Speculators Are Heading for the Exits, Should You?[Stocks](https://moneymorning.com/category/article/stocks/) # Speculators Are Heading for the Exits, Should You?  by Chris Johnson  November 6, 2025  Share it: ## What’s Driving Stocks This Morning **What’s Driving Stocks This Morning** The market is in data overload mode. Nearly a hundred earnings reports have dropped since last night, with mixed results from growth heavyweights - Qualcomm, DoorDash, Robinhood, AppLovin, and Snap. While many of the earnings reports topped EPS expectations, reactions are muted as valuation anxiety takes center stage. The NASDAQ is showing resilience, powered by NVIDIA and Alphabet — both up premarket. Alphabet’s move follows reports it will deepen its stake in **Anthropic** and launch its next-gen AI chip, _Ironwood_, in weeks. NVIDIA continues to attract inflows simply because it’s NVIDIA, the anchor for AI enthusiasm as investors look past near-term noise. Bond yields slipped after Challenger data showed **October job cuts hit their highest since 2003**, adding to soft-landing skepticism. Combined with the Bank of England’s split 5-4 vote to hold rates, global traders are interpreting this morning as “policy relief ahead.” **Key Drivers:** - AI optimism keeps NASDAQ futures green despite earnings fatigue. - Job-cut data fuels bond rally, easing yields. - FAA curbs flight capacity by 10% amid shutdown — aviation names in focus. - U.K. policymakers signal potential rate cut in December. ## Stocks on the Move (Pre-Market) **Stocks on the Move (Pre-Market)** - **Snap (SNAP)** $8.68 +18.9% — Strong Q3 beat and partnership with Perplexity boosts AI integration narrative. - **DoorDash (DASH)** $204.99 –13.9% — EPS miss and heavy reinvestment plans for 2026 spark sell-off. - **l.f. Beauty (ELF)** $91.48 –22.4% — Guided FY26 below consensus, triggering sharp valuation reset. - **Lyft (LYFT)** $21.40 +7.5% — Bookings up 16%, upbeat Q4 guidance points to continued recovery. - **Fortinet (FTNT)** $77.30 –10.1% — Solid quarter overshadowed by decelerating growth; investors trimming positions. - **Figma (FIG)** $45.96 +4.4% — Beat and raised revenue guidance, one of few growth names bucking the earnings gloom. - **Joby Aviation (JOBY)** $7.89 +2.9% — Revenue beat offsets wider loss; long-term electric air taxi story intact. - **Arm Holdings (ARM)** $165.11 +3.1% — EPS and revenue beat with bullish guidance; chip sector tailwind continues. ## 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 - **Biogen (BIIB) – Stifel upgrades to _Buy_, tgt $202.** - **GXO Logistics (GXO) – Deutsche Bank to _Buy_, tgt $64.** - **LegalZoom (LZ) – William Blair upgrades to _Outperform_.** - **PSEG (PEG) – Jefferies lifts to _Buy_, tgt $90.** - **RBC Bearings (RBC) – BofA raises to _Buy_, tgt $500.** - **Champion Homes (SKY) – RBC upgrades to _Outperform_, tgt $91.** #### Downgrades - **Duolingo (DUOL) – KeyBanc cuts to _Sector Weight_ after 24% drop.** - **e.l.f. Beauty (ELF) – Piper Sandler downgrades to _Neutral_, tgt $100.** - **Bumble (BMBL) – RBC cuts to _Sector Perform_, tgt $5.** - **Southern Co. (SO) – Goldman downgrades to _Neutral_, tgt $98.** - **Zimmer Biomet (ZBH) – JPMorgan lowers to _Neutral_, tgt $100.** ## Today’s Bottom Line – This morning’s market tone is _stabilization amid saturation._ The AI narrative continues to act as ballast for the Nasdaq, even as investors wade through mixed results from nearly every corner of the growth spectrum. With job-cut headlines signaling labor cooling, the path toward a December Fed pivot remains open, but don’t mistake a brief bounce for renewed momentum. Technically, the S&P 500 remains range-bound between 5,040 support and 5,240 resistance, while the Nasdaq 100’s 20-day moving average is flattening. This is signaling consolidation, not a pending rally. A clean breakout above those levels will require leadership rotation away from crowded AI trades and into broader cyclicals. Until then, expect more churn than charge as investors balance year-end rally hopes with valuation reality. Breadth confirms the stress under the surface. The S&P 500 has now seen roughly 60% of its constituents slip below their 50-day moving averages, putting the _Percent Above 50-Day_ indicator at a critical inflection point. That loss of internal momentum tells you this market is running on fumes from a handful of mega-cap names. At the same time, higher-volatility industries like Quantum, Nuclear, and AI Services - the very sectors that have led the market all year - are breaking down fastest. As I always say, speculative money drives the directional moves, and right now, those speculators are heading for the exits. Until we see stabilization in these high-beta sectors, rallies will be short-lived and dominated by defensive rotations rather than real buying conviction.  **Beat the market, without relying on brokers or biased institutions.** Email(Required) Company This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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