Finance Evening: Stocks Rebound on Election Day; AMD Beats Estimates as Data Center Revenue Nearly Doubles

📊 North American Markets Today

AMD Beats Estimates as Data Center Revenue Nearly Doubles; Shares Jump After the Bell

Source: CNBC

Advanced Micro Devices reported third-quarter results on Tuesday that beat Wall Street expectations, with revenue up 45% year over year and data center sales nearly doubling from a year earlier. The stock rose about 8% in extended trading. The data center unit now accounts for 64% of total revenue, up from 47% a year ago.

CEO Lisa Su said on the earnings call that she expects server revenue to double year over year in 2027, with data center AI growth accelerating faster than the company projected 90 days ago. She said AMD has worked across its supply chain to secure wafers, substrates, advanced packaging and memory needed to support much higher growth next year.

For the fourth quarter, AMD expects about $17 billion in revenue, above the $16.2 billion analyst average, with gross margin of 55%, slightly below the 55.3% estimate. Revenue in the combined PC and gaming segment fell 8% to $3.7 billion, with gaming down 40%. The stock is up about 125% this year.

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Disney Plans Several Thousand Layoffs, Asks Some Managers to Cut Costs by Up to 20%

Source: CNBC

Disney is planning to cut several thousand jobs, and some managers have been asked to reduce costs by up to 20%, people familiar with the matter told CNBC. It marks the latest round of layoffs since CEO Josh D'Amaro took the reins earlier this year. Disney previously planned to cut as many as 1,000 employees in April, mostly in marketing, and about 300 in September, many in HR and technology.

Executives had warned of more reductions in the August earnings report. In an Aug. 5 letter to shareholders, D'Amaro and CFO Hugh Johnston wrote that the company remains "highly focused on reducing costs across the enterprise to create incremental capacity to invest for growth," adding that the work is "mid-stream."

Disney had about 231,000 employees as of the close of fiscal 2025, which ended in September last year. Other entertainment companies are also cutting: Netflix said last month it would lay off roughly 6% of its workforce, and Skydance, the combined Paramount and Warner Bros. Discovery, is expected to cut staff to realize $6 billion in synergies over three years. Disney reports fiscal fourth-quarter earnings on Nov. 17.

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Stocks Rebound on Election Day; Nasdaq Gains 0.83% as Chip Stocks Recover

Source: CNBC

U.S. stocks rose on Tuesday as investors moved back into technology shares and geared up for midterm election results. The Nasdaq Composite gained 0.83% to close at 25,372.01, the S&P 500 climbed 0.36% to 7,568.92 to break a three-day losing run, and the Dow Jones Industrial Average fell 197.26 points, or 0.38%, to 51,786.72.

Apple dropped almost 2% after issuing a disappointing margin forecast late Monday and missing estimates on fiscal fourth-quarter iPad sales, weighing on the Dow. Chipmakers gained: AMD rose more than 3%, Broadcom added 3%, and Micron and Nvidia each gained more than 2%. The Nasdaq-100 rose 0.7% to 28,180.26, remaining in correction territory and about 10% below its recent high.

The midterms will decide which party controls the House and Senate starting in January. Prediction market traders see a nearly 75% likelihood of Democrats taking the Senate. JPMorgan said this week that a Democratic sweep could weigh on the broader market on Wednesday and spark a sell-off in AI stocks, while Republican control of the Senate or both chambers could bring short-term gains.

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What the Midterms Could Mean for Markets and Debt

Source: Fox Business

Voters cast ballots Tuesday in elections that will determine control of Congress and could add to investor concerns about oversight of the AI sector and how the debt ceiling will be handled next year. Since President Donald Trump's second term began in 2025 with Republican majorities in both chambers, the S&P 500 has gained about 27%, helped by massive AI spending and strong earnings growth.

The U.S. budget deficit has widened to about $2 trillion, adding upward pressure on Treasury yields as debt issuance mounts. Geopolitical risk from the Iran war that broke out in late February, which drove energy prices higher, has also pushed yields up.

Ned Davis Research said that in the eight midterm cycles since 1930 when the president's party lost the House, the S&P 500 rose for the remainder of the year five times, with a median gain of 1.4% from Election Day through year-end, slightly below the 1.9% across all post-Election Day midterm years. A Democratic House with a Republican Senate could produce mixed fiscal implications, requiring bipartisan compromises on government funding and the debt ceiling, with room for brinkmanship. If Republicans retain both chambers, the GOP could pursue further tax reforms or higher defense spending.

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Australia Hikes Rates to 4.85%, an 18-Year High

Source: CNBC

Australia's central bank raised its benchmark cash rate by 25 basis points to 4.85% on Tuesday, the highest level since November 2008 and its fifth increase this year, in line with economists' expectations. The RBA said the decision was split, with six members voting for the increase and three for a hold.

Inflation remains high: the consumer price index rose 4.3% in September from a year earlier, up from 4% in August and the highest since March. The central bank said inflation is expected to "remain elevated through much of 2027" and not return to its 2%-3% target range until late 2027, three quarters later than previously forecast. It cited higher fuel and commodity prices, along with AI-related investment driving rapid growth in technology goods prices.

Growth has slowed, with GDP up 2.1% year over year in the June quarter, down from 2.5% in the March quarter. Governor Michelle Bullock said in September that inflation is "too high" and that additional hikes will come "if that's what's needed." Asked whether she sees a recession, she said it is "not our base case at the moment."

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Brent Flash-Crashes $6 Before Rebounds Toward $104

Source: OilPrice.com

Brent crude plunged more than $6 a barrel Tuesday morning, falling from $107.24 to $100.80 before recovering to around $104 shortly after 10 a.m. Eastern, as traders reacted to conflicting reports about U.S.-Iran peace negotiations. The move followed Monday's 7.6% decline, which left Brent at $104.77. Prices initially rebounded overnight after reports of U.S. strikes on Iran's Qeshm Island near the Strait of Hormuz, before reversing sharply.

The first abrupt decline began moments before a Bloomberg-attributed headline said Iran's supreme leader had authorized negotiations on previously non-negotiable issues. That was a stronger claim than President Masoud Pezeshkian's statement that the supreme leader had only granted the government additional negotiating authority, without specifying which issues might be discussed. Questions later emerged about whether the headline accurately reflected the Iranian statement.

Brent suffered another steep drop around 8:20 a.m. around an Al Jazeera report that Washington had approved a draft agreement presented through Qatari mediators. Further reports said the two sides had made concessions on Iran's nuclear program and frozen assets. But a senior Iranian official rejected the claim of a breakthrough, saying an agreement remains far off. Qatar confirmed both sides were reviewing proposals and no agreement has been announced. The reported diplomatic breakthroughs remain unverified and the Strait of Hormuz remains restricted.

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JetBlue Raises Bag Fees for the Third Time in a Year as Fuel Costs Bite

Source: CNBC

JetBlue Airways raised the price of checking a bag for many customers for the third time in less than a year, as high fuel costs eat into industry profits. A first checked bag for economy travelers now costs $50, up from $45, if purchased more than 24 hours before departure during a nonpeak period. Within 24 hours of departure, the fee is $60.

During peak periods such as holidays or summer, the fee is $55 if bought more than 24 hours ahead, up from $49, and $70 within 24 hours. Holders of a co-branded JetBlue credit card or elite frequent flyer status are exempt. JetBlue said it is adjusting fees "to help offset rising fuel and operating costs" while keeping base fares competitive.

Jet fuel, airlines' biggest cost after labor, has roughly doubled this year since the start of the Iran war in February, costing carriers billions and driving up ticket prices. Jet fuel was $4.44 a gallon on the U.S. Gulf Coast on Tuesday, according to the Energy Information Administration. Other U.S. airlines have often followed JetBlue's fee increases.

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Binance Heist Details Emerge: Malware and Bogus Job Interviews

Source: The Guardian

The hackers behind the $6.3 billion (4.7 billion pound) Binance heist used bogus job interviews, malicious software and an internal AI tool, the company revealed. The compromise of the world's largest cryptocurrency exchange began with an inadvertent malware download in June, led to a recruitment scam in September and ended with a raid on hot wallets last week.

According to a Tuesday update, the hackers gained a first foothold in the summer when an engineer inadvertently downloaded malware that exposed the employee's role and that of others on the team responsible for Binance's crypto wallet infrastructure. A fake project director then contacted a different engineer on a legitimate job-hunting platform, leading to a first-round video interview with a sham HR representative and a second-round interview on a chat app with the "chief executive" of a fictitious company. During that second interview the engineer was tricked into downloading malware.

On Oct. 20, the attacker used the compromised computer and an internal AI tool to gain control of that engineer's system and that of a second wallet developer on the same team. On Oct. 29, the attacker used the second developer's computer with credentials stolen from the first engineer to trigger a malicious script. Binance said $2.85 billion of the $6.34 billion drained had been frozen or intercepted. The FBI blamed North Korea, and Pyongyang on Tuesday called the accusation "absurd rhetoric."

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Supermarket Freezers Hit by Cyber-Attacks in 10 European Countries

Source: BBC

A spate of cyber-attacks hit supermarket chains across at least 10 European countries on Monday, prompting EU officials to warn of a deliberate attempt to disrupt the food supply chain. Supermarkets reported problems in Belgium, Estonia, Finland, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Germany and Sweden, with significantly higher freezer temperatures forcing retailers to discard food. Temperatures reportedly rose as high as 50C (122F). No one has admitted carrying out the attacks.

EU food and agriculture commissioner Christophe Hansen said the bloc was taking the incidents very seriously and warned of further disruption. Commission spokesman Thomas Regnier was careful not to attribute blame but said the incidents "show once again how cyber-attacks can disrupt essential services and affect citizens' daily lives," adding that "these are not isolated incidents."

Italy's government convened intelligence chiefs but said the impact was "currently very limited," with at least four Co-op supermarkets in Sicily and one business in Tuscany affected. Belgium was among the hardest hit, with dozens of stores reporting refrigeration failures and federal prosecutors opening an investigation. In Ireland, 13 SuperValu stores were affected, and Portugal's Mosqueteiros group linked incidents at seven Intermarché stores to an attack on an external provider managing refrigeration systems. The attacks came three weeks after a cyber-attack disrupted as many as 700 French grocery stores.

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Outback Steakhouse Franchisee Files for Bankruptcy; Parent Bids $26.3 Million

Source: Fox Business

Outback Steakhouse parent Bloomin' Brands is moving to acquire 61 restaurants operated by a major franchisee. Out West Restaurant Group filed for Chapter 11 bankruptcy protection in Delaware on Monday, according to a filing with the Securities and Exchange Commission.

Bloomin' Brands has agreed to buy Out West's assets for about $26.3 million, subject to adjustments and the assumption of specified liabilities, and is expected to serve as the "stalking-horse" bidder, setting an initial offer others can top. The deal remains subject to bankruptcy court approval. The company also agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to support operations during the proceedings.

Out West is affiliated with Cerca Trova Restaurant Group, which operates Outback locations across western states including California, Arizona, Nevada, Colorado and New Mexico. The company said the filing would have no immediate impact on customers, employees or daily operations, and involves franchisee-operated restaurants rather than Bloomin' Brands' corporate locations. Bloomin' Brands also owns Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar.

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