*As of 10:18 a.m. ET

Rents are falling in many of the most expensive cities in the U.S. A recent study found that the average incentive offered in Manhattan was two months of free rent in an attempt to fill empty apartments. As people continue to work from home, many renters have moved to more affordable or remote areas to lower costs or improve their lifestyles. 

Change in average rent around the U.S. from one year ago:

• Rent in San Francisco, California, is down 31%. 
• Rent in New York City, New York, is down 15.4%. 
• Rent in Honolulu, Hawaii, is down 14.9%. 
• Rent in Tulsa, Oklahoma, is up 36%. 
• Rent in Hillsborough County, Florida, is up 28.4%. 

Analysis:

Rental rates are falling fastest in cities where technology jobs are most prominent. Companies including Google, Airbnb, Facebook, Slack, Twitter, and Facebook have all announced long-term remote work policies. These policies are not just temporary; companies like Okta have seen many foreign workers move to Canada or other countries as the U.S. government limits visa renewals. The investment in remote work infrastructure likely means many of these jobs will remain remote. 

Meanwhile, rent in traditionally affordable cities has increased as individuals take advantage of remote work to move to communities that provide the opportunity for additional space, activities, and homeownership. 

The Justice Department is filing an antitrust lawsuit against Google today, alleging that the company engaged in illegal anticompetitive practices to maintain its dominance in web search and search advertising. The government says Google paid mobile manufacturers and carriers to set Google as a default search engine. The company does not allow its browser Chrome to be deleted from Android devices.

More:

• The investigation for this lawsuit started in June 2019. A prior antitrust investigation into Google, conducted by the FTC, ended in 2013 without any action after the company said it made some voluntary changes to its ad and patent policies.
• Though the current lawsuit is likely not to specify any remedies, a loss for Google could result in changes, including structural changes that create opportunities for competitors. WSJ noted that the company's victory could mean a massive blow to the government's overall scrutiny against Big Tech.
•  On Oct. 6, a House Judiciary subcommittee released its findings after a 16-month investigation into Big Tech's business practices. It noted that Google overwhelmingly dominates the online search market by capturing 87% of U.S. search and 92% of global search queries. Google suggested in its response post that antitrust law should be used to protect consumers, not aid Google's commercial rivals.
• EU regulators have fined Google around $9b in three antitrust cases.

Markets dropped sharply Monday afternoon as a new stimulus bill is unlikely to be passed before the next election. Futures were up over the weekend as House Speaker Nancy Pelosi placed a 48-hour deadline on the negotiations. However, as of Monday afternoon, Pelosi said they had not bridged the gap between the White House and House Democrats.

More:

• The Dow Jones closed down 1.4% after initially rising to start the day, causing a 570-point spread between its daily high and low. 
• The Nasdaq Composite finished down 1.7% on Monday, continuing a week-long trend of losing days. 
• The S&P 500 finished down 1.6%.
• Stocks are rising Tuesday morning as negotiations are continuing with an imminent deadline.

IBM announced revenue of $17.6b for Q3 2020 with a YoY decrease of 2.6%. The company reported a net income of $1.7b, similar to the same period last year.

More:

• The company’s cloud revenue grew by more than 60%. IBM subsidiary Red Hat’s revenue grew by 17%. 
• On Oct. 8, the company announced that it would spin-off its managed infrastructures unit as a separate company to focus on its cloud platform led by Red Hat and in growing markets like AI and hybrid cloud. IBM acquired Red Hat in a $34b deal last year. 
• The company’s Global Technology Division accounts for the largest part of its revenue. The division generated revenue of $6.5b, down 4% YoY.
• IBM’s share prices are down 12% since the beginning of the year, while the S&P 500 index is up 6% for the same period.

Infographic of the Week: Car Company Revenue vs. Market Cap

If you purchased 1% of a company and got 1% of its daily revenues moving forward, how long would it take you to recover your initial investment? The answers:

• Ford – 100 days
• General Motors – 170 days
• Fiat Chrysler – 91 days
• Tesla – 6,004 days (more than 16 years)

*Revenues based on H1 2020 and market capitalization as of yesterday.

QUICK HITS

• Joe Biden's tax plan could mean combined state and local statutory income tax rates as high as 62% for some high-earners, according to Jared Walczak of The Tax Foundation.
• GM is debuting the electric Hummer tonight as a direct competitor with Tesla's Cybertruck. 
• Proctor and Gamble net sales increased by 9% to $19.32b last quarter.
• Chargebee’s Change Summit gathers the world’s leading champions of change including Guy Kawasaki, David Cancel (Drift), and Bill Macaitis (ex Slack). Save your seat.*

*This is a sponsored post.