What happened last week…
Meeting minutes were released from the Federal Reserve’s September gathering where interest rates were reduced by 25 basis points to 4.00% to 4.25%. According to the minutes, “Participants expressed a range of views about the degree to which the current stance of monetary policy was restrictive and about the likely future path of policy. Most judged that it likely would be appropriate to ease policy further over the remainder of this year.” The current forecast is for two additional quarter-point rate reductions by the end of this year. The Federal Open Market Committee meets next on October 28-29.
Tesla(TSLA) unveiled its less costly version of the Model 3 and Model Y, calling each the standard version. The Model 3 Standard is priced at $38,630 while the Model Y Standard will cost $41,630. The lower cost models come after the recent expiration of the $7,500 electric vehicle tax credit.
Verizon Communications(VZ) has named Dan Schulman as CEO, effectively immediately. Schulman, who was once the CEO of PayPal (PYPL), replaces current CEO Hans Vestberg, who has been in the role since 2018 and will now serve as Special Advisor through October 4, 2026 to ensure a “smooth transition including the integration with Frontier Communications, which is expected to close in the first quarter of 2026.” Last week, a deal was made with AST SpaceMobile (ASTS) for Verizon to provide cellular service from space starting next year.
Earnings seasonis set to kick off. According to FactSet, as of October 10, for Q3 2025, S&P 500 companies are expected to show earnings growth of 8.0% with revenue growth of 6.3%. For CY 2025, the projection is for earnings growth of 10.9% and revenue growth of 6.1%. Next year, CY 2026, is currently projected to have both stronger earnings and revenue where the projected earnings growth is 13.8% with revenue growth of 6.6%
Happening this week…
The inflation data that was scheduled to be released on Wednesday has been delayed. The readings are now scheduled for October 24. Theinflation rateyear-over-year for September was expected to be 3.0%. Meanwhile, thecore inflation rateyear-over-year for September was expected to be 3.0%.
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- The Rockline Team
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