TSMC earnings lift chip stocks, Robinhood CEO on new tools: Morning Brief

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Seana Smith,Kathy Bostjancic,Taiwan Semiconductor

The tech sector is getting a boost higher Thursday morning after Taiwan Semiconductor Manufacturing Company (TSM) topped third quarter earnings results and...

Nationwide senior vice president and chief economist Kathy Bostjancic reacts to September's retail sales, the figure rising by 0.4% month-over-month, andIt's 9 a.m. here in New York City this Thursday, October 17th.Good morning, everyone.September retail sales data coming in a little hotter than anticipated last month, the mid continued strength in the US consumer, while weekly in jobless claims came in lower than expected.

Over year third quarter revenue increasing by about 39% net income diluted EPS both increased as well here by about 54% 54.2% and compared to the second quarter of 2024 3rd quarter results, uh, quarter over quarter represented a 12.8% increase in revenue, 31.2% increase in net income as well here. And that's why these chip companies are continuing to see and be able to tout some of this demand because everyone is still trying to scale up until we can get to the point where we're finally at that model stage to figure out exactly where these things are gonna play into our everyday lives, that are, then the application on top of those models, sitting on top of the chips.

And remember that disproportionately weighs on lower income and middle income households, so there's still a restrictiveness. But if if you look at the broader market, about half of of trading happens on desktop and Web because the additional screen real estate allows traders to do different things like if if they wanted to trade from the chart or at least trade with the market data and the tools available on one interface, it's It's just more difficult to do that on mobile.

Uh, certainly we're there on mobile, but of course, we have to expand beyond that into more tools and more platform forms so that that's a part of it. If you don't have a a group of companies not owned by big banks out there innovating and and trying to to change the game, Yeah, I mean, I think that that's been a big problem for today's active trader.

So yesterday the hood summit, we announced three products, uh, index options, futures and, of course, Robin Hood legend, along with a suite of smaller improvements and and nice features that customers have been asking for.We're nowhere close to done in fulfilling the mission.We want this to be a heavy company and kind of like ignore the the short term up and down fluctuations of of the stock and just focus on building shareholder value over the long term.

And I think that almost tells us more about the direction here from uber and then just taking a step back and talking about maybe more of the macro landscape.We're clearly seeing that within the bank earnings, uh, over the last week or so And so when you see the potential size of this deal and what this would ultimately mean, uh, for Uber's a larger footprint here going forward, you also have to think that maybe we could see more of these types of deals and more of the sizes of deals.

And obviously regionals could have a bigger impact there, just in terms of what this could mean for growth down the line. You can only wonder, especially for the current quarter impacts how that's going to continue to, especially with the hurricane season not fully being accounted for in the quarter that they're reporting for, um, how that's going to continue to transpire into this current quarter and what that will mean for some of the forecasting as well here for travellers.But it looks like, at least for now, the street looking past whatever that cost could be.

We're actually looking at gains here on the heels of the stronger than expected retail sales print and also the better than expected jobless claims data out this morning. That's helping the chip stocks rebound from the earlier sell off that we saw on the heels of some worrisome signs out from a SML again communication services also moving to the upside.And since we are seeing tech by far the leader within this space here today, let's take a look within the NASDAQ 100.They're talking about that rebound from the earlier self that we saw earlier this week and more specifically, just taking a look at the chip sector here.

Great to see you, by the way, Michelle, Uh, not an outright shift away from mega cap tech, but it certainly is a broadening out that we are seeing into some of those small caps.What type of profit taking we might be seeing in tech that's leading into some of those inflows in small caps.And so I think, a lot of the market that's broadening, particularly if you're looking at small caps.The 50% of the excuse me, the 50 basis points rate cut that we had recently.

 

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