✈️ Boeing’s $25B Lifeline During Turbulence

Good afternoon! Apple just gave the iPad Mini a stealthy upgrade, its first since 2021. Starting at $499, the new Mini is available for pre-order and will be in stores next Wednesday. The big change? It’s packing Apple’s A17 Pro chip, with a 30% faster CPU, 25% faster GPU, and a Neural Engine that’s twice as fast. Plus, it supports the new Apple Pencil Pro and now comes with 128GB of base storage. The design stays the same, but it’s available in new muted purple and blue tones.

The iPad Mini remains a quirky favorite, especially among pilots, even as Apple’s larger iPads get all the love. This upgrade shows Apple’s commitment to AI, with hardware-accelerated ray tracing for better gaming. It may not have the mainstream appeal of its bigger siblings, but for those who value portability with power, the Mini still holds its own.

MARKETS

• The market hit the brakes on Tuesday as a wave of earnings reports brought traders back to reality. Dutch chipmaker ASML sent shockwaves through the tech sector after cautioning that sales could slow next year, triggering a selloff across the industry. The Dow slid 0.75%, while the S&P 500 slipped 0.76% and Nasdaq both dropped close to 1%.

• Energy stocks weren’t spared either, with a sharp drop in oil prices dragging them down. Meanwhile, small caps were the outlier, inching higher as investors looked for value plays ahead of potential interest rate cuts. In a market dominated by losses, small wins stood out.

STOCKS
Winners & Losers

What’s up 📈

• Wolfspeed soared 21.3% after the North Carolina-based chipmaker announced it would receive up to $750 million in U.S. government grants for new factories in North Carolina and New York. An investor group will also provide $750 million in funding for its over $6 billion plan. ($WOLF)

• Walgreens Boots Alliance surged 15.8% after the drugstore chain reported better-than-expected fiscal fourth-quarter earnings and revenue. The company also announced plans to close around 1,200 stores in the next three years, a move expected to immediately boost its adjusted earnings and cash flow. ($WBA)

• Sphere Entertainment rose 6.4% following the announcement that Abu Dhabi will be the next location for its iconic Sphere venue, taking attention away from the previously expected London site. ($SPHR)

• Charles Schwab climbed 6.1% as its third-quarter results surpassed analysts’ expectations. Schwab posted earnings of 77 cents per share, excluding one-time items, on $4.85 billion in revenue. ($SCHW)

• Boeing surprisingly increased 2.3% following news that the aircraft manufacturer is considering raising up to $25 billion through debt and equity to boost liquidity. ($BA)

• Carnival Corp increased by 6.6%. ($CCL)

What’s down 📉

• Coty, the parent company of CoverGirl, plunged 10.8% after trimming its fiscal first-quarter guidance and warning of slower growth trends in the U.S. ($COTY)

• Enphase shares slid 9.3% following a downgrade by RBC Capital Markets from outperform to sector perform. RBC noted that Enphase is expected to grow at a slower rate than what consensus estimates predict. ($ENPH)

• UnitedHealth shares dropped 8.1% after the company lowered its earnings guidance due to headwinds from a cyberattack earlier in the year. UnitedHealth now expects full-year earnings between $27.50 and $27.75 per share, down from a previous range of $27.50 to $28.00. Despite the revision, the company still beat top- and bottom-line estimates for the third quarter. ($UNH)

• Citibank shares lost 5.1% despite stronger-than-expected third-quarter earnings. The bank posted earnings per share of $1.51 on $20.32 billion in revenue, beating analysts’ expectations of $1.31 per share on $19.48 billion in revenue. ($C)

• Exxon Mobil shares fell 3.0% as energy stocks declined with oil prices dropping by about 5%. ($XOM)

AEROSPACE
Boeing Raises $25B Amid Strikes, Layoffs, and Cash Crunch

Boeing’s new CEO, Kelly Ortberg, is facing a pretty turbulent start.

With 33,000 striking workers grinding the production of its 737 jets to a halt, it’s been a tough month for the company. And the price tag for this gridlock? A staggering $5 billion in collective losses for Boeing, its suppliers, and Seattle-area businesses. The labor dispute is about better pay, but with both sides standing their ground, there’s no sign of a resolution anytime soon.

The Costly Domino Effect
The strike is only one part of Boeing’s problem cocktail. The company is staring down $5 billion in extra costs this quarter thanks to delays in its defense and commercial units. The long-awaited 777X? Yeah, it’s pushed back another year to 2026, and that didn’t sit well with Emirates, one of its biggest customers.

Oh, and let’s not forget the looming layoffs—Boeing is planning to cut 17,000 jobs as it tries to stop the financial bleeding. Boeing’s stock is already down 40% this year, so it’s safe to say investors aren’t thrilled.

Cash Crunch Mode: Boeing is desperately looking to shore up its finances. To plug its cash drain, it’s planning to raise at least $10 billion by selling shares and recently secured a new $10 billion credit line.

That’s a good move to keep the lights on, but analysts warn that Boeing’s debt could get downgraded to junk status if it doesn’t get its act together. With $45 billion in net debt, Boeing is walking a tightrope—and the union strike isn’t helping.

Can They Pull Up?
Despite all the turbulence, Boeing isn’t out of the game just yet. The company has a backlog of 5,500 aircraft orders, worth about half a trillion dollars, so there’s still a light at the end of the runway. But CEO Ortberg’s first earnings call on October 23 will be make-or-break as he tries to convince investors that Boeing can weather the storm.

Investors will be watching closely—because Boeing is in desperate need of a smooth landing.

NEWS
Market Movements

• 🚨 Citigroup Faces Staffing Shortages: Citigroup is struggling to resolve regulatory issues due to a shortage of skilled workers in risk, compliance, and data roles. This comes despite billions in investments and 13,000 staff dedicated to the project. ($C)

• 🚗 Xpeng Revisits European Strategy: Xpeng is reviewing its product line and pricing strategy in Europe after facing challenges from new tariffs on Chinese electric vehicles. The company plans to focus on local manufacturing to remain competitive in the market. ($XPEV)

• 🎥 Adobe Launches AI Video Tool: Adobe introduced its Firefly Video Model, an AI-powered tool that allows users to extend video clips or generate footage from text or images, capable of creating short videos up to 5 seconds. ($ADBE)

• 📈 Apple Hits Record Intraday High: Apple hit a new intraday high of $237.49 before closing up 1.1% at $233.85. The stock climbed on strong iPhone sales data and bullish Wall Street outlooks ahead of the holiday season. ($AAPL)

• ⚛️ Google Backs Nuclear Power for AI: Google is partnering with Kairos Power to build seven small nuclear reactors in the U.S. to power its AI systems. The first reactor is expected to go online by 2030, with more to follow by 2035, supplying 500 megawatts of power—enough to power a midsized city. ($GOOGL)

EARNINGS
The Earnings Roundtable

• 💰 Goldman Sachs Profits Jump 45% on Trading Surge
  Goldman Sachs crushed it in Q3, with profits up 45% to $2.99 billion, driven by a banner quarter in its stock-trading division—its best in over three years. Investment banking also beat expectations, helping overall revenue rise 7% to $12.7 billion. Not everything is gold, though: fixed-income trading dipped 12%, and the firm took a $415 million hit from its exit of a credit card partnership with GM. Investors still seem bullish—Goldman’s stock is up 34% this year. ($GS)
  

• 🧨 ASML Takes a Hit on Weak Chip Demand
  ASML got walloped in Q3, with shares plunging 16%, the worst drop in 26 years. The semiconductor giant reported just €2.6 billion in bookings, missing analyst expectations by nearly half. ASML blamed the weak demand on a slower-than-expected recovery in the chip sector and slashed its 2025 sales forecast, sending ripple effects through chip stocks like Nvidia. CEO Christophe Fouquet acknowledged that customer caution is weighing down growth. ($ASML)
  

• 🏥 UnitedHealth Drops on 2025 Profit Warning
  UnitedHealth Group stumbled big time, with shares falling over 8% after the company issued a 2025 profit outlook below Wall Street’s expectations. Rising medical expenses and tighter government reimbursement rules are squeezing the healthcare titan. Its medical-loss ratio, a key cost measure, hit 85.2%, higher than the forecasted 84.4%. Despite beating Q3 earnings estimates, the future looks a bit cloudy for UnitedHealth. ($UNH)
  

• 📊 Bank of America Beats on Trading and Banking
  Bank of America rode a trading and investment banking surge in Q3, with revenue from its trading desk jumping 12% to $4.93 billion. Investment banking revenue was up 15%, driven by stronger-than-expected dealmaking. Net interest income, while down, dropped less than analysts feared, giving the bank a solid footing as interest rates begin to stabilize. Shares rose .55% today, bringing BofA’s 2024 gain to 26%. ($BAC)
  

• 💸 Schwab Soars After Beating Expectations
  Charles Schwab shares shot up 6.10% today after reporting a Q3 earnings beat, with adjusted EPS of 77 cents, topping estimates. The brokerage firm also slashed $8.9 billion in debt, a sign that it's recovering from last year’s customer exodus in search of higher yields. With cash flow improving and costs under control, Schwab’s rebound from its rocky 2023 seems to be picking up speed. ($SCHW)
  

• 🏬 Walgreens to Close 14% of US Stores
  Walgreens is taking drastic measures to trim costs, announcing it’ll close 14% of its US stores over the next three years. The drugstore chain plans to shutter 500 stores in 2025 alone. Investors liked the move—shares jumped nearly 16% after Walgreens also topped Q4 earnings estimates with $0.39 per share, just above the predicted $0.36. But the drugstore chain isn’t out of the woods yet, facing stiff competition from online retailers and low-budget giants like Dollar General. ($WBA)
  

• 💼 United Airlines Beats Expectations, Announces Buyback
  United Airlines shrugged off the summer’s fare wars to report a Q3 profit that left Wall Street pleasantly surprised. Adjusted earnings hit $3.33 per share, beating the $3.07 forecast, and revenue totaled $14.8 billion, thanks to a rebound in corporate travel and premium tickets. As a cherry on top, United authorized a $1.5 billion share buyback plan—$500 million of which will be repurchased this year. The stock’s up over 50% year-to-date, outpacing its rivals. ($UAL)

Calendar
On The Horizon

Before Market Open:

• Abbott Laboratories ($ABT) has been flexing its muscles in the healthcare game, with shares steadily climbing since its blockbuster Q3 2023. Last year’s sky-high results may pose a tough act to follow in Q3 2024, but don’t count Abbott out. The company’s been busy diversifying its portfolio, buying back shares, and keeping the momentum going. Analysts are calling for $1.20 EPS on $10.54 billion in revenue—let’s see if Abbott can keep the streak alive.

• Morgan Stanley ($MS) is set to release its Q3 earnings, and with its stock near record highs, expectations are riding on strong performances from its investment banking and wealth management units. Analysts predict $2.6 billion in net income, up from $2.4 billion last year, with $1.59 EPS on $14.35 billion in revenue. Morgan Stanley has leaned heavily into managing $5.7 trillion in client assets, which has become its largest revenue driver, shifting away from the volatility of investment banking. Competitors like Goldman Sachs and JPMorgan have already reported impressive gains, so the pressure is on for Morgan Stanley to deliver similar results.

NEWS
The Daily Rundown

• 🛰️ NASA Launches Mission to Find Life on Europa: NASA launched the $5.2 billion Europa Clipper mission aboard a SpaceX rocket to investigate the icy moon of Jupiter for signs of life. Scientists believe Europa could harbor an ocean beneath its frozen surface that may have the ingredients for extraterrestrial life. By 2031, the spacecraft will perform multiple flybys to scan for organic compounds, though it won’t land on Europa itself.

• 🪧 Pro-Palestine Protestors Disrupt NYSE: Pro-Palestine protestors from the group Jewish Voices for Peace chained themselves to the exterior doors of the New York Stock Exchange. The demonstrators aimed to "shut down business as usual on Wall Street," but trading continued despite the protest. Police arrested dozens of protestors, but none made it inside the building.

• 🦺 FEMA Halts Aid in North Carolina Amid Threats: FEMA paused aid in some communities affected by Hurricane Helene after receiving violent threats against its workers. One armed man was arrested for threatening to harm FEMA employees. The threats, which appear to be fueled by misinformation, have made it harder for FEMA to provide disaster relief.

• 🏆 Nobel Prize Awarded for Research on Global Inequality: Daron Acemoglu, James Robinson, and Simon Johnson won the Nobel Prize in economics for their research linking a nation’s prosperity to the institutions established during European colonization. Their findings suggest that countries with inclusive institutions have thrived, while those with extractive ones have struggled. Critics, however, argue that the research overlooks cultural factors in economic success.

• 🎬 Terrifier 3 Shocks Box Office: The low-budget slasher flick Terrifier 3 raked in over $18 million in its opening weekend, crushing Joker: Folie à Deux, which made just $7 million in its second weekend. Terrifier 3 leaned into its graphic horror, with reports of audience members walking out and even vomiting, marking yet another win for indie horror films.

• 🛑 Canada Expels Indian Diplomats Amid Rising Tensions: Canada expelled six Indian diplomats, accusing them of being part of a plot to intimidate Sikh separatists. India retaliated by expelling six Canadian diplomats, further escalating tensions between the two countries.

• ❄️ Bath and Body Works Pulls Controversial Candle: Bath and Body Works apologized and stopped selling a candle that had been decorated with paper snowflakes, which social media users claimed resembled Ku Klux Klan hoods.

• 😔 Lilly Ledbetter, Equal Pay Advocate, Dies at 86: Lilly Ledbetter, the namesake of the landmark 2009 equal pay law, passed away at the age of 86. She was known for her advocacy in fighting for gender pay equity.

RESOURCES
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