GRO MONEY NEWS - 📈 THE MARKET FOUND ITS SMILE. CREDIT STILL WANTS COLLATERAL.

Wednesday gave us the perfect snapshot of this market.

📊 S&P 500: +0.6%
💻 Nasdaq: +1.1%
😬 Fear and Greed: still just 31
🏠 30 year mortgage: roughly 7.4%
🛢 Brent crude: roughly $109
🤖 Meta Q3 capital expenditures: $34.9 BILLION

And then there is CoreWeave.

Its June bonds were issued around a 9.675% yield. They recently traded around 15%.

That does not mean AI demand disappeared.

It means credit investors are separating AI demand from AI financing risk.

Meanwhile:

🏘 Mortgage applications fell another 5.3%.

📉 Pending home sales fell 7.3% to a record low index reading.

🏗 Dream Finders just closed its $2.2B acquisition of Beazer and became the sixth largest U.S. homebuilder.

💳 S&P promptly downgraded Dream Finders because leverage increased.

That is the lesson.

A great asset does not fix a bad capital structure.

A strategic acquisition does not eliminate credit risk.

Massive AI demand does not make debt cheap.

The asset is not the entire trade anymore. The capital stack is the trade.

Thursday we are watching Blackstone, CBRE, PulteGroup, Valero, Union Pacific, Western Digital and Bloom Energy for the next read on capital, housing, freight, energy and infrastructure.

Until tomorrow, be the best human you can be.
~ Teresa Grobecker

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Listen to GRO MONEY NEWS https://podcasts.apple.com/us/podcast/gro-money-news/id1833953369

Duration: 11m
Broadcast on: 22 Oct 2026
Audio Format: other

The market found its smile. Credit still wants collateral. Good morning. It is Thursday, October 22nd, and the equity market has apparently decided everything is fine again. Credit markets have reviewed that conclusion, asked for three years of audited financials, a personal guarantee, and additional collateral. That tension is the story today. Brought to you by Grow Group, we have billions for infrastructure, including data centers, power generation, solar, energy storage, logistics, and major real estate development. We are actively seeking qualified developers and project sponsors with substantial projects and scalable development pipelines, offering equity, debt, and structured financing tailored to the asset, its revenue, and its execution requirements. Wednesday was a strong day for equities. The S&P 500 rose 0.6% to 7757.17. The Dow gained 0.7% to 52,856.09, while the NASDAQ climbed 1.1% to 26,702.86. Technology and AI-related names helped lead the recovery. But the CNN fear and greed reading is still sitting around 31, firmly in fear territory. That matters. Prices are recovering faster than confidence. Thursday morning in Asia is delivering the same message. Japanese equities opened modestly higher, supported by Wednesday's Wall Street rally, but Middle East risk and questions around the economics of AI spending are keeping investors from going completely feral. Now we get to the part that matters for serious capital. Meta reported $64.6 billion of quarterly revenue, up 26% from a year earlier. That is real gross. Meta also spent $34.91 billion on capital expenditures during the quarter and expects 2026 capital expenditures of approximately $135 billion to $145 billion. Free cash flow for the quarter was negative $2.12 billion. Meta also approved a new non-voting class C share structure that gives the company additional flexibility for capital raising, employee compensation, acquisitions, and other corporate purposes. Read that again through the infrastructure lens. The AI build out is no longer a technology spending story.

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