| Plus, a big-bank bonanza holds surprises. |
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Good afternoon. Pour one out for your groupchat with the good work gossipāyour Slack DMs may soon be headed to the highest bidder. In their sprint to automate white-collar work, frontier AI giants are making six-figure offers for valuable training data, and they want workerās messages to do it. The exchange: AI developers offer hefty sums for employee Slacks, PowerPoints, and Google Docs, all priced by the terabyte; business owners hand them over and profit. How well it all works is TBD. As far as we can tell, any chatbot trained on Brew Markets DMs will spend a lot of time talking about bond routs, banker bonuses, and how to land a joke in a newsletter introduction. āHelena Cheng, Sissy Yan, and Gabriela Riccardi In todayās newsletter: - Wall Streetās mixed signals
- One headache for healthcare
- Bumble buzzes off the index
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| - Stocks: Major indexes remained relatively flat as traders sat with the weekās first batch of big-bank earnings.
- Commodities: Energy prices were mixed but relatively stable as President Trump defended his choice to ease restrictions on Russian diesel so that it can enter global markets.
- Bonds: Long-term Treasury yields lowered slightly thanks to energy prices evening out.
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Banks Wall Streetās money machine changes gears  Morning Brew, Inc. | Last week it seemed that Wall Streetās strategy for the first half of 2026 was: Pick a fee, any fee. Trading, underwriting, dealmaking, lendingāif money was moving, banks were finding a way to get paid, and they were making major profits doing it. Todayās big-bank earnings suggest the buffet is getting a little less all-you-can-eat. JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo all reported third-quarter earnings results today, including some strong successes: Goldman posted its second-best revenue quarter ever, Citi logged its strongest Q3 revenue in a decade, and Wells Fargoās profit rose 6%. But underneath those headline numbers, the boom is starting to diverge. Stock trading is red-hot. Fixed-income trading has softened. Investment banking remains healthy, but more uneven. And higher rates are giving traditional lending income a lift. After a first half when nearly every corner of Wall Street seemed to be pulling its weight, Q3 showed which lines of business are doing more of the heavy lifting now. Higher rates, reshuffling profitsThe Fedās latest rate hike helped push bond prices lower and made an already-volatile Treasury market even trickier. That weighed on parts of JPMorganās fixed-income business and contributed to securities losses at Wells Fargo. But the same environment has been a gift to equities desks. JPMorganās equities revenue jumped 49% year-over-year to a record $4.95 billion, Goldmanās surged 72% to $6.44 billion, and Citiās rose 14% as investors kept trading through the volatility. Fixed income was much weaker. JPMorganās revenue fell 4%, its first year-over-year decline in more than two years, while Goldmanās business slowed from Q2. Investment banking was more mixed, with JPMorgan saying that while activity moderated from its blowout Q2, fees were still up 14% year-over-year, and Goldmanās fees rose 21% from the same quarter last year. Meanwhile, higher rates are helping traditional banking get a cushion. JPMorgan raised its outlook for net interest income, while Citiās NII climbed 14% year-over-year. An economic cheatsheetThat divergence matters even if you donāt own a bank stock. Banks can see when companies want financing, investors begin repositioning, and consumers are still willing to spend. And so far, the message is still resilient. Wells Fargo said consumers are spending more, delinquencies remain low, and businesses still have strong balance sheets. JPMorgan CEO Jamie Dimon also pointed to solid business investment and consumer spending. For investors, that means the next stage of earnings season may be less about growthāand more about who can afford growth as capital costs more. Companies with strong cash flows and balance sheets have room to keep spending. Those that depend on cheap debt or frequent refinancing have much less. When Bank of America and Morgan Stanley report tomorrow, weāll see if that split is spreading across Wall Streetāand how it shakes out across the economy.āHC |
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Stocks  | š¢ Whatās up- Meta climbed 2.63% after launching Muse Wonder, a frontier-level family of AI models designed to compete with the industryās most advanced systems.
- Getty Images surged 15.65% after securing up to $533 million from the Getty family and Koch Equity Development in a bankruptcy restructuring that will take it private.
- Fermi jumped 14.46% after announcing an agreement with AMD tied to its data center infrastructure business.
š“ Whatās down- Samsung, Micron, and SK Hynix fell 7.39%, 3.62%, and 3.19%, respectively, after Chinese rival CXMT reported progress developing more efficient memory chips, raising concerns about increased competition.
- SpaceX sank 4.21% amid a broader selloff in AI-related stocks sparked by concerns about the memory chip market.
- Six Flags Entertainment plunged 14.43% following a deadly incident at its Six Flags Over Georgia amusement park.
- Johnson & Johnson slipped 5.73% despite beating quarterly earnings expectations and raising its full-year outlook, as disappointing sales in its medical technology business weighed on shares.
- Syndax Pharmaceuticals tumbled 15.71% after its experimental lung disease treatment delivered disappointing trial results.
- Dominoās Pizza dropped 4.76% despite an earnings beat, as sluggish sales growth highlighted continued pressure from budget-conscious customers.
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Stock of the day UnitedHealth outkicks its coverage  Morning Brew Inc, Photo: Adobe Stock | It seemed like a pretty premium day for UnitedHealth Group: Reporting third-quarter earnings, the healthcare giant outpaced Wall Street expectations and raised its full-year outlook, pushing UHG onward in its year-long turnaround campaign. The insurer has now gone three for three in strong earnings growth this year, helping reverse a rocky 2025. Last year saw UnitedHealth endure some serious ailsāits stockās worst day of trading in decades, its first annual revenue drop in over 30 years, and its CEO resigning in defeat, just to name a few. The company said it expects adjusted earnings of at least $20.50 per share for 2026, up from $19.50 to $20 per share. But investors think the company still has a ways to go: UnitedHealth stock closed relatively flat today. Healthy returnsAs the USās largest private health insurer by both revenue and market share, UHGās report helps diagnose the health of the industry at large. One persistent malady: higher medical costs, which have been giving private insurers headaches for over two years. Factors like the consolidation of health systems (which give hospitals greater power over prices), an uptick in specialized treatments (which bill higher), and demand for pricey pharmaceutical drugs (letās just say it: GLP-1s) all play in. But UnitedHealth is tackling the cost challenge by emphasizing low-cost and preventative care. The strategy seems to have worked in Q3: Expensive acute hospital admissions fell 15% year-over-year, while cost-effective home health admissions rose 10%. āWe think weāre really balancing both the quality and the cost,ā CEO Wayne DeVeydt told CNBC. It may be a triage strategy other insurers take up.āGR |
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Investing Bumble is off the market  Morning Brew, Inc. | For all the swiping your single friends are doing, the dating app business isnāt getting much love. Bumble will be acquired by investment firm Ithaca Holdings in a $1.3 billion deal that will take the company private. Itās a much-needed match for Bumble, whose five-year stint on Wall Street has been anything but romantic. Once valued at roughly $14 billion near its 2021 IPO, the company was worth just $335 million at Fridayās close. That said, Ithacaās $6.05-per-share buyout offer represents a 138% premium to that price, shooting shares up 56.58% today. The honeymoon is overItās not hard to see why the spark has faded. Between endless swiping, first dates that feel like job interviews, and three-month situationships that end in mutual ghosting, dating-app fatigue has become a familiar frustration. Younger singles are increasingly seeking more organic connections, posing a particular challenge for platforms whose business depends on keeping users engaged and paying for subscriptions. After all, a dating appās ideal success story is also a customer who no longer needs it. Bumbleās paying users fell 16.4% year-over-year to 3.2 million last quarter, while revenue dropped 15% to $211 million. Tinder also saw paying users decline 5%, as the industry struggles to convince singles that another premium subscription will improve their prospects. But not everyone is getting ghosted: Hinge, whose ādesigned to be deletedā tagline promises meaningful connections, grew revenue by 22% and paid users by 17% last quarter. Its success suggests that people havenāt necessarily given up on online dating. Theyāre just becoming more selective about which platforms are worth their time and money. Wall Street plays CupidItās now up to Bumbleās new leaders, former Sequoia Capital partner Ravi Gupta and ex-Meta executive John Hegeman, to see if Silicon Valley can revive modern romance. The co-CEOs will become the first men to lead the dating app that made its name on women making the first move. Whether the change can cure dating-app fatigue remains to be seen, but going private has its perks: Without Wall Street scrutinizing every quarter, Bumble will have more room to experiment and pursue a longer-term turnaround. The company has already been exploring AI-powered matchmaking and ways to help users meet beyond the swipe. For an industry desperate to win back users, Bumbleās makeover could be a sign of things to come. And with AI increasingly in the mix, donāt be surprised if your next match is a chatbot supposedly interested in your weekend plans.āSY |
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Calendar  | Weāll get a major economic indicator with the September CPI numbers. Plus, Bank of America, Morgan Stanley, BlackRock, and State Street continue our finance earnings spree, with additional earnings from semiconductor-equipment maker ASML, insurance company Progressive, and industrial supplier Fastenal. |
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recs  | š Hedge fund legend Paul Tudor Jones says the stock marketās in for a rocky ride in 2027ābut thereās good news before we get there. š¦ Howās that for a bank bonanza? One of the firms reporting earnings today could see its stock lift by 30%, thanks to a serious turnaround strategy. š College aid is changing. Get ahead of the new rules if you plan to look at federal student loans. šµ Some retirees are claiming Social Security early for all the wrong reasonsābut you can avoid the pitfalls by looking at these parts of your portfolio first. š Want to help your kids buy their first home? Hereās how to do it without things getting weird. *A message from our sponsor. |
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This time last week... | šø Readersā most-clicked story was about how high earners arenāt maxing out their 401(k)s anymoreāand theyāre going with these strategies instead. |
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ā³ļø A Note From iShares by BlackRock Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency and its return and yield will fluctuate with market conditions. An investment in fixed income funds is not equivalent to and involves risks not associated with an investment in cash. This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, āBlackRockā). BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. MKTG1026-MH-5983940-EXP1027 |
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