EU’S GENERAL COURT UPHOLDS AN ANTITRUST RULING ISSUED TO ALPHABET

In 2018, Google was fined for allegedly violating anti-competitive practices with its use of the Android Operating System to promote the Google search engine. Google’s appeal that Android devices should be viewed as competitors to Apple products and that users could remove Google apps was unsuccessful. The only consolation was that Google’s fine, which was the largest ever issued by the European Union, was lowered by 5% to approximately €4.12 billion. Such a ruling indicates that the EU is standing firm on ensuring big tech companies are not engaging in anti-competitive behavior. Google stated that Android “has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world.”

THE BUREAU of LABOR STATISTICS RELEASES AUGUST’S CONSUMER PRICE INDEX

The CPI reading rose by 8.3%, down from 8.5% in July. Core CPI, which excludes food and energy prices, increased 6.3% in August. Despite the University of Michigan’s consumer sentiment survey showing one-year inflation expectations falling to 4.6% in September, the Dow Jones fell by 1200 points, the worst one-day fall since June 2020. This influenced the recent rise in the average rate on a thirty-year mortgage, which jumped to over 6% for the first time since 2008. The Euro dipped below parity, as traders anticipated larger rate hikes in the U.S. alongside an economic slowdown in Europe. The CPI data led the CME’s FedWatch Group to believe there is a 40% chance that the Federal Reserve will announce an increase to the discount rate by as much as 1% during its meeting from Sep 20 – Sep 21.

Abbott to Spin Off Nutrition Business Into Independent Company

Abbott plans to separate its global Nutrition business into an independent, publicly traded company by the end of 2027. The new company is expected to generate approximately $8.5 billion in annual sales, while the remaining Abbott business will be more concentrated in higher-growth areas such as medical devices, diagnostics, biowearables, and established medicines.

The Nutrition company will include major brands such as Similac, PediaSure, Pedialyte, Glucerna, and Ensure and will be led by Daniel Salvadori, currently Abbott’s executive vice president and group president for Established Pharmaceuticals and Nutritional Products. The separation also distances Abbott from a nutrition unit that has faced slower growth, infant-formula market-share pressure, and years of litigation.

Abbott intends to complete the transaction through a tax-free distribution of shares to existing shareholders, meaning investors would own shares in both Abbott and the new Nutrition company after the separation. Abbott expects one-time separation costs but says the transaction will not affect its 2026 guidance or the 2027 guidance it plans to provide in January.

Source: The Wall Street Journal — Abbott to Carve Out Nutrition Business Into Independent Company

Salesforce to Buy Braze in a $5.7 Billion Deal:

Salesforce agreed to acquire customer-engagement platform Braze for approximately $5.66 billion in enterprise value, including debt. Braze shareholders will receive $47.50 in cash per share, representing about a 58% premium to the company’s prior closing price, as Salesforce continues expanding its AI and marketing capabilities.

Braze helps companies respond to customer behavior in real time and deliver personalized experiences across mobile apps, websites, email, SMS, WhatsApp, and other channels. It serves roughly 2,770 customers, including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters, and Venmo, and its BrazeAI tools optimize content, offers, channels, and timing.

The acquisition is expected to close in Salesforce’s fiscal 2028, subject to Braze shareholder and regulatory approvals, and Salesforce does not expect the deal to change its fiscal 2027 guidance. Strategically, Braze would add a real-time consumer engagement layer to Salesforce’s Marketing Cloud and strengthen the company’s position as software providers compete to integrate AI into customer relationship management.

Source: The Wall Street Journal — Salesforce to Buy Customer Engagement Platform for Nearly $5.7 Billion

Demand for Apple’s New Foldable iPhone Significantly Outpaces Supply

Apple’s iPhone Duo, the company’s first foldable iPhone, went on sale Friday for about $2,000 and immediately faced supply shortages. U.S. online orders were experiencing an average shipping delay of roughly 92 days, and Apple’s website was quoting some delivery dates into January shortly after sales opened.

The launch has generated strong interest despite mixed reviews. Reviewers praised the Duo’s large inner display, long battery life, and durability, but criticized its heavy weight, cramped outer screen, mediocre camera, and awkward buttons. The device represents one of Apple’s biggest changes to the iPhone since its original 2007 launch and gives the company an entry into the foldable-phone market.

The early backorders suggest demand is currently exceeding Apple’s available supply, making production capacity an important factor in the launch. Longer term, Apple will need to increase supply while improving first-generation weaknesses and encouraging more apps to take advantage of the larger foldable display.

Source: The Wall Street Journal — Apple’s New iPhone Duo Is Already Facing Supply Shortages

Tesla and SpaceX Explore Potential Mega-Merger

Elon Musk said Tesla and SpaceX have each formed special committees of independent directors to explore a potential merger, although no terms have been agreed to and there is no guarantee a transaction will occur. With Tesla valued at roughly $1.5 trillion and SpaceX above $2 trillion, a combination would create one of the largest publicly traded companies in the U.S.

The companies already overlap in areas such as artificial intelligence, chips, robotics, and connectivity, which Musk has cited as areas where closer cooperation could create benefits. SpaceX has also been investing heavily in AI infrastructure, Starship development, and satellite production, while its Starlink business has helped drive rapid revenue growth.

SpaceX reported $4.4 billion in third-quarter profit as revenue growth accelerated, but the company is also spending heavily to fund expansion. Those investment needs make potential financing benefits from a combination with Tesla especially important to investors evaluating the strategic rationale.

A merger would still face major questions surrounding valuation, corporate control, financing, and shareholder approval. Musk has acknowledged that he is a conflicted party and is not participating directly in the committees’ negotiations, while Tesla shareholder support would be a key hurdle before any deal could move forward.

Source: The Wall Street Journal – Tesla and SpaceX Formed Committees to Discuss Potential Merger, Elon Musk Says

Meta’s Higher AI Spending Plan Hits Tech, While Defensive Stocks and Homebuilders Rally

Meta Platforms led a broad tech selloff Thursday after raising its AI spending plan. It beat third-quarter revenue estimates and guided higher, but lifted the low end of its 2026 capital expenditure forecast to $135 billion from $130 billion. Free cash flow was negative $2.12 billion, and the stock fell about 6%, erasing roughly $108 billion in market value by midday. benzinga

Worries about funding spread after Nvidia CEO Jensen Huang said scarce capital is holding back “neocloud” providers. CoreWeave fell 8.3%, and chipmakers fell hardest: Lam Research dropped 9.7%, AMD 6.7%, Micron 4.8% and Nvidia 3.6%. The technology sector ETF (XLK) lost 2.7%, the S&P 500 fell about 1% and the Nasdaq 100 fell 2.3%. benzinga

Investors rotated into defensive sectors. Consumer staples (XLP) rose 2.5% as Procter & Gamble jumped 6.3% on 4% organic sales growth. Health care (XLV) added 1.6% on strength in Johnson & Johnson. Lower rates also lifted housing, with the home construction ETF (ITB) up 4.8%, Lennar up 7.2% and Zillow up 8.6%. benzinga

Meta’s results show the funding question investors keep raising about AI spending. Revenue is strong, but heavy capital spending is now outpacing the cash the business generates.

Source: https://www.benzinga.com/markets/equities/26/10/62539017/meta-ai-spending-10-year-yield-below-5-stock-market-today

Brent Crude Hits Highest Level Since May as Aramco Evacuates Headquarters

Oil prices spiked Thursday, October 22, as investors feared escalation in the Middle East, with the U.S. reportedly planning to resume strikes against Iran. Brent crude futures gained 4% to close at $113.17 a barrel, the highest since May 4, and West Texas Intermediate gained 2.4% to settle at $99.47. Brent had settled near $109 on both Tuesday and Wednesday. CNBCinvesting

Saudi Aramco told staff to evacuate its Dhahran headquarters, according to six people with knowledge of the matter. The company did not immediately comment, and it would be Aramco’s first evacuation since the start of the Iran war. The Houthis caused extensive damage to the headquarters earlier this month when they struck the building. A Houthi attack on King Fahd International Airport in Dammam on Wednesday evening killed two people and wounded eight. Reports reviewed by one outlet do not indicate that the evacuation affects Aramco’s output or exports. yahooeasternherald

Prices also rose after President Trump denied talks with Iran and The New York Times reported U.S.-Israeli plans for renewed strikes after Election Day. Trump separately accused Iran of trying to push up oil prices ahead of the midterms. benzingagulfnews

One portfolio manager noted that $100 oil is less damaging than it was decades ago, because consumers are less vulnerable to energy shocks and prices remain below inflation-adjusted historical highs. Still, higher oil feeds the inflation concerns behind the Fed’s expected December hike. CNBC

Source: https://www.cnbc.com/2026/10/22/oil-prices-today-wti-brent-saudi-arabia.html (additional Reuters report: https://ca.news.yahoo.com/saudi-civil-aviation-says-one-222132024.html)

Economists Expect Fed to Hold in October, Then Hike in December

A Reuters poll of economists conducted October 16–20 found that 94 of 100 expect the Fed to keep its benchmark rate at 3.75%–4.00% at its October 27–28 meeting. All 100 expect another quarter-point increase in December, a sharp change from September, when fewer than half expected another hike. Nearly 60% of forecasters see the peak policy rate at 4.00%–4.25%, and 38 of 92 now predict at least two more hikes. cutodaytradersunion

The September consumer price index showed prices up 3.7% from a year earlier, the last major inflation reading before the meeting. Market pricing reflects the poll. Futures show only about a 17% chance of a hike this month, versus roughly 90% for December. PIMCO expects a hold with a clear tightening bias, noting that Warsh has steered markets away from expecting back-to-back hikes. Fed Interest Rate Hike Seems More Likely This Month After Alarming Inflation Data +2

Warsh has offered little guidance on the Fed’s next move. One analyst preview expects two to three votes in favor of a hike, and notes that Governor Waller sees more hikes ahead but is flexible on timing. Some economists in the poll argue the Fed is falling behind on inflation. The decision comes six days before the November 3 midterm elections, and the Fed releases its statement at 2:00 p.m. ET on Wednesday, October 28, with a press conference to follow. The December meeting is December 8–9. Reuters Poll: Fed Expected To Hold Rates In October, Raise Them Again In December / Fresh Today / CUToday.info – CU Today +2

10-Year Treasury Yield Falls Below 5% as Tech Selloff Sends Investors to Bonds

Treasury yields dropped sharply on Thursday, October 22, as a broad tech selloff pushed investors toward safer assets. The 10-year yield fell about 12.5 basis points to 4.99%, on track for its largest one-day decline since August 1, 2025, and its first close below 5% since September 22. The 2-year yield fell about 12 basis points to 4.69%, and the 30-year fell about 9 basis points to 5.32%. benzinga

Earlier in the week, yields were little changed. On Wednesday, October 21, the 10-year sat near 5.12%–5.15%, the 2-year near 4.81%, and the 30-year above 5.4%, as investors waited for fresh data ahead of the Fed’s October meeting. The Fed was in its pre-meeting “blackout” period, and economic data was quiet after the previous week’s hotter inflation readings. The Treasury also sold $13 billion of reopened 20-year bonds on Wednesday. CNBCinvestrade

Thursday’s economic data was mixed. Initial jobless claims fell to 194,000, below the 200,000 economists expected, and the Conference Board’s leading economic index was unchanged in September, versus an expected 0.2% decline. The bond rally pulled the average 30-year mortgage rate, as tracked by Freddie Mac, down to 7.32% from 7.40%. benzinga

Falling yields did not come from calmer inflation worries. Oil climbed the same day, and economists still expect the Fed to raise rates in December, so the move reflects a flight to safety more than a change in the rate outlook.

Source: https://www.benzinga.com/markets/equities/26/10/62539017/meta-ai-spending-10-year-yield-below-5-stock-market-today (additional: https://www.cnbc.com/2026/10/21/bonds-us-treasurys-yields.html)

AI Selloff Raises Concerns About Financing Costs

Technology shares came under pressure as investors questioned the borrowing supporting the AI infrastructure boom. In an October 18 column, The Wall Street Journal’s James Mackintosh examined how hot inflation and expensive financing could threaten debt-funded data-center investment.

The selloff highlighted a growing concern: strong demand for AI does not remove the financial risks companies face when funding large expansion plans.

Building data centers requires substantial upfront investment in equipment, facilities, and power infrastructure. The revenue needed to recover those costs may arrive over a much longer period. Companies therefore need to manage the gap between spending money today and collecting cash from customers later.

Debt can help finance that expansion, but it creates payment obligations regardless of whether a project meets expectations. Higher interest rates make new borrowing more expensive and can increase costs when existing debt must be refinanced.

This creates a distinction between demand for a technology and the financial returns earned by companies investing in it. AI use can continue growing while some businesses struggle with high costs, competition, or slower-than-expected customer payments.

For investors, the key questions extend beyond revenue growth. Cash flow, interest expenses, debt maturities, and access to financing all help determine whether a company can sustain its plans. The broader concern is whether the financial commitments behind the AI buildout can be supported by the earnings it ultimately produces.

Source: The Wall Street Journal — The AI Stock Market Wobble Is a Reminder: This Time Isn’t Different

Treasury Yields Fall as Investors Seek Safety

Investors turned to government bonds on October 15 as concerns about economic growth and high borrowing costs outweighed inflation worries. U.S. Treasury and German government bond yields fell to multiweek lows, with the 10-year Treasury yield reaching 5.038%, its lowest level in three weeks.

Despite strong inflation and retail sales data, worries about debt-financed AI infrastructure encouraged demand for safer assets, pushing government bond prices higher and yields lower.

Bond prices and yields move in opposite directions. When investors buy an existing bond at a higher price, its fixed interest payments represent a smaller return relative to the purchase price. Its yield therefore falls.

The move showed how different forces can influence the bond market at the same time. Persistent inflation can push yields higher because investors seek compensation for the declining purchasing power of future payments. Concerns about economic growth can have the opposite effect by encouraging purchases of government debt.

High borrowing costs also matter for companies financing large projects. Businesses must generate enough cash to cover interest payments while continuing to fund operations. Investors may become more cautious when projects require substantial spending before producing reliable revenue.

For investors holding both stocks and bonds, the episode illustrated how government bonds can provide some protection during an equity selloff. That relationship is not guaranteed, however, because inflation and interest-rate expectations can affect both markets.

Source: The Wall Street Journal — Treasury, Eurozone Bond Yields Fall as Risk Aversion Beats Inflation Fears