Jerome Powell, chairman of the US Federal Reserve, during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, Oct. 29, 2025. Al Drago | Bloomberg | Getty ImagesFederal Reserve Chair Jerome Powell faces if not the most difficult challenge of his time in office at least the trickiest in his final months as head of the all-powerful U.S. central bank.Fresh off his surprisingly tough talk Wednesday on the potential for another interest rate cut in Decem ...

Market Overview - The S&P 500 and Nasdaq experienced declines due to post-earnings slumps from Meta Platforms and Microsoft, with shares down 10% and 3% respectively despite better-than-expected quarterly results [1] - The Federal Reserve announced a widely expected interest rate cut for the second time this year, influencing market sentiment [1] Company Updates - Honeywell completed the spin-off of its advanced materials business, now known as Solstice Advanced Materials, which began trading under the ticker "SOLS" on Nasdaq [1] - Honeywell shareholders received one Solstice share for every four shares held, with BMO Capital Markets initiating coverage of Solstice with a buy-equivalent rating and a price target of $70, compared to an initial trading price slightly below $50 [1] - Solstice shares rose nearly 6% on debut, reaching an intraday high of approximately $54, while Honeywell's stock remained flat [1] - DuPont is set to complete the split of its electronics business, Qnity Electronics, next week, with the stock joining the S&P 500 and trading under the "Q" ticker [1] Financial Insights - Goldman Sachs CEO David Solomon addressed concerns regarding the bank's stock drop post-earnings, emphasizing strong profit growth and the bank's leadership in investment banking and M&A [1] - Solomon noted that Goldman's trading businesses have increased their wallet share with clients by 380 basis points over the past five years [1] - Solomon described the U.S. economy as being in "pretty good shape" and indicated a low chance of a near-term recession, highlighting a significant investment boom in AI infrastructure with large companies expected to spend $350 billion this year [1] Upcoming Earnings - Apple and Amazon are scheduled to release earnings on Thursday night, alongside cybersecurity firm Cloudflare [1] - Club stock Linde will report results before Friday's opening bell [1]

Core Points - The U.S. government shutdown has led to air traffic controllers missing their first full paychecks, increasing stress among essential workers [2][3] - Delta Airlines has urged Congress to pass a clean continuing resolution to reopen the government and ensure air traffic controllers are paid [2] - The ongoing shutdown has exacerbated a staffing shortage, with 3,800 fewer fully certified controllers than the FAA's target [3] Economic Impact - The Congressional Budget Office estimates that a four-week shutdown could cost the economy at least $7 billion, with costs rising to $11 billion for six weeks and $14 billion for eight weeks [5] - Although there have been flight delays at several U.S. airports, the disruptions have not reached the severity seen during the longest shutdown from late 2018 to early 2019 [6] Safety Concerns - The shutdown is causing air traffic controllers to shift their focus from safety tasks to financial uncertainties, which could compromise the safety of the National Airspace System [4]

Core Insights - Rigel Pharmaceuticals has experienced substantial growth, with an average increase of 30% over the past four years and approximately 50% growth this year [1] - The company's stock has surged about 50% in the last three months, making it one of the top-performing stocks in San Francisco [1][2] Financial Performance - In the second quarter, Rigel reported earnings of $3.28 per share, exceeding analyst expectations of $2.58 per share [3] - Revenue for the quarter was $101.7 million, significantly higher than the consensus estimate of $88.9 million [3] - The company raised its full-year revenue guidance to a range of $270 million to $280 million, up from the previous forecast of $200 million to $210 million [3] Product Portfolio - Rigel has three drugs currently on the market: Tavalisse for chronic immune thrombocytopenia, Gavreto for lung cancer, and Rezlidhia for acute myeloid leukemia with IDH1 mutation [4] - The company is advancing two clinical programs, one in partnership with Eli Lilly for Ocadusertib and another for R835, targeting lower-risk myelodysplastic syndrome [5] Clinical Trials and Future Outlook - Rigel is expanding its clinical trials to include a larger patient population, with more definitive data expected by the end of next year [6] - The company plans to present data on R835 at the American Society of Hematology meeting in December [5][6] - The next quarterly results are anticipated to be announced on November 4 [6]

Core Insights - Hurricane Melissa, a Category 5 storm, made landfall in Jamaica, likely triggering a full payout from a $150 million catastrophe bond designed for the island [1][2][3] Group 1: Catastrophe Bond Details - The catastrophe bond, structured by Aon, provides parametric coverage for Jamaica against losses from named storms, effective through 2027 [2] - Jamaica is the first Caribbean government and the first small island state to independently sponsor a catastrophe bond, showcasing the value of private market funding [3] - The bond's payout is contingent on the storm's central pressure being at or below 900 millibars upon landfall [3][4] Group 2: Payout Process and Timeline - Early data indicates Hurricane Melissa's pressure remained below 900 millibars in several areas, with verification ongoing [4] - The review process for payouts typically takes 2 to 3 weeks, with potential payouts to Jamaica occurring in approximately 1 month [5] - Aon utilized innovative data sources to facilitate faster payments for this event compared to previous transactions [5] Group 3: Market Context and Growth - The catastrophe bond market has grown over 50% since the end of 2022, reaching nearly $55 billion, indicating increasing popularity of such financial instruments [8] - Public-private partnerships, like Jamaica's, demonstrate how parametric insurance can provide rapid and transparent relief after severe storms [8]

While the Federal Reserve cut its benchmark interest rate this week, mortgage rates responded by doing just the opposite.The average rate on the 30-year fixed mortgage has jumped 20 basis points since Chairman Jerome Powell announced the cut on Wednesday and held a news conference, according to Mortgage News Daily.This happened the last time the Fed lowered its rate as well, and the reason is pretty simple: the bond market had already priced in a cut, but it didn't like the commentary from Powell.On Tuesday ...

Core Viewpoint - Roblox shares fell 10% due to expectations of increased capital expenditures that may pressure margins [1] Financial Performance - Roblox's third-quarter revenue increased by 48% year-over-year to $1.36 billion, while bookings surged by 70% to $1.92 billion, surpassing LSEG estimates of $1.65 billion [3] - The company reported a loss of 37 cents per share, which was better than analyst expectations of a loss of 49 cents per share [3] Capital Expenditures and Margins - The company anticipates capital expenditures of $468 million, an increase of $158 million from previous guidance [1] - Operating margin may decline slightly year-over-year due to higher Developer Exchange (DevEx) rates and investments in infrastructure and safety [2]

Core Insights - Chipotle Mexican Grill's shares dropped as much as 19% in morning trading after the company lowered its full-year same-store sales forecast for the third consecutive quarter, resulting in a 45% decline in stock value this year and a market capitalization of approximately $43 billion [1] - At least five Wall Street analysts have revised their price targets downward, reflecting concerns over the company's declining traffic and negative outlook [1] Sales Performance - In the third quarter, Chipotle reported a same-store sales increase of 0.3%, but experienced a decline in customer traffic [3] - The average price of Chipotle's burritos and bowls is around $10, yet consumers often perceive the average prices to be closer to $15, similar to its fast-casual competitors [3] Analyst Commentary - Citi analyst Jon Tower expressed uncertainty about the sales bottom due to various factors affecting demand, lowering his price target from $54 to $44 per share [2] - BTIG analyst Pete Saleh noted surprise at the significant traffic decline and questioned whether affordability concerns were the primary issue driving this weakness [4]

Financial Performance - Alphabet reported third-quarter earnings of $3.10 adjusted per share on revenue of $102.35 billion, marking its first quarter with revenue exceeding $100 billion [3] - Analysts had expected earnings of $2.33 per share and revenue of $99.89 billion, indicating a significant beat on both metrics [3] Capital Expenditures - The company increased its capital expenditure expectations for artificial intelligence infrastructure to $91-$93 billion from $85 billion, reflecting strong demand in the cloud sector [1] - CFO Anat Ashkenazi indicated a significant increase in CapEx is expected looking out to 2026 [2] Market Reaction - Following the earnings report, Alphabet's stock jumped 4%, with Deutsche Bank noting that the report had "virtually no hair on the print" and highlighting the stock's 43% increase since the second-quarter earnings release [1][2]

Wednesday's Federal Reserve decision, along with expectations that the Fed could cut interest rates again before the end of the year, may put more downward pressure on mortgage rates — finally providing a little relief for would-be homebuyers.A 30-year, fixed-rate mortgage fell to 6.3% for the week ended Oct. 24, according to the Mortgage Bankers Association.Although mortgage rates are now at their lowest level since September 2024, the average rate for a 30-year, fixed-rate mortgage is still significantly ...