Good morning investors! S&P 500 snaped 3-day skid on Election Day as chip stocks rebound.
Today we cover:
Factor orders rise
AMD impresses
Square makes big announcements
Just in: Democrats flip the House with wins in Iowa, Kansas, North Carolina, Ohio, South Carolina and Texas, the Associated Press projected.
Democrats are projected to have a commanding majority in the U.S. House, surging past the 218 seats needed to control the chamber, according to experts, who now see projects Democrats win at least 235 House seats. (updated midnight as counting continues)
📊 Economy and News
U.S. Factory Orders Beat Forecasts as Manufacturing Gains Momentum
U.S. factory orders rose 1.8% in September, exceeding economists’ expectations of 1.2%, according to Commerce Department data. Orders also increased 7.2% compared with a year earlier, supported by strong aircraft bookings, machinery demand and continued investment in AI infrastructure.
Civilian aircraft and parts orders surged 28.3%, while machinery orders climbed 1.5%. Computer and electronic product orders increased 0.8% for the month and 14.9% year over year.
Manufacturing continues to benefit from resilient consumer spending and growing demand for AI-related equipment.
Global hits:
Trump says U.S. close to Canada trade deal, fertilizer tariffs among key issues.
New Zealand unemployment hits 5.7% in Q3, highest since 2015.
Brazil economists raise inflation, rate forecasts after Lula reelection.
Reminder: US strikes Iranian island ahead of midterm elections as Netanyahu presses Trump to resume attacks after the midterms. Interestingly, Trump announced plans to end nearly $4 billion in annual aid to Israel.
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📈 Stocks
S&P 500 7,568.92 (+0.36%)
DJIA 51,786.72 (-0.38%)
NASDAQ 25,372.01 (+0.83%)
BRENT CRUDE 104.11 (-0.47%)
* Prices as of Nov 4th, 12:20 AM UTC
Advanced Micro Devices shares rose 8% in after-hours trading after the chipmaker reported third-quarter results that exceeded Wall Street expectations. Revenue climbed 45% year over year to $13.38 billion, beating estimates of $13.09 billion, while adjusted earnings reached $2.09 per share versus forecasts of $1.95.
Data center revenue nearly doubled, accounting for 64% of total sales, driven by growing demand for AI processors and infrastructure. CEO Lisa Su expects demand to accelerate further, particularly as businesses expand their use of AI-powered applications and autonomous agents.
AMD forecast fourth-quarter revenue of approximately $17 billion, above analysts' expectations of $16.2 billion. However, its PC and gaming businesses remain under pressure, with combined revenue declining 8% and gaming sales falling 40%.
Despite concerns about excessive AI infrastructure spending and weakness in the PC market, AMD shares have gained more than 120% this year, reflecting strong investor confidence in its AI growth prospects.
Interesting: Disney plans several thousand layoffs, asks some managers to cut costs by up to 20%.
CrowdStrike launches AI kill switch that it says can stop internal agents that go rogue.
Apple warns of risks related to AI agents behaving in ‘unintended or unpredictable’ ways
Surprising: JetBlue raises bag fees for third time in a year as fuel costs bite. Elsewhere, Meta is aiming to raise between $20 billion and $25 billion in a bond sale. In other news, Binance hackers used fake job interview in $6.3 billion attack. Lastly, Fannie Mae, Freddie Mac rally as Ackman presses for conservatorship exit.
Block Raises 2026 Profit Forecast as Cash App Fuels Strong Growth
Block raised its full-year 2026 gross profit forecast to $12.63 billion after reporting stronger third-quarter earnings, driven by robust growth in Cash App and Square. Shares jumped 9% in after-hours trading.
Cash App gross profit surged 27% year over year, while Square increased 14%. Cash App reached 60 million monthly active transacting users in September, supported by expanding banking and lending services.
Adjusted earnings rose to $1.13 per share, compared with $0.54 a year earlier. However, credit losses increased 65.6% to $601.7 million, highlighting growing risks from its lending business.
Block also forecast 2027 gross profit of $14.52 billion, expecting continued growth from investments in artificial intelligence.
💵 Personal Finance
Why Avoiding Money Conversations Can Damage Relationships and Cost You
Talking about money with family and friends can feel uncomfortable, but avoiding these conversations may lead to misunderstandings, financial problems and unnecessary tension.
This discomfort often stems from fear of judgment. Wealthier people may worry others will criticize their spending decisions, while those with fewer resources may feel embarrassed about their financial situation. As a result, important conversations are postponed or avoided entirely.
However, staying silent can have serious consequences. Families may fail to communicate estate-planning wishes, disagreements can arise over business succession, and parents may leave children with unrealistic expectations about college expenses.
You can make difficult financial discussions easier by identifying a shared goal. Instead of focusing on how much money someone has, explain what you hope to achieve together.
For example, when discussing aging parents' finances, the goal might be ensuring they receive proper care if they become ill or unable to manage their affairs. With friends, it could mean maintaining relationships while finding affordable ways to socialize.
Being honest about financial limits can prevent resentment. Rather than repeatedly declining expensive outings, suggest alternatives such as cooking together, watching a movie at home or going for a walk.
The same principle applies to major family expenses. When discussing financial contributions for events such as weddings, clearly explain the expected costs and why everyone's involvement matters.
Although these conversations may feel awkward initially, avoiding them does not make financial challenges disappear. Starting with shared priorities, approaching discussions with empathy and being transparent can help families and friends make better decisions while strengthening relationships.
💰 Be a Better Investor
“Know what you own, and know why you own it.”
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