Monday's Scoop: Calm☀️

Hey friends - hope you had a stellar weekend.

Insiders, catch up with the Weekly Scoop.

Here’s what you need to know today to inform your work, spending, and investments:

1. Businesses are investing more, signaling confidence.

2. Renewable energy has surged in America.

3. Corporate profits aren’t growing as quickly.

Unemployment Rate: 4.1%
^{Relatively normal, low}

US businesses are investing more, signaling optimism for the economy's future. The Commerce Department reported that orders for core capital goods—like machinery and equipment—increased by 0.5% in September when excluding aircraft orders, far more than economists expected. Compounding production issues at major planemaker Boeing dragged down overall investment numbers, with total durable goods orders falling 0.8%. Borrowing costs have started trending lower, making it easier for businesses to invest in expensive tech, equipment, and infrastructure. This suggests companies are more willing to spend on new equipment, boosting economic growth and potentially leading to more hiring.

Global Energy Emissions: 37.4 billion tonnes of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

The US generates much more renewable energy than it did a decade ago. According to a report by Environment America and Frontier Group, electricity from solar, wind, and geothermal sources has tripled since 2014, now making up nearly 18% of the nation's power sales compared to just 6% back then. Interestingly, this growth is happening across both traditionally Republican and Democratic states, with Texas, California, Oklahoma, Iowa, and Kansas leading the way. This surge in renewables not only helps reduce pollution from burning fossil fuels but also means more jobs and potentially lower energy costs.

The Market: ⬆️ +0.3%
S&P 500: 5,823.52
1Mo: +1% | 1Yr: +40% | 5Yr: +90%

The market floated higher on Monday as investors celebrated that Israel's recent response to Iran appeared aimed at reducing tensions. The reduced risk of a disruption in Iran's oil supply led to a drop in oil prices. Lower oil prices also calmed some nerves about inflation making a comeback.

Corporate profits are still growing but are losing some momentum. According to FactSet's latest report, with 37% of S&P 500 companies having reported third-quarter results, 75% have beaten earnings estimates—pretty average for the past 10 years. Since investors usually expect companies to beat their projections, magnitude also matters. However, companies have reported only 5.7% more profit than expected, less than the usual 6.8%. Overall, earnings for America’s biggest companies have grown only 3.6% over last year, the slowest pace since early 2023. While sectors like tech are leading the gains, declines in areas like energy and industrials are weighing down the overall performance. This slowdown in profit growth might temper stock market gains, potentially affecting your investments or retirement savings.