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Good morning.
I'm John Tucker and I'm Karen Moscow. Here are the stories we're following today.
Karen, let's begin with mixed results from high tech. Shares of Apple right now down one point one percent in early trading. Apple says total sales in the December period are going to rise by a percentage in a low to middle single digits. Analysts have been projecting a seven percent increase. Apple CEO Tim Cook says he was happy with the recent quarter.
iPhone grew in every geographic segment, marking a new September quarter revenue record for the category, and services set an all time revenue record up twelve percent year over year. We also set September quarter segment revenue records in the Americas, Europe, and the rest of Asia Pacific, as well as in a large number of countries.
Apples CEO Tim Cook also wing on the stock this warning. The company posted a decline in China revenue last quarter, falling short of estimates.
Well on the flip side, John, Amazon shares are at more than five and a half percent. Total third quarter revenue increased eleven percent to almost one hundred and fifty nine billion dollars. Operating profit was seventeen point four billion, demolishing the average estimate by two point of two point seven billion dollars or by two point seven The company has been spending heavily on the new data centers required
for the boom and demand for artificial intelligence services. CEO Andy Jasse says investors will see that spending payoff in the long run.
It is a really unusually large, maybe once in a lifetime type of opportunity, and I think our customers, the business, and our shareholders will feel good about this long term that we're aggressively pursuing it.
And let's say, CEO Andy Jasse's years long push to cut costs and streamline Amazon's logistics operation have paid off.
And here's an Intel They're of more than five percent pre market. The chipmaker forecast fourth quarter revenue above estimates, so the sparking optimism the company can win back some of its lost market share. Intel, once the industry leader in computer processors, is now working to preserve cash to fund a turnaround plan. And we spoke with the Intel CEO Pat Gelsinger.
We've taken these steps this quarter and restructuring and getting our costs where they need to be.
Here we have the capacity to go on the journey.
In the prior quarter, the CEO Pat Gelsinger cut jobs, slash spatting, and suspended investor payouts.
Well, Johnny. Earnings continue this morning with Big Oil on tap, and today we hear from Exon Mobile. We get a preview from Bloomberg's town.
Busby Exon Mobile. Investors will likely focus on the company's ongoing production growth, especially in the Permian basin of West Texas and New Mexico and in Guyana. Also in focus recent cost cutting initiatives that are expected to give profitability a boost despite slightly lower crewde prices. Bloomberg consensus calls for revenue of eighty seven point two billion dollars and adjusted earnings per share of a dollar eighty seven. Tom Busby Bloomberg Radio.
Thanks Tom, and speaking of oil crude oil on the rise this morning. This follows a report that Iran could be preparing an attack on israel axios setting Two Israeli sources say Tearan is planning a strike through militious that it backs in Iraq and as we check Brant the International benchmark up two point six percent. Seventy four is seventy five of barrel, nine mixed crews seventy one to twenty two of barrel. That's up a two point eight percent.
Well, John Boeing shares they're also on the rise. They're up two point three percent. The planemaker and union leaders representing thirty three thousand striking workers reached a tentative agreement and a lengthy labor dispute that's been crippling the company's commercial airplane manufacturing. The agreement would boost wages by thirty eight percent over four years and give workers a twelve
thousand dollars signing bonus if approved. The union says members will vote Monday on the new contract offer.
Speaking of jobs, Karen, this morning, we're going to get the latest reading of the labor market with the October jobs report. Let's get a preview right now from Bloomberg's Michael McKee.
The payroll's number is something of a black hole for October. The Boeing strike will take some workers out of the numbers, as will Hurricanes Helene and Milton, but nobody knows how many will fall out. Bloomberg Economics estimates it could be as many as one hundred fifty thousand, which would produce a negative payroll print for the first time since the pandemic. At the other end of the spectrum, Steve Vershudo of MIZZUO says one hundred and eighty thousand jobs, just over
the average of the past six months. ADP on Wednesday reported finding two hundred and thirty three thousand new jobs. The mystery will be answered at eight thirty Eastern time. Michael McKee, Bloomberg Radio.
Orry, Michael, thank you now to the final days of the twenty twenty four presidential election campaign. Vice President Kamala Harris is aiming to shore up votes across crucial swing states, with most polls indicating the race is a toss up. Yesterday, in Nevada, Harris seized on Donald Trump's remark that he'd protect women if elected, whether they like it or not.
It is not the first time he has told us he does not believe women should have authority or agency over their own bodies.
Kamala Harris further called Trump's comments about women very offensive. The Vice president will rally tonight in Milwaukee, shall be joined by several musical guests, including rapper Cardi b. It comes after Harris secure the endorsement of basketball star Lebron James yesterday.
Donald Trump also heads to Wisconsin tonight, his campaigns touting a celebrity endorsement of its own. The YouTube star Jake pauls it looks to drum up support from young voters. The former president traveled across the Southwest yesterday attacking Harris while encouraging supporters to vote on Tuesday.
You have to stand up and you have to tell Kamala that you've had enough.
You can't take it anymore. She's horrible.
But despite those comments, Donald Trump's still sowing doubt in the election results should he lose. He insists he's poised for a runaway victory barring alleged voter fraud. And it comes as Trump announced he's suing CBS Broadcasting, alleging the network engaged in election interference when it aired different versions of a sixty minutes interview with the Vice President Harris. A network spokesperson says the lawsuit lacks merit.
Well John joined us for complete coverage of election results Tuesday night. It All cakes off at five pm Eastern with a special two hour edition of balance of power, following by Cost to Coast to Bloomberg Team coverage at seven pm. Get live election results and analysis with context Tuesday night on Bloomberg Radio, Television and the Bloomberg Podcast YouTube channel Time, and offer look at some of the other stories making news in New York and around the world.
And for that we're joined by Bloomberg's Michael Barr.
Michael, Good morning, Good morning Karen. Words of warning for North Korean troops training to fight for Russia inside Ukraine the US as those troops will be treated the same as Russians by the Ukrainian military. Secretary of State Antony Blincoln says around eight thousand North Korean troops and now station in the Kursk region of Russia.
Russia has been training DPRK soldiers in artillery ua these basic infantry operations, including trench clearing, indicating that they fully intend to use these forces in frontline operations.
Secretary Blincoln says they expect Russia to begin mobilizing these troops in the coming days. Crews are searching for bodies and stranded cars and sodden buildings as residents salvage what they can from ruined homes following monstrous flash floods in Spain that claimed at least one hundred and fifty eight lives. The death toll could rise more as search efforts continue.
An unknown number remains missing. Since the twenty twenty election, the Cybersecurity Infrastructure Security Agency has been doing everything possible to reassure voters and correct any disinformation about the integrity of the American vote. Accusations of tampering and ballot dumping
have made polling workers feel unsafe. CISA director Jen Easterly says seeing election workers subjected to threats, harassment, and in some cases forced to work behind bulletproof glass is very discouraging to her.
They're not faceless bureaucrats. There are friends, there are neighbors. We see them in the community every single day, and they're not doing it for pay or for glory. They're doing it because they believe in our democracy and they deserve respect.
Meanwhile, police in Portland, Oregon and Vancouver, Washington, are still looking for the suspect who set fires to voting drop boxes. A jury has been seated to hear the subway chocol case against Daniel Penny, with opening statements scheduled for today. The jury is compromised of seven women and five men, including four people of color. The defense use their challenges to strike at least ten people of color. Daniel Penny, a white marine veteran, pleads not guilty demandslaughter and criminally
negligent homicide. He put a black man acting erratically in a New York City subway car into a fatal choke hold last year. Witnesses say the man, Jordan Neely, had been shouting and demanding money. Global news twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr. This is Bloomberg Karen.
Sorry, Michael Barr, thank you. It is time now for the Bloomberg Sports Update, brought to you by Tri State Outye. Here's John Stamshower. John, good morning, Good morning Karen.
Throughout October course, the New York baseball teams provided almost daily excitement of both their seasons ended with losses to the Dodgers. The NFL teams in New York not so good, both with two and six records begin Week nine, but on the final night of the month and met Live Stadium, the Jets got a much needed win and in their five game loser, three being in the Texans twenty one to thirteen, with Aaron Rodgers throwing three second half touchdown passes.
The first two went to Garrett Wilson and both catches were made with one hand. The second one and especially highlight reel grab that came out of third and nineteen, was originally ruled out of bounds with James Don replay. Here was Wilson after the game.
First one is just a drag route and Aaron, you know, comes to me late in progression and I got to make a play and luckily it blew wide open. After I caught the ball, Let's go to score a touchdown, you know, the second one, third down, and he trusted me to go and make a play again rights, he comes to me, it's it's kind of a down that no one expects to convert, and you know that can't be our mindset. We're the only ones I thought we were gonna convert.
There also the first Jets touchdown for Devonte Adams. He came out of concussion protocol to score the final TV first win for the new Jets coach Jeff Obrick. The Houston qb CJ Stroud, just eleven of thirty two and six Giants are back in met Life on Sunday to play the six and two Washington Commanders big game of the NFC North six and one Detroit at five and
two Green Bay. The Packers may have their QB Jordan Love despite leaving last week's game with injured groen, he was back at practice yesterday and Baltimore Lamar Jackson has not practiced yet this week. Said to be nurse I mean back in knee injuries. As for those Dodgers, they'll be honored today in La at parade a ceremony at
Dodger Stadium. Freddie Freeman figures to get the biggest ovation, had one of the greatest World Series ever to spite an ankle injury, and now ESPN reporting Freeman's also playing with a broken rib. World Series ratings on Fox HIA since twenty seventeen averaging almost sixteen million viewers. Last year's World Series drew an average of nine million. John Stashedward Bloomberg Sports, Karen.
And John.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
And I'm John Tucker in the Bloomberg Interactive Brokers studios this morning, where it is coming up on five thirteen on Wall Street, Apple and Amazon delivering earnings after the close up regular trading and pre Marcus shares of Apple they are down over one percent. Amazon shares are up over five percent. Let's break down the results now with Bloomberg's critic. Pretty good morning, thanks for being with us. With Apple sales, China regulatory concerns, where do you want to start?
Yeah, let's start with the China piece, because that seems to be the biggest takeaway from the Apple story. Yes, iPhone revenue grew in every single region, and that's kind of the top line from Tim Cook's comments post earnings, But it's that China story that really matters here simply
because that's their growth market. That's where Apple's trying to not only secure some of their supply chains, which they have partially moved to India, by the way, but that's also where they're trying to access their consumer at a time when they're also doing a little bit of the catch up trade on AI. Those both of those concepts are kind of married in what happened about six weeks, well almost two months ago now I'm thinking about it.
When it came to the latest iPhone launch, I think it was early September, September ninth, if memory serves me right, when just twenty four hours later, Huawei launched their own kind of latest smartphone as well, And I think that speaks to this idea that the market share that Apple was trying to gain in China has kind of been cannibalized by the Whahwei rival and the Wahwei product, and that's really what's eating into these margins. Nevertheless, it looks
like they are still selling their products. People are still buying it, and for that reason, you're not seeing Apple shares down this morning as much as perhaps expected.
The Apple intelligence features is that captured in the September quarter.
It's not quite yet.
And remember this is one of the things that has been a little bit of a handicap for the stock, or an overhang for the stock, and that when you're comparing it to some of the other big tech names Microsoft, Amazon, Alphabet even though they are very different businesses from Apple, they are still trading higher on this kind of AI trade. Apple has been the notable laggard simply because they haven't been able to really kind of capitalize on that technology.
And they've only just now released that AI technology in some of their latest updates for the iPhone. So it's not going to show up in this latest quarter, but it might in the next view.
Apple Services, you got to explain to me what that is and how's it doing that end of the business.
Oh, I love this, so Apple Services personal obsession. And the reason I say this, you've tapped into a rich area, John Tucker. I say this because this was really crucial data and crucial revenue for Apple during the pandemic. And Apple Services is basically every time you go into the Apple Store, you get your screen fixed, you get a Apple update, you need some help from kind of the genius bar that among several of the other kind of app functions comes under the umbrella of Apple Services and
makes up about a third of their revenue. And during COVID, that's the part that really tainked because nobody was going into Apple. So from a macro signal, which is kind of how I like to look at it, it's very crucial for Apple's kind of mobility story because Apple, at the end of the day, it's a hardware company, but it wants to be more than that.
Okay, let's move on to Amazon. Now, of six percent pre market I seem to be several pillars. You have e commerce, advertising, cloud services. How did they deliver? Get about a little bit more than.
A minute, let's talk about AWS. I think that's the takeaway here. Remember I on Weber Amazon Web Services. This is the number two player in the cloud space, second to Microsoft's Asia. The top line you need to know, and one number is thirty eight percent. That's the margin of revenue that Amazon is making on their cloud unit, and it is the highest record margin they've made going all the way back to Data in twenty fourteen. By comparison,
Alphabet's cloud unit is trying to keep up. They're trying to break into this and their margin is only seventeen percent. So that's where Amazon is really wowing investors.
And they cut costs. It's not just cost cutting, it's kind of an effort I guess, to reallocate resources real quick. How did that work out?
They're still in the process where they have a logistics unit that hasn't been doing as well, so they're in the works of it, but the e commerce results coming in stronger than expected as well.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Low Street to Washington and beyond.
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I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg day Break.