Palantir Triggers Market Sell-Off; Goldman Sachs, Dave Inc. Also In Focus

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0:25Good afternoon, everyone, and welcome to Stock Market Today. It is Tuesday, November 4th, 2025. On today's show, we're going to take a look at a sell-off on the NASDAQ today. And I have to say, after the close yesterday, Palantir's numbers and guidance looked pretty good, But tech stocks under a lot of pressure, hurt by that Palantir sell-off. So we'll get to all that in just a little minute, just a bit. Small caps also lagged today. But let me bring on my colleague and news editor, Ed Carson, who's got three stocks to watch. Hello, Ed. Hello. And one of those stocks is Palantir. I also want to take a look at Goldman Sachs and Dave Inc.

1:05Palantir, Goldman Sachs and Dave. Okay, let's get right to it here. and start by taking a look at a chart of the NASDAQ composite. We mentioned the NASDAQ was under a lot of pressure today, closed just below its 10-day moving average here. This chart is a little bit delayed. NASDAQ is showing a closing loss of just over 2%. Let's take a look at the S &P 500. Selling wasn't as intense in the S &P 500, but still down 1.2%. Small caps took a hit. Let's take a look at IWM. The small cap tracking ETF was down 1.7 % today or so. I'm showing the Russell 2000 index still settling out here down 1.8%. And then the Dow Jones Industrial Average, just check in there.

2:05Saw some money flowing into some safe haven blue chip stocks today. So the Dow Jones held up relatively well here, holding support at the 21-day line, only down about a half a percent. So today, Ed, this was a day of indexes testing key support levels, whether it's the 10-day or the 21-day line. And after the selling, we can say the uptrends are still intact. But, you know, tough day for some AI stocks as a result of Palantir's earnings. Yeah, and there's a lot of weakness all around. I mean, really. And it's just been tough. I mean, there were some recent buys, some which are now significantly below their buy points, some that are getting close to their buy points.

2:48So recent buys are still tricky. That tricky October has carried over into November, you know, for active investors, even though the uptrend is still intact. In addition to Palantir, which we'll look at and talk about, the CEOs of Morgan Stanley and Goldman Sachs both warned about the possibility of a significant market pullback. I think there seems to be a broader – Wall Street seems to be getting concerned about valuations, whether or not you or I should be concerned. If they're concerned, that can have an impact on the market. So, yeah, I mean, it's just been tricky. We'll have to see. The major indexes still look okay.

3:23The breadth looks terrible. Yeah. That's been a continued issue. So it's just a tricky market right now. We don't want to see further losses, especially on things like the S &P 500 or the small caps. Yeah. Well, let's just take a look at the S &P 500 because here is just a test of that 21-day moving average. And you can see the index came down to that 21-day line in this area here and eventually was able to find support. But this 21-day line is a key support level, not only for the S &P 500, but for the NASDAQ as well. So we'll see if support holds there. IWM is a slightly different case here, Ed.

4:06This is a close below the 50-day moving average. We don't consider small caps to be a leading index. We much prefer to look at the NASDAQ composite and S &P 500, but still kind of disconcerting action here with a close below the 50-day line. Yeah. I mean, I think this is generally, again, a sign of breadth. And it does feel like, and we're going to look at other measures that just show that we've been relying on some stocks, including Palantir, including Tesla, including NVIDIA. And some of those are holding up. And some of them have done very well. But it does seem somewhat concentrated and more so here.

4:43Yeah. Well, I was looking at NYSE breadth just before we went on air. And it was about 2 to 1, maybe a little over 2 to 1 negative on the NYSE. But we can see the equal-weighted S &P, equal-weighted ETF, RSP, gave up its 50-day moving average last week. It extended losses today. And then the NASDAQ 100, equal-weighted ETF, QQEW. That is still pretty strong here. looks poised for a test of its 50-day moving average. So even though we're seeing weakness in large-cap stocks, it is encouraging at least to see QQEW holding above a key support level here. Yeah, it is. But it's also now getting toward the 50-day line.

5:31I mean, it doesn't have much give. It's sort of like there's not much cushion left. Before, it was like, okay, you're far away. I mean, again, obviously one good day and we're right toward record highs. But it would only take a modest down day on QQEW. So it's one of those areas, OK, OK, but you don't want it to get worse, you know, at that. I mean, I think it's sort of how that's how I'm looking at it. Yeah, yeah, yeah. Well, we appreciate it. Tesla under some pressure today. This is a top top holding of the Cathie Wood ETF, ARKK. Tesla came down right at its 21 day moving average, ARKK. Again, Tesla, a number one holding here.

6:12This is a key test as well for ARKK. Yeah, and it depends on which measures. And again, other measures, other growth stock things will look different. But that also shows you, it depends on which stocks you own. I mean, you and I can have the same investing style, but depending on what we bought, we could have very different outcomes in the last few weeks. In addition to Tesla, it's not just Tesla. there's like Shopify is a huge holding of, of, uh, ARK, you know, and again, that's a quality name that tumbled on earnings. Palantir top five, top five name, which we'll look at again, obviously, uh, you know, um, you know, uh, AMD is a top 10 holding and that's been a great holding for obviously for ARK.

6:54Uh, I don't know if that had that one reports after the close, but I don't think we've gotten yet. And Tempest, which is reported after the close and that's another top 10 names. So it's just like, you know, you can see some movement. So it's not, I mean, not all the ups and downs of, of ARK are due to Tesla. It's just, I mean, but there's some growth names and I will say a lot of speculative names were really under pressure even beyond. And these aren't necessarily the super speculative ones, but some really speculative names were hard hit today. Yeah. When your data is trusted, your decisions are clear.

7:25Orkiva unifies finance, risk, and sustainability so you can lead with clarity. Give your team's confidence, control, and a competitive edge. Go to workiva.com slash WSJ to learn more. Well, let's go back to Palantir because this is a stock that definitely moved the market. The after hours reaction yesterday was initially positive. It was up three or four percent at least. And then it started to pair gains in the after-hour session. And it looks like it closed just off lows here and held at a key level. So I wouldn't call it a broken stock, Ed, but under some pressure today, but it could have been a lot worse.

8:05But I think one of the things is this was a great report, as far as I could tell. I mean, obviously, you can always do better, but the profit easily beat, more than doubled, second straight quarter of acceleration. Sales growth beat again. And, I mean, it accelerated again. And it's been, I don't know, seven, eight quarters. I'm not sure, but just over and over and over again. They guided up. I mean, it was a strong report. So to have it come down like this, it's sort of like, well, if Palantir is getting hit, you know, well, what chance to the, you know, that says something about for other stocks.

8:37But again, all it did is come back to its buy point. All it did is come down to the 21-day line. It is by no means broken. Yeah, this is, I think, a key point today because you look at a lot of stocks out there, they look like Palantir. Yeah, they were down sharply, but there were a lot of leading stocks that held support where they should have. So on a day where the NASDAQ was down 2%, we saw very little sell signals among leading stocks. So at least we can hang our hat on that. All right, let's move on and take a look at Goldman Sachs. GS. It was a Goldman CEO and JP Morgan, Jamie Dimon, did you say?

9:17Both of those CEOs were talking about it. It was Morgan Stanley and Goldman Sachs. They were at a Hong Kong conference and they both warned, so I think that came out pretty early, that they were just nervous about things. And yeah. So you have Goldman Sachs. Goldman Sachs outperformed today, closed in the bottom half of its range, but holding above some key support levels here and setting up in a base. There's a lot of big banks that are doing pretty well right now. So, you know, pick your poison. You can take a look at them. But this one has, you know, pretty solid earnings growth that's picked up the last couple of quarters.

9:52It's not going to be, I mean, you look at on the left-hand side, it's going to 20 % this year, 14 % next year. It's not going to, you know, especially after the run it's already had since April. You know, it's probably only so much you can grow. But still, this can be a solid performer. I think it gets above the 800 level, you know, kind of thing. The short-term highs there, you could see an entry there. And again, there's a lot of banks. So if you're looking to definitely look through the group or ETFs for some of the big banks, Leaderboard has, what is it, KWB? I always get that wrong. KB, yeah, no, KBWB, KBWB.

10:30And so that one has been doing reasonable. Not quite as well, but you could just say, you know, it's definitely, there's different ways of looking at, of going at it. But I think investors should definitely be looking at, you know, the financials in some of these areas that are holding up pretty well. Yeah, the top 10 holdings of KBWB is just about every stock in the every, you know, mega cap in the money center group. So you've got Goldman and, you know, JP Morgan. You've got Wells Fargo, Bank of America. So interesting seeing the financials are still fighting a good fight here. So I would say even, you know, you can see Goldman Sachs has been getting some early resistance over the past, looks, four days ago.

11:12It tried to poke over the 800 level right here, tried to do it again today. So getting some early resistance, but still in a good technical setup. And it wouldn't take much at all for Goldman to break out of its downtrend. Now, here's a stock that's got really exceptional fundamentals. And this was another really, really solid quarter for Dave. They operate a very popular financial management app. And you can see here, I mean, you look at the earnings and the revenue in recent quarters. This is Q3 revenue right here, earnings up 181%, revenue up 63%. Kind of a volatile reaction by the stock today.

12:00Yeah, and I just think that investors should be careful about stocks like this. I mean, you look at that pattern, it was volatile. This is a volatile stock, and especially when the market's a little volatile, and it started off strong. I think if you go intraday, this looked like, oh, wow, Dave was just not going to listen to the market sell-off. I mean, the market was tumbling at the open, but that surge only lasted a few minutes. And then it tumbled, but then it came back, and then it fell back again. I mean, it was such a wild day. And believe me, the fundamentals look great, and the stock was holding up.

12:33It would just be nice to tighten up. It just doesn't seem like, especially in this kind of market, it just doesn't seem like the kind of stock that you – where's your edge? And you can look at just on the weekly. There are huge weekly losses just in the last few months. And so it just doesn't seem like the kind of environment. Again, market straightens out, takes off. Could this one go on another big run? Sure. And it's not, you know, I know we don't talk about valuations much, but this isn't like a super rich valuation stock, you know, that says that it needs years to catch up. It's a good point.

13:05I'm very, very surprised to see that selling at 20 times trailing earnings. I was shocked to see that, too, after that massive run it's had. But, you know, I mean, this might be a situation, maybe it breaks out and then forms a tight little base. And that's the place where it's safer to buy. Because here, again, I got nothing against the fundamentals. There's been a lot of strength in this stock. It could take off 15 % tomorrow. I don't know, but I don't know which way it'll go 15 % tomorrow. It may go up. It may have a range of 15 % tomorrow. And no one who knows where it ends up. So I just think that investors should be careful about these kind of stocks right now.

13:42Everybody has their own poison. Everybody has their own style. So but that's that's sort of how my feeling is. I think we're clearly clearly getting getting signs that some profit taking has started. I mean, it didn't start today. Profit taking has started to hit some leading growth stocks for a little while now. So plan some some defense here and, you know, not not not putting the foot on the accelerator, especially after a day like today makes a lot of sense. But I like your point about just the very volatile action. You know, when we're doing technical analysis on a stock, we look at a weekly chart like this and call this wide and loose price action.

14:18So wide and loose price action is characterized by erratic weekly swings where you've got an intraday high and an intraday low that are very far apart, just up and down, back and forth, volatile action. And it really makes a base flawed. I mean, as opposed to a base where, you know, you see much, much tighter orderly trade. Those, frankly, just tend to work better. So, you know, wide and loose can work, but it's also quite volatile. Now, Ed, in after hours, I know there's a bunch of top-rated growth stocks set to report earnings this week. What are you looking at in after hours? Yeah, a lot of, first off, five AI stocks that are doing pretty well.

15:03AMD, DeepFuse, not by a lot. So maybe people wanted more after such an enormous October. It's down a little bit for now, but we'll see how that goes. Not down tremendously. Estera Labs, strong earnings. And again, just a quick note on. Oh, yeah. I just wanted to make a quick note on AMD, too. Just, again, you have the NASDAQ getting crushed today, down a little more than 2%. But again, AMD is a big market leader, came down to the 10-day moving average, closed a little bit below it. But here as a stock, still in a very strong uptrend. So we have to pay attention to the leaders as well. And a lot of big leaders look like this, testing the 10-day, testing the 21-day line.

15:44So I just wanted to point that out. So after AMD, what did you have, Ed? Let's take a look at Estera Labs. I think the earnings doubled. This is one of the ones that got really hard hit a couple months ago. So maybe it can punch above the 50-day line. I don't know if it can get there. And the 20-day level, strong guidance. So we'll see. Arista Networks, that is not going well. That one, I beat views. I didn't see anything wrong per se. Now, maybe I'm missing something. But this one's really selling off. I mean, it does. Supermicro, yeah, SMCI, they had sort of guided low and this and that. But even though they guided low, I'm not sure how much analysts changed it, but they missed those estimates.

16:29And they gave some mixed guidance for the next quarter. So this one, which already tumbled below the 50-day line, obviously clearly a different look than AMD. You know, it never really made that move. It was already breaking down. Lumentum, BeatFuse, and LITE has crushed guidance, really strong guidance. So this is another one. Or, you know, optical components and devices. And that's going in with AI players. So that's looking great. And then a couple more. This is one of the worst performing industry groups today. The telecom fiber optics is one of the worst performing groups in the market today.

17:07So I'm just going to see if I can pull up an industry group chart here. I may or may not be able to do it, but it was the group itself was down more than 3 % today. But again, Lumentum holding above that 21 day line, making a nice move in after hours. Sorry to interrupt you there. What else do you got after? No, no, no, that's a good point. Yeah, Kratos, KTOS, Drone Maker. This has been doing very well. It was hovering around some support. At least initially, it's down pretty sharply. Going to go below the 21-day line, maybe go below the 50-day line, but we'll see if that can hold. Tempest AI, TEM, this is like healthcare AI diagnostics.

17:50You know, it had fallen just below the 50-day line, but you could have certainly seen like a strong move. You could say, oh, that's actionable. Well, that doesn't seem to be the case right now. And one more is Mercury Systems, another aerospace defense name, MRCY. That had been holding around 21-day line support. This one is getting a bump. And so that one potentially, you know, you could see that breaking a trend line, breaking about short-term highs. Again, we'll see how things go. But a lot of big movers, you know, after hours. And we'll see if they can hold up or hold down. But I just want to make sure people saw those.

18:27And, of course, there's dozens of others. Yeah, yeah. No, but it's, like I said, we made it through a very big week last week with a lot of your magnificent seven large cap tech earnings. But this week and next week, still a lot of top-rated growth stocks set to report. So let me stop my share here and I'll bring Ed back on. Ed, thanks for all that color. We appreciate it. So right now, you know, it's too early to say that the market is headed into a little intermediate term correction here. We're still holding above support levels. But you want to pay attention when you see selling, you know, crop up like it did today on the NASDAQ and you see that weak reaction to earnings by Palantir.

19:09You just want to maybe just take it a little slower with growth stocks and don't be afraid to sit in a little bit of cash here and see how this selling works itself out. Sound like a plan? It sounds like a plan. I think it's like a basketball player. You want to be leaning to left or right. You want to do one of those drills where you're sort of like, you know, ready to go either direction. And I think that's definitely the kind of market that right now that we're in. All right. Very good. Well, I appreciate it. Thanks. Thanks again. That'll do it for today. Ed and I will be back here tomorrow, Wednesday, for another Stock Market Today video.

19:45We'll see how the NASDAQ responds after the selling today. I didn't mention the good news is even though breadth was 3-1 on the NASDAQ and about 2-1 on the NYSE, we did look like we got lower volume on both exchanges. So it kind of felt like a day of distribution on the NASDAQ, But volume might have just come in a little bit lighter than Monday. So we'll take it. That'll do it for today. We'll see you back here after the close tomorrow for another video. Have a great afternoon, everyone. Thank you.

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