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Disney has again jacked up ticket prices for the busiest days at its California parks. Now Disney adults pining for a meet-'n'-greet with Max Goof may have to fork over $200. Call it the priciest place on earth. Stocks notched fresh records on Friday with the S&P 500 crossing 5,800 for the first time. Bank stocks rallied after JPMorgan Chase and Wells Fargo kicked off Q3 earnings szn with expectation-beating #s. 🎃 Nightmare before quizmas: Nothin' spookier than failing this week's Snacks Seven quiz. Try to get a 7/7 after nailing the first q: |
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'Tis the season to be profitable… The third-quarter earnings season started Friday with JPMorgan Chase unloading a solid earnings beat. But zooming out, analysts expect slower earnings growth generally after a blockbuster Q2 reporting season, when earnings per share popped 12%. Now, Wall Street estimates that S&P 500 cos will see earnings growth of roughly 4% (though historically most companies have beaten forecasts). |
- Market check-in: This month, the S&P 500 posted its fourth straight quarter of gains (its longest win streak since 2021) and is up 23% for the year.
- Keepin' score on Q4: Stocks cruised to records last week, but October's been rocky as traders weigh many moving pieces.
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Not just earnings… Investors have a lot to chew on this quarter. Among the biggest: |
- Rate cuts: Lower interest rates tend to be good for stocks, and in September the Fed came in hot with a jumbo cut. But after a strong jobs report — and Fed Chair Powell's comments that the bank's in no rush to cut quickly — traders on Friday were betting on a 10% chance of no trim at all next month.
- The economy: A soft landing's looking more likely. Inflation kept cooling last month, and the US added about 100K more jobs than expected, while unemployment fell. Investors appear less worried about the economy, but that seems to be making them anxious that the Fed won't cut rates fast enough.
- US elections: Presidential elections tend to introduce a lot of uncertainty and volatility in markets in the months leading up to the big day. The candidates have different policies on things like corporate taxes, energy, and tariffs, which can influence market moves.
- Middle East turmoil: Escalating conflict between Israel, Iran, and Iran-backed Hezbollah has led to spiking oil prices. Iran controls the Strait of Hormuz, through which 20% of the world's oil passes, and the worst-case scenario for oil markets is a blockage.
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It could be a bumpy quarter… Uncertainty is typical in markets, but it seems as if there are more unknowns than usual in this last stretch of the year, from the tight election race to worsening global conflicts. Some uncertainty in markets isn't necessarily bad, but it can introduce even more volatility: this month the VIX — Wall Street's "fear gauge" — has spiked. |
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Bingeing "Love Is Blind"... until we can binge Netflix's earnings call on Thursday. The stream leader beat estimates in April after ad-tier subscribers grew 34% while its global paid subs topped 277M (FYI: Netflix will stop breaking out sub #s next year as it focuses on revenue). The streamer's password-mooching crackdown and its cheaper ad tier have prompted a wave of sign-ups, and the stock's nearly 2x'd over the past year. The $7/month ad plan had 40M+ subscribers as of May, and Netflix is expected to see more growth from the new revenue stream. |
Cleared to land… United Airlines is set to report Tuesday after a record-breaking summer-travel szn. In Q2 the carrier's profit surged 23% from last year to $1.3B. But a cloudy Q3 forecast has investors jittery. Last week, Delta's third-quarter earnings growth missed estimates after the CrowdStrike-caused outage lost it $380M in sales (the six major airlines were expected to take a $860M hit from the IT debacle). Delta's holiday guidance also disappointed, though it said travelers have leaned into fall vacays to beat the summer heat. |
Look Ma, no hands… Tesla last week rolled out a prototype of a two-seat self-driving car (no steering wheel). Boss Elon Musk said the "Cybercab" will enter production by 2026 and retail for under $30K. After a light-on-details prezy, Tesla shares fell 8% as hype faded and skeptics raised unresolved q's about safety and regulatory approval. The robotaxi road is already competitive: Alphabet's Waymo is doing 100K+ paid driverless trips a week, and GM's Cruise plans to offer autonomous rides on Uber next year. Amazon's been testing its Zoox cars in California and plans to launch in Vegas this year. Got beef… McDonald's, where menu prices are up an average of 40% since 2019, says higher subtotals are the result of meat-packers' greedflation. This month, the home of Happy Meals filed a lawsuit accusing nine US meatpackers (including Tyson, JBS, and Cargill) of colluding to push up beef costs. The meat's price is up 4.2% from last year, far outpacing pork and poultry. Many economists blame shrinking US cattle #s for the surge. As McDonald's beefs with meat-packers in court, it's rolling out a chicken version of its Big Mac. |
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The global remediation industry is forecast to grow from $70 billion this year to $92 billion by 2029, and investors are clamoring to get a piece of it. Read more. |
- TD Bank agreed to pay a record $3B in fines to the DOJ after it became the first US bank to plead guilty to conspiracy to commit money laundering.
- A fresh clue could solve the mystery of who was behind a $7B estate-tax payment made last year — the largest of all time.
- The fragmented world of sports streaming has frustrated fans as the $8B biz of NFL streams forces viewers to switch between platforms.
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- Monday: Indigenous Peoples' Day
- Tuesday: Earnings expected from Walgreens, United Health, Johnson & Johnson, Citigroup, Bank of America, Progressive, Goldman Sachs, PNC Financial Services, Ericsson, Interactive Brokers, and J.B. Hunt
- Wednesday: Earnings expected from United Airlines, ASML, Morgan Stanley, Abbott, U.S. Bancorp, Citizens Financial Group, Synchrony Financial, Alcoa, PPG Industries, Equifax, and Discover
- Thursday: Earnings expected from Blackstone, Netflix, TSM, Travelers, Elevance Health, Infosys, M&T Bank, and Truist Financial
- Friday: Earnings expected from American Express, SLB, Procter & Gamble, and Fifth Third Bancorp
- Sunday: F1 US Grand Prix
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Authors of this Snacks own shares of: Alphabet, Amazon, Delta, Disney, GM, Tesla, and Uber |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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