Wall Street Braces for a Tariff Showdown, This is What to Watch[Stocks](https://moneymorning.com/category/article/stocks/) # Wall Street Braces for a Tariff Showdown, This is What to Watch  by Chris Johnson  November 5, 2025  Share it: ## Today’s Top & Bottom Lines – November 5, 2025 | | | | --- | --- | | #### **Pre-Market Price Check** | | **S&P 500 Futures: +0.39%** | **10-Year Yield: 4.112 (+0.011)** | | **Nasdaq 100 Futures: +0.56%** | **WTI Crude: $60.95 (-0.02%)** | | **Dow Jones Futures: +0.34%** | **Gold Futures: $4,029 (+0.81%)** | | **VIX: 18.19 (-3.45%)** | **Bitcoin (BTC): $103,036 (-2.50%)** | ## What’s Driving Stocks This Morning After yesterday’s sharp selloff in growth and mega-cap tech, Wall Street is waking up to a crucial test of the **buy-the-dip mentality**. Palantir’s (PLTR) selloff despite blowout earnings reminded investors that valuation anxiety doesn’t vanish in a single session. AMD now holds the spotlight after beating on earnings and guiding higher, only to trade more than 2% lower on word that Amazon fully exited its AMD position. The **ADP Employment Report** surprised to the upside with a gain of 42,000 private-sector jobs in October versus the 22,000 expected. All job growth came from large employers, while smaller businesses shed workers, showing a bifurcation that muddies the Fed’s next move. Even so, rate-cut odds for December remain steady near 68%, signaling traders aren’t yet shifting policy expectations. Political and policy headlines add to the tension. The Supreme Court hears arguments today on President Trump’s tariff authority, just one day after he signed an executive order lowering China fentanyl tariffs by 10%. Democrats’ internal rift over a possible shutdown deal deepens the gridlock, keeping markets on edge. Meanwhile, earnings remain a mixed bag. Amgen (AMGN) and McDonald’s (MCD) are propping up the Dow with post-earnings gains, while Super Micro (SMCI) and Pinterest (PINS) weigh on tech sentiment. With the Nasdaq still up more than 60% off its April lows, a deeper pullback would be technically healthy—but traders may not like how it feels getting there. **Key Drivers** - ADP jobs gain of 42K vs. 22K expected; small firms shed jobs - AMD beats but drops on Amazon’s 13F exit - Amgen (+2.8%) and McDonald’s (+2.5%) lift the Dow - Supreme Court reviews Trump tariff powers today - Fed cut odds for December steady at 68% despite stronger jobs data - China bans foreign AI chips from state-funded data centers ## Stocks on the Move (Pre-Market) #### Upgrades & Downgrades - **AMD (AMD)** $243.00 –2.7% — Beat on EPS and revenue but falls on Amazon stake exit. - **AMGN (Amgen)** $310.12 +2.8% — Beat by $0.62 on EPS and raised FY revenue guidance. - **MCD (McDonald’s)** $301.50 +2.6% — Missed EPS by $0.11 but comps solid at +3.6%. - **SMCI (Super Micro Computer)** –9% — Missed EPS, guided Q2 light; valuation reset in play. - **TREX (Trex)** –34% — Massive miss and lowered guidance; multiple downgrades overnight. - **PINS (Pinterest)** –17.5% — Missed EPS, in-line revenue; weak engagement outlook. - **IONQ (IonQ)** +1.1% — Modest pre-market bounce after multi-week decline. #### Upgrades - **Welltower (WELL):** Evercore ISI upgrades to _Outperform_, PT $208 - **Yum! Brands (YUM):** Upgraded to _Outperform_, PT $180 - **Qualys (QLYS):** Upgraded to _Neutral_, PT $135 after strong results - **O’Reilly Automotive (ORLY):** _Outperform_ from _Market Perform_, PT $105 - **Boise Cascade (BCC):** _Outperform_ from _Market Perform_, PT $100 #### Downgrades - **Energy Fuels (UUUU):** Cut to _Sell_ from _Neutral_ at Roth, PT $11.50 - **Trex (TREX):** Multiple downgrades to _Hold_ after weak earnings - **Southern Co. (SO):** Downgraded to _Hold_ from _Buy_, PT $103 - **Nintendo (NTDOY):** Downgraded to _Underperform_ at Wolfe Research - **Fiserv (FI):** Downgraded to _Neutral_ at BNP Paribas Exane ## Today’s Bottom Line – The buy-the-dip reflex faces a reality check today. AMD’s post-earnings fade mirrors Palantir’s reversal yesterday, strong fundamentals, weak tape. When leadership stocks stop responding to good news, it’s a sign of exhaustion rather than opportunity. Meanwhile, the ADP report complicates the Fed’s calculus just as the shutdown drags into record territory. Expect choppy trade and defensive flows until a catalyst - likely the ISM Services data or the Supreme Court tariff ruling - resets direction. It’s also notable that the VIX held below 20 on Tuesday, closing just under that critical _Line in the Sand_. That threshold has historically served as a true trigger point for more widespread selling pressure. The fact that it held - combined with lighter overall volume during yesterday’s pullback - suggests investors are keeping cooler heads and holding positions rather than panic-selling. For now, the path of least resistance remains sideways, with stretched valuations and an overbought Nasdaq demanding a cooling period before any year-end rally can resume.  **Beat the market, without relying on brokers or biased institutions.** Email(Required) Comments This field is for validation purposes and should be left unchanged. 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