Good Morning! The bull market just turned two years old, with stocks hitting fresh records yesterday, driven by Nvidia's all-time high. The company's stock is up 40% since August 7 and approaching a $3.4T market cap. Meanwhile, Google signed a deal with a nuclear company to meet the growing power demand from its data centers. Starbucks’ new CEO is pulling back on discounts and promotions. Markets are experiencing a ‘sellers strike’, and one Deutsche Bank shareholder wants to sell their $279 million stake.

Plus, Big Tech volatility is a reason to invest more in AI stocks, and US private equity report for Q3 2024.

The music industry awaits–with JKBX, you can invest in top hits from artists like Beyoncé, Kygo, and T-Swift. Diversify your portfolio with royalty shares here.

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Wall St Comp Report - NYC

If you were unhappy with your 2023 bonus, it's not just you - a new study confirmed that the average Wall Street pay fell 5.2% last year.

The New York State Comptroller puts out a comp report every year. They do it as a way to predict city and state tax revenue - which is probably why your take-home bonus is always paltrier than you expect.

The study found that the average total compensation (including bonuses) for a securities industry worker was $471,370 in 2023, a 5.2% drop from the previous year and an 8.7% decline when adjusted for inflation.

The main culprit for the decline? Bonuses. The average Wall Street worker received a $176.5k bonus in 2023, a far cry from the over-$200k bonuses seen during the pandemic boom. See below:

It’s not all doom and gloom, though. While profits during the pandemic soared, Wall Street’s performance is still on par with pre-pandemic levels. There’s optimism that 2024 will mark a recovery from the lackluster performance of 2022 and 2023.

In fact, the report noted that pretax profits for broker-dealer operations of New York Stock Exchange members reached $23.2 billion in the first half of 2024, an almost 80% increase from the previous year. This profit surge is expected to boost bonuses by 7.4% this year.

You can check out the full report here.

Takeaway: Despite the dip, Wall Street's average compensation of $471,370 last year still ranks as the third highest on record. It’s also the top in New York City, leaving the private sector's $98,700 average looking like lunch money. With IPOs and M&A heating up, that 2024 bonus might just be big enough to finally justify that Hamptons rental—and maybe even the boat.

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Why Sony Paid $500+ Million for Bruce Springsteen’s Music Catalog

One word: Royalties. Now, every time “Born To Run” gets played, Sony gets paid. 

But Sony isn’t the only one–major investors have poured billions into music catalogs due to their steady income streams, relatively low risk, and little correlation to the market, making them one of the most valuable creative assets in the world. 

Want to tap this lucrative market yourself? 

With JKBX (pronounced “jukebox”) everyday investors can buy rights to chart-topping songs from artists like Taylor Swift, Beyoncé, Ed Sheeran, Adele, and more.

As the song’s performance goes up, so too does your earning potential. 

Diversify your portfolio with JKBX today.

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Top Reads

• The bull market is 2 years old (YF)

• Google inks deal with nuclear company (CNBC)

• Nvidia notches record high, pushing towards world’s most valuable company (YF)

• Starbucks is scaling back discounts and promotions (CNN)

• Deutsche Bank shareholder looking to sell $279M stake (YF)

• Markets are experiencing a ‘sellers strike’ (Fox)

• GM, Barclays sign long-term credit card partnership agreement (Reuters)

• Private equity shouldn’t be greedy in the current IPO market (BB)

• Three economists snag Nobel prize (NPR)

• Nike’s new CEO takes the helm (Fortune)

• Changing jobs can put a $300k dent in retirement (WSJ)

• Big Tech volatility is a reason to invest more in AI stocks (Fox)

• How Meta has become an AI behemoth (YF)

• US PE Breakdown Report Q3 2024 (PB)

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Markets Rundown

Market Commentary

Stocks edge higher: U.S. stock markets closed higher on Monday, with broad-based gains across most sectors. Information technology and utilities were the standout performers, while energy was the only sector to finish lower, reflecting weaker oil prices.

Global markets also moved higher, supported by announcements from China's policymakers over the weekend regarding planned stimulus measures to boost the economy. With Treasury markets closed for the Columbus Day holiday, focus remained on equities. Commodities, including oil and gold, both finished the day lower.

Stimulus hopes boost China stocks: After a volatile week, China’s CSI 300 Index surged by nearly 2% on Monday. This rally followed announcements from China's Finance Ministry outlining fiscal support plans, including measures to reduce local government debt and fund the purchase of unsold homes from developers.

The Chinese economy, which has been struggling with a slumping property market and low consumer confidence, saw modest consumer price inflation of 0.4% year-over-year in September, while producer prices contracted by -2.8%. Although the full scale of fiscal stimulus remains unclear, markets are hopeful that larger measures may support growth, though continued volatility is likely.

Third-quarter earnings off to a strong start: Early third-quarter earnings reports have been promising, with strong results from major U.S. banks like Wells Fargo and JPMorgan pushing markets higher.

Analysts expect S&P 500 earnings growth of around 3% for the quarter, marking the fifth consecutive quarter of positive growth. Leading sectors, such as information technology and communication services, are projected to see double-digit earnings growth, while health care is expected to post growth of 9%.

Looking ahead, expectations for S&P 500 earnings growth remain positive, with forecasts of 9% in 2024 and nearly 15% in 2025. Strong corporate profit growth will likely be key in sustaining the current bull market.

Movers & Shakers

• (+) SoFi Technologies ($SOFI) +11% after a $2 billion loan deal with Fortress Investment.

• (+) SiriusXM ($SIRI) +8% because Warren Buffett increased his stake in the company.

• (–) Caterpillar ($CAT) -2% after a downgrade by Morgan Stanley.

Private Dealmaking

• TPG Telecom sold its fixed-fiber network to Vocus for $3.5 billion

• Cytovale, an SF-based sepsis detection tech developer, raised $100 million

• Arda Therapeutics, a cell depletion therapies developer, raised $43 million

• Incognia, an AI fraud detection startup, raised $31 million

• Sema4.ai, an intelligent agent for enterprise workers, raised $30.5 million

• Vouch, a business insurer, raised $25 million

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

_{BOOK OF THE DAY}

Play Nice

For video game fans, the name Blizzard Entertainment was once synonymous with perfection. The renowned company behind classics like Diablo and World of Warcraft was known to celebrate the joy of gaming over all else. What was once two UCLA students' simple mission — to make games they wanted to play — launched an empire with thousands of employees, millions of fans, and billions of dollars. 

But when Blizzard cancelled a buzzy project in 2013, it gave Bobby Kotick, the infamous CEO of corporate parent Activision, the excuse he needed to start cracking down on Blizzard's proud autonomy. Activision began invading Blizzard from the inside. Glitchy products, PR disasters, mass layoffs, and a staggering lawsuit marred the company's reputation and led to its ultimate reckoning.

Based on firsthand interviews with more than 300 current and former employees, Play Nice chronicles the creativity, frustration, beauty, and betrayal across the epic 33-year saga of Blizzard Entertainment, showing us what it really means to "bleed Blizzard blue." Full of colorful personalities and dramatic twists, this is the story of what happens when the ruthless pursuit of profit meets artistic idealism.

“From a New York Times bestselling author and investigative journalist comes The Social Network for the video game industry, a riveting examination of Blizzard Entertainment's rise and shocking downfall.”

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US Private Equity Deal Activity

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Don’t be that Analyst…Link Excel to PowerPoint Reliably with Macabacus

When your MD asks you to update the deck 15 minutes before the meeting, every second counts.

With Macabacus you can update charts in your deck with bullet speed and one-click. 

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Check out Macabacus today for fastest and smoothest linking from Excel straight into PowerPoint and Word.

Download Macabacus today and thank us later.

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Productivity

To boost productivity, especially under stress, it's essential to focus on manageable, actionable steps. Rather than being overwhelmed by the scale of a task, break it down into the next immediate action.

This helps keep the mind anchored in the present, reducing anxiety about future outcomes.

Shifting your mindset to value input (the effort and time you put in) over output (the result) can also alleviate pressure, as success doesn't solely hinge on achieving perfection but on showing up and making progress consistently.

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Short Squeez Picks

• How to create a productive morning routine

• How to work for a boss who always changes their mind

• How to finally end miscommunication at work

• Are you a high-earner, not rich yet?

• How to boost dopamine naturally 

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Memes of the Day