CLOSING BELL
Ain't Nothin Spooky In Friday Trade
It was a green end to a long week, markets climbing Friday following Amazon’s industry-leading earnings beat.
HAPPY HALLOWEEN
It was a big October. All three major indexes closed the month well within the green. The Nasdaq was up 4% for the second consecutive month in a row, and rounding out with fresh Mag 7 tech earnings helped seal the deal.
Amazon was leading tech higher, the market waking up to the reality that it was a major cloud provider as well as a box mover.
In Macro, Dallas Fed President Lorie Logan said a weak jobs market does not mean the Fed should cut rates willy-nilly. arguing that the risk of a slowing job market didn't justify swerving away from the task of corralling inflation.
Speaking at a conference in Dallas Friday morning, Logan said inflation is still nowhere near 2%, so he doesn’t want to cut when employment isn’t even rising all that much. Kansas City Fed Prez Jeff Schmid said if he had his way, we would not have cut rates this week at all! No one tell the old heads investing in the Dow Jones Industrial Average.
Today’s RIP: Amazon, Apple, MSTR trending after reports, Consumer demand and inflation driving up household good prices, and more.
7 of 11 sectors closed green. Discretionary $XLY ( ▲ 2.64% ) Utilities $XLU ( ▼ 0.69% )lagged.
$SPY ( ▲ 0.33% ) $QQQ ( ▲ 0.48% ) $IWM ( ▲ 0.56% ) $DIA ( ▲ 0.14% )
TRENDING STOCKS
Amazon $AMZN ( ▲ 9.58% ) surged Friday, lifting broader markets after delivering blockbuster earnings. It hit a record high close. The company reported $180 billion in quarterly revenue, surpassing expectations and marking a 20% year-over-year increase in AWS datacenter services. It was the fastest growth for the segment in three years.
AWS acceleration says one thing to traders: cloud servers and data centers, which might as well mean AI. Analysts noted that Amazon’s retail margins also improved, driven by logistics efficiencies and Prime engagement. On the earnings call CFO Brian Olsavsky emphasized Cap EX investment in generative AI, and automated package fulfillment, highlighting “record-breaking operational throughput” across North America.
Apple $AAPL ( ▼ 0.38% ) edged lower after reporting $102 billion in Q4 revenue. While overall topline growth remained strong, iPhone sales missed expectations, and China revenue declined by $2 billion. The shortfall was attributed to competitive pressures and macro headwinds in the region.
MicroStrategy $MSTR ( ▲ 5.87% ) rallied after posting a surprise $2.8 billion profit, reversing a trend of consistent quarterly losses. The company, known for its aggressive Bitcoin accumulation strategy, benefited from crypto market strength and strategic asset revaluation. Executives reiterated their bullish stance, forecasting Bitcoin to reach $150,000 by year-end.
First Solar $FSLR ( ▲ 14.28% ) climbed 13% despite issuing a lowered forward outlook. The company nearly doubled its profit compared to last year, driven by strong module shipments and favorable pricing. Thursday’s earnings call revealed cautious optimism, with management citing temporary delays in the timelines of utility-scale projects. However, the stock rallied after analysts issued nine buy ratings, citing long-term tailwinds from IRA incentives and global decarbonization mandates.
SCARY DROPS
Weak Consumer Demand Hits Household Goods Maker
(Photo by Jaque Silva/NurPhoto via Getty Images)
Newell Brands $NWL ( ▼ 27.97% )dropped after cutting its full-year EPS forecast to $0.56–$0.60 and warning of deeper macro pressures. Q3 sales fell 7%, missing expectations, with revenue at $1.81B vs. $1.89B estimates. Operating cash flow was lowered to $250M–$300M, and tariff costs rose to $180M. CEO Chris Peterson cited weak retailer inventory, Brazil slowdown, and rising costs as key headwinds.
The stock was one of the lowest falling names above a $1B market cap in the entire world, after gross margins were hit hard by tariffs and inflation. No one wants to buy Coleman grills, Sharpie markers, or Rubbermaid, for that matter, when prices on coffee are climbing, apparently. CEO Chris Peterson said he expects a $180M hit from tariffs this year, up from its previous estimate of $155 million, made just two months ago.
“These trade disruptions have affected short-term consumer and retailer behavior,” Peterson said during a post-earnings call. “We sold incremental distribution and promotions in tariff-advantaged categories, and we took pricing actions where necessary to offset the tariff costs.”
It’s not just pens and Papermate: this year, chocolate prices for trick-or-treating have crept higher, up 20% from last year and 78% in five years, according to Circana and the BLS.
POPS & DROPS
Top Stocks News Stories
- U.S. oil production hit record 13.8M barrels/day in August.
- Apple seen entering next growth phase via AI.
- Coinbase CEO says firm is becoming AWS for crypto.
- Trump offered tariff cuts if China curbs fentanyl exports.
- Cabaletta Bio surged 45% on bullish Cantor forecast.
- Roku rose 7% after strong earnings and outlook.
- FDA to ease review for gene therapies.
- Bitcoin faces pullback warning amid trend reversal.
- Nvidia CEO hopes to resume Blackwell chip sales to China.
- Cloudflare rose 13% after upbeat guidance and earnings.