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Good morning friends!
Futures are mixed as traders digest big tech earnings, new jobs data, and look ahead to the Fed decision.
Let’s get right to it!
Job growth in the U.S. private sector slowed more than expected in January.
Payroll firm ADP reported private employers added 107,000 jobs in the first month of the year vs 150,000 expected.
That was a decline from the downwardly revised 158,000 in December.
The information services sector was the only to report a drop, losing 9,000 workers.
Leisure and hospitality added 28,000 workers, trade, transportation and utilities added 23,000, and construction rose by 22,000.
ADP’s report showed a 5.2% annual increase in wages in January.
This data comes ahead of the official jobs report from the Labor Department on Friday which is expected to show the U.S. economy added 185,000 and the unemployment rate rising to 3.8%.
Microsoft (MSFT) shares are down 0.5% ahead of the open after beating fiscal Q2 expectations on the top and bottom line but issuing soft guidance.
Here’s how the tech giant’s results compared to analysts’ estimates:
Total revenue rose 17.6% year over year.
Microsoft’s Intelligent Cloud segment reported $25.88 billion in revenue, up 20% from a year ago and higher than $25.29 billion expected.
Revenue from Azure and other cloud services jumped 30% year over year vs 27.5% growth expected.
Microsoft forecast fiscal Q3 revenue between $60 billion and $61 billion, putting the middle of the range at $60.5 billion vs $60.93 billion expected.
Alphabet (GOOGL) shares are falling 5.7% in premarket trade after reporting lower than expected Q4 ad revenue.
Here’s how the tech giant’s results compared to analysts’ estimates:
Alphabet’s total revenue jumped 13% year over year, the fastest quarter of growth since early 2022.
Google Cloud saw growth of 26% during the quarter.
Advanced Micro Devices (AMD) shares are down 4.6% ahead of the open after reporting Q4 earnings that were in line with expectations and issuing soft guidance.
Here’s how the chipmaker’s results compared to analysts’ estimates:
AMD forecast Q1 sales of $5.4 billion, plus or minus $300 million.
That was short of analysts’ expectations for $5.73 billion.
AMD’s CEO said, “For 2024, we expect the demand environment to remain mixed.”
Starbucks (SBUX) shares are up 5% in premarket trade despite reporting weaker than expected fiscal Q1 earnings and revenue.
Here’s how the coffee giant’s results compared to analysts’ estimates:
Revenue rose 8% year over year.
Global same-store sales rose 5% from a year ago, missing expectations for 7.2% growth.
North American same-store sales also rose 5%.
International same-store sales growth of 7% fell short of expectations for 13.2% growth.
Boeing (BA) shares are up 1.8% ahead of the open after beating Q4 expectations.
Here’s how the planemaker’s results compared to analysts’ estimates:
Revenue rose 10% year over year and Boeing had $2.95 billion in free cash flow during the quarter.
The company declined to provide 2024 guidance amid the latest controversy with its Max 9 planes.
The CEO said, “While we often use this time of year to share or update our financial and operational objectives, now is not the time for that. We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately – that is what will drive our performance.”