Good morning investors! Crypto and stocks fell due to controversial announcements.
Today we cover:
Homebuilder sentiment jumps
Oracle shines
Banks in trouble?
Where would you invest if you had $100,000?
📊 Economy and News
U.S. Homebuilder Sentiment Rises
U.S. homebuilder sentiment reached a six-month high in October, driven by expectations of lower mortgage rates boosting housing demand and easing inventory overhang, according to the NAHB. However, the index remained below the 50 breakeven point for the 18th consecutive month, with economists forecasting a rise to 33.
Economic uncertainty and a weak labor market may temper the positive impact of reduced borrowing costs.
Global hits:
Canadian home sales fall 1.7% in September, ending growth streak.
IMF upgrades Asia’s growth forecast, warns of risks from US-China tension.
Brazil’s economic activity rises less than expected in August.
Interesting: U.S. budget deficit edged lower in 2025 as tariffs, debt payments both saw new records.
U.S. Chamber of Commerce sues Trump administration over $100,000 H-1B visa fee.
Military spending bill blocked in US Senate as shutdown grinds on.
Check here: Tariff costs to companies this year to hit $1.2 trillion, with consumers taking most of the hit, S&P says.
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📈 Stocks
S&P 500 6,629.07 (-0.63%)
DJIA 45,952.24 (-0.65%)
NASDAQ 22,562.54 (-0.47%)
BRENT CRUDE 61.02 (-1.44%)
* Prices as of Oct 17th, 12:20 AM UTC
Bank earnings and some warning bells take the market down
U.S. regional bank stocks dropped after Zions Bancorporation reported a $50 million Q3 loss on two California loans, raising concerns about credit risks amid high interest rates, prompting an independent review. Western Alliance dropped over 10% after alleging borrower fraud but reaffirmed its 2025 outlook. The SPDR S&P Regional Banking ETF (KRE) declined more than 6%.
Analysts highlight transparency issues in the credit market, with JPMorgan writing off $170 million related to Tricolor’s bankruptcy. Jefferies, with $715 million exposure to First Brands, saw its stock fall over 10%, marking its worst month since March 2020. UBS reported $500 million exposure.
The opaque private credit market adds to investor unease, though credit quality remains generally favorable. Regional banks faced a similar crisis in 2023 with Silicon Valley Bank’s collapse.
Other asset managers like Blue Owl Capital (-7%), Ares Management (-6%), and Blackstone (-3%) also declined. Major banks like JPMorgan (-2%) and Bank of America (-3.5%) saw milder losses. The S&P 500 ended lower, dragged by banking sector declines.
In other news, regulators are doing away with controversial regulations that required banks to plan for losses in the event of climate-related events.
Earnings:
BNY reported a 21% increase in Q3 profit, driven by higher interest, fees, and rising equity markets. Assets under custody grew 11% to $57.8 trillion. Total revenue rose 9% to a record $5.08 billion, with net interest income up 18%, exceeding analyst expectations of 12.6% growth, fueled by reinvesting in higher-yield securities and balance sheet growth.
KeyCorp's third-quarter profit rose due to a 23.8% surge in net interest income to $1.19 billion, driven by lower deposit costs and a shift to higher-yielding assets. The net interest margin increased to 2.75% from 2.17% a year ago. Shares gained 1.6% in premarket trading.
Taiwan Semiconductor Manufacturing Co. reported a 39.1% increase in third-quarter profit from last year, beating estimates and hitting a fresh record as demand for artificial intelligence chips stayed strong. Bolstered by this AI strength, the company had raised its 2025 revenue growth forecast to the mid-30% range. In July, the company had expected full-year revenue growth of about 30%.
Oracle shines: Oracle's stock rose 3% after the company announced a significant cloud-computing deal with Meta and projected strong growth in its core database and AI data platform business, expecting $20 billion in revenue by fiscal 2030, up from $2.4 billion in 2025.
Oracle has signed deals worth $65 billion in new cloud infrastructure commitments with four customers, including Meta, in just 30 days. The company also reported a 30% to 40% adjusted gross margin on AI infrastructure and set ambitious fiscal 2030 targets of $21 per share on $225 billion in revenue, surpassing analyst expectations, though the stock dipped 2% after hours.
Check this: Cybersecurity firm F5′s stock sinks 10% after disclosing nation-state hack. Shares of Nestle surged 9.3% as the firm plans to slash 16,000 jobs.
Ray-Ban maker EssilorLuxottica says Meta smart glasses are boosting growth
Warning: United Airlines CEO Scott Kirby said the government shutdown could start to hurt bookings if it isn’t resolved.
PayPal’s crypto partner mints a whopping $300 trillion worth of stablecoins in ‘technical error’.
Nio shares plunged 9% after Singapore’s GIC accuses Chinese EV maker of inflating revenue.
💵 Personal Finance
Top 10 U.S. Cities for Singles in 2025, Ranked by Zumper
According to Zumper’s 2025 report, the best U.S. cities for singles balance affordability, job opportunities, and vibrant social scenes. The ranking, based on eight metrics including single population (20%), median rent (20%), and nightlife per capita (10%), highlights mid-sized cities, with the South and Midwest dominating.
St. Louis, Missouri, claims the top spot with a $1,000 median one-bedroom rent and nearly half its population single. It excels in nightlife and entertainment options, offering a high quality of life.
Knoxville, Tennessee, ranks second, with 46% singles and strong restaurant options, though Tennessee’s overall quality of life ranks low due to high crime rates.
Top 10 Cities for Singles:
St. Louis, MO
Knoxville, TN
Salt Lake City, UT
Atlanta, GA
Pittsburgh, PA
Tallahassee, FL
Minneapolis, MN
Asheville, NC
Richmond, VA
Austin, TX
The report, using U.S. Census and other data, shows smaller markets provide singles with affordability and community charm.
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👩🏽⚖️ Legal Stuff
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