Mid-Morning Look

Tuesday, November 04, 2025

U.S. stocks showing a little weakness overnight, dragged down by tech and AI related names initially as a pullback in shares of PLTR last night following better results/guidance raised concerns that investors may starting to get a bit cautious given soaring valuations. However, after falling more than 1% this morning, major averages have already begun their bounce off the lows, just another day of “buying the dip” which Wall Street has become very accustomed to. Today’s focus remains on earnings and the US political elections. This morning’s action follows a mixed Monday for the market where the Dow and Smallcap Russell 2000 underperformed the S&P 500 and Nasdaq, which benefitted from strength in large cap tech as the high concentration of big tech stays strong. In currencies, the euro extends recent slide, falling below $1.15 against the US dollar to 3-month lows as the dollar index (DXY) tops the 100 level. Bitcoin prices hit lowest levels since June below $104,000 as investors exhibit caution in some risk assets. Out of the 336 S&P 500 companies that have reported so far in the earnings season, 82% have managed to beat analyst forecasts, while 14% have missed. A massive flurry of earnings overnight/this morning (details of biggest movers below) and remains busy the next three days. CEOs of Wall Street heavyweights Morgan Stanley and Goldman Sachs on Tuesday cautioned that equity markets could be heading toward a drawdown, underscoring growing concerns over sky-high valuations. Still no notable economic data out for markets/Fed as government shutdown rolls into day 35.

• In E&C: PRIM delivered a broad beat across revenue, EBITDA, and EPS, powered by operating leverage on a particularly strong Energy quarter and mgmt modestly raised its FY25 outlook; STRL Q3 results topped consensus, benefited from strong E-infrastructure revenue growth of 58% Y/Y, including a month of revenue from The CEC acquisition as backlog grew 64% Y/Y to $2.58B and raised guidance across the board; SEI Q3 adj EBITDA of $68.0M beat $61.1M consensus, driven by strong power solutions performance and raised Q425 EBITDA guidance to $65–70M from $58–63M previously, exceeding its $63M pre-release forecast.
• In Casino & Gaming: DKNG was downgraded to Neutral from Buy at bank America and cut tgt to $35 from $48 noting in the last two years, DraftKings’ iGaming share has declined from 27% to 23%. FanDuel’s focus on iGaming has contributed to some share loss but believe DraftKings has underperformed its own expectations. Bank America also downgraded FLUT from Buy to Neutral (tgt to $250 from $325) saying while more diversified In sport mix than DraftKings, FD has also seen a slowdown In handle Growth which is only ~+5% YTD. CZR downgraded to Hold from Buy at Jefferies (tgt to $22 from $39) noting underwhelming q3 results and lackluster guidance in Las Vegas has increased the complexity of the path to upside for shares. Jefferies upgraded RRR to Buy from Hold as believes the company’s project pipeline could bring several hundred million of incremental EBITDA. SGHC reported strong 3Q results, with revenue and Adjusted EBITDA, beating consensus by +9% and +25% respectively while raised its full year outlook, from its investor day by +3% on revenue and +1% on adj. EBITDA.

• EVOK +135%; as QOL Medical LLC agreed to acquire Evoke Pharma Inc. for $11.00 per share in cash through a tender offer, the companies announced.
• FN +8%; shares rose after Q1 results handily beat consensus Revenue/EPS by +5%/+$0.10, and F2Q guidance was well above consensus +9%/+$0.47 as strength again stemmed from accelerating Telecom (+59% y/y) inclusive of DCI (+92% y/y) likely due to Ciena and Cisco.
• HTZ +19%; after posting its first profit in two years, with a Q3 adjusted EPS of 12 cents/share, topping consensus of $0.02 and revs of $2.48B beats estimates of $2.4B, thanks to fleet refresh and better utilization.
• IHRT +18%; after Bloomberg reported NFLX is In talks to license video podcasts from IHeartMedia as it looks to compete head on with GOOGL’s YouTube. https://tinyurl.com/2vywdnub
• SANM +16%; the latest name in the sector to outperform post earnings, which beat handily and guided Q1 revs $2.9-3.2B well above the estimate $2.124B and adj EPS $1.95-2.25 vs est $1.65.
• SGHC +10%; strong 3Q results, with revenue and Adjusted EBITDA beating consensus by +9% and +25% respectively while raised its full year outlook, from its investor day by +3% on revenue and +1% on adj. EBITDA.
• TERN +24%; price tgt raised by several Wall Street firms as early-stage trial of experimental chronic myeloid leukemia drug, TERN-701, showed promising results; TERN says 64% of chronic myeloid leukemia patients achieved major molecular response (MMR) by 24 weeks.
• UPWK +19%; shares jumped after delivered strong 3Q results, with GSV returning to growth and coming in 2% ahead of consensus, while EBITDA exceeded expectations by ~$10M and management expects GSV momentum to persist, with further acceleration anticipated in 2026.
• WSR +6%; as MCB Real Estate issued an open letter to all Whitestone REIT shareholders regarding MCB’s proposal to acquire all of the outstanding shares of Whitestone REIT for $15.20 per share in cash.
• YUM +4%; after earnings and said it initiates review of strategic options for Pizza Hut as needs to take additional action to help Pizza Hut Brand realize its full value, which may be better executed outside of the company.

• ICHR -27%; reported 3Q earnings that fell shy of consensus estimates on a reduction in non-semicap revenue, the 4Q outlook was also below expectations, impacted by 3Q semicap pull-in strength, China export restriction, softness outside of etch/deposition and announced CEO departure.
• JELD -31%; after Q3 miss as Q3 adj EPS loss (-$0.20) vs. est. $0.14; Q3 revenue $809.5M vs. est. $823.64M; said plans to reduce its North America and Corporate workforce by approximately 850 positions, representing roughly 11%; cuts 2025 revenue view to $3.1B-$3.2B from $3.2B-$3.4B.
• MPC -9%; as Q3 adjusted profit of $3.01 per share vs estimates of $3.15 per share, as higher refining turnaround costs and operating expenses offset stronger margins and throughput. Quarterly refining planned turnaround costs stood at $400 million, compared with $287 million a year earlier.
• NCLH -10%; shares fell after missing Q3 revenue expectations ($2.94B vs. est. $3.02B) on subdued consumer appetite as consumers curb spending; also guided current quarter adjusted profit per share of $0.27 below consensus of $0.30.
• NSP-14%; declines on Q3 miss/lower guide; Q3 adj EPS ($0.20) vs est $0.22, adj EBITDA $10Mm vs est $29.8Mm on revs $1.623B vs est $1.632B; guides Q4 adj EPS ($0.79) vs est $0.08 and FY adj EPS ($0.16) vs est $2.11.
• PLTR -5%; shares fell despite a quarterly beat and boosted guidance as attention turned to its valuation after rallying more than 170% this year. News that investor Michale Burry of Scion Asset Management added large “put” contracts on both NVDA and PLTR in 13F filing weighed on shares.
• SRPT -28%; after saying two of its approved drugs for a muscle wasting disorder failed in a key study. SRPT was testing its therapies, Amondys 45 and Vyondys 53, in a trial aimed at seeking confirmation of their effectiveness in treating Duchenne muscular dystrophy.
• ZTS -13%; after Q3 EPS beat and revs just missed; lowers FY25 revenue View to $9.4B-$9.48B from $9.45B-$9.6B and below consensus $9.51B while backs year EPS view.