Good morning. Tech earnings are like buses, you wait all week and then two, in the form of updates from Alphabet and Microsoft, come at once.
It was Google Services that is sending parent Alphabet's stock tumbling as it struggles to find the right sweet spot of enough returns to counter high AI spending. That's the main thing tripping up so many of its peers.
But the tech gods looked more favorably on Microsoft. It's one of the few tech plays that seems to have found a way to generate decent income from AI -- a holy grail as revenues from its Azure product beat expectations.
Amazon's report is the third bus trundling along later -- here's what to expect.
Tech isn't the only story in town. Bond markets are reacting to the Fed's much anticipated rate freeze -- Barron's makes sense of it all here.
From buses to boats. Norwegian Cruise Line earnings beat across the board having navigated spiking oil prices by using less fuel, notching up more bookings from passengers spending more on board.
The stock is rising, but that hasn't helped S&P 500 futures, which are falling. Also down are Nasdaq 100 futures -- tech stock jitters mean it's not having an easy ride.
Have a great day.
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📈 Here's what's happening in markets today:
Stock futures are falling as Alphabet results weigh on tech.
Alphabet, Microsoft, Marvell, Amazon, and more stocks that explain today's market.
U.S. economy set to deliver remarkably resilient third-quarter growth.
PCE inflation data offer key insight into December rate hike.
ECB set to follow the Fed's lead as French bond panic outweighs inflation fears.
Marvell stock slides. Why the market hates the idea of a Lumentum buyout.
Eli Lilly stock jumps as monster earnings powered by Mounjaro and Zepbound.
Merck earnings blow past estimates. Why Wall Street is looking past the numbers.
AB InBev earnings show the Bud Light brewer's rally is about more than just beer.
What defense slump? L3Harris posts strong earnings, like peers.
XPO results show freight industry is unbothered by high diesel prices.
Nvidia stock slips as competition probe presents new AI concern.
Amazon earnings are all about its cloud business.
Intel stock enters earnings with high hopes from analysts.
Coinbase Global earnings will show whether it's still under crypto's thumb.
Reddit's AI traffic loss still in focus as earnings approach.
🏢 Alphabet's cloud business does its job. It's expensive.
Alphabet's Google is trying to execute an ambitious data-center buildout that establishes Google Cloud as a leading AI cloud provider. While the early returns are solid, the costs are high: For the second straight quarter, Alphabet reported negative free cash flow, losing $9.1 billion. Read more about its earnings here.
🤖 Microsoft spends less than expected to drive results.
Microsoft beat earnings expectations but perhaps more importantly, it spent less than expected to drive those results. The company reported capital expenditures of $45.2 billion in the quarter -- higher than the $34.9 billion it spent a year ago -- but below projections. Read more here.
🏛? Warsh is changing the Fed. Inflation is still a problem.
The Federal Reserve left interest rates unchanged, but Chairman Kevin Warsh has plenty of other changes in mind, including plans to overhaul the central bank's meeting schedule and cut the number of times policymakers formally vote on interest rates each year. Read more here.
🔮 Oracle sets expectations, including being cash flow positive.
Oracle expects fiscal 2030 revenue to be above $225 billion, which is higher than analysts expected heading into its investor day event on Wednesday. The company also is committed to limiting additional capital raises through fiscal 2030 to $20 billion. Read about it here.
? Oil giants are raking in the cash. What will they do with it?
Oil giants like ExxonMobil are on track to report an astonishing cash haul in their third-quarter earnings reports. Even after paying for their operations and capital projects, they're expected to have $54 billion in cash left over for whatever purpose, part of what Wood Mackenzie researchers call a war-driven windfall. Read more here.
🚗 Ford's earnings gave investors a pleasant surprise.
Ford Motor gave investors a pleasant surprise with its earnings report. Along with better-than-expected profits, management nudged guidance higher. For 2026, Ford expects operating profit of about $10.75 billion from prior guidance of $10.5 billion. Read about its earnings here.
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🌯 Chipotle's earnings fall short as rising costs take a bite.
Chipotle Mexican Grill has seen rising labor and operational costs eat into profit. While third-quarter comparable restaurant sales rose a stronger-than-expected 2.1%, transaction volume slowed to a gain of 0.8%, compared with 1% in the previous quarter. Read about the chain's earnings here.
💬 Quote of the day:
Other headlines moving markets:
How SpaceX hurt Alphabet's third quarter earnings.
Stocks are calm, but there's real volatility hiding in Big Tech.
T-Mobile earnings beat expectations. Why investors still have questions.
EBay posts another earnings beat. It projects double-digit growth.
Honeywell Aerospace stumbles in August. Third quarter tells a better story.
FedEx shrugged off rising fuel costs. Guidance rattled the stock.
Fortinet's rosier outlook apparently not rosy enough.
Chipotle earnings fall short as rising costs take a bite.
GE HealthCare stock is rising after earnings for 2 reasons.
In an ugly housing market, D.R. Horton's guidance matters more than earnings.
Carvana reaches sales milestone but profit comes in short.
Genmab's cancer drug slashes risk of death.
Caterpillar earnings are yet another bet on AI.
3 home improvement stocks that are going to heat up.
Boston Scientific warned everyone about this.
It isn't too early for a surprising take on the 2028 presidential election.
Bank stocks are having a tough time. This analyst is betting on 2 names.
Tired of bond market drama? It might be time to consider annuities.
Why the ultrarich are opting for a 7% mortgage instead of paying cash.
-- Edited by Liz Moyer and Stacy Ozol
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