More than one third of the S&P 500 index components, or 186 companies, are set to report Q3 results this week, including some of the top names in the index. Today's lineup includes manufacturing behemoth's 3M, and Caterpillar, healthcare giants Pfizer, Eli Lilly, and Merck, as well as tech titans Microsoft and AMD. Earnings this quarter are beating expectations at a greater rate than usual.
Intensifying its battle with Intel in the data center chip market, Advanced Micro Devices has agreed to buy Xilinx in a $35B all-stock deal. The tie-up would create a combined firm with 13,000 engineers, with a nimble manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing. Since taking over AMD in 2014, Lisa Su has focused on data centers that power internet-based applications and services, which have fueled the rise of artificial intelligence and 5G telecom networks.
Not paying any attention to China's recent sanctions, the U.S. State Department has signaled its approval for a potential $2.4B sale of anti-ship missiles to Taiwan. As many as 100 Harpoon Coastal Defense Systems built by Boeing could be shipped. On Monday, Beijing said it would impose sanctions on Boeing's defense unit, Lockheed Martin and Raytheon over another $1.8B arms sales to Taiwan. China has not ruled out the use of force to achieve reunification.
With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.