October 27th Market Overview

Happy Tuesday

Chip stocks had another good day, and the Nasdaq led the way. What caught my eye is who's helping pay for all those chips, as of lately, it's the companies selling them.

Shoppers held up better than expected, and I take that as a strong sign coming into holiday season.

Yesterday’s question: “Would you buy Anthropic on its first day of trading?”

I don think I received one yes, lol.

Let's dig in...

Today's Big Picture

1. Chipmakers Are Helping Their Customers Pay 
   Three big banks and Blackstone lined up $63 billion so Anthropic can buy more of Broadcom's chips. Per the Wall Street Journal, it's the biggest AI debt deal ever, and Broadcom's CEO stepped in to close it. Nvidia, which sells Meta its AI chips, is also putting $3 billion into Meta's stock sale. Chip stocks rose for a second day, and Broadcom now needs Anthropic's stock debut to go well, too.
   

2. Shoppers Are Holding Up Better Than Expected 
   The Conference Board's consumer confidence reading rose to 91.7, well above the 81 economists expected, as gas got cheaper. UPS CEO Carol Tomé said "the outlook for holiday demand is strong." The soft spot is big purchases. Whirlpool cut its revenue forecast, and the same survey showed people plan to spend less on big-ticket items.
   

3. Boeing and JetBlue Traded on the Earnings Call, Not the Quarter 
   Boeing beat on revenue, then fell more than $20 a share after its call. CEO Kelly Ortberg said the 737 MAX ramp-up "didn't go as smoothly" and won't hit 47 a month until 2027. JetBlue posted a bigger loss than expected and cut its outlook, yet the stock rose nearly a fifth. CEO Joanna Geraghty told investors the airline has the cash to reach its 2028 earnings goal.

Market Overview

Index Performance

Stock Spotlight

SoFi Technologies $SOFI ( ▲ 13.9% )  
rose after beating on revenue and profit and raising its 2026 forecast. Its first look at 2027 also came in above what analysts expected.

Royal Caribbean $RCL ( ▲ 5.66% )  
rose after strong bookings lifted its quarterly profit. Bookings for 2027 are already running ahead of past years.

Constellation Energy $CEG ( ▲ 2.55% )  
rose after the Energy Department offered a $5 billion conditional loan to upgrade its nuclear plants. The upgrades would squeeze more than a gigawatt of extra power out of reactors it already runs.

Big Name Updates

Blue Chips
MarketBeat lists “7 Blue-Chip Stocks to Add To Your Forever Portfolio”

General Motors $GM ( ▲ 5.74% )  
rose after saying its stock will switch from the NYSE to the Nasdaq on Nov. 17. If it joins the Nasdaq-100, funds that track that index would have to buy it.

Coca-Cola $KO ( ▼ 1.48% )  
raised its profit forecast but slipped after CFO John Murphy called the cost outlook for 2027 “challenging.” North American volume was flat, as more Coke sales were offset by less water, sports drinks, coffee and tea.

Oracle $ORCL ( ▲ 3.59% )  
is adding AI chips from Google, Cerebras and SambaNova so it leans less on Nvidia. It’s the first time Google has sold its AI chips for use in someone else’s data center.

Apple $AAPL ( ▲ 0.88% )  
rose slightly after launching a new iMac and MacBook Pro, both on sale Nov. 6. A few iPhone Duo buyers say their foldable screens cracked within hours. Apple says it will replace faulty phones.

Other Notable Company News

HCA Healthcare $HCA ( ▼ 3.0% )  
fell after saying 2027 earnings will be flat, partly as people drop Affordable Care Act plans.

Corning $GLW ( ▼ 1.29% )  
gave back an early gain, though AI demand lifted its profit to $680 million from $430 million.

S&P Global $SPGI ( ▼ 0.09% )  
is weighing a spinoff of its financial data business, which includes its AI unit.

Sherwin-Williams $SHW ( ▼ 2.72% )  
fell after saying it expects demand to stay muted through year-end and into 2027.

Sweetgreen $SG ( ▲ 4.3% )  
rose after saying longtime managers at its busiest stores can earn over $200,000 starting next year.

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Sector Watch

Bond Market

Bonds were quiet ahead of tomorrow's Fed decision. The 10-year Treasury yield barely moved and sits just under 5.

Policy Watch

Fed

The Fed started its two-day meeting today, and the decision lands tomorrow afternoon. Traders give a rate hike about a 1 in 10 chance, per CME Group.

• Economists expect a hold with tough talk, since recent inflation readings came in hotter than expected.

• Argent Capital's Jed Ellerbroek expects a non-event with the midterms a week away. He thinks December will be "another kind of live wire."

Iran and Oil

U.S. oil slipped under $100 a barrel this afternoon on hopes the Iran war could wind down. Iran's Supreme Leader Mojtaba Khamenei and his top security official discussed Iran's terms for ending it.

• The U.S. says it won't strike Iran again before the midterms. Trump says energy prices will fall after the election.

• Attacks on Saudi Arabia and on Gulf shipping are keeping Brent, the global benchmark, near $110.

International

• U.K. finance minister John Healey delivers his first budget tomorrow. Shop prices in Britain are rising at their fastest pace in over two years, led by food.

• China's industrial profits grew the most since June, helped by demand for AI equipment.

• Canadian Prime Minister Mark Carney says a U.S. trade deal is getting closer but isn't done.

What to Watch

Visa and Robinhood Tonight

Visa and Robinhood report after today's close. Visa will show whether card spending matches today's upbeat confidence survey. Robinhood will show how much everyday investors are trading.

Alphabet and Microsoft Wednesday

Both report Wednesday. Alphabet spent more than its business brought in during one quarter this year, then borrowed heavily. I'll be listening for next year's spending plans, and who's paying for them.

Israel's Election

Israelis voted today in an election that could change the course of the Iran war. Prime Minister Benjamin Netanyahu says Israel must finish overthrowing Iran's government. His opponent, Gadi Eisenkot, wants to turn military wins into diplomatic ones.

Thanks for reading - you are now the more informed 🙂

- John

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