Stocks Climb as AI Demand Worries Ease on CoreWeave Earnings
The S&P 500 Index ($SPX) (SPY) is up +0.75% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.44%. December E-mini S&P futures (ESZ26) are up +0.80%, and December E-mini Nasdaq futures (NQZ26) are up +1.52%.
US stock indices are mixed today, with chipmakers and AI-infrastructure stocks up sharply, leading the broader market higher after AI cloud computing provider CoreWeave posted strong earnings and raised its annual revenue forecast, easing fears about its debt-laden business. Also, further evidence of strong AI demand came from OpenAI, whose quarterly revenue hit $10 billion for the first time. In addition, stocks are climbing as robust demand for Anthropic’s initial public offering has boosted market sentiment.
On the negative side, weakness in health insurance stocks is weighing on the Dow Jones Industrials, and crude oil prices are up more than +1% after a senior Iranian official ruled out his country giving up enriched uranium, a sign that the US and Iran remain far apart from a peace deal. Market activity may be lighter than normal today, as there is no cash Treasury trading with banks closed for the Veterans Day holiday.
US MBA mortgage applications rose +6.2% in the week ended November 6, with the purchase mortgage sub-index up +7.5% and the refinancing mortgage sub-index up +4.5%. The average 30-year fixed-rate mortgage fell -9 bp to 7.21% from 7.30% in the prior week.
Dec WTI crude oil prices (CLZ26) are up more than +1% today after Iranian Secretary of the Supreme National Security Council member Mohsen Rezaee ruled out his country giving up enriched uranium, a sign that the US and Iran remain far from agreeing to a peace deal. He added that any US attack against Iran would trigger strikes on US military bases and that ending the war on all fronts, including in Lebanon, is a key condition for talks with the US. Iran continues to assault ships going through the Strait of Hormuz, and the US has twice launched limited strikes on Iran's Qeshm Island since early last week. Also, risks to Middle Eastern energy infrastructure persist after Saudi Arabia's East-West pipeline was targeted Monday in the Medina region by Houthi Rebels.
Crude prices tumbled to a 2.5-month low Tuesday on optimism about de-escalation in the war with Iran. Qatar's Foreign Ministry said there have been "positive responses" from the US and Iran to ongoing mediation efforts.
Stocks are supported by the prospect of solid quarterly earnings. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +31% from a year earlier, up from a July estimate of 22%. As of today, 450 of the S&P 500 companies have reported results, with 84% beating estimates.
Overseas stock markets are higher today. The Euro Stoxx 50 rose to a 2-month high and is up +0.68%. China’s Shanghai Composite closed up +0.46%. Japan's Nikkei-225 Stock Average closed up +1.31%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -6 ticks today. There is no trading in the cash Treasury market today, as banks are closed for the Veterans Day holiday. T-note futures are under pressure today from rising crude oil prices, which are boosting inflation expectations. Also, today’s sharp stock rally has reduced safe-haven demand for T-notes. In addition, T-notes are also weighed down by negative carryover from Tuesday, when US Oct CPI rose more than expected, and several Fed members expressed their support for tighter Fed policy.
The markets are now pricing in a 100% chance of a +25 bp rate hike at the FOMC’s next meeting on December 8-9.
European government bond yields are moving lower today. The 10-year German bund yield is down -1.7 bp to 3.303%. The 10-year UK gilt yield is down -2.2 bp to 5.201%.
Italy's September industrial production rose +1.2% m/m, stronger than expectations of +0.7% m/m and the largest increase in 10 months.
The markets are now pricing in a 94% chance of a +25 bp rate hike at the ECB’s next policy meeting on December 17.
US Stock Movers
CoreWeave (CRWV) is up more than +15% to lead AI cloud-computing stocks higher and gainers in the Nasdaq 100 after reporting Q3 revenue of $3.66 billion, stronger than the consensus of $3.56 billion, and raising its full-year revenue forecast to $13.0 billion to $13.3 billion from a previous forecast of $12 billion to $13 billion, above the consensus of $12.86 billion. Also, Nebius Group NV (NBIS) is up more than +12%, and Lumentum Holdings (LITE) is up more than +10%. In addition, Arista Networks (ANET) is up more than +6%, and Applied Digital (APLD) and Oracle (ORCL) are up more than +5%.
Chipmakers and AI-infrastructure stocks are climbing today on signs of strong AI demand after OpenAI posted quarterly revenue above $10 billion for the first time. Sandisk (SNDK) is up more than +11%to lead gainers in the S&P 500, and Seagate Technology Holdings Plc (STX) and Marvell Technology (MRVL) are up more than +6%. Also, Intel (INTC), Micron Technology (MU), and Broadcom (AVGO) are up more than +5%, and ARM Holdings Plc (ARM), Lam Research (LRCX), and Western Digital (WDC) are up more than +4%. In addition, Applied Materials (AMAT) and KLA Corp (KLAC) are up more than +3%, and Nvidia (NVDA) is up more than +2% to lead gainers in the Dow Jones Industrials.
Defensive health insurance stocks are falling today, with the broader market moving higher. The Cigna Group (CI) is down more than -2%, and UnitedHealth Group (UNH) is down more than -1% to lead losers in the Dow Jones Industrials. Also, Elevance Health (ELV), HCA Healthcare (HCA), and United Health Services (UHS) are down more than -1%. In addition, CVS Health Corp (CVS) is down -0.87%.
Corning (GLW) is up more than +5% after Jefferies initiated coverage on the stock with a recommendation of buy and a price target of $134.
Mercury Systems (MRCY) is up more than +5% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 29 cents.
MP Materials (MP) is up more than +3% after Freedom Capital Markets upgraded the stock to buy from hold with a price target of $51.
BrightView Holdings (BV) is down more than -14% after forecasting 2027 revenue of $2.54 billion to $2.72 billion, weaker than the consensus of $2.76 billion.
Hagerty (HGTY) is down more than -4% after founding family holders offered 9 million shares of the company’s stock between $14.85 and $15.55 each, below Tuesday’s closing price of $16.94.
Phreesia (PHR) is down more than -2% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $13.
Earnings Reports (11/11/2026)
Corteva Inc (CTVA), Tetra Tech Inc (TTEK), Vylor Inc (VYLR).
On the date of publication, Rich Asplund did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.