This week ahead || Oct 30 - Nov 3 2023
UAW leaders push ahead with Ford contract as GM talks drag
United Auto Workers President Shawn Fain is set to meet with local union leaders from Ford to begin the process of ratifying a new contract. Meanwhile, General Motors (GM) faces a setback as a strike was ordered at the Spring Hill, Tennessee, engine plant due to disagreements on issues like pension costs and temporary workers. GM is now the only Detroit automaker without a contract deal, while Stellantis and Ford have reached agreements with the UAW. The strike at Spring Hill may impact GM's production and increase costs, potentially exceeding the reported $400 million per week. UAW members will vote on contract ratification after local union officials explain the deals to them.
Fed meeting, Apple earnings: What to know this week
In the upcoming week, the focus will be on two major events: the Federal Reserve's policy decision and Apple's earnings. The recent market decline pushed the S&P 500 into correction territory, with significant losses across major indexes since August 1. Quarterly reports from tech giants like Alphabet and Meta received mixed receptions, while Microsoft and Amazon had more positive results. Other companies, including McDonald's, AMD, Caterpillar, Qualcomm, Eli Lilly, Pfizer, Airbnb, and DoorDash, will also report earnings. The Fed is expected to maintain rates in the 5.25%-5.50% range. The market is grappling with rising bond yields and concerns about the Fed's future policy direction. Some experts see the correction as further along than it may seem, with key stocks showing declines from recent highs.
Chevron's $53B Hess purchase; Western Digital's doomed merger: 5 big deal reports
Last week's noteworthy deals included Chevron's $53 billion all-stock acquisition of Hess to strengthen its portfolio, Western Digital's proposed merger with Kioxia being canceled due to opposition, Forward Air considering terminating its merger with Omni Logistics, Roche's $7.1 billion acquisition of Telavant Holdings for exclusive rights to an antibody aimed at treating inflammatory bowel disease, and EngageSmart's acquisition by Vista Equity Partners for about $4.0 billion in an all-cash deal. These transactions have significant implications for their respective companies and industries.
Alphabet's thrashing; Intel's recovery; Meta's warning: Weekly tech roundup
In the tech sector last week, Amazon reported robust Q3 earnings, beating estimates, while also cautioning about weaker customer spending. Microsoft posted strong performance, with higher-than-expected revenue in its Azure cloud business and optimism surrounding AI investments. On the flip side, Alphabet faced a cloud revenue miss, leading to a significant drop in its shares. Meta reported mixed results, with better-than-expected Q3 performance but softening ad demand in the current quarter. Meanwhile, Intel provided a positive forecast, benefiting from improved PC demand and strong Q3 earnings. These events showcased diverse dynamics in the tech industry, impacting stock prices accordingly.