Good Morning and Happy Friday! Tesla had its best day in over a decade (+22%) thanks to strong Q3 earnings, and Musk ended the day $26.4 billion richer. Meanwhile, chains like Taco Bell and KFC are getting rid of onions after rival McDonald’s E. Coli scare. UFC owners at TKO Group bought IMG agency and other assets for $3.3 billion. Southwest finally ended its feud with its activist investor Elliott, and Nvidia is now bigger than the total market cap of five of the G7 countries.

Plus, one airline cracks down on line jumping, Costco is having a 'Netflix moment' and Tesla investors are worried about Musk's political activity.

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_{SQUEEZ OF THE DAY}

Fintechs Cash Out

Private credit has historically been a niche, somewhat obscure sector focused mainly on corporate finance. But things are changing. These large private credit firms are moving into consumer lending, and they might soon be coming for your loans.

In response to rising interest rates and profit pressures, fintechs like Klarna, SoFi, and Upstart—once heralded as disruptive innovators—are now offloading billions in loans to major players in private credit. Rather than holding the balance sheet risk, they’re opting to focus on their core tech and lending models.

In recent weeks, major shops like Elliott, Carlyle, Fortress, and Blue Owl have collectively scooped up tens of billions in consumer loans, targeting personal debt, auto loans, and home equity. The fintechs benefit by moving these loans off their books, allowing them to originate even more loans without the storage headache.

For private credit firms, consumer loans aren’t as risky as they might seem—especially with double-digit yields from borrower payments.

Blue Owl, backed by private debt financing from Apollo, announced plans to buy up to $2 billion in Upstart consumer loans over the next 18 months. This news sent Upstart’s stock up 20%, adding $700 million to its market cap, while SoFi shares also rose 10% after inking a $2 billion loan sale deal with Fortress.

Takeaway: It’s ironic. Fintechs set out to disrupt traditional banks with tech and agility, but now they’re just passing loans to the very firms they hoped to replace. Looks like the disruptors have discovered the oldest trick in the banking playbook… let someone else hold the bag.

_{PRESENTED BY HEBBIA}

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_HEADLINES

Top Reads

• Southwest ends feud with activist investor Elliott (CNBC)

• Tesla's best day in over a decade leads Nasdaq, S&P 500 higher (YF)

• Tesla’s profits are now coming from things Elon Musk said he wouldn’t do (Electrek)

• TKO Group to acquire IMG, Professional Bull Riders and On Location for $3.25B (CNBC)

• Taco Bell, KFC, Burger King remove onions over E. coli outbreak (Axios)

• The art market is in a correction as big spenders fade (CNBC)

• Capri stock craters after $8.5 billion Tapestry deal blocked (YF)

• Morgan Stanley strikes direct air capture deal (Axios)

• Amazon Prime introduces new benefit to save on gas (YF)

• Airline cracks down on line jumping (NYT)

• Costco is having a 'Netflix moment' — and it appears to be paying off (Fox)

• Why France's fiscal freakout matters to the world (Axios)

• Sales of previously owned homes fall to lowest level in 14 years (Fox)

• Tesla investors worry about Musk's political activity (Axios)

_{CAPITAL PULSE}

Markets Rundown

Stocks finish mixed: U.S. equity markets closed mixed on Thursday, with the S&P 500 and Nasdaq posting gains while the Dow ended lower. The consumer discretionary sector was the day’s standout, rising more than 3%, fueled by Tesla’s earnings, which sent its stock soaring over 20%. Most other sectors finished the day flat or lower.

Globally, Asian markets were mixed overnight, while European markets saw modest gains. Bond yields eased after recent increases, with the 10-year Treasury yield ticking down to 4.21%.

Jobless claims tick lower: Initial jobless claims fell to 227,000, below expectations and the previous reading, indicating a still-healthy labor market despite some softening. This is well under the 30-year median of over 300,000, signaling a resilient job market.

Upcoming nonfarm payrolls and unemployment data will provide further insights. Strong labor-market conditions should help sustain consumer spending and economic growth.

PMI data shows services continue to shine: Preliminary PMI data from S&P Global for October highlighted ongoing expansion in the U.S. services sector, with a reading of 55.3 (above 50 signals expansion).

The manufacturing PMI, though still in contraction territory, improved slightly to 47.8 from 47.3 in September. Given that services constitute the majority of the U.S. economy, these readings suggest continued, healthy economic growth.

Movers & Shakers

• (+) Tesla ($TSLA) +22% after best day in a decade; blowout quarter.

• (+) United Parcel Service ($UPS) +5% after beating a 10-quarter revenue-miss streak.

• (–) IBM ($IBM) -6% after disappointing consulting and infrastructure revenue.

Private Dealmaking

• UFC owners at TKO Group Holdings acquired new assets from Endeavor in $3.25 billion

• Keurig Dr Pepper bought energy-drink maker Ghost for $1 billion

• FINIX, a payments company, raised $75 million

• Alpha-9 Oncology, a radiopharmaceuticals developer, raised $175 million 

• Nimble, an e-commerce fulfillment company, raised $106 million

• Be Biopharma, a B Cell Medicines developer, raised $82 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{NEIGHBORHOOD WATCH}

Real Estate Digest

The ongoing strength of the economy pushed mortgage rates up once again this week. In recent months, there has been a disconnect between negative economic outlooks and economic data that has consistently exceeded those expectations.

This has resulted in unusual volatility in mortgage rates, even amid an improving economy while the overall housing market is down 3.5% YoY and slated to be the worst year for real estate since 1995.

Latest News

• Thinking About Becoming a Landlord? Here Are A Few Things to Keep in Mind

• High Prices, Low Supply: Three Swing State Cities Show the Housing Crunch

• Nationwide Home Sales On Track for Worst Year Since 1995

• Florida’s Real Estate Boom is Drowning in Risk, But Builders Keep Pushing Forward

• This San Francisco Neighborhood Defies the City’s Crashing Housing Market

• NYC’s Elite Luxury Office Towers Are Dominating the Market

New Listings

• 50 Eveningside Dr Milford, CT: 4 Bedrooms 4.5 Bathrooms - $2,900,000 

• 230 Miramar Way West Palm Beach, FL: 5 Bedrooms 6.5 Bathrooms - $7,500,000 

• Mayfair Park Residences, London, UK: 1 Bedroom 1 Bathroom - $6,875,000

• 66 Wolver Hollow Road Upper Brookville, NY: 7 Bedrooms 8.5 Bathrooms - $3,900,000

• 444 N Lucerne Blvd. Los Angeles CA: 6 Bedrooms 6.5 Bathrooms - $3,495,000 

• 15 Union Square, New York, NY: 3 bed/3.5 bath - Asking $10,850,000

Fill out this form if you're looking to buy, sell, rent or invest.

_{BOOK OF THE DAY}

Follow The Science

Through blatant lies, deep cover-ups, and high-level collusion with government and media, Big Pharma has continuously put profits over people with dangerous results.

Now, with her signature investigative rigor and uncompromising commitment to the facts, Sharyl Attkisson takes readers on an shocking journey through the dark underbelly of the pharmaceutical industry.

Follow the Science recounts, in exacting detail, how far the pharmaceutical industry and its supporters in medicine, media, and government will go to protect their profits.

Attkisson provides shocking examples that reveal the disturbing callousness our government, public health officials, and top researchers are capable of when it comes to the most vulnerable among us.

And she explains, in a graphic sense, how some of the most trusted within our society are willing to commit life-threatening ethics violations.

When caught, they circle the wagons and marshal forces to defend their bad acts and take steps to cruelly silence the injured and smear those who would expose them.

“Emmy Award-winning investigative journalist and New York Times bestselling author Sharyl Attkisson exposes the corruption that has ruled the pharmaceutical industry for decades.”

_{DAILY VISUAL}

Nvidia Bigger than Total Market Cap of Five G7 Countries

_{PRESENTED BY MACABACUS}

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_{DAILY ACUMEN}

Uncertainty

In times of global crises, existential uncertainty can leave us feeling anxious and overwhelmed, often exacerbated by habits like doomscrolling.

Constant exposure to negative headlines activates the brain’s threat response, releasing stress hormones that impair decision-making and deepen anxiety.

While our instinct might be to seek more information, this behavior can worsen our mental state, trapping us in a cycle of fear.

Instead of seeking temporary comfort from endless scrolling or clinging to rigid beliefs, effective coping requires mindful strategies to foster calm and resilience.

To counter these feelings, try stress-reduction exercises like practicing controlled breathing to ground yourself. Connecting with others also helps—acknowledging that many share your anxieties can alleviate the sense of isolation.

Awe-inspiring activities such as spending time outdoors, practicing gratitude, and engaging in acts of compassion are powerful tools for expanding feelings of connection and reducing distress.

Shifting your focus from problems to creative solutions, such as volunteering or pursuing a passion project, can also provide a more positive outlet for your energy, helping to protect your mental health in uncertain times.

_{ENLIGHTENMENT}

Short Squeez Picks

• Why self-awareness is a double-edged sword

• 3 types of meditation for better sleep

• 3 absolute principles of time management and productivity

• What’s the minimum amount of training to run a marathon?

• Is your desire to be right holding you back?

_{MEME-A-PALOOZA}

Memes of the Day