Mid-Morning Look

Monday, September 08, 2025

New day, and more record highs for the Nasdaq Composite as technology strength continues to lead this broad market-based rally. The market is now pricing in a 100% probability of a Fed rate cut on September 17^th following last week’s weaker monthly jobs report. Still, later this week, PPI and CPI inflation readings will be key indicators about the potential of greater/more aggressive rate cuts after the September meeting. Equity futures edged higher overnight with two key developments overseas: Japan’s PM Shigeru Ishiba said he’ll step down and the French government faces a confidence vote. Treasury yields continue falling amid high expectations that the Fed will resume interest rate cutting next week and keep easing afterward as the 10-yr dips -3.7bps to 4.049%, the 30-yr -6bps to 4.712% and the 2-yr yield -2.1bps to 3.486%. Gold miners rally as gold prices extends record run above $3,600 an ounce. The yen weakens against the dollar while Japan’s yield curve steepens following Prime Minister Ishiba’s departure plan. Argentina main stock index down more than 13% at open, after Buenos Aires election. Another day of waiting for CPI, PPI data, ORCL earnings, Apple (AAPL) iPhone event tomorrow and the ECB rate meeting this Thursday (no change expected) ahead of the FOMC next week.

• In Autos/Ride Hailing/Food Delivery: UBER will replace CHTR in the S&P 100; CVNA, KMX shares active as used car prices flat m/m and non-adjusted price in August increased by 1.0% compared to July as per Manheim data; QS shares rose after Volkswagen for the first time unveiled an electric vehicle powered by a solid-state battery; the all-electric test motorbike relies on technology provided by U.S.-based QuantumScape.
• In Packaging: GEF, PKG, SW, IP shares weak initially as OCC prices were down -3% M/M as West Coast sees incremental weakness from export pricing. Wells Fargo noted for the 11th time since June 2024 and 5th time in 2025, OCC prices declined m/m in September. The blended price across the US regions was $57/ton in Sept., down 3% ($2) from August (which had been flat w/ July).
• In Telecom/Cable/Satellite: SATS shares soared after the company agreed to sell spectrum licenses to SpaceX for $17B; agreed to sell the company’s AWS-4 and H-block spectrum licenses. The deal consists of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock valued as of the entry into the definitive agreement. Under the agreement, SpaceX will cover about $2 billion in EchoStar’s cash interest payments through November 2027. Shares of VZ, ATand TMUS all declined following the spectrum sale to SpaceX.

• AVGO +4%; after jumping last Friday on $10B AI Chip order (still didn’t’ take out Friday intraday high though of $356.34).
• BIDU +6%; strength in US listed China stocks early with BABA, NTES, XPEV rising as well.
• HOOD +13%; after being added to the S&P 500 index late Friday
• GOOS +5%; was upgraded to Buy at TDCowen and raised tgt to $18 saying they like the modernization of the product, marketing, and service, inclusive of a new and more culturally relevant creative vision and sees next two quarters to benefit from increased marketing efforts and new product launches.
• PL +32%; shares jumped on earnings results as Q2 revs rose 20% y/y to $73.38M, topping the $65.7M estimate and said it launched 2 high-resolution Pelican satellites, enhancing data capabilities; guided Q3 revs $71M-$74M vs. est. $68.8M and guided FY revs above consensus views as well.
• QS +24%; shares rose after Volkswagen for the first time unveiled an electric vehicle powered by a solid-state battery the all-electric test motorbike relies on technology provided by U.S.-based QuantumScape.
• RAPP +164%; after announcing positive topline results from Phase 2a clinical trial of RAP-219 in patients with focal onset seizures. Patients achieved 77.8% reduction in clinical seizures (p=0.01), with 24% achieving seizure freedom for the 8-week treatment period (p<0.0001). Trial met primary long episode endpoints with high statistical significance, and RAP-219 was generally well tolerated.
• SATS +16%; shares soared after the company agreed to sell spectrum licenses to SpaceX for $17B; agreed to sell the company’s AWS-4 and H-block spectrum licenses. The deal consists of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock valued as of the entry into the definitive agreement

• KGS -3%; said 10M share offering by Frontier TopCo Partnership, L.P. (the “Selling Stockholder”), an affiliate of the funds known as EQT Infrastructure III and EQT Infrastructure IV, at a price to the public of $34.40 per share.
• SBAC -4%; along with weakness in other towers AMT, CCI on the spectrum news with SATS/SpaceX.
• SMMT -19%; shares fell on mixed lung cancer data; presented data from its Phase 3 HARMONi trial of ivonescimab vs. placebo plus chemo, in patient with EGFR+ NSCLC progressed with 3rd gen EGFR-TKI treatment. The study results showed that the drug, ivonescimab, had stronger benefit in patients with non-small cell lung cancer in China, compared with patients in the other two regions.
• VZ -4%; along with weakness in other Telco’s TMUS and AT following the $17B spectrum sale from SATS to SpaceX; shares of ASTS in satellite/broadband also declined in reaction; towers CCI, SBAC, AMT again falling on the spectrum headlines (group was hit after AT&T/SATS spectrum deal 2-weeks ago).
• WIX -2%; shares fell after announcing a private offering of $750 mln 0% 5-yr convertible bonds and said it intends to use proceeds for general purposes, including fund share repurchases under its existing buyback program and to acquire complementary businesses, products, services or technologies.