Midday Fly By: Nvidia hits $5T market cap, Boeing takes big 777X charge

The major averages were broadly higher again, adding to this week’s sharp gains as optimism around artificial intelligence and interest-rate cuts converges into broad risk-on sentiment. The Federal Reserve is expected to cut rates by 25 basis points later today, a move nearly fully priced into markets. Traders are also hoping for another interest rate cut from the Fed at its December meeting as well.

Mega-cap tech names continue to lead the advance, with Nvidia surpassing a $5 trillion market cap for the first time ever. The broader equity rally is backed by strong earnings and upbeat trade signals, including improved U.S.-Asia relations and easing fears of immediate escalation in export conflicts.

While sentiment is high, the market faces a “data blind spot” created by the continuing U.S. government shutdown, which has delayed key economic releases and left the Fed and investors without full visibility into labor and inflation trends.

Looking to commodities, gold is rebounding following multiple days of sharp losses, with the “safe haven” asset holding above $4,000. Oil is also sharply higher following yesterday’s API crude numbers.

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

1. STOCK NEWS:

• Nvidia (NVDA) became the first company with a $5T market cap
• Boeing (BA) reported mixed Q3 results, with the company saying its Q3 earnings reflects the impact of a $4.9B charge associated with the 777X
• Verizon (VZ) reported upbeat Q3 earnings and reiterated its FY25 outlook
• Caterpillar (CAT) reported better-than-expected Q3 earnings and revenue
• Jamf Holding (JAMF) agreed to be acquired by Francisco Partners for $13.05 per share while CSG Systems (CSGS) agreed to be acquired by NEC Corporation for $80.70 per share in cash

2. WALL STREET CALLS:

• Skyworks (SWKS) upgraded to Overweight at KeyBanc and Piper Sandler following Qorvo (QRVO) merger deal
• Victoria’s Secret (VSCO) upgraded to Buy at UBS
• Kenvue (KVUE) downgraded to Hold at Canaccord amid negative headlines
• Deutsche Bank downgraded UnitedHealth (UNH) to Hold on valuation
• Canaccord initiated Viking Therapeutics (VKTX) at Buy on obesity potential

3. AROUND THE WEB:

• UPS (UPS) is cutting costs by shifting smaller, low-value deliveries to gig drivers using personal vehicles, part of a restructuring that’s eliminated 34,000 jobs and saved $2.2B so far this year, WSJ reports
• Tesla (TSLA) is planning to make fundamental design changes to sell its Cybercab in higher volumes, Bloomberg says
• Uber (UBER) plans to launch driverless rides in the San Francisco Bay Area next year using Lucid (LCID) Gravity SUVs equipped with Nuro’s self-driving technology, putting it in direct competition with Waymo’s (GOOGL) robotaxi service, Bloomberg reports
• Bausch Health (BHC) recently stopped participating in Medicaid and 340B, a federal government drug discount scheme, STAT says
• John Malone plans to step down as chair of Liberty Media (LMCA) and Liberty Global (LBTYA), FT reports

4. MOVERS:

• Flowserve (FLS) and ProPetro (PUMP) gain after reporting quarterly results
• New Gold (NGD) higher in New York after reporting Q3 results and backing its FY25 guidance production outlook
• Seagate (STX) increases after reporting Q1 results and raising its quarterly dividend by 3%
• Stride (LRN) and Varonis (VRNS) fall after reporting quarterly results
• Camping World (CWH) lower after reporting Q3 results and announcing the identification of prior period misstatements

5. EARNINGS/GUIDANCE:

• Avnet (AVT) reported Q1 results and provided guidance for Q2
• MGP Ingredients (MGPI) reported Q3 results and raised its guidance for FY25
• Fortive (FTV) reported Q3 results, with CEO Olumide Soroye commenting, “Fortive delivered solid results in our first quarter as a simpler, more focused company”
• Leonardo DRS (DRS) reported Q3 results and raised its guidance for FY25
• Fiserv (FI) reported Q3 results, with EPS and revenue missing consensus

INDEXES:

Near midday, the Dow was up 0.51%, or 242.62, to 47,948.99, the Nasdaq was up 0.55%, or 129.98, to 23,957.48, and the S&P 500 was up 0.20%, or 13.70, to 6,904.59.