Welcome to Read Sunday, your essential source for a concise and impactful weekly Business & Finance recap. Dive into the pivotal market highlights from the week, distilled for your convenience, and stay tuned for the thought-provoking editor's piece that rounds off your Sunday with insightful perspectives.

Market Recap

This Week’s Headlines

Public Markets

• Exxon Mobil Corp. disclosed that it anticipates a boost of approximately $1 billion in its third-quarter profit, driven by the increase in crude oil prices. Exxon (XOM) estimated that this boost in profit will range from $900 million to $1.3 billion more than its second-quarter profit, primarily attributed to fluctuations in crude oil prices. Additionally, it expects a positive impact ranging from $200 million to $400 million due to changes in gas prices. However, the company also foresees a decrease in profit by $600 million to $400 million as a result of narrower profit margins in its chemicals division. (MW)

• Amazon (AMZN) reportedly used an algorithm called "Project Nessie" to assess how much it could raise prices in a manner that would encourage competitors to do the same, as revealed in redacted portions of the Federal Trade Commission's monopoly lawsuit against the company. (WSJ)

• MGM Resorts International said on Thursday a cyberattack last month that disrupted its operations would cause a $100 million hit to its third-quarter results, as it works to restore its systems. One of the world's largest gambling firms, MGM shut down its systems after detecting the attack to contain damage, it said. It expects to also incur less than $10 million as a related one-time cost in the quarter ended on Sept. 30. (RET)

Economy

• On Tuesday, the 10-year Treasury yield, a key indicator for mortgage rates and a gauge of investor confidence surged to its highest level since 2007. Additionally, the 2-year Treasury yield, which is particularly responsive to expectations regarding the Federal Reserve's decisions on its own primary lending rate, experienced a slight uptick, reaching 5.144%. (CNBC)

• Israeli Prime Minister Benjamin Netanyahu stated that his country was in a state of conflict with Hamas after the militant group's forces crossed the border from Gaza on Saturday. This incursion led to clashes with Israeli forces and the occupation of a portion of territory in the southern part of the country. (WSJ)

• On Tuesday, a small group of Republicans in the U.S. House of Representatives successfully removed Republican Speaker Kevin McCarthy from his position, intensifying party discord and causing further turmoil in Congress shortly after narrowly avoiding a government shutdown. The vote, with a tally of 216 to 210, marked the first instance in history where the House ousted its leader. Eight Republicans joined 208 Democrats in voting to remove McCarthy. Following the vote, McCarthy announced to reporters that he would not seek another term as speaker. (RET)

• The unexpectedly robust U.S. job growth has defied investor expectations, underscoring the growing momentum in the economy and contributing to a selloff in the bond market. This surge in bond yields is pushing longer-term borrowing rates to their highest levels in 16 years. According to the Labor Department's report on Friday, employers added an impressive 336,000 jobs in September. This marked the most significant increase since January and represented a substantial uptick from the upwardly revised gain of 227,000 jobs in the prior month. (WSJ)

Mergers & Acquisitions

• Sycamore Partners is set to acquire Chico's FAS through an all-cash transaction worth $938.1 million, as announced by the clothing retailer on Thursday. This news drove Chico's shares to a remarkable 63% increase in closing value. Under this agreement, Chico's shareholders will be offered $7.60 per share, marking a substantial 65% premium over the stock's most recent closing price. Sycamore Partners has a track record of investing in the retail and consumer sectors, with holdings in various companies, including department store operator Belk, discount retailer Dollar Express, and mall and web-based specialty retailer Hot Topic. (RET)

• The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit in an attempt to compel Elon Musk to provide testimony as part of its investigation into his Twitter activities. (CNBC)

• Exxon Mobil (XOM.N) is reportedly in advanced discussions to purchase Pioneer Natural Resources (PXD.N) in a potential deal that might value the Permian shale basin producer at approximately $60 billion. This development, if finalized, would mark Exxon's largest acquisition since its $81 billion purchase of Mobil in 1998. It signifies a strategic move to expand its presence in one of the most profitable regions within the U.S. oil industry. (RET)

• Eli Lilly and Company (NYSE: LLY) and POINT Biopharma Global, Inc. (NASDAQ: PNT) have reached a definitive agreement for Lilly to acquire POINT. POINT is a radiopharmaceutical company that has a pipeline of clinical and preclinical-stage radioligand therapies under development for cancer treatment. Radioligand therapy involves the precise targeting of cancer cells by attaching a radioisotope to a targeting molecule, delivering radiation directly to cancer cells, thereby achieving substantial anti-tumor effectiveness while minimizing damage to healthy tissue. (LILY)

Read Sunday - Opinion

Balancing Security and Efficiency

In an age defined by digital interactions, cybersecurity stands as the sentinel guarding our digital lives against an array of threats. At the core of this security paradigm lies encryption—a practice that transforms data into an unreadable format using complex algorithms.

Read More

Earnings

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