Good morning investors! Earnings season is here!
Today we cover:
Housing market freezes
Netflix reports
SpaceX impresses
📊 Economy and News
U.S. Housing Market Freezes as Mortgage Rates Rise and Fed Weighs Hikes
The U.S. housing market weakened sharply in September as rising mortgage rates and affordability challenges pushed buyers and builders to the sidelines. Pending home sales fell 7.3% month over month and 11.3% year over year, reaching their lowest level in records dating back to 2001. Housing starts and building permits also declined, while homebuilder confidence dropped to a 14-year low.
Mortgage rates climbed to around 7.6% by the end of September, significantly increasing borrowing costs. Builders are responding with price cuts and incentives, but high construction costs and weak demand continue to pressure the industry.
Economists expect housing activity to remain subdued into 2027, with high borrowing costs discouraging homeowners from selling and limiting new construction.
Global hits:
French bond yields dip but remain near 24-year high in volatile trading.
Bank of Israel to pause rate cuts ahead of October 27 election.
UK wages grew by annual 3.7% in three months to August.
Reminder: Trump sued over 50% tariffs on Canada in latest trade challenge.
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📈 Stocks
S&P 500 7,712.57 (+0.28%)
DJIA 52,495.88 (+1.02%)
NASDAQ 26,424.82 (-0.02%)
BRENT CRUDE 108.08 (-0.73%)
* Prices as of Oct 21st, 12:20 AM UTC
Netflix Beats Earnings Estimates but Shares Fall on Weak Outlook
Netflix reported third-quarter earnings per share of $0.87, beating analysts’ expectations of $0.82, while revenue reached $12.87 billion, in line with forecasts and up nearly 12% year over year.
Despite the strong results, shares fell around 6% in after-hours trading due to weaker-than-expected revenue guidance and a reduced advertising revenue forecast.
Netflix now expects 2026 revenue of $51.1 billion and advertising revenue of $2.7 billion, down from its previous $3 billion estimate. The company also faces concerns about slowing viewership, increasing competition and recent layoffs affecting around 1,000 employees.
To drive future growth, Netflix plans to improve content value, use technology to enhance its platform and strengthen monetization. However, slower advertising development and uncertainty over its strategy continue to concern investors.
More earnings:
United Airlines lowered its 2026 profit outlook as rising fuel prices put pressure on earnings, despite continued demand for air travel and higher ticket prices. The airline expects fourth-quarter adjusted earnings of $0.50 to $1.50 per share, below analysts’ forecast of $1.76. This would put full-year adjusted earnings at no more than $7.22 per share, down significantly from its previous forecast of $9 to $11.
SpaceX shares rose around 5% in after-hours trading after the company reported strong third-quarter results, driven by rapid growth in artificial intelligence (AI) and satellite internet services. Revenue surged 161% year over year to $14.58 billion, beating analysts’ expectations of $12.72 billion, while adjusted earnings reached $0.45 per share versus forecasts of $0.13. Net income rose to $4.4 billion, compared with a $1.05 billion loss a year earlier.
AI emerged as a major growth engine, with revenue jumping ninefold to $7.56 billion. Meanwhile, Starlink subscribers increased to 13.6 million, boosting connectivity revenue by 69% to $5.25 billion. Moreover, CEO Elon Musk also confirmed that Tesla and SpaceX have formed independent board committees to explore a potential merger, which he described as a good idea, subject to shareholder approval. SpaceX additionally aims to begin high-volume AI chip production at its planned Texas facility in 2028.
Interesting: Apple is adding a U.S. titanium supplier for its new iPhone Duo and expanding domestic production of camera components for the iPhone 18 Pro.
Novo’s next-generation obesity drug shows 25% weight loss in women in late-stage analysis.
Salesforce announced an agreement to buy Braze in a $5.66 billion deal.
Surprising: Ford recalls more than 102,000 F-Series trucks over faulty speedometer. In other news, Anthropic in talks with neocloud Nscale over second multibillion-dollar deal. Elsewhere, Aerospace & Defense Boeing wins FAA approval for 737 Max 10 after years of delays as Duffy says certification process should be faster.
💵 Personal Finance
How Parents Can Help Children Buy Homes While Saving on Taxes
As rising home prices and mortgage rates make homeownership harder, parents and grandparents are increasingly helping younger generations with down payments. In 2026, 40% of homeowners reported receiving financial assistance, up from 35% in 2023.
Strategic gifting and inheritance planning can help families provide support while minimizing taxes. Individuals can gift up to $19,000 per recipient annually in 2026 without filing a gift-tax return. Married couples can combine their exclusions to give up to $38,000 per recipient, subject to applicable filing requirements. Larger gifts generally require reporting but do not automatically trigger gift tax, as the lifetime federal gift and estate tax exemption is $15 million per person.
The choice between gifting assets during life and passing them on through inheritance can also affect capital gains taxes. Inherited investments generally receive a stepped-up cost basis based on their value at the owner’s death, potentially reducing taxes when sold. Gifts made during the owner’s lifetime usually retain the original cost basis, although recipients with lower incomes may qualify for a 0% long-term capital gains tax rate.
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