Mid-Morning Look

Wednesday, December 17, 2025

U.S. stocks open mixed, struggling for direction early as the S&P 500 (SPX) look to snap its 3-day losing streak since all-time highs last week and as investors await CPI inflation data tomorrow morning. NYSE market breadth is positive, but weakness in technology shares/Ai space is again weighing on broader averages. WTI crude is trending higher after 5-year lows after reports that U.S. President Donald Trump stateside designated Venezuelan government a “terrorist” organization and ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of the country. ORCL leading the AI trade lower after the Financial Times reported Blue Owl Capital (OWL) will not proceed with backing a planned $10B, 1-gigawatt Oracle data center in Michigan intended to serve OpenAI after negotiations stalled amid concerns over Oracle’s rising debt and AI spending. (ORCL, per Bloomberg, said that its equity deal on Michigan center still on schedule – refuting story – but shares continue to fall). Crypto prices/stocks battling back with Bitcoin +2.5% back above $90,000 while the dollar is higher and precious metals also higher. Earnings expected tonight in chip sector from Micron (MU); while Dow Transports back near all-time highs.

• In Business Services: Several changes at Morgan Stanley as FDS upgraded from Underweight to Equal Weight citing the sharp decline in shares in ’25 YTD (~-40%), as it thinks downside risks are now priced into the stock and expects improving capital markets to provide near-term upside as M&A and IPO activity recovers; CLVT was downgraded to Underweight, expecting the stock to underperform due to tight budgets, competition, and not much value from its strategic review; ROL upgraded to Overweight as see best-in-class operator with durable demand drivers, resilient end market, and structural tailwinds and SPGI was named top pick in Business Services for 2026; said prefer WSN in waste services.
• In Online Travel/Lodging: ABNB was upgraded to Outperform at RBC Capital and raise tgt to $170 from $145 calling it an increasingly attractive brand monetization story with strong 1p data which is likely worth a premium in the evolving consumer Ai landscape. Hyatt (H) was upgraded to Overweight from EW at Barclays saying it has the highest-end exposure, reaccelerating organic net rooms growth and valuation discount to HLT. TNL was upgraded from Underweight to Equal Weight at Barclays saying they come away from conference with view general timeshare trends appear stable, as do delinquencies. GLPI upgraded from Neutral to Outperform at Mizuho saying offers an attractive risk/reward.
• In Quantum Compute: Wedbush initiated IONQ Initiated Outperform and $60 PT, RGTI at Outperform and $35 PT, QBTS Outperform and $35 PT and QUBT at Neutral and $12 PT in Quantum space. Wedbush said Quantum Computing remains in its nascent stages, but the firm views it as a transformational technology with significant long-term potential which it believes will ultimately represent the next Frontier of Computing. Wedbush said it expects that by the end of the decade, Quantum Computing companies will represent a larger share of the total spend on compute from what is a very small base today.

• DBVT +26%; as announces positive topline results from phase 3 Vitesse trial of Viaskin® peanut patch in peanut allergic children aged 4-7 years; BLA submission in 4-7-year-olds on track for first half of 2026.
• HUT +17%; shares jumped after saying it has signed a 15-year, $7.0 billion lease with Fluidstack for 245 megawatts (MW) of IT capacity at its River Bend data center campus in Louisiana.
• JBL +8%; shares jumped after better Q1 top and bottom line and raises FY26 core adjusted EPS view to $11.55 from $11.00 (above consensus $11.12) and boosts FY26 revenue view to $32.4B from $31.3B (above consensus $31.57B), while backs FY26 adjusted free cash flow view $1.3B.
• PG +1%; after Jefferies upgraded to Buy earlier, on track for 7th straight day of gains as approaches its 50dma resistance of $147.57 (bouncing off recent 52-week lows).
• TTC +7%; after Q4 adj EPS and revenue topped consensus.
• TWO +10%; UWMC will acquire TWO in an all-stock transaction for $1.3 billion in equity value. Under the terms of the agreement, TWO stockholders will receive a fixed exchange ratio of 2.3328 shares of UWMC Class A Common Stock for each share of TWO common stock. This represents an $11.94 per share value
• UDMY +26%; after saying it will merge with COUR in a deal that will value the combined company at $2.5B; Udemy shareholders to receive 0.800 Coursera shares per share as anticipated cost synergies of $115 million within 24 months.

• LMT -2%; along with weakness in LHX, GD, NOC, RTX slide after reports the Trump White House is planning an executive order that would restrict share buybacks, executive pay, and dividends for defense contractors operating over budget and with delays, Reuters reports https://tinyurl.com/39s4fdz9
• NUE -1%; guides Q4 EPS $1.65-$1.75, below consensus $2.06 saying they expect earnings in quarter to decrease across all 3 operating segments as compared to Q3 driven by seasonal effects and fewer shipping days in Nucor’s fiscal quarter.
• ORCL -5%; after the Financial Times reported Blue Owl Capital (OWL) will not proceed with backing a planned $10B, 1-gigawatt Oracle data center in Michigan intended to serve OpenAI after negotiations stalled amid concerns over Oracle’s rising debt and AI spending. https://tinyurl.com/mw4jcxkw (ORCL later said that its equity deal on Michigan center still on schedule – refuting story)
• PLCE -37%; shares tumble as reports Q3 adj EPS loss (-$0.18) vs. $2.04 last year and Q3 revenue $339.47M down from $390.17M y/y while comparable retail sales decreased (-5.4%) for the quarter.
• SPIR -21%; after reporting Q3 results that were well below figures on a y/y basis with Q3 EPS loss (-$0.61) vs. (-$0.50) loss last year and revs $12.67M below $26.57M same time last year (and est. $22M); lowers FY25 revenue view to $70.5M-$72.5M from $85M-$95M.
• VTGN -76%; shares tumbled after announced that a Phase 3 trial for fasedienol, an experimental therapy for social anxiety disorder, did not achieve its primary endpoint; noted that its PALISADE-3 public speaking challenge study didn’t reach the main goal.