Anti-Clickbait News Summaries for October 31, 2024
BYD surpasses Tesla in quarterly revenue for the first time
Hi, it’s Jack again with your daily news summaries 😇
The Markets:
Futures Update
Crude Oil: $69.07 ▲ +0.46 (+0.67%)
Natural Gas: $2.8150 ▼ -0.0300 (-1.05%)
Gold: $2791.20 ▼ -9.60 (-0.34%)
Dow: 42158.00 ▼ -205.00 (-0.48%)
S&P 500: 5815.50 ▼ -36.50 (-0.62%)
Nasdaq 100: 20388.75 ▼ -146.00 (-0.71%)
Russell 2000: 2245.40 ▼ -1.90 (-0.08%)
Summary: Futures faced broad declines across indices, with energy prices mixed as crude oil edged up slightly while natural gas continued its decline.
Forex & Bonds Update
EUR/USD: 1.0869 ▲ +0.0013 (+0.12%)
USD/JPY: 152.72 ▼ -0.69 (-0.45%)
GBP/USD: 1.2972 ▲ +0.0010 (+0.08%)
BTC/USD: $72,238.00 ▼ -92.00 (-0.13%)
5-Year Treasury: 4.127 ▲ +0.023 (+0.56%)
10-Year Treasury: 4.266 ▼ -0.008 (-0.19%)
30-Year Treasury: 4.48 ▼ -0.039 (-0.86%)
Summary: Currency pairs showed slight moves with a stronger dollar against the yen, while bond yields saw mixed reactions, with longer maturities dipping slightly.
Major Stock Changes
MSFT: ▲ +0.13%
GOOGL: ▲ +2.82%
GOOG: ▲ +2.92%
NVDA: ▼ -1.36%
AAPL: ▼ -1.53%
SHEL: ▲ +0.46%
COIN: ▼ -3.61%
META: ▼ -0.25%
AMZN: ▲ +1.00%
EL: ▼ -1.80%
BUD: ▼ -1.64%
LLY: ▼ -6.28%
TTE: ▼ -0.72%
SMCI: ▼ -32.68%
SBUX: ▼ -0.07%
CMCSA: ▲ +0.40%
Summary: Technology stocks were mixed, with Alphabet showing a strong gain, while biotech giant Eli Lilly took a hit, and Super Micro Computer faced a steep decline.
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Report finds Elon Musk's platform struggles to counter US election misinformation
A report by the Center for Countering Digital Hate found that Elon Musk's social media platform, X, is not effectively countering misinformation about the US elections. The platform's Community Notes feature failed to display corrections for 74% of misleading posts analyzed.
The report highlighted that misleading claims, such as those about the 2020 presidential election being stolen, often went unaddressed. When corrections were available, the original misleading posts received significantly more views than the notes.
X's Community Notes feature, launched in 2021 and renamed by Musk in 2022, allows users to contribute fact-checks. Despite claims of effectiveness from X's product vice president, critics argue the feature does not adequately address the spread of misinformation.
MicroStrategy plans $42 billion Bitcoin purchase as CEO promotes crypto for corporate balance sheets
MicroStrategy CEO Michael Saylor announced a plan to promote Bitcoin as a treasury reserve asset during the company's third-quarter earnings call. He believes Bitcoin can improve the financial health of companies by fixing balance sheets.
The company revealed it purchased nearly 26,000 Bitcoin for about $1.6 billion, increasing its total holdings to over 252,000 Bitcoin, valued at $18.23 billion. MicroStrategy plans to raise $42 billion over three years to buy more Bitcoin.
Despite the strong investment strategy, MicroStrategy reported a wider net loss of $340 million compared to $143.4 million last year. Bitcoin's current price is $72,173.91, while MicroStrategy's stock fell 4.23% to $247.31.
Petrobras plans $110 billion investment boost for 2025 to 2029
Brazil's Petrobras plans to increase its investment to $110 billion from 2025 to 2029, an 8% rise from earlier projections. The current discussion centers around an investment of about $107 billion, with adjustments still pending.
Previously, Petrobras aimed to spend $102 billion between 2024 and 2028, focusing $73 billion on oil and gas exploration. Earlier this year, the company reduced its 2025 spending from $21 billion to $17 billion to align with its financial resources.
Petrobras is shifting its strategy to diversify its portfolio and focus on profitable assets. The company aims to boost production from existing fields and increase gas supply, while also adding 500,000 barrels per day in production capacity by year-end.
Experts warn of risks and benefits as artificial superintelligence approaches
Experts warn that artificial superintelligence (ASI) could soon surpass human intelligence, fundamentally changing society. Unlike current AI, which excels at specific tasks, ASI would operate at digital speeds, potentially solving complex problems much faster than humans.
While ASI could offer significant benefits, such as curing diseases and addressing climate change, it also poses risks if not aligned with human values. For example, an AI tasked with eliminating cancer might take extreme actions that could threaten all biological life.
The development of ASI raises urgent questions about governance and ethics. Ensuring that superintelligent systems benefit humanity requires investment in safety research and international cooperation to create ethical frameworks for its development.
Shell launches $3.5 billion share buyback program to reduce capital
Shell plc has launched a $3.5 billion share buyback program, set to last about three months. This initiative aims to reduce the company's issued share capital, with all repurchased shares to be canceled.
The buyback will be executed through two contracts with a single broker, covering both London and Netherlands exchanges. The maximum number of shares to be repurchased is 525 million, in line with shareholder authority granted earlier this year.
Shell plans to complete the program before announcing its Q4 2024 results on January 30, 2025. The buyback will comply with UK regulations and market abuse laws.
Switzerland faces deflation risks as strong franc complicates inflation management
Switzerland faces potential deflation risks as the strong Swiss franc complicates efforts to manage inflation. The Swiss National Bank cut interest rates for the third time this year, lowering its inflation forecast for 2024 to 1.2%.
Analysts suggest that the central bank may need to intervene in foreign exchange markets to stabilize the franc and prevent deflation. The franc has recently reached near-record highs, contributing to a decline in inflation, which fell to 0.8% in September.
The Swiss National Bank's chairman indicated that currency intervention could be considered alongside interest rate adjustments. Current forecasts predict inflation could drop to as low as 0.1% in the coming months.
Gold prices hit record high as investors seek safety before U.S. election
Gold prices reached a record high on Thursday, climbing to $2,790.15 per ounce. This increase is driven by safe-haven demand ahead of the U.S. presidential election, with prices up 6% for the month.
Investors are awaiting the U.S. inflation report, which could influence the Federal Reserve's interest rate decisions. A quarter-point reduction in short-term borrowing costs is expected next week.
Other precious metals also saw movement, with silver down 0.3% to $33.68 per ounce. Meanwhile, manufacturing activity in China showed signs of growth for the first time in six months, indicating potential economic recovery.
Source: https://www.cnbc.com/2024/10/31/safe-haven-gold-on-track-for-best-month-in-seven.html
China's manufacturing index rises to 50.1 in October after five months of decline
China's key manufacturing index turned positive in October, rising to 50.1 after five months of decline. A reading above 50 indicates growth, marking the first improvement in the index since May.
The production subindex reached a six-month high of 52.0, while new orders returned to 50.0. Other subindices, including employment and purchases, showed smaller declines compared to the previous month.
Non-manufacturing activity also increased to 50.2, up from 50.0 in September. This change follows the central bank's recent measures to stimulate the economy, including lowering reserve requirements and interest rates.
SpaceX marks 200th Starlink mission with successful launch from Florida
SpaceX successfully launched its 200th Starlink mission on Wednesday, sending 23 satellites into low Earth orbit from Florida. This milestone highlights the company's ongoing efforts in satellite deployment for global internet connectivity.
With over 7,000 Starlink satellites launched, SpaceX now provides low-latency internet to more than 4 million users worldwide. CEO Elon Musk congratulated the team on this achievement via social media.
SpaceX is seeking approval from the Federal Communication Commission to deploy next-generation satellites at lower altitudes, which could enhance bandwidth and reduce latency. The new satellites will require the Starship launch vehicle, currently in development.
Cerus Corporation reports Q3 2024 earnings and business updates
Cerus Corporation reported its Q3 2024 earnings on October 30, 2024. The company highlighted recent business developments alongside its financial results for the quarter ending September 30, 2024.
Key executives, including CEO Obi Greenman and CFO Kevin Green, participated in the earnings call, which included a presentation and a question-and-answer session.
The company also issued a press release detailing its financial performance and business highlights, available on its website.
Zombie foreclosures remain low in the U.S. as housing market strengthens
In the fourth quarter of 2024, about 1.4 million residential properties in the U.S. are vacant, maintaining a vacancy rate of 1.3%. This figure is similar to the previous quarter and slightly higher than last year.
Foreclosures have decreased, with 215,601 properties in the process, down 3.3% from the third quarter and 32.8% from a year ago. Among these, approximately 7,100 are classified as zombie foreclosures, a slight increase from the last quarter but a 20.2% drop from the previous year.
Zombie foreclosures now represent just one in 14,591 homes, a significant decline from one in 11,412 last year. This trend reflects a broader recovery in the housing market, with fewer abandoned properties impacting local neighborhoods.
AMD CEO Lisa Su sees diverse opportunities in $500 billion AI computing market
AMD CEO Lisa Su expressed confidence in the company's future in the artificial intelligence market during a recent CNBC interview. She highlighted the evolving nature of AI compute technology, stating that there is no universal solution for computing needs.
Su projected that the total market for data center AI could reach $500 billion by 2028, covering various computing requirements. She acknowledged the advancements in AI models but noted that improvements are still possible.
Despite a recent drop in AMD's stock price, analysts remain optimistic about the company's potential to gain market share against competitors like NVIDIA. AMD's third-quarter results indicate strong growth in its AI business.
BYD surpasses Tesla in quarterly revenue for the first time
BYD, a Chinese electric vehicle manufacturer, has surpassed Tesla in quarterly revenue for the first time. From July to September, BYD reported over 200 billion yuan ($28.2 billion), a 24% increase from last year, while Tesla's revenue was $25.2 billion.
Despite the revenue lead, Tesla sold more electric vehicles than BYD in the same quarter. The growth in BYD's sales is attributed to government subsidies in China aimed at promoting electric and hybrid vehicles.
However, international backlash is growing against China's support for its car industry. The European Union has implemented tariffs of up to 45.3% on Chinese EV imports, following similar measures from the U.S. and Canada.
Source: https://www.bbc.com/news/articles/c4gm9j11mvdo
MicroStrategy reports Q3 2024 earnings with focus on operational results and financial metrics
MicroStrategy reported its Q3 2024 earnings on October 30, 2024. The company’s leadership discussed business and operational results, highlighting key developments in their performance compared to previous quarters.
CEO Phong Le presented the operational results, while CFO Andrew Kang detailed the financial outcomes. Executive Chairman Michael Saylor also contributed insights during the call.
The company emphasized its ongoing strategies and financial metrics, with a focus on non-GAAP measures. Further details and reconciliations are available in their earnings release on the MicroStrategy website.
Robinhood reports 112% surge in cryptocurrency trading volumes in Q3
Robinhood Markets Inc. reported a significant increase in cryptocurrency trading volumes, reaching $14.4 billion in the third quarter, a 112% rise from last year. October volumes alone surpassed $5 billion, indicating strong ongoing activity.
Cryptocurrency-related revenue also rose sharply to $61 million, up 165% year-over-year. However, total quarterly revenue of $637 million fell short of analyst expectations.
The company has expanded its offerings, recently launching presidential election event contracts available to all customers. Despite these developments, Robinhood's shares fell 12.4% in after-hours trading.
Corcept Therapeutics reports Q3 2024 financial results and corporate update
Corcept Therapeutics reported its Q3 2024 financial results on October 30, 2024. The company provided a corporate update alongside the earnings announcement, which is available on its website.
The complete financial results will be filed with the SEC in a Form 10-Q. The call included forward-looking statements about the company's plans and expectations, highlighting potential risks and uncertainties.
Participants in the call included company executives and analysts from various financial firms. A replay of the call will be accessible on Corcept's website.
Riot Platforms reports Q3 2024 earnings and discusses future strategies
Riot Platforms, Inc. reported its Q3 2024 earnings on October 30, 2024. The company held a conference call with executives discussing financial results and strategies. Key participants included CEO Jason Les and CFO Colin Yee.
The earnings call highlighted significant developments in the company's performance compared to previous quarters. Riot provided insights into its financial metrics and future plans, which are available on its Investor Relations website.
The call included a question-and-answer session with analysts from various financial firms. Participants were invited to discuss the company's results and outlook following the prepared remarks.
Everspin Technologies reports Q3 2024 earnings and discusses future MRAM technology plans
Everspin Technologies reported its Q3 2024 financial results on October 30, 2024. The results reflect the company's performance for the quarter ending September 30, 2024.
During the earnings call, executives discussed the company's expectations for future business and financial performance, emphasizing the adoption of MRAM technology.
The call included forward-looking statements about Everspin's product pipeline and business plans, highlighting potential risks and uncertainties that could affect actual outcomes.
Microsoft CFO says OpenAI investment will reduce profits by $1.5 billion this quarter
Microsoft's CFO announced that the company's investment in OpenAI will reduce profits by $1.5 billion this quarter. This loss is primarily due to OpenAI's expected $5 billion loss this year, despite generating $4 billion in revenue.
Microsoft has invested nearly $14 billion in OpenAI, which has driven significant revenue growth for the company. However, OpenAI's financial struggles have raised concerns, leading Microsoft to explore alternatives for its GitHub products.
Despite the losses, Microsoft reported strong earnings and revenue for the fiscal first quarter. The company remains committed to its partnership with OpenAI, emphasizing the benefits of their collaboration.
Meta trains Llama 4 AI model on record GPU cluster with over 100,000 chips
Meta is advancing its generative AI efforts with the upcoming Llama 4 model, which is being trained on a GPU cluster larger than any previously reported, exceeding 100,000 Nvidia H100 chips. This marks a significant increase from the 25,000 chips used for Llama 3.
The company plans to launch Llama 4 early next year, focusing on enhanced capabilities like stronger reasoning and faster performance. Meta's Llama models remain popular for their open-source nature, allowing startups and researchers to access them freely, unlike proprietary models from competitors.
Meta's investment in AI infrastructure is expected to reach $40 billion this year, a 42% increase from 2023. Despite rising costs, the company reported a 22% increase in sales, primarily from advertising, which may help subsidize its AI initiatives.
Source: https://www.wired.com/story/meta-llama-ai-gpu-training/
Meta develops AI search engine to challenge Google and Bing
Meta is developing its own AI search engine to replace Google and Bing within its Meta AI tool. This move aims to enhance user interaction and reduce reliance on traditional search engines as AI technology evolves.
The company has partnered with Reuters to include news content in its platform. Other companies, like OpenAI, are also creating their own search systems, indicating a shift towards AI-driven search experiences.
This development is part of a broader trend towards "agentic AI," which can operate autonomously and make decisions without human input. New models are emerging that enhance AI capabilities in reasoning and adapting to real-time changes.
Source: https://www.forbes.com/sites/johnwerner/2024/10/30/the-ai-search-wars-are-heating-up/