Alibaba, Oracle among Thursday’s market cap stock movers

Earnings season marches on, and we’re here to spotlight the companies slated to unveil their financial results in the next trading session. Leading the charge are retail giant Walmart, sportswear powerhouse Nike, and semiconductor manufacturer Micron Technology, among others. These reports will offer valuable insights into consumer spending trends, the athletic apparel market, and the state of the chip industry.

Earnings Before the Open:

• Walmart Inc (WMT): EPS estimate $1.52, revenue estimate $158.76B

• Nike Inc (NKE): EPS estimate $0.78, revenue estimate $12.29B

• Micron Technology Inc (MU): EPS estimate $-1.18, revenue estimate $4.01B

• CarMax Inc (KMX): EPS estimate $0.79, revenue estimate $7.54B

• Darden Restaurants Inc (DRI): EPS estimate $1.73, revenue estimate $2.71B

Earnings After the Close:

• Carnival Corp (CCL): EPS estimate $0.75, revenue estimate $6.85B

• Cintas Corp (CTAS): EPS estimate $3.67, revenue estimate $2.34B

• Paychex Inc (PAYX): EPS estimate $1.12, revenue estimate $1.29B

• Vail Resorts Inc (MTN): EPS estimate $-3.01, revenue estimate $269.45M

• Progress Software Corp (PRGS): EPS estimate $1.00, revenue estimate $175.79M

Stay tuned for daily updates and in-depth analysis of the earnings season, and track real-time results here and here. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- As investors position their portfolios for the final quarter of the year, HSBC analysts have identified several compelling opportunities across different sectors.

Their latest research highlights companies with strong fundamentals, growth potential, and attractive valuations that could outperform in the coming months. Here are the top 5:

1. 3M (MMM)

HSBC maintains a Buy rating on 3M with a target price of $175.00, representing potential upside from the current price of $155.93. Analysts expect continued improvement in organic growth and margins driven by operational efficiency initiatives and innovation.

The company’s exposure to short-cycle manufacturing recovery in the US could benefit from the beginning rate easing cycle. With a 2026 P/E of 18x, representing a 14% discount to peers, 3M offers rerating potential. Catalysts include accelerating organic growth, margin improvements, and a potential resolution to PFAS litigation.

In recent developments, 3M is reportedly exploring the sale of certain industrial assets as part of a strategic review. The company also announced a secondary offering of 8.8 million shares of its former healthcare unit, Solventum Corp.

2. Broadcom (AVGO)

With a Buy rating and $400.00 target price against the current $335.49, HSBC sees Broadcom as a major beneficiary of ASIC market expansion. The firm expects Broadcom’s CoWoS capacity allocation to increase 81% year-over-year by FY26, supporting strong growth in ASIC revenue.

While consensus estimates align with HSBC’s projection of $30 billion in FY26 ASIC revenue, their bull case scenario suggests potential for $38.5 billion. Analysts believe the ASIC ramp-up will begin in Q1 FY26, potentially providing upside surprise to current expectations.

Several analyst firms, including KeyBanc and Mizuho, have reiterated positive ratings on Broadcom, citing strong demand in artificial intelligence. Mizuho noted a significant deal for "AI Racks" with a customer believed to be OpenAI.

3. Booking Holdings (BKNG)

HSBC rates Booking Holdings a Buy with a substantial target price of $7,218.00 versus the current $5,419.87. The company’s diversified portfolio across travel segments and broad geographical footprint (87% of employees outside the US) provides multiple growth drivers and mitigates regional volatility.

Strong relationships with independent properties and growing direct customer engagement (mid-60% excluding B2B) reduce reliance on costly acquisition channels. HSBC expects EBITDA margins to expand from 35.0% in 2024 to 37.8% by 2027, with high cash conversion averaging 95% from 2025-2027.

Booking Holdings has expanded its offerings by making Southwest Airlines flights available for booking on its platforms, including Priceline and Booking.com. Additionally, Erste Group upgraded its rating on the company’s stock to Buy from Hold.

4. Hershey Co (HSY)

With a Buy rating and $211.00 target price compared to the current $195.18, HSBC views Hershey as their preferred name in Packaged Foods. Despite recent challenges from high cocoa prices, the company has demonstrated pricing power and maintained market share even after 26 consecutive quarters of price increases.

With cocoa prices declining approximately 45% from their December 2024 peak and the inclusion of cocoa in government tariff exemptions, HSBC sees potential for earnings momentum ahead.

The Hershey Company reported second-quarter 2025 earnings and revenue that surpassed analyst expectations. Following the results, Goldman Sachs upgraded its rating on the company to Buy from Sell.

5. Johnson & Johnson (JNJ)

HSBC maintains a Buy rating on Johnson & Johnson with a target price of $210.00 versus the current $188.16. The company’s strong pipeline execution has improved medium-term growth visibility, with three new blockbuster drugs (IMAAVY, Inlexzo, and likely Icotrokinra) expected to add 1.2% to company growth.

The upcoming OTTAVA robotic surgery program, with filing targeted for early 2025, represents additional upside not fully reflected in market estimates. Analysts believe current guidance looks conservative despite the Q2 raise.

More recently, Johnson & Johnson was ordered by a jury to pay $966 million in a baby powder-related case. On the clinical front, the company announced positive 48-week data for its ulcerative colitis treatment TREMFYA and promising Phase 2b results for its investigational drug icotrokinra.

Other names on HSBC’s list of the top stock ideas heading into the quarter included Meta Platforms, On Holding, Oracle, US Bancorp and United Airlines.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com - The S&P 500 gave up gains Thursday, after hitting fresh all-time highs as tech took breather from its recent melt-up and investors digested comments from Federal Reserve officials on the interest rate outlook and the start of corporate earnings season. 

At 12:59 p.m. ET (16:59 GMT), the benchmark S&P 500  fell or 0.5%, the tech-laden Nasdaq Composite fell 0.4%, and the blue-chip Dow Jones Industrial Average fell 253 points, or 0.5%.

Markets were also pouring through minutes from the Federal Reserve’s latest policy gathering and assessing ongoing euphoria around artificial intelligence that has powered a rally in stocks over much of 2025.

Meanwhile, little progress has also appeared in breaking an ongoing stalemate in Washington that caused a now more than week old shutdown of the federal government -- possibly threatening to delay the release of more economic data in the days ahead.

Fed’s Williams supports more rate cuts this year

Risks posed by a cooling labor market could give the Fed more space to drawdown borrowing costs again this year, according to New York Fed President John Williams.

But, speaking to the New York Times, Williams added that slowing employment does not necessarily signal an imminent recession in the U.S. economy.

"My own view is that yes, we would have lower rates this year, but we’ll have to see exactly what that means," Williams told the NYT.

"The risk that inflation got well above 2% and we didn’t bring it back down would be very damaging to the economy and to our credibility. But we need to do it in a way that does our best to minimize the risk of the labor market cooling more sharply."

Other Fed members are scheduled to speak today, although analysts have said the lack of new economic data means that their comments are unlikely to alter the narrative around rates. Chair Jerome Powell offered welcoming remarks at a conference, but did not explicitly mention interest rates. 

Markets did have the opportunity to parse through minutes from the Federal Open Market Committee’s September meeting, when the central bank opted to slash interest rates by 25 basis points and suggested that more reductions could be coming by the end of the year.

The minutes indicated that the committee was divided over the path of rates, with much of the debate centering around a slowing labor market and sticky inflationary pressures. Theoretically, a rate cut helps to spur on investment and hiring, albeit at the risk of reigniting price growth.

Most officials "judged that it likely would be appropriate the ease policy further over the remainder" of 2025, although the exact timing and scope of the cuts remained a source of uncertainty, the minutes showed.

In a note, analysts at Capital Economics said the minutes confirmed that most FOMC participants backed bringing down rates to a more "neutral setting," or a level that neither aids nor hinders the wider economy, due to persistent "downside risks" to the employment picture.

"Nonetheless, with ’a majority of participants’ still emphasising the ’upside risks to their outlooks for inflation,’ we remain comfortable with our view that the FOMC will proceed at a slower pace than market pricing suggests," the analysts said.

Following the publication of the minutes, bets that the Fed will slash rates by a further 25 basis points at its upcoming meeting this month were intact.

Pepsi, Delta highlight quiet earnings calendar

On the earnings front, PepsiCo reported third-quarter revenue and profit that surpassed market expectations thanks to strong demand for healthier sodas and energy drink options in the United States.

In a statement, CEO Ramon Laguarta said the drinks and food maker has been working to introduce new products that better meet dietary preferences of U.S. shoppers, and is aiming to overhaul its packaging operations to cater to price-conscious consumers.

The update comes as activist investor Elliott Investment Management, which announced a $4 billion stake in the company in September, has suggested that Pepsi ditch brands like Quaker Oats and even spin off its bottling network in a bid to slash costs and bolster margins.

Meanwhile, Delta Air Lines said it had averted any significant damage from the shuttering of the U.S. government, even as worries have grown around a batch of flight delays after the furlough of some federal workers.

Speaking to the Financial Times, CEO Ed Bastian said the carrier had experienced no "material impact" from the shutdown, adding that pressure from the impasse in Washington is not likely to reach the levels seen during the last closure in 2018-2019.

Delta, which also posted all-time high operating revenue buoyed by demand from premium customers and lifted its annual guidance, surged by over 4%.

Ferrari NV (NYSE:RACE), meanwhile, fell sharply after scaling back its electrification targets. The sports carmaker said for 20% of its sports car to be fully electric in 2030, well below its prior target of 40%. 

Oracle Corporation (NYSE:ORCL), meanwhile, shrugged off the malaise in tech, rising 3% after Baird started coverage of the stock at outperform with a $365 price target, forecasting another 22% of gains ahead from current prices.

Gold’s record-setting rally takes a breather

Gold prices fell slightly as a ceasefire between Hamas and Israel curbed some safe-haven demand, although the yellow metal still remained close to recent record highs.

Bullion, which has been on a torrid run that has seen its price rip above $4,000 per ounce for the first time, remained underpinned by concerns over Japanese fiscal health, the ongoing U.S. government shutdown, and a political crisis in France. Comments from the Fed minutes which broadly kept wagers on more rate cuts in play gave further support to gold.

Spot gold fell 0.2% to $4,035.49 an ounce, while gold futures for December fell 0.4% to $4,055.50/oz by 09:43 ET.

(Scott Kanowsky contributed to this report.)