Price Action
Semiconductor and AI stocks suffered steep losses on November 5 as election-related uncertainty, weaker earnings outlooks, and concerns about data-center spending intensified. The Nasdaq entered correction territory while chip valuations fell sharply.
Earnings
ConocoPhillips reported stronger third-quarter earnings as higher oil and gas prices offset lower production. The company also raised its dividend by 11%, while maintaining its annual spending outlook amid volatile energy markets.
Earnings
CAVA and Dutch Bros shares tumbled after quarterly earnings raised concerns about slowing customer traffic, operating costs and future margins. Both chains continue expanding, but investors are questioning whether growth can sustain profitability.
Earnings
Expedia shares fell 12% despite strong third-quarter earnings and higher annual guidance. Slower fourth-quarter bookings, softer revenue growth and margin pressure raised questions about the durability of travel demand.
Macro
Democrats’ sweeping midterm victory sent stocks sharply higher Wednesday, but the rally exposed major sector divisions. Big Tech, clean energy and healthcare gained, while AI infrastructure, defense contractors and Elon Musk-linked companies faced selling pressure.
Earnings
McDonald's shares rose more than 5% after mixed third-quarter earnings. Improving traffic trends, renewed value promotions, and specialty beverages supported optimism despite weaker U.S. sales and a costly restaurant modernization plan.
Earnings
AMD reported record third-quarter revenue as AI data center sales nearly doubled and management raised its 2027 growth outlook. Strong server demand contrasts with weaker PC sales, rising memory costs, and investor concerns about AI infrastructure spending.
Earnings
Fabrinet reported record quarterly revenue as AI data center demand accelerated, lifting shares nearly 15%. Stronger guidance and expanding optical manufacturing capacity signal continued growth, although higher investment spending pressures cash flow.
Earnings
Pfizer raised its 2026 earnings and revenue forecasts after stronger-than-expected third-quarter results. Growth in oncology and newer medicines helped offset declining COVID-19 sales, while investors remained focused on the company's longer-term pipeline.
Business Trends
Disney is reportedly considering thousands of layoffs and operating cost reductions of up to 20% in selected areas. CEO Josh D’Amaro aims to redirect savings toward streaming, entertainment, technology, and theme parks ahead of November earnings.
Sector
Marriott raised its 2026 outlook as strong travel demand, higher room rates, and franchise fees supported earnings. Hyatt's results reinforced hospitality-sector resilience, although regional disruptions and development challenges remain.
Economy
U.S. housing sales are weakening as mortgage rates reach 7.4%, but home prices remain resilient. Economists point to homeowner equity, limited selling pressure, and regional differences as the market adjusts.