AWS growth, core PCE data, Intel earnings: 3 things to know

Yahoo Finance Live’s Julie Hyman summarizes three key topics to watch for this morning.

Video Transcript

JULIE HYMAN: Let's get right to the three things you need to know. First thing you need to know, Amazon's cloud business had its slowest growth ever. And that trend could continue.

Amazon Web Services' revenue rose 16%. And the company CFO said April growth is even lower, as customers continue to be cautious about spending. That's weighing on the shares, even as overall revenue and profit did beat Wall Street estimates.

Second thing you need to know, the Fed's favorite inflation gauge showed inflation is not moderating. Core PCE, excluding food and energy, rose 3/10 of a percent in March from February. That's in line with estimates and unchanged from the prior month. The increase on a year-over-year basis, 4.6% compared with March of 2022. And that, of course, is well above the Fed's 2% inflation target.

Third thing you need to know, Intel's revenue collapsed in the first quarter as the drop in PC sales hammered its business. Both PC and datacenter revenues fell nearly 40% due to a pullback in consumer and business spending. CEO Pat Gelsinger warned of a cautious macroeconomic outlook ahead as the company looks to regain market share from rivals like AMD and Nvidia. But we should mention Intel shares are gaining, as Gelsinger also said margins should begin to widen again in the second half of the year.