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Wall Street's bullish sentiment on Microsoft hasn't faded, even after the tech giant forecast disappointing revenue growth numbers. The company's revenue increased 16% year over year in the quarter, and its net income rose 11% during the period compared to the year-ago quarter. That forecast led shares to slip nearly 4% in premarket trading, despite the company's strong earnings performance. That would be the company's fastest ever AI-related revenue growth rate. Barclays, which has one of the lowest price objectives on Wall Street, said it sees Microsoft shares being "range bound" in the short term.
Persons: Morgan Stanley —, Bernstein, Morgan Stanley, Keith Weiss, Weiss, Kirk Materne, Materne, Raimo Lenschow Organizations: Microsoft, LSEG, JPMorgan, Bank of America, Barclays, Citi, 25X, Investors Locations: Wells
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAlphabet earnings were 'bellwether' of tech earnings, says Wells Fargo's Ken GawrelskiCNBC's Deidre Bosa joins Ken Gawrelski, Wells Fargo senior internet analyst, on 'The Exchange' to discuss Alphabet earnings, expectations for Meta, and more.
Persons: Wells, Ken Gawrelski, Bosa Organizations: Meta Locations: Wells Fargo
Here are Wednesday's biggest calls on Wall Street: Bank of America reiterates Advanced Micro Devices as buy Bank of America said the stock is best positioned following earnings on Tuesday. JPMorgan reiterates First Solar as overweight The firm said the solar company is still best positioned following earnings on Tuesday. "Attractive entry point ahead of EDN's tariff review, a key value driver that could drive significant earnings growth & trigger stock re-rating. "We remain confident in BOOT's ability to deliver attractive relative earnings growth supported by compelling unit expansion opportunity." Raymond James downgrades Crocs to market perform from outperform Raymond James downgraded the shoe company following earnings citing margin pressures.
Persons: Wells, Reddit, Morgan Stanley, Raymond James, it's, Bernstein, Baird, Raymond James downgrades Qorvo, Barclays downgrades Lear, Goldman Sachs, Chipotle, Goldman, Raymond James downgrades Crocs, Wedbush downgrades Williams Organizations: Bank of America, Devices, AMD, JPMorgan, Catalyst, " Bank of America, DoJ, Citi, YouTube, Bank of, Holdings, of America, Incyte, Boeing, UBS, Barrick Gold, Barrick, Barclays, CMG, Walmart, Apple, Apple Intelligence, 3Q, 4Q, WSM Locations: China, OW, America, Sonoma
CNN —Chipotle customers have complained that portion sizes are all over the map. Frustrated Chipotle customers took to posting on social media this year, accusing the company of skimping on servings. He added that about 10% of stores were outliers in portion sizes and would be re-trained. Chipotle employees were never directed to serve customers less, Niccol said, but the claims prompted a reevaluation of the entire system. He said there’s a been a noticeable shift from previous unhappiness and customers are “really excited” about Chipotle’s new portion sizes.
Persons: Scott Boatwright, Chipotle, Chris Kempczinski, pico de, Brian Niccol, Niccol, Organizations: CNN, , Employees, New, Starbucks Locations: skimping, Wells, New York City, portioning
Wall Street is in the thick of earnings season, and some companies that have already reported could outperform going forward, Wolfe Research found. Following the bank's latest earnings report on Oct. 15, Wells Fargo reiterated its overweight rating on shares of Goldman Sachs. Shares rallied nearly 18% on Thursday after the health-care company posted earnings and revenue beats. Molina Healthcare earned an adjusted $6.01 per share, while the LSEG consensus estimate called for $5.81 in earnings per share. ServiceNow shares are up more than 35% year to date.
Persons: Wolfe, we're, Goldman Sachs, Wells, Mike Mayo, Molina, ServiceNow, Brad Sills Organizations: Wolfe Research, U.S, Molina Healthcare, . Software, Bank of America
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWells Fargo's Mike Mayo: Here's why financials will benefit no matter who wins the electionMike Mayo, Wells Fargo Securities managing director and senior banking analyst, joins 'Squawk on the Street' to discuss Mayo's take on why financials benefit from either candidate's election, what happens if rates go up more than expected, and much more.
Persons: Wells, Mike Mayo Organizations: Wells Fargo Securities Locations: Wells Fargo
Here are the biggest calls on Wall Street on Tuesday: Evercore ISI reiterates Amazon as overweight Evercore says it's sticking with the stock ahead of earnings later this week. Evercore ISI reiterates Uber as overweight Evercore says it's bullish on Uber heading into earnings on Thursday. Janney upgrades First Solar to buy from neutral Janney says the solar company is attractive ahead of earnings on Tuesday afternoon. " Evercore ISI reiterates Meta as overweight Evercore says it's sticking with Meta ahead of earnings on Wednesday. Barclays reiterates Tesla as equal weight Barclays raised its price target on the stock to $235 per share from $220.
Persons: Evercore, Uber, it's bullish, Janney, Goldman Sachs, Ford, Goldman, Wells, Tesla, Morgan Stanley, Bernstein, TD Cowen, Cowen, it's, Mizuho, Stephens, ROA, Guggenheim, HOOD, we've Organizations: Ford, CTV, APP, Citi, Apple, Apple Intelligence, Barclays, Walmart, Mizuho, Netflix, Guggenheim, Six Flags Entertainment Locations: Mexican, Brazil, Mexico, China, U.S
It's time for investors to consider scooping up shares of The Trade Desk as it captures more advertising spending, according to Wells Fargo. Analyst Alec Brondolo initiated coverage of the advertising technology stock with an overweight rating, saying that new partnerships should boost estimates. He also placed a $150 price target on Trade Desk, which implies upside of 26%. "We forecast a meaningful benefit from unlocking Roku/Netflix inventory in 2025 /2026, leaving our revenue estimates 6% / 8% ahead of consensus, respectively," he wrote. The Trade Desk should also benefit from ads on Prime Video, a move Brondolo thinks is stimulating growth in the connected TV industry.
Persons: Alec Brondolo Organizations: Netflix, Prime, CTV Locations: Wells Fargo
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBond market factoring in Trump win, if Harris wins bond yields come down: Wells Fargo's SchumacherMichael Schumacher, Wells Fargo, joins 'Fast Money' to talk the market's response to the upcoming election.
Persons: Harris, Wells Fargo's Schumacher Michael Schumacher, Wells Organizations: Trump Locations: Wells Fargo
Big Tech stocks have a high earnings bar to clear
  + stars: | 2024-10-29 | by ( Fred Imbert | ) www.cnbc.com   time to read: +2 min
Overall S & P 500 profit growth is tracking below what analysts anticipated heading into the reporting period. Still, the S & P 500 is less than 1% below a record high reached earlier this month. Solita Marcelli, UBS Global Wealth Management chief investment officer for the Americas, also warned that high valuations could be a problem for megacap tech stocks as earnings roll out. Technical patterns based on price charts aren't too favorable, either, heading into megacap tech earnings. The Technology Select Sector SPDR Fund (XLK) in June hit its highest level relative to the S & P 500 since March 2000 , when the dot-com bubble peaked.
Persons: Solita Marcelli, Marcelli, Wells Fargo Organizations: Google, Microsoft, Apple, Nasdaq, UBS Global Wealth Management, Netflix Locations: Americas
Robinhood — The fintech stock rose less than 3% after it said Monday that users will have the chance to trade a Kamala Harris or Donald Trump contract ahead of next week's presidential election. ON Semiconductor — The semiconductor product maker rose 5% after third-quarter earnings and revenue topped analyst estimates. Nutanix — The cloud infrastructure stock rose 4% following an upgrade to overweight from equal weight at Morgan Stanley. Moderna — Shares jumped after Moderna and Merck said they initiated a phase 3 trial investigating a treatment for non-small cell lung cancer. Moderna shares advanced 3.9%, while Merck was slightly higher.
Persons: Wells, Steven Cahall, Kamala Harris, Donald Trump, Israel, FactSet, Eugene Hsiao, Wolfe, Roy Jakobs, Nutanix, Morgan Stanley, Meta Marshall, Merck, Timothy Wojs, Aaon, — CNBC's Sean Conlon, Michelle Fox, Alex Harring, Sarah Min, Pia Singh Organizations: Spotify, U.S . Occidental Petroleum, Exxon, BP —, Citi, McDonald's, Taiwan Semiconductor Manufacturing, Huawei, Reuters, The U.S, Delta Air Lines, CrowdStrike, Honeywell —, Philips —, , Moderna, Merck, Baird Locations: China, Atlanta
Spotify — The music platform rose more than 2% after Wells Fargo named Spotify a top stock pick . Analyst Steven Cahall is particularly bullish on the company's rising margins, strong product mix and evolving record label relationships. Boeing — Shares of the planemaker slipped roughly 2% after Boeing launched a stock offering that could raise roughly $19 billion. McDonald's shares dropped more than 7.5% last week, marking its worst weekly performance since 2020. ON Semiconductor — Shares gained more than 3% after the semiconductor product maker posted adjusted earnings per share of 99 cents and revenue of $1.76 billion for the third quarter.
Persons: Wells, Steven Cahall, Kamala Harris, Donald Trump, FactSet, Canaccord Genuity, Nio, CrowdStrike, Sarah Min, Alex Harring, Lisa Kailai Han, Sean Conlon, Michelle Fox Organizations: Spotify, Boeing —, Boeing, Occidental Petroleum, Exxon, BP —, Citi, Exxon Mobil, BP, Taiwan Semiconductor Manufacturing, Huawei, Reuters, The, Delta Air Lines Locations: U.S, China, The U.S, Macquarie
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC’s full interview with Virtus’ Joe Terranova and Wells Fargo’s Sameer SamanaVirtus’ Joe Terranova and Wells Fargo’s Sameer Samana, join 'Closing Bell' to discuss markets, treasury yields and energy and oil sector performance.
Persons: Virtus ’ Joe Terranova, Wells, Sameer Samana, Joe Terranova Organizations: Virtus ’
Morgan Stanley initiates FrontView REIT as overweight Morgan Stanley said the commercial real estate investment trust company is well positioned. " Morgan Stanley downgrades Global Foundries to equal weight from overweight Morgan Stanley said it sees rising competition for the semis company. " Morgan Stanley upgrades Nutanix to overweight from equal weight Morgan Stanley said the cloud computing software company is well positioned. " Morgan Stanley downgrades Ciena to equal weight from overweight Morgan Stanley said it sees a more balanced risk/reward for the networking and systems software company. Wedbush adds Roblox to the best ideas list The firm said it sees robust revenue growth ahead.
Persons: Cantor Fitzgerald, Morgan Stanley, FrontView, Baird, AAON, Canaccord, Tesla, Jefferies, NTNX, Wells, Raymond James downgrades, Wolfe, DOV, Morgan Stanley downgrades Ciena, Piper Sandler, Bowlero, Piper, Goldman Sachs, Goldman, it's bullish, Marcellus, Bernstein, SARO, Stifel downgrades, Oppenheimer, Monness Crespi Hardt, Coinbase, Stifel, it's Organizations: Nvidia, Broadcom, MU, JPMorgan, Apple, Dell, Cisco, Spotify, Honeywell, Walmart, " Bank of America, Antero Resources, Bank of America, Macquarie, China EV, Stifel downgrades Colgate, Palmolive, Colgate, Commerce, ~$ Locations: AVGO, 1H25, Dover, Appalachia, Utica, West Virginia
Wells Fargo sees outperformance from Spotify ahead. These are all the components of a premium growth stock." "We think SPOT is viewed as a positive actor due to its investments in [user interface] and cont'd sub growth," the analyst said. "More likely, we think SPOT and its Label partners could look to find new avenues of monetization, which might incl. SPOT YTD mountain SPOT, year-to-date The stock moved nearly 1% after Cahall's call.
Persons: Wells, Steven Cahall Organizations: Spotify
New York CNN —Target is lowering the price of its Thanksgiving meal bundle, adding to the roughly 8,000 products that have been discounted as it attempts to attract inflation-weary shoppers during the holiday season. Target is the latest major retailer to chop the price of its Thanksgiving meal bundle, joining Aldi and Walmart in a holiday price war. Sam’s Club last week announced a Member’s Mark Thanksgiving meal, which feeds up to 10 people for under $100, made up of the warehouse club’s private label products and is delivered already cooked. Food price inflation has moderated substantially during the past year, Consumer Price Index data shows. Gomez said Target customers are buying in bulk to save money, or purchasing smaller items that have cheaper prices compared to their full-sized counterpart.
Persons: Rick Gomez, Dr, Michael Swanson, Gomez, , Organizations: New, New York CNN, Target, CNN, Aldi, Walmart, Sam’s, of Labor Statistics, Food Institute Locations: New York, Wells
Tech stocks could be in for a reckoning, this chart shows
  + stars: | 2024-10-28 | by ( Fred Imbert | ) www.cnbc.com   time to read: +2 min
Since then, the XLK is down 6% relative to the broad market index. "The level it peaked at almost exactly coincides with where the Tech ETF peaked on a relative basis in 2000. Not exactly what you want to see if you're an investor putting new money to work within Tech," he wrote. The SMH closed Friday at $252.96, and the strategist expects the $233 level to be tested near term. "We still exercise some degree of caution when we view Technology stocks, as short term trends and near-term momentum appear to be stalling," O'Hara wrote.
Persons: Wolfe, Rob Ginsberg, Ginsberg, Roth MKM, JC O'Hara, O'Hara, Wells Organizations: Wolfe Research, Tech ETF, VanEck Semiconductor, Nasdaq, Dow Jones, Microsoft, Apple Locations: Wells Fargo
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEnergy sector has bad news baked in, potential upside from here, says Wells Fargo’s Sameer SamanaVirtus’ Joe Terranova and Wells Fargo’s Sameer Samana, join 'Closing Bell' to discuss markets, treasury yields and energy and oil sector performance.
Persons: Wells, Sameer Samana, Joe Terranova Organizations: Email Energy
The Invesco Solar ETF (TAN) and the iShares Global Clean Energy ETF (ICLN) have tumbled more than 9% and 10%, respectively. While Trump's platform says he wants to unleash production from all sources, the document specifically calls out oil, gas and nuclear. How voters perceive the two candidates' energy policies could end up playing an influential role in the outcome of the election altogether. While the election will bring short-term volatility, the solar industry remains well positioned for long-term growth, according to Bank of America. About 25% of oil and 10% of natural gas production is on federal land and waters, according to the bank.
Persons: Donald Trump, Kamala Harris, Harris, fracking, Barack Obama, Trump, Steve Fleishman, Roger Read, Read, Biden, Morgan Stanley Organizations: Trump, Republican, Green New, Clean Energy, Bank of America, Keystone State, GOP, Republicans, Democratic, Wolfe Research, Wells, Wells Fargo Securities . Oil, Biden, CNBC, Exxon, Chevron Locations: Wisconsin , Michigan, Pennsylvania, China, Trump, Wells Fargo, U.S, New Mexico, Gulf of Mexico, Alaska, Iran, Tehran
Reflexivity is a startup cofounded by two former hedge fund traders. AdvertisementA startup looking to transform how investors and traders use data just received funding from some of the biggest names in the hedge fund world. Reflexivity, formerly known as Toggle AI, just raised its $30 million Series B, the startup announced Monday. Interactive Brokers and Greycroft led the round, which included participation from billionaire investor Stanley Druckenmiller and Greg Coffey, the Australian founder of hedge fund Kirkoswald. AdvertisementIt has a valuation between $115 million and $150 million, Szilagyi said.
Persons: , Greycroft, Stanley Druckenmiller, Greg Coffey, Izzy Englander, Reflexivity, Jan Szilagyi, Szilagyi, George Soros, Giuseppe Sette, Howard, Wells, Szilyagyi, that's Organizations: Service, Interactive, Millennium, Catalyst, P, Business, Druckenmiller's Duquesne Capital Management, Fortress Investment Group, Millennium Management, Soros Fund, London Stock Exchange Group, Federal Reserve Locations: Australian, MUFG, Fargo, Wells Fargo
Analyst Ike Boruchow and the bank's consumer team found the tariffs proposed by the Republican nominee are likely a significant challenge for retailers. High tariffs would be the latest hit after what has already been a tough year, with shares of the value-focused retailer diving 59% in 2024. Target is an even larger retailer that Wells Fargo is concerned will suffer from high tariffs enacted in a second Trump term. After this monster run, the average analyst only foresees further upside of about 2.5% for Walmart over the next year, the LSEG survey says. Still, the majority of analysts are unwilling to abandon the nation's largest retailer and hold buy ratings on Arkansas-based Walmart.
Persons: Donald Trump, Ike Boruchow, Trump, Boruchow, Wells, SPX Organizations: White, Republican, Wall, Trump, Walmart Locations: Wells, China, Minneapolis, Arkansas
And how should investors be thinking about future equity returns as the bull market enters its third year riding stellar multi-year performance and facing demanding valuations? So, expansionary policies that would quicken the economy's metabolism and produce more inflation was exactly what the market craved then – but now? Right now, the S & P 500 is up 42% from 18 months ago and fetches 22-times expected earnings. No reliable augurs of a coming bear market are in evidence: S & P up 10 of 11 months, making a new high in September, credit spreads resolutely narrow, all point to an upside bias over a span of months, at least. .SPX YTD mountain S & P 500, YTD Which leaves the question of just how much upside, if any, a bull should reasonably expect from here.
Persons: Warren Pies, Pat Tschosik, Ned Davis, Donald Trump, payrolls, Harris, Goldman Sachs, Goldman Organizations: Federal Reserve, Treasury, Fed, 3Fourteen Research, Trump, Ned, Ned Davis Research, Dow, Leuthold, quicken, Wall Locations: U.S, China, Wells
Today, 33-year-old Sweeney is a licensed funeral director and mortician in Warren, Minnesota, earning just over $87,000 per year. "I really don't fear death," he says, coming from what he describes as a "death-positive" family. The average pay for a funeral director is about $100,000, according to the Economic Research Institute. Sweeney's sense of community goes beyond his funeral director duties. In his role as a funeral director, Sweeney emphasizes the importance of allowing families to participate meaningfully during the funeral.
Persons: Victor M, Sweeney, Sweeney's, , Ben Brewer, It's, Thomas Lynch, Sweeney engraves, I've, it's, ​ Sweeney Organizations: CNBC, North Dakota State University, University of Minnesota, Economic Research Institute Locations: Warren , Minnesota, Detroit, Bismarck , North Dakota, Fargo, Canadian, Minnesota, U.S, Everyone's
A handful of companies reporting results in the upcoming week could see an earnings-powered boost. Megacap titans Microsoft , Amazon and Apple will headline the week, alongside other names within the travel, pharmaceuticals, energy and restaurant sectors. CNBC Pro screened FactSet for the companies reporting earnings next week that could receive a positive earnings surprise and see a jump in their shares. More than eight out of 10 of analysts covering Amazon view it as a buy, and the average price target suggests about 31% upside. Shares of Aptiv could rise another 29% from here, according to the average price target.
Persons: TD Cowen, Cowen, Andrew Kligerman, Aptiv, Wells, Colin Langan Organizations: Dow Jones, Megacap, Microsoft, Apple, CNBC, Insurance, MetLife, Bank of America, Citi, Amazon, Mastercard, Visa
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. A bullish take on emerging markets and insight into an artificial intelligence company were also discussed. CEO Alan Trefler appeared on "Worldwide Exchange" to discuss outlook for the future of his business. Eyeing emerging markets for opportunity Alan McKnight of Regions Bank is bullish emerging markets, citing the outperformance since the Fed rate cut in September but said China is a key factor.
Persons: Katrina Dudley, Franklin Templeton, Dudley, Wells, Alan Trefler, Alan McKnight, McKnight, it's Organizations: PRO, Worldwide, Federal Reserve, Verizon, Mobile, Citi, Regions Bank Locations: China, India, Brazil
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