{"id":73907,"date":"2026-10-30T21:38:22","date_gmt":"2026-10-31T01:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/"},"modified":"2026-10-30T21:38:22","modified_gmt":"2026-10-31T01:38:22","slug":"china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/","title":{"rendered":"China Factory Activity Slumps as Alaska Air Warns of $700 Million Loss"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Chinas_Economic_Momentum_Falters\" >China&#39;s Economic Momentum Falters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Alaska_Air_Group_Faces_Financial_Turbulence\" >Alaska Air Group Faces Financial Turbulence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Tech_Sector_Sell-Off_Caps_Rough_October\" >Tech Sector Sell-Off Caps Rough October<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Legal_and_Geopolitical_Developments\" >Legal and Geopolitical Developments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-factory-activity-slumps-as-alaska-air-warns-of-700-million-loss\/73907\/#Credit_Rating_Updates\" >Credit Rating Updates<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>China&#39;s official manufacturing PMI fell to 49.3 in October<\/strong>, signaling a return to contraction as the industrial sector grapples with uneven demand and a widening gap between high-tech and legacy sectors.<\/li>\n<li><strong>Alaska Air Group (<a href=\"\/stock\/ALK\">ALK<\/a>) warned of a potential $700 million annual loss<\/strong> and announced layoffs for 200 non-contract employees due to soaring fuel costs and geopolitical pressures.<\/li>\n<li><strong>Technology stocks faced a brutal end to October<\/strong>, with Intel (<a href=\"\/stock\/INTC\">INTC<\/a>) plunging nearly 30% and Reddit (<a href=\"\/stock\/RDDT\">RDDT<\/a>) falling 29% amid concerns over AI capital spending and weak guidance.<\/li>\n<li><strong>A federal judge issued an emergency order restricting the DOJ<\/strong> from using prosecution threats against election officials, halting a pressure campaign by the Trump administration ahead of the midterms.<\/li>\n<li><strong>Geopolitical tensions remain high<\/strong> as U.S. officials suggest President Trump could consider military action against Iran if Republicans lose the upcoming midterm elections.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Chinas_Economic_Momentum_Falters\"><\/span>China&#39;s Economic Momentum Falters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>China\u2019s official manufacturing Purchasing Managers\u2019 Index (PMI) dropped to <strong>49.3 in October<\/strong>, down from <strong>50.1 in September<\/strong>, according to the National Bureau of Statistics. The reading fell below the 50-point threshold separating expansion from contraction, ending a brief period of growth. The <strong>Non-Manufacturing PMI<\/strong> also declined to <strong>49.7<\/strong>, while the <strong>Composite PMI<\/strong> signaled a broader economic contraction at <strong>49.7<\/strong>.<\/p>\n<p>The data highlights a persistent &quot;two-speed&quot; economy where advanced manufacturers, such as chipmakers and AI-linked firms, remain resilient, while traditional sectors struggle with tepid domestic demand. <em>Analysts suggest that without additional stimulus, China may struggle to maintain its full-year growth target of 4.5% to 5.0%.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Alaska_Air_Group_Faces_Financial_Turbulence\"><\/span>Alaska Air Group Faces Financial Turbulence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alaska Air Group (<a href=\"\/stock\/ALK\">ALK<\/a>) CEO <strong>Ben Minicucci<\/strong> warned employees that the company could lose as much as <strong>$700 million<\/strong> this year if current market conditions persist. The airline cited <strong>volatile fuel costs<\/strong> and <strong>geopolitical pressures<\/strong> as primary drivers for what would be its first adjusted pretax loss outside of the pandemic since 2003.<\/p>\n<p>In response to the mounting financial pressure, the company is reducing its workforce by approximately <strong>200 non-contract roles<\/strong>, primarily in management and back-office positions. The layoffs, which affect less than 1% of the company&#39;s 32,500 employees, will spare frontline staff such as pilots and flight attendants.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Sector_Sell-Off_Caps_Rough_October\"><\/span>Tech Sector Sell-Off Caps Rough October<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Nasdaq Composite suffered its worst month since early 2025 as investors grew wary of the massive capital spending required for the AI buildout. Intel (<a href=\"\/stock\/INTC\">INTC<\/a>) shares plummeted <strong>29%<\/strong> on Friday after the company reported a weak fourth-quarter forecast and cited supply shortages linked to the AI boom.<\/p>\n<p>Reddit (<a href=\"\/stock\/RDDT\">RDDT<\/a>) also saw its stock drop <strong>29%<\/strong> as questions arose regarding the sustainability of its growth and the impact of AI-generated search results on traffic. <em>Market sentiment has shifted toward caution as the &quot;hyperscalers&quot;\u2014including <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> and Alphabet\u2014face increasing scrutiny over the returns on their multi-billion dollar AI investments.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Legal_and_Geopolitical_Developments\"><\/span>Legal and Geopolitical Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the U.S., a federal judge imposed a sweeping emergency order barring the <strong>Department of Justice (DOJ)<\/strong> from threatening state and local election officials with criminal prosecution. The ruling follows reports of aggressive tactics by the Trump administration to pressure officials over voter eligibility and ballot segregation ahead of the November 3 midterms.<\/p>\n<p>On the international front, reports from <strong>Al Arabiya<\/strong> and <strong>Axios<\/strong> indicate that while U.S.-Iran negotiations continue, President Trump remains skeptical of a breakthrough. U.S. officials have warned that military action remains a &quot;viable option&quot; if diplomatic efforts fail or if political shifts following the midterm elections complicate the administration&#39;s current strategy.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Credit_Rating_Updates\"><\/span>Credit Rating Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Fitch Ratings<\/strong> affirmed the Long-Term Issuer Default Rating for American Electric Power (<a href=\"\/stock\/AEP\">AEP<\/a>) at <strong>&#39;BBB&#39;<\/strong> with a <strong>Stable Outlook<\/strong>, despite a significantly increased <strong>$100 billion<\/strong> capital expenditure plan for 2027-2031. Meanwhile, <strong>Moody\u2019s Ratings<\/strong> has placed DaVita Inc. (<a href=\"\/stock\/DVA\">DVA<\/a>) under review following the company&#39;s third-quarter results, which saw shares tumble <strong>9.5%<\/strong> due to disappointing full-year earnings guidance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China&#39;s official manufacturing PMI fell to 49.3 in October, signaling a return to contraction as the industrial sector 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