Market Beats | US Services Growth Accelerates in October to Fastest Pace in Eight Months; US Companies Add 42,000 Jobs in October; Wall Street Bonuses Set to Rise Again; Zohran Mamdani Wins NYC Mayoral Race; US Supreme Court Signals Doubt Over Trump’s Global Tariffs; Dezer Development Secures $630 Million Loan for Bentley-Branded Tower in Florida

—— US Services Growth Accelerates in October to Fastest Pace in Eight Months; US Companies Add 42,000 Jobs in October; Wall Street Bonuses Set to Rise Again; Zohran Mamdani Wins NYC Mayoral Race; US Supreme Court Signals Doubt Over Trump’s Global Tariffs; Dezer Development Secures $630 Million Loan for Bentley-Branded Tower in Florida

1. US Services Growth Accelerates in October to Fastest Pace in Eight Months

US services activity expanded in October at the fastest rate in eight months, driven by a sharp pickup in new orders.

The Institute for Supply Management’s services index rose 2.4 points to 52.4, exceeding all forecasts in a Bloomberg survey. Readings above 50 indicate expansion in the nation’s largest economic sector.

The new orders index surged 5.8 points to 56.2, its highest level in a year, while the business activity gauge — which mirrors factory output — climbed 4.4 points to 54.3, signaling renewed momentum. However, the rebound in demand came with stronger inflationary pressures: the prices-paid index hit 70, a three-year high, underscoring the impact of higher US import tariffs.

“Respondents continued to mention the impact of tariffs on prices paid,” said Steve Miller, chair of ISM’s Services Business Survey Committee. “There was no indication of widespread layoffs, but the federal government shutdown was mentioned several times as affecting business activity and raising concerns for future cuts.”

Some relief may be ahead. Monday’s ISM manufacturing report showed that price pressures for producers continued to ease — a trend that could eventually benefit services firms.

Eleven service industries expanded last month, led by accommodation and food services, retail trade, and wholesale trade, while six contracted.

Employment showed signs of stabilization: ISM’s employment index rose to 48.2, a five-month high, indicating that job losses slowed.

______

2. US Companies Add 42,000 Jobs in October

Pfizer Inc. and Novo Nordisk A/S have raised their offers for Metsera Inc. as the fight for the fast-growing obesity drug developer intensifies ahead of a Delaware court hearing on Tuesday.

Novo’s latest bid values Metsera at up to $86.20 a share, or roughly $10 billion, according to a company statement. Metsera’s board deemed it superior to Pfizer’s enhanced $70-a-share offer, worth about $8.1 billion. Pfizer has two days to adjust its proposal. The US drugmaker has also filed a lawsuit seeking to temporarily block Novo’s higher bid, with a hearing scheduled for 11 a.m. Tuesday.

The escalating bidding war has prompted concerns that both pharmaceutical giants may overpay for a three-year-old startup with just 81 employees and several early- to mid-stage obesity drug candidates. Metsera raised $290 million in a 2024 funding round led by Arch Venture Partners.

Pfizer shares fell as much as 1.4% Tuesday after raising its 2025 profit outlook for the second time this year, while Novo shares gained 2% in Copenhagen. Metsera jumped 16.4% to $70.67.

“The way Metsera shares are trading suggests Wall Street expects higher bids to come,” said Jared Holz, healthcare strategist at Mizuho Securities.

Court filings revealed that Pfizer CEO Albert Bourla texted a Metsera board member on Oct. 29, offering to increase Pfizer’s bid by $3 a share if the startup would publicly declare Novo “no longer an eligible bidder.” Metsera did not respond, and Novo’s offer became public the following day. Pfizer submitted a fresh proposal on Nov. 3.

After struggling to rebound from the post-Covid slump, Pfizer has long sought entry into the obesity market, projected to reach $95 billion by 2030 and currently dominated by Novo and Eli Lilly & Co. Metsera’s emerging obesity drug pipeline makes it an attractive target for Pfizer’s long-awaited comeback effort.

______

3. Wall Street Bonuses Set to Rise Again

Wall Street bonuses are projected to rise for the second consecutive year as market volatility drives trading activity and long-awaited dealmaking returns.

According to a Johnson Associates Inc. report released Wednesday, investment bankers, traders, and wealth managers are all set to see increases in their year-end incentive pay. Equity traders could see the largest gains — up to 25% — as swings in markets boost trading volumes.

The surge in payouts follows 2024’s strong revenue rebound, when profits across the financial industry soared and firms loosened years of compensation restraint. Despite ongoing geopolitical uncertainty, an upswing in business should deliver another year of generous bonuses, Johnson Associates said.

The outlook reflects the strong third-quarter results reported by major US banks amid renewed market volatility since President Donald Trump’s trade war began. Equity traders’ bonuses are expected to climb 15%–25%, while fixed-income traders could see 5%–15% gains, the report said.

These projections align with other industry forecasts. Recruitment firm Options Group said earlier this week that stock traders’ bonuses will be about 14% higher than last year’s pool.

Corporate clients that had paused equity and debt issuance during the Federal Reserve’s tightening cycle have returned to markets, giving underwriters a boost. Equity underwriters may see bonuses rise up to 8%, while debt underwriters could see increases as high as 15%.

Johnson Associates concluded that the combination of volatility, renewed deal flow, and solid bank earnings “points to another banner year for incentive pay on Wall Street.”

______

4. Stellantis Recalls Over 320,000 Jeep Plug-In Hybrids

Stellantis NV is recalling just over 320,000 Jeep plug-in hybrid vehicles in the US due to the risk that their batteries could catch fire.

According to a notice posted on the National Highway Traffic Safety Administration’s website, high-voltage battery packs in Jeep Wrangler and Grand Cherokee models may have been built with cells vulnerable to separator damage. The automaker is advising owners to park their vehicles outdoors and avoid charging them until a fix is available.

The company said it is working on a remedy. The recall affects Wranglers produced between July 2020 and late August this year and Grand Cherokees built between July 2021 and mid-October. A company investigation found 19 fire incidents to date. Jeep said the risk of fire is reduced when the battery is fully depleted.

The recall comes as Stellantis begins to see progress from its efforts to regain market share in the US, its most important market. Shipments in North America have started to pick up after the automaker cleared excess inventories and refreshed its lineup.

Chief Executive Officer Antonio Filosa last month pledged to invest about $13 billion in the US to sustain momentum. He has reversed the strategy of his predecessor, Carlos Tavares, who focused on cost-cutting and relocating production and engineering work to lower-cost countries such as Mexico.

______

5. Zohran Mamdani Wins NYC Mayoral Race

Zohran Mamdani, 34, pulled off a historic victory to become New York City’s next mayor — a role often dubbed the second-hardest job in the US. His toughest challenge, however, may be dealing with the man holding the first: President Donald Trump.

The democratic socialist secured over 50% of the vote, defeating former Governor Andrew Cuomo, who ran as an independent and garnered just above 40%. Republican candidate Curtis Sliwa received about 7%. Mamdani campaigned on sweeping promises to make New York more affordable, expand housing, and strengthen social safety nets.

To deliver on these pledges, Mamdani will need significant federal support — more than $7 billion in federal funding contributed to the city’s budget this year alone. But Trump has already branded him a “communist lunatic” and signaled plans to restrict New York’s access to federal funds.

“If anyone can show a nation betrayed by Donald Trump how to defeat him, it is the city that gave rise to him,” Mamdani told cheering supporters in his victory speech. “And if there is any way to terrify a despot, it is by dismantling the very conditions that allowed him to accumulate power.”

Republicans have quickly cast Mamdani as a symbol of the Democratic Party’s leftward drift ahead of next year’s midterm elections. Meanwhile, the Trump administration wasted no time flexing its leverage — freezing $18 billion in New York infrastructure funding on the first day of the government shutdown, citing diversity and inclusion concerns. The freeze threatens projects such as the Second Avenue Subway extension and the Hudson River tunnel.

Mamdani is also preparing for battles with Washington over healthcare, food assistance, and immigration. He has vowed to strengthen New York’s sanctuary city status, which limits cooperation with federal immigration enforcement, and proposed $165 million in new funding for immigrant legal defense under his “Trump-Proofing NYC” plan.

“The goal is to protect our most vulnerable residents from the policies of a president who has shown nothing but hostility toward them,” Mamdani said Wednesday. Still, he emphasized that his administration would focus on uniting New Yorkers rather than engaging in personal fights with Trump.

______

6. US Supreme Court Signals Doubt Over Trump’s Global Tariffs

The US Supreme Court appeared skeptical on Wednesday of President Donald Trump’s sweeping global tariff program, as several key justices questioned whether he had exceeded his constitutional authority in imposing the duties under emergency powers.

During a two-and-a-half-hour hearing, members of the Court’s conservative majority pressed Trump’s legal team on the limits of presidential power over trade. Chief Justice John Roberts said the tariffs amounted to “an imposition of taxes on Americans, and that has always been the core power of Congress.” Justice Neil Gorsuch appeared inclined to strike down the tariffs, while Justice Amy Coney Barrett directed tough questions at both sides.

If the Court rules against Trump, the decision could lead to more than $100 billion in refunds to US importers, lift a major financial burden on businesses, and curtail one of the most aggressive trade tools the president has used against foreign partners. It would also represent one of the Supreme Court’s most significant checks on Trump’s expansive claims of executive power.

The Court’s three liberal justices — Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson — also expressed skepticism about the legality of Trump’s actions, suggesting bipartisan concern about executive overreach. A ruling could come before the end of the year, given the fast-tracked schedule the justices have adopted.

The mood in the courtroom was unusually light, with laughter punctuating parts of the argument. At one point, Kagan corrected Roberts after he mixed her up with Sotomayor, joking, “No, she’s Justice Sotomayor. She just finished.”

The case centers on Trump’s April 2 “Liberation Day” tariffs, which levy taxes of 10% to 50% on most US imports based on their country of origin. Trump has defended the tariffs as necessary to combat the US trade deficit and has also invoked similar measures against Canada, Mexico, and China to address fentanyl trafficking.

A decision against Trump could not only reshape the balance of power between the executive and Congress on trade matters but also ripple through global markets, given the sweeping reach of his tariff regime.

______

7. Dezer Development Secures $630 Million Loan for Bentley-Branded Tower in Florida

Palantir Technologies Inc. raised its full-year revenue forecast to $4.4 billion after posting third-quarter results that beat Wall Street expectations, fueled by surging demand for its artificial intelligence and data analytics software.

Revenue rose 63% to $1.18 billion in the quarter ended September, topping analysts’ estimates of $1.09 billion. The company expects fourth-quarter sales of about $1.33 billion, compared with a consensus projection of $1.19 billion. Adjusted profit was 21 cents per share, above the average estimate of 17 cents.

Palantir has now exceeded revenue expectations for 21 consecutive quarters, according to Bloomberg data. CEO Alex Karp described the company’s growth as “in a nosebleed zone,” adding, “No one else is here.”

Shares climbed as much as 7% in after-hours trading before paring gains. Palantir’s stock has soared more than 150% this year, giving it one of the highest valuations in the S&P 500 — about 85 times expected sales over the next 12 months.

The AI boom has made Palantir one of its biggest public beneficiaries. Founded in 2003 with backing from Peter Thiel and the CIA’s venture arm, the company provides software that integrates data from disparate sources and uses AI to accelerate decision-making — from optimizing corporate efficiency to shortening military response times.

Its US commercial revenue jumped 121% year-over-year to $397 million, while government contracts in the US climbed 52% to $486 million in the third quarter.

______