 99.6%, Property at 60.1% and Surety at 79.8%; favorable prior-year reserve development $20.1Mm vs. $13.7Mm YoY.
• ServisFirst (SFBS) Q3 EPS $0.80 vs est $0.82 on NII $159.814Mm vs est $161.75Mm, Bv/shr $18.63; NIM 3.63%, +54 bps YoY and flat QoQ; provision for credit losses $15.2Mm vs. $9.5Mm YoY and $11.4Mm QoQ; net charge-offs 0.21% vs. 0.27% YoY; NPAs 0.96% of assets, flat; allowance 1.28% of loans; loans $14.74B, +10.7% YoY and +7.1% annualized QoQ; deposits $14.09B, -0.1% YoY and -3.2% QoQ.
• Synchrony (SYF) Q3 EPS $2.68 vs. consensus $2.40; Q3 tangible book value per share $42.79; Q3 CET1 capital ratio 12.9%; Q3 net interest margin fell -12bps to 15.5%; Q3 provision for credit losses $1.27B; Q3 earnings fell -17% y/y to $892M; Q3  interest income for Q3 rose 2% to $4.8 bln, driven by higher loan receivables.
• Western Alliance (WAL) Q3 EPS $2.45 vs. est. $2.42 (beat); revenue $1B vs. est. $987.9Mm (beat); NII $807.6Mm vs est $803.57Mm (beat); NIM 3.57%; credit loss provision -$80Mm; Q3 nonaccrual loans decreased $77M and $37M from september 30, 2025, to $485M.
• WR Berkley (WRB) Q3 adj. EPS $1.17 vs. est. $1.15; revenue $3.739B vs. est. $3.826B (miss); net premiums written $3.27B vs est $3.31B; gross premiums written $3.95B vs est $3.964B; combined ratio 90.8%.
• Zion Bancorp (ZION) Q3 EPS $1.78 vs. est. $1.66; Q3 net interest margin 3.23%, net interest income $684M, up 2% y/y; Q3 CET1 capital ratio 11.8%; Customer deposits grew nearly 10% annualized from Q2 levels, offsetting flat loan growth.

• Lycia Therapeutics said on Tuesday it was aiming to raise as much as $264.6 million in its US initial public offering.
• Rapport Therapeutics (RAPP) shares rise after saying its bipolar mania treatment, RAP-219, met the main goal and secondary goals in a mid-stage trial. RAPP says patients who took the treatment had a 15.4-point mean reduction in the total score on the Young Mania Rating Scale (YMRS), which measures and quantifies the severity of manic symptoms.

• Oracle (ORCL) announced an agreement with AstraZeneca (AZN) to explore how Ai and real-world data can help clinicians identify eligible patients for clinical trials, accelerate evidence Generation, and bring relevant research insights into everyday Care.

Mid-Morning Look

Tuesday, October 20, 2026

U.S. stocks opened lower, but have rallied since the open. After a brief reprieve on Monday from days of aggressive selling, tech (XLK, QQQ, SMH) it was back in the red this morning on several concerns, but has since rallied to turn positive, while the Smallcap Russell 200 rises over 1% and the S&P 500 jumps from overnight losses. Reuters reported Monday afternoon that OpenAI is accelerating fundraising plans (~$30B at a ~$1.4T valuation) as the company races to take in cash before the Anthropic IPO; 2) the South Korean Kospi index fell around -3.5%, dragging down key tech names (Samsung, SK Hynix) after data center firm Elice came public and the stock proceeded to tumble >30%, the latest red flag when it comes to AI companies and their ability to raise money. Also, 3) ABB, a data center-linked industrial in Europe, had results out this morning and despite blow-out orders (up 40%), the stock is getting hit. The results of Elice is weighing on US data centers as debt fears remain for names like CRWV, in addition to the political pushback of data center infrastruture build/moratoriums (hurting NBIS, IREN, HUT, others). Chip stocks (SOX, SMH) finally snapped their nine-day losing streak on Monday (longest in 20 years), opened lower but have since bounced. Earnings are also set to play a big part in today's trading as shares of MMM, GE, GM, SYF, HAS all reported this morning with UAL, NFLX, SPCX out tonight. Oil advanced initially, with Brent reaching a five-month high, as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf…but have since reversed lower. The November contract for US West Texas Intermediate crude, which expires on Tuesday, rose as high as $110, the highest since April. Housing data today abysmal for Housing Starts and Pending Home Sales given rise in rates/yields. Healthcare (XLV) hits all-time highs, along with strong gains in defensive Utilities, REITs and Staples.

• Building permits for September edged down 0.2% M/M to SAAR of 1.400M in September, exceeding the 1.387M consensus, from 1.403M prior (revised from 1.394M). Single-family authorizations were at a 845,000 rate, 4.0% below the revised August figure of 880,000.
• U.S. Pending Home Sales Index: -7.3%  M/M to 66.0 vs. 0.0%  consensus and +0.3% prior, according to data released by the National Association of Realtors on Tuesday.

• Furniture retailers: ARHS was upgraded to Overweight from Neutral at Piper in Furniture retailers; raising Q3 comp / sales estimates and Piper's PTs for ARHS, W, and WSM, given Q3 survey results and an industry backdrop supportive of accelerating share gains for all three. Piper’s Q3 Furniture Retailer survey showed an acceleration in demand trends vs Q2 as written demand for Q3 was +6.4% mean and +6.0% median - an improvement from Q2. Demand trends were strongest in September (+DD%), +MSD% in July, but were pressured in August (-LSD%).
• Animal health sector: Jefferies downgraded shares of both ELAN (tgt to $24 from $31) and ZTS (tgt to $83 from $103) to Hold from Buy citing the company's softer pricing environment for the downgrade. It estimates price made up 64% of Zoetis' earnings growth between 2022-25 and without this driver, lower volumes constrain profit growth. For ELAN, says volume, not price, has driven Elanco's growth transformation, and trends are holding in 2026.
• Financial service sector: EFX reported Q3 revs +10% y/y in-line with consensus and adj EPS topping while lowers 2026 full-year revenue guidance midpoint to $6.661B due to weak U.S. mortgage market and expects 2026 adj EPS of $8.50, down $0.04 at midpoint from prior guidance. Equifax says US mortgage market weakness intensified as 30-year fixed rates rose around 75bps since July, creating a USD 20mln September revenue headwind versus its framework. MSCI rises on results as EPS $5.11 tops est. $5.02 and revs up 12% y/y, driven by higher asset-based fees and recurring subscription revenues, though Operating expenses rose due to increased IT, professional fees.

• BRZE +51%; as CRM agreed to acquire BRZE for about $5.66B as Braze Class A shareholders will receive $47.50 in cash per share, under the terms of the agreement. The deal is expected to close in Salesforce's fiscal year 2028, subject to approval by Braze shareholders and regulators.
• HAL +4%; posted Q3 profit that topped estimates, helped by higher demand for its oilfield equipment in Latin America which rose +12.6% y/y to $1.1B; overall Q3 EPS of $0.60 topped the $0.58 consensus.
• HAS +5%; Q3 revs $1.6B top consensus $1.48B; raised annual revenue forecast to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise.
• MYGN +35%; after saying it will sell its prenatal health testing business to LH for $210 million in cash, plus the value of the inventory; MYGN says the transaction is expected to be accretive to Myriad's revenue growth and profitability, while strengthening the balance sheet.

• CRSP -3%; announced CFO Raju Prasad, Ph.D., will be stepping down from the Company to pursue external opportunities, and A.J. Silver, the Company's Senior Vice President of Finance, will succeed Dr. Prasad as Chief Financial Officer.
• ELAN -4%; Jefferies downgraded shares of both ELAN (tgt to $24 from $31) and ZTS (tgt to $83 from $103) to Hold from Buy citing the company's softer pricing environment for the downgrade.
• GE 4%; Q3 adj EPS $2.25 vs est. $2.01 and Q3 revs $13.29B vs est. $12.87B; Q3 orders $19.0B; guides FY26 adj EPS $8.00-$8.10 (above prior forecast $7.65-$7.85) and vs est. $7.92 and FY26 rev growth of about 19-20% vs. consensus view $50.42B.
• GM -5%; shares fell after results as Q3 adj EPS $3.70 tops consensus $3.63 and revs $50B above est. $48.76B; sees 2026 adjusted EBIT in the range of $14.5B-$15.5B, narrowed from previous guidance of $14B-$16B; guides FY EPS $12.75-$13.75 vs. est. $13.41 (missing midpoint)
• SMR -3%; downgraded to Underweight from Equal Weight at Barclays saying commercial delays and contract uncertainty increase the company's execution risk

Closing Recap

Tuesday, October 20, 2026

U.S. stock markets were broadly higher, paced today by a surge in Healthcare (XLV) which hit all-time highs behind names like Lilly (LLY), while defensive and interest rate sensitive sectors Utilities (XLU), Consumer Staples (XLP) and REITs (XLRE) enjoyed strong returns. Tech bounced off overnight lows (XLK), but still underperformed in the S&P 500 as anxieties around artificial intelligence, debt concerns and high rates remain. Oil prices also eased after hitting fresh 6-month highs and Treasury yields were little changed, but the 10-year holding above 5.1% keeps markets on edge into the upcoming FOMC rate meeting. Earlier, major Asian indexes sold off, led by the Korean Kospi as shares in data-center startup Elice tanked more than 30% on their trading debut in Seoul, pressuring semis (SOX), and AI data center comps in the U.S. Names like CoreWeave (CRWV) in the neocloud sector continue to slide as investors scrutinize the debt loads financing its own data-center rollout. In earnings, auto giant GM tumbled despite mostly better results as guidance showed caution. Tonight, earnings from SpaceX's (SPCX) second earnings report as a public company for clues on the prospects of its AI business, its level of spending and more while Netflix (NFLX) and United Airlines (UAL) also are due to report earnings.

• Building permits for September edged down 0.2% M/M to SAAR of 1.400M in September, exceeding the 1.387M consensus, from 1.403M prior (revised from 1.394M). Single-family authorizations were at a 845,000 rate, 4.0% below the revised August figure of 880,000.
• U.S. Pending Home Sales Index: -7.3%  M/M to 66.0 vs. 0.0%  consensus and +0.3% prior, according to data released by the National Association of Realtors on Tuesday.

• Longer-run Treasury yields edge lower as oil prices fall and September's housing data came in weaker than analysts expected. The U.S. 10-year yield declines -1.9 bps to 5.116%, while the 30-year yield slips -4.7 bps to 5.425%. The U.S. 2-year yield rose 2.6 bps to 4.785%. Wednesday holds no major economic data releases amid the Federal Reserve's blackout period. Traders are anticipating that the committee will keep rates steady later this month.
• Precious metals were mixed as December gold slides -$17.50, or -0.42%, to settle at $4,142.60 an ounce while December silver rises +$0.73, or +1.27%, to settle at $58.00an ounce. The U.S. dollar slipped as doubts over the AI trade resurfaced, while the euro edged up despite traders' lingering worries about unrest in France. The dollar index (DXY) fell 0.27% to 101.70, with the euro up 0.2% at $1.1232. markets remain wary of the euro despite as France faces widespread protests and a worsening fiscal picture. The yen jumped after an auction of longer-dated Japanese government bonds drew record demand.

• Apparel & Footwear retail: Addidas (ADDYY) preliminary Q3 revenue rose 9% yr/yr to record level while Q3 operating profit grew 37% to record level; said gross margin improved, aided by €200 mln US tariff refund and full-price sales; Sees 2026 currency-neutral revenue growth between 9% and 10% and raises 2026 operating profit outlook to around €2.5B from €2.3B
• Specialty retailers: toy retailer HAS Q3 revs $1.6B top consensus $1.48B; raised annual revenue forecast to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise; said Q3 revenue in its Wizards of the Coast and Digital Gaming segment during the third quarter rose 31%, while consumer products segment was up 4% from a year ago.
• Consumer Staples sector: KR unveils long-term targets under CEO Greg Foran ahead of investor day, reaffirms annual forecasts; said sees ~3% comp sales growth by 2029, ex: fuel and pharmacy, along with 3%-6% adj core profit growth and 7%-11% adj EPS growth for 2027 through 2029.

• Furniture retailers: ARHS was upgraded to Overweight from Neutral at Piper in Furniture retailers; raising Q3 comp / sales estimates and Piper's PTs for ARHS, W, and WSM, given Q3 survey results and an industry backdrop supportive of accelerating share gains for all three. Piper’s Q3 Furniture Retailer survey showed an acceleration in demand trends vs Q2 as written demand for Q3 was +6.4% mean and +6.0% median - an improvement from Q2. Demand trends were strongest in September (+DD%), +MSD% in July, but were pressured in August (-LSD%).

• Nuclear Power/Utilities sector: SMR downgraded to Underweight at Barclays saying commercial delays and contract uncertainty increase the company's execution risk; AEP was upgraded to Buy at BTIG saying the company has been successful in leveraging its core geographical footprint and work on optimizing time to power to become one of the core large load growth plays

• Asset managers/Private Credit: BLK was upgraded from Hold to Buy at TD Cowen and raised tgt to $1,405 from $1,212 saying after sharp YTD peer/market underperformance, believes Q326 Marks an important inflection. TDCowen's thesis Centers on: 1) rising visibility to '30E KPIs; 2) ex ST market action, it believes Street is too low looking to '28E+; and 3) BLK is well positioned across key vectors for organic growth - Passive, Solutions, Private Markets, Retirement, non-US & cash.
• Brokers & Exchanges: TW announced plans to acquire electronic fixed-income competitor Trumid for ~$1.97B, including $1.75B for the business and approximately $220M for tax assets. The purchase price will be funded with $1.888B in cash and $82M in equity. The deal is expected to close in 1H27, with an approximately 18-month integration
• Financial service sector: EFX reported Q3 revs +10% y/y in-line with consensus and adj EPS topping while lowers 2026 full-year revenue guidance midpoint to $6.661B due to weak U.S. mortgage market and expects 2026 adj EPS of $8.50, down $0.04 at midpoint from prior guidance. Equifax says US mortgage market weakness intensified as 30-year fixed rates rose around 75bps since July, creating a USD 20mln September revenue headwind versus its framework. MSCI rises on results as EPS $5.11 tops est. $5.02 and revs up 12% y/y, driven by higher asset-based fees and recurring subscription revenues, though Operating expenses rose due to increased IT, professional fees.
• Insurance sector: WRB reported operating EPS of $1.17 vs. consensus of $1.16, with the underwriting beat largely driven by stronger-than-expected Insurance results, partially offset by weaker Reinsurance margins. Net investment income was $383.5m, supported by 12% y/y growth in the core portfolio.
• REIT sector: Deutsche Bank with several changes as HR was upgraded to Buy from Hold and downgraded EPRT to Hold from Buy while LTC, NNN, FR, WELL, ESS, VMRK top picks into earnings in REITs. The firm enters Q326 earnings season with a constructive view on REITs' internal growth outlook given steady/improving demand and falling supply across most property types. The firm particularly likes Hotel & Industrial REITs into Q326 earnings given strong demand tailwinds and believe companies in these sectors are most likely to beat and raise.

• ALVO said the FDA approves new manufacturing process, SIMLANDI, that doubles output per batch. SIMLANDI is co's biosimilar to ABBV’s Humira, a drug used to treat inflammatory conditions such as rheumatoid arthritis and Crohn's disease.
• CRSP announced CFO Raju Prasad, Ph.D., will be stepping down from the Company to pursue external opportunities, and A.J. Silver, the Company's Senior Vice President of Finance, will succeed Dr. Prasad as Chief Financial Officer.
• MYGN said it will sell its prenatal health testing business to LH for $210 million in cash, plus the value of the inventory; MYGN says the transaction is expected to be accretive to Myriad's revenue growth and profitability, while strengthening the balance sheet.
• NBIX announced the initiation of its Phase 2 clinical study of investigational compound NBI-1117567 in adults with mild to moderate Alzheimer's disease. The study will evaluate the potential of NBI-'567 to improve cognitive performance in adults with mild to moderate Alzheimer's disease who are receiving stable treatment with an acetylcholinesterase inhibitor.
• RAPP said its bipolar mania treatment, RAP-219, met the main goal and secondary goals in a mid-stage trial. RAPP says patients who took the treatment had a 15.4-point mean reduction in the total score on the Young Mania Rating Scale (YMRS), which measures and quantifies the severity of manic symptoms.
• Dialysis sector: shares of DVA, FMS declined after Axios reported a new Trump admin plan for kidney care calls for injecting more competition into treatment markets, incentivizing innovation and focusing more on preventive care. Chronic kidney disease is common, expensive and deadly. But it often goes undetected until patients enter late stages when treatment options are more limited.
• Healthcare Services/Testing sector: QGEN shares rose after Bloomberg report earlier that the Co is in advanced talks to be acquired by Swedish buyout firm EQT, citing people familiar with the matter. Qiagen's board is meeting this week to decide on the potential deal, the report said. EQT has submitted a binding offer of more than $50 per share for Qiagen, while US private equity firm KKR has also made a bid, Bloomberg News reported https://tinyurl.com/kej97aws
• Animal health sector: Jefferies downgraded ELAN (tgt to $24 from $31) and ZTS (tgt to $83 from $103) to Hold from Buy citing the company's softer pricing environment. It estimates price made up 64% of Zoetis' earnings growth between 2022-25 and without this driver, lower volumes constrain profit growth. For ELAN, says volume, not price, has driven Elanco's growth transformation, and trends are holding in 2026.

• Power/Infrastructure sector: PWR, MTZ in focus as the US Department of Energy on Tuesday said it would invest roughly $967 million in additional funding to modernize critical energy infrastructure in a bid to lower surging electricity costs. The funding is through the Grid Resilience State and Tribal Formula Grant program and will support projects to help states, territories and tribes invest in infrastructure improvements to ensure more affordable and dependable power, the DOE said.
• Aerospace sector: GE Q3 adj EPS $2.25 vs est. $2.01 and Q3 revs $13.29B vs est. $12.87B; Q3 orders $19.0B; guides FY26 adj EPS $8.00-$8.10 (above prior forecast $7.65-$7.85) and vs est. $7.92 and FY26 rev growth of about 19-20% vs. consensus view $50.42B; expect 2027 commercial services to grow low double-digits supported by over $170B commercial services backlog.
• Defense sector: NOC and RTX both rally behind better earnings results and backlog numbers; NOC Q3 sales $11.1B vs. est. $11.13B; Q3 backlog increases to $110B; still sees FY Sales $43.75B-$44.25B vs. est. $44.05B; while raises FY26 segment operating income view to $4.94B-$5.04B from prior view $4.85B-$5B. RTX raised its sales forecast range to $97B-$97.5B, from prior view $95B-$96B and now expects 2026 adjusted EPS of $7.65-$7.75, up from its prior forecast of $7.10-$7.25. The better guidance comes following a top and bottom line beat for Q3 results; Quarterly revenue at Collins Aerospace rose 10% on a 23% jump in commercial original equipment sales, while revenue at Pratt & Whitney increased 10%, helped by a 21% rise in commercial aftermarket sales.
• Packaging and Container sector: CCK shares fell as better Q3 results (adj. EPS $2.39/$3.71B vs. est. $2.26/$3.46B) was offset from weaker guidance as sees Q4 adj. EPS guidance $1.63-$1.73 vs. est. $1.80; FY adj. EPS guidance $8.35-$8.45 vs. est. $8.40.

• Data center sector: Day started off rough for many of these names, but buyers stepped in, lifting shares of neoclouds and chip stocks. Piper noted shares of the Bitcoin miners (HUT, RIOT, MARA, etc.) have come under pressure as the broader Ai trade has reversed. Hotter inflation and higher oil prices have revived concerns about further rate hikes, credit markets have begun repricing the debt needed to fund data center buildouts, and investors continue to debate whether planned Ai CAPEX will materialize. With these companies likely requiring access to debt (and to a significantly lesser extent equity), their shares have traded as leveraged bets on these broader debates rather than on company-specific fundamentals.
• AI space: META shares fell 0ver -2% to $689, remaining weak all day and falling for a 5th straight day (down from 10/13 high $771.27) ahead of earnings tomorrow night; TD Cowen said today in a note that their latest checks indicate NVDA is providing credit support to ORCL, either in the form of backstops or by leasing capacity directly and subleasing it to Oracle, which they believe in part explains Oracle's recent wave of data center leasing in Southeast Asia in support of its recently reported agreement with Tencent.

• Hardware sector: AAPL was downgraded to Hold at Loop Capital Buy and PT to $330 from $370, lowering estimates after concluding the ~10% Sep/Dec iPhone shipment reductions are unlikely to be fully recovered in 2027 as previously expected. The firm now sees the issue as increasingly demand-related rather than purely supply-driven, while rising memory costs add gross-margin risk.
• Cyber security sector: Stifel said survey results in deep-dive C3Q26 Cybersecurity VAR Survey improved nicely sequentially, with more VARs growing Y/Y and all-time record outperformance levels (spanning 35 quarters). Survey results were stronger for DDOG, improved for RBRK, more balanced for NET, and weaker/decelerating for CHKP. By category, Identity, Cloud, Network, and AI Security were top spending priorities.
• Internet Content/Delivery; AKAM was upgraded to Strong Buy at Raymond James after the pullback, arguing the market is over-penalizing its ~$5.5B capital commitment supporting >$11B of expected Anthropic revenue. AKAM represents <3% of Anthropic’s estimated ~$520B of infrastructure obligations over the next 7–10 years, making it a relatively small but differentiated piece of the buildout given Akamai’s networking footprint

• MU invests in U.S. Critical minerals processing to strengthen domestic semiconductor supply chain. Partners with Indium Corporation to expand high-purity mineral refining and manufacturing in Rome, New York, supported by a long-term supply agreement. Investment aims to restart domestic processing of critical semi materials and reduce reliance on concentrated refining capacity.
• QCOM will cut jobs globally in a "performance-focused reduction" following its annual employee reviews, CEO Cristiano Amon told staff in a memo on Monday reviewed by Reuters, with notifications set to begin in November.

Street Recommendations

Tuesday, October 20, 2026

• CMC Barclays analyst Richard Garchitorena lowered the firm's price target on Commercial Metals to $72 from $80 and keeps an Equal Weight rating on the shares. The firm reduced the company's estimates post the fiscal Q4 report. Barclays sees an eventual precast recovery and an accelerated buyback program as supportive, but believes seasonality is a share overhang until next construction season.
• LBTYA Barclays lowered the firm's price target on Liberty Global to $7 from $10 and keeps an Equal Weight rating on the shares. European telecom services companies are generally seen as defensive, and relatively insulated from economic shocks, the analyst tells investors in a research note. However, Barclays says the sector faces technology risks with satellite and agentic AI the latest two to threaten cash flows.
• SMR Barclays downgraded NuScale Power to Underweight from Equal Weight with a price target of $5, down from $11. The firm says commercial delays and contract uncertainty increase the company's execution risk. NuScale's investment case is dependent on its commercial milestones that have been slower to materialize than expected, the analyst tells investors in a research note. Barclays says an agreement between the Tennessee Valley Authority and ENTRA1 Energy supporting the proposed six gigawatt deployment has yet to be announced. The firm sees risk of the negotiations extending into 2027.

• UAL Bernstein lowered the firm's price target on United Airlines to $160 from $162 and keeps an Outperform rating on the shares ahead of quarterly results. The firm's models are adjusted for a worse fuel backdrop that it models as a bit more severe than the Street through the end of 2026.
• NOW Bernstein raised the firm's price target on ServiceNow to $266 from $248 and keeps an Outperform rating on the shares. With ServiceNow's Q3 earnings a week away, the firm has been double-checking its call that second half of the year would prove a potential catalyst for the stock to re-rate up. The take rate has remained in the 50% range at renewal since they were introduced, Bernstein notes. When the firm models adoption with the effective higher prices in like-for-like SKUs the company has indicated, it finds that Q3 has a modest 20 bps tailwind that rises towards 60bps-70bps by Q4.

• GILD BofA raised the firm's price target on Gilead to $172 from $168 and keeps a Buy rating on the shares after the company announced results from the phase 2 SWIFT study evaluating once-daily oral emvistegrast in moderate-to-severe ulcerative colitis. The firm is "encouraged by the data," which it sees supporting a potentially differentiated profile combining competitive efficacy, oral convenience and favorable initial safety, the analyst tells investors.

• AMPL BTIG raised the firm's price target on Amplitude to $17 from $13 and keeps a Buy rating on the shares as part of a broader research note previewing Q3 for application software. The firm sees slight annual recurring revenue growth acceleration for the company as feasible, with the sense that investors are becoming comfortable with the recent Statsig partnership, the analyst tells investors in a research note.
• TEAM BTIG analyst Allan Verkhovski raised the firm's price target on Atlassian to $260 from $230 and keeps a Buy rating on the shares ahead of its Q3 results. The firm states that its customer checks were constructive and pointed to a continuation of the trend seen last quarter, including further migration to the cloud among large technology customers, the analyst tells investors in a research note.

• MOD Cantor Fitzgerald analyst Manish Somaiya initiated coverage of Modine with an Overweight rating and $275 price target. Modine combines a rapidly scaling data center business, with sales up 73% to $1.1B in FY26 and 90% year-over-year in 1Q27, with margin-recovery potential and a more focused portfolio following the PT divestiture, while its ability to convert custom engineering into repeat production could drive stronger margins and returns on invested capital beyond simple AI-spending exposure, the analyst tells investors in a research note.

• AA Citi lowered the firm's price target on Alcoa to $56 from $76 and keeps a Buy rating on the shares. The firm updated the company's model post the Q3 report. Alcoa shares look inexpensive but "positive catalysts are harder to identify," the analyst tells investors in a research note.
• TEAM Citi raised the firm's price target on Atlassian to $245 from $225 and keeps a Buy rating on the shares as part of a Q3 earnings preview. The firm says Atlassian is one of its highest conviction ideas over the near term. Citi views the stock as "mispriced" but the potential for the company to post "beat and raise" quarters.
• RELX Citi downgraded Relx to Neutral from Buy with a price target of 3,125 GBp, up from 2,870 GBp. The firm cites valuation for the downgrade following the stock's recent re-rating. Citi now sees limited valuation for Relx in the near-term.
• SBUX Citi analyst Jon Tower lowered the firm's price target on Starbucks to $104 from $112 and keeps a Neutral rating on the shares as part of a fiscal Q4 earnings preview. Citi's data indicate Starbucks' comp growth "remained robust" in the quarter. However, the firm sees limited upside from current valuation levels.
• MANH Citi raised the firm's price target on Manhattan Associates to $260 from $203 and keeps a Buy rating on the shares. The firm is "constructive" on supply chain software into the Q3 reports. Supply chain software is one of the more resilient software categories, benefitting from customer prioritization of automation and supply chain modernization, the analyst tells investors in a research note. It cites improved fundamentals for the target boost.

• HR Deutsche Bank upgraded Healthcare Realty Trust to Buy from Hold with a $23 price target.

• FIX Goldman Sachs lowered the firm's price target on Comfort Systems USA to $1,875 from $2,159 and keeps a Buy rating on the shares. Engineering and Construction valuations have fallen 14% since Q2 earnings and 23% year-to-date, led by multiple compression in high valuation, data center-exposed stocks as investors question hyperscaler capex durability and post-2027 earnings power and weigh rising legislative scrutiny of data center development, creating a challenging setup for MEP companies heading into Q3 earnings, the analyst tells investors in a research note.
• EME Goldman Sachs lowered the firm's price target on Emcor to $795 from $885 and keeps a Neutral rating on the shares. Engineering and Construction valuations have fallen 14% since Q2 earnings and 23% year-to-date, led by multiple compression in high valuation, data center-exposed stocks as investors question hyperscaler capex durability and post-2027 earnings power and weigh rising legislative scrutiny of data center development, creating a challenging setup for MEP companies heading into Q3 earnings, the analyst tells investors in a research note.

• ZTS Jefferies analyst Keith Devas downgraded Zoetis to Hold from Buy with a price target of $83, down from $103. The firm cites the company's softer pricing environment for the downgrade. It estimates price made up 64% of Zoetis' earnings growth between 2022 2025. Without this driver, lower volumes constrain profit growth, even after the 2026 reset, the analyst tells investors in a research note. Jefferies believes Zoetis' visibility is low and its margins could be reset again, warranting a lower multiple.
• ELAN Jefferies downgraded Elanco to Hold from Buy with a price target of $24, down from $31. The firm cites the company's softer pricing environment for the downgrade. The firm says volume, not price, has driven Elanco's growth transformation, and trends are holding in 2026. However, Zoetis' price concessions add risk to Elanco's path ahead, the analyst tells investors in a research note. Jefferies says Elanco shares rerated over the past year, with upside from here needing better numbers, "which carries risk."
• SAN Jefferies downgraded Banco Santander to Hold from Buy with a price target of EUR 13, up from EUR 12. The firm says the bank's earnings momentum is already reflected in consensus estimates.
• TRI Jefferies analyst Surinder Thind initiated coverage of Thomson Reuters with a Buy rating and $130 price target, citing improved competitive positioning, faster new product innovation, accelerating organic revenue growth and an "attractive" capital return policy among reasons to own the stock. The firm sees AI as "an enabler, not a disruptor" and as a tailwind that should help the information services provider build a new moat around its business by leveraging its decades of proprietary data, the analyst added.

• NVT JPMorgan initiated coverage of nVent Electric with an Overweight rating and $167 price target. The company has "sufficient earnings revision momentum" to allow the stock to move higher, the analyst tells investors in a research note. The firm says nVent has a high share of sales from liquid cooling, one of the few categories in data center infrastructure that is early in its up-cycle. JPMorgan sees an attractive valuation at current share levels.
• HUBB JPMorgan reinstated coverage of Hubbell with a Neutral rating and $485 price target. The company has seen a "catch-up bounce" in 2026 utility sales after a period of de-stock, the analyst tells investors in a research note. However, JPMorgan believes Hubbell's multiple may struggle to expand, with slowing sales growth and limited earnings revision momentum.
• MPLX JPMorgan assumed coverage of MPLX with a Neutral rating and $62 price target. The firm says MPLX offers "attractive defensive attributes" but lacks near-term catalysts.
• SUN JPMorgan assumed coverage of Sunoco LP with an Overweight rating and $87 price target. The company's initiatives to expand the platform over recent years have positioned it to capitalize on the "constructive" commodity fundamentals, the analyst tells investors in a research note.
• WES JPMorgan assumed coverage of Western Midstream with a Neutral rating and $50 price target. Brazos is boosting the company's growth but the shares at current levels offer a balanced risk/reward, the analyst tells investors in a research note.

• EYPT Mizuho downgraded EyePoint to Neutral from Outperform with a price target of 50c, down from $39. The firm cites the negative Phase 3 LUCIA study results for lead asset Duravyu for the downgrade. The share selloff yesterday indicates a lack of confidence in management as well as Duravyu's chances for success to show efficacy in the two ongoing Phase 3 studies, the analyst tells investors in a research note.
• CAH Mizuho raised the firm's price target on Cardinal Health to $280 from $250 and keeps an Outperform rating on the shares. The firm adjusted targets in the drug distributor space as part of a Q3 earnings preview. U.S. prescription growth improved to up 1.6% year-over-year in Q3, the analyst tells investors in a research note.

• HUT Piper Sandler lowered the firm's price target on Hut 8 to $123 from $143 and keeps an Overweight rating on the shares. Shares of the bitcoin miners in the firm's AI/HPC data center coverage universe have come under pressure as the broader AI trade has reversed. Hotter inflation and higher oil prices have revived concerns about further rate hikes, credit markets have begun repricing the debt needed to fund data center build-outs, and investors continue to debate whether planned AI capital expenditures will materialize. While the outlook remains uncertain, Piper believes stocks remain attractive, especially after the recent selloff.
• MARA Piper Sandler analyst Patrick Moley lowered the firm's price target on Mara Holdings to $11 from $13 and keeps an Overweight rating on the shares. Shares of the bitcoin miners in the firm's AI/HPC data center coverage universe have come under pressure as the broader AI trade has reversed. Hotter inflation and higher oil prices have revived concerns about further rate hikes, credit markets have begun repricing the debt needed to fund data center build-outs, and investors continue to debate whether planned AI capital expenditures will materialize. While the outlook remains uncertain, Piper believes stocks remain attractive, especially after the recent selloff.
• RIOT Piper Sandler analyst Patrick Moley lowered the firm's price target on Riot Platforms to $19 from $25 and keeps an Overweight rating on the shares. Shares of the bitcoin miners in the firm's AI/HPC data center coverage universe have come under pressure as the broader AI trade has reversed. Hotter inflation and higher oil prices have revived concerns about further rate hikes, credit markets have begun repricing the debt needed to fund data center build-outs, and investors continue to debate whether planned AI capital expenditures will materialize. While the outlook remains uncertain, Piper believes stocks remain attractive, especially after the recent selloff.
• AXON Piper Sandler lowered the firm's price target on Axon to $561 from $732 and keeps an Overweight rating on the shares. In this quarter's volume, vendors are clearly seeing Federal prime-deal strength and notable large wins across state and local. The firm remains a buyer of the space given durable growth drivers that are both secular and idiosyncratic.

• NCLH Susquehanna analyst Christopher Stathoulopoulos lowered the firm's price target on Norwegian Cruise Line to $16 from $17 and keeps a Neutral rating on the shares. The firm expects demand commentary from the cruise lines to be positive in Q3. It cites lingering concerns around the health of the consumer for the target cut.
• RCL Susquehanna lowered the firm's price target on Royal Caribbean to $355 from $372 and keeps a Positive rating on the shares. The firm expects demand commentary from the cruise lines to be positive in Q3. It cites lingering concerns around the health of the consumer for the target cut.

• CC Truist lowered the firm's price target on Chemours to $20 from $24 and keeps a Buy rating on the shares as part of a broader research note previewing Q3 results among Chemicals / Specialty Materials names. The near-term outlook across the sector continues to be impacted by supply- and cost-driven factors, but with incremental weakness for macro-driven demand becoming increasingly a concern, the analyst tells investors in a research note.
• OLN Truist lowered the firm's price target on Olin to $15 from $20 and keeps a Hold rating on the shares as part of a broader research note previewing Q3 results among Chemicals / Specialty Materials names. The near-term outlook across the sector continues to be impacted by supply- and cost-driven factors, but with incremental weakness for macro-driven demand becoming increasingly a concern, the analyst tells investors in a research note.
• TROX Truist analyst Peter Osterland lowered the firm's price target on Tronox to $4 from $7 and keeps a Hold rating on the shares as part of a broader research note previewing Q3 results among Chemicals / Specialty Materials names. The near-term outlook across the sector continues to be impacted by supply- and cost-driven factors, but with incremental weakness for macro-driven demand becoming increasingly a concern, the analyst tells investors in a research note.

• IT Wells Fargo raised the firm's price target on Gartner to $175 from $150 and keeps an Underweight rating on the shares. The firm recently attended the Gartner Symposium conference in Orlando to learn more about Gartner's BTI transformation and meet with management. Wells continues to see uncertainty and risk around AI driving increasing engagement with Gartner analysts.
• MXL Wells Fargo lowered the firm's price target on MaxLinear to $78 from $95 and keeps an Equal Weight rating on the shares. While sentiment across analog semis has somewhat cooled relative to a quarter ago, continued expectations of strong beats / raises create a tough setup for the group, the firm notes. Wells sees some interesting risk / reward setups this quarter in the group.
• MCHP Wells Fargo analyst Joe Quatrochi lowered the firm's price target on Microchip to $80 from $88 and keeps an Equal Weight rating on the shares. While sentiment across analog semis has somewhat cooled relative to a quarter ago, continued expectations of strong beats / raises create a tough setup for the group, the firm notes. Wells sees some interesting risk / reward setups this quarter in the group.
• MPWR Wells Fargo lowered the firm's price target on Monolithic Power to $1,550 from $1,800 and keeps an Overweight rating on the shares. While sentiment across analog semis has somewhat cooled relative to a quarter ago, continued expectations of strong beats / raises create a tough setup for the group, the firm notes. Wells sees some interesting risk / reward setups this quarter in the group.
• NXPI Wells Fargo lowered the firm's price target on NXP Semiconductors to $235 from $280 and keeps an Equal Weight rating on the shares. While sentiment across analog semis has somewhat cooled relative to a quarter ago, continued expectations of strong beats / raises create a tough setup for the group, the firm notes. Wells sees some interesting risk / reward setups this quarter in the group.
• TXN Wells Fargo lowered the firm's price target on Texas Instruments to $300 from $310 and keeps an Equal Weight rating on the shares. While sentiment across analog semis has somewhat cooled relative to a quarter ago, continued expectations of strong beats / raises create a tough setup for the group, the firm notes. Wells sees some interesting risk / reward setups this quarter in the group.
• IRON Wells Fargo raised the firm's price target on Disc Medicine to $124 from $86 and keeps an Overweight rating on the shares. The firm is raising bitopertin's approval odds to 95% from 75% post data and increasing share/adherence. Debate shifts to market opportunity, where Wells is positive and sees upside on the second half of 2027 launch ramp, which remains underappreciated at current levels.

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

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