Evening wire · Wednesday 10/28

What moved today.

01

Fed holds at 3.75–4.00% — 10–2, with two dissents for a hike; December is the live meeting

The FOMC held Wednesday (10/28), 10–2, keeping the funds rate at 3.75–4.00% after September's hike — the first in three years. The statement: activity expanding at a strong pace, spending resilient, inflation still elevated (September CPI 3.7%), and the committee wants 'the accumulation of more information' before moving. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented — both wanted a quarter-point hike now. No clear December signal in the statement; market odds for a December hike were put near 80% in wire coverage. First fresh read comes Thursday: September PCE, the Fed's preferred gauge. Sources: Fed statement via Morningstar/Dow Jones · Marketplace · Reuters — Trading Day.

02

Israel count reverses the exit polls: Netanyahu bloc at 53, opposition at 48–49 — still nobody at 61

Tuesday's exit polls had Eisenkot's bloc ahead; the actual count flipped it. With ~86–90%+ counted Wednesday, Likud holds 26–27 seats as the largest party, Netanyahu's current coalition sits at ~53, and Gadi Eisenkot's Change Bloc at 48–49. The two Arab lists — Joint List 12 and Ra'am 7 — hold 19 combined and the balance of power, and neither big bloc will govern with them easily. Turnout was 77.7%, highest since 1999. President Herzog urged all sides to avoid another election round. The shekel fell ~2% on the deadlock. Counts are still provisional; final tallies expected Wed–Thu. Sources: NY Post · Le Monde · Israel RealTime (partial counts).

03

Iran war bill: $47 billion and counting — Pentagon data via Reuters, up 25%+ since July

Reuters, Wednesday: Pentagon data obtained by Reuters puts U.S. spending on the Iran war at over $47 billion so far — more than 25% above the Pentagon's July estimate — before base-repair costs. Inside the number: over $29 billion just to replace expended munitions, and over $6 billion for lost equipment and platforms, including many drones. The war began in February as a supposedly short campaign; a naval blockade is now in place, and U.S. officials told Reuters the Pentagon is planning for a possible restart of heavy fighting if ordered. This lands six days before midterms where energy costs are already hurting Republicans. Sources: Reuters.

04

Oil back over $100: WTI settles $102.78, Brent $115.32 — Houthi refinery claim (unconfirmed) plus tight U.S. stocks

Wednesday settle: WTI +$2.88 to $102.78, Brent +$1.44 to $115.32. Drivers: Yemen's Houthis claimed a ballistic-missile hit on Saudi Arabia's Ras Tanura refinery (550,000 bbl/day) — Saudi authorities have not confirmed the strike or any damage; a Saudi-led coalition said it intercepted other missiles and drones. EIA: U.S. commercial crude fell 1.9M barrels to 410.6M, a 12-week low; the Strategic Petroleum Reserve fell to 282.6M, lowest since 1982; distillates sit 10% below the five-year average. ULSD (diesel) settled at $4.8152/gal. Separately, the WSJ reported (via Bloomberg/Rigzone) that the U.S. has told Gulf nations to prepare for a possible short, intense post-midterm campaign against Iran — Trump undecided, per that report. Sources: DTN · Reuters via WNFL · OilPrice (EIA).

05

Big Tech split after the bell: Microsoft beats on Azure +48%; Alphabet misses, burns cash, drops hard

Microsoft (fiscal Q1): revenue $92.3B vs ~$90.7B expected, EPS $4.89, Azure revenue +48%, capex $39.4B — below the ~$45.9B feared. Stock up roughly 5–6% after hours. Alphabet (Q3): revenue $127.6B, up 25% but just under the $128.2B estimate; Google Cloud doubled to $30.7B, yet free cash flow was negative ~$9 billion, Search and YouTube ad revenue missed, and an $8.7B equity-securities loss dragged EPS. Stock down roughly 7–10% after hours (reports varied by snapshot). Same story both ways: the AI buildout is real revenue and a real cash bonfire. Amazon reports Thursday. Sources: Reuters Breakingviews · MarketBeat (Microsoft) · Market Flux (both).

Quick hits

Trucking / dyed diesel: the relief map is now a state-by-state patchwork, Transport Topics reported today. Florida's Oct. 6 order (60 days) covers farming and hauling agricultural commodities only, penalties suspended for those uses — it does not cover general freight. Other states went broader (WV, CO, AL, AR, ID listed). Federal relief runs through Dec. 31. A rock hauler running red diesel on a non-ag load in Florida is still exposed — worth knowing before anyone at the yard gets creative. Transport Topics · Florida DOR TIP 26B05-03
Abortion pill: a 4th Circuit panel in Richmond leaned Wednesday toward reviving North Carolina's in-person prescribing/follow-up rules for mifepristone, questioning whether FDA rules preempt state law after Dobbs. No ruling yet — if it lands, other states are expected to copy the model. Reuters
Florida early voting: 3.5M+ ballots cast statewide with six days left; Republicans hold a narrow registration lead among those who've voted (349,666 R vs 320,432 D across FOX 13's nine-county region; Republicans lead in Citrus, Hernando, Pasco, Sarasota, Manatee, Hardee). Registration is not the vote itself — it's a turnout shape, not a result. FOX 13
Thin, flagging it: multiple aggregators report a federal grand jury in Washington refused a DOJ bid to indict former Jan. 6 witness Cassidy Hutchinson. Seen only in aggregator/left-lane roundups as of this edition — no primary wire story verified yet, so treat as unconfirmed. CivMix roundup
Propaganda read

Israel is today's cleanest spin split. Right lane (NY Post): 'Netanyahu defies the media and pundits,' vindication, upper hand. Left/European lane (Le Monde, NPR briefs): 'rebuke,' an election of 'losers,' no winner. The underlying count is identical — Likud largest, his bloc ~53, nobody at 61, Arab lists holding the balance. Both frames were written off Tuesday's exit polls, which pointed the wrong way; the reversal itself is the story neither lane leads with. On the Fed: right-leaning coverage stresses the two hawkish dissents and 3.7% inflation; left-leaning coverage stresses cost-of-living pain six days before midterms. Same statement, different villain. On Iran: the $47B Reuters figure is hard Pentagon data — watch which outlets headline it and which bury it under the oil rally; that placement choice is the tell. Rantingly's rotation today pushed the Israel 'win' and Fed-hold lines; the Hutchinson grand-jury item ran only on the left aggregators — selection, as usual, is the propaganda.

Point at anything and I'll go deep.