Mid-Morning Look: October 20, 2026

Mid-Morning Look

Tuesday, October 20, 2026

U.S. stocks opened lower, but have rallied since the open. After a brief reprieve on Monday from days of aggressive selling, tech (XLK, QQQ, SMH) it was back in the red this morning on several concerns, but has since rallied to turn positive, while the Smallcap Russell 200 rises over 1% and the S&P 500 jumps from overnight losses. Reuters reported Monday afternoon that OpenAI is accelerating fundraising plans (~$30B at a ~$1.4T valuation) as the company races to take in cash before the Anthropic IPO; 2) the South Korean Kospi index fell around -3.5%, dragging down key tech names (Samsung, SK Hynix) after data center firm Elice came public and the stock proceeded to tumble >30%, the latest red flag when it comes to AI companies and their ability to raise money. Also, 3) ABB, a data center-linked industrial in Europe, had results out this morning and despite blow-out orders (up 40%), the stock is getting hit. The results of Elice is weighing on US data centers as debt fears remain for names like CRWV, in addition to the political pushback of data center infrastruture build/moratoriums (hurting NBIS, IREN, HUT, others). Chip stocks (SOX, SMH) finally snapped their nine-day losing streak on Monday (longest in 20 years), opened lower but have since bounced. Earnings are also set to play a big part in today’s trading as shares of MMM, GE, GM, SYF, HAS all reported this morning with UAL, NFLX, SPCX out tonight. Oil advanced initially, with Brent reaching a five-month high, as traders priced in a geopolitical risk premium from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf…but have since reversed lower. The November contract for US West Texas Intermediate crude, which expires on Tuesday, rose as high as $110, the highest since April. Housing data today abysmal for Housing Starts and Pending Home Sales given rise in rates/yields. Healthcare (XLV) hits all-time highs, along with strong gains in defensive Utilities, REITs and Staples.

• Building permits for September edged down 0.2% M/M to SAAR of 1.400M in September, exceeding the 1.387M consensus, from 1.403M prior (revised from 1.394M). Single-family authorizations were at a 845,000 rate, 4.0% below the revised August figure of 880,000.
• U.S. Pending Home Sales Index: -7.3% M/M to 66.0 vs. 0.0% consensus and +0.3% prior, according to data released by the National Association of Realtors on Tuesday.

• Furniture retailers: ARHS was upgraded to Overweight from Neutral at Piper in Furniture retailers; raising Q3 comp / sales estimates and Piper’s PTs for ARHS, W, and WSM, given Q3 survey results and an industry backdrop supportive of accelerating share gains for all three. Piper’s Q3 Furniture Retailer survey showed an acceleration in demand trends vs Q2 as written demand for Q3 was +6.4% mean and +6.0% median – an improvement from Q2. Demand trends were strongest in September (+DD%), +MSD% in July, but were pressured in August (-LSD%).
• Animal health sector: Jefferies downgraded shares of both ELAN (tgt to $24 from $31) and ZTS (tgt to $83 from $103) to Hold from Buy citing the company’s softer pricing environment for the downgrade. It estimates price made up 64% of Zoetis’ earnings growth between 2022-25 and without this driver, lower volumes constrain profit growth. For ELAN, says volume, not price, has driven Elanco’s growth transformation, and trends are holding in 2026.
• Financial service sector: EFX reported Q3 revs +10% y/y in-line with consensus and adj EPS topping while lowers 2026 full-year revenue guidance midpoint to $6.661B due to weak U.S. mortgage market and expects 2026 adj EPS of $8.50, down $0.04 at midpoint from prior guidance. Equifax says US mortgage market weakness intensified as 30-year fixed rates rose around 75bps since July, creating a USD 20mln September revenue headwind versus its framework. MSCI rises on results as EPS $5.11 tops est. $5.02 and revs up 12% y/y, driven by higher asset-based fees and recurring subscription revenues, though Operating expenses rose due to increased IT, professional fees.

• BRZE +51%; as CRM agreed to acquire BRZE for about $5.66B as Braze Class A shareholders will receive $47.50 in cash per share, under the terms of the agreement. The deal is expected to close in Salesforce’s fiscal year 2028, subject to approval by Braze shareholders and regulators.
• HAL +4%; posted Q3 profit that topped estimates, helped by higher demand for its oilfield equipment in Latin America which rose +12.6% y/y to $1.1B; overall Q3 EPS of $0.60 topped the $0.58 consensus.
• HAS +5%; Q3 revs $1.6B top consensus $1.48B; raised annual revenue forecast to grow in the range of 7% to 9% on constant currency basis, compared with its prior forecast a 5% to 7% rise.
• MYGN +35%; after saying it will sell its prenatal health testing business to LH for $210 million in cash, plus the value of the inventory; MYGN says the transaction is expected to be accretive to Myriad’s revenue growth and profitability, while strengthening the balance sheet.

• CRSP -3%; announced CFO Raju Prasad, Ph.D., will be stepping down from the Company to pursue external opportunities, and A.J. Silver, the Company’s Senior Vice President of Finance, will succeed Dr. Prasad as Chief Financial Officer.
• ELAN -4%; Jefferies downgraded shares of both ELAN (tgt to $24 from $31) and ZTS (tgt to $83 from $103) to Hold from Buy citing the company’s softer pricing environment for the downgrade.
• GE 4%; Q3 adj EPS $2.25 vs est. $2.01 and Q3 revs $13.29B vs est. $12.87B; Q3 orders $19.0B; guides FY26 adj EPS $8.00-$8.10 (above prior forecast $7.65-$7.85) and vs est. $7.92 and FY26 rev growth of about 19-20% vs. consensus view $50.42B.
• GM -5%; shares fell after results as Q3 adj EPS $3.70 tops consensus $3.63 and revs $50B above est. $48.76B; sees 2026 adjusted EBIT in the range of $14.5B-$15.5B, narrowed from previous guidance of $14B-$16B; guides FY EPS $12.75-$13.75 vs. est. $13.41 (missing midpoint)
• SMR -3%; downgraded to Underweight from Equal Weight at Barclays saying commercial delays and contract uncertainty increase the company’s execution risk