• Stocks: Indexes rose thanks to enthusiasm around chipmakers and AI hardware, which expanded into the broader market.
• Commodities: Oil prices continued to fall on the heels of yesterday’s meeting between Iran and Saudi Arabia—joined by Pakistan and Turkey—amid hopes of deescalating tensions in the Middle Eastern conflict.
• Bonds: Treasury yields shifted upward as the Fed began its two-day meeting to decide on interest rates, with investors consolidating expectations that rates will hold steady.

Aerospace

Illustration: Morning Brew Inc., Photos: Adobe Stock

Boeing has finally found a number investors care about almost as much as 747. It’s 47—the monthly 737 Max production rate the company is trying to reach while wing and engine shortages get in the way.

The planemaker currently builds roughly 42 Max jets per month, and it had hoped to stabilize production by reaching 47 this year. But CEO Kelly Ortberg said while reporting earnings Tuesday that the milestone is probably out of reach until early 2027, even as investors push Boeing to get more planes out the door.

That delay explains a mixed quarter for Boeing’s biggest business. The company’s commercial airplane division lost $697 million, nearly twice what analysts expected, as deliveries stagnated. Boeing handed over 161 commercial aircraft in the third quarter, down from 171 in the previous three months. Shares sunk more than 10% today.

Problems on the factory floor

Boeing doesn’t have a shortage of customers: Airlines are already waiting years for new aircraft. The problem is getting all the pieces of those aircraft to show up at the same time.

Delayed wing production has slowed the 737’s ramp-up, while engine deliveries are also lagging. Boeing is running into the same problem with the 787 Dreamliner, where it wants to go from building eight planes a month to 10, but still can’t count on enough engines arriving on schedule.

And adding five more planes a month is not like adding five more sandwiches to a lunch order. Boeing’s entire supply chain has to speed up together. Wings, engines, fuselages, seats, electronics, workers, and inspections all need to be ready at the right moment. If one piece is late, the plane can end up sitting around unfinished while work gets pushed further down the line. That means more fixing, more costs, and a greater chance something goes wrong.

Boeing has very good reasons not to test that last part. After years of safety and manufacturing problems, Ortberg is trying to make sure the production system is stable before pushing it harder. “Everybody wants us to go faster,” he said on an investor call—but Boeing will only ramp up once it can do so safely.

The real turnaround test

For Boeing, more finished planes mean more cash. Aircraft makers collect a large chunk of a jet’s purchase price when they hand it over to the customer—so every delayed delivery also delays money Boeing could use to repair a balance sheet carrying $45.9 billion of debt.

There was some good news, though. Boeing generated $464 million in free cash flow last quarter, beating analyst expectations of roughly $325 million and keeping its full-year target of $1 billion to $3 billion within reach.

Aerospace companies may be enjoying major demand from airlines and governments, but supply-chain shortages mean demand alone doesn’t guarantee earnings growth. For investors, Boeing’s report is a useful reminder that a massive backlog is only as valuable as a company’s ability to work through it.—HC

      

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Stocks

🟢 What’s up

• Broadcom climbed 4.00% following a D.A. Davidson upgrade to Buy that highlighted the scale of its AI chip partnership with Anthropic that was revealed in the startup’s IPO filing.
• JetBlue Airways soared 18.99% after issuing an upbeat outlook despite a wider quarterly loss, as enduring travel demand helped offset higher fuel costs.
• SoFi Technologies surged 13.42% on strong earnings, fueled by booming consumer lending, while raising its full-year revenue outlook.
• Royal Caribbean rallied 5.39% after reporting higher quarterly profit and raising its full-year forecast on steady demand for cruises.
• Dell Technologies rose 7.36% after the launch of new cybersecurity tools designed to protect AI systems and infrastructure.
• Pentair jumped 12.74% after reaffirming its full-year earnings outlook and highlighting growing opportunities in data center cooling following its acquisition of Taco Group.

🔴 What’s down

• Xylem sank 14.26% after missing quarterly earnings and revenue expectations, plus cutting its full-year profit forecast.
• Innodata fell 25.32% following reports that the AI data services company laid off nearly 550 employees in India, along with additional staff in the Philippines.

Stat of the day

Say nay to MBA

Morning Brew, Inc., Photos: Adobe Stock

Future all-hands meetings may be looking a little sparse. New data finds that applications for full-time MBA programs at US business schools plummeted 27% this year for the class of 2028. Even the highest-ranked schools experienced declines.

The plunge tracks a few dynamics—mainly a drop in international applicants, who are discouraged by the Trump administration’s restrictive visa policies, along with increasing cynicism from younger Americans about potential returns on expensive degrees.

But an applicant drop doesn’t exactly spell defeat for the universities, at least among the most prestigious. That’s because for them, admissions aren’t their primary business plan. Today, elite colleges make mountains of money not from tuition, but from investing.

The admissions game

This month Harvard’s annual financial report revealed that the university’s endowment grew by over $11 billion in its 2026 fiscal year, thanks to a roughly 27% investment return. Stanford fared even better, with its endowment jumping more than 31%. That’s because both held big stakes in SpaceX pre-IPO—and they’re not the only universities placing endowment assets in Big Tech. Just see the University of Michigan’s $20 million investment in then-research nonprofit OpenAI, now worth an estimated $2 billion.

Universities with the largest endowments, like the Harvards and Princetons, dedicate up to 40% of their portfolios to risky classes like private equity and venture capital. The strategy was pioneered by Yale Chief Investment Officer David Swensen, who delivered the endowment average gains of 13.1% annually over his 35-year tenure.

But in recent years, universities have shifted to backing startups directly, bringing them even closer to tech. The Ivy League invests in major players like Alphabet and Meta, along with upstarts like Stripe, Figma, and Anduril.

In short? Maybe they won’t be turning out as many future executives. But education’s never been the main way elite colleges do business.—GR

Consumer goods

Morning Brew Inc., Photos: Adobe Stock

The economy might be losing its fizz, but unwavering devotion to carbonated sugar water is keeping at least one business afloat.

Coca-Cola reported a beat in both top and bottom lines today, with third-quarter sales climbing 7% to $13.4 billion and adjusted earnings per share rising 11% to 91 cents. Global sales volume also grew 5% last quarter, while Coke raised its full-year earnings outlook.

Much of that momentum came from international markets, including India, China, and Mexico. Meanwhile, North American beverage volumes remained flat, with growth in Coca-Cola’s flagship soda lineup offset by declining demand for water, sports drinks, coffee, and tea. Shares remained largely flat today.

Something for every thirst

Coca-Cola’s latest results show how the century-old soda giant is adapting to a consumer base that’s increasingly conscious of both its spending and its health.

The penny-pinchers: With US inflation accelerating to 3.7% in September, household budgets are feeling the squeeze. Rather than slashing prices across the board, Coke is offering smaller, lower-priced packages to keep its drinks affordable while charging a premium for brands like smartwater and Core Power. It’s a tricky balancing act as rising packaging and distribution costs threaten to eat into profits—but the company pulled it off.

The sugar-skippers: Coke is making sure consumers can cut back on sugar without cutting out its brands. Coca-Cola Zero Sugar volumes surged 16% globally last quarter, more than three times the growth of the broader Coca-Cola lineup, while Diet Coke rose 6%. For those looking beyond soda altogether, bottled water volumes climbed 8%, while Coke’s fairlife dairy brand benefited from demand for high-protein beverages.

A safer bubble

For investors, Coke has long been a relatively defensive bet, offering steady demand and dividends even when the broader economy gets shaky. That appeal has become particularly relevant as investors reassess expensive tech stocks and look for companies with more predictable earnings.

It makes sense then that elsewhere in the old-school economy, another familiar name delivered good news: UPS beat Wall Street’s expectations, with revenue climbing 6.7%, and raised its full-year outlook as cost-cutting and efficiency improvements paid off. Shares of the delivery giant gained 5.87% today.

It’s another reminder that established businesses can still deliver growth in an uncertain economy. And as speculation grows that an AI bubble could burst, perhaps there’s comfort to be found in a fizz that’s stood the test of time.—SY

      

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News

• GM is moving from the NYSE to the Nasdaq, because apparently the easiest way to look more like a tech company is dressing the part.
• Midwest gas-station chain Casey’s is rolling out cheaper, thicker pan pizza to steal dinner plans from fast-food rivals.
• Two Sigma is exploring a minority stake sale that could finally give its feuding co-founders an $85 billion tie-breaker.
• Wall Street quant firms are funding PhDs and building research labs to keep AI companies from stealing all the great math talent.
• High rates and home prices are pushing more young buyers to put their parents on the mortgage, turning the Bank of Mom and Dad into an actual lender.
• Halloween candy sales are down 6.7% as shoppers recoil from higher prices, making this year’s scariest monster the grocery receipt.

Calendar

It’s a landmark day for the economy, with the Fed announcing its decision on interest rates. Microsoft and Alphabet headline Big Tech earnings, joined by software giant ServiceNow and chip-equipment maker KLA. GE Vernova, Vertiv, T-Mobile, Santander, UBS, Deutsche Bank, eBay, Garmin, Ford, Chipotle, and GSK also report earnings.

recs

🥮 Say cheese. The Cheesecake Factory may be the subject of a culture war, but here’s why its stock is uniting investors.

🏆 Small victories. Morningstar suggests these are the three best smaller-cap stocks to have in your portfolio.

🥾 Hike for whom? The Fed may be holding rates tomorrow, but three hawkish signals can help you spot how many hikes we’ll have in future months.

🤖 “I do not save for retirement now.” This AI safety leader gave up on 401(k)s—because he thinks AI will kill us all in the next decade.

💊 Who’s HSA-maxxing? Here’s why you should max out your HSA, then not touch it for healthcare expenses.

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