Meta priced a stock sale to pay for AI, and Nvidia says it will buy some. Celestica forecast almost double the revenue next year. DoorDash fell as reports of a $17 billion deal spread.
Stocks Rose Monday. Futures Edged Up Before the Fed.
The S&P 500 rose about 0.7% on Monday. Its futures edged up early Tuesday. The 30-year Treasury yield ended Monday near 5.30%.
The Fed begins its two-day meeting Tuesday and announces its decision Wednesday. It raised rates in September. Fed funds futures put the odds of a pause near 91% as of Monday.
Big buyers can still raise money. They now pay for it in public, in new shares or lost market value.
Bitcoin traded near $79,800 early Tuesday. Bitcoin and gold were the two worst major assets this year through Oct. 23, in one widely followed table.
Investor Signal
The Fed's statement on Wednesday is the next marker for borrowing costs. A pause with firm language could help hold long yields near 5.3%. That would keep money costly for companies that spend ahead of their revenue.
Two of the Most Followed Investors in America Just Joined Forces for the FIRST Time
You've likely seen their faces on Fox Business, CNBC and Bloomberg. One is the economist who told his readers to sell everything a few weeks before Black Monday. The other has written up 50 stocks before they soared 1,000% or more over the past twenty years. They've never sat down together... until now. And what they're seeing in this market, they say could make or break your retirement.
Meta Priced $37.5 Billion of Stock. Nvidia Says It Will Invest $3 Billion.
Meta Platforms (META) priced $25 billion of common stock at $625 a share overnight. It also priced $12.5 billion of preferred stock with a 6.5% dividend that turns into common around August 2029.
Nvidia (NVDA) said it will invest $3 billion, about 8% of the total. AMD (AMD) and Broadcom (AVGO) had shown interest but have not said whether they will buy.
The price was 0.9% below Monday's close of $630.56. The deals close Thursday. Meta gets no cash from the common shares at closing. It sells them through forward contracts and can collect any time until Nov. 19, 2027.
The preferred brings in cash at closing. Its dividend costs about $813 million a year.
Meta expects $135 billion to $145 billion of capital spending this year. Its operating cash flow for the first nine months, run for a full year, comes to about $129 billion.
Investor Signal
The forward contracts let Meta lock in a price now and choose later when to issue the shares. Nvidia's check means a chip seller is funding part of its customer's chip bill. That loop depends on Meta's spending continuing to rise. Microsoft (MSFT) and Alphabet (GOOGL) report Wednesday, and their capex plans will show whether other big buyers are keeping pace.
Celestica Guided to $40 Billion Next Year. Its Shares Jumped About 17% Premarket.
Celestica (CLS) gave a 2027 outlook of $40 billion in revenue. That is about 90% above its raised 2026 forecast of $21 billion. The shares traded about 17% above Monday's close of $246.40 in early premarket trading.
The company cut this year's free-cash-flow forecast to $460 million from $600 million, mainly to buy parts for next year's growth. It completed a $3.45 billion stock sale in August.
Cadence Design Systems (CDNS) reported a record backlog of $8.2 billion. It raised its revenue growth forecast for the year to 21%. Amkor Technology (AMKR), which packages chips, guided fourth-quarter sales roughly flat with the third quarter and below forecasts.
Investor Signal
Meta's spending becomes revenue for suppliers like Celestica, and some of those suppliers have raised money this year as they scale up. Cadence is paid when chips are designed, so its backlog is revenue already under contract. Amkor is paid later, when chips are packaged, and its outlook was flat. The gap suggests the boom pays design work first and factory work later.
WARNING: A Major Market Shift Could Hit Stocks in 2026
If you have any money in the stock market, you may want to pay attention.
New research points to a massive market-moving event that could send hundreds of popular stocks into a sudden free fall.
Holding the wrong stocks when this hits could erase years of gains.
That’s why analysts have now identified a list of stocks investors may want to avoid as this event unfolds.
If you want to see what’s coming — and which stocks could be most at risk —
The Treasury Will Buy Back Up to $6 Billion of Long Bonds in Fed Week
The Treasury plans to buy back up to $6 billion of bonds maturing from 2046 to 2056 on Tuesday afternoon. In August, it set a floor of $4 billion for each long-bond operation through the Nov. 4 refunding. Tuesday's cap is half again as large.
Prediction markets leaned further toward a pause overnight. On Polymarket, the contract on no change this week rose to 93.55 cents from 91.65 cents on Monday afternoon. As of Monday, futures put the odds of another increase by December near 80%.
Investor Signal
The result will show how many long bonds holders want to sell, measured as offers against the amount accepted. Heavy offers would point to holders looking for an exit with the 30-year near 5.3%. That yield is the benchmark that long-term borrowers, from Meta to its suppliers, price against.
DoorDash Lost About $4.7 Billion of Value as Instacart Deal Reports Spread
DoorDash (DASH) is in advanced talks to buy Instacart's parent for about $17 billion. That is according to reports citing people familiar with the matter. Neither company has confirmed the talks.
Maplebear (CART) rose 7.9% to $60.88 on Monday. DoorDash fell 6.1% to $168.44. That erased about $4.7 billion of DoorDash's market value, against about $1 billion added to Instacart's.
DoorDash was already down about 3% before Monday afternoon's reports of advanced talks. The talk first surfaced on Oct. 23.
Investor Signal
If the $17 billion were all equity, it would come to about $71.60 a share, roughly 18% above Monday's close. That gap may reflect doubt about a deal at that price. The reports did not say whether the $17 billion includes debt. Antitrust review of a combined delivery platform is the other open risk.
AI CEO Issues Code Red: Prepare for Meltdown
The CEO of this AI company (click here to get the name, 100% free) just issued a CODE RED in an internal memo…
Warning his employees that they’re dealing with a critical situation.
Another company executive even implied they might need a government bailout.
And now Jim Rickards is predicting this company is about to go bust, in a full-blown AI meltdown that could be 10 times bigger than Lehman Brothers.
Ceasefire Bets Rose Overnight. Brent Slipped Below Monday's Settle.
Polymarket's contract on the U.S.-Iran ceasefire holding through Oct. 31 rose to 92.5 cents early Tuesday, from 86.5 cents Monday afternoon. It resolves No only on a qualifying U.S. strike on Iranian territory. The rally followed talks in Tehran with Saudi, Pakistani and Turkish officials.
The contract expiring Nov. 15 traded near 54.5 cents, close to even odds. The midterm elections fall on Nov. 3. President Trump said on Oct. 8 that the U.S. would not attack Iran before them. On Sunday he said it was "getting to be decision time."
Brent settled down 0.8% at $115.81 on Monday. It swung between about $114.50 and $116.90 overnight and was near $114.60 early Tuesday. Saudi Arabia contained a fire near its Ras Tanura export hub after an attack in the region. Bloomberg reported the fire, and no group's role has been confirmed.
Investor Signal
The prices suggest traders trust the pre-election pledge more than the talks. On that reading, the risk of a U.S. strike has been pushed past Nov. 3 and not removed. Brent near $115 feeds the inflation the Fed is weighing this week. Any sign the risk is moving closer would reach yields as well as fuel prices.
Big buyers can still raise money, and the price is now paid in the open. Meta is paying in new shares, and its chip supplier plans to buy some. Celestica sold stock in August and is spending cash ahead of next year's orders. DoorDash's holders paid before any terms were set.
On Wednesday the Fed sets the next marker for what that money costs.
Same Rate Move. Three Different Bills.
The 10-year went from 4.19% to 5.29% this year. Every company on your screen felt that. They don't feel it on the same schedule.
Some earn more when rates rise. Some pay more. The difference shows up in earnings, one report at a time.
We traced three of them: IBKR, WRB and FIS.
FREE Special Report: Rates Just Reset. Who Feels It First?
Who earns it fast. Who earns it slowly. Who pays. One has already reported. The other two report next, and the report tells you the exact line to check.
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Text Me the Three Names → (free)