Chipmaker TSMC’s profits rise, retail sales rise

Investing.com – S&P 500 futures and contracts rose slightly on Thursday, as markets awaited retail sales and a slew of corporate earnings reports. Taiwan Semiconductor Manufacturing Co’s third-quarter profit beat expectations as the world’s largest contract chipmaker said demand for its artificial intelligence-related products was “extremely robust.” Elsewhere, Chinese stocks are falling after a muted response to a government briefing that revealed new support for the country’s property market.

1. Futures subdued

U.S. stock futures were subdued on Thursday as investors awaited new economic data and a range of corporate returns.

At 03:33 ET (07:33 GMT), the contract was mostly unchanged, having gained 6 points, or 0.1%, and futures had gained 70 points, or 0.3%.

The 30-stock stock posted its third record close in four sessions on Wednesday, while the benchmark and tech-heavy stock also rose.

shares Morgan Stanley (NYSE:) rose 6.5% to hit an all-time high after the lender reported solid earnings, fueled by improving investment banking revenues. Larger regional banks also increased.

Meanwhile, both the index and the S&P Small Cap 600 posted their highest closes since 2021, a sign that some investors may be switching from pricier technology stocks to cheaper segments.

2. TSMC’s profit increases due to strong AI demand

Taiwan Semiconductor Manufacturing Co (TW:) – the world’s largest contract chipmaker – reported stronger-than-expected third-quarter profit on Thursday as sustained demand from the artificial intelligence industry bolstered its top line.

The group also gave an optimistic outlook for the current quarter, citing, among other things, improved capacity utilization. “We continue to see extremely strong AI-related demand from our customers,” CEO CC Wei added in a webcast following the results.

TSMC posted a net profit of T$325.26 billion (US$10.1 billion) in the three months ended September 30, according to a press release. The figure was above a Reuters estimate of T$300.2 billion.

Thursday’s results come just days after semiconductor equipment maker ASML (AS:) (NASDAQ:AS:) issued a weak 2025 sales outlook, citing slow chip demand from sectors outside of AI.

3. Retail sales ahead

Investors will have a chance to look at new U.S. retail sales on Thursday, which could provide more insight into the state of the economy as the Federal Reserve embarks on a potential rate-cutting cycle.

Economists estimate that US economic prices rose 0.3% in September, accelerating from 0.1% in the previous month.

In August, the monthly figure, which mainly includes goods and is not adjusted for inflation, rose unexpectedly, while the July figure was also revised upwards.

Signs of resilience in consumer spending could bode well for the Fed’s hopes of delivering a so-called “soft landing,” ending a period of elevated inflation without triggering a broader economic downturn. The central bank cut interest rates by a massive 50 basis points at its most recent meeting last month, and traders are betting policymakers could introduce further cuts at their final two meetings in 2024.

4. Chinese stocks fall as real estate briefing disappoints

Both China and averages slipped on Thursday after a disappointing briefing on more support for the country’s struggling property market.

China’s housing ministry announced it would introduce increased aid to the property market, including a larger whitelist of property developers with easy access to government funding.

It was the latest in a series of high-profile announcements by the Chinese government that began in late September as Beijing pushed for enough support for the economy to meet its annual growth target.

5. Meta cuts jobs on WhatsApp and Instagram – The Verge

Facebook owner Meta Platforms Inc (NASDAQ:) has started laying off employees in several divisions, most notably WhatsApp, Instagram and Reality Labs, The Verge reported on Wednesday, while some employees also said they had been laid off.

The cuts appeared to be part of an internal restructuring of teams rather than a company-wide workforce reduction, the report said, after Meta cut over 20,000 jobs in the last two years.

Some Meta employees also posted about the staff cuts on social media.

The latest round of job cuts comes after Meta cut some positions in its Reality Labs division earlier this year. This followed cuts of over 10,000 jobs in 2023 and approximately 11,000 jobs in 2022 as the company deteriorated its growth prospects following the COVID crisis.