Midday Fly By: Target reports mixed Q3, Adobe buying Semrush

The major averages were mixed near noon, with the Dow Jones Industrial average the lone index in the red as tech appears to be rebounding after several days of declines driven by potential fears of an AI bubble. A jump in Alphabet shares leads this rally as traders await the upcoming Nvidia earnings report, which is being viewed as a pivotal moment for the broader AI-driven rally.

Still, the tech sector, especially names linked to AI and semiconductors, continues to face scrutiny. Valuations are under pressure and the recent selloff in the space suggests investors are reassessing how much growth is already priced in. Reports of increasing leverage in tech and an evolving competitive backdrop have raised concern that the “growth story” may be entering a more complex phase.

Looking to commodities, gold was fractionally higher near noon, while oil dropped sharply following Tuesday’s gains.

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

1. STOCK NEWS:

• Target (TGT) reported mixed Q3 results and narrowed downward its FY25 adjusted earnings outlook
• TJX (TJX) provided a “beat and raise” report for Q3
• Lowe’s (LOW) reported mixed Q3 results and narrowed its FY25 adjusted earnings guidance
• Adobe (ADBE) agreed to acquire Semrush (SEMR) for $12 per share
• Viking Holdings (VIK) reported better-than-expected Q3 earnings and revenue

2. WALL STREET CALLS:

• DoorDash (DASH) upgraded to Buy at Jefferies
• Wells downgraded Molson Coors (TAP) with better growth seen at AB InBev (BUD)
• Wells Fargo initiated coverage of AB InBev (BUD) with an Overweight rating
• Baidu (BIDU) upgraded to Buy at Nomura on chip-design potential, capital returns
• Mizuho double downgraded Canadian Solar (CSIQ) to sell after “overdone” rally

3. AROUND THE WEB:

• The U.S. Federal Trade Commission, FTC, granted an early termination of its review of Softbank’s (SFTBY) acquisition of Ampere Computing, Bloomberg says
• Nio (NIO) has started external supply of its Shenji NX9031 chip technology, licensing it to an automotive chip company, CnEVPost reports
• Tesla (TSLA) has filed lawsuits in China against multiple companies that purchased its vehicles, demanding the return of EV purchase subsidies because they failed to meet the minimum requirements for receiving the subsidies, CnEVPost says
• A federal judge has ruled that state attorneys general may seek additional information about the Justice Department’s antitrust settlement with Hewlett Packard Enterprise (HPE) over its acquisition of Juniper Networks (JNPR), Bloomberg reports
• The FDIC has sued Capital One (COF), alleging the bank underreported uninsured deposits by excluding a $56B internal position, resulting in underpayment of roughly $99M toward the special assessment tied to the 2023 Silicon Valley Bank and Signature Bank failures, Reuters says

4. MOVERS:

• MP Materials (MP) increases after partnering with the U.S. Department of War to develop a rare earth refinery in Saudi Arabia
• Nuvation Bio (NUVB) gains after B. Riley initiated coverage with a Buy rating
• Olema Oncology (OLMA) higher after pricing 10M shares at $19 in public offering
• Plug Power (PLUG) lower after announcing a $375M share offering
• Qifu Technology (QFIN) and Wix.com (WIX) declines in New York after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Williams-Sonoma (WSM) reported Q3 results and backed its guidance for FY25, with CEO Laura Alber commenting, “We are proud to deliver strong results in the third quarter”
• Nayax (NYAX) reported Q3 results, with EPS and revenue missing consensus
• Valvoline (VVV) reported Q4 results and provided guidance for FY26
• LuxExperience (LUXE) reported Q1 results and lowered its guidance for FY26
• Global-e Online (GLBE) reported Q3 results, with EPS missing consensus

INDEXES:

Near midday, the Dow was down 0.18%, or 84.64, to 46,007.10, the Nasdaq was up 0.54%, or 120.02, to 22,552.86, and the S&P 500 was up 0.28%, or 18.29, to 6,635.61.