Good Afternoon. On this day in 1846, Elias Howe received U.S. Patent No. 4,750 for a lockstitch sewing machine. The design mechanized hours of hand labor, but turning invention into business still required manufacturing, licensing, and years of patent fights.

Today’s markets had their own tight fit. Apple folded a larger screen into a pocket, while wholesale prices, oil, and bond yields squeezed expectations for easier money. Retailers showed why the stitching matters: sales can look sturdy even when tariffs, margins, and household budgets pull in different directions.

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

🔢 Big number: $107.63 — where Brent crude settled after climbing roughly 6.3%. The move doesn't stay inside an oil chart: it can reach freight, packaging, air travel, household budgets, and the interest-rate assumptions behind almost every valuation.

Apple has introduced its first foldable iPhone, moving into a category that rivals have spent years developing. The hardware is new, but the business test isn't whether the screen bends; it’s whether customers see enough extra usefulness to justify a price closer to a laptop than a traditional phone.

The news: The iPhone Duo opens to a 7.6-inch display and closes around a 5.4-inch outer screen. It starts at $1,999, uses Apple’s new A20 Pro chip, and includes a hinge made from more than 100 components. Preorders begin October 16, with availability scheduled for October 23. Apple says major apps are already adapting to its split-screen layout.

What’s next: A premium launch can protect margins and create room above the existing iPhone lineup, but Apple can't assume its installed base will upgrade on novelty alone. Watch whether multitasking, cameras, and battery life make the format practical after the first week. Durability claims and developer support will matter more than the opening-day spectacle.

Source: Apple

Prices paid by U.S. producers rose again in August, and the pressure wasn't limited to crude oil. Energy, transportation, and warehousing all became more expensive, which means businesses may have to decide whether to absorb those costs, pass them to customers, or redesign how goods move.

The news: The Producer Price Index for final demand increased 0.4% in August and 5.4% over the prior year, so businesses aren't seeing broad relief. Goods prices rose 1.1%, led by a 4.2% energy increase, while services added 0.1%. Diesel jumped 24.1%, transportation and warehousing rose 2.3%, and truck-freight prices increased 2.0%. The measure excluding food, energy, and trade services still advanced 4.7% annually.

Bottom line: One report can't determine the Federal Reserve’s next move, but it can narrow the case for relief. The useful question is whether energy and freight increases stop at the producer level or spread into consumer prices and wages. Companies with pricing power can manage that handoff; those without it may see revenue hold up while margins weaken.

Source: U.S. Bureau of Labor Statistics

Wall Street's fourth straight decline wasn't driven by one disappointing earnings report. A renewed oil surge lifted the cost of energy, raised inflation worries, and pushed Treasury yields higher, giving investors less reason to expect central banks will make borrowing cheaper soon.

The news: Brent crude settled at $107.63 a barrel after rising roughly 6.3%, while U.S. crude finished at $102.48, up about 6.7%. That isn't staying inside energy markets: the S&P 500, Dow, and Nasdaq were all down late in the session, and the 10-year Treasury yield climbed to roughly 4.9% from 4.8%. Markets put the chance of another Federal Reserve increase near 73%.

Big picture: A geopolitical supply shock can't be fixed with an interest-rate increase, but policymakers still have to manage the prices and expectations that follow it. If oil remains above $100, transportation and household costs could stay elevated after the first headlines fade. Tomorrow’s consumer-inflation report will matter, yet current fuel prices may shape the meetings after it.

Source: Associated Press

American Eagle Outfitters reported record quarterly revenue, but the composition tells a more useful story than the headline. Aerie is attracting shoppers, while tariff refunds provided much of the profit improvement, so the retailer can't treat every dollar of this quarter’s margin as permanently repeatable.

The news: Revenue rose 8% to $1.38 billion, with comparable sales up 6%. Aerie’s comparable sales increased 19%, while the American Eagle brand slipped 1%. Gross margin expanded to 48.7%, but a $179 million tariff-refund benefit added 13 percentage points to that improvement. Management now expects fiscal-year operating income of $540 million to $550 million.

What’s next: Brand momentum can continue, but a refund isn't the same as a healthier merchandise margin. Management will need Aerie’s growth, better women’s apparel performance, and disciplined advertising to replace that temporary lift. The second half should reveal whether customers are buying because the assortment improved or because marketing and one-time accounting effects made the quarter look stronger.

Source: American Eagle Outfitters

Academy Sports + Outdoors increased sales and earnings even as comparable sales edged lower. That combination isn't contradictory: new stores, online growth, tighter inventory, and tariff-refund reinvestment can support the business while lower-income shoppers remain selective about discretionary purchases.

The news: Quarterly sales rose 3.0% to $1.65 billion, while comparable sales fell 0.4%. Ecommerce increased 12.8%, adjusted earnings per share grew 19.1% to $2.31, and inventory units per store declined 5.6%. Academy isn't slowing expansion: it opened three stores in the quarter, plans eleven more in the third, and raised its full-year earnings outlook while keeping its sales forecast.

Bottom line: Expansion can produce growth before existing stores regain momentum, but it can't hide weak household demand forever. Leaner inventory reduces markdown risk, and ecommerce gives customers another route to buy. The next test is whether new locations remain productive after their openings and whether value investments turn flat comparable sales into durable traffic rather than a short promotion cycle.

Source: U.S. Securities and Exchange Commission

The European Central Bank raised borrowing costs for the second time this year as expensive energy threatened to keep inflation above target. The euro-area economy has been stronger than expected, but that resilience isn't a free pass: it gives policymakers more room to tighten while households and businesses absorb another cost increase.

The news: The ECB increased all three key rates by 0.25 percentage points, taking the deposit rate to 2.50%. Its staff expects inflation to average 3.0% this year, 2.5% in 2027, and 2.1% in 2028. Growth is projected at 0.9% this year and 1.4% next year, both stronger than the bank’s June forecast. Officials aren't committing to a preset path.

Big picture: Europe can't produce cheaper oil with monetary policy, but the ECB can try to prevent the shock from resetting wages and prices. Higher rates also make investment and refinancing more expensive, creating a difficult balance between current inflation and future growth. Watch energy duration, lending conditions, and whether resilient demand starts to soften before the bank’s next meeting.

Source: European Central Bank

China and the United States are working toward reciprocal tariff reductions before their leaders meet later this month. The proposal isn't a sweeping trade reset, but even a limited agreement could lower costs for selected products and create a clearer lane for companies planning purchases across the world’s two largest economies.

The news: Negotiators are discussing tariff reductions on $30 billion of goods from each country, focused on products considered nonsensitive. Presidents Donald Trump and Xi Jinping are expected to meet in Washington on September 24, while the broader tariff truce expires November 10. China says it wants the reductions implemented at an early date, but the final product list hasn't been announced.

What’s next: The number sounds large, yet it represents a targeted opening rather than a solution to technology controls, industrial policy, or strategic competition. Companies shouldn't change supply chains until they know which goods qualify and how long the relief lasts. The meeting can improve the tone, but enforceable details will decide whether importers receive a durable cost reduction.

Source: Associated Press

A Bank of Japan policymaker says artificial-intelligence demand is supporting manufacturers while raising the cost of chips, copper, equipment, and power generation. Japan isn't a leading global provider of AI services, so its upside comes largely from supplying the buildout—and could fade when capacity spending eventually slows.

The news: Policy Board member Kazuyuki Masu said Japan’s 1.0% policy rate remains below the bank’s estimated 1.1% to 2.5% nominal neutral range. He argued rates should rise further over time, warning that inflation could otherwise force faster action later. Freight costs increased nearly 6% in July, while yen weakness, food prices, oil, and AI-related demand remain important inflation risks.

Bottom line: Japan can't rely on AI investment to offset every energy and currency shock, and it can't tighten so quickly that wage gains disappear into debt service. Gradual normalization offers flexibility, but the window narrows if prices reaccelerate. Businesses should watch real wages and distribution costs alongside chip demand, because household purchasing power ultimately determines whether growth can survive higher rates.

Source: Bank of Japan

Q: What do you call fake spaghetti?

A: An impasta.

Product cannibalization: it happens when a company’s new offering takes sales from one of its existing products, so headline demand doesn't automatically equal fully incremental growth.

In a sentence: Apple can't know yet whether the iPhone Duo expands the premium-phone market or mainly redirects buyers who would have purchased another iPhone.

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