The daily business briefing: October 31, 2018
Facebook shares fluctuate after quarterly report, U.S. charges 10 Chinese agents in hacking scheme, and more
- 1. Facebook shares fluctuate after mixed quarterly report
- 2. U.S. charges Chinese agents in scheme to hack plane engine data
- 3. Apple unveils latest MacBook Air, Mac mini, iPad Pro
- 4. U.S. stock futures rise following flurry of solid corporate reports
- 5. GM shares soar pre-market after earnings beat expectations
1. Facebook shares fluctuate after mixed quarterly report
Facebook shares fell by as much as 5 percent in after-hours trading Tuesday following a disappointing quarterly report, but bounced back into the black after a reassuring conference call with company executives. The social media company reported earnings per share of $1.76, which beat expectations of $1.47 per share, but its revenue and active user totals fell short of estimates, according to Refinitiv. Facebook said its daily active users for the quarter came to 1.49 billion, just under the expected 1.51 billion. More than 2.6 billion people use the company's apps, which include Facebook, WhatsApp, Instagram, and Messenger. That figure was up by 100 million over last quarter. Last quarter Facebook said it expected revenue growth to slow in the second half of the year as it invested more in its Stories product, which brings lower ad rates.
2. U.S. charges Chinese agents in scheme to hack plane engine data
Federal prosecutors on Tuesday unsealed charges against 10 Chinese intelligence officers and other suspects accused of trying to hack the computer systems of U.S. aviation companies in Arizona, Massachusetts, Oregon, and elsewhere. The scheme allegedly was to steal information on a turbo fan engine used in commercial jetliners. The 10 people charged sought sensitive information that Chinese firms could use to replicate the engines made by U.S. companies "without incurring substantial research and development expenses," the indictment said. At the time of the alleged hacking, a Chinese-state owned aerospace company was trying to develop a similar engine. The case comes as the Trump administration steps up its complaints against China's alleged efforts to steal information from U.S. companies, often through hacking.
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Reuters The Wall Street Journal
3. Apple unveils latest MacBook Air, Mac mini, iPad Pro
Apple CEO Tim Cook unveiled the newest additions to the Mac family on Tuesday, just one month after the company revealed a revamped line of iPhones and Apple Watches. Apple introduced several new pieces of hardware, including a new MacBook Air, Mac mini, and iPad Pro. It also unveiled a new series of live learning sessions called "Today at Apple." Cook began the announcement event by touting the portable MacBook Air as Apple's "most loved" computer. The new MacBook Air, which starts at $1,199 with 8 GB of RAM and an i5 processor, is the first major refresh of the super thin laptop line in three years. It can be ordered Tuesday and will be available Nov. 7.
4. U.S. stock futures rise following flurry of solid corporate reports
U.S. stock-index futures rose early Wednesday, pointing to a higher open following a flurry of strong corporate earnings reports. Futures for the Dow Jones Industrial Average were up by 0.6 percent, while those of the S&P 500 jumped by 0.7 percent. Even with the gains, the major U.S. indexes were on track to finish the month with big losses, with the S&P 500 down by 7.9 percent, the Dow down 6 percent, and the Nasdaq Composite off by 11 percent, its worst month since a 17.7 percent drop in October 2007. Global markets mostly gained on Wednesday after big American companies reported strong earnings. Shares of Mondelez gained 5 percent after the maker of Oreo cookies and Trident gum announced better-than-expected earnings.
5. GM shares soar pre-market after earnings beat expectations
General Motors shot up by 10 percent in pre-market trading early Wednesday after the automaker reported quarterly earnings that beat analysts' expectations, thanks largely to strong truck sales. GM reported adjusted earnings of $1.87 per share, far better than the $1.25 per share expected, on revenue of $35.8 billion, up from the estimated $34.9 billion. GM's good news came as automakers report that their material costs and other expenses are rising due to President Trump's trade wars, particularly the one with China. Rising costs and interest rates are expected to squeeze the industry. A recent estimate from industry tracker LMC Automotive said vehicle sales in the U.S. are expected to fall in October.
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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