Business

“My morale for this job is gone, gonna totally check out,” an Amazon worker recently wrote on Blind, an online forum where employees whinge about their employers. The cause of his discontent was a letter sent last month by Andy Jassy, the tech giant’s boss, that ordered staff back to the office five days a week. The mandate has caused grumbling among Amazon’s office drones, who had previously been required to show up in person only three days a week. At a meeting on October 17th Matt Garman, head of Amazon’s cloud-computing division, told a group of staff that if they did not want to adhere to the policy they could quit. More

The median price of an existing home sold in September was $404,500, an increase of 3% year over year.
Inventory rose 1.5% month to month to 1.39 million homes for sale at the end of September.

Sales of previously owned homes fell 1% in September compared with August, to a seasonally adjusted, annualized rate of 3.84 million units, the slowest pace since October 2010, according to the National Association of Realtors.
Sales were 3.5% lower than in September 2023. Sales fell in three out of four U.S. regions, with just the West region seeing a gain.

This count is based on closings, representing contracts signed likely in July and August. Mortgage rates started July near 7% on the 30-year fixed and then fell slowly through August to just below 6.5%. Rates are now more than a full percentage point lower than they were a year ago.
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said Lawrence Yun, chief economist for the National Association of Realtors.

A “For Rent, For Sale” sign is seen outside of a home in Washington, U.S., July 7, 2022. 
Sarah Silbiger | Reuters

Inventory rose 1.5% month to month to 1.39 million homes for sale at the end of September. That represents a 4.3-month supply at the current sales pace. Inventory was 23% higher from September 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
The pressure of still low inventory continues to push prices higher. The median price of an existing home sold in September was $404,500, an increase of 3% year over year and the 15th consecutive month of annual price gains.

Cash continues to be king in this market, making up 30% of September sales. Pre-Covid, cash buyers made up about 20% of sales. Yun noted that it is not just investors using cash, as investors actually pulled back slightly in September to just 16% of sales, down from 19% in August.
Homes are sitting longer, an average of 28 days compared with just 21 days a year ago. First-time buyers pulled back again, making up just 26% of September sales. That matches the all-time low from August.  More

Coca-Cola posted earnings and revenue that topped expectations.
Higher prices helped to offset sluggish demand for beverages.
Coke said it now expects organic revenue growth of about 10% this year, the high end of its previous range.

Coca-Cola on Wednesday reported quarterly earnings and revenue that topped analysts’ expectations, thanks to a boost from higher prices that offset sluggish demand.
Shares of the company fell 2% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 77 cents adjusted vs. 74 cents expected
Revenue: $11.95 billion adjusted vs. $11.60 billion expected

Coke reported third-quarter net income attributable to shareholders of $2.85 billion, or 66 cents per share, down from $3.09 billion, or 71 cents per share, a year earlier.
Excluding items, the company earned 77 cents per share.
Adjusted net sales of $11.95 billion were roughly flat from a year earlier. Coke’s organic revenue, which strips out the impact of acquisitions, divestitures and currency, climbed 9% during the quarter.
Unit case volume fell 1% in the quarter, driven by weakening demand in some international markets. The metric strips out the impact of pricing and foreign currency to reflect demand. Consumer companies, including Coke, have reported in recent months that customers are more price sensitive, leading to sluggish demand for its products as prices remain high.

Even so, Coke in recent quarters has been besting rival PepsiCo, which has been dealing with the fallout from Quaker Foods recalls, in addition to a U.S. consumer who has been snacking and drinking less. Pepsi said volume for its North American beverage business fell 3% in its third quarter, fueled by weakening demand for energy drinks.
Coke’s unit case volume in North America was flat for the quarter, as shrinking demand for its water, sports, coffee and tea products offset growth in its namesake soda, juice, dairy, plant-based beverages and sparkling flavors.
But unit case volume fell 2% in both the company’s Europe, Middle East and Africa and Asia-Pacific regions. The company called out volume declines in China and Turkey specifically. Like North America, Latin America reported flat volume.
Globally, volume for Coke’s sparkling soft drinks, like Sprite, and for its namesake soda were both flat for the quarter. The company’s juice, dairy and plant-based beverages division reported a 3% decline in volume. Its water, sports, coffee and tea segment saw volume fall 4%, fueled by a 6% drop in bottled water.
Coke said its pricing rose 10%. Roughly 4% of that increase comes from markets experiencing intense inflation, like Argentina, while the rest is the result of price hikes and customers trading up to pricier options.
For 2024, Coke now expects organic revenue growth of roughly 10%, on the high end of its prior range of 9% to 10%. The company reiterated its projection that comparable earnings per share will rise 5% to 6%.
Coke will provide its full 2025 outlook when it reports fourth-quarter earnings, but the company is already expecting currency to hurt its results next year. Coke is projecting a low-single-digit headwind for comparable revenue and a mid-single-digit headwind for earnings per share.

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Boeing’s new CEO Kelly Ortberg said the company must focus on its core business ahead of his first earnings call since taking the top job in August.
Boeing’s more than 32,000 striking machinists will also vote on a new contract proposal on Wednesday that could end a more than five-week work stoppage.
The manufacturer is bleeding cash and is preparing to raise billions in equity or debt after lost more than $6 billion in the last quarter.

Workers picket outside the Boeing Co. manufacturing facility during a strike in Renton, Washington, US, on Thursday, Oct. 3, 2024. 
David Ryder | Bloomberg | Getty Images

Boeing’s new CEO Kelly Ortberg said the company needs to become leaner and improve quality, a vision he laid out for the troubled plane manufacturer ahead of his first quarterly call with analysts on Wednesday. At the same time, thousands of striking Boeing machinists will vote on a new labor contract, and Ortberg said he was hopeful for a deal.
Boeing reported a more than $6 billion loss for the third quarter, its largest since 2020 when the pandemic halted most aircraft demand and its best-selling airplane was grounded after two crashes.

Boeing had released preliminary third-quarter results earlier this month, showing revenue of $17.8 billion, down less than 2% from a year earlier, as well as a loss of $9.97 a share and an operating cash outflow of $1.3 billion. It disclosed charges of more than $5 billion across its commercial and defense units and said it ended the third quarter with $10.5 billion in cash and marketable securities.
Its commercial airplane unit’s losses swelled to more than $4 billion from a $678 million loss a year before. The charges were related to the additional delay of the debut of its 777X wide-body aircraft to 2026 and another delay tied to the 767. Boeing plans to end production of the 767 when orders are fulfilled in 2027.
Its defense unit lost $2.4 billion in the third quarter from $924 million in the same period of 2023, with charges tied to several programs, including the KC-46 tanker and the troubled Starliner. The Starliner capsule returned empty from the International Space Station this summer, without the two NASA astronauts it originally carried to space.
Here’s what the company reported versus what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expected:

Loss per share: $10.44 adjusted. That may not compare with an adjusted loss of $10.52 expected by LSEG.
Revenue: $17.84 billion vs $17.82 billion expected

Ortberg, a former CEO of Rockwell Collins, took the helm of Boeing in August, tasked with restoring the company’s reputation and stamping out quality problems on aircraft and in other programs. In January, a door plug blew out minutes into an Alaska Airlines flight on a 737 Max 9 after key bolts weren’t reinstalled before the plane left Boeing’s factory. The near-catastrophe reignited safety concerns from regulators and customers.

“We need to know what’s going on, not only with our products, but with our people,” Ortberg said Wednesday. “And most importantly, we need to prevent the festering of issues and work better together to identify, fix, and understand root cause.”
Ortberg acknowledged that it will take some time to turn the ship.
“We have employees who are thirsty to get back to the iconic company they know, setting the standards for the products that we deliver,” he said.
Ortberg earlier this month said Boeing will slash 10% of its global workforce of about 170,000 people, hinting at a slimmer manufacturer. He is expected to face questions on the call about which units or projects the company will consider shedding.
“We need to reset priorities and create a leaner, more focused organization,” he said in his prepared remarks.

Read more CNBC airline news

The most pressing issue for Boeing this week is ending a costly labor strike that has hobbled its factories in the Seattle area, where most of its aircraft are produced. More than 32,000 machinists walked off the job early Sept. 13, about two weeks before the quarter ended, after overwhelmingly voting down a contract that included 25% raises, among other changes. A new proposal, unveiled Saturday, included 35% raises over four years, a higher signing bonus and 401(k) contributions, and other improvements.
The strike costs Boeing $1 billion a month, according to S&P Global Ratings, and getting to a speedy conclusion is crucial for the fragile aerospace supply chain, where furloughs are already beginning.
“We have been feverishly working to find a solution that works for the company and meets our employees’ needs,” Ortberg said.
The deal includes a commitment from Boeing to build its next aircraft in the Pacific Northwest. That has been a sore spot for unionized machinists after Boeing moved its 787 Dreamliner production to a non-union facility in South Carolina.
“Boeing is an airplane company and at the right time in the future we need to develop a new airplane. But we have a lot of work to do before then,” Ortberg said Wednesday.
Analysts are optimistic that the deal will pass. Results of the labor vote are expected late Wednesday night. More

The fifth game of this year’s WNBA Finals was the most viewed WNBA Finals game in 25 years.
Viewership peaked at 3.3 million during Game 5.
The impressive viewership caps off a WNBA season that saw ratings, engagement and attendance up across the board.

The New York Liberty celebrate after wining the 2024 WNBA Championship against the Minnesota Lynx during Game 5 of the 2024 WNBA Finals on October 20, 2024 at Barclays Center in Brooklyn, New York. 
David Sherman | National Basketball Association | Getty Images

It was a big finish for the 2024 WNBA season.
The fifth game of this year’s WNBA Finals between the Minnesota Lynx and the New York Liberty was the most-viewed WNBA finals game in 25 years across all networks, according to ESPN, citing Nielsen data. The game aired on ESPN and topped out at 3.3 million viewers.

The viewership for Game 5 is especially impressive considering the competition for attention Sunday night. Both the National Football League’s “Sunday Night Football” and Major League Baseball’s National League Championship Series aired at the same time.
Viewership across the entire WNBA Finals series more than doubled in comparison to last year, a continuation of the growing popularity for the WNBA and women’s sports more broadly.
This year’s finals were helped even more by a close battle between a perennial WNBA powerhouse in the Lynx and a previously championship-less contender in the Liberty. Four of the five games were decided by 5 or fewer points, and two games, including the final, went into overtime. The Liberty eventually prevailed, winning 67-62 in front of their home crowd.
The impressive viewership caps off a WNBA season that saw viewership, engagement and attendance up across the board.
The league is also fresh off a new media rights deal, which is negotiated as part of the National Basketball Association’s agreement with broadcast partners. The leagues’ new deal is worth $2.2 billion over 11 seasons, with an agreement to reevaluate the terms after the 2028 season, CNBC previously reported.

And there’s room to run for the WNBA: Several new teams will debut over the next couple of seasons, with the Golden State Valkyries beginning play in the 2025 season. Next year will also have 44 regular season games instead of 40, as well as a seven-game finals instead of five.
The Women’s National Basketball Players Association said Monday it would opt out of the collective bargaining agreement it had earlier reached with the league. The current CBA will still be in place for the 2025 season, according to the Associated Press. More

McDonald’s shares fell in extended trading after the CDC said an E. coli outbreak was linked to the chain’s Quarter Pounder burgers.
The outbreak has led to 10 hospitalizations and one death, the CDC said.
The restaurant chain said initial findings from the investigation show some of the illnesses may be linked to onions that are used in the Quarter Pounder.

A McDonald’s located on Route 66 in Azusa, California, on April 1, 2024.
Robert Gauthier | Los Angeles Times | Getty Images

McDonald’s shares dropped in extended trading Tuesday after the Centers for Disease Control and Prevention said an E. coli outbreak linked to McDonald’s Quarter Pounder burgers has led to 10 hospitalizations and one death.
The agency said 49 cases have been reported in 10 states between Sept. 27 and Oct. 11, with most of the illnesses in Colorado and Nebraska. “Most” sick people reported eating a McDonald’s Quarter Pounder, the CDC added.

One of the patients developed hemolytic uremic syndrome, which is a serious condition that can cause kidney failure. An older adult in Colorado died. 
McDonald’s shares dropped about 7% in after-hours trading Tuesday.
In a statement Tuesday, McDonald’s said it is taking “swift and decisive action” following the E. Coli outbreak in certain states.
The company said initial findings from the ongoing investigation show that some of the illnesses may be linked to slivered onions — or fresh onions sliced into thin shapes — that are used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers. McDonald’s has instructed all local restaurants to remove slivered onions from their supply and has paused the distribution of that ingredient in the affected area.

Arrows pointing outwards

This map shows where the 49 people in this E. coli outbreak live.
Source: CDC

Quarter Pounder hamburgers will be temporarily unavailable in several Western states, including Colorado, Kansas, Utah and Wyoming, and portions of other states, McDonald’s said. It added that it was working with suppliers to replenish ingredients.

The majority of states and menu items are not affected by the outbreak, McDonald’s USA President Joe Erlinger said in a video. The company’s other beef products, including the cheeseburger, hamburger, Big Mac, McDouble and the double cheeseburger, are not affected, he added. Those sandwiches use a different type of onion product.
“We are working quickly to return our full menu in these states as soon as possible,” Erlinger said. “I hope these steps demonstrate McDonald’s commitment to food safety.”
Quarter Pounder hamburgers are a core menu item for McDonald’s, raking in billions of dollars each year. In 2018, McDonald’s launched fresh beef for its Quarter Pounders across most of its U.S. stores.
The CDC said the number of people affected by the outbreak is “likely much higher” than what has been reported so far. The agency said that is because many people recover from an E. coli infection without testing for it or receiving medical care. It also typically takes three to four weeks to determine if a sick patient is part of an outbreak, the CDC added. 
E. coli refers to a group of bacteria found in the gut of nearly all people and animals. But some strains of the bacteria can cause mild to severe illness if a person eats contaminated food or drinks polluted water.
Symptoms, including stomach cramps, diarrhea and vomiting, usually start three to four days after swallowing the bacteria, according to the CDC. Most people recover without treatment after five to seven days.
There have been several past reported cases of E. coli at McDonald’s restaurants.
In 2022, at least six children developed symptoms consistent with E. coli poisoning after eating McDonald’s’ Chicken McNuggets Happy Meals in Ashland, Alabama. Four of the six children were admitted to a hospital after experiencing severe adverse effects.

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Starbucks released preliminary results for its fiscal fourth quarter and suspended its outlook for fiscal 2025.
The company’s same-store sales slid for the third consecutive quarter, fueled by a 10% tumble in traffic to its North American stores.
Starbucks also raised its quarterly dividend to “provide some certainty” to investors as it tries to turn around the business.

Starbucks cups are pictured on a counter in Manhattan, New York, on Feb. 16, 2022.
Carlo Allegri | Reuters

Starbucks on Tuesday posted preliminary quarterly results that showed its sales fell again as the coffee chain tries to execute a turnaround.
“Our fourth quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth and that’s exactly what we are doing with our ‘Back to Starbucks’ plan,” CEO Brian Niccol said in a statement.

Niccol said he plans to share more details on the steps Starbucks is taking to turn around the business on the company’s earnings call, scheduled for Oct. 30. The coffee chain’s new CEO aims to reverse slowing demand for Starbucks’ drinks, starting with its largest market: the U.S.
Already, the CEO said the company is “fundamentally changing” its marketing by refocusing on all of its customers, not just members of its loyalty program. He added that Starbucks plans to simplify its “overly complex menu,” fix its pricing and make sure all of its drinks are handed directly to customers. All three of those goals have been top complaints from customers and baristas in recent years.
“We believe that our problems are very fixable and that we have significant strengths to build on,” Niccol said in prepared remarks released on the company’s website on Tuesday.
The company’s preliminary net sales fell 3% to $9.1 billion. It reported preliminary adjusted earnings per share of 80 cents.
Analysts surveyed by LSEG were expecting the company to report fiscal fourth-quarter earnings per share of $1.03 and revenue of $9.38 billion.

Shares of the company fell more than 3% in extended trading on the announcement.

Slumping sales

For the third consecutive quarter, Starbucks’ same-store sales fell. This quarter’s 7% decline in same-store sales was the company’s steepest drop since the Covid-19 pandemic.
The company blamed its soft sales on weaker demand in North America. In its home market, its same-store sales decreased 6%. Traffic tumbled 10%, despite increased investments in the business, such as more frequent promotions in its mobile app and an expanded range of product offerings.
In China, its second-largest market, same-store sales plummeted 14%. The company attributed the decline to competition in the country, which it said is altering consumer behavior and changing the company’s strategy for the market.
The company also suspended its fiscal 2025 outlook, citing the recent CEO transition and the “current state of the business.”
Despite the dismal quarter, the company increased its dividend from 57 cents to 61 cents per share.
“We want to amplify our confidence in the business, and provide some certainty as we drive our turnaround,” Chief Financial Officer Rachel Ruggeri said in a statement.
Ruggeri added that the company is developing a plan to turn around the business, but creating a strategy will take time.

A challenge for Niccol

The surprise announcement of the company’s preliminary results comes nearly two months ago after Niccol took the helm of the coffee giant. The CEO transition followed two quarters of falling sales for Starbucks and several activist investors building stakes in the company.
In the U.S., the chain has been losing its occasional customers, who have opted to save money instead of spending on its macchiatos and Refreshers. Starbucks’ business in China has also been struggling to recover since the pandemic, and the rise of cheaper local rivals such as Luckin Coffee and a more cautious consumer have dented sales in recent months.
Niccol joined Starbucks after six years as CEO of Chipotle. During his tenure at the fast-casual chain, he led the company through a turnaround after its foodborne illness crises, invested in its digital business and turned it into a top industry performer, even during the pandemic.
To curb Starbucks’ sales slump, Niccol plans to turn first to the company’s struggling U.S. business. In an open letter released during his first week on the job, he said he plans to focus on four areas of improvement: the barista experience, morning service, its cafes and the company’s branding.
Niccol has also been reshuffling the company’s executive ranks. On Friday, the company announced a former Chipotle executive, Tressie Lieberman, will be joining Starbucks as its global chief brand officer, a newly created position. Last month, Starbucks said its North American CEO Michael Conway would retire after just five months in the role. Niccol’s predecessor Laxman Narasimhan had appointed Conway before his ouster in August.
Shares of Starbucks are up 1% this year, as of Tuesday’s close. The company has a market cap of more than $109 billion.

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Many investors will have greeted the start of corporate America’s latest earnings season feeling chipper. After a brief wobble in the first half of last year, the profits of big American firms in the S&P 500 index have climbed steadily higher in each subsequent quarter. This time round their profits are expected to grow by a bit more than 4%, year on year. More