Good morning investors!
Today we cover:
Private markets getting wider
Nike, GM, and Accenture report
What you need for entry level jobs
📊 Economy and News
SEC Opens Private Markets Wider to Everyday Investors
The SEC on Wednesday approved plans to expand individual investors’ access to private markets, despite ongoing concerns about liquidity risks.
Chairman Paul Atkins said demand is rising and that participation in private markets “should not be reserved for the wealthiest.” The proposals would broaden ways for people to qualify as accredited investors and let registered advisers charge performance fees of up to 20%—levels more typical of hedge funds—to attract more private-asset managers into retail products.
The move aligns with the Trump administration’s push to ease rules, including an earlier executive order allowing more alternative assets in 401(k) plans.
It comes as the industry faces scrutiny. Semi-liquid private credit funds saw heavy redemption requests this year; Blue Owl paused quarterly cash redemptions in one retail vehicle, while Blackstone and Apollo also hit repurchase limits.
Global hits:
Italy’s state budget deficit widens to €27 billion in September.
Canada is not close to restoring housing affordability, says central bank.
UK homeowners take a hit as global bond selloff deepens.
Reminder: US mortgage rates climb to 7.28%, highest since October 2023. Elsewhere, the 10-year Treasury yield breached a level last seen in April 2002, before easing 5 basis points to 5.243%.
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📈 Stocks
S&P 500 7,666.45 (+0.19%)
DJIA 50,926.56 (+0.04%)
NASDAQ 26,871.60 (+0.039%)
BRENT CRUDE 102.43 (+4.28%)
* Prices as of Oct 2nd, 12:20 AM UTC
GM, Nike, and Accenture Report Earnings
General Motors reported a 5.5% year-over-year drop in U.S. third-quarter sales to 670,974 vehicles, with electric models plunging across the board after last year’s pre-incentive surge—Equinox EV down 92%, Blazer EV 84%, and Hummer EV 73%.
Toyota, by contrast, posted a 0.6% increase to 633,223 units, driven by a 28.5% jump in electrified vehicles (hybrids and EVs), which now make up more than 57% of its sales and narrow the gap with GM to under 136,000 units. Honda also rose 9.3%, fueled by record hybrid demand amid high gas prices.
GM’s limited hybrid offerings and reliance on trucks left it lagging, though lower-cost models like the Chevrolet Trailblazer (+51%) performed well; executives remain optimistic about upcoming pickup launches and traditional engine sales holding steady.
Nike reported mixed fiscal first-quarter results, with earnings of 48 cents per share beating estimates but revenue of $11.21 billion missing forecasts and falling 4% year-over-year, largely due to a 26% drop in China.
The company announced a restructuring plan called “Pace” that will lead to layoffs beginning in 2027—the third round this year—and aims to deliver about $2.5 billion in savings through fiscal 2031 by modernizing its supply chain, reorganizing into three geographic regions, and streamlining operations.
CEO Elliott Hill cited weak sportswear demand and a cautious consumer, noting the performance business isn’t yet large enough to offset declines in lifestyle, Jordan, and Greater China. Nike expects full-year revenue to decline by a high-single-digit percentage and guided adjusted EPS to $1.15–$1.35; shares fell roughly 3% in after-hours trading.
Accenture reported fiscal fourth-quarter results that topped estimates, with earnings of $3.29 per share on revenue of $18.68 billion, sending the stock up nearly 16% (after briefly jumping more than 22%).
Full-year adjusted EPS rose 8% to $13.97 and revenue grew 6% to $74.2 billion. The company posted record big-ticket client bookings and raised its quarterly dividend 5% to $1.71.
CEO Julie Sweet credited AI as a major growth driver, noting $85 billion in new business heading into the next year and a focus on large transformational deals. Accenture guided for 3%–6% growth in both revenue and adjusted EPS for fiscal 2027.
Boeing strike ends: Boeing’s roughly 17,000 engineers and technical workers, represented by SPEEA, approved a sweetened four-year contract that includes an immediate 10% wage increase plus annual raises of 4% (up to 6% with merit), avoiding a potential strike; the engineers voted 67.6% in favor and technical workers 53.5%, after rejecting an earlier offer, at a time when Boeing is trying to ramp up jet production and secure FAA approval for delayed models like the 737 Max 10 and 777X.
Surprising: SpaceX launches Google AI chips into orbit in push toward space-based data centers. In other news, Mattel shares rose about 19% after the Wall Street Journal reported that Authentic Brands Group had expressed takeover interest. Lastly, United Airlines gets aggressive in battle for top Delta, American flyers.
💵 Personal Finance
Skills Entry-Level Workers Need in the AI Era
As AI transforms entry-level jobs, IBM’s chief talent officer Aparna Nair says two skills matter most: critical thinking and judgment.
“Entry-level workers have to be focused on ensuring that they are actually building critical thinking [and] judgment,” Nair told CNBC Make It. “There are some things that are going to rapidly change, and some things that humans, only, can do today, which is where they need to double down.”
An IBM survey of 1,500 CHROs and 8,800 employees found 57% of CHROs view critical thinking as essential in the AI era (vs. 49% of employees), and 48% prioritize judgment under uncertainty (vs. just 29% of workers).
Traditionally, people built judgment by doing the work themselves. Now that AI handles much of that work, Nair says validating AI outputs is how workers develop it.
Three in four concerned employees reported AI is already eroding skills—especially critical thinking—even as executives rate it highly.
To build these abilities, ask more questions, think several steps ahead, and learn from decision-makers. In job applications or interviews, explain your reasoning about when to use AI and when to handle tasks yourself.
“Nobody should use AI for decision-making,” adds Zapier’s Bonnie Dilber. Build expertise through practice first, then use AI as a tool.
💰 Be a Better Investor
“The main purpose of the stock market is to make fools of as many men as possible.”
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