Things To Watch
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AI Spending
Five of the “Magnificent Seven” companies report quarterly results this week. Plenty of attention will be given to the pace of spending on generative artificial intelligence (AI)-enabled chips and data center servers by the three dominant hyperscale enterprise cloud providers: Amazon (AMZN), Alphabet (GOOGL), and Microsoft. Of the largest technology platforms, it seems only Meta Platforms (META) has been given credit by investors for generating a tangible return on generative AI spending.
iPhone 16 Refresh Cycle
Apple’s (AAPL) commentary on the reception of its recently-released iPhone 16 in China will likely be top of mind for analysts and investors when the consumer technology giant reports its results Thursday. The timeline for Apple Intelligence on the iPhone 16 and the growth rate in its Services business will also be closely analyzed.
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Pharmaceutical Earnings
Major drugmakers Eli Lilly (LLY), Merck (MRK), AbbVie (ABBV) Amgen (AMGN), Regeneron (REGN), and Biogen (BIIB) all deliver quarterly earnings this week. Drug price negotiations with the Biden administration and the trajectory of sales and testing of anti-obesity GLP-1 drugs will be front and center for most of these firms.
October Jobs Report
Bureau of Labor Statistics data on Friday morning is expected to show the U.S. economy added 108,000 nonfarm jobs in October, which would be a deceleration from gains of 254,000 and 159,000 the prior two months. The report will likely incorporate the short-term detrimental effects on hiring and economic activity of Hurricanes Helene and Milton. Over time, hurricane-related job losses in most hard-hit areas tend to be offset by hiring tied to reconstruction and repair. A weaker-than-expected print would probably keep the Fed on pace to cut its benchmark rate by 25 basis points at both of its remaining policy-setting meetings this year on November 6-7 and December 17-18.