Midday Fly By: Broader market bought on dip after tech selloff

Stocks are seeing a mild bounce today after investors pulled back yesterday from AI-linked stocks amid mounting concerns over lofty valuations, driving a market selloff. On the economic front, ADP reported private payrolls rebounded 42,000 in October, which was better than forecast, and the September drop was revised up to a decline of 29,000 from the 32,000 dip previously reported.

The dollar has been mostly steady after recovering from an overnight dip against the yen, while gold rose as risk-off sentiment boosted safe-haven demand. Oil prices, which had been inching higher in the early going, have now pulled back following U.S. inventory data.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• AMD beat Q3 consensus forecasts and guided to better-than-expected Q4 sales, but the post-earnings reaction was muted as analysts highlighted high expectations
• McDonald’s (MCD) Q3 earnings missed estimates, but the company’s same-store sales rose 3.6%, boosted by its value offerings
• Amgen (AMGN) reported better-than-expected Q3 sales and earnings and boosted its FY25 adjusted EPS view
• Rivian (RIVN) reported Q3 results and said it “continued to make significant progress” across its strategic priorities in the quarter
• Pinterest (PINS) received a pair of downgrades after what Monness Crespi described as “uninspiring” Q3 results, a “muted” Q4 outlook, and an “unsettling” conference call

2. WALL STREET CALLS:

• Yum! Brands (YUM) upgraded to Outperform at Evercore ISI after Pizza Hut plans
• Citi double upgraded IPG Photonics (IPGP) to Buy as the firm sees the company’s business recovery in Q3 continuing
• Trex Company (TREX) was downgraded by no less than five firms, including being cut to Underperform from Buy at BofA
• Tractor Supply (TSCO) upgraded to Outperform from In Line at Evercore ISI
• Gordon Haskett downgraded Burlington Stores (BURL) to Hold

3. AROUND THE WEB:

• Australia is broadening its social media ban for under-16s to include Reddit (RDDT) and Kick, which join Facebook (META), Instagram, Threads, Snapchat (SNAP), TikTok, X, and YouTube (GOOGL), ABC reports
• Netflix (NFLX) has recently sent dozens of requests to agents with the hopes of signing on more video podcasters, The Hollywood Reporter says
• XPeng (XPEV) plans to launch three self-developed robotaxi models next year, primarily in China, using in-house chips and software, WSJ reports
• Carl Icahn’s Icahn Enterprises (IEP) disclosed a large stake in Monro (MNRO) and is also in talks to join the board of another company, WSJ says
• The UPS (UPS) plane that crashed in Louisville, Kentucky, on Tuesday killed at least seven and injured several others, WSJ reports

4. MOVERS:

• Babcock & Wilcox (BW) increases after entering an agreement with Applied Digital (APLD) for a $1.5B project and selling its Allen-Sherman-Hoff business for $29M
• Kennedy Wilson (KW) gains after receiving a $10.25 per share buyout proposal from CEO McMorrow and Fairfax Financial
• Rigel Pharmaceuticals (RIGL) and Teradata (TDC) higher after reporting quarterly results
• Biohaven (BHVN) falls after receiving a complete response letter from the FDA over issues with its NDA for Vyglxia
• Wolverine World Wide (WWW) and Soleno Therapeutics (SLNO) lower after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Hudson Pacific (HPP) reported Q3 results, with CEO Victor Coleman commenting, “We delivered another quarter of strong operational execution”
• Centuri (CTRI) reported Q3 results and raised its guidance for FY25
• Sempra Energy (SRE) reported Q3 results, with EPS and revenue beating consensus
• New York Times (NYT) reported Q3 results, with CEO Meredith Levien commenting, “Q3 was another great quarter across the board”
• Frontdoor (FTDR) reported Q3 results and raised its guidance for FY25

INDEXES:

Near midday, the Dow was up 0.34%, or 161.40, to 47,246.64, the Nasdaq was up 0.92%, or 214.97, to 23,563.61, and the S&P 500 was up 0.65%, or 44.24, to 6,815.79.