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☆ Amazon's AWS just notched its slowest growth in years. It expects customers to tighten their belts even more.
▼ + stars: | 2023-02-03 | by ( Paayal Zaveri | ) www.businessinsider.com time to read: +2 min

Amazon's cloud business is seeing a slowdown in growth as customers reduce spending. Amazon's execs say AWS growth will decline even further this quarter. All of that translates into less spend at Amazon Web Services, or AWS — Amazon's cash cow that brought in revenues of $21.4 billion last quarter. Analysts were expecting a slowdown in growth after Microsoft also reported slowing cloud growth last week. As corporate customers look to save money in an economic downturn, they want to cut their cloud costs, CEO Andy Jassy said.

The reports renewed questions about global economic demand, the effect of higher interest rates and whether the market's January rally got ahead of itself. Apple, the world's largest publicly traded company, fell short of expectations, hurt by lower iPhone sales and production disruptions in China. Amazon said operating profits could fall this quarter due to lower demand, and Alphabet's online advertisers cut back their spend as well. Shares of the three companies dropped after the results were released and were expected to drag the market lower Friday following a euphoric rally Thursday. These three firms and Microsoft (MSFT.O), the four U.S. companies with trillion-dollar market values, have led the broad-market S&P 500 in 2023.

☆ Apple's lower iPhone sales drive first profit miss since 2016
▼ + stars: | 2023-02-02 | by ( Stephen Nellis | ) www.reuters.com time to read: +5 min

Apple sales fell 5% to $117.2 billion and were down in every part of the world in the quarter. Apple Chief Executive Tim Cook told Reuters that the production disruptions that plagued Apple's key quarter were now over. "I would point out that 8% is still a very severe headwind," Cook told Reuters. On top of supply chain problems for the iPhone, Wall Street analysts had expected iPhone sales to fall this year as part of a larger pattern in which the iPhone 14 family released last year sells more slowly after two straight years of strong sales of iPhone 12 and 13 models. Apple said iPhone sales were $65.8 billion, down 8% from the year before and below analyst estimates of $68.3 billion.

☆ Honeywell reported a challenging Q4, but the industrial giant's fundamentals remain strong
▼ + stars: | 2023-02-02 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

Industrial conglomerate Honeywell International (HON) on Thursday reported suboptimal fourth-quarter results, sending shares lower in midday trading. However, we remain confident in the Club holding's management team and would see any further weakness as a potential buying opportunity. Supportive of this outlook is strong demand in Honeywell's aerospace division, where growth has been held back on the supply side. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. An aircraft engine is being tested at Honeywell Aerospace in Phoenix.

☆ There's still a lot to like about Apple despite key misses in its December quarter
▼ + stars: | 2023-02-02 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Despite headline misses, Apple gave us a lot to like under the hood in its fiscal 2023 first quarter. The worst appears to be behind us — and as a result, we reiterate our 1 rating and continue to believe that Apple stock is something to own for the long-term, not trade quarter to quarter. In its December quarter, Apple returned $19 billion via the repurchase of 133 million shares and another $3.8 billion in dividends. Moreover, nearly two-thirds of Apple Watch buyers in the quarter were new to the product. Within Services, we also saw all-time revenue records for cloud services, payment services and music and December quarter records for the App Store and AppleCare.

☆ Why we expect more cost cuts at Amazon after a solid fourth quarter
▼ + stars: | 2023-02-02 | by ( Jeff Marks | ) www.cnbc.com time to read: +6 min

Bottom line All in all, this was a good quarter from Amazon, with beats across business segments. If Amazon takes the hammer to its expenses like Meta Platforms did Wednesday , we think the stock could trade much higher. This was related to Amazon closing down some Amazon Fresh and Amazon Go physical stores, though we appreciate Amazon shutting down stores that offer lower growth potential. First quarter outlook Amazon is generally conservative when providing financial guidance, but the outlook Thursday left more to be desired. An Amazon driver loads packages into a delivery van at an Amazon delivery station on November 28, 2022 in Alpharetta, Georgia.

☆ Biden moves to slash U.S. credit card fees, app charges
▼ + stars: | 2023-02-01 | by ( Douglas Gillison | ) www.reuters.com time to read: +3 min

The Consumer Financial Protection Bureau will propose on Wednesday a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year. However, regulations are frequently subject to challenge and litigation by industry groups that can block or delay them. The White House said the Transportation Department on Wednesday will propose regulations to bar airlines from charging family members to be seated next to children age 13 or younger. The department will disclose on a government dashboard which airlines do not charge such fees. Reporting by Douglas Gillison and David Shepardson; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ Popular Tool to Cut Debt Costs Loses Luster as Global Central Banks Hike Rates
▼ + stars: | 2023-02-01 | by ( Kristin Broughton | ) www.wsj.com time to read: +7 min

Corporate finance executives looking to cut their debt costs this year are likely to find one popular tool isn’t as attractive as it was when the Federal Reserve was aggressively raising interest rates in 2022. Under a cross-currency swap, a company exchanges principal and interest payments on its debt into another currency. Swaps can lose their appeal to companies when the gap between interest rates in two countries, or central banks, narrows. Corporate advisers said they expect cross-currency swap volumes to decline in the months ahead, assuming market expectations for future rate increases hold steady. That rule made it easier for companies to use cross-currency swaps and recognize the interest savings on their financial statements.

☆ Bond king Jeffrey Gundlach says he expects one more Fed rate hike
▼ + stars: | 2023-02-01 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

DoubleLine Capital CEO Jeffrey Gundlach said he sees one additional rate hike from the Federal Reserve before the central bank ends its tightening cycle. The Fed on Wednesday raised its benchmark interest rate by a quarter percentage point, taking its target range to 4.5%-4.75%, the highest since October 2007. The so-called bond king said Fed Chairman Jerome Powell had a "clarifying" statement at the press conference Wednesday, saying the real yields are positive across the curve. In Powell's press conference, the Fed chief said the central bank could conduct a few more rate hikes to bring inflation down to its target. Asked if Gundlach sees the Fed cutting rates this year, he said it's a coin flip, depending on the incoming inflation data.

☆ After the Fed’s latest move, how come you’re still not getting a higher rate on your bank savings?
▼ + stars: | 2023-02-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +10 min

So how come you’re not getting a higher rate on your bank savings? Another high-yield savings optionGiven today’s still-high rates of inflation, Series I savings bonds may be attractive because they’re designed to preserve the buying power of your money. For the week ending January 26, the 30-year fixed rate mortgage averaged 6.13%, well above where it was a year earlier, at 3.55%. So, if you’re close to buying a home or refinancing one, lock in the lowest fixed rate available to you. The variable rate on a home equity line of credit or a fixed rate on a home equity loan will rise because their formulas are directly tied to the Fed’s rates.

☆ The 'problematic' stock rally will fade as the Fed wrangles sticky inflation and recession hits in the 2nd half of the year, Credit Suisse strategist says
▼ + stars: | 2023-02-01 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The rally in stocks that's kicked off 2023 is "problematic," according to Credit Suisse strategist Patrick Palfrey. Palfrey warned that gains will be fleeting as the Fed continues to battle sticky inflation. That could spark a recession and a sell-off in the market in the second half of the year, he predicted. Though prices cooled to 6.5% in December, inflation is likely to remain sticky in the second half of the year, Palfrey said. I think those are going to be a headwind for the market as we start to approach the latter half of the year," Palfrey warned.

☆ Humana is set to soar in 2023 after delivering strong Q4
▼ + stars: | 2023-02-01 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Health insurer Humana (HUM) on Wednesday reported a stellar fourth quarter and provided a robust full-year outlook, setting the Club holding up for significant growth in 2023. Outlook Management guided for full year 2023 adjusted earnings-per-share to be at least $28, in line with analysts' forecasts. The 2023 benefits expense ratio range of 86.3% to 87.3% is slightly above the 86.3% ratio predicted by analysts, at the midpoint. But given the company already expects to be above the industry growth rate in 2023, Humana is ahead of expectations — bolstering the Club's confidence in the achievability its long-term outlook. But Humana's management only said they're still "reviewing the final rule and considering its impact."

☆ Meta's Q4 beat and commitment to cost cuts is exactly what we've been waiting for
▼ + stars: | 2023-02-01 | by ( Jeff Marks | ) www.cnbc.com time to read: +7 min

Meta Platforms (META) reported a fourth-quarter earnings beat Wednesday, while CEO Mark Zuckerberg labeled 2023 the "year of efficiency" in an effort reassure nervous investors like us that the technology giant is serious about controlling costs following a period of severe overspending. Bottom line Meta Platforms delivered what it needed to Wednesday evening, prioritizing efficiency in a sluggish revenue environment. But the real kicker was that management lowered Meta's expenses outlook — by $5 billion. The company said this evening its click-to-message ads is now at a $10 billion revenue run rate, a significant development. Mark Zuckerberg, chief executive officer of Meta Platforms Inc., speaks during the virtual Meta Connect event in New York, US, on Tuesday, Oct. 11, 2022.

In 2023, it expects revenue to be $67 billion to $71 billion. Excluding the COVID-19 drugs, Pfizer expects 2023 revenue to grow 7% to 9%. Pfizer developed its COVID-19 vaccine with German partner BioNTech , and the companies split the profits. The U.S. drugmaker forecast 2023 sales of $13.5 billion from the shot, below Refinitiv estimates of $14.39 billion, and projected $8 billion in sales of Paxlovid, short of analysts' expectation of $10.33 billion. After that transition, the company hopes to roughly quadruple the U.S. price of the COVID-19 vaccine.

☆ Here are Tuesday's biggest analyst calls: Apple, Alphabet, Ford, Lucid, AMD, Uber & more
▼ + stars: | 2023-01-31 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Tuesday's biggest calls on Wall Street: Barclays reiterates Apple as equal weight Barclays said it sees a miss when the Apple reports earnings Thursday. Deutsche Bank reiterates Disney as buy Deutsche Bank said it's standing by shares of Disney heading into earnings on Feb. 8. Bank of America reiterates Alphabet as buy Bank of America said Alphabet continues to pull the right "cost levers in a tough environment." Mizuho reiterates Uber as buy Mizuho said it's "constructive" on Uber shares heading into earnings on Feb. 8. Deutsche Bank reiterates PayPal as buy Deutsche said it's staying bullish heading into PayPal earnings in early February.

☆ US home prices continued to lose momentum in November
▼ + stars: | 2023-01-31 | by ( Anna Bahney | ) edition.cnn.com time to read: +1 min

All 20 cities reported lower price increases in the year ending November 2022 compared to the year ending October 2022. Month-over-month declines continued in November, with all 20 cities reporting declines before seasonal adjustments. After seasonal adjustments, 19 cities still reported declines, with only Detroit increasing 0.1%. Last July marked the first month-over-month decrease for the national index since February 2012 and that continued through November, with seasonally adjusted prices falling 0.3% month over month. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken,” he said.

While a tough economy and a stronger dollar had also crimped its business, poor product execution at Tinder was the "significant" culprit, Match said. Match reaffirmed its 2023 revenue growth forecast of 5% to 10%. It expects revenue growth to reach double digits by the fourth quarter on increasing momentum in the second half. The company forecast first-quarter revenue between $790 million and $800 million, lower than analysts' estimates of $817.3 million, according to Refinitiv data. Revenue fell 2% to $786 million in the fourth quarter ended Dec. 31, also missing expectations of $787.3 million.

☆ Ford’s EV price cuts could pressure profitability, a headwind the automaker needs to address
▼ + stars: | 2023-01-30 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

Ford Motor (F) confirmed Monday what Jim Cramer has been speculating for weeks: Price cuts on its electric vehicles following similar moves by Tesla (TSLA). Depending on the models, Ford's price reduction "hurts our decision to own Ford," Jim said Monday after the automaker said the move will make some Mach-E trims unprofitable. Last year, Ford announced a split of its EV and internal combustion engine units into separate businesses — called Ford Model e and Ford Blue, respectively — aiming to increase efficiencies unique to each and maximize profits. F 1Y mountain Ford (F) 1 year performance The Club's take With investors concerned about margin pressure due to the price cuts, we'll be looking for messaging on Ford's next steps to address the problem. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Credit Suisse sees Apple beating the Street this week for a couple reasons
▼ + stars: | 2023-01-30 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

Credit Suisse is bullish on Apple shares as the tech company prepares to announce its earnings report this week. Credit Suisse also held steady on its revenue estimate of $121.6 billion for Apple's fiscal first quarter and per-share earnings of $1.92. "We see potential upside to our estimates which are below the Street," analyst Shannon Cross said in a note to clients on Monday. She also noted that margins could benefit because Apple raised prices in many countries to offset the strong dollar. Meanwhile, Cross estimates Mac revenue having declined $3.1 billion, or 27% on a quarterly basis due to backlog fulfilled during the fiscal fourth quarter.

☆ The sizzling rally in stocks is nearing its end as investors are about to realize a recession has merely been postponed, JPMorgan says
▼ + stars: | 2023-01-30 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The sizzling rally in stocks will come to an end, as the risks of recession have only been postponed, JPMorgan said. Though investors are less worried about a downturn, some areas of GDP data are still weak, and interest rates remain high. "A weak trajectory for US domestic demand keeps recession risk elevated, even as the tightness in labor markets postpones this recession risk." "A weak trajectory for US domestic demand keeps recession risk elevated, even as the tightness in labor markets postpones this recession risk," the note said. That weakness is also exacerbated by high interest rates, strategists said, with the fed funds rate approaching 5%.

☆ The stock-market rally that's jumpstarted 2023 is about to fade as the Fed reasserts its resolve in fighting inflation, Morgan Stanley's top stock strategist says
▼ + stars: | 2023-01-30 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Stocks are off to a "surprisingly good start" in 2023, but the upside momentum looks set to fizzle, Morgan Stanley said Monday. This week's FOMC meeting may remind investors of the cardinal rule: "Don't Fight the Fed," said strategist Mike Wilson. The investment bank is now leaning more toward its bear case of per-share earnings of $180 for the S&P 500. He said recent price action in stocks has prompted investors to participate more actively as they fear missing out. "We think it's important to note that typically when forward earnings growth goes negative, the Fed is actually cutting rates.

☆ US consumers may have to live with high prices for longer — and a falling dollar could be to blame
▼ + stars: | 2023-01-28 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +5 min

However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. But the welcome relief on the prices front is now facing a new threat — in the form of a falling dollar. A weaker dollar raises the cost of imported goods, which would eventually feed into consumer prices in the US. The US is a net importer of materials such as lumber and semiconductors that are crucial in manufacturing supply chains, and these would become costlier due to dollar weakness. "If we continue to see the dollar trade at current levels or even increase in weakness, that would be a headwind in the fight against high global inflation," Lomholt told Insider.

☆ Elon Musk says his Twitter misadventure has only helped Tesla. Wall Street isn't buying it.
▼ + stars: | 2023-01-27 | by ( Asia Martin | ) www.businessinsider.com time to read: +6 min

Wall Street analysts feel otherwise: They're bullish on Tesla, but think Musk is too distracted. Musk's tweets have gotten him in trouble with shareholders and the courts. Wall Street thinks Twitter is a costly distractionMusk is not wrong in that he and Tesla are reasonably popular on Twitter. But how many of Musk's and Tesla's followers converted to sales based on the content coming from those accounts? As in most things, there's always more to the story — but you can't deny the impact of Musk's Twitter habits, either.

REUTERS/Andrew KellyOAKLAND, Calif/BANGALORE, Jan 27 (Reuters) - Microprocessor giant Intel Corp (INTC.O) says it will regain its footing against AMD and other chip rivals which are gobbling up market share, but Wall Street is skeptical. That's a headwind for Intel and AMD, both of which are rolling out new chips, but Intel is facing a larger inventory correction. Intel still dominates the markets for PC and server processing chips, with a market share greater than 70%, tech research firm IDC calculated. Chipmaker shares were hammered across the board on Friday, but Intel led the decline, slumping by 10% while AMD lost 1.8%. AMD set to overtake Intel in market cap, again AMD set to overtake Intel in market cap, againReporting By Jane Lanhee Lee and Chavi Mehta; Editing by David Gaffen, Peter Henderson, Kirsten Donovan and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ The U.S. dollar may hold the key to whether this market rally can last
▼ + stars: | 2023-01-27 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +2 min

The U.S. dollar surged in 2022, with the dollar index hitting a peak of $114.78 in September. But since September, the dollar index has slipped and is now nearing a range that could lend support to the S & P 500 . The dollar index nearing 100 is a key number that many technical analysts are watching – it was named one of the big numbers for 2023 by Oppenheimer. Still, she's also been watching the dollar's major corrective phase and per DeMARK Indicators sees an active signal on the dollar index that flashed on Jan. 13. .DXY YTD line DXY YTD "What it suggests is that from the support area, we should see a relief rally or a dollar bounce," she said, adding that this would mark a sentiment shift around the dollar.

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