Key market trends to watch Thursday, November 12th

Jensen Huang has stepped down as CEO of Nvidia, effective immediately. The move follows reports of a widening scandal involving a personal relationship and a board meeting to discuss his future. Colette Kress has been named interim CEO. The company’s stock is currently down over 10% in premarket trading.

Stock futures are experiencing downward pressure, largely attributed to the Nvidia situation. Rising oil prices, spurred by President Donald Trump’s comments regarding Iran, and a higher 10-year Treasury yield are also contributing factors.

Ahead of the official announcement, Nvidia received downgrades from several firms including Bernstein, Oppenheimer, KeyBanc, William Blair, Evercore ISI, and Melius Research. Ben Reitzes of Melius Research expressed surprise at the need to downgrade the stock. William Blair simultaneously upgraded Advanced Micro Devices (AMD) to a buy rating, citing challenges at Intel and a potential leadership vacuum at Nvidia.

Neocloud Nebius shares are down 12% in premarket trading despite exceeding expectations for revenue and adjusted EBITDA in the third quarter. Management anticipates 2026 revenue at the lower end of its guidance range and projects significant capital expenditures for 2027, exceeding analyst estimates.

Eli Lilly’s stock is up over 1.5% after receiving approval from Chinese regulators for its daily obesity pill, marking the first oral GLP-1 medication to enter the Chinese market. This development is seen as a step towards closing the gap with rival Novo Nordisk.

Concerns persist regarding CVS Health, prompting its removal from a watchlist. However, Wells Fargo believes anxieties surrounding the planned pharmacy separation are unwarranted. The stock experienced a decline on November 4th but has since partially recovered, though it remains below its July highs. Wells Fargo analysts have lowered their price target to $112 from $123.

Cybersecurity companies are facing headwinds. Jefferies anticipates Palo Alto Networks will meet sales expectations but doesn’t foresee a substantial guidance increase. CrowdStrike is scheduled to report earnings on December 1st.

Wolfe Research downgraded 3M to hold from buy, citing that current stock levels already reflect the company’s potential. CEO Bill Brown has been credited with revitalizing the conglomerate, and a recent settlement regarding “forever chemicals” is considered a positive development. The stock has risen 18% this year.

Teva Pharmaceutical is receiving positive attention following its R&D Day. Piper Sandler increased its price target to $56 from $44, maintaining a buy rating, as the company expands its focus on innovative medicines, particularly in neurology. CEO Richard Francis recently appeared on “Mad Money.”