Market Beats | McDonald’s Burgers Linked to E. Coli Outbreak; U.S. Treasuries Hit by Heavy Sell-Off; OpenAI Hires Former Uber Executive; Meta Bans Private Jet Tracking Page

1. U.S. Treasuries Hit by Heavy Sell-Off

2. OpenAI Appoints Former Uber Exec as Chief Compliance Officer

3. GM Raises Outlook, Shares Soar 10%

4. Meta Bans Private Jet Tracking Pages

5. Bank of America Issues $3.5B in Subordinated Debt

6. Verizon Falls After Weak Revenue, Slow Phone Sales

7. McDonald’s Quarter Pounder Linked to E. Coli Outbreak

1. U.S. Treasuries Hit by Heavy Sell-Off

U.S. Treasuries plunged as expectations of a “soft landing” for the U.S. economy led traders to dial back bets on aggressive Fed rate cuts.

The 2-year Treasury yield spiked by 34 basis points — the largest jump since September 2020.

Deutsche Bank analyst Steven Zeng noted that recent data highlights economic resilience, which could prompt the Fed to cut rates at a slower pace.

Swap markets are now pricing in just 127 basis points of rate cuts by September 2025, down from 195 basis points a month ago.

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2. OpenAI Appoints Former Uber Exec as Chief Compliance Officer

OpenAI has hired Scott Schools — former Chief Ethics and Compliance Officer at Uber — as its first-ever Chief Compliance Officer, underscoring the AI firm’s growing regulatory focus.

Before Uber, Schools served as Associate Deputy Attorney General at the U.S. Department of Justice.

OpenAI’s General Counsel said Schools’ experience would help the company deliver beneficial AI technologies while upholding the highest legal and ethical standards.

OpenAI also recently brought on former Biden Cabinet member and business professor Arun Chatterjee.

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3. GM Raises Outlook, Shares Soar 10%

General Motors posted strong Q3 results, with net income of $3 billion and EPS of $2.96 — well above analyst expectations of $2.45.

CFO Paul Jacobson noted improvements in year-over-year performance, higher average retail prices, lower promotional costs, and better inventory management.

The company raised its 2024 adjusted EBITDA forecast to at least $14 billion, up from $13 billion.

Despite a broader slowdown in U.S. auto sales due to high interest rates and vehicle prices, GM shares surged over 10% on the news.

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4. Meta Bans Private Jet Tracking Pages

Meta has removed several Threads and Instagram accounts that tracked private jets — including CEO Mark Zuckerberg’s — citing privacy and safety concerns.

The accounts used public data to monitor flight paths and CO2 emissions. They were banned without notice after Meta updated its privacy policies.

Most of the accounts were run by Florida college student Jack Sweeney.

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5. Bank of America Issues $3.5B in Subordinated Debt

Bank of America, the second-largest U.S. bank, has issued $3.5 billion in 11-year subordinated notes, offering a yield 1.32% above Treasuries.

Last week, BofA reported better-than-expected earnings, with trading revenue up 12% to $4.93 billion across equities, fixed income, FX, and commodities. Investment banking also outperformed.

JPMorgan analysts had forecast that the six largest U.S. banks would issue $20–24 billion in debt following earnings. Historically, they average $15 billion in October alone.

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6. Verizon Falls After Weak Revenue, Slow Phone Sales

Verizon’s Q3 revenue came in below expectations, weighed down by soft device sales.

The company added 239,000 new postpaid phone subscribers — ahead of the 222,000 forecast — but total revenue remained flat year-over-year at $33.3 billion. Gains in service revenue were offset by weaker wireless device performance.

Analysts noted that even new AI features haven’t been enough to boost iPhone 16 sales. The average phone replacement cycle has extended beyond 40 months, up from 12 months in prior years.

Verizon shares fell 4.1% in early trading.

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7. McDonald’s Quarter Pounder Linked to E. Coli Outbreak

The CDC announced that McDonald’s Quarter Pounder burgers have been linked to an E. coli outbreak that has sickened 49 people.

Ten have been hospitalized, including several children. All patients had eaten at McDonald’s and consumed Quarter Pounders.

Cases were reported in Colorado (27) and Nebraska (9), with one child developing severe hemolytic uremic syndrome (HUS).

E. coli can cause serious diarrhea and vomiting, with symptoms typically appearing 3–4 days after infection. Severe cases can lead to kidney damage.

McDonald’s shares dropped over 10% after hours.

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.