Mid-Morning Look

Tuesday, December 02, 2025

U.S. stocks rebounding following yesterday’s decline, led by technology shares as the Nasdaq rises over 1%, while most other S&P sectors are lower, led by a pullback in Energy and Consumer Staples. After slumping Monday, the Smallcap Russell 2000 rebounds, as Wall Street braces for next weeks FOMC policy meeting where market hopes are for a 25-bps cut. Investors also await key jobs data (ADP, JOLTs, Jobless claims) and inflation data (PCE on Friday) this week. Bitcoin halts its recent slide and allows broader risk sentiment to stabilize, pushing back to $90K after falling below $84K on Monday. The yen is the weakest of the G-10 currencies, falling against the dollar and pushing USD/JPY above 156. Shares of MDB and CRDO outperform in the tech sector following strong earnings results and guidance last night, while several other tech companies report tonight as well (ASAN, BOX, CRWD, GTLB, MRVL, OKTA, PSTG). Commodity prices are lower as the US dollar and Treasury yields extend rebound, with gold falling on some profit taking as well.

• In Transports: XPO’s issued mid-quarter metrics update, confirm softening industrial demand; October tonnage declined -3.8% Y/y, generally in line with normal seasonality as per Benchmark Company, but November tonnage fell -5.4%, slightly below seasonality. ARCB Posted its mid-4Q25 update with 4QTD volumes better yet yields below some estimates as Nov LTL Tons/Day up 3.0% year-year; reiterates 4Q Asset-Light loss tgt; SAIA reports October LTL shipments down 3.4%, tonnage down 3.3% and Nov LTL shipments up 2.6%, tonnage up 1.8%.
• In Retail: Cyber Monday sales: U.S. shoppers spent $14.25 billion on Cyber Monday, pushing total online sales over the Thanksgiving weekend to $44.2 billion, according to an Adobe Analytics report. Spending rose 7.7% during the so-called Cyber Week – the five days from Thanksgiving to Cyber Monday – compared with an 8.2% increase to $41.1 billion last year, the report added. At the beginning of the holidays, Adobe had projected online spending for the period this year to hit $43.7 billion, up 6.3% from a year earlier.
• In Auto Sector: Ford (F) said November U.S. Sales 164,925 vehicles, down -0.9%, U.S. Truck Sales 96,696 vehicles were flat, U.S. SUV Sales 64,022 vehicles, down -4.9%, U.S. internal combustion vehicle sales 144,377, up 2.2%, U.S. Electric Vehicle sales 4,247, down -61%, U.S. Hybrid Vehicle sales 16,301, up 13.6%, U.S. F-150 Lightning Sales 1,006, down -72% and U.S. F-150 Series Sales 60,961, down -9.6%; INVZ said Daimler Truck and Torc Robotics selected the company as LiDAR Partner for series production of level 4 Autonomous Trucks.

• BAYRY +12%; after the company said it welcomed the U.S. Solicitor General’s support for a Supreme Court review of a case that could curtail long-running litigation regarding its Roundup weed-killer. Bayer said the government’s support would be significant as the Court weighs its petition.
• CRDO +24%; shares rallied on results and guidance, as Q2 profit and revenue topped estimates, reflecting continued build-out of AI training and inference clusters; beat expectations in the OctQ with REV/EPS $268M/$0.67 above consensus $247M/$0.51 and guided JanQ strongly to $340M, ~38% above $247M consensus.
• EB +78%; shares jumped after Bending Spoons said it was buying the company in an all-cash deal worth about $500M, taking it private at $4.50 a share. The company already owns Vimeo, Evernote, Meetup, and WeTransfer, and says it wants to lean in on product: better search and discovery, AI tools.
• MDB +25%; after delivered a strong quarter across all key metrics, with revenue, Atlas growth, and profitability exceeding expectations; posted Q3 beat and raise on the top and bottom line, as total revenue beat by $37M/6% and Atlas again accelerated, this quarter by 1pt to 30% Y/y, with demand broad based on better margins.
• TER +5%; upgraded to Buy from Hold and raise PT from $162 to $225 at Stifel saying looking toward 2026/beyond, expects growth to accelerate reflecting a favorable, structural shift in Teradyne’s test revenue composition.
• U +3%; Wedbush raised price tgt to $55 for Unity (U) and added to Best Idea List, as Unity holds a strong position in the expanding game Engine and Mobile advertising markets, which should support sustained revenue and profit growth over the coming years.

• IREN -4%; shares fell after announces private offering of $1 billion of convertible bonds due 2032 and $1 billion of convertible bonds due 2033 and said it will sell ordinary shares in a registered direct offering.
• JANX -49%; shares slid after issued interim data from an early-stage trial of its experimental therapy for an advanced form of prostate cancer that disappointed Wall Street; analysts note a decline in the efficacy profile of the drug.
• SIG -3%; reported a Q3 EPS/sales beat but issued lower Q4 outlook; raised FY26 adj EPS view to $8.43-$9.59 from $8.04-$9.57 (est. $9.20) and guides FY26 revenue view to $6.70B-$6.83B from $6.67B-$6.82B (but below est. $6.83B), while narrows FY26 comp sales view to (0.2%)-1.75% from (0.75%)-1.75%.
• SYM -11%; was downgraded to Sell from Neutral at Goldman Sachs following the 260% increase in the stock YTD (vs. the S&P 500 up 16%) and 54% increase (vs. the S&P 500 up 2%) in the stock since the company’s modestly above consensus 4QFY25 report in late November.
• VTYX -8%; after revises guidance for topline data release from interim analysis of phase 2 RP trial to Q1 2026; delayed the data readout from a mid-stage trial of its VTX2735 asset.
• XPO -6%; issued mid-quarter metrics update, confirm softening industrial demand; October tonnage declined 3.8% Y/y, generally in line with normal seasonality as per Benchmark Company, but November tonnage fell -5.4%, slightly below seasonality.