The S&P 500 just chalked up its worst October performance in three years, dropping more than 2%. The Nasdaq Composite had its worst October since 2018.<\/p>\n
Rising bond yields and escalating violence in the Middle East shoulder much of the blame for declines. Neither issue looks like it\u2019s going away any time soon.<\/p>\n
There\u2019s more bad news. Since 1928, the S&P hasn\u2019t typically bounced back much in November following a drop of 2% or more in October. It tends to average a gain of just 0.1%. So it\u2019s hard to count on seasonality to give shares a boost this month.<\/p>\n
Wednesday is policy decision day for The Federal Reserve, which at least appears to have completed the most aggressive campaign of interest-rate increases in a generation. But Chairman Jerome Powell still has a lot to worry about, and it\u2019s hard to rule out another one or two quarter-point rate hikes in the coming months.<\/p>\n
Economic data Tuesday showed wage growth is indeed cooling, but not as quickly as the Fed would like. The United Auto Workers managed to win a 25% hourly pay raise from Beyond this month, though, seasonality may help. December holds out the promise of a Santa rally, and institutional investors will often position big bets in January. But for now, brace for a cold November.<\/p>\n \u2014Brian Swint<\/em><\/p>\n *** Join MarketWatch real-estate reporter Aarthi Swaminathan and John Burns, CEO of John Burns Research and Consulting, today at noon when they discuss what\u2019s driving demand in the housing market, and what are home builders planning for the months ahead, as rates climb to 8%? Sign up here.<\/em><\/p>\n \n Advanced Micro Devices What\u2019s Next:<\/strong> Chip makers including AMD, \u2014Tae Kim and Liz Moyer<\/em><\/em><\/p>\n The Justice Department\u2019s challenge to Delta Air Lines,<\/span><\/p>\n Southwest Airlines,<\/span> What\u2019s Next:<\/strong> The government\u2019s antitrust trial is expected to last 20 days, and a decision is unlikely for another few months. If the merger is blocked on antitrust grounds, JetBlue has to pay Spirit and its shareholders $470 million as a breakup fee.<\/p>\n <\/em>\u2014Callum Keown and Janet H. Cho<\/em><\/em><\/p>\n WeWork may file for bankruptcy next week just months after the New York-based company raised \u201csubstantial doubt\u201d over its ability to stay in business. The short-term office-rental company is looking to file a chapter 11 petition in New Jersey, The Wall Street Journal reported, citing unnamed sources.<\/p>\n What\u2019s Next:<\/strong> The company had said its ability to continue as a going concern depended on the success of a turnaround plan that included cutting rent and tenancy costs and boosting new sales. A bankruptcy filing could give WeWork some breathing space to deliver on that turnaround.<\/p>\n \u2014Rupert Steiner<\/em><\/em><\/p>\n The Biden administration has proposed a rule to protect retirement savers from conflicts of interest during account rollovers. The White House highlighted so-called \u201cjunk fees\u201d in retirement planning that chip away at account balances, leading to lifetime savings that are up to 20% lower than they could have been.<\/p>\n What\u2019s Next:<\/strong> The proposal covers not just rollovers from 401(k) plans, but indexed annuities and commodities such as gold, which aren\u2019t regulated by the Securities and Exchange Commission, and recommendations to companies on what to offer in a 401(k) plan. Public comments will open for 60 days.<\/p>\n \u2014Janet H. Cho and Elizabeth O\u2019Brien<\/em><\/p>\n \n Zillow Group What\u2019s Next:<\/strong> NAR and HomeServices each said they plan to appeal the verdict. Keller Williams said it would consider all options, including appeal. The plaintiffs asked the judge to order changes to decades-old rules that helped lock in commission rates, but appeals could delay changes for years.<\/p>\n \u2014Janet H. Cho and Shaina Mishkin<\/em><\/em><\/p>\n <\/p>\n Dear Quentin,<\/p>\n My mother is in her late 80s and owns her home outright. Let\u2019s call my half-brother \u201cMatt.\u201d Matt has been designated my mother\u2019s power of attorney. My mother has told me that in her will, everything will be split 50\/50 between Matt and me. <\/p>\n Her house is the only valuable asset. She is considering adding both me and my half-brother to the deed of her house. I\u2019ve asked to see her will several times to verify her claim, and she has denied me every time, reiterating that everything is split 50\/50. <\/p>\n Matt has always been hostile toward me, and I do not trust him to cooperate or be fair. He has a history of doing this with other family property. I have cut Matt out of my life. I expect Matt to cheat me out of my share of the estate or delay probate to prevent me getting anything.<\/p>\n My mother has always favored Matt because he gave her grandchildren, and I did not. There is a second half-brother, Liam, who my mother claims to have cut out of her will because she says he \u201chas plenty of money,\u201d but I cannot confirm this. <\/p>\n Liam and my mother no longer have a relationship because of this. My mom and Matt live in the same state, and Liam and I live out of state to my mother. What can I do to ensure that I have a \u201cgood\u201d outcome, and don\u2019t get cheated out of my share of the estate by Matt or my mother? <\/p>\n
\n General Motors.<\/span>
\n That\u2019s great for employees, who haven\u2019t had much of a raise in years, but Powell may wonder if it sets a dangerous precedent for other workers who are still feeling the pinch of two years of high inflation.<\/p>\n***<\/h4>\n
AMD Issues Weak Guidance for Gaming and Other Chips<\/h2>\n
\n gave a disappointing revenue forecast for the December quarter as demand for gaming machine chips slows and sales of chips for industrial, automotive, and networking systems also weaken. AMD is the second-largest maker of chips for gaming machines, and supplies
\n Sony
\n and
\n Microsoft
\n consoles.<\/p>\n\n
\n Nvidia,<\/span>
\n and
\n Intel
\n face stricter rules on the export of chips to China, which is the largest market for chips, after Washington has raised national security protections as a reason to restrict shipments.<\/p>\n***<\/h4>\n
JetBlue\u2019s Deal for Spirit Arrives in Court on Antitrust Claims<\/h2>\n
\n JetBlue Airways
\n \u2019 $3.8 billion acquisition of
\n Spirit Airlines
\n began in Boston federal court on Tuesday. The government says JetBlue wants to eliminate competition and raise ticket prices, while JetBlue\u2019s lawyers say the merger would help JetBlue better compete with larger rivals.<\/p>\n\n
\n American Airlines,<\/span><\/p>\n
\n and
\n United Airlines.<\/span><\/p>\n<\/li>\n***<\/h4>\n
WeWork Plans to File for Bankruptcy Soon, Says Report<\/h2>\n
\n
***<\/h4>\n
White House Moves Its \u2018Junk Fee\u2019 Fight to IRA Rollovers<\/h2>\n
\n
***<\/h4>\n
Real Estate Stocks Fall After Ruling Against Realtor Groups<\/h2>\n
\n and other real estate stocks dropped after a Missouri jury found the National Association of Realtors and other large residential brokerages colluded to keep home sales commissions artificially high and awarded $1.785 billion in damages. \u201cThis matter is not close to being final,\u201d NAR said.<\/p>\n\n
\n Redfin
\n dropped 5.7%, and
\n Compass
\n brokerage lost 6.2%. Zillow reports earnings today.<\/p>\n<\/li>\n
\n Re\/Max
\n and Anywhere Real Estate settled with plaintiffs earlier this year and agreed to pay nearly $140 million combined<\/strong>. Analysts say the case and others like it could change the way brokers are paid, reduce commissions, and slash agent head count.<\/p>\n<\/li>\n***<\/h4>\n