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- BREAKING: The Numbers Are In
Good Morning!
Happy Friday! Have a great weekend:
👉Stocks sell-off
👉Apple earnings are in
👉Amazon earnings are in
BREAKING: July Nonfarm Payrolls MISS expectations: 114,000 vs. 175,000 est.
The unemployment rate jumps from 4.3% vs 4.1% est.
STOCKS: Sell-Off
Stocks tumbled on Thursday amid recession fears. The Dow Jones Industrial Average plunged 1.21%, the S&P 500 dropped 1.37%, and the tech-heavy Nasdaq lost 2.3%.
Source: CNBC
Even the small-cap Russell 2000, which had been surging, fell by 3%. The sell-off followed a spike in initial jobless claims, the largest since August last year. Additionally, the ISM manufacturing index came in at 46.8%, well below the 50% threshold that indicates economic expansion. Bitcoin also faced turbulence, with around $300 million in liquidations.
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EARNINGS: Apple
Apple reported strong Q3 earnings, with a 5% rise in revenue, exceeding Wall Street expectations. CFO Luca Maestri forecasts similar growth for the current quarter and a 14% growth in Services. Expected operating expenses are between $14.2-$14.4 billion, with a gross margin of 45.5%-46.5%.
Source: CNN
Net income was $21.45 billion, up from $19.88 billion last year. iPhone sales, still the largest revenue driver at 46% of total sales, fell 1% to $39.29 billion. With many first-time buyers, iPad sales surged 24% to $7.16 billion. Mac sales rose 2% to $7 billion. The “Wearables, Home, and Accessories” category saw a 2% decline to $8.10 billion. Services revenue grew 14% to $24.21 billion, in line with forecasts. Apple reported record active devices and 1 billion paid subscriptions. However, sales in Greater China dropped 6% to $14.72 billion due to local competition.
EARNING: Amazon
Amazon reported weaker-than-expected revenue for Q2 and gave a disappointing forecast for the current period. They expect revenue between $154 billion and $158.5 billion, with a midpoint of $156.25 billion, below the $158.24 billion analysts expected.
Source: NBC
Amazon's core retail business faces sluggish growth and competition from discount sites like Temu and Shein. Online store sales grew 5% year over year, while third-party seller services revenue increased by 12%. Amazon plans to launch a discount store with items under $20. For Q3, Amazon expects operating income between $11.5 billion and $15 billion, slightly missing analysts' $15.3 billion estimate. AWS grew 19% but lagged behind Microsoft's and Google's 29% cloud growth. Advertising revenue rose 20% to $12.77 billion, just missing estimates. Amazon's ad unit remains a significant profit generator, competing with Meta and Alphabet.
Chart of the Day
📊 Amazon Is A Bank
Source: Carbon Finance
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