Mid-Morning Look

Wednesday, November 12, 2025

U.S. stocks off to a mixed start with the Nasdaq pulling back after overnight strength behind weakness in large cap tech (AAPL, GOOGL, META), while after closing at a new record high on Tuesday, the Dow Jones Industrial Average extends its record gains, rising as much as 1%. Global markets advanced overnight, buoyed by “risk-on” sentiment and a better mood in tech after AMD provided a very optimistic outlook for data center hardware deployment over the next five years after its comments and guidance at its Analyst/Investor Day event Tuesday. The imminent end of the US government shutdown might have also helped stocks rally yesterday afternoon and overnight as well. U.S. House majority leader Scalise said on CNBC this morning the House is to vote on Bill to end shutdown on Wednesday at around 7 P.M. et. If approved and signed into law, the government could reopen by Friday, with the release of official economic data resuming gradually thereafter. Recall soft ADP jobs data on Tuesday prompted traders to price in a higher chance of rate cut in December.

Early strength in financials, healthcare, and materials again while technology sees early pullbacks led by declines in large cap tech. Pharma/Biotech (XLV, IBB, XBI) seeing another bounce after closing at the highs on Tuesday after the FDA named Richard Pazdur to lead the Center for Drug Evaluation and Research (CDER), replacing George Tidmarsh who resigned from the agency early last week. Initial analyst feedback on the Pazdur appointment was broadly positive, given his experience in the agency and focus on expediting/streamlining approval processes. Overall, it appears action to kick off the week is more a sector rotation out of the big AI/tech winners this year (for the time being – and ahead of NVDA results next week), and into financials, healthcare, materials over the last few days. Energy giving back yesterday gains on pullback in oil as WTI crude slides -3% at $59.20 in sharp rollover, gives back yesterday’s +1.5% gain. December Gold rises 1% at highs around $4,170 an ounce, up 4 days in a row.

• Medical Equipment: BAX cuts quarterly dividend to $0.01 from $0.17; TMO received 510(k) clearance from the FDA to market its EXENT system to aid in the diagnosis of multiple myeloma. The company’s EXENT system detects, and isotypes M-proteins, abnormal antibodies produced by cancerous plasma cells. STXS reportedQ3 results and provided Q4 guidance that was in-line to slightly below expectations.
• In Telecom: AT was upgraded to Overweight from Sector Weight with $30 PT at Keybanc saying they think the recent pullback was driven by competitive-related concerns in Wireless and are overblown. For cable. The firm said they expect Cable (CMCSA, CHTR, CABO) to lose more Broadband subs in the next three years than they did in the previous three years, and are concerned that their estimates, let alone consensus’, are not negative enough.

• AMD +8%; after providing upbeat outlooks at its Analyst Day on Tuesday, saying it expects annual data center chip revenue of $100 billion within the next five years, and earnings to more than triple; provided broader targets, including 55%-58% gross margin, >35% operating margin, and FCF margin of ~25%.
• BILL +14%; shares rise after Bloomberg reported the company is exploring a sale as it faces pressure from activist investor Starboard Value LP https://tinyurl.com/5fer5a3w
• CWAN +11%; weighs sale after receiving takeover interest. The maker of investment and accounting Software is working with advisers to weigh its options and solicit interest from prospective buyers, Bloomberg reported. https://tinyurl.com/muzy9uyn
• FTCI +23%; shares jumped on smaller than expected Q3 EPS loss (-$0.36) vs. est. loss (-$0.53); Q3 revs surge 157% y/y to $26.0M vs. est. $21.12M and sees Q4 revenue $30.0M-$35.0M above est. $26.89M.
• GS +3%; hitting all-time highs amid surge in financial stocks.
• IBM +2%; announces Quantum Nighthawk, a processor designed to work faster than classical computers. IBM believes Nighthawk could beat classical computers on some tasks by the end of next year claiming it delivers 30% more circuit complexity and moves the industry closer to true quantum advantage.
• OKLO +7%; reported Q3 results that included higher than expected opex, but mgmt. and no revs again, but reiterated its 2025 guidance for cash used in operating activities of $65M-$80M; cash position increased to $1.2B due to raising $526M in net proceeds under its ATM.
• ONON +21%; shares rise on better results as Q3 revenue rose 24.9% y/y to CHF 794.4M vs. est. CHF 759.5M; said Apparel category sees significant growth, increasing net sales by 86.9%; Q3 gross profit margin reaches 65.7%; raises full-year 2025 net sales growth forecast to 34% y/y.

• BRCB -2%; shares fell as reported impressive 3Q comps, up 10.8%, supported by strong 6.1% traffic growth and sees October comps up 8.7%, but total revenue growth was more muted than anticipated due to the later timing of new store openings within the quarter.
• CRCL -7%; results topped estimates, but shares fell – Q3 revs $740M vs. $700.5M; said the circulation of USDC more than doubled from a year earlier to $73.7B up 108% y/y; raises FY25 adj operating expenses view to $495M-$510M from $475M-$490M.
• META -1%; along with declines in other Mag 7 names AAPL, AMZN, GOOGL, TSLA as large cap tech weak.
• SMWB -11%; shares slip on mixed Q3 as EPS $0.05 top est. $0.02 while revs $71.8M miss est. $71.95with better cRPO growth of 13% (Citizens estimate 6%), and billings growth of 26% y/y (consensus 11%), and backs FY25 revenue view $285M-$288M, vs. consensus $286.38M .
• STXS -15%; as reported Q3 results and provided Q4 guidance that was in line to slightly below expectations