Good morning investors! This will be another earning heavy week.
Today we cover:
What to expect this week
The shutdown continues
Berkshire Hathaway reports
📊 Economy and News
What to expect this week
Here’s what to keep an eye on this week:
Monday, Nov 3
Data: ISM Manufacturing PMI Delayed: Construction spending Watch: S&P Manufacturing PMI
Earnings: Palantir (AI focus), Vertex Pharma, Williams Cos, Simon Property
Tuesday, Nov 4
Delayed Data: Trade balance, factory orders, job openings
Earnings: Uber, Shopify, Arista Networks, Pfizer, Amgen, Spotify, Ferrari, BP
Wednesday, Nov 5
Data: ADP Private Jobs (Oct) Watch: ISM Services PMI, S&P Services PMI
Earnings: Novo Nordisk, Qualcomm, Arm Holdings, Toyota, McDonald’s, DoorDash, Robinhood
Thursday, Nov 6
Fed Speakers: Paulson (Philly), Musalem (St. Louis)
Delayed Data: Jobless claims, Q3 productivity
Event: Tesla shareholder meeting
Earnings: AstraZeneca, Airbnb, ConocoPhillips, Vistra
Friday, Nov 7
Data: Consumer sentiment (Nov prelim) Watch: Consumer credit (Sep) Delayed: U.S. jobs report (Oct)
Fed Speaker: John Williams (NY)
Earnings: Constellation Energy, KKR, Enbridge, Duke Energy
Global hits:
US retailers left short-changed as penny production ends.
Bessent says US food aid benefits could flow by Wednesday.
Australia’s home prices surge by most in over two years in October.
Prolonged US Shutdown Risks Deeper Economic Damage
The ongoing federal government shutdown—now the longest on record—threatens to snowball into severe economic fallout, economists warn. The Congressional Budget Office estimates at least $7 billion in permanent output already lost.
Key Risks as Shutdown Drags On:
Jobs: Weak hiring could turn to layoffs. 65,500 small business contractors face $12 billion in delayed payments this month alone. Consumer confidence hit a six-month low in October.
Health & Care: ACA premium subsidies expired, raising costs 26% for 22 million enrollees. Over 65,000 low-income families risk losing Head Start access starting November 1.
Spending: Missed paychecks and reduced activity mean lost jobs, trips, and holiday spending—damage that can’t be recovered. Consumer spending drives two-thirds of the economy.
Prices & Rates: Supply disruptions could push prices up, but a weaker economy may limit inflation. The Fed may cut rates further to support the fragile job market.
Human Toll: Safety nets like SNAP are at risk, hitting vulnerable households hardest and widening inequality.
Economists like Mark Zandi (Moody’s) and Diane Swonk (KPMG) warn that past Thanksgiving, recovery becomes nearly impossible. “The economy is fragile—this could break it faster than people think,” Zandi said.
Controversial: Voters express frustration with government’s handling of economy. Also, reports say that tariffs could add $40 billion to holiday shoppers’ and sellers’ costs.
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📈 Stocks
S&P 500 6,840.20 (+0.26%)
DJIA 47,562.87 (+0.086%)
NASDAQ 23,724.96 (+0.61%)
BRENT CRUDE 64.77 (+0.34%)
* Prices as of Nov 3rd, 12:20 AM UTC
Berkshire Hathaway Q3 Surge: $13.5B Operating Profit, $381B Cash Mountain, No Buybacks Amid Buffett Exit Jitters
Berkshire Hathaway posted a 34% jump in third-quarter operating earnings to $13.485 billion, fueled by insurance underwriting income tripling to $2.37 billion from wholly owned units like GEICO and BNSF railroad. Overall profit rose 17% to $30.8 billion including investment gains.
Warren Buffett halted all share repurchases for the first nine months of 2025, pushing cash reserves to a record $381.6 billion. The conglomerate net-sold $10.4 billion in equities and closed a $9.7 billion cash deal for Occidental Petroleum’s OxyChem unit — its biggest acquisition since 2022.
Class A shares closed at $715,740, up 5% year-to-date but trailing the S&P 500’s 16.3% gain by 11 percentage points. Since Buffett’s May announcement that he’ll step down as CEO at year-end (with Greg Abel succeeding while Buffett stays chairman), B shares have fallen 11.5% from all-time highs, erasing a prior 22-point outperformance.
Analysts at Keefe, Bruyette & Woods downgraded to “underperform,” citing peaking GEICO margins, softer reinsurance rates, lower interest income, rail tariff risks, and fading energy tax credits — plus unique succession uncertainty without Buffett’s capital-allocation aura and limited disclosures.
Check this: Microsoft plans to hire more but with ‘a lot more leverage’ thanks to AI,.
BYD falls: Chinese EV giant BYD reported a 12% year-over-year drop in October vehicle sales, delivering 441,706 units compared to 502,675 in October 2024.
The decline follows a 33% plunge in third-quarter profit and a 3% revenue drop—the first in over five years—highlighting intensifying domestic competition.
💵 Personal Finance
Avoid These 3 Inherited IRA Mistakes to Protect Your Windfall
With over $100 trillion in wealth transferring through 2048, inherited IRAs are a growing windfall—but complex rules can trigger costly errors for non-spouse heirs like adult children.
Since 2020, most must empty the account within 10 years. Starting in 2025, many also face annual required minimum distributions (RMDs), with a 25% IRS penalty (reducible to 10%) for missed withdrawals.
Advisors highlight three key pitfalls and fixes:
Ignoring IRS Rules The 10-year rule and 2025 RMDs apply if the original owner was taking RMDs. Missing them risks penalties. Fix: Learn your obligations early; file Form 5329 to correct errors within two years.
Poor Tax Planning Pretax IRA withdrawals are taxable. Delaying most distributions until year 10 can spike taxes. Fix: Run multi-year projections; spread withdrawals, especially in lower-income years.
Keeping Original Investments Assets may not match your risk tolerance or timeline. Long-term CDs, for example, complicate RMDs. Fix: Reallocate based on your goals, taxes, and income needs.
Proper planning preserves more of your inheritance amid the "great wealth transfer."
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.