[Music] Welcome to Market Catalyst. I'm Julie Hyman. We are 30 minutes into the US trading day.Here's what we're watching this hour. First up, Nvidia. $5 trillion valuation.We'll have more on Nvidia and on the tech trade ahead of Mag 7 names reporting after the bell. Plus, we'll have more earnings coverage on companies ranging from Boeing to CBS. and we'll speak with the CEO of Securitize as the tokenization firm prepares to go public via spa.Let's take a look at the major averages here this morning. We do ...

It has been about a month since the last earnings report for Carnival (CCL) . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Carnival due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Carnival Corporation before we dive into how investors and analysts have reacted as of late.Carnival Q3 Earnings Beat ...

Core Insights - Royal Caribbean has announced its new lineup of European holidays for the 2027 season, featuring the Royal Beach Club Santorini and the return of Legend of the Seas for 7-night Mediterranean adventures [1][3][10] European Holiday Highlights - The Royal Beach Club Santorini will offer a unique experience combining the island's volcanic beaches with Royal Caribbean's signature offerings, including local cuisine and cultural exploration [2][4] - Legend of the Seas will provide 7-night Western Mediterranean cruises from Barcelona and Rome, featuring 28 dining options and new entertainment, including Roald Dahl's "Charlie and the Chocolate Factory" [6][10] - Mariner of the Seas will debut in Southampton, offering 2- to 9-night getaways, including first-time visits to Porto, Portugal [4][7] Onboard Experiences - Royal Caribbean ships will feature a variety of dining options, entertainment, and activities, including the largest waterpark at sea, adrenaline-pumping attractions, and serene adults-only spaces [5][6] - Families can enjoy diverse dining experiences, live music, and thrilling activities such as the FlowRider surf simulator and rock-climbing walls [5][10] Additional Destinations and Itineraries - Rhapsody of the Seas will return to the Mediterranean with 7-night holidays to destinations like Tangier, Morocco, and Istanbul, Turkey, including visits to the Royal Beach Club Santorini [10] - Explorer of the Seas will offer 7-night journeys across Italy, France, Spain, Croatia, Montenegro, and the Greek Isles, featuring various onboard activities and dining options [10][11] - Odyssey of the Seas will provide 7-night Greek Isles vacations, including stops at Mykonos and Santorini, with a focus on high-tech entertainment and diverse dining [10]

Core Insights - Royal Caribbean Cruises Ltd. (NYSE:RCL) experienced a significant drop of 8.53% in stock price, closing at $292.95, after missing revenue expectations for Q3 [1][3] Financial Performance - Revenues for Q3 increased by 5% to $5.139 billion from $4.886 billion year-on-year, but fell short of analyst expectations of $5.17 billion [2] - Attributable net income rose by 42% to $1.575 billion from $1.111 billion year-on-year, with earnings per share (EPS) reported at $5.74, exceeding company expectations due to higher close-in demand and lower costs [2] - For the nine-month period, revenues grew by 7.8% to $13.7 billion from $12.7 billion, while attributable net income increased by 52% to $3.5 billion from $2.3 billion [3] Future Outlook - The company anticipates strong momentum to continue, driven by accelerated demand, growing loyalty, and guest satisfaction [3] - The President and CEO expressed confidence in the company's booked position for 2026 and beyond, projecting earnings per share to reach a $17 handle, aligning with 2027 targets [4]

With a market cap of $34.3 billion, Carnival Corporation & plc (CCL) is the world’s largest cruise company, providing leisure travel experiences across North America, Australia, Europe, and other international markets. Operating under well-known brands such as Carnival Cruise Line, Princess Cruises, Holland America Line, and Cunard, the company carries nearly half of global cruise guests. Shares of the Miami, Florida-based company have outperformed the broader market over the past 52 weeks. CCL stock has ...

Nvidia - Nvidia shares surged 5% to an all-time high following CEO Jensen Huang's keynote at the developers conference, highlighting the company's pivotal role in the AI boom [3][7] - The company announced a $1 billion investment in Nokia, which saw its shares increase by nearly 23%, and a collaboration with Oracle to build AI supercomputers for the U.S. Department of Energy [3][7] - Nvidia is also partnering with Palantir Technologies to develop an integrated AI technology stack [3] Regeneron Pharmaceuticals - Regeneron shares rose close to 12% after reporting stronger-than-expected quarterly earnings, driven by robust sales of eczema treatment Dupixent and skin cancer treatment Libtayo [4] Skyworks Solutions and Qorvo - Skyworks Solutions and Qorvo announced a merger plan, with both companies' shares increasing by about 6% amid challenges from major customer Apple, which is developing its own modem chips [5] United Parcel Service (UPS) - UPS shares increased by 8% after exceeding analysts' estimates for third-quarter revenue and adjusted earnings per share, indicating progress on a turnaround plan that includes operational streamlining and workforce reduction [6][8] Alexandria Real Estate Equities - Alexandria Real Estate Equities missed estimates for third-quarter revenue and adjusted funds from operations (AFFO), leading to a nearly 20% drop in shares, the largest decline among S&P 500 constituents [9] Royal Caribbean Cruises - Royal Caribbean shares fell 8.5% after reporting third-quarter revenue slightly below expectations and a weaker-than-expected outlook for the fourth quarter, impacted by weather disruptions and increased operating costs [10]

Market Overview - The U.S. stock market is reaching record highs, with the S&P 500 up 0.4%, the Dow Jones Industrial Average up 265 points (0.6%), and the Nasdaq composite up 1% [1] - The bond market is experiencing modest movements as investors await key events, including the Federal Reserve's interest rate announcement and earnings reports from major companies [2] Company Performance - United Parcel Service (UPS) shares increased by 7.5% after reporting stronger-than-expected profit and revenue, along with a positive forecast for the holiday shipping season [3] - PayPal's stock rose 6.9% following a better-than-expected profit report and the announcement of a quarterly dividend for shareholders, as well as a new payment deal with OpenAI's ChatGPT [4] - Skyworks Solutions saw an 8.1% increase in stock price after announcing a merger with Qorvo in a cash-and-stock deal valued at $22 billion, with Skyworks shareholders set to own approximately 63% of the combined entity [4] - Royal Caribbean's stock fell 8.7% despite reporting stronger profits, as revenue fell short of expectations due to bad weather and the temporary closure of a destination [5] - D.R. Horton experienced a 3.3% decline in stock price after reporting weaker-than-expected profits, citing challenges for homebuyers and cautious consumer sentiment [6] - Amazon's stock rose 1.5% after announcing a reduction of about 14,000 corporate jobs (approximately 4% of its workforce) to increase spending on artificial intelligence while cutting costs [7] Economic Indicators - The Federal Reserve is expected to announce a third interest rate cut at its final meeting of the year, which is crucial for the stock market that has rallied on these expectations [8] - Fed officials have indicated a potential continuation of rate cuts into next year, although they may need to adjust if inflation rises significantly [9] - The yield on the 10-year Treasury eased to 3.98% from 4.01% [9] International Markets - International stock markets showed mixed results, with Japan's Nikkei 225 down 0.6% and South Korea's Kospi down 0.8% [10] Commodity Market - Gold prices have struggled after reaching nearly $4,400 per ounce last week, now dropping below $4,000 per ounce, with a year-to-date gain of approximately 50% [11]

Core Insights - Royal Caribbean Group reported third-quarter adjusted EPS of $5.75, exceeding estimates of $5.69, while revenue of $5.14 billion fell short of expectations of $5.17 billion, leading to a more than 7% drop in shares intra-day [1] - The company served 2.5 million guests, a 7% increase year-over-year, with load factors at 112%, up one point from the previous year, and net yields increased by 2.8% as reported [1] Financial Performance - Adjusted EPS for the full year 2025 is raised to a range of $15.58–$15.63, indicating a 32% year-over-year growth but slightly below the consensus estimate of $15.69 [2] - The quarterly outperformance was attributed to "higher than expected close-in demand and lower costs" [2] Strategic Developments - Management announced the Royal Beach Club Santorini, an exclusive destination set to open in summer 2026, as part of the expansion of its land-based portfolio from two to eight locations by 2028 [2]

Group 1 - Major U.S. equities indexes reached new intraday highs, driven by strong corporate earnings and the commencement of the Federal Reserve's two-day meeting [6][5] - United Parcel Service (UPS) shares surged following the company's strong quarterly results, indicating successful turnaround efforts [2][6] - Sherwin-Williams (SHW) emerged as the best-performing stock in the Dow after exceeding analysts' earnings estimates for the third quarter [2] Group 2 - PayPal (PYPL) stock experienced a significant increase after announcing a partnership with OpenAI to integrate its digital wallet into ChatGPT for purchases [2] - F5 (FFIV) shares declined due to a soft outlook, as the company anticipates disruptions in sales cycles following a recent cybersecurity incident [3] - Royal Caribbean Cruises (RCL) shares fell after reporting quarterly revenue that did not meet analysts' expectations [3][6]

Core Insights - Roblox Corporation (RBLX) is set to release its third-quarter 2025 results on October 30, with previous earnings exceeding the Zacks Consensus Estimate by 10.9% [1] - The company has consistently beaten earnings expectations, achieving an average surprise of 15.9% over the last four quarters [1] Q3 Estimate Revisions - The Zacks Consensus Estimate for RBLX's third-quarter 2025 loss per share is 54 cents, compared to an adjusted loss of 37 cents in the same quarter last year [2] - Revenue estimates for the quarter are projected at $1.7 billion, reflecting a 50.7% increase from the previous year's figure [2] Factors Influencing Q3 Performance - Continued user engagement and viral content are expected to support RBLX's top line, with record daily active users (DAUs) and engagement hours noted in the Asia-Pacific region, particularly in Japan, India, and Indonesia [3] - Popular games like "Grow a Garden" and "Steal a Brainrot" have likely continued to attract users, enhancing overall ecosystem spending [4] Monetization and Revenue Drivers - Monetization strategies established in the second quarter, including expansion into new genres and partnerships with brands like FIFA and Netflix, are anticipated to bolster revenue [5] - Ad monetization initiatives, such as Rewarded Video with Google, have also contributed to revenue potential [5] Cost Pressures on Profitability - Elevated expenses related to infrastructure scaling and higher developer payouts are expected to constrain the bottom line, despite strong revenue trends [6] - The need to support record concurrent players through owned servers and cloud partnerships has increased costs, while developer payouts have reached new highs [6] Ongoing Investments Impacting Margins - Investments in AI tools, safety features, and global infrastructure are likely to weigh on profitability, leading to pressure on margins despite strong revenue growth [7] Earnings Whispers - The company's Earnings ESP stands at +11.23%, indicating a strong likelihood of an earnings beat [8] - Q3 revenues are estimated at $1.7 billion, up 50.7% year-over-year, driven by viral content and user growth, although higher costs may pressure margins [8]