A Look at Wednesday

From my evening update:

US economic data is light Wednesday, with only weekly mortgage applications and EIA petroleum inventories.

The Fed remains in its blackout period ahead of next week’s October 27–28 FOMC meeting.

Non-Bill (>1yr in maturity) US Treasury auctions resume with a $13B 20-year bond reopening.

Q3 earnings season continues with 26 S&P 500 components including a number of AI-related names: Meta Platforms ($META), Tesla ($TSLA), Lam Research ($LRCX), Philip Morris ($PM), Thermo Fisher Scientific ($TMO), Texas Instruments ($TXN), IBM ($IBM), Abbott Laboratories ($ABT), NextEra Energy ($NEE), Danaher ($DHR), AT&T ($T), CME Group ($CME), Elevance Health ($ELV), CSX ($CSX), Moody’s ($MCO), Kinder Morgan ($KMI), United Rentals ($URI), Wabtec ($WAB), Crown Castle ($CCI), Northern Trust ($NTRS), Teledyne Technologies ($TDY), Las Vegas Sands ($LVS), Packaging Corp. of America ($PKG), Southwest Airlines ($LUV), Rollins ($ROL) and Globe Life ($GL).

Ex-US highlights are UK September CPI, PPI, RPI, public finances, August house price index, Japan September trade balance, New Zealand Q3 CPI.

Tech Selloff Deepens as Market Rotation Continues

Another selloff in AI names broadened to encompass most of Tech, sending the Nasdaq-100 to its worst week since April 2025. Five sectors though would finish the week up 2% or more, as 30-year Treasury yields fell the most since April 2025.

Upside, Downside Movers in the Morning

Upside

– $MEDS +36% (preliminary September pharmacy revenue exceeded $1M, rising more than 66% from July)

– $ACN +17% (Q4 beat with $22.2B of bookings and stronger operating margins)

– $ABAT +13% (receives federal approval to export up to $100M of recycled black-mass material)

– $QSI +13% (no clear fresh catalyst identified; unusually large move on heavy premarket volume)

– $VICR +12% (raises Q3 sequential revenue-growth outlook to more than 30% from more than 20% on higher royalties)

– $GLOB +11%, $CTSH +7.5%, $INFY +8.1%, $EPAM +6.6% (IT-services names rise in read-through from ACN’s Q4 beat, strong bookings and margin performance)

– $INSG +9.6% (completes fixed-wireless-access acquisition expected to roughly double revenue and expand its global footprint)

– $IBM +5.7% (unveils a self-hosted enterprise AI model)

– $NU +5.6% (rebounds after clarifying it is not pursuing the reported UK digital-bank acquisition)

– $GLUE +4.8% (Phase 1 GFORCE-1 results showed normalization of key pathogenic drivers of cardiovascular disease)

– $RKLB +4.3% (signs its largest commercial launch agreement, covering 20 missions and lifting total backlog above 100 launches)

– $MKC +3.7% (Q3 profit and sales beat expectations as pricing offset softer volumes)

– $SNPS +3.7% (signs a multiyear silicon-IP and engineering-software agreement valued above $1B)

– $CEG +3.4% (signs a 20-year, 690-megawatt nuclear power agreement supporting more than $3B of infrastructure investment)

– $TARA +3.3% (updated 12-month Phase 2 ADVANCED-2 data showed durable responses in BCG-naïve bladder-cancer patients)

Downside

– $FHTX -43% (Phase 1 review leads to discontinuation of FHD-909 expansion and a related degrader program; workforce cut about 40%)

– $ANGO -16% (no clear fresh catalyst identified; unusually large, high-volume premarket decline)

– $LQDA -12% (federal court rules YUTREPIA infringed two pulmonary-hypertension patent claims)

– $ZELA -12% (Phase 3 obesity trial met its endpoints, but weight-loss efficacy fell short of investor expectations)

– $BGIN -10% (slides following first-half results)

– $IVA -10% (extends weakness following unaudited first-half results and corporate update)

– $FLOC -8.5% (no clear fresh catalyst identified; unusually large, liquid premarket decline)

– $ENTX -6.4% (no clear fresh catalyst identified after healthcare and company-news checks)

A Hawkish Fed Does Little To Soothe Markets

The S&P 500 falls for the 7th time in 8 sessions straining against key downside levels as a more hawkish than expected Fed does little to soften expectations for higher volatility in stock and bond markets.