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Tag: SOX

  • While the 2024 White Sox Burned, Campfire Shakes Were a Soothing Distraction

    While the 2024 White Sox Burned, Campfire Shakes Were a Soothing Distraction

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    No one would blame fans of the Chicago White Sox for losing their appetites after enduring an abominable 2024 campaign, one that included a 21-game losing streak. Statistically, the 2024 Sox are one of the worst teams in the history of Major League Baseball, tying the modern-day record of 120 losses set in 1962 by the New York Mets. Currently, owner Jerry Reinsdorf’s team is riding a three-game winning streak and will wind down the season with three opportunities this weekend in Detroit to break the all-time loss record.

    Recent hot streak aside, as each loss ate away at the team’s respectability, numbed fans donned paper bags over their heads this week at Guaranteed Rate Field, rooting against the home team and hoping to witness the historic record-breaking loss while chanting “sell the team.”

    An unlikely ballpark symbol would emerge to represent this lost season. Introduced in the spring, the $15 Campfire Milkshake features burned marshmallows swimming in a sea of whipped cream. A puddle of chocolate drips down and covers the rim of the 16-ounce plastic souvenir cup which is filled with Prairie Farms Belgian Chocolate ice cream mixed with graham crackers. A piece of a chocolate bar marks the final touch. A sip may cause a fan’s A1C to surge as high as the Sox’s bullpen ERA — good luck finishing it. On the last home game of this sordid season, 205 shakes were available at the Vizzy View Bar. It’s a well-oiled machine with fans ordering their shakes at the bar where a cashier hands them a receipt which they use to pick up their shake at a station by the bar’s entrance, near Section 157. The chilled glasses are laid out with their chocolate rims as fans watch workers make the shakes. During the Thursday, September 26 home finale, a game where a loss would break the record, the shakes were sold out within 40 minutes. Announced attendance was 15,678 — Sox Park’s capacity is 40,615.

    A fan at the September 10 game against Cleveland holds a Campfire Milkshake as the Sox picked up their 113th loss of the season.
    Photo by Matt Dirksen/Getty Images

    Inside the Vizzy View Bar, an employee candidly tells fans the team made about $500,000 in sales on the shakes this season. Though the shakes are also available on the club level, that math might be off on this unverified figure. A half a million dollars would mean an average of 412 shakes were sold per game over 81 home games. Regardless, the shake was a success and management may bring the Campfire Shake back in 2025.

    For a team with few stars, this rookie is perhaps the only thing worth remembering during a parade of failures that made national headlines last week when The Athletic published an embarrassing inside look at the team’s woes. That includes abysmal sequences like one from early September when two White Sox players collided during a game in Baltimore. The result allowed three runs to score with the Orioles’ TV announcer declaring “the White Sox have gone full White Sox.” Even horror writer Stephen King has acknowledged the White Sox season is a nightmare.

    Fans, former players, and media have relied on gallows humor to survive the season, turning to the shake as a distraction from talking about the actual baseball. MLB posted a photo of the shake in March on X, and since then it’s garnered 14,500 likes. In the spring, no one predicted the White Sox to be historically bad, but marketing had a feeling they weren’t contenders. By April, the team’s record plunged and the marketing team honed in on the milkshake as a way to take the attention away from the team’s performance. Brooks Boyer, the team’s chief revenue and marketing officer, was apparently “giddy” that the Athletic was writing about the shake. In May, SB Nation blog South Side Sox wrote that the team’s “hottest offseason acquisition might be the Campfire Milkshake.”

    The team would arrange for Olympic legend Simone Biles and her husband, Chicago Bear Jonathan Owens, to pose for a photo with the shake. Two fans wore customized jerseys to Sox Park — one with the word “Campfire” and the No. 20, and the other with “Milkshake” and the No. 24. Concession stand workers routinely say food and drink sales soar when the home team plays well. With few fans in the stands watching miserable baseball, tasting a shake provides a legitimate reason to attend a game.

    “It makes all the sense in the world that the team would want to hop fans up on sugar but not fill us up on any nutrition,” South Side Sox editor Brett Ballantini writes to Eater. “[It] certainly dovetails with a smoke-and-mirrors front office, hiring processes, on-field performance…”

    Milkshakes became a White Sox thing in 2022 when Levy executive chef Ryan Craig launched the horchata-churro flavor. The next season the team introduced the magonada, complete with a tamarind straw. Fans also had the option to spike the shake with booze. Those entries paved the way so the Campfire could burn.

    Speaking during a media event in late August at Soldier Field, the inventor of the Campfire Milkshake, told Eater that he had no plans to create a shake for the Chicago Bears. Craig wanted to ensure the White Sox had something exclusive that would put a smile on their faces. He, of course, diplomatically didn’t mention the obvious: Why would the Bears want their own shake and want to be associated with baseball’s version of the Titanic?

    For $15 — which rivals the cost of a ballpark beer — is it shake good? Former White Sox catcher A.J. Pierzynski isn’t impressed: “It comes in a cool glass, but I mean, it’s a milkshake,” the 2005 World Series champ said on the September 23 episode of the Foul Territory podcast. “It’s a milkshake with some chocolate and marshmallow on top. I mean it’s OK. It’s slightly above average.”

    Pierzynski’s assessment is accurate. The torched or burned marshmallows aren’t even melted, it’s more for the look than the taste. But carrying the shake around is like a South Side status symbol, the equivalent of parading a Prada bag around the main concourse. That comes with concerns. On an unseasonably warm September afternoon, the sun melted the chocolate rim. Unless fans want warm chocolate on their fingers, these shakes are meant to be quickly consumed on the air-conditioned club level.

    The 2025 season doesn’t look promising, coming on the 20th anniversary of the 2005 World Series win. Management is already saying that bad attendance will prevent them from improving the lineup through free agency, typically the quickest way to better a team. There’s already been talk about trading any player of value. Could management trade the recipe for the Campfire Shake to another team? If the shake returns, how much will the Sox increase prices? Management’s 2025 focus could be on funding a new ballpark. In February 2024, the team floated the idea of asking for $1 billion in public funding for a new stadium development. It would take more than 66.6 million shakes to reach that amount. Perhaps the Sox could hold a giant bake sale.

    As of now, the shake looks like it may go down in White Sox infamy, with shorts, the problematic Disco Demolition Night, and Nolan Ryan’s noogies. It’s a symbol of the worst season in baseball history. And that’s not a very sweet memory at all.

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    Ashok Selvam

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  • Intel’s stock flirts with highest close in 15 months

    Intel’s stock flirts with highest close in 15 months

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    Intel Corp. shares
    INTC,
    +2.80%

    were up 2.8% in afternoon trading Friday and flirting with their highest close in more than 15 months, according to Dow Jones Market Data. The stock traded as high as $38.99 earlier in the session and recently changed hands at $38.86. A close above $38.86 and below $39.71 would make for the stock’s highest finish since July 28, 2022. Friday’s rally comes on a day of strength for chip stocks, with the PHLX Semiconductor Index
    SOX,
    +4.04%

    up nearly 4%. Earlier Friday, Taiwan Semiconductor Manufacturing Co. Ltd.
    TSM,
    +6.35%

    posted a 34.8% sequential increase in revenue for the month of October in a positive signal for the sector.

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  • Broadcom stock slips after earnings as forecast fails to bring upside

    Broadcom stock slips after earnings as forecast fails to bring upside

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    Broadcom Inc. shares slipped 4.5% in the extended session Thursday after the chip and software company delivered a revenue forecast for the current quarter that failed to offer upside versus the consensus view.

    The company reported fiscal third-quarter net income of $3.30 billion, or $7.74 a share, compared with $3.07 billion, or $7.15 a share, in the year-ago period.

    After adjustments, Broadcom
    AVGO,
    +3.43%

    earned $10.54 a share, compared with $9.73 a share in the year-ago quarter. Analysts tracked by FactSet were expecting $10.43 a share.

    Revenue increased to $8.88 billion from $8.46 billion in the year-ago quarter, while analysts were modeling $8.85 billion.

    See also: Dell’s stock soars as company easily beats on earnings

    Chip sales rose 5% to $6.94 billion from the year-ago period, and infrastructure software sales also were up by 5%, to $1.94 billion. The FactSet consensus was for $6.97 billion in chip sales and $1.89 billion in software sales.

    The latest results “were driven by demand for next-generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers,” Chief Executive Hock Tan said in a statement.

    Broadcom generated $4.6 billion in free cash flow during its third quarter.

    The company forecast fiscal fourth-quarter revenue of about $9.27 billion, in line with the FactSet consensus.

    Read: Intel offers an upbeat update, and its stock is gaining

    Year to date, Broadcom is up 65% and the PHLX Semiconductor Index
    SOX,
    +0.74%

    is up 45%, while the S&P 500 index
    SPX
    is up 18% and the tech-heavy Nasdaq Composite
    COMP
    is up 35%.

    See also: Nutanix’s stock soars 12% on revenue beat, strong sales guidance

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  • Nvidia’s stock closes marginally higher, but just short of a record

    Nvidia’s stock closes marginally higher, but just short of a record

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    Nvidia Corp.
    NVDA,
    +0.10%

    shares failed to close at a record high Thursday after the AI-chip maker’s stellar earnings report initially boosted shares past $500 for the first time. Shares rose 0.1% to close at $471.74, after trading as high as $502.66 intraday, but fell short of the record closing high of $474.94 set on July 18, according to FactSet data. The earnings report took chipmakers on a ride Thursday, falling from an initial show of strength following the report. Nvidia shares are up more than 222% on a year-to-date basis, compared with a 37% gain in the PHLX Semiconductor Index
    SOX,
    -3.35%
    ,
    a 14% rise in the S&P 500
    SPX,
    -1.35%

    and a 29% surge in the tech-heavy Nasdaq Composite
    COMP,
    -1.87%

    over the same span.

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  • Nvidia’s stock drops below key uptrend tracker, snapping longest streak above it in 6 years

    Nvidia’s stock drops below key uptrend tracker, snapping longest streak above it in 6 years

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    Nvidia Corp.’s stock chart now shows that the stunning uptrend investors in the semiconductor maker have enjoyed this year amid all the artificial-intelligence hype may have ended.

    But as history suggests, after a long uptrend, rather than a new downtrend, investors may have to endure some whipsaw action within a relatively static trading range over the next several months before the uptrend resumes.

    The stock
    NVDA,
    -0.72%

    slumped 4.7% on Wednesday to close at $425.54, which was 10.4% below the July 18 record close of $474.94, following a downbeat earnings report from Super Micro Computer Inc.
    SMCI,
    +3.47%
    ,
    which counts Nvidia as a key supplier.

    Many on Wall Street believe a correction is defined by a decline of at least 10% to up to 20% from a significant recent peak. A drop of 20% or more is thought of as a bear market.

    But perhaps more important for chart followers, the stock closed below the widely followed 50-day moving average for the first time since Jan. 6, 2023. The 50-DMA had extended to $429.03 on Wednesday.


    FactSet, MarketWatch

    On Thursday, the stock bounced 0.5% in morning trading but held below the 50-DMA, which extended to $429.68, according to FactSet. Despite the recent correction, the stock was still up 192.6% year to date, while the PHLX Semiconductor Index
    SOX
    has climbed 43.7% and the S&P 500
    SPX
    has advanced 17.2%.

    Read: Nvidia is ‘domination’ and could unlock $300 billion in AI revenue by 2027, analyst says.

    The 50-DMA is used by many chart watchers as a short-term trend tracker. If the stock is above that line, it is viewed as being in an uptrend. The most time spent above that line, the stronger the uptrend.

    Until Wednesday, Nvidia’s stock closed above the 50-DMA for 146 consecutive trading sessions, according to FactSet data, which is the second-longest stretch since it went public in January 1999.

    The record stretch above the 50-DMA was 255 sessions, a streak that ended on Feb. 23, 2017, while the second-longest stretch of 143 sessions ended on Oct. 28, 2020.

    After the stock snapped the super-50-DMA streak in 2020, it waffled around the line and was little changed for the next several months before resuming the uptrend with a big spike.

    As an uptrend takes a several-month pause after the 50-DMA breaks, the 200-DMA becomes strong support.


    FactSet, MarketWatch

    As the chart above shows, after the 50-DMA broke, investors set their sights on the 200-DMA, which many view as a dividing line between longer-term uptrends and downtrends. In this case, despite a one-day dip below the 200-DMA in mid-March 2021, the line acted as strong support.

    And after the record super-50-DMA streak, the stock seesawed around the line, while having a slightly negative bias for the next few months, before the uptrend resumed in force.

    After the 50-DMA break, the 200-DMA was never threatened.


    FactSet, MarketWatch

    This time, the stock never really threatened the 200-DMA.

    In the current technical situation, one of the downside levels to keep an eye on is the bear-market threshold of 20% below the July closing high, which comes in at $379.95. Another level to watch is the 200-DMA, which currently extends to $269.63 and has been rising by $1.65 a day over the past 10 days.

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  • Intel Stock Drops Despite Plan for Cost Savings. This Is Why.

    Intel Stock Drops Despite Plan for Cost Savings. This Is Why.

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    Chip maker


    Intel


    offered positive news on its foundry business Wednesday as it continues to build out new facilities to expand the custom chip-making service. Investors sold the stock anyway.

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  • Qualcomm stock sinks as weak smartphone demand pushes inventory drawdown out to ‘at least the next couple quarters’

    Qualcomm stock sinks as weak smartphone demand pushes inventory drawdown out to ‘at least the next couple quarters’

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    Qualcomm Inc. shares fell in the extended session Wednesday after the chip maker said inventory issues will remain past June because of a downturn in handset demand and the company’s outlook disappointed.

    After declining 2.8% to close the regular session $112.83, Qualcomm
    QCOM,
    -2.82%

    shares started sliding after the release of the company’s results at Wednesday’s close, and sank to a deficit of more than 7% after hours by the time the executives’ call with analysts ended. Shares ended the extended trading session down 6.6%.

    On the conference call, Qualcomm Chief Executive Cristiano Amon told analysts that the “evolving macroeconomic backdrop has resulted in further demand deterioration, particularly in handsets, at a magnitude greater than we previously forecasted.”

    Earlier, Qualcomm had forecast adjusted earnings of $1.70 to $1.90 a share on revenue of $8.1 billion to $8.9 billion for the fiscal third quarter. Analysts had estimated earnings of $2.17 a share on revenue of $9.13 billion for the third quarter.

    Qualcomm shares sank after hours Wednesday.


    FactSet

    Last quarter, Qualcomm said inventory issues would persist into June, and Wall Street pretty much accepted it. Qualcomm’s inventory problems go back to last year, when the company’s share price fell in November to lows not seen in more than two years after executives said there was up to 10 weeks of inventory in the channel, and forecast a $2 billion shortfall coming off record sales.

    A drop in handset demand, however, has extended the time frame of inventory drawdowns considerably past the previously forecast end of June, the company said. As its largest business segment, Qualcomm handset sales fell 17% to $6.11 billion from a year ago.

    “As a result, we’re operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters,” Amon told analysts. “Additionally, while expectations are for a rebound in China demand in the second half of the calendar year, we have not seen evidence of meaningful recovery and are not incorporating improvements into our planning assumptions.”

    The company reported fiscal second-quarter net income of $1.7 billion, or $1.52 a share, compared with $2.93 billion, or $2.57 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $2.15 a share, compared with $3.21 a share in the year-ago period. Total revenue for the quarter fell to $9.28 billion from $11.16 billion in the year-ago period.

    Analysts surveyed by FactSet had forecast $2.15 a share on revenue of $9.09 billion, based on Qualcomm’s forecast of $2.05 to $2.25 a share on revenue of $8.7 billion to $9.5 billion.

    In Qualcomm’s other end-market segments, auto sales rose 20% to $447 million and Internet-of-Things sales fell 24% to $1.39 billion for the second quarter, the company said.

    Late Monday, auto chip supplier NXP Semiconductor NV
    NXPI,
    -2.30%

    topped Wall Street expectations, and shares rallied Tuesday, while last week, another big supplier to the auto market, Texas Instruments Inc. 
    TXN,
    -0.36%

    said that sales to the auto industry remained strong.

    Qualcomm shares already lag the broader chip sector and market, and were up only 3% year to date at Wednesday’s close. In comparison, the PHLX Semiconductor Index
    SOX,
    -1.32%

    has surged 17%, the S&P 500 index 
    SPX,
    -0.70%

    has gained 7%, and the tech-heavy Nasdaq Composite Index 
    COMP,
    -0.46%

    has grown 15%.

    In other chip earnings, Advanced Micro Devices Inc.
    AMD,
    -9.22%

    shares dropped 9.2% Wednesday after the chip maker’s optimism for the second half of the year late Tuesday did not rub off on analysts.

    Read: ‘AI for us is broader than cloud,’ AMD CEO tells analysts, but chip maker still needs PC recovery to improve margins

    And last week, Intel Corp.
    INTC,
    +2.96%

    reported its largest quarterly loss ever, but saw its shares rise because PC and data-center sales, while on the decline, had come in better than expected. Intel also lowered expectations on its forecast.

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  • AMD CEO promises to keep taking data-center from Intel even as cloud demand pauses following ‘strong’ 2022

    AMD CEO promises to keep taking data-center from Intel even as cloud demand pauses following ‘strong’ 2022

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    Advanced Micro Devices Inc. shares rose in the extended session Tuesday after the chip maker’s data-center sales gained and executives forecast sales of more than $5 billion to start 2023, even as cloud-customer demand begins the year light.

    AMD shares AMD rose 3% after hours, following a 3.7% gain in the regular session to close at $75.15.

    AMD…

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  • Intel stock drops nearly 10% after earnings miss, execs predict quarterly loss as data-center market shrinks

    Intel stock drops nearly 10% after earnings miss, execs predict quarterly loss as data-center market shrinks

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    Intel Corp. shares dropped more than 9% in the extended session Thursday after the chip maker reported a big miss for the fourth quarter, forecast a loss for the first quarter, said the data-center market was contracting and that inventory digestion will gnaw at margins.

    Intel
    INTC,
    +1.31%

    executives forecast an adjusted loss of 15 cents a share on revenue of about $10.5 billion to $11.5 billion and adjusted gross margins of about 39% for the current quarter. Analysts surveyed by FactSet had estimated adjusted first-quarter earnings of 25 cents a share on revenue of $13.93 billion.

    Chief Executive Pat Gelsinger told analysts on a conference call he would not provide a 2023 forecast. Gelsinger restricted the outlook to the current quarter, citing macro uncertainties, a digestion of PC inventory that was “difficult” to forecast and a contracting data-center market. In the fourth quarter, AI group sales dropped 33% to $4.3 billion, while the Street expected revenue of $4.08 billion.

    “We expect Q1 server consumption [total addressable market] to decline both sequentially and year-over-year at an accelerated rate, with first-half 2023 server consumption TAM down year-on-year before returning to growth in the second half,” Gelsinger said.

    Chief Financial Officer David Zinsner told analysts that the company will institute an accounting change in the first quarter, where Intel will extend the useful life of their machinery to eight years from a current five years. Gelsinger said that Intel was going to “squeeze” its effective capacity.

    While Zinsner would not give a full-year outlook, he did say that continued inventory digestion should be weighted to the first half of the year.

    Pressed on how Intel could get back to the 51% to 53% margins range he promised a year ago, Zinsner said a “significant inventory burn” on PC inventory would hit gross margins by 400 basis points in the first quarter. Gross margins for the fourth quarter dropped to 43.8% from 55.8% a year ago, and from 45.9% in the third quarter.

    Intel reported a fourth-quarter loss of $664 million, or 16 cents a share, versus net income of $4.62 billion, or $1.13 a share, in the year-ago period. After adjusting for restructuring charges and other items, Intel reported earnings of 10 cents a share, compared with $1.13 a share from a year ago.

    Revenue declined to $14.04 billion from $20.52 billion in the year-ago quarter, for a 10th straight quarter of year-over-year declines.

    Analysts surveyed by FactSet estimated earnings of 21 cents a share on revenue of $14.49 billion, based on Intel’s forecast of 20 cents a share on about $14 billion to $15 billion.

    Intel shares fell 9% in after-hours trading, after closing the regular session up 1.3% at $30.09. Other chip stocks also declined, including top rival Advanced Micro Devices Inc.
    AMD,
    +0.33%
    ,
    which saw shares drop more than 3% in after-hours trading, and Nvidia Corp.
    NVDA,
    +2.48%
    ,
    which declined 2%.

    Breaking down divisions: Client-computing sales fell 36% to $6.6 billion from a year ago; “network and edge” sales slipped 1% to $2.1 billion; and foundry services revenue rose 30% to $319 million.

    Analysts surveyed by FactSet expected revenue from client computing to come in at $7.36 billion; “network and edge” revenue of $2.23 billion; and foundry services revenue of $199.1 million.

    Over the past 12 months, Intel stock has fallen 43%. Over the same period, the Dow Jones Industrial Average 
    DJIA,
    +0.61%

     — which counts Intel as a component — has slipped 1%, the PHLX Semiconductor Index 
    SOX,
    +1.63%

     has dropped 13%, the S&P 500 index 
    SPX,
    +1.10%

     has declined 7%, and the tech-heavy Nasdaq Composite Index 
    COMP,
    +6.59%

     has dropped 15%.

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  • Intel stock drops after  missing on earnings, predicting quarterly loss to start the new year

    Intel stock drops after missing on earnings, predicting quarterly loss to start the new year

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    Intel Corp. shares dropped in the extended session Thursday after the chip maker reported a big miss for the fourth quarter and forecast a loss for the first quarter.

    Intel
    INTC,
    +1.31%

    shares fell 6% in after-hours trading, after closing the regular session up 1.3% at $30.09.

    For the first quarter, Intel forecast an adjusted loss of 15 cents a share on revenue of about $10.5 billion to $11.5 billion and adjusted gross margins of about 39%. Analysts surveyed by FactSet had estimated adjusted first-quarter earnings of 25 cents a share on revenue of $13.93 billion.

    “In 2023, we will continue to navigate the short-term challenges while striving to meet our long-term commitments, including delivering leadership products anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our incredible team,” said Pat Gelsinger, Intel’s chief executive, in a statement.

    Intel reported a fourth-quarter loss of $664 million, or 16 cents a share, versus net income of $4.62 billion, or $1.13 a share, in the year-ago period. After adjusting for restructuring charges and other items, Intel reported earnings of 10 cents a share, compared with $1.09 a share from a year ago.

    Revenue declined to $14.04 billion from $20.52 billion in the year-ago quarter, for a 10th straight quarter of year-over-year declines. Gross margins dropped to 43.8% from 55.8% a year ago, and 45.9% in the third quarter.

    Analysts surveyed by FactSet estimated earnings of 21 cents a share on revenue of $14.49 billion, based on Intel’s forecast of 20 cents a share on about $14 billion to $15 billion.

    Over the past 12 months, Intel stock has fallen 43%. Over the same period, the Dow Jones Industrial Average 
    DJIA,
    +0.61%

     — which counts Intel as a component — has slipped 1%, the PHLX Semiconductor Index 
    SOX,
    +1.63%

     has dropped 13%, the S&P 500 index 
    SPX,
    +1.10%

     has declined 7%, and the tech-heavy Nasdaq Composite Index 
    COMP,
    +1.76%

     has dropped 15%.

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  • Qualcomm stock drops more than 7% after poor outlook, months-long chip glut

    Qualcomm stock drops more than 7% after poor outlook, months-long chip glut

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    Qualcomm Inc. shares fell in the extended session Wednesday following the chip maker’s poor outlook, and estimates of about two months or more of inventory it needs to clear in its core business.

    Qualcomm
    QCOM,
    -4.12%

    shares dropped 7.6% after hours, following a 4.1% decline to close at $112.50 in the regular session. In late July, the San Diego-based chip maker cut its forecast because of weakness in the smartphone market that had yet to creep into the premium handset market.

    On the call with analysts, Chief Executive Cristiano Amon said the accelerated weak demand was related to “macro economic headwinds and the prolonged COVID in China,” and “the rapid deterioration in demand and easing of supply constraints” across the chip industry.” would take out about 80 cents a share in first-quarter earnings.

    “It’s the major factor,” Amon told analysts on the call. “It’s mostly a handset consumer story.” Earnings for the first quarter, as a results, would take a hit of 80 cents a share, the company said.

    Another big factor is that companies are just spending less. Amon said “companies across the board had much higher inventory policies, supply chain got resolved, and you got that macro economic uncertainty, you have a drawdown trying to bring inventory to a different level than it was during the situation of demand constraint.”

    Qualcomm forecast first-quarter earnings of $3 to $3.30 a share on revenue of $9.2 billion to $10 billion, while the Street estimated $3.43 a share on revenue of $12.02 billion.

    Read: Meta spending slams Facebook stock, but here are the chip stocks that are benefiting

    Chief Financial Officer Akash Palkhiwala told analysts there is about eight to 10 weeks of elevated in the channel. In the meantime, Qualcomm was instituting a hiring freeze, and looking into cost-saving measures, execs told analysts.

    While handset-chip sales surged 40% to a record $6.57 billion from a year ago, topping the Street’s expectation of $6.55 billion, the company’s forecast indicates a big glut in inventory in Qualcomm’s CDMA Technologies unit, the one that includes handset and RF chips as well as chips for autos and Internet of Things.

    Qualcomm expects QCT sales of $7.7 billion to $8.3 billion, and sales from Qualcomm’s technology licensing, or QTL, segment of $1.45 billion to $1.65 billion. Analysts had forecast forecast $10.42 billion in QCT sales and QTL revenue of $1.71 billion.

    Qualcomm reported fourth-quarter QCT revenue of $9.9 billion, a 28% gain from a year ago. Analysts had estimated $9.84 billion, based on the company’s forecast of $9.5 billion to $10.1 billion.

    Fourth-quarter auto-chip sales zoomed up 58% to a record $427 million, and Internet of Things, or IoT, sales rose 24% to a record $1.92 billion. The Street was expecting auto sales of $362.4 million, and IoT sales of $1.82 billion.

    Revenue from the QTL segment fell 8% to $1.44 billion compared with Wall Street estimates of $1.58 billion, based on a company forecast of $1.45 billion to $1.65 billion.

    Read about: Intel’s quarterly results, AMD’s quarterly results

    The company reported fiscal fourth-quarter net income of $2.87 billion, or $2.54 a share, compared with $2.8 billion, or $2.45 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $3.13 a share, compared with $2.55 a share in the year-ago period. Total revenue for the third quarter rose to $11.4 billion from $9.34 billion in the year-ago period.

    Analysts had estimated earnings of $3.13 a share on revenue of $11.32 billion, based on Qualcomm’s forecast of $3 to $3.30 a share on revenue of $11 billion to $11.8 billion.

    Year to date, Qualcomm shares are down 38%, compared with a 41% decline for the PHLX Semiconductor Index 
    SOX,
    -3.09%
    ,
     a 21% decline by the S&P 500 index 
    SPX,
    -2.50%

     and a 33% drop by the tech-heavy Nasdaq Composite Index 
    COMP,
    -3.36%
    .

    Shares of Advanced Micro Devices Inc.
    AMD,
    -1.73%

    outperformed the broader market Wednesday after the chip maker said it would clear excess inventory by the end of the year, and forecast that data-center and embedded product sales would continue to rise.

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  • Qualcomm stock drops more than 7% after poor outlook, months-long chip glut

    Qualcomm stock drops more than 7% after poor outlook, months-long chip glut

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    Qualcomm Inc. shares fell in the extended session Wednesday following the chip maker’s poor outlook, and estimates of about two months or more of inventory it needs to clear in its core business.

    Qualcomm
    QCOM,
    -4.12%

    shares dropped 7.6% after hours, following a 4.1% decline to close at $112.50 in the regular session. In late July, the San Diego-based chip maker cut its forecast because of weakness in the smartphone market that had yet to creep into the premium handset market.

    On the call with analysts, Chief Executive Cristiano Amon said the accelerated weak demand was related to “macro economic headwinds and the prolonged COVID in China,” and “the rapid deterioration in demand and easing of supply constraints” across the chip industry.” would take out about 80 cents a share in first-quarter earnings.

    “It’s the major factor,” Amon told analysts on the call. “It’s mostly a handset consumer story.” Earnings for the first quarter, as a results, would take a hit of 80 cents a share, the company said.

    Another big factor is that companies are just spending less. Amon said “companies across the board had much higher inventory policies, supply chain got resolved, and you got that macro economic uncertainty, you have a drawdown trying to bring inventory to a different level than it was during the situation of demand constraint.”

    Qualcomm forecast first-quarter earnings of $3 to $3.30 a share on revenue of $9.2 billion to $10 billion, while the Street estimated $3.43 a share on revenue of $12.02 billion.

    Read: Meta spending slams Facebook stock, but here are the chip stocks that are benefiting

    Chief Financial Officer Akash Palkhiwala told analysts there is about eight to 10 weeks of elevated in the channel. In the meantime, Qualcomm was instituting a hiring freeze, and looking into cost-saving measures, execs told analysts.

    While handset-chip sales surged 40% to a record $6.57 billion from a year ago, topping the Street’s expectation of $6.55 billion, the company’s forecast indicates a big glut in inventory in Qualcomm’s CDMA Technologies unit, the one that includes handset and RF chips as well as chips for autos and Internet of Things.

    Qualcomm expects QCT sales of $7.7 billion to $8.3 billion, and sales from Qualcomm’s technology licensing, or QTL, segment of $1.45 billion to $1.65 billion. Analysts had forecast forecast $10.42 billion in QCT sales and QTL revenue of $1.71 billion.

    Qualcomm reported fourth-quarter QCT revenue of $9.9 billion, a 28% gain from a year ago. Analysts had estimated $9.84 billion, based on the company’s forecast of $9.5 billion to $10.1 billion.

    Fourth-quarter auto-chip sales zoomed up 58% to a record $427 million, and Internet of Things, or IoT, sales rose 24% to a record $1.92 billion. The Street was expecting auto sales of $362.4 million, and IoT sales of $1.82 billion.

    Revenue from the QTL segment fell 8% to $1.44 billion compared with Wall Street estimates of $1.58 billion, based on a company forecast of $1.45 billion to $1.65 billion.

    Read about: Intel’s quarterly results, AMD’s quarterly results

    The company reported fiscal fourth-quarter net income of $2.87 billion, or $2.54 a share, compared with $2.8 billion, or $2.45 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $3.13 a share, compared with $2.55 a share in the year-ago period. Total revenue for the third quarter rose to $11.4 billion from $9.34 billion in the year-ago period.

    Analysts had estimated earnings of $3.13 a share on revenue of $11.32 billion, based on Qualcomm’s forecast of $3 to $3.30 a share on revenue of $11 billion to $11.8 billion.

    Year to date, Qualcomm shares are down 38%, compared with a 41% decline for the PHLX Semiconductor Index 
    SOX,
    -3.09%
    ,
     a 21% decline by the S&P 500 index 
    SPX,
    -2.50%

     and a 33% drop by the tech-heavy Nasdaq Composite Index 
    COMP,
    -3.36%
    .

    Shares of Advanced Micro Devices Inc.
    AMD,
    -1.73%

    outperformed the broader market Wednesday after the chip maker said it would clear excess inventory by the end of the year, and forecast that data-center and embedded product sales would continue to rise.

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  • Dow books 630-point drop after strong jobs data rattles investors, but stocks cement weekly gains

    Dow books 630-point drop after strong jobs data rattles investors, but stocks cement weekly gains

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    U.S. stocks finished sharply lower Friday, but still booked their best weekly gains in a month, after September jobs data showed an unexpected fall in the unemployment rate that’s anticipated to reinforce the Federal Reserve’s resolve to keep tightening monetary policy.

    Investors also weighed a profit warning at a leading microchip maker ahead of next week’s increase in quarterly earnings results.

    What happened
    • The Dow Jones Industrial Average
      DJIA,
      -2.11%

      fell 630.15 points, or 2.1%, ending at 29,296.79, but off the session low of 29,142.66.

    • The S&P 500
      SPX,
      -2.80%

      dropped 104.86 points, or 2.8%, closing at 3,639.66.

    • The Nasdaq Composite
      COMP,
      -3.80%

      shed 420.91 points, or 3.8%, to finish at 10,652.40.

    Stocks posted back-to-back losses, trimming weekly gains, but recorded their best weekly gains since Sept. 9, according to Dow Jones Market Data.

    Read: Will the stock market be open on Columbus Day?

    What drove markets

    Stocks recorded sharp losses Friday after the Labor Department said the U.S. economy added 263,000 jobs in September, while the unemployment rate declined to 3.5% from an August reading of 3.7%. Average hourly earnings rose 0.3%.

    Still, a powerful rally earlier in the week boosted all three major stock indexes to weekly gains, a departure from three straight weekly losses, according to Dow Jones Market Data.

    “It’s manic. We are all on edge,” said Kent Engelke, chief economic strategist at Capitol Securities Management, of the sharp market swings.

    “Any piece of good news is a cause for an explosive rally,” Engelke said by phone. On the flip side, he pegged technology-based trading “in an illiquid and emotional market” as exacerbating Friday’s selloff.

    “It’s a reflection that people have re-entered the mind-set that the Fed is going to be raising rates at a rapid clip, probably for longer than what they might have suspected at the start of the week,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth Management, by phone.

    Pavlik expects the Fed to keep tightening financial conditions to try to head off inflation. “But once we turn the corner, and the economy slows down, the Fed probably will be more aggressive in cutting rates on the way down.”

    In addition, the Fed has been “draining liquidity from the system at a remarkable pace,” wrote Rick Rieder, BlackRock’s chief investment officer of global fixed income, in a Friday client note, while pointing to an astounding $1.3 trillion decline in the central bank’s balance sheet since the December 2021 peak.

    Pavlik at Dakota Wealth said he anticipates the Fed will start slowing interest rate hikes by mid-next year, which likely means continued pressure for the stock market, particularly with a backdrop of big oil-price
    CL00,
    +5.37%

    gains this week after global crude producers voted to cut monthly production and with the U.S. dollar’s
    DXY,
    +0.44%

    surge this year against a basket of rival currencies.

    U.S. crude oil prices climbed for a fifth day in a row on Friday to settle at $92.64 a barrel, while booking at 16.5% weekly gain.

    New York Fed President John Williams said Friday that benchmark interest rates likely need to hit 4.5% over time. The Fed’s policy rate now sits in a 3%-3.25% range, up from a zero-0.25% range a year ago.

    The benchmark 10-year Treasury rate
    TMUBMUSD10Y,
    3.889%

    climbed to 3.883% Friday, as the key metric used to gauge the affordability of credit for businesses, household and the economy posted 10 straight weeks of gains, according to Dow Jones Market Data.

    Read: Bond markets facing historic losses grow anxious of Fed that ‘isn’t blinking yet’

    Investors continued to hope for relief on the inflation front and will be monitoring next week’s release of the September consumer-price index, as well as corporate earnings season as it picks up.

    Companies in focus
    • Twitter Inc.
      TWTR,
      -0.43%

      shares fell 0.4% Friday after a judge delayed a looming trial between the company and Elon Musk to allow the Tesla Inc.
      TSLA,
      -6.32%

      CEO more time to close his $44 billion acquisition of the social media platform.

    • Besides the jobs report, investors weighed a profit warning from microchip maker Advanced Micro Devices Inc. AMD, which said the PC market weakened significantly during the quarter. AMD shares fell 13.9%, and rivals including Nvidia Corp. NVDA and Intel Corp. INTC also closed lower.

    • U.S. cannabis stocks were choppy Friday, with the AdvisorShares Pure US Cannabis ETF
      MSOS,
      -2.80%

      ending lower, following steep gains earlier in the week after President Joe Biden said the U.S. would consider de-scheduling cannabis from its current position as a Schedule 1 narcotic under federal law.

    —Steven Goldstein contributed reporting to this article

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