Fiscal Frankenstein

House Republicans bill to fund Israel by cutting IRS budget, Treasury to borrow $776B in final three months of the year, White House unveils wice-ranging action to mitigate AI risks, middle-class rattled by inflation fight, GM and UAW reach agreement ending strike...

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Market Briefing
October 31, 2023

🎃 Good Morning and Happy Halloween.

The Fast Five → House Republicans bill to fund Israel by cutting IRS budget, Treasury to borrow $776B in final three months of the year, middle-class rattled by Fed’s inflation fight, White House unveils wide-ranging action to mitigate AI risks, and GM and UAW reach agreement ending strike…

Here’s your 5-minute briefing for Tuesday:

BEFORE THE OPEN

As of market close 10/30/2023.

MARKETS:

  • U.S. stock futures flat after relief rally.

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

  • Dow jumps roughly 1.6%, Nasdaq adds about 1.2%.

  • Major averages set to end October in the red.

  • 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.

  • Israel War Latest:

    • Hamas says it fires on Israeli forces pressing ground assault (more)

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

  • Treasury market braces for seismic SEC rule (more)

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

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

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

  • Education Department penalizes Mohela for error that made 800,000 student loan borrowers delinquent (more)

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

  • New York Times tech workers to strike over return-to-office rules, contract delays (more)

  • The sales pitch for an 8% mortgage: Buy now, refinance later—for free (more)

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

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

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

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

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

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

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

  • Kim Kardashian’s Skims becomes the official underwear partner of NBA (more)

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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 (more)

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

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

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

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

  • Funnel Leasing, a Renter Management Software platform provider, completed a $32M Series B-2 financing round (more)

  • Triplebar, a provider of a multi-product, multi-vertical, product design engine, raised $20M in funding (more)

  • Ambient.ai, a computer vision intelligence (CVI) company, raised a $20M strategic growth investment from Allegion Ventures (more)

  • zeroRISC, a provider of a commercial cloud security service, raised $5M in Seed funding (more)

  • Clearblow, an AI healthcare tech startup, raised a Seed funding of undisclosed amount (more)

  • hiline Services, a provider of provider of financial operations-as-a-service, received an investment from Red Iron Group (more)

  • Seahawk Media, a WordPress services provider, received an investment from WPBeginner Growth Fund (more)

  • Urbix, Inc., a developer of graphite processing technology, received a strategic investment from funds managed by Appian Capital (more)

M & A:

  • Healthpeak merges with Physicians Realty Trust (more)

  • NFP acquires Resolute Insurance Services (more)

  • MidOcean-Backed Coyes acquires Rotomaster (more)

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

  • Trilantic-backed OLS buys Apache Store (more)

  • aborie Medical Technologies, a diagnostic and therapeutic medical technology company, acquired Urotronic, a private medical device company that developed drug-coated balloon technology used in interventional urology (more)

  • Clariant, a sustainability-focused specialty chemical company, acquired Lucas Meyer Cosmetics, a provider of ingredients for the cosmetics and personal care industry, from International Flavors & Fragrances (IFF), for $810M (more)

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CRYPTO

  • Here are the key takeaways from SBF’s third day on witness stand (more)

  • Bitcoin’s big moves are being magnified by a protracted lack of liquidity (more)

  • Tokenized U.S. Treasury market grows nearly 600% to $698M as Crypto's RWA race intensifies (more)

BULLISH BITES

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

🕵🏻‍♂️. A peek inside secretive startup Humane before the grand unveiling of its first product, the screenless, wearable Ai Pin.

📺 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

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