Anti-Clickbait News Summaries for October 26, 2024
Amazon, Alphabet, and Apple prepare to report third-quarter earnings next week. Billionaires boost Bitcoin investments as forecasts suggest potential 200% rise.
Hi, it’s Jack again with your daily news summaries 😇
The Markets:
Futures
Crude Oil: 71.69, +1.50 (+2.14%)
Natural Gas: 3.0600, +0.0420 (+1.39%)
Gold: 2760.80, +11.90 (+0.43%)
Dow: 42,285.00, -320.00 (-0.75%)
S&P 500: 5,841.50, -7.50 (-0.13%)
Nasdaq 100: 20,476.00, +95.75 (+0.47%)
Russell 2000: 2,218.70, -12.30 (-0.55%)
Summary: Crude Oil and Natural Gas prices surged by over 2% and 1% respectively, while major indices like the Dow and Russell 2000 experienced declines.
Forex & Bonds
EUR/USD: 1.0792, -0.0036 (-0.33%)
USD/JPY: 152.24, +0.42 (+0.28%)
GBP/USD: 1.2954, -0.0021 (-0.16%)
BTC/USD: 66,850.00, +33.00 (+0.05%)
5-Year Treasury: 4.051, +0.032 (+0.80%)
10-Year Treasury: 4.232, +0.032 (+0.76%)
30-Year Treasury: 4.499, +0.034 (+0.76%)
Summary: The U.S. dollar strengthened against the Euro and Pound, while treasury yields rose across all maturities, indicating increased bond market activity.
Major Stock Changes
AAPL: +0.36%
TSLA: +3.34%
NVDA: +0.80%
MSFT: +0.81%
GOOG: +1.50%
GOOGL: +1.57%
AMZN: +0.78%
BA: -0.12%
TPR: +13.54%
META: +0.96%
CPRI: -48.89%
DECK: +10.57%
SAVE: +15.29%
SNY: +4.40%
AVGO: +0.96%
INTC: +1.52%
Summary: Notable stock movements include significant gains for SAVE (+15.29%) and TPR (+13.54%), while CPRI faced a sharp decline of nearly 49%.
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US approves $2 billion arms sale to Taiwan including advanced missile defense system
The United States has approved $2 billion in arms sales to Taiwan, including an advanced surface-to-air missile defense system. This marks the first time Taiwan will receive such technology, amid rising military threats from China.
Taiwan's presidential office expressed gratitude for the approval, highlighting the need to enhance defense capabilities under President Lai Ching-te. The sales package includes three National Advanced Surface-to-Air Missile Systems and radar systems.
China has not yet commented on the arms sales. Recently, China conducted military exercises near Taiwan, simulating blockades around the island, which saw a record number of Chinese military activities.
Elon Musk's two years of changes at X reshape social media landscape
Elon Musk purchased Twitter, now called X, on October 27, 2022, for $44 billion. Since then, he has made significant changes, including laying off thousands of employees and altering the platform's verification system, which now requires payment for a blue checkmark.
In 2023, X introduced new features like image flagging for AI-generated content and allowed longer posts for paid subscribers. The platform also faced criticism for increased misinformation and a decline in ad revenue, with many major advertisers pulling out.
By 2024, X implemented new policies, including charging new users a fee to post and allowing users to flag misinformation. The platform will soon block public accounts from being hidden when users are blocked, changing how privacy works on the site.
Qualcomm unveils Snapdragon 8 Elite chip to boost Android phone performance
Qualcomm has introduced the Snapdragon 8 Elite chip, set to enhance next year's Android phones with improved speed and AI features. Key upgrades include faster web browsing, better app switching, and a new camera feature that adds artificial light to selfies.
The Snapdragon 8 Elite will speed up web browsing and app performance by optimizing data handling. A demo showed significant improvements, with the new chip scoring 33.7 compared to last year's 16.1, enhancing overall user experience.
Another feature, Xpan, allows audio to switch from Bluetooth to Wi-Fi, reducing connection drops. This aims to improve audio streaming over longer distances and through obstacles, addressing common frustrations with wireless audio devices.
U.S. buyers face affordability crisis as income needed for homes jumps 86% since 2020
The Federal Reserve Bank of Atlanta reports a significant decline in housing affordability. Since January 2020, the U.S. median household income rose by 29.3%, but the income needed to afford a median home increased by 86.6%.
Home prices surged 53.4% from January 2020 to July 2024, driven by high demand during the pandemic. The average mortgage rate also jumped from 3.0% to over 6.5%, further straining affordability.
The rapid increase in home prices and mortgage rates has created a challenging environment for buyers, highlighting the disparity between income growth and housing costs.
Billionaires boost Bitcoin investments as forecasts suggest potential 200% rise
Billionaires are increasingly investing in Bitcoin, which has been trading around $68,000. An investment firm, Bernstein, predicts Bitcoin could reach $200,000 by the end of 2025, suggesting a potential 200% increase.
Notable investors include Michael Saylor of MicroStrategy, Mark Cuban, and Jack Dorsey. Hedge fund managers are also buying Bitcoin exchange-traded funds, with Millennium Management investing $2 billion in them this year.
Bernstein attributes the growing interest to a new era of institutional investment and Bitcoin's appeal as a hedge against economic uncertainty. Over 600 investment firms now hold significant Bitcoin ETF positions.
Source: https://finance.yahoo.com/news/billionaires-buying-cryptocurrency-could-soar-100000858.html
Americans to spend $11.6 billion on Halloween despite economic concerns
Americans are expected to spend about $11.6 billion on Halloween this year, nearly matching spending on children's books. This marks a significant increase from $3.3 billion in 2005, despite ongoing economic concerns for many families.
The rise in Halloween spending is attributed to inflation and population growth. Candy spending has nearly doubled in the past decade, with families now spending an average of $164 annually. Costume spending has also surged, reaching $3.8 billion this year.
Despite financial worries, about three-quarters of Americans plan to celebrate Halloween. The increase in spending reflects a growing trend in Halloween commercialization, with more adults and pets participating in the festivities.
Source: https://www.fastcompany.com/91217071/halloween-spending-consumers-financially-fragile
Zeta Global attracts attention ahead of earnings report as market shows strong performance
Zeta Global is gaining attention as it prepares for its upcoming earnings report. The company is seen as a strong performer in the current earnings season, which has generally exceeded expectations for S&P 500 companies.
Analysts are maintaining a positive outlook for the full-year earnings per share estimate for the S&P 500, projected to stay around $240. The outlook for 2025 also appears optimistic, reflecting confidence in continued growth.
This news comes amid a broader trend of better-than-expected earnings across major companies, indicating a robust financial environment as the third quarter concludes.
Cohere launches multilingual AI models and Denmark unveils supercomputer in latest AI developments
Cohere launched its new multilingual model family, Aya Expanse, which supports 23 languages. It includes an 8 billion and a 32 billion parameters model, outperforming competitors from Google, Mistral, and Meta. The smaller model aims to enhance accessibility for researchers.
Denmark unveiled its first AI supercomputer, Gefion, powered by 1,528 Nvidia GPUs. It will enter a pilot phase focusing on projects in quantum computing, drug discovery, and energy efficiency. Gefion is operated by the Danish Center for AI Innovation.
Amazon One Medical introduced AI tools to streamline administrative tasks for healthcare providers. The tools include real-time note-taking during patient visits and the ability to summarize external medical records. Luminance also launched Agent Lumi, an AI legal agent that automates tasks and learns from user interactions.
Source: https://qz.com/cohere-ai-nvidia-denmark-supercomputer-legal-agents-1851681945
China raises concerns over US tariffs and sanctions in economic talks
China raised concerns about U.S. tariffs and sanctions related to Russia during a recent Economic Working Group meeting in Washington. This meeting was part of ongoing discussions between the two countries.
China's Vice Minister of Finance Liao Min highlighted new stimulus policies implemented by China. This was the sixth meeting of the Economic Working Group, which included U.S. Treasury Undersecretary Jay Shambaugh.
Liao also met with Treasury Secretary Janet Yellen following the Economic Working Group discussions. The meetings coincided with the annual gatherings of the International Monetary Fund and the World Bank.
Adobe receives rating upgrade as analysts highlight AI success
Adobe has received a rating upgrade, highlighting its unexpected success in the AI sector. This marks a shift from previous discussions about the company's fluctuating market position.
Analysts now cite three key reasons for this positive outlook, reflecting a renewed confidence in Adobe's growth potential. The company's advancements in AI technology are seen as a significant factor.
This upgrade contrasts with earlier assessments, which focused on Adobe's challenges in the tech market. The current sentiment suggests a more favorable view of its future prospects.
Saudi Arabia begins construction on $50 billion Mukaab megastructure in Riyadh
Saudi Arabia has started construction on a $50 billion megastructure in Riyadh called 'The Mukaab.' This cubical building will stand 1,300 feet tall and cover 2 million square meters, capable of housing 20 Empire State Buildings.
The Mukaab is part of Crown Prince Mohammed bin Salman’s 'Saudi Vision 2030,' which aims to diversify the economy and create jobs. It will include residential units, hotels, offices, and retail spaces, featuring advanced technology for visitor experiences.
The design draws from traditional Saudi architecture and aims to reflect the region's natural landscape. However, the project has faced criticism for its resemblance to the Kaaba in Mecca and concerns over labor practices and potential displacement of local residents.
Apple faces declining iPhone sales in China as competition rises
Apple's iPhone sales in China are declining, leading to concerns about its market position. The company is facing increased competition from local brands like Huawei and Xiaomi, while its AI service, Apple Intelligence, is banned due to regulatory issues.
To address these challenges, Apple recently opened a research center in Shenzhen, signaling its commitment to the Chinese market. However, the company must navigate strict local regulations and may need to partner with Chinese firms to develop AI features that comply with government requirements.
Apple's situation reflects a broader trend of foreign companies adapting to China's regulatory landscape. The company has previously made compromises, such as using local servers for iCloud, and may need to further align its AI offerings with Chinese policies to maintain its market presence.
Google to launch Gemini 2.0 AI model in December with enhanced features
Google plans to launch its Gemini 2.0 AI model in December 2024, featuring enhanced capabilities compared to its predecessor, Gemini 1.0, which debuted in December 2023.
Gemini 1.0 introduced various functionalities, including Pro and Ultra variants, and improvements in user interactions with the Gemini 1.5 update. The upcoming Gemini 2.0 may follow a similar dual-availability strategy for developers and the public.
OpenAI's Orion Model is expected to compete with Gemini 2.0, although its release may have limited access compared to Google's broader rollout.
Study shows economy's influence on elections has diminished since 2000
A recent study by economist Robert Gordon indicates that the economy is less influential in predicting election outcomes than in the past. The shift began around 2000, as voter polarization increased and party affiliation became a stronger factor.
Gordon's research shows that while economic growth and inflation rates used to impact presidential approval ratings, this connection has weakened. His model has struggled to accurately predict results in recent elections, including 2000 and 2016.
For the upcoming 2024 election, Gordon's model suggests a generic Republican could win, but it lacks certainty. Vice President Kamala Harris is projected to receive fewer electoral votes than expected, though she may perform better than the model indicates.
Source: https://www.rawstory.com/economy-elections/
Apple enhances Safari to support spatial photos and videos for Vision Pro
Apple is enhancing Safari to support spatial photos and videos for its Vision Pro headset. Starting later this year, web developers will be able to easily integrate this content into their websites.
Previously, spatial content could only be viewed directly on devices or shared through messaging. The new Safari feature will allow users to experience spatial content embedded in web pages, providing a three-dimensional view for Vision Pro users.
This update follows Apple's efforts to enable spatial content capture with the iPhone 15 Pro and iPhone 16. The upcoming WebKit will facilitate the display of spatial content in Safari, expanding its accessibility.
Source: https://petapixel.com/2024/10/25/apple-is-adding-spatial-photo-and-video-support-to-safari/
U.S. stock indexes end six-week winning streak as McDonald's E. coli outbreak spreads
U.S. stock indexes ended their six-week winning streak on October 25, with the S&P 500 and Dow Jones both posting weekly losses. The S&P 500 fell 1 percent, while the Nasdaq composite gained 0.6 percent, extending its winning streak to seven weeks.
A food poisoning outbreak linked to McDonald's Quarter Pounders has sickened at least 75 people across 13 states, with 22 hospitalized and one death reported in Colorado. Officials are investigating raw onions from supplier Taylor Farms as a potential source.
In other news, a federal judge blocked the merger between Tapestry Inc. and Capri Holdings, citing concerns over reduced competition. Following the ruling, Capri's shares dropped over 50 percent, while Tapestry's rose 12 percent.
Amazon, Alphabet, and Apple prepare to report third-quarter earnings next week
Amazon, Alphabet, and Apple are set to report their third-quarter earnings next week, highlighting a busy period for tech companies. Amazon will release its results on October 31, with expectations of $157.34 billion in revenue and $1.34 earnings per share.
Alphabet will report its earnings on Tuesday, with forecasts of $86.46 billion in revenue and $1.81 earnings per share. Analysts will focus on advertising growth, although some see challenges from Amazon's performance.
This earnings season follows a week where investors are also anticipating the October jobs report and the Q3 GDP report, which could influence future Federal Reserve decisions.