Poor corporate report cards in U.S., Asia point to economic pain - Reuters

Oct 26 (Reuters) - U.S. companies from tech giants Alphabet (GOOGL.O) and Microsoft to GE (GE.N) and toymaker Mattel (MAT.O) reported large slowdowns successful maturation oregon warned things were going to get worse, fanning recession fears and driving down stocks.

The gloomy reports spilled into Asia connected Wednesday, with South Korean chipmaker SK Hynix Inc (000660.KS) saying the representation spot marketplace is facing "unprecedented deterioration" and it plans to chopped concern adjacent twelvemonth by much than 50%. Its third-quarter nett plunged 60%.

South Korean flat-screen shaper LG Display Co Ltd (034220.KS) posted a bigger-than-expected quarterly loss.

The rash of disappointing results points to a big of problems successful the planetary economy, including soaring ostentation and involvement complaint hikes that person battered user demand.

U.S. consumer confidence ebbed successful October, information showed Tuesday, aft 2 consecutive monthly increases, amid heightened ostentation concerns and worries of a imaginable recession adjacent year.

After years of turbo-charged growth, Microsoft posted its slowest emergence successful income successful 5 years and Google genitor Alphabet grew conscionable 6% past quarter, its slowest gait since September 2013 barring a tiny quarterly diminution successful 2020.

Google, which galore had expected to beryllium much resilient due to the fact that of its presumption arsenic the world's largest integer advertizing level by marketplace share, shocked the marketplace with weaker-than-estimated advertizing gross arsenic customers successful the insurance, mortgages and cryptocurrencies industries tightened their advertisement budgets.

"Despite being seen arsenic 1 of the astir insulated companies successful the advertizing abstraction comparative to peers, Google's mediocre 4th is the latest motion that worsening fundamentals and a pugnacious macroeconomic situation are prompting advertisers to chopped backmost connected spending," said Jesse Cohen, elder expert astatine Investing.com.

Google's results bode sick for Facebook genitor Meta Platforms (META.O), which is particularly reliant connected advertizing and reports results connected Wednesday. Last week, its smaller rival Snap Inc (SNAP.N) forecast nary gross maturation for the vacation quarter, mounting disconnected informing bells successful the social media industry.

Alphabet said it plans to chopped hiring by much than half.

Conglomerate GE, which is successful the process of breaking up into 3 companies, said it volition reduce planetary headcount by a 5th astatine its onshore upwind unit, which has been battling higher earthy worldly costs owed to ostentation and supply-chain pressures.

Shares successful Alphabet slumped 7% successful trading aft the bell. Microsoft fell 2% and chipmaker Texas Instruments , which forecast quarterly gross and nett beneath estimates, was down 5%. Shares successful Spotify (SPOT.N), which besides warned connected dilatory advertizing growth, slid 4%. Meta shares fell 4%.

BRIGHT SPOTS

A deficiency of request for idiosyncratic computers and laptops was evident successful Microsoft's past 4th arsenic its Windows concern slumped 15%, a crisp turnaround aft months of pandemic-fueled income driven by radical moving and studying from home.

Texas Instruments (TI) echoed the sentiment, backing up akin predictions from fellow chipmakers Samsung Electronics Co Ltd (005930.KS) and Advanced Micro Devices Inc (AMD.O) earlier this month.

"During the 4th we experienced expected weakness successful idiosyncratic electronics and expanding weakness crossed industrial," said TI brag Rich Templeton. The company, similar different chipmakers, has to contend with gadget makers cutting orders to wide stockpiles of chips aft the pandemic-led boost successful request rapidly flipped to a slump successful a substance of weeks.

Weak request for user electronics has besides been flagged by Apple (AAPL.O) iPhone assembler Foxconn (2317.TW) arsenic China's system has slowed dramatically connected COVID 19-related curbs.

Mattel, which is precise susceptible to discretionary spending cuts, lowered its nett forecast for the twelvemonth and said it would ramp up promotions heading into the engaged vacation play to promote inflation-hit shoppers to bargain its Barbie dolls.

Earlier connected Tuesday, post-it shaper 3M Co said it expected weak user spending to proceed into the upcoming vacation play and chopped its full-year forecasts.

Still, determination were agleam spots successful different study cards.

Tesla Inc supplier LG Energy Solution Ltd (LGES) (373220.KS) swung to a nett successful the 3rd 4th connected beardown electrical conveyance (EV) artillery request and favourable overseas speech rates.

Chipotle Mexican Grill Inc (CMG.N) reported quarterly income and profits that topped the Street arsenic wealthier customers chowed down connected their burritos contempt higher prices adjacent arsenic lower-income consumers ate determination little often.

Coca-Cola Co , a favourite successful a slowdown, joined rival PepsiCo Inc successful lifting its yearly forecasts, arsenic customers bought their sugary sodas contempt aggregate rounds of terms hikes.

Reporting by Chavi Mehta, Tiyashi Datta, Eva Mathews, Uday Sampath Kumar, Granth Vanaik, Deborah Mary Sophia, Aditya Soni, Mehr Bedi, Kannaki Deka and Abhijith Ganapavaramin successful Bengaluru, Jane Lanhee Lee successful Oakland, Sheila Dang successful Dallas, Hilary Russ successful New York, Rajesh Kumar Singh successful Chicago, Joyce Lee and Heekyong Yang successful Seoul; Writing by Sayantani Ghosh and Anne Marie Roantree; Editing by Richard Pullin and Edmund Klamann

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