CognitMarket market news, portfolio research, and investor insights

Democrats securing control of both chambers of the U.S. Congress in the midterm elections is triggering significant market shifts [1] [2] [3].

• Market Reaction: European shares jumped, and U.S. stock futures turned positive after initial declines [1] [3]. Treasury yields fell as investors sought safety [4].
• Sector Winners: Renewables stocks rallied sharply, and U.S. health insurers and hospital operators advanced [3].
• Sector Losers: European defense stocks with U.S. exposure, like Chemring (-2.5%), fell on prospects of heightened scrutiny over defense budgets [1] [5] [3]. AI-related shares and data center buildout stocks are under pressure due to fears of increased regulation and slowdowns [2] [3] [4]. Tesla and SpaceX also saw declines [3].

Tesla is under fire in South Korea as an advocacy group plans to file a complaint with the KFTC, alleging the company misled tens of thousands of customers about its Full Self-Driving (FSD) software [1].

Key points:

• FSD cannot be legally used in most China-manufactured Teslas sold in South Korea, despite customers paying 9.043 million won ($6,726) for the feature [1].
• Tesla has sold over 170,000 Shanghai-produced vehicles in South Korea since 2023, with FSD certification for these models only recently initiated [1].
• The KFTC is already probing Tesla's advertising practices [1].

This could lead to regulatory action and impact Tesla's sales and reputation in the region.

Ardelyx (ARDX) shares surged 9.57% in after-hours trading following its Q3 2026 earnings report. The biotech company reported a 19% year-over-year revenue increase and a narrowed net loss, moving closer to profitability. While product revenue of $125.5 million slightly missed the $129.22 million forecast, investors focused on strong demand for IBSRELA and reaffirmed full-year guidance. The company ended the quarter with $285.3 million in cash, indicating strong financial health as it scales operations [1].

Advanced Micro Devices (AMD) reports Q3 earnings today after market close. The setup mirrors Intel's recent report, where a beat on EPS ($0.52 vs $0.40 est.) and in-line revenue ($16.50B) was overshadowed by weak Q4 guidance, causing INTC to drop over 31% [1].

Key points for AMD:

• Consensus: Q3 EPS of $1.94 on $13.06B revenue [1].
• Stock performance: Down 22.6% over one month, 26% below 52-week high [1].
• History: AMD has consistently beaten EPS estimates, but stock reaction varies widely, suggesting guidance will be critical [1].

Investors will be closely watching AMD's outlook for Q4 and beyond, especially given the recent negative reaction to Intel's guidance.

GNG Electronics (GNG) reported a robust Q2 FY27, with revenue surging 42% and gross margins expanding significantly. Management raised its full-year FY27 revenue growth outlook to 40% from 30%, citing broad-based growth in India and international markets [1].

Key Highlights:

• Revenue: INR 624.8 crores, up 42% YoY.
• Net Profit Margin: ~9%.
• Laptops: 78-80% of product mix, average selling price up to INR 31,000.
• Stock: Up 4.18% following the announcement [1].

The revised guidance signals strong operational momentum and potential for continued outperformance.

Backblaze (BLZE) stock is up 34.3% pre-market after reporting a significant Q3 2026 earnings and revenue beat. The cloud storage provider exceeded EPS consensus by $0.04 and revenue forecasts by over 13% [1].

Key highlights:

• Raised FY26 Revenue Guidance: New range of $177.8M-$178.2M, above analyst models [1].
• Accelerated B2 Cloud Storage Growth: Revenue up 47% YoY, B2 ARR reached $127M (+53% YoY) [1].
• AI Infrastructure Demand: Signed four new deals >$500K ARR, including three with AI builders; CoreWeave partnership ramping [1].

The strong results, coupled with an AI infrastructure narrative, triggered a significant short-covering and sentiment reversal [1].

Brookfield is targeting a massive £20 billion ($26.8 billion) AI data center in the UK, with an initial £2.5 billion investment in phase 1. The project, in partnership with Drax Group, aims for over 1 gigawatt of capacity. Drax Group shares surged 8.8% on the news [1].

This significant investment highlights:

• Growing AI Infrastructure Demand: Continued capital deployment into large-scale AI compute facilities.
• UK's AI Ambition: A push to develop domestic AI infrastructure amid high energy costs and grid connection challenges.
• Sector Impact: Potential boost for AI-related infrastructure and energy sectors.

The Texas gubernatorial race is tightening, with the Democratic candidate gaining ground on a platform that includes an immediate moratorium on AI data center development. This election is being watched as a bellwether for a broader political backlash against data centers [1].

Key points:

• Democratic candidate Hinojosa's odds have jumped from 8% to 40% [1].
• She advocates for a data center moratorium until guardrails are in place [1].
• Incumbent Gov. Abbott, who previously touted $40B Google AI investment in TX, has already halted new data center permits [1].

This signals growing regulatory risk and potential operational headwinds for the AI infrastructure sector, particularly in key development states.

Global equities are rallying, reversing Friday's tech rout, fueled by positive US manufacturing data and a sharp decline in oil prices.

• US Manufacturing PMI rose to 55.5 in October, exceeding expectations of 54.5, signaling solid domestic demand [1].
• Brent Crude fell 6.5% to ~$106 amid Iranian negotiation developments [1].
• Major Indices are up: Nasdaq +1.2%, S&P 500 +1%, MSCI World +0.5%, Europe's STOXX 600 +0.3% [1].

Investors are also looking ahead to key central bank decisions (Fed, ECB), Apple earnings, and US midterm elections this week [1].

Alibaba (BABA) stock surged 5.7% today after Apple selected its Qwen AI model for Apple Intelligence in the Chinese market. This marks Apple's first integration of a local AI company's models into its core system-level AI for a major geography [1].

• Catalyst: Apple Intelligence will feature Qwen-powered capabilities for developer beta testing starting Nov 4, with a full consumer rollout in December [1].
• Analyst Support: Citi reaffirmed its Buy rating with a $193 price target, seeing the integration as an accelerant for Qwen adoption and demand on Alibaba's cloud infrastructure. Morgan Stanley also holds an Overweight rating, citing Alibaba Cloud's accelerating AI revenue [1].
• Market Impact: The deal is a significant win for Alibaba's Cloud Intelligence Group, bolstering its position as China's leading AI cloud provider with over 35% market share [1].