{"id":73525,"date":"2024-01-31T09:02:25","date_gmt":"2024-01-31T14:02:25","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=73525"},"modified":"2024-01-31T09:02:25","modified_gmt":"2024-01-31T14:02:25","slug":"coffee-with-greta-big-tech-earnings-the-fed","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2024\/01\/31\/coffee-with-greta-big-tech-earnings-the-fed\/","title":{"rendered":"Coffee With Greta: Big Tech Earnings + The Fed"},"content":{"rendered":"

DJIA Futures: <\/b>+48 (+0.1%)<\/span><\/p>\n

SPX Futures: <\/b>-24 (-0.5%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-171 (-1.0%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are mixed as traders digest big tech earnings, new jobs data, and look ahead to the Fed decision.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Private Job Growth Slows<\/span><\/h2>\n

Job growth in the U.S. private sector slowed more than expected in January.\u00a0<\/span><\/p>\n

Payroll firm ADP reported private employers added 107,000 jobs in the first month of the year vs 150,000 expected.\u00a0<\/span><\/p>\n

That was a decline from the downwardly revised 158,000 in December.\u00a0<\/span><\/p>\n

The information services sector was the only to report a drop, losing 9,000 workers.\u00a0<\/span><\/p>\n

Leisure and hospitality added 28,000 workers, trade, transportation and utilities added 23,000, and construction rose by 22,000.<\/span><\/p>\n

ADP\u2019s report showed a 5.2% annual increase in wages in January.\u00a0<\/span><\/p>\n

This data comes ahead of the official jobs report from the Labor Department on Friday which is expected to show the U.S. economy added 185,000 and the unemployment rate rising to 3.8%.<\/span><\/p>\n

Microsoft Slips After Earnings<\/span><\/h2>\n

Microsoft <\/b>(MSFT) shares are down 0.5% ahead of the open after beating fiscal Q2 expectations on the top and bottom line but issuing soft guidance.<\/span><\/p>\n

Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • EPS: $2.93 vs $2.78 expected<\/span><\/li>\n
  • Revenue: $62.02 billion vs $61.12 billion expected<\/span><\/li>\n<\/ul>\n

    Total revenue rose 17.6% year over year.\u00a0<\/span><\/p>\n

    Microsoft\u2019s Intelligent Cloud segment reported $25.88 billion in revenue, up 20% from a year ago and higher than $25.29 billion expected.\u00a0<\/span><\/p>\n

    Revenue from Azure and other cloud services jumped 30% year over year vs 27.5% growth expected.\u00a0<\/span><\/p>\n

    Microsoft forecast fiscal Q3 revenue between $60 billion and $61 billion, putting the middle of the range at $60.5 billion vs $60.93 billion expected.\u00a0<\/span><\/p>\n

    Alphabet Slides On Disappointing Ad Revenue<\/span><\/h2>\n

    Alphabet <\/b>(GOOGL) shares are falling 5.7% in premarket trade after reporting lower than expected Q4 ad revenue.\u00a0<\/span><\/p>\n

    Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • Adjusted EPS: $1.64 vs $1.59 expected<\/span><\/li>\n
    • Revenue: $86.31 billion vs $85.33 billion expected<\/span><\/li>\n
    • Google Cloud Revenue: $9.19 billion vs $8.94 billion expected<\/span><\/li>\n
    • Overall Ad Revenue: $65.52 billion vs $65.94 billion expected<\/span><\/li>\n
    • YouTube Ad Revenue: $9.2 billion vs $9.21 billion expected<\/span><\/li>\n<\/ul>\n

      Alphabet\u2019s total revenue jumped 13% year over year, the fastest quarter of growth since early 2022.\u00a0<\/span><\/p>\n

      Google Cloud saw growth of 26% during the quarter.\u00a0<\/span><\/p>\n

      AMD Drops On Weak Forecast<\/span><\/h2>\n

      Advanced Micro Devices <\/b>(AMD) shares are down 4.6% ahead of the open after reporting Q4 earnings that were in line with expectations and issuing soft guidance.\u00a0<\/span><\/p>\n

      Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

        \n
      • Adjusted EPS: $0.77, in line with estimates<\/span><\/li>\n
      • Revenue: $6.17 billion vs $6.12 billion expected<\/span><\/li>\n<\/ul>\n

        AMD forecast Q1 sales of $5.4 billion, plus or minus $300 million.\u00a0<\/span><\/p>\n

        That was short of analysts\u2019 expectations for $5.73 billion.\u00a0<\/span><\/p>\n

        AMD\u2019s CEO said, \u201cFor 2024, we expect the demand environment to remain mixed.\u201d<\/span><\/p>\n

        Starbucks Misses Expectations<\/span><\/h2>\n

        Starbucks <\/b>(SBUX) shares are up 5% in premarket trade despite reporting weaker than expected fiscal Q1 earnings and revenue. <\/span>
        \n<\/span><\/p>\n

        Here\u2019s how the coffee giant\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

          \n
        • Adjusted EPS: $0.90 vs $0.93 expected<\/span><\/li>\n
        • Revenue: $9.4 billion vs $9.59 billion expected<\/span><\/li>\n<\/ul>\n

          Revenue rose 8% year over year.<\/span><\/p>\n

          Global same-store sales rose 5% from a year ago, missing expectations for 7.2% growth.\u00a0<\/span><\/p>\n

          North American same-store sales also rose 5%.\u00a0<\/span><\/p>\n

          International same-store sales growth of 7% fell short of expectations for 13.2% growth.\u00a0<\/span><\/p>\n

          Boeing Beats Q4 Estimates<\/span><\/h2>\n

          Boeing <\/b>(BA) shares are up 1.8% ahead of the open after beating Q4 expectations.\u00a0<\/span><\/p>\n

          Here\u2019s how the planemaker\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

            \n
          • Adjusted loss per share: $0.47 vs $0.78 expected<\/span><\/li>\n
          • Revenue: $22.02 billion vs $21.11 billion expected<\/span><\/li>\n<\/ul>\n

            Revenue rose 10% year over year and Boeing had $2.95 billion in free cash flow during the quarter.\u00a0<\/span><\/p>\n

            The company declined to provide 2024 guidance amid the latest controversy with its Max 9 planes.\u00a0<\/span><\/p>\n

            The CEO said, \u201cWhile we often use this time of year to share or update our financial and operational objectives, now is not the time for that. We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately \u2013 that is what will drive our performance.\u201d<\/span><\/p>\n

            In Case You Missed It<\/span><\/h2>\n
              \n
            • The number of job openings in the U.S. rose unexpectedly in December. The Labor Department\u2019s job openings and labor turnover survey (JOLTS) shows there were 9.026 million available jobs in the final month of 2023. That was higher than 8.714 million expected and the first month above 9 million since September. The data shows the U.S. labor market continuing to maintain strength amid the Fed\u2019s tightening efforts.<\/span><\/li>\n
            • Consumer confidence jumped to a two-year high this month. The Conference Board\u2019s consumer confidence index rose to 114.8 in January from 108 in December. That slightly missed economists\u2019 expectations for a reading of 115. It is the highest level of consumer confidence since December 2021. Confidence in current economic conditions rose to 161.3 from 147.2. The six-month expectations index rose to 83.8 from 81.9.<\/span><\/li>\n
            • U.S. home prices cooled in November. The S&P Case-Shiller national home price index fell 0.2% monthly from October. It was the first monthly drop since January 2023. National prices were still 5.1% higher compared to November 2022. The 10-city index rose 6.2% year over year while the 20-city index rose 5.4% annually.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              DJIA Futures: +48 (+0.1%) SPX Futures: -24 (-0.5%) NASDAQ Futures: -171 (-1.0%) Good morning friends! Futures are mixed as traders digest big tech earnings, new jobs data, and look ahead to the Fed decision. Let\u2019s get right to it! Private Job Growth Slows Job growth in the U.S. private sector slowed more than expected in January.\u00a0 Payroll firm ADP reported private employers added 107,000 jobs in the first month of the year vs 150,000 expected.\u00a0 That was a decline from the downwardly revised 158,000 in December.\u00a0 The information services sector was the only to report a drop, losing 9,000 workers.\u00a0 Leisure and hospitality added 28,000 workers, trade, transportation and utilities added 23,000, and construction rose by 22,000. ADP\u2019s report showed a 5.2% annual increase in wages in January.\u00a0 This data comes ahead of the official jobs report from the Labor Department on Friday which is expected to show the U.S. economy added 185,000 and the unemployment rate rising to 3.8%. Microsoft Slips After Earnings Microsoft (MSFT) shares are down 0.5% ahead of the open after beating fiscal Q2 expectations on the top and bottom line but issuing soft guidance. Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $2.93 vs $2.78 expected Revenue: $62.02 billion vs $61.12 billion expected Total revenue rose 17.6% year over year.\u00a0 Microsoft\u2019s Intelligent Cloud segment reported $25.88 billion in revenue, up 20% from a year ago and higher than $25.29 billion expected.\u00a0 Revenue from Azure and other cloud services jumped 30% year over year vs 27.5% growth expected.\u00a0 Microsoft forecast fiscal Q3 revenue between $60 billion and $61 billion, putting the middle of the range at $60.5 billion vs $60.93 billion expected.\u00a0 Alphabet Slides On Disappointing Ad Revenue Alphabet (GOOGL) shares are falling 5.7% in premarket trade after reporting lower than expected Q4 ad revenue.\u00a0 Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1.64 vs $1.59 expected Revenue: $86.31 billion vs $85.33 billion expected Google Cloud Revenue: $9.19 billion vs $8.94 billion expected Overall Ad Revenue: $65.52 billion vs $65.94 billion expected YouTube Ad Revenue: $9.2 billion vs $9.21 billion expected Alphabet\u2019s total revenue jumped 13% year over year, the fastest quarter of growth since early 2022.\u00a0 Google Cloud saw growth of 26% during the quarter.\u00a0 AMD Drops On Weak Forecast Advanced Micro Devices (AMD) shares are down 4.6% ahead of the open after reporting Q4 earnings that were in line with expectations and issuing soft guidance.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.77, in line with estimates Revenue: $6.17 billion vs $6.12 billion expected AMD forecast Q1 sales of $5.4 billion, plus or minus $300 million.\u00a0 That was short of analysts\u2019 expectations for $5.73 billion.\u00a0 AMD\u2019s CEO said, \u201cFor 2024, we expect the demand environment to remain mixed.\u201d Starbucks Misses Expectations Starbucks (SBUX) shares are up 5% in premarket trade despite reporting weaker than expected fiscal Q1 earnings and revenue. Here\u2019s how the coffee giant\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.90 vs $0.93 expected Revenue: $9.4 billion vs $9.59 billion expected Revenue rose 8% year over year. Global same-store sales rose 5% from a year ago, missing expectations for 7.2% growth.\u00a0 North American same-store sales also rose 5%.\u00a0 International same-store sales growth of 7% fell short of expectations for 13.2% growth.\u00a0 Boeing Beats Q4 Estimates Boeing (BA) shares are up 1.8% ahead of the open after beating Q4 expectations.\u00a0 Here\u2019s how the planemaker\u2019s results compared to analysts\u2019 estimates: Adjusted loss per share: $0.47 vs $0.78 expected Revenue: $22.02 billion vs $21.11 billion expected Revenue rose 10% year over year and Boeing had $2.95 billion in free cash flow during the quarter.\u00a0 The company declined to provide 2024 guidance amid the latest controversy with its Max 9 planes.\u00a0 The CEO said, \u201cWhile we often use this time of year to share or update our financial and operational objectives, now is not the time for that. We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately \u2013 that is what will drive our performance.\u201d In Case You Missed It The number of job openings in the U.S. rose unexpectedly in December. The Labor Department\u2019s job openings and labor turnover survey (JOLTS) shows there were 9.026 million available jobs in the final month of 2023. That was higher than 8.714 million expected and the first month above 9 million since September. The data shows the U.S. labor market continuing to maintain strength amid the Fed\u2019s tightening efforts. Consumer confidence jumped to a two-year high this month. The Conference Board\u2019s consumer confidence index rose to 114.8 in January from 108 in December. That slightly missed economists\u2019 expectations for a reading of 115. It is the highest level of consumer confidence since December 2021. Confidence in current economic conditions rose to 161.3 from 147.2. The six-month expectations index rose to 83.8 from 81.9. U.S. home prices cooled in November. The S&P Case-Shiller national home price index fell 0.2% monthly from October. It was the first monthly drop since January 2023. National prices were still 5.1% higher compared to November 2022. The 10-city index rose 6.2% year over year while the 20-city index rose 5.4% annually.<\/p>\n","protected":false},"author":41,"featured_media":73531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-73525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=73525"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73525\/revisions"}],"predecessor-version":[{"id":73534,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73525\/revisions\/73534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/73531"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=73525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=73525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=73525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}