After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported for its fiscal second-quarter earnings.Retailread more
The sexy image that once boosted Victoria's Secret has been haunting L Brands more recently, as women are steering clear of the brand's hot pink, lacy and bejeweled lingerie.Retailread more
See which stocks are posting big moves after the bell.Market Insiderread more
"I'd love to say that the optimistic universe is most likely to prevail, but the talking heads talk endlessly about how a recession is inevitable," CNBC's Jim Cramer says.Mad Money with Jim Cramerread more
Read the fine print in your Apple Card contract — one clause means you give up your right to be heard in court.Technologyread more
Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battleThe Fedread more
President Donald Trump signed a memorandum on Wednesday to automatically cancel the student loan debt of disabled veterans. More than 25,000 service members will have their...Personal Financeread more
Jim Nussle, a former director of the Office of Management and Budget, told CNBC on Wednesday that a strong U.S. consumer is the only thing keeping the country from recession.Marketsread more
Qualcomm reported earnings for the second fiscal quarter that beat analyst expectations on Wednesday, as well as revenue that topped estimates amid better-than-expected sales in its technology division.
Shares rose less than 2 percent after hours.
Adjusted earnings were up 29 percent from the $1.04 per share reported a year ago, while adjusted revenues were up 8 percent from the $5.5 billion reported this time last year.
Qualcomm's widely used chips and designs are getting beefed up for the adoption of new technology and 5G connections. The flagship Samsung Galaxy S8, for instance, used one of Qualcomm's most high-end chips, and the company benefitted from higher-than-expected average prices during the quarter, executives said during a conference call with analysts.
During the quarter, Qualcomm saw revenue in its licensing division grow 5 percent from a year ago, to $2.25 billion. Revenues for its technology division grew 10 percent from a year ago, to $3.68 billion. Analysts surveyed by StreetAccount expected the licensing division to report $2.24 billion in revenue, and the technology division to report $3.56 billion.
But the company's sales bump comes amid intense scrutiny of the semiconductor company's business model.
Qualcomm's earnings guidance range for next quarter fell around analyst expectations. But the company warned that a tiff with Apple could affect its outlook, as it expects underpayments from manufacturers:
Apple's contract manufacturers reported, but underpaid, royalties in the second quarter of fiscal 2017. However, our revenues were not negatively impacted as the contract manufacturers acknowledged the amounts are due and the underpayment was equal to the amounts that Qualcomm has not paid Apple under our Cooperation Agreement that are currently in dispute. The Cooperation Agreement expired December 31, 2016. It is not clear whether Apple's contract manufacturers will underpay royalties owed under their contracts with us in the third quarter of fiscal 2017, which could have a negative impact on our financial results. Our guidance range for fiscal third quarter EPS is wider than our typical practice primarily due to this uncertainty.
The remarks likely refer to $1 billion
The "Apple situation" is not the only battle for Qualcomm.
Qualcomm is fighting a fine of $868 million in South Korea, over high patent fees and refusing to offer licenses to some chip manufacturers. The earnings report also reflected a $974 million reduction to revenues over a dispute with BlackBerry.
New processors and wider internet "pipes" have the promise to push forward technologies like virtual reality, cloud computing and video streaming, Qualcomm CEO Steven Mollenkopf said earlier this year. Plus there's the burgeoning self-driving car industry, which Qualcomm hopes to enter with its $38 billion agreement to acquire NXP Semiconductors.
Qualcomm unveiled a new 835 Snapdragon processor, the first ever under 10 nanometers, earlier this year. The Snapdragon 820 and 821 are found in high-end Android smartphones like the Google Pixel, Samsung Galaxy S7 Edge, LGV20, HTC 10, and BlackBerry's Android device.
Executives told analysts that demand for
"We will continue to protect the value of our technologies, which enables today's robust mobile communications ecosystem, and invest in R&D that will drive the leading edge of mobile computing and connectivity for decades to come — focusing on areas where our technologies will have the most impact and generate the best returns," Mollenkopf said in a statement on Wednesday.
But up just 1.5 percent over the last year, Qualcomm shares have lagged the gains of rivals Intel and Nvidia. The company's China business also continues to be in focus, after softness in the region
"The licensing business had a strong quarter ... the stronger market and improved licensing in China offset the impact of a new dispute with a licensee," Mollenkopf said during the conference call. President Derek Aberle added that the strength reflected "significantly increased" gains from a year ago in China.