CLOSING BELL
Dow ATH Despite Down Tech
The market closed higher Wednesday, the Dow breaking records with hopes the record-long Gov shutdown will come to an end tonight with a vote in the House.
It’s not a done deal, Congress having to travel by train, motorcycle, and automobile to get to D.C., with FAA air traffic held back by funding. Despite the incoming reopening, the White House said economic data expected this month, delayed by the shutdown, might never come out. Press Sec. Leavitt said the data was “permanently damaged” as if it were ruined in a flood. She also said the Epstein file mentions are a hoax.
Nvidia was stabilizing, pulling back tech after SoftBank’s stake sale, while up and commer $AMD ( ▲ 9.0% ) flew like the wind. Chief Su’s Tuesday remarks sent the stock climbing on Wednesday. Jim Cramer, commenting on a big tech pullback,warned the ‘year of magical investing’ is ending. Investors want to buy stocks with less AI speculation, more cash flow, he said. That didn’t stop OpenDoor from flying 10% again.
Today’s RIP: Cisco SERV’s Up Report, Coinbase get’s JPMorgan on Base, and more.
6 of 11 sectors closed green. Health Care $XLV ( ▲ 1.42% ) lead and energy $XLE ( ▼ 1.4% ) lagged.
AFTER THE BELL
Serve And Cisco Serve Up Reports
$CSCO ( ▲ 3.14% ) Cisco Systems was climbing about 7% postmarket after reporting $1/share earnings on $14.88B in revenue, both above Street estimates.
The company also gave strong guidance for its incoming Q2: $15-$15.2B.
"The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI," Chief Chuck Robbins said.
The company said it had $1.3B booked in AI infrastructure orders from “hyperscalers.”
It wasn’t the only mover after hours. $SERV ( ▲ 1.36% ) Serve Robotics took a nose dive before pulling back in the postmarket. It posted a smaller-than-feared loss of 24C/share, but a slight miss in revenue. The super small retail favorite company makes food delivery robots, and Chief Dr. Ali Kashani said Serve is on track to deliver 2k robots this year, boasting a 66% bump in quarter-to-quarter shipments.
House On Track To Approve Budget, For Now.
It’s 6:45 ET in Jersey City, and as of now, the House is set to decide on a Senate-approved spending package to open up the government again, after the world’s longest U.S. government shutdown. Here’s what lawmakers are considering:
📰 What’s Happening
Bill extends funding through January 30, 2026, with full‑year funding for Agriculture, military construction, and the legislative branch.
Includes reversal of Trump‑era federal layoffs during the shutdown and a moratorium on future firings, and paying back pay to Fed workers.
Controversial provision: senators could claim $500,000 damages if investigators collect their phone records without consent. Both parties are fighting against this point, it only benefits eight senators whose phones were tapped by special counsel Jack Smith.
❓ Why It Matters
Shutdown began Oct. 1, furloughing hundreds of thousands of federal workers, delaying flights, closing museums, and halting economic data releases.
Democrats demanded ACA subsidy extensions; GOP agreed only after reopening, pledging to talk about Obamacare in December.
Eight Senate Democrats broke ranks to back the GOP plan, gaining little besides a funded FAA, and sent the bill to the House.
Shutdowns don’t save money — they actually increase costs: A 2019 bipartisan Senate report found $300M+ lost in extra admin work, late fees, and reduced revenue.
Economic toll: CBO estimates 1.5 percentage point hit to Q4 GDPand a net $11 billion loss.
📅 When & Next Steps
Tonight: House vote expected, sent to Trump to sign.
Mid‑December: GOP leadership pledged vote on ACA subsidies.
Next week: Republicans plan stand‑alone bill to repeal the controversial damages provision. 👀
Federal workers will receive back pay, but contractors and canceled travel plans may not fully recover. Delta Ailrines CEO Ed Bastian said operations were not affected at all despite a week with 13,000 flight delays
CRYPTO (ISH) NEWS
Crypto Comes To The Biggest Banks
JPMorgan launched a stablecoin today called JPMD on Coinbase's ‘Base’ system, calling on-chain transactions the future of finance. This reporter remembers when big banks thought crypto was a pipe dream, but I guess if you can’t beat ‘em, join ‘em.
Oh, and speaking of stablecoins, Circle fell 12% despite USDC circulation doubling and boosting revenue. The sell-off came down to two things: According to the SEC filing, $CRCL ( ▼ 12.21% ) only started turning around its operating loss in the past three months, but for the year still pulled in a loss of $202M. The stablecoin issuer only went public in June, and paid out $423M in stock so far.
Even with $73.7B of USDC in circulation, Barron’s also reported expenses rose to an estimated $510M this year. On another point, USDC and Circle in general, is held up by high short-term treasury rates set in part by the Fed. Each dollar in USDC is ‘backed’ by treasuries, much like how a bank functions, only with different crypto vernacular: but when rates come down as the FOMC cuts back to save the job market, USDC treasuries will start paying back at lower and lower rates.
POPS & DROPS
Top Stocks News Stories
AbbVie ended its partnership with Alphabet-backed Calico Life Sciences.
Polestar fell 15% after reverse split plan and wider Q3 loss.
Nebius fell 8% after announcing plans to raise capital via 25M share sale.
OPEC reaffirmed global oil demand growth of 1.3M bpd this year.
Scott Bessent predicted tariff relief for coffee and bananas.
Delta CEO warned flight cuts will bring significant costs.
Skims raised new funding, reaching a $5B valuation.
Anthropic announced $50B investment to build U.S. data centers.
Synopsys will cut 10% of staff following its Ansys acquisition.
Cemtrex surged 64% after strong momentum and investor interest.
IBM unveiled powerful quantum chip: “fault-tolerant computing” by 2029.
Tomorrow’s Top Things
Economic data: IEA Monthly Report (4:00 AM), Continuing Jobless Claims (8:30 AM), CPI (8:30 AM), Initial Jobless Claims (8:30 AM), Crude Oil Inventories + Cushing (12:00 PM), 30-Year Bond Auction (1:00 PM), Federal Budget Balance (2:00 PM), Fed’s Balance Sheet (4:30 PM)
Pre-Market Earnings: Walt Disney ($DIS), JD.com ($JD), Paysafe ($PSFE), and Bitfarms ($BITF)
After-Market Earnings: Virgin Galactic Hldgs ($SPCE), Nu Holdings ($NU), Applied Mat ($AMAT), and Luminar Technologies ($LAZR)