Market Beats | Tesla Unveils Self-Driving Robotaxi; BlackRock AUM Tops $11.5 Trillion; JPMorgan Beats on Revenue; Buffett’s BofA Stake Dips Below 10%; Trevor Milton May Have Caused $50B in Losses

1. BlackRock AUM Surges Past $11.5 Trillion

2. Tesla Unveils Cybercab Robotaxi

3. JPMorgan Beats Forecasts on Higher Investment Banking and Net Interest Income

4. U.S. Consumer Sentiment Unexpectedly Falls

5. Buffett Reduces Bank of America Stake Below 10%

6. Hurricane Milton May Cause $50 Billion in Damages

7. Brookfield to Sell PGA National Resort for $425 Million

1. BlackRock AUM Surges Past $11.5 Trillion

BlackRock’s latest earnings report revealed $221 billion in net inflows for Q3, pushing total assets under management (AUM) to a record $11.5 trillion.

Investors poured $97 billion into BlackRock ETFs, $63 billion into fixed income products, and $5.5 billion into alternative assets — reversing last year’s $4.2 billion outflow in that category.

Year-to-date, BlackRock has seen over $360 billion in net inflows, surpassing the full-year totals for both 2022 and 2023.

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2. Tesla Unveils Cybercab Robotaxi

On Thursday night, Tesla CEO Elon Musk unveiled the Cybercab, a fully autonomous taxi with no steering wheel or pedals.

Musk said the vehicle could be in production by 2026 with a price tag under $30,000. The event also featured an updated version of Tesla’s humanoid robot.

However, investors were skeptical due to the lack of detail on how Tesla plans to leap from driver-assist to full autonomy.

Tesla shares fell 5.9% in premarket trading.

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3. JPMorgan Beats Forecasts on Higher Investment Banking and Net Interest Income

JPMorgan’s Q3 earnings showed a 31% jump in investment banking fees, far exceeding the 16% forecast. Equities trading revenue rose 27%, while net interest income surprised with a 3% gain to $23.4 billion, defying expectations of a decline.

The bank now expects 2024 full-year net interest income to reach $92.5 billion, up from earlier guidance.

JPMorgan shares are up 25% YTD.

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4. U.S. Consumer Sentiment Unexpectedly Falls

The University of Michigan’s Consumer Sentiment Index fell to 68.9 in October from 70.1 — its first decline in three months.

Concerns over the high cost of living outweighed optimism about the job market. Short-term inflation expectations rose to 2.9%, up from 2.7% in September, while long-term expectations remained at 3.0%.

Despite easing inflation, price growth continues to outpace wage gains.

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5. Buffett Reduces Bank of America Stake Below 10%

Warren Buffett’s Berkshire Hathaway has sold $10.5 billion worth of Bank of America shares since mid-July, reducing its stake to below 10%.

This change means Berkshire is no longer required to disclose trades within days, and can instead report quarterly — offering more strategic flexibility.

Analysts at Piper Sandler said the move may be viewed as neutral or even positive, giving room for investor optimism.

BofA stock rebounded 5.2%, its biggest one-day gain in three months.

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6. Hurricane Milton May Cause $50 Billion in Damages

President Joe Biden warned that Hurricane Milton could cause up to $50 billion in damages. Just weeks earlier, Florida was hit by Hurricane Helene.

Biden and Vice President Kamala Harris are expected to visit Florida this Sunday to assess the damage and reaffirm their commitment to rebuilding.

Harris also issued strong warnings to businesses against price gouging during the crisis.

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7. Brookfield to Sell PGA National Resort for $425 Million

Brookfield Asset Management is nearing a deal to sell the PGA National Resort in Palm Beach Gardens for $425 million to Henderson Park.

The sale values each hotel room at $1.3 million, reflecting the property’s prestige and location. The buyer plans to bring in Salamander Hotels & Resorts to manage the hotel, six golf courses, 19 tennis courts, and a 40,000 sq ft spa.

The resort is home to the PGA Tour’s season finale, drawing global attention each year.

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