Apple reported record revenue for the September quarter, propelled by a modest rebound in iPhone sales that came ahead of its release of new AI tools. For Apple’s fiscal fourth quarter, total sales were $94.9 billion, beating the $94.5 billion analysts were expecting, according to FactSet. Net income fell around 35% to $14.7 billion due to a judicial ruling in Europe that will force Apple to pay more than $14 billion in taxes to Ireland. The launch of Apple Intelligence, a heavily advertised set of AI tools, has prompted a rally from investors who hope the features will lead users to upgrade their smartphones. Apple’s iPhone business, which accounts for around half of overall sales, had sales of $46.2 billion. The results represent a turnaround from the first half of the year, when smartphone sales were sluggish for consecutive quarters. In China, where competition intensified after domestic smartphone champion Huawei released a high-speed phone, Apple’s revenue reached $15 billion for the region, a slight decline from the same period last year and nearly 6% below analyst expectations.

For the second consecutive day, the Swiss market languished in red right through the day's session, as weak earnings updates from U.S. technology majors Microsoft Inc., and Meta Platforms, and weak euro zone inflation data hurt sentiment and sent stock prices drifting down south on Thursday. The benchmark SMI ended down 174.78 points or 1.46% at 11,792.92. The index touched a low of 11,745.30 in the session. Swisscom lost 5.05% and Partners Group ended 3.71% down. Julius Baer, UBS Group, VAT Group, Sonova and Roche Holding ended lower by 2 to 2.5%. Alcon, Logitech International, Novartis, Swatch Group, ABB, SIG Group, Straumann Holding, Givaudan, Swiss Life Holding, Richemont, Nestle, Zurich Insurance, and Holcim lost 1 to 1.9%. Avolta ended nearly 2.5% down, despite the company confirming its medium-term targets after reporting strong third-quarter results. Geberit bucked the trend and moved up by about 4.7%. The company booked a year-over-year rise in third-quarter net income and net sales to 150 million francs and 762 million francs, respectively, from 148 million francs and 728 million francs.

Europe
European stocks closed notably lower on Thursday as disappointing earnings updates from U.S. tech majors Microsoft Inc., and Metal Platforms, and data showing a bigger than expected increase in euro zone inflation weighed on sentiment. Microsoft warned of slower growth for the year, while Meta Platforms reported a significant acceleration in artificial intelligence-related infrastructure expenses. Both the companies reported disappointing quarterly numbers. The pan European Stoxx 600 ended down 1.2%. The U.K.'s FTSE 100 closed down 0.61%, Germany's DAX and France's CAC 40 drifted down 0.93% and 1.05%, respectively, while Switzerland's SMI settled lower by 1.46%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Poland, Russia, Spain, Sweden and Turkiye ended weak. Iceland and Portugal closed higher, while Greece ended weak. In the UK market, Smith & Nephew tumbled 12.5% as the company lowered its full-year sales forecast due to softer trading in China. Persimmon dropped 7.5% and Taylor Wimpey closed down 6.7%. Howden Joinery Group, Whitbread, Barratt Redrow, Kingfisher, Vistry Group, Schrodders, Berkeley Group Holdings, Next, Entain, IMI, British Land, B&M European Value Retail, Rolls-Royce Holdings, Endeavour Mining, Segro, Associated British Foods and Frasers Group lost 3 to 5.2%. Smith (DS) Plc shares zoomed 14.3% Coca-Cola HBC rose sharply after raising its full-year outlook. Shell gained 3.5% after reporting a smaller than expected drop in third-quarter profit. British American Tobacco, Imperial Brands and Rentokil Initial advanced 1 to 1.8%. In the German market, Zalando closed down 4.1%. SAP, Rheinmetall, Infineon, Volkswagen, MTU Aero Engines, Beiersdorf, BMW, Vonovia, Porsche, RWE, Adidas, Henkel and Mercedes-Benz lost 1 to 2.5%.

United States
Disappointing quarterly results from big technology companies pushed stock indexes lower Thursday, sending the S&P 500 to its first monthly loss since April. The S&P 500 fell 1.9% Thursday, snapping a 29-day streak without a daily loss of 1% or more, the longest such run in three years. The broad stock index shed 1% in October. The tech-heavy Nasdaq Composite had its worst day in nearly two months, dropping 2.8% Thursday to end October 0.5% lower. The Dow Jones Industrial Average declined 0.9%, or 378 points. The blue-chip index finished the month down 1.3%. Comcast said it is exploring the creation of a separate company for its cable networks and will consider partnerships in streaming, a sign of how profound changes in the media business are reshaping the industry landscape. The potential strategic moves come as Comcast, like many of its industry peers, is trying to navigate the challenges posed by cable TV cord-cutting - which have made the networks business much more difficult - while also pushing toward profitability in its streaming business. Ford Motor is pausing production of its electric F-150 Lightning truck for several weeks, as the outlook for electric vehicles remains downbeat, with car companies confronting slumping demand. The Dearborn, Mich., automaker said Thursday that it would idle the assembly factory that makes the battery-powered truck from mid-November to Jan. 6. The Lightning, a centerpiece of the legacy auto manufacturer’s EV strategy, has been the victim of steep price cuts and waning interest from consumers.

Asia
The Asian and Australian stock markets showed a mixed trend at the end of the week. The drop was particularly pronounced in Tokyo, where the Nikkei-225 fell by 2.2 per cent. The hawkish statements made by the Japanese central bank (BoJ) the previous day continue to have an impact here.

Bonds
The yield on the benchmark U.S. 10-year Treasury note ended Thursday at 4.282%, according to Tradeweb, up from 3.798% at the end of September. Yields rise as prices fall.

Analysis
Bank of America raises Airbus target to EUR 170 (161) – Buy
JP Morgan raises Traton target to EUR 30 (28) – Neutral
Citi lowers Knorr-Bremse target to EUR 88 (90) – Buy

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