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Microsoft’s revenue beats estimates on strong cloud demand from AI boom

Technology companies Microsoft and Meta will report earnings today while the release of US GDP figures will be of great interest to voters ahead of the presidential election next week.

Microsoft: Strong demand in its cloud business is expected to help the Windows maker report historically high revenue and net income in its first quarter. Investors will be keen to learn more about how Microsoft is navigating intensifying competition within the artificial intelligence sector. 

Meta: Facebook’s parent is expected to report revenue and net income each jumped about 18 per cent in the quarter to September. Commentary on how Meta is integrating artificial intelligence technology in advertising will be of interest to investors.

Other companies: Hess, AbbVie, Kraft Heinz, GE Healthcare and Biogen are all reporting earnings before the opening bell. Amgen, Booking Holdings, Starbucks, Coinbase and Robinhood will report after the market closes. 

US GDP: Economists expect the advance estimate for third-quarter economic growth to be flat at 3 per cent. 

Other economic data: ADP will release its US employment report for October, which will give insight into the labour market before the official government figures on Friday. Private payrolls are expected to have added 114,000 jobs, down from the September figure of 143,000. Pending home sales in the US are expected to have increased 1 per cent in September from the previous month, according to economists polled by LSEG. 

US election: Former president Donald Trump will host a rally with football quarterback Brett Favre in Green Bay, Wisconsin. Vice-president Kamala Harris will host campaign events in the swing states of North Carolina, Pennsylvania and Wisconsin.

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