Good morning investors! After a rough week, we will now focus on major earnings.
Today we cover:
What to expect this week
The large deficit
Fear rules the market
📊 Economy and News
What to Expect this Week
Here’s what to keep an eye on this week:
Monday, Oct. 19
Quiet start. No major reports highlighted. Markets digest last week’s mixed results (Dow +0.7%, S&P 500 –2%, Nasdaq –4.5%) amid hotter inflation data and rate-hike speculation.
Tuesday, Oct. 20
General Motors reports before the open (call 8:30 a.m. ET). Focus on its defense expansion and Lockheed Martin partnership.
Netflix posts after the close (interview 4:45 p.m. ET). Watch revenue growth outlook after recent layoffs.
Spotify also reports.
Wednesday, Oct. 21
Big Tech day.
Lam Research (chip equipment) and IBM report in the afternoon.
Meta Platforms results after the close (call 5:30 p.m. ET). Investors will look for AI progress after last quarter’s profit pressure.
Tesla reports after the close (Q&A 5:30 p.m. ET). Focus on EV deliveries, autonomous projects, and Cybercab safety probe.
Thursday, Oct. 22
Heavy calendar.
Airlines: American, United, Alaska, and Southwest report. Watch air-travel demand after a softer September and cautious outlooks.
Procter & Gamble (morning).
Comcast and AT&T (morning).
Western Digital after the close.
Friday, Oct. 23
No major company reports flagged. Markets likely react to the week’s earnings and any economic data.
Global hits:
Trump waives broad new Russia sanctions, Zelenskyy condemns it as ‘wrong’.
China GDP growth picks up thanks to global AI boom.
Bank of Canada sees sharply higher inflation outlook as oil surges.
China proposes export curbs on 12 key solar manufacturing technologies.
Venezuela expects $76 billion oil investment boost amid U.S. cooperation.
Reminder: The U.S. recorded a $1.992 trillion budget deficit for fiscal 2026—up 12% from the prior year and the third-highest on record—marking the 25th straight year of deficits. Spending was led by Social Security ($1.7 trillion), Medicare ($1.1 trillion), and net interest (over $1 trillion), while the national debt exceeded $40 trillion; individual tax receipts rose but corporate taxes fell amid recent tax cuts.
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📈 Stocks
S&P 500 7,659.44 (-1.09%)
DJIA 52,002.41 (-0.34%)
NASDAQ 26,140.0 (-2.14%)
BRENT CRUDE 109.01 (-0.88%)
* Prices as of Oct 19th, 12:20 AM UTC
Wall Street’s Fear Gauge Spikes on AI Sell-Off
The Cboe Volatility Index (VIX) jumped above 22 for the first time in four months on Friday, rising more than 21% as AI-related stocks sold off hard—the Nasdaq dropped 2%, its worst day since early June, with CoreWeave plunging 13%.
Traders piled into November VIX call options, including large purchases of 20- and 23-strike contracts totaling millions of dollars, betting the index will stay elevated or climb higher through mid-November amid concerns over a broader market downturn.
Investors Buy Up U.S. Timberland as Long-Term Bet
Institutions are acquiring timberland at a rate of about one million acres a year, drawn to its long-term potential as a natural, growing asset amid market uncertainty—yet current owners caution that returns are low right now because lumber prices have been declining since 2022 in a weak housing market, with trees taking 12–25 years to mature and ownership bringing risks such as wildfires, pests, taxes, and management costs. While some see value in land appreciation near growing metro areas or via timber ETFs like WOOD, experts stress it is an illiquid, multi-decade play rather than a quick or passive investment.
Surprising: Microsoft pulls out of UK data centre deal with Nscale.
💵 Personal Finance
Companies Hint at Future Layoffs Without Specifics, Fueling Worker Anxiety
Firms including Nike, Paramount-Warner Bros. Discovery, and Kroger are signaling upcoming job cuts—sometimes years ahead—without naming who or when, leaving employees in limbo and potentially harming productivity and morale. Experts say the early warnings may aim to reassure investors or encourage voluntary departures (though this risks losing top talent), while workers face prolonged stress and possible burnout from overworking to stay visible.
What to do in this situation
Quietly update your résumé and LinkedIn, and start exploring other opportunities without broadcasting it at work.
Focus on high-visibility, high-impact work that demonstrates your value, but avoid unsustainable “loud working” that leads to burnout.
Build or strengthen external networks and keep skill-building current so you’re prepared either way.
Remember that long-term plans often change—cuts may be delayed, reduced, or reshaped—so stay professional and productive while protecting your options.
💰 Be a Better Investor
“It is not the man who has too little, but the man who craves more, that is poor.”
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