Good Afternoon. On November 5, 2007, Google and 33 partners unveiled their plan for Android phones. Phone makers could share the same code and change it to suit their own devices.

—Rosie, Wyatt, Evan & Conor

In this edition

Supplied by StockTwits. ONEQ tracks the Nasdaq Composite; IEF holds U.S. Treasury bonds; GLD tracks gold. These three references are ETFs.

The read: AI shares drove a brutal selloff that wiped out Wednesday’s rally. The S&P 500 closed down 4.4%, the Nasdaq lost 5.5%, and the Dow dropped more than 1,800 points. Investors worried that new limits on data centers could slow the AI building boom.

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28 Wishes sells ice cream in Los Angeles. Below 70°F, sales fall about 20%. The weather is out of their hands. Rent isn't.

So the owners started putting about $20 a day into Kalshi weather markets, taking the cold side. The days that keep customers away now pay something back.

This is hedging. Big companies have done it for decades, buying protection against bad weather, fuel spikes and rising rates. It used to take a broker, a trading desk, and an order size no corner shop could meet.

Kalshi opens it up. Contracts on weather, fuel prices, inflation, tariffs and regulation, starting at a few dollars. Take a position on the outcome that would hurt you. If it hits, the payout softens it. If it doesn't, the contract expires and the good month was the point.

See how other owners are doing it at Kalshi.com/hedging

Qualcomm’s car-chip business nearly doubled. Its much larger phone business shrank by a quarter. That’s a tough gap to drive across.

Phone-chip sales fell 26% to $5.14 billion in its fiscal fourth quarter. Car-chip sales jumped 89% to $1.99 billion. The faster-growing business still brought in less than half as much money.

Total sales fell 8% to $10.32 billion in the quarter ended September 27. Adjusted profit per share dropped 28% to $2.17. That measure leaves out certain costs and gains.

Qualcomm is building beyond phones, from cars to connected devices and data centers. Management expects revenue outside phones to grow more than 60% in fiscal 2027. That’s a forecast, rather than growth already in the bank.

Chip-making costs are rising across the industry. Qualcomm says price increases should fully help its chip unit’s profit margin in the second half of fiscal 2027.

For the first quarter of that year, it expects $10.4 billion–$11.2 billion in sales. The new businesses are gaining speed. Phones still set much of the pace.

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💼 Fewer new claims, more people still collecting

New applications for jobless benefits fell 6,000 to 189,000 in the week ended October 31. The prior week was revised up to 195,000. The four-week average also fell, smoothing out some of the weekly swings.

The picture was less rosy for people already collecting benefits. That count rose 23,000 to 1.72 million in the separate week ended October 24. Fewer new claims suggest fewer fresh layoffs; they don’t tell us how fast people are finding new jobs.

⚙️ More output, almost no extra hours

U.S. businesses got more work done without adding many hours. Output per hour rose at a 3.6% yearly pace in the third quarter. That’s the pace if the quarter’s growth lasted a full year, rather than the actual three-month gain.

Labor costs per unit of output fell at a 0.7% yearly pace. That wasn’t a pay cut: hourly pay and benefits rose. Businesses made more for each hour worked, which can ease pressure to raise prices.

🛢️ Higher oil prices fund a bigger payout

ConocoPhillips earned more even as it produced less oil and gas. Third-quarter profit rose to $4 billion from $1.7 billion a year earlier. Higher prices did the heavy lifting: its average selling price rose 32%.

The company returned $3.4 billion through buybacks and dividends in the quarter. It also raised its quarterly dividend 11% to 93 cents a share. The bigger payment is due December 1 to shareholders on record November 16.

Two brands, two very different shopping trips. Coach’s sales rose 16% in Tapestry’s fiscal first quarter. Kate Spade’s fell 10%.

Coach brought in $1.66 billion, far more than Kate Spade’s $233 million. That bigger bag helped lift total sales 11% to $1.89 billion in the quarter ended September 26.

Coach sold more handbags, and their average selling price rose by a low double-digit percentage. Tapestry’s profit from running the business rose 29% to $424 million.

The company raised its fiscal 2027 adjusted profit forecast to $8.25–$8.35 a share, from $7.80–$7.90. Adjusted figures leave out certain costs; this outlook also excludes the year’s extra week.

Coach is pulling ahead, but Kate Spade still needs to win back sales. One strong brand doesn’t make both brands strong.

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Britain’s central bank raised rates even as recent energy news offered some relief. It wants to stop today’s price shock from becoming tomorrow’s habit.

The Bank of England lifted its main rate to 4% from 3.75%. Eight members backed that move. The ninth wanted a bigger rise, to 4.25%.

Annual inflation was 3.5% in September. The bank’s forecast puts it around 5% in mid-2027 as higher energy costs work through the economy. Those are forecasts, not prices already paid.

Higher rates make borrowing more costly and can cool spending. The bank sees limited signs that the energy shock has spread into wages and other prices, but it doesn’t want to wait for that to happen.

What happens next depends heavily on energy prices and the Middle East conflict. A lasting fall in energy costs would change that outlook.

🚗 Toyota lifts its outlook after a profit drop

Toyota’s quarterly profit fell 19% to ¥759.4 billion, but its view of the full year improved. It now expects ¥3.57 trillion in profit for the year through March 2027, up from ¥3.25 trillion. That still falls short of the previous year’s ¥3.8 trillion. Better expectations don’t erase a weaker quarter.

🚢 Port delays lift Maersk’s outlook

Shipping delays are helping Maersk charge more. Higher freight rates helped lift its third-quarter operating profit to $3.3 billion from $1.3 billion a year earlier. The Danish shipper raised its full-year underlying operating profit forecast to $8 billion–$8.5 billion, from $4.5 billion–$6.5 billion. Crowded ports can pay well for carriers—and cost their customers.

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🥸 Dad Joke of the Day

Q: How do cows stay up to date with current events?

A: They read the moos-paper.

📖 Vocab Word of the Day · Related diversification

Related diversification: A move into a new business that uses skills or tools a firm already has. The products change, but some of the know-how carries over.

In a sentence: Qualcomm brings its chip skills to cars through related diversification.

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