Bears finally broke the bulls’ six-week win streak, with concerns about earnings and the recent rise in yields weighing on markets. Next week will help set the tone for markets through the election and year-end, with key U.S. labor market data and the bulk of the “Magnificent Seven” stocks set to report results. 👀

Today's issue covers NYCB’s earnings miss, Booz Allen Hamilton’s new all-time highs, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 3 of 11 sectors closed green, with technology (+0.52%) leading and utilities (-1.48%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $TPR, $SAIA, $DECK, $SMMT, $BAH, 📉 $FIX, $UHS, $CSL, $THC $WEST*

*If you’re a business and want to access this data via our API, email us.

New York Community Bancorp (NYCB) reported a rough Q3 2024, with net losses piling up to $280 million, or $0.79 per diluted share. Even after factoring out merger-related expenses and a mortgage warehouse sale, the bank’s adjusted net loss still clocks in at $243 million, or $0.69 per share. 😨

NYCB has some silver linings, like a $4 billion deposit growth led by retail and private bank clients, but these gains couldn’t offset the earnings hit.

NYCB’s net interest income fell 42% compared to last year, to $510 million. Rising funding costs and a tough interest rate environment are squeezing margins. The bank’s net interest margin fell hard, landing at 1.79%, down from 3.27% a year ago— a reflection of how much higher funding costs are weighing down profitability. 📉

To manage risk, NYCB reduced wholesale borrowing by 31% and reduced riskier CRE and multi-family loan balances. $2.5 billion in loans have shifted to non-accrual status, showing a significant uptick in loan quality issues from last year.

NYCB’s moves to reduce risky assets are a start, but the hurdles of high funding costs and deteriorating loan quality make clear that the road to recovery is still in sight but far from reach. Despite the challenges, retail is betting on a comeback, with Stocktwits sentiment firmly in ‘bullish’ territory. 👐

Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade. Trade.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. tastytrade, Inc., and Stocktwits are separate and unaffiliated companies that are not responsible for each other’s services, products, and policies.

Booz Allen Hamilton just dropped their Q2 FY25 earnings, and the numbers speak for themselves. Revenue shot up 18%, hitting $3.15 billion. Organic revenue growth wasn’t far behind at 17.1%. 🤯

For those keeping score at home, that's a serious flex. When you strip out billable expenses, they still brought in $2.18 billion—a tidy 18.3% gain from last year.

Operating income more than doubled, up 105.5%, totaling $548.6 million. Net income? That exploded by 128.5%, coming in at $390.1 million. EPS didn’t disappoint either, with a cool $3.01 per share—again, more than double last year’s showing.

Adjusted diluted EPS was $1.81, a solid 40.3% bump. ✊

Their backlog swelled 17.7%, now sitting at $41.3 billion, and they’ve got a book-to-bill ratio of 2.61x—clearly keeping those contracts rolling in. Oh, and in case that wasn’t enough, they grew headcount by 8.1%, adding around 2,500 employees in the past year.

Booz Allen's VoLT (Velocity, Leadership, Technology) strategy seems to be paying off big time, and with the updated FY25 guidance, they’re looking even higher. Stocktwits sentiment remains in ‘extremely bullish’ territory, suggesting retail is betting on today’s all-time highs begetting further gains. 🐂

⏰ NYSE Arca to Roll Out 22-Hour Trading—Welcome to Almost All-Day Markets

The New York Stock Exchange announced plans to extend trading on its NYSE Arca Equities exchange to 22 hours per day, leaving only a two-hour break for those who still need sleep. The move, subject to regulatory approval, aligns with demand for around-the-clock trading in a global market. U.S. stocks, ETFs, and crypto are all eyeing this shift, with trading set to start at 8 p.m. Eastern and run nearly all day. ICE Press Release.

📉 Earnings: Newell Boosts Margins, Yet Core Sales Scream ‘Do Better’

Newell Brands took a revenue hit with a 4.9% sales decline but insisted their new strategy is “well underway.” Gross margins rose thanks to a 460-basis point improvement as they slashed debt and squeezed out some operating efficiencies. Still, a $198 million net loss and tepid core sales suggest that they’re still wobbling despite the “solid foundation” they’re building. Investopedia.

💼 Earnings: TriNet Revenue Steady, Profits Not So Much

TriNet’s revenue eeked up by 1%, but higher healthcare costs slammed profitability, with net income plummeting 52% year-over-year. They raised their healthcare fees on October 1, promising stability after the January renewal. Management appeared cautiously optimistic with a $109 million adjusted EBITDA, even if its bottom line needs a serious fitness plan. TriNet IR.

🔍 Tether Under Federal Investigation—AML, Sanctions, and Controversy

Federal prosecutors are investigating Tether for potential anti-money laundering and sanctions violations, suspecting its use by criminals and sanctioned entities worldwide. The investigation comes amid Tether’s previous regulatory issues, and the company insists it actively cooperates with law enforcement to combat illicit activities. With Tether’s massive trading volume and ties to U.S. Treasuries, a criminal charge could shake the stablecoin landscape. WSJ.

🇦🇷 Argentina’s Risk Index Drops Below 1,000 as Milei Sparks Investor Optimism

Argentina’s country risk index broke below 1,000 basis points as investors rallied behind libertarian President Javier Milei’s deep spending cuts and anti-inflation policies. Despite a challenging economy and rising poverty, the index drop marks a rare win for Argentina’s financial markets. Bonds, equities, and the peso are up, with analysts seeing no obvious ceiling over the short term. Reuters.

📉 Apple Gets Rare Bearish Call Over Low Upgrade Rates and Expensive Valuation

KeyBanc’s Brandon Nispel downgraded Apple to underweight, citing concerns over sluggish smartphone upgrades and the upcoming iPhone SE's potential cannibalization of premium iPhone sales. He also pointed out Apple’s lofty valuation and issued skeptical growth expectations across all product categories. MarketWatch.

🆘 Concerned about election season volatility? Let IBD Digital be your guide—get 2 months for $12*

⚠ Departing OpenAI leader says no company is ready for AGI

💰 Waymo raises $5.6B from Alphabet, a16z, Silver Lake, and more

😡 German finance minister warns of retaliation if U.S. kicks off trade war

🙂 Americans are feeling better about the economy after the Fed’s jumbo rate cut

🕵 Consumer watchdog cautions companies against snooping on workers with surveillance tech

🤩 Chart Art: the Stocktwits community eyes several catch-up plays across equities

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲

Help us deliver the best content possible by completing this brief survey. 📝

Email me (Tom Bruni) your feedback; I’d love to hear from you. 📧

Want to sponsor this newsletter and reach hundreds of thousands of passionate investors and traders? Reach us here.

Securities Disclaimer: STOCKTWITS IS NOT A TAX ADVISOR, BROKER, FINANCIAL ADVISOR OR INVESTMENT ADVISOR. THE SERVICE IS NOT INTENDED TO PROVIDE TAX, LEGAL, FINANCIAL OR INVESTMENT ADVICE, AND NOTHING ON THE SERVICE SHOULD BE CONSTRUED AS AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION FOR ANY SECURITY. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital, and not capital required for other purposes. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should also consult an attorney or tax professional regarding your specific legal or tax situation. The Content is to be used for informational and entertainment purposes only and the Service does not provide investment advice for any individual. Stocktwits, its affiliates and partners specifically disclaim any and all liability or loss arising out of any action taken in reliance on Content, including but not limited to market value or other loss on the sale or purchase of any company, property, product, service, security, instrument, or any other matter. You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Service will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which Content is published on the Service have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Read the full terms & conditions here. 🔍

Author Disclosure: The author of this newsletter does not hold positions in any of the securities or assets mentioned. 📋