Midday Fly By: Netflix, TI reports weigh on markets

Stocks were lower in morning trading as investors navigated a busy earnings season, with Netflix’s weaker-than-expected profit weighing on sentiment. Attention will now turn to Tesla (TSLA), whose report after today’s close will kick off earnings season for the “Magnificent Seven” group. Meanwhile, the prolonged U.S. government shutdown continues to cloud data visibility, limiting clarity for the Federal Reserve and markets alike.

Inflation is creeping back into the spotlight as markets digest analysis suggesting the U.S. economy may now be operating in a “higher-inflation regime,” which could complicate the Fed’s expected path of rate cuts.

On the commodities front, gold and silver have pulled back from recent highs, underscoring how quickly sentiment can shift when yields and risk-assets wobble.

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

1. STOCK NEWS:

• Netflix (NFLX) shares fell after the streaming giant missed Wall Street’s Q3 earnings estimate because of an unexpected expense from a Brazilian tax dispute
• Texas Instruments (TXN) declined after the chipmaker’s Q4 profit and revenue outlook disappointed
• AT&T (T) reported Q3 results and added more wireless subscribers than expected in the quarter
• DraftKings (DKNG) advanced after announcing the acquisition of Railbird Technologies and confirming the upcoming launch of DraftKings Predictions
• Alkermes (ALKS) announced a deal to acquire commercial-stage biopharmaceutical company Avadel Pharmaceuticals (AVDL) for up to $20.00 per share in cash

2. WALL STREET CALLS:

• Vicor (VICR) upgraded to Buy at Craig-Hallum and Needham
• JPMorgan downgraded HP Inc. (HPQ) to Neutral from Overweight
• Morgan Stanley upgraded Hyatt (H) to Overweight from Equal Weight
• KeyBanc downgraded Global Payments (GPN) to Sector Weight
• Guggenheim downgraded Nextracker (NXT) to Neutral

3. AROUND THE WEB:

• Siemens (SIEGY) and digital assets market maker B2C2 have started using JPMorgan’s (JPM) blockchain-based platform for foreign exchange payments, Bloomberg says
• Apple (AAPL) is slashing production orders for the iPhone Air, but increasing orders for other iPhone 17 models amid strong overall sales of the lineup, Nikkei Asia says
• Novo Nordisk’s (NVO) largest shareholder is taking control of the drugmaker’s board, with plans to revive sales growth of Wegovy in US market through mass-market channels, Reuters reports
• CoreWeave (CRWV) has no plans to increase its $9B offer for Core Scientific (CORZ) after proxy advisor Glass Lewis released a report saying that shareholders should reject the bid, Bloomberg reports
• Charter Communications (CHTR) is slashing 1,200 staff, or just over 1% of its total headcount, WSJ reports

4. MOVERS:

• Barclays (BCS) increases in New York after reporting Q3 results and announcing a GBP 500M share buyback program
• Krispy Kreme (DNUT) gains after becoming the focus of “meme” traders
• Pegasystems (PEGA) and Winnebago (WGO) higher after reporting quarterly results
• Datavault (DVLT) lower after entering a non-binding LOI with Wellgistics (WGRX) for PharmacyChain plans
• Aveanna (AVAH) falls after announcing a 10M share offering

5. EARNINGS/GUIDANCE:

• Mattel (MAT) reported Q3 results, with EPS and revenue missing consensus
• Intuitive Surgical (ISRG) reported Q3 results and raised its guidance for FY25
• UniFirst (UNF) reported Q4 results, with CEO Steven Sintros commenting, “We closed the year with a solid fourth quarter”
• Prog Holdings (PRG) reported Q3 results and raised its guidance for FY25
• Amphenol (APH) reported Q3 results, with CEO R. Adam Norwitt commenting, “We are pleased to have closed the third quarter of 2025 with record sales and adjusted diluted EPS”

INDEXES: 

Near midday, the Dow was down 0.28%, or 131.90, to 46,792.84, the Nasdaq was down 0.78%, or 179.66, to 22,774.00, and the S&P 500 was down 0.34%, or 22.71, to 6,712.64.