📈 Fiscal Frankenstein

House Republicans bill to fund Israel by cutting IRS budget, Treasury plans to borrow $776 billion in the final three months of the year, middle-class is being rattled by the Federal Reserve's fight against inflation, White House has unveiled a wide-ranging action plan to mitigate the risks associated with AI, and GM and UAW have reached an agreement, effectively ending the strike…

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Smart Owl
October 31, 2023

🎃 Good Morning and Happy Halloween.

The Fast Five → House Republicans bill to fund Israel by cutting IRS budget, Treasury plans to borrow $776 billion in the final three months of the year, middle-class is being rattled by the Federal Reserve's fight against inflation, White House has unveiled a wide-ranging action plan to mitigate the risks associated with AI, and GM and UAW have reached an agreement, effectively ending the strike…

Here’s your 5-minute briefing for Tuesday:

BEFORE THE OPEN

As of market close 10/30/2023.

  • US stocks rallied as traders brace for a series of potential market-moving events this week

  • The biggest events of the week include the Fed’s interest rate decision, Apple’s earnings, and the latest jobs report

  • The Dow led indices with a 1.58% gain

  • S&P 500 climbs out of correction territory, up 1.2%.

  • Fed's next interest rate decision on Wednesday, expected to remain unchanged.

  • October payrolls report expected to show signs of labor market slowdown.

  • Today: earnings results expected from Caterpillar, Pfizer, Caesars Entertainment, and Advanced Micro Devices.

  • Highly anticipated earnings report from Apple on Thursday after the bell.

EARNINGS

  • Today: Advanced Micro Devices (AMD), Caterpillar (CAT), JetBlue Airways (JBLU)

  • Wednesday: Airbnb. (AIR), DuPont (DD)

  • Thursday: Apple (AAPL), DraftKings (DKNG), Palantir Technologies (PLTR), Starbucks (SBUX)

  • Full earnings calendar here

NEWS BRIEFING

The Treasury also announced it expects to borrow $816 billion between January and March. The announcement comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion.

57% of middle-class hurting from borrowing costs, poll finds. More in this group are stressed about economy than a year ago.

  • US House Republicans unveil bill to fund Israel by cutting IRS budget (link)

  • Treasury market braces for seismic SEC rule (link)

  • White House unveils wide-ranging action to mitigate AI risks (link)

  • US second home sales slide in pandemic-era vacation hot spots (link)

  • Biden administration is moving toward a narrower student loan relief targeting groups of borrowers (link)

  • GM reaches tentative agreement with UAW, ending six-week strike (link)

  • Alphabet CEO Sundar Pichai defends Google’s search deals in antitrust trial (link)

  • Apple revamps Mac lineup and pricing with new family of chips (link)

  • Walmart to upgrade 1,400 stores with $9 billion investment (link)

  • Pfizer RSV vaccine lags GSK’s as head-to-head competition underway (link)

  • Shipping industry could lose $10 billion a year battling climate change by 2050 (link)

  • From Adidas to Nike, clothing makers find it hard to break with China’s supply chain (link)

  • Meta introduces ad-free plans for Instagram, Facebook in Europe (link)

DEALFLOW

  • Omnicom (NYSE: OMC), a global marketing and corporate communications company, acquired Flywheel Digital, the digital commerce business of Ascential (LSE: ASCL.L), for a net cash purchase price of approximately $835M (link)

  • Abingworth, a global life sciences investment firm, closed its new Clinical Co-Development Co-Investment Fund, at $356M (link)

  • MapLight Therapeutics, a clinical-stage biopharmaceutical company, raised $225M in Series C funding (link)

  • Seurat Technologies, a 3D metal printing company, raised $99M in Series C funding (link)

  • Oxide Computer Company, a creator of a commercial cloud computer, raised $44M in Series A funding (link)

M & A:

  • Healthpeak merges with Physicians Realty Trust (link)

  • NFP acquires Resolute Insurance Services (link)

  • MidOcean-Backed Coyes acquires Rotomaster (link)

  • Realty Income acquires Spirit Realty Capital for $5.3B (link)

  • Trilantic-backed OLS buys Apache Store (link)

CRYPTO

  • SBF testified that he believed his Alameda Research hedge fund could cover its $8B debt to FTX (link)

  • Crypto exchange-traded products saw their largest weekly inflows in over a year (link)

BULLISH BITES

✈️ Premium-economy seats have become the sweet spot on flights.

📺 Fans of 'The Simpsons' hope this Elon Musk 'prediction' comes true.

🤯 At an all-staff meeting this week, X owner Elon Musk and the company's CEO, Linda Yaccarino, reportedly referenced ambitions to create a news wire service called XWire that would rival Cision’s PR Newswire.

DAILY SHARES