Midday Fly By: Palantir reports Q3 beat, Starbucks forms China JV

The major averages were broadly lower at midday, reflecting mounting concerns over valuations and unclear central-bank policy.

Heightening the caution is the apparent divergence among Federal Reserve officials and their views on the next interest-rate move. One member urged deeper cuts while another flagged inflation as still too elevated for any rush to ease.

With the U.S. government shutdown continuing to delay key economic indicators like non-farm payrolls and CPI prints, investors are relying more on private data and corporate earnings. This lack of official transparency adds another layer of uncertainty to policy-driven markets.

Looking to commodities, gold prices pulled back again, with the “safe haven” asset dropping to below $4,000. Oil prices were also lower ahead of the API crude numbers set for release Tuesday afternoon.

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

1. STOCK NEWS:

• Palantir (PLTR) reported upbeat Q3 earnings and revenue and provided revenue guidance for Q4 and FY25
• Uber (UBER) reported better-than-expected Q3 results and said it intends to introduce adjusted EPS guidance in Q1
• Pfizer (PFE) provided a “beat and raise” report for Q3 as Metsera (MTSR) received an amended “superior” takeover proposal from Novo Nordisk (NVO)
• Yum! Brands (YUM) reported upbeat Q3 results and initiated a review of strategic options for its Pizza Hut business
• Starbucks (SBUX) plans to form a joint venture with Boyu Capital to operate Starbucks retail in China

2. WALL STREET CALLS:

• BofA downgraded online sports betting market leaders DraftKings (DKNG) and Flutter Entertainment (FLUT) to Neutral
• Jefferies downgraded Caesars (CZR) to Hold from Buy
• Kimberly-Clark (KMB) downgraded to In Line at Evercore ISI after deal to buy Kenvue (KVUE)
• Oppenheimer downgraded Comcast (CMCSA) and Charter (CHTR) to Perform
• H.C. Wainwright upgraded Terns Pharmaceuticals (TERN) on “compelling” TERN-701 data

3. AROUND THE WEB:

• Tesla’s (TSLA) China-made electric vehicle sales declined 9.9% to 61,497 units in October from last year, reversing a 2.8% increase in September, Reuters reports
• Baidu’s (BIDU) Apollo Go robotaxi hit 250,000 weekly ride orders globally as of October 31, CNBC says
• UBS (UBS) Chairman Colm Kelleher has warned about risks in the U.S. insurance industry, citing weak and complex regulations, Bloomberg reports
• Pony AI (PONY) has raised $863M in its Hong Kong listing, with shares priced at HK$139 each, Bloomberg says
• Eli Lilly (LLY) has asked European nations to discard clawback taxes on drug sales, FT says

4. MOVERS:

• Denny’s (DENN) increases after announcing it will be acquired by TriArtisan, Treville, and Yadav for $6.25 per share cash
• Hertz (HTZ) gains after reporting Q3 results, with EPS and revenue beating consensus
• Exact Sciences (EXAS) and Upwork (UPWK) higher after reporting quarterly results
• Sarepta (SRPT) falls after reporting Q3 results and reporting the completion of its confirmatory trial commitment for PMO therapies
• Nuvation Bio (NUVB) and Verastem (VSTM) lower after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Spotify (SPOT) reported Q3 results, with EPS lower year-over-year
• Shopify (SHOP) reported Q3 results, with CFO Jeff Hoffmeister commenting, “Q3 was a standout quarter with revenue growth and free cash flow margins both surpassing our robust Q2 performance”
• Vital Farms (VITL) reported Q3 results and raised its guidance for FY25
• Zoetis (ZTS) reported Q3 results, with EPS beating consensus
• Knife River (KNF) reported Q3 results and narrowed its guidance for FY25

INDEXES:

Near midday, the Dow was down 0.37%, or 173.93, to 47,162.75, the Nasdaq was down 1.44%, or 343.61, to 23,491.12, and the S&P 500 was down 0.85%, or 58.40, to 6,793.57.