← The Rundown
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Public.com presents the rundown, your daily market update, in under 10 minutes. My name is Zeydad Mani, and Today is Wednesday, October 15th. In today's episode, we'll tell you why OpenAI is partnering with Walmart and their latest revenue numbers, forcing them to make some desperate business decisions. We also recap earnings from bank of America, Morgan Stanley, and asml, then stick around to the end of the show to find out why. You're going to start seeing podcasts in your next Netflix feed pretty soon. We got a great show for you today. Let's go. Well, guys, the markets went on a wild ride yesterday. The S P 500 and Nasdaq both started the day down more than 1%, but then clawed their way back into the green by midday. And then President Trump decided to post about cooking oil, which tanked the markets into the red. The S P 500 ended up closing down 0.2% and and the NASDAQ lost 0.8%. So let's talk about the cooking oil stuff in a truth social post. Yesterday, President Trump accused China of committing an economically hostile act by refusing to buy US Soybeans. He then threatened to stop buying cooking oil from China in retaliation, saying that we can easily produce cooking oil ourselves. Now, one reason that China stopped buying soybeans from the US Was because of Donald Trump escalating trade tensions with China back in April. But yeah, I guess the US Isn't going to buy cooking oil from them anymore. I mean, look, it seems kind of silly, but it's freaking out investors because trade tensions between the two largest economies are starting to heat up again and neither side seems to be backing down right now. The last week, China tightened export controls on rare earth metals. Then earlier this week, they sanctioned US ships. And they're also investigating US tech companies. And for the US side, President Trump is threatening 100% tariffs on China starting November 1st and a potential cooking oil embargo. Now, we'll have to see if all of this is noise, but it's definitely keeping the markets on its toes. So, yeah, a lot going on right now for the markets. You know, we're staying on top of all of it for you guys. We're watching Trump's true social post. We're watching the earnings. We're watching Sam Altman's Twitter feed. So make sure you guys are subscribed to the podcast and tuning in every day to to stay in the loop. Let's run through some headlines, starting with OpenAI because they got a lot going on this week. Yesterday, OpenAI announced a major partnership with Walmart that will allow ChatGPT users to browse and buy products from walmart directly inside ChatGPT. So soon you'll be able to ask ChatGPT ideas for a cheap Halloween costume, and it'll show you actual products from Walmart and, and give you the option to buy right there without leaving the chat. Now, I think this is a win win kind of deal. It's a smart move for Walmart because it's a way for them to reach new customers. Because remember, ChatGPT has 800 million weekly active users. And for OpenAI, I mean, this makes ChatGPT even more ingrained in people's lives. People are going to use it for shopping now. And more Importantly, it allows OpenAI to make more money. For every sale that's made through Chat GPT, OpenAI will take a small cut of that sale. And look, the reality is that OpenAI needs the revenue because according to an article from the Times, OpenAI is now doing about $13 billion in annual reoccurring revenue. Most of that coming from subscription fees for people subscribing to ChatGPT plus or ChatGPT Pro. But remember, OpenAI has committed to over $1 trillion in spending for AI chips and data centers over the next few years. So $13 billion a year isn't going to be nearly enough to pay for all of that. So that's why they're rolling out these shopping features. They're probably going to start rolling out ads pretty soon. And Another way that OpenAI plans to monetize ChatGPT is to allow erotica content for verified adult users. This is coming directly from Sam Altman himself. He tweeted about this yesterday. He says that OpenAI plans to relax its safety filter to allow more adult conversations. I guess Sam Altman must seen the numbers that only fans does, and he wants ChatGPT to get a piece of that. Personally, I, I think this is a wild move and I, I think it's pretty bad for their brand. But it, it just shows you that OpenAI must be really desperate for revenue at this point. Point. I can't believe our electricity prices are going up for this. I wonder if OpenAI is going to backtrack here, because that, that is a pretty bold move. Let's shift gears and talk about Wall street banks. More banks reported earnings this morning, and Wall street is just absolutely cooking right now. Let's start with bank of America. They posted a massive beat for the quarter with profits jumping 23% to $8.5 billion. That's a full $1 billion more than than what analysts were expecting. On top of that, revenues climbed 11% to just over $28 billion, fueled by a 43% surge in investment banking fees and an 8% boost in trading. Like we said on yesterday's show, Wall street is taking advantage of the market chaos and all the M and A activity. CEO Brian Moynihan said that every line of the business improved in the third quarter. By the way, they weren't alone. Morgan Stanley also crushed earnings. Their profits jumped 45% from a year ago to $4.66 billion, while revenue climbed 18 to a record $18.2 billion. Now, just like all the other big banks, they saw a big rebound in deal making. Their investment banking fees soared 44, while stock trading revenues jumped 35. And and their massive wealth management arm also had a strong quarter. It was up 13, helped by the higher client asset levels and rising transaction fees. As the stock market goes up, the rich get richer. And Morgan Stanley, that manages all that wealth, takes a higher cut. So, yeah, between bank of America, Morgan Stanley, JP Morgan, Goldman Sachs, even Wells Fargo, investment banks are partying like it's 2007. Well, let's hope they're not partying that hard because we know how that story ended. Let's talk about some stocks making moves today. Shares of ASML are up this morning after the chip manufacturing equipment company gave upbeat guidance for next year. The company now expects revenue growth in 2026, which is big news because many investors were bracing for a slowdown. ASML is based in the Netherlands and they make the extremely complex lithography machines used to build advanced AI chips. I mean, basically, without asml, you wouldn't be able to make Nvidia chips. Now, the company does expect sales in China to take a significant hit next year due to U.S. export restrictions. Remember, the U.S. has been tightening its grip on chip exports to China. And and since ASML uses some US Technology in their machines, they have to follow those rules. That means that ASML's lithography machines can't be sold to some Chinese chip makers. The other concern for ASML is that they only have a handful of customers. There's only a few companies in the world that manufacture chips. Companies like Samsung, intel and tsmc. And recently Samsung and Intel have seen a spending slowdown. But the good news is that intel just got a big investment from the US And Nvidia that might help push intel to spend more and buy more of ASML's machines. ASML still sees the AI infrastructure build out to be a tailwind for the business, and investors are buying into that story for now. Shares of ASML are up more than 2% this morning following the earnings and zooming out. Shares of ASML are up more than 40% for the year, and they recently became the most valuable company in Europe. Now on the flip side, shares of Abbott Labs are down this morning after the medical company missed on revenue for the quarter. Abbott Labs says that they're seeing weaker demand for COVID 19 test kits, which dragged down their diagnostic sales, down by 6.6% in Q3. And while its device division held up thanks to products like glucose monitors and pacemakers, investors are more focused on the growing tariff threat. The Trump administration recently launched an investigation into the medical device industry that could lead to new tariffs, putting even more pressure on Abbott Lab's margins. Abbott CEO said earlier this year that tariffs could cost the company up to $200 million. So yeah, the company seems to be getting squeezed from both sides. They're having slower sales and tariff costs, and as a result, investors are getting nervous. Shares of Abbott Labs are down more than 3% this morning following the earnings let's wrap the show with the fun fact Netflix is jumping into the podcasting space thanks to a deal with Spotify. Netflix will start streaming full video versions of some of Spotify's biggest shows, including shows from the Ringer like the Bill Simmons Podcast and the Rewatch Bulls, and also true crime shows like the Serial Killers and Conspiracy Theories. The shows will start streaming on Netflix in early 2026, and as part of this deal, Spotify will pull these podcasts from YouTube, which is an interesting move. You know, YouTube has quietly become the biggest platform in the world for consuming podcasts. Yes, it's even bigger than Spotify. So Shameless Plug here. Please subscribe to our YouTube channel. So Netflix is now trying to compete with YouTube when it comes to podcasts. I think this is a pretty smart move by Netflix. It's an easy way for them to offer more content on their platform without spending hundreds of millions of dollars on a terrible movie. These podcasts already have big audiences, including myself. I really like a lot of the sports podcasts from the Ringer, and I've been listening to the Bill Simmons podcast for like over a decade now. So I wouldn't be surprised if Netflix starts making more deals to put podcasts on their platform. Well, all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you, if you did and you have like 8 extra seconds, consider giving us a 5 star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.