Mid-Morning Look

Wednesday, October 08, 2025

U.S. stocks kick off the trading day strong, rebounding after modest losses on Tuesday, and boosted again by tech after a one-day dip despite several media outlets talking about whether AI stocks are nearing bubble territory. U.S. Treasury yields were flat to lower in early trading as markets awaited an auction of 10-year notes (at 1:00 pm et) and the release of minutes from last month’s central bank meeting at 2:00 pm et. Concerns over Oracle’s (ORCL) cloud margins following a report in The Information Tuesday, potentially an early warning sign in AI, pressured tech stocks for less than 24 hours as major averages are strong led by technology (XLK +1%). Government shutdown is in Day 8 and still no signs of compromise by Republicans/Democrats with Healthcare remaining a key sticking point. More strength in precious metals as December gold prices jumped more than 1.5% this morning, scaling new record highs above $4,070 an ounce while spot silver climbs to $49 an ounce, first time since April 2011. Several Fed speakers on the calendar today, but no major economic data and earnings get going next week. Right now, more momentum buying, same sectors (tech, semis, data centers, power/nuclear names) while Energy, Staples, Financials fall.

• In Medical Equipment: DHR was downgraded from Buy to Neutral at Redburn saying its premium valuation has been supported by visible growth, but despite end markets stabilizing in 2024, the 2025/26 growth outlook remains well below historical levels. Agilent (A) was upgraded to Buy from Neutral at UBS with a view that the company is poised to sustain its growth leadership, which offers scope for multiple expansion vs peers. PEN was upgraded to Buy from Hold at Needham as expects a meaningful acceleration in PEN’s revenue growth in 2026 driven by: 1) the upcoming Thunderbolt launch, 2) the STORM-PE trial results, 3) the easing of headwinds in China, and 4) the Ruby XL launch.
• In Metals: FCX was upgraded to Buy at Citigroup after the firm’s global commodity research team raised their copper price forecasts and now expects the red metal to reach $12,000/ton in 1H26. FCX is oversold relative to the Grasberg accident, in Citi’s view, and this represents a rare opportunity to buy into the world’s largest copper miner at a discount. Mining and Building Material sector initiated at Wells Fargo: names Freeport (FCX) top pick with an Overweight and $47 PT, with other initiations include: VALE – EW, $11 PT, SCCO – EW, $121 PT, VMC – EW, $311 PT, CENX – OW, $37 PT, and AA – OW, $40.

• CFLT +17%; after Reuters reported that the company is exploring a sale after attracting acquisition interest. The co is working with an investment bank on the sale process, which is in its early stages https://tinyurl.com/37f4338r
• CRML +25%; as expects to supply up to 15% of rare earth concentrate production annually from its Tanbreez Project in Greenland to REalloys; agreement follows 10-year agreement to supply heavy rare earth concentrate to Ucore Rare Metal’s UCU.V U.S. government-funded Louisiana processing facility.
• DELL +8%; following analyst day commentary/targets given yesterday.
• EFX +2%; after saying in response to “FICO’s monopoly-like doubling of their mortgage credit score prices to $10 in 2026″ it was reducing VantageScore 4.0 mortgage credit scores more than 50% from Fair Isaac’s 2026 prices, to $4.50, through the end of 2027.
• FCX +5%; was upgraded to Buy at Citigroup after the firm’s global commodity research team raised their copper price forecasts and now expects the red metal to reach $12,000/ton in 1H26; also said shares are oversold; also Wells Fargo names Freeport (FCX) top pick with an Overweight and $47 PT.
• ZBIO +14%; said it has secured global rights to develop and commercialize an experimental drug from China-based InnoCare Pharma for multiple sclerosis and other autoimmune conditions under a licensing deal potentially worth more than $2 billion.

• IREN -4%; after announcing $875M convertible notes offering.
• JOBY -10%; as prices $513.9M underwritten offering of 30.5M common shares at $16.85 per share to accelerate production and commercial deployment of eVTOL fleet.
• NNE -9%; after the company announced it had entered into securities purchase agreements with institutional investors for the purchase and sale of 8,490,767 shares of common stock.
• PENG -18%; shares stumbled as AI computing infrastructure maker posted Q4 EPS that beat analysts’ estimates but revenue that missed and issued a forecast for fiscal 2026 that was well below expectations (guided FY26 sales growth 6% plus/minus 10% vs. 17% growth y/y and the 10% growth expected.
• SPRB -11%; after $50M private placement – Under the securities purchase agreement, the investors have agreed to purchase approximately 502,181 shares of the company’s stock at a purchase price of $68.00.