Greetings,

Investor jitters have sent stocks diving this week, but corporate insiders appear to be much more confident in the direction of the economy -- or at least the direction of their firms. Insiders have been gobbling up their own firms' shares at the fastest rate in six months. 

Also in this edition:

• CBO trims savings estimate from Trump tariffs by $1T ✂️
• Walmart CFO underscores growing affordability divide ➗
• SEC enforcement actions drop 30% amid leadership change 📉
• AI transforms finance from reporting to strategic leadership 🐦‍🔥
• Superman No. 1 comic sells for record $9.12M 🦸

Corporate insiders have been purchasing shares in their own companies at the fastest rate since May, according to data from the Washington Service. This surge in insider buying comes as the S&P 500 faces its steepest monthly decline since April, with executives stepping in while many other investors remain hesitant. Notably, the insider buying-to-selling ratio has climbed to 0.5, reflecting increased confidence among insiders in the face of market volatility.

The Congressional Budget Office has revised its projection for budget savings from President Donald Trump's tariff hikes, reducing the estimated total by $1 trillion compared to its August forecast. The new estimate finds $3 trillion in savings over 11 years, with $2.5 trillion attributed to higher customs revenue and $500 billion from reduced interest costs. The downward revision is primarily due to updated data and changes in tariff rates made by the administration since the previous estimate.

Walmart CFO John Rainey has highlighted a growing affordability gap between lower- and higher-income consumers, driven by a 25% increase in food prices since the prepandemic period. While the retailer posted strong third-quarter results, with same-store sales up 4.5% and revenue reaching $179.5 billion, Rainey noted that Walmart is absorbing higher tariff-related costs to minimize the impact on customers.

The Trump administration's "One Big Beautiful Bill" is projected to boost US economic growth by approximately 0.4 percentage points in the first half of 2026, mainly due to an influx of $100 billion in tax refunds and various tax breaks. However, the growth effect is expected to be tempered by the Federal Reserve's interest rate policy and fade quickly as consumers spend the extra funds, resulting in a full-year GDP increase of approximately 0.32 percentage points. The initial surge in economic activity underscores the short-term stimulative role of the legislation.

Investors are growing wary of investment-grade corporate bonds as a surge in borrowing by tech companies to fund AI data centers, coupled with signs of strain in the private credit market, raises concerns about potential risks. The cautious sentiment could lead to higher funding costs and increased market volatility. "There's fear in markets, and everyone's looking for the next shoe to drop," says Brian Kloss, a portfolio manager at Brandywine Global.

The Securities and Exchange Commission brought 30% fewer enforcement actions against public companies compared to a year earlier, according to a report by the NYU Pollack Center for Law & Business and Cornerstone Research. The report highlights that the drop coincided with the transition from former SEC Chair Gary Gensler, who oversaw the majority of the year's actions, to the new leadership under Chair Paul Atkins. Experts note that while such declines are common during periods of administrative change, the number of enforcement actions following Atkins' appointment is the lowest recorded for incoming chairs since 2013.

CFOs received an average of $8.45 million in change in control benefits this year, up from $7.32 million last year, according to Alvarez & Marsal's latest report. These benefits, which include severance, bonuses, long-term incentives, and other perks, highlight the substantial financial packages CFOs can expect during major corporate transactions. Notably, only 45% of CFOs were entitled to excise tax gross-ups, a figure that continues to decline as companies move away from this practice.

CFOs are reevaluating their pricing strategies to safeguard margins amid supply chain disruptions, trade policy shifts and inflation. Deloitte's CFO Signals survey shows that CFOs are increasingly focused on maintaining pricing power, but challenges such as poor data quality and limited tools persist. Deloitte suggests forming a pricing team, optimizing operational efficiencies, and adjusting service offerings as effective strategies to manage costs.

FedEx CEO Raj Subramaniam emphasized that shifts in global supply chains, driven by technology and geopolitical tensions, will endure, creating a long-term transformation in how goods are moved internationally. He pointed out that while the industrial economy may adjust more slowly, once these new patterns are established, reverting to previous models will be challenging. Subramaniam also noted that FedEx is actively adjusting its operations to respond to these structural changes, highlighting the company's ability to adapt faster than the manufacturing sector.

Private credit could see a significant increase in defaults in 2026, surpassing leveraged loans and high-yield bonds, according to a report from UBS. The report predicts private credit defaults could rise by as much as three percentage points, while leveraged loans and high-yield bonds may see a one percentage point increase. The report highlights the growing use of payment-in-kind loans as a sign of stress and notes that private credit is heavily concentrated in vulnerable sectors, including those related to AI.

AI is transforming the role of CFOs from traditional number-crunchers to strategic leaders. CFOs can leverage AI for predictive analytics, intelligent automation and risk management, shifting from reporting to providing insights. CFOs seeking to integrate AI into their finance departments can follow a four-step implementation playbook, starting with manageable projects, upskilling staff, selecting suitable technology and creating a data governance framework.

All US job growth this year has come from the health care and social assistance and the leisure and hospitality sectors, with 690,000 jobs added, while employment in other sectors has dipped by around 6,000, according to the Bureau of Labor Statistics. Rick Rieder, chief investment officer of global fixed income at BlackRock, says the figures highlight a "shaky" employment situation amid shifting policies and the Federal Reserve's reluctance to lower interest rates.

Being a people-pleaser at work can hinder your career advancement as you prioritize others' needs over your own goals, writes Beatriz Victoria Albina, a master certified coach, who explains that people-pleasing stems from a desire to avoid discomfort and manage others' emotions. Albina suggests building tolerance for discomfort as a way to break the habit, starting with small steps, such as saying, "Let me think about it and get back to you," to give yourself time to consider whether you can take on more work.

A copy of Superman No. 1 from 1939 has sold for $9.12 million at Heritage Auctions, becoming the most expensive comic book ever sold. Initially sold for a dime, the comic was discovered in a California attic by three brothers. It was in exceptional condition despite having spent years in a cardboard box, protected only by newspapers. "Superman #1 is a milestone in pop culture history, and this copy is not only in unprecedented condition, but it has a movie-worthy story behind it," said Lon Allen, vice president of Heritage Auctions.