The daily business briefing: October 23, 2023
Treasury yields surge above 5% to highest in 16 years, Chevron to buy Hess in $53 billion deal, and more


1. Treasury yields reach highest level since 2007
The benchmark 10-year U.S. Treasury note yield climbed 11 basis points early Monday to 5.02%, the highest level since 2007. The increase fueled concerns about rising interest rates. Federal Reserve Chair Jerome Powell said last week that because bond rates are increasing borrowing costs, the Fed might be able to hold off on another interest rate hike at its November meeting, although central bank policymakers remain open to another increase if the resilient economy keeps inflation from coming down. Stock futures fell early Monday as investors reacted to rising Treasury yields. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.6% at 6:45 a.m. ET, while those of the tech-heavy Nasdaq were down 0.8%. Bloomberg, CNBC
2. Chevron to buy Hess in $53 billion deal
Chevron announced Monday that it would buy rival oil company Hess in the latest bet on the future of the petroleum industry despite a global renewable-energy push. The $53 billion Hess deal will give Chevron more access to shale production in Texas' Permian Basin, where it's already a leader, as well as Hess' major oil assets in Guyana, which should boost Chevron's growth in the coming decade. The deal continued a wave of consolidation following Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, as smaller companies benefit from high oil prices and team up with energy giants. Chevron said Hess will boost its oil and gas production by 10 percent. CNN, The New York Times
3. Big Tech leaders prepare to report quarterly earnings
Earnings season continues this week with quarterly reports from many of the Big Tech companies that have driven the S&P 500's rally this year. The benchmark index has gained 11% this year, but without Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, Nvidia and Tesla, its increase would have been a mere 0.6%, The Wall Street Journal reported. These seven companies accounted for 17% of the S&P 500's per-share earnings last year, and that figure could reach 24% by 2025, according to Goldman Sachs Group. "The growth rates that these companies deliver is incredibly important to the perception of the health of the overall equity market," Bryant VanCronkhite, senior portfolio manager at Allspring Global Investments, told the Journal. The Wall Street Journal
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
4. Drugstore closures leave some communities without pharmacies
The nation's biggest drugstore chains have closed hundreds of stores as they contend with rising competition and the costs of opioid lawsuits, leaving many vulnerable communities without pharmacies, The Washington Post reported. "According to our estimates, about one in four neighborhoods are pharmacy deserts across the country," Dima Qato, associate professor at the University of Southern California, told the Post. "These closures are disproportionately affecting communities that need pharmacies most." Rite Aid filed for Chapter 11 bankruptcy protection last week. Rite Aid, CVS and Walgreens have indicated over the last two years that they plan to close a combined 1,500-plus stores. "The economics of running those stores have just unraveled," Neil Saunders, managing director of the analytics company GlobalData Retail, told the Post. The Washington Post
5. 'Killers of the Flower Moon' can't dethrone Taylor Swift
Martin Scorsese's "Killers of the Flower Moon," starring Leonardo DiCaprio, Lily Gladstone, and Robert De Niro, had a strong opening weekend, but not strong enough to knock "Taylor Swift: The Eras Tour" from the top of the domestic box office. Scorsese's historical crime drama about murders of members of the oil-rich Osage nation in the early 1920s brought in $23 million, the director's third-best opening after "Shutter Island" and "The Departed." Swift's concert film posted $31 million in ticket sales in its second weekend, after a record-breaking opening weekend of $92.8 million, making it the first concert movie to top $100 million. The Associated Press called the battle for No. 1 "a movie match-up almost as unlikely as 'Barbie' and 'Oppenheimer.'" The Associated Press
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
June 1 editorial cartoons
Cartoons Sunday's political cartoons include Donald Trump's golden comb-over, brain drain in America, and a new TACO presidential seal.
-
5 cartoons about the TACO trade
Cartoons Political cartoonists take on America's tariffs, Vladimir Putin waiting for taco Tuesday, and a new presidential seal
-
A city of culture in the high Andes
The Week Recommends Cuenca is a must-visit for those keen to see the 'real Ecuador'
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
The end of WeightWatchers?
Talking Point The diet brand has filed for bankruptcy in the US as it struggles to survive in era of weight-loss jabs
-
Visa wants to let AI make credit card purchases for you
The Explainer The program will allow you to set a budget and let AI learn from your shopping preferences
-
A newly created gasoline giant in the Americas could change the industry landscape
The Explainer Sunoco and Parkland are two of the biggest fuel suppliers in the US and Canada, respectively
-
Discount stores were thriving. How did they stumble?
The Explainer Blame Walmart — and inflation
-
Could a private equity deal be the end of Walgreens?
Today's Big Question The pharmacy chain will be taken private in a $10 billion deal