월스트리트저널 읽기 - Nasdaq, Fed, Microsoft etc.

THURSDAY, OCTOBER 26, 2023

 

◈ Alphabet, Amazon Pull Down Nasdaq Into Correction Level (알파벳, 아마존이 나스닥을 조정 수준으로 끌어내리다)

 

A steep drop in shares of Alphabet, Amazon.com and other technology companies dragged the Nasdaq Composite into correction territory Wednesday.

 

The tech-heavy index slid 2.4% in a punishing session that pulled it down more than 10% from its recent high. Its losses accelerated in the afternoon, sending the gauge to one of its worst one-day declines of the year.

 

The S& P 500 fell 1.4%, closing at its lowest level since May. The Dow Jones Industrial Average shed 105 points, or 0.3%.

 

Shares of Google parent Alphabet declined 9.5% after reporting quarterly results that showed disappointing growth in its cloud business. The company shed more than $166 billion in market value, its biggest one-day loss ever. Shares of Amazon.com and Nvidia also fell, lagging behind the broader market, while fintech company Affirm and payments company Block dropped sharply.

 

◈ Fed Floats Deep Cuts to Debit-Card Swipe Fees (연준, 직불카드 스와이프 수수료 대폭 인하)

 

 

WASHINGTON—The Federal Reserve proposed lowering by about 30% the fees merchants pay to many banks when consumers shop with debit cards, setting off a fight with banks that oppose the changes.

 

At present, merchants pay large card issuers such as JP-Morgan Chase and Bank of America 21 cents plus 0.05% of the transaction amount, which is the level set by the Fed in 2011. The Fed can lower the cap if it determines the costs for processing debit-card payments are declining, but it had never previously done so.

 

Wednesday’s plan would reduce the fees to 14.4 cents plus 0.04% of the transaction amount. Going forward, the proposal envisions adjusting the fees every other year, suggesting more reductions could be on the way. The Fed said it would modestly increase a fraud-prevention fee.

 

The Wall Street Journal last week reported that the Fed would propose reducing fees.

 

Interchange fees are paid by merchants—from national retailers to local shops—when consumers shop with their debit cards. The fees are pocketed by banks and other financial institutions that issue those cards.

 

◈ Microsoft Gets a Leg Up on Google in AI (마이크로소프트, AI 분야에서 구글을 앞지르다)

 

 

Two early movers on artificial intelligence have a way to go before the technology starts generating significant business. But if their latest quarterly results are any indication, it may be Micro-soft ’s game to lose.

 

Microsoft and Google parent Alphabet saw improvements to their core businesses during the September quarter according to results posted by the companies late Tuesday. Google’s ad revenue grew 9% year over year to $59.6 billion during the quarter, beating Wall Street’s expectations and up from the 3% growth reported for the June period. That was helped by YouTube’s ad revenue, which rose 12% for its quickest pace in nearly two years. It probably isn’t a coincidence that this was during a period in which Hollywood’s strikes resulted in fewer new TV shows and movies.

 

But it was different for Google’s cloud business, where revenue grew 22% year over year to $8.4 billion. That was 3% below Wall Street’s forecasts and contrasted sharply with the trend for Microsoft’s much larger cloud business, where its Azure public cloud service saw revenue jump 29% to an estimated $16.7 billion during the same quarter. Azure’s growth was up 3 percentage points from the June quarter, while Google Cloud lost six points of growth in the same period.

 

Microsoft’s results showed strength in other areas. The sharp drop in PC sales seen earlier this year moderated, giving a strong boost to the operating earnings for Microsoft’s segment that includes its Windows operating system. The segment, which contains the company’s suite of business software, delivered its highest operating margin in at least a decade. Micro-soft projected better-than-expected revenue and operating income for the December quarter, boosted by its acquisition of Activision Blizzard. Google, per its longstanding practice, refrained from giving any financial forecast.

 

◈ Credit Bureaus Feel Hit From Fewer Consumer Loans (소비자 대출 감소로 인해 신용조사기관들이 타격을 받다)

 

 

When banks lend less, borrowers feel it. So do the companies that help banks make loans.

 

Shares of TransUnion , one of the three major credit-reporting agencies, fell 23% Tuesday after its earnings report—and dropped further Wednesday.

 

TransUnion helps provide credit scoring and related information and tools to lenders as they make underwriting decisions. So its revenues are partly driven by loan inquiries and volumes.

 

The company expects less of that business—especially via regional banks, many of which are deliberately making fewer consumer loans as part of their asset “diets.”

 

오늘도 경제신문으로 세상을 봅니다.

 

2023.10.26 - [경제신문 읽기] - 월스트리트저널 읽기 - Economy, Beijing, Stocks etc.

월스트리트저널 읽기 - Economy, Beijing, Stocks etc.