Mid-Morning Look: November 05, 2026

Mid-Morning Look

Thursday, November 05, 2026

How quickly things changed from overnight as U.S. futures were positive for the Dow and modestly higher for the S&P coming into the day with modest losses in the Nasdaq overnight amid continued weakness in the semi space (SOX) as data center/AI slowing fears hit the industry. However, as markets opened this morning, it was a quick race for the gates in broader tech as another round of mixed earnings results in the tech space (QCOM, ARM, HUBS), coupled with the impact of the midterm elections, led to a sharp decline on the open as software, semis and other tech related AI sectors tumble dragging broader markets with it. Philadelphia Se Semiconductor index (SOX) tumbles 8.7% to lowest since April 20 around 9,400. Economic data today was positive on improved productivity and lower jobless claims, but the tech wreck is dominating all of this mornings action thus far.

Consumer staples (XLP), financials (XLF), and healthcare (XLV) sectors are doing well again, as all three sectors hit all-time highs on Wednesday. The same can’t be said for tech, and artificial-intelligence names in particular as the Nasdaq is giving back a chunk of Wednesday’s gains as the weakness in semiconductors (SOX), Ai data center names along with industrial related “picks and shovel” names overpowers the big jump in hyperscalers yesterday (AMZN, META, GOOGL, MSFT). Both Apple (AAPL) and Microsoft (MSFT) hit record highs yesterday, helping the QQQ’s which recently fell to correction territory (down -10% off recent ATH). The decline is heavily linked to the political pressure on data centers following the Democrat sweep, especially in Texas where 25% of data center growth is. In tech overnight, QCOM adds to the pressure on the semiconductor sector after warnings its chip margins were getting squeezed, while ARM also falls in results. Software has also been hit with HUBS the latest guidance warning hitting the sector.

• Weekly Jobless Claims fell to 189,000 from 195,000 prior week and matched the lowest level of claims in 57-years, and below consensus 196,000; the 4-week moving average fell to 194,750 from 197,000 prior week (previous 196,750); continued claims climbed to 1.718M Oct 24 week (con. 1.710M) from 1.695M prior week (prev 1.701M).
• Challenger, Gray & Christmas reports that layoff plans in October fell to the lowest level since 2023 as companies turned their attention to retaining existing employees and adding seasonal help ahead of the holidays. US employers announced 43,994 job cuts in October, up slightly from September but down 71% from a year earlier.

• Semiconductors sector: a brutal day across chips as QCOM falls along with ARM after earnings and dragging down other semi leads AMD, INTC, MU, SNDK, NVDA next tier tech lower post earnings last night, dragging the VanEck Semiconductor ETF (SMH) further below its 200-day moving average of $521 for the first such break since May 2025; Qualcomm’s FQ1 guide pushed out its gross-margin recovery, Micron suspended a $4.5B Taiwan memory plant over a labor dispute per Bloomberg, and Nvidia (NVDA) falls 5.0% after Bloomberg reported ~600,000 advanced AI chips are sitting in Hong Kong awaiting Chinese import approval.
• Restaurant sector: CAVA shares fell as delivered comp sales of +3.1% (below est. +3.3%), ~flat traffic, and adj. EBITDA of $42M (below ests $44M) as Q3 trends were pressured from food safety concerns (~150 bps impact) and macro (higher gas prices); BROS shares fell as Q3 results were generally in line with expectations, including system wide SSS of +4.4%, but revised 2026 guidance—which pointed to the low end of prior SSS guidance, and EBITDA below the prior range—and concerns of moderating traffic weighed on shares; PZZA and SHAK also reported quarterly results; WEN said it had rejected a $1.4B take-private offer from activist investor Nelson Peltz’s Trian Fund Management and its partners (Trian and related parties own a 16.3% stake).

• FUN +15%; reported Q3 adjusted EBITDA of $493.2M vs. $485.1M est. and revenue of $1.170B vs. $1.158B est., while launching a comprehensive review of ride safety across its portfolio following the Georgia incident and lowering 2026 capex guidance to $350M-$375M.
• JOBY +5%; raised its FY26 revenue guidance to $135M-140M (from prior $115M-125M), after reporting Q3 revenue of $55.1M, beating our estimate/Visible Alpha consensus of $36.7M/$40.0M, driven mostly by Blade Air Mobility revenue.
• SEZL +23%; shares surge after better earnings results and raises FY26 revenue growth forecast to 42.5% from prior 35% while guides FY adj EPS of $5.45-$5.50 from $5.25 seen earlier
• SONY +8%; raised its full-year earnings forecast after reporting a 44% increase in second-quarter net profit; Game & Network Services division reported an 83% jump in operating profit to 220.1B Yen; Pictures operating profit surged to 92.6B Yen from 13.9B Yen; raised its full-year operating profit forecast by 150B Yen to 1.87 trillion Yen and its net profit outlook by 120B Yen.
• TM +8%; as raised its annual outlook and set out a plan to return up to $89B to shareholders; reported a 34% rise in July-September Income; is now projecting a 3.57 trillion Yen profit for the full fiscal year through March 2027, up from an earlier forecast for 3.25 trillion Yen
• TPR +13%; Q1 revenue rose 11%, beating analyst expectations on better EPS while raised FY27 EPS view $8.25-$8.35 from $7.80-$7.90 (est.) and raises FY27 revenue outlook to $8.5-$8.6B from $8.4-$8.5B prior; said Coach revenue rose 16%, driven by increased handbag sales.

• EXPE -12%; reported strong Q3 results with gross bookings coming in 4% above consensus and EBITDA coming in 9% ahead of consensus, although moderating travel demand and higher investments weighed on its 4Q outlook which weighed on shares.
• FIG -12%; shares fell as continues to report Stellar top-line growth of +42.8% Y/y, though the Q3 beat magnitude of 4.7% was slightly lighter as the benefits from pricing and Figma Make Ai credit monetization wane, while gross margins miss.
• HUBS -2%; shares fall after results beat but guidance was weak as the company effectively guided Q4 CC growth down to 12% from 14% previously and said now expects NRR to decline 2 pts Y/y in 2026 to ~101%, and NNARR will be down for the full year.
• MELI 14%; shares fell as the company delivered strong GMV and TPV growth exceeding 30% and 50% once again in 3Q. However, OI margin compressed Q/Q by 40bps due to incremental investments in logistics and marketing, despite nice leverage in R&D.
• TRIP -20%; announces management departures and transition plan as Matt Goldberg to depart as President, CEO, and board member, while Q3 revenue falls 11% to $436.4M, below est. of $458.4M on EPS miss ($0.37 misses est. of $0.44).
• VCYT -54%; after Q3 revenue and EPS beat consensus but management lowered 2026 revenue guidance on slower Decipher volume growth and issued preliminary 2027 guidance well below consensus; Leerink downgraded to Market Perform with a $35 tgt.
• ZG -7%; Q3 rev rose 7% y/y to $724M, missing the $754M consensus citing “one of the toughest housing markets in a generation”, while adj Ebitda of $182M missed $193.7M estimate and said traffic to its apps and sites fell -3% to 215M average monthly unique users.