BUSINESS

There is an old idea in business that the hardest number to measure is the money you never spent. A disaster avoided produces no press release. A bad deal declined shows up nowhere on the income statement. The executive who says no to the expensive thing gets punished immediately and vindicated years later, if at all, and usually after somebody else has claimed the credit.

For most of the past three years, the technology industry has been running the opposite experiment. Spending has been the strategy.

The four largest cloud companies plan to commit roughly $725 billion in capital expenditures during calendar 2026, up about 77% from the prior year, with the overwhelming majority going toward data centers, graphics chips and the power needed to run them, according to guidance compiled by ValueAdd VC.

Investors rewarded the spenders. Wall Street treated raw computing capacity as destiny. Any company that hesitated got written off as having missed the boat entirely.

One company hesitated far more than the rest. On Tuesday, it gets a new chief executive.

John Ternus becomes chief executive officer of Apple (AAPL) on Sept. 1, with Cook shifting to executive chairman of the board, Apple confirmed in its newsroom.

John Ternus becomes Apple CEO Sept. 1, inheriting $117 billion in cash and AI questions.Kevin Winter/GA / Getty Images

What John Ternus actually inherits at Apple

The succession has been covered almost entirely as a personality question. Can a soft-spoken hardware engineer replace a supply chain legend? Is he visionary enough?

My analysis says that framing buries the more interesting number.

I pulled Apple’s fiscal third-quarter results filed with the Securities and Exchange Commission (SEC) and ran the arithmetic myself. Through the first nine months of fiscal 2026, Apple made $6.8 billion in payments for property, plant and equipment. In the same nine months a year earlier, that figure was $9.5 billion.

Apple’s capital spending fell roughly 28% during the largest capital spending boom the technology industry has ever produced.

Related: John Ternus’s net worth as Apple’s next CEO

Over those same nine months, the company generated $117 billion in cash from operating activities, up from $81.8 billion a year earlier. That puts capital expenditures at under 6% of operating cash flow.

Ternus is not inheriting a company that lost the artificial intelligence (AI) spending race. He is inheriting one that never entered it.

Why Apple’s AI spending gap matters for investors

The conventional read on all this has been damning. Apple ceded frontier model development to Google and OpenAI, watched Siri fall behind assistants like ChatGPT, and shipped a Vision Pro headset that never found its audience.

The competitive pressure is not theoretical either. Meta’s camera glasses built with Ray-Ban already sell well. OpenAI is developing a family of consumer hardware products with former Apple design chief Jony Ive. Apple sued OpenAI in July, alleging the company stole trade secrets through designers it poached, an allegation OpenAI has contested, reported Fortune.

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There is a contrarian case, though, and it comes from someone who ran products at Apple long before Cook did.

“I see a bonfire of billions, trillions of dollars,” former Apple executive Jean-Louis Gassee said of industry spending on large language models, in comments to Fortune. His argument is that the models themselves are becoming commodities, and the money will be made further up the stack.

Apple’s bet is that most of the AI work customers actually care about can happen on the device in their pocket rather than in a rented data center. That architecture is the reason the capital expenditure line stays small.

The money is still going out the door. It just lands on a different line. Research and development spending reached $34 billion over the nine months, up from $25.7 billion a year earlier, an increase of about 32%.

Here is the gap in plain numbers.

Apple committed $6.8 billion to property and equipment across the first nine months of fiscal 2026, according to the company’s quarterly results.

Amazon (AMZN) expects roughly $200 billion in 2026 capital expenditures, CEO Andy Jassy said on a February earnings call, as reported by Fast Company.

Microsoft (MSFT) is tracking toward about $190 billion for calendar 2026, driven mainly by its data center buildout, reported Fast Company.

Alphabet (GOOGL) and Meta (META) together guided to more than $300 billion at the upper end of ranges both raised during 2026, according to ValueAdd VC.

The memory chip squeeze Ternus has to solve first

None of that fixes his most immediate problem.

Apple guided September quarter gross margin to between 47% and 48%, down from the 50.1% posted in the June quarter, with climbing memory costs the primary driver, the company told analysts on its July 30 earnings call.

Cook described the memory pricing environment as a 100-year flood and said Apple had reluctantly raised prices on Mac and iPad as a result.

Shares fell more than 6% in extended trading after that report, according to CNBC.

So Ternus takes over a business with real momentum and a real squeeze happening at the same time. June quarter revenue hit $109.4 billion, up 16%, with iPhone revenue up 22%, Apple reported.

Demand is not the problem. Securing enough parts at a price that protects the margin is the problem, and it is the first thing on his desk.

What Apple’s Sept. 9 event will not tell you

Ternus makes his debut as CEO at Apple’s Sept. 9 product event, where the company is expected to detail a rebuilt Siri and introduce its first foldable iPhone.

Watch the capital expenditure line instead.

Apple’s move away from a net cash neutral financial strategy suggests the company could direct more money toward research, capital spending and acquisitions, which may be required to keep pace in the AI era, Bank of America analyst Wamsi Mohan wrote in a recent note, according to Fortune.

That is the real tell. Cook spent 15 years building a machine that converts restraint into cash. Ternus is the first Apple CEO in more than a decade with an obvious reason to spend it.

This matters to you whether or not you have ever bought a single Apple share. Apple is among the largest holdings in nearly every S&P 500 index fund, which means it sits inside most 401(k) plans in the country. When a company that size changes how it allocates capital, the effect eventually reaches your retirement statement. You just do not get a vote, and you rarely get a warning.

If he does, he has room nobody else has. Apple closed the June quarter with roughly $146 billion in cash and marketable securities and returned $62 billion to shareholders through buybacks over nine months. Redirecting even a slice of that toward AI infrastructure or an acquisition would be the biggest strategic shift Apple has made since it began designing its own chips.

If he doesn’t, the on-device thesis had better be right, because there is no second act if it isn’t.

Either way, the answer is not arriving on Sept. 9. It arrives in the capital expenditure line of some quarterly filing in 2027 that nobody will livestream, and by then the market will have already decided what it thinks.

Related: Jim Cramer doubles down on Tim Cook and Apple verdict

Rates of sickness and chronic illness are rising globally.

The Defense Department’s new agreements follow a months-long series of efforts to increase Patriot and THAAD supplies and stave off shortfalls of vital U.S. interceptors.

Wall Street used to cheer every big Pentagon production promise. These days, it waits for the number attached to it.

That habit showed up clearly on Monday, August 31. The Department of War signed seven-year framework agreements with General Dynamics (GD) and Lockheed Martin (LMT) to triple the production of the PAC-3 MSE interceptor and quadruple output of the THAAD system, according to the agency’s official announcement.

Shares of both companies barely moved, slipping less than half a percent apiece, Reuters reported.

That flat reaction is not a verdict on the deal itself. It is a sign of how investors have learned to read these announcements.

The Pentagon’s math: triple output, no price tag

The agreements set up multiyear procurement contracts covering components for both interceptor programs, with the government guaranteeing minimum annual purchase quantities, according to the Department of War.

That guarantee matters because it lets contractors and their suppliers commit to new facilities and larger workforces without waiting on a single annual budget cycle.

General Dynamics Ordnance and Tactical Systems will expand production of motor cases, seeker housings, midsections and shroud-deployment systems, the hardware that goes inside every interceptor Lockheed assembles.

Related: The winners in China’s missile leap

Under Secretary of War for Acquisition and Sustainment Michael Duffey said General Dynamics and Lockheed Martin have answered the call, framing the deal as a shift toward longer-term industrial partnership.

What the release does not include is a dollar figure. Total contract value, annual production targets and the timeline for reaching expanded capacity remain undisclosed, and funding still depends on Congress approving it through annual appropriations.

That caveat is not boilerplate. It is the entire reason the stocks did not move much. Investors have learnt to watch for numbers before making decisions.

The Pentagon signed seven-year deals with General Dynamic and Lockheed Martin to triple PAC-3 MSE and quadruple THAAD interceptor output.MikeMareen / Getty Images

Investors have seen this script before

This is not Lockheed’s first quadrupling headline of 2026. In March, the company struck a separate framework deal to quadruple production of its Precision Strike Missile, and Morgan Stanley responded by holding its Equalweight rating and $675 price target rather than upgrading the stock.

The bank called that deal additive to an existing strategy, not a reason to change its view.

That pattern matters here. Big capability multipliers without attached contract values tend to get filed as confirmation of an existing growth story rather than treated as a fresh catalyst.

Meanwhile, General Dynamics has spent this year working through a stalled ammunition plant that the Army halted over performance concerns before lifting the stoppage ahead of earnings, a reminder that production ramps do not always move in a straight line.

As a result, Monday’s agreement reads to portfolio managers less like news and more like an installment.

The bigger question is whether guaranteed minimum quantities, once disclosed, will actually move revenue estimates or simply validate numbers analysts had already penciled in.

What GD and LMT actually sell investors

General Dynamics is a diversified defense and aerospace company spanning Gulfstream business jets, submarine construction, combat vehicles and the munitions unit now central to this deal.

Lockheed Martin on the other hand, is the world’s largest defense contractor by revenue. It carries a backlog near $194 billion, roughly two and a half times its annual sales.

Both stocks trade on steady, government-funded revenue rather than consumer demand cycles. That is why backlog size and contract visibility move these shares more than any single quarterly headline does.

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Lockheed shares closed near $564 last week, while General Dynamics traded near $379, leaving both stocks essentially unchanged once Monday’s session settled at $561.11 and $371.35.

Lockheed is the prime contractor on both PAC-3 MSE and THAAD, which means it captures the full program economics while General Dynamics supplies critical subcomponents beneath it.

Investors weighing either stock are effectively underwriting the same missile-replenishment cycle from two different points in the supply chain.

Missile defense’s cost opacity runs deeper

The undisclosed price tag on this deal fits a broader pattern in Pentagon missile-defense spending. The Congressional Budget Office estimated in May that the administration’s separate Golden Dome missile-shield program could cost $1.2 trillion over 20 years, more than six times the $185 billion figure the White House has cited, Fortune reported.

Golden Dome officials disputed that estimate, but the size of the gap shows how often capability targets arrive well ahead of firm cost accounting across this sector.

For General Dynamics and Lockheed Martin shareholders, that gap is the real story behind Monday’s muted trading.

The interceptor deal adds demand visibility, not cash-flow certainty, and that distinction will only resolve as Congress works through fiscal 2027 appropriations.

Investors betting on this replenishment cycle are underwriting a multiyear defense buildout whose full price tag Washington has not yet agreed to write down, or perhaps, is simply not yet ready to disclose. Until those hard numbers hit the ledger, Wall Street will likely keep its applause on hold.

Related: Jim Cramer says surging defense stock is a sensational buy

The Seattle Mariners are about to place their slim shot at a playoff spot on the bat of 21-year-old Lazaro Montes. The slugger has hit 38 homers in the minors in 2026.

Looking for help with today’s New York Times Wordle? Here are some expert hints, clues and commentary to help you solve today’s Wordle and sharpen your guessing game.

Mortgage interest rates have been stubbornly high for most of 2026. The average 30-year fixed rate was 6.66% on Aug. 27, according to Freddie Mac.

Mortgage News Daily is another reliable source for tracking national mortgage rates. As of Aug. 31, MND data put the 30-year rate at 6.87%, its highest point in over a year.

Do you still want to buy a house in 2026? When it comes to mortgage rates, you have more options than you might think.

“Today’s elevated mortgage rates can be a challenge, but there are still opportunities to lower your borrowing costs and improve affordability,” loanDepot Branch Manager Michael Borodinsky told TheStreet. “If you take the time to explore financing options and negotiate strategically, you may be able to reduce your monthly payment without waiting for rates to fall.”

TheStreet spoke with four mortgage experts about strategies homebuyers can use to lock in lower mortgage rates and costs in the 2026 housing market. Multiple experts suggested the following tactics.

1. Consider an adjustable-rate mortgage

Across the board, the experts we spoke with recommended at least considering an adjustable-rate mortgage (ARM).

“These loans often start with a lower rate than a traditional 30-year fixed mortgage, which can help reduce your monthly payment in the early years of homeownership,” Borodinsky told TheStreet.

For example, Mortgage News Daily also posts rates for 7/6 ARMs. These types of mortgage loans keep your intro rate for seven years, then alter the rate every six months.

While Mortgage News Daily’s 30-year fixed rate was 6.87% on Aug. 31, the 7/6 ARM was 6.42%. For seven years, you could enjoy a mortgage rate that is 0.45% lower — then refinance, sell, or take on a new rate when the intro period expires, depending on whether these options make financial sense at the time.

ARMs can get a bad rap due to the 2008 housing market crash. While many factors contributed to the crash, ARMs played their part.

Related: Will the housing market crash in 2026? Experts weigh in

ARMs appealed to homebuyers for their lower initial rates, but according to a report from the Federal Reserve Bank of St. Louis, mortgage lenders didn’t always fully explain the terms or risks of these loans. So, when the intro-rate period ended and their rates increased, homeowners were financially unprepared.

After the crash, regulations forced lenders to impose stricter underwriting standards for ARMs.

Today’s underwriting and disclosure requirements are different, but an ARM’s inherent interest-rate risk hasn’t disappeared. So it’s crucial to understand how ARMs work and what the terms for your specific loan are.

“If you’re considering an ARM, it’s important to understand when the rate can change, how future adjustments are calculated, and whether the loan aligns with how long you expect to stay in the home,” Borodinsky said. “When used appropriately, an ARM can be an effective tool for managing upfront housing costs.”

Some lenders offer adjustable-rate mortgages (ARMs) with intro-rate periods of 10 years.skynesher / Getty Images

2. Shop for the lender with the lowest mortgage rate and fees

The home-buying process is exhausting, and shopping for a mortgage lender can feel like just one more task on your never-ending to-do list. But it’s often a crucial step toward getting the lowest possible mortgage rate.

Acquiring just one additional quote from a lender can save buyers an average of $1,500 over their entire loan term, according to Freddie Mac research. By getting five or more quotes, buyers could save an average of $3,000.

“Always shop around,” Melissa Cohn, Regional Vice President of William Raveis Mortgage, told TheStreet. “Never assume that your bank will have the best rates. Do your research and compare rates to lock in the best rate for you.”

Consider a variety of lender types. For example, you could get quotes from your current bank, a credit union, and a non-bank lender. Then compare their mortgage rates and fees.

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Comparing mortgage lenders is always good advice for homebuyers. But at a time when interest rates show no sign of dropping, using this tactic is especially shrewd.

Sarah DeFlorio, Vice President of Mortgage Banking at William Raveis Mortgage, recommended searching for relationship pricing when deciding which mortgage lenders to add to your list.

“If you are willing to move cash or accounts to another bank, many lenders offer preferred mortgage rates,” DeFlorio told TheStreet. “These relationships can vary anywhere from $50k to $1 million plus, and the rate discount also varies accordingly.”

One example is Chase Bank’s Relationship Pricing Program, which offers a mortgage rate discount of 0.05% to 1%. The total discount depends on whether you’re a new or existing customer and how much money you keep in bank and investment accounts.

3. Ask about temporary mortgage rate buydowns

You may have heard of mortgage discount points, which are “points” you pay for at closing to lower your rate permanently.

But fewer homebuyers are aware of temporary rate buydowns, which lower your rate for up to a few years.

A common type of buydown is a 3-2-1 buydown. In this case, your mortgage rate might be 3% lower in the first year, 2% in the second, and 1% in the third. Once you hit year four, your mortgage rate returns to your predetermined rate.

For example, let’s say your agreed-upon mortgage rate is 6.75%. With a 3-2-1 buydown, your rate would be 3.75% in year one, 4.75% in year two, 5.75% in year three, and 6.75% from year four onward.

Temporary rate buydowns help you gradually adjust to higher monthly payments. And if rates significantly drop by the time it resets to your predetermined rate, you can always refinance into a lower rate. They also typically cost less up front than discount points.

And if you play your cards right, you might not be the one paying up-front fees for temporary rate buydowns at all.

“Ask the lender what would be the maximum dollar amount of a seller credit to a buyer at settlement that could be applied to an interest rate buydown on the loan program the buyer wants,” Corey Burr, senior vice president at TTR Sotheby’s International Realty, told TheStreet. “Once that amount is established, insert that amount into the buyer’s offer to the seller.”

Homebuyers have more power than sellers in many housing markets around the U.S. In this case, you have more negotiating power. You can negotiate for a lower price, closing cost credits — or for the seller to cover part or all of a mortgage rate buydown.

“With some homes staying on the market longer, sellers may be willing to offer concessions to help close the deal,” Borodinsky said.

“In some cases, that assistance may have a greater impact on your monthly payment than a small reduction in the home’s sale price,” he continued.

Waiting for mortgage rates to fall isn’t your only strategy — or even your best one in today’s housing market. Compare lenders, understand alternative loan structures, and negotiate for seller concessions.

Related: Fannie Mae revamps mortgage rate forecast

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Why we love this deal

With summer winding down, the weather is transitioning from hot summer days to crisp and cool fall. But that doesn’t mean you have to put away your patio furniture. Fall is actually a great time to spend time outdoors. With a few extra layers and the right outdoor essentials, you can enjoy your outdoor space well into autumn.

In addition to a patio set, a fire pit is a must-have for fall, and they don’t cost much either. The Lacoo 32-Inch Square Fire Pit is on sale for only $75 at Walmart, giving you a cozy fall feel for under $100. Thanks to a Flash deal, it’s 42% off, making it the perfect find for your next outdoor upgrade.

Lacoo 32-Inch Square Fire Pit, $75 (was $130) at Walmart

Courtesy of Walmart

Shop at Walmart

Why do shoppers love it?

There’s something about curling up by a fire during a cool night that feels like the ultimate fall experience, and this fire pit can make that a reality. Measuring 32 inches long by 32 inches wide by 14.25 inches high, it has a square-shaped design that looks aesthetically pleasing on a patio, especially when you get a fire going. It’s crafted from steel, making it durable and sturdy to last throughout the season and beyond. It also has heat-resistant paint and is resistant to rust. But to make sure it holds up, it comes with a cloth cover to protect it while it’s not in use.

But what catches our attention the most about this fire pit is its multifunctional design. Unlike other fire pits, it has an extended surface beyond the pit, so you can use it as a table. And if it’s not a fire pit kind of night, you can also use the empty space as a beverage tub. Between those two modes alone, it makes a fantastic addition to an outdoor party. Even though it’s advertised as having a grilling and cooking mode, some shoppers say it’s not the best use for this fire pit, as the grill sits low and there’s no space to put wood underneath. 

Related: Walmart’s $99 4-piece patio set comes with two armchairs, a loveseat, and a table

Details to know

Dimensions: 32 inches long by 32 inches wide by 14.25 inches high.

Colors: Black, brown, gold, and silver.

Uses: Fire pit, table, and beverage tub.

“We’ve always dreamed of having the perfect fire pit, and this one fits our family lifestyle like a glove,” one shopper said. “Our grandchildren love roasting marshmallows around it, while my husband enjoys chilling with his drinks and inviting friends over for some good times. It’s truly a win-win for everyone!”

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The Lacoo 32-Inch Square Fire Pit is on sale for only $75, but since it’s a limited-time Flash deal, it won’t last for very long.

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