To The Moon

S&P 500 and Nasdaq futures were lower Wednesday morning as investors digested quarterly results from tech giants Microsoft and Alphabet. About 25% of S&P 500 companies have posted third-quarter earnings thus far. Of those companies, 78% have exceeded expectations.

Market Snapshot

At 08:15 a.m. ET, Dow e-minis were up 101 points, or 0.3%, S&P 500 e-minis were down 7.5 points, or 0.18%, and Nasdaq 100 e-minis were down 57.75 points, or 0.39%.

Pre-Market Movers

$Microsoft(MSFT)$ - Its fiscal first-quarter revenue jumped 13% to $56.5 billion and beat Wall Street’s expectations. Revenue in the company’s Azure cloud business rose 29%, ahead of the pace set in the previous quarter. Microsoft reported profit of $2.99 a share, well ahead of expectations of $2.65. The stock rose over 4% in premarket trading.

$Alphabet(GOOG)$ - It posted earnings in the third quarter that beat analysts’ estimates but Google Cloud revenue grew just 22% to $8.4 billion, missing forecasts of $8.6 billion and slowing from 28% in the previous quarter. The stock fell over 6% in premarket trading.

$Visa(V)$ - It narrowly topped earnings and revenue estimates in its fiscal fourth quarter, driven by a continued post-pandemic rebound in international travel. It expects “high single-digit to low double-digit” revenue growth next fiscal year and “low-teens” growth in adjusted earnings per share. The stock slid over 1% in premarket trading.

$Snap Inc(SNAP)$ - It reported a third-quarter loss that was narrower than expected and revenue of $1.19 billion that beat analysts’ expectations. Daily active users were 406 million versus the 405.8 million estimate. The stock rose nearly 3% in premarket trading.

$SunPower(SPWR)$ - Stocks crashed over 8% in premarket trading. It would be restating financial statements for 2022 and for the first two quarters of 2023. It determined “the value of consignment inventory of microinverter components at certain third-party locations had been overstated in the affected periods in the range of approximately $16 million to $20 million.”

$Texas Instruments(TXN)$ - It reported third-quarter revenue below analysts’ expectations and issued a forecast for its fiscal fourth quarter that also missed. Stocks slid over 6% in premarket trading.

$Teladoc Health Inc.(TDOC)$ - Stocks were down over 5% after it reported a narrower-than-expected third-quarter loss but revenue of $660 million that missed estimates.

$XPeng Inc.(XPEV)$ - Stocks slid nearly 4% in premarket trading after surging over 10% yesterday. Before that, it unveiled its latest technologies at its annual 1024 Tech Day event today to showcase its in-house R&D capabilities.

Market News

$Apple(AAPL)$ is poised to roll out new Macs on Oct. 30 in what will likely be the iPhone maker’s last launch event of 2023. The company announced plans for a presentation next week, dubbing the showcase “Scary Fast.” The event will take place at 5 p.m. California time, airing on Apple’s website and online video services such as YouTube.

$Microsoft(MSFT)$ said fiscal first-quarter profit was $2.99 per share, above analyst estimates of $2.65 per share. Azure revenue rose 29%, higher than a 26.2% growth estimate. For its fiscal second quarter, Microsoft forecast an Azure growth rate of 26-27% in constant currency.

$Alphabet(GOOG)$ reported a net profit of $19.69 billion for the July-Sept. period, compared with $13.91 billion a year earlier. Revenue for the quarter ended Sept. 30 stood at $76.69 billion, compared with estimates of $75.97 billion, according to LSEG data.

$Visa(V)$ sailed past estimates for Q4 profit as consumers on a post-pandemic travel rebound shrugged off worries of a looming economic slowdown and cost-of-living crisis.

$Snap Inc(SNAP)$ reported a surprise rise in quarterly revenue and forecast an upbeat current quarter as its efforts to bolster ad-targeting tools with artificial intelligence showed signs of paying off.

$Qualcomm(QCOM)$, stepping up its long-running effort to break into the personal computer market, unveiled a new laptop processor designed to outperform rival products from Intel Corp. and Apple Inc.

$Texas Instruments(TXN)$ forecast current-quarter revenue between $3.93 billion and $4.27 billion, compared with analysts' average estimates of $4.49 billion, according to LSEG data, and profit per share between $1.35 and $1.57, below estimates of $1.76 per share as it had to lower its factory loadings in the third quarter to reduce inventory and protect its gross margin.

$Teladoc Health Inc.(TDOC)$ posted a net loss of $57.1 million, or 35 cents a share, for the quarter, narrower than the loss of $73.5 million, or 45 cents a share, posted in the year-earlier period. Revenue rose 8% to $660.2 million from $611.4 million a year ago. The FactSet consensus was for a loss of 37 cents and revenue of $664.0 million.