1. U.S. Nonfarm Payrolls Add Only 12,000 Jobs
2. Boeing Reaches Agreement with Workers’ Union
3. Intel Shares Surge on Optimistic Forecast
4. KKR Expects Data Center Investments to Triple
5. Apple Revenue Barely Beats Estimates
6. Amazon Profits Crush Wall Street Expectations
7. Tesla Issues $499 Million in Asset-Backed Loans
1. U.S. Nonfarm Payrolls Add Only 12,000 Jobs
The U.S. Bureau of Labor Statistics reported today that nonfarm payrolls increased by just 12,000 jobs in October, marking the slowest pace of growth since 2020. Hiring activity over the past two months has fallen short of expectations.
The Bureau noted that recent hurricanes impacted hiring in multiple sectors, though the exact effects are hard to quantify.
This data is the last employment report before next week’s Federal Reserve meeting and the November 5 presidential election. Earlier this week, data showed strong U.S. economic growth in the third quarter, driven by healthy consumer spending.
The employment figures indicate a cooling labor market, with the unemployment rate steady at 4.1%, and hourly wages rising slightly.
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2. Boeing Reaches Agreement with Workers’ Union
IAM District 751, representing 33,000 Boeing engineers, announced that Boeing’s latest labor proposal has garnered substantial employee support, resulting in a tentative agreement between the two parties.
The union disclosed that Boeing’s offer includes a 38% wage increase over the next four years, along with potential $12,000 signing bonuses for new hires.
IAM District 751 advised members to swiftly accept Boeing’s new terms to end the ongoing strike, warning that delaying acceptance could jeopardize additional benefits negotiated over recent weeks.
Union members will vote on Boeing’s latest proposal on November 4.
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3. Intel Shares Surge on Optimistic Forecast
Intel announced yesterday that fourth-quarter revenue is expected to reach between $13.3 billion and $14.3 billion, surpassing analysts’ average estimate of $13.6 billion.
The company also projects earnings per share of 12 cents, doubling Wall Street’s forecast of 6 cents.
Intel’s optimistic guidance reignited investor confidence, with the company’s shares rising as much as 7.3% today. Year-to-date, the stock has plunged 57%.
Once the industry leader in computer processors, Intel has been cutting costs and preserving cash in an attempt to regain its footing.
Last quarter, Intel laid off employees, cut spending, and suspended dividend payments to investors.息
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4. KKR Expects Data Center Investments to Triple
KKR’s global head of digital infrastructure stated that the U.S. leads globally in data-center development, currently consuming between 16 to 18 gigawatts of electricity annually, significantly higher than Europe and Asia’s 6 gigawatts. By comparison, one gigawatt can power approximately 850,000 typical American homes.
KKR forecasts that data center power consumption could double or triple within the next 3 to 4 years, potentially driving global data center infrastructure investments to $250 billion annually.
This week, KKR announced a partnership with Energy Capital Partners to develop AI infrastructure.
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5. Apple Revenue Barely Beats Estimates
Apple’s fiscal Q4 results released last night showed revenue rising 6.1% year-over-year to $94.9 billion, narrowly exceeding analyst estimates of $94.4 billion. Earnings per share (EPS) reached 97 cents, but excluding a one-time legal settlement payment, adjusted EPS stood at $1.64.
iPhone revenue increased 5.5% year-over-year to $46.2 billion, surpassing the estimated $45 billion. Apple plans to launch a new affordable iPhone SE featuring Apple Intelligence next year, likely boosting future iPhone revenues.
However, sales for Apple’s other products—including iPads and wearable devices—failed to meet expectations.
Mac sales totaled $7.74 billion last quarter, matching forecasts.
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6. Amazon Profits Crush Wall Street Expectations
Amazon reported third-quarter earnings last night, with revenue climbing 11% to $158.9 billion, surpassing expectations. Operating income reached $17.4 billion, significantly exceeding Wall Street’s forecast of $14.7 billion.
The strong Q3 performance was driven by robust results across e-commerce, advertising, and cloud services, rewarding CEO Andy Jassy’s multi-year restructuring of Amazon’s logistics and costs.
On a call with analysts, CFO Brian Olsavsky stated Amazon expects 2024 capital expenditures to reach $75 billion, primarily targeting technology infrastructure investments.
Today, Amazon’s stock rose 7.3% to $200, reaching its highest point since February.
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7. Tesla Issues $499 Million in Asset-Backed Loans
Sources report that Tesla issued $499 million in asset-backed loans, with Deutsche Bank beginning the sale of these loans across five tiers on Monday, completing the transaction by Friday.
Fitch Ratings assigned an investment-grade rating to the loans, reflecting the high quality of underlying collateral.
Demand for Tesla’s latest loan offering significantly exceeded supply, with the safest tranche yielding 4.83%.
Year-to-date, Tesla has issued $2 billion in asset-backed loans, down from nearly $4 billion last year.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.