Welcome Back,

Stocks see a 2nd straight red day as big tech earnings begin. Yields continue to rise.

Market Headlines 👀 

• US debt hits over $33t, Wall street sees it as a concern for the US Fed.

• US Federal Reserve is set to propose lowering debit card fees for its merchants.

• OpenAi announces it is working on a tool to detec if images are AI generate and sees 99% accuracy so far.

• Microsoft (MSFT, AMZN) is discussing a major cloud deal with Amazon.

• Tesla (TSLA) announces during earnings call, cybertruck still on track to begin deliveries later this year.

• Airbnb (ABNB) is facing new curbs in Canada as the country is facing rapidly rising rents.

• X (TWTR) begins to experiment charing new users $1 a year in an attempt to prevent bots.

• Amazon (AMZN) is overhauling its warehouse operations to speed up deliveries further using robotics.

• Netflix (NFLX) announces they will raise prices of its priciest and basic plans.

• Costco (COST) CEO Craig Jelinek will step down at the end of the year.

Earnings 💸

• Tesla (TSLA)

  • EPS: $0.66 misses (exp. $0.74)

  • Revenue: $23.4b misses (exp. $24.2b)

• Netflix (NFLX)

  • EPS: $3.73 beats (exp. $3.49)

  • Revenue: $8.54b meets (exp. $8.54b)

• Morgan Stanley (MS)

  • EPS: $1.38 beats (exp. $1.27)

  • Revenue: $13.3b beats (exp. $13.1b)

  S&P 500 Heat Map

Recap Around the Street 🧠

Higher rates finally matter for equities.

Magnificent 7 benefiting from higher rates due to positive cash balances but does this alone justify the elevated valuation multiples such as price/sales?(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Housing dynamics still dominated by the supply picture even if demand has tapered off. Tight labor markets and lack of inventory still buttressing home values.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Thursday, October 19th: Weekly jobless claims; Philadelphia Fed business outlook; Housing starts

• Thursday earnings: The Blackstone Group (BX), AT&T (T), American Airlines (AAL), and Intuitive Surgical (ISRG)

• Friday, October 20th: Monthly OPEX options expiration

• —> Podcast spotlight: Pounding the Table 👊 : listen now; where you will find in-depth analysis around these highlights, read company deep dives, and interviews with public CEO's!

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