This roundup covers a shift toward consumer staples, Meta Platforms' cash burn and General Motors' weekly stock decline. The Consumer Staples Select Sector SPDR Fund gained 11% in October through Friday. The fund was approaching the strongest monthly performance since the fund began trading in December 1998. However, the Technology Select Sector SPDR Fund declined 6.9% over the same period. Money has moved from megacap technology shares into consumer staples rather than leaving equities altogether.
Walmart shares gained about 15% this month, approaching the strongest monthly increase since March 2000. Procter & Gamble shares advanced 5.9% on Thursday after the company reported 4% organic sales growth. The daily increase was Procter & Gamble's largest since March 26, 2020. The equal-weight S&P 500 is outperforming the capitalization-weighted benchmark by the largest monthly margin since April 2009. The State Street SPDR S&P 500 ETF Trust remains less than 3% below the fund's record.
Meta reported negative third-quarter free cash flow of $2.12 billion, the first cash burn since the quarter of Meta's 2012 public listing. Meta's capital expenditure consumed 104% of operating cash flow. Meta raised the lower bound of the company's 2026 capital expenditure forecast to $135 billion. The artificial intelligence trade remained under pressure for a second week as attention shifted from investment valuations to financing.
Meta's third-quarter revenue increased 26% to $64.6 billion. Meta forecast fourth-quarter revenue of $73 billion to $76 billion, compared with a consensus estimate of $73.6 billion. Meta shares declined nearly 7% on Thursday. The Nasdaq 100 dropped 2.9%, recording the index's weakest session since June. The Philadelphia Semiconductor Index fell 6.7% as Lam Research shares dropped nearly 12% following Lam Research's results.
CoreWeave, a data-center operator backed by Nvidia, has seen the yield on the company's 2032 notes approach 16%, more than three times the Treasury rate. CoreWeave shares declined about 11% this week. CoreWeave shares have lost nearly 40% over a month.
SpaceX reported the company's first profit since going public four months ago. SpaceX revenue increased 161% to $14.6 billion, with AI computing generating half of revenue. CEO Elon Musk said on Tuesday that every hyperscaler and dozens of smaller companies were persistently seeking additional computing capacity from SpaceX. SpaceX shares rose 9% on Wednesday but lost that gain on Thursday.
The roundup also covers General Motors shares falling more than 10% this week, the company's weakest weekly performance since Silicon Valley Bank collapsed in March 2023, despite revenue and adjusted earnings per share exceeding estimates.
Consumer Staples Outperform Tech in October, Meta Posts Cash Burn, GM Shares Drop Sharply
BenzingaShare
Summary
Weekly market report shows Consumer Staples outperforming Tech in October, with the Consumer Staples Select Sector SPDR Fund rising 11%, its best month since 1998. The Technology Select Sector SPDR Fund fell 6.9%. Meta Platforms burned $2.12 billion in cash during Q3, the first since its 2012 IPO. General Motors shares dropped over 10% this week, the worst decline since March 2023. Activity in the crypto market remains closely watched alongside broader equity moves.
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