Bank Earnings Get a Cool Reception as Chip Jitters Linger
Memory makers fell again and the big banks missed Street expectations but Mag-7 strength kept the S&P 500 flat.
Here’s Why the Simple Explanation for the Chip Selloff Makes No Sense
Chip stocks have sold down hard in the last couple of days. While Chinese competition is often cited as the motive, that’s a simplification that doesn’t add up.
Upside, Downside Movers in the Morning
Upside
– $VFC +4.0% (Piper Sandler and Truist upgrade as signs of Vans stabilization improve turnaround confidence)
– $GS +3.0% (Q3 beat, led by surging equities revenue and stronger investment-banking fees)
– $UNH +2.5% (Q3 beat and 2026 adjusted EPS outlook raised to at least $20.50)
Downside
– $SNDX -17.0% (MAXPIRe Phase 2 axatilimab trial in idiopathic pulmonary fibrosis missed its primary endpoint)
– $S -7.0% ($1.25B convertible senior-notes offering raises dilution and stock-supply concerns)
– $WDC -6.0% (UBS cuts its target on hard-drive capacity and pricing uncertainty, compounding the storage-sector selloff)
– $SNDK -6.0%, $STX -5.5%, $MU -3.5%, $MRVL -2.5%, $AMD -2.0% (memory, storage and chip names slide as reported CXMT advances intensify China-competition fears)
– $JPM -3.5% (Q3 EPS and revenue missed as fixed-income trading weakened despite stronger investment-banking fees)
– $DPZ -3.0% (Q3 beat, but US same-store sales growth slowed sharply, raising demand-recovery concerns)
– $JNJ -3.0% (Q3 beat, but medtech growth was soft and international device sales faced geopolitical disruption)
– $ADBE -1.5% (HSBC downgrades to Hold, citing open-source competition risks)
– $WFC -1.0% (Q3 EPS beat, but revenue and net-interest income missed expectations)
Chip Selloff Keeps a Lid on Indices Despite Another Day of Broader Gains
Eight of 11 sectors rose and the Dow Jones Industrial Average gained for a third straight day, but another selloff in chipmakers kept the S&P 500 little changed and the Nasdaq in the red on the lightest volume of the year.
As the Chatter Turns Back to Broadening Out, Are We About to Be Overbought?
Answering readers’ questions about the bonds and Nasdaq.
Upside, Downside Movers in the Morning
Upside
– $GIXI +135.0% (autonomous robots begin delivering blood and bone marrow at a major hospital, expanding an existing chemotherapy-logistics deployment)
– $CCC +10.5% (GTCR and Elliott are reportedly in advanced acquisition talks, with a deal potentially coming this week)
– $MEDS +7.0% (Humana adds the ChemoFx gynecologic-cancer assay to a Medicaid coverage policy)
– $IREN +5.5% (Anthropic is reportedly the previously undisclosed customer behind a multiyear AI-cloud services agreement)
– $BIIB +2.5% (JPMorgan upgrades to Overweight, citing an increasingly compelling clinical-catalyst path)
– $BFLY +1.5% (Canaccord initiates coverage with a Buy rating)
Downside
– $WFF -15.5% (gives back part of Friday’s nearly 500% speculative surge, with no fresh company catalyst identified)
– $QUCY -13.5% (launches an at-the-market equity program allowing up to $100 million of share sales)
– $MU -2.5%, $MRVL -2.0%, $INTC -1.5% (chip stocks weaken as advanced-memory competition and concerns over AI spending weigh on the sector)
A Broad Friday Rally Takes the S&P 500 Just Below Record Highs
Nine of 11 sectors rose, powering the S&P higher despite semiconductor weakness. Small-caps, though, posted a fifth straight weekly loss for the first time since 2022.
OpenAI Revenue Report Sinks AI, but the Rest of the Market Holds Up
An FT report that OpenAI’s revenue is running notably below earlier estimates sent AI shares sharply lower, but beneath the surface most stocks held up as Treasury yields eased and President Trump said the U.S. won’t attack Iran before the midterms.
Why Are Asia’s Chipmakers Selling Down on Sunny Forecasts?
Share prices of the two biggest Asian companies by market cap are down despite optimistic updates. Here’s what investors should watch heading into earnings season.
Stocks Slip From Records But Pare Losses After Strong 10-Year Auction
Long-end yields again hit multi-decade highs before a historically strong 10-year auction pulled them back, letting large-caps pare losses.