S&P 500 futures are down 2 points, Nasdaq 100 futures are down 20 points (0.1%), and Dow Jones Industrial Average futures are down 25 points (0.1%). This suggests a lower market opening after yesterday's recovery.
Alphabet (GOOG, Financial) shares are down nearly 1.0% following news that the DOJ is considering remedies for Google, including a potential breakup, in its antitrust case.
Chinese markets continue to slide due to a lack of stimulus, with the Shanghai Composite dropping 6.6%. Meanwhile, China's Ministry of Finance plans a meeting on October 12 to discuss fiscal policy and economic development.
U.S. Treasury yields show little change: the 10-year yield is up to 4.04%, and the 2-year yield down to 3.97%.
The MBA Mortgage Applications Index fell 5.1% after last week's 1.3% decrease. Scheduled economic reports today include:
Today's News
Taiwan Semiconductor Manufacturing (TSM) reported a significant 39.6% increase in revenue for September, driven by the rising demand for AI chips. The company, which supplies major tech firms like Apple (AAPL, Financial), Nvidia (NVDA, Financial), and AMD (AMD, Financial), achieved a September-quarter revenue of approximately NT$759.69B, surpassing analyst expectations. TSMC had previously forecasted its third-quarter revenue to range between $22.4B and $23.2B, with strong demand for smartphone and AI-related technologies contributing to this growth.
The U.S. Department of Justice is contemplating a potential breakup of Google's (GOOG, Financial) (GOOGL, Financial) various units, including Chrome and Android, as part of antitrust remedies. The DOJ aims to prevent Google from leveraging its products to maintain a monopoly, following a judge's ruling that Google had established an illegal monopoly. The proposed remedies include structural changes to ensure fair competition and prevent Google from disadvantaging rivals or new market entrants.
Lenovo (LNVGY, Financial), HP Inc. (HPQ, Financial), and Dell Technologies (DELL, Financial) led the global PC market in the third quarter of 2024, with Lenovo maintaining its top position. The PC market saw a year-over-year growth of 1.3%, with notebook shipments increasing by 2.8% while desktop shipments fell by 4.6%. The market's recovery is attributed to businesses upgrading to Windows 11 to avoid extended support fees, with expectations of continued growth in upcoming quarters.
Nvidia's (NVDA, Financial) CEO Jensen Huang discussed the future of AI, emphasizing services that can "reason" and the need to reduce computing costs to reach this phase. Huang highlighted the potential for AI tools to perform complex reasoning tasks, differentiating them from current systems like ChatGPT. Nvidia plans to enhance chip performance significantly, aiming to transform AI systems' inference capabilities.
Norwegian Cruise Line Holdings (NCLH, Financial) experienced a stock surge after Citi upgraded it to a Buy rating, citing potential earnings growth and strategic shifts. The cruise line's focus on pricing opportunities without escalating costs has led analysts to project a 23% three-year EPS CAGR. NCLH aims to sustain a yield/cost spread to achieve even higher EPS growth.
Blackstone (BX, Financial) was downgraded to Neutral by Piper Sandler, as the firm's realized performance revenue remains low. Despite expected demand growth in 2025, much of this optimism is already reflected in Blackstone's stock price, which has risen substantially over the past year. The firm remains a key player in alternative asset management.
Infosys (INFY, Financial) announced an expanded collaboration with Microsoft (MSFT, Financial) to accelerate the adoption of generative AI and Azure services. Infosys will support Microsoft's enterprise customers in cloud and AI workloads, reflecting a strategic partnership to enhance AI capabilities globally.
Baidu's (BIDU, Financial) Apollo Go robotaxi unit is in discussions to expand internationally, targeting markets like Hong Kong, Singapore, and the Middle East. The company plans to deploy its autonomous taxis in new regions, aiming to operate in 65 cities by 2025 and 100 by 2030, while reducing operational costs.
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