October 11 (Wednesday)

Latest Morning Briefing Executive Summary: Bonds & Stocks
Fitch’s downgrade of US debt on August 1 was triggering for both the bond and stock markets. Bond yields since have soared, while S&P 500 companies’ collective valuation has staggered. Today, we examine the underlying issues that have kept yields elevated and the question of whether they’ve now risen high enough to attract sufficient demand to clear supply. … And: Joe shares stats on the MegaCap-8’s valuation declines since the end of July. Notwithstanding their valuation hits, these eight stocks now represent a slightly bigger slice of the S&P 500’s market cap, at a record-high 27.4%, than they did in July.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on October 9.

Markets
Extended war?: Markets may be underestimating Israel-Hamas conflict | C
Inured to edgy geopolitics, markets deflect risk | R
Oil bulls turned cautious before Middle East conflict | R
 
Central banks & credit
Higher Bond Yields Likely to Extend Fed Rate Pause | W
Daly Brings Higher R-Star Fears Back Into Mix for Bond Traders | B
Higher Interest Rates May Be Needed to Curb Inflation, Fed’s Bowman Says | B
The Fed is at odds with itself. That’s a feature, not a bug | NN
CPI: Clash of Inflation Expectations as Tighter Credit Bites | B
Muni Funds That Use Borrowed Money Take a Big Hit | W

US
Profits Are Making a Comeback | W
Worried about jobs? Inflation? The Fed? Let’s talk reality | P
Why America’s strike wave is barely registering on Wall Street | NN
Downsizing Your Home for Retirement Isn’t the Money Move It Used to Be | W
Tiny Homes Are the Hot New Homeowners’ Accessory | W

Geopolitics & trade
U.S., in Chip War with China, Extends Some Allowances for Asian Allies | W
China saves billions of dollars from record sanctioned oil imports | R

Industries & companies
Autos: GM, Canadian autoworkers union Unifor reach deal to end strike | C
Banks: Higher-for-Longer Interest Rates Worry World Bank as Debt Ripples Spread | B
Banks: JPMorgan (JPM), Citigroup, Banks Grapple With Worst Write-Offs in Three Years | B
Media: Europe gives Musk 24 hours to respond about Israel-Hamas war misinformation on X | C
Pharma: Shares of dialysis providers drop after Ozempic’s early kidney trial success | R

Corporate finance
Exxon Mobil agrees to buy Pioneer Natural Resources for nearly $60 billion in all-stock merger | C
Birkenstock prices IPO at $46 per share | C

Beyond markets
Does it Matter to You if AI Makes a Work of Art You Love? WSJ Readers Are Divided | W
What’s Changed for Crypto After FTX? Not Much. | W
Is the Eye the Window to Alzheimer’s? | W