In partnership with
Good morning.
Things are moving fast in the stock market today. Don't blink, or you'll miss the most important earnings reports of the year.
Nvidia just became the first company ever to hit a $5 trillion market cap, and when NVDA moves, it typically drags other stocks with it. We're sharing two trade ideas that have surfaced in the wake of Nvidia's historic milestone: one big-cap play and one small cap.
Microsoft, Meta, and Google all reported earnings yesterday, and the results were… mixed at best. But one thing's clear: the market is devouring AI stocks, and all eyes are on Apple and Amazon's earnings reports dropping after the bell today.
Meanwhile, the US and China reached a trade deal that sent rare earths stocks up. Because even if both countries are playing nice for now, shouldn’t we be concerned about the day that stops?
All this and more below, but first, an investment opportunity from our partners at Surf Lakes:
In partnership with Surf Lakes
Final Day to Invest: Every City’s a Potential Surf Destination
Topgolf revolutionized golf by turning it into a social, tech-driven game for anyone. And they’ve made billions in annual revenue doing it. Surf Lakes is applying that same model to surfing, and investors can still join them until 10/30 at 11:59 PM PT.
This is a paid advertisement for Surf Lakes’ Regulation CF offering. Please read the offering circular at https://invest.surflakes.com
Please support our partners!
💹 Portfolio Practicals: Trading on Nvidia's $5T
Nvidia just crossed $5 trillion in market cap. When the king moves, the court follows. We found two trade setups from sharp Twitter traders that could benefit from NVDA's momentum. Neither is financial advice, and do your own research.
Big-Cap Nvidia Mimic Trade: Broadcom (AVGO)
Twitter trader Heisenberg pointed out that Broadcom and Nvidia tend to move in lockstep. Yesterday, NVDA rose 3% to push above $5T, and AVGO responded with a ~3% jump in after-hours and premarket trading.
The key: AVGO's market cap is only 40% of NVDA's, making it more sensitive to momentum swings. Heisenberg flagged AVGO as a "watch list" stock, referencing a similar setup from September.
Small-Cap Biotech AI Trade: Recursion Pharmaceuticals (RXRX)
Twitter trader Luc spotlighted Recursion Pharmaceuticals, a small biotech company that Nvidia has already invested in. RXRX currently sits at $5.87/share with a $2.58B market cap.
Luc's thesis: If Nvidia announces additional investment in RXRX, the stock could move significantly higher given the small float and AI hype cycle.
📰 Market Headlines
Markets wobbled on Wednesday after the Fed cut rates by 0.25% for the second straight meeting, bringing the benchmark range to 3.75%–4.00%.
The Dow slipped 0.2%, the S&P 500 stayed steady, and the Nasdaq added 0.55%.
🇺🇸🇨🇳 US-China Trade Deal Reached, 100% Tariffs Off the Table
The US and China reached a trade deal after what Trump called an "amazing" meeting. The 100% tariffs are gone. Instead, the US will lower tariffs on China overall, and the two countries struck a one-year rare earths agreement.
Rare earths stocks rose immediately, likely because China didn’t fully roll back its controls on rare earths exports to the US. Long-term (or at least for the rest of Trump's presidency), US rare earths companies should still perform well (assuming they can reach profitability).
Stocks like MP Materials (MP) and American Rare Earths (ARRNF) are down ~50% over the past two weeks over all, even though they’re up this morning. This could be a buying opportunity or at least dollar-cost averaging territory for investors with longer time horizons. Not financial advice.
💵 Fed Cuts 25bps But Powell Throws Cold Water on December
The Fed cut rates by 25 basis points yesterday, exactly as expected. What wasn't expected: Fed Chair Jerome Powell making it clear that another December cut isn't guaranteed.
"A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it," Powell said.
Even the announcement that the Fed will end quantitative tightening (i.e., the Fed will stop taking liquidity out of the economy) on December 1st couldn't lift markets. The S&P 500 sank 1% as traders digested the uncertainty around future cuts.
📊 Earnings Chaos: Winners, Losers, and Head-Scratchers
Eli Lilly (LLY) delivered a double beat this morning with higher-than-expected earnings and revenue. The stock jumped 5% in premarket trading.
Chipotle (CMG) cratered 15% after reporting that younger consumers are eating there less frequently, a troubling sign for the fast-casual chain's growth thesis.
Alphabet (GOOGL) surged 7% on stronger-than-expected earnings, proving that Google's AI integration and ad business remain resilient.
Microsoft (MSFT) fell 5% despite beating earnings estimates. The drop likely reflects profit-taking after a strong run, plus rising costs for the company.
Meta (META) plunged 10% after missing earnings due to a one-time $15.9 billion expense and increased AI capital expenditure. Some analysts are calling this a buying opportunity, arguing the AI spend will pay off long-term.
📱 Apple and Amazon Report After the Bell Today
All eyes shift to the remaining two Magnificent Seven companies. Amazon and Apple both report earnings after market close. Expectations are sky-high, and any guidance disappointment could trigger sector-wide selling.
😱 Fear & Greed Index
🤖 AI/Future/Tech News
Google teamed with NextEra Energy to revive Duane Arnold, a shuttered Iowa nuclear plant set to power its data centers with zero-carbon energy.
Bending Spoons moved to acquire AOL from Yahoo in a $2.8 billion debt-backed deal.
🪙 Crypto
Bitcoin tumbled 6% after the Fed’s 0.25% rate cut and announcement to end quantitative tightening.
Grayscale launched its Solana staking ETF (GSOL) on NYSE Arca, converting its old trust into a full ETF.
Visa added support for four new stablecoins across four blockchains, letting banks mint and burn tokens.
🤫 Insider Trading
🚚 Market Movers
Disney took control of a 70% stake in Fubo after the DOJ cleared the deal, creating the sixth-largest pay-TV provider with nearly 6 million subscribers.
Paradigm Talent Agency struck a partnership with Reign Maker Group to speed deals between creators and brands across digital platforms.
🎙 What Do You Think?
Will Apple meet earnings, beat earnings, or miss on earnings today?
🎤️ What you said last time
“Someone teach me about Calls n Puts in a way that makes some damn sense”
🧠 The Missing (Market) Links
OpenAI is apparently aiming to IPO at a $1 trillion valuation as soon as 2027.
Fed Chair Powell explained why the current AI boom is nothing like the 2000 Dot-Com bubble, which he reportedly called a “clear” bubble.
US housing affordability just hit an all-time low, officially surpassing the 2006 bubble. The average home now costs 4.4 times the median income.
CEOs from Olipop and Dave's Hot Chicken revealed the employee red flags that will get you fired.
📜 Quote of the Day
You will be much more in control, if you realize how much you are not in control.”
📢 We want to hear from you.
We love hearing from you, and we deeply appreciate your feedback.
⭐️ What did you think of today's edition?
That’s all for today. Did we miss anything? Smash the reply button to let me know.
Cheers,
Brandon & Blake of Invested Inc
The information provided in Stocks & Income is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Stocks & Income is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.
Stocks & Income, AltIndex, Finance Wrapped, The Chain, and Future Funders are all owned by Invested, Inc.