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Tag: Apple Inc

  • Xi says U.S. and China can only be adversaries or partners, with no middle ground

    Xi says U.S. and China can only be adversaries or partners, with no middle ground

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    U.S. President Joe Biden waves as he walks with Chinese President Xi Jinping at Filoli estate on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Woodside, California, U.S., November 15, 2023. REUTERS/Kevin Lamarque

    Kevin Lamarque | Reuters

    BEIJING — The U.S. and China have to choose between being adversaries or partners, Chinese President Xi Jinping told American business executives late Wednesday in San Francisco.

    His remarks contrast with the Biden administration’s approach of pursuing strategic competition with Beijing — restricting exports of advanced U.S. tech to China, while looking for areas of cooperation.

    Xi was speaking at a dinner in San Francisco following his meeting with U.S. President Joe Biden a few hours earlier, on the sidelines of the Asia-Pacific Economic Cooperation conference.

    “I have always had one question on my mind: How to steer the giant ship of China-U.S. relations clear of hidden rocks and shoals, navigate it through storms and waves without getting disoriented, losing speed or even having a collision?” Xi said, according to an English-language readout of his Mandarin-language speech.

    China is ready to be a partner and friend of the United States.

    Xi Jinping

    President of China

    “In this respect, the number one question for us is: are we adversaries, or partners? This is the fundamental and overarching issue,” he said.

    “The logic is quite simple. If one sees the other side as a primary competitor, the most consequential geopolitical challenge and a pacing threat, it will only lead to misinformed policy making, misguided actions, and unwanted results,” Xi said.

    “China is ready to be a partner and friend of the United States,” he said. “The fundamental principles that we follow in handling China-U.S. relations are mutual respect, peaceful coexistence and win-win cooperation.”

    Nearly 400 business leaders — including Apple CEO Tim Cook and Qualcomm CEO Cristiano Amon — government officials, U.S. citizens and academics attended the dinner, hosted by the U.S.-China Business Council and the National Committee on U.S.-China Relations.

    U.S Secretary of Commerce Gina Raimondo delivered remarks ahead of Xi’s address.

    In a roughly 30-minute speech, Xi said China-led international initiatives such as the Belt and Road are open to U.S. participation, while Beijing is ready to join U.S.-proposed multilateral cooperation initiatives.

    “No matter how the global landscape evolves, the historical trend of peaceful coexistence between China and the United States will not change,” Xi said.

    Pandas returning to the U.S.

    Regarding earlier conversations with Biden, Xi said “we agreed to make the cooperation list longer and the pie of cooperation bigger.”

    Xi said China is ready to invite 50,000 young Americans to study in the Asian country over the next five years.

    He also said China would send its giant pandas to the San Diego Zoo. He did not specify a time.

    Last week, the remaining three pandas in the U.S. on loan from Beijing returned to China due to an expiring contract. China has lent pandas to countries around the world as a diplomatic tool.

    China never bets against the United States, and never interferes in its internal affairs.

    Xi Jinping

    President of China

    Xi’s speech was titled “Galvanizing Our Peoples into a Strong Force For the Cause of China-U.S. Friendship.”

    “It is wrong to view China, which is committed to peaceful development, as a threat and thus play a zero-sum game against it,” Xi said. “China never bets against the United States, and never interferes in its internal affairs.”

    “China has no intention to challenge the United States or to unseat it. Instead, we will be glad to see a confident, open, ever-growing and prosperous United States,” he said. “Likewise, the United States should not bet against China, or interfere in China’s internal affairs. It should instead welcome a peaceful, stable and prosperous China.”

    — CNBC’s Christina Wilkie and Eamon Javers contributed to this report.

    Correction: The summary and key points have been updated to accurately reflect that Xi’s dinner with U.S. business executives took place on Wednesday night in San Francisco.

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  • CNBC Daily Open: Rate cuts might not be in the cards despite cooling inflation

    CNBC Daily Open: Rate cuts might not be in the cards despite cooling inflation

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    The Marriner S. Eccles Federal Reserve building during a renovation in Washington, DC, US, on Tuesday, Oct. 24, 2023.

    Valerie Plesch | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Downbeat Asian markets
    U.S. stocks ticked up Wednesday as another report showed inflation’s cooling. Despite that, Treasury yields rose. Asia-Pacific markets, however, fell Thursday. Hong Kong’s Hang Seng Index dropped 1.26%, dragged down by Xpeng’s 3.83% decline after the Chinese electric vehicle company reported disappointing earnings results.

    ‘Planet Earth is big enough’
    U.S. President Joe Biden met Chinese President Xi Jinping yesterday on the sidelines of the Asia-Pacific Economic Cooperation conference. Both leaders agreed to resume high-level military communications. As part of the agreement, senior U.S. military commanders will engage with their Chinese counterparts. As Xi said in his opening remarks, “Planet Earth is big enough for the two countries to succeed.”

    Emptying Citi
    Citigroup will start laying off workers as part of CEO Jane Fraser’s corporate overall, CNBC has learned. Citi employees who will be let go will be informed starting Wednesday U.S. time, and the process will continue until early next week, according to people with knowledge of the situation. It seems no one will be spared: chiefs of staff, managing directors and lower-level employees will all be affected.

    Microsoft’s own AI chip
    At its Ignite conference in Seattle, Microsoft announced two custom chips. The first, its Maia 100 artificial intelligence chip, could compete with Nvidia’s AI chips. The second, a Cobalt 100 Arm chip, is designed to tackle general computing tasks and could supplant Intel processors. But Microsoft is planning to use its chips internally, and doesn’t intend to let other companies buy those chips.

    [PRO] Magnificent One
    Shares of the Magnificent Seven stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have surged this year, propelling the S&P 500 higher. They’ve also drawn criticism that their prices are too high, based on their price-to-earnings ratio. But there’s an exception: Morgan Stanley thinks one of them is “pretty inexpensive relative to free cash flow growth or earnings growth.”

    The bottom line

    After a very encouraging consumer price index reading on Tuesday, we have more evidence that inflation’s truly cooling.

    Wholesale prices in October, as measured by the producer price index, fell 0.5% for the month against the expected 0.1% increase. That’s the biggest decline in more than three years. When producer prices fall, it takes a while for those lower prices to seep into the general consumer economy, so it’s plausible we’ll see CPI continue dropping in the months ahead.

    Major U.S. indexes rose — slightly — on that encouraging news. The S&P 500 increased 0.16% and the Nasdaq Composite edged up 0.07%. The Dow Jones Industrial Average gained 0.47% for its fourth consecutive winning session.

    The stock market rally over the past two days, it seems, was fueled by investors’ expectations that lower inflation readings will prompt the Federal Reserve to cut rates sooner rather than later. Investors think there’s a 29.6% chance the Fed will slash rates by a full percentage point by the end of next year, according to the CME FedWatch tool.

    But that flurry of cuts is two times as aggressive as the timeline the Fed itself penciled in two months ago, noted CNBC’s Jeff Cox. And that, to put it mildly, “may be at least a tad optimistic,” Cox wrote.

    Investor optimism, ironically, may be counterproductive as well. Expectations of a rate cut forced down Treasury yields Tuesday (though they rose again yesterday). Treasury yields tend to serve as the benchmark for loans and other assets, so when they drop, financial conditions loosen — exactly what the Fed doesn’t want to see.

    “Financial conditions have eased considerably as markets project the end of Fed rate hikes, perhaps not the perfect underpinning for a Fed that professes to keeping rates higher for longer,” said Quincy Krosby, chief global strategist at LPL Financial.

    Indeed, “this is at least the 7th time in this cycle that markets [anticipate] … a potential dovish pivot,” wrote Deutsche Bank macro strategist Henry Allen. (Spoiler alert: Investors have, without exception, been disappointed the previous times as the Fed refused to budge.)

    In short: While it’s undeniable inflation’s dropping, there’s no guarantee rates will fall in tandem. It might be better to be pleasantly surprised than to be disappointed.

    — CNBC’s Jeff Cox contributed to this report.

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  • Warren Buffett’s Berkshire trimming holdings, keeping new stock secret

    Warren Buffett’s Berkshire trimming holdings, keeping new stock secret

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  • Xiaomi claims a record $3.11 billion in Singles Day sales

    Xiaomi claims a record $3.11 billion in Singles Day sales

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    YICHANG, CHINA – OCTOBER 29, 2023 – Customers experience Mi 14 series phones at a Xiaomi store in Yichang, Hubei province, China, Oct 29, 2023. (Photo by Costfoto/NurPhoto via Getty Images)

    Nurphoto | Nurphoto | Getty Images

    BEIJING — Chinese smartphone and consumer electronics company Xiaomi claimed record sales across platforms during the Singles Day shopping festival.

    From Oct. 23 to the end of day on Nov. 11, Xiaomi said it sold more than 22.4 billion yuan ($3.11 billion) worth of products on platforms such as Alibaba’s Tmall and Taobao, JD.com, Pinduoduo and Douyin.

    Xiaomi shares were up more than 1% in Hong Kong trade Monday morning. Locally traded shares of Alibaba and JD.com also traded about 1% higher.

    For a second-straight year, the two online shopping giants declined to share total figures for the Singles Day shopping festival.

    JD only said transaction and order volume reached record highs. Alibaba said that gross merchandise value, order numbers and participating merchants grew from a year ago. GMV measures sales over time.

    By brand, JD said transaction volume of Apple products exceeded 10 billion yuan ($1.39 billion). That’s the same figure JD shared for Singles Day results in 2021. It did not provide a comparable figure in 2022.

    Lululemon, a relatively new brand to the China market, saw transaction volume on JD increase 260% during the shopping festival from a year ago, the Chinese retailer said.

    Alibaba did not share much detail on sales by product or brand for the entire shopping festival period.

    Xiaomi claimed its newly released Xiaomi 14 smartphone was the top-seller on Alibaba’s Tmall from Nov. 4 to 11. The company also claimed first place in different categories of Chinese brands’ smartphone sales across other online shopping platforms.

    “Much better-than-expected Mi14 sales creates earnings accretion and potential valuation re-rating ahead,” HSBC analysts wrote in a Nov. 6 report.

    “We raise our smartphone shipment forecasts for Xiaomi by 7% in 2023e to c150m units and by 6% in 2024e to 160m units,” the analysts said.

    Low expectations

    Over the past decade, Singles Day has expanded from a one-day shopping festival into a multi-week period of shopping promotions across different online platforms in China.

    In 2022, during the Covid-19 pandemic, Alibaba had said its Singles Day sales were “in line” with the prior year, which had recorded the equivalent of $84.54 billion GMV at the time.

    Uncertainty about future income has weighed on retail sales in China over the last few years.

    Ahead of this year’s shopping festival, a survey by Bain and Company found that 77% of consumers in China did not plan to increase spending.

    Livestreaming sales

    Livestreaming and short videos on platforms such as Alibaba’s Taobao and ByteDance’s Douyin remained a growing sales channel.

    GMV from livestreaming rose by 19% during the shopping festival this year, according to estimates from data company Syntun and Morningstar senior equity analyst Chelsey Tam.

    Tmall accounted for the bulk of sales, or 60%, in a category that Syntun called “comprehensive e-commerce platforms,” Tam said in a note.

    JD accounted for 28%, while Pinduoduo had a 7% share, the report said.

    Kuaishou, a short video and livestreaming app, said orders grew by nearly 50% during the Singles Day shopping period.

    More details on Singles Day results and Chinese consumer trends could come out during corporate earnings calls later this week. JD.com is due to report quarterly results Wednesday evening, while Alibaba is set to release earnings Thursday evening Beijing time.

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  • Whoever ends up playing Elon Musk could be bound for Oscar glory

    Whoever ends up playing Elon Musk could be bound for Oscar glory

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    SpaceX, Twitter and electric car maker Tesla CEO Elon Musk, attends a US Senate bipartisan Artificial Intelligence (AI) Insight Forum at the US Capitol in Washington, DC, on September 13, 2023.

    Stefani Reynolds | Afp | Getty Images

    Maybe the hottest question in Hollywood right now is: Who will play Elon Musk?

    News broke Friday that hot-ticket indie studio A24 snagged the rights to film Walter Isaacson’s biography of the controversial billionaire Tesla and SpaceX chief. NBC News reported that the agreement came after a highly competitive bidding war involving multiple studios and filmmakers.

    As if that weren’t head-turning enough – A24, which dominated last year’s Oscars, is popular among film buffs for edgy fare like “Midsommar” and “Talk to Me” – Darren Aronofsky is attached to direct the biopic.

    The chance to play such a divisive figure as Musk would be catnip to most actors anyway. But the chance to work with Aronofsky is likely an added bonus. His ambitious movies often demand actors go to award-show-worthy extremes, giving him a great track record of steering performers to Oscar nominations and wins.

    Earlier this year, Brendan Fraser won best actor for his role as a reclusive and depressed professor in Aronofsky’s “The Whale,” while Hong Chau received a best supporting actress nomination. In 2011, Natalie Portman won best actress for the director’s psychological ballet drama “Black Swan.” Mickey Rourke and Marisa Tomei were both nominated in 2009 for “The Wrestler.” Before that, Ellen Burstyn was nominated for best actress in 2001 for Aronofsky’s disturbing drug-addiction drama “Requiem for a Dream.”

    Darren Aronofsky attends the UK Premiere of ‘The Whale’ at the Royal Festival Hall during the 66th BFI London Film Festival in London, United Kingdom on October 11, 2022.

    Wiktor Szymanowicz | Future Publishing | Getty Images

    But the Oscar mojo wouldn’t belong entirely to Aronofsky.

    Isaacson’s Steve Jobs biography supplied the source material for the 2015 Danny Boyle film of the same name, which netted Michael Fassbender a best actor nomination for playing the late Apple mastermind. Another polarizing tech figure, Meta CEO Mark Zuckerberg, was the subject of David Fincher’s 2010 drama, “The Social Network,” which led to star Jesse Eisenberg snagging a best actor nomination.

    It remains to be seen who will end up getting the Musk role, which will draw more scrutiny than most casting decisions in Hollywood, given the billionaire’s outspoken and provocative presence on social media. Aronofsky’s protagonists also tend to be irreparably flawed and self-destructive.

    At the moment, though, Musk appears happy with the way it’s going. “Glad Darren is doing it. He is one of the best,” he posted on his platform X, formerly known as Twitter.

    CNBC has asked Musk about whom he’d like to see play him in the movie.

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  • Kotaku Goes Hands-On At The Apple Developer Showcase

    Kotaku Goes Hands-On At The Apple Developer Showcase

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    Read more…

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    Eric Schulkin

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  • Microsoft stock surges toward another record close, has added about $308 billion in market cap in 11 days

    Microsoft stock surges toward another record close, has added about $308 billion in market cap in 11 days

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    Shares of Microsoft Corp.
    MSFT,
    +2.49%
    hiked up 2.4% afternoon trading Friday, toward its third record close in the past four sessions. The stock has now soared 12.6% over the past 11 sessions, in which is has gained 10 times, including a nine-day winning streak through Nov. 8 that was the longest such streak since the 9-day stretch that ended Nov. 19, 2019. During those 11 sessions, the stock has added $307.8 billion to its market capitalization. Microsoft is the second-largest component in the S&P 500
    SPX,
    +1.56%
    with a market cap of $2.745 trillion, behind only Apple Inc.
    AAPL,
    +2.32%
    at $2.891 trillion. The rally kicked off a couple days after Microsoft reported bumper quarterly results. Market research firm Bespoke Investment said Friday that Microsoft has joined Apple as the second individual company that has a larger market cap that the combined market caps of the companies that make up the Russell 2000 index
    RUT,
    +1.07%
    of small-capitalization companies.

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  • Taylor Swift Eras Tour film seeking more box office records as it sticks around in theaters

    Taylor Swift Eras Tour film seeking more box office records as it sticks around in theaters

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    Taylor Swift performs onstage during her The Eras Tour concert at Lumen Field in Seattle, Washington, on July 22, 2023.

    Mat Hayward/tas23 | Getty Images Entertainment | Getty Images

    Taylor Swift is seeking to smash more box office records as her Eras Tour concert film sticks around theaters.

    Box office analysts initially believed the singer’s film would wrap up its limited run in the theaters on Nov. 5.

    In AMC Entertainment’s initial announcement of ticket availability for the Eras Tour concert film, the company said audiences could “view showtimes and purchase tickets through November 5th.”

    AMC clarified Friday that the Nov. 5 date was the cutoff for the first run of tickets available for the film when presales began.

    The extra time in theaters can only benefit the film and the box office. Already Swift’s Eras Tour has shattered records and helped the theater industry weather a light release calendar.

    Heading into the weekend, The Eras Tour film has collected $150 million in domestic receipts and more than $200 million globally. That global haul represents more than 18% of the $1.092 billion total global box office earned since the film was released Oct. 13, according to data from Comscore.

    Read more: Beyoncé concert film will help boost weak December box office

    “It’s been a remarkable, one-of-a-kind, record-breaking and influential run for The Eras Tour, not to mention a huge win for Taylor Swift and theater owners,” said Shawn Robbins, chief analyst at BoxOffice.com.

    Expectations are that Swift will add another $10 million domestically this weekend and the film could be No. 1 at the box office once again.

    So far, The Eras Tour film is the highest-grossing domestic and global concert film release of all time but lags just behind the “Michael Jackson’s This Is It” concert documentary’s global haul of $262.5 million.

    Box office records (Taylor’s version)

    • Highest opening weekend for a concert film: Taylor Swift: The Eras Tour — $92.8 million
    • Widest domestic release for a concert film: Taylor Swift: The Eras Tour — 3,855 locations
    • Highest-grossing concert film domestically: Taylor Swift: The Eras Tour — $150 million, and counting
    • Highest-grossing concert film worldwide: Taylor Swift: The Eras Tour — $203.8 million, and counting
    • Highest-grossing concert film documentary worldwide: “Michael Jackson’s This Is It” — $262.5 million

    Source: Comscore

    Swift’s concert film release came at an opportune time. Labor strikes in Hollywood led several films to depart the theatrical calendar, including the much-anticipated “Dune: Part Two” from Warner Bros. Discovery and Legendary Entertainment.

    “One movie can make all the difference,” said Paul Dergarabedian, senior media analyst at Comscore. “This incredible box office performance is made all the more impressive given the film’s truncated release pattern that had it essentially playing on big screens four days a week.”

    Swift’s unique release, coupled with her decision to distribute the film through theater chain AMC instead of a traditional Hollywood studio, has also led to increased speculation about where the concert film will land on streaming.

    Taylor Swift’s previous movies

    • Taylor Swift: Journey to Fearless (2010): aired on The Hub, which has since been rebranded as Discovery Family, and then made available on DVD
    • Taylor Swift: Speak Now World Tour Live (2011): made available on DVD
    • The 1989 World Tour Live (2015): released through Apple Music
    • Taylor Swift: Reputation Stadium Tour (2018): streaming on Netflix
    • Taylor Swift: City of Lover Concert (2020): ABC TV Special
    • Miss Americana (2020): streaming on Netflix
    • Folklore: The Long Pond Studio Sessions (2020): streaming on Disney+

    Currently, it appears that Swift is waiting for the SAG-AFTRA strike to wrap up before negotiating with streamers for the rights to her concert film. The film is much coveted in the industry and a big bidding battle is expected.

    Swift has previously worked with Apple Music, Netflix and Disney to release filmed versions of her concerts and documentary projects.

    Correction: An earlier version of this story incorrectly said it would be the Eras Tour movie’s last weekend at the box office. The headline and story have been corrected.

    Don’t miss these stories from CNBC PRO:

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  • Here’s why you might not have to pay a 6% commission next time you sell a home

    Here’s why you might not have to pay a 6% commission next time you sell a home

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    Going back decades, if you wanted to buy or sell a stock on the open market, you had to pay a 2% commission to buy and a 2% commission to sell. Then the advent of discount brokerage, led by Charles Schwab Corp.
    SCHW,
    +1.64%    ,
    made lower commissions available until eventually, with improved technology and efficiency, the entire industry changed to enable the average investor to avoid commissions completely.

    But the internet hasn’t done much to reduce the cost of selling a home in the U.S. Sellers typically pay a 6% commission to a real-estate agent to list and sell a home, with the seller’s agent splitting that commission with the buyer’s agent. But all of that may change because of a verdict this week in a class-action lawsuit in federal court against the National Association of Realtors.

    Aarthi Swaminathan covers the case, what may happen next and the implications for home sellers and buyers:

    Real-estate advice from the Moneyist


    MarketWatch illustration

    Quentin Fottrell — the Moneyist — works with three readers to answer tricky real-estate questions:

    Economic outlook

    On Wednesday, Federal Reserve Chair Jerome Powell may have bolstered the case that the central bank is finished raising interest rates for this economic cycle. The federal-funds rate was left in its target range of 5.25% to 5.50%.

    Jon Gray, the president of Blackstone Group, spoke with MarketWatch Editor in Chief Mark DeCambre and said he expected the Fed to succeed in bringing down inflation without pushing the U.S. economy into a deep recession.

    Friday employment numbers: Jobs report shows 150,000 new jobs in October as U.S. labor market cools

    Bond-market trend switches again

    The U.S. Treasury yield curve has been inverted for nearly a year.


    FactSet

    Normally, longer-term bonds have higher yields than those with short maturities. But the yield curve has been inverted for nearly a year, with 3-month U.S. Treasury bills
    BX:TMUBMUSD03M
    having higher yields than 10-year Treasury notes
    BX:TMUBMUSD10Y.

    There has been elevated demand for long-term bonds, as investors have anticipated a recession and a reversal in Federal Reserve interest-rate policy. When interest rates decline, bond prices rise and vice versa.

    As you can see on the chart above, the yield curve was narrowing until mid-October. Yields on 10-year Treasury notes were close to 5% on Oct. 19, but they have been falling the past several days as the three-month yield has remained close to 5.5%.

    In this week’s ETF Wrap, Christine Idzelis reports on where all the money is flowing in the bond market.

    In the Bond Report, Vivien Lou Chen summarizes the action as investors react to the Federal Reserve’s decision not to change its federal-funds-rate target range this week and to other economic news.

    For income-seekers looking to avoid income taxes, here’s a deep dive into municipal bonds, with taxable-equivalent yields and a deeper look at those within four high-tax states.

    Ford’s good news — in the bond market

    Ford Motor Co.’s debt rating has been lifted by S&P to investment-grade.


    Getty Images

    Ford Motor Co.’s
    F,
    +4.14%
    credit rating was upgraded to an investment-grade rating by Standard & Poor’s on Monday. This takes about $67 billion in bonds out of the high-yield, or “junk,” market, as Ciara Linnane reports.

    A stock-market warning based on history

    The original Magnificent Seven.


    Courtesy Everett Collection

    By now you have probably heard the term “Magnificent Seven” used to describe stocks of the tremendous tech-oriented companies that have led this year’s rally for the S&P 500
    SPX
    : Apple Inc.
    AAPL,
    -0.52%    ,
    Microsoft Corp.
    MSFT,
    +1.29%    ,
    Amazon.com Inc.
    AMZN,
    +0.38%    ,
    Nvidia Corp.
    NVDA,
    +3.45%    ,
    Alphabet Inc.
    GOOGL,
    +1.26%

    GOOG,
    +1.39%    ,
    Meta Platforms Inc.
    META,
    +1.20%
    and Tesla Inc.
    TSLA,
    +0.66%    .
    With Tesla’s recent decline, that company is now the ninth-largest holding in the portfolio of the SPDR S&P 500 ETF Trust
    SPY,
    which tracks the benchmark index. Here are the top 10 companies held by SPY (11 stocks, including two common-share classes for Alphabet), with total returns through Thursday:

    Company

    		 Ticker

    		 % of SPY portfolio

    		 2023 total return

    		 2022 total return

    		 Total return since end of 2021
    Apple Inc.

    		 AAPL,
    -0.52%         		7.2%

    		 37%

    		 -26%

    		 1%
    Microsoft Corp.

    		 MSFT,
    +1.29%         		7.1%

    		 46%

    		 -28%

    		 5%
    Amazon.com Inc.

    		 AMZN,
    +0.38%         		3.5%

    		 64%

    		 -50%

    		 -17%
    Nvidia Corp.

    		 NVDA,
    +3.45%         		3.0%

    		 198%

    		 -50%

    		 48%
    Alphabet Inc. Class A

    		 GOOGL,
    +1.26%         		2.1%

    		 44%

    		 -39%

    		 -12%
    Meta Platforms Inc. Class A

    		 META,
    +1.20%         		1.9%

    		 158%

    		 -64%

    		 -8%
    Alphabet Inc. Class C

    		 GOOG,
    +1.39%         		1.8%

    		 45%

    		 -39%

    		 -11%
    Berkshire Hathaway Inc. Class B

    		 BRK.B,
    +0.80%         		1.8%

    		 13%

    		 3%

    		 17%
    Tesla Inc.

    		 TSLA,
    +0.66%         		1.7%

    		 77%

    		 -65%

    		 -38%
    UnitedHealth Group Inc.

    		 UNH,
    -0.98%         		1.4%

    		 2%

    		 7%

    		 9%
    Eli Lilly and Company

    		 LLY,
    -2.15%         		1.3%

    		 60%

    		 34%

    		 115%
    Sources: FactSet, State Street (for SPY holdings)

    Five of these stocks (including the two Alphabet share classes) are still down from the end of 2021. SPY itself has returned 14% this year, following an 18% decline in 2022. It is still down 7% from the end of 2021.

    Mark Hulbert makes the case that a decade from now, the Magnificent Seven are unlikely to be among the largest companies in the stock market.

    More from Hulbert: These dividend stocks and ETFs have healthy yields that can lift your portfolio

    A different market opportunity: India is seeing a multidecade growth surge. Here’s how you can invest in it.

    The MarketWatch 50


    MarketWatch

    The MarketWatch 50 series is back, with articles and video interviews starting this week, including:

    PayPal soars after earnings report

    PayPal CEO Alex Chriss.


    MarketWatch/PayPal

    After the market close on Wednesday, PayPal Holdings Inc.
    PYPL,
    +1.89%
    announced quarterly results that came in ahead of analysts’ expectations, and the stock soared 7% on Thursday even though the company lowered its target for improving its operating margin.

    In the Ratings Game column, Emily Bary reports on the positive reaction to PayPal’s new CEO, Alex Chriss.

    A less enthusiastic earnings reaction: EV-products maker BorgWarner’s stock suffers biggest drop in 15 years after downbeat sales outlook

    Consumers drive mixed reactions to earnings results

    Apple Inc. reported mixed quarterly results.


    Mario Tama/Getty Images

    Here’s more of the latest corporate financial results and reactions. First the good news:

    And now the news that may not be so good:

    Harsh verdict for SBF

    FTX founder Sam Bankman-Fried.


    AP

    It might seem that some legal battles never end, but it took only a year from the collapse of FTX for the cryptocurrency exchange’s founder, Sam Bankman-Fried, to be convicted on all seven federal fraud and money-laundering charges brought against him. The charges were connected to the disappearance of $8 billion from FTX customer accounts.

    Here’s more reaction and coverage of the virtual-currency industry:

    Want more from MarketWatch? Sign up for this and other newsletters to get the latest news and advice on personal finance and investing.

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  • There’s a ton worth streaming in November 2023. So as prices rise, here’s how to avoid breaking the bank.

    There’s a ton worth streaming in November 2023. So as prices rise, here’s how to avoid breaking the bank.

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    November offers a false spring for streaming viewers.

    After a slow couple of months, there’s suddenly an abundance of top-tier shows on the way, but don’t be fooled — the streaming scene is going to be largely bleak in the coming months, until productions fully ramp up sometime next year following the strikes that have crippled Hollywood.

    Meanwhile, streaming costs keep rising (Netflix’s top tier is the first to cross the $20 barrier) and consumers are getting less for their money, with fewer new shows and smaller libraries, while streamers push subscribers toward ad-supported tiers that generate more revenue per user while providing a worse viewing experience. Still, all the ad-supported tiers cost less than $10 a month, meaning it may be time for budget-conscious consumers to suck it up and deal with commercials if they don’t want to break the bank.

    Read more: Netflix is raising prices to get you to watch ads, and it will probably work

    That’s why it’s even more important to examine which services you’re really willing to pay for. The days of subscribing to six streaming services — even though you might only regularly watch three — are over. But by adding and canceling services month to month, you can save money while still being able to watch your favorite shows (for example, instead of watching a 12-episode show that drops every week and paying for three months, subscribe for just one month once the show nears its end and binge it all at once).

    Such a churn strategy takes some planning, but it pays off. Keep in mind that a billing cycle starts when you sign up, not necessarily at the beginning of the month.

    Each month, this column offers tips on how to maximize your streaming and your budget, rating the major services as a “play,” “pause” or “stop” — similar to investment analysts’ traditional ratings of buy, hold or sell, and picks the best shows to help you make your monthly decisions.

    Here’s a look at what’s coming to the various streaming services in November 2023, and what’s really worth the monthly subscription fee:

    Apple TV+ ($9.99 a month)

    The price of Apple TV+ has doubled in a little over a year, and in any other month, it’d be easy to argue it has priced itself out of the range of casual viewers. But Apple’s November lineup is so impressive that it’s actually somehow still a good deal.

    The alt-history space drama “For All Mankind” (Nov. 10) returns for its fourth season, with an eight-year time jump after Season 3’s shocking finale. The Mars colony is now thriving, but tensions are rising over the mining of mineral-rich asteroids. Toby Kebbell (“Servant”) joins the cast, along with Daniel Stern and Tyner Rushing, who join holdovers Joel Kinnaman, Krys Marshall, Wrenn Schmidt and Coral Pena. It’s a fantastic and frequently thrilling series, and arguably Apple’s best drama.

    And a challenger to that title is also coming back. “Slow Horses” (Nov. 29), the darkly funny thriller about a group of washed-up spies, returns for its third season. Gary Oldman stars as perpetually disgruntled spymaster Jackson Lamb, leading his team of misfits as they get dragged into an international conspiracy after one of their own is kidnapped. Based on the novels by Mick Herron, “Slow Horses” is smart and cynical, a terrific twist on traditional spy stories.

    Then there’s “Monarch: Legacy of Monsters” (Nov. 17), an action-conspiracy series about a ragtag group trying to expose a secretive organization that knows the truth about Godzilla and other kaiju creatures terrorizing the planet. Kurt Russell stars with his son, Wyatt (who plays his dad in flashbacks), along with Anna Sawai, Ren Watabe and Kiersey Clemons. The series is intended to slide right into the MonsterVerse that includes “Godzilla vs. Kong,” “Kong: Skull Island” and “Godzilla: King of the Monsters,” and for anyone who grew up watching monster movies, this could be a lot of fun.

    Apple
    AAPL,
    +1.87%
    also has “Fingernails” (Nov. 3), a sci-fi romance movie starring Jessie Buckley, Riz Ahmed, Jeremy Allen White and Luke Wilson; “The Buccaneers” (Nov. 8), a “Bridgerton”-esque period drama based on the Edith Wharton novel about a group of rich American girls who hit London in the 1870s looking for suitable husbands; the holiday musical special “Hannah Waddingham: Home for Christmas” (Nov. 22); and a new version of the tear-jerking children’s classic “The Velveteen Rabbit” (Nov. 22).

    Meanwhile, Martin Scorsese’s critically acclaimed “Killers of the Flower Moon” should hit Apple TV+ within the next month or two, after it completes its theatrical run, and Ridley Scott’s historical epic “Napoleon,” starring Joaquin Phoenix, his theaters Nov. 22. It, too, will stream on Apple at an as-yet-undisclosed date in the coming months.

    There are also new episodes every week of “Lessons in Chemistry” (finale Nov. 24), and “The Morning Show” (season finale Nov. 8). If that’s not enough, you could always catch up on “Foundation,” “Swagger,” “Platonic” or discover “Bad Sisters.”

    Who’s Apple TV+ for? It offers a little something for everyone, but not necessarily enough for anyone — although it’s getting there.

    Play, pause or stop? Play. Even though its price has soared, Apple is still cheaper than most, and it delivers value this month. (Remember, you can get three free months of Apple TV+ if you buy a new Apple device.)

    Hulu ($7.99 a month with ads, or $17.99 with no ads)

    After a fallow October, Hulu has a lot more to offer in November, continuing its strong year.

    FX’s “A Murder at the End of the World” (Nov. 14) was pushed back from an August release date due to the Hollywood strikes, but it should fit better in a colder season anyway. From Brit Marling and Zal Batmanglij, the producers of Netflix’s cult favorite sci-fi series “The OA,” the limited series is an Agatha Christie-style murder mystery set at a billionaire’s secluded, snowbound retreat in Iceland. Emma Corrin (“The Crown”) stars as an amateur detective while Clive Owen (“Children of Men”) plays the mysterious tycoon.

    A wintry setting also plays a key role in the fifth season of FX’s “Fargo” (Nov. 22), the latest installment in Noah Hawley’s noirish crime anthology. Juno Temple (“Ted Lasso”) plays a seemingly ordinary Midwestern housewife who’s not at all what she appears to be. She’s joined by an all-star cast that includes Jon Hamm, Jennifer Jason Leigh, Lamorne Morris and Dave Foley. Each season of “Fargo” is a quirky, violent delight, and this one looks no different.

    Also: Disney officially plans to buy remaining Hulu stake from Comcast

    Just to make things confusing, while both “A Murder at the End of the World” and “Fargo” are FX series, “Murder” will stream exclusively on Hulu, while “Fargo” episodes will first air on FX then stream a day later.

    In an interesting experiment, director Baz Luhrmann has recut his 2008 romantic drama “Australia,” starring Nicole Kidman and Hugh Jackman, and turned it into a six-episode miniseries — renamed “Faraway Downs” (Nov. 26) — using extra footage shot during the original filming. The movie flopped in theaters, but Luhrmann says it should work better as a miniseries, saying “episodic storytelling has been reinvigorated by the streaming world.”

    For more: Here’s what’s new on Hulu in November 2023 — and what’s leaving

    Hulu also has “Black Cake” (Nov. 1), a generations-spanning family drama based on the bestselling novel by Charmaine Wilkerson; “Quiz Lady” (Nov. 3), a comedy movie about estranged sisters, starring Awkwafina and Sandra Oh; and a handful of sports documentaries, including “The League” (Nov. 9), about Negro League baseball, and “Brawn: The Impossible Formula 1 Story” (Nov. 15), hosted by Keanu Reeves.

    Fresh off October’s addition of “Moonlighting,” Hulu is adding all eight seasons of another 1980s classic, “L.A. Law” (Nov. 3), along with a ton of holiday fare, including “Adam Sandler’s Eight Crazy Nights” and “Miracle on 34th Street” (both Nov. 1), and “Elf” and “National Lampoon’s Christmas Vacation” (both Nov. 23).

    And don’t forget the season finales of “Welcome to Wrexham” (Nov. 15) and “Goosebumps” (Nov. 17), as well as next-day streams of network shows such as “The Golden Bachelor” and “Bob’s Burgers.”

    Who’s Hulu for? TV lovers. There’s a deep library for those who want older TV series and next-day streaming of many current network and cable shows.

    Play, pause or stop? Pause and think it over. If you’re on the ad-supported plan, it’s well worth it. But for the pricey, $18 ad-free plan, you may want to wait until December and see how some of these new series pan out.

    Netflix ($6.99 a month for basic with ads, $15.49 standard with no ads, $22.99 premium with no ads)

    Netflix just raised some prices again, but for most customers, it’s still a good value.

    The critically acclaimed royal-family drama “The Crown” (Nov. 16) is back for the first half of its sixth and final season (four episodes drop this month, with the final six coming in December). Events pick up in 1997 after the marriage of Prince Charles (Dominic West) and Princess Diana (Elizabeth Debicki) ends, as Queen Elizabeth II (Imelda Staunton) reflects on her legacy. There’s already controversy over how it’ll handle Diana’s tragic death.

    Read more: Here’s what’s new on Netflix in November 2023 — and what’s leaving

    Netflix
    NFLX,
    +2.06%
     also has “The Killer” (Nov. 10) a “slick but conventional” thriller movie from director David Fincher, starring Michael Fassbender as a hit man on the run; “Squid Game: The Challenge” (Nov. 22), a reality competition show putting 456 players through challenges inspired by the hit Korean drama (minus the murders, presumably); “Scott Pilgrim Takes Off” (Nov. 17), an anime version of the graphic novels and cult-favorite movie “Scott Pilgrim vs. the World” (which is also coming Nov. 1); “All the Light We Cannot See” (Nov. 2), a critically panned miniseries about a blind French girl and a German soldier in the final days of WWII, starring Aria Mia Loberti, Louis Hofmann and Mark Ruffalo; Season 5, Part 2 of the popular small-town romantic drama “Virgin River” (Nov. 30); and “The Netflix Cup: Swing to Survive” (Nov. 14), Netflix’s first livestreamed sporting event, with teams of Formula 1 drivers and PGA stars in a match-play golf tournament from Las Vegas.

    There are also fresh episodes of “The Great British Baking Show” every Friday until its season finale Dec. 1.

    Who’s Netflix for? Fans of buzz-worthy original shows and movies.

    Play, pause or stop? Pause. “The Crown” and “The Great British Baking Show” are the top draws, but aside from those, there’s not a lot else to move the needle this month. However, if you can live with commercials, you can find value at $7.

    Paramount+ ($5.99 a month with ads, $11.99 a month with Showtime and no ads)

    Paramount+ has some interesting stuff in November. But is it enough to justify a subscription?

    “Lawmen: Bass Reeves” (Nov. 5), joins the streaming service’s extensive slate of shows produced by Taylor Sheridan, telling the story of one of the Wild West’s most overlooked real-life heroes: Bass Reeves (played by David Oyelowo), who was the first Black U.S. marshal west of the Mississippi and overcame countless hurdles in enforcing the law in the era of Reconstruction. A marksman with something like 3,000 arrests to his name, Reeves was purportedly the inspiration for the story of the Lone Ranger. Say what you will about Sheridan’s formulaic shows, but he knows how to make a good Western. This should be worth a watch.

    There’s also “The Curse“ (Nov. 10), an intriguing new Showtime series starring Nathan Fielder (“Nathan for You”) and Oscar-winner Emma Stone that puts a dark twist to an HGTV-like home-improvement show; and “Good Burger 2” (Nov. 22), a sequel to the 1997 cult-classic fast-food comedy starring Kenan Thompson and Kel Mitchell.

    On the sports side, Paramount has NFL football every Sunday, Big Ten and SEC college football every Saturday, and a full slate of UEFA Champions League soccer.

    Who’s Paramount+ for? Gen X cord-cutters who miss live sports and familiar Paramount Global 
    PARA,
    -0.74%
      broadcast and cable shows.

    Play, pause or stop? Pause. There’s decent value with a couple of promising new shows, especially when factoring in Paramount’s live sports and vast library of movies and network shows.

    Max ($9.99 a month with ads, $15.99 with no ads, or $19.99 ‘Ultimate’ with no ads)

    It’s a very skippable month for Max.

    The Warner Bros. Discovery 
    WBD,
    +1.41%
     streaming service only has a handful of new originals to offer, including Season 2 of Issa Rae’s hip-hop comedy “Rap Sh!t” (Nov. 19), as Shawna (Aida Osman) and Mia (KaMillion) come to a crossroads on their road to fame; Season 2 of the biographical drama “Julia” (Nov. 16), starring Sarah Lancashire as iconic chef Julia Child as she and her husband return from France and face new challenges; “Bookie” (Nov. 30), a new comedy from Chuck Lorre (“Big Bang Theory”) and Nick Bakay about an L.A. bookie looking for new angles as the potential legalization of sports gambling threatens to upend his shady business; and Rob Reiner’s documentary “Albert Brooks: Defending My Life” (Nov. 11), delving into the life of the comedy legend.

    Also: Here’s everything coming to Max in November 2023 — and what’s leaving

    There are also a ton of holiday-themed shows from Food Network, HGTV and OWN; live sports on its free (for now) Bleacher Report tier that includes NBA and NHL games, college basketball and U.S. men’s soccer (Nov. 16 and 20); and new episodes of “The Gilded Age” and “Last Week Tonight with John Oliver.”

    Who’s Max for? HBO fans and movie lovers. And now, unscripted TV fans too, with a slew of Discovery shows.

    Play, pause or stop? Stop. Max still has a great library, but the new offerings fall short. Even the ad tier isn’t worth it — try again another month.

    Amazon’s Prime Video ($14.99 a month, or $8.99 without Prime membership)

    “The Boys” spinoff “Gen V” ends its first season on Nov. 3, but fans of ultra-violent superheroes will be able to slide right into Season 2 of the hit animated series “Invincible” (Nov. 3), which returns to Prime Video after a two-and-a-half-year layoff. Based on the graphic novels by Robert Kirkman, Cory Walker and Ryan Ottley, the very adult series picks up with Mark (Steven Yeun) still reeling from the revelations about his superhero father (J.K. Simmons) at the end of Season 1, while a new villain (voiced by Sterling K. Brown) appears on the scene. Annoyingly, Season 2 will be split in two, with four episodes in November and another four coming in early 2024.

    More: What’s new on Amazon’s Prime Video and Freevee in November 2023

    Amazon’s
    AMZN,
    +2.94%
     streaming service also has “007: Road to a Million” (Nov. 10), an “Amazing Race”-like competition series hosted by Brian Cox where nine teams of two endure James Bond-inspired challenges around the globe to try to win a big cash prize, and “Twin Love” (Nov. 17), a reality dating show involving 10 sets of identical twins split into two houses.

    Who’s Prime Video for? Movie lovers, TV-series fans who value quality over quantity.

    Play, pause or stop? Stop. There’s no a compelling reason to start a relatively pricey subscription now. That even goes for “Invincible” fans, who would be better off waiting until the second half drops and bingeing when all episodes are available. Splitting up eight episodes is ridiculous.

    Disney+ ($7.99 a month with ads, $13.99 with no ads)

    Tim Allen returns for Season 2 of “The Santa Clauses” (Nov. 8), as the jolly one continues his search for a successor. Eric Stonestreet joins the cast as the exiled “Mad Santa,” along with Gabriel Iglesias as Kris Kringle and Tracey Morgan as the Easter Bunny (because, of course!).

    Meanwhile, Lil Rel Howry, Ludacris and Oscar Nunez star in the new family comedy movie “Dashing Through the Snow” (Nov. 17), and Danny Glover will play Santa in the Disney Channel original film “The Naughty Nine” (Nov. 23).

    In non-holiday fare, Disney has three upcoming Doctor Who specials celebrating the iconic sci-fi series’ 60th anniversary. The first, “Doctor Who: The Star Beast” (Nov. 25), reunites David Tennant and Catherine Tate, as the Doctor and Donna Noble battle the villainous Toymaker (Neil Patrick Harris), with the other two specials coming in December, when the 15th Doctor (Ncuti Gatwa of “Sex Education”) will be introduced.

    There’s also 2019’s “Spider-Man: Far From Home” (Nov. 3), and new episodes of “Loki” (finale Nov. 9), “Goosebumps” (finale Nov. 17) and “Dancing With the Stars.”

    Who’s Disney+ for? Families with kids, hardcore “Star Wars” and Marvel fans. For people not in those groups, Disney’s
    DIS,
    -0.64%
     library can be lacking.

    Play, pause or stop? Stop. After a recent price hike, there’s just not enough to justify a subscription (unless your kids will absolutely melt down without it).

    Peacock ($5.99 a month with ads, or $11.99 with no ads)

    It’s a pretty bleak month for Peacock originals, with only the reality dating spinoff “Love Island Games” (Nov. 1); “Please Don’t Destroy: The Treasure of Foggy Mountain” (Nov. 17), the first movie from the “SNL” comedy trio; and Season 2 of the Paris Hilton reality series “Paris in Love” (Nov. 30).

    It’s a bit brighter on the sports side, with Big Ten college basketball starting Nov. 6, Big Ten college football every Saturday, NFL Sunday Night Football and a full slate of English Premier League soccer, golf, motorsports and winter sports.

    And on Thanksgiving (Nov. 23), Peacock will stream the annual Macy’s Thanksgiving Day Parade, the National Dog Show and an NFL game, as the 49ers play the Seahawks.

    Who’s Peacock for? Live sports and next-day shows from Comcast’s 
    CMCSA,
    +1.28%
     NBCUniversal are the main draw, but there’s a good library of shows and movies.

    Play, pause or stop? Stop. The live-sports offerings are the only lure.

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  • CNBC Daily Open: Are things about to get more difficult?

    CNBC Daily Open: Are things about to get more difficult?

    [ad_1]

    Up from No. 13 in 2022, Minneapolis, Minnesota ranked as the No. 2 most neighborly city in America.

    S. Greg Panosian | E+ | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    S&P 500 in correction
    The     S&P 500 index slipped into correction territory on Friday amid fears of a recession, closing 10.3% lower from this year’s peak on July 31. The Dow Jones Industrial Average closed 1.12% lower, and the Nasdaq Composite held 0.38% higher. Asia-Pacific markets kicked off the week on a mixed note ahead of key economic readings from the region. Japan’s Nikkei 225 fell 1.03% while the Kospi in South Korea was up 0.35%.

    Hey, Big Spender  
    Inflation in September rose but consumer spending came in even stronger than economists expected, numbers from the Commerce Department showed on Friday. The core personal consumption expenditures price index, the Fed’s key inflation measure, was 0.3% higher for the month, which was in line with the Dow Jones estimate. Even though prices picked up, personal spending continued, rising 0.7%, which was better than the 0.5% forecast.

    A potential pause?
    The Federal Reserve is widely seen leaving interest rates unchanged at the end of its two-day policy meeting this week, even as its preferred inflation indicator remains well above its 2% target. Earlier this month, Fed Chair Jerome Powell said “inflation is still too high,” raising expectations that another rate hike may not be entirely out of the picture.

    HSBC’s bumper profit
    HSBC reported quarterly profit after tax of $6.26 billion, up a whopping 235% compared to the $2.66 billion from a year ago quarter. Profit before tax, for the three months ended September, rose by $4.5 billion to $7.7 billion, due to a higher interest rate environment.

    [PRO] This under-the-radar stock is set for an AI boost
    Investors have piled into the likes of Nvidia, Baidu and Alibaba as such tech companies have leveraged the use of artificial intelligence. But one portfolio manager says there’s one lesser-known stock that stands out.

    The bottom line

    Markets survived another brutal week and are looking to wrap up an even more tumultuous month, which saw the S&P 500 and Nasdaq indexes slip into correction territory.

    A correction is when an index falls more than 10% (but less than 20%) from its most recent closing high. It’s called a correction because historically the drop often “corrects” and returns prices to their longer-term trend.

    Investors have had to tackle everything from multi-year high Treasury yields, a busy earnings season to multiple inflation readings. A reading on personal consumption expenditures on Friday served as the latest evidence that American consumer spending remained healthy.

    Core PCE rose 0.3% in September and 3.7% year over year, matching estimates from economists polled by Dow Jones. Personal spending increased 0.7%, however, surpassing estimates of 0.5%. PCE is the Federal Reserve’s most preferred inflation metric.

    The reading came ahead of the Fed’s two-day policy meeting this week, at the end of which the U.S. central bank is widely expected to pause on hiking rates.

    Morningstar’s chief U.S. market strategist Dave Sekera says the Fed is done hiking, and forecasts the central bank will start to cut the federal funds rate in the first half of 2024. 

    “As we forecast the rate of economic growth to slow and inflation to moderate, this allows the Fed to move to increasingly more accommodative language in early 2024 to prepare the market in advance for when they decide to begin cutting rates,” Sekera wrote.

    A Fed meeting was by no means the only market-moving event investors were looking at. About 30% of the S&P 500 is scheduled to report earnings this week, among which Apple, McDonald’s and Pfizer will deliver quarterly results.

    And if that wasn’t packed enough, market players will also be chasing the October jobs report due on Friday. It’s expected to show the U.S. economy added 175,000 jobs last month, according to consensus estimates from FactSet. That will follow a blowout 336,000 job additions from the prior month. 

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  • CNBC Daily Open: The perfect storm

    CNBC Daily Open: The perfect storm

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    NEW YORK, NEW YORK – JUNE 03: People walk by the New York Stock Exchange (NYSE) at the start of the trading day on June 03, 2022 in New York City. A new jobs report released by the Labor Department this morning shows employers added 390,000 jobs in May. Stocks pointed lower ahead of the opening bell on Friday, putting indexes back into the red for the week. (Photo by Spencer Platt/Getty Images)

    Spencer Platt | Getty Images News | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    S&P 500 in correction
    The benchmark     S&P 500 index slipped into correction territory on Friday on fears of a recession, closing 10.3% lower from this year’s peak on July 31. The Dow Jones Industrial Average closed 1.12% lower, while the Nasdaq Composite held 0.38% higher. European stocks also ended lower, with the benchmark Stoxx 600 closing down 0.8%.

    Hey, Big Spender  
    Inflation in September rose but consumer spending came in even stronger than economists expected, numbers from the Commerce Department showed on Friday. The core personal consumption expenditures price index, the Fed’s key inflation measure, was 0.3% higher for the month, which was in line with the Dow Jones estimate. Even though prices picked up, personal spending continued, rising 0.7%, which was better than the 0.5% forecast.

    A potential pause?
    The Federal Reserve is widely seen leaving interest rates unchanged at the end of its two-day policy meeting this week, even as its preferred inflation indicator remains well above its 2% target. Earlier this month, Fed Chair Jerome Powell said “inflation is still too high,” raising expectations that another rate hike may not be entirely out of the picture.

    One million share sale
    JPMorgan Chase CEO Jamie Dimon is set to sell one million shares of the bank in 2024. The plan raised concerns that Dimon could be contemplating retirement. Still, a spokesperson for the country’s biggest lender said the move wasn’t related to a succession plan, and that Dimon has “no current plans” for another sale.

    [PRO] The S&P 500 correction is good news
    The stock market tumbled into correction territory this week, sparking fears of more turmoil is ahead. But for disciples of Warren Buffett, a 10% drawdown for the the S&P 500 shouldn’t matter.   

    The bottom line

    Markets survived another brutal week and are looking to wrap up an even more tumultuous month, which saw the S&P 500 and Nasdaq indexes slip into correction territory.

    A correction is when an index falls more than 10% (but less than 20%) from its most recent closing high. It’s called a correction because historically the drop often “corrects” and returns prices to their longer-term trend.

    Investors have had to tackle everything from multi-year high Treasury yields, a busy earnings season to multiple inflation readings. A reading on personal consumption expenditures on Friday served as the latest evidence that American consumer spending remained healthy.

    Core PCE rose 0.3% in September and 3.7% year over year, matching estimates from economists polled by Dow Jones. Personal spending increased 0.7%, however, surpassing estimates of 0.5%. PCE is the Federal Reserve’s most preferred inflation metric.

    The reading came ahead of the Fed’s two-day policy meeting this week, at the end of which the U.S. central bank is widely expected to pause on hiking rates.

    Morningstar’s chief U.S. market strategist Dave Sekera says the Fed is done hiking, and forecasts the central bank will start to cut the federal funds rate in the first half of 2024. 

    “As we forecast the rate of economic growth to slow and inflation to moderate, this allows the Fed to move to increasingly more accommodative language in early 2024 to prepare the market in advance for when they decide to begin cutting rates,” Sekera wrote.

    A Fed meeting was by no means the only market-moving event investors were looking at. About 30% of the S&P 500 is scheduled to report earnings this week, among which Apple, McDonald’s and Pfizer will deliver quarterly results.

    And if that wasn’t packed enough, market players will also be chasing the October jobs report due on Friday. It’s expected to show the U.S. economy added 175,000 jobs last month, according to consensus estimates from FactSet. That will follow a blowout 336,000 job additions from the prior month. 

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  • Big Tech earnings have been strong, but Apple is about to answer the thousand-dollar question

    Big Tech earnings have been strong, but Apple is about to answer the thousand-dollar question

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    While the stock market reactions may not prove it, Big Tech is four-for-four so far this earnings reporting season.

    Alphabet Inc.
    GOOG,
    -0.03%

    GOOGL,
    -0.09%    ,
    Amazon.com Inc.
    AMZN,
    +6.83%    ,
    Meta Platforms Inc.
    META,
    +2.91%
    and Microsoft Corp.
    MSFT,
    +0.59%
    all beat earnings and revenue expectations for the latest quarter, showing, among other things that the advertising market was healthy in the latest quarter and that software spending is holding up.

    But one more major test looms in the week ahead. Apple Inc.
    AAPL,
    +0.80%
    is due to deliver September-quarter results on Thursday and those earnings will answer a key question: Are consumers still so willing to purchase thousand-dollar iPhones in the current economy?

    Results from other companies in recent weeks have painted a mixed picture of consumer spending. Visa Inc.
    V,
    -0.87%    ,
    Mastercard Inc.
    MA,
    -0.14%
    and American Express Co.
    AXP,
    -1.42%
    say that spending remains resilient, but there are also signs that cracks are starting to form in categories deemed non-essential. Just look at Align Technology Inc.
    ALGN,
    +0.20%    ,
    the maker of Invisalign orthodontic aligners, which saw its stock plunge last week after noting that people seem to be putting off dental and orthodontic visits.

    Read: Invisalign maker’s stock craters after soft earnings, but analysts still say it’s a buy

    Granted, some might say that iPhones are glorified necessities these days for Apple fans, even with their high price tags. But Apple conducted an effective price increase on its iPhone 15 Pro model when it rolled out its new phones in September, all while delivering a mostly incremental suite of feature upgrades across all its latest models. Will the new phones prove enticing enough in a period of stretched budgets?

    Just judging by S&P 500
    SPX
    results so far in the aggregate, the odds would seem to be in Apple’s favor for a beat this quarter. About half of index components have already reported, and 78% have posted earnings upside, while 62% have surprised positively on the top line, according to FactSet.

    Revenue will be the key item for Apple, as consensus expectations call for a small decline on the metric, which would mark the fourth consecutive year-over-year drop. It’s also worth noting that companies on the whole haven’t been topping revenue estimates by their usual margin. S&P 500 components in aggregate have reported revenue 0.8% above expectations, which compares with a five-year average of 2.0%, FactSet Senior Earnings Analyst John Butters wrote in a recent report.

    Apple’s report could also highlight the impact of currency on corporate results, as the company generates more than half of its revenue internationally.

    “Given the stronger U.S. dollar in recent months, are S&P 500 companies with more international revenue exposure reporting lower (year-over-year) earnings and revenues for Q3 compared to S&P 500 companies with more domestic revenue exposure?” Butters asked. “The answer is yes.”

    This week in earnings

    Many U.S. investors in financial-technology companies likely hadn’t heard of European payments player Worldline SA
    WLN,
    +9.06%
    before last week, but a warning from the French company about deteriorating conditions in Europe helped send shares of PayPal Holdings Inc.
    PYPL,
    -2.63%
    and Block Inc.
    SQ,
    -3.98%
    sharply lower Wednesday, in a selloff one analyst deemed an overreaction. Those companies will look to reassure Wall Street about the health of their businesses with their own reports this week. Plus, while not a payments name, SoFi Technologies Inc.
    SOFI,
    -0.43%
    will provide another read on the fintech sector. Investors will be watching to see how the end of the student-loan moratorium impacted student lending volumes.

    The week ahead will also shed light on how consumers’ dining preferences have evolved in the current economy. Starbucks Corp.
    SBUX,
    -0.70%    ,
    Dine Brands Global Inc.
    DIN,
    -0.12%    ,
    Cheesecake Factory Inc.
    CAKE,
    -0.47%
    and Sweetgreen Inc.
    SG,
    +0.59%
    are among names on the docket. Plus, amid concerns about the impact of GLP-1 drugs such as Ozempic and Wegovy on eating habits, Kraft Heinz Co.’s management will be in the spotlight.

    Don’t miss: What exactly are patients taking new weight-loss drugs eating and what are they avoiding? Bernstein asked them.

    The call to put on your calendar

    You can’t spell Advanced Micro Devices without AI (sort of): Nvidia Corp.
    NVDA,
    +0.43%
    has been ruling the chip world this year thanks to its dominance with the sort of hardware needed to power the corporate AI fervor. Investors will be watching Tuesday afternoon to see how quickly Advanced Micro Devices Inc.’s
    AMD,
    +2.95%
    own AI story is coming together. “The AMD narrative feels all about their data center (and, particularly, their AI story) right now,” Bernstein analyst Stacy Rasgon wrote in a note to clients. “In the near term the achievability of their 2H data-center growth (guided to 50% half-over-half) will be the question.” Rasgon expects AMD to discuss recent customer wins for its MI300X chip, though he thinks it will take time for the company to see “real volume.”

    The number to watch

    PayPal transaction margins: Shares of the one-time investor darling are trading at their lowest levels since May 2017, and the latest source of anguish for Wall Street is the company’s transaction margins. PayPal’s lower-margin unbranded checkout business has been growing more quickly than its higher-margin branded checkout product, a trend that’s been weighing on overall transaction margins. Barclays analyst Ramsey El-Assal expects the third quarter to mark a bottom on the metric before trends stabilize in the fourth quarter. “We do not believe the stock is crowded on the long or short side into earnings, as investors lack conviction regarding the magnitude of transaction margin headwinds in Q3,” he wrote in a recent preview. “In any case, we view Q3 as a potential clearing event.” PayPal posts results Wednesday afternoon.

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  • Google paid $26 billion in 2021 to become the default search engine on browsers and phones

    Google paid $26 billion in 2021 to become the default search engine on browsers and phones

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    Google CEO Sundar Pichai (L) and Apple CEO Tim Cook (R) listen as U.S. President Joe Biden speaks during a roundtable with American and Indian business leaders in the East Room of the White House in Washington, D.C., on June 23, 2023.

    Anna Moneymaker | Getty Images

    Google paid $26.3 billion to be the default search engine on mobile phones and web browsers in 2021, according to a slide made public Friday in a federal antitrust trial against the company.

    The number is a more granular look into how much Google pays partners, including Apple, to be the default search engine on their products. The U.S. Department of Justice and a coalition of state attorneys general have argued in the case that Google has illegally maintained its monopoly power in general search by leveraging its dominance to lock rivals out of key distribution channels, such as Apple’s Safari web browser.

    The $26.3 billion figure does not represent the payments to any one company, but Apple likely represents the largest recipient. Bernstein previously estimated Google could pay Apple as much as $19 billion this year for the out-of-the-box default placement on Apple devices. 

    “Google pays billions of dollars each year to distributors—including popular-device manufacturers such as Apple, LG, Motorola, and Samsung; major U.S. wireless carriers such as AT&T, T-Mobile, and Verizon; and browser developers such as Mozilla, Opera, and UCWeb—to secure default status for its general search engine and, in many cases, to specifically prohibit Google’s counterparties from dealing with Google’s competitors,” the DOJ complaint reads.

    Google has argued that users can still opt to change their default search engine with a few clicks.

    According to the slide shown in court Friday — titled “Google Search+ Margins,” which primarily refers to Google’s search business — that division’s 2021 revenue was more than $146 billion, while the portion of traffic acquisition costs was more than $26 billion.

    The slide included numbers dating back to 2014, when Google booked revenue of roughly $47 billion for the division and paid about $7.1 billion for the default status. That means revenue for Search+ roughly tripled between 2014 and 2021, while this portion of TAC costs nearly quadrupled.

    While Google regularly reports overall TAC, that number also includes the amount Google pays to network partners for ads shown on their properties, according to its 10-K filing with the U.S. Securities and Exchange Commission.

    The other portion of the overall TAC figure Google reports in earnings consists of the payments it makes to “distribution partners who make available our search access points and services,” according to the 10-K. Google says its “distribution partners include browser providers, mobile carriers, original equipment manufacturers and software developers.” This is the portion of TAC that appeared to be represented by the slide, which referred only to Search+ revenue.

    A Google spokesperson declined to comment. An Apple spokesperson did not immediately respond to CNBC’s request for comment.

    WATCH: How US antitrust law works, and what it means for Big Tech

    Don’t miss these CNBC PRO stories:

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  • This Apple App Store billing policy can lead to overdraft fees, budget woes: ‘It’s a bizarre practice,’ developer says

    This Apple App Store billing policy can lead to overdraft fees, budget woes: ‘It’s a bizarre practice,’ developer says

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    Igor Golovniov | SOPA Images | LightRocket via Getty Images

    For many purchases, once you swipe your debit or credit card or click “buy now,” that transaction swiftly shows up as pending on your account. But that’s not always the case if you’re shopping in Apple’s App Store. 

    Apple is known to do something called “bundled billing,” where it groups purchases made within a certain period into a single charge. 

    The tech giant has used the practice since the early days of the iTunes Music Store in 2003, and it often means users can purchase apps, subscriptions, books and music without having the funds charged to their account until several days later.

    It may seem like a small difference in timing, but Apple’s practice of delaying and combining charges can lead some consumers to face budgeting challenges and hefty overdraft fees as they grapple with the unpredictability of when expenses will hit their accounts. 

    “It doesn’t make any sense,” said developer David Barnard, growth advocate for RevenueCat, which makes a tool to automate Apple’s billing on the developer side. Barnard has also experienced the delay with some of his own App Store purchases. 

    “In modern times, where you purchase something online and you get an email receipt within seconds, it’s a bizarre practice,” he said.

    More from Your Money:

    Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

    Longtime Apple user Savannah Moore, 35, of Buena Vista, Colorado, told CNBC the bundling affected her less when she worked full-time and generated more income. But now that she’s on disability and only gets paid once a month, she said not knowing when she’ll be billed makes it harder to plan. 

    Apple recently billed Moore a total of $15.98 for two separate transactions, a subscription and an in-app purchase, causing her to be charged three days after purchase for the subscription and two days after the in-app purchase.

    With the delayed charges, she said she is often misled by her account balance and has incurred overdraft fees on multiple occasions. 

    “I go out with my friends, buy a cheap drink and get a taco,” she said, recounting an experience. “I wake up the next morning and my account bounced because the taco was charged by the person I bought it from that night … but Apple didn’t charge what they were supposed to charge [days earlier], until also that night.”

    A spokesperson at Merchant Advisory Group, which works with more than 150 merchants across the U.S., said it’s not unusual for businesses to develop systems that help them minimize the transaction costs imposed by card networks. Starbucks, for instance, has a rewards program that incentivizes customers who pay with a Starbucks gift card by awarding two “stars” for every $1 spent, as opposed to one star if they were to pay with a credit or debit card. 

    “It’s really the same process, just a different way of making that process work.”

    That said, Apple’s practice is unique among major app stores.

    Asked about the practice, an Apple spokesperson told CNBC in an emailed statement that the company sometimes bundles multiple purchases and subscriptions into one bill for the convenience of its customers, and sends a single email receipt instead of an individual email for every purchase a customer makes. It also notes the practice on its website in the support section on how to confirm billing charges.

    Apple did not respond to follow-up requests to clarify how it determines the duration of a delayed charge and when it decides to group purchases.

    Meanwhile, Google Play does not bundle, a company spokesperson told CNBC. Its website says that customers are charged “shortly” after purchasing content and will receive a confirmation email with their order information. 

    An Amazon spokesperson said purchases on Amazon Appstore are treated separately and a “separate clear” notification is sent to the customer for each charge.

    Bundling charges can cut ‘swipe fees’

    There are likely financial advantages for Apple in bundling and delaying charges, some experts say.

    Businesses have to pay a per-transaction fee — or “swipe fee” — each time they process an electronic payment. The swipe fee is typically a percentage of the transaction amount plus a fixed fee. Credit card swipe fees average 2.24% but can be as high as 4%, according to the Merchants Payment Coalition. The Federal Reserve capped debit card fees at 21 cents plus 0.05% of the transaction. 

    By delaying a charge so it can be grouped with other purchases, Apple may be able to retain a larger profit margin.

    Delayed and bundled charges were more comprehensible in the early days of the iTunes Music Store because charging a customer each time they purchased a $0.99 song would have been coupled with steep interchange fees, said Barnard, the developer. But the practice made less sense with the emergence of the App Store in 2008.

    When we swipe our credit card or make a purchase, we’re happy. We enjoy buying stuff, we just don’t like seeing the transaction.

    Michael Barbera

    Chief behavioral officer at Clicksuasion Labs

    Bundling could have cost-cutting perks for the customer, said Lawrence Sprung, a certified financial planner and the founder of Mitlin Financial in Hauppauge, New York.

    Since Apple can save on transaction fees by grouping purchases, he said it’s also likely that customers can pay less for those purchases.

    “If the company can keep their cost down, then the hope is that they’ll keep the cost down for the consumer,” Sprung said.

    An illusion of spending less money less often

    When a customer isn’t billed immediately after a purchase, it can drive them to make more purchases, according to psychology experts.

    Bundled billing can reduce “pain of paying,” which refers to the negative emotions people experience when paying for goods or services, said consumer psychologist Michael Barbera, chief behavioral officer at Clicksuasion Labs. If a customer receives a receipt or notification after every purchase they make, they’ll be less likely to spend money in the future.  

    Small businesses fights back against 'swipe fees'

    “When we swipe our credit card or make a purchase, we’re happy,” Barbera said. “We enjoy buying stuff, we just don’t like seeing the transaction.”

    So, when customers can indulge in an app or service without being billed on the spot, they’re more likely to associate their interactions with Apple as experiential rather than transactional, said Barbera — and that positively influences consumer behavior.

    The practice of bundling charges and the lack of clarity on how the policy is executed create the illusion that customers are spending less money less often, said Avigail Lev, a clinical psychologist and consultant based in San Francisco.

    That can lead to overspending — especially for people who aren’t the best at tracking expenses.

    At some point, we kind of have to say, ‘Hey, I’m an adult. I know I’m spending this money, I need to keep track of it.’

    Taylor Kovar, CFP

    CEO and founder of Kovar Wealth Management

    The financial consequences of bundled billing may also disproportionately affect people who live paycheck to paycheck, said behavioral scientist Piyush Tantia, chief innovation officer at Ideas42. Those individuals tend to have volatile income and expenses that make it difficult for them to track their finances thoroughly. 

    “They’re not accounting for that charge hitting later, and they may spend [the money] on something else in the meantime and then end up with hefty fees,” Tantia said. “For someone who’s already tight on finances, that extra fee is very, very painful.”

    How to limit the financial effect of delayed billing

    Artistgndphotography | E+ | Getty Images

    As Apple user Moore discovered, bundled billing can be more problematic for shoppers using debit cards. After the Consumer Financial Protection Bureau began scrutinizing banking fees, some banks have eliminated overdrafts or implemented more consumer-friendly policies. Even so, the average overdraft fee is $26.61 and can be as high as $38, according to recent data from Bankrate. 

    Certified financial planner Taylor Kovar, CEO and founder of Kovar Wealth Management in Lufkin, Texas, said Apple’s delayed billing has affected some of his clients. Although it would be ideal for customers to know when they will be charged — as they do for many recurring bills such as utilities or student loans — he said, it’s still important for them to take responsibility for their purchases.

    “At some point, we kind of have to say, ‘Hey, I’m an adult. I know I’m spending this money, I need to keep track of it,'” Kovar said. 

    With technological advancements, Kovar said, consumers should take advantage of free budgeting apps that allow them to set up alerts and track where their money is going. He also said it’s safer to charge Apple App Store purchases to a credit card instead of a debit card because it protects against fraud and overdraft fees.

    It’s not common for people to buy something and immediately check their bank accounts to see if the charge is posted, said behavioral scientist Michael Liersch, head of advice and planning for Wells Fargo Wealth and Investment Management. People tend to keep a “mental account” of their money as it comes in and goes out, and check in on it sporadically.

    Due to this, he said, the delayed charges can affect people differently based on how often they engage with their finances.

    “When you think of general consumer behavior, it’s not uncommon for people to look at that information possibly once a month,” Liersch said. “It’s much less usual for someone to look at it moment to moment or daily.”

    For people to maintain agency over their finances with delayed billing, Liersch said it’s critical for them to focus on how much money they have available to spend on a daily, weekly and monthly basis.

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  • Chinese smartphone maker Xiaomi releases a new operating system as it plans car integration

    Chinese smartphone maker Xiaomi releases a new operating system as it plans car integration

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    The Xiaomi HyperOS logo is displayed on a smartphone.

    Sopa Images | Lightrocket | Getty Images

    BEIJING — Chinese smartphone and appliance maker Xiaomi announced late Thursday a new operating system — as it seeks to develop its ecosystem with the imminent release of its own car.

    Xiaomi shares rose more than 1% in Hong Kong trade Friday morning, building on gains of more than 20% for the year so far.

    The new system, called HyperOS, is set to reach consumers Oct. 31 when Xiaomi’s latest phones, wearables and TV sets begin sales in China.

    “The system marks a pivotal move forward in Xiaomi’s strategic vision of delivering the ‘Human x Car x Home’ smart ecosystem,” the company said in a release.

    CEO and founder Lei Jun said on Chinese social media Wednesday that Xiaomi would release its car in the first half of next year. He did not specify whether it would be electric.

    Tech companies have long sought to build customer loyalty with operating systems, such as Apple‘s iOS and Google‘s Android.

    Chinese telecommunications giant Huawei developed its own operating system, called HarmonyOS, in a bid to replace Android. The company makes its own suite of smartphones, laptops, tablets and television sets, while selling the software for electric cars manufactured by partners.

    In late September, Huawei claimed its operating system had surpassed 60 million users.

    Chinese electric car company Nio this fall also released its own smartphone, based on Android but customized for greater integration with its vehicles.

    Read more about China from CNBC Pro

    Xiaomi rose to fame for its affordable smartphones and MIUI user interface, based on open source Android.

    The company said the core of its new HyperOS system is “formed by Linux and Xiaomi’s self-developed Xiaomi Vela system.” The press release’s only mention of Android was that HyperOS allows for “more stable frame rate and lower power consumption” compared to the stock version of Android.

    Xiaomi also touted HyperOS’s processing speed and security, and listed a number of ways in which a smartphone, car and laptop could easily share content and access each other’s cameras on the new system.

    In recent years, Xiaomi has grown its appliance and consumer electronics business to account for about 22% of overall revenue in the second quarter, versus just under 37% for smartphones.

    On Thursday, the company released a 3,999 yuan ($546) smartphone as well as a 1,999 yuan washing machine and a 2,999 yuan refrigerator. Xiaomi has an app for letting customers remotely control appliance settings.

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  • Intel stock drops on report Nvidia is working on an Arm-based PC chip

    Intel stock drops on report Nvidia is working on an Arm-based PC chip

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    An exterior view of the NVIDIA headquarters in Santa Clara, California, May 30, 2023.

    Justin Sullivan | Getty Images

    Intel stock dropped more than 3% during trading on Monday after Reuters reported that Nvidia and AMD were working on Arm-based PC chips. Arm stock rose more than 6%, and Nvidia gained nearly 4% during late-day trading on Monday.

    Intel currently has the majority of the market for PC chips, with AMD coming in second. Sales of PC chips comprised over half of Intel’s revenue in the June quarter.

    Intel’s PC chips are based on the x86 instruction set. Chips that use the Arm-based instruction set, like those for smartphones, often use significantly less power, which is critical for battery-powered devices.

    Apple recently transitioned its laptop and PC chips from Intel to home-grown Arm processors, which led to a short-term boom in sales and longer battery life for the devices.

    Nvidia could release a PC chip based on Arm as soon as 2025, according to Reuters. AMD’s Arm chip is also in planning, according to the report. These chips would be used in PCs running Microsoft Windows.

    Switching software from the x86 instruction set to be compatible with an Arm-based processor can be time-consuming and difficult, but Windows can already easily run on an Arm chip.

    Qualcomm has been working on its own Arm-based PC chips for years, although they have yet to gain significant sales traction. It has a launch event planned for later this week.

    Last month, Arm went through an initial public offering, where it emphasized to investors that it has long-term agreements with top chipmakers to use its technology in their chips.

    Intel, ARM, and AMD did not immediately return requests for comment.

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  • Cramer explains what geopolitical upheaval means for the stock market

    Cramer explains what geopolitical upheaval means for the stock market

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  • CNBC Daily Open: Earnings in full swing, Treasury yields hit new highs

    CNBC Daily Open: Earnings in full swing, Treasury yields hit new highs

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    The Tesla Inc. Model Y electric vehicle during the launch in Kuala Lumpur, Malaysia, July 20, 2023.

    Samsul Said | Bloomberg | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Markets slide
    U.S. stock markets slid on Wednesday as earnings season picked up steam and Treasury yields touched multi-year highs — breaking above 4.9% for the first time since 2007. Asia markets started the day on the back foot, with stocks in Japan, South Korea and Hong Kong seeing falls of about 2% each by midday trading. Hong Kong-listed shares of Chinese EV makers also plunged Thursday morning after Tesla CEO Elon Musk delivered grim news on Tesla’s outlook overnight.

    Tesla misses on earnings  
    Tesla reported third-quarter results that missed expectations on both earnings and revenue for the first time since the second quarter of 2019. The electric vehicle maker reported adjusted earnings of 66 cents per share vs. 73 cents per share expected and revenue of $23.35 billion per share vs. $24.1 billion expected. Tesla’s total operating margin also came in significantly lower at 7.6%, from the year-ago quarter’s 17.2%.

    Netflix profit tops expectations
    Netflix’s password-sharing crackdown and its new ad-supported tier boosted subscriber growth in the third quarter. The streaming giant added 8.76 million global subscribers during the quarter, higher than expectations of 5.49 million and the most it’s added since the second quarter of 2020 – when Covid restrictions kept people at home. Its earnings came in at $3.73 per share, better than the $3.49 per share expected.

    iPhone 15 sales off to a slow start in China  
    A month after Apple’s iPhone 15 came out, analysts and investors are starting to see signs of slow demand in China versus last year. Sales of iPhone 15 models are down 4.5% for the first 17 days in Apple’s third largest market compared to last year, according to an estimate from Counterpoint Research.  

    [PRO] JPMorgan warns of rate cut impact on stocks
    JPMorgan Asset Management says cut in interest rates by the Federal Reserve next year would likely be bad news for U.S. equity investors. Stocks have typically rallied on multiple occasions over the past two years on any dovish signal from central bankers but JPMorgan believes Fed cuts in 2024 would likely coincide with declining corporate earnings, creating headwinds for stocks. Find out here where to invest.

    The bottom line

    U.S. stock markets closed out Wednesday with sweeping declines. The yield on the benchmark 10-year Treasury hit 4.908%, rising above 4.9% for the first time since 2007 as investors scoured economic data for clues on the Federal Reserve’s interest rate trajectory.

    Housing starts rose in September, but at a slower-than-expected rate, according to data released Wednesday. Building permits fell last month, but less than economists anticipated. This arrives a day after consumers showed surprising strength in September, boosting retail sales well above expectations.

    Traders are still expecting an over 85% chance that the Fed will hold its rates steady when it announces its next monetary decision on Nov. 1, but the retail sales figure has given way to some bets of another hike in December.

    Markets seemingly have no dearth of catalysts this week as earnings season gathers steam. Tesla missed third-quarter expectations on both profit and revenue. Netflix’s password-sharing crackdown efforts along with interest in its new ad-supported tier set its quarter up for success.  

    Netflix’s results also showed that the streaming giant is back on track. Just in April 2022, it had reported a loss of 200,000 subscribers. Turns out, a cheaper advertising tier — a product Netflix hoped would appeal to those who had shared passwords — helped the company add more subscribers. Of course, not as much as it did during the throes of the Covid-19 lockdowns but a step in the right direction.

    More lies ahead for investors who will focus on Federal Reserve Chair Jerome Powell’s speech at noon ET. “Powell is always tacking back to whatever helps feed the narrative that they need to stay vigilant, and for understandable reasons,” said Luke Tilley, chief economist at Wilmington Trust.

    He is expected to assure markets the central bank is committed to its fight against inflation, but maybe this time with a little less force.

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  • CNBC Daily Open: Earnings season in full swing, Treasury yields at multi-year highs

    CNBC Daily Open: Earnings season in full swing, Treasury yields at multi-year highs

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    People walk near the New York Stock Exchange on July 18, 2023 in New York City

    View Press | Corbis News | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Markets slide
    U.S. stock markets slid on Wednesday as earnings season picked up steam and Treasury yields touched multi-year highs — the 10-year U.S. Treasury yield broke above 4.9% for the first time since 2007. The pan-European Stoxx 600 index closed 1% lower, with much of the attention on UK inflation data. U.K. inflation came in at 6.7% in September, slightly ahead of expectations and unchanged from the previous month.

    Tesla misses on earnings  
    Tesla reported third-quarter results that missed expectations on both earnings and revenue for the first time since the second quarter of 2019. The electric vehicle maker reported adjusted earnings of 66 cents per share vs. 73 cents per share expected and revenue of $23.35 billion per share vs. $24.1 billion expected. Tesla’s total operating margin also came in significantly lower at 7.6%, from the year-ago quarter’s 17.2%.

    Netflix profit tops expectations
    Netflix’s password-sharing crackdown and its new ad-supported tier boosted subscriber growth in the third quarter. The streaming giant added 8.76 million global subscribers during the quarter, higher than expectations of 5.49 million and the most it’s added since the second quarter of 2020 – when Covid restrictions kept people at home. Its earnings came in at $3.73 per share, better than the $3.49 per share expected.

    iPhone 15 sales off to a slow start in China  
    A month after Apple’s iPhone 15 came out, analysts and investors are starting to see signs of slow demand in China versus last year. Sales of iPhone 15 models are down 4.5% for the first 17 days in Apple’s third largest market compared to last year, according to an estimate from Counterpoint Research.  

    [PRO] Morgan Stanley’s top China video game stock  
    Morgan Stanley is calling this China stock a global video game “powerhouse” with a 40% upside. In the past decade, the company has increased its game revenue tenfold and tripled its market share in China from 8% to 9% in 2013 to 2014, to 24% by the end of 2023.

    The bottom line

    U.S. stock markets closed out Wednesday with sweeping declines. The yield on the benchmark 10-year Treasury hit 4.908%, rising above 4.9% for the first time since 2007 as investors scoured economic data for clues on the Federal Reserve’s interest rate trajectory.

    Housing starts rose in September, but at a slower-than-expected rate, according to data released Wednesday. Building permits fell last month, but less than economists anticipated. This arrives a day after consumers showed surprising strength in September, boosting retail sales well above expectations.

    Traders are still expecting an over 85% chance that the Fed will hold its rates steady when it announces its next monetary decision on Nov. 1, but the retail sales figure has given way to some bets of another hike in December.

    Markets seemingly have no dearth of catalysts this week as earnings season gathers steam. Tesla missed third-quarter expectations on both profit and revenue. Netflix’s password-sharing crackdown efforts along with interest in its new ad-supported tier set its quarter up for success.  

    Netflix’s results also showed that the streaming giant is back on track. Just in April 2022, it had reported a loss of 200,000 subscribers. Turns out, a cheaper advertising tier — a product Netflix hoped would appeal to those who had shared passwords — helped the company add more subscribers. Of course, not as much as it did during the throes of the Covid-19 lockdowns but a step in the right direction.

    More lies ahead for investors who will focus on Federal Reserve Chair Jerome Powell’s speech at noon ET. “Powell is always tacking back to whatever helps feed the narrative that they need to stay vigilant, and for understandable reasons,” said Luke Tilley, chief economist at Wilmington Trust.

    He is expected to assure markets the central bank is committed to its fight against inflation, but maybe this time with a little less force.

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