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Nvidia sees a major blow to its business.

Market Headlines 👀 

• US President Biden and Secretary of State Antony Blinken will visit Israel on Wednesday.

• Nvidia (NVDA) US Department of Commerce announces it will curb sale of advanced AI chips, including Nvidia 800 to China.

• US home sales on track for slowest year since the housing bubble.

• US retail sales comes in at 0.7% MoM; est: +0.3%.

• KPMG announces it will layoff about 6% of their deal advisory staff, affecting about 1,700 employees.

• BMW announces they will adopt the NACS charging standard starting in 2025 giving the company access to Tesla’s charging network.

• Apple (AAPL) CEO Tim Cook makes a surprise visit to China after weak iPhon 15 sales.

Earnings 💸

• Goldman Sachs (GS)

  • EPS: $5.47 beats (exp. $5.44)

  • Revenue: $11.8b beats (exp. $11.13b)

• Bank of America (BAC)

  • EPS: $0.90 beats (exp. $0.82)

  • Revenue: $25.2b beats (exp. $25.1b)

• Johnson & Johnson (JNJ)

  • EPS: $2.66 beats (exp. $2.52)

  • Revenue: $21.4b beats (exp. $21.1b)

• Lockheed Martin (LMT)

  • EPS: $6.73 beats (exp. $6.62)

  • Revenue: $16.9b beats (exp. $16.7b)

• United Airlines (UAL)

  • EPS: $3.65 beats (exp. $3.34)

  • Revenue: $14.5b beats (exp. $14.4b)

  S&P 500 Heat Map

Recap Around the Street 🧠

Debt needs to be scaled by household net worth or income. Household debt % of GDP is 72.6% per Bbg as of 6/30/23. This is at a post pandemic low and well below pre GFC (Great financial crisis) levels. Likewise, household debt to disposable income is at 97.3%, near post pandemic lows and well below pre GFC. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

 Bankruptcies filings are on the rise but have yet to impact the leveraged loan and high yield debt markets which are enjoying strong YTD relative performance versus broader fixed income.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Wednesday, October 18th: MBA mortgage applications;Housing starts; Fed beige book

• Wednesday earnings: Tesla (TSLA), Netflix (BAC),and Morgan Stanley (MS)

• 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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That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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