👎 Earnings downgraded

and stocks fall

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Good morning investors! Of the 14% of S&P 500 companies that have already posted third-quarter results, 79% have beaten expectations.

Today we cover:

  • Earnings get downgraded

  • Stocks slip

  • Live in these states with just $100,000

📊 Economy and News 

Earnings Get Downgraded

Wall Street has been lowering its earning expectations. Companies in the S&P 500 are now projected to see a 4.2% rise in earnings compared to the same period last year, a decrease from the 7.8% growth anticipated in June. This could suggest weakening confidence in corporate performance, but it may also support the continuation of the stock market rally in the coming weeks.

Although the revision might seem significant, such downward adjustments are common before earnings reports. Over the last two decades, the median drop in earnings expectations between July and early October has been about 3.2 percentage points, comparable to this quarter's 3.6-point shift.

While earnings growth is expected to slow for both general stocks and a key group of tech giants, general stock earnings may recover in the fourth quarter, while major tech firms could stabilize at strong growth rates.

Early reports from companies like PepsiCo have shown mixed results, with some outperforming on earnings but facing weaker sales.

Global hits:

Surprising: Chick-fil-A will launch the Play app, which will host content aimed at families with children aged 12 and under.

Something about the UK: Britain faces warnings of a tech exodus over tax plans ahead of high-stakes budget as the economy struggles. Moreover, asking prices for UK homes aren't rising yet there are some exciting happenings such as Robinhood rolling out high-risk margin trading in the country after getting regulator nod.

📈 Stocks

S&P 500 5,853.98 (-0.18%)
DJIA 42,931.60 (-0.80%)
NASDAQ 18,540.01 (+0.27%)
BRENT CRUDE 74.13 (+1.37%)
* Prices as of Oct 22nd, 12:20 AM UTC

Stocks slip to start the week

The Dow Jones Industrial Average declined on Monday, retreating from last week’s strong gains as rising Treasury yields and anticipation of upcoming earnings reports weighed on the market.

Consumer and homebuilder stocks were hit the hardest, with concerns growing over prolonged high interest rates. Target and Builders FirstSource both saw declines of over -4%, while Lennar dropped more than -3.5%.

Meanwhile, the yield on the 10-year Treasury surged, increasing by more than 10 basis points to 4.178%.

More AI: Microsoft will allow organizations to create their own autonomous AI agents within Copilot Studio, the tech giant’s platform for customizing and building so-called “copilot” assistants, starting next month.

Taking giant strikes, Meta has released AI model that can check other AI models' work.

Disney changes: Disney will name a successor to CEO Bob Iger in early 2026. Moroever, former Morgan Stanley CEO James Gorman will replace Nike Executive Chairman Mark Parker as chairman in January.

Good to know: UBS sells its 50% stake in Swisscard to American Express. Elsewhere, Boeing machinists will vote tomorrow on new proposal with 35% raises that could end strike. Also, Nvidia broke out of its 4-month base to new all-time highs and is only about 2% away from beating apple as the world's largest firm.

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💵 Personal Finance

You Can Retire in These Three US States with Just $100,000

Determining your retirement location is just as crucial as planning your savings. According to a recent analysis by GOBankingRates, three U.S. states demand annual retirement expenses exceeding six figures for a comfortable lifestyle, a stark contrast to many others.

Hawaii ranks highest, with average annual retirement costs reaching $129,296. California and Massachusetts follow closely, each requiring over $100,000. In stark comparison, West Virginia emerges as the most affordable option, with retirees needing only $58,190 annually.

Over a typical 30-year retirement, the savings gap between Hawaii and West Virginia amounts to more than $1.25 million.

These figures are derived from the annual retirement expenses for Americans aged 65 and older in each state, utilizing Bureau of Labor Statistics data on food, shelter, transportation, healthcare, and utilities. A 20% cash cushion was included to ensure a comfortable living standard, as per the study's methodology.

Here’s a closer look at the three states where retirees face significant expenses:

Hawaii

  • Annual living expenses: $107,746

  • 20% comfort buffer: $21,549

  • Total cost for a comfortable retirement: $129,296

California

  • Annual living expenses: $83,906

  • 20% comfort buffer: $16,781

  • Total cost for a comfortable retirement: $100,687

Massachusetts

  • Annual living expenses: $83,501

  • 20% comfort buffer: $16,700

  • Total cost for a comfortable retirement: $100,201

The primary driver of these high costs is housing, typically the largest expense for American households. All three states face severe housing shortages, pushing prices higher. Additionally, food costs significantly impact retirees, particularly in Hawaii, where imported goods lead to inflated prices.

On average, the annual cost to retire comfortably across the United States stands at $66,870. States where retirees can manage on less than $65,000 a year are predominantly rural areas in the South, where the cost of living is generally lower.

Check this video for more on retiring with $100,000:

💰 Be a Better Investor

“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”

Odgen Nash

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