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Tim's cookin' up an earnings report |
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Even corporate wants to be something else for Halloween: Campbell's announced it's changing the name of its Goldfish crackers to "Chilean Sea Bass" for a limited time to appeal to adults (apparently "Patagonian Toothfish" didn't sound as classy). The S&P 500 snapped its six-week win streak on Friday, though tech rallied ahead of Magnificent 7 earnings this week. On Thursday, Tesla stock had its best day since 2013, and on Friday Nvidia surpassed Apple as the world's most valuable company. 👀 Markets, wrapped: For those who love a market recap, Sherwood's launching The Wrap, a five-minute newsletter recapping the day's essential stories. Subscribe here. 👻 The Exor-quiz: Do you possess the know-how to score 7/7 on our latest Snacks Seven quiz? Try the first q: |
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Busy week in Silicon Valley… Google, Microsoft, Meta, Amazon, and Apple are on deck to drop Q3 earnings. The Magnificent 7 (which includes Nvidia and Tesla) are expected to report average earnings growth of 18% compared to less than 1% growth for the rest of the S&P 500. FYI: the Mag 7 make up over a third of the S&P 500's market value. Back in July, big techies reported mixed results as investors looked to see whether AI had revved up growth. Bankin' on bots… To supercharge demand, techies are infusing AI into various parts of their businesses, from search to cloud to ads. Cloud-computing giants Amazon, Microsoft, and Google have touted new AI functions to drive more sign-ups. In Q2, Microsoft said its OpenAI-fueled Azure cloud service added ~100 customers daily. It invested billions to own nearly half of OpenAI (which expects to lose $5B this year). Meantime, Google said it earned billions in revenue leveraging AI for its cloud biz. And Amazon's AWS (the largest cloud provider) saw its Q2 cloud revenue jump 19% to $26B as AI integrations fueled hype. |
- Reel money: Meta's ad sales grew 22% in Q2 after it used AI to boost ad targeting and recommendation algos on Insta and FB.
- AiPhones: Last month Apple debuted an AI-infused iPhone, but underwhelming preorder sales suggest folks aren't quite sold yet.
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It's time to turn AI into ROI… Big Techies have invested $150B+ primarily in AI over the past year, and investors are eager to see returns. Expectations are high. Nvidia reported triple-digit Q2 sales growth, but the stock fell after the gains weren't as feverish as in the past (tough comparisons). The techy Nasdaq hit a record high on Friday, suggesting investors have lofty growth expectations. |
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Concerning… McDonald's is set to deliver quarterly #s tomorrow as it deals with its Quarter Pounder crisis. On Friday the CDC said a deadly E. coli outbreak tied to Quarter Pounders had sickened 75 people in 13 states. One person died and 22 were hospitalized. McD's stock plunged on Tuesday after the CDC's first alert, as investors worried it could turn into a Chipotle-level disaster. After some recalls, the CDC on Friday said it believed the risk to the public was very low. Still, the crisis probably won't help McD's traffic: its same-store sales fell in Q2, and now it's trying to lure customers back with deals. |
Out with the new… Apple's AI-packed iPhone 16 hasn't started the upgrade wave it hoped for. In the phone's first weekend of presales last month, customers grabbed 37M units, down 12% from the iPhone 15's debut. New features aren't bringing folks into the store, and that's weighing on telecoms. Phone upgrades fell for AT&T, Verizon, and T-Mobile in Q3. New data suggests that iPhone sales volumes hit a record last quarter, but that might not help slumping revenues as most of those sales were for older, cheaper models. |
Guacaccino… Chipotle, which reports tomorrow, has been wrapping up meaty results. The burrito bigshot said its traffic jumped nearly 9% in Q2, and it's opening hundreds of new locations. Starbucks wants a scoop of its success: former Chipotle boss Brian Niccol just started as the coffee chain's new CEO, and he has his work cut out for him. Starbucks gave early bad news for its earnings (due Wednesday): global same-store sales fell for a third straight quarter, dragged by a 6% drop in North America. Starbs also suspended its annual guidance. Vitamin sea… Anchors are up on cruise-line earnings with Norwegian and Royal Caribbean set to report. Wall Street's expecting higher revenues for both, after rival Carnival unloaded a record $7.9B in quarterly sales and a 60% profit surge. The industry's cruising toward record passenger levels this year as consumers opt for experiences over stuff. Cue: Disney said it'll expand its cruise fleet from five ships to eight next year. |
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⏰ We spend over 30 hours a week on smartphones. Mode Mobile monetizes this usage, turning phones into potential income generators. It mirrors what Uber and Airbnb did with cars and homes — and it's also a $1 trillion market opportunity. 🫴 Mode's Pre-IPO offering3 is live at $0.25/share — lock in up to 100% bonus shares4 while the raise lasts.5 |
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⏰ We spend over 30 hours a week on smartphones. Mode Mobile monetizes this usage, turning phones into potential income generators. It mirrors what Uber and Airbnb did with cars and homes — and it's also a $1 trillion market opportunity. 🫴 Mode's Pre-IPO offering3 is live at $0.25/share — lock in up to 100% bonus shares4 while the raise lasts.5 |
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- The FTC blocked an $8.5B merger between Coach owner Tapestry and Michael Kors parent Capri, saying it would hurt competition in accessible luxe purses.
- Home Depot said its popular $300 12-foot skeleton has pushed it to record sales every Halloween, and it's inspired a cottage industry of XL decorations.
- Tesla's US EV market share slipped below 50% this summer for the first time as rivals like GM and Honda ramped up production.
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- Monday: Earnings expected from Ford and WM
- Tuesday: S&P Case-Shiller home-price index. Consumer confidence. Job openings. Earnings expected from PayPal, BP, Pfizer, McDonald's, Royal Caribbean, JetBlue, Crocs, HSBC, Novartis, Phillips 66, Penske, Xerox, AMD, Alphabet, Chipotle, Snap, Visa, Reddit, Mondelez, and Caesars Entertainment
- Wednesday: ADP employment data. Earnings expected from Allstate, MetLife, Eli Lilly, Chubb, Caterpillar, Humana, AbbVie, ADP, Garmin, Kraft Heinz, GlaxoSmithKline, GE HealthCare, Microsoft, Meta, Coinbase, Robinhood, Etsy, Carvana, Roku, Starbucks, eBay, MGM, DoorDash, and Amgen
- Thursday: PCE price index (the Fed's fave inflation gauge). Halloween. Earnings expected from Uber, Peloton, Merck, Sirius XM, Estée Lauder, Kellanova, Mastercard, Altria, Norwegian Cruise Line, Roblox, Bristol Myers Squibb, Shell, Stellantis, AB InBev, Wendy's, Hyatt Hotels, Amazon, Apple, and Intel
- Friday: Employment and manufacturing data. Native American Heritage Month begins. Earnings expected from Chevron, FuboTV, Exxon Mobil, Wayfair, and Charter Communications
- Sunday: Daylight-saving time ends at 2 a.m. New York Marathon
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Authors of this Snacks own shares of: Alphabet, Amazon, AMD, Apple, Disney, GM, Kraft Heinz, Microsoft, Norwegian, Nvidia, Robinhood, Snap, Starbucks, and Tesla |
Advertiser's disclosures:
1 The S&P 500 is not an exact list of the top 500 U.S. companies by market cap because the index includes other criteria. 2 All ETFs are subject to risk, including possible loss of principal. Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing. ALPS Distributors, Inc., member FINRA, is the distributor for SPY, a unit investment trust. 3 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. 4 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+. 5 Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile's Regulation A+ Offering. Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. |
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