NEWS
Spooky Season Strikes Stocks

It remains debatable whether Halloween spirits or lackluster earnings are causing the volatility. Regardless, stocks sold off sharply as investors anticipate volatility around tomorrow’s nonfarm payroll data and next week’s election and Fed decision. 👀

Today's issue covers Apple and Amazon’s earnings results, soaring auto insurance stocks, and the biggest earnings pops and drops. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with utilities (+1.06%) leading and technology (-3.14%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $YCBD, $LMND, $APTV, $LICY, $MO 📉 $GPRE, $MPWR, $FND, $CPS, $CFLT*

*If you’re a business and want to access this data via our API, email us.

EARNINGS
Apple & Amazon Add To The Earnings Mix 😵‍💫 

With Microsoft and Meta failing to impress earnings, the next group of mega-cap tech stocks looked to take the baton. Let’s see how they did. 👇️ 

Apple’s fourth-quarter results benefitted from strength in iPhone revenue, as every other category missed analyst estimates. Mac, iPad, other products, and services revenue missed, and gross margins were 0.2% better than anticipated.

This 6% iPhone revenue growth gave analysts the first look at how the iPhone 16 is fairing in the market after its September 20th release. Initial feedback has been positive, but some are unconvinced that the phone went far enough to drive the next major upgrade cycle. 😴 

Analysts are still concerned about the company’s traction in China, a major market that has experienced weakness for many companies. That, combined with the mixed revenue numbers, has the stock trading marginally down on the day.

Amazon fared a bit better, with earnings and revenue topping expectations. Amazon Web Services (AWS) revenue of $27.4 billion missed estimates by $0.1 billion, though it’s growing faster than the same period last year (+19% vs. +12%). Still, analysts are concerned that AWS is growing slower than its top challengers like Azure and Google Cloud, whose revenues rose 33% and 35%, respectively. 🔻 

Operating income grew 56% YoY as the company’s efficiency focus and cost-cutting helped boost the bottom line. From a technical perspective, traders and investors have been awaiting a catalyst for prices to break firmly above their 2021 highs near 200. Shares are up 5% after the bell, with many hoping this can spark more upside.

Surprisingly, one of the best earnings today came from Intel, which soared 10% after the bell. Revenues declined 6% YoY but still beat analyst expectations by $0.26 billion. Data Center and AI segment revenue stood out, growing 9% YoY, while its PC chip segment saw a 7% decline. 📊 

Cost-cutting initiatives and AI division strength helped boost its third-quarter revenue and earnings forecast above expectations. Additionally, the company working with advisors to defend itself against activist investors is making investors more positive. 😅

So far, these results don’t look like they will be enough to reverse the market’s selloff tomorrow. But only time will tell!

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