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Wall Street Brunch: Hooray For DevDay
MicrosoftMicrosoft(US:MSFT) Seeking Alphaยท2025-10-05 18:16

Economic Impact of Government Shutdown - The government shutdown is predicted to last nearly 21 days, with a 64% chance of exceeding 15 days and a 40% chance of lasting more than 25 days [3] - Goldman Sachs estimates that each week of the shutdown will reduce fourth-quarter annualized real GDP growth by approximately 0.15 percentage points, with a corresponding positive effect on growth in the first quarter if the shutdown ends before then [4] AI Sector Developments - OpenAI, backed by Microsoft, reached a private market valuation of $500 billion, making it the world's most valuable startup [6] - Speculation surrounds OpenAI's upcoming DevDay event, where CEO Sam Altman may unveil a new AI-powered browser, potentially named Aura, to compete with Google's Chrome [5] Earnings Reports and Company Performance - PepsiCo is expected to report EPS of $2.26 on revenue of $23.86 billion, with activist investor Elliott Management advocating for strategic changes to improve bottling efficiencies [8] - Delta Air Lines is forecasted to post EPS of $1.53 with revenue of $15.94 billion, with analysts noting its strong execution compared to peers, presenting a potential buy opportunity [9] Cryptocurrency Market Trends - Bitcoin has surpassed $125,000 for the first time, driven by strong inflows into bitcoin ETFs and renewed institutional interest [11] Consumer Sentiment and Economic Indicators - The upcoming FOMC minutes will be closely monitored, with an 85% chance of two more quarter-point rate cuts this year [10] - The University of Michigan will release its preliminary measure of October consumer sentiment, following a decline in consumer confidence to a five-month low [10] Pharmaceutical Developments - Costco will offer weight loss medications Wegovy and Ozempic at half the list price to its members, following a partnership with Novo Nordisk [12]