CNBC Daily Open: Everyone loves Reddit
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here .
Rising cloud revenue for Alphabet
Google-parent Alphabet's third-quarter earnings beat expectations. The company's quarterly revenue was $88.27 billion, up 15% year on year, boosted by its cloud division's 35% jump in revenue from a year ago. Google's search and advertising revenue also grew. Net income was $26.3 billion, 33.5% higher than the year-ago quarter.
Reddit swings to profit
Reddit shares surged almost 25% in extended trading Tuesday, breaking the $100 barrier for the first time, on the company's better-than-expected third-quarter results. Notably, Reddit turned profitable in the third quarter with net income of $29.9 million, compared with a net loss of $7.4 million during the same quarter a year ago.
Mixed markets
On Tuesday, the Nasdaq Composite rose 0.78% to close at a new high and the S&P 500 added 0.16%, but the Dow Jones Industrial Average lost 0.36%. The pan-European Stoxx 600 index lost 0.57%. Earnings results from European companies were mixed, causing trading in the region to be choppy.
End of zero interest rates era
Larry Fink, CEO of BlackRock, thinks the U.S. Federal Reserve will lower rates only once, by 25 basis points, for the rest of this year because of high "embedded inflation," Fink said at a panel Tuesday. At the same event, Morgan Stanley CEO Ted Pick said the era of zero interest rates and zero inflation is over.
[PRO] Citi likes these small-cap stocks
The Russell 2000 has gained around 10.4% so far this year. While that trails the S&P 500's 22% increase in the same