US DOLLAR SOARS TO 6-MONTH HIGH

Strong U.S. data keeps fuelling the dollar's rise. The U.S. services sector (which accounts for 2/3 of the economy) unexpectedly hit a 6 month high in August. Worrisome is that businesses indicated they are paying higher prices for inputs – which may mean inflation pressures continue.

The Bloomberg dollar index could set a record with 8 straight weeks of gains. This would be the longest ever run of increases going back to 2005. This is bad news for European and Asian currencies. Europe's economy is shaky, and China's growth is slowing, pushing the yuan to a 16-year low.

Investors think central banks in Europe and Asia will cut rates faster than the FED to help their economies. Putting further downward pressure on their currencies.

GRIT TAKE: The U.S economy (and therefore the U.S dollar) is the strongest game in town right now with lower risk of a recession than other major economies. And given how strong the economic data keeps coming in traders are betting that interest rates are going to stay higher for longer. This is driving record amounts of money into safe places like money market funds where investors can park their cash and earn +4-6% risk-free.

APPLE DOWN 3% PRE-MARKET

Apple stock dropped 3.6% yesterday and is down another 3% pre-market. The stock has gone from trading above the 50-day moving average, to trading below the 100 day moving average in just 2 days! The dip follows China's iPhone ban for government officials, which may extend to government-backed agencies and state companies.

This isn't surprising. China aims to cut reliance on U.S. tech, like its recent controversial Huawei phone release. Meanwhile, the U.S. is limiting chip exports to China. The chip wars are heating up!

Bad News: China is crucial for Apple, accounting for 19% of its revenue. Plus, it's been a growth powerhouse, tripling revenues in the last decade. Don't forget, most iPhones are made there by millions of Chinese workers.

Good News: Hold tight, Apple fans! The iPhone 15 lineup drops next week!

GRIT TAKE: iPhone 15 needs to be a game-changer, not just a pricier screen and AirPods. We're talking Steve Jobs-level innovation to justify the stock's leap from an 11x PE in 2015 to 29x today. We're long-term bullish, and yes, Genevieve's invested!

CAN’T STOP. WON’T STOP. GAMESTOP.

WallStreetBets Alert: GameStop had a great quarter! Revenue hit $1.16B, beating the $1.14B estimate. EPS? Just a 1¢ loss vs expected 14¢. Thanks to major cost-cutting, net loss plummeted from -$108M last year to a mere -$2.8M now.

GRIT TAKE: GameStop's back from the meme-stratosphere, now at $18.75 from a 2021 high of $86.87. The billion-dollar Q: Can it profit again?

👨‍💼 New Chairman Ryan Cohen? Just started. Let's see his magic unfold!

💰 Balance Sheet? Rock solid—$1.195B in cash, almost no debt.

⏳ Time? Already free cash flow positive this year. They've got runway.

Only 2 analysts cover it—both lukewarm. Wall Street missing the vision?

 🎬 Bonus: Relive the meme-stock mania with "Dumb Money," premiering at Toronto's film fest tomorrow. Canadian GRIT fans— enter to win FREE tickets HERE!

Coming Up…

EIA Alert: U.S. oil stockpiles expected to drop by 2.1M barrels! 🛢️ Also on deck: U.S. jobless claims & productivity stats. 📊 Earnings spotlight: Digital World Acquisition & DocuSign. 📈

Heads up for next week: Apple's iPhone 15 drops!

Headlines You Need To Know:

• Instacart prepares to set IPO price

• Canada keeps interest rates at 5%

• Comcast and Disney agree to speed up Hulu deal

• Prosecutors will seek criminal indictment on Hunter Biden

• Huawei phone is latest shot fired in the US-China tech war

• Bill Gates bets big on a Bud Light comeback with major purchase

• FDA could greenlight new covid boosters as early as Friday

• Tropical Storm Lee to strengthen into Hurricane

• WeWork declares intent to renegotiate almost all leases

• $100 Oil? What a price spike could mean for the world

• Roku layoffs will affect 10% of staff

• India wants to change the country’s name to Bharat

• Fed set to double its economic growth forecast

Just for fun…

Would you live in a cruise for 3 years?

Have you ever dreamed of giving up all your responsibilities and living on island time? If so, I have some great news for you. Starting November 1st, Life At Sea Cruises is offering a 3-year year cruise for only $30,000 per person per year. In the past, it would have easily cost you $75,000+ for a trip like this which is why they call themselves the affordable option. The cruise is promising to take you to 135 countries, 375 ports, and all seven continents. It has 400 cabins, with room for up to 1,074 passengers. Would you take a trip like this? P.S THIS IS NOT AN AD!

3 Most Important Charts Right Now

Non-mortgage interest expense % of wages

Interest expenses as a % of of wages has returned to pre-recession levels

Delinquency For Auto-Loans

Severe delinquency for auto-loans are highest since 2006

Bankruptcy Filings Moving Up In Recent Weeks

4-week moving average of bankruptcy filings near a high

TWEET OF THE DAY

🚀 Exciting News: A Powerful Partnership is Born! 🤝📈 

We are thrilled to announce a dynamic creator partnership between Grit Capital and the incredibly talented Joyee Yang! 🌟

 🔥 Meet Joyee, a self-taught personal finance expert making waves across social media. With her unique ability to unravel complex finance concepts and provide invaluable insights into the stock market, Joyee has grown over 157,000 fans in just 7 months!

 📲 Joyee's consistent engagement and unwavering dedication have paved the way for a remarkable online presence. She's a force to be reckoned with when simplifying complex financial ideas into practical advice that resonates deeply with her audience.

Not only does she clarify the complexities of finance, but she also empowers us with actionable strategies to enhance our financial well-being.

 🤝 We at Grit Capital are ecstatic to partner with Joyee as we set out on a mission to enhance financial education and create a meaningful influence in people's lives. Together, we're set to break barriers, shatter myths, and introduce a new era of financial enlightenment. Stay tuned for an exciting series of collaborations, insights, and growth!

 Joyee’s Links:

Instagram: https://www.instagram.com/joyeeeyangg/

TikTok: https://www.tiktok.com/@joyeeyang0

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.