Good Evening! On Tuesday, stocks rose as the benchmark 10-year Treasury yield rebounded and investors anticipated a wave of earnings reports from tech titans and others.
It was green across the board, with the Nasdaq Composite leading the way up 0.93%, the S&P 500 following behind gaining 0.73%, and the Dow Jones finishing up by 0.62%.
NOT SO MICRO, OR SOFT
It is earning season again and Microsoft came out strong! Microsoft (MSFT) reported its quarterly financial results after the market closed on Tuesday, surpassing analysts’ forecasts for both sales and profits per share. Let’s see those numbers!
- Revenue: $56.5 Billion vs. $54.5 Billion Expected
- Cloud Segment: $24.3 Billion vs. $23.6 Billion Expected
- Productivity & Business: $18.6 Billion vs. $18.3 Billion Expected
- Earnings Per Share: $2.99 vs. $2.35 Expected
What has Mircosoft been up to? The business has introduced a range of AI-driven Copilot applications for Outlook, Windows 11, and Microsoft 365. Microsoft plans to consolidate the Copilots into a unified application in the future. On top of that, Microsoft has just completed its purchase of Activision Blizzard for a staggering $69 billion, making the firm the third largest video game company globally, after only Tencent and Sony.
NOT ENOUGH!
The UAW organized an unexpected walkout, instructing 6,800 employees at Stellantis’s primary Ram 1500 assembly factory to join the picket line.
Why the added pressure? This movement aligns with UAW President Shawn Fain’s commitment to exert further pressure on Stellantis, Ford, and GM until they comply with the union’s requests. Fain stated that the Ram facility is Stellantis’s “moneymaker.”
What damage has this done for the three firms? According to the Anderson Economic Group, the Big Three and their suppliers have incurred losses of around $4.2 billion and $2.8 billion, respectively, since the strike began on September 15. On top of that, the three companies have agreed to unprecedented improvements in pay and working environments. However, Fain argues that the three firms have the ability to offer more.