ASML orders were well below expectations, and the plunge in stock prices dragged down the semiconductor sector. Apple quietly released the iPad mini, and its stock price hit a new high. The Paris International Motor Show opened, and Tesla returned for the first time in five years. The retail penetration rate of new energy vehicles in China reached 53.3% in September. Starbucks is reducing promotions and discounts. ASML, Ericsson, LVMH, Johnson & Johnson, WBA, Bank of United States, Citigroup, Goldman Sachs, Charles Schwab and State Street reported results. Lithography giant ASML unexpectedly released its earnings report due on Wednesday. To make matters worse, with the third-quarter orders figure only half of market expectations, the combined cut to the FY2025 guidance also triggered a plunge in stock prices, dragging the entire semiconductor sector and the U.S. stock market weaker. ASML said on Tuesday that it expects net sales in 2025 to be between 30 billion euros and 35 billion euros, in the lower half of the previously expected range. The company's net orders in the third quarter were 2.6 billion euros, well below market expectations of 5.4 billion euros.
Affected by ASML's downward revision of its performance expectations, the U.S. chip sector was generally lower on Tuesday. ASML closed down 16.26%, Nvidia closed down 4.52%, AMD closed down 5.22%, Broadcom closed down 3.47%, Qualcomm closed down 2.22%, TSMC closed down 2.64%, Applied Materials closed down 10.69%, Intel closed down 3.33%, and Texas Instruments closed down 4.22%.
Given the complexities of a potential deal involving Intel, Qualcomm may choose to wait until January when a new president takes office before deciding how to move forward. Qualcomm and Intel's products are key to supporting everyday items ranging from smartphones to electric vehicles, and the merger of the two companies is almost certain to draw intense scrutiny from United States and global antitrust regulators. Qualcomm has approached Intel to discuss acquiring the struggling chipmaker, taking the first step toward building one of the largest mergers and acquisitions in history. Qualcomm is also considering that it is not yet certain whether the company will decide to buy Intel and that the timing may also change.
Apple (Apple) quietly announced the new iPad mini on October 15, equipped with a faster A17 Pro processor chip, support for Apple Intelligence, and support for Apple Pencil Pro. The launch marks the first upgrade to the iPad mini 6 series since its launch in September 2021. Apple shares closed 1.10% higher on Tuesday, with a record share price of $3.56 trillion.
Market research agency IDC announced that the global smartphone market shipments in the third quarter of 2024 reached 316.1 million units, a year-on-year increase of 4.0%, and it has achieved growth for five consecutive quarters. Among them, Samsung's shipments were 57.81 million units, down 2.8% year-on-year, with a market share of 18.3%. Apple shipped 56 million units, up 3.5% year-on-year, with a market share of 17.7%. Xiaomi shipped 42.8 million units, up 3.3% year-on-year, with a market share of 13.5%. OPPO shipped 28.8 million units, up 5.9% year-on-year, with a market share of 9.1%. Vivo shipped 27 million units, up 22.8% year-on-year, with a market share of 8.5%.
Microsoft Corp. (Microsoft) said on Monday that Sebastien Bubeck, one of its vice president·s of artificial intelligence, will leave his post to join OpenAI. Microsoft is both OpenAI's largest investor and competitor. Bubeck spent 10 years at Microsoft and has been responsible for the company's work on small language models, an area that seeks to match or exceed the effectiveness of large AI systems while running more efficiently. "We thank Sebastian for his contributions to Microsoft and look forward to continuing our relationship through his partnership with OpenAI," Microsoft said. ”
Google will support the construction of seven small nuclear reactors in the United States, a first-of-its-kind agreement that is meeting the tech company's growing demand for AI electricity and will contribute to the United States' nuclear energy revival. Under the terms of the agreement, Google pledged to buy electricity from the seven reactors to be built by nuclear startup Kairos Power. The companies said Monday that the agreement aims to add 500 megawatts of nuclear power from the end of the decade. Kairos Power chief executive officer Mike Laufer said the company was working to avoid a cost spiral, which is a common problem in the traditional nuclear industry.
United States space exploration technology company SpaceX is expected to officially launch StarLink, a satellite internet service, in Korea early next year. On the 15th, the Ministry of Science and ICT of Korea issued an administrative notice of partial amendments to the "Technical Standards for Wireless Equipment for Simple Radio Stations, Space Agencies, and Ground Stations, and Wireless Equipment for Radio Wave Detection." The core content of the amendment is to revise the domestic technical standards so that the Starlink terminal can be used in China.
The world's largest motor show, the Paris International Motor Show, opened on October 14. In addition to Volkswagen Germany and BMW Germany, which gave up participating in the last 2022, Tesla in United States has also returned after 5 years. On the other hand, despite the EU's decision to impose additional tariffs on Chinese BEVs, Chinese EVs such as BYD and Xpeng are still increasing their presence. On the same day, Renault of France, the host country, unveiled seven new models including the new all-electric SUV "Renault 4" for the first time in the world.
Carlos Tavares, the chief executive of Stellantis, said at the Paris Motor Show on Monday that Stellantis could sell or discontinue brands that are not profitable. Mr. Tang said that no strategic discussions had been initiated as all 14 of the company's brands were currently profitable, but he said Stellantis would not be able to retain brands that no longer create value for customers. Tang Weishi did not point out which brands are most of the concern within Stellantis. Tang Weishi said that the interest of competitors in the Stellantis brand is obvious. "I was approached by several Chinese automakers to acquire some brands, but I refused."
The timing of the first model under the marriage between Stellantis and Leapmotor, the Leapmotor T03, to enter Europe is not very ideal. But Leap chose to swim against the current because Leap T03 may start assembling cars at Stellantis' factory in Poland by the end of this year to avoid import tariff risks and costs. Compared with investing in Europe, or exporting and directly selling in Europe, Leapmotor, which leverages Stellantis Group's mature sales network, after-sales service, auto finance, and logistics, can more easily enter and gain a foothold in the European market. What's more, this A-class T03 for city commuting starts at 18,900 euros, down from 20,000 euros.
From tariffs to technology restrictions, Chinese automakers are facing a growing number of global challenges. But BYD, China's largest automaker, remains unstoppable, beating foreign rivals in the Chinese market with its $14,000 plug-in hybrid. Last month, BYD set a global sales record for the fourth consecutive month, selling 419,430 vehicles. Earlier this year, BYD replaced Volkswagen, which had topped the sales charts for decades, as China's No. 1 automaker. BYD is one of the few electric vehicle manufacturers in China to make a profit by producing its own batteries and chips to reduce costs.
China's passenger car sales rose in September, reversing a five-month downward trend, helped by supportive government policies and improved consumer confidence. According to the Passenger Car Association, the national retail sales of narrow passenger cars in September increased by 4.5% year-on-year to 2.1 million units; This is the highest monthly sales achieved so far this year. According to the Passenger Car Association, the sales of new energy vehicles (including electric vehicles and hybrid vehicles) exceeded that of traditional fuel vehicles for three consecutive months, and the retail penetration rate of new energy vehicles in China was 53.3% in September. In terms of exports, China's passenger car exports in September increased 22% year-on-year.
The resale value of electric vehicles has plummeted and has gone from being an expensive means of transportation to one of the cheapest options in the used car market. The sharp decline in used electric vehicle prices in the United States contrasts sharply with the overall stable price of used car markets over the same period. Two years ago, due to a general shortage of cars due to the supply chain crisis, some used electric models were once sold for as much or even more than new cars. Used electric vehicles are now a bargain, creating a dilemma for both owners and dealers.
China's rapid adoption of electric vehicles is in the spotlight, and China's freight industry is undergoing dramatic changes. Cheap natural gas is driving Chinese truckers to switch to gas-fueled trucks, which has weakened demand for oil and caused Daimler Truck, one of the world's largest truck makers, to suffer a "catastrophic" drop in sales in China.
NLFI, the Netherlands government's investment agency, said on Tuesday it plans to reduce its stake in Netherlands Amro Bank to around 30% as part of its exit plan. The Netherlands government will adopt a trading plan to reduce its stake from its current stake of about 40.5%. Last month, the Netherlands government just sold a stake in Netherlands Bank worth 1.17 billion euros.
Pharmacy chain Walgreens Boots Alliance has announced a major restructuring plan that includes closing 1,200 stores in the United States over the next three years. The decision is part of CEO Tim Wentworth's strategy to revitalize the company, which has been grappling with challenges such as reduced consumer spending and low reimbursement rates for medicines. As of August 31 last year, WBA operated more than 8,000 stores in the United States. At the moment, WBA stock is underperforming, trading near a 30-year low, down 65% this year, making it the worst-performing stock in the S&P 500.
Starbucks is cutting back promotions and discounts. After a tumultuous year, this is the first step taken by the company's new CEO, Brian Niccol, to reposition the coffee chain. Since Niccol was appointed CEO in August, Starbucks has quietly cut back on the crazy discounts it has offered over the past year, according to company executives and baristas. After years of raising menu prices, Starbucks and other restaurant chains have increasingly relied on discounts to attract customers this year. Starbucks has long billed itself as a high-end brand with little discount.
Financial Reporting Information
ASML Holding NV announced its results for the third quarter of 2024. Total quarterly net revenues amounted to 7,467 million euros, compared to 6,243 million euros in the prior-year quarter. Net income for the quarter was 2,077 million euros, compared to 1,578 million euros in the prior-year quarter. Quarterly net orders of 2,633 million euros were well below expectations and in the prior-year quarter of 5,567 million euros.
Ericsson announces results for the third quarter of 2024. Quarterly net sales were 61.8 billion Sweden kronor compared to 64.5 billion Sweden kronor in the same period of the previous year, down 4% year-on-year. EBIT profit for the quarter was 5.8 billion Sweden kroner, compared to a loss of 28.9 billion Sweden kroons in the prior-year quarter. Net profit for the quarter was 3.9 billion Sweden kronor, compared to a net loss of 30.5 billion Sweden kronor in the prior-year quarter.
Luxury goods giant LVMH has announced its results for the first nine months of 2024. The group's total revenue for the period was 60.753 billion euros, compared with 62.205 billion euros in the same period of the previous year, a year-on-year decrease of 2%. Among them, the revenue of the wine and spirits business was 4.193 billion euros, a year-on-year decrease of 11%. Fashion and leather goods business revenue was 29.922 billion euros, down 3% year-on-year. Revenues in the Perfumery & Cosmetics segment were 6,148 million euros, up 2% year-on-year. Watches and jewelry revenue was 7.536 billion euros, down 5% year-on-year. Retail revenue was 12.559 billion euros, up 1% year-on-year.
Johnson & Johnson (Johnson & Johnson) reports third-quarter 2024 results. Quarterly sales were $22.471 billion, compared to $21.351 billion in the same period last year, an increase of 5.2% year-on-year. Quarterly net profit was US$2.694 billion, compared with US$4.309 billion in the same period last year, down 37.5% year-on-year. Adjusted net profit was $5.876 billion, down 13.3% year-on-year. By business, sales of pharmaceutical business were US$14.58 billion, up 4.9% year-on-year. The sales of medical device business were 7.891 billion US dollars, a year-on-year increase of 5.8%.
Walgreens Boots Alliance, Inc. Announced results for the fourth fiscal quarter and fiscal year ended August 31, 2024. Sales in the fiscal fourth quarter were $37.547 billion, compared to $35.422 billion in the year-ago quarter. Net loss attributable to the Company for the quarter was $3,005 million, compared to a net loss of $180 million in the year-ago quarter. Sales for the fiscal year were $147.658 billion, compared to $139.081 billion in the previous fiscal year. The net loss for the fiscal year was US$8.636 billion, compared to a net loss of US$3.08 billion in the previous fiscal year.
Albertsons Companies, a United States grocery store operator, announced results for its fiscal second quarter (12 weeks) ending September 7, 2024. Quarterly sales revenue was $18,552 million, compared to $18,291 million in the year-ago quarter. Net income for the quarter was $146 million, compared to $267 million in the year-ago quarter.
Bank of America announced its results for the third quarter United States of 2024. Total revenue after interest expense for the quarter was $25.3 billion, compared to $25.2 billion in the year-ago quarter. Net income for the quarter was $6.9 billion, compared to $7.8 billion in the year-ago quarter.
Citigroup announced its third-quarter 2024 results. Total revenue after interest expense for the quarter was $20,315 million, compared to $20,139 million in the year-ago quarter. The Group's quarterly net profit was US$3,238 million, compared to US$3,546 million in the year-ago quarter. Provisions of $2.7 billion were made for the quarter, primarily due to the impact of credit card business.
Goldman Sachs announced its third-quarter 2024 results. Total net revenue for the quarter was $12,699 million, compared to $11,817 million in the year-ago quarter. Net income attributable to common shareholders for the quarter was $2.78 billion, compared to $1.882 billion in the year-ago quarter.
Charles Schwab reports third-quarter 2024 results. Net revenue for the quarter was $4,847 million, compared to $4,606 million in the same period last year, an increase of 5% year-over-year. Quarterly net profit was $1.408 billion, compared to $1.125 billion in the same period last year, a year-on-year increase of 25%.
STATE STREET ANNOUNCES THIRD-QUARTER 2024 RESULTS. Total revenue for the quarter was $3,259 million, compared to $2,691 million in the year-ago quarter. Net income for the quarter was $730 million, compared to $422 million in the year-ago quarter.
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