🧸Amazon: The cloud is dark, weak forecast💸

Shares of the tech giant nose-dived in the after-hours as the AWS cloud unit posed a poor forecast for the fourth quarter, although its third-quarter earnings were relatively within expectations. 

The slowing growth in AWS reflects the same situation faced by Microsoft’s Azure cloud unit and refreshes investors’ concern about the possible weakening enterprise spending hitting cloud computing demand. 

There is no doubt that an ominous sign is brewing for the business unit, even as advertising revenue was up 25%. Nonetheless, Pika World is exploring an entry point in the downward spiral cycle. 

🍏Apple: It’s a green one!🔑

The company gave investors relief in an otherwise dull tech earnings season with a better set of the earnings report. While shares were down slightly, it achieved significant momentum in terms of its Mac sales which were up 25%, hitting $11.5 billion, smashing Wall Street’s estimate of $9.3 billion. 

It comes as Apple navigate well in an improving supply chain environment, and with the introduction of new models, it spurs recent sales. 

However, services seem to see a slightly less rosy outlook as revenue of $19.2 billion fell short of the $20.1 billion expectation. The bright spot is that it has more than 900 million subscribers to its service business unit, a jump from 860 million in the prior quarter, which is still considered an encouraging sign. 

📮What’s on the menu today?📖

Today will be an important day for the economic data. 

At 8.30 pm, we will have the Core PCE Price Index (MoM), which is expected to moderate growth to 0.5% from 0.6%. 

The Employment Cost Index (QoQ) will be released simultaneously, and we should see around 1.2%. 

Next, we have personal spending data, which we expect to remain similar to a growth of 0.4%. 

The above economic data will drop hints on the financial health and consumer spending power that will provide insights into the potential path of inflation.