Microsoft reports Q1 beat, Comcast weighs cable networks spinoff: Morning Buzz

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Microsoft (MSFT) reported better-than-expected Q1 earnings and revenue, with Xbox content and services revenue up 61%
• Meta Platforms (META) reported upbeat Q3 results and provided revenue guidance for Q4
• Uber (UBER) reported better-than-expected Q3 results and reiterated its adjusted EBITDA growth guidance for fiscal 2024
• Comcast (CMCSA) reported upbeat Q3 results and said it is exploring spinning out its cable networks into a “new well capitalized company”
• Merck (MRK) reported Q3 adjusted EPS and revenue that topped consensus estimates

2. WALL STREET CALLS:

• Arm (ARM) downgraded to Underperform at Bernstein
• Biogen (BIIB) downgraded to Equal Weight at Morgan Stanley
• Benchmark upgraded “best in breed” Wingstop (WING) to Buy following pullback
• Brinker (EAT) downgraded to Market Perform at BMO Capital and cut to Neutral at JPMorgan
• Estee Lauder (EL) downgraded at Stifel and Citi following “disappointing” Q1

3. AROUND THE WEB:

• All doses of Novo Nordisk’s (NVO) diabetes and obesity treatments are listed as available on the FDA’s drug shortage list as of Wednesday, raising the possibility that the medications could soon be taken off the list entirely, STAT says
• Ford (F) plans to stop building its F-150 Lightning beginning in mid-November through the end of the year due to lower-than-expected demand for the electric pickup truck, Automotive News says
• Samsung (SSNLF) said it had “completed an important phase” in qualifying to sell the most advanced form of the HBM3E memory chips to a major customer that work with processors made by Nvidia (NVDA) and other companies to enable AI computing, WSJ reports
• Volkswagen-backed (VWAGY) Scout Motors will employ the software and zonal architecture being developed by the joint venture between Rivian (RIVN) and the Volkswagen Group, TechCrunch says
• Disney (DIS) will pay more than $500M over ten years to broadcast the Grammy Awards, WSJ reports

4. MOVERS:

• Root (ROOT) increases after reporting Q3 results, with EPS and revenue beating consensus
• Alphatec (ATEC) and Lemonade (LMND) gains in New York after reporting quarterly results
• Peloton (PTON) higher after appointing Stern as CEO and reporting Q1 results
• Aptiv (APTV) lower after reporting Q3 results and cutting its guidance for FY24
• Aurora (AUR) and Compass Pathways (CMPS) fall after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Starbucks (SBUX) reported Q4 results and suspended its guidance for FY25
• Roblox (RBLX) reported Q3 results, with EPS and revenue beating consensus
• Estee Lauder (EL) reported Q1 results, pulled FY25 guidance and cut its dividend 47%
• Bristol Myers (BMY) reported Q3 results and raised its guidance for FY24
• MasterCard (MA) reported Q3 results, with EPS and revenue beating consensus

INDEXES:

Near midday, the Dow was down 347.84, or 0.83%, to 41,793.70, the Nasdaq was down 474.95, or 2.55%, to 18,132.99, and the S&P 500 was down 94.31, or 1.62%, to 5,719.36.