DOJ told a court your money isn't yours

KEY TAKES

• The Dow is leading with DIA +2.87%, a day after Democrats won both the House and the Senate (MT Newswires).
• Big Tech is up and chips are down: Amazon +7.4%, Microsoft +6.6% and Apple +6.4%, while SMH is -2.4% and Micron -5.5%.
• Jeff Brown says a Musk-backed AI startup is growing 23 times faster than Nvidia, and you can claim a pre-IPO stake from $50 (From Brownstone Research)
• Small and mid caps with clean beats are leading the gainers list: Cricut +50.2%, Kyndryl +35.5% and Duolingo +34.9%.

Democrats won 54 Senate seats and 228 House seats in preliminary AP results cited by MT Newswires, and buyers are taking it well. As of 1:25 PM ET, SPY is +1.81%, QQQ +1.40%, DIA +2.87% and IWM +1.48%. Amazon is +7.4% at $269.18, while Microsoft (+6.6%, $555.45) and Apple (+6.4%, $352.96) sit at 52-week highs.

The data center trade is going the other way. Morgan Stanley calls the result incrementally negative for AI sentiment, and Texas governor-elect Gina Hinojosa has proposed halting new data center approvals (MT Newswires). CoreWeave is -10.2%, Micron -5.5% and Nvidia -1.3%. USO is -7.8% after Trump played down Iran strikes (Seeking Alpha).

TODAY'S TOP 5 GAINERS

1 · CRCT +50.2% · $8.97. Cricut earned 13 cents a share against a 5-cent FactSet view, and revenue of $188.6M beat the $172.0M estimate (MT Newswires). Barclays lifted its target to $6 but kept Underweight, and the stock trades well above it.

2 · LYEL +43.6% · $15.47. Lyell posted a 91% response rate and 77% complete responses for ronde-cel in pivotal data headed to ASH 2026, plus an $80M placement at $10.77 (GlobeNewswire). Volume is thin at about 490K shares.

3 · KD +35.5% · $17.53. Kyndryl earned 42 cents adjusted against a 38-cent view and reaffirmed its 2026 revenue outlook (MT Newswires). Revenue still slipped to $3.65B from $3.72B a year ago.

4 · DUOL +34.9% · $172.68. Duolingo's Q3 was mixed, but its Q4 revenue guide of $322M topped the $314.6M consensus (The Fly). Seeking Alpha says active user growth is speeding up.

5 · TREE +31.6% · $37.99. LendingTree earned $2.20 a share on $343.6M of revenue, a beat (Zacks). Truist cut its target to $65, which still sits far above the stock.

Skipped: ANGI +30.2% on a Q3 miss, 300 job cuts and a Google AI search tie-up. A miss with a headline attached is noise until it holds a second day. Leveraged ETFs and ALIT, the midday mover, are out too.

THE SIGNAL

Money is rotating out of the companies that build AI data centers and into the giants that rent the servers out. Amazon, Microsoft and Apple are up 6% to 7% while CoreWeave, Micron and the chip ETF slide on the risk of state limits on new builds. Buyers are betting a divided Washington slows the build-out but leaves Big Tech's profits alone.

Wrong if: SMH wins back its 2.4% loss by Friday while Amazon and Microsoft give back half their gains. That would make today a one-day reaction to the vote.

HEADLINE OF THE DAY

“Data center, chip shares drop but hyperscalers gain as Democrats win Congress”

Seeking Alpha | Nov 4, 10:43 AM ET

It names the whole split in one line. Needham calls the setup for new data center builds hostile, so the companies renting out servers are beating the ones building them.

ONE TO WATCH

QCOM (Qualcomm) reports after today's close, with the call at 4:45 PM ET. Last $168.59, +2.5% as of 1:25 PM ET, after SpaceX picked Qualcomm's Dragonwing gear for Starlink Mobile's 5G network (MT Newswires). Qualcomm leans on phones and PCs, so its guide tests whether today's chip selling is about AI builds or the whole group.

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