- Fed day. No interest rate hike expected. Everybody is wondering about whether central bankers are still committed to higher for longer. The October-November meeting ends Wednesday afternoon. Policy statement at 2 p.m. ET and Fed Chairman Jerome Powell news conference at 2:30 p.m. ET.
- Treasury Department on Wednesday morning details plans to accelerate the size of bond auctions to handle government debt load in high-rate environment. The 10-year Treasury yield dips to 4.86%. The announcement comes as Treasury yields bounce around near their highest levels since 2007.
- Ahead of Friday’s government jobs data, ADP reports less than expected private-sector job growth in October and the smallest annual wage gain since October 2021. The Dow, the S&P 500 and the Nasdaq are set for a mixed open on the first day of November, historically the strongest month of the year. October: not so much. S&P 500 dropped 2.2% for the month. But these 10 portfolio names beat the market.
- Club name Estee Lauder (EL) reports a surprise profit in its fiscal 2024 first quarter and revenue that matched estimates. But issues very disappointing fiscal Q2 and full-year earnings and revenue guidance. Accelerates and expands the company’s profit recovery plan. Estee Lauder shares were sinking 16%. Just no handle on the situation. The stock has not hit bottom yet. Disaster. What happened to Fabrizio Freda? Did the CEO who has such a strong track record lose it?
- Club name DuPont (DD) beat on third-quarter earnings but missed on revenue. Full-year revenue guidance was lowered and below expectations. The stock was dropping 3%.
- Club name Humana (HUM) beats on third-quarter earnings by 62 cents with $7.78 per share. Revenue also beat. Reaffirms guidance. Raises 2023 individual Medicare Advantage membership growth. Sees MA growth in 2024 at or above industry. Conservative prediction. The stock was dropping nearly 3%.
- Is Club name Caterpillar (CAT) the disaster people think it is? Or is this what you have to buy when the Fed tightening cycle ends?
- Disney (DIS) sees outside strategic investors. So what is ESPN worth? I think that Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL) all covet what ESPN has. DIS, AAPL, AMZN and GOOGL all Club stocks.
- Advanced Micro Devices (AMD) issues better-than-expected earnings and revenue in the third quarter. But warned on outlook. AMD, a former portfolio position, is in the CNBC Investing Club’s Bullpen watch list. Shares were down 1%. I like what I heard on the high-end AI products.
- Barclays upgrades General Motors (GM) and Club name Ford (F) to overweight from equal weight (buy from hold). The analysts call both stocks “historically cheap” on a valuation basis. Bernstein upgrades Chrysler-owner Stellantis (STLA) to outperform from market perform (buy from hold) and raises price target. The analysts see 2024 headwinds but some growth opportunities, too.
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