Dodgers Win World Series; Microsoft & Meta Shares Fall

Bloomberg Audio Studios, Podcasts, Radio News.

Good morning, I'm Nathan Hager and I'm John Tucker. Here are these stories we're following today.

John will have much more on the markets and the latest reaction to Microsoft and Meta earnings, but we begin this morning with sports. The Los Angeles Dodgers have been crowned World Series champions thanks to a colossal meltdown by the New York Yankees. Let's get the latest with Bloomberg's John stash Hour. Good morning, John, Good morning Nathan.

The Yankees looked very much like they were going to be heading back to Los Angeles Game six tomorrow, fifth inning and they led five to nothing. They had hit three home runs and the Dodgers hadn't had a hit. But then came a series of Yankee blunders.

And it's line to son of field charging Judge mc hey dropped the ball and throws to second. I'm too late, so that'd be an era on Judge, the first time I've seen him.

Dubble ball wfan. Then came an air on Anthony Volpi, and then what should have been the third out without a run I've scored, but Garrett Cole failed to cover first base. Dodgers was scored five hundred and runs to tie the game, took the lead of the eighth one seven to six, and won the World Series four games to one. John stashed Awa Bloomberg Sports.

All right, John, thank you, and you'll be back in a few minutes for more details, as well as postgame reaction from Yankee Stadium and Nathan.

Let's turn to the markets, who are seeing negative reaction to earnings from two tech heavyweights. Nasdaq futures down one percent. Let's start with Microsoft. Those shares downright now three point seven percent of the pre market profit and revenue did top analyst forecast, with the software maker forecast slower quarterly cloud revenue growth. Analysts say that reflects struggles to bring data centers online fast enough to keep up with demand

All up, our AI business is on track to surpass an annual revenue run rate of ten billion dollars next quarter, which will make it the fastest business in our history to reach this.

Microsoft CEO Sancha Adellas's capital expenditures in the first quarter were at fourteen point nine billion dollars. That's of fifty percent from a year earlier, at exceeded analyst expectations.

Of course, John, We're also watching shares of Meta platforms. They're down four percent in the pre market. The Facebook owner is warning of worsening losses as CEO Mark Zuckerberg ramps up heavy investments in AI and other futuristic technologies. We get the story from Bloomberg's Charlie Pellett.

It continues a year's long tug of war between the company's long term bets and the core advertising business that provides the vast majority of Meta's revenue. Zuckerberg warned investors that Meta will continue to spend significantly on infrastructure and other projects like the Metaverse and AI powered glasses efforts. He believes our core to the company's future that will be supported by the ads business, which is not generating the kind of momentum Wall Street expected in New York.

Right, thanks Charlie, and the high tech earnings they continue this afternoon. Apple and the Amazon both report and after the close it regular trading today. Let's go to preview now from Bloomberg's Tom Busby.

At Apple, the keeper investors sales of its latest smartphone, the AI capable iPhone sixteen, as well as its latest air pods and smart watches. Investors will also want to hear the latest guidance on its AI initiatives, called Apple Intelligence. At Amazon, the big focus will be on its cloud computing unit and whether all the money is spent on AI technology is going to boost revenues at Amazon Web Services.

Radio, Okay, tom thank You. Some other stocks on the move following earning. Shares of Roku are down fourteen percent. The maker of streaming TV set top boxes says it's no longer going to report the number of households that use its products each quarter. Robinhood share They're down more than ten and a half percent. The brokerage reported revenue that missed analyst estimates, and eBay is down more than

In Asia, the Bank of Japan kept its benchmark interest rate unchanged. BOJ also maintaining its view that it's on track to achieve its inflation target. That does suggest a possible rate hike in the coming months. The end strengthening this morning of about six tenths of a percent, just over one fifty two.

Let's turn to the latest now on the presidential race, John. As the campaign heads into its final stretch, Donald Trump is seizing on a comment from President Biden where he seemed to call Trump supporters garbage.

How do you like my garbage truck?

This truck is an honor of Kamala and Joe Biden.

The former president rolled into Wisconsin aboard a white garbage truck with the words make America great Again in red on the side. Trump says he doesn't know the comedian who sparked the garbage flat by calling Puerto Rico a floating island of garbage at last weekend's Madison Square Garden rally. President Biden has tried to clarify his remarks, but Trump leaned into them at a rally in Green Bay, Wisconsin last night.

My response to Joe and Kamala is very simple. You can't lead America if you don't love Americans.

That's true and from the President. Trump was joined at the Green Bay rally by a hometown legend, retired Packers quarterback Brett farre.

Okamala Harris held her own Star instud At rally in Madison, Wisconsin, featuring indie rock musicians from the band's Mumford and Sons, and the National The Vice President urging voters to turn the page on Donald Trump.

Folks are exhausted and want it to stop the pointing fingers.

It is time that we start locking.

Arms together as a people who rise and hall together.

Vice President Harris also held e Vinci in Harrisburg, Pennsylvania ad Raleigh, North Carolina. Earlier, she tried to distance herself from President Biden's comments.

Of all, he clarified his comments, but let me be Claire. I songly disagree with any criticism of people based on.

Who they vote for, Kamala Harris, noting that the President said he meant to say Trump supporters rhetoric is garbage. Today, both the Vice president and former President Trump will be in the sun Belt with dueling campaign stops in Arizona and Nevada, which is five days to go until the election.

As for President Biden, he is sending mediators to Israel to try to broke a truce in Lebanon Prime Minister Benjamin Natanya, who met with AIDS late Tuesday to discuss the latest proposal. Today, he'll talk about it with the White House's senior Middle East envoys, Brett McGirk and Almos Hokstein. The new plan calls for a sixty day pause in fighting to ensure Hesbola doesn't receive any more weapons from Iran and moves farther away from the northern Israeli border.

All right, Thanks Nathan. Five seven on Wall Street and it's tundown for a look at some of the other stories making news in New York and around the world. Dan for that, We're joined by Bloomberg's Michael Parr. Michael, good morning, Good morning, John. Defense Secretary Lloyd Austin says North Korean troops have been outfitted with Russian uniforms and equipment, and there is a good likelihood that those troops will

Ukrainian soldiers have the right to defend themselves and they will do that with the weapons that we provided and others have provided.

That's to be expected. Secretary Austin met at the Pentagon with South Korea's Defense Minister Washington says thousands of North Korean fighters could be on the front lines within weeks. North Korea has launched a new intercontinental ballistic missile, in its first test in almost a year of a weapon design to threaten the US mainland and occurring days ahead of the US election. North Korean media said lead to Kim joan un ordered. Today's missilet has to show North

We can describe the suspect that we believe is connected to all three cases as a white male between the ages of thirty and forty years old, faulding or very short hair, medium to thin build, dark shirt, thin face.

Police spokesman Benner says they believe their suspect may intend to continue targeted attacks. It is now a top priority for the FBI. New potential path to freedom for the Menendez brothers. Days after announcing that he's asking the court to be re sentenced the brothers, Los Angeles DA George Gaskin is requesting clemency from California's governor, but freedom is still not guaranteed for the brothers. Managing partner of the

When we're talking about an application for clemency, we know that with having the DA support is important because if the DA actually believes that you should have your sentence community, that's going to go strongly with the governor when he considers it.

Lawyer Channe Lloyd spoke to ABC Global News twenty four hours a day and whatever you want it with Bloomberg News Now. I'm Michael Barr, this is Bloomberg.

John, Thank you, Michael, and the Princess to five ten on Wall Street turned out for the Bloomberg Sports Update bront to you by Tri State. Out of half of that we bring in John staff sharer John Good morning.

Yeah, good morning John. World Series Game five in the Bronx had a great Yankee start, the Aaron Judge hom run that everyone's been waiting for. He went back to back with Jazz Chisholm John Carlos Stanton his seventh homber of the postseason. The Yanks led the Dodgers five to nothing in La was hitless against Garrett called top of the fifth and eight may go down as the most nightmarish in Yankee history. Continued it took place in the World Series. Judge, who had earlier made a sensational catch

Miss and the Dodgers are World Series champions. They storm out of the dugout third base side and mob walker Buehler.

The ESPN first championship for LA since twenty twenty that was COVID. This is the first not in a shortened season since nineteen eighty eight. Afterwards, Iron Brewin obviously asked about that fifth inning, including the play at first base.

Mookie hits the squibver so Riz couldn't really run through it, you know, he kind of had to stay there and make sure he secured the catch because of the spin on the ball. And I think just you know, Garrett just all that he went through in that inning, kind of spent and kind of almost working his way out of it, just didn't react quick enough to get over.

Boon did win his first pennant as a Yankee manager, but not the World Series. Nicks in Miami got forty four points from Karl Anthony. Towns beat the Heat one seventeen one oh six, next one in Memphis one nineteen one oh six. Celtics first loss. It came in overtime at Indiana. Devil's won six nothing. Islanders lost to nothing in the two and six Jets host the six and two Houston Texans tonight, John Stash they were Bloomberg Sports. Nathan and Jones.

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. Good morning, I'm Nathan Hager.

We are seeing a disappointed investor reaction this morning to the two latest tech companies to report earnings. Microsoft as forecasting slower revenue growth in the cloud, while Meta Platforms plans to keep spending big on artificial intelligence. Now, the question for both companies is whether the payoff from AI is coming fast enough for more. We're joined by Dan I've senior equity research analyst at web Bush Securities.

Dan, Good morning.

A lot of the focus, of course on Microsoft is on the forecast for Azure cloud growth. Is too much data center demand? Too much of a good thing?

Good morning.

Hey, Look, I think this is one where the robust growth on cloud and AI is actually continuing. So I think any sort of negative knee jerk reaction I think is the wrong move because it just shows the momentums continuing. We're buyers and Microsoft here. It shows the AI revolution hitting the next stage of growth.

Does Microsoft, though, need to show more when it comes to the buildout look.

I think this is one where investors are always concerned that they're just there's going to be one quarter that you don't see it, But it's actually the opposite, and Microsoft has such good visibility. You're looking at massive growth. I mean, asure is something that it's two times bigger than anyone thought it was two years ago. So you start to see this all playing through. I think this is just the beginning of the next phase of the Microsoft growth story.

So where is Microsoft positioned at this point now? After the positive earnings that we saw from a Google parent alphabet, particularly in Google Cloud, is Google nipping at Microsoft's as your heels right now?

Look, I think this is a big enough otion from more than three boots in terms of Microsoft, Amazon, and Google. Google has definitely starting gain know al momentum, and I think that's clearly playing out. But that's not necessarily negative from Microsoft because the growth continues to be ultimating high than the street expected. You love knee jerk reactions in all these quarters. Meta of course Microsoft, but I think you look out twenty four hours a week from now.

Let's get two meta platforms and this warning from Mark Zuckerberg, the CEO, that the spending is going to continue and continue in a big way when it comes not just to AI but the metaverse. Still, how do you see Mark Zuckerberg's strategy when it comes to the future of meta.

Look, it is the right strategy. They are doub one down on a transformational and technology once in forty years, and I think for meta we could say sort of split hairs and some gonna be worried about spending, But that's the right move because it's the next group platform for meta and that's why. Look, Stock's been rocket ship. You'll have some of these knee jerk reactions, but this story is not done. It's actually just the next wave that will be AI fueled.

The next wave is coming after the close today when we hear from Apple and Amazon. Of course there's going to be a lot of attention on Amazon Web services now as well. What's the setup for the rest of big tech earnings in our final minute, Dan.

Yeah, I think you set up strong from Amazon. I think investors are not expecting too much, but yet I think actually Aws that's another part of the growth story, just like we saw the Google and Microsoft. So I think we're bullsh on Amazon, but there's a proof of quarter for them. For Apple. Look, it's all about showing iPhone sixteen. This is the beginning of that AI driven supercycle. It's not happened overnight, but when Cook talks, everyone listens.

This is Bloomberg Daybreak here morning podcast on the stories making news from Wall Street to Washington and beyond.

Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.

You can also listen log each morning starting at five am Wall Street time. I'm Bloomberg eleven three zero New York, Bloomberg ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide. That's serious XAM Channel one twenty one.

Plus listen coast to coast on the Bloomberg Business app now with Applecarplay and Android auto interfaces.

And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now, your favorite podcast platform to stay informed all day long.

I'm John Tucker and I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg day Break