Today’s top stories:

1. OpenAI launches search engine called SearchGPT.

2. Amazon reports record earnings as AI drives cloud growth.

3. Apple’s China sales slows.

4. Intel CEO plans the ‘most audacious rebuild.’

5. October U.S. jobs report weaker due to hurricanes and strikes.

6. Major cloud providers rake in $63 billion due to AI demand.

Markets Snapshot

Economic Calendar

Last economic meeting of the week 🗓️ 

1. U.S. economy meetings: 🇺🇸 

• October Non-Farm Payrolls (Fri 1 Nov): Crucial because they provide a comprehensive snapshot of the U.S. job market, excluding sectors like farming and non-profits. 🧑‍💼 

2. Company earnings: 💹 

Roughly 20% of the top 500 U.S. companies are going to report their earnings this week. This is important and can sway the financial markets. Wall street will be particularly active this week peeling their eyes over every number! 👀 

Today’s top stories

1. OpenAI launches real-time search in ChatGPT, challenging Google's reign 🔍

Key takeaways:

• OpenAI integrates live web search into ChatGPT with third-party data providers.

• Feature includes real-time access to sports scores, stock prices, and weather.

• Major news organizations partner for content, including AP, Reuters, and Financial Times.

• Roll-out starts with paid users and includes Chrome browser extension.

• Results will include source links to address AI hallucination concerns.

What this could mean for you:

• One-stop destination for both chatting with an LL and searching the web without switching platforms.

• More current and accurate responses from ChatGPT with cited sources.

• Chrome users can make ChatGPT their default search engine.

• Better research capabilities with follow-up questions on search results.

What this could mean for the search engine industry:

• Google's 25-year monopoly on search might finally face real competition - it's like watching David (with a very expensive slingshot) take on Goliath. 🎯

• People now have solid options like Perplexity.ai and SearchGPT apart from Google.

2. Amazon hits $158.9 billion revenue as AI drives cloud growth 📈

Key takeaways:

• Revenue jumped 11% YoY to $158.9 billion, with net income reaching $15.3 billion.

• AWS cloud revenue surged 19% to $27.5 billion, boosted by AI and machine learning.

• Ad revenue grew 19% to $14.3 billion with new AI-powered features.

• Prime subscriptions increased 11% to $11.3 billion with expanded benefits.

• CapEx was roughly $75 billion this year with high potential to increase further in 2025.

What this could mean for the e-commerce industry:

• AI integration in online shopping is in full swingand with increased CapEx in 2025, Amazon is prepping itself for a long-term play in AI.

• Remember what the old folks used to say: "In retail, you're either Amazon or you're Amazon't." (Get it? Like "aren't"? I'll see myself out...)​​​​​​​​​​​​​​​​ 🤢 

3. Apple's China sales drop to $15 billion as global growth slows 📱

Key takeaways:

• Total revenue grew 6.1% to $94.9 billion, below 7% analyst expectations.

• China revenue fell to $15 billion, missing $15.8 billion forecast.

• iPhone sales rose 5.5% to $46.2 billion.

• OpenAI's ChatGPT integration arriving in December.

• Company projects lower-than-expected holiday quarter growth in Q4 2024.

What this could mean for you:

• New M4 chip Macs coming in 2025 will boost AI capabilities.

• December brings AI photo editing and ChatGPT to your Apple devices.

• App Store changes in EU might mean cheaper apps through third-party stores.

4. Intel projects $14.3 billion revenue as CEO plans "most audacious rebuild" 🏗️

Investments in Intel vs. Nvidia and the Philadelphia Semiconductor Index

Key takeaways:

• Q4 revenue forecast at $13.3-14.3 billion, beating $13.6 billion estimates.

• Company plans 16,500 job cuts amid restructuring.

• Orders for Intel’s AI chip, Gaudi, missed $500M revenue target.

• Gross margin dropped to 15% from historical 60%.

• Manufacturing unit sales fell 8% to $4.4 billion.

What this could mean for the Intel’s future:

• Intel's gone from being the cool kid in school to that one trying to convince everyone they're still relevant. 🎯 

• The chip giant's playing catch-up in AI feels like watching a Ferrari try to win a race after forgetting to upgrade the engine from 10 years ago. 🏎️

• Rivals AMD and Nvidia are on course to more than $5B and $100B respectively - gives Intel perspective of how far they’re behind. 👀 

• CEO Gelsinger intends to keep the company together and be competitive in spite of challenges. 💪 

5. October US jobs report expected to show weak gains of 110,000 amid hurricanes and strikes 📊

Layoffs have risen but far lower than the 1st year of Covid and the first three months of 2023

Key takeaways:

• Economists forecast 110,000 job gains for October, less than half of September's increase.

• Two hurricanes (Helene and Milton) and Boeing strike with 33,000 workers impacted the job numbers.

• Jobless rate currently at 4.1%, near historic lows after creating 16 million new jobs under Biden.

• Consumer confidence index reached highest level since March 2021.

• Federal Reserve likely to proceed with quarter-point rate cut on November 7.

How it could impact you:

• Expect continued stability in mortgage rates with the planned Fed rate cut.

• Strong consumer spending suggests stable prices for everyday items.

• The temporary dip in job numbers masks an underlying healthy labor market with strong consumer confidence. While hurricanes and strikes are creating short-term noise, the fundamentals remain solid. 🌪️

6. Cloud giants rake in $63 billion as AI demand surges 🚀

CapEx for top companies building out their AI businesses

Key takeaways:

• Combined cloud revenue for Amazon, Microsoft, and Google hit $62.9 billion last quarter, up 22.2% year-over-year.

• Tech giants spent $50.6 billion on property and equipment, primarily for AI infrastructure.

• Microsoft projects AI products and cloud services to exceed $10 billion annual revenue.

• Cloud growth rates have increased for four consecutive quarters.

• Major private AI companies like OpenAI and Anthropic rely heavily on these cloud services.

What this could mean for you:

• Expect faster, more sophisticated AI tools in your everyday apps as cloud infrastructure expands.

• Higher cloud computing costs might trickle down to subscription prices for services you use.

• Better AI assistance for work tasks in the form of AI agents, but possibly at premium prices.

What this could mean for the cloud computing industry:

• The big three cloud providers are treating AI like it's an all-you-can-eat buffet, but their plates (or rather, data centers) aren't quite big enough to handle the feast as AI demand is currently outpacing supply. 🍽️

• These tech giants are in a fascinating position - they're simultaneously the gold miners and the people selling the shovels in this AI gold rush. The real question is: who's going to strike it rich first, and who's going to end up with a very expensive hole in the ground? 🕳️ 

Other reads

AI

Swedish startup raises $84M to build AI agents.

Sam Altman says compute shortage delaying OpenAI’s product.

U.S. military confirms first OpenAI purchase.

Tech

Here’s what news in iOS 18.1.

Amazon CEO hints at an ‘agentic’ Alexa.

EU imposing duties on EVs from China.

Startup

MealMe raises $8M for food ordering tech.

VanEck invests in Web3 gaming startup Gunzilla.

General Atlantic leads $500M funding for Startup Insider.

Business

Intel stock jumps on positive outlook despite losses in Q3.

Apple sales rise 6% due to iPhone 16 demand.

US Politics

Harris warns Trump will slash Obamacare; Trump denies mentioning it.

Judge rules Musk can continue election cash giveaways.

Harris and Trump continue to battle for votes with 5 days to go.

Fascinating

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