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12700.0
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2023-11-03 00:00:00 UTC
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US STOCKS-Futures slip on Apple's weak forecast as payrolls data looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-on-apples-weak-forecast-as-payrolls-data-looms
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.03%, S&P 0.19%, Nasdaq 0.40%
Nov 3 (Reuters) - U.S. stock index futures slipped on Friday, pressured by a drop in Apple shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory.
AppleAAPL.O tumbled 3.3% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates.
Other megacap growth stocks were mixed, with the benchmark 10-year Treasury yield US10YT=RR steady at 4.67% after dropping to a three-week low in the previous session.
"The only thing that could save Apple from falling into dark waters is… a further rally in U.S. bonds, and a further fall in yields," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April on growing optimism that the Federal Reserve had reached the end of its monetary tightening campaign.
All three major indexes are tracking their biggest weekly gain in about a year.
Investors are focused on the Labor Department's report, due at 8:30 a.m ET (12:30 GMT), which is expected to show U.S. job growth likely slowed last month, partly due to the strike against the Detroit Big Three automakers.
Economists polled by Reuters expect non-farm payrolls to have increased by 180,000 jobs in October, after surging 336,000 in September, with the unemployment rate seen steady at 3.8%.
The reading, which will come on the heels of a mixed set of data on the labor market this week, could bolster the view that the U.S. central bank need not raise interest rates further. But analysts have cautioned that a stronger-than-expected report may bring concerns about interest rates back to the fore.
"Any strength in job additions or wages growth data could bring bond trades back to earth and remind them that if the US jobs market - and the economy - remains this strong, the Fed could turn hawkish again," said Ozkardeskaya.
At 5:12 a.m. ET, Dow e-minis 1YMcv1 were down 10 points, or 0.03%, S&P 500 e-minis EScv1 were down 8.25 points, or 0.19%, and Nasdaq 100 e-minis NQcv1 were down 60 points, or 0.4%.
Among major movers, FortinetFTNT.O dropped 23.3% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
CoinbaseCOIN.O shares fell 3% after the cryptocurrency exchange's trading volumes declined for the second quarter in a row.
BlockSQ.N jumped 18.4% after the payments firm raised its annual adjusted profit forecast.
(Reporting by Amruta Khandekar; Editing by Sriraj Kalluvila)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
AppleAAPL.O tumbled 3.3% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April on growing optimism that the Federal Reserve had reached the end of its monetary tightening campaign. Economists polled by Reuters expect non-farm payrolls to have increased by 180,000 jobs in October, after surging 336,000 in September, with the unemployment rate seen steady at 3.8%.
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AppleAAPL.O tumbled 3.3% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. Futures down: Dow 0.03%, S&P 0.19%, Nasdaq 0.40% Nov 3 (Reuters) - U.S. stock index futures slipped on Friday, pressured by a drop in Apple shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory. Among major movers, FortinetFTNT.O dropped 23.3% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
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AppleAAPL.O tumbled 3.3% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. Futures down: Dow 0.03%, S&P 0.19%, Nasdaq 0.40% Nov 3 (Reuters) - U.S. stock index futures slipped on Friday, pressured by a drop in Apple shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory. "Any strength in job additions or wages growth data could bring bond trades back to earth and remind them that if the US jobs market - and the economy - remains this strong, the Fed could turn hawkish again," said Ozkardeskaya.
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AppleAAPL.O tumbled 3.3% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. All three major indexes are tracking their biggest weekly gain in about a year. Among major movers, FortinetFTNT.O dropped 23.3% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
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12701.0
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2023-11-03 00:00:00 UTC
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GLOBAL MARKETS-Stocks set for strongest week of 2023 on interest rate cheer
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-set-for-strongest-week-of-2023-on-interest-rate-cheer-0
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nan
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nan
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By Tom Westbrook
SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes.
U.S. jobs data due later in the day is the next major focus.
Benchmark 10-year Treasury yields US10YT=RR are down more than 20 basis points in two sessions since the U.S. Federal Reserve left rates on hold on Wednesday and Chair Jerome Powell said risks to the outlook for rates settings was balanced.
Cash Treasuries were untraded in Asia owing to a holiday in Japan, and 10-year futures TNc1 held recent gains to imply yields were steady at 4.67%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.9%.
S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. European futures STXEc1 rose 0.4%.
World stocks .MIWD00000PUS are up 4.3% for the week so far, their largest weekly rise since November 2022.
"Markets have become increasingly confident that rates in the U.S. have now peaked," said ANZ analysts in a note.
"As logical as that is ... Powell did warn that for higher bond yields to forestall another hike, they'd need to stay high, so markets can't have their proverbial cake and eat it too."
The U.S. Treasury department had also said on Wednesday that it would sell less longer-dated debt at auction than had been expected and a softer-than-forecast manufacturing survey helped reinforce bets that no further hikes are necessary.
On Thursday, the Bank of England also left interest rates on hold and stressed it did not expect to cut them any time soon.
Ten-year gilts GB10YT=RR had their sharpest rally in more than a month, sending yields almost 12 basis points lower to 4.39%. Ten-year German bund yields DE10YT=RR also fell on Thursday, though only by 4.6 bps to 2.71%.
"It felt like there were a decent chunk of investors waiting on the sidelines and ready to play lower yields and yesterday removed a couple of potential stumbling blocks to enacting that view," said Rabobank analysts.
PAYROLLS LOOM
In foreign exchange markets the Australian AUD=D3 and New Zealand dollars NZD=D3 look set to turn in their strongest weekly gains since July, with rises of 1.5% and 1.6% so far.
The Aussie AUD=D3, steady at $0.6413 on Friday, has been helped by a third-quarter inflation surprise that has traders betting on a rate hike from the Reserve Bank of Australia (RBA) on Tuesday and the kiwi NZD=D3 is rising with the tide.
"From here on, AUD’s downside may be limited as we expect the extensive set of policy support from Chinese authorities to help support the yuan and hence by extension, the AUD," said strategists at Singapore's UOB.
"In addition, broad USD weakness as the Fed ends its rate hike cycle is likely to spur an AUD/USD recovery."
The next catalyst for currency movements is likely to be U.S. jobs data. Economists polled by Reuters expect the U.S. to have added 180,000 jobs in October.
The worst performing G10 currencies for the week have been the havens of Japanese yen JPY=EBS and the Swiss franc CHF=EBS as investors have sought out riskier assets.
The Bank of Japan will continue to dismantle its ultra-easy monetary policy next year, six sources familiar with the BOJ's thinking told Reuters, though the slow progress has been cold comfort for a yen weighed down by Japan's low interest rates.
It traded steady at 150.28 per dollar on Friday. Brent crude LCOc1 futures are 3.7% lower on the week to $87.10 a barrel. Gold XAU= is down 1% at $1,986 an ounce.
Bitcoin BTC=BTSP, meanwhile, looks to be reviving momentum that had collapsed along with exchange FTX in 2022. FTX founder Sam Bankman-Fried was found guilty of stealing from customers on Thursday. There was no immediate market reaction, leaving bitcoin to hold steep recent gains at $34,450.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Tom Westbrook; Editing by Jacqueline Wong and Miral Fahmy)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. "It felt like there were a decent chunk of investors waiting on the sidelines and ready to play lower yields and yesterday removed a couple of potential stumbling blocks to enacting that view," said Rabobank analysts.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. "From here on, AUD’s downside may be limited as we expect the extensive set of policy support from Chinese authorities to help support the yuan and hence by extension, the AUD," said strategists at Singapore's UOB.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. Benchmark 10-year Treasury yields US10YT=RR are down more than 20 basis points in two sessions since the U.S. Federal Reserve left rates on hold on Wednesday and Chair Jerome Powell said risks to the outlook for rates settings was balanced.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. World stocks .MIWD00000PUS are up 4.3% for the week so far, their largest weekly rise since November 2022. The next catalyst for currency movements is likely to be U.S. jobs data.
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12702.0
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2023-11-03 00:00:00 UTC
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Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term
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AAPL
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https://www.nasdaq.com/articles/got-%245000-3-tech-stocks-to-buy-and-hold-for-the-long-term-4
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nan
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nan
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Let's say you came into $5,000. How would you spend it? A vacation? A top-of-the-line 77-inch OLED television? Perhaps some jewelry?
Of course, as rewarding as each of those purchases might be, it's unlikely that any of them will generate significant returns years from now. However, for those willing to invest for the long term, there might be far more than $5,000 a few years down the line.
So, let's look at three stocks begging to be bought and held for the long term.
Image source: Getty Images.
1. Alphabet
First up is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). With a market cap of more than $1.5 trillion, Alphabet is already one of the largest public companies on Earth. Still, investors shouldn't sleep on its potential.
The company, which operates a powerhouse digital ad business built on its signature Google Search engine and related family of apps, generates a flood of revenue and profits. Over the last 12 months, Alphabet recorded $297 billion in revenue and $67 billion in net income.
What's more, analysts expect the digital ad market to continue growing for many years to come. Some estimates are for total digital ad spending to approach $850 billion by 2027 -- up from $640 billion today. In turn, Wall Street expects Alphabet to grow sales by 11% next year alone, with earnings growing at an even faster clip of 18%.
To sum up, Alphabet is poised to continue growing along with the digital ad market. And that's great news for investors, who would be wise to consider holding shares of this internet giant for the long run.
2. CrowdStrike
Next up is CrowdStrike (NASDAQ: CRWD), which provides cloud-based cybersecurity services. Like the digital ad market, cybersecurity is a rapidly growing sector. That's because the digital crime business is booming.
As a result, organizations are racing to secure their digital assets. That means billions of dollars of investment in data protection, access management, and endpoint security, among other forms of cybersecurity.
CrowdStrike, which offers cloud-based security modules that utilize machine learning, stands to benefit as the cybersecurity market balloons in size. The company, which has a market cap of $41 billion, remains early in its lifecycle. As of its most recent quarter (the three months ending on July 31), it had generated $2.6 billion in revenue over the last 12 months. Quarterly revenue grew at 37%.
For investors willing to hold for the long term, CrowdStrike is a name to consider, as the cybersecurity market stands to grow for years to come.
3. Microsoft
Finally, Microsoft (NASDAQ: MSFT) rounds out this list of tech stocks worth holding for the long term. The company, which is now closing in on Apple as America's largest company by market cap, is on a roll.
Its most recent quarter (the three months ending on Sept. 30) was a masterpiece, and was highlighted by:
$56.5 billion in total revenue for the quarter, representing 13% year-over-year growth
$24.3 billion in cloud revenue, up 19% from a year earlier, and above analyst estimates
Completion of the company's $68 billion acquisition of Activision Blizzard, setting the stage for future growth of Microsoft's gaming segment
In addition, management noted that a stabilization of the personal computer market has led to growth in the company's Windows business, which had seen revenue steadily decline for more than a year.
Microsoft's numerous business segments are firing on all cylinders. The company's cloud, gaming, and even Windows segments have all proven resilient and show that Microsoft remains a name that long-term investors should keep near the top of their list of stocks to own.
10 stocks we like better than Microsoft
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Alphabet and CrowdStrike. The Motley Fool has positions in and recommends Alphabet, Apple, CrowdStrike, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, which operates a powerhouse digital ad business built on its signature Google Search engine and related family of apps, generates a flood of revenue and profits. CrowdStrike, which offers cloud-based security modules that utilize machine learning, stands to benefit as the cybersecurity market balloons in size. The company's cloud, gaming, and even Windows segments have all proven resilient and show that Microsoft remains a name that long-term investors should keep near the top of their list of stocks to own.
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What's more, analysts expect the digital ad market to continue growing for many years to come. Its most recent quarter (the three months ending on Sept. 30) was a masterpiece, and was highlighted by: $56.5 billion in total revenue for the quarter, representing 13% year-over-year growth $24.3 billion in cloud revenue, up 19% from a year earlier, and above analyst estimates Completion of the company's $68 billion acquisition of Activision Blizzard, setting the stage for future growth of Microsoft's gaming segment In addition, management noted that a stabilization of the personal computer market has led to growth in the company's Windows business, which had seen revenue steadily decline for more than a year. The Motley Fool has positions in and recommends Alphabet, Apple, CrowdStrike, and Microsoft.
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For investors willing to hold for the long term, CrowdStrike is a name to consider, as the cybersecurity market stands to grow for years to come. Microsoft Finally, Microsoft (NASDAQ: MSFT) rounds out this list of tech stocks worth holding for the long term. Its most recent quarter (the three months ending on Sept. 30) was a masterpiece, and was highlighted by: $56.5 billion in total revenue for the quarter, representing 13% year-over-year growth $24.3 billion in cloud revenue, up 19% from a year earlier, and above analyst estimates Completion of the company's $68 billion acquisition of Activision Blizzard, setting the stage for future growth of Microsoft's gaming segment In addition, management noted that a stabilization of the personal computer market has led to growth in the company's Windows business, which had seen revenue steadily decline for more than a year.
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Alphabet First up is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Some estimates are for total digital ad spending to approach $850 billion by 2027 -- up from $640 billion today. For investors willing to hold for the long term, CrowdStrike is a name to consider, as the cybersecurity market stands to grow for years to come.
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12703.0
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2023-11-03 00:00:00 UTC
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Wall Street opens higher as weak jobs data boosts rate-hike pause bets
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AAPL
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https://www.nasdaq.com/articles/wall-street-opens-higher-as-weak-jobs-data-boosts-rate-hike-pause-bets
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nan
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nan
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Nov 3 (Reuters) - Wall Street's main indexes opened higher on Friday after data pointing to slowing job growth boosted expectations that the Federal Reserve was done with its rate hikes, while Apple shares slipped on a weak holiday-quarter forecast.
The Dow Jones Industrial Average .DJI rose 149.75 points, or 0.44%, at the open to 33,988.83.
The S&P 500 .SPX opened higher by 16.45 points, or 0.38%, at 4,334.23, while the Nasdaq Composite .IXIC gained 68.66 points, or 0.52%, to 13,362.85 at the opening bell.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Nov 3 (Reuters) - Wall Street's main indexes opened higher on Friday after data pointing to slowing job growth boosted expectations that the Federal Reserve was done with its rate hikes, while Apple shares slipped on a weak holiday-quarter forecast. The Dow Jones Industrial Average .DJI rose 149.75 points, or 0.44%, at the open to 33,988.83. (Reporting by Amruta Khandekar; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Wall Street's main indexes opened higher on Friday after data pointing to slowing job growth boosted expectations that the Federal Reserve was done with its rate hikes, while Apple shares slipped on a weak holiday-quarter forecast. The S&P 500 .SPX opened higher by 16.45 points, or 0.38%, at 4,334.23, while the Nasdaq Composite .IXIC gained 68.66 points, or 0.52%, to 13,362.85 at the opening bell. (Reporting by Amruta Khandekar; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Wall Street's main indexes opened higher on Friday after data pointing to slowing job growth boosted expectations that the Federal Reserve was done with its rate hikes, while Apple shares slipped on a weak holiday-quarter forecast. The S&P 500 .SPX opened higher by 16.45 points, or 0.38%, at 4,334.23, while the Nasdaq Composite .IXIC gained 68.66 points, or 0.52%, to 13,362.85 at the opening bell. (Reporting by Amruta Khandekar; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nov 3 (Reuters) - Wall Street's main indexes opened higher on Friday after data pointing to slowing job growth boosted expectations that the Federal Reserve was done with its rate hikes, while Apple shares slipped on a weak holiday-quarter forecast. The Dow Jones Industrial Average .DJI rose 149.75 points, or 0.44%, at the open to 33,988.83. The S&P 500 .SPX opened higher by 16.45 points, or 0.38%, at 4,334.23, while the Nasdaq Composite .IXIC gained 68.66 points, or 0.52%, to 13,362.85 at the opening bell.
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12704.0
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2023-11-03 00:00:00 UTC
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Technology Sector Update for 11/03/2023: FTNT, AAPL, TEAM, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-11-03-2023%3A-ftnt-aapl-team-xlk-xsd
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nan
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nan
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Technology stocks were edging higher premarket Friday as the Technology Select Sector SPDR Fund (XLK) was 0.5% lower and the SPDR S&P Semiconductor ETF (XSD) was up 0.4% recently.
Fortinet (FTNT) was shedding nearly 23% in value after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion. Analysts surveyed by Capital IQ expect $5.4 billion.
Apple (AAPL) was over 2% lower after it reported fiscal Q4 sales of $89.5 billion, down from $90.15 billion a year earlier. Analysts surveyed by Capital IQ expected $89.42 billion.
Atlassian (TEAM) reported fiscal Q1 non-GAAP diluted earnings of $0.65 per diluted share, up from $0.36 a year earlier. Analysts polled by Capital IQ expected $0.54 a share. Atlassian was 6% lower pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) was over 2% lower after it reported fiscal Q4 sales of $89.5 billion, down from $90.15 billion a year earlier. Technology stocks were edging higher premarket Friday as the Technology Select Sector SPDR Fund (XLK) was 0.5% lower and the SPDR S&P Semiconductor ETF (XSD) was up 0.4% recently. Analysts surveyed by Capital IQ expect $5.4 billion.
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Apple (AAPL) was over 2% lower after it reported fiscal Q4 sales of $89.5 billion, down from $90.15 billion a year earlier. Analysts surveyed by Capital IQ expect $5.4 billion. Analysts surveyed by Capital IQ expected $89.42 billion.
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Apple (AAPL) was over 2% lower after it reported fiscal Q4 sales of $89.5 billion, down from $90.15 billion a year earlier. Fortinet (FTNT) was shedding nearly 23% in value after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion. Analysts surveyed by Capital IQ expect $5.4 billion.
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Apple (AAPL) was over 2% lower after it reported fiscal Q4 sales of $89.5 billion, down from $90.15 billion a year earlier. Technology stocks were edging higher premarket Friday as the Technology Select Sector SPDR Fund (XLK) was 0.5% lower and the SPDR S&P Semiconductor ETF (XSD) was up 0.4% recently. Fortinet (FTNT) was shedding nearly 23% in value after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion.
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12705.0
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2023-11-03 00:00:00 UTC
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7 Evergreen Stocks for Long-term Wealth Generation
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AAPL
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https://www.nasdaq.com/articles/7-evergreen-stocks-for-long-term-wealth-generation
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This column focuses on stocks to buy for long-term wealth creation with evergreen ideas. A key factor that separates evergreen businesses from others is necessity versus luxury. The latter will have volatile demand depending on the economic scenario. The manufacturers of necessity have a relatively stable cash flow profile. Of course, this is not the only screener. In a world dominated by technology, there can be necessities that are not so obvious like food and water.
Investing in growth stocks is important to ensure that portfolio returns swell. However, I would invest 30% to 50% of the portfolio in evergreen stocks for long-term wealth generation. This can be in the form of dividends, share repurchases, and capital gains.
Let’s discuss seven stocks to buy for long-term wealth creation.
Stocks to Buy for Long-Term Wealth: Newmont (NEM)
Source: Piotr Swat/Shutterstock
In a global scenario where inflation, geopolitical tensions, and swelling government debt are concerns, gold is likely to trend higher. The precious metal recently traded above $2,000 an ounce and I’m bullish on upside. A good proxy for investing in gold is exposure to gold mining stocks. Newmont Corporation (NYSE:NEM) stock is among the best mining stocks that trades at attractive valuations and offers a dividend yield of 4.27%.
The first reason to like Newmont is an investment grade balance sheet. As of Q2 2023, Newmont reported a liquidity buffer of $6.2 billion. Further, with net-debt-to-adjusted-EBITDA of 0.7, the Company has high financial flexibility for organic and acquisition driven growth.
The second reason to like the Company is high-quality assets. Even if we leave aside the recent acquisition of Newcrest Mining (OTCMKTS:NCMGF), the Company has quality tier one assets. There is clear production visibility into the 2040s and this implies sustained cash flow upside.
Costco Wholesale (COST)
Source: ilzesgimene / Shutterstock.com
The largest growth driver for the U.S. economy is consumption spending. Within this, retail expenditure is a critical component. I would therefore remain invested in quality retail stocks. Costco Wholesale (NASDAQ:COST) is possibly the best bet.
Amidst macroeconomic challenges, COST stock has trended higher by 22% for year-to-date. Further, the stock provides a dividend yield of 0.74% and I see visibility for sustained dividend growth.
An important point to note is that Costco has 861 warehouses globally. However, it’s largely concentrated in U.S. and Canada. Currently, the Company is generating $4.6 billion in membership fee with a 92.7% renewal rate in U.S. and Canada. The number of warehouses in China currently stands at five. I expect significant expansion in China in the coming years, which will boost recurring membership fee.
Leaving aside this factor, Costco continues to report healthy comparable store sales growth. For October, comparable sales increased by 3% on a year-on-year basis. With strong omni-channel sales presence, Costco is well positioned to benefit.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
Oil and gas stocks are cyclical in nature and investors would question the reason for including Chevron (NYSE:CVX) here. I would point out that Chevron managed to generate positive cash flows even during the pandemic year when oil plunged to historic lows.
Chevron has high quality assets that have a low break-even. Last year, Brent oil averaged $100.93 per barrel and Chevron delivered operating cash flow of $47.5 billion. With an investment grade balance sheet and robust cash flows, Chevron is positioned to create value.
Recently, Chevron announced the acquisition of Hess Corporation (NYSE:HES) for a consideration of $53 billion. Post this acquisition, the Company will be investing $19 to $22 billion annually. This will ensure healthy reserve replacement and steady production growth.
It’s also worth noting that Chevron has already announced an 8% increase in quarterly dividend per share to $1.63. Given the high geopolitical tensions, I expect oil to trade above $80 per barrel. Dividend growth visibility therefore remains robust for the coming years.
Lockheed Martin (LMT)
Source: ranchorunner / Shutterstock.com
Lockheed Martin (NYSE:LMT) stock is another name among stocks to buy for long-term wealth. When talking about the defense sector, I must remind investors that global defense spending increased even during the pandemic year. With rise in geopolitical tensions, I expect defense spending growth to accelerate further. Lockheed is well positioned to benefit and create value.
Talking about fundamentals, Lockheed reported an order backlog of $156 billion as of Q3 2023. The order intake has been robust and as the backlog increases, revenue growth can potentially accelerate. At the same time, free cash flows will swell and translate into higher dividends. For the current year, Lockheed has guided for FCF of $6.2 billion.
As a part of the growth strategy, Lockheed is looking at expanding international collaborations. Orders from NATO member states will ensure growth. Further, the Company is investing in next-generation technology that includes hypersonic aircraft, among others. These factors will ensure that Lockheed remains a value creator.
AstraZeneca (AZN)
Source: Roland Magnusson / Shutterstock.com
AstraZeneca (NASDAQ:AZN) stock has been largely sideways in the last 12 months. This does not come as a surprise with biopharmaceutical companies being dumped by investors in a post-pandemic world.
However, this sell-off presents a golden opportunity to accumulate as top biopharma companies represent more than just growth from the covid-19 vaccine. There are multiple medical conditions of global concern with a big addressable market.
AZN stock trades at an attractive forward price-earnings ratio of 17.4 and offers a dividend yield of 1.47%. Coming to the business, AstraZeneca currently has 172 projects in its research pipeline. Further, 14 molecular entities are in the late-stage pipeline. This will ensure steady revenue growth in the coming years.
Another point to note is that the company believes that there are ten potential blockbuster opportunities from 30 Phase III trials planned in 2023. Clearly, the pipeline is attractive and makes a strong case for investing in AZN stock.
I also like the fact that the company is well diversified globally. For the first half of 2023, the Company reported 40% of revenue from outside the U.S. and Europe. Strong presence in emerging economies is likely to be a major growth catalyst.
Apple (AAPL)
Source: askarim / Shutterstock
For years, Apple (NASDAQ:AAPL) stock has been a value creator. The reasons being the brand positioning and innovation. The same factors will continue to ensure that AAPL stock creates wealth in the long-term. In my view, AAPL stock is among the best dividend growth stocks to consider. My point is underscored by the Company’s cash flow potential.
However, that’s not the only reason to be bullish on Apple. In the last quarter, Apple reported record revenue from the services segment. Further, the wearables business has ample headroom for growth globally. Apple will also be investing $1 billion annually towards artificial intelligence devices. There continues to be speculation about Apple’s electric car that seems to be scheduled for launch in 2026.
Therefore, there is a strong case for diversification driven growth. I must add that Apple is also focusing on markets like India and Southeast Asia. Emerging markets (excluding China) have the potential to accelerate revenue growth.
Tesla (TSLA)
Source: Arina P Habich / Shutterstock.com
Tesla (NASDAQ:TSLA) was a hated stock among lot of analysts since listing. However, the Company navigated an extended period of cash burn and created immense value. With positive tailwinds for electric vehicles likely to last beyond the decade, I remain bullish on TSLA stock.
It’s worth noting that Tesla has set an ambitious target of producing 20 million electric vehicles annually by 2030. To achieve this target, the Company is likely to invest in few more factories in the coming years. India and Indonesia are some potential locations in emerging markets.
I also like the fact that Tesla currently has an attractive product line-up. Cybertruck, Roadster, and Tesla Semi will ensure that deliveries growth is healthy. Further, the launch of Tesla Semi would mark the Company’s entry into commercial EVs.
From a financial perspective, Tesla reported operating cash flow of $8.9 billion for the first nine months of 2023. Further, the Company has $26 billion in cash and equivalents. This provides high financial flexibility to make aggressive investments for growth.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 7 Evergreen Stocks for Long-term Wealth Generation appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock For years, Apple (NASDAQ:AAPL) stock has been a value creator. The same factors will continue to ensure that AAPL stock creates wealth in the long-term. In my view, AAPL stock is among the best dividend growth stocks to consider.
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Apple (AAPL) Source: askarim / Shutterstock For years, Apple (NASDAQ:AAPL) stock has been a value creator. The same factors will continue to ensure that AAPL stock creates wealth in the long-term. In my view, AAPL stock is among the best dividend growth stocks to consider.
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In my view, AAPL stock is among the best dividend growth stocks to consider. Apple (AAPL) Source: askarim / Shutterstock For years, Apple (NASDAQ:AAPL) stock has been a value creator. The same factors will continue to ensure that AAPL stock creates wealth in the long-term.
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Apple (AAPL) Source: askarim / Shutterstock For years, Apple (NASDAQ:AAPL) stock has been a value creator. The same factors will continue to ensure that AAPL stock creates wealth in the long-term. In my view, AAPL stock is among the best dividend growth stocks to consider.
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12706.0
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2023-11-03 00:00:00 UTC
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Meta Platforms Stock (NASDAQ:META): There’s More Room to Run
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-stock-nasdaq%3Ameta%3A-theres-more-room-to-run
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nan
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nan
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Expectations were incredibly high this earnings season for the so-called "Magnificent Seven." Meta Platforms (NASDAQ:META) delivered an impressive round of results that may help it help it run further going into year-end. For the third quarter, there was pronounced strength right across the board. The firm isn't just growing its user base again; it's keeping them engaged. And with impressive new artificial intelligence (AI) tools, it's not hard to imagine growth and engagement continuing to heat up.
Despite all the positives, shareholders were more than ready to throw in the towel on the stock, selling the stock after its October 25 earnings report. Chalk it up as a late-October temper tantrum from Mr. Market.
Meta stock has since recovered the ground lost from its quarterly stumble and could be ready to make new 52-week highs as it moves forward with its "year of efficiency" into what I view as a year of AI-driven growth.
Indeed, it's hard to justify buying Meta stock after an incredible 152% year-to-date surge, especially if you consider yourself a value investor. That said, many Wall Street analysts continue to see more upside potential in the name. I'm inclined to agree that Meta stock is a winner poised to continue winning, and I'm staying bullish.
There May be More Outperformance to Come
For the latest quarter, Meta's revenue shot up 23%, as the ad business recovered swiftly. Daily active users (DAUs), a great gauge for social media companies, came in at 2.09 billion, ahead of the 2.07 billion estimate. Average revenue per user (APRU) was also a beat at $11.23, slightly ahead of the $11.05 consensus.
Fundamentally, Meta stock looks to be one of the better plays of the Magnificent Seven. Technically speaking, Meta also looks pretty good, at least according to Rich Ross, a technician over at Evercore, who views Meta Platforms as "best on the board absolutely and relatively."
Not only is Meta's social business picking up traction amid intense macro headwinds, but the firm has plenty of growth drivers (or catalysts) that could help extend its run going into the new year. Generative and conversational AI could help drive even more engagement across Meta's social media Family of Apps.
If AI could help Meta give its ad business a jolt, with the likes of ad automation tools like Advantage+, it could certainly help keep many of its Facebook, Instagram, and WhatsApp users more glued to their screens.
As Meta rolls out its impressive chatbots into its Family of Apps, it will be interesting to see the effect on daily active users (DAUs). Of course, a ChatGPT-like spike in engagement may very well be out of the question. But at current valuations, I'm not so sure the potential of conversational AI is priced into the stock quite yet. Meta's Llama 2 model (the company's response to chatGPT) holds plenty of potential.
Meta Stock: What About Its Valuation?
At writing, shares of Meta trade at just 27.8 times trailing price-to-earnings (P/E), or 18.5 times next year's expected P/E, both of which are roughly in line with the internet content & information industry averages of 26.1 and 19.4 times, respectively. Its current P/E represents the slightest premium for what I believe is one of the most impressive "AI monetization" plays of the entire Magnificent Seven cohort.
William Blair analyst Ralph Schackart, who has a Buy rating on the stock, sees "AI advancement driving engagement across the organization."
Undoubtedly, Meta seems like more of an AI company than a virtual reality (VR) firm these days. However, it will be interesting to see how Meta's Quest line stacks up against Apple's (NASDAQ:AAPL) Vision Pro in 2024.
Is Meta Platforms Stock a Buy, According to Analysts?
Turning to Wall Street, META stock comes in as a Strong Buy. Out of 37 analyst ratings, there are 36 Buys and one Hold recommendation. The average Meta stock price target is $384.62, implying upside potential of 22.3%. Analyst price targets range from a low of $332.00 per share to a high of $425.00 per share.
The Bottom Line on Shares of Meta
Even great earnings were met with punishment this earnings season. That has just been the mood lately. However, as sentiment shifts, look for investors to start rewarding AI monetization and sound business models built on top of AI once again.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, it will be interesting to see how Meta's Quest line stacks up against Apple's (NASDAQ:AAPL) Vision Pro in 2024. Not only is Meta's social business picking up traction amid intense macro headwinds, but the firm has plenty of growth drivers (or catalysts) that could help extend its run going into the new year. As Meta rolls out its impressive chatbots into its Family of Apps, it will be interesting to see the effect on daily active users (DAUs).
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However, it will be interesting to see how Meta's Quest line stacks up against Apple's (NASDAQ:AAPL) Vision Pro in 2024. Daily active users (DAUs), a great gauge for social media companies, came in at 2.09 billion, ahead of the 2.07 billion estimate. Generative and conversational AI could help drive even more engagement across Meta's social media Family of Apps.
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However, it will be interesting to see how Meta's Quest line stacks up against Apple's (NASDAQ:AAPL) Vision Pro in 2024. Meta Platforms (NASDAQ:META) delivered an impressive round of results that may help it help it run further going into year-end. Meta stock has since recovered the ground lost from its quarterly stumble and could be ready to make new 52-week highs as it moves forward with its "year of efficiency" into what I view as a year of AI-driven growth.
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However, it will be interesting to see how Meta's Quest line stacks up against Apple's (NASDAQ:AAPL) Vision Pro in 2024. That said, many Wall Street analysts continue to see more upside potential in the name. There May be More Outperformance to Come For the latest quarter, Meta's revenue shot up 23%, as the ad business recovered swiftly.
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12707.0
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2023-11-03 00:00:00 UTC
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Q3 Results Reflect Positivity, But Outlook Uncertain
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AAPL
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https://www.nasdaq.com/articles/q3-results-reflect-positivity-but-outlook-uncertain
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nan
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nan
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With Q3 results from more than 80% of S&P 500 members already out, we can confidently say that actual results have once again turned out to be better than expected. Keep in mind that Q3 earnings estimates had barely budged ahead of the start of the reporting cycle, which makes the outperformance all the more significant.
We continue to be of the view that while the overall earnings picture isn’t great, it isn’t falling off the cliff either. In fact, Q3 earnings growth is on track to turn positive, which follows three back-to-back quarters of declines.
On the negative side, the Q3 results show a notable loss of momentum on the revenues side, both in terms of the growth rate as well as the proportion of these companies beating top-line expectations.
An even more disconcerting development is on the revisions front, with estimates for the current (2023 Q4) and coming quarters starting to come down, which follows a relatively stable revisions trend over the preceding six months.
Here are the four notable features of the Q3 earnings season:
First, earnings growth is on track to turn positive. Q3 earnings for the 405 S&P 500 companies that have reported already are up +0.4% from the same period (up +5.6% excluding the Energy sector drag).
For the quarter as a whole, combining the actuals for these 405 companies with estimates for the still-to-come 95 index members, Q3 earnings are on track to increase by +1.5% on an equivalent growth in revenues.
Image Source: Zacks Investment Research
As you can see above, the positive Q3 earnings growth follows three quarters of declines, with the growth pace expected to improve steadily in the coming quarters.
Second, fewer companies have been able to beat Q3 revenue estimates. For the 405 S&P 500 members that have reported Q3 results, 82.5% are beating EPS estimates, and 61.5% are beating revenue estimates.
The comparison charts below put the Q3 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
As you can see above, the Q3 EPS beats percentage is tracking above the 5-year average (preceding 20 quarters), but the revenue beats percentage is notably weaker. In fact, the 61.5% beats percentage for these 405 S&P 500 members is the lowest since the first quarter of 2020 when Covid got underway.
In terms of revenue growth, the Q3 top-line growth rate of +1.6% for this group of 405 index members that have reported is modestly better than what we had seen in the preceding period, but otherwise representative of a steadily decelerating trend, as you can see in the chart below.
Image Source: Zacks Investment Research
Third, the Tech sector has resumed its growth trajectory. We still have a number of Tech sector companies that have yet to report Q3 results. But Q3 earnings for the 73.3% of Tech companies in the S&P 500 index that have already reported results are up +15.8% on +2.7% higher revenues.
For the quarter as a whole, combining the actuals that have come out with estimates for the still-to-come Tech companies, Q3 earnings are on track to increase +20.8% on +4.2% higher revenues.
Image Source: Zacks Investment Research
The Tech sector’s growth profile has been going through a post-COVID adjustment phase since the fourth quarter of 2021, with a low single-digit earnings growth rate in the preceding period (2023 Q2) appearing after four quarters of declines.
As you can see in the chart above, the sector is expected to resume its historical role as a growth driver going forward.
The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Nvidia NVDA, Meta META and Tesla TSLA.
The market wasn’t impressed with Apple’s results, whose Q3 earnings were up +10.8% on essentially flat revenues (down -0.7%). But more than Apple’s Q3 results, investors didn’t like the company’s underwhelming guidance for the December quarter.
Q3 earnings for the ‘Big 7 Tech Players’ increased +51% from the same period last year on +12.4% higher revenues, with the group’s growth picture expected to remain strong in the coming periods as well, as the chart below shows.
Image Source: Zacks Investment Research
Fourth, estimates for the current and coming quarters have started coming down in a significant way over the last few weeks.
The expectation currently is for 2023 Q4 earnings to be up +1.9% from the same period last year on +2.7% higher revenues. This growth pace represents a notable decline from what was expected for the period in late September of +5.3% earnings growth on +3.6% higher revenues.
The cuts to Q4 earnings estimates are widespread, with estimates getting cut for 11 of the 16 Zacks sectors. The sectors suffering the biggest cuts include Autos, Medical, Transportation, and Consumer Discretionary.
On the positive side, estimates have increased for the Energy, Utilities, Industrials, and Retail sectors.
Estimates for the Tech sector have modestly gone up, a significant deceleration from the pace of positive estimate revisions that we saw in the last two quarters.
The Q3 Earnings Season Scorecard & This Week’s Docket
Including all the earnings reports through Friday, November 3rd, we now have Q3 results from 405 S&P 500 members, or 81% of the index’s total membership. Total Q3 earnings for these companies are up +0.4% from the same period last year on +1.6% higher revenues, with 92.5% beating EPS estimates and 61.5% beating revenue estimates.
We have another super busy reporting docket this week with more than 1200 companies reporting Q3 results, including 52 S&P 500 members. The notable companies reporting results this week include Disney, Uber, Lyft, Berkshire Hathaway, and others.
The comparison chart below shows the ‘blended’ Q3 beats percentage of 55.3% in a historical context. This metric shows the proportion of these 405 companies that have beaten both EPS and revenue estimates.
Image Source: Zacks Investment Research
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Earnings Growth Turns Positive
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Nvidia NVDA, Meta META and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Keep in mind that Q3 earnings estimates had barely budged ahead of the start of the reporting cycle, which makes the outperformance all the more significant.
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The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Nvidia NVDA, Meta META and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Earnings Growth Turns Positive Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Nvidia NVDA, Meta META and Tesla TSLA. Total Q3 earnings for these companies are up +0.4% from the same period last year on +1.6% higher revenues, with 92.5% beating EPS estimates and 61.5% beating revenue estimates.
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The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT, Nvidia NVDA, Meta META and Tesla TSLA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. But Q3 earnings for the 73.3% of Tech companies in the S&P 500 index that have already reported results are up +15.8% on +2.7% higher revenues.
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12708.0
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2023-11-03 00:00:00 UTC
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US STOCKS-US stocks close higher as Treasury yields fall after weak jobs data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-us-stocks-close-higher-as-treasury-yields-fall-after-weak-jobs-data
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nan
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nan
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By Sinéad Carew and Amruta Khandekar
Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
"From a policy perspective this gives confidence the Fed remains on hold for the foreseeable future and only really hikes again if growth or inflation accelerate from here," said Matt Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
But what Palazzolo expects to happen is a steady deceleration in labor market gains and economic activity for the next six to nine months and, provided that happens it "should allow for the Fed to stay on hold at current levels," he said.
The Dow Jones Industrial Average .DJI rose 222.24 points, or 0.66%, to 34,061.32, the S&P 500 .SPX gained 40.56 points, or 0.94%, to 4,358.34 and the Nasdaq Composite .IXIC added 184.09 points, or 1.38%, to 13,478.28.
For the week, the S&P 500 gained 5.9%, for its biggest gain since November 2022 and Nasdaq added 6.6%, also showing its biggest gain since Nov. 2022. The Dow showed a weekly gain of 5.1%, its biggest since late October 2022.
The jobs data also helped push U.S. Treasury yields lower for the fourth consecutive session. During the session the benchmark 10-year Treasury yield US10YT=RR hit its lowest level in over five weeks. The move in yields supported stocks.
The small-cap Russell 2000 index .RUT outperformed large-cap indexes on Friday, closing up 2.7% after touched its highest level since Oct. 17. It boasted a weekly gain of 7.6%, which was its biggest since February 2021.
SignatureFD's Welch noted that the prospect of stalling rate hikes was particularly good news for smaller companies, which depend heavily on borrowing.
The tech-heavy Nasdaq .IXIC boasted its sixth straight day in the green while the S&P 500 and the Dow showed their fifth consecutive sessions of gains.
Most of the 11 major S&P 500 sectors advanced, led by rate-sensitive real estate .SPLRCR, which finished up 2.4%, after hitting its highest since late September.
Of the 11 only the energy sector .SPNY fell, ending down more than 1% on the day as oil prices fell.
Welch also noted that solid earnings reports were helping stocks during the week as companies expanded profit margins.
Analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
However, AppleAAPL.O fell 0.5% on the day after its sales forecast for the holiday quarter was short of expectations.
Among major movers, BlockSQ.N jumped 10.7% after raising its annual adjusted profit forecast. FortinetFTNT.O dropped 12.4% after a downbeat fourth-quarter revenue forecast.
Advancing issues outnumbered declining ones on the NYSE by a 5.55-to-1 ratio; on Nasdaq, a 3.56-to-1 ratio favored advancers.
The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 53 new highs and 77 new lows.
On U.S. exchanges 12.05 billion shares changed hands compared with the 10.86 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shristi Achar A; Editing by Sriraj Kalluvila, Maju Samuel and David Gregorio)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, AppleAAPL.O fell 0.5% on the day after its sales forecast for the holiday quarter was short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. "From a policy perspective this gives confidence the Fed remains on hold for the foreseeable future and only really hikes again if growth or inflation accelerate from here," said Matt Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
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However, AppleAAPL.O fell 0.5% on the day after its sales forecast for the holiday quarter was short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. The Dow showed a weekly gain of 5.1%, its biggest since late October 2022.
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However, AppleAAPL.O fell 0.5% on the day after its sales forecast for the holiday quarter was short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. For the week, the S&P 500 gained 5.9%, for its biggest gain since November 2022 and Nasdaq added 6.6%, also showing its biggest gain since Nov. 2022.
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However, AppleAAPL.O fell 0.5% on the day after its sales forecast for the holiday quarter was short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. The Dow showed a weekly gain of 5.1%, its biggest since late October 2022.
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12709.0
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2023-11-03 00:00:00 UTC
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The 3 Best Tech Stocks to Buy in November
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AAPL
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https://www.nasdaq.com/articles/the-3-best-tech-stocks-to-buy-in-november
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The recent decision by the Federal Reserve to maintain steady interest rates highlights a complex situation that policymakers are grappling with. Despite the robust performance of the U.S. economy, there is uncertainty at the central bank regarding the tightness of financial conditions necessary to rein in inflation, which still exceeds its 2% target. Fed Chair Jerome Powell underscored the progress in addressing inflation but stressed the need for more time to instill confidence in its trajectory.
As we look ahead, the focus shifts to forthcoming employment and inflation data, which will significantly influence the Fed’s future policy choices. Given this ongoing uncertainty, this may be an opportune time to consider investing in these three technology stocks, as they are poised to soar once the economy regains its footing.
Apple (AAPL)
Source: Yalcin Sonat / Shutterstock.com
Apple (NASDAQ:AAPL) is one of the world’s largest consumer electronics companies based on the immense consumer popularity and usage of its main product lines.
AAPL is up by 40% year-to-date. Investors have rated the stock as a “buy” and are targeting an average price of $187.73.
Apple is in the consumer electronics industry, with a projected CAGR of 6.97% from $738.75 billion in 2022 to $1,239.40 billion in 2030. An important driver of growth is the increasing demand for smart devices. Modern households provide an opportunity for technology companies to cater to consumer needs. The rise of AI also allows the market to make rapid advancements. Voice recognition and machine learning allow electronics to satisfy more customer needs.
Apple’s key catalyst is its ability to innovate extremely quickly, with each product adding some improvement over the last. For example, the company has frequently created new iPhones over the past decade including the newly released iPhone 15.
Beyond their flagship product, Apple has also set the bar high for its Macbook line. In a recent announcement, Apple unveiled the highly anticipated Macbook Pro 2023 powered by the all-new M3 chips. These cutting-edge chips not only promise enhanced performance but also usher in a new era of workflows and memory support.
Apple’s unrelenting pursuit of innovation, exemplified by its rapid product development and groundbreaking chip technology, solidifies its position as a leader in the tech industry. AAPL is an industry giant worth buying and looking out for in 2023.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META), formerly Facebook, is a multinational technology company that operates in the apps Instagram, Facebook, and WhatsApp.
META’s stock is up 151% year-to-date and is covered by 49 analysts projecting a 12-month price forecast of $380 to $477.
The Social Networking market is valued at $129.60 billion in 2022 and is projected to grow at a CAGR of 7.29%, reaching $189.5 billion by 2027. Key factors of this speedy growth include the high penetration of mobile devices such as cell phones or laptops, urbanization, and the increase of internet access worldwide.
Financials for Meta Platforms are strong. Revenue increased from $116.60 billion to $120.52 billion, representing a 3.36% YoY growth. In addition, the market cap also grew by 138.38%, and levered FCF growth YoY has reached 52.37% this past year. This is 3,124.40% more than the sector median of 1.62%. EBIT margin has further reached 34.31%, which is 313.43% more than the sector median of 8.32%, and these metrics indicate that Meta is profitable while growing at a consistent rate.
Meta’s main competitive growth catalyst has firmly established itself as a global tech giant with a user base of over 2 billion people, making it the largest social media platform in the world. In contrast, its closest rival, Twitter, lags far behind with a user base of just 335 million. This enormous discrepancy in user numbers provides Meta with a considerable competitive edge in the social media landscape.
Advertisement targeting has seen substantial advancements through Meta’s AI initiatives. The company’s algorithms have become exceptionally proficient at understanding user preferences and behaviors. This edge allows advertisers to reach their target audiences with unprecedented precision. This has not only increased the effectiveness of advertising on Meta’s platforms but also boosted revenue streams.
Overall, as the industry grows and META continues being a pioneer in the field, META is a worthwhile buy in the long term to skyrocket financially.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA) is an American multinational technology that develops integrated circuits used in consumer daily appliances.
NVDA stock is up 200% YTD, and the global IT is forecasted to grow from $8.8 trillion in 2023 to $11.9 trillion in 2027 at a CAGR of 7.9%. Revenue of $1.51 billion grew 101.48% YoY, net income of $6.19 billion grew a staggering 843.29% YoY, and a net profit margin of 45.81% grew 367.93% YoY. Financials are strong for the company and are growing at a staggering rate in the years to come.
In recent news, a significant revelation has emerged regarding Nvidia’s highly anticipated “Super” versions of the GeForce RTX 40-series graphics cards. These variants are poised to usher in substantial performance enhancements, all while maintaining a level of power efficiency comparable to their standard counterparts.
The ‘Super’ models from Nvidia are expected to demonstrate impressive gains in graphical performance, which will be particularly appealing to gamers and professionals seeking higher frame rates and enhanced rendering capabilities for demanding applications. Such improvements are being achieved through optimizations in both hardware and software, showcasing Nvidia’s commitment to pushing the boundaries of GPU performance.
Yahoo! Finance reports 45 analysts having a 12-month mean price target of $634.17 and a high price target of $1,100.08. NVDA is a worthwhile choice for prospective investors as its GeForce RTX 40-series graphics cards will transform the industry.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post The 3 Best Tech Stocks to Buy in November appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) is one of the world’s largest consumer electronics companies based on the immense consumer popularity and usage of its main product lines. AAPL is up by 40% year-to-date. AAPL is an industry giant worth buying and looking out for in 2023.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) is one of the world’s largest consumer electronics companies based on the immense consumer popularity and usage of its main product lines. AAPL is up by 40% year-to-date. AAPL is an industry giant worth buying and looking out for in 2023.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) is one of the world’s largest consumer electronics companies based on the immense consumer popularity and usage of its main product lines. AAPL is up by 40% year-to-date. AAPL is an industry giant worth buying and looking out for in 2023.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL) is one of the world’s largest consumer electronics companies based on the immense consumer popularity and usage of its main product lines. AAPL is up by 40% year-to-date. AAPL is an industry giant worth buying and looking out for in 2023.
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12710.0
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2023-11-03 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-6
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12711.0
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2023-11-03 00:00:00 UTC
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US STOCKS-U.S. stocks close higher as Treasury yields fall after weak jobs data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-close-higher-as-treasury-yields-fall-after-weak-jobs-data
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nan
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By Sinéad Carew and Amruta Khandekar
Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharplyafter data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
"From a policy perspective this gives confidence the Fed remains on hold for the foreseeable future and only really hikes again if growth or inflation accelerate from here," said Matt Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
But what Palazzolo expects to happen is a steady deceleration in labor market gains and economic activity for the next six to nine months and, provided that happens it "should allow for the Fed to stay on hold at current levels," he said.
According to preliminary data, the S&P 500 .SPX gained 40.38 points, or 0.94%, to end at 4,358.16 points, while the Nasdaq Composite .IXIC gained 184.09 points, or 1.38%, to 13,477.23. The Dow Jones Industrial Average .DJI rose 220.20 points, or 0.65%, to 34,059.28.
The small-cap Russell 2000 index .RUT also rallied, and touched its highest level since Oct. 17. During the session, the CBOE volatility index .VIX touched a fresh six-week low, reflecting easing investor anxiety.
The jobs data also helped push U.S. Treasury yields lower for the fourth consecutive session. During the session the benchmark 10-year Treasury yield US10YT=RR hit its lowest level in over five weeks. The move in yields supported stocks.
"The Fed has had a difficult time getting their monetary policy to actually loosen the labor market," he said, noting that Friday's data encouraged the "interpretation that the Fed may be done with a tightening cycle."
Analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
AppleAAPL.O was an outlier, losing ground after its sales forecast for the holiday quarter fell short of expectations.
Among major movers, BlockSQ.N jumped after raising its annual adjusted profit forecast. FortinetFTNT.O dropped on a downbeat fourth-quarter revenue forecast.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shristi Achar A; Editing by Sriraj Kalluvila, Maju Samuel and David Gregorio)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O was an outlier, losing ground after its sales forecast for the holiday quarter fell short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharplyafter data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. "From a policy perspective this gives confidence the Fed remains on hold for the foreseeable future and only really hikes again if growth or inflation accelerate from here," said Matt Palazzolo, senior investment strategist at Bernstein Private Wealth Management.
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AppleAAPL.O was an outlier, losing ground after its sales forecast for the holiday quarter fell short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharplyafter data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
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AppleAAPL.O was an outlier, losing ground after its sales forecast for the holiday quarter fell short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharplyafter data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. According to preliminary data, the S&P 500 .SPX gained 40.38 points, or 0.94%, to end at 4,358.16 points, while the Nasdaq Composite .IXIC gained 184.09 points, or 1.38%, to 13,477.23.
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AppleAAPL.O was an outlier, losing ground after its sales forecast for the holiday quarter fell short of expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes rallied on Friday as bond yields fell sharplyafter data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. But what Palazzolo expects to happen is a steady deceleration in labor market gains and economic activity for the next six to nine months and, provided that happens it "should allow for the Fed to stay on hold at current levels," he said.
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12712.0
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2023-11-03 00:00:00 UTC
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Wall St Week Ahead-Stock investors see green light in falling Treasury yields
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-stock-investors-see-green-light-in-falling-treasury-yields-0
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nan
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By David Randall
NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff.
The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
Over much of the last week, however, that dynamic has reversed, following news of smaller than expected U.S. government borrowing and signs that the Federal Reserve is nearing the end of its rate hiking cycle.
Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. Meanwhile, the S&P 500 surged 5.9% in the past week, its biggest gain since November 2022. The index is off around 5% from its July peak, though up nearly 14% year-to-date.
"The stability in rates is helping other asset classes find a footing," said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management. "If equities move higher you may find investors starting to feel as if they need to chase performance through the end of the year."
Draho expects the S&P 500 to trade between 4,200 and 4,600 until investors determine whether the economy will be able to avoid a recession. The index was recently around 4,365.
Other factors may also be working in stocks’ favor. Exposure to equities among active money managers stands near its lowest level since October 2022, according to an index compiled by the National Association of Active Investment Managers - a compelling sign for contrarian investors who seek to buy when pessimism rises.
Aggregate equity positioning tracked by Deutsche Bank fell to a five-month low earlier in the week, the firm's strategists said in a Friday note, helping fuel a powerful bounce when investors rushed back into the market.
At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research. The best two weeks of the year for the index, during which it has risen an average of 2.2% - kicked off on Oct. 22, according to data from Carson Investment Research.
"We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2-1/2 years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand. The S&P 500 closed up 0.9% on the day.
Of course, plenty of investors remain hesitant to return to stocks just yet. Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. The iPhone maker gave a holiday sales forecast that was below Wall Street estimates. At least 14 analysts cut their price targets for the stock, according to LSEG data.
Still, analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
At the same time, betting on reversals in Treasuries has been a losing proposition for most of the year, during which rebounds in the U.S. government bond market have been followed by deeper selloffs. The 10-year Treasury yield is up around 125 basis points from its low for the year.
Some investors also worry that the so-called Goldilocks economy suggested by Friday's jobs report may not last. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, believes that while signs of softer than expected growth are boosting stocks and bonds for now, they may eventually stir recession worries.
"Eventually 'good' moderation may turn into a debate of whether the economy and labor markets are weakening too much," he said.
(Reporting by David Randall; Editing by Ira Iosebashvili, Louise Heavens and Cynthia Osterman)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. Aggregate equity positioning tracked by Deutsche Bank fell to a five-month low earlier in the week, the firm's strategists said in a Friday note, helping fuel a powerful bounce when investors rushed back into the market. Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2-1/2 years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. By David Randall NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. The index was recently around 4,365. At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research.
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12713.0
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2023-11-03 00:00:00 UTC
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After Hours Most Active for Nov 3, 2023 : XOM, QQQ, CD, RSI, RTX, ENB, ING, PAGP, NU, AAPL, CSCO, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-3-2023-%3A-xom-qqq-cd-rsi-rtx-enb-ing-pagp-nu-aapl-csco-amzn
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The NASDAQ 100 After Hours Indicator is down -3.15 to 15,096.34. The total After hours volume is currently 63,664,449 shares traded.
The following are the most active stocks for the after hours session:
Exxon Mobil Corporation (XOM) is +0.01 at $107.79, with 6,475,862 shares traded. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.3 at $368.01, with 3,237,680 shares traded. This represents a 42.04% increase from its 52 Week Low.
Chindata Group Holdings Limited (CD) is unchanged at $9.00, with 3,012,286 shares traded. As reported in the last short interest update the days to cover for CD is 8.286115; this calculation is based on the average trading volume of the stock.
Rush Street Interactive, Inc. (RSI) is +0.19 at $3.99, with 3,010,289 shares traded. As reported by Zacks, the current mean recommendation for RSI is in the "buy range".
RTX Corporation (RTX) is -0.12 at $82.60, with 2,853,606 shares traded. RTX's current last sale is 96.61% of the target price of $85.5.
Enbridge Inc (ENB) is -0.08 at $33.75, with 2,413,233 shares traded. ENB's current last sale is 83.4% of the target price of $40.47.
ING Group, N.V. (ING) is unchanged at $13.26, with 2,000,372 shares traded. As reported by Zacks, the current mean recommendation for ING is in the "buy range".
Plains GP Holdings, L.P. (PAGP) is unchanged at $16.24, with 1,778,443 shares traded. PAGP's current last sale is 95.53% of the target price of $17.
Nu Holdings Ltd. (NU) is +0.01 at $8.49, with 1,758,095 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cisco Systems, Inc. (CSCO) is unchanged at $53.01, with 1,153,565 shares traded. CSCO's current last sale is 91.4% of the target price of $58.
Amazon.com, Inc. (AMZN) is -0.1195 at $138.48, with 1,061,744 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.76. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Chindata Group Holdings Limited (CD) is unchanged at $9.00, with 3,012,286 shares traded.
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Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,664,449 shares traded.
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Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,664,449 shares traded.
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Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for RSI is in the "buy range".
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12714.0
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2023-11-03 00:00:00 UTC
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Apple ticks lower after warning of dull holiday quarter
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AAPL
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https://www.nasdaq.com/articles/apple-ticks-lower-after-warning-of-dull-holiday-quarter
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nan
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nan
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By Aditya Soni
Nov 3 (Reuters) - Apple shares on Friday pared losses that were driven by its forecast for a subdued holiday quarter after a U.S. jobs report bolstered hopes of a pause in interest rate hikes by the Federal Reserve.
The stock AAPL.O was down 1.5% in early trading, having fallen more than 3% before the bell. The world's most valuable firm was on course to lose $40 billion in market value, if the losses hold.
The iPhone maker on Thursday forecast sales for the holiday quarter, usually its biggest, below Wall Street estimates, blaming weak demand for iPads and wearables.
The projection fanned fears about broader holiday demand, with estimates including those from the U.S. National Retail Federation and Deloitte predicting the slowest rise in sales in the crucial shopping period in years due to sticky inflation.
"Apple's revenue growth has stalled over the past few quarters - and appears likely to continue to stagnate over the next year," said brokerage Bernstein, noting the holiday quarter usually sets the tone for Apple's fiscal year that runs until September.
The stock, however, found some support after data showed that nonfarm payrolls rose less than expected in October, lifting shares across the board on expectations that the Fed could end its rate-tightening cycle.
At least 14 analysts cut their price targets on Apple, pushing down the median price target to $195, according to LSEG data. Apple currently trades at nearly 26 times its 12-month forward earnings estimates, among the lowest in the so-called "Magnificent Seven" stocks.
"We view management's flat sales guidance as proof the company cannot rely on iPhone sales to drive shares higher, as it has in the past," D.A. Davidson analyst Tom Forte said.
The iPhone, Apple's main revenue generator, saw its sales rise in the September quarter and is also forecast to post an increase in the last three months of 2023.
CEO Tim Cook also insisted the iPhone 15 models were doing well in China, as he sought to allay Wall Street fears that Apple was losing market share to a resurgent Huawei and other local smartphone sellers. "In mainland China, we set a quarterly record for the September quarter for iPhone," Cook told Reuters.
Several analysts cheered the remarks. "The Street will breathe a sigh of relief on this front," Wedbush Securities analyst Dan Ives said.
(Reporting by Aditya Soni; Editing by Shounak Dasgupta)
((Aditya.Soni@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock AAPL.O was down 1.5% in early trading, having fallen more than 3% before the bell. By Aditya Soni Nov 3 (Reuters) - Apple shares on Friday pared losses that were driven by its forecast for a subdued holiday quarter after a U.S. jobs report bolstered hopes of a pause in interest rate hikes by the Federal Reserve. The projection fanned fears about broader holiday demand, with estimates including those from the U.S. National Retail Federation and Deloitte predicting the slowest rise in sales in the crucial shopping period in years due to sticky inflation.
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The stock AAPL.O was down 1.5% in early trading, having fallen more than 3% before the bell. The iPhone, Apple's main revenue generator, saw its sales rise in the September quarter and is also forecast to post an increase in the last three months of 2023. CEO Tim Cook also insisted the iPhone 15 models were doing well in China, as he sought to allay Wall Street fears that Apple was losing market share to a resurgent Huawei and other local smartphone sellers.
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The stock AAPL.O was down 1.5% in early trading, having fallen more than 3% before the bell. By Aditya Soni Nov 3 (Reuters) - Apple shares on Friday pared losses that were driven by its forecast for a subdued holiday quarter after a U.S. jobs report bolstered hopes of a pause in interest rate hikes by the Federal Reserve. "Apple's revenue growth has stalled over the past few quarters - and appears likely to continue to stagnate over the next year," said brokerage Bernstein, noting the holiday quarter usually sets the tone for Apple's fiscal year that runs until September.
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The stock AAPL.O was down 1.5% in early trading, having fallen more than 3% before the bell. The iPhone maker on Thursday forecast sales for the holiday quarter, usually its biggest, below Wall Street estimates, blaming weak demand for iPads and wearables. The iPhone, Apple's main revenue generator, saw its sales rise in the September quarter and is also forecast to post an increase in the last three months of 2023.
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2023-11-03 00:00:00 UTC
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Apple (NASDAQ:AAPL) Stock: Don’t Fret Over Holiday Outlook, Says Analyst
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AAPL
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https://www.nasdaq.com/articles/apple-nasdaq%3Aaapl-stock%3A-dont-fret-over-holiday-outlook-says-analyst
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Apple (NASDAQ:AAPL) delivered better-than-expected Q4 earnings. However, shares of the iPhone maker are down about 3.38% in Thursday’s after-hours of trading as its Holiday sales outlook disappointed investors. Nonetheless, Goldman Sachs analyst Mike Ng believes investors shouldn’t fret over the lower-than-expected December quarter sales guidance, as the ongoing strength in the Services segment and benefits from a higher iPhone price/mix will support its growth.
The analyst highlighted that the lower-than-expected Q1 guidance is due to the timing of the product launches. The analyst believes that Apple will launch new models of iPads late in 2024, which may impact Q1 sales. Meanwhile, tough year-over-year comparisons will weigh on the sales of wearables and accessories. Mike Ng reiterated a Buy on Apple stock and increased the price target to $227 from $213.
Further, investors should note that Apple’s December quarter sales are projected to stay flat despite having one less week than the prior year. Notably, the December quarter this year has 13 weeks, whereas the prior-year quarter had 14 weeks. The one extra week “added approximately 7 percentage points to the quarter's total revenue,” said Luca Maestri, Apple’s CFO.
With this backdrop, let’s delve into Apple’s December quarter outlook.
Apple: Q1 Outlook
Apple expects its top line to stay flat compared to the prior year in Q1. This implies that the company could deliver total net sales of about $117.2 billion in the first quarter of Fiscal 2024 (ending December 31). The guidance fell significantly short of analysts’ expectations of $123.1 billion.
Apple anticipates iPhone and Mac revenues to improve in Q1. However, weakness in the iPad, and Wearables, Home and Accessories segments will remain a drag.
Nonetheless, Apple remains upbeat about Services revenue. The company projects its average revenue per week to grow at a similar strong double-digit rate as it did during the September quarter in the Services segment. Further, the company expects its gross margins to be between 45% and 46%, compared to 43% in the prior year quarter.
Is Apple Stock Expected to Rise?
Apple stock is expected to rise by 14.52% based on Wall Street analysts’ average 12-month price target of $203.35. Meanwhile, analysts remain cautiously optimistic about Apple stock due to the weakness in the iPad and Wearables, Home and Accessories segments. Overall, it has received 22 Buys and nine Holds for a Moderate Buy consensus rating.
It’s worth highlighting that most of the price targets and recommendations for AAPL stock were issued before the Q4 financial result announcement. Consequently, investors can expect a potential revision in the price targets.
Bottom Line
Apple’s top and bottom lines are expected to benefit from the solid momentum in the Services segment, the growing installed base of active devices, and increased sales of higher-priced iPhones as supply concerns ease. However, the near-term pressure in the iPad and Wearables division could pose challenges in the short term, as evidenced by the analysts’ Moderate Buy consensus rating.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) delivered better-than-expected Q4 earnings. It’s worth highlighting that most of the price targets and recommendations for AAPL stock were issued before the Q4 financial result announcement. Nonetheless, Goldman Sachs analyst Mike Ng believes investors shouldn’t fret over the lower-than-expected December quarter sales guidance, as the ongoing strength in the Services segment and benefits from a higher iPhone price/mix will support its growth.
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Apple (NASDAQ:AAPL) delivered better-than-expected Q4 earnings. It’s worth highlighting that most of the price targets and recommendations for AAPL stock were issued before the Q4 financial result announcement. Apple: Q1 Outlook Apple expects its top line to stay flat compared to the prior year in Q1.
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Apple (NASDAQ:AAPL) delivered better-than-expected Q4 earnings. It’s worth highlighting that most of the price targets and recommendations for AAPL stock were issued before the Q4 financial result announcement. Nonetheless, Goldman Sachs analyst Mike Ng believes investors shouldn’t fret over the lower-than-expected December quarter sales guidance, as the ongoing strength in the Services segment and benefits from a higher iPhone price/mix will support its growth.
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Apple (NASDAQ:AAPL) delivered better-than-expected Q4 earnings. It’s worth highlighting that most of the price targets and recommendations for AAPL stock were issued before the Q4 financial result announcement. Mike Ng reiterated a Buy on Apple stock and increased the price target to $227 from $213.
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2023-11-03 00:00:00 UTC
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Apple's (AAPL) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-q4-earnings-beat-estimates-revenues-fall-y-y
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Apple AAPL reported fourth-quarter fiscal 2023 earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 5.04% and increased 13.2% year over year.
Net sales decreased 0.7% year over year to $89.498 billion, which beat the Zacks Consensus Estimate by 0.52%. Unfavorable forex hurt revenues by almost 200 basis points (bps).
iPhone sales increased 2.8% from the year-ago quarter to $43.805 billion and accounted for 48.9% of total sales. iPhone sales missed the Zacks Consensus Estimate by 0.97%.
Services revenues grew 16.3% from the year-ago quarter to $22.31 billion and accounted for 24.9% of sales. The figure also beat the consensus mark by 4.53%.
Apple now has more than 1 billion paid subscribers across its Services portfolio, nearly double what it had three years ago.
Both transacting accounts and paid accounts grew double-digits year over year in the reported quarter.
Apple Inc. Price, Consensus and EPS Surprise
Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote
Top Line Details
America’s sales increased 0.8% year over year to $40.115 billion and accounted for 44.8% of total sales. The figure beat the Zacks Consensus Estimate by 5.45%.
Europe generated $22.463 billion in sales, down 1.5% on a year-over-year basis. The region accounted for 25.1% of total sales. Europe’s sales beat the consensus mark by 1.11%.
Greater China sales decreased 2.5% from the year-ago quarter to $15.084 billion, accounting for 16.9% of total sales. The figure lagged the Zacks Consensus Estimate by 13.03%.
Rest of the Asia Pacific generated sales of $6.331 billion, down 0.7% year over year. The region accounted for 7.1% of total sales. The figure beat the consensus mark by 4.8%.
Japan’s sales of $5.505 billion decreased 3.4% year over year, accounting for 6.2% of total sales. The figure lagged the consensus mark by 0.32%.
Top-Line Details
Product sales (75.1% of sales) decreased 5.3% year over year to $67.184 billion. Non-iPhone revenues (iPad, Mac and Wearables) decreased 17.5% on a combined basis.
iPad sales of $6.443 billion declined 10.2% year over year and accounted for 7.2% of total sales. The figure beat the Zacks Consensus Estimate by 10.04%.
Mac sales of $7.61 billion decreased 33.8% from the year-ago quarter and accounted for 8.5% of total sales. The figure lagged the Zacks Consensus Estimate by 8.1%.
Wearables, Home and Accessories sales decreased 3.4% year over year to $9.322 billion and accounted for 10.4% of total sales. The figure beat the consensus mark by 1.05%.
Apple Watch’s adoption rate continues to grow rapidly. More than two-thirds of the customers who purchased the Apple Watch during the reported quarter were first-time customers.
Operating Details
Gross margin of 45.2% expanded 290 bps on a year-over-year basis.
Moreover, the gross margin expanded 70 bps sequentially due to cost savings and a favorable mix shift toward services.
Products’ gross margin expanded 120 bps sequentially to 36.6%. Services’ gross margin was 70.9%, up 40 bps sequentially.
Operating expenses rose 1.9% year over year to $13.46 billion due to higher research & development expenses, which increased 8.1% year over year. Selling, general & administrative expenses decreased 4.5% year over year.
Operating margin expanded 250 bps on a year-over-year basis to 30.1%.
Balance Sheet
As of Sep 30, 2023, cash & marketable securities were $162.099 billion compared with $167.08 billion as of Jun 30, 2023.
Term debt, as of Sep 30, 2023, was $105.103 billion, down from $105.29 billion as of Jun 30, 2023.
Apple returned nearly $25 billion in the reported quarter through dividend payouts ($3.8 billion) and share repurchases ($15.5 billion).
Guidance
Apple expects the December quarter’s (first-quarter fiscal 2024) revenues to be similar to that of the year-ago quarter’s figure.
Apple expects iPhone’s year-over-year revenues to grow on an absolute basis. Revenues for Mac are expected to significantly accelerate compared with the September quarter’s reported figure.
It expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.
For the Services segment, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter.
Gross margin is expected between 45% and 46% in the first quarter of fiscal 2024. Operating expenses are expected between $14.4 billion and $14.6 billion.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
NetEase NTES, NVIDIA NVDA and Model N MODN are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase shares have gained 51.1% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
NVIDIA shares have returned 197.5% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.
Model N shares have declined 39.2% year to date. MODN is set to report its fourth-quarter fiscal 2023 results on Nov 9.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL reported fourth-quarter fiscal 2023 earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 5.04% and increased 13.2% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report To read this article on Zacks.com click here. It expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.
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Apple AAPL reported fourth-quarter fiscal 2023 earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 5.04% and increased 13.2% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report To read this article on Zacks.com click here. Wearables, Home and Accessories sales decreased 3.4% year over year to $9.322 billion and accounted for 10.4% of total sales.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL reported fourth-quarter fiscal 2023 earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 5.04% and increased 13.2% year over year. Net sales decreased 0.7% year over year to $89.498 billion, which beat the Zacks Consensus Estimate by 0.52%.
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Apple AAPL reported fourth-quarter fiscal 2023 earnings of $1.46 per share, which beat the Zacks Consensus Estimate by 5.04% and increased 13.2% year over year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Model N, Inc. (MODN) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple returned nearly $25 billion in the reported quarter through dividend payouts ($3.8 billion) and share repurchases ($15.5 billion).
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2023-11-03 00:00:00 UTC
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Dow Movers: AAPL, GS
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-gs
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In early trading on Friday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.7%. Year to date, Goldman Sachs Group Inc has lost about 6.2% of its value.
And the worst performing Dow component thus far on the day is Apple, trading down 1.1%. Apple is showing a gain of 35.1% looking at the year to date performance.
Two other components making moves today are UnitedHealth Group, trading down 0.9%, and Walgreens Boots Alliance, trading up 2.3% on the day.
VIDEO: Dow Movers: AAPL, GS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: AAPL, GS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.7%. Year to date, Goldman Sachs Group Inc has lost about 6.2% of its value.
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VIDEO: Dow Movers: AAPL, GS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.7%. Year to date, Goldman Sachs Group Inc has lost about 6.2% of its value.
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VIDEO: Dow Movers: AAPL, GS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.7%. And the worst performing Dow component thus far on the day is Apple, trading down 1.1%.
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VIDEO: Dow Movers: AAPL, GS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.7%. And the worst performing Dow component thus far on the day is Apple, trading down 1.1%.
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2023-11-03 00:00:00 UTC
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US STOCKS-Futures slip on Apple's weak forecast; payrolls data looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-slip-on-apples-weak-forecast-payrolls-data-looms
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By Amruta Khandekar and Shristi Achar A
Nov 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq slipped on Friday, pressured by a drop in Apple's shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory.
AppleAAPL.O tumbled 3.1% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates.
Other megacap growth stocks were mixed, with the benchmark 10-year Treasury yield US10YT=RR steady at 4.66% after dropping to a three-week low in the previous session.
"The only thing that could save Apple from falling into dark waters is ... a further rally in U.S. bonds, and a further fall in yields," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April on growing optimism that the Federal Reserve had reached the end of its monetary tightening campaign.
The recent inflow of strong corporate updates have also kept the three major indexes on track for their biggest weekly gain in about a year. Of the 376 firms in the S&P 500 that have reported so far, nearly 81% have beaten earnings estimates, as per LSEG data.
Investors are now focused on the Labor Department's report, which is expected to show U.S. job growth likely slowed last month, partly due to the strike against the Detroit Big Three automakers. The data is due at 8:30 a.m ET (1230 GMT).
Economists polled by Reuters expect non-farm payrolls to have increased by 180,000 jobs in October, after surging 336,000 in September, with the unemployment rate seen steady at 3.8%.
The reading, which will come on the heels of a mixed set of data on the labor market this week, could bolster the view that the U.S. central bank need not raise interest rates further. But analysts have cautioned that a stronger-than-expected report may bring concerns about interest rates back to the fore.
"Any strength in job additions or wages growth data could bring bond trades back to earth and remind them that if the US jobs market - and the economy - remains this strong, the Fed could turn hawkish again," said Ozkardeskaya.
At 6:48 a.m. ET, Dow e-minis 1YMcv1 were up 5 points, or 0.01%, S&P 500 e-minis EScv1 were down 6.5 points, or 0.15%, and Nasdaq 100 e-minis NQcv1 were down 55.5 points, or 0.37%.were down 55.5 points, or 0.37%.
Among major movers, FortinetFTNT.O dropped 23.9% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
CoinbaseCOIN.O shares fell 4.4% after the cryptocurrency exchange's trading volumes declined for the second quarter in a row.
BlockSQ.N jumped 16.9% after the payments firm raised its annual adjusted profit forecast.
(Reporting by Amruta Khandekar; Editing by Sriraj Kalluvila and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O tumbled 3.1% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq slipped on Friday, pressured by a drop in Apple's shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory. Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April on growing optimism that the Federal Reserve had reached the end of its monetary tightening campaign.
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AppleAAPL.O tumbled 3.1% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. "Any strength in job additions or wages growth data could bring bond trades back to earth and remind them that if the US jobs market - and the economy - remains this strong, the Fed could turn hawkish again," said Ozkardeskaya. Among major movers, FortinetFTNT.O dropped 23.9% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
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AppleAAPL.O tumbled 3.1% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq slipped on Friday, pressured by a drop in Apple's shares following a dour holiday-quarter forecast, while investors awaited a crucial employment report for more cues on the interest rate trajectory. "Any strength in job additions or wages growth data could bring bond trades back to earth and remind them that if the US jobs market - and the economy - remains this strong, the Fed could turn hawkish again," said Ozkardeskaya.
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AppleAAPL.O tumbled 3.1% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales and strong services revenue lifted fourth-quarter results above estimates. The data is due at 8:30 a.m ET (1230 GMT). Among major movers, FortinetFTNT.O dropped 23.9% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
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2023-11-03 00:00:00 UTC
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Daily Markets: Investors Digest Apple Earnings, Jobs and Economic Data
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https://www.nasdaq.com/articles/daily-markets-investors-digest-apple-earnings-jobs-and-economic-data
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Today’s Big Picture
Asia-Pacific equity markets finished the day higher following the U.S. market’s continued positive reaction to Wednesday’s Fed meeting results and comments. India’s SENSEX rose 0.44%, Taiwan’s TAIEX and China’s Shanghai Composite both gained about 0.70% and Australia’s ASX All Ordinaries and South Korea’s KOSPI both advanced approximately 1.10%. Hong Kong’s Hang Seng closed 2.52% higher on a strong rally led by Health Services names. Japan’s markets were closed today as the country celebrates Culture Day, a holiday to promote Japanese culture, the arts, and academic endeavors. European markets are mixed in midday trading, and U.S. equity futures point to a down market open as quarterly results from Apple (AAPL) and Fortinet (FTNT) weigh on the S&P 500 and Nasdaq Composite futures.
Following Fed’s Chair Powell’s less hawkish than expected comments mid-week, investors will pore over today’s October Employment out at 8:30 AM ET (see below for more), and then the back to back October Services PMI data shortly after stocks begin trading. Investors are looking for a Goldilocks scenario in the data - not so hot that it gives the Fed reasons to consider another rate hike, but not so cool that raises recession fears. What the combined data says about the vector and velocity of the economy, wage pressure, and inflation in the Service economy will influence how the market finishes the week. Potentially shaping how the market views that data are multiple appearances today for Fed Vice Chair for Supervision Michael Barr.
Data Download
International Economy
The Caixin China General Service PMI rose slightly to 50.4 in October from September's 9-month low of 50.2. Overall, the October figure was the 10th straight month of growth in services activity as China continued its efforts to stabilize the economy. Foreign sales grew for the second consecutive month due to an easing of travel curbs that attracted more tourists from abroad while employment stabilized after growing in the prior 8 months. However, prices charged increased the most since May, as firms sought to pass on higher input costs to clients.
The S&P Global/CIPS UK Services PMI was revised slightly higher to 49.5 in October 2023 from the flash reading of 49.2 and inched up from 49.3 in September. Despite the sequential improvement, the October final figure remained below the expansion-contraction line at 50.0 for the third consecutive month.
Domestic Economy
The Labor Department showed that nonfarm payrolls increased by 150,000 for the month, against the consensus forecast for an increase of 170,000, sending the unemployment rate up to 3.9% when it was expected to hold at 3.8%. CNBC also reported that, "Average hourly earnings, a key measure for inflation, increased 0.2% for the month, less than the 0.3% forecast, while the 4.1% year over year again was 0.1 percentage point above expectations."
S&P Global expects that the U.S. Services economy rebounded to a PMI reading of 50.9 in October from 50.1 in September, while the Institute for Supply Management (ISM) forecasts it slipping to 53.0 from 53.6 in September.
The House passed the $14 billion Israel aid bill which includes cuts to IRS funding, making it unlikely to pass either the Senate or be signed by the White House.
The Las Vegas Culinary Union set a strike deadline of Friday, November 10 at 5:00 AM for 35,000 hospitality workers in Las Vegas. The strike would be the largest hospitality worker strike in U.S. history.
China's Commerce Minister Wang Wentao suggested that the country is open to Micron (MU) expanding its presence in the Chinese market, Reuters reported. President Joe Biden is slated to meet with China's President Xi Jinping in the coming weeks at an economic summit in San Francisco.
Markets
Traders continued to bid up just about everything yesterday in an extended response to Wednesday’s Fed comments. Real Estate and Energy led the charge as both closed over 3% higher while Consumer Discretionary (2.61%), Financials (2.36%), and Industrials (2.06%) all ended the day with “a 2 handle.” All remaining sectors closed between 1.30% and 1.89%. Broad indexes reflected this price action as the Dow rose 1.70%, the Nasdaq Composite gained 1.78%, the S&P 500 advanced 1.89% and the Russell 2000 closed 2.67% higher.
Despite posting higher sales this past quarter Borg Warner (BWA) missed earnings estimates and lowered its outlook, prompting traders to sell shares 13.07% lower as the market continues to punish any sign of weakness.
Here’s how the major market indicators stack up year-to-date:
Dow Jones Industrial Average: 2.09%
S&P 500: 12.46%
Nasdaq Composite: 27.02%
Russell 2000: -2.67%
Bitcoin (BTC-USD): 110.46%
Ether (ETH-USD): 50.33%
Stocks to Watch
Before U.S. equity markets begin trading today, AMC Networks (AMCX), American Axle (AXL), Cardinal Health (CAH), and Physicians Realty Trust (DOC) will report their latest quarterly results.
Shares of Fortinet are on track to open meaningfully lower this morning (more below) while Expedia Group (EXPE) and medical device manufacturer Insulet Corporation (PODD) are both up sharply in pre-market trading. S&P 500 index component pre-market activity is lighter this morning with 192 companies in active trading and the advance/decline line sitting at 116/76.
Shares of Apple are trading off in pre-market trading as investors focused on guidance being relatively flat for December's quarterly revenue vs. year-ago levels, despite the September quarter revenue and EPS beat. Apple reported September quarter EPS of $1.46 vs. the $1.39 consensus as revenue for the period fell 0.7% YoY to $89.5 billion, modestly ahead of the $89.34 billion consensus. iPhone revenue for the quarter came in at $43.8 billion vs. the $43.4 billion consensus and $42.6 billion in the year ago quarter. Services revenue rose to $22.3 billion vs. $19.2 billion in the year ago quarter, besting the $21.6 billion consensus. For the current quarter, Apple expects iPhone revenue to grow year over year, Mac and iPad performance to accelerate sequentially, and strong double digit growth for its Services business.
Shares of Fortinet tumbled in aftermarket trading last night following September quarter results that missed consensus revenue expectations and the company guided revenue for the current quarter below consensus expectations. Revenue came in at $1.33 billion for the September quarter, up 15.7% YoY but below the $1.35 billion consensus. For the current quarter, Fortinet guided revenue to $1.38-$1.44 billion vs. the $1.5 billion consensus even though billings are expected to reach $1.56-$1.70 billion compared to $1.49 billion in the September quarter. Management expects growth will return to double digits by the second half of 2024.
Shares of small and medium business financial platform company Bill.com (BILL) sunk in aftermarket trading as the market looked past better than expected September quarter results, focusing on the disappointing outlook for the current quarter and fiscal 2024. Bill guided current quarter revenue to $293-$303 million vs. the $318.76 million consensus and $304.99 million booked for the September quarter. For fiscal 2024, Bill guided revenue down to $1.205-$1.245 billion from $1.288-$1.306 billion and the $1.31 billion consensus.
DigitalOcean Holdings (DOCN) shares soared after the company reported a beat and raise September quarter. Revenue came in at $177.06 million, up 16.4% YoY in the September quarter vs. the $173.36 million consensus, and is expected to reach $178 million in the current quarter vs. the $175.16 million consensus. For 2023, DigitalOcean projects revenue to reach $690 million vs. the $683.46 million consensus with EPS between $1.52-$1.54 compared to the $1.42 consensus. Its management continues to target double-digit top-line growth in 2024 and targets sharing more details in February.
Shares of Block (SQ) jumped after posting September quarter results that bested top and bottom line expectations and guided 2024 earnings before interest, tax, amortization, and depreciation (EBITDA) to $2.40 billion vs. the $1.94 billion consensus and $1.5 billion in 2023. During the September quarter, Block processed $60.08 billion in gross purchasing volume, up 10% year over year, and transaction-based revenue was $1.66 billion, up 9% year over year. The company also unveiled a $1 billion stock buyback program. However, Block employees were warned the company’s headcount would shrink in the coming months by about 10%.
Amazon (AMZN) is shuttering its physical Amazon Style apparel stores as the company focuses its brick-and-mortar retail plans for its grocery business. Last year, Amazon closed all its brick-and-mortar bookstores, as well as Amazon 4-star and Amazon Pop Up shops in the U.S. and UK.
Bloomberg reports the conclusion for US Steel’s (X) strategic review to sell all or part of the company may be nearing.
IPOs
Readers who want to dig deeper into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After Today’s Market Close
We’ve made it to the end of another week, and that means it is not only Friday, but no companies are expected to report their quarterly results after equities stop trading. Those looking for more on upcoming quarterly earnings reports should head on over to Nasdaq’s Earnings Calendar.
On the Horizon
Monday, November 6
Eurozone: HCOB Services PMI – October
UK: New Car Sales - October
Tuesday, November 7
China: Exports and Imports – October
Eurozone: Producer Price Index - September
US: Consumer Credit – September
Wednesday, November 8
Japan: Leading Indicators – September
Germany: Inflation Rate – October
Eurozone: Retail Sales – September
US: Weekly MBA Mortgage Applications
US: Weekly EIA Crude Oil Inventories
Thursday, November 9
Japan: Eco Watchers Survey - October
China: Inflation Rate, Producer Price Index – October
China: Retail Sales - September
US: Weekly Initial & Continuing Jobless Claims
US: Wholesale Inventories – September
US: Weekly EIA Natural Gas Inventories
Friday, November 10
UK: GDP Growth – 3Q 2023
UK: GDP, Manufacturing and Industrial Production – September
China: Vehicle Sales - October
US: The University of Michigan Consumer Sentiment Index (Preliminary) – November (10:00 AM ET)
Thought for the Day
"Welcome sweet November, the season of senses and my favorite month of all." — Gregory F. Lenz
Disclosures
Fortinet (FTNT) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index
Block (SQ) is a constituent of the Tematica BITA Digital Infrastructure & Connectivity Index
Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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European markets are mixed in midday trading, and U.S. equity futures point to a down market open as quarterly results from Apple (AAPL) and Fortinet (FTNT) weigh on the S&P 500 and Nasdaq Composite futures. — Gregory F. Lenz Disclosures Fortinet (FTNT) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Block (SQ) is a constituent of the Tematica BITA Digital Infrastructure & Connectivity Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. India’s SENSEX rose 0.44%, Taiwan’s TAIEX and China’s Shanghai Composite both gained about 0.70% and Australia’s ASX All Ordinaries and South Korea’s KOSPI both advanced approximately 1.10%.
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European markets are mixed in midday trading, and U.S. equity futures point to a down market open as quarterly results from Apple (AAPL) and Fortinet (FTNT) weigh on the S&P 500 and Nasdaq Composite futures. — Gregory F. Lenz Disclosures Fortinet (FTNT) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Block (SQ) is a constituent of the Tematica BITA Digital Infrastructure & Connectivity Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of Fortinet tumbled in aftermarket trading last night following September quarter results that missed consensus revenue expectations and the company guided revenue for the current quarter below consensus expectations.
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European markets are mixed in midday trading, and U.S. equity futures point to a down market open as quarterly results from Apple (AAPL) and Fortinet (FTNT) weigh on the S&P 500 and Nasdaq Composite futures. — Gregory F. Lenz Disclosures Fortinet (FTNT) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Block (SQ) is a constituent of the Tematica BITA Digital Infrastructure & Connectivity Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of Fortinet tumbled in aftermarket trading last night following September quarter results that missed consensus revenue expectations and the company guided revenue for the current quarter below consensus expectations.
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European markets are mixed in midday trading, and U.S. equity futures point to a down market open as quarterly results from Apple (AAPL) and Fortinet (FTNT) weigh on the S&P 500 and Nasdaq Composite futures. — Gregory F. Lenz Disclosures Fortinet (FTNT) is a constituent of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Block (SQ) is a constituent of the Tematica BITA Digital Infrastructure & Connectivity Index Apple (AAPL) is a constituent of the Tematica Research Thematic Dividend All-Stars Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity markets finished the day higher following the U.S. market’s continued positive reaction to Wednesday’s Fed meeting results and comments.
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12720.0
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2023-11-03 00:00:00 UTC
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Pre-Market Most Active for Nov 3, 2023 : HOWL, FUBO, SQQQ, AAPL, TQQQ, NIO, TSLA, CLLS, PLTR, SQ, CVNA, F
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-3-2023-%3A-howl-fubo-sqqq-aapl-tqqq-nio-tsla-clls-pltr-sq
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 43.01 to 14,962.56. The total Pre-Market volume is currently 29,674,889 shares traded.
The following are the most active stocks for the pre-market session:
Werewolf Therapeutics, Inc. (HOWL) is +0.68 at $2.83, with 3,672,106 shares traded.HOWL is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
fuboTV Inc. (FUBO) is +0.32 at $3.06, with 2,987,727 shares traded. Smarter Analyst Reports: Friday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
ProShares UltraPro Short QQQ (SQQQ) is +0.14 at $19.64, with 2,441,621 shares traded. This represents a 19.9% increase from its 52 Week Low.
Apple Inc. (AAPL) is -3.17 at $174.40, with 1,887,860 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.2866 at $36.01, with 1,711,248 shares traded. This represents a 123.69% increase from its 52 Week Low.
NIO Inc. (NIO) is +0.23 at $8.02, with 1,221,319 shares traded.NIO is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.43 per share, which represents a -36 percent increase over the EPS one Year Ago
Tesla, Inc. (TSLA) is -0.17 at $218.34, with 1,125,596 shares traded. TSLA's current last sale is 87.34% of the target price of $250.
Cellectis S.A. (CLLS) is -0.2 at $2.81, with 963,115 shares traded.CLLS is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.36 per share, which represents a -63 percent increase over the EPS one Year Ago
Palantir Technologies Inc. (PLTR) is -0.15 at $17.82, with 799,278 shares traded. PLTR's current last sale is 118.8% of the target price of $15.
Block, Inc. (SQ) is +7.41 at $51.39, with 650,642 shares traded. As reported by Zacks, the current mean recommendation for SQ is in the "buy range".
Carvana Co. (CVNA) is -1.62 at $28.30, with 334,064 shares traded. CVNA's current last sale is 64.32% of the target price of $44.
Ford Motor Company (F) is +0.05 at $10.19, with 330,639 shares traded. F's current last sale is 72.79% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -3.17 at $174.40, with 1,887,860 shares traded. Werewolf Therapeutics, Inc. (HOWL) is +0.68 at $2.83, with 3,672,106 shares traded.HOWL is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -3.17 at $174.40, with 1,887,860 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -3.17 at $174.40, with 1,887,860 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -3.17 at $174.40, with 1,887,860 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 43.01 to 14,962.56.
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12721.0
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2023-11-03 00:00:00 UTC
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GLOBAL MARKETS-Stocks jump, dollar and yields drop after US jobs market softens
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-jump-dollar-and-yields-drop-after-us-jobs-market-softens
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Nov 3 (Reuters) - Global stock indexes rose sharply, the U.S. dollar dropped to a six-week low and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October.
The job growth slowdown underscored views that the Federal Reserve may be done hiking interest rates.
Also, U.S. two-year yields were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers union against Detroit's "Big Three" carmakers depressed manufacturing payrolls.
The data also showed the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions.
"The good news here is that the slowdown will likely keep the Fed on the sidelines going forward," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.
"One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away."
Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. The Bank of England on Thursday also left rates unchanged.
Central bank officials however stressed that more may need to be done to tackle inflation.
Traders are now pricing in only a 5% chance of a Fed rate hike in December, down from 20% on Thursday, while the odds of a January increase have slipped to 11% from 28%, according to the CME Group's FedWatch Tool.
Benchmark 10-year yields US10YT=RR fell as low as 4.484%, the lowest since Sept. 26. Two-year note yields US2YT=RR reached 4.807%, the lowest since Sept. 1.
A decision on Wednesday by the U.S. Treasury to issue less long-term debt than expected also fuelled the rally in bonds, as did data on Thursday suggesting the U.S. economy might finally be cooling.
The Dow Jones Industrial Average .DJI rose 222.24 points, or 0.66%, to 34,061.32, the S&P 500 .SPX gained 40.56 points, or 0.94%, to 4,358.34 and the Nasdaq Composite .IXIC added 184.09 points, or 1.38%, to 13,478.28.
Bucking the trend of the broader market, Apple AAPL.O shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter.
The three major U.S. stock indexes also posted gains for the week, with the S&P 500 registering its biggest weekly percentage jump since November 2022.
The pan-European STOXX 600 index .STOXX rose 0.17% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.18%. The MSCI index was up 5.3% for the week, also the biggest weekly percentage increase since November 2022.
The U.S. dollar index dropped to a six-week low after the jobs data. In afternoon trading, the dollar index =USD fell 1.111%, with the euro EUR= up 1.07% to $1.0734.
The Japanese yen strengthened 0.72% versus the greenback at 149.31 per dollar, while sterling GBP= was last trading at $1.2379, up 1.46% on the day. JPY=
In commodities, oil prices ended more than 2% lower, with the geopolitical risk premium waning.
Brent crude futures LCOc1 settled at $84.89 a barrel, while U.S. crude futures CLc1 settled at $80.51.
Spot gold XAU= added 0.4% to $1,994.31 an ounce.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4
(Reporting by Caroline Valetkevitch in New York; additional reporting by Harry Robertson in London and Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams, Mark Heinrich, Rod Nickel and Diane Craft)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bucking the trend of the broader market, Apple AAPL.O shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter. Also, U.S. two-year yields were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers union against Detroit's "Big Three" carmakers depressed manufacturing payrolls. A decision on Wednesday by the U.S. Treasury to issue less long-term debt than expected also fuelled the rally in bonds, as did data on Thursday suggesting the U.S. economy might finally be cooling.
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Bucking the trend of the broader market, Apple AAPL.O shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter. By Caroline Valetkevitch NEW YORK, Nov 3 (Reuters) - Global stock indexes rose sharply, the U.S. dollar dropped to a six-week low and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October. The U.S. dollar index dropped to a six-week low after the jobs data.
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Bucking the trend of the broader market, Apple AAPL.O shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter. By Caroline Valetkevitch NEW YORK, Nov 3 (Reuters) - Global stock indexes rose sharply, the U.S. dollar dropped to a six-week low and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October. Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates.
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Bucking the trend of the broader market, Apple AAPL.O shares fell 0.5%, a day after the company reported quarterly results and warned of a dull holiday quarter. By Caroline Valetkevitch NEW YORK, Nov 3 (Reuters) - Global stock indexes rose sharply, the U.S. dollar dropped to a six-week low and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October. Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates.
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12722.0
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2023-11-02 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-15
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12723.0
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2023-11-02 00:00:00 UTC
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Apple (AAPL) Q4 2023 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-q4-2023-earnings-what-to-expect
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nan
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nan
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S
ince mid June, Apple (AAPL) shares have not performed as well as investors would have liked. Its shares have fallen more than 14% over the past three months, including a 3% decline in the past thirty days. Apple has fallen victim to the market’s bearishness towards mega-cap tech amid rising interest rates.
Despite that, the tech giant is doing a solid job navigating through the various headwinds that have impacted its business, namely rising inflation, hurdles in China, and a potential recession. As such, ahead of its fourth quarter fiscal 2023 earnings results which are due after the closing bell Thursday, there are still tons of reasons to stay bullish on the company’s growth potential.
The sales prospects for the new iPhone 15, which was launched in September, is one of these reasons. According to Wedbush Securities, iPhone 15 unit sales are significantly stronger compared to the iPhone 14, with the iPhone 15 Pro Max standing out. Estimates suggests iPhone 15 sales will surpass iPhone 14 sales by 10 to 12%. But it’s not just about the iPhones: Apple’s Services segment generated $21.2 billion in Q3, up 8.2% year over year.
Service revenue should continue to generate higher-digit revenue growth this quarter and well into 2024 which will help offset the macro weakness impacting iPhone sales. Notably, its management had already noted that they expect the "September quarter Y/Y revenue performance to be similar to the June quarter.” The market will look for details about the state the iPhone, along with more clues about its long-awaited mixed reality headset, dubbed Vision Pro, which was unveiled at the company's Worldwide Developers Conference.
In the three months that ended September, Wall Street expect the Cupertino, Calif.-based tech giant to earn $1.31 per share on revenue of $84.18 billion. This compares to the year-ago quarter when earnings came to $1.29 per share on revenue of $90.15 billion. For the full year, earnings are expected to decline 6.38% year over year to $5.72 per share, while full-year revenue of $360.83 billion will decline 8.5% year over year.
The projected year-over-year declines for the revenue and profits for the fiscal year are part of the reasons Apple stock has struggled. While Apple stock is still up close to 30% year to date, besting the 7% rise in the S&P 500 index, investors are less excited given the stock was up close to 50% year to date at one point, pushing Apple past a $3 trillion valuation. But Apple can still regain that benchmark if it can answer a few key questions on Thursday.
First, how many new phones has Apple sold since the launch on September 12, and how will it guide for the holiday quarter? Still, for this quarter, it’s not going to be just about the iPhones. As noted, Apple’s Services revenue, which has hit all-time highs for two quarters in a row, will be a key focus. In the most recent quarter, the Services segment, which includes Apple TV+, iCloud storage and Apple Music, surpassed 1 billion subscribers, helping Apple to beat on both the top and bottom lines.
In Q3, the company reported $1.26 per share on $81.8 billion in revenue, topping estimates of $1.19 per share on revenue of $81.65 billion. iPhone-related revenue were $39.7 billion, while iPad and Services came in at $5.8 billion. Notably, China revenue came in $15.75 billion, rising 7.8% year over year. On Thursday investors will be watching closely to see if Apple can improve on these numbers and whether (or how) inflation might have impacted the company’s guidance for the holiday quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ince mid June, Apple (AAPL) shares have not performed as well as investors would have liked. Despite that, the tech giant is doing a solid job navigating through the various headwinds that have impacted its business, namely rising inflation, hurdles in China, and a potential recession. As such, ahead of its fourth quarter fiscal 2023 earnings results which are due after the closing bell Thursday, there are still tons of reasons to stay bullish on the company’s growth potential.
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ince mid June, Apple (AAPL) shares have not performed as well as investors would have liked. But it’s not just about the iPhones: Apple’s Services segment generated $21.2 billion in Q3, up 8.2% year over year. For the full year, earnings are expected to decline 6.38% year over year to $5.72 per share, while full-year revenue of $360.83 billion will decline 8.5% year over year.
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ince mid June, Apple (AAPL) shares have not performed as well as investors would have liked. For the full year, earnings are expected to decline 6.38% year over year to $5.72 per share, while full-year revenue of $360.83 billion will decline 8.5% year over year. While Apple stock is still up close to 30% year to date, besting the 7% rise in the S&P 500 index, investors are less excited given the stock was up close to 50% year to date at one point, pushing Apple past a $3 trillion valuation.
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ince mid June, Apple (AAPL) shares have not performed as well as investors would have liked. But it’s not just about the iPhones: Apple’s Services segment generated $21.2 billion in Q3, up 8.2% year over year. Still, for this quarter, it’s not going to be just about the iPhones.
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12724.0
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2023-11-02 00:00:00 UTC
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3 Stocks to Hold for the Next 20 Years
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-hold-for-the-next-20-years-10
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nan
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nan
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Investors should endeavor to hold stocks for the long term, ideally for decades, so it's important to choose the right ones. Great businesses typically have large competitive advantages, strong leadership teams, and products that consumers don't want to live without. Buying shares of companies with these characteristics makes holding for decades much easier.
On that note, let's consider the following three stocks below. All are stalwarts that could help provide a strong foundation to almost any investment portfolio. Let's dig in to see why.
Apple
No stranger to anyone, Apple (NASDAQ: AAPL) is a mainstay of the American consumer experience. The popularity of its devices has helped make Apple one of the largest companies in the world, with a market cap of $2.6 trillion.
Over the past year, Apple has seen its revenue growth decline due to consumers pulling back on discretionary spending. However, Apple's net income margin has remained relatively consistent, demonstrating Apple has many levers to pull to align spending with revenue.
Even as total revenue has weakened, Apple's services segment has continued to grow its revenue. The services segment includes high-margin subscription products like Apple Music and iCloud storage plans. The continued strength here shows the importance of this part of the business, which now represents 26% of overall revenue.
Apple also continues to generate free cash flow, including over $100 billion during the past year. Apple's cash generation has allowed it to buy back tons of its own stock. Over the last five years alone, the company has decreased its shares outstanding by 17%.
Amazon
During the pandemic, Amazon (NASDAQ: AMZN) saw record business as the world turned to e-commerce to buy almost everything. As a result, the company had to spend big to accommodate the demand. In one of the more amazing statistics that came out of this period, Amazon doubled its fulfillment network in approximately two years.
The result of that spending was some pretty discouraging earnings for several quarters. In Q1 of 2022, Amazon posted a net loss of $3.8 billion and free cash flow of negative $18 billion. The good news is that in the quarters since that low point, both of these metrics have headed back in the right direction. In the most recently reported quarter, net income reached $9.9 billion, and the company generated $8.7 billion in free cash flow. That's a pretty impressive turnaround in only six quarters, and it demonstrates Amazon's business strength.
It's also worth noting that Amazon's advertising business is rather quietly becoming a driver of revenue for the company. Advertising revenue increased by 26% year over year in Q3 of 2022 and was the fastest-growing part of the business for the quarter.
Costco
For over a year now, there have been rumors and predictions of an impending recession. One smart move investors can make in anticipation is to buy stock in companies that have some resilience to economic downturns. One such company, in my opinion, is Costco Wholesale (NASDAQ: COST).
With its focus on lowering prices for consumers through offering bulk purchases, Costco is in a good position to remain successful even during a recession because that's when consumers become most cost-conscious. If there has been any pullback in consumer spending over the last year, Costco has not felt much of it.
When Costco reported its Q4 2023 results in late September, the financial picture looked good. Revenue increased by 9% year over year and same-store sales grew by 3.8%. Costco improved on the bottom line as well, with earnings per share increasing by 16%.
More recently, Costco released its September sales update, which covered a five-week period encompassing the month of September. The news here was good as well. Same-store sales growth accelerated to 4.8%. Of particular interest was e-commerce sales, which grew by 3.7% after declining 0.8% year over year in Q4 of 2023.
The value proposition that Costco provides is clearly compelling for its customers. Because Costco sells essential items at attractive prices, we should expect to see retailer succeed even through the next recession. This makes the stock easy to hold over the long term.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeff Santoro has positions in Amazon, Apple, and Costco Wholesale. The Motley Fool has positions in and recommends Amazon, Apple, and Costco Wholesale. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple No stranger to anyone, Apple (NASDAQ: AAPL) is a mainstay of the American consumer experience. Great businesses typically have large competitive advantages, strong leadership teams, and products that consumers don't want to live without. Over the past year, Apple has seen its revenue growth decline due to consumers pulling back on discretionary spending.
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Apple No stranger to anyone, Apple (NASDAQ: AAPL) is a mainstay of the American consumer experience. Over the past year, Apple has seen its revenue growth decline due to consumers pulling back on discretionary spending. Apple also continues to generate free cash flow, including over $100 billion during the past year.
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Apple No stranger to anyone, Apple (NASDAQ: AAPL) is a mainstay of the American consumer experience. Over the past year, Apple has seen its revenue growth decline due to consumers pulling back on discretionary spending. Advertising revenue increased by 26% year over year in Q3 of 2022 and was the fastest-growing part of the business for the quarter.
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Apple No stranger to anyone, Apple (NASDAQ: AAPL) is a mainstay of the American consumer experience. Buying shares of companies with these characteristics makes holding for decades much easier. Over the past year, Apple has seen its revenue growth decline due to consumers pulling back on discretionary spending.
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12725.0
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2023-11-02 00:00:00 UTC
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Apple Inc. Q4 Income Advances, Beats estimates
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-q4-income-advances-beats-estimates-0
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates.
The company's earnings came in at $22.96 billion, or $1.46 per share. This compares with $20.72 billion, or $1.29 per share, in last year's fourth quarter.
Analysts on average had expected the company to earn $1.31 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
Apple Inc. earnings at a glance (GAAP) :
-Earnings (Q4): $22.96 Bln. vs. $20.72 Bln. last year. -EPS (Q4): $1.46 vs. $1.29 last year. -Analyst Estimate: $1.31 -Revenue (Q4): $89.50 Bln vs. $90.15 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. This compares with $20.72 billion, or $1.29 per share, in last year's fourth quarter. Analysts on average had expected the company to earn $1.31 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. This compares with $20.72 billion, or $1.29 per share, in last year's fourth quarter. The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. This compares with $20.72 billion, or $1.29 per share, in last year's fourth quarter. The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its fourth quarter that increased from last year and beat the Street estimates. The company's earnings came in at $22.96 billion, or $1.46 per share. This compares with $20.72 billion, or $1.29 per share, in last year's fourth quarter.
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12726.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Stocks jump, dollar falls; investors bet Fed may be done hiking rates
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-jump-dollar-falls-investors-bet-fed-may-be-done-hiking-rates
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Nov 2 (Reuters) - Global stock indexes rallied and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows.
Investors also assessed Thursday's actions by the Bank of England, which kept rates at a 15-year high and stressed that it did not expect to start cutting them any time soon.
The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
Bond yields extended their move lower from Wednesday on relief that the U.S. Treasury Department announced smaller-than-expected increases in longer-dated Treasury supply.
Benchmark 10-year notes US10YT=RR yields were last down 15 basis points at 4.645% after touching 4.626%, the lowest since Oct. 13. They were on track for their biggest one-day yield drop since March.
In stocks, the Dow Jones Industrial Average .DJI rose 389.08 points, or 1.17%, to 33,663.66, the S&P 500 .SPX gained 62.04 points, or 1.46%, to 4,299.9 and the Nasdaq Composite .IXIC added 176.79 points, or 1.35%, to 13,238.25.
The pan-European STOXX 600 index .STOXX rose 1.77% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.71%.
The moves follow sharp gains overnight in Japanese stocks.
In foreign exchange, the U.S. dollar was broadly lower on the perception that U.S. rate had peaked, raising risk appetite.
Brad Bechtel, global head of FX, at Jefferies in New York, said the Fed is probably done hiking rates, but he could see the rationale for tightening one more time given the still-resilient U.S. economy.
"But at the same time, everyone is looking at a slowdown and inflation is going in the right direction," Bechtel said.
Markets now see a below-20% chance that U.S. rates will rise in December.
Sterling, meanwhile, held firm after the BoE decision. The pound rose as much as 0.6% against the dollar to $1.2225, its highest level in 1-1/2 weeks. GBP=D3 It was last up 0.2%.
The dollar index =USD, which measures the greenback against six other major currencies, was last 0.2% lower at 106.25.
Bitcoin BTC=BTSP, sometimes traded as a proxy for risk-taking, broke above $35,000 to hit its highest level since May 2022.
Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. Apple, a bellwether for consumer demand and the tech sector, is expected to report a 1% decrease in quarterly revenue.
Also, U.S. non-farm payrolls data is due out on Friday. A tight labor market is considered a key factor in the outlook for interest rates.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
The race to raise rates https://tmsnrt.rs/45KHoZJ
(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London, Stella Qiu in Sydney, and Samuel Indyk in London; Editing by Emelia Sithole-Matarise, Susan Fenton and Richard Chang)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy. Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes rallied and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes rallied and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. In stocks, the Dow Jones Industrial Average .DJI rose 389.08 points, or 1.17%, to 33,663.66, the S&P 500 .SPX gained 62.04 points, or 1.46%, to 4,299.9 and the Nasdaq Composite .IXIC added 176.79 points, or 1.35%, to 13,238.25. The pan-European STOXX 600 index .STOXX rose 1.77% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.71%.
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12727.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Wall St set to open higher on bets of end to Fed's rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-on-bets-of-end-to-feds-rate-hikes
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Qualcomm gains as Q1 forecast tops estimates
Starbucks rises on upbeat quarterly results
PayPal up on profit forecast raise
Weekly jobless claims stronger-than-expected
Futures up: Dow 0.55%, S&P 0.79%, Nasdaq 1.21%
Updated at 8:34 a.m. ET/ 1234 GMT
By Amruta Khandekar and Shashwat Chauhan
Nov 2 (Reuters) - Wall Street's main stock indexes were set to open higher on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent U.S. Treasury yields tumbling, with the benchmark 10-year yield US10YT=RR hitting a fresh two-week low.
That, in turn, fueled gains in mega-cap growth stocks. Microsoft MSFT.O, Nvidia NVDA.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1% and 3.5% in premarket trading.
"Our base case is that the Fed is done, but that they will take time to cut rates," said Raphael Olszyna-Marzys, international economist at J Safra Sarasin.
Traders pared back the risk of a December hike to about 20% and a January move to 25%, according to the CME Group's FedWatch tool. They have also priced in a 70% chance that the tightening is over.
U.S. equities have kicked off November on a brighter note following a bruising October marred by fears of higher-for-longer interest rates and geopolitical tensions.
Shares of QualcommQCOM.O climbed 6.4% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as a slowdown in smartphone sales eases.
PayPalPYPL.O advanced 6.6% as the payments giant raised its full-year adjusted profit forecast.
StarbucksSBUX.O jumped 10.3% after fourth-quarter results beat estimates, while data analytics firm Palantir TechnologiesPLTR.Nrose 14.5% on forecasting quarterly revenue above estimates.
ModernaMRNA.O dropped 9.2% after lowering its 2023 COVID-19 vaccine sales forecast.
Apple's AAPL.O shares rose 1.3% ahead of its quarterly numbers due after markets close on Thursday.
The main data point of the week will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.
The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were up 185 points, or 0.55%, S&P 500 e-minis EScv1 were up 33.5 points, or 0.79%, and Nasdaq 100 e-minis NQcv1 were up 178 points, or 1.21%.
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta and Saumyadeb Chakrabarty)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O shares rose 1.3% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger-than-expected Futures up: Dow 0.55%, S&P 0.79%, Nasdaq 1.21% Updated at 8:34 a.m. ET/ 1234 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes were set to open higher on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares rose 1.3% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger-than-expected Futures up: Dow 0.55%, S&P 0.79%, Nasdaq 1.21% Updated at 8:34 a.m. ET/ 1234 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes were set to open higher on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. Shares of QualcommQCOM.O climbed 6.4% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as a slowdown in smartphone sales eases.
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Apple's AAPL.O shares rose 1.3% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger-than-expected Futures up: Dow 0.55%, S&P 0.79%, Nasdaq 1.21% Updated at 8:34 a.m. ET/ 1234 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes were set to open higher on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares rose 1.3% ahead of its quarterly numbers due after markets close on Thursday. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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12728.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Wall St touches two-week high on bets of end to Fed's rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-touches-two-week-high-on-bets-of-end-to-feds-rate-hikes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Qualcomm gains as Q1 forecast tops estimates
Starbucks rises on upbeat quarterly results
PayPal up on profit forecast raise
Weekly jobless claims stronger than expected
Indexes up: Dow 0.92%, S&P 1.22%, Nasdaq 1.32%
Updated at 9:38 a.m. ET/1338 GMT
By Amruta Khandekar and Shashwat Chauhan
Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent U.S. Treasury yields tumbling, with the benchmark 10-year yield US10YT=RR hitting near three-week lows.
"Our base case is that the Fed is done, but that they will take time to cut rates," said Raphael Olszyna-Marzys, international economist at J Safra Sarasin.
All three major stock indexes touched their highest level since Oct. 19.
Mega-cap growth stocks including Microsoft MSFT.O, Nvidia NVDA.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.2% and 3.9%.
All 11 major S&P 500 sectors were trading higher, with real estate .SPLRCR and consumer discretionary .SPLRCD leading gains.
Traders pared back the risk of a December hike to about 20% and a January move to 25%, according to the CME Group's FedWatch tool. They have also priced in a 70% chance that the tightening is over.
On the earnings front,QualcommQCOM.O climbed 5.9% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as a slowdown in smartphone sales eases.
PayPalPYPL.O advanced 3.9% as the payments giant raised its full-year adjusted profit forecast.
StarbucksSBUX.O jumped 9.4% after fourth-quarter results beat estimates, while data analytics firm Palantir TechnologiesPLTR.Nrose 18.8% on forecasting quarterly revenue above estimates.
ModernaMRNA.O dropped 10.5% after lowering its 2023 COVID-19 vaccine sales forecast. Drugmaker Eli LillyLLY.N jumped 6.6% after beating quarterly sales estimates.
Apple's AAPL.O shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 307.02 points, or 0.92%, at 33,581.60, the S&P 500 .SPX was up 51.87 points, or 1.22%, at 4,289.73, and the Nasdaq Composite .IXIC was up 172.71 points, or 1.32%, at 13,234.18.
The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
U.S. equities have kicked off November on a brighter note following a bruising October marred by fears of higher-for-longer interest rates and geopolitical tensions.
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits increased moderately last week as the labor market continues to show few signs of a significant slowdown.
The main data point of the week will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.
Advancing issues outnumbered decliners by a 8.67-to-1 ratio on the NYSE and by a 4.50-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and six new lows, while the Nasdaq recorded 19 new highs and 47 new lows.
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Saumyadeb Chakrabarty and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 0.92%, S&P 1.22%, Nasdaq 1.32% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 0.92%, S&P 1.22%, Nasdaq 1.32% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. On the earnings front,QualcommQCOM.O climbed 5.9% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as a slowdown in smartphone sales eases.
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Apple's AAPL.O shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 0.92%, S&P 1.22%, Nasdaq 1.32% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares advanced 1.2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 0.92%, S&P 1.22%, Nasdaq 1.32% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
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12729.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Markets rally as Fed, BoE bolster rate relief hopes
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AAPL
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https://www.nasdaq.com/articles/global-markets-markets-rally-as-fed-boe-bolster-rate-relief-hopes
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nan
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By Marc Jones
LONDON, Nov 2 (Reuters) - Share and bond markets extended a global rally on Thursday as non-committal Federal Reserve and Bank of England chiefs had traders doubling down on bets that world interest rates may finally have peaked.
Even though neither the Fed nor BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
Shorter-term bond market yields were at two-month lows GVD/EUR and the dollar's .DXY back-pedalling meant relief for the under-pressure Japanese yen JPY=EBS and dozens of emerging market currencies that have been suffering this year. /FRX
The BoE's Governor, Andrew Bailey, tried to hammer home that "it's much too early to be thinking about rate cuts," but a 0.4% drop by the pound versus the euro GBPEUR= and tumble in gilt yields suggested traders were at least considering it.
"They’ll likely be sitting on ‘Table Mountain’ for a while," said Samuel Zief, head Of global fx strategy at J.P. Morgan Private Bank in London, referring to the BoE keeping rates at their current 5.25%.
"But in our view the next move for the BoE will be to lower rates."
Markets are now pricing in a rate cut around September 2024, which would be well after other parts of Europe are expected to have started the process.
Jefferies' chief European economist Mohit Kumar said, "we remain of the view that November could see a positive performance from rates, credit and equities".
Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had surged 1.75%，the biggest daily jump since late July. Tokyo's Nikkei .N225 had also gained 1.1% while the S&P 500's early rise .SPX put it on firmly on track for a fourth day on unbroken gains. .N
Investors are keenly awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. The Cupertino, California-based company is expected to report a 1% decrease in quarterly revenue.
The next big focal point after that will be U.S. non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from a 336,000 increase the previous month.
It will come after mixed data showed strong job openings and slower than expected growth in private payrolls.
Fed funds futures FF: markets were continuing to pare back the chance of a December rate hike to about 20% and a January move to 25%. Markets have priced in a 70% chance that the tightening is now over and U.S. rate cuts could begin as soon as June next year.
The upbeat mood was also lifting commodity markets. Brent crude futures LCOc1 climbed as much as 1.6% to $85.95 a barrel while U.S. West Texas Intermediate CLc1 futures reached as high $82.07 before easing back to just under $81 a barrel.
The price of gold XAU=, which has surged almost 10% since Hamas' attack on Israel last month ignited Middle East tensions, was 0.2% higher at $1,985.99 per ounce.
Global head of commodities, options and international markets at CME, Derek Sammann said volatility and volumes in options markets have spiked sharply over the last month due to the troubles.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
The race to raise rates https://tmsnrt.rs/45KHoZJ
(Additional Reporting by Stella Qiu in Sydney and Samuel Indyk in London; Editing by Emelia Sithole-Matarise and Susan Fenton)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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.N Investors are keenly awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Marc Jones LONDON, Nov 2 (Reuters) - Share and bond markets extended a global rally on Thursday as non-committal Federal Reserve and Bank of England chiefs had traders doubling down on bets that world interest rates may finally have peaked. /FRX The BoE's Governor, Andrew Bailey, tried to hammer home that "it's much too early to be thinking about rate cuts," but a 0.4% drop by the pound versus the euro GBPEUR= and tumble in gilt yields suggested traders were at least considering it.
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.N Investors are keenly awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Marc Jones LONDON, Nov 2 (Reuters) - Share and bond markets extended a global rally on Thursday as non-committal Federal Reserve and Bank of England chiefs had traders doubling down on bets that world interest rates may finally have peaked. Global head of commodities, options and international markets at CME, Derek Sammann said volatility and volumes in options markets have spiked sharply over the last month due to the troubles.
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.N Investors are keenly awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Marc Jones LONDON, Nov 2 (Reuters) - Share and bond markets extended a global rally on Thursday as non-committal Federal Reserve and Bank of England chiefs had traders doubling down on bets that world interest rates may finally have peaked. Global head of commodities, options and international markets at CME, Derek Sammann said volatility and volumes in options markets have spiked sharply over the last month due to the troubles.
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.N Investors are keenly awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. "But in our view the next move for the BoE will be to lower rates." Fed funds futures FF: markets were continuing to pare back the chance of a December rate hike to about 20% and a January move to 25%.
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2023-11-02 00:00:00 UTC
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Is SoFi Select 500 ETF (SFY) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-sofi-select-500-etf-sfy-a-strong-etf-right-now
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Making its debut on 04/11/2019, smart beta exchange traded fund SoFi Select 500 ETF (SFY) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Sofi. SFY has been able to amass assets over $501.75 million, making it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, SFY seeks to match the performance of the SOLACTIVE SOFI US 500 GROWTH INDEX .
The Solactive SoFi US 500 Growth Index follows a rules-based methodology that tracks the performance of 500 of the largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for SFY are 0%, which makes it the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.54%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For SFY, it has heaviest allocation in the Information Technology sector --about 26.70% of the portfolio --while Consumer Discretionary and Financials round out the top three.
Taking into account individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 29.56% of SFY's total assets under management.
Performance and Risk
Year-to-date, the SoFi Select 500 ETF has added roughly 13.74% so far, and is up about 11.17% over the last 12 months (as of 11/02/2023). SFY has traded between $13.06 and $16.24 in this past 52-week period.
The fund has a beta of 1.02 and standard deviation of 18.83% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
SoFi Select 500 ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $89.10 billion in assets, Invesco QQQ has $197.79 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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SoFi Select 500 ETF (SFY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 04/11/2019, smart beta exchange traded fund SoFi Select 500 ETF (SFY) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Making its debut on 04/11/2019, smart beta exchange traded fund SoFi Select 500 ETF (SFY) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Making its debut on 04/11/2019, smart beta exchange traded fund SoFi Select 500 ETF (SFY) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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Taking into account individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 04/11/2019, smart beta exchange traded fund SoFi Select 500 ETF (SFY) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.
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12731.0
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2023-11-02 00:00:00 UTC
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Should Schwab 1000 Index ETF (SCHK) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-schwab-1000-index-etf-schk-be-on-your-investing-radar-10
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
The fund is sponsored by Charles Schwab. It has amassed assets over $2.78 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.50% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 27.73% of total assets under management.
Performance and Risk
SCHK seeks to match the performance of the Schwab 1000 Index before fees and expenses. The Schwab 1000 Index is a float-adjusted market capitalization weighted index that includes the 1,000 largest stocks of publicly traded companies in the United States, with size being determined by market capitalization. The index is designed to be a measure of the performance of large- and mid-cap U.S. stocks.
The ETF has gained about 11.29% so far this year and it's up approximately 10.71% in the last one year (as of 11/02/2023). In the past 52-week period, it has traded between $35.96 and $44.27.
The ETF has a beta of 1.02 and standard deviation of 18.06% for the trailing three-year period. With about 988 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHK is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $344.75 billion in assets, SPDR S&P 500 ETF has $393 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab 1000 Index ETF (SCHK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $2.78 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Alternatives Schwab 1000 Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.55% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab 1000 Index ETF (SCHK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab 1000 Index ETF (SCHK), a passively managed exchange traded fund launched on 10/11/2017.
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12732.0
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2023-11-02 00:00:00 UTC
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ANALYSIS-Bruised Treasury bulls see glimmer of hope after Fed meeting, smaller issuance
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https://www.nasdaq.com/articles/analysis-bruised-treasury-bulls-see-glimmer-of-hope-after-fed-meeting-smaller-issuance
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By Davide Barbuscia and David Randall
NEW YORK, Nov 2 (Reuters) - Wall Street's bond investors received a much-needed shot in the arm on Wednesday, thanks to smaller-than-expected government borrowing from the Treasury and signs that the Federal Reserve may be closer to wrapping up its monetary policy tightening.
The Fed left rates unchanged for the second straight meeting and Fed Chair Jerome Powell nodded to positive developments in bringing down inflation at the end of the central bank’s policy review on Wednesday - though he gave little indication that policymakers were getting closer to cutting rates.
Earlier in the day, the U.S. Treasury said it will slow the pace of increases in its longer-dated debt auctions in the next three months, at least temporarily assuaging concerns that investors will require higher yields to absorb an expected torrent of government debt.
Plenty of bond investors have been burned calling a bottom in a selloff that has taken Treasuries to the cusp of an unprecedented third straight year of losses. One potential near-term pitfall is Friday’s U.S. payrolls data, which could revive expectations of Fed hawkishness if they come in stronger than expected.
Nevertheless, some are betting that risks have finally tilted towards the upside. Yields on the benchmark U.S. 10 year Treasury US10YT=RR - which move inversely to prices - dropped 15 basis points on Wednesday to their lowest in two weeks after breaking above 5% for the first time in 16 years last month. U.S stocks jumped with the S&P .SPX up more than 1%.
“Bonds are starting to show a little bit of life,” said Jack McIntyre, portfolio manager at Brandywine Global. However, if Friday’s payroll number exceeds expectations, “then that bullishness will get tested.”
McIntyre is bullish on longer-dated Treasuries but will wait for Friday’s payroll data to decide whether to add more exposure.
Others have sounded bullish as well. Among them is billionaire investor Stanley Druckenmiller, founder of the Duquesne family office, who said last month that he bought a “massive leveraged position” in two-year U.S. Treasury bonds because of rising concerns about the health of the U.S. economy.
Bond bulls argue investors should increase exposure to long-term securities partly because they could appreciate in price if an economic slowdown pushes the Fed to eventually cut rates.
Some have been focusing on signs that the economy has been slowing below the surface, with dwindling savings accumulated during the COVID-19 pandemic, the resumption of student loan repayments and higher borrowing costs, set to hurt consumers and companies in the months ahead.
The rise in Treasury yields has reached far beyond the bond market. The S&P 500 is down nearly 8% from its July high, as rising bond yields offer investment competition to equities while threatening to raise the cost of capital for companies. The index is up more than 10% year-to-date. Mortgage rates, which are guided by yields, rose to a more-than 23-year high in October.
"We’ve been trading out of equities and increasing bonds," said Josh Emanuel, chief investment officer at Wilshire. "The premium that investors are earning incrementally for taking equity risk is very low today relative to what they earn in government bonds."
The U.S. economy grew almost 5% in the third quarter, so far defying earlier predictions of a slowdown.
RESTRICTIVE ENOUGH?
Fed funds futures late on Wednesday indicated a 23% probability of a rate hike in December, down from a 29% probability on Tuesday. The Fed has already raised rates by 525 basis points since March last year.
Not everyone took Powell's comments as dovish, however, and some investors cautioned the market was too quick to dismiss the possibility of more hikes.
Powell said on Wednesday that it remained unclear whether overall financial conditions were yet restrictive enough to tame inflation, which is still far above the central bank's 2% target. "We've been achieving progress on inflation ... The question is, how long can that continue?," he said.
Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, said that while the Fed is not saying it is done raising rates, “they will need to see data surprise meaningfully to the upside to get them to raise rates in December.”
Wilensky, who has been moving from bets on shorter-term bonds to longer-term ones, does not expect rates to rise significantly from current levels but reckons that bond market volatility will remain given the high level of geopolitical risks.
Noah Wise, a senior portfolio manager at Allspring Global Investments, warned against getting too bullish on bonds, as there was a “heightened risk” that 10-year Treasury yields could once again top 5% if the Fed feels it has to push back against a dovish narrative.
“The market is running with the idea that the Fed is done hiking, which they may or may not be,” he said. “The more the market runs with this narrative, the more it will push the Fed to take more cuts out of their 2024 forecasts."
(Reporting by Davide Barbuscia and David Randall; Editing by Ira Iosebashvili and Shri Navaratnam)
((Davide.Barbuscia@thomsonreuters.com; +1 917 285 3067; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among them is billionaire investor Stanley Druckenmiller, founder of the Duquesne family office, who said last month that he bought a “massive leveraged position” in two-year U.S. Treasury bonds because of rising concerns about the health of the U.S. economy. Some have been focusing on signs that the economy has been slowing below the surface, with dwindling savings accumulated during the COVID-19 pandemic, the resumption of student loan repayments and higher borrowing costs, set to hurt consumers and companies in the months ahead. Noah Wise, a senior portfolio manager at Allspring Global Investments, warned against getting too bullish on bonds, as there was a “heightened risk” that 10-year Treasury yields could once again top 5% if the Fed feels it has to push back against a dovish narrative.
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Yields on the benchmark U.S. 10 year Treasury US10YT=RR - which move inversely to prices - dropped 15 basis points on Wednesday to their lowest in two weeks after breaking above 5% for the first time in 16 years last month. The S&P 500 is down nearly 8% from its July high, as rising bond yields offer investment competition to equities while threatening to raise the cost of capital for companies. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, said that while the Fed is not saying it is done raising rates, “they will need to see data surprise meaningfully to the upside to get them to raise rates in December.” Wilensky, who has been moving from bets on shorter-term bonds to longer-term ones, does not expect rates to rise significantly from current levels but reckons that bond market volatility will remain given the high level of geopolitical risks.
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The Fed left rates unchanged for the second straight meeting and Fed Chair Jerome Powell nodded to positive developments in bringing down inflation at the end of the central bank’s policy review on Wednesday - though he gave little indication that policymakers were getting closer to cutting rates. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, said that while the Fed is not saying it is done raising rates, “they will need to see data surprise meaningfully to the upside to get them to raise rates in December.” Wilensky, who has been moving from bets on shorter-term bonds to longer-term ones, does not expect rates to rise significantly from current levels but reckons that bond market volatility will remain given the high level of geopolitical risks. Noah Wise, a senior portfolio manager at Allspring Global Investments, warned against getting too bullish on bonds, as there was a “heightened risk” that 10-year Treasury yields could once again top 5% if the Fed feels it has to push back against a dovish narrative.
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The rise in Treasury yields has reached far beyond the bond market. The S&P 500 is down nearly 8% from its July high, as rising bond yields offer investment competition to equities while threatening to raise the cost of capital for companies. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, said that while the Fed is not saying it is done raising rates, “they will need to see data surprise meaningfully to the upside to get them to raise rates in December.” Wilensky, who has been moving from bets on shorter-term bonds to longer-term ones, does not expect rates to rise significantly from current levels but reckons that bond market volatility will remain given the high level of geopolitical risks.
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12733.0
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2023-11-02 00:00:00 UTC
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Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-9
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Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Charles Schwab. It has amassed assets over $11.48 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, FNDX seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.25% for FNDX, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 17.90% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B).
FNDX's top 10 holdings account for about 20.59% of its total assets under management.
Performance and Risk
The ETF has added roughly 4.34% so far this year and is up about 5.01% in the last one year (as of 11/02/2023). In the past 52-week period, it has traded between $52 and $59.78.
The fund has a beta of 1.01 and standard deviation of 16.68% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 730 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $46.85 billion in assets, Vanguard Value ETF has $96.04 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) is a smart beta exchange traded fund launched on 08/13/2013.
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12734.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Shares and bonds rally as Fed feeds global rate peak hopes
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-and-bonds-rally-as-fed-feeds-global-rate-peak-hopes
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nan
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nan
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By Marc Jones
LONDON, Nov 2 (Reuters) - European shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had traders doubling down on bets that U.S. interest rates - the main driver of world borrowing costs - have finally peaked.
With expectations that the Bank of England might send a similar signal in a few hours 0#BOEWATCH, Europe's STOXX 600 .STOXX and London's FTSE .FTSE were both up over 1% early on, with the former on course for its first four-day run of gains since July.
Shorter-term bond market yields were at two-month lows GVD/EUR and the dollar .DXY was back-pedalling in the foreign exchange markets, much to the relief of the Japanese yen JPY=EBS and the dozens of emerging market currencies that have been suffering this year. /FRX
Fed Chair Jerome Powell's comments that its aggressive 20-month run of rate increases was likely to slow the economy after what he had described as the "outsized" jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.
"A lot of things went right for the rates market yesterday," Jefferies chief European economist Mohit Kumar said, adding that today's focus would be on the Bank of England and U.S. unemployment claims and factory orders data.
Sterling GBP=D3 crept 0.2% higher to $1.2173 but slipped to 87.14 per euro EURGBP= as dealers waited for the BOE's rate decision due at 1200, which will also come with new economic forecasts.
Markets price an almost 90% chance the bank will keep UK rates at their current 15-year high of 5.25%, but have not fully priced a rate cut until September 2024 -- well after cuts are expected to have begun in other parts of Europe.
"Pricing is reflecting the view that BoE rates will have to remain on 'Table Mountain' for some months given the UK's inflation risks," said RaboBank FX strategist Jane Foley.
Jefferies' Kumar added: "we remain of the view that November could see a positive performance from rates, credit and equities".
Overnight, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had surged 1.6%，the biggest daily jump since late July. Tokyo's Nikkei .N225 had also gained 1.1% while S&P 500 futures ESc1 and Nasdaq futures NQc1 were pointing to another 0.5% rise on Wall Street later.
Investors are now awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. The Cupertino California-based company is expected to report a 1% decrease in quarterly revenue.
The next big focal point after that will be U.S. non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from a 336,000 increase the previous month.
It will come after mixed data showed strong job openings and slower than expected growth in private payrolls.
Fed funds futures FF: markets pared back the chance of a December rate hike to about 20% and a January move to 25%. Markets have priced in a 70% chance that the tightening is now over and U.S. rate cuts could begin as soon as June.
The upbeat mood was also lifting commodity markets. Brent crude futures LCOc1 climbed 1.6% to $85.95 a barrel while U.S. West Texas Intermediate CLc1 futures were at $81.87 a barrel, up 1.8%.
The price of gold XAU=, which has surged almost 10% since Hamas' attack on Israel last month ignited Middle East tensions, was 0.2% higher at $1,985.99 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
The race to raise rates https://tmsnrt.rs/45KHoZJ
(Additional Reporting by Stella Qiu in Sydney and Samuel Indyk in London; Editing by Emelia Sithole-Matarise)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are now awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Marc Jones LONDON, Nov 2 (Reuters) - European shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had traders doubling down on bets that U.S. interest rates - the main driver of world borrowing costs - have finally peaked. /FRX Fed Chair Jerome Powell's comments that its aggressive 20-month run of rate increases was likely to slow the economy after what he had described as the "outsized" jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.
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Investors are now awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Marc Jones LONDON, Nov 2 (Reuters) - European shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had traders doubling down on bets that U.S. interest rates - the main driver of world borrowing costs - have finally peaked. "A lot of things went right for the rates market yesterday," Jefferies chief European economist Mohit Kumar said, adding that today's focus would be on the Bank of England and U.S. unemployment claims and factory orders data.
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Investors are now awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. "A lot of things went right for the rates market yesterday," Jefferies chief European economist Mohit Kumar said, adding that today's focus would be on the Bank of England and U.S. unemployment claims and factory orders data. Markets price an almost 90% chance the bank will keep UK rates at their current 15-year high of 5.25%, but have not fully priced a rate cut until September 2024 -- well after cuts are expected to have begun in other parts of Europe.
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Investors are now awaiting results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. Markets price an almost 90% chance the bank will keep UK rates at their current 15-year high of 5.25%, but have not fully priced a rate cut until September 2024 -- well after cuts are expected to have begun in other parts of Europe. Jefferies' Kumar added: "we remain of the view that November could see a positive performance from rates, credit and equities".
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12735.0
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2023-11-02 00:00:00 UTC
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Apple Q4 23 Earnings Conference Call At 5:00 PM ET
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AAPL
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https://www.nasdaq.com/articles/apple-q4-23-earnings-conference-call-at-5%3A00-pm-et
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on November 2, 2023, to discuss Q4 23 earnings results.
To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on November 2, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on November 2, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on November 2, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on November 2, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12736.0
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2023-11-02 00:00:00 UTC
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MORNING BID AMERICAS-Markets fly on Fed and funding, Apple awaits
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AAPL
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https://www.nasdaq.com/articles/morning-bid-americas-markets-fly-on-fed-and-funding-apple-awaits
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nan
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nan
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A look at the day ahead in U.S. and global markets from Mike Dolan
World markets lapped up a combination of steady U.S. interest rates, rejigged Treasury borrowing and lower oil prices - with an eye on Thursday's earnings update from America's most valuable company Apple.
The Federal Reserve left rates on hold again as expected - with an equivocal stance on further tightening as financial conditions generally remain tight. The Treasury, meantime, followed up on Monday's forecast of a lower borrowing tally for the final quarter with plans to ease back somewhat on share of long-term debt it's selling.
Along with signs of fresh weakness in U.S. manufacturing last month and further retreat in crude oil prices to their lowest since August, 10-year Treasury yields dialled back yet again as low as 4.70% on Thursday - the lowest in more than two weeks and now 32 basis points below recent highs.
With Apple AAPL.O up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open - setting Wall Street on course for a fourth straight day of gains for the first time in almost a month.
More than half way through the earnings calendar, third quarter annual profit estimates for the S&P500 are tracking a gain 5% - more than twice pre-season forecasts - and 80% of firms have beaten forecasts and tallying with the 4.9% economic growth reading for the same three-month period.
That then makes October economic soundings all the more important for both investors and the Fed to assess.
Emerging softness in the ISM's October manufacturing survey may be a marker in that regard - although the employment picture will dominate the view of consumption going forward.
And there was a mixed picture on the extent of loosening in the labor market on Wednesday. Job openings fell by less than expected in September, but ADP's private sector payroll tally for last month came in below forecasts again.
With weekly jobless data watched like a hawk again later, Friday's national employment report now hoves into view.
Fed futures now show less than a 30% chance of another Fed hike in the cycle, with a first cut coming by June and some 70bps of easing pencilled in by the end of next year.
For now at least, S&P500 futures are up another 0.5% after the index clocked another gain of 1% on Wednesday. The ViX volatility gauge .VIX fell to as low as 16.4 today.
With mainland Chinese shares the notable outlier yet again, other global bourses climbed rose n Wall Street's slipstream.
Japan's Nikkei .N225 added another 1% even as the yen regained some more lost ground after the early-week swoon on only a modest rowback from the Bank of Japan on its yield capping policy.
BOJ Governor Kazuo Ueda will continue to dismantle the central bank's ultra-easy monetary policy settings only gradually and look to exit the decade-long accommodative regime sometime next year, Reuters reported on Thursday, based on interviews with six sources familiar with the BOJ's thinking.
The Bank of England is the next major central bank decision due later on Thursday. Like the Fed, it is expected to hold rates unchanged with a likely 6-3 vote on its policymaking council for steady rates. Most market players now think BoE rates have peaked for this cycle.
In China, financial regulators are investigating a month-end liquidity crunch that saw short-term money rates surge to as much as 50% earlier this week, asking institutions to explain why they borrowed at extremely high rates, three sources said.
In other U.S. corporate news, automaker TeslaTSLA.O delivered 72,115 China-made electric vehicles last month, down 2.6% from a month earlier, the China Passenger Car Association (CPCA) said.
Key developments that should provide more direction to U.S. markets later on Thursday:
* Bank of England policy decision and monetary policy report
* U.S. weekly jobless, Sept durable goods orders, Q3 unit labor costs
* St Louis Interim Federal Reserve President Kathleen O'Neill speaks; European Central Bank chief economist Philip Lane, and ECB board members Isabel Schnabel and Edouard Fernandez-Bollo all speak
* U.S. corporate earnings: Apple, Expedia, Booking, Starbucks, Cigna, Molson Coors, S&PGlobal, Eli Lilly, ConocoPhillips, Pioneer Natural Resources, Duke Energy, Alliant Energy, Moderna, Monster Beverage, EOG, SBA, ICE, Stryker, Motorola Solutions, Live Nation, Consolidated Edison, Federal Realty, Paramount Global, Rockwell, Microchip, Fortinet, Skyworks, Regency, Insulet, Ventas, AES, NRG, Borgwarner, PPL, Howmet, Huntington Ingersolls, Ball, Cencora, Cummins, Fox, Baxter, Teleflex etc
* U.S. Treasury auctions 4-week bills
Apple's iPhone sales set to return to growth https://tmsnrt.rs/46aZpkl
US federal funds target rate https://tmsnrt.rs/45UaVQL
US-Japanese bond yield spread at 22-year high https://tmsnrt.rs/49vIlbF
US JOLTS job openings higher than forecast in Sept https://tmsnrt.rs/47fHDNK
US ADP private sector payrolls misses in Oct https://tmsnrt.rs/3SFNjwv
(By Mike Dolan, editing by Alexander Smith; mike.dolan@thomsonreuters.com. Twitter: @reutersMikeD)
((mike.dolan@thomsonreuters.com; +44 207 542 8488; Reuters Messaging: mike.dolan.reuters.com@thomsonreuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With Apple AAPL.O up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open - setting Wall Street on course for a fourth straight day of gains for the first time in almost a month. The Treasury, meantime, followed up on Monday's forecast of a lower borrowing tally for the final quarter with plans to ease back somewhat on share of long-term debt it's selling. Key developments that should provide more direction to U.S. markets later on Thursday: * Bank of England policy decision and monetary policy report * U.S. weekly jobless, Sept durable goods orders, Q3 unit labor costs * St Louis Interim Federal Reserve President Kathleen O'Neill speaks; European Central Bank chief economist Philip Lane, and ECB board members Isabel Schnabel and Edouard Fernandez-Bollo all speak * U.S. corporate earnings: Apple, Expedia, Booking, Starbucks, Cigna, Molson Coors, S&PGlobal, Eli Lilly, ConocoPhillips, Pioneer Natural Resources, Duke Energy, Alliant Energy, Moderna, Monster Beverage, EOG, SBA, ICE, Stryker, Motorola Solutions, Live Nation, Consolidated Edison, Federal Realty, Paramount Global, Rockwell, Microchip, Fortinet, Skyworks, Regency, Insulet, Ventas, AES, NRG, Borgwarner, PPL, Howmet, Huntington Ingersolls, Ball, Cencora, Cummins, Fox, Baxter, Teleflex etc * U.S. Treasury auctions 4-week bills Apple's iPhone sales set to return to growth https://tmsnrt.rs/46aZpkl US federal funds target rate https://tmsnrt.rs/45UaVQL US-Japanese bond yield spread at 22-year high https://tmsnrt.rs/49vIlbF US JOLTS job openings higher than forecast in Sept https://tmsnrt.rs/47fHDNK US ADP private sector payrolls misses in Oct https://tmsnrt.rs/3SFNjwv (By Mike Dolan, editing by Alexander Smith; mike.dolan@thomsonreuters.com.
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With Apple AAPL.O up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open - setting Wall Street on course for a fourth straight day of gains for the first time in almost a month. A look at the day ahead in U.S. and global markets from Mike Dolan World markets lapped up a combination of steady U.S. interest rates, rejigged Treasury borrowing and lower oil prices - with an eye on Thursday's earnings update from America's most valuable company Apple. Job openings fell by less than expected in September, but ADP's private sector payroll tally for last month came in below forecasts again.
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With Apple AAPL.O up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open - setting Wall Street on course for a fourth straight day of gains for the first time in almost a month. A look at the day ahead in U.S. and global markets from Mike Dolan World markets lapped up a combination of steady U.S. interest rates, rejigged Treasury borrowing and lower oil prices - with an eye on Thursday's earnings update from America's most valuable company Apple. Along with signs of fresh weakness in U.S. manufacturing last month and further retreat in crude oil prices to their lowest since August, 10-year Treasury yields dialled back yet again as low as 4.70% on Thursday - the lowest in more than two weeks and now 32 basis points below recent highs.
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With Apple AAPL.O up on the earnings slate after the bell later, S&P500 futures are rising further ahead of the open - setting Wall Street on course for a fourth straight day of gains for the first time in almost a month. A look at the day ahead in U.S. and global markets from Mike Dolan World markets lapped up a combination of steady U.S. interest rates, rejigged Treasury borrowing and lower oil prices - with an eye on Thursday's earnings update from America's most valuable company Apple. Job openings fell by less than expected in September, but ADP's private sector payroll tally for last month came in below forecasts again.
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12737.0
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2023-11-02 00:00:00 UTC
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You Might Be Shocked to Learn Where the S&P 500 Would Be in 2023 Without the "Magnificent Seven" Stocks
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AAPL
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https://www.nasdaq.com/articles/you-might-be-shocked-to-learn-where-the-sp-500-would-be-in-2023-without-the-magnificent
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nan
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nan
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The benchmark S&P 500 index has delivered a return of about 8.5% so far in 2023. That's well below its 13.7% average annual return during the past decade.
Still, investors might be surprised to know the S&P 500 has been driven higher this year by a specific group of stocks dubbed the "Magnificent Seven." The term was coined by Bank of America analyst Michael Hartnett to describe seven of America's top technology giants, which currently make up almost 28% of the index's value.
The other 493 companies in the S&P 500 -- which make up the remaining 72% of its value -- are actually weighing it down in 2023. Here's how different the stock market's performance would be this year without the Magnificent Seven.
Image source: Getty Images.
Unpacking the Magnificent Seven stocks
This isn't the first time Wall Street has grouped a set of powerhouse stocks together. In 2017, CNBC personality Jim Cramer used the FAANG acronym to describe five of the top performing stocks at the time:
Facebook, which now trades as Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix
Google, which now trades under its parent company, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Identifying the top performing stocks in the market and lumping them together can give investors a North Star to guide them on their investing journey. The Magnificent Seven might be the best example of that so far because, as I'll explain later, its heavy weighting in the closely watched S&P 500 index makes the group incredibly hard to ignore.
Below is a list of the Magnificent Seven stocks and their performance so far in 2023. Remember, the S&P 500 is up just 8.5% over the same period:
STOCK
2023 RETURN
Apple
31%
Alphabet
41%
Microsoft (NASDAQ: MSFT)
41%
Amazon
58%
Tesla (NASDAQ: TSLA)
63%
Meta Platforms
150%
Nvidia (NASDAQ: NVDA)
179%
Data source: Yahoo Finance. Returns as of Oct. 31
The Magnificent Seven is outperforming for several reasons
Artificial intelligence (AI) has been the dominant theme across the stock market this year, and each of the companies in the Magnificent Seven is developing the technology.
Semiconductor giant Nvidia has an estimated 90% share in the market for data center chips capable of handling AI workloads. Microsoft, Amazon, and Alphabet are racing to get their hands on that hardware to upgrade their data center infrastructure. Their cloud computing customers want that processing power to develop their own AI applications to boost productivity.
Apple has designed its own chips capable of handling workloads on-device in its new iPhone 15 Pro smartphone lineup. Plus, the company is reportedly developing its own large language model to power a new chatbot, and to give its Siri voice assistant new capabilities next year.
Tesla and Meta Platforms are using AI to enhance their existing products. Tesla has developed some of the most advanced autonomous self-driving software in the world using the technology, and Meta is integrating it into its Facebook and Instagram social media platforms in more ways than one.
Investors are eyeing the long-term potential of AI, which -- depending on the Wall Street estimate you rely upon -- could add anywhere from $7 trillion to $200 trillion to the global economy by 2030. Therefore, it makes sense they're piling into the Magnificent Seven stocks.
Here's where the S&P 500 would be in 2023 without the Magnificent Seven
The companies in the S&P 500 index are weighted by their market capitalization (valuation). Larger companies have a higher weighting and, therefore, have a greater influence on the index's price.
The Magnificent Seven companies are worth a combined $10.4 trillion, making up 27.7% of the S&P 500's total $37.7 trillion in total market cap. So the group can really sway the index -- and I'll show you by just how much.
To remove the influence of the Magnificent Seven, investors can look at the S&P 500 Equal Weight Index. It features exactly the same companies as the S&P 500, except they are each given an equal representation in this index no matter their market capitalization. Here's the difference in performance between the two indexes this year:
INDEX
2023 RETURN
S&P 500
8.5%
S&P 500 Equal Weight Index
(4%)
Data source: S&P Global. Returns as of Oct. 31
That's right. While the S&P 500 index has gained 8.5% this year, the Equal Weight Index is down 4%. That's a 12.5% swing, driven largely by the substantial outperformance of the Magnificent Seven stocks I highlighted earlier.
But that influence cuts both ways. If those tech giants suffer a substantial decline in value, it could drag down the entire S&P 500. In any case, they each have dominant, established businesses, and their focus on new technologies like AI should buoy their growth prospects -- and the S&P 500 -- for many years to come.
10 stocks we like better than Apple
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*Stock Advisor returns as of October 30, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In 2017, CNBC personality Jim Cramer used the FAANG acronym to describe five of the top performing stocks at the time: Facebook, which now trades as Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix Google, which now trades under its parent company, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Identifying the top performing stocks in the market and lumping them together can give investors a North Star to guide them on their investing journey. Plus, the company is reportedly developing its own large language model to power a new chatbot, and to give its Siri voice assistant new capabilities next year. Tesla has developed some of the most advanced autonomous self-driving software in the world using the technology, and Meta is integrating it into its Facebook and Instagram social media platforms in more ways than one.
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In 2017, CNBC personality Jim Cramer used the FAANG acronym to describe five of the top performing stocks at the time: Facebook, which now trades as Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix Google, which now trades under its parent company, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Identifying the top performing stocks in the market and lumping them together can give investors a North Star to guide them on their investing journey. Apple 31% Alphabet 41% Microsoft (NASDAQ: MSFT) 41% Amazon 58% Tesla (NASDAQ: TSLA) 63% Meta Platforms 150% Nvidia (NASDAQ: NVDA) 179% Data source: Yahoo Finance. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla.
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In 2017, CNBC personality Jim Cramer used the FAANG acronym to describe five of the top performing stocks at the time: Facebook, which now trades as Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix Google, which now trades under its parent company, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Identifying the top performing stocks in the market and lumping them together can give investors a North Star to guide them on their investing journey. Returns as of Oct. 31 The Magnificent Seven is outperforming for several reasons Artificial intelligence (AI) has been the dominant theme across the stock market this year, and each of the companies in the Magnificent Seven is developing the technology. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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In 2017, CNBC personality Jim Cramer used the FAANG acronym to describe five of the top performing stocks at the time: Facebook, which now trades as Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix Google, which now trades under its parent company, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Identifying the top performing stocks in the market and lumping them together can give investors a North Star to guide them on their investing journey. Here's how different the stock market's performance would be this year without the Magnificent Seven. 8.5% S&P 500 Equal Weight Index (4%) Data source: S&P Global.
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12738.0
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2023-11-02 00:00:00 UTC
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Apple's Loaded Product Lineup Headed Into the Holidays Is Good News for Investors
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AAPL
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https://www.nasdaq.com/articles/apples-loaded-product-lineup-headed-into-the-holidays-is-good-news-for-investors
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nan
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nan
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Apple (NASDAQ: AAPL) isn't messing around this holiday season. The tech company added to an already exhaustive lineup of new products this week, announcing new chips and Macs, including 14-inch and 16-inch MacBook Pros in a new "space black" finish. The new devices build on a range of new product introductions headed into the holidays, including updated smartphones and smartwatches. Apple even brought to market a new Apple Pencil.
All of this positions Apple strategically to capture wallet share from increasingly strapped consumers who are pressured by inflation and high interest rates. More importantly, Apple's latest round of new products increases the odds of the iPhone maker returning to growth during a quarter in which it typically rakes in the lion's share of its annual net income.
Apple's new space black laptop is key
On the surface, Apple's product event on Oct. 30 may seem unimportant. After all, it was a Mac-focused event, and Mac only accounted for about 10.2% of Apple's fiscal 2022 revenue. But investors shouldn't count out this product event as a key catalyst for the holidays yet. There are several reasons new Mac products could be important catalysts for Apple when combined with the already-robust lineup of new products Apple has going into the holidays.
First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. For instance, the last major refreshes to its 14-inch and 16-inch MacBook Pro devices were in October of 2021. With the help of these new products, Apple's Mac business grew 25% year over year during the calendar 2021 holiday quarter. Indeed, Apple management specifically credited the segment's growth to the "newly redesigned MacBook Pro" during theearnings callfor the period. While 25% growth from Mac during the holiday quarter is unlikely, given the current macroeconomic backdrop, Apple's well-timed refresh of the MacBook Pro will almost undoubtedly help the important period's results in some fashion, particularly since Apple is going up against a period last year when the Mac lineup was aging.
Additionally, it's worth noting that Apple's MacBook Pro lineup commands some serious pricing power. The 16-inch MacBook Pro, for instance, starts at $2,499. Strong orders and shipments of the new product could really move the needle for not only Apple's Mac segment but its entire business.
Finally, something tells me Apple's new space black color will be popular with pro users. Call it speculation, but that's my hunch.
A healthy supply chain
There's also something to be said about an improving global supply chain. As the world recovers from COVID-19-related factory shutdowns, Apple is likely better prepared to build and ship more products going into the holidays this year than it was in the year-ago period. Indeed, this is likely one key reason why Apple has introduced so many new products leading up to the holidays. Chances are, Apple's new MacBook Pro will both solicit strong demand but also be followed up with good production volume -- at least compared to recent years, which often saw manufacturing interrupted by sudden and unplanned factory shutdowns due to China's zero-COVID policies at the time and some disruptions in other markets as well.
An easy comparison
Finally, it's worth emphasizing that Apple is going up against an easy comparison during the holiday quarter (the first fiscal quarter of 2024) particularly when it comes to Mac. Apple's total revenue fell 5% year over year in its first quarter of fiscal 2023 (the fiscal quarter coinciding with the fourth calendar quarter of 2022), with Mac revenue declining about 29% year over year.
Apple's new space black MacBook Pro, along with its refreshed iMacs, could be the determining factor for the company returning to year-over-year revenue growth in the holiday quarter.
Fortunately, however, Apple isn't entirely dependent on the MacBook Pro for a good holiday quarter. It has overhauled other major products going into the final calendar quarter as well. This loaded product pipeline will help Apple grab as much share from consumers' holiday-spending budgets as possible.
Investors may get some insight into what Apple expects from its holiday quarter when the company reports earnings for its fiscal Q4 after market close on Thursday, Nov. 2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) isn't messing around this holiday season. More importantly, Apple's latest round of new products increases the odds of the iPhone maker returning to growth during a quarter in which it typically rakes in the lion's share of its annual net income. Chances are, Apple's new MacBook Pro will both solicit strong demand but also be followed up with good production volume -- at least compared to recent years, which often saw manufacturing interrupted by sudden and unplanned factory shutdowns due to China's zero-COVID policies at the time and some disruptions in other markets as well.
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Apple (NASDAQ: AAPL) isn't messing around this holiday season. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. With the help of these new products, Apple's Mac business grew 25% year over year during the calendar 2021 holiday quarter.
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Apple (NASDAQ: AAPL) isn't messing around this holiday season. There are several reasons new Mac products could be important catalysts for Apple when combined with the already-robust lineup of new products Apple has going into the holidays. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year.
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Apple (NASDAQ: AAPL) isn't messing around this holiday season. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. Apple's new space black MacBook Pro, along with its refreshed iMacs, could be the determining factor for the company returning to year-over-year revenue growth in the holiday quarter.
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12739.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Asia shares, bonds rally as Powell fuels optimism of end to rate hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-bonds-rally-as-powell-fuels-optimism-of-end-to-rate-hikes
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nan
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nan
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By Stella Qiu
SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had markets double down on bets that U.S. interest rates have peaked and cuts are on the way.
Investors are now awaiting the results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. The Cupertino California-based company is expected to report a 1% decrease in quarterly revenue later in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.6%，the biggest daily jump since late July. Tokyo's Nikkei .N225 gained 1.1%.
China's blue chips .CSI300 slipped 0.2%, while Hong Kong's Hang Seng index .HSI jumped 0.9%.
Fed funds futures FF: rallied as markets pared back the risk of a December hike to about 20% and a January move to 25%. Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June. 0#RBAWATCH
Wall Street and Treasuries jumped. The S&P 500 .SPX gained 1% and the Nasdaq Composite .IXIC surged 1.6%.
The benchmark 10-year Treasury yield US10YT=RR eased another 1 basis point to 4.7196%, the lowest in more than two weeks. Overnight, it tumbled 14 basis points, the biggest daily drop since March, also thanks to a Treasury announcement that the government will slow increases in the size of its longer-dated auctions. US/
"Fed Chair Powell certainly reserved the right to hike rates again, but our takeaway is that the Fed is very likely done with rate hikes," David Chao,global marketstrategist, Asia Pacific (ex-Japan) at Invesco, said in a note to clients.
"This certainly gives Asian central banks such as Indonesia and Philippines more wiggle room to hold rates instead of raise them," said Chao, adding he expects international assets, especially emerging markets, would outperform U.S. assets.
The next big focal point for the market is non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from 336,000 increase the previous month. It will come after mixed data showed strong job openings and slower than expected growth in private payrolls.
For currencies, the retreat in Treasury yields pulled down the U.S. dollar modestly, while the improvement in risk sentiment gave a lift to the battered Aussie and kiwi dollars, which rose 0.5% and 0.7%, respectively, to multi-week tops. FRX/
"Although the FOMC may not be talking about it today, within a few months, the question will no longer be 'Will they hike again?' but 'When will they cut?'," said Seema Shah, chief global strategist at Principal Asset Management.
The yen JPY=EBS continued to regain ground - up 0.3% to 150.42 per dollar on Thursday. It had hit a one-year low after a Bank of Japan decision to ease its control over the 1% cap on 10-year yields, with the tweak seen insufficient to close the wide interest rate gaps between Japan and other countries.
Oil prices traded higher. Brent crude futures LCOc1 climbed 1.0% to $85.50 a barrel while U.S. West Texas Intermediate CLc1 futures were at $81.32 a barrel, up 1.1%.
The price of gold XAU= was 0.2% higher at $1,985.99 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Edwina Gibbs and Jacqueline Wong)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are now awaiting the results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Stella Qiu SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had markets double down on bets that U.S. interest rates have peaked and cuts are on the way. Overnight, it tumbled 14 basis points, the biggest daily drop since March, also thanks to a Treasury announcement that the government will slow increases in the size of its longer-dated auctions.
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Investors are now awaiting the results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.6%，the biggest daily jump since late July. The benchmark 10-year Treasury yield US10YT=RR eased another 1 basis point to 4.7196%, the lowest in more than two weeks.
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Investors are now awaiting the results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Stella Qiu SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had markets double down on bets that U.S. interest rates have peaked and cuts are on the way. Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June.
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Investors are now awaiting the results from Apple AAPL.O, a bellwether for consumer demand and the tech sector. By Stella Qiu SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had markets double down on bets that U.S. interest rates have peaked and cuts are on the way. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.6%，the biggest daily jump since late July.
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12740.0
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2023-11-02 00:00:00 UTC
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PayPal Stock (NASDAQ:PYPL): Stand by a Fundamentally Sound Payments Giant
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AAPL
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https://www.nasdaq.com/articles/paypal-stock-nasdaq%3Apypl%3A-stand-by-a-fundamentally-sound-payments-giant
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nan
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nan
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The market has shunned PayPal (NASDAQ:PYPL) stock for much of 2023. That's almost inexplicable, as PayPal is fundamentally sound, and there are fresh results to prove this. Without any hesitation, I am bullish on PYPL stock and envision tremendous comeback potential.
PayPal provides a variety of point-of-sale payment solutions. Not only does PayPal enable convenient transactions across a number of currencies, but the company also just received the U.K.’s approval to offer cryptocurrency services.
Yet, it seems that investors have abandoned PayPal stock because they're obsessed with the "Magnificent Seven" technology stocks. Today could mark a turning point, however, since the market can only ignore PayPal's Street-beating results for so long.
New CEO, but the Same Solid Business
PayPal is undergoing a crucial transitional period. That's because the company recently hired a new chief executive, Alex Chriss.
It's too early to assess the new CEO's abilities. Still, Chriss's confidence is encouraging. He recently stated, "My first 30 days leading PayPal have confirmed my belief in the company's strong assets and market position."
Furthermore, PayPal appointed Jamie Miller as the company's new chief financial officer (CFO), effective November 6. Miller has prior experience at General Electric (NYSE:GE) and Cargill, among other companies.
While I can't make any judgments on these executives yet, I can at least attest to PayPal's firm fundamentals. The company's third-quarter Fiscal Year 2023 earnings results indicate that, nearly all year long, the market has misjudged PayPal.
A crucial metric for PayPal is the company's total payment volume (TPV). In Q3 2023, PayPal's TPV grew 15% year-over-year (or 13% on a currency-adjusted basis) to $388 billion. This, according to PayPal, was "driven by Braintree, PayPal branded checkout and Venmo."
PayPal's TPV growth indicates that the company hasn't been devastated by competition from Apple (NASDAQ:AAPL). Sure, Apple offers payment solutions just like PayPal does, but evidently, there's enough room in the market for both companies to succeed.
PayPal's Results Put Stock Traders in a Happy Mood
While the market hasn't generally favored PayPal this year, at least today's traders are bidding up the PYPL stock price. Of course, they weren't only looking at PayPal's TPV.
Stock traders also examined PayPal's top- and bottom-line results for 2023's third quarter. As it turned out, there really wasn't anything bad that investors could object to.
First of all, PayPal's revenue grew by 8% year-over-year to $7.42 billion, and this outcome beat the consensus estimate by $40 million. Moreover, PayPal reported earnings of $1.30 per share, exceeding the consensus forecast of $1.23 per share.
What about PayPal's guidance? No worries there, as the company guided for non-GAAP 2023 earnings of approximately $4.98 per share. That's above analysts’ expectation of $4.92 per share, and it would also represent a significant improvement over Fiscal Year 2022's earnings of $4.13 per share.
Now, it's starting to become clear why investors are so pleased with PayPal today. Mizuho analyst Dan Dolev also seemed to be happy with PayPal, as he declared, “Overall results show that core PayPal fundamentals remain solid.”
I fully concur with Dolev's assessment, and his Buy rating for PayPal is quite reasonable. However, Dolev's $92 price target for PYPL stock is ambitious, and I won't assume that the stock will reach that level from its current price. Nonetheless, I share Dolev's enthusiasm for PayPal's future.
Is PayPal Stock a Buy, According to Analysts?
On TipRanks, PYPL comes in as a Moderate Buy based on 18 Buys and 11 Hold ratings assigned by analysts in the past three months. The average PayPal stock price target is $80.37, implying 46.7% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell PYPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Moshe Katri of Wedbush, with an average return of 21.68% per rating and a 60% success rate. Click on the image below to learn more.
Conclusion: Should You Consider PayPal Stock?
I believe PayPal deserves a higher re-rating on Wall Street, especially considering the company's better-than-anticipated quarterly results. Plus, PayPal's confident full-year guidance should convince reluctant investors to consider the stock. Today might actually mark a turnaround for PayPal, and I wouldn't worry too much about the company's executive-level changes. If you agree with Dolev's bullish stance, today seems like a great day to think about adding a few shares of PYPL stock to your portfolio.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PayPal's TPV growth indicates that the company hasn't been devastated by competition from Apple (NASDAQ:AAPL). Not only does PayPal enable convenient transactions across a number of currencies, but the company also just received the U.K.’s approval to offer cryptocurrency services. He recently stated, "My first 30 days leading PayPal have confirmed my belief in the company's strong assets and market position."
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PayPal's TPV growth indicates that the company hasn't been devastated by competition from Apple (NASDAQ:AAPL). The company's third-quarter Fiscal Year 2023 earnings results indicate that, nearly all year long, the market has misjudged PayPal. PayPal's Results Put Stock Traders in a Happy Mood While the market hasn't generally favored PayPal this year, at least today's traders are bidding up the PYPL stock price.
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PayPal's TPV growth indicates that the company hasn't been devastated by competition from Apple (NASDAQ:AAPL). This, according to PayPal, was "driven by Braintree, PayPal branded checkout and Venmo." PayPal's Results Put Stock Traders in a Happy Mood While the market hasn't generally favored PayPal this year, at least today's traders are bidding up the PYPL stock price.
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PayPal's TPV growth indicates that the company hasn't been devastated by competition from Apple (NASDAQ:AAPL). The market has shunned PayPal (NASDAQ:PYPL) stock for much of 2023. That's because the company recently hired a new chief executive, Alex Chriss.
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12741.0
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2023-11-02 00:00:00 UTC
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Apple Inc. Announces Increase In Q3 Income, Beats estimates
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-announces-increase-in-q3-income-beats-estimates
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nan
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(RTTNews) - Apple Inc. (AAPL) reported a profit for its third quarter that increased from the same period last year and beat the Street estimates.
The company's earnings totaled $22.96 billion, or $1.46 per share. This compares with $20.72 billion, or $1.29 per share, in last year's third quarter.
Analysts on average had expected the company to earn $1.31 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
Apple Inc. earnings at a glance (GAAP) :
-Earnings (Q3): $22.96 Bln. vs. $20.72 Bln. last year. -EPS (Q3): $1.46 vs. $1.29 last year. -Analyst Estimate: $1.31 -Revenue (Q3): $89.50 Bln vs. $90.15 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for its third quarter that increased from the same period last year and beat the Street estimates. Analysts on average had expected the company to earn $1.31 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for its third quarter that increased from the same period last year and beat the Street estimates. The company's earnings totaled $22.96 billion, or $1.46 per share. The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for its third quarter that increased from the same period last year and beat the Street estimates. This compares with $20.72 billion, or $1.29 per share, in last year's third quarter. The company's revenue for the quarter fell 0.7% to $89.50 billion from $90.15 billion last year.
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(RTTNews) - Apple Inc. (AAPL) reported a profit for its third quarter that increased from the same period last year and beat the Street estimates. The company's earnings totaled $22.96 billion, or $1.46 per share. This compares with $20.72 billion, or $1.29 per share, in last year's third quarter.
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12742.0
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2023-11-02 00:00:00 UTC
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PayPal Stock: Don’t Get Shaken Out of This Value-tastic Trade
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AAPL
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https://www.nasdaq.com/articles/paypal-stock%3A-dont-get-shaken-out-of-this-value-tastic-trade
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s interesting how news about one company can affect a range of other businesses. A perfect example happened not long ago, when PayPal (NASDAQ:PYPL) stock dropped even though there wasn’t any terrible news about the company. This is fine, though, as it just opened up a window of opportunity for value seekers to invest in PayPal.
Granted, there is some uncertainty surrounding PayPal’s CEO transition and competition in the payments space from Apple (NASDAQ:AAPL). Regarding the first point, PayPal’s investors need to be patient, as executive-level transitions take some time and the anxiety will pass. As for Apple, I’ll explain how PayPal and Apple are actually working together to make payments easier for customers.
PYPL Stock Slides Into the Buy Zone
It’s been frustrating, no doubt, for investors to watch PYPL stock to decline since February. However, there’s no need to lose faith. If you liked the stock at $87 in February, then you should like it even more at its current price.
After all, the data suggests that PayPal’s valuation is quite reasonable. The company’s trailing-12-month price-to-earnings (P/E) ratio of 14.4x is substantially lower than PayPal’s five-year average P/E ratio of 53.58x.
A specific event, which wasn’t precipitated by PayPal, prompted some panic and caused the PYPL stock price to fall recently — but I’ll get to that in a moment. First, I wanted to point out that even if PayPal and Apple are competitors in some ways, they’re also working together.
Here’s the rundown. Reportedly, PayPal’s customers can now add “eligible PayPal and Venmo credit or debit cards to Apple Wallet“. There’s a convenience factor here as PayPal and Venmo users can make payments via an iPhone or Apple Watch.
Furthermore, PayPal and Venmo users who added their cards to Apple Wallet can then use Apple Pay on an iPhone, an iPad or a Mac. It just goes to show that rivals in the payments space, like PayPal and Apple, can serve customers better and create a win-win situation by working together.
Fright in France Puts Pressure on PayPal
So, here’s the event that prompted fear on Wall Street about fintech companies like PayPal. After hearing this, you may be shocked at how irrational and panicky some financial traders can be.
On Oct. 25, Visa (NYSE:V) reported quarterly results indicating robust international travel and cross-border payments volume. Yet, the U.S. stock market decided to ignore this green flag.
Instead, they focused on Worldline, a French payments company that’s not even listed on a major U.S. stock exchange. Worldline released its financial results the same day that Visa did, and slashed its full-year financial guidance.
Worldline stock dropped 59% in Paris, and the company warned investors about the challenging macroeconomic conditions in Europe and especially in Germany. Among the ripple effects was a selloff in U.S. payment stocks, including PYPL stock.
Daniel O’Regan, a managing director at Mizuho Secuirites, attributed the share-price decline to “a few things.” These included the “continued Worldline hangover, fear of more consumer slowing” and “competitive threats from Apple as it gets bigger in the buy-now-pay later space.”
As I’ve explained, I believe there’s room for PayPal and Apple to coexist and even collaborate to the benefit of the customers. Moreover, Visa’s results paint a different, less bleak picture of the international payments space.
Mizuho Securities analyst Dan Dolev wrote that the U.S. stock reaction to the Worldline warning was overblown. I tend to concur, and I feel it’s irrational for the market to punish PayPal, which doesn’t generate most of its revenue from Europe.
PYPL Stock: Buy the Dips and Hold On for Years
It’s a positive sign that Apple is willing to work with PayPal. Sure, they’ll continue to compete, but the two companies can also complement each other in some ways.
Meanwhile, the Worldline warning shouldn’t scare PayPal’s investors into panic-selling their shares. PayPal has survived international challenges before. Plus, the company’s CEO transition is a temporary concern. In the long run, the new leadership could bring new growth opportunities to PayPal.
So, don’t let the headlines in the financial press frighten you. PayPal is here to stay, and now is a great time to buy PYPL stock. It’s trading substantially below its February peak price, so feel free to buy some PayPal shares while they’re still cheap.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post PayPal Stock: Don’t Get Shaken Out of This Value-tastic Trade appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Granted, there is some uncertainty surrounding PayPal’s CEO transition and competition in the payments space from Apple (NASDAQ:AAPL). A specific event, which wasn’t precipitated by PayPal, prompted some panic and caused the PYPL stock price to fall recently — but I’ll get to that in a moment. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com.
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Granted, there is some uncertainty surrounding PayPal’s CEO transition and competition in the payments space from Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s interesting how news about one company can affect a range of other businesses. Among the ripple effects was a selloff in U.S. payment stocks, including PYPL stock.
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Granted, there is some uncertainty surrounding PayPal’s CEO transition and competition in the payments space from Apple (NASDAQ:AAPL). A perfect example happened not long ago, when PayPal (NASDAQ:PYPL) stock dropped even though there wasn’t any terrible news about the company. Reportedly, PayPal’s customers can now add “eligible PayPal and Venmo credit or debit cards to Apple Wallet“.
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Granted, there is some uncertainty surrounding PayPal’s CEO transition and competition in the payments space from Apple (NASDAQ:AAPL). As for Apple, I’ll explain how PayPal and Apple are actually working together to make payments easier for customers. PYPL Stock Slides Into the Buy Zone It’s been frustrating, no doubt, for investors to watch PYPL stock to decline since February.
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12743.0
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2023-11-02 00:00:00 UTC
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Wall Street Predicts These 3 Warren Buffett Stocks Will Soar 88% to 242%
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AAPL
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https://www.nasdaq.com/articles/wall-street-predicts-these-3-warren-buffett-stocks-will-soar-88-to-242
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is undeniably the greatest living investor. Since becoming chairman of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) in 1965, he generated returns of 3.7 million percent for investors. That’s a near 20% annual return or twice that of the S&P 500 index.
While partially a result of his buy-and-hold philosophy, the best Warren Buffett stocks are those with a simple, consumer-facing business that he bought at a good price. Allowing management do its thing and letting his winners run, the investing genius amassed a fortune for himself and his followers.
That doesn’t mean sometimes his stocks don’t do poorly. But Buffett’s overarching themes for investing remain in place, and sometimes his stocks go on sale. It means patient investors can sometimes buy the same stocks as Buffett at prices even better than what he paid. And right now Wall Street says some of them are poised for liftoff.
The following three stocks are forecast by analysts to grow between 88% and 242% over the next year. While you can ride the coattails on these Warren Buffett stocks to profit, do your due diligence anyway. Even the Oracle of Omaha says he’s made mistakes with stocks he bought.
United Parcel Services (UPS)
Source: sladkozaponi / Shutterstock
Package delivery giant United Parcel Service (NYSE:UPS) has been a part of Buffett’s portfolio since 2006. He paid on average around $75 per share. UPS never split its stock, but it has paid a dividend ever since going public. The carrier also increased the payout for 14 straight years. It currently yields 4.6% annually.
The stock was never a large holding in Berkshire Hathaway’s portfolio. At its peak, he owned about 1.4 million shares. Today, though, Buffett only holds 59,400 shares. At the current price of $140 per share, that values his stake at $8.4 million. Not too shabby for mere mortals, but for Buffett it’s a paltry sum. UPS is the smallest position in the Berkshire portfolio.
While you won’t be buying the stock at less than what Buffett did, it’s still worth considering. Wall Street has a high-end target price of $265 per share, which implies there is 88% upside in its stock over the next year.
UPS business is a solid, steady grower. Although it often lagged behind the benchmark index, it still generated a 9% total return over the past 15 years. The stock dropped recently on a lower revenue outlook ahead of the peak holiday season, but that puts UPS at one of its lowest valuations in over a decade. It goes for 14 times trailing and estimated earnings while the dividend yield is at its highest point, save for during the pandemic.
Don’t expect UPS stock to become a rocket, but for a “steady Eddie” stock for your portfolio, the package delivery expert will perform admirably over time.
Bank of America (BAC)
Source: Tero Vesalainen/Shutterstock
Going from least to most, Bank of America (NYSE:BAC) is the biggest stock holding in Buffett’s portfolio on a shares-owned basis. Berkshire Hathaway owns over 1 billion shares of the bank, putting its valuation at $27.2 billion. That’s second only to Apple (NASDAQ:AAPL).
The stock is down 20% year-to-date after investor confidence in the banking system was shaken following the collapse of several high-profile financial institutions earlier this year. However, Buffett never wavered on Bank of America. Even as he sold off other financial stocks, he held firm with this bank.
After excoriating the way most banks operate, Buffett told shareholders he remained cautious about owning bank stocks, but “we do remain with one bank…I like Bank of America and I like the management.”
Wall Street is just as confident in its future. Analysts see as much as 108% upside in the stock with a high-end price target of $55 per share. There’s good reason for the exuberance. Although high interest rates are weighing heavily on consumers, Bank of America exceeded earnings and revenue estimates due to increased interest income as a result of higher borrowing costs. More consumers are using their credit cards, lifting average loan and lease balances. It’s an indictment of current economic conditions, but a silver lining of sorts for investors.
Bank of America is trading at severely discounted valuations, including at just a fraction of its book value. The market still views its earnings growth suspiciously, but that will turn eventually. Buying now will reward you handsomely later on.
Paramount Global (PARA)
Source: viewimage / Shutterstock
Admittedly Paramount Global (NASDAQ:PARA) isn’t a stock Buffett has expressed the greatest confidence in. He told CNBC, “It isn’t fundamentally that good of a business.” He said the movie studio’s decision to slash its dividend was “not good news.” And he’s worried about Paramount’s future in the streaming business because higher prices are needed but that’s incompatible with retaining viewers.
Still, Buffett maintains a significant holding of Paramount stock, some 93.7 million shares worth over $1 billion. It’s equivalent to a 15% stake in the entertainment company. Analysts are especially exuberant about where its price can go. They have a $37 per share high-side price target on the stock, which means Wall Street expects to see shares nearly quadruple in value.
The stock trades at less than 10 times earnings estimates and a miniscule fraction of its sales. Still it’s a tough business that will likely see more fallout from providers. The ongoing Hollywood strike isn’t helping business and theaters are ailing. Although Buffett owns a good chunk of the company and Wall Street seems enamored with the stock, Paramount Global isn’t one that I’d be rushing to buy.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Wall Street Predicts These 3 Warren Buffett Stocks Will Soar 88% to 242% appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That’s second only to Apple (NASDAQ:AAPL). The stock dropped recently on a lower revenue outlook ahead of the peak holiday season, but that puts UPS at one of its lowest valuations in over a decade. The stock is down 20% year-to-date after investor confidence in the banking system was shaken following the collapse of several high-profile financial institutions earlier this year.
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That’s second only to Apple (NASDAQ:AAPL). United Parcel Services (UPS) Source: sladkozaponi / Shutterstock Package delivery giant United Parcel Service (NYSE:UPS) has been a part of Buffett’s portfolio since 2006. Although high interest rates are weighing heavily on consumers, Bank of America exceeded earnings and revenue estimates due to increased interest income as a result of higher borrowing costs.
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That’s second only to Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is undeniably the greatest living investor. Bank of America (BAC) Source: Tero Vesalainen/Shutterstock Going from least to most, Bank of America (NYSE:BAC) is the biggest stock holding in Buffett’s portfolio on a shares-owned basis.
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That’s second only to Apple (NASDAQ:AAPL). At the current price of $140 per share, that values his stake at $8.4 million. After excoriating the way most banks operate, Buffett told shareholders he remained cautious about owning bank stocks, but “we do remain with one bank…I like Bank of America and I like the management.” Wall Street is just as confident in its future.
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2023-11-02 00:00:00 UTC
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After-Hours Earnings Report for November 2, 2023 : AAPL, SYK, BKNG, EOG, PXD, MNST, MSI, FTNT, MCHP, ED, TEAM, SBAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-november-2-2023-%3A-aapl-syk-bkng-eog-pxd-mnst-msi-ftnt-mchp
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The following companies are expected to report earnings after hours on 11/02/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2023. The computer company's consensus earnings per share forecast from the 12 analysts that follow the stock is $1.39. This value represents a 7.75% increase compared to the same quarter last year. AAPL missed the consensus earnings per share in the 4th calendar quarter of 2022 by -2.59%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAPL is 28.76 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Stryker Corporation (SYK)is reporting for the quarter ending September 30, 2023. The medical products company's consensus earnings per share forecast from the 13 analysts that follow the stock is $2.44. This value represents a 15.09% increase compared to the same quarter last year. SYK missed the consensus earnings per share in the 3rd calendar quarter of 2022 by -5.36%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for SYK is 26.23 vs. an industry ratio of -1.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Booking Holdings Inc. (BKNG)is reporting for the quarter ending September 30, 2023. The internet company's consensus earnings per share forecast from the 10 analysts that follow the stock is $67.86. This value represents a 27.97% increase compared to the same quarter last year. In the past year BKNG has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 30.44%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for BKNG is 19.21 vs. an industry ratio of 16.30, implying that they will have a higher earnings growth than their competitors in the same industry.
EOG Resources, Inc. (EOG)is reporting for the quarter ending September 30, 2023. The oil (us exp & production) company's consensus earnings per share forecast from the 11 analysts that follow the stock is $2.95. This value represents a 20.49% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for EOG is 10.75 vs. an industry ratio of 13.70.
Pioneer Natural Resources Company (PXD)is reporting for the quarter ending September 30, 2023. The oil (us exp & production) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $5.53. This value represents a 26.07% decrease compared to the same quarter last year. In the past year PXD has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.98%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for PXD is 11.01 vs. an industry ratio of 13.70.
Monster Beverage Corporation (MNST)is reporting for the quarter ending September 30, 2023. The beverages company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.40. This value represents a 33.33% increase compared to the same quarter last year. MNST missed the consensus earnings per share in the 4th calendar quarter of 2022 by -9.68%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for MNST is 33.76 vs. an industry ratio of -54.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Motorola Solutions, Inc. (MSI)is reporting for the quarter ending September 30, 2023. The wireless equipment company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.79. This value represents a no change for the same quarter last year. In the past year MSI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.07%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for MSI is 26.87 vs. an industry ratio of 13.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Fortinet, Inc. (FTNT)is reporting for the quarter ending September 30, 2023. The internet software company's consensus earnings per share forecast from the 13 analysts that follow the stock is $0.30. This value represents a 7.14% increase compared to the same quarter last year. In the past year FTNT has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 14.81%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for FTNT is 46.22 vs. an industry ratio of -402.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Microchip Technology Incorporated (MCHP)is reporting for the quarter ending September 30, 2023. The semiconductor company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.55. This value represents a 11.51% increase compared to the same quarter last year. In the past year MCHP has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2024 Price to Earnings ratio for MCHP is 12.25 vs. an industry ratio of 18.50.
Consolidated Edison Inc (ED)is reporting for the quarter ending September 30, 2023. The electric power utilities company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.58. This value represents a 3.07% decrease compared to the same quarter last year. In the past year ED has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 5.17%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ED is 18.16 vs. an industry ratio of 11.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Atlassian Corporation (TEAM)is reporting for the quarter ending September 30, 2023. The internet software company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-0.10. This value represents a 37.50% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for TEAM is -370.52 vs. an industry ratio of -402.70, implying that they will have a higher earnings growth than their competitors in the same industry.
SBA Communications Corporation (SBAC)is reporting for the quarter ending September 30, 2023. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.05. This value represents a 1.61% decrease compared to the same quarter last year. In the past year SBAC has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 11.34%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for SBAC is 17.09 vs. an industry ratio of 10.70, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2023. AAPL missed the consensus earnings per share in the 4th calendar quarter of 2022 by -2.59%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAPL is 28.76 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAPL is 28.76 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry. Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2023. AAPL missed the consensus earnings per share in the 4th calendar quarter of 2022 by -2.59%.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2023. AAPL missed the consensus earnings per share in the 4th calendar quarter of 2022 by -2.59%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAPL is 28.76 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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Apple Inc. (AAPL)is reporting for the quarter ending September 30, 2023. AAPL missed the consensus earnings per share in the 4th calendar quarter of 2022 by -2.59%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAPL is 28.76 vs. an industry ratio of 10.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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2023-11-02 00:00:00 UTC
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Meet the Next Trillion-Dollar Companies: Our Top 3 Picks
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AAPL
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https://www.nasdaq.com/articles/meet-the-next-trillion-dollar-companies%3A-our-top-3-picks
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The current five trillion-dollar companies listed on U.S. stock exchanges include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Nvidia (NASD AQ:NVDA).
These five and two others, Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA), make up “the Magnificent Seven”.
The Globe and Mail published a story on Nov. 1 that pointed out the Magnificent Seven’s P/E ratio was over 40, while the remainder of the S&P 500 had a reasonable P/E of 15, nearly one-third the multiple.
The research team at Richard Bernstein Advisors LLC believes the imbalance is about to swing back the other way, providing investors an opportunity to invest in some great companies outside the seven names.
Therefore, rather than select the next three companies in line to become trillion-dollar companies, we’re going to stretch a little, selecting names that haven’t even got halfway there yet.
These are companies with market capitalizations of less than $500 billion and growing.
Taiwan Semiconductor Manufacturing (TSM)
Source: ToyW / Shutterstock
Taiwan Semiconductor Manufacturing (NYSE:TSM) has a current market cap of $432 billion. Its valuation needs to increase by 132% to join the club.
TSM is the world’s biggest chipmaker. In late October, founder Morris Chang said increasing tensions between China and the U.S. over technology issues would hold the semiconductor industry back.
“I think that decoupling will ultimately slow down everybody. Of course, the immediate purpose is to slow China down, and I think it’s doing that,” noted Reuters. It reported Chang’s comments about the U.S. banning the export of certain chips and chipmaking tools to China.
Taiwan Semiconductor is investing $40 billion to build a chip fabrication facility in Arizona. Last December, it announced it would triple its investment in the plant. Nvidia CEO Jensen Huang called the investment a “game-changing development for the industry”.
While the company’s revenues are expected to fall by 10% in 2023, given the demand for artificial intelligence (AI), the long-term future remains optimistic.
Adobe (ADBE)
Source: r.classen / Shutterstock.com
Adobe (NASDAQ:ADBE)vhas a market cap of $248 billion. Its shares have increased by nearly 62% this year. ADBE stock must stay in motion for the next 24-36 months to get to $1 trillion.
InvestorPlace contributor Jeremy Flint recently called Adobe a machine learning stock that will make investors rich. The software company for creatives has used machine learning in its products for more than a decade. Therefore, Flint believes this makes it eminently qualified to incorporate AI and machine learning tools into its products.
In November 2018, I suggested investors buy ADBE stock on the dip from its September highs. From January 2019 through November 2021, its shares rose 211%. Despite the drop in 2022, they’re still up 122% from November 2018.
Its share price could land at or past $700 by this time next year. Of course, anything but a mild recession would put that on hold for a while.
Of the 36 analysts covering its stock, 25 rate it overweight or an outright buy, with a $620 target price, 13% higher than where it’s currently trading.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) is best known as the company behind the immunology drug Humira, which treats moderate to severe cases of rheumatoid arthritis. However, some of its newer and developing products will get it to the $1 trillion mark.
AbbVie reported Q3 2023 results on Oct. 27., better than expected. Revenue came in at $13.93 billion and earnings per share were $2.95. The top line beat analyst expectations by $210 million, while bottom-line earnings were eight cents ahead of the consensus estimate.
However, its revenue and EPS were lower than a year ago, down 5.9% and 19.3%, respectively. Also, Humira saw its global sales decline by a whopping 36%.
However, Skyrizi and Rinvoq, its other two big immunology drugs, saw revenues increase by 52% and 59% in the third quarter. Combined quarterly sales were just $311 million shy of matching Humira’s quarterly revenue.
Perhaps the best example of using what you’ve got in new and improved ways is Botox, which it inherited in its May 2020 acquisition of Allergan. Created as a cosmetic treatment for wrinkles, it is used as a therapeutic for treating migraines and muscle pain. In Q3, Botox Therapeutic revenues were $748 million, 7.4% higher than a year ago.
Further, yielding 4.4%, it’s an attractive buy for dividend lovers right now.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post Meet the Next Trillion-Dollar Companies: Our Top 3 Picks appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current five trillion-dollar companies listed on U.S. stock exchanges include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Nvidia (NASD AQ:NVDA). The research team at Richard Bernstein Advisors LLC believes the imbalance is about to swing back the other way, providing investors an opportunity to invest in some great companies outside the seven names. In late October, founder Morris Chang said increasing tensions between China and the U.S. over technology issues would hold the semiconductor industry back.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current five trillion-dollar companies listed on U.S. stock exchanges include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Nvidia (NASD AQ:NVDA). Taiwan Semiconductor Manufacturing (TSM) Source: ToyW / Shutterstock Taiwan Semiconductor Manufacturing (NYSE:TSM) has a current market cap of $432 billion. Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE)vhas a market cap of $248 billion.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current five trillion-dollar companies listed on U.S. stock exchanges include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Nvidia (NASD AQ:NVDA). Taiwan Semiconductor Manufacturing (TSM) Source: ToyW / Shutterstock Taiwan Semiconductor Manufacturing (NYSE:TSM) has a current market cap of $432 billion. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) is best known as the company behind the immunology drug Humira, which treats moderate to severe cases of rheumatoid arthritis.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current five trillion-dollar companies listed on U.S. stock exchanges include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Nvidia (NASD AQ:NVDA). In November 2018, I suggested investors buy ADBE stock on the dip from its September highs. Revenue came in at $13.93 billion and earnings per share were $2.95.
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12746.0
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2023-11-02 00:00:00 UTC
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Beyond the Apple Hype: An AAPL Stock Reality Check
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AAPL
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https://www.nasdaq.com/articles/beyond-the-apple-hype%3A-an-aapl-stock-reality-check
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Some people believe that Apple (NASDAQ:AAPL) stock will always grind higher and that they should buy immediately all dips. However, while it might be fine to own a few AAPL stock shares, it’s not wise to make any assumptions. A near-term share-price rally isn’t guaranteed, even with a famous company like Apple.
It’s reassuring to know that Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) CEO Warren Buffett has a large share position, but Apple isn’t a problem-free company. The U.S. International Trade Commission is considering a ban on Apple Watch imports. Prospective investors should consider this issue among others. Let’s analyze Apple’s crucial developments and devise a reasonable approach to AAPL stock.
Will Service Price Hikes Help or Hinder AAPL Stock?
There’s so much going on with Apple that it might be hard for investors to keep track of it all. For example, Apple is making a big move into the market for buy now, pay later (BNPL) financial services.
Specifically, Apple just opened up its BNPL service, called Apple Pay Later, to all U.S. iPhone and iPad users. Now, qualified users can borrow funds for purchases of $75 to $1,000 in value and then repay those funds through installments.
There are many iPhone and iPad users, so this service could be a big hit. On the other hand, Apple certainly isn’t the first BNPL service provider. Indeed, perhaps Apple is a latecomer to this field.
Meanwhile, Apple is raising the prices of its AppleTV+ streaming and Arcade gaming service plans. Specifically, Apple raised the per-month price of AppleTV+ from $6.99 to $9.99 and the monthly price of Arcade from $4.99 to $6.99.
This surely won’t sit well with the users of those services. But then, price inflation is normal nowadays and Apple might end up generating more revenue from these price increases. It’s just too soon to predict how all of this will affect AAPL stock in the coming quarters.
Sluggish China iPhone Sales Don’t Bode Well for Apple
Apple’s streaming, gaming and BNPL services may be significant revenue generators for Apple, but smartphones are the company’s bread and butter. Plus, China is an important market for the iPhone – yet, Apple’s share of the Chinese smartphone market may be in jeopardy.
Jefferies analysts sounded the alarm bells as the iPhone faces fierce competition in China. “We believe weak demand in China would eventually lead to lower-than-expected global shipments of iPhone 15 in 2023,” the Jefferies analysts warned.
Counterpoint Research found iPhone 15 sales in China to be softer than expected. Mengmeng Zhang, an analyst with Counterpoint Research, reported that, “China’s headline numbers for the 15 series are in the red.”
Most likely, this isn’t entirely Apple’s fault. The lackluster iPhone 15 sales in China, according to Zhang, are a “reflection of the broader decline in consumer spending.” Still, whatever the contributing factors may be, slow smartphone sales in China will undoubtedly have a negative impact on Apple’s financial results.
AAPL Stock Might Be Fine for a Moderate Position
Even while Apple is favored by Buffett and is a world-renowned brand, the company still has problems to contend with. No company is perfect, so be sure to weigh Apple’s opportunities and obstacles when conducting your due diligence.
Over time, Apple will almost certainly survive and deliver a certain measure of value to its long-term shareholders. Prudent investors can mitigate their exposure to Apple’s risk factors by only considering a moderately sized share position in AAPL stock.
That way, you’ll be in the trade but won’t be over-leveraged if Apple’s problems go from bad to worse.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Beyond the Apple Hype: An AAPL Stock Reality Check appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Prudent investors can mitigate their exposure to Apple’s risk factors by only considering a moderately sized share position in AAPL stock. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Beyond the Apple Hype: An AAPL Stock Reality Check appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some people believe that Apple (NASDAQ:AAPL) stock will always grind higher and that they should buy immediately all dips.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some people believe that Apple (NASDAQ:AAPL) stock will always grind higher and that they should buy immediately all dips. However, while it might be fine to own a few AAPL stock shares, it’s not wise to make any assumptions. Let’s analyze Apple’s crucial developments and devise a reasonable approach to AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some people believe that Apple (NASDAQ:AAPL) stock will always grind higher and that they should buy immediately all dips. However, while it might be fine to own a few AAPL stock shares, it’s not wise to make any assumptions. Let’s analyze Apple’s crucial developments and devise a reasonable approach to AAPL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Some people believe that Apple (NASDAQ:AAPL) stock will always grind higher and that they should buy immediately all dips. Will Service Price Hikes Help or Hinder AAPL Stock? However, while it might be fine to own a few AAPL stock shares, it’s not wise to make any assumptions.
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12747.0
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2023-11-02 00:00:00 UTC
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Markets Up Big Again; Apple (AAPL) Beats Modestly
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https://www.nasdaq.com/articles/markets-up-big-again-apple-aapl-beats-modestly
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Markets rallied for a second-straight day, bringing weekly totals up anywhere from +3.2% on the blue-chip Dow to +4.7% on the tech-heavy Nasdaq. Just as it looked like the final trading months of 2023 were going to be more of the same tepid activity, we blast off +564 points on the Dow. It finished +1.7% on the session. The Nasdaq was up +232 points or +1.78%, while the S&P 500 gained +1.89%. The small-cap Russell 2000, still playing catch-up with its major index peers, jumped an excellent +2.69% today.
Leading up to a Fed meeting where interest rates were thought to not be increased, and then they weren’t, gave something of a relief rally to the proceedings. Worsening weekly and continuing jobless claims this morning actually helped justify the Fed’s decision to not raise rates, and perhaps most importantly of all — bond yield rates came down notably from their multi-year highs, with the 2-year back below 5% and the 10-year down to 4.663%. This has triggered a seemingly automatic re-attraction to the equities market.
The biggest company reporting earnings today is the biggest company in the world: Apple AAPL, which put out fiscal Q4 numbers after the closing bell today. Results were fine, but not the boffo figures we’d grown accustomed to over the years: earnings of $1.46 per share outpaced the Zacks consensus $1.39, and grew +13% year over year. Revenues of $89.5 billion surpassed the $89.03 billion expected, and swung to a profit year over year.
But for a company of Apple’s magnitude, with the new iPhone 15 having come out in the quarter, these numbers aren’t exactly hot (not nearly as hot as some of the phones were getting) — especially for a company trading at 26x forward earnings. Growth in the U.S. was OK, but not much in China. The company did set an all-time record for Services revenue and issued a 24-cent per share cash dividend, but shares have dropped about -1% in late trading.
Booking Holdings BKNG, on the other hand, posted +36% earnings growth in its Q3 earnings this afternoon to $72.32 per share, on $7.3 billion in sales that outshone the Zacks consensus $7.23 billion and grew +21% year over year. The company saw “resilience in leisure/travel demand” in the quarter. However, the statement provided no guidance, and perhaps the reason we’re seeing a -6.6% drop in shares in the after-market is because we’re selling the news. Some investors were also looking for a stock split, and once again they did not get one.
Booking rival Expedia EXPE reported record adjusted EBITDA up +13% to $1.2 billion in its Q3 report out after the bell, with earnings of $5.41 per share easily taking out the $5.15 expected, on $3.93 billion in revenues for the quarter which topped the $3.87 billion analysts were looking for. Shares are up +9% in late trading, likely to do with adjusting for its recent downtrodden value levels. Its One Key loyalty program reportedly brought good early results.
Tomorrow morning brings us the big Employment Situation report from the U.S. Bureau of Labor Statistics (BLS). We’re expecting to see around 170K new jobs filled for October — about half what the BLS reported the previous month — on an expected +3.8% Unemployment Rate. These are both historically good numbers, even if they pale in comparison to the previous month. Other employment metrics have depicted dwindling job adds across all sectors; we shall see if this is where we find ourselves tomorrow.
Questions or comments about this article and/or author? Click here>>
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The biggest company reporting earnings today is the biggest company in the world: Apple AAPL, which put out fiscal Q4 numbers after the closing bell today. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Markets rallied for a second-straight day, bringing weekly totals up anywhere from +3.2% on the blue-chip Dow to +4.7% on the tech-heavy Nasdaq.
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The biggest company reporting earnings today is the biggest company in the world: Apple AAPL, which put out fiscal Q4 numbers after the closing bell today. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Booking rival Expedia EXPE reported record adjusted EBITDA up +13% to $1.2 billion in its Q3 report out after the bell, with earnings of $5.41 per share easily taking out the $5.15 expected, on $3.93 billion in revenues for the quarter which topped the $3.87 billion analysts were looking for.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. The biggest company reporting earnings today is the biggest company in the world: Apple AAPL, which put out fiscal Q4 numbers after the closing bell today. Booking Holdings BKNG, on the other hand, posted +36% earnings growth in its Q3 earnings this afternoon to $72.32 per share, on $7.3 billion in sales that outshone the Zacks consensus $7.23 billion and grew +21% year over year.
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The biggest company reporting earnings today is the biggest company in the world: Apple AAPL, which put out fiscal Q4 numbers after the closing bell today. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. The company did set an all-time record for Services revenue and issued a 24-cent per share cash dividend, but shares have dropped about -1% in late trading.
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12748.0
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2023-11-02 00:00:00 UTC
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Noteworthy Thursday Option Activity: MRNA, AAPL, COIN
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-mrna-aapl-coin
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Moderna Inc (Symbol: MRNA), where a total volume of 101,337 contracts has been traded thus far today, a contract volume which is representative of approximately 10.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 236.7% of MRNA's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $140 strike put option expiring January 19, 2024, with 5,140 contracts trading so far today, representing approximately 514,000 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 113.0 million underlying shares, working out to a sizeable 210.2% of AAPL's average daily trading volume over the past month, of 53.7 million shares. Especially high volume was seen for the $180 strike call option expiring November 03, 2023, with 70,933 contracts trading so far today, representing approximately 7.1 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Coinbase Global Inc (Symbol: COIN) options are showing a volume of 172,775 contracts thus far today. That number of contracts represents approximately 17.3 million underlying shares, working out to a sizeable 202.7% of COIN's average daily trading volume over the past month, of 8.5 million shares. Especially high volume was seen for the $70 strike put option expiring November 10, 2023, with 10,795 contracts trading so far today, representing approximately 1.1 million underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $70 strike highlighted in orange:
For the various different available expirations for MRNA options, AAPL options, or COIN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ACWI YTD Return
NPY Historical Stock Prices
Funds Holding MGM Resorts International
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $180 strike call option expiring November 03, 2023, with 70,933 contracts trading so far today, representing approximately 7.1 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 113.0 million underlying shares, working out to a sizeable 210.2% of AAPL's average daily trading volume over the past month, of 53.7 million shares.
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Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 113.0 million underlying shares, working out to a sizeable 210.2% of AAPL's average daily trading volume over the past month, of 53.7 million shares. Especially high volume was seen for the $180 strike call option expiring November 03, 2023, with 70,933 contracts trading so far today, representing approximately 7.1 million underlying shares of AAPL.
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That number of contracts represents approximately 113.0 million underlying shares, working out to a sizeable 210.2% of AAPL's average daily trading volume over the past month, of 53.7 million shares. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. Especially high volume was seen for the $180 strike call option expiring November 03, 2023, with 70,933 contracts trading so far today, representing approximately 7.1 million underlying shares of AAPL.
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That number of contracts represents approximately 113.0 million underlying shares, working out to a sizeable 210.2% of AAPL's average daily trading volume over the past month, of 53.7 million shares. Below is a chart showing COIN's trailing twelve month trading history, with the $70 strike highlighted in orange: For the various different available expirations for MRNA options, AAPL options, or COIN options, visit StockOptionsChannel.com. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today.
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12749.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Futures tread higher on bets of end to Fed's rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-tread-higher-on-bets-of-end-to-feds-rate-hikes
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nan
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nan
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By Amruta Khandekar and Shashwat Chauhan
Nov 2 (Reuters) - Futures for Wall Street's main stock indexes on Thursday got a boost from hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate updates also lifted sentiment.
The Fed held interest rates steady on Wednesday, as expected, and while Chair Jerome Powell left the door open to further tightening, he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent U.S. Treasury yields tumbling, with the benchmark 10-year yield US10YT=RR hitting a fresh two-week low.
That, in turn, fueled gains in mega-cap growth stocks. Microsoft MSFT.O, Nvidia NVDA.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 0.7% and 2.5% in premarket trading.
"Overall, markets interpreted the meeting to have been dovish," said Charu Chanana, market strategist at Saxo Markets.
"Given the weakening consumer and business confidence trends and rising risks of delinquencies, the odds remain tilted to suggest that we have reached an end of the Fed's tightening cycle."
Traders pared back the risk of a December hike to about 20% and a January move to 25%, according to the CME Group's FedWatch tool. They have also priced in a 70% chance that the tightening is over.
U.S. equities have kicked off November on a brighter note — after a grueling October marred by fears of higher-for-longer interest rates and geopolitical tensions — though a mixed bag of earnings reports have kept a lid on sentiment.
However, with the quarterly earnings season now well beyond the halfway point, the more recent earnings reports from major Wall Street companies were upbeat.
Shares of QualcommQCOM.O climbed 5.7% after the chip designer forecast first-quarter sales and profit above Wall Street estimates as the slowdown in smartphone sales eases.
PayPalPYPL.O advanced 6.1% as the payments giant raised its full-year adjusted profit forecast.
StarbucksSBUX.O jumped 5.5% after beating estimates on quarterly comparable sales, while ModernaMRNA.O fell 3.1% after lowering its 2023 COVID-19 vaccine sales forecast.
Apple's AAPL.O shares rose nearly 1% ahead of the tech behemoth's quarterly numbers due after markets close on Thursday.
Investors will also parse a report on factory orders for September, due at 10 a.m. ET. The main data point of the week, however, will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.
The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 123 points, or 0.37%, S&P 500 e-minis EScv1 were up 21 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were up 113.25 points, or 0.77%.
SolarEdge TechnologiesSEDG.O fell 17.9% following the solar inverter maker's downbeat fourth-quarter revenue outlook.
AlbemarleALB.N slipped 4.2% as the lithium producer trimmed its annual sales forecast, while vacation lodging platform AirbnbABNB.O fell 2.1% after forecasting fourth-quarter revenue slightly below estimates.
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O shares rose nearly 1% ahead of the tech behemoth's quarterly numbers due after markets close on Thursday. By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Futures for Wall Street's main stock indexes on Thursday got a boost from hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate updates also lifted sentiment. The Fed held interest rates steady on Wednesday, as expected, and while Chair Jerome Powell left the door open to further tightening, he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares rose nearly 1% ahead of the tech behemoth's quarterly numbers due after markets close on Thursday. By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Futures for Wall Street's main stock indexes on Thursday got a boost from hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate updates also lifted sentiment. However, with the quarterly earnings season now well beyond the halfway point, the more recent earnings reports from major Wall Street companies were upbeat.
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Apple's AAPL.O shares rose nearly 1% ahead of the tech behemoth's quarterly numbers due after markets close on Thursday. By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Futures for Wall Street's main stock indexes on Thursday got a boost from hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate updates also lifted sentiment. However, with the quarterly earnings season now well beyond the halfway point, the more recent earnings reports from major Wall Street companies were upbeat.
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Apple's AAPL.O shares rose nearly 1% ahead of the tech behemoth's quarterly numbers due after markets close on Thursday. By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Futures for Wall Street's main stock indexes on Thursday got a boost from hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate updates also lifted sentiment. However, with the quarterly earnings season now well beyond the halfway point, the more recent earnings reports from major Wall Street companies were upbeat.
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12750.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Futures climb on bets of end to Fed's rate hikes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-on-bets-of-end-to-feds-rate-hikes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.32%, S&P 0.50%, Nasdaq 0.67%
Nov 2 (Reuters) - Wall Street futures on Thursday got a boost from hopes that the Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate forecasts also lifted sentiment.
The Fed held interest rates steady on Wednesday, as expected, and while Chair Jerome Powell left the door open to further tightening, he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent U.S. Treasury yields tumbling, with the benchmark 10-year yield US10YT=RR hitting a fresh two-week low.
That, in turn, fuelled gains in mega-cap growth stocks. Microsoft MSFT.O, Nvidia NVDA.O and Tesla TSLA.O rose between 0.8% and 2.2% in premarket trading on Thursday.
"Overall, markets interpreted the meeting to have been dovish," said Charu Chanana, market strategist at Saxo Markets in a note.
"Given the weakening consumer and business confidence trends and rising risks of delinquencies, the odds remain tilted to suggest that we have reached an end of the Fed's tightening cycle."
Traders pared back the risk of a December hike to about 20% and a January move to 25%, according to the CME Group's FedWatch tool. They have also priced in a 70% chance that the tightening is over.
U.S. equities have kicked off November on a brighter note -- after a gruelling October marred by fears of higher-for-longer interest rates and geopolitical tensions -- though a mixed bag of earnings reports have kept a lid on sentiment.
However, with the third-quarter earnings season now well beyond the halfway point, the more recent quarterly reports from major Wall Street companies were upbeat.
Shares of QualcommQCOM.O climbed 4.7% after the chip designer forecast first-quarter sales and profits above Wall Street estimates as the slowdown in smartphone sales eases.
PayPal HoldingsPYPL.O advanced 6.9% as the payments giant raised its full-year adjusted profit forecast.
Apple's AAPL.O results will grab the spotlight late on Thursday, while Starbucks SBUX.O, Eli Lilly LLY.N and Marriott MAR.O are due to report earnings before markets open.
Overall, analysts estimate S&P 500 companies' profit rose 5% in the third quarter, higher than the 1.6% growth forecast at the start of October, per LSEG data.
Investors will also parse a report on factory orders for September, due at 10 a.m. ET. The main data point of the week, however, will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.
At 5:14 a.m. ET, Dow e-minis 1YMcv1 were up 108 points, or 0.32%, S&P 500 e-minis EScv1 were up 21.25 points, or 0.5%, and Nasdaq 100 e-minis NQcv1 were up 99.25 points, or 0.67%.
SolarEdge TechnologiesSEDG.O dropped 18.4% following the solar inverter maker's downbeat fourth-quarter revenue outlook.
AlbemarleALB.N slipped 4.6% as the lithium producer trimmed its annual sales forecast.
(Reporting by Amruta Khandekar; Editing by Savio D'Souza)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O results will grab the spotlight late on Thursday, while Starbucks SBUX.O, Eli Lilly LLY.N and Marriott MAR.O are due to report earnings before markets open. The Fed held interest rates steady on Wednesday, as expected, and while Chair Jerome Powell left the door open to further tightening, he also acknowledged the impact of a recent surge in bond yields on the economy. "Given the weakening consumer and business confidence trends and rising risks of delinquencies, the odds remain tilted to suggest that we have reached an end of the Fed's tightening cycle."
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Apple's AAPL.O results will grab the spotlight late on Thursday, while Starbucks SBUX.O, Eli Lilly LLY.N and Marriott MAR.O are due to report earnings before markets open. Futures up: Dow 0.32%, S&P 0.50%, Nasdaq 0.67% Nov 2 (Reuters) - Wall Street futures on Thursday got a boost from hopes that the Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate forecasts also lifted sentiment. However, with the third-quarter earnings season now well beyond the halfway point, the more recent quarterly reports from major Wall Street companies were upbeat.
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Apple's AAPL.O results will grab the spotlight late on Thursday, while Starbucks SBUX.O, Eli Lilly LLY.N and Marriott MAR.O are due to report earnings before markets open. Futures up: Dow 0.32%, S&P 0.50%, Nasdaq 0.67% Nov 2 (Reuters) - Wall Street futures on Thursday got a boost from hopes that the Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate forecasts also lifted sentiment. However, with the third-quarter earnings season now well beyond the halfway point, the more recent quarterly reports from major Wall Street companies were upbeat.
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Apple's AAPL.O results will grab the spotlight late on Thursday, while Starbucks SBUX.O, Eli Lilly LLY.N and Marriott MAR.O are due to report earnings before markets open. Futures up: Dow 0.32%, S&P 0.50%, Nasdaq 0.67% Nov 2 (Reuters) - Wall Street futures on Thursday got a boost from hopes that the Federal Reserve had reached the end of its tightening campaign, while a number of upbeat corporate forecasts also lifted sentiment. "Overall, markets interpreted the meeting to have been dovish," said Charu Chanana, market strategist at Saxo Markets in a note.
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12751.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Wall Street indexes rally on bets of peak US interest rates, strong earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-indexes-rally-on-bets-of-peak-us-interest-rates-strong-earnings-0
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Qualcomm gains as Q1 forecast tops estimates
Starbucks rises on upbeat quarterly results
PayPal up on profit forecast raise
Weekly jobless claims stronger than expected
Indexes up: Dow 1.7%, S&P 1.89%, Nasdaq 1.78%
Updates with closing prices
By Sinéad Carew and Amruta Khandekar
Nov 2 (Reuters) - Wall Street's three main stock indexes rallied nearly 2% on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign and a batch of upbeat quarterly financial updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, viewed as hints that the central bank is done with its rate hikes, sent longer-dated U.S. Treasury yields tumbling, which supported stocks.
"Powell's comments in the presser yesterday were what everyone wanted to hear," said Justin Burgin, vice president of equity research at Ameriprise Financial in Troy, Michigan.
Burgin also pointed to better-than-expectated earnings reports. While the current-quarter guidance has been weaker than previously expected, Burgin said analysts are still forecasting growth.
"The fact the wheels didn't come of the bus for the fourth quarter is pretty good," he said.
According to the latest LSEG data, Wall Street is forecasting fourth-quarter earnings growth of 7.2%, down from 11% on Oct. 1, before the reporting season began. And for the third quarter, 80.9% of companies reporting so far have beat analysts' expectations while 14.9% have missed expectations.
The Dow Jones Industrial Average .DJI rose 564.5 points, or 1.7%, to 33,839.08, the S&P 500 .SPX gained 79.92 points, or 1.89%, at 4,317.78 and the Nasdaq Composite .IXIC added 232.72 points, or 1.78%, at 13,294.19.
The S&P 500, in its fourth straight session of gains, boasted its biggest one-day percentage gain since April. Also the benchmark index closed above its 200-day moving average for the first time since Oct. 24.
The small cap Russell 2000 index .RUT finished up 2.7% for its biggest one-day percentage gain since June 6.
The Nasdaq in its fifth consecutive day of gains, registered its biggest one-day percentage increase since July 28.
All 11 major S&P 500 sectors rose, led by energy .SPNY and rate-sensitive real estate .SPLRCRwith gains of more than 3% each. The communications services sector .SPLRCL rose least, adding 0.9%, followed by consumer staples .SPLRCS which gained 1.3%.
Among individual stocks, StarbucksSBUX.O rallied 9.5% after the coffeehouse company's fourth-quarter results beat estimates. Also QualcommQCOM.O shares climbed 5.8% after the chip designer forecast first-quarter sales and profit above estimates.
PayPalPYPL.O shares jumped 6.6% as the payments giant raised its full-year adjusted profit forecast. AppleAAPL.O shares closed up 2% ahead of its quarterly report, which is due later on Thursday.
Other big stock movers included ModernaMRNA.O, which sold off after lowering its 2023 COVID-19 vaccine sales forecast.
Data released earlier in the day showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
This week's key economic data release will be the October non-farm payrolls report due on Friday.
Advancing issues outnumbered decliners on the NYSE by a 7.30-to-1 ratio; on Nasdaq, a 3.16-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and nine new lows; the Nasdaq Composite recorded 40 new highs and 140 new lows.
On U.S. exchanges, 11.96 billion shares changed hands compared with the 10.78 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Saumyadeb Chakrabarty, Maju Samuel and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O shares closed up 2% ahead of its quarterly report, which is due later on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.7%, S&P 1.89%, Nasdaq 1.78% Updates with closing prices By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes rallied nearly 2% on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign and a batch of upbeat quarterly financial updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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AppleAAPL.O shares closed up 2% ahead of its quarterly report, which is due later on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.7%, S&P 1.89%, Nasdaq 1.78% Updates with closing prices By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes rallied nearly 2% on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign and a batch of upbeat quarterly financial updates added to the bullish mood. According to the latest LSEG data, Wall Street is forecasting fourth-quarter earnings growth of 7.2%, down from 11% on Oct. 1, before the reporting season began.
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AppleAAPL.O shares closed up 2% ahead of its quarterly report, which is due later on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.7%, S&P 1.89%, Nasdaq 1.78% Updates with closing prices By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes rallied nearly 2% on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign and a batch of upbeat quarterly financial updates added to the bullish mood. The Dow Jones Industrial Average .DJI rose 564.5 points, or 1.7%, to 33,839.08, the S&P 500 .SPX gained 79.92 points, or 1.89%, at 4,317.78 and the Nasdaq Composite .IXIC added 232.72 points, or 1.78%, at 13,294.19.
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AppleAAPL.O shares closed up 2% ahead of its quarterly report, which is due later on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.7%, S&P 1.89%, Nasdaq 1.78% Updates with closing prices By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes rallied nearly 2% on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign and a batch of upbeat quarterly financial updates added to the bullish mood. The S&P 500, in its fourth straight session of gains, boasted its biggest one-day percentage gain since April.
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12752.0
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2023-11-02 00:00:00 UTC
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Apple Earnings Highlight Double-Digit Earnings Growth
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AAPL
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https://www.nasdaq.com/articles/apple-earnings-highlight-double-digit-earnings-growth
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nan
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nan
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In its just-posted quarterly results, Apple (NASDAQ: AAPL) flexed its profitability muscles. Even though revenue fell slightly during the period, earnings per share (EPS) jumped 13% year over year. This was fueled by the tech company's aggressive share repurchase program and product mix shift toward its lucrative services segment.
Here's a closer look at some of the most important takeaways from the quarter.
A booming services business
Though shareholders would be happier if Apple's total revenue for the fiscal fourth quarter didn't fall 1% year over year, there were still some good reasons to be pleased with the quarter's sales trends. Apple's services revenue hit an all-time quarterly high during the period. It increased 16% year over year to $22.3 billion. Showing how significant the business is becoming to Apple, it accounted for a fourth of fiscal Q4's total revenue.
It would be difficult to overstate how good a fast-growing services business is for Apple. The segment's gross profit margin is 70.9%. This compares to a cumulative gross profit margin of 36.6% across all of Apple's hardware segments. Services' high gross profit margin, therefore, has an outsized effect on profitability. Specifically, Apple's services segment represented 39.2% of the quarter's total gross profit. This is one key reason why Apple was able to grow its EPS so significantly, even as its total revenue declined.
iPhone is doing well
Another Apple segment worth appreciating is iPhone. The important product category returned to growth during the period, aided slightly by the launch of the latest iPhone models with just over a week left in the quarter.
iPhone revenue for the period was $43.8 billion, up nearly 3% year over year and accounting for about 49% of the quarter's revenue. This compares to the important segment's 2% year-over-year decline in the fiscal third quarter.
Declining share count
Also playing a key role in Apple's EPS growth is its share repurchase program. Over the trailing 12 months, Apple repurchased a staggering $77.5 billion of its stock. This reduced Apple's total share count by nearly 3%. In other words, Apple's share repurchases helped bolster EPS growth by almost three percentage points.
Looking ahead
Depending on how you look at Apple's guidance, management expects further improvements in its business during the critical holiday quarter. Sure, management forecast a similar year-over-year growth rate for its total revenue during the holiday quarter as it saw in its just-reported quarter (a view that implies a 1% year-over-year decline). But management also reminded investors during itsearnings callthat the fiscal period has one fewer week.
"Revenue from the extra week last year added approximately seven percentage points to the quarter's total revenue," noted Apple's CFO Luca Maestri during the conference call on Thursday afternoon.
So you could say that, when adjusted for the extra week in the year-ago period, Apple is guiding for a significant sequential acceleration in its business.
Helping the quarter is a loaded product line, featuring new smartphones, smart watches, laptops, desktop computers, and more.
All this indicates that Apple continues to easily justify its current valuation of about 30 times earnings. Recent business trends suggest that the company's revenue could return to growth in fiscal 2024. The double-digit EPS growth it posted in fiscal Q4 could persist during the holiday quarter and into next year, thanks to Apple's improving business composition as its fast-growing services business balloons as a percentage of total revenue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In its just-posted quarterly results, Apple (NASDAQ: AAPL) flexed its profitability muscles. This was fueled by the tech company's aggressive share repurchase program and product mix shift toward its lucrative services segment. The important product category returned to growth during the period, aided slightly by the launch of the latest iPhone models with just over a week left in the quarter.
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In its just-posted quarterly results, Apple (NASDAQ: AAPL) flexed its profitability muscles. A booming services business Though shareholders would be happier if Apple's total revenue for the fiscal fourth quarter didn't fall 1% year over year, there were still some good reasons to be pleased with the quarter's sales trends. Declining share count Also playing a key role in Apple's EPS growth is its share repurchase program.
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In its just-posted quarterly results, Apple (NASDAQ: AAPL) flexed its profitability muscles. A booming services business Though shareholders would be happier if Apple's total revenue for the fiscal fourth quarter didn't fall 1% year over year, there were still some good reasons to be pleased with the quarter's sales trends. "Revenue from the extra week last year added approximately seven percentage points to the quarter's total revenue," noted Apple's CFO Luca Maestri during the conference call on Thursday afternoon.
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In its just-posted quarterly results, Apple (NASDAQ: AAPL) flexed its profitability muscles. Even though revenue fell slightly during the period, earnings per share (EPS) jumped 13% year over year. A booming services business Though shareholders would be happier if Apple's total revenue for the fiscal fourth quarter didn't fall 1% year over year, there were still some good reasons to be pleased with the quarter's sales trends.
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12753.0
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2023-11-02 00:00:00 UTC
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It’s Game On for These 3 “Strong Buy” Gaming Stocks
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AAPL
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https://www.nasdaq.com/articles/its-game-on-for-these-3-strong-buy-gaming-stocks
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nan
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nan
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The video gaming scene seems to be on the cusp of some sort of consolidation as mega-cap tech looks to add to their services arsenals. Meta Platforms (NASDAQ:META), Take-Two (NASDAQ:TTWO), and NetEase (NASDAQ:NTES) are just three tech-savvy firms with major skin in the game (forgive the pun), and they're Strong Buy stocks right now, at least according to the Wall Street community.
Indeed, it's not hard to imagine the Magnificent Seven and FAANG firms striving to become more "fun" through the eyes of consumers as new technologies like the Metaverse become more widely adopted. Over time, I think gaming pure-plays will end up in the hands of a much larger tech firm that's eager to "one up" peers who have shown they're more than willing to expand their circles of competence and growth opportunities in the process.
So, without further ado, let's check in with TipRanks' Comparison Tool to see how the following highly-rated gamer plays stack up.
Meta Platforms (NASDAQ:META)
Meta Platforms is the Magnificent Seven stock that went from dud to top performer in a year. Undoubtedly, the stock crashed, shedding more than 76% of its value from peak to trough before kicking off one of the most impressive melt-up rebounds I've seen in mega-cap tech in quite a while. At writing, the stock has soared more than 250% from its early November 2022 lows. That's an incredible return that will be nearly impossible to replicate for the next year.
That said, analysts still think the social media powerhouse could have more room to run, thanks in large part to its generative artificial intelligence (AI) prowess. In many ways, Meta has evolved into more of an AI company than anything else. Perhaps Mark Zuckerberg should change Meta's name to LLM (Large Language Model) Platforms?
Moving forward, I expect Meta to stay on the cutting edge of consumer-facing AI tech. All the while, the firm continues to stay in its front-row seat to the still-nascent metaverse (or spatial computing) market. The Metaverse upside, I believe, may still be severely downplayed by the market, as the masses have almost all of their shifted focus to AI. AI is a massive growth driver for Meta, but so too could be the Metaverse. Given both powerful growth drivers, it's hard to be anything but bullish on the stock.
Regarding Meta's gaming/metaverse ambitions, its Quest 3 mixed-reality headset has received pretty solid reviews. It builds on its predecessors quite well while offering a competitive price of $499.99. However, there's one thing that seems to be missing: a killer app. I believe that killer app is a triple-A game.
There's no shortage of fun experiences and mini-games on the Meta platform. However, if Meta really wants to take the ball and run with it as Apple (NASDAQ:AAPL) looks to release its Vision Pro to the masses early next year, it needs to go big on gaming. As the spatial computing race gets more crowded next year, I'd argue the value (and pace) of video game acquisitions could surge.
Apple and Meta already have plenty of "game." But for the metaverse to take off, they have to take it to the next level. And I believe that the next level lies in a big-budget virtual-reality production.
What is the Price Target for META Stock?
Meta's a Strong Buy, according to analysts, with 36 buys and one Hold assigned in the past three months. The average META stock price target of $384.62 entails 23.7% upside potential.
Take-Two Interactive Software (NASDAQ:TTWO)
Take-Two Interactive Software is one such pure-play gaming firm that may be worth a great deal in the hands of a Magnificent Seven firm like Meta or Apple. Now that Activision Blizzard is off the market, I view Take-Two as the next best target. The $23.3 billion market cap makes Take-Two easily digestible for a firm in the Magnificent Seven. Still, the firm still seems like a two-hit-wonder with its Red Dead Redemption and Grand Theft Auto (GTA) titles.
Aside from its big two titles, Take-Two's social and mobile gaming business looks impressive after its Zynga deal. Personally, I think Take-Two is a perfect fit for a firm like Meta as it seems to catapult the Metaverse to the mainstream.
Indeed, speculating on a takeover is a dangerous game. However, I view TTWO stock as cheap at current levels. Most of Wall Street seems to agree. Raymond James analysts are raging bulls over the potential for GTA VI (the latest title) to post "big numbers" once it releases. The title could be released "soon," but there's no release date set in stone quite yet. Raymond James is smart to look at TTWO through a longer-term lens. A new game is coming, and odds are it'll be a profound hit, just like prior titles.
At writing, TTWO goes for 4.1 times price-to-sales, in line with the electronic gaming & multimedia industry average of 4.04 times. Given the big catalyst in GTA VI, TTWO probably deserves to trade a hefty premium to the peer group.
What is the Price Target for TTWO Stock?
Take-Two's a Strong Buy, according to analysts, with 14 Buys and one Hold assigned in the past three months. The average TTWO stock price target of $161.47 and implies 17.4% upside potential.
NetEase (NASDAQ:NTES)
Finally, we have a Chinese gaming firm, NetEase, which has been off to the races this year, with shares now up more than 43% year-to-date. Just over a month ago, JPMorgan (NYSE:JPM) upgraded the stock over a line of new games. Indeed, China's economy has been rather sluggish. But as a relatively cheap form of entertainment, I think NetEase could rise, even without help from the broader economy. As such, I'm staying bullish as the stock recovery continues.
The company's margins may be weighed down for longer as Chinese consumers opt to spend less on microtransactions. In any case, I expect such spending could heat up should consumers really get absorbed into new releases. Further, China's economy can't keep sinking forever, opening the door to potential upside in the face of an eventual economic recovery.
Also, NTES stock looks quite cheap at 20.5 times trailing price-to-earnings, well below the gaming industry average of 31.9 times. Of course, investing in the Chinese market accompanies additional risks. However, if you're willing to bear said risks, I view the potential rewards as compelling. However, NetEase seems like less of a takeover target than the likes of Take-Two. That rules out a potential spike for those looking to speculate on M&A.
What is the Price Target for NTES Stock?
NetEase is also a Strong Buy, according to analysts, with nine unanimous Buy ratings and an average price target of $128.00, suggesting 16.6% upside from here.
Conclusion
It's not just fun and games for video game pure-plays and mega-cap tech titans looking to get into the game. As the economy heals, while big-tech firms become more competitive when it comes to gaming and the Metaverse, I'd look for gaming stocks to rise steadily over the coming years. Of the trio outlined in this piece, Wall Street expects the most upside from Meta stock (23.7%).
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, if Meta really wants to take the ball and run with it as Apple (NASDAQ:AAPL) looks to release its Vision Pro to the masses early next year, it needs to go big on gaming. Indeed, it's not hard to imagine the Magnificent Seven and FAANG firms striving to become more "fun" through the eyes of consumers as new technologies like the Metaverse become more widely adopted. Over time, I think gaming pure-plays will end up in the hands of a much larger tech firm that's eager to "one up" peers who have shown they're more than willing to expand their circles of competence and growth opportunities in the process.
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However, if Meta really wants to take the ball and run with it as Apple (NASDAQ:AAPL) looks to release its Vision Pro to the masses early next year, it needs to go big on gaming. Meta Platforms (NASDAQ:META), Take-Two (NASDAQ:TTWO), and NetEase (NASDAQ:NTES) are just three tech-savvy firms with major skin in the game (forgive the pun), and they're Strong Buy stocks right now, at least according to the Wall Street community. Meta Platforms (NASDAQ:META) Meta Platforms is the Magnificent Seven stock that went from dud to top performer in a year.
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However, if Meta really wants to take the ball and run with it as Apple (NASDAQ:AAPL) looks to release its Vision Pro to the masses early next year, it needs to go big on gaming. Meta Platforms (NASDAQ:META), Take-Two (NASDAQ:TTWO), and NetEase (NASDAQ:NTES) are just three tech-savvy firms with major skin in the game (forgive the pun), and they're Strong Buy stocks right now, at least according to the Wall Street community. Meta Platforms (NASDAQ:META) Meta Platforms is the Magnificent Seven stock that went from dud to top performer in a year.
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However, if Meta really wants to take the ball and run with it as Apple (NASDAQ:AAPL) looks to release its Vision Pro to the masses early next year, it needs to go big on gaming. Meta Platforms (NASDAQ:META), Take-Two (NASDAQ:TTWO), and NetEase (NASDAQ:NTES) are just three tech-savvy firms with major skin in the game (forgive the pun), and they're Strong Buy stocks right now, at least according to the Wall Street community. Raymond James analysts are raging bulls over the potential for GTA VI (the latest title) to post "big numbers" once it releases.
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12754.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Stocks set for strongest week of 2023 on interest rate cheer
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-set-for-strongest-week-of-2023-on-interest-rate-cheer
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nan
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nan
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By Tom Westbrook
SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes.
U.S. jobs data due later in the day is the next major focus.
Benchmark 10-year Treasury yields US10YT=RR are down more than 20 basis points in two sessions since the U.S. Federal Reserve left rates on hold on Wednesday and Chair Jerome Powell said risks to the outlook for rates settings was balanced.
Cash Treasuries were untraded in Asia as markets were closed in Tokyo due to a holiday, and 10-year futures TNc1 held recent gains to imply yields were steady at 4.67%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.9%.
S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations.
World stocks .MIWD00000PUS are up 4.2% for the week so far, their largest weekly rise since November 2022.
"Markets have become increasingly confident that rates in the U.S. have now peaked," said ANZ analysts in a note.
"As logical as that is ... Powell did warn that for higher bond yields to forestall another hike, they'd need to stay high, so markets can't have their proverbial cake and eat it too."
The U.S. Treasury department had also said on Wednesday that it would sell less longer-dated debt at auction than had been expected and a softer-than-forecast manufacturing survey helped reinforce bets that no further hikes are necessary.
On Thursday, the Bank of England also left interest rates on hold and stressed it did not expect to cut them any time soon.
Ten-year gilts GB10YT=RR had their sharpest rally in more than a month, sending yields almost 12 basis points lower to 4.39%. Ten-year German bund yields DE10YT=RR also fell on Thursday, though only by 4.6 bps to 2.71%.
"It felt like there were a decent chunk of investors waiting on the sidelines and ready to play lower yields and yesterday removed a couple of potential stumbling blocks to enacting that view," said Rabobank analysts.
PAYROLLS LOOM
In foreign exchange markets the Australian dollar AUD=D3 is leading gains among G10 currencies this week after a third-quarter inflation surprise had traders betting on a rate hike from the Reserve Bank of Australia (RBA) on Tuesday.
Australian retail sales stumbled in the September quarter, with sales-per-person posting the largest annual drop on record, data on Friday showed.
The Australian dollar AUD=D3 is up 1.5% to $0.6430 and has broken above its 50-day moving average. The New Zealand dollar NZD=D3 is not far behind with a 1.4% gain to $0.5892. AUD/
"Money markets are more than fully priced for another RBA hike by Q1, eye-catching in the G10. So the Aussie has a degree of support from RBA expectations that it has rarely had since the pandemic," said Westpac analyst Sean Callow.
"(But) a run at $0.65 is likely to require either a notably weak U.S. jobs report or a hawkish hike from the RBA."
Economists polled by Reuters expect the U.S. to have added 180,000 jobs in October.
The worst performing G10 currencies for the week have been the havens of Japanese yen JPY=EBS and the Swiss franc CHF=EBS as investors have sought out riskier assets.
The Bank of Japan will continue to dismantle its ultra-easy monetary policy next year, six sources familiar with the BOJ's thinking told Reuters, though the slow progress has been cold comfort for a yen weighed down by Japan's low interest rates.
It traded at 150.44 per dollar on Friday. Brent crude LCOc1 futures are 4% lower on the week to $86.80 a barrel. Gold XAU= is down 1% at $1,983 an ounce.
Bitcoin BTC=BTSP has surged 15% with the mood and looks to be reviving momentum that had collapsed along with exchange FTX in 2022. FTX founder Sam Bankman-Fried was found guilty of stealing from customers on Thursday. Bitcoin bought $34,600.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Tom Westbrook; Editing by Jacqueline Wong)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. "It felt like there were a decent chunk of investors waiting on the sidelines and ready to play lower yields and yesterday removed a couple of potential stumbling blocks to enacting that view," said Rabobank analysts.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. In foreign exchange markets the Australian dollar AUD=D3 is leading gains among G10 currencies this week after a third-quarter inflation surprise had traders betting on a rate hike from the Reserve Bank of Australia (RBA) on Tuesday.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. By Tom Westbrook SINGAPORE, Nov 3 (Reuters) - Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. In foreign exchange markets the Australian dollar AUD=D3 is leading gains among G10 currencies this week after a third-quarter inflation surprise had traders betting on a rate hike from the Reserve Bank of Australia (RBA) on Tuesday.
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S&P 500 futures ESc1 were 0.1% lower, weighed by a 3% fall for AppleAAPL.O shares in post-market trade after the tech giant's sales forecast fell short of expectations. The New Zealand dollar NZD=D3 is not far behind with a 1.4% gain to $0.5892. The Bank of Japan will continue to dismantle its ultra-easy monetary policy next year, six sources familiar with the BOJ's thinking told Reuters, though the slow progress has been cold comfort for a yen weighed down by Japan's low interest rates.
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12755.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Wall St rallies over 1% on bets of peak US interest rates
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-over-1-on-bets-of-peak-us-interest-rates
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Qualcomm gains as Q1 forecast tops estimates
Starbucks rises on upbeat quarterly results
PayPal up on profit forecast raise
Weekly jobless claims stronger than expected
Indexes up: Dow 1.21%, S&P 1.54%, Nasdaq 1.47%
Updated at 11:39 a.m. ET/1539 GMT
By Amruta Khandekar and Shashwat Chauhan
Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent longer-dated U.S. Treasury yields tumbling to three-week lows.
The yield on 10-year Treasury notes US10YT=RR was last down 13.4 basis points to 4.657%, tracking its biggest one-day decline since August.
"He (Powell) basically signaled that this is the top for interest rates.The next change in interest rates from here will likely be lower," said David Waddell, CEO at Waddell & Associates.
"I don't think they will cut within the first six months of next year unless things deteriorate much faster than expected."
Traders' bets that the Fed will hold rates steady in December rose to 85.5% from 79.5% the previous day, according to CME Group's FedWatch tool.
All three major stock indexes touched their highest level since Oct. 19.
Mega-cap growth stocks Nvidia NVDA.O, Alphabet GOOGL.O and Tesla TSLA.O rose between 1% and 5%.
All 11 major S&P 500 sectors were trading higher, with rate-sensitive real estate .SPLRCR stocks up 3.2% and leading gains.
On the earnings front,QualcommQCOM.O climbed 5.6% after the chip designer forecast first-quarter sales and profit above Wall Street estimates.
PayPalPYPL.O advanced 3.9% as the payments giant raised its full-year adjusted profit forecast.
StarbucksSBUX.O jumped 9.4% after fourth-quarter results beat estimates, while drugmaker Eli LillyLLY.Njumped 4.6% after beating quarterly sales estimates.
Apple's AAPL.O shares advanced 1.8% ahead of its quarterly numbers due after markets close on Thursday.
U.S. equities have kicked off November on a brighter note following a bruising October marred by fears of higher-for-longer interest rates and geopolitical tensions.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
The main data point of the week will be the October non-farm payrolls report on Friday, which will offer more clarity on the state of the labor market.
At 11:39 a.m. ET, the Dow Jones Industrial Average .DJI was up 401.78 points, or 1.21%, at 33,676.36, the S&P 500 .SPX was up 65.07 points, or 1.54%, at 4,302.93, and the Nasdaq Composite .IXIC was up 191.95 points, or 1.47%, at 13,253.42.
Among other stocks, data analytics firm Palantir TechnologiesPLTR.Nrose 16.8% on forecasting quarterly revenue above estimates.
ModernaMRNA.O dropped 9.0% after lowering its 2023 COVID-19 vaccine sales forecast.
The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
Advancing issues outnumbered decliners by a 6.82-to-1 ratio on the NYSE and by a 3.12-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and lows each, while the Nasdaq recorded 32 new highs and 95 new lows.
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Saumyadeb Chakrabarty and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O shares advanced 1.8% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.21%, S&P 1.54%, Nasdaq 1.47% Updated at 11:39 a.m. ET/1539 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares advanced 1.8% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.21%, S&P 1.54%, Nasdaq 1.47% Updated at 11:39 a.m. ET/1539 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. All three major stock indexes touched their highest level since Oct. 19.
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Apple's AAPL.O shares advanced 1.8% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.21%, S&P 1.54%, Nasdaq 1.47% Updated at 11:39 a.m. ET/1539 GMT By Amruta Khandekar and Shashwat Chauhan Nov 2 (Reuters) - Wall Street's main stock indexes rallied on Thursday on hopes that the U.S. Federal Reserve had reached the end of its tightening campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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Apple's AAPL.O shares advanced 1.8% ahead of its quarterly numbers due after markets close on Thursday. "He (Powell) basically signaled that this is the top for interest rates.The next change in interest rates from here will likely be lower," said David Waddell, CEO at Waddell & Associates. On the earnings front,QualcommQCOM.O climbed 5.6% after the chip designer forecast first-quarter sales and profit above Wall Street estimates.
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12756.0
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2023-11-02 00:00:00 UTC
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China iPhone sales strong, Apple tells investors as Huawei threat looms
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AAPL
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https://www.nasdaq.com/articles/china-iphone-sales-strong-apple-tells-investors-as-huawei-threat-looms-0
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nan
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By Yuvraj Malik and Stephen Nellis
Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies HWT.ULand other local smartphone makers.
"In mainland China, we set a quarterly record for the September quarter for iPhone," Chief Executive Tim Cook told Reuters in an interview. "We had four out of the top five best-selling smartphones in urban China."
Apple appeared to have gained market share in China in the July-September period, even if the overall smartphone market may have contracted, he said on a conference call with analysts.
The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said.
Research firm Canalys estimated that overall smartphone sales in China fell 3% in July-September from a year earlier as consumers bought fewer smartphones as an economic recovery was choppy.
That was slower pace of decline than previous quarters, a sign that a slump in the market had eased. Sales of iPhones in China fell 6%, Canalys said.
On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter. Its Mate 60 Pro phone has grabbed headlines for using an advanced China-made chip despite being squeezed for years by debilitating U.S. sanctions.
Apple said on Thursday that its overall sales in China dipped 2.5% but it blamed tough Mac computer and iPad sales for that. Cook said sales there grew after accounting for foreign-exchange rates.
Apple's sales in China have fallen in three of the four quarters in its 2023 fiscal year, which ended Sept. 30.
Analysts said they remained optimistic about Apple's demand outlook in China through the fourth quarter as there were signs that a rebound in the broader smartphone market was gathering pace.
Aggressive discounting on the iPhone 15 series in the run up to the annual Singles Day shopping festival by major Chinese online retailers is also encouraging demand.
Although Apple occasionally allows partner vendors in China to offer discounts to spur demand, these retailers have also been locked in a "value for money" battle to win customers.
Over the past two weeks, platforms including JD.com 9618.HK, Pinduoduo PDD.O, and Alibaba's 9988.HK Taobao have offered major deals on iPhone 15 models, marking down prices by up to 1,501 yuan ($205.14) below retail.
"While the latest iPhone series had underperformed in China in the launch quarter due to a shorter pre-holiday shopping period coupled with supply mismatches on the Pro Max, it could see improvement in the year-ending quarter with a strong 11.11 sales event performance," research consultancy Counterpoint wrote in a note on Friday.
Apple's comments followed optimistic commentary from its chip supplier Qualcomm QCOM.O on Wednesday, which signaled that a two-year-long slump in the smartphone market was easing, led by a recovery in China.
QorvoQRVO.O, another wireless connectivity chip supplier to Apple, also said inventory levels at their China customers were slowly falling and that the company had recorded its largest bookings quarter in more than two years.
Qualcomm is also facing new competition from Huawei's chips, but said on Wednesday it does not expect Huawei's re-entry into the market to affect its relationship with Chinese smartphone companies.
(Reporting by Yuvraj Malik in Bengaluru， Stephen Nellis in San Francisco and Yelin Mo in Beijing, additional reporting by Arsheeya Bajwa and Harshita Varghese in Bengaluru; Writing by Sayantani Ghosh; Editing by Gerry Doyle)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies HWT.ULand other local smartphone makers. Apple's comments followed optimistic commentary from its chip supplier Qualcomm QCOM.O on Wednesday, which signaled that a two-year-long slump in the smartphone market was easing, led by a recovery in China. QorvoQRVO.O, another wireless connectivity chip supplier to Apple, also said inventory levels at their China customers were slowly falling and that the company had recorded its largest bookings quarter in more than two years.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies HWT.ULand other local smartphone makers. Research firm Canalys estimated that overall smartphone sales in China fell 3% in July-September from a year earlier as consumers bought fewer smartphones as an economic recovery was choppy. On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies HWT.ULand other local smartphone makers. The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said. Analysts said they remained optimistic about Apple's demand outlook in China through the fourth quarter as there were signs that a rebound in the broader smartphone market was gathering pace.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies HWT.ULand other local smartphone makers. The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said. On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter.
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12757.0
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2023-11-02 00:00:00 UTC
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Apple beats quarterly estimates as iPhone sales edge up
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AAPL
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https://www.nasdaq.com/articles/apple-beats-quarterly-estimates-as-iphone-sales-edge-up
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nan
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By Stephen Nellis
Nov 2 (Reuters) - Apple's AAPL.O quarterly sales and profit beat Wall Street expectations on Thursday, with higher iPhone sales and services revenue helping offset large drops in Mac and iPad sales.
But revenue from China dipped 2.5% and Chief Executive Tim Cook said Apple's new high-end handset models - the iPhone 15 Pro and Pro Max devices - are facing supply constraints.
Apple shares, which have risen 37% so far this year, closed up 2% on Thursday. They were down 1.3% in after-hours trading.
The Cupertino, California, company has navigated a global smartphone slump better than many of its rivals but faces an uneven economic recovery in China, a key market for Apple.
Apple said sales for the fiscal fourth quarter ended Sept. 30 fell roughly 1% to $89.50 billion, with nearly $1 billion more in services revenue than Wall Street expected, helping the overall total beat analyst estimates of $89.28 billion, according to LSEG data. Net income rose about 11%. Profit per share of $1.46 beat analyst expectations of $1.39 per share, according to LSEG.
The results do not include the bulk of sales from Apple's newest iPhone 15 models. Analysts and investors will be closely watching a conference call scheduled for 5 p.m. EDT (2100 GMT) during which executives will give an outlook for the company's all-important holiday sales quarter, historically the most important for the new devices.
Apple is facing tougher competition in the smartphone market this year as Huawei Technologies HWT.UL returns to the field with new phones powered by Chinese-made chips after being all but shut out of the market for several years by U.S. government trade curbs.
Apple's sales in China fell to $15.08 billion from $15.47 billion in the fourth quarter a year ago. Apple CEO Cook said that after accounting for foreign exchange rates, Apple's business in China grew year-over-year, driven by iPhone sales and services revenue.
"In mainland China, we set a quarterly record for the September quarter for iPhone," Cook told Reuters. "We had four out of the top five best-selling smartphones in urban China."
Cook also said two of Apple's new high-end handset models - the iPhone 15 Pro and Pro Max devices - are facing supply constraints.
"We're working hard to manufacture more of them," he said. "We do believe that later this quarter, we'll reach a supply-demand balance."
Several global trends are also playing in Apple's favor, with forecasters predicting that the smartphone market has bottomed out and may start to recover in 2024.
The personal computer market is also expected to fare better in the coming year. Earlier this week, Apple rolled out new Mac machines.
In the longer term, investors are eying how Apple responds to the boom in generative artificial intelligence in which systems can follow prompts in human-like ways - an area that has attracted billions in spending by Microsoft MSFT.O and Alphabet's GOOGL.O Google. Apple has said it is working on the technology and views it as a way to improve a wide range of products.
For now, the iPhone remains Apple's biggest seller. Sales of the device were $43.81 billion in the fourth quarter, in line with analyst expectations of $43.81 billion, according to LSEG data.
Sales in Apple's wearables segment, which includes the Apple Watch and AirPods, fell 3% to $9.32 billion, short of estimates of $9.43 billion, according to LSEG data.
Apple has faced several quarters of declining sales of Macs and iPads, and the fourth quarter continued that trend. Mac sales slumped by a third to $7.61 billion and iPad sales declined 10% to $6.44 billion, compared with expectations of $8.63 billion and $6.07 billion, respectively, according to LSEG data.
Sales in Apple's services segment, which includes Apple TV+ and which recently closed a deal with global soccer superstar Lionel Messi, rose 16% to $22.31 billion, compared with analyst estimates of $21.35 billion.
(Reporting by Stephen Nellis in San Francisco and Yuvraj Malik in Bengaluru Editing by Sayantani Ghosh, Peter Henderson and Matthew Lewis)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Nov 2 (Reuters) - Apple's AAPL.O quarterly sales and profit beat Wall Street expectations on Thursday, with higher iPhone sales and services revenue helping offset large drops in Mac and iPad sales. The Cupertino, California, company has navigated a global smartphone slump better than many of its rivals but faces an uneven economic recovery in China, a key market for Apple. Analysts and investors will be closely watching a conference call scheduled for 5 p.m. EDT (2100 GMT) during which executives will give an outlook for the company's all-important holiday sales quarter, historically the most important for the new devices.
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By Stephen Nellis Nov 2 (Reuters) - Apple's AAPL.O quarterly sales and profit beat Wall Street expectations on Thursday, with higher iPhone sales and services revenue helping offset large drops in Mac and iPad sales. But revenue from China dipped 2.5% and Chief Executive Tim Cook said Apple's new high-end handset models - the iPhone 15 Pro and Pro Max devices - are facing supply constraints. Apple said sales for the fiscal fourth quarter ended Sept. 30 fell roughly 1% to $89.50 billion, with nearly $1 billion more in services revenue than Wall Street expected, helping the overall total beat analyst estimates of $89.28 billion, according to LSEG data.
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By Stephen Nellis Nov 2 (Reuters) - Apple's AAPL.O quarterly sales and profit beat Wall Street expectations on Thursday, with higher iPhone sales and services revenue helping offset large drops in Mac and iPad sales. Apple said sales for the fiscal fourth quarter ended Sept. 30 fell roughly 1% to $89.50 billion, with nearly $1 billion more in services revenue than Wall Street expected, helping the overall total beat analyst estimates of $89.28 billion, according to LSEG data. Sales in Apple's services segment, which includes Apple TV+ and which recently closed a deal with global soccer superstar Lionel Messi, rose 16% to $22.31 billion, compared with analyst estimates of $21.35 billion.
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By Stephen Nellis Nov 2 (Reuters) - Apple's AAPL.O quarterly sales and profit beat Wall Street expectations on Thursday, with higher iPhone sales and services revenue helping offset large drops in Mac and iPad sales. Apple is facing tougher competition in the smartphone market this year as Huawei Technologies HWT.UL returns to the field with new phones powered by Chinese-made chips after being all but shut out of the market for several years by U.S. government trade curbs. Sales of the device were $43.81 billion in the fourth quarter, in line with analyst expectations of $43.81 billion, according to LSEG data.
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12758.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Stocks surge, dollar falls; investors bet Fed may be done hiking rates
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-surge-dollar-falls-investors-bet-fed-may-be-done-hiking-rates
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nan
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By Caroline Valetkevitch
NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows.
The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
Bond yields extended their move lower from Wednesday, on relief that the U.S. Treasury Department announced smaller-than-expected increases in longer-dated Treasury supply.
On Wednesday, the Treasury said it would raise auction sizes for longer-dated debt by less than was expected and noted that it expects one more quarter of auction size increases to meet its financing needs.
Benchmark 10-year note yields US10YT=RR were last down 12 basis points at 4.669% and earlier reached 4.626%, the lowest since Oct. 13.
In U.S. stocks, the S&P 500 registered its biggest one-day percentage gain since April 27.
Upbeat quarterly corporate results added to bullish sentiment on Wall Street. Apple AAPL.O shares closed up 2.1% ahead of its results after the closing bell.
The Dow Jones Industrial Average .DJI rose 564.5 points, or 1.7%, to 33,839.08, the S&P 500 .SPX gained 79.92 points, or 1.89%, to 4,317.78 and the Nasdaq Composite .IXIC added 232.72 points, or 1.78%, to 13,294.19.
The pan-European STOXX 600 index .STOXX rose 1.58% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.96%, which would be its biggest daily percentage jump since November 2022.
In foreign exchange, the U.S. dollar was broadly lower on the perception that U.S. rate had peaked, raising risk appetite.
"But at the same time, everyone is looking at a slowdown and inflation is going in the right direction," Bechtel said.
Fed funds futures indicated a sub-20% chance that U.S. rates will rise in December.
Bitcoin BTC=BTSP, sometimes traded as a proxy for risk-taking, broke above $35,000 to hit its highest level since May 2022.
Oil prices ended sharply higher in the wake of the Fed decision to leave rates unchanged, with U.S. crude futures settling at $82.46 a barrel, up $2.02, and Brent crude futures settling at $86.85, up $2.22.
Also, U.S. non-farm payrolls data is due out on Friday. A tight labor market is considered a key factor in the outlook for interest rates.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
The race to raise rates https://tmsnrt.rs/45KHoZJ
(Additional reporting by Gertrude Chavez-Dreyfuss in New York and Marc Jones in London; Editing by Emelia Sithole-Matarise, Susan Fenton, Richard Chang, Nick Macfie and Diane Craft)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O shares closed up 2.1% ahead of its results after the closing bell. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy. Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
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Apple AAPL.O shares closed up 2.1% ahead of its results after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. On Wednesday, the Treasury said it would raise auction sizes for longer-dated debt by less than was expected and noted that it expects one more quarter of auction size increases to meet its financing needs.
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Apple AAPL.O shares closed up 2.1% ahead of its results after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
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Apple AAPL.O shares closed up 2.1% ahead of its results after the closing bell. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy. Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
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12759.0
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2023-11-02 00:00:00 UTC
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Stock Market News for Nov 02, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-nov-02-2023
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nan
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nan
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Market News
Wall Street closed higher on Wednesday after the Federal Reserve kept its interest rates unchanged. However, the Fed is in a dilemma as to whether the current financial situation is sufficiently restrictive to tackle inflation or if the robust economy needs further measures to combat inflation. Investors continue to closely monitor third-quarter earnings. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.7% or 221.71 points to close at 33,274.58. Notably, 21 components of the 30-stock index ended in positive territory, while 11 finished in negative zone.
The tech-heavy Nasdaq added 210.23 points or 1.6% to close at 13,061.47.
The S&P 500 gained 1.1% or 44.06 points to end at 4,237.86. Nine out of the 11 broad sectors of the benchmark ended in positive territory. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU) and the Financials Select Sector SPDR (XLF) rose 1.9%, 1.5%, 1.2%, 1.1%, and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7% to 16.87. A total of 11.20 billion shares were traded on Wednesday, higher than the last 20-session average of 10.67 billion. Advancing issues outnumbered the declining ones on the NYSE by a 2.36-to-1 ratio. On the Nasdaq, a 1.20-to-1 ratio favored advancers. The S&P 500 posted seven new 52-week highs and 30 new 52-week lows. The Nasdaq Composite registered 24 new 52-week highs and 297 new 52-week lows.
Fed Retains Interest Rates Amid Economic Uncertainty
On Wednesday, the Federal Reserve kept its benchmark policy rate unchanged in the range of 5.25-5.5% for the second time in a row. They're not sure if the current financial situation is tight enough to control inflation, or if the economy needs more restraints.
Fed Chair, Jerome Powell, described the present scenario as a bit of a puzzle. They're open to raising rates if inflation rises, but they're also worried that higher market-based interest rates could impact the economy. So, for now, they have decided to keep the interest rates unchanged and watch jobs data until their next meeting in December.
Despite hiking interest rates for almost two years, the Fed is not sure if the financial conditions are enough to bring inflation down to their desired 2%. Powell thinks it's a bit early to tell and said, "A few good months of data aren't enough to be confident."
Inflation is still above their 2% target, even though it has come down a bit. The Fed isn't certain if they need to raise rates further.
The Fed is also keeping an eye on rising Treasury bond yields and mortgage rates because these can slow down the economy. The Fed's statement acknowledged that the economy grew quite fast in the third quarter, due to consumer spending. But they are still not entirely sure how strong the economy is and if it's causing inflation to stall.
Tech stocks went on a rally following the meeting. Shares of Apple Inc. AAPL rose 1.9%, while Microsoft Corporation MSFT jumped 2.4%. Shares of Meta Platforms, Inc. META gained 3.5%. META carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mixed Q3 Earnings Results
United Therapeutics Corporation UTHR reported quarterly earnings of $5.38 per share, beating the Zacks Consensus Estimate of $4.89 per share. The company posted revenues of $609.4 million, surpassing the Zacks Consensus Estimate of $576.5 million. Consequently, shares of United Therapeutics rose 0.6%.
MasTec, Inc. MTZ came up with earnings of $0.95 per share for third-quarter 2023, missing the Zacks Consensus Estimate of $1.92 per share. The company posted revenues of $3.26 billion, lagging the Zacks Consensus Estimate by $3.83 billion. As a result, shares of MTZ declined 17.6%.
Economic Data
The U.S. Census Bureau reported that construction spending for September increased 0.4%, in line with the consensus. The August number was revised up to an increase of 1% from the previously reported 0.5%.
Per the Institute for Supply Management, the ISM Manufacturing Index for October came in at 46.7, against the consensus of 49.3 for the period. In September, the reported number was 49.
Per a government report, for the week ended Oct 27, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 0.8 million barrels from the previous week.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. AAPL rose 1.9%, while Microsoft Corporation MSFT jumped 2.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report United Therapeutics Corporation (UTHR) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Market News Wall Street closed higher on Wednesday after the Federal Reserve kept its interest rates unchanged.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report United Therapeutics Corporation (UTHR) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL rose 1.9%, while Microsoft Corporation MSFT jumped 2.4%. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU) and the Financials Select Sector SPDR (XLF) rose 1.9%, 1.5%, 1.2%, 1.1%, and 0.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report United Therapeutics Corporation (UTHR) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL rose 1.9%, while Microsoft Corporation MSFT jumped 2.4%. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC), the Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU) and the Financials Select Sector SPDR (XLF) rose 1.9%, 1.5%, 1.2%, 1.1%, and 0.7%, respectively.
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Shares of Apple Inc. AAPL rose 1.9%, while Microsoft Corporation MSFT jumped 2.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report United Therapeutics Corporation (UTHR) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. They're open to raising rates if inflation rises, but they're also worried that higher market-based interest rates could impact the economy.
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12760.0
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2023-11-02 00:00:00 UTC
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After Hours Most Active for Nov 2, 2023 : PENN, SQ, RSI, AAPL, GOOG, PFE, CSX, DKNG, QQQ, NU, RTX, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-2-2023-%3A-penn-sq-rsi-aapl-goog-pfe-csx-dkng-qqq-nu-rtx-bac
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The NASDAQ 100 After Hours Indicator is down -58.11 to 14,861.44. The total After hours volume is currently 105,099,532 shares traded.
The following are the most active stocks for the after hours session:
PENN Entertainment, Inc. (PENN) is -0.1 at $22.24, with 8,080,912 shares traded. PENN's current last sale is 76.69% of the target price of $29.
Block, Inc. (SQ) is +7.88 at $51.86, with 3,936,780 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
Rush Street Interactive, Inc. (RSI) is +0.01 at $3.76, with 3,006,060 shares traded. As reported by Zacks, the current mean recommendation for RSI is in the "buy range".
Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Smarter Analyst Reports: Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Alphabet Inc. (GOOG) is -0.18 at $128.40, with 2,812,856 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.66. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Pfizer, Inc. (PFE) is unchanged at $30.50, with 2,742,710 shares traded. PFE's current last sale is 80.26% of the target price of $38.
CSX Corporation (CSX) is -0.1859 at $30.20, with 2,446,480 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
DraftKings Inc. (DKNG) is +2.65 at $31.63, with 2,430,448 shares traded. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2%
Invesco QQQ Trust, Series 1 (QQQ) is -0.57 at $362.87, with 2,251,073 shares traded. This represents a 40.06% increase from its 52 Week Low.
Nu Holdings Ltd. (NU) is -0.07 at $8.16, with 2,064,401 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
RTX Corporation (RTX) is unchanged at $82.78, with 2,000,624 shares traded. RTX's current last sale is 96.82% of the target price of $85.5.
Bank of America Corporation (BAC) is -0.04 at $27.58, with 1,764,230 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.83. BAC's current last sale is 81.12% of the target price of $34.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024.
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Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2%
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Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. The total After hours volume is currently 105,099,532 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024.
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Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. The NASDAQ 100 After Hours Indicator is down -58.11 to 14,861.44. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2%
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12761.0
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2023-11-02 00:00:00 UTC
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US STOCKS-Wall Street indexes rally on bets of peak US interest rates, strong earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-indexes-rally-on-bets-of-peak-us-interest-rates-strong-earnings
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nan
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By Sinéad Carew and Amruta Khandekar
Nov 2 (Reuters) - Wall Street's three main stock indexes closed sharply higher on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign while a batch of upbeat quarterly financial updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, viewed as hints that the central bank is done with its rate hikes, sent longer-dated U.S. Treasury yields tumbling, which supported stocks.
"Powell's comments in the presser yesterday were what everyone wanted to hear," said Justin Burgin, vice president of equity research at Ameriprise Financial in Troy, Michigan.
Burgin also pointed to better-than-expectated earnings reports. While the current-quarter guidance has been weaker than previously expected, Burgin said analysts are still forecasting growth.
"The fact the wheels didn't come of the bus for the fourth quarter is pretty good," he said.
According to the latest LSEG data, Wall Street is now forecasting fourth-quarter earnings growth of 7.2%, down from 11% on Oct. 1, before the reporting season began. And for the third quarter, 80.9% of companies reporting so far have beat analysts' expectations while 14.9% have missed expectations.
According to preliminary data, the S&P 500 .SPX gained 80.30 points, or 1.89%, to end at 4,317.77 points, while the Nasdaq Composite .IXIC gained 233.40 points, or 1.79%, to 13,294.87. The Dow Jones Industrial Average .DJI rose 566.04 points, or 1.70%, to 33,840.62.
After stocks tumbled in October, "the set-up was well primed for a bit of a relief rally," said Emily Leveille, portfolio manager at Thornburg Investment Management in Santa Fe, New Mexico.
Investors were also reassured by the Fed's hints that it might pause rate hikes for now, she added.
Traders' bets that the Fed will hold rates steady in December rose to about 83% from 79.5% the previous day, according to CME Group's FedWatch tool.
Among individual stocks, StarbucksSBUX.O rallied sharply after the coffeehouse company's fourth-quarter results beat estimates. Also QualcommQCOM.O shares climbed after the chip designer forecast first-quarter sales and profit above estimates.
PayPalPYPL.O shares jumped as the payments giant raised its full-year adjusted profit forecast. AppleAAPL.O shares rose ahead of its report, which is due later on Thursday.
Other big stock movers included ModernaMRNA.O, which sold off after lowering its 2023 COVID-19 vaccine sales forecast.
Data released earlier in the day showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
This week's key economic data release will be the October non-farm payrolls report due on Friday.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Saumyadeb Chakrabarty, Maju Samuel and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O shares rose ahead of its report, which is due later on Thursday. By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes closed sharply higher on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign while a batch of upbeat quarterly financial updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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AppleAAPL.O shares rose ahead of its report, which is due later on Thursday. By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes closed sharply higher on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign while a batch of upbeat quarterly financial updates added to the bullish mood. According to the latest LSEG data, Wall Street is now forecasting fourth-quarter earnings growth of 7.2%, down from 11% on Oct. 1, before the reporting season began.
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AppleAAPL.O shares rose ahead of its report, which is due later on Thursday. By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes closed sharply higher on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign while a batch of upbeat quarterly financial updates added to the bullish mood. According to preliminary data, the S&P 500 .SPX gained 80.30 points, or 1.89%, to end at 4,317.77 points, while the Nasdaq Composite .IXIC gained 233.40 points, or 1.79%, to 13,294.87.
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AppleAAPL.O shares rose ahead of its report, which is due later on Thursday. By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes closed sharply higher on Thursday on hopes that the U.S. Federal Reserve has reached the end of its interest rate hiking campaign while a batch of upbeat quarterly financial updates added to the bullish mood. Burgin also pointed to better-than-expectated earnings reports.
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12762.0
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2023-11-02 00:00:00 UTC
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GLOBAL MARKETS-Stocks rally, dollar falls; investors bet Fed may be done hiking rates
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-rally-dollar-falls-investors-bet-fed-may-be-done-hiking-rates
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By Caroline Valetkevitch
NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows.
The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
Bond yields extended their move lower from Wednesday on relief that the U.S. Treasury Department announced smaller-than-expected increases in longer-dated Treasury supply.
Benchmark 10-year notes US10YT=RR yields were last down at 4.672% after touching 4.626%, the lowest since Oct. 13.
In stocks, the Dow Jones Industrial Average .DJI rose 499.02 points, or 1.5%, to 33,773.6, the S&P 500 .SPX gained 73.89 points, or 1.74%, to 4,311.75 and the Nasdaq Composite .IXIC added 221.13 points, or 1.69%, to 13,282.60.
The pan-European STOXX 600 index .STOXX rose 1.58% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.88%.
In foreign exchange, the U.S. dollar was broadly lower on the perception that U.S. rate had peaked, raising risk appetite.
"But at the same time, everyone is looking at a slowdown and inflation is going in the right direction," Bechtel said.
Markets now see a below-20% chance that U.S. rates will rise in December.
Bitcoin BTC=BTSP, sometimes traded as a proxy for risk-taking, broke above $35,000 to hit its highest level since May 2022.
Oil prices ended sharply higher in the wake of the Fed decision to leave rates unchanged, with U.S. crude futures settling at $82.46 a barrel, up $2.02, and Brent crude futures settling at $86.85, up $2.22.
Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. Apple, a bellwether for consumer demand and the tech sector, is expected to report a 1% decrease in quarterly revenue.
Also, U.S. non-farm payrolls data is due out on Friday. A tight labor market is considered a key factor in the outlook for interest rates.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
The race to raise rates https://tmsnrt.rs/45KHoZJ
(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London, Stella Qiu in Sydney, and Samuel Indyk in London; Editing by Emelia Sithole-Matarise, Susan Fenton, Richard Chang and Nick Macfie)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy. Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. Oil prices ended sharply higher in the wake of the Fed decision to leave rates unchanged, with U.S. crude futures settling at $82.46 a barrel, up $2.02, and Brent crude futures settling at $86.85, up $2.22.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
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Investors are keenly awaiting results from Apple AAPL.O, due after the closing bell. By Caroline Valetkevitch NEW YORK, Nov 2 (Reuters) - Global stock indexes jumped and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows. The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.
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12763.0
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2023-11-02 00:00:00 UTC
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US STOCKS-US indexes up more than 1% on strong earnings, bets of peak US interest rates
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AAPL
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https://www.nasdaq.com/articles/us-stocks-us-indexes-up-more-than-1-on-strong-earnings-bets-of-peak-us-interest-rates
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Qualcomm gains as Q1 forecast tops estimates
Starbucks rises on upbeat quarterly results
PayPal up on profit forecast raise
Weekly jobless claims stronger than expected
Indexes up: Dow 1.54%, S&P 1.75%, Nasdaq 1.67%
Updated at 02:19 p.m. ET/1719 GMT
By Sinéad Carew and Amruta Khandekar
Nov 2 (Reuters) - Wall Street's three main stock indexes all rallied more than 1% on Thursday on hopes that the U.S. Federal Reserve had reached the end of its interest rate hiking campaign, while a raft of upbeat corporate updates added to the bullish mood.
The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
The comments, which were perceived to be dovish, sent longer-dated U.S. Treasury yields tumbling. The 10-year Treasury note yield US10YT=RR was last down 12.4 basis points at 4.667%, tracking its biggest one-day decline since Oct. 10.
"The set-up was well primed for a bit of a relief rally. Markets have been under pressure for the last month," said Emily Leveille, portfolio manager at Thornburg Investment Management in Santa Fe, New Mexico.
"The market was starting to get worried the Fed was going to have to continue to raise rates." she said. "Then yesterday, we got hinting from the Fed they might be very inclined to pause rate hikes, at least for now and wait for some of the impact of the 500 basis point increase in rates that we've had over the last two years to flow through."
Traders' bets that the Fed will hold rates steady in December rose to about 83% from 79.5% the previous day, according to CME Group's FedWatch tool.
All three major stock indexes touched their highest levels since Oct. 19.
The Dow Jones Industrial Average .DJI rose 511.03 points, or 1.54%, to 33,785.61; the S&P 500 .SPX gained 74.11 points, or 1.75%, at 4,311.97; and the Nasdaq Composite .IXIC added 217.54 points, or 1.67%, at 13,279.01.
Mega-cap growth stocks Nvidia NVDA.O, Alphabet GOOGL.O and Tesla TSLA.O rose between about 1% and 6%.
All 11 major S&P 500 sectors rose, led by rate-sensitive real estate .SPLRCR stocks gaining more than 3%.
In earnings, QualcommQCOM.O climbed more than 5% after the chip designer forecast first-quarter sales and profit above Wall Street estimates.
PayPalPYPL.O advanced almost 7% as the payments giant raised its full-year adjusted profit forecast.
StarbucksSBUX.O jumped almost 11% after fourth-quarter results beat estimates, while drugmaker Eli LillyLLY.N jumped more than 4% after surpassing quarterly sales estimates.
AppleAAPL.O shares advanced just under 2% ahead of its quarterly numbers due after markets close on Thursday.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
This week's main data point is the October non-farm payrolls report due on Friday, which will offer more clarity on the state of the labor market.
Other big stock movers included ModernaMRNA.O, which dropped almost 8% after lowering its 2023 COVID-19 vaccine sales forecast.
Among gainers, data analytics firm Palantir TechnologiesPLTR.N rose almost 21% on forecasting quarterly revenue above estimates.
The Cboe Volatility index .VIX, also known as Wall Street's fear gauge, touched a three-week low.
Advancing issues outnumbered decliners on the NYSE by a 6.87-to-1 ratio; on Nasdaq, a 3.05-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and nine new lows; the Nasdaq Composite recorded 37 new highs and 123 new lows.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Saumyadeb Chakrabarty, Maju Samuel and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O shares advanced just under 2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.54%, S&P 1.75%, Nasdaq 1.67% Updated at 02:19 p.m. ET/1719 GMT By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes all rallied more than 1% on Thursday on hopes that the U.S. Federal Reserve had reached the end of its interest rate hiking campaign, while a raft of upbeat corporate updates added to the bullish mood. The Fed held interest rates steady on Wednesday as expected, and while Chair Jerome Powell left the door open to further tightening he also acknowledged the impact of a recent surge in bond yields on the economy.
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AppleAAPL.O shares advanced just under 2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.54%, S&P 1.75%, Nasdaq 1.67% Updated at 02:19 p.m. ET/1719 GMT By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes all rallied more than 1% on Thursday on hopes that the U.S. Federal Reserve had reached the end of its interest rate hiking campaign, while a raft of upbeat corporate updates added to the bullish mood. All three major stock indexes touched their highest levels since Oct. 19.
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AppleAAPL.O shares advanced just under 2% ahead of its quarterly numbers due after markets close on Thursday. Qualcomm gains as Q1 forecast tops estimates Starbucks rises on upbeat quarterly results PayPal up on profit forecast raise Weekly jobless claims stronger than expected Indexes up: Dow 1.54%, S&P 1.75%, Nasdaq 1.67% Updated at 02:19 p.m. ET/1719 GMT By Sinéad Carew and Amruta Khandekar Nov 2 (Reuters) - Wall Street's three main stock indexes all rallied more than 1% on Thursday on hopes that the U.S. Federal Reserve had reached the end of its interest rate hiking campaign, while a raft of upbeat corporate updates added to the bullish mood. "Then yesterday, we got hinting from the Fed they might be very inclined to pause rate hikes, at least for now and wait for some of the impact of the 500 basis point increase in rates that we've had over the last two years to flow through."
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AppleAAPL.O shares advanced just under 2% ahead of its quarterly numbers due after markets close on Thursday. The Dow Jones Industrial Average .DJI rose 511.03 points, or 1.54%, to 33,785.61; the S&P 500 .SPX gained 74.11 points, or 1.75%, at 4,311.97; and the Nasdaq Composite .IXIC added 217.54 points, or 1.67%, at 13,279.01. In earnings, QualcommQCOM.O climbed more than 5% after the chip designer forecast first-quarter sales and profit above Wall Street estimates.
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12764.0
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2023-11-02 00:00:00 UTC
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China iPhone sales strong, Apple tells investors as Huawei threat looms
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AAPL
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https://www.nasdaq.com/articles/china-iphone-sales-strong-apple-tells-investors-as-huawei-threat-looms
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By Yuvraj Malik and Stephen Nellis
Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies [RIC:RIC:HWT.UL] and other local smartphone makers.
"In mainland China, we set a quarterly record for the September quarter for iPhone," Chief Executive Tim Cook told Reuters in an interview. "We had four out of the top five best-selling smartphones in urban China."
Apple appeared to have gained market share in China in the July-September period, even if the overall smartphone market may have contracted, he said on a conference call with analysts.
The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said.
Research firm Canalys estimated that overall smartphone sales in China fell 3% in July-September from a year earlier as consumers bought fewer smartphones as an economic recovery was choppy.
That was slower pace of decline than previous quarters, a sign that a slump in the market had eased. Sales of iPhones in China fell 6%, Canalys said.
On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter. Its Mate 60 Pro phone has grabbed headlines for using an advanced China-made chip despite being squeezed for years by debilitating U.S. sanctions.
Apple said on Thursday that its overall sales in China dipped 2.5% but it blamed tough Mac computer and iPad sales for that. Cook said sales there grew after accounting for foreign-exchange rates.
Apple's sales in China have fallen in three of the four quarters in its 2023 fiscal year, which ended Sept. 30.
Apple's comments followed optimistic commentary from its chip supplier Qualcomm QCOM.O on Wednesday, which signaled that a two-year-long slump in the smartphone market was easing, led by a recovery in China.
QorvoQRVO.O, another wireless connectivity chip supplier to Apple, also said inventory levels at their China customers were slowly falling and that the company had recorded its largest bookings quarter in more than two years.
Both chipmakers posted upbeat forecasts, with Qualcomm predicting a 35% quarter-on-quarter rise in sales to Chinese smartphone customers.
Qualcomm is also facing new competition from Huawei's chips, but said on Wednesday it does not expect Huawei's re-entry into the market to affect its relationship with Chinese smartphone companies.
(Reporting by Yuvraj Malik in Bengaluru and Stephen Nellis in San Francisco, additional reporting by Arsheeya Bajwa and Harshita Varghese in Bengaluru; Writing by Sayantani Ghosh. Editing by Gerry Doyle)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies [RIC:RIC:HWT.UL] and other local smartphone makers. Apple's comments followed optimistic commentary from its chip supplier Qualcomm QCOM.O on Wednesday, which signaled that a two-year-long slump in the smartphone market was easing, led by a recovery in China. QorvoQRVO.O, another wireless connectivity chip supplier to Apple, also said inventory levels at their China customers were slowly falling and that the company had recorded its largest bookings quarter in more than two years.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies [RIC:RIC:HWT.UL] and other local smartphone makers. Research firm Canalys estimated that overall smartphone sales in China fell 3% in July-September from a year earlier as consumers bought fewer smartphones as an economic recovery was choppy. On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies [RIC:RIC:HWT.UL] and other local smartphone makers. The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said. Research firm Canalys estimated that overall smartphone sales in China fell 3% in July-September from a year earlier as consumers bought fewer smartphones as an economic recovery was choppy.
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By Yuvraj Malik and Stephen Nellis Nov 2 (Reuters) - Apple AAPL.O said on Thursday that demand for its iPhones in China was strong, trying to reassure investors who are worried it is losing ground to a newly resurgent Huawei Technologies [RIC:RIC:HWT.UL] and other local smartphone makers. The company expects to sell more iPhones in the holiday quarter despite this year's quarter having one fewer week of sales than the prior year's, Cook said. On the other hand, analysts estimate that Huawei's China smartphone sales grew strongly in the quarter.
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12765.0
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2023-11-01 00:00:00 UTC
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Warren Buffett Watch: Why the Oracle of Omaha Would Love This Top Restaurant Stock
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-watch%3A-why-the-oracle-of-omaha-would-love-this-top-restaurant-stock
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nan
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Chipotle Mexican Grill (NYSE: CMG) just reported its 2023 third quarter (for the period ended Sept. 30), posting revenue of $2.5 billion (up 11.3% year over year) and diluted earnings per share of $11.32 (up 23%). These numbers were well received by Wall Street, as shares were up about 5% since the announcement (as of Oct. 27).
Chipotle's headline figures were certainly impressive once again. However, if we dig a bit deeper, we'll see that there was one key factor that helped drive the results. This would make even Warren Buffett appreciate this top restaurant stock.
The clear sign of a great business
The management team, led by CEO Brian Niccol, mentioned an important component that helped the business during the last three-month period. Chipotle's menu prices, on average, were up about 2.8% versus the year-ago period. This was due to the fact that the company decided to increase its prices in August of this year, which was the first time such a thing happened since June 2021.
"We're really using menu pricing just to offset inflation," CFO Jack Hartung said on the Q3 2023 earnings call. Beef and queso were two items singled out that cost more.
What's encouraging is that there are no signs that consumers are resisting, as sales have shown strong growth. What's more, Q3 transaction counts jumped 4%.
Plus, there's evidence that Chipotle still has lots of untapped pricing power. A survey conducted by BTIG, a financial services firm, last year found that Chipotle's prices were cheaper than its key rivals, Qdoba and Moe's Southwest Grill. "Our value proposition has never been stronger," Niccol said during the call.
The added benefit of pricing power is the positive impact it has on a company's profitability. In Q3, Chipotle's gross margin and operating margin expanded from the same period in 2022.
"The single most important decision in evaluating a business is pricing power," Warren Buffett once said. "If you've got the power to raise prices without losing business to a competitor, you've got a very good business."
Berkshire Hathaway, the conglomerate headed by the Oracle of Omaha, has 47% of its equities portfolio in Apple. The tech giant has shown over the years that it can price its popular products at the higher end of the spectrum, and customers will still rush to buy them.
Is Chipotle stock a smart buy right now?
Investors might be thinking that because of its proven pricing power, Chipotle stock is a no-brainer buy. But I don't necessarily view this as being the correct move, at least not right now.
In the last five years, shares of this restaurant business have soared 331%, a gain that outpaces the S&P 500 by an incredibly wide margin. Due to this strong performance, the stock is expensive, trading at a price-to-earnings (P/E) ratio of 47.1. I believe this steep valuation might be the reason why Buffett doesn't own the stock.
To be fair, Chipotle's growth in the last few years has been nothing short of spectacular, especially when you consider what transpired. The coronavirus pandemic decimated the restaurant sector. Then, there was surging inflation and rapidly rising interest rates. These days, the U.S. economy faces a lot of uncertainty in the near term. But this company just keeps humming along, posting outstanding financial results.
I think the best thing to do is to add Chipotle to your watch list for now. Continue following and learning more about the business while practicing patience. The hope is that you can buy the stock at a more attractive valuation in the future.
10 stocks we like better than Chipotle Mexican Grill
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Chipotle Mexican Grill wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This was due to the fact that the company decided to increase its prices in August of this year, which was the first time such a thing happened since June 2021. A survey conducted by BTIG, a financial services firm, last year found that Chipotle's prices were cheaper than its key rivals, Qdoba and Moe's Southwest Grill. The tech giant has shown over the years that it can price its popular products at the higher end of the spectrum, and customers will still rush to buy them.
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"The single most important decision in evaluating a business is pricing power," Warren Buffett once said. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chipotle Mexican Grill.
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Investors might be thinking that because of its proven pricing power, Chipotle stock is a no-brainer buy. 10 stocks we like better than Chipotle Mexican Grill When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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"The single most important decision in evaluating a business is pricing power," Warren Buffett once said. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chipotle Mexican Grill.
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12766.0
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2023-11-01 00:00:00 UTC
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Apple's (AAPL) Q4 Earnings to Suffer from Weak Mac & iPad Sales
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-q4-earnings-to-suffer-from-weak-mac-ipad-sales
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Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business.
Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter.
Our model estimates for fiscal fourth-quarter Mac and iPad revenues are pegged at $7.88 billion and $5.82 billion, indicating 31.5% and 18.8% year-over-year decline, respectively.
We estimate Mac and iPad shipments of roughly 6 million and 14.3 million, respectively.
Mac revenues are expected to have suffered from weak PC demand. Per Gartner’s latest report, 64.279 million PCs were shipped in the third quarter (September-end) of 2023, down 9% from the year-ago period.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
Shipments from Apple, Lenovo LNVGY and Dell Technologies DELL declined 24.2%, 4.4% and 14.2%, respectively. HP’s HPQ shipment grew 6.4%, the only vendor in the list to witness growth.
Overall, Lenovo remained the top vendor, with a market share of 25.1%. HP holds the second spot, with a market share of 21% in worldwide PC shipments. Dell’s market share was 16.1% in the third quarter of 2023.
Apple’s market share decreased from 11.7% in third-quarter 2022 to 9.7% in third-quarter 2023.
In fact, Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have declined in the fiscal fourth quarter.
Our model estimates Wearables, Home & Accessories revenues of $9.2 billion, suggesting a 4.7% year-over-year decline.
Click here to know how Apple’s overall fiscal fourth-quarter results are likely to be.
Slowing Momentum at Services Key Concern
Apple’s growing dependence on Services business for growth is a concern. The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 25.9% of sales in third-quarter fiscal 2023.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow.
Apple had more than 1 billion paid subscribers across its Services portfolio at the end of the fiscal third quarter. This is expected to have increased in the to-be-reported quarter, thanks to the growing installed base of Apple’s devices, as well as the popularity of apps like Apple TV+.
This Zacks Rank #3 (Hold) company expects Services revenue growth to accelerate compared with the June quarter. Services revenues grew 8.2% year over year to $21.21 billion in the fiscal third quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model estimates for Services revenues are pegged at $20.39 billion, indicating 6.3% year-over-year growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Our model estimates for fiscal fourth-quarter Mac and iPad revenues are pegged at $7.88 billion and $5.82 billion, indicating 31.5% and 18.8% year-over-year decline, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Apple Inc. Revenue (TTM) Apple Inc. revenue-ttm | Apple Inc. Quote Shipments from Apple, Lenovo LNVGY and Dell Technologies DELL declined 24.2%, 4.4% and 14.2%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter.
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12767.0
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2023-11-01 00:00:00 UTC
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AAPL Factor-Based Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-6
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet.
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Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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12768.0
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2023-11-01 00:00:00 UTC
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After a 540% Rise, Why Does Warren Buffett Still Own Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/after-a-540-rise-why-does-warren-buffett-still-own-apple-stock
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nan
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nan
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Warren Buffett is known as one of the greatest investors ever. As the CEO of Berkshire Hathaway, he has a long and successful track record of allocating capital.
One of the conglomerate's most successful investments has been Apple (NASDAQ: AAPL), which it first purchased sometime in the first quarter of 2016. Since the start of that year to Oct. 27, 2023, the top FAANG stock has skyrocketed 540%, a gain that crushed the 153% rise of the Nasdaq Composite during that time.
But with a current market cap of $2.7 trillion and a trailing price-to-earnings ratio of 28.3, why does Buffett still own Apple shares? I think there are four likely reasons.
1. A forever stock
The Oracle of Omaha has previously stated that when he finds a wonderful business, his favorite holding period is forever. A quick look at Apple shows that this is a truly outstanding company.
Apple has a wide economic moat thanks to its strong brand. And because of its sticky ecosystem, there are significant switching costs for customers. Plus, the business has consistently been able to increase revenue and earnings throughout the years, all while generating massive amounts of free cash flow.
If Buffett believes the company is still on solid footing, then there's no reason to interrupt the compounding that's going on. Selling the position would also likely trigger a sizable tax bill for Berkshire.
2. Market-beating potential
Another possible reason Buffett still owns the stock is because he believes it still has the potential to beat the broader market. Its huge market cap and expensive valuation might reduce the chances of this happening, though, which is what most observers (me included) are thinking.
However, if Buffett still thinks Apple can generate strong returns over the next five years, then of course there's no reason to sell.
3. Passive income and increased ownership
With the more than 915 million shares it has, Berkshire currently owns a 5.9% stake in Apple. This easily makes it one of the company's largest shareholders.
For many years, investors wondered what Apple was going to do with all the cash it was generating. About a decade ago, the business started adopting a more shareholder-friendly capital allocation policy of paying dividends and repurchasing its own stock.
Through the first nine months of the current fiscal year, the Mac maker paid out $11.3 billion in dividends. This means that Berkshire received $667 million in passive income thanks to its equity position in the business. That's extremely valuable for the conglomerate because it can find ways to redeploy the cash to other parts of its sprawling operations.
And between the fiscal 2018 third quarter and today, Apple reduced its outstanding share count by 20%. This increases the ownership stake for Berkshire, which leads to a greater share of that dividend income over time.
4. Where to redeploy that cash?
When thinking about selling a holding, it's important to consider the opportunity cost. In other words, what potential returns would Berkshire forego if it exited its entire Apple position, which is valued at $157 billion right now?
Berkshire already has a massive amount of cash on its balance sheet worth about $147 billion (it includes cash, cash equivalents, and short-term investments). Buffett hasn't yet found any compelling opportunities to invest that capital. Selling Apple would add to this problem, leaving Berkshire with too much cash that would be earning an inadequate return.
Even given its huge size and arguably expensive valuation, perhaps Buffett sees Apple shares as a better investment than holding cash.
10 stocks we like better than Apple
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the conglomerate's most successful investments has been Apple (NASDAQ: AAPL), which it first purchased sometime in the first quarter of 2016. Since the start of that year to Oct. 27, 2023, the top FAANG stock has skyrocketed 540%, a gain that crushed the 153% rise of the Nasdaq Composite during that time. About a decade ago, the business started adopting a more shareholder-friendly capital allocation policy of paying dividends and repurchasing its own stock.
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One of the conglomerate's most successful investments has been Apple (NASDAQ: AAPL), which it first purchased sometime in the first quarter of 2016. Its huge market cap and expensive valuation might reduce the chances of this happening, though, which is what most observers (me included) are thinking. However, if Buffett still thinks Apple can generate strong returns over the next five years, then of course there's no reason to sell.
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One of the conglomerate's most successful investments has been Apple (NASDAQ: AAPL), which it first purchased sometime in the first quarter of 2016. However, if Buffett still thinks Apple can generate strong returns over the next five years, then of course there's no reason to sell. Even given its huge size and arguably expensive valuation, perhaps Buffett sees Apple shares as a better investment than holding cash.
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One of the conglomerate's most successful investments has been Apple (NASDAQ: AAPL), which it first purchased sometime in the first quarter of 2016. However, if Buffett still thinks Apple can generate strong returns over the next five years, then of course there's no reason to sell. For many years, investors wondered what Apple was going to do with all the cash it was generating.
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12769.0
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2023-11-01 00:00:00 UTC
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PREVIEW-Apple's holiday-quarter forecast faces threat from Huawei, weak China market
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AAPL
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https://www.nasdaq.com/articles/preview-apples-holiday-quarter-forecast-faces-threat-from-huawei-weak-china-market
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nan
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nan
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By Yuvraj Malik
Nov 1 (Reuters) - Apple investors will have one big question when the world's most valuable company reports earnings on Thursday - will Huawei's resurgence in China dampen its holiday-quarter expectations?
The company, which will post results for the July-September period, is grappling with an uneven recovery in the world's second-largest economy and tougher competition from Huawei after the Chinese firm's new Mate 60 Pro series phones saw strong early sales.
Apple's AAPL.O own iPhone 15 line-up has gotten off to a slow start in the crucial international market. Counterpoint estimates China sales of the latest series were nearly 5% lower compared with the iPhone 14 in the first 17 days after launch.
"Strength of the iPhone 15 cycle is the key question heading into the December quarter," Bernstein analysts said, adding that they expected "muted" sales of the device due to a lack of new features, strained consumer spending and competition from Huawei.
Huawei sold 1.6 million units of its Mate 60 Pro in six weeks, and brokerages such as Jefferies have said the firm could take back much of the market share in the coming years it lost to Apple after U.S. sanctions in 2019 hammered its business.
Those fears, as well as a wider pullback in tech stocks due to high interest rates, knocked Apple shares down nearly 14% in the three months to October-end, compared with the tech-heavy Nasdaq's .IXIC 11% decline in the same period.
But there are signs of an economic pick up in China. Data released last month showed the economy grew at a faster-than-expected clip of 4.9% in the third quarter - though less than the 6.3% expansion in the second quarter - while consumption and industrial activity also surprised on the upside in September.
The July-September period marks Apple's fiscal fourth quarter, and the company is expected to lay down a percentage target for sales growth for the October-December period - its fiscal first quarter that covers holiday-season shopping.
Wall Street analysts expect iPhone sales to rise about 6% in the October-December period, according to LSEG data. That is well below historical levels - barring 2022's holiday season quarter when Chinese COVID-19 curbs curtailed production of high-end iPhones, the average holiday quarter sales growth for the device has been 9.2% in the past four years.
However, the fiscal first-quarter projections suggest an improvement from an estimated increase of 2.8% for the three months ended September, marking the largest rise in iPhone sales since the start of this year.
Overall revenue is still expected to tick down nearly 1%, dragged by continued weakness in sales of the iPad and Mac, which are expected to fall 15% and 25%, respectively.
Apple earlier this week unveiled new MacBook Pro and iMac computers and three new chips to power them. The machines aimed at professional users, come at a time when the PC market is showing signs of a pick up after its over two-years-long slump.
The decline in global PC shipments slowed for a third straight quarter in the July-September period, a sign that the market has bottomed out, according to research firm IDC.
The global smartphone market contracted 8% in this period, according to Counterpoint.
The company's services business will likely be a bright spot, with estimated growth of 11.3%. The segment has often outpaced growth in Apple's hardware business in recent years and now accounts for nearly a quarter of its total revenue.
iPhone sales set to return to growth https://tmsnrt.rs/46aZpkl
(Reporting by Yuvraj Malik in Bengaluru, Writing by Aditya Soni; Editing by Saumyadeb Chakrabarty)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.O own iPhone 15 line-up has gotten off to a slow start in the crucial international market. By Yuvraj Malik Nov 1 (Reuters) - Apple investors will have one big question when the world's most valuable company reports earnings on Thursday - will Huawei's resurgence in China dampen its holiday-quarter expectations? The company, which will post results for the July-September period, is grappling with an uneven recovery in the world's second-largest economy and tougher competition from Huawei after the Chinese firm's new Mate 60 Pro series phones saw strong early sales.
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Apple's AAPL.O own iPhone 15 line-up has gotten off to a slow start in the crucial international market. The company, which will post results for the July-September period, is grappling with an uneven recovery in the world's second-largest economy and tougher competition from Huawei after the Chinese firm's new Mate 60 Pro series phones saw strong early sales. The July-September period marks Apple's fiscal fourth quarter, and the company is expected to lay down a percentage target for sales growth for the October-December period - its fiscal first quarter that covers holiday-season shopping.
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Apple's AAPL.O own iPhone 15 line-up has gotten off to a slow start in the crucial international market. "Strength of the iPhone 15 cycle is the key question heading into the December quarter," Bernstein analysts said, adding that they expected "muted" sales of the device due to a lack of new features, strained consumer spending and competition from Huawei. The July-September period marks Apple's fiscal fourth quarter, and the company is expected to lay down a percentage target for sales growth for the October-December period - its fiscal first quarter that covers holiday-season shopping.
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Apple's AAPL.O own iPhone 15 line-up has gotten off to a slow start in the crucial international market. Huawei sold 1.6 million units of its Mate 60 Pro in six weeks, and brokerages such as Jefferies have said the firm could take back much of the market share in the coming years it lost to Apple after U.S. sanctions in 2019 hammered its business. Wall Street analysts expect iPhone sales to rise about 6% in the October-December period, according to LSEG data.
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12770.0
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2023-11-01 00:00:00 UTC
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Better Buy: Apple vs. Coca-Cola
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-vs.-coca-cola
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nan
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nan
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are two of Warren Buffett's favorite stocks. Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) currently allocates a whopping 47% of its portfolio to Apple, making it the company's single largest investment, and another 7% to Coca-Cola, its third-largest investment.
Buffett loves both companies because they have unmatched brand appeal, generate plenty of cash, consistently repurchase their shares, and pay out steady dividends. But which of these iconic American brands is a better investment right now?
Image source: Apple.
Apple faces a tough near-term slowdown
Apple's revenue and earnings per share (EPS) grew 8% and 9%, respectively, in fiscal 2022 (which ended last September). But for fiscal 2023, analysts expect its revenue and EPS to decline 9% and 6%, respectively.
Three factors are causing that slowdown: the market's waning appetite for new iPhones (which accounted for 53% of its revenue in the first nine months of fiscal 2023), declining shipments of Macs in a post-pandemic market, and intense currency headwinds.
Apple also faces unpredictable macro and regulatory challenges in China (which accounted for a fifth of its revenue in the first nine months of fiscal 2023) as the tech and trade war between the U.S. and China intensifies.
Apple has been trying to diversify its supply chain away from China while selling more devices in higher-growth markets like India, but it could take at least a few more years for those strategies to move the needle.
On the bright side, Apple's services ecosystem locked in more than a billion paid subscribers as of the end of the third quarter. About 92% of iPhone users still plan to stick with Apple for their next smartphone purchase, according to ZipDo, and it will continue to expand its prisoner-taking ecosystem with new products like the Vision Pro.
The tech titan is sitting on $166 billion in cash and marketable securities -- which gives it plenty of room to grow through fresh investments and acquisitions -- and it already bought back nearly a fifth of its shares over the past five years. Apple's modest forward yield of 0.6% won't attract any serious income investors, but its low payout ratio of 16% suggests the company has plenty of room to increase the dividend as its business matures.
Coca-Cola continues to generate evergreen returns
Coca-Cola suffered a rare slowdown in 2020 as restaurants and other customers closed during the pandemic. But its organic sales grew 16% in both 2021 and 2022 as those headwinds eased. It expects its organic sales to grow 10% to 11% in 2023, even as inflation curbs the spending power of the average consumer.
Coca-Cola's stable growth has been driven by three long-term tailwinds: the diversification of its portfolio beyond carbonated drinks with teas, juices, sports drinks, bottled water, coffee, and even alcoholic beverages; revival of its flagship sodas with new flavors, smaller serving sizes, and healthier versions for younger consumers; and its evergreen brand appeal compared to other beverages. Those core strengths countered the bearish notion that Coca-Cola's business would eventually shrivel as soda consumption rates declined across the world.
Coca-Cola's adjusted EPS increased 7% in 2022, even as inflation boosted its commodity costs, and it expects another 7% to 8% growth in 2023. Those rock-solid growth rates enabled Coca-Cola to end its latest quarter with over $14 billion in cash, cash equivalents, and short-term investments.
The company continues to buy back its shares, but its share count still grew about 1% over the past five years as its stock-based compensation slightly offset buybacks.
Meanwhile, Coca-Cola has raised its dividend annually for 61 consecutive years and currently pays an attractive forward yield of 3.3%. Its sustainable payout ratio of 74% suggests it can continue to boost its dividend annually for the foreseeable future.
The valuations and verdict
Apple trades at 26 times forward earnings, while Coca-Cola has a lower forward multiple of 20. Those valuations might seem a bit high relative to their near-term growth rates, but that's because investors flocked to both stocks over the past year as inflation, rising rates, and other macro headwinds rattled the markets.
I believe Apple and Coca-Cola are both still reliable long-term investments. But if I had to pick one over the other right now, I'd stick with Coca-Cola because it's better diversified, it holds up better during deep economic downturns, its stock is cheaper, and it pays a much higher dividend.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 30, 2023
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are two of Warren Buffett's favorite stocks. About 92% of iPhone users still plan to stick with Apple for their next smartphone purchase, according to ZipDo, and it will continue to expand its prisoner-taking ecosystem with new products like the Vision Pro. The tech titan is sitting on $166 billion in cash and marketable securities -- which gives it plenty of room to grow through fresh investments and acquisitions -- and it already bought back nearly a fifth of its shares over the past five years.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are two of Warren Buffett's favorite stocks. Apple faces a tough near-term slowdown Apple's revenue and earnings per share (EPS) grew 8% and 9%, respectively, in fiscal 2022 (which ended last September). Apple's modest forward yield of 0.6% won't attract any serious income investors, but its low payout ratio of 16% suggests the company has plenty of room to increase the dividend as its business matures.
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are two of Warren Buffett's favorite stocks. Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) currently allocates a whopping 47% of its portfolio to Apple, making it the company's single largest investment, and another 7% to Coca-Cola, its third-largest investment. Apple faces a tough near-term slowdown Apple's revenue and earnings per share (EPS) grew 8% and 9%, respectively, in fiscal 2022 (which ended last September).
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Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) are two of Warren Buffett's favorite stocks. Apple faces a tough near-term slowdown Apple's revenue and earnings per share (EPS) grew 8% and 9%, respectively, in fiscal 2022 (which ended last September). But for fiscal 2023, analysts expect its revenue and EPS to decline 9% and 6%, respectively.
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12771.0
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2023-11-01 00:00:00 UTC
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Should Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-marketbeta-u.s.-1000-equity-etf-gusa-be-on-your-investing-radar-3
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.29 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.11%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.32%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 27.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 27.24% of total assets under management.
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF has gained about 10.48% so far this year and is up roughly 8.84% in the last one year (as of 11/01/2023). In the past 52-week period, it has traded between $32.40 and $39.71.
The ETF has a beta of 1.01 and standard deviation of 20.35% for the trailing three-year period. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GUSA is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $340.97 billion in assets, SPDR S&P 500 ETF has $389.46 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.29 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
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Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.72% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passively managed exchange traded fund launched on 04/05/2022.
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Ad Revenue Trends
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In this podcast, Motley Fool analyst Asit Sharma and host Deidre Woollard discuss:
Why this quarter has been so good for ad revenue, and if that might change.
How Meta's spending on virtual reality could pay off.
If Apple or Meta will triumph in the great headset race.
Motley Fool analyst Tim Beyers talks with author and New York University professor Melissa Schilling about traits shared by the world's greatest innovators.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Oct. 26, 2023
Deidre Woollard: Ad revenue is back, and that's good news for Meta Motley Fool Money Starts now. Welcome to Motley Fool Money. I'm Deidre Woollard here with Motley Fool Analyst, Asit Sharma. Asit good to see you again.
Asit Sharma: Deidre, so good to see you.
Deidre Woollard: Advertising is back I think yet this has been such an interesting week to look at earnings on yesterday's show. Ricky and Nick, they covered Alphabet, strong ad revenue, strong search revenue, strong story for YouTube. But we've got a similar story today with Meta Gap advertising revenue up 24% year over year. I think sometimes we get distracted by all of the other things that Alphabet and Meta do, but these are ad businesses. That's where the money is. This is only one quarter though. How should we be the thinking about this? I'm happy but I'm a little I'm cautious. How are you?
Asit Sharma: I think I'm cautious too, Deidre. I think this quarter reflects businesses that were previously shell-shocked last year, have slowly adjusted to the business environment. They're spending a little more. The caution is being cautiously pulled back. Businesses have to spend on advertising after all. To raise revenues and bring in the profits. I think that's good, but we're not out of the woods yet as you know, the macro environment is so volatile, interest rates are still sky high, seem to be ever climbing. Inflation is persistent, student loans are starting up against student loan payments. With this uncertain environment for discretionary spending among consumers, I wonder too. For me, two data points make a trend. Let's see, one more quarter like this among all these players and I might feel a little more comfortable.
Deidre Woollard: Yeah, I think so too. The GDP numbers came out today and they came out higher than expected. But consumers are feeling the pinch the savings rate is going down. It'll be interesting to see holiday season and the impact on that for these companies as well. I mean, when even Snap is getting solid ad revenue, I start to think maybe this is something real.
Asit Sharma: I know. Even Snap's making money.
Deidre Woollard: Exactly.
Asit Sharma: It's been a good quarter for advertisers.
Deidre Woollard: Well, so we've got the money coming in. But this is Mark Zuckerberg's year of efficiency and on theearnings call he made it clear he wants to keep that going. He likes where things have been and yet this is the huge ad yet is of course reality of labs. They are still spending like crazy on this $3.7 billion loss this quarter. They've said they're going to keep on spending, it's necessary for them to build out AR and VR. But at some point, this has to stop. At some point you can't just keep spending without any real benefit to it.
Asit Sharma: You have to stop at some point. I mean, what a couple $100 million in revenue. Then as you point out, a $3.7 billion loss. What is working in Mark Zuckerberg's favor of course, is that tremendous margin that comes from the advertising business and the fact that in tightening the belt in so many other spaces, I think he's bought a lot of goodwill among shareholders. Making the whole of the business more efficient gives him some leeway to continue with the losses even though they're significant in this one area. But I think at some point you'll have to show a better return on all this investment for shareholders to countenance it any further.
Deidre Woollard: Yeah, and I think one of the things that the analysts are looking for that came up on the call was, you're spending all this money, is this transferable to other areas? Is this benefiting things? CFO Susan Lee, she didn't quite give them the answer I thought they were looking for. She said most of the spends on headcount and costs related to directly to reality labs. It's pretty clear that what they're doing is directly related to just the AR and VR. It's not really going to go over and help the family of apps, which is of course where the money is made.
Asit Sharma: I think they actually can get some benefit out of that Deidre. I was surprised too at the answer that Susan Lee gave. When you think about reality labs, you and I think most members think of company within Meta that's trying to build out the Meta versus trying to build a virtual reality, immersive environment through the use of their audiovisual devices, and then some augmented reality which is blending physical and a virtual environment. But the things that they're investing in are wide, they're vast. If you ever have a chance to watch some videos on what exactly goes on in all these research dollars into reality labs. There's much investment in kinetic experiences.
There's much investment in understanding what happens when the human face smiles or frowns or raises an eyebrow and that has a direct application to the avatar business that Meta is in they're working on avatars once they get those to a super realistic degree of competence. You and I, because we're recording this audio in Zoom, I'm looking at your pleasant face just now and I can see you just reacted with a smile. Now imagine the avatars that can interpret simultaneously these micro-expressions and really give this realistic environment to both of us that we are in, like the synchronous communication environment. You actually don't need a VR experience for that. You don't even need an AR experience for that. That can conceivably occur over two laptops. If you can make the avatars very realistic and some of this investment, you can see how they can just port it over to other places. It doesn't have to exist solely within virtual reality, and I wish she had talked a little bit more about all the money that they've poured into bridging this divide between physical environments and virtual environments. What if the Meta verse fails? I think there's some yield there and I've said this before, I'm here on Motley Fool Money. I think business collaboration could be big for Meta. Now whether any of this gets commercialized or not truly is anyone's guess. I say if you're pumping in tens of billions of dollars over a multi-year period, there's got to be something that can translate and give you some decent revenue out of this.
Deidre Woollard: Yeah, I certainly hope so. I want to talk about the business aspect a little bit later, but first I want to talk about the gear. Meta has not had a great track record with devices. You had Facebook phone that didn't work, you have the Meta portal that did not take off. But when we were at the Motley Fool 1 event earlier this week, our colleague, Kirsten Guerra, she said she was looking at the Apple Vision Pro as one of the things that she thinks is going to be trans formative. I think Zuckerberg would prefer that she of course say Meta Quest or the Ray Band smart glasses. But there's this pressure right now to deliver the thing that goes on our face, and do you think that Apple or Meta is going to be the winner in this space? Obviously, Meta's device is far cheaper and they've had more swings here to make this work but it's Apple. How are you thinking about these two?
Asit Sharma: Deidre, it's Thursday. What you throw in such a hard question. The weekend is right in my sight. Let's see. Apple, their device is like seven times more expensive than the Meta Three. But it's a beautiful device from what we've seen and we know that it's going to deliver an unparalleled experience in some respects until we can actually try it out. I can't say that it's going to be a game changer or not, but certainly ditching the controller which use with the Meta Quest to something where you can just use hand gestures to control a pointer object like a mouse. I think that's so Apple delivering this bespoke experience. I'm sure the form factor is going to be elegant. It already looks great and the experiences are going to be immersive and they're going to be fun. We already know all this about Apple. The thing here that strikes me is a little different than other great products they've rolled out is just the delta of the next best product and this new product, I mean, it's an even bigger gulf than when the iPhone first came out versus the phones you could buy in the market. I do question the first generation, how much uptake it'll have at $3,500 per pair. But what we will see is a trickle-down effect. Meta will try to pack more features into its next versions and Apple will also work on second and third-generation devices where as they've done in the past, they'll give you some lower price points with fewer features. At some point, the two of those converge. Which ultimately wins out if I had to bet, I'd have to bet Apple just because of their track record with device in. What you point out about Meta stumbles. But I still feel that we shouldn't underestimate Meta's ability to make their device more widespread in the marketplace. Let's go Apple.
Deidre Woollard: Well, and I think it's interesting too, that Apple, they thought potentially about doing smart glasses. They decided that that wasn't the first swing for them. We've seen Google Glass with Meta keeps trying to make this happen. Snap that we talked about earlier didn't do well with it, the smart glasses thing. It's still hard for me to figure out that one. I think I'm more interested in the fully immersive headsets as a real changer, but we'll see.
Asit Sharma: Yeah, the Ray-Bans are sleek.
Deidre Woollard: They are sleek.
Asit Sharma: Meta partnered with Ray-Bans parent and you have actually a fun form factor for a lot of people. I do think since the last iterations of smart glasses that hit the marketplace, there seems to be more acceptance and fewer privacy concerns so I wouldn't be surprised to see this sell pretty well. This is, again, not like a VR or even mixed reality type device, it's simply smart glasses but you can take video, you can communicate with an AI agent through the day if you want. They look pretty sleek, not for me, but I can definitely see a generation of consumers maybe buying up and I believe the price point is just like 299 entry point, Deidre some where up there so not super expensive.
Deidre Woollard: Yeah, not too expensive. Well, you just mentioned AI agent and that brings us into talking a little bit about business which you teased earlier because one of the things that Meta is doing, you've talked about making the avatars, they're now creating AI for businesses and these agents, these experiences. The way they see it is basically every business is going to have an AI for customer interactions. They were already talking to bots probably more than we'd like to, but this is supposed to be better. But I have this question. This is one of the things I must really think about with this. If I'm spending my time with Meta to develop my AI agent, maybe I'm putting things into a large language model, I'm really working on this thing, you've got multiple apps, you've got like WhatsApp and Instagram and Facebook, but it's still a walled garden. Are companies going to have to invest in creating multiple AI avatar experiences across multiple customer input points, multiple walled gardens? It all seems like a lot of work for companies and a lot of money too.
Asit Sharma: A lot of work, a lot of money, and uncertain return. I think companies are going to pick one model and work with that on one Cloud provider or maybe one portal. Snowflake offers a portal for training, you can actually work directly with Nvidia depending on your industry. But I think that's more of what companies will do, whether it's Meta or another company. They'll choose a training model, a large language model, they'll figure out, with this provider, my dataset secure and then they'll experiment and no one is going to create multiple bots at this point in time on multiple platforms unless that ROI is there. If it doesn't improve your customer service, if it actually degrades it because you've got different bots giving different answers, you're not going to keep investing. I like that Meta is pushing this and I like that their large language model is open source, they're kneecapping the idea that other large language models will be proprietary and businesses will spend only on those. They're using a playbook they've used many times before, that's smart business on their part. But it does further, the AI cause it makes it easier for people to innovate. There's some mercenary goodwill that Meta is creating out there where their particular large language models is concerned.
Deidre Woollard: But I'm going to push back on that a little bit just because of the Cloud thing. Because companies, when they were first moving to the Cloud, they generally picked one horse. Now I've been listening to our friends Tim White and Tim Beyers talk a little bit about this. Now we're seeing more multi-cloud where companies are expanding out. I'm wondering if over time you start with one AI, but then you have different needs, different purposes and maybe it becomes multi AI the same way it becomes multi Cloud as it evolves, talking years in the future.
Asit Sharma: Not totally. Actually, Tim Beyers and I were having a slight conversation last night about multi Clouds and Cloud providers cooperating with each other to sell businesses so I'm with you there. What I was talking about is simply the context of, let's say, a customer facing bot on a Cloud provider where you're giving your dataset to the Cloud provider and working with their models. I don't think in that particular instance like where it's customer service, many businesses will want to do that on multiple platforms. But within businesses you could have different divisions who have no idea of what the other side is doing. One will be on an Nvidia platform in the future, one will be using Snowflake to maybe also go to Nvidia. Some will be on Amazon Web Services and their particular Cloud based AI training ground. I do see that for sure as businesses get used to working with AI models, there probably isn't going to be a single winner, one size solution. But for specific use cases that I don't see like you're going to use six different models for one purpose.
Deidre Woollard: That makes sense. Well, last quarter was just when Threads was starting to pick up and there was a lot of talk about it in theearnings calland a lot of excitement. This quarter, I think they mentioned it maybe twice, maybe three times. You've got about 100 million monthly actives who knows how active they really are but Zuckerberg said it'll take a few years but he thinks over time it could be a one million-person public conversation app that is more positive. Given that they're not really putting that much effort to it, do you think that that's actually correct? It didn't seem like there was that much enthusiasm for Threads at least this quarter.
Asit Sharma: I think it's personal with his rival Elon Musk. I think he wanted to say something about Threads just for the community to understand that they're still investing in it. But more telling was Zuckerberg spent more time talking about consumer-to-business conversations and how that's really getting monetized. Specifically, the example he used WhatsApp in India where he said some 60% of users have used a click to message interaction with a business. Meaning you see a businesses ad and you click to message them because you need something. I was just in India and I certainly experienced that myself. That really is going to be a more money maker for Meta is working on where businesses and consumers are interacting. I really don't see at this point the potential for Threads to be some great monetization engine. Still, the user interface needs work from, my experience, like browsing around and I see as we're talking you seem to be agreeing with me, Deidre. I think that was just like and we're still there, don't think we're not fully invested here. But look where the money is going, it's going into like pumping up that WhatsApp ad revenue, which is blossoming, frankly.
Deidre Woollard: The ad revenue and the growth of those business services that we talked about. One thing that wasn't in the earnings and that they can't really talk about is some of the regulatory concerns that Meta is facing. This week, you had multiple lawsuits come out from a variety of states and some joint lawsuit. Same company violated consumer protection laws related to how it markets to children and teens. Neither one of us is a lawyer, we don't know what happens next, but the thing I'm thinking about is the court of public opinion. Does this make a difference in how people start to consider using Meta's products and exposing their children to it when they turn 13 or even earlier.
Asit Sharma: This is a perceptive question, Deidre. It's hard to remember now, but before the pandemic, before all the investment in reality labs, before all this economic upheaval we had, Meta had the solid advertising business and it competed with its peers but seem like whenever retail investors and institutional investors were plugging valuation stuff into their models, they always valued Meta, then Facebook a little less versus peers with similar models. It never quite traded at the premium that it should have and why was that, it is because I believe investors were really concerned with their inept handling of privacy almost since Day 1, and that always seemed to hit their results. We saw lawsuits being filed in the past, we saw Meta, then Facebook as an organization, not really being the most stringent in terms of protecting user's privacy and this seems to be an ongoing issue with Meta, might be one reason among some others. I still don't own shares myself and part of that too is maybe an unease with the company. If you really don't value your customer's privacy, is that a company that I just personally want to invest in? I've never been able to get over that hump and here it flares up again in some of the lawsuits that you've mentioned. We'll see. I think that has the potential to be a drag on the valuation in the future. Right now, all the attention has been on, first the plunging of capital into reality labs and then this memory we had this year that wow, there's a great digital advertising business here and Zuck is cutting cost, so the stock has benefited but it's like now what. What happens from here and this would play into anyone's valuation thesis, I think because it's happened in the past and it's hit that valuation in the past.
Deidre Woollard: So much to consider with this one. Thanks for breaking it down with me Asit.
Asit Sharma: So much fun, Deidre. Thanks a lot for having me.
Deidre Woollard: The analysts you hear on the show have a whole other day job providing premium coverage and recommendations for the Motley Fool suite of stock investing services. We're giving our listeners a discount on Motley Fool's flagship service, it's called Stock Advisor. If you're interested in more analysis from our team, two stock recommendations per month and access to Stock Advisor's full scorecard of companies, visit www.fool.com/mfmdiscount.
Earlier this week at a special event for Motley Fool 1 members, Motley Fool analyst Tim Beyers interviewed Professor Melissa Schilling, author of the book, Quirky: The Remarkable Story of the Traits, Foibles, and Genius of Breakthrough Innovators Who Changed the World. They talked about the fascinating things she discovered while researching some of the world's greatest thinkers.
Tim Beyers: Melissa, thank you for being here. I think the mic is hot.
Melissa Schilling: Thank you for having me. It is hot.
Tim Beyers: Yes. Let's talk about breakthrough innovation and let's talk about maybe the most talked about breakthrough innovation right now, which is AI. Let's start there. Big picture first. Which companies to your mind, and based on the research you're doing, are most threatened by AI and which ones stand to profit the most, do you think? If you could name a couple.
Melissa Schilling: You want specific company names?
Tim Beyers: Well, or types of companies. If you've got some specific names, I know there are a lot of people here that would be very interested in that.
Melissa Schilling: Obviously Nvidia. You can't talk about AI without talking about Nvidia. I think that that's a really interesting story because I think they accidentally end up poised in a perfect place to capitalize on AI, in that they were developing extraordinary microprocessors and data processing capability for the video game industry and ended up basically creating products that are perfectly positioned to now be a dominant player in AI. They're doing a lot of the hard, heavy lifting of AI. I think also any company that's working in Cloud is going to be a big benefactor of AI because what AI is going to allow us to do is utilize a lot more data and a lot of companies that will adapt to AI won't have to do it in-house. They're going to do it via the Cloud and via Cloud service providers who are helping them tap the capabilities of AI without having to bring that capability in-house, which is something else I want to talk about AI if possible. First let me say something that's a trap. It's a trap to look across industries and think this industry will be decimated, that industry will be decimated. I think on average, that's not what we'll see. What we'll see is that AI is going to change what creates a winner in an industry versus a loser in an industry. I like to use an analogy, I'm a big fan of analogies because I think it makes it really concrete. But if we think about how spreadsheets affected the accounting profession. Spreadsheets like spreadsheet programs like it was Lotus 1, 2, 3 in the beginning.
Tim Beyers: Sure.
Melissa Schilling: Now Excel. They didn't put accountants out of business. Maybe a few accountants who decided, I don't want to work with spreadsheets. That's not for me. Those accountants probably ended up being.
Tim Beyers: I need my ledgers. Those accountants.
Melissa Schilling: Yes. Those accountants who want to use a pencil and a big adding machine. Those accountants are probably gone. But for most accountants, what it did was it enabled them to do more better, faster, more precise. More regular updating, more precise measures, more segment accounting, and so that's what you want to look for. Who are the players in an industry who are going to pick up this tool and use it to do bigger, better, more exciting things?
Tim Beyers: Taking that as gospel here for a minute, who do you think then is the group that's threatened by AI, the ones that don't want to do more, bigger, better?
Melissa Schilling: In my business, being a professor analyzing companies, you can spot them structurally sometimes. They tend to be companies that are older, that have really strong hierarchy and hierarchical norms. They're a little bit rigid. Counterintuitively also, very decentralized companies will have a harder time responding to the shifts that are required by AI. We tend to think of decentralized companies tend to be promoted as like flexible and fast, and they're really good at incremental innovation. But decentralized companies where you don't have a lot of authority at the center of the company, have a harder time making big systemic changes fast. For a big systemic change fast, it's easier if you can have more centralized control. On the one hand you want some centralized control to be able to make that change quickly, but you also want to have a company that embraces change where there's no sacred cows, there's not a lot of power distance, everyone has a voice. Companies who are being proactive about saying, OK, how do we disrupt ourselves instead of how do we defend our business? That's the positioning you want to look for. Also, frankly, companies that have some slack. Companies that have had some free cash flow that is leaving them sitting on a bit of capital where they feel comfortable that they can make bigger, bolder moves. Because in a company operating on razor thin margins, in an extremely competitive industry, they're looking a month out, a quarter out, it's very difficult for them to do big changes and to invest in those. They're going to perceive it as too risky.
Tim Beyers: Then we'll pivot to your book here. But that sounds like you just said industries where the profit margins are thin, you're looking out a quarter, maybe not five years. That sounds like retail, that sounds like consumer products, that sounds like in some industries that maybe are a little bit more industrial. Do you think that's fair?
Melissa Schilling: Well, again, I don't think it will serve us to label a whole industry as going to be a loser or a winner in AI.
Tim Beyers: But the structure of the company itself.
Melissa Schilling: The structure. I think retail is a great example of an industry that will be completely transformed by AI because it's a data heavy industry where you can really utilize that data. I think the ones that adopt AI early and aggressively are going to vastly outperform the ones that don't.
Tim Beyers: That makes a lot of sense. Well, this is interesting. Let's pivot then to breakthrough innovation because you wrote about this in your book, which is fantastic. I really think everybody should read this, particularly if you are investing in any way in Breakthrough Innovation. This book identifies, in a very thoughtful and narrative driven way, some of the greatest breakthrough innovators in history and I'm sure you are very familiar with the names. I'll name a couple. You mentioned Thomas Edmondson, you mentioned Albert Einstein, you mentioned Elon Musk, Steve Jobs.
Melissa Schilling: Marie Curie always have to include some women in there.
Tim Beyers: Yes, Marie Curie, which is a fascinating story as well. How should we be thinking about as investors, some of the key traits that you identify here? I'll focus in on one, which is separateness. I'd love for you to maybe define that a little bit. These breakthrough innovators have a view of separateness and you define it in a very interesting way. Can you talk a little bit about that?
Melissa Schilling: Yeah, sure. Let me first preface this by saying, before I started this project, I was working on a bunch of stuff related to networks, social networks, collaborative networks among firms, and so I really had this ex-ante expectation that innovators would turn out to be hyper connected. They would have these really big, robust, replete social networks that would enable them to get lots of ideas. Then I was very surprised to actually find that most of the Serial Breakthrough Innovators in my study, you couldn't help but call them anything else. They were separate, they were socially detached. Sometimes it was a personality trait, like extreme introversion. In Edison's case, he was deaf. Sometimes it was periods of depression or sickness like in the case of Curie or Tesla. Sometimes it almost looks like Aspergers, that's where Elon Musk said he has Aspergers. Einstein clearly had some little bit of spectrum disorder. But that separateness that it gave them that sense that they were different and that they didn't quite fit in with the social world, ended up being incredibly liberating. Because it meant first that they weren't socialized to buy into all the norms that everybody else had bought into. Norms can be constraining, paradigms can be constraining people who are extremely well indoctrinated or trained in a particular area have a harder time coming up with a radical innovation than people who haven't been indoctrinated in that way. Part of it is what you've been exposed to and what you've learned. If you've learned really well, what the field thinks works and doesn't work, that can trap you. In some sense these people who weren't part of the norm didn't have that trap. But there's a second side to it and that is that a lot of these people were also very rebellious. That was part of the separateness. They had this view that I'm not part of the social world, its rules don't apply to me. They were sometimes difficult people or people who didn't care that much what you thought of them. We certainly see that with Marie Curie, we see it with [inaudible]
Tim Beyers: See it with Steve Jobs and the Reality Distortion Field.
Melissa Schilling: Yeah. You see it with Elon Musk. He does not care what you think about him. Now the way that unfolds is multi faceted, shall we say. There's some ways in which he comes across is a jerk, like when he manages, he's not a warm, fuzzy manager at all. He has said things on Twitter that he shouldn't have said, in my opinion.
Tim Beyers: I think that's fair.
Melissa Schilling: Yeah. It's because he's a low self monitor and he doesn't care that much what you think of him. But that ends up serving him because you know most breakthrough ideas. The first time you see a breakthrough idea, you're generally not going to react favorably to it at all. Because it's going to feel weird, it's going to look jarring. It's a breakthrough because it breaks with something. It breaks with your expectations, or it breaks with the way we do things, or what we believe. Breakthrough innovations tend to be ugly and unsettling, and people who want the approval of others are going to have a real hard time both introducing those and sticking with them in the face of criticism. But if you are someone like Musk, he believes in his ideas. He doesn't care whether you do. He has confidence that he will make it work, whether you think you can or anyone else can or not. He sticks with these ideas, even when other people say that's dumb or that's impossible, or what are you thinking, it's almost a disagreeableness, but it's a very beneficial disagreeableness.
Tim Beyers: I mean, let's transpose this on ourselves and the Motley Fool. But all of us individually as investors. How can we foster a little breakthrough innovation in ourselves as investors, as people, as you know, people in the world. How do we do this for ourselves?
Melissa Schilling: There's probably three things I think are most effective I can do right away. One is, when you have an idea that you think a breakthrough innovation idea, don't show it to people early. Don't seek early feedback because there's only two feedback you'll get. You'll either get negative feedback or you get people blowing smoke up your backside because they want to make you happy. You probably won't get the useful feedback you were hoping for. You have to have enough conviction that if you believe it's a really cool idea, pursue it and elaborate it on your own, and wait for a while before you expose it to other people. That's one thing I would do.
Tim Beyers: Okay.
Melissa Schilling: Actually along with that I'm actually going to get sneak foreign here.
Tim Beyers: All right. Good.
Melissa Schilling: Forget about credentializing norms. One of the things you learn over and over again when you study breakthrough innovators is that they're very often outsiders. They may not have had the PhD that you were expecting, or they may not have worked for the company that you were expecting. Those credentializing norms are also homogenizing norms. Be confident in your ability to enter an industry that you aren't trained in, if you want to do something in an industry and you don't have the right degree for that area, don't let that stop you, and don't make that stop other people. The third one. Find your own idealistic mission. Find those things that you feel like would be worth doing, even if nobody pays you for it or pats you on the head for it. Because once you find those, that's going to make you work harder. Think bigger, move faster. That's really powerful. Then I had a fourth one and I just forgot what it was.
Tim Beyers: No, that's OK. I mean, I think what's interesting in what you just said, there maybe a bit of stubborn willingness to pursue the things that are very interesting to you. When you're looking at companies right now or maybe in some of your own work with start-ups, is there any identifying characteristic of say, like a stubborn willingness to do something that really stands out to you when you do your consulting work? Maybe a company you've run across or a founder you've run across?
Melissa Schilling: When you have a manager, for example, that understands what the big picture is and is willing to let go of current business to get to that big picture that's actually really powerful and that probably sounds really big. I'll give you a great, I'll give you a specific example from a company just down the street here, Bloomberg Corporation. I'll tell you something they were doing wrong and then something they did to turn it around. If that's OK. Am I allowed to talk about Bloomberg?
Tim Beyers: Yes, you can. We got five minutes. We can do it.
Melissa Schilling: It'll be really fast. Bloomberg was founded basically because Michael Bloomberg figured out that he could lay these computer lines between investment companies and get more information faster to people, instead of having bond runners, you could get the bond prices just beamed to you basically over a computer line. His whole original success and competitive advantage was quantity of data, speed. Those two things and what they would produce on their monitors were beautiful, visualizations and data that had been curated and calculated, that humans would perceive with their eyes. Investment bankers would look at that and process that data with their eyes. That was the whole business model. What that meant was that when mobile was just a baby, when smartphones were just coming up, it was very unattractive to Bloomberg. A mobile solution was not attractive because it was going to be not as fast, not as much data on a little bitty screen. Which was just so it wasn't very sexy to the company, there were not a lot of people who wanted to work in mobile because the metric of performance at Bloomberg had been speed.
Speed and data, cool algorithms, that just didn't compete with mobile. We did this exercise where we took apart the performance dimensions of their industry and thought about where the payoff was, where the utility payoff was for each of these dimensions. They came out of that realizing, Oh my God, we have to go mobile. Because mobile is where the room for more utility was, they'd actually basically maxed out speed from a human perspective, I'm like I asked them at one point, how fast are humans? You know, if your data is coming even faster, can investment bankers process that even faster? I got a lot of blank stares to that question. But we had this meeting and a big argument broke out. They ended up moving 60 people over to the mobile division and invented an award-winning mobile application that was crucial to the success of the company. That willingness to tear down parts of their own business model to move forward is super, super important.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and the motley fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Asit Sharma has positions in Amazon and Nvidia. Deidre Woollard has positions in Alphabet, Amazon.com, Apple, Meta Platforms, and Nvidia. Tim Beyers has positions in Alphabet, Amazon, Apple, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Nvidia, Snowflake, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Motley Fool analyst Tim Beyers talks with author and New York University professor Melissa Schilling about traits shared by the world's greatest innovators. What is working in Mark Zuckerberg's favor of course, is that tremendous margin that comes from the advertising business and the fact that in tightening the belt in so many other spaces, I think he's bought a lot of goodwill among shareholders. Right now, all the attention has been on, first the plunging of capital into reality labs and then this memory we had this year that wow, there's a great digital advertising business here and Zuck is cutting cost, so the stock has benefited but it's like now what.
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Are companies going to have to invest in creating multiple AI avatar experiences across multiple customer input points, multiple walled gardens? Earlier this week at a special event for Motley Fool 1 members, Motley Fool analyst Tim Beyers interviewed Professor Melissa Schilling, author of the book, Quirky: The Remarkable Story of the Traits, Foibles, and Genius of Breakthrough Innovators Who Changed the World. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Nvidia, Snowflake, and Tesla.
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Well, you just mentioned AI agent and that brings us into talking a little bit about business which you teased earlier because one of the things that Meta is doing, you've talked about making the avatars, they're now creating AI for businesses and these agents, these experiences. I think also any company that's working in Cloud is going to be a big benefactor of AI because what AI is going to allow us to do is utilize a lot more data and a lot of companies that will adapt to AI won't have to do it in-house. Be confident in your ability to enter an industry that you aren't trained in, if you want to do something in an industry and you don't have the right degree for that area, don't let that stop you, and don't make that stop other people.
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But I think that's more of what companies will do, whether it's Meta or another company. In some sense these people who weren't part of the norm didn't have that trap. Melissa Schilling: When you have a manager, for example, that understands what the big picture is and is willing to let go of current business to get to that big picture that's actually really powerful and that probably sounds really big.
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12773.0
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2023-11-01 00:00:00 UTC
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GRAPHIC-Mega-cap firm valuations fall amid rising rates, tech earnings concerns
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AAPL
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https://www.nasdaq.com/articles/graphic-mega-cap-firm-valuations-fall-amid-rising-rates-tech-earnings-concerns
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nan
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nan
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Corrects Alphabet instrument code in paragraph 2
Nov 1 (Reuters) - Most global mega-cap stocks continued their slide in October, hit by the rise in U.S. interest rates and lacklustre third-quarter earnings growth among some top U.S. tech firms.
Google parent Alphabet's GOOGL.O market capitalization dropped nearly 6% to $1.56 trillion at the end of October, as its cloud business faced its slowest growth in 11 quarters, primarily due to reduced corporate spending on cloud-related services in response to the global economic slowdown.
Tesla's TSLA.O market value tumbled almost 20% to $638 billion last month, largely due to the impact of rising U.S. interest rates on electric vehicle (EV) demand. Additionally, Panasonic Holdings, a key supplier to Tesla, announced a reduction in automotive battery production in Japan for the September quarter, highlighting a global slowdown in EV sales.
U.S. chipmaker Nvidia Corp's NVDA.O market cap dropped 6.3% to $1.01 trillion at the end of last month on reports it may be forced to cancel up to $5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions.
On the other hand, Microsoft's MSFT.O market value jumped 7.1% to $2.5 trillion, buoyed by its strong fiscal first-quarter results in all segments. This growth was attributed to strong performances in cloud computing and PC businesses, bolstered by increased customer interest in its artificial intelligence offerings.
Meanwhile, Saudi Arabian Oil Co's 2222.SE market cap slumped nearly 5% to $2.1 trillion, affecting by ongoing conflict in the Middle East and a decline in oil prices.
Top 20 companies in the world by market cap Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8
Change in market cap in October Change in market cap in October https://tmsnrt.rs/47cjbgK
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru Editing by Mark Potter)
((patturaja.muruga@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Corrects Alphabet instrument code in paragraph 2 Nov 1 (Reuters) - Most global mega-cap stocks continued their slide in October, hit by the rise in U.S. interest rates and lacklustre third-quarter earnings growth among some top U.S. tech firms. Google parent Alphabet's GOOGL.O market capitalization dropped nearly 6% to $1.56 trillion at the end of October, as its cloud business faced its slowest growth in 11 quarters, primarily due to reduced corporate spending on cloud-related services in response to the global economic slowdown. U.S. chipmaker Nvidia Corp's NVDA.O market cap dropped 6.3% to $1.01 trillion at the end of last month on reports it may be forced to cancel up to $5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions.
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Google parent Alphabet's GOOGL.O market capitalization dropped nearly 6% to $1.56 trillion at the end of October, as its cloud business faced its slowest growth in 11 quarters, primarily due to reduced corporate spending on cloud-related services in response to the global economic slowdown. U.S. chipmaker Nvidia Corp's NVDA.O market cap dropped 6.3% to $1.01 trillion at the end of last month on reports it may be forced to cancel up to $5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions. Top 20 companies in the world by market cap Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8 Change in market cap in October Change in market cap in October https://tmsnrt.rs/47cjbgK (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru Editing by Mark Potter) ((patturaja.muruga@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Google parent Alphabet's GOOGL.O market capitalization dropped nearly 6% to $1.56 trillion at the end of October, as its cloud business faced its slowest growth in 11 quarters, primarily due to reduced corporate spending on cloud-related services in response to the global economic slowdown. U.S. chipmaker Nvidia Corp's NVDA.O market cap dropped 6.3% to $1.01 trillion at the end of last month on reports it may be forced to cancel up to $5 billion worth of advanced chip orders to China in compliance with new U.S. government restrictions. Top 20 companies in the world by market cap Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8 Change in market cap in October Change in market cap in October https://tmsnrt.rs/47cjbgK (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru Editing by Mark Potter) ((patturaja.muruga@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Corrects Alphabet instrument code in paragraph 2 Nov 1 (Reuters) - Most global mega-cap stocks continued their slide in October, hit by the rise in U.S. interest rates and lacklustre third-quarter earnings growth among some top U.S. tech firms. Google parent Alphabet's GOOGL.O market capitalization dropped nearly 6% to $1.56 trillion at the end of October, as its cloud business faced its slowest growth in 11 quarters, primarily due to reduced corporate spending on cloud-related services in response to the global economic slowdown. Tesla's TSLA.O market value tumbled almost 20% to $638 billion last month, largely due to the impact of rising U.S. interest rates on electric vehicle (EV) demand.
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12774.0
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2023-11-01 00:00:00 UTC
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Is Apple Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-2
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nan
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nan
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As the world's most valuable company with a market cap of $2.6 trillion, it's always a good idea to keep Apple (NASDAQ: AAPL) on your radar for a potential investment. The company has a long history of delivering significant gains to patient investors. In fact, since Warren Buffett's holdings company Berkshire Hathaway first invested in 2016, Apple's stock has soared 540%.
The company hasn't had it easy this year, with macroeconomic headwinds causing reductions in consumer spending and repeated declines in product sales. As a result, shares in Apple tumbled almost 15% over the last three months.
However, it remains a dominating figure in tech with almost unrivaled brand loyalty from its users. Apple has much to gain from the market's inevitable recovery and is making promising headway in multiple digital sectors, which are less vulnerable to economic challenges.
So, here's why Apple is a screaming buy for long-term-minded investors.
It could be worth buying the dip
It's not often Apple's stock goes on sale, and it's currently trading at one of its lowest positions in the last six months. While the stock dip has been unfortunate for current investors, it has also reduced the cost of entry for new ones.
The company's price-to-earnings ratio currently sits at about 28, also one of its lowest points since May and significantly below the same metric for competitors Amazon and Microsoft. The figure indicates Apple shares offer far more value than both companies, making it a bargain among big tech stocks.
Moreover, despite declines in product sales this year, Apple's financials are solid. The company regularly posts more than $100 billion in annual free cash flow. Meanwhile, in the third quarter of 2023, the company reported $166 billion in cash and marketable securities. The tech giant's balance sheet suggests it has the resources to overcome poor economic conditions and continue investing in its business. As a result, its stock could be an excellent investment to buy now and hold over many years.
Apple is expanding beyond products
Close to 50% of Apple's revenue comes from iPhone sales, which means a significant portion of its business is vulnerable to economic fluctuation. However, the company is working to rectify this by expanding into more digital sectors, decreasing its dependency on product sales over the long term.
In 2019, Apple made a major push into digital services, launching subscription-based products Apple TV+, News+, Fitness+, and Arcade, all within a few months.
The platforms significantly expanded the company's services segment, which already included income from the App Store, iCloud, and Music. The expansion has proved a massive success, with services now Apple's second-highest-earning segment after the iPhone and growing rapidly.
Services revenue rose 8% year over year in Q3 2023, outperforming the iPhone, which declined by 2%. Meanwhile, services offer attractive profit margins, generally at about 70%, while the same metric for products hovers at around 35%.
Digital services are a particularly lucrative area for Apple and are on a trajectory to eventually surpass its iPhone segment, fortifying its business against macro factors over the long term.
Additionally, Apple is gradually moving into artificial intelligence (AI), a market projected to expand at a compound annual growth rate of 37% through 2030.
CEO Tim Cook told Reuters in August that the company's over $3 billion increase in research and development spending in Q3 2023 was mainly focused on generative AI. Apple's research has seen it gradually bring AI upgrades across its product lineup this year, improving user experience.
Apple's long-term plan remains to be seen, but there will likely be countless opportunities to monetize its AI offerings in the coming years. Meanwhile, its dominance in tech, loyalty from consumers, and history of success when entering new segments could see it become a major player in the industry over the long term.
Alongside strong financials and a recent dip in its share price, Apple's stock is too good to pass up right now.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As the world's most valuable company with a market cap of $2.6 trillion, it's always a good idea to keep Apple (NASDAQ: AAPL) on your radar for a potential investment. Digital services are a particularly lucrative area for Apple and are on a trajectory to eventually surpass its iPhone segment, fortifying its business against macro factors over the long term. CEO Tim Cook told Reuters in August that the company's over $3 billion increase in research and development spending in Q3 2023 was mainly focused on generative AI.
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As the world's most valuable company with a market cap of $2.6 trillion, it's always a good idea to keep Apple (NASDAQ: AAPL) on your radar for a potential investment. In fact, since Warren Buffett's holdings company Berkshire Hathaway first invested in 2016, Apple's stock has soared 540%. Apple is expanding beyond products Close to 50% of Apple's revenue comes from iPhone sales, which means a significant portion of its business is vulnerable to economic fluctuation.
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As the world's most valuable company with a market cap of $2.6 trillion, it's always a good idea to keep Apple (NASDAQ: AAPL) on your radar for a potential investment. The figure indicates Apple shares offer far more value than both companies, making it a bargain among big tech stocks. Apple is expanding beyond products Close to 50% of Apple's revenue comes from iPhone sales, which means a significant portion of its business is vulnerable to economic fluctuation.
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As the world's most valuable company with a market cap of $2.6 trillion, it's always a good idea to keep Apple (NASDAQ: AAPL) on your radar for a potential investment. It could be worth buying the dip It's not often Apple's stock goes on sale, and it's currently trading at one of its lowest positions in the last six months. Apple is expanding beyond products Close to 50% of Apple's revenue comes from iPhone sales, which means a significant portion of its business is vulnerable to economic fluctuation.
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12775.0
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2023-11-01 00:00:00 UTC
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Will Apple’s (NASDAQ:AAPL) Hardware Sales Disappoint in Q4?
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AAPL
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https://www.nasdaq.com/articles/will-apples-nasdaq%3Aaapl-hardware-sales-disappoint-in-q4
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nan
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nan
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Technology giant Apple (NASDAQ:AAPL) will release its fourth quarter Fiscal 2023 financial results on Thursday, November 2. However, analysts’ revenue forecast indicates that the company’s hardware sales may disappoint in Q4.
Let’s delve into Q4 expectations.
Apple’s Q4 Sales Could Remain Muted
Analysts expect Apple to generate revenue of $89.34 billion in Q4, representing a year-over-year decline of approximately 1% from $90.15 billion in the prior-year quarter. Analysts’ Q4 sales estimate reflects a continued weakness in Apple’s hardware sales.
Investors should note that the company’s hardware sales have declined during the third quarter, with its iPhone revenue decreasing by 2%. In addition, it registered a decline of 7% and 20% in Mac and iPad sales, respectively, during the same period. Apple’s management said during the Q3 conference call that its iPhone and Services revenue could show sequential improvement. However, Mac and iPad revenue could register a double-digit decline due to the tough year-over-year comparisons.
While Apple’s Q4 top line could remain muted, its bottom line is expected to show an improvement both on a sequential and year-over-year basis. Analysts expect Apple to post an EPS of $1.39, up from $1.29 in the prior-year quarter. AAPL’s cost-saving measures and favorable mix shift towards Services will cushion its bottom line. With this backdrop, let’s look at what the analysts suggest for Apple stock ahead of fourth-quarter earnings.
Is Apple a Good Stock to Buy Right Now?
Analysts remain cautiously optimistic about Apple stock ahead of Q4 earnings, given the short-term headwinds. Jefferies analyst Andrew Uerkwitz lowered his 2024 revenue and earnings estimates for Apple ahead of the Q4 print. The analyst stated that the lengthening replacement cycle and competitive challenges in China could hurt the company’s performance. Uerkwitz lowered his price target to $195 from $200 on October 30. Nonetheless, the analysts reiterated the Buy recommendation.
Including Uerkwitz, 22 analysts have rated Apple stock a Buy. At the same time, nine analysts maintain a Hold. Overall, Apple has a Moderate Buy consensus rating on TipRanks. Further, analysts’ average AAPL stock price target of $203.35 implies 19.08% upside potential from current levels.
Insights from Options Trading Activity
Options traders are pricing in a +/- 4.12% move on earnings, slightly lower than the previous quarter’s earnings-related move of -4.80%.
Bottom Line
Apple’s top and bottom lines are expected to benefit from the strength of the Services segment and favorable mix. However, weakness in Mac and iPad sales is expected to put pressure on its overall revenue, as evidenced by the analysts' consensus rating of Moderate Buy.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology giant Apple (NASDAQ:AAPL) will release its fourth quarter Fiscal 2023 financial results on Thursday, November 2. Further, analysts’ average AAPL stock price target of $203.35 implies 19.08% upside potential from current levels. AAPL’s cost-saving measures and favorable mix shift towards Services will cushion its bottom line.
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Technology giant Apple (NASDAQ:AAPL) will release its fourth quarter Fiscal 2023 financial results on Thursday, November 2. AAPL’s cost-saving measures and favorable mix shift towards Services will cushion its bottom line. Further, analysts’ average AAPL stock price target of $203.35 implies 19.08% upside potential from current levels.
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Technology giant Apple (NASDAQ:AAPL) will release its fourth quarter Fiscal 2023 financial results on Thursday, November 2. AAPL’s cost-saving measures and favorable mix shift towards Services will cushion its bottom line. Further, analysts’ average AAPL stock price target of $203.35 implies 19.08% upside potential from current levels.
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Technology giant Apple (NASDAQ:AAPL) will release its fourth quarter Fiscal 2023 financial results on Thursday, November 2. AAPL’s cost-saving measures and favorable mix shift towards Services will cushion its bottom line. Further, analysts’ average AAPL stock price target of $203.35 implies 19.08% upside potential from current levels.
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12776.0
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2023-11-01 00:00:00 UTC
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Spotify electrifies on its metrics. Time to buy?
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AAPL
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https://www.nasdaq.com/articles/spotify-electrifies-on-its-metrics.-time-to-buy
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nan
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nan
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Global streaming audio platform Spotify Technology SA (NASDAQ: SPOT) had an impressive third quarter of 2023. Its metrics have improved, and the integration of artificial intelligence (AI) into its platform is making noticeable improvements in its business. Spotify has used personalization as a key growth driver, and AI is a large part of that.
Spotify grew its monthly active users (MAUs) by 26% YoY to 574 million in the quarter.
The company also raised its MAU estimates by over 3 million users above analyst estimates for Q4 2023. It expects to reach one billion users by 2030.
AI integration bolsters Spotify operations and user experience.
Generative AI has been integrated into its platform in many ways. AI creates a personalized experience for individual users with music recommendations based on their history and preferences. AI creates personalized playlists like Daily Mix and Discover Weekly. In a survey, 81% of its users cited personalization as the most admired feature of its service.
How AI is improving advertising spend and lowering costs
AI is used for improved ad targeting based on user history, preferences, geographies and demographics. This is to match up users who may be more interested in selective advertiser products and services. This makes the ad spend more productive for brands. Generative AI is being used to create audio ads tailored to each individual.
Generative AI enables the cost of ad creatives to come down while scaling it in numerous ways. It enables the company to use the same voice actor to do a single recording that can be translated into multiple languages and tweaked and tailored to the individual to generate thousands of different ads from a single voice.
King of the streaming music mountain
Spotify is the global leader in the streaming music and audio segment. Spotify has over 100 million tracks, five million podcast titles and over 350,000 audiobooks. It holds a 30.5% market share, followed by Apple Inc. (NASDAQ: AAPL), Apple Music service at 13.7%, and Amazon.com Inc. (NASDAQ: AMZN) Amazon Music service at 13.3%.
It also faces competition from Alphabet Inc. (NASDAQ: GOOGL), Sirius XM Holdings Inc. (NASDAQ: SIRI), and iHeartMedia Inc. (NASDAQ: IHRT).
Premium subscription versus ad-supported
Spotify’s premium subscriptions drive nearly 87% of total sales compared to 13% for its ad-supported free streaming service. However, premium subscription revenues experienced slight deceleration with 16% growth to 226 million users versus the 32% YoY growth for ad-supported.
Spotify raised the price for its individual subscription plans in the U.S. over 50 markets for the first time and didn't see any meaningful net subscriber drop. Premium users as a percentage of monthly active users has been falling compared to the rest of the world (ROW) region. ROW saw its MAU mix rise from 13% in Q1 2019 to 31% in Q3 2023.
Gross margins trending higher into 2024
Spotify grew gross margins 40 bps higher than its estimates to 26.4%, expected to continue in 2024. Music gross margins rose 29.1%, driven by Marketplace. Ad revenues gross margins climbed 9.3% in the past 1.5 years. The podcast has dragged gross margins, but it's expected to break even soon.
Improving financials
On Oct. 24, 2023, Spotify released its fiscal third-quarter 2023 results for the quarter ending September 2022. Revenues grew 10.6% YoY to eur3.36 billion, beating consensus analyst estimates of eur3.33 billion. The Company reported GAAP EPS of eur0.33, excluding non-recurring items versus consensus analyst estimates for a loss of (eur0.22), beating estimates by eur0.55.
Monthly active users (MAUs) rose 26% to 574 million, beating analyst estimates of 572 million. Premium subscribers rose 16% YoY to 226 million users. The company announced the launch of its groundbreaking audiobooks for premium subscribers.
Spotify CEO and founder Daniel Ek commented, “In the first two weeks since launch, premium subs in these two markets love the breadth of titles and have already listened to over 28% of the catalog. They're flocking to fiction, memoirs, sci-fi and fantasy. And I can't wait to see what US subscribers gravitate towards when we launch there soon.”
In-line guidance
Spotify provided in-line guidance for Q4 2023 with revenues of eur3.7 billion versus eur3.69 billion consensus analyst estimates. The company expects MAUs of 601 million, 3 million more than consensus analyst estimates. Total premium users are expected to rise to 235 million, and gross margins of 26.6%.
Bank of America reiterates buy rating
The strong Q3 2023 performance earned Spotify a Bank of America reiteration of its Buy rating and a price target of $185. The firm cited that the deeper penetration in existing markets and improved advertising coupled with price hikes should continue to improve its margins. All key metrics came in ahead of Bank of America's estimates.
Spotify's Q4 2023 estimates exceed the bank's targets of EUR3.7 billion in revenues, 586 million users, and 233 million premium subscribers. It also expects to witness the full impact of Spotify's price increases in the fourth quarter.
Spotify Technology analyst ratings and price targets are at MarketBeat. Spotify Technology peers and competitor stocks can be found with the MarketBeat stock screener.
Daily symmetrical triangle
The daily candlestick chart on SPOT illustrates a symmetrical triangle pattern. This pattern comprises a descending upper trendline and an ascending lower trendline at the apex point. As the stock progresses toward the apex point, it will either break out through the upper trendline or down through the lower trendline.
Symmetrical triangles usually make three points of contact before breaking. SPOT gapped over $171 on its earnings report, indicating a breakout. However, shares have experienced a reversion back to retest the gap fill and bounce off the daily market structure low (MSL) trigger at $159.67. The relative strength index (RSI) is still attempting to coil above the 50-band. Pullback support levels are at $151.11, $145.79, $133.88 and $129.23.
The article "Spotify electrifies on its metrics. Time to buy?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It holds a 30.5% market share, followed by Apple Inc. (NASDAQ: AAPL), Apple Music service at 13.7%, and Amazon.com Inc. (NASDAQ: AMZN) Amazon Music service at 13.3%. Spotify raised the price for its individual subscription plans in the U.S. over 50 markets for the first time and didn't see any meaningful net subscriber drop. Spotify CEO and founder Daniel Ek commented, “In the first two weeks since launch, premium subs in these two markets love the breadth of titles and have already listened to over 28% of the catalog.
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It holds a 30.5% market share, followed by Apple Inc. (NASDAQ: AAPL), Apple Music service at 13.7%, and Amazon.com Inc. (NASDAQ: AMZN) Amazon Music service at 13.3%. How AI is improving advertising spend and lowering costs AI is used for improved ad targeting based on user history, preferences, geographies and demographics. Monthly active users (MAUs) rose 26% to 574 million, beating analyst estimates of 572 million.
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It holds a 30.5% market share, followed by Apple Inc. (NASDAQ: AAPL), Apple Music service at 13.7%, and Amazon.com Inc. (NASDAQ: AMZN) Amazon Music service at 13.3%. How AI is improving advertising spend and lowering costs AI is used for improved ad targeting based on user history, preferences, geographies and demographics. Monthly active users (MAUs) rose 26% to 574 million, beating analyst estimates of 572 million.
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It holds a 30.5% market share, followed by Apple Inc. (NASDAQ: AAPL), Apple Music service at 13.7%, and Amazon.com Inc. (NASDAQ: AMZN) Amazon Music service at 13.3%. Its metrics have improved, and the integration of artificial intelligence (AI) into its platform is making noticeable improvements in its business. Total premium users are expected to rise to 235 million, and gross margins of 26.6%.
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12777.0
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2023-11-01 00:00:00 UTC
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After Hours Most Active for Nov 1, 2023 : PPL, HST, RTX, ENB, DEN, AMZN, VONG, TFC, AAPL, AES, ACWI, TQQQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-1-2023-%3A-ppl-hst-rtx-enb-den-amzn-vong-tfc-aapl-aes-acwi
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 10.37 to 14,675.28. The total After hours volume is currently 90,734,173 shares traded.
The following are the most active stocks for the after hours session:
PPL Corporation (PPL) is unchanged at $24.70, with 4,185,124 shares traded.PPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago
Host Hotels & Resorts, Inc. (HST) is unchanged at $15.60, with 3,624,307 shares traded. As reported by Zacks, the current mean recommendation for HST is in the "buy range".
RTX Corporation (RTX) is -0.13 at $82.02, with 2,995,688 shares traded. RTX's current last sale is 95.93% of the target price of $85.5.
Enbridge Inc (ENB) is +0.05 at $32.45, with 2,835,141 shares traded.ENB is scheduled to provide an earnings report on 11/3/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.43 per share, which represents a 51 percent increase over the EPS one Year Ago
Denbury Inc. (DEN) is unchanged at $88.66, with 2,762,872 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.48. DEN is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.48 per share, which represents a 190 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is -0.33 at $136.67, with 2,028,828 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Vanguard Russell 1000 Growth ETF (VONG) is -0.007 at $68.47, with 2,004,585 shares traded. This represents a 28.06% increase from its 52 Week Low.
Truist Financial Corporation (TFC) is unchanged at $28.49, with 1,996,380 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.86. TFC's current last sale is 81.4% of the target price of $35.
Apple Inc. (AAPL) is -0.14 at $173.83, with 1,962,409 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
The AES Corporation (AES) is unchanged at $14.85, with 1,932,826 shares traded.AES is scheduled to provide an earnings report on 11/3/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.52 per share, which represents a 63 percent increase over the EPS one Year Ago
iShares MSCI ACWI ETF (ACWI) is -0.3765 at $90.54, with 1,811,214 shares traded. This represents a 13.4% increase from its 52 Week Low.
ProShares UltraPro QQQ (TQQQ) is +0.02 at $34.49, with 1,781,805 shares traded. This represents a 114.22% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.14 at $173.83, with 1,962,409 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Enbridge Inc (ENB) is +0.05 at $32.45, with 2,835,141 shares traded.ENB is scheduled to provide an earnings report on 11/3/2023, for the fiscal quarter ending Sep2023. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.14 at $173.83, with 1,962,409 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. PPL Corporation (PPL) is unchanged at $24.70, with 4,185,124 shares traded.PPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.14 at $173.83, with 1,962,409 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.44 per share, which represents a 41 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 0.43 per share, which represents a 51 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.14 at $173.83, with 1,962,409 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The NASDAQ 100 After Hours Indicator is up 10.37 to 14,675.28. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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12778.0
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2023-11-01 00:00:00 UTC
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Unveiling Apple (AAPL) Q4 Outlook: Wall Street Estimates for Key Metrics
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AAPL
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https://www.nasdaq.com/articles/unveiling-apple-aapl-q4-outlook%3A-wall-street-estimates-for-key-metrics
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In its upcoming report, Apple (AAPL) is predicted by Wall Street analysts to post quarterly earnings of $1.39 per share, reflecting an increase of 7.8% compared to the same period last year. Revenues are forecasted to be $88.32 billion, representing a year-over-year decrease of 2%.
Over the last 30 days, there has been a downward revision of 1.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Apple metrics that are routinely monitored and predicted by Wall Street analysts.
The average prediction of analysts places 'Revenue- Wearables, Home and Accessories' at $9.33 billion. The estimate suggests a change of -3.3% year over year.
The consensus among analysts is that 'Revenue- iPhone' will reach $44.17 billion. The estimate points to a change of +3.6% from the year-ago quarter.
Analysts expect 'Net Sales- Services' to come in at $21.35 billion. The estimate indicates a change of +11.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Mac' should arrive at $8.29 billion. The estimate indicates a year-over-year change of -28%.
The consensus estimate for 'Net Sales- Products' stands at $67.64 billion. The estimate points to a change of -4.7% from the year-ago quarter.
Analysts predict that the 'Revenue- iPad' will reach $5.86 billion. The estimate indicates a year-over-year change of -18.4%.
According to the collective judgment of analysts, 'Geographic Revenue- Greater China' should come in at $17.34 billion. The estimate indicates a change of +12.1% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Geographic Revenue- Europe' of $22.22 billion. The estimate points to a change of -2.5% from the year-ago quarter.
It is projected by analysts that the 'Geographic Revenue- Rest of Asia Pacific' will reach $6.04 billion. The estimate suggests a change of -5.2% year over year.
Analysts forecast 'Geographic Revenue- Japan' to reach $5.52 billion. The estimate points to a change of -3.1% from the year-ago quarter.
Analysts' assessment points toward 'Geographic Revenue- Americas' reaching $38.04 billion. The estimate suggests a change of -4.4% year over year.
The combined assessment of analysts suggests that 'Gross margin- Services' will likely reach $15.16 billion. The estimate compares to the year-ago value of $13.52 billion.
View all Key Company Metrics for Apple here>>>
Shares of Apple have experienced a change of -1% in the past month compared to the -2.2% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), AAPL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In its upcoming report, Apple (AAPL) is predicted by Wall Street analysts to post quarterly earnings of $1.39 per share, reflecting an increase of 7.8% compared to the same period last year. With a Zacks Rank #3 (Hold), AAPL is expected to mirror the overall market performance in the near future. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its upcoming report, Apple (AAPL) is predicted by Wall Street analysts to post quarterly earnings of $1.39 per share, reflecting an increase of 7.8% compared to the same period last year. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With a Zacks Rank #3 (Hold), AAPL is expected to mirror the overall market performance in the near future.
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In its upcoming report, Apple (AAPL) is predicted by Wall Street analysts to post quarterly earnings of $1.39 per share, reflecting an increase of 7.8% compared to the same period last year. With a Zacks Rank #3 (Hold), AAPL is expected to mirror the overall market performance in the near future. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In its upcoming report, Apple (AAPL) is predicted by Wall Street analysts to post quarterly earnings of $1.39 per share, reflecting an increase of 7.8% compared to the same period last year. With a Zacks Rank #3 (Hold), AAPL is expected to mirror the overall market performance in the near future. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12779.0
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2023-11-01 00:00:00 UTC
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Why Warren Buffett Loves Dividend Stocks
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AAPL
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https://www.nasdaq.com/articles/why-warren-buffett-loves-dividend-stocks
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nan
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Warren Buffett is widely regarded as one of the best investors of all time. When you look at his holdings, the majority of his positions within the Berkshire Hathaway (NYSE: BRK.B) portfolio are dividend stocks. Berkshire earned more than $4 billion in dividend income from just five positions in 2022, which I discuss in today's video. The most income comes from his position in Bank of America (NYSE: BAC).
Check out this video to learn more, subscribe to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of Oct. 27, 2023. The video was published on Oct. 30, 2023.
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*Stock Advisor returns as of October 30, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway, and Coca-Cola. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire earned more than $4 billion in dividend income from just five positions in 2022, which I discuss in today's video. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Mark Roussin, CPA has positions in Bank of America, Berkshire Hathaway, and Coca-Cola. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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10 stocks we like better than Bank of America When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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Berkshire earned more than $4 billion in dividend income from just five positions in 2022, which I discuss in today's video. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Bank of America wasn't one of them! The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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12780.0
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2023-11-01 00:00:00 UTC
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Qualcomm forecasts beast estimates, shares rise
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AAPL
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https://www.nasdaq.com/articles/qualcomm-forecasts-beast-estimates-shares-rise
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nan
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By Stephen Nellis and Chavi Mehta
Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook.
The San Diego, California-based company forecast current-quarter revenue of $9.1 billion to $9.9 billion, with a midpoint above analysts' expectations of $9.2 billion according to LSEG data. Qualcomm predicted current-quarter adjusted profits of $2.25 to $2.45 per share, beating expectations of $2.23 according to LSEG.
Qualcomm shares rose 3% after the results were released.
For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
Chipmakers have been grappling with a smartphone market slump. Qualcomm is also facing new competition from Huawei TechnologiesHWT.UL, which has resumed producing its own smartphone chips after relying on the U.S. company for the past several years.
Analysts also expect major Qualcomm customer Samsung Electronics 005930.KS to resume using some of its own in-house chips after using all Qualcomm chips in its most recent devices.
But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. Last week it disclosed plans for a renewed push into the laptop market with backing from Microsoft MSFT.O.
Fourth-quarter sales in Qualcomm's chip unit were $7.4 billion, beating analysts' estimate of $7.26 billion according to FactSet data. In Qualcomm's intellectual property licensing business, sales of $1.26 billion were in line with estimates of $1.25 billion according to FactSet data.
In its chip business, Qualcomm said fourth-quarter revenue from smartphone handsets was $5.46 billion, beating analysts' expectations of $5.34 billion according to FactSet data.
Automotive chip sales were $535 million in the fourth quarter, above estimates of $482 million according to FactSet. Overall, Qualcomm said its automotive chip business was up 24% for fiscal 2023 at $1.9 billion.
(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Richard Chang)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. Qualcomm is also facing new competition from Huawei TechnologiesHWT.UL, which has resumed producing its own smartphone chips after relying on the U.S. company for the past several years.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
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12781.0
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2023-11-01 00:00:00 UTC
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Mass lawsuit against Apple over iPhone batteries can go ahead, London tribunal rules
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AAPL
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https://www.nasdaq.com/articles/mass-lawsuit-against-apple-over-iphone-batteries-can-go-ahead-london-tribunal-rules
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Adds details of claim in paragraphs 1-3, details from ruling in paragraph 8, reaction in paragraphs 9-10 and background in paragraph 11
LONDON, Nov 1 (Reuters) - Apple Inc AAPL.O on Wednesday lost a bid to block a mass London lawsuit worth up to $2 billion which accuses the tech giant of hiding defective batteries in millions of iPhones.
The lawsuit was brought by British consumer champion Justin Gutmann on behalf of around 24 million iPhone users in the United Kingdom.
Gutmann is seeking damages from Apple on their behalf of up to 1.6 billion pounds ($1.9 billion) plus interest, with the claim's midpoint range being 853 million pounds.
His lawyers argued Apple concealed issues with batteries in certain phone models by "throttling" them with software updates and installed a power management tool which limited performance.
Apple, however, said the lawsuit was "baseless" and strongly denied batteries in iPhones were defective, apart from in a small number of iPhone 6s models for which it offered free battery replacements.
The company sought to get the case thrown out of court, but the Competition Appeal Tribunal (CAT) said Gutmann's case can proceed in a written ruling on Wednesday.
The CAT did, however, say there was "a lack of clarity and specificity" in Gutmann's case which needed to be resolved before any trial.
It also said Gutmann's litigation funding arrangements may need to be changed, following a landmark Supreme Court ruling in July which said many such agreements were unlawful.
Gutmann said in a statement that the ruling was "a major step towards consumer justice".
An Apple spokesperson referred to a previous statement, which said: "We have never – and would never – do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades."
The certification of Gutmann's case adds to the number of high-value mass lawsuits currently being brought in London, following a July decision to give the go-ahead to claims against major banks for alleged foreign exchange rigging.
($1 = 0.8229 pounds)
(Reporting by Sam Tobin; Editing by Sachin Ravikumar and Emelia Sithole-Matarise)
((Sam.Tobin@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details of claim in paragraphs 1-3, details from ruling in paragraph 8, reaction in paragraphs 9-10 and background in paragraph 11 LONDON, Nov 1 (Reuters) - Apple Inc AAPL.O on Wednesday lost a bid to block a mass London lawsuit worth up to $2 billion which accuses the tech giant of hiding defective batteries in millions of iPhones. The lawsuit was brought by British consumer champion Justin Gutmann on behalf of around 24 million iPhone users in the United Kingdom. His lawyers argued Apple concealed issues with batteries in certain phone models by "throttling" them with software updates and installed a power management tool which limited performance.
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Adds details of claim in paragraphs 1-3, details from ruling in paragraph 8, reaction in paragraphs 9-10 and background in paragraph 11 LONDON, Nov 1 (Reuters) - Apple Inc AAPL.O on Wednesday lost a bid to block a mass London lawsuit worth up to $2 billion which accuses the tech giant of hiding defective batteries in millions of iPhones. The lawsuit was brought by British consumer champion Justin Gutmann on behalf of around 24 million iPhone users in the United Kingdom. The certification of Gutmann's case adds to the number of high-value mass lawsuits currently being brought in London, following a July decision to give the go-ahead to claims against major banks for alleged foreign exchange rigging.
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Adds details of claim in paragraphs 1-3, details from ruling in paragraph 8, reaction in paragraphs 9-10 and background in paragraph 11 LONDON, Nov 1 (Reuters) - Apple Inc AAPL.O on Wednesday lost a bid to block a mass London lawsuit worth up to $2 billion which accuses the tech giant of hiding defective batteries in millions of iPhones. Gutmann is seeking damages from Apple on their behalf of up to 1.6 billion pounds ($1.9 billion) plus interest, with the claim's midpoint range being 853 million pounds. The certification of Gutmann's case adds to the number of high-value mass lawsuits currently being brought in London, following a July decision to give the go-ahead to claims against major banks for alleged foreign exchange rigging.
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Adds details of claim in paragraphs 1-3, details from ruling in paragraph 8, reaction in paragraphs 9-10 and background in paragraph 11 LONDON, Nov 1 (Reuters) - Apple Inc AAPL.O on Wednesday lost a bid to block a mass London lawsuit worth up to $2 billion which accuses the tech giant of hiding defective batteries in millions of iPhones. The lawsuit was brought by British consumer champion Justin Gutmann on behalf of around 24 million iPhone users in the United Kingdom. Apple, however, said the lawsuit was "baseless" and strongly denied batteries in iPhones were defective, apart from in a small number of iPhone 6s models for which it offered free battery replacements.
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12782.0
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2023-11-01 00:00:00 UTC
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Is FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-morningstar-u.s.-market-factor-tilt-etf-tilt-a-strong-etf-right-now-8
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nan
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Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Flexshares, and has been able to amass over $1.33 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the Morningstar U.S. Market Factor Tilt Index.
The Morningstar U.S. Market Factor Tilt Index measures the performance of U.S. equity markets with increased exposure toward small-capitalization and value stocks.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for TILT are 0.25%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
TILT's heaviest allocation is in the Information Technology sector, which is about 22.60% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.67% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN).
Its top 10 holdings account for approximately 19.78% of TILT's total assets under management.
Performance and Risk
The ETF has added about 6.85% and is up about 5.61% so far this year and in the past one year (as of 11/01/2023), respectively. TILT has traded between $145.60 and $175.80 during this last 52-week period.
TILT has a beta of 1.09 and standard deviation of 18.31% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 2045 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Morningstar U.S. Market Factor Tilt ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $42.53 billion in assets, Vanguard Total Stock Market ETF has $296.16 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.67% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.67% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.67% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.67% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Amazon.com Inc Common Stock Usd 0.01 (AMZN). Click to get this free report FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 09/16/2011, smart beta exchange traded fund FlexShares Morningstar U.S. Market Factor Tilt ETF (TILT) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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12783.0
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2023-11-01 00:00:00 UTC
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Should You Buy These 2 ‘Magnificent Seven’ Stocks Ahead of Earnings? Apple and Nvidia in Focus
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AAPL
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https://www.nasdaq.com/articles/should-you-buy-these-2-magnificent-seven-stocks-ahead-of-earnings-apple-and-nvidia-in
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nan
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nan
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What should investors make of this year’s third-quarter earnings? The Q3 results have been pretty good, with 78% of companies reporting so far beating the forecasts, but stocks are still feeling pressure. One obvious sign of that pressure: the S&P 500 this week hit its lowest point since last May, and is just shy of correction territory.
The effect is most clearly seen in the ‘Magnificent Seven,’ a group of Big Tech giants whose gains earlier in the year carried the markets generally – but which are facing serious losses lately, despite solid earnings results. Four of these tech giants – Alphabet, Amazon, Meta, and Microsoft – have reported earnings so far, and all beat expectations. The group as a whole is expected to show a 33% year-over-year increase in profits this earnings season. Even so, the Magnificent Seven stocks are down 11% since the end of July.
But does this mean you shouldn’t buy in? Wall Street’s analysts are weighing in on that question, especially relevant with both Apple and Nvidia scheduled to release earnings in the near future. These are iconic names, leaders in their respective industries, and they have proven records of long-term success. Let’s put them into focus ahead of their upcoming financial releases to see where they stand now and why some analysts are recommending 'Buy' ahead of the earnings results.
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J.P. Morgan Sees at Least 60% Gains in These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Soar
‘Buy the Dip’: Analysts Say These 2 Beaten-Down Stocks Offer a Compelling Entry Point — Here’s Why They Could Rebound
Apple (AAPL)
We’ll start with a company that needs little introduction: Apple. Apple's $2.67 trillion market cap makes it the largest publicly traded firm in the world. The company is best known for its iconic products, including the iPhone line, iPads, and MacBook computers. Apple’s success was built on its reputation for high-end quality and the professional-level applications that the Mac computer lines could support. In recent years, the company has been expanding its service segment.
Apple has also been working to integrate AI technology into its user experience. The company has used it to improve the autocorrect feature on its iPhone line and is using AI to create a smarter AirPod, making an earbud that will recognize when the user is having a conversation and automatically lower the volume.
Small tweaks have kept the product lines popular with consumers, and Apple weathered a serious industry-wide drop in smartphone sales earlier this year. Industry research showed that smartphone shipments fell 24% in 1H23, but Apple saw only a 6% decline in iPhone sales. By the end of the half, Apple held a 55% market share in smartphones.
In its last reported quarter, fiscal 3Q23, which ended on July 1, Apple posted revenues of $81.8 billion, marking a 1% year-over-year loss, and earnings of $1.26 per diluted share, indicating a 5% year-over-year gain. These results were considered positive, especially in light of the overall decline in smartphone sales. The company also reported having more than 1 billion paid subscription customers, driving its Services segment to record revenues. Looking forward, the Street expects Apple to report $89.4 billion in revenue and $1.39 in earnings per share when it reports its fiscal Q4 financial results on November 2.
Covering Apple for Morgan Stanley, analyst Erik Woodring writes of the upcoming earnings, “We expect Apple to post an in-line to better than expected September quarter (F4Q23), highlighted by MSD Y/Y iPhone revenue growth, accelerating Services growth, and record gross margins. However, we are more cautious on the December quarter (F1Q24) given iPhone supply shortages and uneven consumer spending, and believe Apple will guide to a revenue range that is both below normal seasonality and Consensus expectations. Looking at the rest of the mega cap tech names that reported this earnings season, the companies that have guided to December quarter profitability in excess of Consensus have seen greater post-earnings outperformance than those guiding closer (or below) to Consensus, and therefore we lean cautiously into earnings on Thursday.”
Even though he is somewhat cautious, Woodring goes on to give an upbeat bottom line: “However, with the potential for iPhone upside later in the quarter (if supply improves; akin to the iPhone 13 cycle) and/or a better than seasonal March quarter, Services growth accelerating, and shares near what we believe is a near-term floor (of $160), we are bullish over the next 12 months.”
The analyst’s stance supports his Overweight (i.e. Buy) rating on the shares, and his $210 price target implies a gain of nearly 23% for AAPL over the next 12 months. (Watch Woodring’s track record)
Overall, the analyst consensus on Apple is a Moderate Buy, based on 31 recent reviews that break down to 22 Buys and 9 Holds. The shares are selling for $171.40 right now, and their $203.35 average price target suggests a one-year upside potential of ~19%. (See Apple stock forecast)
Nvidia Corporation (NVDA)
Next up is Nvidia, a leader in the global semiconductor chip industry – and another of the stock market’s handful of trillion-dollar-plus companies. Nvidia has built its dominance around high demand for its top-end GPU chips, which were originally developed for high-end gaming apps but have found strong market share with professional graphic designers and AI developers as well. The launch of ChatGPT last November, and the subsequent boom in AI, opened up even more opportunities for Nvidia.
Prominent among those opportunities was the announcement from ChatGPT’s creator, OpenAI, that it will need as many as 10,000 new GPU chips in the coming year in order to maintain current performance levels of the popular chatbot. Nvidia is already a leading supplier for the Microsoft-backed company, and now looks at 2024 from the happy vantage point of having a satisfied high-volume customer.
It's not just AI that’s powering Nvidia’s growth. The company saw more than $10 billion in data center revenue, as customers went all-in on the company’s high-end, advanced computing chips. This accounted for the majority of Nvidia's $13.5 billion revenue in fiscal 2Q24, surpassing expectations by $2.43 billion. The firm’s non-GAAP EPS figure, of $2.70, was 61 cents ahead of the forecasts. Looking ahead to the company’s upcoming fiscal 3Q24 release, the expectations are for continued growth – revenue of $15.99 billion, and earnings of $3.37 per share.
For 5-star analyst Ambrish Srivastava, writing from BMO, all of this adds up to a bullish picture for the long term. Srivastava says of Nvidia, “We believe as a company NVIDIA is likely experiencing the best visibility it has ever had. NVIDIA highlighted that its visibility for data center is backed by purchase orders, which are required for allocation requests from customers given supply constraints, with customers with large commitments likely getting priority... NVIDIA appears confident in its ability to secure supply into next year, both on the CoWoS side for the more complete GPU solutions, as well on the networking side, particularly in infiniband.”
Looking ahead, the analyst, who is rated by TipRanks in the top 3% of the Wall Street stock pros, lays out a clear path for Nvidia in the near-term: “NVIDIA sees a very large addressable TAM ($1T installed base of data center infrastructure), with the company today addressing a single-digit percentage of the annual data center spend. NVIDIA sees a long-term tailwind of the installed base from general purpose CPUs to accelerated computing and generative AI.”
Srivastava quantifies his outlook on Nvidia with an Outperform (i.e. Buy) rating, and a price target which, at $600, points toward a robust 47% gain in the coming year. (Watch Srivastava’s track record)
Overall, Nvidia has a Strong Buy consensus rating from Wall Street, supported by 38 analyst reviews with a lopsided split of 37 Buys to 1 Hold. The stock is priced at $407.80 – and its $645.53 average target price suggests an appreciation of 55% on the one-year horizon. (See Nvidia’s stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Don’t miss Nuclear Power Is the Future — and These Stocks Are Leading the Charge J.P. Morgan Sees at Least 60% Gains in These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Soar ‘Buy the Dip’: Analysts Say These 2 Beaten-Down Stocks Offer a Compelling Entry Point — Here’s Why They Could Rebound Apple (AAPL) We’ll start with a company that needs little introduction: Apple. Looking at the rest of the mega cap tech names that reported this earnings season, the companies that have guided to December quarter profitability in excess of Consensus have seen greater post-earnings outperformance than those guiding closer (or below) to Consensus, and therefore we lean cautiously into earnings on Thursday.” Even though he is somewhat cautious, Woodring goes on to give an upbeat bottom line: “However, with the potential for iPhone upside later in the quarter (if supply improves; akin to the iPhone 13 cycle) and/or a better than seasonal March quarter, Services growth accelerating, and shares near what we believe is a near-term floor (of $160), we are bullish over the next 12 months.” The analyst’s stance supports his Overweight (i.e. Buy) rating on the shares, and his $210 price target implies a gain of nearly 23% for AAPL over the next 12 months. The effect is most clearly seen in the ‘Magnificent Seven,’ a group of Big Tech giants whose gains earlier in the year carried the markets generally – but which are facing serious losses lately, despite solid earnings results.
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Don’t miss Nuclear Power Is the Future — and These Stocks Are Leading the Charge J.P. Morgan Sees at Least 60% Gains in These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Soar ‘Buy the Dip’: Analysts Say These 2 Beaten-Down Stocks Offer a Compelling Entry Point — Here’s Why They Could Rebound Apple (AAPL) We’ll start with a company that needs little introduction: Apple. Looking at the rest of the mega cap tech names that reported this earnings season, the companies that have guided to December quarter profitability in excess of Consensus have seen greater post-earnings outperformance than those guiding closer (or below) to Consensus, and therefore we lean cautiously into earnings on Thursday.” Even though he is somewhat cautious, Woodring goes on to give an upbeat bottom line: “However, with the potential for iPhone upside later in the quarter (if supply improves; akin to the iPhone 13 cycle) and/or a better than seasonal March quarter, Services growth accelerating, and shares near what we believe is a near-term floor (of $160), we are bullish over the next 12 months.” The analyst’s stance supports his Overweight (i.e. Buy) rating on the shares, and his $210 price target implies a gain of nearly 23% for AAPL over the next 12 months. In its last reported quarter, fiscal 3Q23, which ended on July 1, Apple posted revenues of $81.8 billion, marking a 1% year-over-year loss, and earnings of $1.26 per diluted share, indicating a 5% year-over-year gain.
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Don’t miss Nuclear Power Is the Future — and These Stocks Are Leading the Charge J.P. Morgan Sees at Least 60% Gains in These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Soar ‘Buy the Dip’: Analysts Say These 2 Beaten-Down Stocks Offer a Compelling Entry Point — Here’s Why They Could Rebound Apple (AAPL) We’ll start with a company that needs little introduction: Apple. Looking at the rest of the mega cap tech names that reported this earnings season, the companies that have guided to December quarter profitability in excess of Consensus have seen greater post-earnings outperformance than those guiding closer (or below) to Consensus, and therefore we lean cautiously into earnings on Thursday.” Even though he is somewhat cautious, Woodring goes on to give an upbeat bottom line: “However, with the potential for iPhone upside later in the quarter (if supply improves; akin to the iPhone 13 cycle) and/or a better than seasonal March quarter, Services growth accelerating, and shares near what we believe is a near-term floor (of $160), we are bullish over the next 12 months.” The analyst’s stance supports his Overweight (i.e. Buy) rating on the shares, and his $210 price target implies a gain of nearly 23% for AAPL over the next 12 months. NVIDIA highlighted that its visibility for data center is backed by purchase orders, which are required for allocation requests from customers given supply constraints, with customers with large commitments likely getting priority... NVIDIA appears confident in its ability to secure supply into next year, both on the CoWoS side for the more complete GPU solutions, as well on the networking side, particularly in infiniband.” Looking ahead, the analyst, who is rated by TipRanks in the top 3% of the Wall Street stock pros, lays out a clear path for Nvidia in the near-term: “NVIDIA sees a very large addressable TAM ($1T installed base of data center infrastructure), with the company today addressing a single-digit percentage of the annual data center spend.
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Don’t miss Nuclear Power Is the Future — and These Stocks Are Leading the Charge J.P. Morgan Sees at Least 60% Gains in These 2 ‘Strong Buy’ Stocks — Here’s Why They Could Soar ‘Buy the Dip’: Analysts Say These 2 Beaten-Down Stocks Offer a Compelling Entry Point — Here’s Why They Could Rebound Apple (AAPL) We’ll start with a company that needs little introduction: Apple. Looking at the rest of the mega cap tech names that reported this earnings season, the companies that have guided to December quarter profitability in excess of Consensus have seen greater post-earnings outperformance than those guiding closer (or below) to Consensus, and therefore we lean cautiously into earnings on Thursday.” Even though he is somewhat cautious, Woodring goes on to give an upbeat bottom line: “However, with the potential for iPhone upside later in the quarter (if supply improves; akin to the iPhone 13 cycle) and/or a better than seasonal March quarter, Services growth accelerating, and shares near what we believe is a near-term floor (of $160), we are bullish over the next 12 months.” The analyst’s stance supports his Overweight (i.e. Buy) rating on the shares, and his $210 price target implies a gain of nearly 23% for AAPL over the next 12 months. Looking forward, the Street expects Apple to report $89.4 billion in revenue and $1.39 in earnings per share when it reports its fiscal Q4 financial results on November 2.
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12784.0
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2023-11-01 00:00:00 UTC
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PayPal raises full-year profit forecast above Wall Street estimates
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AAPL
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https://www.nasdaq.com/articles/paypal-raises-full-year-profit-forecast-above-wall-street-estimates
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nan
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nan
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Adds shares and CFO appointment in paragraph 2
Nov 1 (Reuters) - PayPal Holdings PYPL.O raised its forecast for full-year adjusted profit above Wall Street estimates on Wednesday, as the payments giant banks on resilient consumer spending trends during the key holiday shopping season.
Shares of the company rose 2.5% in extended trading after the results. It also named Jamie Miller as its new chief financial officer.
Consumer spending has shown remarkable strength this year, with analysts expecting the cheer to extend to the holidays, as companies dangle steep discounts on everything from electronics to clothing to entice inflation-weary shoppers.
Online sales during the U.S. holiday season, which includes some of the biggest shopping days such as Cyber Monday, Thanksgiving and Black Friday, are expected to rise 4.8% from a year earlier, a report from Adobe Analytics showed in October.
The company said it expects adjusted profit for the full-year to be about $4.98 per share from $4.95 earlier. Analysts on average had expected $4.92, according to LSEG data.
Analysts, however, remain focused on PayPal's margins that have underwhelmed investors in recent quarters. The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple AAPL.O.
PayPal cut its annual forecast of adjusted operating margin expansion to 75 basis points from 100 basis points expected earlier. Adjusted operating margin was 22.2% in the third quarter.
PayPal's revenue jumped 9% to $7.4 billion on FX-neutral basis in the third quarter ended Sept. 30. Analysts on average had expected $7.38 billion.
U.S. consumer spending surged in September as households boosted purchases of motor vehicles and traveled, keeping spending on a higher growth path heading into the fourth quarter, according to data from the U.S. Commerce Department.
Total payments volume increased 13% on FX-neutral basis to $387.7 billion in the third quarter, beating Street expectations of $377.9 billion.
The firm earned $1.30 per share on an adjusted basis in the third-quarter, beating Wall Street expectations of $1.23 per share.
(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
((Manya.Saini@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple AAPL.O. Adds shares and CFO appointment in paragraph 2 Nov 1 (Reuters) - PayPal Holdings PYPL.O raised its forecast for full-year adjusted profit above Wall Street estimates on Wednesday, as the payments giant banks on resilient consumer spending trends during the key holiday shopping season. Consumer spending has shown remarkable strength this year, with analysts expecting the cheer to extend to the holidays, as companies dangle steep discounts on everything from electronics to clothing to entice inflation-weary shoppers.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple AAPL.O. PayPal cut its annual forecast of adjusted operating margin expansion to 75 basis points from 100 basis points expected earlier. Total payments volume increased 13% on FX-neutral basis to $387.7 billion in the third quarter, beating Street expectations of $377.9 billion.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple AAPL.O. Adds shares and CFO appointment in paragraph 2 Nov 1 (Reuters) - PayPal Holdings PYPL.O raised its forecast for full-year adjusted profit above Wall Street estimates on Wednesday, as the payments giant banks on resilient consumer spending trends during the key holiday shopping season. PayPal cut its annual forecast of adjusted operating margin expansion to 75 basis points from 100 basis points expected earlier.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple AAPL.O. The company said it expects adjusted profit for the full-year to be about $4.98 per share from $4.95 earlier. Analysts on average had expected $7.38 billion.
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12785.0
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2023-11-01 00:00:00 UTC
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ANALYSIS-Wavering ‘Magnificent Seven’ draw bargain-hunters amid U.S. stock sell-off
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AAPL
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https://www.nasdaq.com/articles/analysis-wavering-magnificent-seven-draw-bargain-hunters-amid-u.s.-stock-sell-off
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Nov 1 (Reuters) - A slide in the shares of the massive U.S. technology and growth companies that have led stocks higher this year is tempting investors hoping for bargains ahead of results from market bellwether Apple.
Surging bond yields and mixed earnings reports have weighed on the so-called Magnificent Seven stocks, which are collectively down an average of about 15% from their 52-week highs, though they all still sit on hefty gains for the year.
As their stock prices have fallen, rich valuations are moderating. The stocks now trade at an average forward price-to-earnings ratio of about 30 times compared with 45 times in mid-June.
Some market participants see an opportunity. Shares of the Magnificent Seven - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O - have soared over the last decade, and now many are drawing investors with rock-solid balance sheets that many believe can weather rocky economic times.
“They are the highest quality names out there and, frankly, if we do go into a recession next year ... I actually think the Magnificent Seven will hold up better,” said King Lip, chief strategist at Baker Avenue Wealth Management.
Because the Magnificent Seven have a combined weighting of 28% in the S&P 500, their performance holds a large sway over the broader index. The S&P 500 has fallen 9% from its 2023 high reached in late July, though it is still up just over 9% year-to-date.
Lip said his firm owns shares of all seven companies and has recently added to its holdings in some of them.
Others have been buying as well. Tech stocks saw $2 billion of net inflows last week, their largest in about two months, analysts at BofA Global Research said in a report. Data from Vanda Research showed retail investors’ net buys of nine big tech and growth stocks reached 31% of total flows, after being below 30% for most of the month.
Whether the dip buyers are right will hinge in part on the trajectory of Treasury yields, which have risen to 16-year highs on fiscal worries and expectations that the Federal Reserve will need to keep interest rates higher for longer in order to decisively defeat inflation. The Fed will conclude its latest monetary policy meeting on Wednesday.
Higher yields increase the cost of capital for businesses and households, while also making government bonds a more attractive alternative to equities. The 10-year benchmark Treasury yield has risen about 100 basis points since late July as stocks have come under pressure.
Another important test will come on Thursday when Apple, the largest U.S. company by market value, reports results. Shares of several megacap companies have been hit hard by negative reactions to their earnings reports, including those of Google parent Alphabet, Tesla and Meta Platforms, the parent of Facebook and Instagram.
"Unfortunately, because interest rates are high and we have a war in the Middle East, pretty good is just not good enough,” said Jay Hatfield, CEO of InfraCap. "The bar is extraordinarily high to have a real beat."
Kim Forrest, chief investment officer at Bokeh Capital Partners, which holds Apple shares, said she was looking for insight into the extent of potential saturation of the smartphone market and the willingness of consumers to buy the next iPhone model.
"They are the phone provider of choice for the developed world,” Forrest said, adding: "As goes Apple, so goes the S&P, just because of its weighting.”
Apple’s shares, which alone have a weighting of over 7% in the S&P 500, are up 31% year-to-date.
Some investors are differentiating among the seven. Hatfield prefers Nvidia and Microsoft as companies that have the most leverage to artificial intelligence trends.
Thomas Ognar, senior portfolio manager at Allspring Global, said the Dynamic Growth Equity team's portfolios at Allspring are overweight Amazon and Meta. Both companies are showing bottom-line benefits from cost controls, while Amazon's cloud computing business may have already bottomed and Meta is showing improvements in areas such as short-form videos, Ognar said.
As a group, the Magnificent 7 still show common traits that have supported their share outperformance, including being massive collectors of data, Ognar said.
"You can see that they have had some competitive advantages which they have been utilizing and I think have been on display this year, which is why the stocks have done well,” Ognar said.
(Reporting by Lewis Krauskopf; editing by Ira Iosebashvili and Jonathan Oatis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of the Magnificent Seven - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O - have soared over the last decade, and now many are drawing investors with rock-solid balance sheets that many believe can weather rocky economic times. By Lewis Krauskopf NEW YORK, Nov 1 (Reuters) - A slide in the shares of the massive U.S. technology and growth companies that have led stocks higher this year is tempting investors hoping for bargains ahead of results from market bellwether Apple. Whether the dip buyers are right will hinge in part on the trajectory of Treasury yields, which have risen to 16-year highs on fiscal worries and expectations that the Federal Reserve will need to keep interest rates higher for longer in order to decisively defeat inflation.
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Shares of the Magnificent Seven - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O - have soared over the last decade, and now many are drawing investors with rock-solid balance sheets that many believe can weather rocky economic times. Data from Vanda Research showed retail investors’ net buys of nine big tech and growth stocks reached 31% of total flows, after being below 30% for most of the month. Thomas Ognar, senior portfolio manager at Allspring Global, said the Dynamic Growth Equity team's portfolios at Allspring are overweight Amazon and Meta.
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Shares of the Magnificent Seven - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O - have soared over the last decade, and now many are drawing investors with rock-solid balance sheets that many believe can weather rocky economic times. By Lewis Krauskopf NEW YORK, Nov 1 (Reuters) - A slide in the shares of the massive U.S. technology and growth companies that have led stocks higher this year is tempting investors hoping for bargains ahead of results from market bellwether Apple. Surging bond yields and mixed earnings reports have weighed on the so-called Magnificent Seven stocks, which are collectively down an average of about 15% from their 52-week highs, though they all still sit on hefty gains for the year.
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Shares of the Magnificent Seven - Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O - have soared over the last decade, and now many are drawing investors with rock-solid balance sheets that many believe can weather rocky economic times. The S&P 500 has fallen 9% from its 2023 high reached in late July, though it is still up just over 9% year-to-date. Data from Vanda Research showed retail investors’ net buys of nine big tech and growth stocks reached 31% of total flows, after being below 30% for most of the month.
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12786.0
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2023-11-01 00:00:00 UTC
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OKTA Stock’s Sell-Off Presents an Opportunity
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AAPL
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https://www.nasdaq.com/articles/okta-stocks-sell-off-presents-an-opportunity
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nan
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nan
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Okta, Inc. (NASDAQ:OKTA), a global leader in the identity solutions sector, has come under pressure in recent weeks due to a major security breach, triggering a market sell-off that likely presents a good opportunity for investors who have been waiting on the sidelines.
On October 20, Okta’s Chief Security Officer David Bradburry acknowledged in a blog post that Okta’s support case management system had been accessed by an unauthorized user. The hacker was able to view files uploaded by some customers as part of support cases. Despite the short-term pressures resulting from this security breach, Okta seems well-positioned to grow in the long term. Therefore, I'm bullish on OKTA stock.
Okta’s Response Will be Scrutinized by Customers and Analysts
In the cybersecurity sector, hackers gaining unauthorized access to client accounts is not uncommon, but at the same time, these events can leave a long-lasting impact on a security solutions provider. In addition to the security breach, stakeholders often pay attention to the company’s response to the breach and the support extended to prevent similar occurrences in the future. Okta’s initial response to the alerts it received about this security breach does not seem satisfactory at first glance.
BeyondTrust, a security company that is also a customer of Okta, claimed in a blog post recently that it alerted Okta of a potential security breach on October 2. BeyondTrust claims to have prevented an unauthorized user from gaining access to an in-house Okta administrative account. Okta, in return, alerted its customers about this breach weeks later, which does not paint a good picture of the company.
Okta is currently investigating this incident to find the root causes and formulate a strategic response to prevent such security breaches from happening in the future.
Long-Term Growth Potential Remains Intact
Okta operates as an identity and access management (IAM) solutions provider within the broad cybersecurity market, and the company has been able to climb the ladder in recent years to emerge as a leader in this space. This is a fast-growing market, with Grand View Research projecting the market to grow at a CAGR of 13% through 2030.
The growth of this market will be driven by the increasing cloud adoption on a global scale, which is forcing both small and large-scale enterprises to take measures to prevent their data from being accessed by unidentified users.
IAM solutions offer many benefits to organizations, including the ability to automatically delete inactive accounts, detect policy violations, and remove unwanted access privileges on an ongoing basis.
Okta offers two main types of IAM solutions: workforce identity solutions, allowing a company’s employees to access both in-house and cloud-based company resources, and customer solutions, allowing the customers of a company to access relevant resources securely.
Aided by the ongoing digital transformation that has boosted the demand for zero-trust applications, Okta’s revenue has grown in leaps and bounds from just $41 million in 2015 to almost $2 billion in 2022. The company’s success in the last few years is a testament to its ability to penetrate the identity management market, and the stellar growth ahead for this market paints a promising long-term picture for Okta.
Some of Okta’s recent customer wins validate the company’s strong footing in the market. OpenAI, the parent company of ChatGPT, uses Okta’s identity cloud solutions for authentication processes, which gives an indication of how Okta remains to benefit from the rise of generative AI applications in the future.
Some of Okta’s noteworthy customers include Apple (NASDAQ:AAPL), CVS Health (NYSE:CVS), and Chevron (NYSE:CVX). Billion-dollar enterprises choosing Okta to secure their identity access frameworks is a vote of confidence in the technology deployed by the company.
Is OKTA Stock a Buy, According to Analysts?
Okta has come under pressure from Wall Street analysts, with the company suffering from its second major security breach within just two years. Earlier this year, Okta’s systems failed to prevent the attacks on MGM Resorts International (NYSE:MGM) as well, adding worries to the company’s ability to remain a leader in the identity access solutions sector.
Evercore ISI analyst Peter Levine, in a note to clients, claimed that Okta’s short-term pipeline will be negatively impacted by the recent security breach, thereby forcing analysts to revise their revenue estimates for Fiscal 2024 and 2025. Citigroup (NYSE:C) analyst Fatima Boolani also raised concerns about the potential for reputational risk resulting from the security breach.
With analysts striking a negative tone, Okta stock may remain under pressure in the foreseeable future due to a series of potential negative earnings revisions for the current and next fiscal year.
Based on the ratings of 27 Wall Street analysts, the average Okta price target is $91.38, which implies upside of 33.6% from the current market price.
The Takeaway: Okta Looks Attractive
Okta is becoming increasingly attractive as the market plays a blind eye to the company’s long-term prospects while focusing on the short-term impact of the recent security breach. Investors, however, will have to stomach some pains in the short term as the company navigates a challenging few months that will be characterized by its response to the security breach and the potential loss of business resulting from this security event.
Still, while there are concerns regarding Okta’s short-term market and financial performance, the company seems well-positioned to thrive in the long run, potentially enjoying competitive advantages resulting from its growing scale. I believe the recent market sell-off presents an opportunity for long-term-oriented investors to gain exposure to Okta at a meaningfully cheaper valuation compared to just a few weeks ago.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of Okta’s noteworthy customers include Apple (NASDAQ:AAPL), CVS Health (NYSE:CVS), and Chevron (NYSE:CVX). Okta’s Response Will be Scrutinized by Customers and Analysts In the cybersecurity sector, hackers gaining unauthorized access to client accounts is not uncommon, but at the same time, these events can leave a long-lasting impact on a security solutions provider. Long-Term Growth Potential Remains Intact Okta operates as an identity and access management (IAM) solutions provider within the broad cybersecurity market, and the company has been able to climb the ladder in recent years to emerge as a leader in this space.
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Some of Okta’s noteworthy customers include Apple (NASDAQ:AAPL), CVS Health (NYSE:CVS), and Chevron (NYSE:CVX). Okta, Inc. (NASDAQ:OKTA), a global leader in the identity solutions sector, has come under pressure in recent weeks due to a major security breach, triggering a market sell-off that likely presents a good opportunity for investors who have been waiting on the sidelines. Long-Term Growth Potential Remains Intact Okta operates as an identity and access management (IAM) solutions provider within the broad cybersecurity market, and the company has been able to climb the ladder in recent years to emerge as a leader in this space.
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Some of Okta’s noteworthy customers include Apple (NASDAQ:AAPL), CVS Health (NYSE:CVS), and Chevron (NYSE:CVX). Okta, Inc. (NASDAQ:OKTA), a global leader in the identity solutions sector, has come under pressure in recent weeks due to a major security breach, triggering a market sell-off that likely presents a good opportunity for investors who have been waiting on the sidelines. BeyondTrust, a security company that is also a customer of Okta, claimed in a blog post recently that it alerted Okta of a potential security breach on October 2.
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Some of Okta’s noteworthy customers include Apple (NASDAQ:AAPL), CVS Health (NYSE:CVS), and Chevron (NYSE:CVX). Okta, Inc. (NASDAQ:OKTA), a global leader in the identity solutions sector, has come under pressure in recent weeks due to a major security breach, triggering a market sell-off that likely presents a good opportunity for investors who have been waiting on the sidelines. Despite the short-term pressures resulting from this security breach, Okta seems well-positioned to grow in the long term.
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12787.0
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2023-11-01 00:00:00 UTC
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GLOBAL MARKETS-Asia shares, bonds rally as Powell feeds hopes of end to rate hikes
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AAPL
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https://www.nasdaq.com/articles/global-markets-asia-shares-bonds-rally-as-powell-feeds-hopes-of-end-to-rate-hikes
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nan
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nan
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By Stella Qiu
SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve Chair had markets double down on bets that U.S. interest rates have peaked and cuts are on the way.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.7% to the highest level in one week. Tokyo's Nikkei .N225 gained 1.4% to cross the 32,000 level for the first time in two weeks.
China's blue chips .CSI300 were 0.3% higher, while Hong Kong's Hang Seng index .HSI jumped 1.7%.
Stock futures in Europe and U.S. also gained. EUROSTOXX 50 futures STXEc1 rose 0.8% early in Asia, while S&P 500 futures ESc1 added 0.3% and Nasdaq futures NQc1 increased 0.5%.
Fed funds futures FF: rallied as markets pared back the risk of a December hike to about 22% and a January move to 28%. Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June. 0#RBAWATCH
Wall Street and Treasuries rallied. The S&P 500 .SPX gained 1% and the Nasdaq Composite .IXIC surged 1.6%.
The benchmark 10-year Treasury yield US10YT=RR eased another 2 basis points to 4.7089%, the lowest in more than two weeks. Overnight, it tumbled 14 basis points, the biggest daily drop since March, also in part due to a Treasury announcement that said the government will slow increases in the size of its longer-dated auctions. US/
"While growth was incredibly strong in the third quarter of 2024 at 5%, we suspect a substantial slowing in 4Q24, which, based on Powell's remarks today, likely won't be enough to garner additional tightening," Tiffany Wilding, an economist at PIMCO, wrote in a note to clients.
The next big focal point for the market is the non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from 336,000 increase the previous month. It will come after private payrolls increased far less than expected.
The dollar =USD was again on the back foot on Thursday, falling 0.1% against its peers. The prospect that the Fed is done tightening buoyed risk sensitive currencies the most, with Australian dollar AUD=D3 bouncing 0.6% to a three-week high of $0.6428.
"Although the FOMC may not be talking about it today, within a few months, the question will no longer be 'Will they hike again?' but 'When will they cut?'," said Seema Shah, Chief Global Strategist at Principal Asset Management.
The yen JPY=EBS continued to regain ground - up 0.3% to 150.46 per dollar on Thursday. It had hit a one-year low after a Bank of Japan decision to ease its control over the 1% cap on 10-year yields, with the tweak seen insufficient to close the wide interest rate gaps between Japan and other countries.
Oil prices traded higher as the conflict in the Middle East kept investors on edge about whether it could disrupt oil supplies. Brent crude futures LCOc1 climbed 1.2% to $85.61 a barrel while U.S. West Texas Intermediate CLc1 futures were at $81.43 a barrel, up 1.2%.
The price of gold XAU= was 0.2% higher at $1,985.86 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Edwina Gibbs)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stella Qiu SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve Chair had markets double down on bets that U.S. interest rates have peaked and cuts are on the way. US/ "While growth was incredibly strong in the third quarter of 2024 at 5%, we suspect a substantial slowing in 4Q24, which, based on Powell's remarks today, likely won't be enough to garner additional tightening," Tiffany Wilding, an economist at PIMCO, wrote in a note to clients. The next big focal point for the market is the non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from 336,000 increase the previous month.
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MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.7% to the highest level in one week. The benchmark 10-year Treasury yield US10YT=RR eased another 2 basis points to 4.7089%, the lowest in more than two weeks. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Stella Qiu; Editing by Edwina Gibbs) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stella Qiu SYDNEY, Nov 2 (Reuters) - Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve Chair had markets double down on bets that U.S. interest rates have peaked and cuts are on the way. EUROSTOXX 50 futures STXEc1 rose 0.8% early in Asia, while S&P 500 futures ESc1 added 0.3% and Nasdaq futures NQc1 increased 0.5%. Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June.
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Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June. The benchmark 10-year Treasury yield US10YT=RR eased another 2 basis points to 4.7089%, the lowest in more than two weeks. The price of gold XAU= was 0.2% higher at $1,985.86 per ounce.
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12788.0
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2023-11-01 00:00:00 UTC
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India probing iPhone hacking complaints by opposition politicians - minister
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AAPL
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https://www.nasdaq.com/articles/india-probing-iphone-hacking-complaints-by-opposition-politicians-minister
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nan
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nan
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NEW DELHI, Nov 2 (Reuters) - India's cyber security agency is investigating complaints of mobile phone hacking by senior opposition politicians who reported receiving warning messages from Apple AAPL.O, Information Technology Minister Ashwani Vaishnaw said.
Vaishnaw was quoted in the Indian Express newspaper as saying on Thursday that CERT-In, the computer emergency response team based in New Delhi, had started the probe, adding that "Apple confirmed it has received the notice for investigation".
A political aide to Vaishnaw and two officials in the federal home ministry told Reuters that all the cyber security concerns raised by the politicians were being scrutinised.
There was no immediate comment from Apple about the investigation.
This week, Indian opposition leader Rahul Gandhi accused Prime Minister Narendra Modi's government of trying to hack into opposition politicians' mobile phones after some lawmakers shared screenshots on social media of a notification quoting the iPhone manufacturer as saying: "Apple believes you are being targeted by state-sponsored attackers who are trying to remotely compromise the iPhone associated with your Apple ID".
A senior minister from Modi's government also said he had received the same notification on his phone.
Apple said it did not attribute the threat notifications to "any specific state-sponsored attacker", adding that "it's possible that some Apple threat notifications may be false alarms, or that some attacks are not detected".
In 2021, India was rocked by reports that the government had used Israeli-made Pegasus spyware to snoop on scores of journalists, activists and politicians, including Gandhi.
The government has declined to reply to questions about whether India or any of its state agencies had purchased Pegasus spyware for surveillance.
(Reporting by Rupam Jain and Munsif Vengattil; editing by Miral Fahmy)
((Rupam.Jain@thomsonreuters.com; +91 7042133028;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NEW DELHI, Nov 2 (Reuters) - India's cyber security agency is investigating complaints of mobile phone hacking by senior opposition politicians who reported receiving warning messages from Apple AAPL.O, Information Technology Minister Ashwani Vaishnaw said. Vaishnaw was quoted in the Indian Express newspaper as saying on Thursday that CERT-In, the computer emergency response team based in New Delhi, had started the probe, adding that "Apple confirmed it has received the notice for investigation". A political aide to Vaishnaw and two officials in the federal home ministry told Reuters that all the cyber security concerns raised by the politicians were being scrutinised.
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NEW DELHI, Nov 2 (Reuters) - India's cyber security agency is investigating complaints of mobile phone hacking by senior opposition politicians who reported receiving warning messages from Apple AAPL.O, Information Technology Minister Ashwani Vaishnaw said. This week, Indian opposition leader Rahul Gandhi accused Prime Minister Narendra Modi's government of trying to hack into opposition politicians' mobile phones after some lawmakers shared screenshots on social media of a notification quoting the iPhone manufacturer as saying: "Apple believes you are being targeted by state-sponsored attackers who are trying to remotely compromise the iPhone associated with your Apple ID". A senior minister from Modi's government also said he had received the same notification on his phone.
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NEW DELHI, Nov 2 (Reuters) - India's cyber security agency is investigating complaints of mobile phone hacking by senior opposition politicians who reported receiving warning messages from Apple AAPL.O, Information Technology Minister Ashwani Vaishnaw said. This week, Indian opposition leader Rahul Gandhi accused Prime Minister Narendra Modi's government of trying to hack into opposition politicians' mobile phones after some lawmakers shared screenshots on social media of a notification quoting the iPhone manufacturer as saying: "Apple believes you are being targeted by state-sponsored attackers who are trying to remotely compromise the iPhone associated with your Apple ID". Apple said it did not attribute the threat notifications to "any specific state-sponsored attacker", adding that "it's possible that some Apple threat notifications may be false alarms, or that some attacks are not detected".
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NEW DELHI, Nov 2 (Reuters) - India's cyber security agency is investigating complaints of mobile phone hacking by senior opposition politicians who reported receiving warning messages from Apple AAPL.O, Information Technology Minister Ashwani Vaishnaw said. This week, Indian opposition leader Rahul Gandhi accused Prime Minister Narendra Modi's government of trying to hack into opposition politicians' mobile phones after some lawmakers shared screenshots on social media of a notification quoting the iPhone manufacturer as saying: "Apple believes you are being targeted by state-sponsored attackers who are trying to remotely compromise the iPhone associated with your Apple ID". A senior minister from Modi's government also said he had received the same notification on his phone.
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12789.0
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2023-11-01 00:00:00 UTC
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Qualcomm forecasts revenue, profits above estimates
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AAPL
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https://www.nasdaq.com/articles/qualcomm-forecasts-revenue-profits-above-estimates
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nan
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nan
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By Stephen Nellis and Chavi Mehta
Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook.
The San Diego, California-based company forecast current-quarter revenue of$9.1 billion to $9.9 billion, with a midpoint above analysts' expectations of $9.2 billion according to LSEG data. Qualcomm predicted current-quarter adjusted profits of $2.25 to $2.45 per share, beating expectations of $2.23 according to LSEG.
For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
Chipmakers have been grappling with a smartphone market slump. Qualcomm is also facing new competition from Huawei TechnologiesHWT.UL, which has resumed producing its own smartphone chips after relying on the U.S. company for the past several years.
Analysts also expect major Qualcomm customer Samsung Electronics 005930.KS to resume using some of its own in-house chips after using all Qualcomm chips in its most recent devices.
But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. Last week it disclosed plans for a renewed push into the laptop market with backing from Microsoft MSFT.O.
Fourth-quarter sales in Qualcomm's chip unit were $7.4 billion, beating analysts' estimate of $7.26 billion according to FactSet data. In Qualcomm's intellectual property licensing business, sales of $1.26 billion were in line with estimates of $1.25 billion according to FactSet data.
(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Richard Chang)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. Qualcomm is also facing new competition from Huawei TechnologiesHWT.UL, which has resumed producing its own smartphone chips after relying on the U.S. company for the past several years.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share, according to LSEG data.
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By Stephen Nellis and Chavi Mehta Nov 1 (Reuters) - Chip designer Qualcomm QCOM.O forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple AAPL.O helps boost its outlook. But Qualcomm is also making advances, saying in September it signed a fresh supply agreement with iPhone maker Apple AAPL.O that runs to 2026. Chipmakers have been grappling with a smartphone market slump.
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12790.0
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2023-11-01 00:00:00 UTC
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3 Warren Buffett Stocks To Buy on the Next Pullback
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-on-the-next-pullback
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nan
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Navigating the stock market lately feels like riding a rollercoaster. While stocks are rallying on the latest Fed rate decision today, and November offers the advantage of bullish seasonality, there are still plenty of reasons to be wary - from the ongoing conflict in the Gaza Strip, to a troubling lack of leadership from small-cap stocks amid the market's current bounce out of correction territory.
However, there's one way to take advantage of the market's pullback from its summertime highs - and any future dips, as well. By initiating or adding to long-term stock investments at lower prices, it's possible to achieve a more favorable cost basis over time, and maximize returns.
And when it comes to long-term investing returns, there's no one quite like Warren Buffett, a.k.a. the “Oracle of Omaha.” He's legendary for picking stocks that can weather every type of business cycle, and advocates being "greedy when others are fearful.” With plenty of uncertainty still on the horizon, let's take a look at a few Warren Buffett stocks worth buying on every dip.
Apple: The Tech Giant That Keeps on Innovating
Apple (AAPL) is one of the most valuable and influential companies in the world. It is known for its innovative products and services, such as the iPhone, iPad, Mac, Apple Music, iCloud, and more. With a staggering market capitalization of over $2.6 trillion, Apple currently holds the title of the world's largest company by this metric.
Apple’s stock performance has been impressive in 2023, despite some volatility and challenges. The stock has risen by 34% year-to-date, outperforming the S&P 500 Index ($SPX) by 24 percentage points. The stock reached an all-time high above $198 per share in July, but AAPL sold off after its most recent earnings report got a chilly reception on Wall Street.
www.barchart.com
The company not only provides dividends at a yield of 0.55% but also enhances shareholder value through share buybacks. In Q3 2023 alone, Apple distributed $3.8 billion in dividends and allocated approximately $18 billion to share buybacks.
Investors should note that AAPL is set to report earnings this Thursday, Nov. 2, with Wall Street looking for EPS of $1.39 per share alongside a fourth consecutive quarterly decline in earnings. Looking ahead, earnings are expected to surge to $6.54 per share in fiscal 2024.
www.barchart.com
Analysts remain optimistic about Apple's stock, with the consensus leaning towards a “moderate buy.” Out of 29 analysts tracking the stock, there are 17 “strong buy” recommendations, three “moderate buy” recommendations, and nine “holds.” The mean target price for the stock is $205.46, indicating 18% potential upside from current prices.
www.barchart.com
Coca-Cola: The Beverage Leader That's a Dividend King
Coca-Cola (KO), the global beverage giant, boasts an impressive lineup of over 500 brands and 4,300 products, spanning soft drinks, juices, water, sports drinks, energy drinks, tea, and coffee. This colossal company operates in 200+ countries, catering to a staggering 1.9 billion consumers daily.
In terms of stock price, Coca-Cola's shares are down 9% in 2023. That has left the company with a market value of around $244.2 billion.
www.barchart.com
Even with that hiccup in the stock price, Coca-Cola still shines as an attractive investment. They deliver a yield of 3.22%, backed by 60 consecutive years of increased dividend payouts - establishing the stock as a legit Dividend King. With a reasonable dividend payout ratio of 69%, Coca-Cola retains sufficient earnings to reinvest in its growth.
And Coca-Cola continues to beat the Street on earnings. Q3 EPS of $0.74 topped the consensus estimate of $0.69, while revenue of $11.91 billion surpassed expectations by a wide margin.
www.barchart.com
Among 14 analysts providing recommendations on KO, 11 call it a “strong buy,” one says “moderate buy,” and one suggests a “hold.” The mean target price for the stock sits at $65.50, indicating 16% upside potential from the current price.
www.barchart.com
Visa: The Payment Processor That Facilitates Global Commerce
Visa (V) s a global payment technology leader, connecting millions of consumers, businesses, financial institutions, and governments across 200+ countries and regions. It empowers swift, secure, and user-friendly electronic transactions, spanning various platforms like debit and credit cards, prepaid cards, mobile devices, and online services.
Notably, Visa's stock is up 15% YTD, outperforming the broader S&P 500. The shares also offer a dividend yield of 0.77%.
www.barchart.com
Financially, Visa demonstrates remarkable consistency in beating bottom-line estimates. The company in Q3 2023 reported a 27% year-over-year revenue increase, reaching $8.61 billion, and a 21% improvement in EPS to $2.33. Notably, Visa exceeded analysts' expectations in key metrics, including net income and payment volume.
Longer-term, analysts expect earnings to grow to $11.23 in fiscal 2025.
www.barchart.com
In the eyes of analysts, Visa's stock continues to shine. Out of 24 analysts, 18 rate it as a “strong buy,” four as a “moderate buy,” and two as a “hold.” The average target price for Visa's stock is $268.88 indicating 12.7% potential upside from the current price.
www.barchart.com
Conclusion
Without a doubt, Apple (AAPL), Coca-Cola (KO), and Visa (V) are top Warren Buffett stocks - but given their lengthy track records of solid performance and upbeat long-term forecasts, it's worth waiting for pullbacks to pick up shares of these names. So, on the next dip, consider adding these top-rated names to your portfolio.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock reached an all-time high above $198 per share in July, but AAPL sold off after its most recent earnings report got a chilly reception on Wall Street. www.barchart.com Conclusion Without a doubt, Apple (AAPL), Coca-Cola (KO), and Visa (V) are top Warren Buffett stocks - but given their lengthy track records of solid performance and upbeat long-term forecasts, it's worth waiting for pullbacks to pick up shares of these names. Apple: The Tech Giant That Keeps on Innovating Apple (AAPL) is one of the most valuable and influential companies in the world.
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www.barchart.com Conclusion Without a doubt, Apple (AAPL), Coca-Cola (KO), and Visa (V) are top Warren Buffett stocks - but given their lengthy track records of solid performance and upbeat long-term forecasts, it's worth waiting for pullbacks to pick up shares of these names. Apple: The Tech Giant That Keeps on Innovating Apple (AAPL) is one of the most valuable and influential companies in the world. The stock reached an all-time high above $198 per share in July, but AAPL sold off after its most recent earnings report got a chilly reception on Wall Street.
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www.barchart.com Conclusion Without a doubt, Apple (AAPL), Coca-Cola (KO), and Visa (V) are top Warren Buffett stocks - but given their lengthy track records of solid performance and upbeat long-term forecasts, it's worth waiting for pullbacks to pick up shares of these names. Apple: The Tech Giant That Keeps on Innovating Apple (AAPL) is one of the most valuable and influential companies in the world. The stock reached an all-time high above $198 per share in July, but AAPL sold off after its most recent earnings report got a chilly reception on Wall Street.
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Apple: The Tech Giant That Keeps on Innovating Apple (AAPL) is one of the most valuable and influential companies in the world. The stock reached an all-time high above $198 per share in July, but AAPL sold off after its most recent earnings report got a chilly reception on Wall Street. Investors should note that AAPL is set to report earnings this Thursday, Nov. 2, with Wall Street looking for EPS of $1.39 per share alongside a fourth consecutive quarterly decline in earnings.
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12791.0
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2023-11-01 00:00:00 UTC
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Disney's ESPN could be valued at $24 bln, likely buyers include Apple, Verizon - BofA
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AAPL
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https://www.nasdaq.com/articles/disneys-espn-could-be-valued-at-%2424-bln-likely-buyers-include-apple-verizon-bofa
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nan
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nan
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Nov 1 (Reuters) - Walt Disney's DIS.O ESPN sports network could secure an enterprise value of $24 billion and attract investment interest from sports leagues, tech firms like Apple and telecom majors including Verizon, according to BofA Global Research.
In a bid to lure an outside investor, the media giant last month disclosed the financials of ESPN that revealed declining sales and profit at the network considered to be the crown jewel of its traditional TV business.
CEO Bob Iger has said Disney wants to keep ESPN and will try to create a streaming app for it by either forming a joint venture or finding a buyer for a minority stake in the network.
That means a 36% interest in ESPN would be up for sale, assuming Disney intends to retain a 51% majority interest and accounting for media company Hearst's 20% stake, BofA analysts led by Jessica Reif Ehrlich wrote in a note published Wednesday.
Interested parties could include leagues like the National Football League and the National Basketball Association, newcomers like Apple AAPL.O and Amazon.com AMZN.O, which are jostling to get into live sports, and distributors like Verizon VZ.O and Comcast CMCSA.O, the note said.
Disney would gain a lot from the deal as more capital would mean ESPN would be able to strengthen its offerings, keep the option of a spin-off open and help the network focus on high-growth streaming, the brokerage said.
Rising cord-cutting has hit the linear television business, and acquiring sports rights has become an increasingly expensive affair, with future sports rights expected to be north of $69 billion.
Benefits to prospective buyers, however, appear "nebulous", BofA said.
"ESPN is still a strong business and a premier brand, but it sits at the nexus of possible major business transformation. Transitions have historically proven difficult and typically not conducive to significant growth," it added.
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interested parties could include leagues like the National Football League and the National Basketball Association, newcomers like Apple AAPL.O and Amazon.com AMZN.O, which are jostling to get into live sports, and distributors like Verizon VZ.O and Comcast CMCSA.O, the note said. In a bid to lure an outside investor, the media giant last month disclosed the financials of ESPN that revealed declining sales and profit at the network considered to be the crown jewel of its traditional TV business. CEO Bob Iger has said Disney wants to keep ESPN and will try to create a streaming app for it by either forming a joint venture or finding a buyer for a minority stake in the network.
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Interested parties could include leagues like the National Football League and the National Basketball Association, newcomers like Apple AAPL.O and Amazon.com AMZN.O, which are jostling to get into live sports, and distributors like Verizon VZ.O and Comcast CMCSA.O, the note said. Nov 1 (Reuters) - Walt Disney's DIS.O ESPN sports network could secure an enterprise value of $24 billion and attract investment interest from sports leagues, tech firms like Apple and telecom majors including Verizon, according to BofA Global Research. That means a 36% interest in ESPN would be up for sale, assuming Disney intends to retain a 51% majority interest and accounting for media company Hearst's 20% stake, BofA analysts led by Jessica Reif Ehrlich wrote in a note published Wednesday.
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Interested parties could include leagues like the National Football League and the National Basketball Association, newcomers like Apple AAPL.O and Amazon.com AMZN.O, which are jostling to get into live sports, and distributors like Verizon VZ.O and Comcast CMCSA.O, the note said. Nov 1 (Reuters) - Walt Disney's DIS.O ESPN sports network could secure an enterprise value of $24 billion and attract investment interest from sports leagues, tech firms like Apple and telecom majors including Verizon, according to BofA Global Research. That means a 36% interest in ESPN would be up for sale, assuming Disney intends to retain a 51% majority interest and accounting for media company Hearst's 20% stake, BofA analysts led by Jessica Reif Ehrlich wrote in a note published Wednesday.
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Interested parties could include leagues like the National Football League and the National Basketball Association, newcomers like Apple AAPL.O and Amazon.com AMZN.O, which are jostling to get into live sports, and distributors like Verizon VZ.O and Comcast CMCSA.O, the note said. Nov 1 (Reuters) - Walt Disney's DIS.O ESPN sports network could secure an enterprise value of $24 billion and attract investment interest from sports leagues, tech firms like Apple and telecom majors including Verizon, according to BofA Global Research. In a bid to lure an outside investor, the media giant last month disclosed the financials of ESPN that revealed declining sales and profit at the network considered to be the crown jewel of its traditional TV business.
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12792.0
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2023-11-01 00:00:00 UTC
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Apple Earnings: Why Guidance Will Be Key
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AAPL
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https://www.nasdaq.com/articles/apple-earnings%3A-why-guidance-will-be-key
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nan
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Tech giant Apple (NASDAQ: AAPL) is scheduled to report its fiscal fourth-quarter results on Thursday. Wall Street will undoubtedly be watching the report closely. After all, the company's approximately $2.7 trillion market cap is big enough to influence major market indexes like the S&P 500; Apple represents about 7% of the index. So investors will be watching the report for both company-specific insight and to get a window into the overall economy.
While the company's fiscal fourth-quarter financial performance will definitely be important, investors may pay even closer attention to another metric: management's guidance for its fiscal first-quarter revenue. The company's commentary about the important holiday quarter will provide a timely checkup on how Apple's new products are faring with customers, as well as some clues about consumers' willingness to open their wallets this shopping season.
Can Apple's top-line trends keep improving?
On the surface, tech giant Apple's recent top-line performance has been disappointing. But a close look shows some reasons for investors to be upbeat.
For instance, Apple's fiscal third-quarter revenue fell 1% year over year. Yet revenue actually increased 3% year over year when adjusted for the foreign exchange headwinds the company faced during the period.
Additionally, Apple's revenue trend in fiscal Q3 improved compared to the fiscal second quarter. Revenue fell 3% year over year in fiscal Q2 and gained just 2% year over year when adjusted for foreign exchange headwinds.
So the question going into the fiscal fourth quarter is whether Apple's revenue trends can keep improving. Going into the quarter, management said it expected its revenue performance for the period to be similar to fiscal Q3. But Apple's revenue guidance is typically conservative. So you could speculate that the company's internal expectations may be for revenue trends to continue improving.
Holiday quarter guidance: What to look for
With this backdrop, investors have a better basis to think about what management could guide for when it comes to the important holiday quarter. In general, revenue trends seem to be improving, albeit slowly. So, investors are likely hoping management will guide for a year-over-year revenue growth rate in the low single digits for fiscal Q1.
Analysts, on average, expect Apple to return to growth in fiscal Q1. The consensus forecast for the quarter is revenue of $123 billion, up 5% year over year. Such a significant uptick in growth during a tough macroeconomic environment would likely impress Wall Street and shareholders, as it would suggest the company's new products are resonating with customers.
Of course, much of the guidance Apple provides for fiscal Q1 when it reports earnings after market close on Thursday will depend on how well Apple's recently launched iPhone models are selling. Typically accounting for well over half of Apple's revenue during the holiday quarter each year, strong demand and supply of iPhone 15 and 15 Pro may be the most important pieces to a good holiday quarter. But a robust suite of other new products beyond iPhone should help, too.
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Daniel Sparks has no position in any of the stocks mentioned. His clients my owns shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech giant Apple (NASDAQ: AAPL) is scheduled to report its fiscal fourth-quarter results on Thursday. The company's commentary about the important holiday quarter will provide a timely checkup on how Apple's new products are faring with customers, as well as some clues about consumers' willingness to open their wallets this shopping season. So, investors are likely hoping management will guide for a year-over-year revenue growth rate in the low single digits for fiscal Q1.
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Tech giant Apple (NASDAQ: AAPL) is scheduled to report its fiscal fourth-quarter results on Thursday. On the surface, tech giant Apple's recent top-line performance has been disappointing. For instance, Apple's fiscal third-quarter revenue fell 1% year over year.
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Tech giant Apple (NASDAQ: AAPL) is scheduled to report its fiscal fourth-quarter results on Thursday. Additionally, Apple's revenue trend in fiscal Q3 improved compared to the fiscal second quarter. Of course, much of the guidance Apple provides for fiscal Q1 when it reports earnings after market close on Thursday will depend on how well Apple's recently launched iPhone models are selling.
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Tech giant Apple (NASDAQ: AAPL) is scheduled to report its fiscal fourth-quarter results on Thursday. Wall Street will undoubtedly be watching the report closely. Of course, much of the guidance Apple provides for fiscal Q1 when it reports earnings after market close on Thursday will depend on how well Apple's recently launched iPhone models are selling.
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12793.0
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2023-11-01 00:00:00 UTC
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The Wealth Builder’s Toolkit: Top 3 Stocks to Supercharge Your Portfolio
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AAPL
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https://www.nasdaq.com/articles/the-wealth-builders-toolkit%3A-top-3-stocks-to-supercharge-your-portfolio
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’m tasked with coming up with three stocks to buy that will supercharge your portfolio. These are companies whose stocks will build wealth over time.
Call it patient capital. Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) makes the grade. But that’s an obvious choice.
To come up with the three names, I’ll use three criteria reflecting quality businesses with rock-solid financials that generate sustainable growth.
Criteria # 1: The company has a strong balance sheet. That’s especially important in today’s higher interest rate environment. What’s a strong balance sheet? I prefer businesses with net cash or, at the very least, net debt less than 25% of their market capitalization.
Criteria # 2: The company has an above-average return on invested capital (ROIC). This is defined, according to MarketWatch’s Philip van Doorn, as “its profit divided by the sum of the carrying value of its common stock, preferred stock, long-term debt and capitalized lease obligations.”
Criteria # 3: The company has a CEO who’s been in their job for at least five years, preferably longer. A long tenure is generally the sign of someone who can lead through different economic cycles.
While there are plenty of quality smaller companies, I’ve limited my selections to stocks with a market cap of at least $10 billion.
Fortinet (FTNT)
Source: Sundry Photography / Shutterstock.com
Fortinet (NASDAQ:FTNT) qualifies with $2.32 billion in net cash, an average ROIC over the past 12 quarters of 55.39%, and Fortinet CEO Ken Xie has held the top job since co-founding the company in October 2000 with his brother Michael Xie.
The cybersecurity company has over 680,000 global customers, generating more than $1.5 billion in quarterly billings from its 50+ enterprise cybersecurity products. It reports earnings on Nov. 2 after the markets close. The company is expected to deliver $1.35 billion in revenue — 20% higher year-over-year (YOY) — with earnings per share of $0.36 (10% higher YOY).
Of the 30 analysts covering its stock, 21 rate it a Buy or Strong Buy, with a $72.41 target price, 27% higher than where it’s currently trading. FTNT shares are up 294% over the past five years, over 3x the Nasdaq.
“Fortinet has been GAAP profitable and free cash flow positive every year since its IPO in 2009,” states pg. 5 of the company’s September 2023 presentation.
The company aims to deliver annually on the “Rule of 40”, defined as the combination of revenue growth and non-GAAP operating margin. In 2023, it expects it to be 48%. While down from 60% in 2022, it’s still well above 40%. Since 2009, it has met the rule in all but three years.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011.
It’s hard to add anything new to what’s already been written about the iPhone maker in recent years. So, I’m returning to something I said about Apple in July 2014.
“I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. If the iWatch and iTV along with a bigger iPhone 6 are all well-received, it’s a certainty that growth investors will return to the flock,” I wrote on July 25, 2014.
How’d that work out?
In the nine months ended July 1, 2023, its gross margin was 43.8%, 20 basis points higher than a year earlier. While top-line revenue will likely fall in 2023 due to lower sales across all its products, offset by higher services revenue, it has increased annual sales by double digits multiple times since 2014.
While we’re still waiting on an Apple TV and Apple Car, the iWatch and iPhone have certainly delivered for shareholders.
Apple reports Q4 results on Nov. 2 after the close. It won’t be pretty, but consider 2023 a reset year for the company. I’m sure Warren Buffett does.
AutoZone (AZO)
Source: Memory Stockphoto/ShutterStock.com
AutoZone (NYSE:AZO) qualifies with $10.2 billion in net debt (23% of its market cap), an average ROIC over the past 12 quarters of 38.60%, and CEO Bill Rhodes has held the top job since 2005.
It’s not been a stellar year for AZO stock. It’s up just 1.9% year-to-date and down more than 2% over the past 52 weeks. However, AutoZone shares are up 226% over the past five years, more than 4x the S&P 500.
Of the 27 analysts covering its stock, 12 rate it a Buy or Strong Buy, with a $2,849.75 target price, 15% higher than where it’s currently trading.
In 2023, it generated $17.46 billion in revenue, 7.4% higher than in 2022, with an operating profit of $3.47 billion, 6.1% higher than a year earlier. These are workmanlike, unspectacular numbers, so its shares are trading at 2.71x sales, its lowest multiple since 2020.
The retailer of automotive aftermarket parts expects 2024 to be a better year. It finished fiscal 2023 (August 26) with 6,300 stores in the U.S., 740 in Mexico and 100 in Brazil. As Rhodes said in its Q4 2023 press release, “[W]e continued to be pleased with our International stores’ performance and we are excited about future growth prospects across both Mexico and Brazil.”
The need for replacement parts is never going away. That’s about as good a guarantee as you’ll get in business. Its quality management takes care of the rest.
AutoZone is the sleeper stock of the three.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post The Wealth Builder’s Toolkit: Top 3 Stocks to Supercharge Your Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. As Rhodes said in its Q4 2023 press release, “[W]e continued to be pleased with our International stores’ performance and we are excited about future growth prospects across both Mexico and Brazil.” The need for replacement parts is never going away.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. Fortinet (FTNT) Source: Sundry Photography / Shutterstock.com Fortinet (NASDAQ:FTNT) qualifies with $2.32 billion in net cash, an average ROIC over the past 12 quarters of 55.39%, and Fortinet CEO Ken Xie has held the top job since co-founding the company in October 2000 with his brother Michael Xie.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. This is defined, according to MarketWatch’s Philip van Doorn, as “its profit divided by the sum of the carrying value of its common stock, preferred stock, long-term debt and capitalized lease obligations.” Criteria # 3: The company has a CEO who’s been in their job for at least five years, preferably longer.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. FTNT shares are up 294% over the past five years, over 3x the Nasdaq.
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12794.0
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2023-11-01 00:00:00 UTC
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Wednesday's ETF with Unusual Volume: DJD
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AAPL
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https://www.nasdaq.com/articles/wednesdays-etf-with-unusual-volume%3A-djd
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nan
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Wednesday, with over 661,000 shares traded versus three month average volume of about 32,000. Shares of DJD were off about 0.3% on the day.
Components of that ETF with the highest volume on Wednesday were Apple, trading up about 0.8% with over 20.9 million shares changing hands so far this session, and Intel, up about 1.6% on volume of over 17.1 million shares. Microsoft is the component faring the best Wednesday, higher by about 1.9% on the day, while Nike is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 2.2%.
VIDEO: Wednesday's ETF with Unusual Volume: DJD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Wednesday, with over 661,000 shares traded versus three month average volume of about 32,000. Components of that ETF with the highest volume on Wednesday were Apple, trading up about 0.8% with over 20.9 million shares changing hands so far this session, and Intel, up about 1.6% on volume of over 17.1 million shares. Microsoft is the component faring the best Wednesday, higher by about 1.9% on the day, while Nike is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 2.2%.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Wednesday, with over 661,000 shares traded versus three month average volume of about 32,000. Microsoft is the component faring the best Wednesday, higher by about 1.9% on the day, while Nike is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 2.2%. VIDEO: Wednesday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Wednesday, with over 661,000 shares traded versus three month average volume of about 32,000. Components of that ETF with the highest volume on Wednesday were Apple, trading up about 0.8% with over 20.9 million shares changing hands so far this session, and Intel, up about 1.6% on volume of over 17.1 million shares. Microsoft is the component faring the best Wednesday, higher by about 1.9% on the day, while Nike is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 2.2%.
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Components of that ETF with the highest volume on Wednesday were Apple, trading up about 0.8% with over 20.9 million shares changing hands so far this session, and Intel, up about 1.6% on volume of over 17.1 million shares. Microsoft is the component faring the best Wednesday, higher by about 1.9% on the day, while Nike is lagging other components of the Invesco Dow Jones Industrial Average Dividend ETF, trading lower by about 2.2%. VIDEO: Wednesday's ETF with Unusual Volume: DJD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12795.0
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2023-10-31 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, McKesson, Emerson Electric and Bae Systems
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-mckesson-emerson-electric-and-bae-systems
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nan
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nan
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For Immediate Release
Chicago, IL – October 31, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, McKesson MCK, Emerson Electric EMR and Bae Systems BAESY.
Here are highlights from Monday’s Analyst Blog:
Apple, Bitcoin and the FOMC: Global Week Ahead
Across the Global Week Ahead, central bankers keep stock traders on alert:
· The Bank of Japan (BoJ) reports Tuesday
· The U.S. Federal Reserve reports Wednesday, and
· The Bank of England (BoE) reports Thursday
Out AMC on Thursday, Apple tops the bill for earnings, on both sides of the Atlantic.
On Friday at 8:30 am ET, we get the OCT U.S. nonfarm jobs report.
Next are Reuters' five world market themes, reordered for equity traders—
(1) This week will be a core S&P500 earnings season week.
Apple headlines another busy week of U.S. corporate earnings, with the iPhone maker reporting AMC on Thursday.
Shares of Apple, the world's largest company by market value, have helped drive equity indexes higher this year, along with shares of other mega-cap U.S. tech and growth companies. But the stock has pulled back sharply since late July, when the S&P500 hit its high for 2023.
Results already in from mega-caps have prompted a mixed reaction, with shares of Alphabet and Tesla slumping after their respective reports.
Consumers' spending habits will also be on display.
Other companies set to report include:
· Caterpillar and Pfizer on Tuesday
· Mondelez on Wednesday, and
· Starbucks and Eli Lilly on Thursday
(2) Bitcoin prices are rising, rising... and then?
Bitcoin has had a stellar ride recently, with traders getting excited about the possibility that the U.S. Securities and Exchange Commission (SEC) could approve an application for a spot bitcoin ETF.
Earlier this month, bitcoin jumped sharply on a false report that BlackRock's ETF application had been approved.
Last week, a listing of BlackRock's planned ETF on a clearing house website sent speculators into a frenzy — even after the clearing house said this was just standard practice for pending applications rather than a sign of any regulatory approval.
Still, the cryptocurrency is trading at around half the $69,000 peak it reached in November 2021.
Meanwhile, the fraud trial of Sam Bankman-Fried, whose crypto firm FTX collapsed a year ago, is captivating crypto watchers around the globe.
(3) On Wednesday, a two-day U.S. Federal Reserve meeting breaks up.
A bruised U.S. stock market will turn its attention to the Fed monetary policy meeting on Wednesday, with investors eager to hear policymakers' views on the state of the economy and the outlook for interest rates.
Futures tied to the main policy rate show most traders don't expect the Fed to raise borrowing costs, though some believe a rate increase could come when the central bank meets again in December.
Signs that policymakers still intend to keep rates around current levels through next year could bolster bets on further upside in U.S. Treasury yields, whose climb to their highest levels in more 15 years has contributed to a sharp sell-off in the S&P500.
The index has fallen more than -10% since hitting a year-high in late-July, though is still up nearly +8% on the year.
(4) On Tuesday, what does the Bank of Japan (BoJ) do to yields?
It's no secret that the Bank of Japan has a penchant for surprises, making Halloween Tuesday a fitting day for its policy announcement.
October's global bond market ructions have made the meeting very much a live one, as soaring U.S. Treasury yields helped push Japan's benchmark to decade highs every day for over a week.
While the peak of 0.885% is still below the BOJ's 1% policy ceiling, that's partly because the central bank has been leaping into the market with emergency operations about twice a week on average. Overnight index swaps offer a cleaner view of where markets put 10-year yields without BOJ interference, popping as high as 1.0863% in recent days.
Governor Kazuo Ueda has insisted the bank will take a patient approach to removing stimulus, but markets will remember his comments from late July about maintaining accommodative policy — just days before the last surprise tweak.
(5) On Thursday, the Bank of England steps up to the plate.
How many policymakers does it take to set interest rates when inflation is high and the economy is flat-lining? The answer in the Bank of England's case is nine, and they will gather in committee on Nov. 2nd for their penultimate meeting of 2023.
Ahead of the Monetary Policy Committee (MPC's) first meeting of 2023, inflation was running at 10.1%, GDP showed 1% year-on-year growth and interest rates were at 3.5%.
Fast forward to now, and year-on-year growth has halved, rates are at 5.25% and inflation is still high at 6.7% — well above 4.3% in the Eurozone and 3.7% in the United States.
The BoE, like other central banks, will want to ram home the message that rates won't fall anytime soon.
Right now, markets are pretty sure of at least one, if not two, cuts next year.
It could take some tough talk to shift that.
Zacks #1 Rank (STRONG BUY) Stocks
(1) McKesson: This is a $451 a share stock in the Medical-Dental Supplies industry. The market cap is $61.1B. I see a Zacks Value score of A, a Zack Growth score of C and a Zacks Momentum score of F.
San Francisco, CA-based McKesson Corp. is a health care services and information technology company.
McKesson operates through two segments:
· The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
· The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain and strategic management software solutions.
In the fourth quarter of fiscal 2022, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, International, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson's role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY23 at a Glance
Revenues in fiscal 2023 grossed $276.71 billion, up 5% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (87% of net revenues), International (7.4%), Medical-Surgical Solutions (4%) and Prescription Technology Solutions (1.6%).
(2) Emerson Electric: This is a $89 a share stock in the Manufacturing-Electronics industry. The market cap is $51B. I see a Zacks Value score of C, a Zack Growth score of F and a Zacks Momentum score of A.
Headquartered in St. Louis, MO, Emerson Electric Co. is a diversified global engineering and technology company, with presence in Europe, the Americas, and Asia, Middle East & Africa.
It offers a wide range of products and services to customers in consumer, commercial and industrial markets.
In May 2022, Emerson merged its industrial software businesses — OSI Inc. and its Geological Simulation Software — with Aspen Technology to create "AspenTech."
Post this merger, the company has been reporting under the following three segments:
· Automation Solutions (59.9% of total revenues in fiscal 2022): The segment provides measurement and analytical instrumentation, valves, actuators and regulators, industrial solutions, and process control systems and solutions. Notably, the segment sells its products globally through various distribution channels like network of sales representatives, direct sales force and independent distributors. In the United States, half of the products are sold through a direct sales force, while the rest mainly through independent sales representatives and distributors. In Europe and Asia, the segment primarily employs a direct sales force.
· Commercial and Residential Solutions (36.8%): The segment provides products and services used in commercial air conditioning, residential cooling and heating, industrial and commercial refrigeration, and cold chain management. Also, the segment offers professional tools and appliance solutions. In June 2023, the company completed the divestiture of Climate Technologies to Blackstone. This segment employs a direct sales channel in an effort to distribute its products and solutions to end users and original equipment manufacturers. It also uses online retailers and independent distributor networks to market its products in various countries.
· AspenTech (3.3%): The segment offers asset optimization software that enables industrial manufacturers to design, operate, and maintain their operations for optimum performance. The software also creates value through improved operational efficiency and productivity, reduces downtime and safety risks, and decreases energy consumption and emissions.
(3) Bae Systems: This is a $54 a share stock in the Aerospace-Defense Equipment industry. The market cap is $4.9B. I see a Zacks Value score of B, a Zack Growth score of B and a Zacks Momentum score of F.
BAE Systems is a global company engaged in the development, delivery and support of advanced defense and aerospace systems in the air, on land and at sea.
BAE Systems Inc. is the U.S. subsidiary of BAE Systems plc.
Headquartered in Rockville, MD, BAE Systems Inc. consists of three Operating Groups that provide:
· Support and service solutions for current and future defense, intelligence and civilian systems
· Design, develop and manufacture a wide range of electronic systems and subsystems for both military and commercial applications; and
· Design, develop, produce, and provide service support of armored combat vehicles, artillery systems and intelligent munitions
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Emerson Electric Co. (EMR) : Free Stock Analysis Report
McKesson Corporation (MCK) : Free Stock Analysis Report
Bae Systems PLC (BAESY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple AAPL, McKesson MCK, Emerson Electric EMR and Bae Systems BAESY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Emerson Electric Co. (EMR) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Bae Systems PLC (BAESY) : Free Stock Analysis Report To read this article on Zacks.com click here. A bruised U.S. stock market will turn its attention to the Fed monetary policy meeting on Wednesday, with investors eager to hear policymakers' views on the state of the economy and the outlook for interest rates.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Emerson Electric Co. (EMR) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Bae Systems PLC (BAESY) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple AAPL, McKesson MCK, Emerson Electric EMR and Bae Systems BAESY. Here are highlights from Monday’s Analyst Blog: Apple, Bitcoin and the FOMC: Global Week Ahead Across the Global Week Ahead, central bankers keep stock traders on alert: · The Bank of Japan (BoJ) reports Tuesday · The U.S. Federal Reserve reports Wednesday, and · The Bank of England (BoE) reports Thursday Out AMC on Thursday, Apple tops the bill for earnings, on both sides of the Atlantic.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Emerson Electric Co. (EMR) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Bae Systems PLC (BAESY) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple AAPL, McKesson MCK, Emerson Electric EMR and Bae Systems BAESY. Here are highlights from Monday’s Analyst Blog: Apple, Bitcoin and the FOMC: Global Week Ahead Across the Global Week Ahead, central bankers keep stock traders on alert: · The Bank of Japan (BoJ) reports Tuesday · The U.S. Federal Reserve reports Wednesday, and · The Bank of England (BoE) reports Thursday Out AMC on Thursday, Apple tops the bill for earnings, on both sides of the Atlantic.
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Stocks recently featured in the blog include: Apple AAPL, McKesson MCK, Emerson Electric EMR and Bae Systems BAESY. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Emerson Electric Co. (EMR) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Bae Systems PLC (BAESY) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Monday’s Analyst Blog: Apple, Bitcoin and the FOMC: Global Week Ahead Across the Global Week Ahead, central bankers keep stock traders on alert: · The Bank of Japan (BoJ) reports Tuesday · The U.S. Federal Reserve reports Wednesday, and · The Bank of England (BoE) reports Thursday Out AMC on Thursday, Apple tops the bill for earnings, on both sides of the Atlantic.
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12796.0
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2023-10-31 00:00:00 UTC
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After Hours Most Active for Oct 31, 2023 : KVUE, RIVN, PR, ET, AMD, WBD, NEE, AAPL, RTX, O, VCIT, WBA
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-31-2023-%3A-kvue-rivn-pr-et-amd-wbd-nee-aapl-rtx-o-vcit-wba
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The NASDAQ 100 After Hours Indicator is down -43.87 to 14,365.91. The total After hours volume is currently 103,716,523 shares traded.
The following are the most active stocks for the after hours session:
Kenvue Inc. (KVUE) is unchanged at $18.60, with 25,627,317 shares traded. As reported by Zacks, the current mean recommendation for KVUE is in the "buy range".
Rivian Automotive, Inc. (RIVN) is -0.06 at $16.16, with 8,235,624 shares traded.RIVN is scheduled to provide an earnings report on 11/7/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -1.61 per share, which represents a -157 percent increase over the EPS one Year Ago
Permian Resources Corporation (PR) is unchanged at $14.57, with 8,100,642 shares traded.PR is scheduled to provide an earnings report on 11/7/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.39 per share, which represents a 41 percent increase over the EPS one Year Ago
Energy Transfer L.P. (ET) is unchanged at $13.15, with 5,199,147 shares traded.ET is scheduled to provide an earnings report on 11/1/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.29 per share, which represents a 30 percent increase over the EPS one Year Ago
Advanced Micro Devices, Inc. (AMD) is -4.31 at $94.19, with 3,832,867 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Warner Bros. Discovery, Inc. (WBD) is unchanged at $9.94, with 3,695,747 shares traded. As reported by Zacks, the current mean recommendation for WBD is in the "buy range".
NextEra Energy, Inc. (NEE) is -0.05 at $58.25, with 3,216,937 shares traded. As reported by Zacks, the current mean recommendation for NEE is in the "buy range".
Apple Inc. (AAPL) is -0.45 at $170.32, with 2,776,498 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
RTX Corporation (RTX) is +0.08 at $81.47, with 2,748,524 shares traded. RTX's current last sale is 96.99% of the target price of $84.
Realty Income Corporation (O) is -0.03 at $47.35, with 2,644,478 shares traded.O is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1 per share, which represents a 98 percent increase over the EPS one Year Ago
Vanguard Intermediate-Term Corporate Bond ETF (VCIT) is +0.06 at $74.50, with 1,956,939 shares traded. This represents a .98% increase from its 52 Week Low.
Walgreens Boots Alliance, Inc. (WBA) is unchanged at $21.08, with 1,919,416 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Aug 2024. The consensus EPS forecast is $0.89. WBA's current last sale is 78.07% of the target price of $27.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.45 at $170.32, with 2,776,498 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Rivian Automotive, Inc. (RIVN) is -0.06 at $16.16, with 8,235,624 shares traded.RIVN is scheduled to provide an earnings report on 11/7/2023, for the fiscal quarter ending Sep2023. Permian Resources Corporation (PR) is unchanged at $14.57, with 8,100,642 shares traded.PR is scheduled to provide an earnings report on 11/7/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.45 at $170.32, with 2,776,498 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -1.61 per share, which represents a -157 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 0.39 per share, which represents a 41 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.45 at $170.32, with 2,776,498 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -1.61 per share, which represents a -157 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 0.39 per share, which represents a 41 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.45 at $170.32, with 2,776,498 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The NASDAQ 100 After Hours Indicator is down -43.87 to 14,365.91. Energy Transfer L.P. (ET) is unchanged at $13.15, with 5,199,147 shares traded.ET is scheduled to provide an earnings report on 11/1/2023, for the fiscal quarter ending Sep2023.
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12797.0
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2023-10-31 00:00:00 UTC
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PINS, META, or SNAP: Which Social Media Stock is a “Strong Buy”?
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AAPL
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https://www.nasdaq.com/articles/pins-meta-or-snap%3A-which-social-media-stock-is-a-strong-buy
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After being under pressure due to weak digital ad spending because of macro pressures, increasing competition from TikTok, and the impact of Apple’s (NASDAQ:AAPL) iOS privacy policy changes, social media companies showed strong signs of recovery in the third quarter. However, they warned of unpredictability in Q4 due to the war in the Middle East. With this backdrop in mind, we used TipRanks’ Stock Comparison Tool to place Pinterest (NYSE:PINS), Meta Platforms (NASDAQ:META), and Snap (NYSE:SNAP) against each other to find the most attractive social media stock, as per Wall Street analysts.
Pinterest (NYSE:PINS)
Shares of image-sharing app Pinterest rallied 19% on Tuesday after surpassing analysts’ revenue and earnings estimates for the third quarter. The company’s efforts to deepen engagement and grow monetization delivered the desired results, which reflected in the 8% rise in monthly active users to 482 million.
Revenue increased 11% year-over-year to $763 million, with the company crediting the growth to its “unique differentiators as a visual search, discovery, and shopping platform.” Further, Pinterest’s Q3 2023 adjusted earnings per share (EPS) surged to $0.28 from $0.11 in the prior-year quarter due to higher revenue and disciplined expense management.
Looking ahead, Pinterest expects revenue to rise in the range of 11% to 13% and adjusted operating expenses to decline in the range of 9% to 13%.
Pinterest is enhancing its platform with the deployment of artificial intelligence (AI). It is confident about delivering a mid to high-teens compound annual growth rate (CAGR) in its revenue and expanding its adjusted EBITDA margins to reach the low 30% range over the next three to five years.
Is Pinterest a Buy Now?
In reaction to the impressive Q3 results, Bank of America analyst Justin Post upgraded PINS stock to Buy from Hold and increased the price target to $37 from $32 on Tuesday. Post said that his growth outlook for the company is now "favorable" compared to other social networking rivals.
Other positives highlighted by the analyst included renewed confidence in the company’s new management team and better expense discipline than anticipated, which could drive additional upside in margins and EBITDA.
Also, Post noted that the beginning of the Amazon (NASDAQ:AMZN) deal ramp is getting closer, which is expected to further accelerate PINS’ growth in the first half of 2024. Earlier this year, Pinterest inked a multi-year deal with Amazon, under which the e-commerce giant will be its first partner on third-party ads.
With 19 Buys and 10 Holds, Wall Street has a Moderate Buy consensus rating on Pinterest. The average price target of $34.77 implies 16.4% upside from current levels. Shares have advanced 23% year-to-date.
Meta Platforms (NASDAQ:META)
Last week, social media giant Meta Platforms reported market-crushing third-quarter results, with revenue rising 23% year-over-year to $34.1 billion. This marked a notable acceleration in revenue growth compared to 11% and 3% in Q2 and Q1, respectively, and reflected a solid recovery in digital ad spending.
Moreover, Q3 EPS jumped 168% year-over-year to $4.39, driven by the stellar rise in revenue and robust improvement in operating margin backed by productivity measures.
Despite solid numbers, META shares declined following its Q3 report as the company warned about softness in ad demand at the beginning of Q4 2023 due to the Israel-Hamas war. Also, the company cautioned about a meaningful increase in the Reality Labs division's operating losses next year due to investments in augmented reality (AR) and virtual reality (VR) products and other strategic investments.
Is META a Buy, Sell, or Hold?
JPMorgan analyst Doug Anmuth explained that Meta shares sold off following Q3 earnings release due to management’s commentary about greater ad volatility in Q4 2023 owing to geopolitical issues. The analyst contends that while Meta’s Q4 revenue guidance is wider than usual due to the ongoing Israel-Hamas war, the high-end of the outlook is strong at $40 billion, which indicates mid-20’s% growth.
Anmuth believes that Meta has a solid product platform and plenty of investment opportunities across AI, Reels, Messaging, Threads, and Metaverse. Noting the company’s strong execution and cost discipline, Anmuth raised his price target for META stock to $420 from $400 and reiterated a Buy rating.
Overall, Meta earns Wall Street’s Strong Buy consensus rating based on 37 Buys and one Hold. At $384.34, the average price target implies 27.6% upside potential. Meta shares have rallied over 150% so far in 2023.
Snap (NYSE:SNAP)
Photo messaging app Snap returned to revenue growth in the third quarter, as the company enhanced its ad-targeting tools with AI. Revenue grew 5% year-over-year to $1.19 billion. The company’s GAAP loss per share increased to $0.23 from $0.22 in the prior-year quarter but was lower than analysts’ estimate of a loss per share of $0.24.
Like larger rival Meta, Snap also cautioned investors about the impact of geopolitical tensions on the fourth quarter. In particular, the company said that it noted pauses in spending from “a large number of primarily brand-oriented advertising campaigns” as soon as the war in the Middle East began.
While Snap did not issue formal guidance for Q4, it stated that its internal forecast implies revenue growth in the range of 2% to 6%.
What is the Target Price for Snap?
On October 25, Citigroup analyst Ronald Josey raised his revenue and EBITDA estimates for Q4 and 2024 but maintained a Hold rating on SNAP with a price target of $11.
Josey expects the company’s growth to continue to lag peers in Q4 2023. Further, he anticipates that margins will be pressured by the company’s generative AI investments. He added that a slowdown in user growth and growing competition from Instagram, Alphabet (NASDAQ:GOOGL)-owned YouTube’s Shorts, and TikTok might also drag down the stock.
Including Josey, 20 analysts have a Hold rating on Snap stock, while one has a Buy recommendation and three have a Sell rating. The average price target of $10.03 implies that the stock could be range-bound at current levels. Shares have risen about 12% year-to-date.
Conclusion
Wall Street is highly bullish on Meta Platforms due to its massive customer base, AI prospects, and focus on cost efficiency. Despite a solid year-to-date rally, analysts see higher upside potential in Meta stock than Pinterest and Snap.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After being under pressure due to weak digital ad spending because of macro pressures, increasing competition from TikTok, and the impact of Apple’s (NASDAQ:AAPL) iOS privacy policy changes, social media companies showed strong signs of recovery in the third quarter. It is confident about delivering a mid to high-teens compound annual growth rate (CAGR) in its revenue and expanding its adjusted EBITDA margins to reach the low 30% range over the next three to five years. Other positives highlighted by the analyst included renewed confidence in the company’s new management team and better expense discipline than anticipated, which could drive additional upside in margins and EBITDA.
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After being under pressure due to weak digital ad spending because of macro pressures, increasing competition from TikTok, and the impact of Apple’s (NASDAQ:AAPL) iOS privacy policy changes, social media companies showed strong signs of recovery in the third quarter. With this backdrop in mind, we used TipRanks’ Stock Comparison Tool to place Pinterest (NYSE:PINS), Meta Platforms (NASDAQ:META), and Snap (NYSE:SNAP) against each other to find the most attractive social media stock, as per Wall Street analysts. Meta Platforms (NASDAQ:META) Last week, social media giant Meta Platforms reported market-crushing third-quarter results, with revenue rising 23% year-over-year to $34.1 billion.
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After being under pressure due to weak digital ad spending because of macro pressures, increasing competition from TikTok, and the impact of Apple’s (NASDAQ:AAPL) iOS privacy policy changes, social media companies showed strong signs of recovery in the third quarter. With this backdrop in mind, we used TipRanks’ Stock Comparison Tool to place Pinterest (NYSE:PINS), Meta Platforms (NASDAQ:META), and Snap (NYSE:SNAP) against each other to find the most attractive social media stock, as per Wall Street analysts. Revenue increased 11% year-over-year to $763 million, with the company crediting the growth to its “unique differentiators as a visual search, discovery, and shopping platform.” Further, Pinterest’s Q3 2023 adjusted earnings per share (EPS) surged to $0.28 from $0.11 in the prior-year quarter due to higher revenue and disciplined expense management.
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After being under pressure due to weak digital ad spending because of macro pressures, increasing competition from TikTok, and the impact of Apple’s (NASDAQ:AAPL) iOS privacy policy changes, social media companies showed strong signs of recovery in the third quarter. Revenue increased 11% year-over-year to $763 million, with the company crediting the growth to its “unique differentiators as a visual search, discovery, and shopping platform.” Further, Pinterest’s Q3 2023 adjusted earnings per share (EPS) surged to $0.28 from $0.11 in the prior-year quarter due to higher revenue and disciplined expense management. Meta Platforms (NASDAQ:META) Last week, social media giant Meta Platforms reported market-crushing third-quarter results, with revenue rising 23% year-over-year to $34.1 billion.
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12798.0
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2023-10-31 00:00:00 UTC
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Time to Buy Apple (AAPL) or Qualcomm's (QCOM) Stock as Earnings Approach?
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AAPL
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https://www.nasdaq.com/articles/time-to-buy-apple-aapl-or-qualcomms-qcom-stock-as-earnings-approach
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nan
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After renewing their partnership earlier in the year, Wall Street will certainly be scoping Qualcomm (QCOM) and Apple’s (AAPL) quarterly reports this week.
Providing modem chips for Apple products, Qualcomm is set to report its fiscal fourth quarter results on Wednesday, November 1 with Apple scheduled to issue its fiscal Q4 report on Thursday, November 2.
Apple’s stock performance has been very impressive this year soaring +31% to outperform the broader indexes while Qualcomm shares have lagged and are down -1% YTD. With that being said, investors will certainly be hoping these iconic tech partners can post strong quarterly results that give both of their stocks a boost.
Image Source: Zacks Investment Research
Qualcomm Q4 Preview
Slowing growth centered around a stalling recovery in China amid stiffer regulations from the Chinese government has derailed Qualcomm’s stock in 2023.
However, at current levels, Qualcomm’s valuation has become attractive despite Q4 earnings projected at $1.92 a share compared to $3.31 per share a year ago. Fourth-quarter sales are forecasted at $8.55 billion versus $11.40 billion in Q4 2022.
The Zacks ESP (Expected Surprise Prediction) does indicate Qualcomm could top earnings expectations with the Most Accurate Estimate having Q4 EPS at $2.02 per share and 5% above the Zacks Consensus. Plus, Qualcomm has surpassed earnings expectations in three of its last four quarterly reports most recently topping the Zacks Consensus for Q3 EPS by 3%.
Image Source: Zacks Investment Research
Apple Q4 Preview
Apple has faced regulation scrutiny in China as well although this is expected to have a milder impact on its top and bottom lines. To that point, Apple’s Q4 earnings are forecasted to be up 8% year over year at $1.39 per share. This is despite Q4 sales projected to dip -1% to $88.79 billion.
More intriguing, Apple’s Greater China segment sales are anticipated at $17.34 billion which would be a 12% increase from Q4 2022. Apple has also surpassed earnings expectations in three of its last four quarterly reports most recently beating the Zacks Consensus for Q3 EPS by 6%.
Image Source: Zacks Investment Research
Outlook & Current Valuations
Overall, Qualcomm’s earnings are forecasted to drop -33% in fiscal 2023 at $8.32 per share compared to $12.53 a share in 2022. Fiscal 2024 earnings are expected to rebound and rise 9% to $9.11 per share. On the top line, sales are projected to dip -19% this year but stabilize and rise 3% in FY24 to $36.94 billion.
Notably, Qualcomm's stock trades at 11.8X forward earnings which is nicely below the S&P 500’s 19.5X. This is also 67% below its decade-long high of 36.9X and a 28% discount to the median of 16.5X.
Image Source: Zacks Investment Research
Turning to Apple, annual earnings are now expected to dip -1% in FY23 but rebound and rise 8% in FY24 to $6.54 per share. Total sales are projected to be down -3% this year but stabilize and rise 5% in FY24 to $402.85 billion.
Apple’s stock currently trades at a 26X forward earnings multiple commanding a premium to the benchmark but trading nicely below its decade-long high of 38.6X while being modestly above the median of 16.7X.
Image Source: Zacks Investment Research
Takeaway
Rounding out their fiscal year 2023, Qualcomm and Apple stock both land a Zacks Rank #3 (Hold). With FY24 expected to be a stronger year for both tech giants, positive Q4 results could certainly lead to nice momentum in their stocks especially if accompanied by better-than-expected guidance.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After renewing their partnership earlier in the year, Wall Street will certainly be scoping Qualcomm (QCOM) and Apple’s (AAPL) quarterly reports this week. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Turning to Apple, annual earnings are now expected to dip -1% in FY23 but rebound and rise 8% in FY24 to $6.54 per share.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. After renewing their partnership earlier in the year, Wall Street will certainly be scoping Qualcomm (QCOM) and Apple’s (AAPL) quarterly reports this week. Image Source: Zacks Investment Research Apple Q4 Preview Apple has faced regulation scrutiny in China as well although this is expected to have a milder impact on its top and bottom lines.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. After renewing their partnership earlier in the year, Wall Street will certainly be scoping Qualcomm (QCOM) and Apple’s (AAPL) quarterly reports this week. Image Source: Zacks Investment Research Outlook & Current Valuations Overall, Qualcomm’s earnings are forecasted to drop -33% in fiscal 2023 at $8.32 per share compared to $12.53 a share in 2022.
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After renewing their partnership earlier in the year, Wall Street will certainly be scoping Qualcomm (QCOM) and Apple’s (AAPL) quarterly reports this week. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. To that point, Apple’s Q4 earnings are forecasted to be up 8% year over year at $1.39 per share.
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12799.0
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2023-10-31 00:00:00 UTC
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3 Top Dividend Stocks to Buy for Long-Term Growth
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AAPL
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https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-for-long-term-growth
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When buying long-term dividend stocks, I would primarily look at three important factors. First, the amount of dividend payout and the dividend yield the blue-chip stock is delivering. Further, the visibility for capital gains to estimate the total returns from the stock in the long term.
I would also look at the company’s growth outlook. Large companies won’t offer a stellar growth trajectory. However, even consistent 5% to 10% growth will impact valuation and cash flows. Since we are focused on dividends, an upside in cash flows will provide clear dividend growth visibility.
Growth is important to consider because we live in an inflationary environment. Dividend-seeking investors must ensure the dividend stock portfolio provides continued upside in regular cash flows.
These dividend stocks for long-term growth are trading at attractive valuations.
Lockheed Martin (LMT)
Source: Joe Ravi / Shutterstock.com
Global defense spending increased for the eighth consecutive year in 2022 to $2.24 trillion. Even during the pandemic, defense spending increased. Considering the geopolitical scenario globally, it makes complete sense to invest in defense stocks for growth. Lockheed Martin (NYSE:LMT) stock is my top pick among long-term dividend stocks to buy.
It’s worth noting that LMT stock has remained sideways in the last 12 months. At a forward price-earnings ratio of 16.3, the stock looks poised for a breakout rally. Further, a dividend yield of 2.84% is attractive, and I expect healthy dividend growth.
My view is underscored by Lockheed’s strong order backlog of $156 billion. This provides clear cash flow visibility, and for the year, Lockheed has guided a free cash flow of $6.2 billion. With order intake remaining strong, I expect revenue growth to accelerate coupled with cash flow upside. This will ensure increased shareholder rewards in dividends and share repurchases.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
Pfizer (NYSE:PFE) stock might have disappointed investors in the last 12 months. However, the sell-off is overdone, and PFE stock trades at a valuation gap. A dividend yield of 5.45% is also attractive, and I expect high total returns from the stock in the next few years.
With COVID-19 vaccine sales declining, the stock has corrected. There are also concerns related to the impact on growth as drugs go off-patent in the coming years. However, Pfizer is working on boosting growth through two strategies.
First, the company is investing heavily in research and development and already has a deep pipeline. Pfizer expects incremental revenue of $20 billion from new molecular entities by 2030.
Further, Pfizer has been exploring and aggressively pursuing acquisitions. The company expects new business development to contribute $25 billion in incremental revenue by 2030.
With sound financial flexibility, I am optimistic about PFE stock trending higher from oversold levels. At the same time, dividends are sustainable, and there is potential for growth as the company aggressively boosts revenues.
Apple (AAPL)
Source: pio3 / Shutterstock.com
Apple (NASDAQ:AAPL) stock has been a value creator over the years. I will not be surprised if Apple is the first to command a valuation of $10 trillion in the coming years. Currently, a dividend yield of 0.57% does not sound attractive. I am, however, optimistic about robust dividend growth until 2030.
From a financial perspective, Apple’s services revenue touched an all-time high in Q3 2023. This was driven by over one billion in paid subscriptions. Further, operating cash flow for the first nine months 2023 was $89 billion. Robust cash flow ensures that the company can invest heavily in research and development. At the same time, there is ample flexibility to increase dividends and allocation toward share repurchase.
The key growth catalyst is that Apple is at the forefront of innovation. Recently, the company set a target to invest $1 billion annually toward artificial intelligence products. There are speculations that Apple will launch its electric car in 2026 with a price tag under $100,000. With diversification-driven growth, the company will be well positioned to continue creating value.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 Top Dividend Stocks to Buy for Long-Term Growth appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) stock has been a value creator over the years. Dividend-seeking investors must ensure the dividend stock portfolio provides continued upside in regular cash flows. Lockheed Martin (LMT) Source: Joe Ravi / Shutterstock.com Global defense spending increased for the eighth consecutive year in 2022 to $2.24 trillion.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) stock has been a value creator over the years. Lockheed Martin (LMT) Source: Joe Ravi / Shutterstock.com Global defense spending increased for the eighth consecutive year in 2022 to $2.24 trillion. Lockheed Martin (NYSE:LMT) stock is my top pick among long-term dividend stocks to buy.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) stock has been a value creator over the years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When buying long-term dividend stocks, I would primarily look at three important factors. Since we are focused on dividends, an upside in cash flows will provide clear dividend growth visibility.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL) stock has been a value creator over the years. Since we are focused on dividends, an upside in cash flows will provide clear dividend growth visibility. Robust cash flow ensures that the company can invest heavily in research and development.
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