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14500.0
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2023-08-04 00:00:00 UTC
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GLOBAL MARKETS-Equities inch up; dollar heads for third weekly gain ahead of US payrolls
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AAPL
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https://www.nasdaq.com/articles/global-markets-equities-inch-up-dollar-heads-for-third-weekly-gain-ahead-of-us-payrolls
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nan
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nan
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By Amanda Cooper and Elizabeth Howcroft
LONDON, Aug 4 (Reuters) - Global equities inched higher on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report.
The MSCI All-World index .MIWD00000PUS rose 0.1% on the day but was still headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
Investor attention will be squarely on the July U.S. nonfarm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the U.S. Federal Reserve is now possible.
"Today’s U.S. payrolls data is likely to continue to showcase the resilience of the U.S. economy," Michael Hewson, chief market analyst at CMC Markets, said in a note.
Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
Futures on the S&P 500 EScv1 rose 0.3%, while those on the Nasdaq 100 NQc1 gained 0.5%, suggesting earnings from technology bellwethers could give the index a boost later on.
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter.
The benchmark indices closed little changed the previous day after a choppy trading session, as investors weighed up the implications of rising Treasury yields along with the latest batch of economic data and earnings.
"It’s a very fragile market," said Francesco Sandrini, head of multi-asset strategy at Amundi.
"The market is quite nervous at the moment, the very low volatility that has been prevailing so far now is facing a reality check."
The dollar meanwhile rose 0.1% against a basket of major currencies =USD, and headed for its third successive weekly gain. It has made the most headway against some of this year's better-performing currencies, such as the Australian dollar AUD=D3, which has lost 1.4% this week, or the poundGBP=D3, which is heading for a decline of 1.3% after the Bank of England delivered a smaller rate rise on Thursday than many had hoped for.
China's yuan CNH=D3, which is set for a 0.6% loss this week against the dollar, gained some respite on Friday after an official said on Friday the central bank would use policy tools flexibly to ensure reasonably ample liquidity in the banking system.
Investors have been hoping policymakers will deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad.
Another layer of support for the U.S. dollar came from the Treasury market, where 10-year yields US10YT=RR held steady around nine-month highs, at 4.19%, while 30-year bond yields hovered at 4.28% US30YT=RR, set for their biggest weekly rise this year.
Rating agency Fitch this week surprised markets by stripping the United States of its prized triple-A credit rating and cited the country's deteriorating fiscal position as one of the key drivers, thrusting the government's finances into the spotlight.
Earlier in the week, the U.S. Treasury said it expects to borrow just over $1 trillion in the third quarter of this year alone, $273 billion more than its May estimate.
Oil prices headed for a sixth straight weekly gain, driven up by the prospect of reduced supply from Saudi Arabia and Russia. U.S. crude CLc1 rose 0.7% to $82.12 a barrel, while Brent LCOc1 rose 0.7% to $85.70.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Ankur Banerjee in Singapore; Editing by Muralikumar Anantharaman, Kirsten Donovan)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - Global equities inched higher on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
|
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - Global equities inched higher on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. Investor attention will be squarely on the July U.S. nonfarm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
|
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Amanda Cooper and Elizabeth Howcroft LONDON, Aug 4 (Reuters) - Global equities inched higher on Friday, while the dollar headed for a third weekly gain as investors assessed U.S. economic data that largely showed a resilient labour market ahead of the all-important monthly jobs report. The MSCI All-World index .MIWD00000PUS rose 0.1% on the day but was still headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply.
|
Amazon AMZN.Oreported sales growth and profit that beat analyst estimates, while Apple AAPL.Oforecast a sales slump to continue into the current quarter. The MSCI All-World index .MIWD00000PUS rose 0.1% on the day but was still headed for its biggest weekly drop in five months, thanks in part to a surge in government bond yields this week after more data pointed to slowing inflation and the prospect of a deluge of U.S. Treasury supply. Investor attention will be squarely on the July U.S. nonfarm payrolls report, with a Reuters survey of 80 economists expecting payrolls to have increased by 200,000 last month, after rising 209,000 in June.
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14501.0
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2023-08-04 00:00:00 UTC
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AAPL, AMZN, AMD: Is There More Upside Left in These Buzzing Reddit Stocks?
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AAPL
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https://www.nasdaq.com/articles/aapl-amzn-amd%3A-is-there-more-upside-left-in-these-buzzing-reddit-stocks
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nan
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nan
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Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD) are among the widely discussed stocks on the social media platform Reddit. While these top technology stocks are buzzing on Reddit and have significantly gained mentions, they have appreciated quite a lot on a year-to-date basis. Despite the rally in their prices, analysts’ average price targets indicate further upside in these stocks.
Against this backdrop, let’s delve into these trending Reddit stocks.
Can Apple's Stock Keep Going Up?
Apple stock has gained about 47.56% year-to-date. However, its stock is down over 2% in after-hours trading following its third-quarter financial results. Though its earnings came ahead of the Street’s projection, the decline in sales of the iPhone, iPad, and Mac didn’t go well with investors.
The decline in sales reflects tough year-over-year comparisons and macro uncertainty. Nonetheless, its Services revenue reached $21.2 billion, driven by more than one billion paid subscriptions.
Following Q3 earnings, Goldman Sachs analyst Mike Ng reiterated a Buy recommendation on Apple stock on August 3. The analyst said that “certain elements of F3Q23 results were disappointing vs. Consensus.” Nevertheless, the company’s growing installed base of paid subscriptions will drive “secular growth in Services” and support its premium valuation.
Overall, Apple stock has received 24 Buy and seven Hold recommendations for a Strong Buy consensus rating. Analysts’ average price target of $203.64 implies 6.52% upside potential from current levels.
Is Amazon Stock Expected to Rise?
Amazon stock has gained over 53% year-to-date. Further, the stock is up about 8.73% in after-hours trading following its solid second-quarter results. AMZN Q2 earnings crushed Wall Street’s estimates. Meanwhile, analysts’ average price target indicates that Amazon stock could rise more.
The increase in the e-commerce business, led by macro improvement and cost reduction measures, supported AMZN’s Q2 performance. Moreover, signs of stabilization in the cloud business (AWS) and ongoing momentum in its advertising segment position it well to deliver solid growth in the coming quarters.
Eric Sheridan of Goldman Sachs maintained his bullish view of Amazon stock following Q2 earnings results. The analyst expects the company to benefit from improving margins in the e-commerce business. Further, the ongoing digital transformation will support its AWS segment. At the same time, Amazon will also benefit from the growing scale of its advertising business.
Along with Sheridan, Jefferies analyst Brent Thill, Bernstein analyst Mark Shmulik, and Nicholas Jones of JMP Securities reiterated the Buy rating on AMZN stock following Q2 financial results.
Amazon stock has received a Buy recommendation from all 29 analysts who have recently rated it. Collectively, their 12-month average price target of $86.20 implies an upside of nearly 16%.
What is the Future of AMD Stock?
Shares of Advanced Micro Devices will likely benefit from the solid demand for chips that power AI (Artificial Intelligence) applications. At the same time, the recovery in PC demand will support its financials, in turn, its stock.
AMD recently delivered better-than-expected earnings. The company’s management expects the PC market to grow in the second half of 2023, which is encouraging. Additionally, the growing AI deployments in the data center market augur well for growth.
As AI presents a multibillion-dollar growth opportunity for the company, Tristan Gerra of Robert W. Baird reiterated a Buy on AMD stock on August 1. The analyst expects AMD’s gross margins to expand significantly in 2024, led by “the ramp of AI” and easier year-over-year comparisons in the Embedded segment (which includes embedded CPUs and GPUs).
Overall, AMD stock has a Strong Buy consensus rating on TipRanks, reflecting 25 Buy and six Hold recommendations. Analysts’ average price target of $142.51 implies 25.95% upside potential.
The Bottom Line
AAPL, AMZN, and AMD stocks are trending on Reddit and have multiple growth engines to drive their stock prices higher. In addition, analysts’ Strong Buy consensus rating supports the bull case. As these stocks appear to be attractive long-term bets, Wall Street analysts’ average price targets show that AMD offers the highest upside potential.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD) are among the widely discussed stocks on the social media platform Reddit. The Bottom Line AAPL, AMZN, and AMD stocks are trending on Reddit and have multiple growth engines to drive their stock prices higher. The analyst said that “certain elements of F3Q23 results were disappointing vs. Consensus.” Nevertheless, the company’s growing installed base of paid subscriptions will drive “secular growth in Services” and support its premium valuation.
|
Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD) are among the widely discussed stocks on the social media platform Reddit. The Bottom Line AAPL, AMZN, and AMD stocks are trending on Reddit and have multiple growth engines to drive their stock prices higher. Following Q3 earnings, Goldman Sachs analyst Mike Ng reiterated a Buy recommendation on Apple stock on August 3.
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The Bottom Line AAPL, AMZN, and AMD stocks are trending on Reddit and have multiple growth engines to drive their stock prices higher. Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD) are among the widely discussed stocks on the social media platform Reddit. Along with Sheridan, Jefferies analyst Brent Thill, Bernstein analyst Mark Shmulik, and Nicholas Jones of JMP Securities reiterated the Buy rating on AMZN stock following Q2 financial results.
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Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD) are among the widely discussed stocks on the social media platform Reddit. The Bottom Line AAPL, AMZN, and AMD stocks are trending on Reddit and have multiple growth engines to drive their stock prices higher. Following Q3 earnings, Goldman Sachs analyst Mike Ng reiterated a Buy recommendation on Apple stock on August 3.
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14502.0
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2023-08-04 00:00:00 UTC
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Two measures of corporate health flash red
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AAPL
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https://www.nasdaq.com/articles/two-measures-of-corporate-health-flash-red
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nan
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nan
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LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend.
A.P. Moller-Maersk MAERSKb.COlowered its estimate for global container trade this year as companies reduce inventories and higher interest rates and recession risks in Europe and the United States drag on global economic growth.
The company, one of the world's biggest container shippers, said it expects container volumes to fall by as much as 4%. It had previously forecast a decline of no more than 2.5%.
Maersk controls about one-sixth of global container trade, transporting goods for retailers and consumer companies such as Walmart WMT.N, Nike NKE.N and Unilever ULVR.L.
WPP WPP.L, the world's largest advertising group, warned that U.S. tech clients had pulled back spending in the second quarter, which Chief Executive Mark Read said took the company by surprise.
"Spend will pick up after a period of time, but I think we are nervous for the rest of the year because we can't get total clarity on when that's going to happen," he told Reuters.
The retreat in spending led WPP to follow rival Interpublic - which last month also blamed tech clients cutting marketing budgets - in lowering its growth forecast for this year, to 1.5-3.0% from 3-5%.
That was a stark contrast from February, when WPP, which owns the Ogilvy, Grey and GroupM agencies, reckoned clients would spend on marketing through any downturn to prop up sales and justify price rises.
Analysts said the news reflected caution among companies wrestling with higher borrowing costs and consumers tightening their own budgets amid a cost of living crisis.
Marketing spending is often the first to get cut when companies are worried about a strain on cash.
WAIT AND SEE
"Corporations are in wait-and-see mode when it comes to splashing the cash and handing margin over, at a time when demand is very tough to profile," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations.
The signs of economic turbulence will underscore concerns that a bounce in China's economic activity after Beijing lifted its long COVID lockdowns will prove short-lived. Companies had bet that a Chinese rebound would help offset the impact from slowdowns in the U.S. and European economies.
The scope of stimulus Beijing has offered to revive the economy so far has underwhelmed the market.
Global firms from consumer goods giant Unilever to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings there as the world's second-largest economy loses its post-pandemic spring.
Expectations for second-quarter earnings are already low due in part to China's weakness. Refinitiv I/B/E/S data show U.S. and European companies are expected to report their worst quarterly results in years.
The International Monetary Fund last week said that it expects global economic growth to slow this year, led by advanced economies even as food prices have come down and the March banking turmoil has been contained.
It expects the global growth to slow to 3% this year and next, from 3.5% last year.
Echoing Maersk, DHL Group DHLn.DE, among the world's biggest shippers, said on Tuesday it saw drops of 16% and 7.1% respectively in air and ocean freight volumes in the first half, particularly on routes between China and its two biggest trading partners, the United States and Europe.
Major global firms warn of slow China sales as post-pandemic surge fades
GRAPHIC-Take Five: Stimulus, storms and soft landings
China's sagging economy looms over quarterly results around the world
ANALYSIS-European earnings face a low bar, but investor patience wears thin
(Reporting by Reuters bureaus; Writing by Josephine Mason; Editing by Catherine Evans)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. Global firms from consumer goods giant Unilever to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings there as the world's second-largest economy loses its post-pandemic spring.
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Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. The company, one of the world's biggest container shippers, said it expects container volumes to fall by as much as 4%.
|
Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. LONDON, Aug 4 (Reuters) - Two measures of corporate and economic health were flashing red on Friday as shipping group Maersk reported a fall in global demand for sea containers and advertising giant WPP said clients in the U.S. tech sector were slashing their marketing spend. Moller-Maersk MAERSKb.COlowered its estimate for global container trade this year as companies reduce inventories and higher interest rates and recession risks in Europe and the United States drag on global economic growth.
|
Apple AAPL.O on Thursday warned that its sales would decline for the fourth quarter in a row, although Amazon.com Inc AMZN.O was more upbeat, reporting sales growth and profit that beat Wall Street's expectations. The company, one of the world's biggest container shippers, said it expects container volumes to fall by as much as 4%. The retreat in spending led WPP to follow rival Interpublic - which last month also blamed tech clients cutting marketing budgets - in lowering its growth forecast for this year, to 1.5-3.0% from 3-5%.
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14503.0
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2023-08-04 00:00:00 UTC
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GLOBAL MARKETS-Asian shares meander, dollar wobbles ahead of US payrolls
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-meander-dollar-wobbles-ahead-of-us-payrolls
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nan
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nan
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By Ankur Banerjee
SINGAPORE, Aug 4 (Reuters) - Asian shares inched higher on Friday, while the dollar retreated from a one-month peak as investors assessed U.S. economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.28%, but was on course to clock a weekly loss of 2%, its worst run in more than a month.
Futures indicated European stocks were set for a higher open, with Eurostoxx 50 futures STXEc1 up 0.35%, German DAX futures FDXc1 up 0.23% and FTSE futures FFIc1 up 0.19%.
Investor attention will be squarely on the July U.S. nonfarm payrolls report, with a Reuters survey of 80 economists expecting payrolls to increase by 200,000 jobs last month, after rising 209,000 in June.
Economists who have long been forecasting a downturn by the fourth quarter of this year are increasingly becoming convinced that the "soft-landing" scenario for the economy envisaged by the U.S. Federal Reserve is now possible.
"People are trying to get their head around the new 'Goldilocks' scenario of rates probably not going much higher, but we might avoid a recession, which I think is still a very questionable assumption," said Rob Carnell, ING's regional head of research, Asia-Pacific.
Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings. .N
Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
E-mini futures for the S&P 500 EScv1 rose 0.35% in Asian hours, with a mixed set of earnings from technology bellwethers likely to dominate U.S. markets.
Amazon.com AMZN.Oreported sales growth and profit that beat analyst estimates, whereas Apple AAPL.Oforecast a sales slump to continue into the current quarter.
Geir Lode, head of global equities at Federated Hermes, said broader market participation will be necessary for the bullish trend to be sustained.
"Year to date performance has been driven by a few select mega cap companies, but this will need to give way to wider participation across mid and small-cap names for the market rally to continue," Lode said.
CHINA BUMP
Chinese blue-chips .CSI300 rose 0.64%, while the Shanghai Composite Index .SSEC was up 0.5%. The Hong Kong benchmark Hang Seng .HSI climbed 1%, on course to snap its three-day losing streak.
China's central bank will flexibly use policy tools to ensure reasonably ample liquidity in the banking system, an official said on Friday. The news conference came after China's central bank governor pledged on Thursday to guide more financial resources toward the private economy.
"It's still very much keeping the light support going rather than injecting a massive dollop of stimulus," ING's Carnell said.
Investors have been pining for policymakers to deliver more broad-based stimulus to boost the post-pandemic recovery as the world's second-largest economy struggles with weak demand at home and abroad.
Meanwhile, U.S. Treasury yields have been elevated this week partly due to a rise in supply, with the Treasury Department announcing a $103 billion offering on Wednesday. US/
The yield on 10-year Treasury notes US10YT=RR was at 4.176% in Asian hours, just shy of the nine-month peak of 4.198% touched on Thursday. The yield on the 30-year bond US30YT=RR eased to 4.276%, close to the nine-month high of 4.326%.
In currencies, the dollar index =USD, which measures the U.S. currency against six peers, fell 0.029% to 102.42, easing away from the near one-month peak of 102.84 reached on Thursday. The index was set to record its third straight week of gains.
Sterling GBP=D3 last fetched $1.2727, up 0.11% on the day, after a choppy session overnight as a 25 basis point interest rate hike from the Bank of England provided little comfort for the pound.
In commodities, U.S. crude CLc1 rose 0.22% to $81.73 per barrel and Brent LCOc1 was at $85.26, up 0.14% on the day. O/R
Chicago wheat jumped more than 2% with attacks near a key Russian grain port in the Black Sea region triggering fresh concerns over global grain supplies. The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 2.2% to $6.40-1/2 a bushel. GRA/
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Ankur Banerjee; Editing by Muralikumar Anantharaman)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Amazon.com AMZN.Oreported sales growth and profit that beat analyst estimates, whereas Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares inched higher on Friday, while the dollar retreated from a one-month peak as investors assessed U.S. economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day. .N Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remained tight.
|
Amazon.com AMZN.Oreported sales growth and profit that beat analyst estimates, whereas Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares inched higher on Friday, while the dollar retreated from a one-month peak as investors assessed U.S. economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
|
Amazon.com AMZN.Oreported sales growth and profit that beat analyst estimates, whereas Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares inched higher on Friday, while the dollar retreated from a one-month peak as investors assessed U.S. economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
|
Amazon.com AMZN.Oreported sales growth and profit that beat analyst estimates, whereas Apple AAPL.Oforecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares inched higher on Friday, while the dollar retreated from a one-month peak as investors assessed U.S. economic data that largely showed a resilient labour market and awaited a crucial non-farm payrolls report due later in the day. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
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14504.0
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2023-08-04 00:00:00 UTC
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European stocks steady after three-day selloff
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AAPL
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https://www.nasdaq.com/articles/european-stocks-steady-after-three-day-selloff
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Aug 4 (Reuters) - European stocks steadied on Friday after a three-day selloff as a strong forecast from retail giant Amazon and a host of other companies outweighed recent jitters around slowing global economic growth.
The pan-European STOXX 600 index .STOXX was up 0.1% by 0723 GMT, but still on course for its worst weekly showing in almost a month.
Wall Street futures edged higher as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat outlook from AppleAAPL.O, ahead of the U.S. payrolls data.
Among companies that reported in Europe, French lender Credit AgricoleCAGR.PA climbed 4.2% as strong insurance and consumer finance results helped it report upbeat quarterly earnings.
Italy's state-owned bank Monte dei Paschi di SienaBMPS.MI jumped 4.8% as it posted above-forecast earnings for the second quarter.
Dragging media shares down, WPPWPP.L, the world's biggest advertising group, slid 7.5% after it downgraded its full-year like-for-like growth forecast.
VonoviaVNAn.DE slipped 1.6% as Germany's largest real estate group slipped to a 2 billion euro ($2.19 billion) second-quarter loss and wrote down the value of its properties by 3 billion euros.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sonia Cheema)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street futures edged higher as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat outlook from AppleAAPL.O, ahead of the U.S. payrolls data. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Aug 4 (Reuters) - European stocks steadied on Friday after a three-day selloff as a strong forecast from retail giant Amazon and a host of other companies outweighed recent jitters around slowing global economic growth. Dragging media shares down, WPPWPP.L, the world's biggest advertising group, slid 7.5% after it downgraded its full-year like-for-like growth forecast.
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Wall Street futures edged higher as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat outlook from AppleAAPL.O, ahead of the U.S. payrolls data. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Aug 4 (Reuters) - European stocks steadied on Friday after a three-day selloff as a strong forecast from retail giant Amazon and a host of other companies outweighed recent jitters around slowing global economic growth. VonoviaVNAn.DE slipped 1.6% as Germany's largest real estate group slipped to a 2 billion euro ($2.19 billion) second-quarter loss and wrote down the value of its properties by 3 billion euros.
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Wall Street futures edged higher as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat outlook from AppleAAPL.O, ahead of the U.S. payrolls data. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Aug 4 (Reuters) - European stocks steadied on Friday after a three-day selloff as a strong forecast from retail giant Amazon and a host of other companies outweighed recent jitters around slowing global economic growth. Among companies that reported in Europe, French lender Credit AgricoleCAGR.PA climbed 4.2% as strong insurance and consumer finance results helped it report upbeat quarterly earnings.
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Wall Street futures edged higher as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat outlook from AppleAAPL.O, ahead of the U.S. payrolls data. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Aug 4 (Reuters) - European stocks steadied on Friday after a three-day selloff as a strong forecast from retail giant Amazon and a host of other companies outweighed recent jitters around slowing global economic growth. The pan-European STOXX 600 index .STOXX was up 0.1% by 0723 GMT, but still on course for its worst weekly showing in almost a month.
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2023-08-04 00:00:00 UTC
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Great News for Tesla Stock and Rivian Stock Investors as Ford Sends a Message
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https://www.nasdaq.com/articles/great-news-for-tesla-stock-and-rivian-stock-investors-as-ford-sends-a-message
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Fool.com contributor Parkev Tatevosian deciphers a message sent by Ford (NYSE: F) in its latest quarterlyearnings calland why it could be positive for Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) investors.
*Stock prices used were the afternoon prices of Aug. 1, 2023. The video was published on Aug. 3, 2023.
10 stocks we like better than Ford Motor Company
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Tesla. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Ford Motor Company wasn't one of them! If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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10 stocks we like better than Ford Motor Company When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Ford Motor Company wasn't one of them!
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10 stocks we like better than Ford Motor Company When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 1, 2023 Parkev Tatevosian, CFA has positions in Apple.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Ford Motor Company wasn't one of them! See the 10 stocks *Stock Advisor returns as of August 1, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has a disclosure policy.
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2023-08-04 00:00:00 UTC
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Amazon Frankfurt-listed shares surge, Apple slides after results
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AAPL
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https://www.nasdaq.com/articles/amazon-frankfurt-listed-shares-surge-apple-slides-after-results
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LONDON, Aug 4 (Reuters) - Amazon AMZN.O shares surged on Friday in Frankfurt trading after the company issued an upbeat outlook for the third quarter, while Apple's German-listed shares AAPL.O fell after the company forecast a continued slide in sales.
Amazon AMAZN.F jumped 8.5% on the German market, echoing the steep rise in extended U.S. trading on Thursday after the company reported sales growth and profit that beat Wall Street's expectations, thanks to faster, cheaper deliveries to customers and to the recent headwinds in cloud-computing beginning to subside.
Apple shares AAPL.F fell 2.3% in Frankfurt after the iPhone maker on Thursday forecast that a sales slump would continue into the current quarter, which sent shares down in after-hours trading despite beating Wall Street sales and profit targets in the fiscal third quarter.
(Reporting by Joice Alves; Editing by Amanda Cooper)
((Joice.Alves@thomsonreuters.com; Twitter @joiceal;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Removes extraneous words in paragraph 3 LONDON, Aug 4 (Reuters) - Amazon AMZN.O shares surged on Friday in Frankfurt trading after the company issued an upbeat outlook for the third quarter, while Apple's German-listed shares AAPL.O fell after the company forecast a continued slide in sales. Apple shares AAPL.F fell 2.3% in Frankfurt after the iPhone maker on Thursday forecast that a sales slump would continue into the current quarter, which sent shares down in after-hours trading despite beating Wall Street sales and profit targets in the fiscal third quarter. Amazon AMAZN.F jumped 8.5% on the German market, echoing the steep rise in extended U.S. trading on Thursday after the company reported sales growth and profit that beat Wall Street's expectations, thanks to faster, cheaper deliveries to customers and to the recent headwinds in cloud-computing beginning to subside.
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Removes extraneous words in paragraph 3 LONDON, Aug 4 (Reuters) - Amazon AMZN.O shares surged on Friday in Frankfurt trading after the company issued an upbeat outlook for the third quarter, while Apple's German-listed shares AAPL.O fell after the company forecast a continued slide in sales. Apple shares AAPL.F fell 2.3% in Frankfurt after the iPhone maker on Thursday forecast that a sales slump would continue into the current quarter, which sent shares down in after-hours trading despite beating Wall Street sales and profit targets in the fiscal third quarter. Amazon AMAZN.F jumped 8.5% on the German market, echoing the steep rise in extended U.S. trading on Thursday after the company reported sales growth and profit that beat Wall Street's expectations, thanks to faster, cheaper deliveries to customers and to the recent headwinds in cloud-computing beginning to subside.
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Removes extraneous words in paragraph 3 LONDON, Aug 4 (Reuters) - Amazon AMZN.O shares surged on Friday in Frankfurt trading after the company issued an upbeat outlook for the third quarter, while Apple's German-listed shares AAPL.O fell after the company forecast a continued slide in sales. Apple shares AAPL.F fell 2.3% in Frankfurt after the iPhone maker on Thursday forecast that a sales slump would continue into the current quarter, which sent shares down in after-hours trading despite beating Wall Street sales and profit targets in the fiscal third quarter. Amazon AMAZN.F jumped 8.5% on the German market, echoing the steep rise in extended U.S. trading on Thursday after the company reported sales growth and profit that beat Wall Street's expectations, thanks to faster, cheaper deliveries to customers and to the recent headwinds in cloud-computing beginning to subside.
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Removes extraneous words in paragraph 3 LONDON, Aug 4 (Reuters) - Amazon AMZN.O shares surged on Friday in Frankfurt trading after the company issued an upbeat outlook for the third quarter, while Apple's German-listed shares AAPL.O fell after the company forecast a continued slide in sales. Apple shares AAPL.F fell 2.3% in Frankfurt after the iPhone maker on Thursday forecast that a sales slump would continue into the current quarter, which sent shares down in after-hours trading despite beating Wall Street sales and profit targets in the fiscal third quarter. Amazon AMAZN.F jumped 8.5% on the German market, echoing the steep rise in extended U.S. trading on Thursday after the company reported sales growth and profit that beat Wall Street's expectations, thanks to faster, cheaper deliveries to customers and to the recent headwinds in cloud-computing beginning to subside.
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2023-08-04 00:00:00 UTC
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European stocks stabilise ahead of US payrolls data
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https://www.nasdaq.com/articles/european-stocks-stabilise-ahead-of-us-payrolls-data
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By Sruthi Shankar
Aug 4 (Reuters) - European stocks steadied on Friday, after a recent selloff, as strong results from retail giant Amazon and a host of other companies outweighed recent jitters around slowing economic growth across the continent.
The pan-European STOXX 600 index .STOXX edged up 0.1% after shedding about 3% in the past three sessions.
Wall Street futures also rose as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat sales outlook from iPhone maker AppleAAPL.O.
The focus largely was on U.S. payrolls data, due at 1230 GMT, which is expected to show job growth likely slowed further in July but retained enough momentum to shield the economy from a recession.
"Having just come off the back of another 25 basis points rate hike from the Federal Reserve last week and what may well be the final rate hike of this cycle, the U.S. payrolls data is likely to continue to showcase the resilience of the U.S. economy," Michael Hewson, chief market analyst at CMC Markets, said in a note.
Stock markets on both sides of the Atlantic have rallied in recent weeks, driven by signs of resilience in the U.S. economy and hopes that major central banks are near the end of their monetary tightening cycle.
However, weak data out of Europe and Asia and the surprise downgrade on the U.S. credit rating set the STOXX 600 for its first weekly loss in four.
Earnings were a mixed bag in Europe. French lender Credit AgricoleCAGR.PA climbed 5.7% as strong insurance and consumer finance results helped it report upbeat quarterly earnings.
Italy's state-owned bank Monte dei Paschi di SienaBMPS.MI jumped 3.0% as it posted above-forecast earnings for the second quarter.
Dragging media shares down, WPPWPP.L, the world's biggest advertising group, slid 7.1% after it downgraded its full-year like-for-like growth forecast.
VonoviaVNAn.DE slipped 2.5% as Germany's largest real estate group slipped to a 2 billion euro ($2.19 billion) second-quarter loss and wrote down the value of its properties by 3 billion euros.
Among the STOXX 600 companies that have reported so far, 56% have beaten analysts' profit estimates, as per Refinitiv IBES data. In a typical quarter, 54% top estimates.
Citi strategists upgraded their earnings outlook for 2024, saying "soft landing" scenarios look plausible and that economically sensitive cyclical sectors should benefit the most.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sonia Cheema and Savio D'Souza)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street futures also rose as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat sales outlook from iPhone maker AppleAAPL.O. The focus largely was on U.S. payrolls data, due at 1230 GMT, which is expected to show job growth likely slowed further in July but retained enough momentum to shield the economy from a recession. Stock markets on both sides of the Atlantic have rallied in recent weeks, driven by signs of resilience in the U.S. economy and hopes that major central banks are near the end of their monetary tightening cycle.
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Wall Street futures also rose as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat sales outlook from iPhone maker AppleAAPL.O. By Sruthi Shankar Aug 4 (Reuters) - European stocks steadied on Friday, after a recent selloff, as strong results from retail giant Amazon and a host of other companies outweighed recent jitters around slowing economic growth across the continent. "Having just come off the back of another 25 basis points rate hike from the Federal Reserve last week and what may well be the final rate hike of this cycle, the U.S. payrolls data is likely to continue to showcase the resilience of the U.S. economy," Michael Hewson, chief market analyst at CMC Markets, said in a note.
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Wall Street futures also rose as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat sales outlook from iPhone maker AppleAAPL.O. By Sruthi Shankar Aug 4 (Reuters) - European stocks steadied on Friday, after a recent selloff, as strong results from retail giant Amazon and a host of other companies outweighed recent jitters around slowing economic growth across the continent. "Having just come off the back of another 25 basis points rate hike from the Federal Reserve last week and what may well be the final rate hike of this cycle, the U.S. payrolls data is likely to continue to showcase the resilience of the U.S. economy," Michael Hewson, chief market analyst at CMC Markets, said in a note.
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Wall Street futures also rose as a strong forecast from Amazon.com IncAMZN.O outweighed a downbeat sales outlook from iPhone maker AppleAAPL.O. The pan-European STOXX 600 index .STOXX edged up 0.1% after shedding about 3% in the past three sessions. Stock markets on both sides of the Atlantic have rallied in recent weeks, driven by signs of resilience in the U.S. economy and hopes that major central banks are near the end of their monetary tightening cycle.
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2023-08-04 00:00:00 UTC
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Warren Buffett Has Bought Shares of This Company for 19 Consecutive Quarters -- and No, It's Not Apple
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https://www.nasdaq.com/articles/warren-buffett-has-bought-shares-of-this-company-for-19-consecutive-quarters-and-no-its
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has a way of captivating an audience. Since hosting Berkshire's first annual shareholder meeting in the cafeteria of an owned subsidiary in 1973, which drew a few dozen shareholders, the chance to hear the Oracle of Omaha speak now draws well over 30,000 shareholders and investors to Omaha, Nebraska every year.
Riding Warren Buffett's coattails has been exceptionally profitable for those with long-term mindsets. He's overseen an average annual return of 19.8% for his company's Class A shares (BRK.A) since the mid-1960s (through the end of 2022), which perfectly doubles the annualized total return of the S&P 500 (9.9%) over the same time frame.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Riding Warren Buffett's coattails has been a moneymaking strategy for more than a half-century
Thanks to required Form 13F filings with the Securities and Exchange Commission, mirroring Warren Buffett's buying and selling activity has been made easy.
For example, following the Oracle of Omaha into tech stock Apple (NASDAQ: AAPL) has been a fruitful venture for investors. Considering that Buffett referred to Apple as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, it should come as little surprise that he and his investing team have 47% of Berkshire's $381 billion of invested assets tied up in Apple stock.
Although Apple's extremely loyal customer base was built from its physical product innovation (iPhone, iPad, and Mac), the company's future relies on pivoting to a subscription-based platform. CEO Tim Cook is overseeing this transition, which should lead to a higher operating margin over time, as well as smooth out some of the revenue vacillations Apple deals with during major product-replacement cycles.
Warren Buffett is also a huge fan of Apple's capital-return program, which is arguably tops on Wall Street. In addition to returning more than $15 billion a year to its shareholders via dividends, Apple's board has OK'd a cumulative $586 billion worth of share buybacks over the past 10 years. The Oracle of Omaha appreciates businesses that increase Berkshire Hathaway's ownership stake without him having to lift a finger.
Even though Apple's stock is pricier than it's been in more than a decade, Buffett and his team have continued adding to this core position.
Another stock we've watched Warren Buffett purchase with regularity over the past five quarters is Occidental Petroleum (NYSE: OXY). Although the Oracle of Omaha and his investing lieutenants, Ted Weschler and Todd Combs, have historically never been big on energy stocks, they've absolutely piled into shares of Occidental since the start of 2022 -- 224.1 million shares and counting.
Investing aggressively in oil stocks likely signals that Berkshire Hathaway's top minds believe the price of energy commodities will remain elevated. A tight oil supply market certainly backs up this premise.
More than three years of capital underinvestment caused by the COVID-19 pandemic, coupled with Russia's war with Ukraine, creates tangible global supply concerns for oil. That looks like a recipe for a higher spot price.
Even though Occidental Petroleum is an integrated operator -- i.e., in addition to drilling, it also operates downstream assets, such as chemical plants -- it generates the bulk of its revenue from drilling. In other words, its operating cash flow is more levered to movements in the spot price of crude oil.
Image source: Getty Images.
Buffett has purchased shares of this stock every single quarter since July 2018
While Warren Buffett clearly has his favorites in Berkshire Hathaway's portfolio, the stock he's been buying hand over fist doesn't actually show up in his company's quarterly 13F filings.
There's only one stock that the Oracle of Omaha has bought, without fail, for 19 consecutive quarters (Q3 2018 through Q1 2023), and the only way to discover this buying activity is to review Berkshire Hathaway's quarterly operating results. The company in question that Buffett can't stop buying is (cue the dramatic music)... Berkshire Hathaway.
Prior to the midpoint of July 2018, Berkshire Hathaway's share repurchase program had well-defined parameters. Buffett and his team were only allowed to buy back Berkshire stock if the company's shares traded at or below 120% of book value. At no point in the more than half-decade leading up to mid-July 2018 did Berkshire's stock hit this level, which resulted in no buybacks being undertaken.
Things changed in a meaningful way for Berkshire's dynamic duo -- Warren Buffett and executive vice chairman Charlie Munger -- on July 17, 2018. That's the date the company's board OK'd two criteria that would allow Buffett and Munger more freedom to repurchase shares of their company's stock.
As long as Berkshire Hathaway has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet, and Warren Buffett and Charlie Munger agree that Berkshire stock is trading below its intrinsic value, buybacks can be made without a ceiling.
Although we won't find out if Berkshire's brightest investment minds repurchased additional shares in the June-ended quarter until the company reports its second-quarter operating results, we do know that over $70 billion worth of Berkshire stock has been bought back since July 2018. Not a single quarter has gone by in the past 19 where buybacks weren't undertaken.
Just as the Oracle of Omaha appreciates when Berkshire's investment stake in a company grows due to share buybacks, Buffett appears to want to return the favor to his shareholders. Repurchasing Berkshire Hathaway stock on a regular basis makes each remaining share scarcer.
Share buybacks can also reduce a company's outstanding share count over time. For businesses with steady or growing net income, such as Berkshire Hathaway, fewer shares outstanding can lead to an increase in earnings per share. In other words, buybacks are making Berkshire even more fundamentally attractive to investors.
It's also possible that Berkshire Hathaway's aggressive share repurchase program is a reflection of Warren Buffett's confidence in his company's long-term growth strategy.
Buffett and his lieutenants tend to gravitate to cyclical businesses. Cyclical companies ebb and flow with the health of the U.S. economy. Although recessions are a natural part of the economic cycle, all 12 recessions after World War II have lasted just two to 18 months. Since periods of expansion last considerably longer, packing Berkshire's investment portfolio (and fully owned assets) with cyclical businesses should allow the company to steadily grow its bottom line over time.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, following the Oracle of Omaha into tech stock Apple (NASDAQ: AAPL) has been a fruitful venture for investors. Although Apple's extremely loyal customer base was built from its physical product innovation (iPhone, iPad, and Mac), the company's future relies on pivoting to a subscription-based platform. CEO Tim Cook is overseeing this transition, which should lead to a higher operating margin over time, as well as smooth out some of the revenue vacillations Apple deals with during major product-replacement cycles.
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For example, following the Oracle of Omaha into tech stock Apple (NASDAQ: AAPL) has been a fruitful venture for investors. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has a way of captivating an audience. Just as the Oracle of Omaha appreciates when Berkshire's investment stake in a company grows due to share buybacks, Buffett appears to want to return the favor to his shareholders.
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For example, following the Oracle of Omaha into tech stock Apple (NASDAQ: AAPL) has been a fruitful venture for investors. Considering that Buffett referred to Apple as "a better business than any we own" during Berkshire Hathaway's 2023 annual shareholder meeting, it should come as little surprise that he and his investing team have 47% of Berkshire's $381 billion of invested assets tied up in Apple stock. Buffett has purchased shares of this stock every single quarter since July 2018 While Warren Buffett clearly has his favorites in Berkshire Hathaway's portfolio, the stock he's been buying hand over fist doesn't actually show up in his company's quarterly 13F filings.
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For example, following the Oracle of Omaha into tech stock Apple (NASDAQ: AAPL) has been a fruitful venture for investors. Berkshire Hathaway CEO Warren Buffett. Buffett and his team were only allowed to buy back Berkshire stock if the company's shares traded at or below 120% of book value.
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2023-08-04 00:00:00 UTC
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Helped By Strong Services Growth, Apple Earnings Just Returned to Growth
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https://www.nasdaq.com/articles/helped-by-strong-services-growth-apple-earnings-just-returned-to-growth
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Though Apple's (NASDAQ: AAPL) top line in its fiscal third quarter was down 1% year over year, there was a lot to like about the quarter. Not only was this a narrower year-over-year decline than the previous quarter, but sales were better than management had anticipated and ahead of analysts' average forecast.
Perhaps even more important, Apple returned to earnings growth, as earnings per share came in significantly ahead of analysts' consensus view for the profitability metric. Stealing the show for the quarter was Apple's services segment, which grew substantially year over year and came in at a record quarterly high.
Here's a closer look at the results -- and why the quarter's performance should be viewed as a reason for shareholders to keep betting on the iPhone-maker's shares.
Robust results in a challenging market
Revenue was down 1% year over year despite a 4 percentage point headwind from foreign exchange. This was an improvement from a 3% year-over-year decline last quarter.
Further, it's a solid result, given a challenging smartphone market in the U.S. Management said in Apple'searnings callthat weak iPhone revenue in the U.S. weighed on revenue in its Americas region, which declined almost 6% year over year. As the company's biggest geographical segment, this held back the company's top line.
Despite softness in Apple's Americas segment, the report included many other bright spots. First and foremost, services revenue grew 8% year over year and increased by a double-digit year-over-year rate in constant currency, according to comments from Apple chief financial officer Luca Maestri during the company's fiscal third-quarterearnings call
Capturing the segment's momentum, this growth rate was an acceleration, compared to 5% year-over-year revenue growth in fiscal Q2. Importantly, management said it expects further acceleration in the company's reported services revenue growth rate in fiscal Q4.
Thanks to strength outside of the Americas for the iPhone, the product segment's sales actually increased year over year on a constant-currency basis -- a testament to the resilience of Apple's biggest product line. However, iPhone revenue fell 2% year over year on a reported basis.
Greater China's performance is also worth calling out. The important market returned to growth in the quarter, with sales rising 8% year over year. This compares to a 3% year-over-year decline in Greater China revenue in fiscal Q2.
Perhaps most important of all was the fact that Apple returned to earnings growth. Earnings per share rose 5% year over year to $1.26. This starkly contrasts with a 3% year-over-year decline in earnings per share last quarter. Analysts, on average, were expecting earnings per share of $1.21.
Results worthy of the stock's valuation
Overall, the results helped justify the stock's current valuation. A return to year-over-year earnings growth, revenue growth on a constant-currency basis, and management's comments about expecting improved year-over-year performance for both services and iPhone on a reported basis in fiscal Q4 are all reasons for shareholders to be pleased with the report.
While the stock isn't cheap with a price-to-earnings ratio of about 32, Apple's resilient business in a difficult environment demonstrates why the stock is worth holding onto for the long haul.
10 stocks we like better than Apple
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*Stock Advisor returns as of August 1, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though Apple's (NASDAQ: AAPL) top line in its fiscal third quarter was down 1% year over year, there was a lot to like about the quarter. Not only was this a narrower year-over-year decline than the previous quarter, but sales were better than management had anticipated and ahead of analysts' average forecast. First and foremost, services revenue grew 8% year over year and increased by a double-digit year-over-year rate in constant currency, according to comments from Apple chief financial officer Luca Maestri during the company's fiscal third-quarterearnings call Capturing the segment's momentum, this growth rate was an acceleration, compared to 5% year-over-year revenue growth in fiscal Q2.
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Though Apple's (NASDAQ: AAPL) top line in its fiscal third quarter was down 1% year over year, there was a lot to like about the quarter. First and foremost, services revenue grew 8% year over year and increased by a double-digit year-over-year rate in constant currency, according to comments from Apple chief financial officer Luca Maestri during the company's fiscal third-quarterearnings call Capturing the segment's momentum, this growth rate was an acceleration, compared to 5% year-over-year revenue growth in fiscal Q2. Importantly, management said it expects further acceleration in the company's reported services revenue growth rate in fiscal Q4.
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Though Apple's (NASDAQ: AAPL) top line in its fiscal third quarter was down 1% year over year, there was a lot to like about the quarter. First and foremost, services revenue grew 8% year over year and increased by a double-digit year-over-year rate in constant currency, according to comments from Apple chief financial officer Luca Maestri during the company's fiscal third-quarterearnings call Capturing the segment's momentum, this growth rate was an acceleration, compared to 5% year-over-year revenue growth in fiscal Q2. A return to year-over-year earnings growth, revenue growth on a constant-currency basis, and management's comments about expecting improved year-over-year performance for both services and iPhone on a reported basis in fiscal Q4 are all reasons for shareholders to be pleased with the report.
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Though Apple's (NASDAQ: AAPL) top line in its fiscal third quarter was down 1% year over year, there was a lot to like about the quarter. However, iPhone revenue fell 2% year over year on a reported basis. The important market returned to growth in the quarter, with sales rising 8% year over year.
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2023-08-04 00:00:00 UTC
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US STOCKS-Amazon results boost U.S. futures ahead of jobs data
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https://www.nasdaq.com/articles/us-stocks-amazon-results-boost-u.s.-futures-ahead-of-jobs-data
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.24%, S&P 0.46%, Nasdaq 0.63%
Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings trumped Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy.
Amazon shares AMZN.O surged 8.8% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O fell 1.8% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.K rose between 1% and 6.2% after Amazon's cloud business segment beat sales estimates.
All eyes will be squarely on the July U.S. nonfarm payrolls report, due at 8:30 a.m. ET, with a Reuters poll of economists estimating payrolls increased by 200,000 jobs last month, after having risen 209,000 in June, showing labor market conditions remain tight.
A Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July.
"The U.S. economy still appears to be in decent shape, concern about the manufacturing sector notwithstanding, but the services sector has remained resilient, with another solid ISM survey in July which saw prices paid tick higher, and the employment component tick lower," said Michael Hewson, chief market analyst at CMC Markets UK.
"The resilience in the prices paid component feeds into the concern that rates are likely to remain higher for longer."
The yield on the 10-year benchmark note was steady near the nine-month high it hit due, partly, to Fitch downgrading the United States from a AAA rating to AA+ earlier this week.
Stocks closed marginally lower on Thursday weighed down by the latest batch of economic data and earnings downgrades.
At 05:25 a.m. ET, Dow e-minis 1YMcv1 were up 83 points, or 0.24%, S&P 500 e-minis EScv1 were up 20.75 points, or 0.46%, and Nasdaq 100 e-minis NQcv1 were up 97 points, or 0.63%.
Tupperware TUP.N shot up 55.4% in premarket trading after it finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around its business.
Amgen AMGN.O was up 1.1%, although in low volumes after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs. Its planned acquisition of Horizon Therapeutics HZPN.O is delayed due to regulatory scrutiny.
Sports-betting firm DraftKings DKNG.O shares surged 13.7% after it raised its fiscal year 2023 revenue guidance.
(Reporting by Shubham Batra in Bengaluru; Editing by Savio D'Souza)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon shares AMZN.O surged 8.8% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O fell 1.8% as the iPhone maker forecast a continued slide in sales. ET, with a Reuters poll of economists estimating payrolls increased by 200,000 jobs last month, after having risen 209,000 in June, showing labor market conditions remain tight. A Labor Department report on Thursday showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July.
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Amazon shares AMZN.O surged 8.8% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O fell 1.8% as the iPhone maker forecast a continued slide in sales. Futures up: Dow 0.24%, S&P 0.46%, Nasdaq 0.63% Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings trumped Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. "The U.S. economy still appears to be in decent shape, concern about the manufacturing sector notwithstanding, but the services sector has remained resilient, with another solid ISM survey in July which saw prices paid tick higher, and the employment component tick lower," said Michael Hewson, chief market analyst at CMC Markets UK.
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Amazon shares AMZN.O surged 8.8% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O fell 1.8% as the iPhone maker forecast a continued slide in sales. Futures up: Dow 0.24%, S&P 0.46%, Nasdaq 0.63% Aug 4 (Reuters) - U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings trumped Apple's tepid sales forecast, while investors awaited the July jobs report to firm up the likelihood of a "soft landing" for the economy. "The U.S. economy still appears to be in decent shape, concern about the manufacturing sector notwithstanding, but the services sector has remained resilient, with another solid ISM survey in July which saw prices paid tick higher, and the employment component tick lower," said Michael Hewson, chief market analyst at CMC Markets UK.
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Amazon shares AMZN.O surged 8.8% in premarket trading after the company issued an upbeat outlook for the third quarter, while Apple's shares AAPL.O fell 1.8% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. All eyes will be squarely on the July U.S. nonfarm payrolls report, due at 8:30 a.m.
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14511.0
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2023-08-04 00:00:00 UTC
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Amazon surges on 'game-changing' quarter, iPhone slump drags Apple
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AAPL
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https://www.nasdaq.com/articles/amazon-surges-on-game-changing-quarter-iphone-slump-drags-apple
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nan
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nan
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By Aditya Soni
Aug 4 (Reuters) - Amazon.com shares AMZN.O surged 9% on Friday on signs that both its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's AAPL.O 1.5% slide after gloomy iPhone sales.
The reports capped what has been a positive earnings season for most big U.S. tech firms from Google-owner Alphabet to Meta, thanks to a pick-up in the digital ad market and improving demand for cloud services after a nearly year-long slump.
Online retail giant Amazon was set to add about $120 billion to its market value, based on premarket movements. Meanwhile Apple, the world's most valuable firm, was on course to slide below $3 trillion, with a $50 billion drop in its valuation.
The better-than-expected performance of Amazon's cloud business in the second quarter also lifted other members of the coveted trillion-dollar club, with Microsoft MSFT.O and Alphabet GOOGL.O both rising more than 1%.
Wall Street analysts said Amazon's estimate-beating quarterly profit and sales showed that both its key businesses can grow together after two years of "unpleasant surprises".
"The second quarter is a game-changing quarter for Amazon; we would call it an-all clear moment," said SVB MoffettNathanson analyst Michael Morton.
"Retail and AWS (Amazon Web Services) are working together. No more handwringing on retail losses or AWS optimization, but rather 'how high can retail margins go' and 'when can we see the benefit of artificial intelligence at AWS?'"
At least 17 analysts raised their price targets on the stock, pushing the median view to $154, according to Refinitiv data. That'san upside of nearly 20% to a stock that has already risen almost 50% this year.
Amazon has a 12-month forward price-to-earnings ratio of 58.78, much higher than Apple's 29.5 and the industry median of 14.87.
The iPhone maker warned on Thursday that it was headed for the fourth straight quarter of declining sales as demand continues to slow for its flagship device, especially in developed markets.
But its services business was a bright spot and helped Apple top profit expectations for the June quarter.
"The services arm provides a welcome cushion to the group, but Apple still needs to revive hardware sales growth otherwise the market is going to worry about the next generation of customers to join its ecosphere," said Dan Coatsworth, stock market analyst at AJ Bell.
"It is time for Apple to launch something new and innovative, not just another variation of its core products."
(Reporting by Aditya Soni and Samrhitha Arunasalam in Bengaluru and Joice Alves in London; Editing by Amanda Cooper and Saumyadeb Chakrabarty)
((Joice.Alves@thomsonreuters.com; Twitter @joiceal;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Aditya Soni Aug 4 (Reuters) - Amazon.com shares AMZN.O surged 9% on Friday on signs that both its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's AAPL.O 1.5% slide after gloomy iPhone sales. The reports capped what has been a positive earnings season for most big U.S. tech firms from Google-owner Alphabet to Meta, thanks to a pick-up in the digital ad market and improving demand for cloud services after a nearly year-long slump. The iPhone maker warned on Thursday that it was headed for the fourth straight quarter of declining sales as demand continues to slow for its flagship device, especially in developed markets.
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By Aditya Soni Aug 4 (Reuters) - Amazon.com shares AMZN.O surged 9% on Friday on signs that both its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's AAPL.O 1.5% slide after gloomy iPhone sales. Wall Street analysts said Amazon's estimate-beating quarterly profit and sales showed that both its key businesses can grow together after two years of "unpleasant surprises". "The services arm provides a welcome cushion to the group, but Apple still needs to revive hardware sales growth otherwise the market is going to worry about the next generation of customers to join its ecosphere," said Dan Coatsworth, stock market analyst at AJ Bell.
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By Aditya Soni Aug 4 (Reuters) - Amazon.com shares AMZN.O surged 9% on Friday on signs that both its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's AAPL.O 1.5% slide after gloomy iPhone sales. Wall Street analysts said Amazon's estimate-beating quarterly profit and sales showed that both its key businesses can grow together after two years of "unpleasant surprises". "The services arm provides a welcome cushion to the group, but Apple still needs to revive hardware sales growth otherwise the market is going to worry about the next generation of customers to join its ecosphere," said Dan Coatsworth, stock market analyst at AJ Bell.
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By Aditya Soni Aug 4 (Reuters) - Amazon.com shares AMZN.O surged 9% on Friday on signs that both its growth engines, e-commerce and cloud-computing, were faring well in an uncertain economy, helping shield the broader market from Apple's AAPL.O 1.5% slide after gloomy iPhone sales. The reports capped what has been a positive earnings season for most big U.S. tech firms from Google-owner Alphabet to Meta, thanks to a pick-up in the digital ad market and improving demand for cloud services after a nearly year-long slump. "Retail and AWS (Amazon Web Services) are working together.
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14512.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Asian shares rise as investor focus turns to US payrolls
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-rise-as-investor-focus-turns-to-us-payrolls
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nan
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nan
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By Ankur Banerjee
SINGAPORE, Aug 4 (Reuters) - Asian shares rose on Friday, while the dollar pulled back from a one-month peak as investors took stock of the slew of U.S. economic data that showed a resilient labour market ahead of a crucial non-farm payrolls report due later in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.46% higher after dropping 2.3% on Thursday. Japan's Nikkei .N225 was choppy and last up 0.1%.
"Asian equities face challenging trading conditions on Friday," said market analyst Anderson Alves at ActivTrades, pointing to a risk-off environment after Fitch downgraded its rating of U.S. government by one notch earlier in the week.
"This change has added extra turbulence for Asian risk assets," Alves said.
Chinese blue-chips .CSI300 opened up 0.7%, while the Shanghai Composite Index .SSEC was up 0.5%. The Hong Kong benchmark Hang Seng .HSI surged 1.3% at open.
China's central bank governor pledged on Thursday to guide more financial resources toward the private economy, indicating refreshed urgency from authorities to bolster business sentiment as economic momentum weakens.
Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings. .N
Data showed the number of Americans filing new claims for unemployment benefit rose slightly last week, while layoffs dropped to an 11-month low in July as labour market conditions remain tight.
"U.S. stock markets may be entering a correction phase after a multi-month rally," said markets analyst Tina Teng at CMC Markets. Teng said the upcoming non-farm payroll data will likely provide clues to the Federal Reserve's policy path and can be another price mover.
A mixed set of earnings from technology bellwethers are likely to dominate U.S. markets with Amazon.com AMZN.O reporting sales growth and profit that beat analyst estimates, whereas Apple AAPL.O forecast a sales slump to continue into the current quarter. E-mini futures for the S&P 500 EScv1 was up 0.29%.
U.S. Treasury yields have been elevated partly due to a rise in supply, with the Treasury Department announcing a $103 billion offering on Wednesday. US/
The yield on 10-year Treasury notes US10YT=RR was at 4.187% in Asian hours, just shy of the nine-month peak of 4.198% touched on Thursday. The yield on the 30-year bond US30YT=RR was at 4.302%, close to the nine-month high of 4.326%.
In currencies, the dollar index =USD, which measures U.S. currency against six peers, fell 0.039% to 102.41, easing away from the near one-month peak of 102.84 reached on Thursday.
The euro EUR=EBS was up 0.08% to $1.0953, while the yen JPY=EBS weakened 0.04% to 142.63 per dollar, after gaining 0.5% on Thursday as investors sought safer assets.
Sterling GBP=D3 last fetched $1.2725, up 0.09%, after a choppy session overnight as a 25 basis point interest rate hike from the Bank of England provided little comfort for the pound.
In commodities, U.S. crude CLc1 rose 0.55% to $82.00 per barrel and Brent LCOc1 was at $85.56, up 0.49% on the day. O/R
Spot gold XAU= added 0.1% to $1,936.09 an ounce. U.S. gold futures GCc1 gained 0.10% to $1,933.90 an ounce. GOL/
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by Ankur Banerjee)
((ankur.banerjee@thomsonreuters.com;; Mobile - +65 8121 3925; Twitter: @AnkurBanerjee17;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A mixed set of earnings from technology bellwethers are likely to dominate U.S. markets with Amazon.com AMZN.O reporting sales growth and profit that beat analyst estimates, whereas Apple AAPL.O forecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares rose on Friday, while the dollar pulled back from a one-month peak as investors took stock of the slew of U.S. economic data that showed a resilient labour market ahead of a crucial non-farm payrolls report due later in the day. "Asian equities face challenging trading conditions on Friday," said market analyst Anderson Alves at ActivTrades, pointing to a risk-off environment after Fitch downgraded its rating of U.S. government by one notch earlier in the week.
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A mixed set of earnings from technology bellwethers are likely to dominate U.S. markets with Amazon.com AMZN.O reporting sales growth and profit that beat analyst estimates, whereas Apple AAPL.O forecast a sales slump to continue into the current quarter. "Asian equities face challenging trading conditions on Friday," said market analyst Anderson Alves at ActivTrades, pointing to a risk-off environment after Fitch downgraded its rating of U.S. government by one notch earlier in the week. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
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A mixed set of earnings from technology bellwethers are likely to dominate U.S. markets with Amazon.com AMZN.O reporting sales growth and profit that beat analyst estimates, whereas Apple AAPL.O forecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares rose on Friday, while the dollar pulled back from a one-month peak as investors took stock of the slew of U.S. economic data that showed a resilient labour market ahead of a crucial non-farm payrolls report due later in the day. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
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A mixed set of earnings from technology bellwethers are likely to dominate U.S. markets with Amazon.com AMZN.O reporting sales growth and profit that beat analyst estimates, whereas Apple AAPL.O forecast a sales slump to continue into the current quarter. By Ankur Banerjee SINGAPORE, Aug 4 (Reuters) - Asian shares rose on Friday, while the dollar pulled back from a one-month peak as investors took stock of the slew of U.S. economic data that showed a resilient labour market ahead of a crucial non-farm payrolls report due later in the day. Overnight, U.S. stocks closed little changed after a choppy trading session, as investors weighed rising Treasury yields with the latest batch of economic data and earnings.
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14513.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall Street closes near flat as Treasury yields surge; Apple, Amazon to report
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-near-flat-as-treasury-yields-surge-apple-amazon-to-report
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nan
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nan
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By Echo Wang
Aug 3 (Reuters) - U.S. stocks closed nearly flat on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings.
The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating. In late afternoon trade, the 10-year yield had dipped below 4.194.
“It’s really relative to just pricing against bond yields”, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. “Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.”
Investors will watch quarterly results of Apple AAPL.O and Amazon.com AMZN.O, due to come out after the market close. During the session, the iPhone maker slipped, while the e-commerce giant rose.
A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Investors were waiting for July's jobs report, due on Friday.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up. Richmond Federal Reserve President Thomas Barkin said U.S. inflation remained too high, although recent readings indicated price pressures easing.
According to preliminary data, the S&P 500 .SPX lost 12.37 points, or 0.27%, to end at 4,501.02 points, while the Nasdaq Composite .IXIC lost 13.73 points, or 0.11%, to 13,957.99. The Dow Jones Industrial Average .DJI fell 75.07 points, or 0.21%, to 35,207.45.
Eight of the eleven main S&P 500 sectors declined, with more interest rates sensitive Utilities.SPLRCU and Real Estate .SPLRCR leading losses.
Second-quarter earnings for companies in the S&P 500 are now expected to fall 5% from a year earlier, according to Refinitiv data.
QualcommQCOM.O shares dropped after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O tumbled as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and David Gregorio)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.” Investors will watch quarterly results of Apple AAPL.O and Amazon.com AMZN.O, due to come out after the market close. By Echo Wang Aug 3 (Reuters) - U.S. stocks closed nearly flat on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
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“Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.” Investors will watch quarterly results of Apple AAPL.O and Amazon.com AMZN.O, due to come out after the market close. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating. A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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“Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.” Investors will watch quarterly results of Apple AAPL.O and Amazon.com AMZN.O, due to come out after the market close. By Echo Wang Aug 3 (Reuters) - U.S. stocks closed nearly flat on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
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“Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.” Investors will watch quarterly results of Apple AAPL.O and Amazon.com AMZN.O, due to come out after the market close. By Echo Wang Aug 3 (Reuters) - U.S. stocks closed nearly flat on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
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14514.0
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2023-08-03 00:00:00 UTC
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Jobless Claims Come in Line With Expectations
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AAPL
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https://www.nasdaq.com/articles/jobless-claims-come-in-line-with-expectations
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nan
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nan
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This Thursday morning, Initial Jobless Claims came in exactly as expected at 227K, remaining in the low-cycle range on the past few weeks, and up 6000 new claims from the previous week’s unrevised 221K, which was the cycle low. Continuing Claims, reported a week in arrears from new claims, are also near cycle lows: 1.700 million is up from the 1.68 million longer-term jobless claims reported the previous week, which remains the cycle low, and well off the 1.8+ million pace we had been on back in April of this year.
This is more strong jobs data ahead of tomorrow’s Employment Situation report from the U.S. government. In fact, thus far this week has shown nothing but a labor force apparently immune to outside forces working against the economy. Tuesday’s JOLTS report saw a continuing meltdown in overall job openings, -34K for June, while yesterday’s private-sector jobs release from ADP ADP showed another big upside surprise in jobs filled, with Leisure & Hospitality bringing in 200K new jobs last month all by itself.
Q2 Productivity jumped above expectations this morning, with the non-farm headline +3.7%; +2.3% had been expected, following -2.1% reported for Q1. This figure is the highest we’ve seen since Q3 of 2020, when the bump off a Covid wave brought us +6.5%. Also, Unit Labor Costs came in lower than expected — more good news — at +1.6%, the lowest we’ve seen since Q4 of last year. Basically, if productivity is high but labor costs are low, that’s a recipe for a very strong economy.
Before today’s opening bell, Warner Brothers Discovery WBD shares had been up roughly +6% even though the company missed expectations on both top and bottom lines, but pre-market trading has now brought the stock down to yesterday’s close. Negative earnings of -44 cents per share missed the -39 cents in the Zacks consensus, while revenues of $10.34 billion missed the $10.47 billion expected. The positive take seems to have come from its debt load relief projected: after already paying down $9 billion in debt since the two companies merged, WBD now has a tender offer to pay up to $2.7 billion in additional debt.
Shake Shack SHAK also reported Q2 earnings before today’s regular trading session, doubling expectations on the bottom line with earnings of 18 cents per share, while revenues of $271.8 million missed the Zacks consensus by -0.95% (though notably above the year-ago $230.75 million). Shares are trading down -4% this morning, but consider this stock has grown by leaps and bounds, +80% year to date, more than 4x the S&P 500.
After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Estimates for Apple is for slightly negative year-over-year comparisons on both earnings and overall sales, while Amazon looks for super +240% earnings growth in its Q2, with revenues expected up +8.5%. Both companies are up strong year to date — Apple +53% and Amazon +49% — and carry a Zacks Rank #3 (Hold) into the earnings releases.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. Before today’s opening bell, Warner Brothers Discovery WBD shares had been up roughly +6% even though the company missed expectations on both top and bottom lines, but pre-market trading has now brought the stock down to yesterday’s close.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Shake Shack SHAK also reported Q2 earnings before today’s regular trading session, doubling expectations on the bottom line with earnings of 18 cents per share, while revenues of $271.8 million missed the Zacks consensus by -0.95% (though notably above the year-ago $230.75 million).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Continuing Claims, reported a week in arrears from new claims, are also near cycle lows: 1.700 million is up from the 1.68 million longer-term jobless claims reported the previous week, which remains the cycle low, and well off the 1.8+ million pace we had been on back in April of this year.
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After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. Basically, if productivity is high but labor costs are low, that’s a recipe for a very strong economy.
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14515.0
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2023-08-03 00:00:00 UTC
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Apple, Amazon, Airbnb Beat on Earnings, Sales
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-airbnb-beat-on-earnings-sales
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nan
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nan
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Market indices showed some promise after hitting session lows this morning, until a mid-day swoon led to slightly lower reads as they rang the bell this afternoon. Pretty flat, overall: the Dow -0.07%, the Nasdaq -0.11%, the S&P 500 -0.27% and the small-cap Russell 2000 -0.20%. We obviously remain down over the past week of trading, but are still up respectably over the past month. We’ll see if tomorrow’s Employment Situation report has what it takes to light a fire under bullish investors going forward.
Earlier today, July S&P PMI Services came in slightly below expectations and the previous month’s print to 52.3, while ISM Services slipped even further: to 52.7% from 53.3% expected and 53.9% last time around. Both metrics are still positive (+/- 50) but indicate cooling, rather in-line with other smaller (i.e. “not huge”) economic reports. Factory Orders for June, on the other hand, showed a surprise tick up to +2.3% for the month. This is nearly 4x the previous month’s +0.4%, but a mere 10 basis points (bps) higher than analysts expected.
Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. Revenues of $81.8 billion dipped -1% year over year — the third-straight quarter of declining revenues — but beat expectations of $81.36 billion. According to many analysts, revenue growth is expected to return in fiscal Q4.
iPhone sales came in a smidge below estimates: 39.67 million versus 39.91 million expected. But Services grew +8% year over year to $21.21 billion, easily surpassing the $20.76 billion in the Zacks consensus. Apple’s enormity — $3 trillion market cap, or near it — makes it rather unimpeachable. Yet analysts are already noting the company has thus far taken a back seat on the A.I. hysteria; perhaps, along with some hints on guidance, the conference call will address where Apple is in terms of A.I. development.
Amazon AMZN killed it on the bottom line this afternoon, putting up earnings of 65 cents per share versus a Zacks consensus 34 cents. Revenues of $14.4 billion over the past three months outpaced the $131.5 billion expected. Amazon Web Services (AWS) grew another +12% year over year to $22.1 billion, outperforming expectations. For guidance, Net Sales in the coming quarter are expected to reach between $138-143 billion, with Operating Income guiding to $5.5-8.5 billion. Shares have launched over +6% on the news, surpassing near-term highs above $137 per share; still a ways from 2021 highs.
Airbnb ABNB also notched solid beats on both top and bottom lines this afternoon, with earnings of 98 cents per share easily striding past the 77 cents expected, making it nine straight quarterly earnings beats, on $2.5 billion in sales which outdid the $2.42 billion anticipated. Experiences Booked were a tad slight in the quarter, while Gross Value Bookings were a bit higher. Average Daily Rate is moderating, not increasing. Shares are down -1% so far in late trading on the news, still up more than +60% year to date.
Questions or comments about this article and/or author? Click here>>
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Market indices showed some promise after hitting session lows this morning, until a mid-day swoon led to slightly lower reads as they rang the bell this afternoon.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. But Services grew +8% year over year to $21.21 billion, easily surpassing the $20.76 billion in the Zacks consensus.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. Revenues of $81.8 billion dipped -1% year over year — the third-straight quarter of declining revenues — but beat expectations of $81.36 billion.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL beat estimates on fiscal Q3 earnings this afternoon, making a second-straight beat following its first miss since 2016: $1.26 per share bettered the $1.19 analysts were looking for. But Services grew +8% year over year to $21.21 billion, easily surpassing the $20.76 billion in the Zacks consensus.
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14516.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall Street closes near flat as Treasury yields surge
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-near-flat-as-treasury-yields-surge
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Amazon surges in extended trade after results
Gloomy Spirit, Expedia results drag travel stocks lower
PayPal drops after weak Q2 margins
Qualcomm tumbles on signaling more pain from smartphone slump
Indexes: Dow down 0.19%, S&P 500 down 0.25%, Nasdaq up 0.08%
Updated at 4:35 p.m. ET/8:35 p.m. GMT
By Echo Wang
Aug 3 (Reuters) - U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings.
The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating. In late afternoon trade, the 10-year yield had dipped below 4.194.
“It’s really relative to just pricing against bond yields”, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. “Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.”
A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Investors were waiting for July's jobs report, due on Friday.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up. Richmond Federal Reserve President Thomas Barkin said U.S. inflation remained too high, although recent readings indicated price pressures easing.
The Dow Jones Industrial Average .DJI fell 66.63 points, or 0.19%, to 35,215.89, the S&P 500 .SPX lost 11.5 points, or 0.25%, to 4,501.89 and the Nasdaq Composite .IXIC added 11.77 points, or 0.08%, to 13,985.21.
Eight of the eleven main S&P 500 sectors declined, with more interest rates sensitive Utilities.SPLRCU and Real Estate .SPLRCR leading losses, dropping 2.3% and 1.4% respectively.
After the closing bell, Amazon.comAMZN.O shares surged when the online retailer forecast third-quarter revenue above Wall Street expectations, boosted by its Prime Day sale event in July that drew price-conscious consumers to its platform.
AppleAAPL.O shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts.
Second-quarter earnings for companies in the S&P 500 are now expected to fall 5% from a year earlier, according to Refinitiv data.
QualcommQCOM.O shares dropped 8.2% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O tumbled 12.3% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Volume on U.S. exchanges was 12.08 billion shares, compared with the 10.5 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.84-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored decliners.
The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 58 new highs and 88 new lows.
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and David Gregorio)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts. Amazon surges in extended trade after results Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow down 0.19%, S&P 500 down 0.25%, Nasdaq up 0.08% Updated at 4:35 p.m. ET/8:35 p.m. GMT By Echo Wang Aug 3 (Reuters) - U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. After the closing bell, Amazon.comAMZN.O shares surged when the online retailer forecast third-quarter revenue above Wall Street expectations, boosted by its Prime Day sale event in July that drew price-conscious consumers to its platform.
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AppleAAPL.O shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts. Amazon surges in extended trade after results Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow down 0.19%, S&P 500 down 0.25%, Nasdaq up 0.08% Updated at 4:35 p.m. ET/8:35 p.m. GMT By Echo Wang Aug 3 (Reuters) - U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. QualcommQCOM.O shares dropped 8.2% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
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AppleAAPL.O shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts. Amazon surges in extended trade after results Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow down 0.19%, S&P 500 down 0.25%, Nasdaq up 0.08% Updated at 4:35 p.m. ET/8:35 p.m. GMT By Echo Wang Aug 3 (Reuters) - U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. “Higher yield on 10-year treasuries, … has challenged the attractiveness of stocks.” A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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AppleAAPL.O shares dipped less than 1% in extended trade after the iPhone maker reported quarterly results that beat forecasts. Amazon surges in extended trade after results Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow down 0.19%, S&P 500 down 0.25%, Nasdaq up 0.08% Updated at 4:35 p.m. ET/8:35 p.m. GMT By Echo Wang Aug 3 (Reuters) - U.S. stocks closed little changed on Thursday after a choppy trading session, as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 58 new highs and 88 new lows.
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14517.0
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2023-08-03 00:00:00 UTC
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Apple profit tops Wall Street targets, strong services counter weaker iPhone
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AAPL
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https://www.nasdaq.com/articles/apple-profit-tops-wall-street-targets-strong-services-counter-weaker-iphone-0
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nan
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By Stephen Nellis
Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's strong performance in China helping the company navigate a global decline in the smartphone market.
Apple said sales for the fiscal third quarter ended July 1 fell 1.4% to $81.8 billion and earnings per share rose 5% to $1.26. That topped analyst expectations of $81.69 billion and $1.19 per share, according to IBES data from Refinitiv. IPhone sales slightly missed analyst estimates, but were made up for by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8% year over year.
Apple shares were flat in extended trading after the results.
Apple's research and development spending also hit $22.61 billion for the fiscal year so far, about $3.12 billion higher than at this point in the previous year.
Apple Chief Executive Officer Tim Cook told Reuters in an interview that the increased R&D spending was in part driven by work on generative artificial intelligence, the same field that is driving spending at other big technology companies.
"We've been doing research across a wide range of AI technologies, including generative AI, for years. We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," Cook said. "Obviously, we're investing a lot, and it is showing up in the R&D spending that you're looking at."
Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product - the Vision Pro mixed-reality headset announced in June - is not yet in the hands of consumers.
While Big Tech rivals including Microsoft MSFT.O and Alphabet's GOOGL.O Google are spending billions on dueling chatbots and other AI technologies, Cook said that AI would show up in Apple products as new features. One such feature, he said, will be the iPhone's ability to transcribe voice mail messages in real time, starting this autumn.
In the meantime, Apple appeared to outperform what has been the weakest smartphone market in China in almost a decade. Overall smartphone sales declined 8% in China in the calendar second quarter to their lowest levels since 2014, according to Counterpoint Research. By contrast, Cook told Reuters that Apple's iPhone sales in China grew by "double digits" and that sales were also high in other segments in China.
That helped Apple push sales in its greater China region to$15.76 billion, from $14.60 billion in last year's same quarter.
"This was really done by attracting a quarterly record of switchers to the iPhone, as well as having a strong upgrader activity," Cook said. "We also set quarterly records in China for both wearables, home and accessories, and services."
Apple said iPhone sales were $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv data. Cook said the installed base of iPhones hit a new high but gave no numbers.
Apple's services segment, which includes its Apple TV+ service which has announced a deal to carry Major League Soccer, had $21.21 billion in revenue, compared with analyst estimates of $20.76 billion, according to Refinitiv data.
Cook said Apple now has 1 billion subscribers on its platform, which includes both Apple services and third-party apps, up from 975 million a quarter ago.
The company's wearables business, which includes the Apple Watch and AirPods, had revenue of $8.28 billion, compared with analyst estimates of $8.39 billion, according to Refinitiv data.
Mac and iPad sales were $6.84 billion and $5.79 billion, respectively, compared with analyst estimates of $6.62 billion and $6.41 billion, according to Refinitiv data.
"Almost half of the Mac buyers during the quarter were new to the product, and we continue to see strong upgrader activity to Apple Silicon," Cook told Reuters.
(Reporting by Stephen Nellis in San Francisco and Yuvraj Malik in Bengaluru Editing by Peter Henderson and Matthew Lewis)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's strong performance in China helping the company navigate a global decline in the smartphone market. We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," Cook said. Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product - the Vision Pro mixed-reality headset announced in June - is not yet in the hands of consumers.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's strong performance in China helping the company navigate a global decline in the smartphone market. By contrast, Cook told Reuters that Apple's iPhone sales in China grew by "double digits" and that sales were also high in other segments in China. Apple said iPhone sales were $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv data.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's strong performance in China helping the company navigate a global decline in the smartphone market. IPhone sales slightly missed analyst estimates, but were made up for by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8% year over year. Apple's services segment, which includes its Apple TV+ service which has announced a deal to carry Major League Soccer, had $21.21 billion in revenue, compared with analyst estimates of $20.76 billion, according to Refinitiv data.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's strong performance in China helping the company navigate a global decline in the smartphone market. While Big Tech rivals including Microsoft MSFT.O and Alphabet's GOOGL.O Google are spending billions on dueling chatbots and other AI technologies, Cook said that AI would show up in Apple products as new features. Apple said iPhone sales were $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv data.
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14518.0
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2023-08-03 00:00:00 UTC
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Apple Inc. Q3 Income Climbs, Beats estimates
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-q3-income-climbs-beats-estimates
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) released a profit for its third quarter that increased from last year and beat the Street estimates.
The company's earnings totaled $19.88 billion, or $1.26 per share. This compares with $19.44 billion, or $1.20 per share, in last year's third quarter.
Analysts on average had expected the company to earn $1.19 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 1.4% to $81.80 billion from $82.96 billion last year.
Apple Inc. earnings at a glance (GAAP) :
-Earnings (Q3): $19.88 Bln. vs. $19.44 Bln. last year. -EPS (Q3): $1.26 vs. $1.20 last year. -Analyst Estimate: $1.19 -Revenue (Q3): $81.80 Bln vs. $82.96 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its third quarter that increased from last year and beat the Street estimates. Analysts on average had expected the company to earn $1.19 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its third quarter that increased from last year and beat the Street estimates. The company's earnings totaled $19.88 billion, or $1.26 per share. The company's revenue for the quarter fell 1.4% to $81.80 billion from $82.96 billion last year.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its third quarter that increased from last year and beat the Street estimates. This compares with $19.44 billion, or $1.20 per share, in last year's third quarter. The company's revenue for the quarter fell 1.4% to $81.80 billion from $82.96 billion last year.
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(RTTNews) - Apple Inc. (AAPL) released a profit for its third quarter that increased from last year and beat the Street estimates. The company's earnings totaled $19.88 billion, or $1.26 per share. This compares with $19.44 billion, or $1.20 per share, in last year's third quarter.
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14519.0
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2023-08-03 00:00:00 UTC
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Apple profit tops Wall Street targets, strong services counter weaker iPhone
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AAPL
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https://www.nasdaq.com/articles/apple-profit-tops-wall-street-targets-strong-services-counter-weaker-iphone
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nan
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nan
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By Stephen Nellis
Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's performance in China helping the company navigate a global decline in the smartphone market.
Apple said sales for the fiscal third quarter ended July 1 fell 1.4% to $81.8 billion and earnings per share rose 5% to $1.26. That topped analyst expectations of $81.69 billion and $1.19 per share, according to IBES data from Refinitiv. IPhone sales slightly missed analyst estimates, but were made up for by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8% year over year.
Apple's research and development spending also hit $22.61 billion for the fiscal year so far, about $3.12 billion higher than at this point in the previous year.
Apple Chief Executive Officer Tim Cook told Reuters in an interview that the increased R&D spending was in part driven by work on generative artificial intelligence, the same field that is driving spending at other big technology companies.
"We've been doing research across a wide range of AI technologies, including generative AI, for years. We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," Cook said. "Obviously, we're investing a lot, and it is showing up in the R&D spending that you're looking at."
Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product - the Vision Pro mixed-reality headset announced in June - is not yet in the hands of consumers.
While Big Tech rivals including Microsoft MSFT.O and Alphabet's GOOGL.O Google are spending billions on dueling chatbots and other AI technologies, Cook said that AI would show up in Apple products as new features. One such feature, he said, will be the iPhone's ability to transcribe voice mail messages in real time, starting this autumn.
In the meantime, Apple appeared to outperform what has been the weakest smartphone market in China in almost a decade. Overall smartphone sales declined 8% in China in the calendar second quarter to their lowest levels since 2014, according to Counterpoint Research. By contrast, Cook told Reuters that Apple's iPhone sales in China grew by "double digits" and that sales were also high in other segments in China.
That helped Apple push sales in its greater China region to$15.76 billion, from $14.60 billion in last year's same quarter.
"This was really done by attracting a quarterly record of switchers to the iPhone, as well as having a strong upgrader activity," Cook said. "We also set quarterly records in China for both wearables, home and accessories, and services."
Apple said iPhone sales were $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv data. Cook said the installed base of iPhones hit a new high but gave no numbers.
Apple's services segment, which includes its Apple TV+ service which has announced a deal to carry Major League Soccer, had $21.21 billion in revenue, compared with analyst estimates of $20.76 billion, according to Refinitiv data.
Cook said Apple now has 1 billion subscribers on its platform, which includes both Apple services and third-party apps, up from 975 million a quarter ago.
The company's wearables business, which includes the Apple Watch and AirPods, had revenue of $8.28 billion, compared with analyst estimates of $8.39 billion, according to Refinitiv data.
Mac and iPad sales were $6.84 billion and $5.79 billion, respectively, compared with analyst estimates of $6.62 billion and $6.41 billion, according to Refinitiv data.
"Almost half of the Mac buyers during the quarter were new to the product, and we continue to see strong upgrader activity to Apple Silicon," Cook told Reuters.
(Reporting by Stephen Nellis in San Francisco and Yuvraj Malik in Bengaluru Editing by Peter Henderson and Matthew Lewis)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's performance in China helping the company navigate a global decline in the smartphone market. We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," Cook said. Apple is in a delicate position, with its entrenched iPhone battling for share against Android rivals in a mature market, while its next big product - the Vision Pro mixed-reality headset announced in June - is not yet in the hands of consumers.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's performance in China helping the company navigate a global decline in the smartphone market. By contrast, Cook told Reuters that Apple's iPhone sales in China grew by "double digits" and that sales were also high in other segments in China. Apple said iPhone sales were $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv data.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's performance in China helping the company navigate a global decline in the smartphone market. IPhone sales slightly missed analyst estimates, but were made up for by strong sales in the services segment that contains Apple TV+ and by sales in China that grew 8% year over year. Apple's services segment, which includes its Apple TV+ service which has announced a deal to carry Major League Soccer, had $21.21 billion in revenue, compared with analyst estimates of $20.76 billion, according to Refinitiv data.
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By Stephen Nellis Aug 3 (Reuters) - Apple AAPL.O on Thursday reported sales and profit that beat Wall Street expectations despite a decline in iPhone sales, with its signature device's performance in China helping the company navigate a global decline in the smartphone market. Apple's research and development spending also hit $22.61 billion for the fiscal year so far, about $3.12 billion higher than at this point in the previous year. While Big Tech rivals including Microsoft MSFT.O and Alphabet's GOOGL.O Google are spending billions on dueling chatbots and other AI technologies, Cook said that AI would show up in Apple products as new features.
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14520.0
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2023-08-03 00:00:00 UTC
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After Hours Most Active for Aug 3, 2023 : AMZN, AAPL, ELAN, TQQQ, QQQ, SU, SQQQ, ZYME, PAG, PFE, SQ, UGI
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-3-2023-%3A-amzn-aapl-elan-tqqq-qqq-su-sqqq-zyme-pag-pfe-sq
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The NASDAQ 100 After Hours Indicator is up 24.6 to 15,378.14. The total After hours volume is currently 94,140,876 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is +9.7 at $138.61, with 14,907,210 shares traded. Smarter Analyst Reports: Amazon Expects FTC’s Verdict on MGM Acquisition by Mid-March: Report
Apple Inc. (AAPL) is +2.47 at $193.64, with 4,769,127 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.19. Smarter Analyst Reports: Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Elanco Animal Health Incorporated (ELAN) is unchanged at $11.71, with 3,335,585 shares traded.ELAN is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.05 per share, which represents a 36 percent increase over the EPS one Year Ago
ProShares UltraPro QQQ (TQQQ) is +0.69 at $42.41, with 2,817,392 shares traded. This represents a 163.42% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +2.07 at $375.86, with 2,732,741 shares traded. This represents a 47.83% increase from its 52 Week Low.
Suncor Energy Inc. (SU) is unchanged at $30.32, with 2,503,105 shares traded. As reported by Zacks, the current mean recommendation for SU is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.29 at $18.03, with 2,424,986 shares traded. This represents a 10.07% increase from its 52 Week Low.
Zymeworks Inc. (ZYME) is +0.005 at $7.32, with 1,898,168 shares traded.ZYME is scheduled to provide an earnings report on 8/10/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is -0.51 per share, which represents a -97 percent increase over the EPS one Year Ago
Penske Automotive Group, Inc. (PAG) is unchanged at $172.74, with 1,588,384 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $3.95. PAG's current last sale is 103.44% of the target price of $167.
Pfizer, Inc. (PFE) is -0.01 at $34.99, with 1,289,980 shares traded., following a 52-week high recorded in today's regular session.
Block, Inc. (SQ) is -1.32 at $72.23, with 1,265,628 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
UGI Corporation (UGI) is unchanged at $25.33, with 1,248,994 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +2.47 at $193.64, with 4,769,127 shares traded. Elanco Animal Health Incorporated (ELAN) is unchanged at $11.71, with 3,335,585 shares traded.ELAN is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. Zymeworks Inc. (ZYME) is +0.005 at $7.32, with 1,898,168 shares traded.ZYME is scheduled to provide an earnings report on 8/10/2023, for the fiscal quarter ending Jun2023.
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Apple Inc. (AAPL) is +2.47 at $193.64, with 4,769,127 shares traded. The consensus earnings per share forecast is 0.05 per share, which represents a 36 percent increase over the EPS one Year Ago The consensus earnings per share forecast is -0.51 per share, which represents a -97 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +2.47 at $193.64, with 4,769,127 shares traded. Elanco Animal Health Incorporated (ELAN) is unchanged at $11.71, with 3,335,585 shares traded.ELAN is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.05 per share, which represents a 36 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +2.47 at $193.64, with 4,769,127 shares traded. Amazon.com, Inc. (AMZN) is +9.7 at $138.61, with 14,907,210 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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14521.0
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2023-08-03 00:00:00 UTC
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Investors Should Be Excited About This Stock Market Selloff
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AAPL
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https://www.nasdaq.com/articles/investors-should-be-excited-about-this-stock-market-selloff
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
On Wednesday, the stock market suffered its worst drop since April after credit rating agency Fitch downgraded its rating on U.S. debt. This was the first such downgrade in over a decade. And in response, investors panicked, and stocks crashed.
Ostensibly, that seems like a big deal. A credit rating downgrade for the U.S. government? Yikes.
But in reality, the Fitch downgrade may actually be much ado about nothing.
And this week’s selloff may be little more than a great buying opportunity.
After all, this isn’t the first time we’ve seen the U.S. government’s credit get downgraded.
Back in August 2011, S&P Global downgraded its rating on U.S. debt following a massive increase in U.S. debt obligations. The government had printed a bunch of money to save the economy from collapse during the 2008 financial crisis. And in the spring of 2011, there was some ongoing political theater on Capitol Hill with respect to raising the debt ceiling. As a result, S&P downgraded its credit rating for the U.S. government.
Sound familiar?
We’re living through a nearly identical repeat of that situation right now.
The Stock Market Reaction to a Debt Rating Downgrade
To save the U.S. economy from collapse during COVID-19 lockdowns, the government printed a bunch of money. That substantially increased U.S. debt obligations. And over the past few months, we’ve seen a great deal of political drama on Capitol Hill with respect to raising the debt ceiling. In response to those factors, Fitch downgraded its credit rating for the U.S. government.
History is repeating itself.
So, what happened after S&P Global downgraded U.S. debt in August 2011? Well, initially, the exact same thing we saw this week – treasury yields spiked, and stocks crashed. The stock market reacted like it was the end of the world.
But it wasn’t. The economy kept turning. Earnings kept going up. The U.S. government remained on rock-solid footing.
Soon enough, everyone forgot about the downgrade.
A month later, stocks were higher, and yields were lower. Over the following year, stocks rallied as much as 30%, and yields dropped more than 100 basis points.
Therefore, the historical precedent for our current situation shows that this week’s big stock market selloff has created a great buying opportunity.
Over the next few weeks and months, investors will forget all about this debt rating downgrade. Ultimately, more important factors – like renewed economic momentum, falling inflation, and a dovish shift in Fed policy – will continue to push the stock market higher.
Will stocks rally 30% over the next year?
We think so. All of the technical and fundamental data we’re looking at suggests the market is in the early innings of a new bull market.
And the first year of new bull markets often has the biggest returns.
The Final Word
But as we’ve said many times before, stocks don’t go up in straight lines, not even in raging bull markets.
They take two steps forward, then one step back. Lather, rinse, repeat.
The key to maximizing profits in bull markets, then, is to always buy the dips when stocks take a step back.
And they took a major step back yesterday.
Now it’s time to buy the dip.
And that’s why I want to tell you about one of my favorite investments for this new bull market.
One great prospective investment is the very company that started this whole stock market boom – OpenAI, the creator of ChatGPT.
Since ChatGPT’s launch in November 2022, the company’s valuation has doubled!
But that’s just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
OpenAI represents the potential investment opportunity of a lifetime.
Too bad it is a startup that you can’t buy on a public exchange like a big stock…
Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
This is your chance to invest in the next big thing. Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Investors Should Be Excited About This Stock Market Selloff appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. The Stock Market Reaction to a Debt Rating Downgrade To save the U.S. economy from collapse during COVID-19 lockdowns, the government printed a bunch of money. Ultimately, more important factors – like renewed economic momentum, falling inflation, and a dovish shift in Fed policy – will continue to push the stock market higher.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. The Stock Market Reaction to a Debt Rating Downgrade To save the U.S. economy from collapse during COVID-19 lockdowns, the government printed a bunch of money. And over the past few months, we’ve seen a great deal of political drama on Capitol Hill with respect to raising the debt ceiling.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips On Wednesday, the stock market suffered its worst drop since April after credit rating agency Fitch downgraded its rating on U.S. debt. The Stock Market Reaction to a Debt Rating Downgrade To save the U.S. economy from collapse during COVID-19 lockdowns, the government printed a bunch of money.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. A credit rating downgrade for the U.S. government? Over the next few weeks and months, investors will forget all about this debt rating downgrade.
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14522.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall Street near unchanged, trading choppy as Treasury yields surge
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-near-unchanged-trading-choppy-as-treasury-yields-surge
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nan
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nan
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By Echo Wang
Aug 3 (Reuters) - The S&P 500.SPX held near the flat line in choppy trade on Thursday afternoon as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings.
The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
“It was a carryover from yesterday's fear. People who got hit yesterday and didn't get a chance to get out got out this morning", said Brad McMillan, chief investment officer for Commonwealth Financial Network, "but then the buyers are showing up. So we're more greed than fear at this point.”
A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Investors were waiting for July's jobs report, due on Friday.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up. Richmond Federal Reserve President Thomas Barkin said U.S. inflation remained too high, although recent readings indicated price pressures easing.
The Cboe Volatility Index .VIX, Wall Street's fear gauge, briefly hit a two-month high and was last up at 16.11.
After the market close, Apple AAPL.O and Amazon.com AMZN.O are due to report quarterly results. During the session, the iPhone maker slipped 0.5%, while the e-commerce giant added 0.8%.
QualcommQCOM.O shares shed 9% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O tumbled 11.5% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Declining issues outnumbered advancing ones on the NYSE by a 1.64-to-1 ratio; on Nasdaq, a 1.00-to-1 ratio favored advancers.
The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 54 new highs and 73 new lows.
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and David Gregorio)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After the market close, Apple AAPL.O and Amazon.com AMZN.O are due to report quarterly results. By Echo Wang Aug 3 (Reuters) - The S&P 500.SPX held near the flat line in choppy trade on Thursday afternoon as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
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After the market close, Apple AAPL.O and Amazon.com AMZN.O are due to report quarterly results. So we're more greed than fear at this point.” A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight. Declining issues outnumbered advancing ones on the NYSE by a 1.64-to-1 ratio; on Nasdaq, a 1.00-to-1 ratio favored advancers.
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After the market close, Apple AAPL.O and Amazon.com AMZN.O are due to report quarterly results. So we're more greed than fear at this point.” A Labor Department report showed the number of Americans filing new claims for unemployment benefits increased slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight. The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 54 new highs and 73 new lows.
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After the market close, Apple AAPL.O and Amazon.com AMZN.O are due to report quarterly results. By Echo Wang Aug 3 (Reuters) - The S&P 500.SPX held near the flat line in choppy trade on Thursday afternoon as investors weighed another rise in Treasury yields with the latest batch of economic data and earnings. The benchmark U.S. 10-year Treasury yield rose as high as 4.198% during the session, the highest since November, extending its climb from a day earlier following Fitch's downgrade of the top-tier U.S. credit rating.
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14523.0
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2023-08-03 00:00:00 UTC
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American Express (NYSE:AXP): An Interesting Value Stock to Watch on Weakness
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AAPL
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https://www.nasdaq.com/articles/american-express-nyse%3Aaxp%3A-an-interesting-value-stock-to-watch-on-weakness
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nan
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nan
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Shares of American Express (NYSE:AXP) have been gravitating lower again following a sub-optimal quarter and a notable downgrade courtesy of an analyst who sees student loan headwinds on the horizon. Undoubtedly, American Express stock was already a tough buy in the face of a potential economic recession.
Consumer spending is expected to grind lower in the second half, threatening to drag down the broader basket of payments plays. In any case, I do think the bar has already been lowered quite a bit for American Express going into what's shaping up to be a headwind-filled couple of quarters.
Indeed, travel and entertainment already had its moment to recover from the worst of the pandemic. In that regard, the easy gains already seem to have been made.
Regardless, longer-term thinkers still have plenty of reasons to hang onto the stock, even if analysts begin to turn their back on the name. My bull case isn't just about timing the macro headwinds that may lie ahead. American Express has plenty of intriguing growth levers it may wish to pull as the payments space collides with cutting-edge fintech technologies and AI.
For that reason, I'm staying bullish on American Express stock and continue to see it as one of the better value offerings in the market right now.
American Express Stock Slapped with a Downgrade
American Express posted a pretty mixed bag for its second quarter. The company beat on earnings (EPS of $2.89 vs. $2.81 estimate) but missed on revenue ($15.05 billion vs. $15.5 billion estimate). The post-earnings reaction was quite negative despite management's guidance reiteration, which calls for 15-17% revenue growth for the year. Many investors may be feeling the initial chilly breeze of that potentially-looming recession.
Piper Sandler's Kevin Barker slapped the stock with a "Sell," while slashing AXP's price target to $149 from $172, implying downside of over 10% from current levels. Barker sees growth and margin pressures at the hands of student loan debt repayments coming due later in the year.
Indeed, it's a notable headwind but one that may be offset by a softer-than-expected landing for the economy. At this pace, a soft landing does seem likely. However, whether the student loan headwinds weigh down AXP stock further remains to be seen.
For now, the tough quarter and significant downgrade have made AXP stock that much cheaper, and I'm a fan while shares trade at 16.9 times trailing price-to-earnings, well below the credit services industry average of 22.4 times.
Inheriting Apple's Partnership from Goldman Sachs Could be a Shot in the Arm
Just a month ago, a Wall Street Journal report noted investment banking behemoth Goldman Sachs (NYSE:GS) was looking to offload its Apple (NASDAQ:AAPL) Card and Savings products, possibly to American Express. Indeed, we haven't heard anything new about the matter since.
Still, one has to view a potential partnership with Apple as a sizeable opportunity to catch up to the likes of its larger credit card and payment peers. Right now, it's hard to tell if American Express and Apple will form a relationship as Goldman Sachs looks to take a walk. However, the fact that Warren Buffett's Berkshire Hathaway (NYSE:BRK.B) owns a hefty stake in each firm makes such a partnership that much more interesting.
Further, Apple's tech expertise and more than one billion iPhone userbase could come in handy as American Express looks to extend its reach across the U.S. and abroad.
For now, an American Express-backed Apple Card doesn't seem to make a lot of sense, given that it's not exactly the most accepted credit card in the world. It seems like nearly everybody has an iPhone, but very few folks actually have an American Express card. Still, this could change if American Express takes over for Goldman at some point in the near future.
Over the years, American Express has made huge strides regarding acceptance across the U.S. market. Reportedly, around 99% of American merchants now accept American Express cards. Also, if the credit card giant can increase acceptance internationally, possibly with some help from Apple, I do see a scenario where American Express may have a pathway to really close the gap with its credit card peers.
Is AXP Stock a Buy, According to Analysts?
Turning to Wall Street, AXP stock comes in as a Moderate Buy. Out of 13 analyst ratings, there have been five Buys, five Holds, and four Sell recommendations assigned in the past three months.
The average American Express stock price target is $178.54, implying upside potential of 7.2%. Analyst price targets range from a low of $125 per share to a high of $203 per share.
The Bottom Line on American Express Stock
Even if American Express doesn't end up backing Apple's financial products, expect the credit card firm to continue staying on its toes on the front of innovation.
Indeed, American Express is just another old-school company dabbling with generative AI through its Amex Digital Labs division. Over the next few years, there's hope that AI innovations could help American Express widen its moat and give its growth a jolt.
For now, I think investors and analysts are too nearsighted when it comes to the name following an underwhelming quarter and a remarkable quarterly downgrade from Piper Sandler.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Inheriting Apple's Partnership from Goldman Sachs Could be a Shot in the Arm Just a month ago, a Wall Street Journal report noted investment banking behemoth Goldman Sachs (NYSE:GS) was looking to offload its Apple (NASDAQ:AAPL) Card and Savings products, possibly to American Express. Shares of American Express (NYSE:AXP) have been gravitating lower again following a sub-optimal quarter and a notable downgrade courtesy of an analyst who sees student loan headwinds on the horizon. American Express has plenty of intriguing growth levers it may wish to pull as the payments space collides with cutting-edge fintech technologies and AI.
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Inheriting Apple's Partnership from Goldman Sachs Could be a Shot in the Arm Just a month ago, a Wall Street Journal report noted investment banking behemoth Goldman Sachs (NYSE:GS) was looking to offload its Apple (NASDAQ:AAPL) Card and Savings products, possibly to American Express. Piper Sandler's Kevin Barker slapped the stock with a "Sell," while slashing AXP's price target to $149 from $172, implying downside of over 10% from current levels. The average American Express stock price target is $178.54, implying upside potential of 7.2%.
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Inheriting Apple's Partnership from Goldman Sachs Could be a Shot in the Arm Just a month ago, a Wall Street Journal report noted investment banking behemoth Goldman Sachs (NYSE:GS) was looking to offload its Apple (NASDAQ:AAPL) Card and Savings products, possibly to American Express. Shares of American Express (NYSE:AXP) have been gravitating lower again following a sub-optimal quarter and a notable downgrade courtesy of an analyst who sees student loan headwinds on the horizon. American Express Stock Slapped with a Downgrade American Express posted a pretty mixed bag for its second quarter.
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Inheriting Apple's Partnership from Goldman Sachs Could be a Shot in the Arm Just a month ago, a Wall Street Journal report noted investment banking behemoth Goldman Sachs (NYSE:GS) was looking to offload its Apple (NASDAQ:AAPL) Card and Savings products, possibly to American Express. Shares of American Express (NYSE:AXP) have been gravitating lower again following a sub-optimal quarter and a notable downgrade courtesy of an analyst who sees student loan headwinds on the horizon. Is AXP Stock a Buy, According to Analysts?
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14524.0
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2023-08-03 00:00:00 UTC
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Will Apple and Amazon’s Earnings Justify Lofty Price Levels?
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AAPL
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https://www.nasdaq.com/articles/will-apple-and-amazons-earnings-justify-lofty-price-levels
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nan
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The markets will look to quarterly earnings results after today’s close from Apple (AAPL) and Amazon.com (AMZN) for market direction. Both stocks have rallied sharply recently, which is a significant reason why the S&P 500 Stock Index ($SPX) (SPY) is up more than +17% this year. However, with both stocks trading at elevated multiples and facing headwinds to their core businesses, there will be pressure for today’s earnings results to justify their recent sharp rallies.
Interest rate-sensitive technology stocks have come under pressure this week from a surge in bond yields as the 10-year T-note yield rose to a 9-month high today. If the recent rally in technology stocks is to get back on track, Apple, with its 48% gain this year and its market cap of more than $3 trillion, will need to show impressive quarterly earnings results today as the company accounts for nearly 8% of the S&P 500 Index, giving it enormous sway over the index
Apple today is expected to report a -1.7% y/y decline in revenue in its fiscal third quarter, which would be its third consecutive year-over-year contraction in revenue. Apple also faces a risk from a weak smartphone market in China, one of its biggest markets, especially after Qualcomm's (QCOM) tepid revenue forecast Wednesday underlined weak demand for mobile devices. Huntington Private Bank said, “Apple looks expensive, and presumably everyone who wants to own it already does, so you really have to wonder what it could do to get a pop.”
With this year’s +53% rally in Amazon.com, the stock trades at about 40 times estimated earnings. Although that is below its long-term average, a key driver of the company’s profitability comes from its Amazon Web Services cloud business. In a potential warning sign for cloud services, Microsoft warned of an extended slowdown in its cloud-computing business last week. Huntington Private Bank said, “The results for Microsoft were decent, but even decent results won’t be well received with Amazon as Amazon is still the market leader in cloud, and if it also shows things slowing, then investors got ahead of themselves.”
The health of the consumer could decide the fate of today’s earnings results from Apple and Amazon.com. Bloomberg Intelligence notes that the fiscal third quarter is a seasonally weak period for Apple, with the Mac being the sole product category that may post better-than-expected results. Apple has also asked its suppliers to keep iPhone shipments flat year-over-year as it contends with waning demand for electronics, though it may still raise prices for its Pro models. Bloomberg Intelligence also said that slowing consumer and enterprise spending could offset Amazon’s strength in streaming and advertising.
More Stock Market News from Barchart
Surging Bond Yields Undercut Stocks What Happens if Your EV Company Implodes? That’s the Mullen (MULN) Dilemma Markets Today: Stocks Weighed Down by Higher Bond Yields How to Buy WFC for an 8% Discount, Or Achieve a 12% Annual Return
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The markets will look to quarterly earnings results after today’s close from Apple (AAPL) and Amazon.com (AMZN) for market direction. However, with both stocks trading at elevated multiples and facing headwinds to their core businesses, there will be pressure for today’s earnings results to justify their recent sharp rallies. Bloomberg Intelligence notes that the fiscal third quarter is a seasonally weak period for Apple, with the Mac being the sole product category that may post better-than-expected results.
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The markets will look to quarterly earnings results after today’s close from Apple (AAPL) and Amazon.com (AMZN) for market direction. If the recent rally in technology stocks is to get back on track, Apple, with its 48% gain this year and its market cap of more than $3 trillion, will need to show impressive quarterly earnings results today as the company accounts for nearly 8% of the S&P 500 Index, giving it enormous sway over the index Apple today is expected to report a -1.7% y/y decline in revenue in its fiscal third quarter, which would be its third consecutive year-over-year contraction in revenue. Huntington Private Bank said, “The results for Microsoft were decent, but even decent results won’t be well received with Amazon as Amazon is still the market leader in cloud, and if it also shows things slowing, then investors got ahead of themselves.” The health of the consumer could decide the fate of today’s earnings results from Apple and Amazon.com.
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The markets will look to quarterly earnings results after today’s close from Apple (AAPL) and Amazon.com (AMZN) for market direction. If the recent rally in technology stocks is to get back on track, Apple, with its 48% gain this year and its market cap of more than $3 trillion, will need to show impressive quarterly earnings results today as the company accounts for nearly 8% of the S&P 500 Index, giving it enormous sway over the index Apple today is expected to report a -1.7% y/y decline in revenue in its fiscal third quarter, which would be its third consecutive year-over-year contraction in revenue. Huntington Private Bank said, “The results for Microsoft were decent, but even decent results won’t be well received with Amazon as Amazon is still the market leader in cloud, and if it also shows things slowing, then investors got ahead of themselves.” The health of the consumer could decide the fate of today’s earnings results from Apple and Amazon.com.
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The markets will look to quarterly earnings results after today’s close from Apple (AAPL) and Amazon.com (AMZN) for market direction. If the recent rally in technology stocks is to get back on track, Apple, with its 48% gain this year and its market cap of more than $3 trillion, will need to show impressive quarterly earnings results today as the company accounts for nearly 8% of the S&P 500 Index, giving it enormous sway over the index Apple today is expected to report a -1.7% y/y decline in revenue in its fiscal third quarter, which would be its third consecutive year-over-year contraction in revenue. Bloomberg Intelligence notes that the fiscal third quarter is a seasonally weak period for Apple, with the Mac being the sole product category that may post better-than-expected results.
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2023-08-03 00:00:00 UTC
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US STOCKS-S&P 500, Dow slip in volatile session as yields rise, earnings disappoint
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-slip-in-volatile-session-as-yields-rise-earnings-disappoint
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Moderna sees up to $8 bln in 2023 COVID shot sales, shares up
Gloomy Spirit, Expedia results drag travel stocks lower
PayPal drops after weak Q2 margins
Qualcomm tumbles on signaling more pain from smartphone slump
Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05%
Updated at 11:33 a.m. ET/1533 GMT
By Shubham Batra and Bansari Mayur Kamdar
Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge.
Market participants have been keeping a close watch on data as they fear the Federal Reserve may stick to its rate-hike path if it fails to bring inflation within its targeted range.
A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up, suggesting a long and slow road to low inflation.
The yield on the 10-year benchmark note rose to 4.169% after the data to a nine-month high, extending its climb from a day earlier when Fitch's downgrade of top-tier U.S. credit rating and strong private employment data supported its upward move.
All eyes are now on July's employment report, which is scheduled to be released on Friday.
"What financial markets have been anticipating is that the Fed has completed its rate hike campaign," said Quincy Krosby, chief global strategist at LPL Financial.
"With the underlying strength in the economy coupled with prices inching higher, the pullback in the market may need to see yields on the 10-year Treasury ease in order to restore momentum."
Richmond Federal Reserve President Thomas Barkin said on Thursday U.S. inflation remained too high, although recent readings indicated an easing of price pressures.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 46.72 points, or 0.13%, at 35,235.80, the S&P 500 .SPX was down 8.34 points, or 0.18%, at 4,505.05, and the Nasdaq Composite .IXIC was up 6.53 points, or 0.05%, at 13,979.98.
The Cboe Volatility Index .VIX, Wall Street's fear gauge, briefly hit a two-month high and was last up at 16.33.
Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close.
The iPhone maker slipped 0.3%, while the e-commerce giant added 0.6%, respectively.
Second-quarter earnings are now expected to fall 5% from a year earlier, according to Refinitiv data.
QualcommQCOM.O tumbled 10.2% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O shed 10.7% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Meanwhile, ModernaMRNA.O gained 1.1% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.
Declining issues outnumbered advancers for a 2.08-to-1 ratio on the NYSE and a 1.28-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and four new lows, while the Nasdaq recorded 37 new highs and 63 new lows.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. (Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva) ((Shubham.Batra@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge.
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14526.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Shares stumble as US yields rise; pound flat after BoE hike
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-stumble-as-us-yields-rise-pound-flat-after-boe-hike
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nan
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nan
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By Lawrence Delevingne and Tom Wilson
Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound flat after an initial drop on the Bank of England raising rates.
Wall Street added to a wave of selling a day earlier, with the Dow Jones Industrial Average .DJI down 0.27% to 35,186, the S&P 500 .SPX0.31% lower at 4,499 and the Nasdaq Composite .IXIC dropping 0.12% to 13,956.00.
Pressuring stocks were mixed earnings, a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data, and the announced refunding of the U.S. government's maturing debt.
U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.17%, while 30-year yields US30YT=RR rose to a fresh nine-month top, up 11.9 basis points to 4.284%.
That helped the dollar =USD stay buoyant near a one-month high at $102.450 against major peers. The strong private payrolls data added to signs of U.S. labor market resilience, with the nonfarm payrolls report due on Friday. FRX/
Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July. The government also said that U.S. worker productivity rebounded sharply in the second quarter, another boost to the improving inflation outlook.
EURO SHARES DOWN
European shares.STOXX slipped 0.8%, bruised by disappointing earnings reports and elevated U.S. bond yields, putting them on course for their third straight day of losses.
UK shares .FTSE, however, initially ticked higher after the Bank of England raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%. The index was last down 0.6%.
SterlingGBP=D3was last trading flat after falling as much as 0.7% following the BoE move.
The BoE decision was closely watched for clues on how central banks globally will balance taming inflation and maintaining growth. The BoE's monetary policy committee (MPC) was split on the size of the rate hike.
"This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
APPLE, AMAZON AHEAD
Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified.
Apple is expected to report the largest third-quarter drop in its revenues since 2016 as iPhone sales slow.
Amazon, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2%, extending losses after a drop of 2.3% a day earlier.
Still, Chinese blue chips .CSI300 rose 0.9% after a private survey showed China's services activity expanded at a faster place in July.
Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
OIL UP, GOLD STEADY
Oil gained after dropping sharply from more than three-month highs in the previous session after Saudi state news agency SPA said that the country will extend a voluntary oil output cut of 1 million barrels per day for another month to include September.
U.S. crude CLc1 rose 1.74% to $80.87 per barrel and Brent LCOc1 was at $84.46, up 1.51% on the day.
Gold was steady after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but bullion held near three-week lows on a stronger dollar and higher bond yields.
Spot gold XAU=ticked up 0.2% to around $1,938 an ounce, held in check by a robust dollar and elevated bond yields.
Dollar v2 030823 https://tmsnrt.rs/3QqYQi4
(Reporting by Lawrence Delevingne in Boston, Tom Wilson in London and Stella Qiu in Sydney; editing by Jonathan Oatis and Alexander Smith)
((lawrence.delevingne@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. FRX/ Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July. "This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound flat after an initial drop on the Bank of England raising rates. European shares.STOXX slipped 0.8%, bruised by disappointing earnings reports and elevated U.S. bond yields, putting them on course for their third straight day of losses.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound flat after an initial drop on the Bank of England raising rates. Oil gained after dropping sharply from more than three-month highs in the previous session after Saudi state news agency SPA said that the country will extend a voluntary oil output cut of 1 million barrels per day for another month to include September.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound flat after an initial drop on the Bank of England raising rates. FRX/ Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July.
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14527.0
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2023-08-03 00:00:00 UTC
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Unusual Put Option Trade in Apple (AAPL) Worth $1,165.60K
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AAPL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-apple-aapl-worth-%241165.60k
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nan
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nan
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On August 3, 2023 at 11:05:53 ET an unusually large $1,165.60K block of Put contracts in Apple (AAPL) was sold, with a strike price of $185.00 / share, expiring in 78 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.32 sigmas above the mean, placing it in the 89.77th percentile of all recent large trades made in AAPL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 6389 funds or institutions reporting positions in Apple. This is a decrease of 23 owner(s) or 0.36% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 36.32%. Total shares owned by institutions decreased in the last three months by 2.02% to 9,916,507K shares.
The put/call ratio of AAPL is 0.86, indicating a bullish outlook.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
Analyst Price Forecast Suggests 1.46% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 1.46% from its latest reported closing price of 195.83.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.94% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.80% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.48% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On August 3, 2023 at 11:05:53 ET an unusually large $1,165.60K block of Put contracts in Apple (AAPL) was sold, with a strike price of $185.00 / share, expiring in 78 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.32 sigmas above the mean, placing it in the 89.77th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 36.32%.
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On August 3, 2023 at 11:05:53 ET an unusually large $1,165.60K block of Put contracts in Apple (AAPL) was sold, with a strike price of $185.00 / share, expiring in 78 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.32 sigmas above the mean, placing it in the 89.77th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 36.32%.
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On August 3, 2023 at 11:05:53 ET an unusually large $1,165.60K block of Put contracts in Apple (AAPL) was sold, with a strike price of $185.00 / share, expiring in 78 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.32 sigmas above the mean, placing it in the 89.77th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 36.32%.
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On August 3, 2023 at 11:05:53 ET an unusually large $1,165.60K block of Put contracts in Apple (AAPL) was sold, with a strike price of $185.00 / share, expiring in 78 day(s) (on October 20, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.32 sigmas above the mean, placing it in the 89.77th percentile of all recent large trades made in AAPL options. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 36.32%.
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14528.0
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2023-08-03 00:00:00 UTC
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Apple Stock Price Outlook: The Road to $400 and Beyond
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AAPL
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https://www.nasdaq.com/articles/apple-stock-price-outlook%3A-the-road-to-%24400-and-beyond
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Apple (NASDAQ:AAPL) stock buyers were fully in control during 2023’s first half. Can they follow through after a huge share-price rally, though? The answer is yes, especially with Apple expecting to maintain a robust production pace for its world-famous smartphone model.
Apple will always have its critics, but I’m not worried about the company at all. Sure, there are challenges to be faced, especially in China’s tech market.
Nevertheless, I’m standing by my Apple share price target of $400 by 2025. Moreover, today I’m unabashedly recommending holding your AAPL stock and collecting dividends (even if the yield is low) for the long term.
Apple’s Defiant Confidence in a Challenged Market
Most likely, people generally don’t invest in Apple for the dividend payments. They’re looking for growth; they want to see Apple’s already impressive $3 trillion market capitalization expand even further.
Growth isn’t linear, however, as there will be hiccups along the way. Even a tech titan like Apple must face challenges, such as the tech-gadget market slump in China.
It’s no secret that a large portion of Apple’s production process (90% to 95%, reportedly) takes place in China. Yet, you might be surprised to discover that a sizable swath of Apple’s smartphone sales also occur in China; according to Barron’s, “Apple’s iPhone 13 was China’s best-selling smartphone last year.”
Hence, some of Apple’s investors may be concerned about “China risk” as the country struggles with less-than-ideal economic conditions. To quote Piper Sandler analyst Harsh Kumar, “In our conversations, most investors feel that a soft China could pose a risk to the numbers and further commentary.”
Apple’s management doesn’t seem to be overly concerned, however. Bloomberg reports that Apple is “asking suppliers to produce” roughly 85 million iPhone 15 units in 2023. That number is “roughly in line with the year before,” so clearly Apple’s insiders aren’t losing too much sleep over various obstacles in China and elsewhere.
Could a PC Recovery Boost AAPL Stock?
While smartphone sales are Apple’s bread and butter, let’s not ignore the company’s other tech gadgets. For example, Apple could generate significant revenue from its upcoming $3,499 mixed-reality (MR) headset.
Additionally, Apple might benefit from a potential recovery in a tech-market segment that slumped last year. I’m referring to the personal computer (PC) market — and one analyst envisions a surprising comeback in this niche segment.
Wells Fargo analyst Aaron Rakers actually sees brighter days ahead for PC manufacturers. “We continue to believe that the PC industry has completed its inventory correction — leaving us to focus on a stabilizing demand environment” heading into 2023’s second half and the first half of next year, Rakers posited.
Furthermore, there are implications for AAPL stock investors. “We expect Apple to continue to gain share as the PC market recovers,” Rakers predicted. Just imagine, if you can, Apple and its shareholders benefiting from a PC industry revival. It’s amazing to think about, but it might actually happen this or next year.
AAPL Stock: $400 Is Still Realistic for 2025
Could the Apple share price double by 2025? It’s entirely possible as Apple clearly remains confident in its smartphone sales.
Along with that, Apple could potentially generate strong revenue from MR headsets and PCs. So, despite ongoing challenges in China and elsewhere, there’s no reason to bet against Apple.
Ultimately, AAPL stock investors should stay in the trade and aim for $400 at least. Beyond that, we can always revisit and reassess Apple’s future prospects.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post Apple Stock Price Outlook: The Road to $400 and Beyond appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, today I’m unabashedly recommending holding your AAPL stock and collecting dividends (even if the yield is low) for the long term. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Apple (NASDAQ:AAPL) stock buyers were fully in control during 2023’s first half. Could a PC Recovery Boost AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Apple (NASDAQ:AAPL) stock buyers were fully in control during 2023’s first half. Moreover, today I’m unabashedly recommending holding your AAPL stock and collecting dividends (even if the yield is low) for the long term. Could a PC Recovery Boost AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Apple (NASDAQ:AAPL) stock buyers were fully in control during 2023’s first half. Moreover, today I’m unabashedly recommending holding your AAPL stock and collecting dividends (even if the yield is low) for the long term. Could a PC Recovery Boost AAPL Stock?
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Apple (NASDAQ:AAPL) stock buyers were fully in control during 2023’s first half. Moreover, today I’m unabashedly recommending holding your AAPL stock and collecting dividends (even if the yield is low) for the long term. Could a PC Recovery Boost AAPL Stock?
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14529.0
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2023-08-03 00:00:00 UTC
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Compared to Estimates, Apple (AAPL) Q3 Earnings: A Look at Key Metrics
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AAPL
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https://www.nasdaq.com/articles/compared-to-estimates-apple-aapl-q3-earnings%3A-a-look-at-key-metrics
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nan
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nan
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Apple (AAPL) reported $81.8 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.4%. EPS of $1.26 for the same period compares to $1.20 a year ago.
The reported revenue represents a surprise of +0.54% over the Zacks Consensus Estimate of $81.36 billion. With the consensus EPS estimate being $1.19, the EPS surprise was +5.88%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Apple performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Geographic Revenue- Greater China: $15.76 billion compared to the $14.67 billion average estimate based on two analysts. The reported number represents a change of +7.9% year over year.
Geographic Revenue- Europe: $20.21 billion compared to the $19.21 billion average estimate based on two analysts. The reported number represents a change of +4.8% year over year.
Geographic Revenue- Rest of Asia Pacific: $5.63 billion versus the two-analyst average estimate of $5.98 billion. The reported number represents a year-over-year change of -8.5%.
Geographic Revenue- Japan: $4.82 billion compared to the $5.57 billion average estimate based on two analysts. The reported number represents a change of -11.5% year over year.
Geographic Revenue- Americas: $35.38 billion compared to the $35.27 billion average estimate based on two analysts. The reported number represents a change of -5.6% year over year.
Revenue- Wearables, Home and Accessories: $8.28 billion versus $8.56 billion estimated by eight analysts on average.
Revenue- iPhone: $39.67 billion versus the eight-analyst average estimate of $39.96 billion. The reported number represents a year-over-year change of -2.5%.
Net Sales- Services: $21.21 billion versus the eight-analyst average estimate of $20.85 billion. The reported number represents a year-over-year change of +8.2%.
Revenue- Mac: $6.84 billion versus the eight-analyst average estimate of $6.41 billion. The reported number represents a year-over-year change of -7.3%.
Net Sales- Products: $60.58 billion versus $61.18 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -4.4% change.
Revenue- iPad: $5.79 billion versus the eight-analyst average estimate of $6.24 billion. The reported number represents a year-over-year change of -19.8%.
Gross margin- Services: $14.97 billion versus $14.81 billion estimated by six analysts on average.
View all Key Company Metrics for Apple here>>>
Shares of Apple have returned +0.7% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) reported $81.8 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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Apple (AAPL) reported $81.8 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Apple performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenue- Greater China: $15.76 billion compared to the $14.67 billion average estimate based on two analysts.
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Apple (AAPL) reported $81.8 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Apple performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenue- Greater China: $15.76 billion compared to the $14.67 billion average estimate based on two analysts.
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Apple (AAPL) reported $81.8 billion in revenue for the quarter ended June 2023, representing a year-over-year decline of 1.4%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The reported revenue represents a surprise of +0.54% over the Zacks Consensus Estimate of $81.36 billion.
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14530.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall St slides on rising bond yields, mixed earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-on-rising-bond-yields-mixed-earnings
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nan
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nan
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By Shubham Batra and Bansari Mayur Kamdar
Aug 3 (Reuters) - Wall Street's main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge.
Market participants have been keeping a close watch on data as they fear the Federal Reserve may stick to its rate hike path if it fails to bring inflation within its targeted range.
A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up, suggesting a long and slow road to low inflation.
The yield on the 10-year benchmark note rose to 4.169% after the data to a nine-month high, extending its climb from a day earlier when Fitch's downgrade of top-tier U.S. credit rating and strong private employment data supported its upward move.
"The Fed has singled out the jobs market as a potential inflationary threat, and until it shows some signs of deterioration, we're still looking at a 'higher for longer' outlook for interest rates," said Mike Loewengart, head of Model Portfolio Construction at Morgan Stanley Global Investment Office.
"That said, the brisk rise in treasury yields in recent days could pose headwinds for rate sensitive large cap growth names that have driven recent market gains."
Meanwhile, Richmond Federal Reserve President Thomas Barkin on Thursday said U.S. inflation remained too high, although recent readings indicated an easing of price pressures.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI was down 63.64 points, or 0.18%, at 35,218.88, the S&P 500 .SPX was down 15.69 points, or 0.35%, at 4,497.70, and the Nasdaq Composite .IXIC was down 30.67 points, or 0.22%, at 13,942.78.
Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close.
The megacaps slipped 0.6% and 0.3%, respectively, in early trading.
Of the two-thirds of the S&P 500 companies that have reported so far, 79.9% have topped earnings estimates, according to Refinitiv data on Wednesday.
QualcommQCOM.O tumbled 10.0% after a gloomy forecast signaled more pain for the largest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O shed 10.7% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
Meanwhile, ModernaMRNA.O gained 3.0% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.
Declining issues outnumbered advancers for a 2.72-to-1 ratio on the NYSE and a 1.44-to-1 ratio on the Nasdaq.
The S&P index recorded seven new 52-week highs and four new lows, while the Nasdaq recorded 29 new highs and 42 new lows.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. The S&P index recorded seven new 52-week highs and four new lows, while the Nasdaq recorded 29 new highs and 42 new lows.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes slipped on Thursday as a jump in bonds yields, a mixed bag of corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. Market participants have been keeping a close watch on data as they fear the Federal Reserve may stick to its rate hike path if it fails to bring inflation within its targeted range.
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14531.0
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2023-08-03 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Amazon, MGK, BIGT, QQQ and AAPU
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-amazon-mgk-bigt-qqq-and-aapu
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nan
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nan
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For Immediate Release
Chicago, IL – August 3, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Vanguard Mega Cap Growth ETF MGK, Roundhill BIG Tech ETF BIGT, Invesco QQQ Trust QQQ and Direxion Daily AAPL Bull 1.5X Shares AAPU.
Here are highlights from Wednesday’s Analyst Blog:
Apple, Amazon to Report Earnings: ETFs in Spotlight
The two of the world's largest corporations — Apple and Amazon — are in the spotlight as both are set to release earnings on Aug 3.
Apple stock has soared nearly 50% this year, recently breaching $3 trillion in market cap and is trading near an all-time high. Meanwhile, Amazon has climbed about 57% this year. The movement of the stocks over the next few days will depend on their earnings. Let's delve into them (read: Take a Bite of These ETFs on Historic Apple's $3T Valuation).
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Apple
Apple has an Earnings ESP of +0.66% and a Zacks Rank #3. Apple saw positive earnings estimate revision of a penny over the past 30 days for the fiscal third quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The iPhone maker has a strong track record of positive earnings surprise. It delivered an average earnings surprise of 2.65% in the trailing four quarters.
However, the Zacks Consensus Estimate indicates a modest year-over-year decrease of 0.8% for earnings and 2% for revenues (see: all the Technology ETFs here).
The stock belongs to a top-ranked Zacks Industry (top 43%) and has a solid Growth Score of B. The Zacks Consensus Estimate for the average target price is $197.22, with nearly 76% of the analysts giving a Strong Buy or a Buy rating ahead of the company's earnings.
Amazon
Amazon has an Earnings ESP of +2.99% and a Zacks Rank #3. The stock saw no earnings estimate revision over the past 30 days for the second quarter. The Zacks Consensus Estimate indicates whopping year-over-year earnings growth of 240% and substantial revenue growth of 8.5% for the to-be-reported quarter.
Additionally, Amazon's earnings surprise history is unimpressive, with a negative surprise of 11.30%, on average, in the last four quarters. The stock has a solid Growth Score of A but falls under a bottom-ranked Zacks industry (bottom 27%).
The Zacks Consensus Estimate for the average target price is $147.14, with nearly 97% of the analysts giving a Strong Buy or a Buy rating ahead of the company's earnings.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted five ETFs having the largest exposure to these giants.
Vanguard Mega Cap Growth ETF
Vanguard Mega Cap Growth ETF tracks the CRSP US Mega Cap Growth Index. It holds 96 securities in its basket, with the in-focus two firms collectively accounting for 22.5% of the total assets. It has key holdings in technology and consumer discretionary that account for double-digit exposure each (read: 5 Growth ETFs at New Highs to Start 2H).
Vanguard Mega Cap Growth ETF charges 7 basis points in annual fees and trades in a good volume of around 281,000 shares a day on average. The fund has AUM of $14.4 billion and a Zacks ETF Rank #2 (Buy).
Roundhill BIG Tech ETF
Roundhill BIG Tech ETF is the first-ever FAAMG ETF offering investors concentrated exposure to five mega-cap technology companies known as the "FAAMG" stocks. The three in-focus firms account for a combined 24% share in the basket.
Roundhill BIG Tech ETF has amassed $3.8 million in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 5,000 shares (read: Best & Worst ETF Areas of First Half 2023).
MicroSectors FANG+ ETN has accumulated $138.9 million in its asset base and charges 58 bps in annual fees. It trades in a moderate volume of 178,000 shares a day on average and has a Zacks ETF Rank #3 (Hold).
Invesco QQQ Trust
Invesco QQQ Trust provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Apple and Amazon take the combined 16.8% share in the basket.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $213.3 billion and an average daily volume of 49 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Single-Stock ETF
Unlike traditional ETFs, which typically track a broad index or sector, single-stock ETFs provide exposure to the performance of one specific company by using derivatives. This allows investors to gain exposure to a particular stock without having to buy the stock directly (read: Guide to Single-Stock ETF Investing).
Direxion Daily AAPL Bull 1.5X Shares
Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. AAPU has AUM of $39.7 million.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports
Roundhill BIG Tech ETF (BIGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Vanguard Mega Cap Growth ETF MGK, Roundhill BIG Tech ETF BIGT, Invesco QQQ Trust QQQ and Direxion Daily AAPL Bull 1.5X Shares AAPU. Direxion Daily AAPL Bull 1.5X Shares Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Vanguard Mega Cap Growth ETF MGK, Roundhill BIG Tech ETF BIGT, Invesco QQQ Trust QQQ and Direxion Daily AAPL Bull 1.5X Shares AAPU. Direxion Daily AAPL Bull 1.5X Shares Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here.
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Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Vanguard Mega Cap Growth ETF MGK, Roundhill BIG Tech ETF BIGT, Invesco QQQ Trust QQQ and Direxion Daily AAPL Bull 1.5X Shares AAPU. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Direxion Daily AAPL Bull 1.5X Shares Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares.
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Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Vanguard Mega Cap Growth ETF MGK, Roundhill BIG Tech ETF BIGT, Invesco QQQ Trust QQQ and Direxion Daily AAPL Bull 1.5X Shares AAPU. Direxion Daily AAPL Bull 1.5X Shares Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here.
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14532.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Shares stumble as US yields rise; sterling dips after BoE rate hike
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-stumble-as-us-yields-rise-sterling-dips-after-boe-rate-hike-0
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nan
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nan
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By Lawrence Delevingne and Tom Wilson
Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates.
Wall Street opened in negative territory, set for more pain after a wave of selling a day earlier.
The Dow Jones Industrial Average .DJI fell 0.35%, to 35,160, the S&P 500 .SPX lost 0.53%, to 4,489 and the Nasdaq Composite .IXIC dropped 0.52%, to 13,901.
Pressuring stocks were a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data and the announced refunding of the U.S. government's maturing debt.
U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.17%, while 30-year yields US30YT=RR rose to a fresh nine-month top, up 11.7 basis points to 4.282%.
That helped the U.S. dollar =USD stay buoyant near a one-month high of $102.68 against its major peers. The strong private payrolls data added to signs of U.S. labor market resilience, with the nonfarm payrolls report due on Friday. FRX/
Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July. The government also said that U.S. worker productivity rebounded sharply in the second quarter, another boost to the improving inflation outlook.
EURO SHARES DOWN
European shares.STOXX slipped 0.8%, bruised by disappointing earnings reports and elevated U.S. bond yields, on course for their third straight day of losses.
UK shares .FTSE, however, ticked higher after the Bank of England raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%. The index was last down 0.66%.
SterlingGBP=D3 extended losses after the BoE decision, falling as much as 0.7% to its lowest since June 30. It was last down 0.4% at $1.2658.
The BoE decision was closely watched for clues on how central banks globally will balance taming inflation and maintaining growth. The BoE's monetary policy committee (MPC) was split on the size of the rate hike.
"This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
APPLE AND AMAZON AHEAD
Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified.
Apple is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow.
Amazon, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.36%, extending losses after a drop of 2.3% a day earlier.
Still, Chinese blue chips .CSI300 rose 0.9% after a private survey showed China's services activity expanded at a faster place in July.
Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
COMMODITIES: OIL UP, GOLD STEADY
Oil gained on Thursday after dropping sharply from more than three-month highs in the previous session after the Saudi state news agency SPA said on Thursday that the country will extend a voluntary oil output cut of 1 million barrels per day for another month to include September.
U.S. crude CLc1 rose 0.79% to $80.12 per barrel and Brent LCOc1 was at $83.75, up 0.66% on the day.
Gold was steady on Thursday after data showing a deterioration in euro zone business activity triggered some safe-haven inflows, but bullion held near three-week lows on a stronger dollar and higher bond yields.
Spot gold XAU= was little changed at around $1,932 an ounce.
Dollar v2 030823 https://tmsnrt.rs/3QqYQi4
(Reporting by Lawrence Delevingne in Boston, Tom Wilson in London and Stella Qiu in Sydney; editing by Jonathan Oatis)
((lawrence.delevingne@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. FRX/ Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July. "This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. UK shares .FTSE, however, ticked higher after the Bank of England raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. Oil gained on Thursday after dropping sharply from more than three-month highs in the previous session after the Saudi state news agency SPA said on Thursday that the country will extend a voluntary oil output cut of 1 million barrels per day for another month to include September.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. By Lawrence Delevingne and Tom Wilson Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bond yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. FRX/ Investors also digested new U.S. Labor Department data on Thursday showing that the number of Americans filing for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July.
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14533.0
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2023-08-03 00:00:00 UTC
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Apple (AAPL) Q3 2023 Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-q3-2023-earnings-what-to-expect
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nan
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nan
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A
pple (AAPL) stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. Its shares have returned more than 30% just in the past six months, pushing the tech giant past a $3 trillion valuation. The market is clearly bullish on the company’s growth potential.
Investors want to know whether it is time to take profits or if the momentum can continue. Investors are also excited about prospects for the new iPhone 15 which is scheduled to launch in September. How many new phones will Apple sell and how will it guide for the holiday quarter? These answers will be more clear when the tech giant reports third quarter fiscal 2023 earnings results after the closing bell Thursday. However, for this quarter, it’s not going to be just about the iPhone.
Goldman Sachs analyst Michael Ng expects Apple to surpass earnings estimates, led by strength in its Mac and Services segments. Ng is expecting Services revenue of $21.8 billion to rise 11% year over year, clearing Wall Street forecasts of $20.7 billion. “Upside to our Services forecast reflects the inflection in App Store spending, per Sensor Tower, strong growth in advertising, continued content investments in AppleTV, and a more benign forex headwind relative to company guidance of -400 bps," Ng wrote in an investor note.
The market will also look for additional details about the its long-awaited mixed reality headset, dubbed Vision Pro, which was unveiled at the company's Worldwide Developers Conference. Wall Street analysts were impressed, including Credit Suisse analyst Shannon Cross who said the device "solves many of the technical limitations.” At a hefty price tag of $3,499, the questions becomes how much revenue and profits can Apple expect upon launch. This and other topics will be front and center on the conference call with analysts on Thursday.
In the three months that ended June, Wall Street expect the Cupertino, Calif.-based tech giant to earn $1.19 per share on revenue of $81.63 billion. This compares to the year-ago quarter when earnings came to $1.20 per share on revenue of $82.96 billion. For the full year, ending in October, earnings are expected to decline 2.2% year over year to $5.98 per share, while full-year revenue of $384.99 billion will decline 2.4% year over year.
The tech giant has benefited from, among other things, the re-opening of China, its second-largest market. Despite the overall smartphone market shrinking amid an economic slowdown, recent reports suggests Apple is still gaining share in the Chinese smartphone market during the second-quarter, with iPhone sales rising 6.1%.
Apple’s overall Chinese smartphone market shares stands at 15.3%, according to research firm IDC, which noted a 2.1% decline in Q2 smartphone shipments in China. It’s notable that Apple still experienced growth. Could that be a sign of things to come during the quarterly results given that iPhone sales generate a sizable portion of revenues? This was the theme in the second quarter, with Apple beating on both the top and bottom lines, thanks to 1.5% rise in iPhone sales to $51.33 billion.
With Q2 revenue of $94.84 billion, down 3% year over year, this means iPhone sales accounted for 54% of the overall total. This was Apple's first quarterly revenue drop in almost four years. Apple earned an adjusted EPS of $1.52 which was 8 cents better than estimates. Services revenue, which includes subscriptions to products such as Apple TV+, iCloud storage and Apple Music, rose 5.5% year over year to $20.91 billion, accounting for 22% of revenue.
On Thursday investors will be watching closely to see whether (or how) inflation might have impacted spending on Apple’s pricey hardware and how the company guides for the next quarter and full year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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pple (AAPL) stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. Goldman Sachs analyst Michael Ng expects Apple to surpass earnings estimates, led by strength in its Mac and Services segments. “Upside to our Services forecast reflects the inflection in App Store spending, per Sensor Tower, strong growth in advertising, continued content investments in AppleTV, and a more benign forex headwind relative to company guidance of -400 bps," Ng wrote in an investor note.
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pple (AAPL) stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. Ng is expecting Services revenue of $21.8 billion to rise 11% year over year, clearing Wall Street forecasts of $20.7 billion. In the three months that ended June, Wall Street expect the Cupertino, Calif.-based tech giant to earn $1.19 per share on revenue of $81.63 billion.
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pple (AAPL) stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. Ng is expecting Services revenue of $21.8 billion to rise 11% year over year, clearing Wall Street forecasts of $20.7 billion. For the full year, ending in October, earnings are expected to decline 2.2% year over year to $5.98 per share, while full-year revenue of $384.99 billion will decline 2.4% year over year.
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pple (AAPL) stock has gone on an impressive run, rising some 50% year to date, almost three times the 18% gain in the S&P 500 index. However, for this quarter, it’s not going to be just about the iPhone. Ng is expecting Services revenue of $21.8 billion to rise 11% year over year, clearing Wall Street forecasts of $20.7 billion.
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14534.0
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2023-08-03 00:00:00 UTC
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Jobs, Productivity Illustrate Strong Economy; WBD, SHAK Report
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AAPL
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https://www.nasdaq.com/articles/jobs-productivity-illustrate-strong-economy-wbd-shak-report
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nan
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nan
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This Thursday morning, Initial Jobless Claims came in exactly as expected at 227K, remaining in the low-cycle range on the past few weeks, and up 6000 new claims from the previous week’s unrevised 221K, which was the cycle low. Continuing Claims, reported a week in arrears from new claims, are also near cycle lows: 1.700 million is up from the 1.68 million longer-term jobless claims reported the previous week, which remains the cycle low, and well off the 1.8+ million pace we had been on back in April of this year.
This is more strong jobs data ahead of tomorrow’s Employment Situation report from the U.S. government. In fact, thus far this week has shown nothing but a labor force apparently immune to outside forces working against the economy. Tuesday’s JOLTS report saw a continuing meltdown in overall job openings, -34K for June, while yesterday’s private-sector jobs release from ADP ADP showed another big upside surprise in jobs filled, with Leisure & Hospitality bringing in 200K new jobs last month all by itself.
Q2 Productivity jumped above expectations this morning, with the non-farm headline +3.7%; +2.3% had been expected, following -2.1% reported for Q1. This figure is the highest we’ve seen since Q3 of 2020, when the bump off a Covid wave brought us +6.5%. Also, Unit Labor Costs came in lower than expected — more good news — at +1.6%, the lowest we’ve seen since Q4 of last year. Basically, if productivity is high but labor costs are low, that’s a recipe for a very strong economy.
Before today’s opening bell, Warner Brothers Discovery WBD shares had been up roughly +6% even though the company missed expectations on both top and bottom lines, but pre-market trading has now brought the stock down to yesterday’s close. Negative earnings of -44 cents per share missed the -39 cents in the Zacks consensus, while revenues of $10.34 billion missed the $10.47 billion expected. The positive take seems to have come from its debt load relief projected: after already paying down $9 billion in debt since the two companies merged, WBD now has a tender offer to pay up to $2.7 billion in additional debt.
Shake Shack SHAK also reported Q2 earnings before today’s regular trading session, doubling expectations on the bottom line with earnings of 18 cents per share, while revenues of $271.8 million missed the Zacks consensus by -0.95% (though notably above the year-ago $230.75 million). Shares are trading down -4% this morning, but consider this stock has grown by leaps and bounds, +80% year to date, more than 4x the S&P 500. For more on SHAK's earnings, click here.
After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Estimates for Apple is for slightly negative year-over-year comparisons on both earnings and overall sales, while Amazon looks for super +240% earnings growth in its Q2, with revenues expected up +8.5%. Both companies are up strong year to date — Apple +53% and Amazon +49% — and carry a Zacks Rank #3 (Hold) into the earnings releases.
Questions or comments about this article and/or author? Click here>>
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. Before today’s opening bell, Warner Brothers Discovery WBD shares had been up roughly +6% even though the company missed expectations on both top and bottom lines, but pre-market trading has now brought the stock down to yesterday’s close.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Shake Shack SHAK also reported Q2 earnings before today’s regular trading session, doubling expectations on the bottom line with earnings of 18 cents per share, while revenues of $271.8 million missed the Zacks consensus by -0.95% (though notably above the year-ago $230.75 million).
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Shake Shack SHAK also reported Q2 earnings before today’s regular trading session, doubling expectations on the bottom line with earnings of 18 cents per share, while revenues of $271.8 million missed the Zacks consensus by -0.95% (though notably above the year-ago $230.75 million).
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After today’s close, Apple AAPL and Amazon AMZN close out the so-called FAANG earnings reports for the quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Warner Bros. Basically, if productivity is high but labor costs are low, that’s a recipe for a very strong economy.
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14535.0
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2023-08-03 00:00:00 UTC
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Billionaire Ken Fisher Calls Last 9 Months a "Midterm Miracle." Here's Where He Thinks the Stock Market Goes From Here
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AAPL
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https://www.nasdaq.com/articles/billionaire-ken-fisher-calls-last-9-months-a-midterm-miracle.-heres-where-he-thinks-the
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Ken Fisher knows a thing or two about investing. His father, Philip Fisher, wrote the classic book Common Stocks and Uncommon Profits. He has also written several investing bestsellers of his own. His Fisher Investments firm ranks as one of the largest money managers in the country. Fisher's current net worth stands at $7.2 billion, according to Forbes.
So what is Fisher's opinion about the stock market these days? He recently spoke on a YouTube video in which he called the last nine months a "midterm miracle." Here's where Fisher thinks the stock market goes from here.
Image source: Getty Images.
The magic of midterms
Importantly, Fisher didn't just recently identify the midterm miracle. He predicted one was on the way over a year ago. At the time, the S&P 500 was down close to 18%.
Fisher wrote back then that the stock market tends to soar after the U.S. midterm elections. He noted that since 1925 (when reliable data was first available), the country had held 24 midterm elections. In the fourth quarter of those years, the stock market delivered positive returns 83% of the time. The numbers look even better for the first two quarters of the following years, with 88% positive returns.
This great trend has obviously continued. Since the midterm elections on Nov. 8, the S&P 500 has vaulted 18% higher and the Nasdaq Composite is nearly 32% higher. Fisher stated in his recent YouTube video that the market has been "picture perfect."
What's next?
The obvious question for investors is: What happens after the midterm miracle? Fisher has some good news on that front, too.
He acknowledged that the second half of the year after the midterm miracle period often isn't as profitable as the preceding three quarters. However, he added that this is still usually a profitable period for the stock market.
Fisher observed that there hasn't been a negative year for the S&P 500 during the third year of a president's term since 1939. And in that year, the major index fell less than 1% as the U.S. faced the start of World War II.
Some people continue to be skeptical that a new bull market is beginning now. Fisher, however, thinks that's a positive sign. He argued that stocks are in a new bull market, but that the market has behaved "in ways a lot of people don't understand."
Should you buy Fisher's top five?
Fisher believes that "the really high-quality growth stocks" should perform well in the coming months. In particular, he predicted that the big names that are "high-quality mega-tech" growth stocks will continue to lead the market.
Unsurprisingly, Fisher Asset Management's portfolio prominently features such high-profile stocks. Its top five holdings are:
STOCK PERCENT OF PORTFOLIO
Apple (NASDAQ: AAPL) 5.22%
Microsoft (NASDAQ: MSFT) 4.27%
Vanguard Intermediate-Term Corporate Bond Index Fund ETF (NASDAQ: VCIT) 2.88%
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 2.65%
Amazon (NASDAQ: AMZN) 2.59%
Data source: Fisher Asset Management 13F filing.
Are Fisher's top five stocks good picks right now? I think so -- especially if the billionaire investor is right about the stock market continuing to rise. Apple, Microsoft, Alphabet, and Amazon together make up close to 21% of the S&P 500. If these stocks don't perform well, it's unlikely that the index will.
The only outlier in Fisher's top five is the Vanguard Intermediate-Term Corporate Bond Index Fund ETF. I suspect that it will deliver positive returns as well. With the economic outlook improving, the Federal Reserve seems unlikely to raise interest rates much more, if at all. That should be favorable for the bond market.
What if the bull market Fisher believes we're in evaporates? Long-term investors should still be fine buying Fisher's top stocks. Apple, Microsoft, Alphabet, and Amazon have great long-term growth prospects. And it's over the long term, rather than just during a nine-month period, where the stock market works its biggest miracles.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) 5.22% Microsoft (NASDAQ: MSFT) 4.27% Vanguard Intermediate-Term Corporate Bond Index Fund ETF (NASDAQ: VCIT) 2.88% Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 2.65% Amazon (NASDAQ: AMZN) 2.59% Data source: Fisher Asset Management 13F filing. His father, Philip Fisher, wrote the classic book Common Stocks and Uncommon Profits. The only outlier in Fisher's top five is the Vanguard Intermediate-Term Corporate Bond Index Fund ETF.
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Apple (NASDAQ: AAPL) 5.22% Microsoft (NASDAQ: MSFT) 4.27% Vanguard Intermediate-Term Corporate Bond Index Fund ETF (NASDAQ: VCIT) 2.88% Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 2.65% Amazon (NASDAQ: AMZN) 2.59% Data source: Fisher Asset Management 13F filing. The only outlier in Fisher's top five is the Vanguard Intermediate-Term Corporate Bond Index Fund ETF. Apple, Microsoft, Alphabet, and Amazon have great long-term growth prospects.
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Apple (NASDAQ: AAPL) 5.22% Microsoft (NASDAQ: MSFT) 4.27% Vanguard Intermediate-Term Corporate Bond Index Fund ETF (NASDAQ: VCIT) 2.88% Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 2.65% Amazon (NASDAQ: AMZN) 2.59% Data source: Fisher Asset Management 13F filing. Here's where Fisher thinks the stock market goes from here. Fisher wrote back then that the stock market tends to soar after the U.S. midterm elections.
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Apple (NASDAQ: AAPL) 5.22% Microsoft (NASDAQ: MSFT) 4.27% Vanguard Intermediate-Term Corporate Bond Index Fund ETF (NASDAQ: VCIT) 2.88% Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 2.65% Amazon (NASDAQ: AMZN) 2.59% Data source: Fisher Asset Management 13F filing. His Fisher Investments firm ranks as one of the largest money managers in the country. Here's where Fisher thinks the stock market goes from here.
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14536.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall St set to open lower as Treasury yields hit nine-month high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-as-treasury-yields-hit-nine-month-high
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nan
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By Shubham Batra and Bansari Mayur Kamdar
Aug 3 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a jump in bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares.
Most megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.3% and 0.7% in premarket trading, as yields on the 10-year note US10YT=RR rose to a nine-month high. US/
Separately, a report showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
The yield on the 10-year benchmark note rose 1.2 basis points to 4.158% after the jobless claims data. Treasury yields have been rising since Wednesday after strong private employment data and the announced refunding of the U.S. government's maturing debt.
"I would take that (jobless claims) data as a non-event, it is right on target," said Andre Bakhos, managing member at Ingenium Analytics.
"What is a greater concern and that has created a reverberation globally is the Fitch downgrade. There's quite a bit of concern on how things have gotten out of control in the near term."
Meanwhile, Richmond Federal Reserve President Thomas Barkin on Thursday said U.S. inflation remains too high, although recent readings showing price pressures have eased notably were welcome.
Stocks closed lower on Wednesday as investors took the opportunity to book profits on five months of gains after Fitch downgraded the United States top-tier rating, citing fiscal deterioration and governance erosion.
Traders now await the U.S. non-manufacturing Purchasing Managers' Index (PMI) and June factory orders to assess the strength of the U.S. economy.
At 8:50 a.m. ET, Dow e-minis 1YMcv1 were down 62 points, or 0.18%, S&P 500 e-minis EScv1 were down 13.75 points, or 0.3%, and Nasdaq 100 e-minis NQcv1 were down 82.25 points, or 0.53%.
Earnings are also in focus as Apple and Amazon.com AMZN.O are due to report quarterly results after market close.
Of the two-thirds of the S&P 500 companies that have reported so far, 79.9% have topped earnings estimates, according to Refinitiv data on Wednesday.
QualcommQCOM.O tumbled 9.7% in trading before the bell as the San Diego, California-based company's fourth-quarter sales forecast fell below market expectations.
The company said it would likely cut jobs as consumer spending on gadgets such as smartphones remained stubbornly weak amid slowing global economic growth.
Peers Nvidia NVDA.O and Intel INTC.O eased nearly 1% each.
PayPal HoldingsPYPL.O shed 8.9% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
DoorDashDASH.N rose 0.7% after the delivery firm raised its annual core profit forecast for a second time and posted an upbeat quarterly revenue as groceries and food orders jumped.
Meanwhile, ModernaMRNA.O gained 1.2% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Most megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.3% and 0.7% in premarket trading, as yields on the 10-year note US10YT=RR rose to a nine-month high. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a jump in bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares. US/ Separately, a report showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Most megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.3% and 0.7% in premarket trading, as yields on the 10-year note US10YT=RR rose to a nine-month high. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a jump in bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares. Stocks closed lower on Wednesday as investors took the opportunity to book profits on five months of gains after Fitch downgraded the United States top-tier rating, citing fiscal deterioration and governance erosion.
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Most megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.3% and 0.7% in premarket trading, as yields on the 10-year note US10YT=RR rose to a nine-month high. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as a jump in bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares. US/ Separately, a report showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
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Most megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.O and Microsoft MSFT.O slipped between 0.3% and 0.7% in premarket trading, as yields on the 10-year note US10YT=RR rose to a nine-month high. The yield on the 10-year benchmark note rose 1.2 basis points to 4.158% after the jobless claims data. Of the two-thirds of the S&P 500 companies that have reported so far, 79.9% have topped earnings estimates, according to Refinitiv data on Wednesday.
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14537.0
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2023-08-03 00:00:00 UTC
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5 Reasons US Equity Markets Will Digest Gains Further
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AAPL
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https://www.nasdaq.com/articles/5-reasons-us-equity-markets-will-digest-gains-further
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nan
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The year-to-date returns for the major US Market Index ETFs are as follows:
Nasdaq 100 ETF (QQQ) +44.51%
S&P 500 Index ETF (SPY) +20.27%
Russell 2000 Index ETF (IWM) +12.56%
Dow Jones Industrial Average (DIA) +6.53%
Few investors likely predicted those returns late last year when inflation hit levels not seen in 40-years, geopolitical fears escalated between Russia and Ukraine, and recession fears loomed. However, as is often the case on Wall Street, the stock market is the master manipulator. Whether investors caught the move or not, each is wondering what happens next. Below are five reasons stocks need to digest:
Fitch Downgrade
US debt was downgraded for the first (and only) time since 2011. Tuesday night, Fitch Rating Agency downgraded US debt from the highest possible rating of AAA+ to AA.
While investors only have one data point to go off, in early August of 2011, S&P announced the company’s decision to downgrade US sovereign debt for the first time ever. Over the next few weeks, the S&P 500 corrected nearly 20%
Image Source: Zacks Investment Research
Wednesday’s 2% Nasdaq decline was the worst hit since February. Though such a rapid decline as 2011 is unlikely, investors should view Wednesday’s action as a warning shot in the short term.
Gravity
Driven by big-tech and Artificial Intelligence oriented stocks like Microsoft (MSFT), Nvidia (NVDA), and Alphabet (GOOGL), The Nasdaq 100 has gone five months without touching the 50-day moving average.
Image Source: TradingView
Remember, even during the strongest bull markets, valuations begin to matter, profit taking occurs, and markets must recalibrate by correcting through time or price. Furthermore, technicians realize that the 50-day moving average tends to act like a bungy cord – when equity indexes get stretched too far away, a mean-reversion is on the horizon.
Overheated Sentiment
Whether you use the AAII (American Association of Individual Investors) Sentiment Survey, NAAIM Exposure Index (National Association of Active Investment Managers), or the CNN Fear & Greed Index, sentiment is running hot. For example, until Wednesday, the CNN Fear/Greed Index was at “Extreme Greed” levels for over a month.
Image Source: CNN
As General George S. Patton once stated, “If everyone is thinking alike, then someone isn’t thinking”.
Seasonality
Seasonality refers to the tendency for equities to exhibit recurring patterns and behaviors at specific times of the year. Over the past ten years, August and September have been amongst the worst performing months. The magnificent run that equities have had, couples with weaker seasonality trends, should lead us to a broader pullback sooner rather than later.
Punishing Stocks Post Earnings
Several stocks got punished by double-digits after releasing earnings this week including SolarEdge Technologies (SEDG), Scotts Miracle-Gro (SMG), and Generac (GNRC). The poor action in these stocks indicates a character change in the market from previous weeks.
What Should Investors Do?
· Build a watchlist using relative strength.In other words, in a sea of red, look for green. As the S&P 500 notched new lows in late 2022, stocks like e.l.f Beauty (ELF) and Rambus (RMBS) were notching 52-week highs.
· Don’t overtrade. In choppy, light summer trading, it can be easy to suffer from “death by a thousand cuts.”
· Wait for the dust to settle.You don’t need to be the first to buy the dip. Wait for proof and interpret, don’t predict. Look for winning stocks like Apple (AAPL) and Microsoft (MSFT) to have a higher-time frame rotation (take out a previous weekly high).
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Rambus, Inc. (RMBS) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
Generac Holdings Inc. (GNRC) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Look for winning stocks like Apple (AAPL) and Microsoft (MSFT) to have a higher-time frame rotation (take out a previous weekly high). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Generac Holdings Inc. (GNRC) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report e.l.f. Gravity Driven by big-tech and Artificial Intelligence oriented stocks like Microsoft (MSFT), Nvidia (NVDA), and Alphabet (GOOGL), The Nasdaq 100 has gone five months without touching the 50-day moving average.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Generac Holdings Inc. (GNRC) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report e.l.f. Look for winning stocks like Apple (AAPL) and Microsoft (MSFT) to have a higher-time frame rotation (take out a previous weekly high). The year-to-date returns for the major US Market Index ETFs are as follows: Nasdaq 100 ETF (QQQ) +44.51% S&P 500 Index ETF (SPY) +20.27% Russell 2000 Index ETF (IWM) +12.56% Dow Jones Industrial Average (DIA) +6.53% Few investors likely predicted those returns late last year when inflation hit levels not seen in 40-years, geopolitical fears escalated between Russia and Ukraine, and recession fears loomed.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Generac Holdings Inc. (GNRC) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report e.l.f. Look for winning stocks like Apple (AAPL) and Microsoft (MSFT) to have a higher-time frame rotation (take out a previous weekly high). The year-to-date returns for the major US Market Index ETFs are as follows: Nasdaq 100 ETF (QQQ) +44.51% S&P 500 Index ETF (SPY) +20.27% Russell 2000 Index ETF (IWM) +12.56% Dow Jones Industrial Average (DIA) +6.53% Few investors likely predicted those returns late last year when inflation hit levels not seen in 40-years, geopolitical fears escalated between Russia and Ukraine, and recession fears loomed.
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Look for winning stocks like Apple (AAPL) and Microsoft (MSFT) to have a higher-time frame rotation (take out a previous weekly high). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Scotts Miracle-Gro Company (SMG) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Generac Holdings Inc. (GNRC) : Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report e.l.f. Image Source: Zacks Investment Research Wednesday’s 2% Nasdaq decline was the worst hit since February.
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14538.0
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2023-08-03 00:00:00 UTC
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Guru Fundamental Report for AAPL - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-57
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14539.0
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2023-08-03 00:00:00 UTC
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These Hot ETFs Could Heat Up More in August
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AAPL
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https://www.nasdaq.com/articles/these-hot-etfs-could-heat-up-more-in-august
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nan
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nan
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The summer months sit squarely in the weaker six-month period for stocks, but that seasonality doesn’t appear to be affecting stocks, as broad market benchmarks are currently on multi-month winning streaks.
That includes the Nasdaq-100 Index (NDX), which as of the end of July, is higher by 44% year-to-date. Obviously, that’s excellent news for the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) -- the marquee exchange traded funds tracking the Nasdaq-100.
Clearly, those ETFs are on scintillating paces this year, supported in large part by the strength of the magnificent seven. Conversely, August historically isn’t the best month of the year for stocks. It’s not the worst, either, but that “split decision” could be confusing for newer investors. Good news: History bodes well for QQQ and QQQM in August.
Some NDX Stocks Thrive in August
Several QQQ and QQQM member firms, including some that have already notched big gains this year, rank among the best-performing S&P 500 stocks over the past decade. Among large QQQ/QQQM components, Nvidia (NASDAQ: NVDA) averaged an August gain of 7.55% over the past decade, according to Schaeffer’s Investment Research.
Even with Nasdaq’s recent special rebalance of NDX, Nvidia remains the third-largest tech holding in QQQ and QQQM at a weight of 4.35%. While healthcare is often overshadowed in relation to QQQ and QQQM, the sector accounts for about 7% of the ETFs’ rosters. Dexcom (NASDAQ: DXCM), one of the ETFs’ healthcare holdings, is also one of the top-performing S&P 500 stocks in the eighth month of the year, averaging a stellar return of 12.52%, noted Schaeffer's.
Regarding more familiar QQQ/QQQM components and August history, Facebook parent Meta Platforms (NASDAQ: META) -- hot in its own right this year -- posted an average August gain of 3.56% over the past decade.
QQQ and QQQM allocate less than 5% of their weights to the industrial sector, but one of the stocks hailing from that group that also resides in the Invesco ETFs is Cintas (NASDAQ: CTAS). That stock, which accounts for 0.41% of the ETFs’ portfolios, averaged an August gain of 2.73%.
In potentially more good news for QQQ and QQQM, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which combine for 21% of the funds’ rosters, are also among the S&P 500 leaders in August. So are Netflix (NASDAQ: NFLX) and Synopsys (NASDAQ: SNPS), both of which are QQQ/QQQM holdings.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In potentially more good news for QQQ and QQQM, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which combine for 21% of the funds’ rosters, are also among the S&P 500 leaders in August. Among large QQQ/QQQM components, Nvidia (NASDAQ: NVDA) averaged an August gain of 7.55% over the past decade, according to Schaeffer’s Investment Research. Dexcom (NASDAQ: DXCM), one of the ETFs’ healthcare holdings, is also one of the top-performing S&P 500 stocks in the eighth month of the year, averaging a stellar return of 12.52%, noted Schaeffer's.
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In potentially more good news for QQQ and QQQM, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which combine for 21% of the funds’ rosters, are also among the S&P 500 leaders in August. Obviously, that’s excellent news for the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) -- the marquee exchange traded funds tracking the Nasdaq-100. Among large QQQ/QQQM components, Nvidia (NASDAQ: NVDA) averaged an August gain of 7.55% over the past decade, according to Schaeffer’s Investment Research.
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In potentially more good news for QQQ and QQQM, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which combine for 21% of the funds’ rosters, are also among the S&P 500 leaders in August. Obviously, that’s excellent news for the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) -- the marquee exchange traded funds tracking the Nasdaq-100. Some NDX Stocks Thrive in August Several QQQ and QQQM member firms, including some that have already notched big gains this year, rank among the best-performing S&P 500 stocks over the past decade.
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In potentially more good news for QQQ and QQQM, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which combine for 21% of the funds’ rosters, are also among the S&P 500 leaders in August. Conversely, August historically isn’t the best month of the year for stocks. Some NDX Stocks Thrive in August Several QQQ and QQQM member firms, including some that have already notched big gains this year, rank among the best-performing S&P 500 stocks over the past decade.
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14540.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Shares stumble as US yields rise; sterling dips after BoE rate hike
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-stumble-as-us-yields-rise-sterling-dips-after-boe-rate-hike
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nan
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nan
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Updates prices as of 1140 GMT, adds comment
Euro STOXX down 0.7%
BoE hikes rate 25 bps
Sterling extends losses
Asia shares extend risk-off for second day, dollar holds gains
Wall Street set for losses
Apple, Amazon results on Thursday
10-yr, 30-year Treasury yields hit new 9-month highs
By Tom Wilson
LONDON, Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates.
European shares.STOXX slipped 0.6%, bruised by disappointing earnings reports and elevated U.S. bond yields, on course for their third straight day of losses.
UK shares .FTSE, however, ticked higher after the Bank of England raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%. The index was last down 0.7%.
SterlingGBP=D3 extended losses after the BoE decision, falling as much as 0.7% to its lowest since June 30. It was last down 0.2% at $1.2680.
The BoE decision was closely watched for clues on how central banks globally will balance taming inflation and maintaining growth. The BoE's monetary policy committee (MPC) was split on the size of the rate hike.
"This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
Wall Street was set to open in negative territory, too.
S&P 500 futures ESc1 and Nasdaq futures NQc1 were down 0.2% and 0.4% respectively, set for more pain after a wave of selling a day earlier.
Pressuring stocks were a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data and the announced refunding of the U.S. government's maturing debt.
U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.17%, while 30-year yields US30YT=RR rose to a fresh nine-month top.
APPLE AND AMAZON
Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified.
Amazon, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%, extending losses after a drop of 2.3% a day earlier.
Still, Chinese blue chips .CSI300 rose 0.9% and Hong Kong's Hang Seng index .HSI added 0.3% after a private survey showed China's services activity expanded at a faster place in July.
Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Tom Wilson in London and Stella Qiu in Sydney; Editing by Mark Potter and Bernadette Baum)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. Updates prices as of 1140 GMT, adds comment Euro STOXX down 0.7% BoE hikes rate 25 bps Sterling extends losses Asia shares extend risk-off for second day, dollar holds gains Wall Street set for losses Apple, Amazon results on Thursday 10-yr, 30-year Treasury yields hit new 9-month highs By Tom Wilson LONDON, Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. "This split does leave a sense that the MPC itself is uncertain over what to do," said Stuart Cole, chief macro strategist at Equiti Capital, "and indeed of how much of a danger the UK economy is at risk of being tipped into recession as monetary policy is tightened ever further."
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. Updates prices as of 1140 GMT, adds comment Euro STOXX down 0.7% BoE hikes rate 25 bps Sterling extends losses Asia shares extend risk-off for second day, dollar holds gains Wall Street set for losses Apple, Amazon results on Thursday 10-yr, 30-year Treasury yields hit new 9-month highs By Tom Wilson LONDON, Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. The BoE's monetary policy committee (MPC) was split on the size of the rate hike.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. Updates prices as of 1140 GMT, adds comment Euro STOXX down 0.7% BoE hikes rate 25 bps Sterling extends losses Asia shares extend risk-off for second day, dollar holds gains Wall Street set for losses Apple, Amazon results on Thursday 10-yr, 30-year Treasury yields hit new 9-month highs By Tom Wilson LONDON, Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%, extending losses after a drop of 2.3% a day earlier.
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Investors were awaiting earnings results from Apple AAPL.O and Amazon AMZN.O that may give clues on whether the tech sector's sky-high valuations are justified. Updates prices as of 1140 GMT, adds comment Euro STOXX down 0.7% BoE hikes rate 25 bps Sterling extends losses Asia shares extend risk-off for second day, dollar holds gains Wall Street set for losses Apple, Amazon results on Thursday 10-yr, 30-year Treasury yields hit new 9-month highs By Tom Wilson LONDON, Aug 3 (Reuters) - World share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, with the dollar shrugging off a U.S. credit downgrade to hit a four-week high and the British pound dipping after the Bank of England raised interest rates. SterlingGBP=D3 extended losses after the BoE decision, falling as much as 0.7% to its lowest since June 30.
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14541.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Wall St futures slip as Treasury yields hit nine-month high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-slip-as-treasury-yields-hit-nine-month-high
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nan
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nan
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By Shubham Batra and Bansari Mayur Kamdar
Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares and set Wall Street up for another round of selloff.
Fitch's action hit the appetite for risky assets on Wednesday, dragging Wall Street sharply lower as investors took the opportunity to book profits on five months of gains.
Megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.2% and 0.4% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November.
"US equities, especially cyclicals, look vulnerable to further downside after a strong run - either on disappointment in the data relative to lofty expectations or on renewed hawkishness from the Fed," Karen Reichgott Fishman, senior strategist at Goldman Sachs, wrote in a note.
Traders will closely monitor initial jobless claims for the week ended July 29 to assess the labor market's strength after a private payrolls report on Wednesday showed continued resilience. The report is due at 8:30 a.m. ET.
U.S. non-manufacturing Purchasing Managers' Index (PMI), June factory orders and comments from Richmond Federal Reserve President Thomas Barkin are also on the radar.
At 07:00 a.m. ET, Dow e-minis 1YMcv1 were down 54 points, or 0.15%, S&P 500 e-minis EScv1 were down 10 points, or 0.22%, and Nasdaq 100 e-minis NQcv1 were down 52.25 points, or 0.34%.
Earnings are also in focus as Apple and Amazon.com AMZN.O are due to report quarterly results after market close.
Of the two-thirds of the S&P 500 companies that have reported so far, 79.9% have topped earnings estimates, according to Refinitiv data on Wednesday.
QualcommQCOM.O tumbled 8.4% in trading before the bell as the San Diego, California-based company's fourth-quarter sales forecast fell below market expectations.
The company said it would likely cut jobs as consumer spending on gadgets such as smartphones remained stubbornly weak amid slowing global economic growth.
Peers Nvidia NVDA.O and Intel INTC.O eased 0.5% each.
PayPal HoldingsPYPL.O shed 7.8% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
DoorDashDASH.N rose 5.2% after the delivery firm raised its annual core profit forecast for a second time and posted an upbeat quarterly revenue as groceries and food orders jumped.
Meanwhile, ModernaMRNA.Ogained 3.3% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.2% and 0.4% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares and set Wall Street up for another round of selloff. "US equities, especially cyclicals, look vulnerable to further downside after a strong run - either on disappointment in the data relative to lofty expectations or on renewed hawkishness from the Fed," Karen Reichgott Fishman, senior strategist at Goldman Sachs, wrote in a note.
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Megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.2% and 0.4% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares and set Wall Street up for another round of selloff. QualcommQCOM.O tumbled 8.4% in trading before the bell as the San Diego, California-based company's fourth-quarter sales forecast fell below market expectations.
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Megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.2% and 0.4% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares and set Wall Street up for another round of selloff. Traders will closely monitor initial jobless claims for the week ended July 29 to assess the labor market's strength after a private payrolls report on Wednesday showed continued resilience.
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Megacap growth and technology stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.2% and 0.4% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive shares and set Wall Street up for another round of selloff. Earnings are also in focus as Apple and Amazon.com AMZN.O are due to report quarterly results after market close.
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14542.0
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2023-08-03 00:00:00 UTC
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AAPL Earnings Today: Here’s What to Expect from the iPhone Maker in Fiscal Q3
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AAPL
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https://www.nasdaq.com/articles/aapl-earnings-today%3A-heres-what-to-expect-from-the-iphone-maker-in-fiscal-q3
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nan
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nan
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Tech behemoth Apple (NASDAQ:AAPL) is scheduled to announce its fiscal third-quarter results after the market close on Thursday, August 3. The iPhone maker is facing a slowdown in the smartphone market and any unfavorable commentary about the outlook for the fiscal fourth quarter could weigh on the stock.
Fiscal Q3 Expectations from Apple
Apple delivered better-than-anticipated fiscal second-quarter (March quarter) results, even as overall revenue declined 2.5% year-over-year to $94.8 billion. The company’s earnings per share (EPS) remained flat at $1.52. It’s worth noting that iPhone revenue increased 1.5% in Q2 FY23, despite a decline in sales of the broader smartphone industry.
However, the company witnessed weaker Mac and iPad revenues in the fiscal second quarter, partially due to parts shortage. These two product categories faced difficult comparisons, as the year-ago period was still gaining from a pandemic-induced spike in demand.
Coming to Q3 FY23, analysts estimate revenue to decline about 1.5% year-over-year to $81.73 billion, while EPS is projected to fall 0.8% to $1.19. Analysts expect iPhone sales to fall in the June quarter.
On Tuesday, Baird analyst William Power increased the price target for Apple to $204 from $180 and reiterated a Buy rating on the stock.
Power anticipates “solid” Q3 FY23 results, though he pointed out that valuation is at nearly all-time highs. The analyst believes that the focus will be on the next iPhone cycle, noting that historically Apple “outperforms mildly” from August to mid-September.
Heading into Q3 FY23 results, TD Cowen analyst Krish Sankar raised the price target for Apple to $220 from $195 on Tuesday, while reiterating a Hold rating.
Sankar projects June quarter revenue to decline 2% year-over-year and the company to issue a 1% revenue growth outlook for the September quarter. The analyst highlighted that the fieldwork by his firm indicates that near-term iPhone builds remain stable, with next-gen iPhone units to be nearly flat in the second half of the calendar year 2023. He expects China and India market share gains to be favorable, while Mac and Wearables segments to experience “muted seasonality.”
Meanwhile, TipRanks’ Website Traffic Tool indicates a downward trend, with visits to apple.com and other company websites plunging 76.42% year-over-year in Q3 FY23. Website visits were down 1.73% sequentially in the fiscal third quarter.
Technical Analysis Ahead of AAPL’s Q3 Earnings
Heading into Fiscal Q3 results, technical indicators reveal that AAPL is a Buy. According to TipRanks’s easy-to-understand technical tool, AAPL’s 50-Day EMA (exponential moving average) is 185.43, while its stock price is $196.45, making it a Buy. Also, AAPL’s shorter duration EMA (20-day) signals that it is a Buy.
Is Apple a Good Stock to Buy Right Now?
Wall Street has a Strong Buy consensus rating on Apple based on 24 Buys and seven Holds. The average price target of $200.61 implies 2.1% upside potential. Shares have risen 51% so far in 2023.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are pricing in a 3.44% move on Apple earnings. AAPL shares have averaged a 2.3% move in the last eight quarters. In particular, the stock rose about 5% following the Q2 FY23 results.
The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech behemoth Apple (NASDAQ:AAPL) is scheduled to announce its fiscal third-quarter results after the market close on Thursday, August 3. Technical Analysis Ahead of AAPL’s Q3 Earnings Heading into Fiscal Q3 results, technical indicators reveal that AAPL is a Buy. According to TipRanks’s easy-to-understand technical tool, AAPL’s 50-Day EMA (exponential moving average) is 185.43, while its stock price is $196.45, making it a Buy.
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Tech behemoth Apple (NASDAQ:AAPL) is scheduled to announce its fiscal third-quarter results after the market close on Thursday, August 3. Technical Analysis Ahead of AAPL’s Q3 Earnings Heading into Fiscal Q3 results, technical indicators reveal that AAPL is a Buy. According to TipRanks’s easy-to-understand technical tool, AAPL’s 50-Day EMA (exponential moving average) is 185.43, while its stock price is $196.45, making it a Buy.
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Technical Analysis Ahead of AAPL’s Q3 Earnings Heading into Fiscal Q3 results, technical indicators reveal that AAPL is a Buy. Tech behemoth Apple (NASDAQ:AAPL) is scheduled to announce its fiscal third-quarter results after the market close on Thursday, August 3. According to TipRanks’s easy-to-understand technical tool, AAPL’s 50-Day EMA (exponential moving average) is 185.43, while its stock price is $196.45, making it a Buy.
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AAPL shares have averaged a 2.3% move in the last eight quarters. Tech behemoth Apple (NASDAQ:AAPL) is scheduled to announce its fiscal third-quarter results after the market close on Thursday, August 3. Technical Analysis Ahead of AAPL’s Q3 Earnings Heading into Fiscal Q3 results, technical indicators reveal that AAPL is a Buy.
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14543.0
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2023-08-03 00:00:00 UTC
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US STOCKS-Futures extend slide as Treasury yields hit 9-month high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-extend-slide-as-treasury-yields-hit-9-month-high
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.26%, S&P 0.30%, Nasdaq 0.38%
Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive stocks and set Wall Street up for another round of selloff.
Fitch's move hit the appetite for risky assets on Wednesday, dragging Wall Street sharply lower as investors took profits on five months of gains.
Megacap stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.3% and 0.5% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November.
"US equities, especially cyclicals, look vulnerable to further downside after a strong run - either on disappointment in the data relative to lofty expectations or on renewed hawkishness from the Fed," Karen Reichgott Fishman, senior strategist at Goldman Sachs, wrote in a note.
Traders will closely monitor initial jobless claims for the week ended July 29, due at 8:30 a.m. ET, to assess the strength of the labor market after a private payrolls report on Wednesday showed continued labor market resilience.
U.S. services Purchasing Managers' Index (PMI) and comments from President of Richmond Federal Reserve Thomas Barkin later in the day are also on the radar.
At 05:21 a.m. ET, Dow e-minis 1YMcv1 were down 93 points, or 0.26%, S&P 500 e-minis EScv1 were down 13.5 points, or 0.3%, and Nasdaq 100 e-minis NQcv1 were down 58.75 points, or 0.38%.
PayPal HoldingsPYPL.O slid 7.9% in premarket trading as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
QualcommQCOM.O slumped 8.6% as the San Diego, California-based company's fourth-quarter sales forecast fell below market expectations.
The company said it would likely cut jobs as consumer spending on gadgets such as smartphones remained stubbornly weak amid slowing global economic growth.
Meanwhile, DoorDashDASH.N rose 5.8% after the delivery firm raised its annual core profit forecast for a second time and posted an upbeat quarterly revenue as groceries and food orders jumped.
Tech and growth giants Apple and Amazon.com AMZN.Oare due to report quarterly results after market close.
(Reporting by Shubham Batra in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.3% and 0.5% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. Fitch's move hit the appetite for risky assets on Wednesday, dragging Wall Street sharply lower as investors took profits on five months of gains. "US equities, especially cyclicals, look vulnerable to further downside after a strong run - either on disappointment in the data relative to lofty expectations or on renewed hawkishness from the Fed," Karen Reichgott Fishman, senior strategist at Goldman Sachs, wrote in a note.
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Megacap stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.3% and 0.5% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. Futures down: Dow 0.26%, S&P 0.30%, Nasdaq 0.38% Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive stocks and set Wall Street up for another round of selloff. ET, Dow e-minis 1YMcv1 were down 93 points, or 0.26%, S&P 500 e-minis EScv1 were down 13.5 points, or 0.3%, and Nasdaq 100 e-minis NQcv1 were down 58.75 points, or 0.38%.
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Megacap stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.3% and 0.5% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. Futures down: Dow 0.26%, S&P 0.30%, Nasdaq 0.38% Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive stocks and set Wall Street up for another round of selloff. ET, to assess the strength of the labor market after a private payrolls report on Wednesday showed continued labor market resilience.
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Megacap stocks including Apple AAPL.O, Alphabet GOOGL.Oand Microsoft MSFT.O slipped between 0.3% and 0.5% in premarket trading, with the yield on the benchmark 10-year note US10YT=RRhovering around its highest since November. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.26%, S&P 0.30%, Nasdaq 0.38% Aug 3 (Reuters) - U.S. stock index futures fell on Thursday as a jump in U.S. bonds yields, spurred partly by Fitch's downgrade of U.S. long-term credit rating, pressured rate-sensitive stocks and set Wall Street up for another round of selloff.
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14544.0
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2023-08-03 00:00:00 UTC
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Russia fines Apple for not deleting 'inaccurate' content on Ukraine conflict -TASS
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AAPL
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https://www.nasdaq.com/articles/russia-fines-apple-for-not-deleting-inaccurate-content-on-ukraine-conflict-tass
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nan
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nan
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
Adds Apple no comment in paragraph 3, background in paragraphs 5-6
MOSCOW, Aug 3 (Reuters) - A Moscow court fined Apple AAPL.O 400,000 roubles ($4,274) on Thursday for not deleting "inaccurate" content about what Russia calls a "special military operation" in Ukraine, the TASS news agency reported.
TASS said it was the first time Apple had been fined for that offence.
Apple did not immediately respond to an emailed request for comment. The company paused all product sales in Russia shortly after Moscow sent tens of thousands of troops into Ukraine in February 2022, and limited its Apple Pay service in Russia.
Moscow has clashed with Big Tech for years over content, censorship, data and local representation in disputes that escalated after Russia sent its armed forces into Ukraine.
Apple paid a 906-million-rouble fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said in February.
Apple, which did not comment then, had previously appealed and "respectfully disagreed" with a FAS ruling that Apple's distribution of apps through its iOS operating system gave its own products a competitive advantage.
($1 = 93.5775 roubles)
(Reporting by Reuters; Writing by Alexander Marrow Editing by Gareth Jones)
((alexander.marrow@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds Apple no comment in paragraph 3, background in paragraphs 5-6 MOSCOW, Aug 3 (Reuters) - A Moscow court fined Apple AAPL.O 400,000 roubles ($4,274) on Thursday for not deleting "inaccurate" content about what Russia calls a "special military operation" in Ukraine, the TASS news agency reported. Moscow has clashed with Big Tech for years over content, censorship, data and local representation in disputes that escalated after Russia sent its armed forces into Ukraine. Apple paid a 906-million-rouble fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said in February.
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds Apple no comment in paragraph 3, background in paragraphs 5-6 MOSCOW, Aug 3 (Reuters) - A Moscow court fined Apple AAPL.O 400,000 roubles ($4,274) on Thursday for not deleting "inaccurate" content about what Russia calls a "special military operation" in Ukraine, the TASS news agency reported. The company paused all product sales in Russia shortly after Moscow sent tens of thousands of troops into Ukraine in February 2022, and limited its Apple Pay service in Russia. Apple paid a 906-million-rouble fine in a Russian antitrust case alleging abuse of its dominance in the mobile apps market, Russia's Federal Antimonopoly Service (FAS) said in February.
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds Apple no comment in paragraph 3, background in paragraphs 5-6 MOSCOW, Aug 3 (Reuters) - A Moscow court fined Apple AAPL.O 400,000 roubles ($4,274) on Thursday for not deleting "inaccurate" content about what Russia calls a "special military operation" in Ukraine, the TASS news agency reported. The company paused all product sales in Russia shortly after Moscow sent tens of thousands of troops into Ukraine in February 2022, and limited its Apple Pay service in Russia. Apple, which did not comment then, had previously appealed and "respectfully disagreed" with a FAS ruling that Apple's distribution of apps through its iOS operating system gave its own products a competitive advantage.
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This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds Apple no comment in paragraph 3, background in paragraphs 5-6 MOSCOW, Aug 3 (Reuters) - A Moscow court fined Apple AAPL.O 400,000 roubles ($4,274) on Thursday for not deleting "inaccurate" content about what Russia calls a "special military operation" in Ukraine, the TASS news agency reported. TASS said it was the first time Apple had been fined for that offence. Apple did not immediately respond to an emailed request for comment.
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14545.0
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2023-08-03 00:00:00 UTC
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Apple Q3 23 Earnings Conference Call At 5:00 PM ET
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AAPL
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https://www.nasdaq.com/articles/apple-q3-23-earnings-conference-call-at-5%3A00-pm-et
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on August 3, 2023, to discuss Q3 23 earnings results.
To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on August 3, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on August 3, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on August 3, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Apple Inc. (AAPL) will host a conference call at 5:00 PM ET on August 3, 2023, to discuss Q3 23 earnings results. To access the live webcast, log on to https://investor.apple.com/investor-relations/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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14546.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Shares stumble as US yields rise
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AAPL
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https://www.nasdaq.com/articles/global-markets-shares-stumble-as-us-yields-rise
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nan
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nan
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By Tom Wilson and Stella Qiu
LONDON/SYDNEY, Aug 3 (Reuters) - Share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, helping the dollar to shrug off a U.S. credit downgrade to hit a four-week high against its major peers.
European shares.STOXX slipped 1.1% after falling on Wednesday to two-week lows as rating agency Fitch cut the U.S. government's credit rating. UK shares .FTSE fell 1.3%, with the Bank of England (BoE) expected to raise interest rates later in the day.
Wall Street was set to open in negative territory, too. S&P 500 futures ESc1 and Nasdaq futures NQc1 were down 0.5% and 0.8% respectively, set for more pain after a wave of selling a day earlier.
Pressuring stocks were a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data and the announced refunding of the U.S. government's maturing debt.
U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.17%, while 30-year yields US30YT=RR rose to a fresh nine-month top.
"We'll see how the (monetary policy) committee is thinking about that balance between inflation and growth - that's really what's on central banks' minds right now," said Jonathan Petersen, senior markets economist at Capital Economics.
APPLE AND AMAZON
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%, extending losses after a drop of 2.3% a day earlier.
Still, Chinese blue chips .CSI300 rose 0.9% and Hong Kong's Hang Seng index .HSI added 0.3% after a private survey showed China's services activity expanded at a faster place in July - a rare spot of good news for the sputtering economy though in contrast with a decline in official surveys.
Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
"We believe a better reentry opportunity could be down the road, but more patience is preferred at this moment," they said in a note.
Amazon, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Tom Wilson in London and Stella Qiu in Sydney; Editing by Kim Coghill and Mark Potter)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pressuring stocks were a climb in long-term U.S. Treasury yields after stronger-than-expected private employment data and the announced refunding of the U.S. government's maturing debt. "We'll see how the (monetary policy) committee is thinking about that balance between inflation and growth - that's really what's on central banks' minds right now," said Jonathan Petersen, senior markets economist at Capital Economics. Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
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By Tom Wilson and Stella Qiu LONDON/SYDNEY, Aug 3 (Reuters) - Share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, helping the dollar to shrug off a U.S. credit downgrade to hit a four-week high against its major peers. Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Tom Wilson in London and Stella Qiu in Sydney; Editing by Kim Coghill and Mark Potter) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tom Wilson and Stella Qiu LONDON/SYDNEY, Aug 3 (Reuters) - Share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, helping the dollar to shrug off a U.S. credit downgrade to hit a four-week high against its major peers. Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Tom Wilson in London and Stella Qiu in Sydney; Editing by Kim Coghill and Mark Potter) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Tom Wilson and Stella Qiu LONDON/SYDNEY, Aug 3 (Reuters) - Share markets stumbled on Thursday as U.S. bonds yields hit nine-month peaks, helping the dollar to shrug off a U.S. credit downgrade to hit a four-week high against its major peers. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4%, extending losses after a drop of 2.3% a day earlier. Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked.
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14547.0
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2023-08-03 00:00:00 UTC
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India restricts import of laptop, computers to push local manufacturing
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AAPL
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https://www.nasdaq.com/articles/india-restricts-import-of-laptop-computers-to-push-local-manufacturing
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nan
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nan
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Adds details, comments
NEW DELHI, Aug 3 (Reuters) - India has restricted imports of laptops, tablets and personal computers with immediate effect, according to a government notice on Thursday, in a bid to push local manufacturing.
"Their import would be allowed against a valid licence for restricted imports," the notice said.
In April-June, electronics imports, which include laptops, tablets and personal computers, was $19.7 billion, up 6.25% year-on-year.
"The move's spirit is to push manufacturing to India. It's not a nudge, it's a push," said Ali Akhtar Jafri, former director general at electronics industry body Manufacturers' Association of Information Technology.
Dell<DELL.N>, Acer, Samsung, LG, Panasonic, Apple Inc AAPL.O, Lenovo<0992.HK> and HP Inc HPQ.N are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China.
(Reporting by Shivam Patel and Aftab Ahmed in New Delhi; Editing by Sudipto Ganguly and Raju Gopalakrishnan)
((Shivam.Patel@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dell<DELL.N>, Acer, Samsung, LG, Panasonic, Apple Inc AAPL.O, Lenovo<0992.HK> and HP Inc HPQ.N are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. Adds details, comments NEW DELHI, Aug 3 (Reuters) - India has restricted imports of laptops, tablets and personal computers with immediate effect, according to a government notice on Thursday, in a bid to push local manufacturing. It's not a nudge, it's a push," said Ali Akhtar Jafri, former director general at electronics industry body Manufacturers' Association of Information Technology.
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Dell<DELL.N>, Acer, Samsung, LG, Panasonic, Apple Inc AAPL.O, Lenovo<0992.HK> and HP Inc HPQ.N are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. Adds details, comments NEW DELHI, Aug 3 (Reuters) - India has restricted imports of laptops, tablets and personal computers with immediate effect, according to a government notice on Thursday, in a bid to push local manufacturing. "Their import would be allowed against a valid licence for restricted imports," the notice said.
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Dell<DELL.N>, Acer, Samsung, LG, Panasonic, Apple Inc AAPL.O, Lenovo<0992.HK> and HP Inc HPQ.N are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. Adds details, comments NEW DELHI, Aug 3 (Reuters) - India has restricted imports of laptops, tablets and personal computers with immediate effect, according to a government notice on Thursday, in a bid to push local manufacturing. (Reporting by Shivam Patel and Aftab Ahmed in New Delhi; Editing by Sudipto Ganguly and Raju Gopalakrishnan) ((Shivam.Patel@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dell<DELL.N>, Acer, Samsung, LG, Panasonic, Apple Inc AAPL.O, Lenovo<0992.HK> and HP Inc HPQ.N are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. Adds details, comments NEW DELHI, Aug 3 (Reuters) - India has restricted imports of laptops, tablets and personal computers with immediate effect, according to a government notice on Thursday, in a bid to push local manufacturing. It's not a nudge, it's a push," said Ali Akhtar Jafri, former director general at electronics industry body Manufacturers' Association of Information Technology.
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14548.0
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2023-08-03 00:00:00 UTC
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GLOBAL MARKETS-Asian shares stumble as US yields advance, dollar buoyant
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-stumble-as-us-yields-advance-dollar-buoyant
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nan
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nan
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By Stella Qiu
SYDNEY, Aug 3 (Reuters) - Asian shares stumbled on Thursday as U.S. bonds yields hit nine-month peaks and pushed the dollar higher, while investors waited anxiously to see if results from Apple and Amazon justified the tech sector's sky-high valuations.
Europe looked set for a subdued opening, with EUROSTOXX 50 futures STXEc1 0.1% lower and FTSE futures FFIc1 up 0.2%. The Bank of England is expected to raise interest rates later in the day.
Both S&P 500 futures ESc1 and Nasdaq futures NQc1 were flat, following a wave of selling on Wall Street overnight as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2%, after a sharp drop of 2.3% a day earlier. That compared with a 5.4% monthly gain in July.
Japan's Nikkei .N225 slid 1.3%, bringing its losses so far in August to 2.7%, giving back some of the 7.5% surge seen a month earlier.
U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.1344% while 30-year yields US30YT=RR rose 8 basis points to 4.2435%, also a fresh nine-month top.
"I reckon that even though you could argue that the Fitch downgrade is outdated ... I think you've seen enough movements for some things to be burned and some questions to be asked at these highs," said Matt Simpson, a market analyst at City Index in Brisbane.
"I reckon at best you probably could look at some choppy trade around these highs or at worst we can have a bit of a deeper pullback."
Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins.
"We believe a better reentry opportunity could be down the road, but more patience is preferred at this moment," they said in a note on Thursday.
Amazon.com Inc AMZN.O, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
The U.S. dollar =USD was buoyant in Asia at a one-month high of 102.75 against its major peers, after the strong private payrolls data added to signs of labour market resilience in the U.S. The closely-watched U.S. nonfarm payrolls report is due on Friday. FRX/
Sterling GBP=D3 hovered at $1.2701, just a touch above its four-week trough of $1.2680.
Most economists expect the BOE to hike rates by a quarter-point to a 15-year high of 5.25% later in the day (1100 GMT), but the risk is a repeat of June's surprise half-point increase, which could fuel bets that major central banks are not done tightening yet. 0#ECBWATCH
Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked.
Elsewhere, oil prices were marginally higher as markets weighed bullish U.S. inventory data and a likely extension of OPEC+ output cuts. Brent crude futures LCOc1 were up 0.2% at $83.37 per barrel and U.S. West Texas Intermediate crude futures CLc1 rose 0.2% to $79.63.
Gold prices XAU= was flat at $1,934.39 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Jacqueline Wong and Kim Coghill)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stella Qiu SYDNEY, Aug 3 (Reuters) - Asian shares stumbled on Thursday as U.S. bonds yields hit nine-month peaks and pushed the dollar higher, while investors waited anxiously to see if results from Apple and Amazon justified the tech sector's sky-high valuations. Analysts at Morgan Stanley downgraded China shares to equal weight, given the still-negative earnings revisions and weak return on equity and profit margins. Most economists expect the BOE to hike rates by a quarter-point to a 15-year high of 5.25% later in the day (1100 GMT), but the risk is a repeat of June's surprise half-point increase, which could fuel bets that major central banks are not done tightening yet.
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By Stella Qiu SYDNEY, Aug 3 (Reuters) - Asian shares stumbled on Thursday as U.S. bonds yields hit nine-month peaks and pushed the dollar higher, while investors waited anxiously to see if results from Apple and Amazon justified the tech sector's sky-high valuations. U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.1344% while 30-year yields US30YT=RR rose 8 basis points to 4.2435%, also a fresh nine-month top. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Stella Qiu; Editing by Jacqueline Wong and Kim Coghill) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both S&P 500 futures ESc1 and Nasdaq futures NQc1 were flat, following a wave of selling on Wall Street overnight as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. 0#ECBWATCH Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Stella Qiu; Editing by Jacqueline Wong and Kim Coghill) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Both S&P 500 futures ESc1 and Nasdaq futures NQc1 were flat, following a wave of selling on Wall Street overnight as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. U.S. 10-year yields US10YT=RR hit a new nine-month peak of 4.1344% while 30-year yields US30YT=RR rose 8 basis points to 4.2435%, also a fresh nine-month top. 0#ECBWATCH Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked.
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14549.0
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2023-08-03 00:00:00 UTC
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Better Artificial Intelligence Stock: Apple vs. Microsoft
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AAPL
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https://www.nasdaq.com/articles/better-artificial-intelligence-stock%3A-apple-vs.-microsoft
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nan
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nan
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Whether you're a casual investor or trade professionally, you have likely heard about the boom in artificial intelligence (AI). Last November, the launch of OpenAI's ChatGPT renewed interest in AI and caused many experts to rethink what is possible with the technology.
According to data from Grand View Research, the $137 billion AI market is projected to have a compound annual growth rate of 37% through 2030. The sector's potential has attracted many of the biggest names in tech, with a race underway to see which companies can snap up the most market share. So it's not a bad idea to consider investing in the sector before it develops further.
Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two attractive options as the first and second most-valuable companies by market cap, respectively. These tech giants have the resources to invest heavily in AI and achieve leading positions in the industry.
Let's examine whether Apple or Microsoft is the better artificial intelligence stock.
Apple: Developing a rival to ChatGPT
While Apple might not be the first company that comes to mind in a discussion about AI, the iPhone manufacturer is no stranger to the technology. It has quietly expanded its AI features across its product lineup this year.
At its Worldwide Developers Conference in June, the company debuted an update to the iPhone's autocorrect, which uses a language model similar to ChatGPT to improve messaging. Meanwhile, an AI-enabled feature will be added to AirPod Pros that will automatically turn off noise canceling when the user begins to speak.
The company also reportedly developed a custom framework for building large language models and created an AI chatbot that engineers have dubbed Apple GPT.
As a dominating figure in consumer tech with leading market shares in multiple product categories, Apple has the power to become a threat in AI over the long term. Its popular devices could be crucial in getting the technology into millions of homes worldwide as it significantly profits along the way.
Microsoft: Some of the most powerful AI models at its fingertips
Microsoft shares climbed 40% since Jan. 1, mainly driven by its growing prospects in AI. The company quickly became one of the most prominent names in the field as the largest investor in OpenAI.
The collaboration allowed Microsoft to obtain exclusive licenses on some of OpenAI's most powerful AI models. Meanwhile, the company used the start-up's technology to bring AI upgrades to several of its homegrown services, including Word, Excel, Azure, and its search engine Bing.
The potency of these apps strengthens Microsoft's potential to become a go-to for consumers and businesses seeking to use AI's abilities.
Microsoft is continuing to invest in the market by financially backing Advanced Micro Devices' AI chip expansion and providing engineering resources. The goal is to create an alternative to the current industry leader, Nvidia, and bring down the cost of chips.
Microsoft seems intent on making AI one of the focal points of its business and so far has made progress in the lucrative sector. As Microsoft continues to expand its AI services through Azure and its productivity software, investors won't want to miss out on its potential stock growth.
Is Apple or Microsoft the better stock to invest in AI?
Apple and Microsoft have solid claims to AI, with both likely to profit significantly from it over the long term. But Microsoft's partnership with OpenAI and its successful cloud platform Azure give it more tangible ways to enjoy boosted earnings from the technology in the not-so-distant future. Meanwhile, it's still early days for Apple's venture into AI, and it remains to be seen how that will benefit its business.
Microsoft's investment of $1 billion in OpenAI in 2019 gave it a massive advantage, beating companies like Apple, Amazon, and Alphabet to the market. As a result, it's one of the most reliable ways to back the booming technology.
So if you're trying to decide between Apple or Microsoft as a way to invest in AI, Microsoft is the way to go. But it's still a good idea to keep Apple in mind for future investment.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two attractive options as the first and second most-valuable companies by market cap, respectively. The company also reportedly developed a custom framework for building large language models and created an AI chatbot that engineers have dubbed Apple GPT. As a dominating figure in consumer tech with leading market shares in multiple product categories, Apple has the power to become a threat in AI over the long term.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two attractive options as the first and second most-valuable companies by market cap, respectively. Microsoft is continuing to invest in the market by financially backing Advanced Micro Devices' AI chip expansion and providing engineering resources. As Microsoft continues to expand its AI services through Azure and its productivity software, investors won't want to miss out on its potential stock growth.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two attractive options as the first and second most-valuable companies by market cap, respectively. Microsoft: Some of the most powerful AI models at its fingertips Microsoft shares climbed 40% since Jan. 1, mainly driven by its growing prospects in AI. Is Apple or Microsoft the better stock to invest in AI?
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are two attractive options as the first and second most-valuable companies by market cap, respectively. Apple: Developing a rival to ChatGPT While Apple might not be the first company that comes to mind in a discussion about AI, the iPhone manufacturer is no stranger to the technology. Is Apple or Microsoft the better stock to invest in AI?
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14550.0
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2023-08-02 00:00:00 UTC
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Mediocre Earnings After the Bell; Selloff Continues
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AAPL
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https://www.nasdaq.com/articles/mediocre-earnings-after-the-bell-selloff-continues
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nan
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nan
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Markets had a hard time today reconciling the first U.S. credit rating downgrade in 12 years, when Fitch Ratings — one of the “big three” credit rating agencies — lowered its rating from the usual AAA to AA+. The reason for the move is the same as it was a dozen years ago: Congress is kicking the can on increasing its debt ceiling, which, if not raised, would cause the U.S. to default on its debts. Last time, it was also a Democratic White House and a Republican-led House of Representatives that saw this issue emerge.
In any case, market indices were down across the board today. All the majors opened normal trading in the red and stayed there, closing off session lows, but not by much. The Dow shed -331 points, -0.93%, while the Nasdaq dropped -309 points, -2.17%. The S&P 500 and small-cap Russell 2000 were down -1.39% and -1.37%, respectively. So far, August looks to be giving back a significant amount of July gains, just in the first two days of the new month’s trading.
Qualcomm QCOM is the latest major company to post mixed results in its quarterly report this afternoon: while fiscal Q3 earnings of $1.87 per share bettered the $1.81 in the Zacks consensus, revenues of $8.45 billion came up short of the $8.51 billion. Revenue guidance for fiscal Q4 are for a range of $8.1-8.9 billion, with a midpoint lower than the consensus $8.69 billion. A -25% drop in handset chip sales year over year and a slower recovery in China contributed to the performance. Shares are down -4.5% on the release.
MGM Resorts MGM, however, outperformed estimates on both top and bottom lines, with earnings of 59 cents per share beating the 53 cents expected, and sales of $3.94 billion in the quarter easily surpassing the $3.76 billion consensus. Its MGM China business in Macau has surprised to the upside, notching +5% growth over 2019 (pre-Covid) levels, +21% on the key EBITDAR metric. However, after cranking +48% higher year to date, investors are selling this news; MGM is -7% in today’s after-market.
PayPal PYPL reported in-line earnings at $1.16 per share on $7.29 billion in quarterly revenues, up nearly +7% year over year. Guidance for Q3 looks to be slightly above previous estimates, as Payment Volume grew +11% year over year. That said, Operating Margin of +21.4% in the quarter missed consensus expectations of +22%, and this may be adding fuel to the -7.5% selloff in today’s late trading. PayPal has also been an underperformer year to date.
Etsy ETSY posted beats on both top and bottom lines this afternoon, with earnings of 45 cents per share improving by 4 cents over the Zacks consensus, on revenues of $629 million in the quarter. Gross merchandising came in at $3.01 billion, -20% year to date, even as the company noted Etsy Active Buyers reached an all-time high in the quarter. Shares are selling off -5% after normal hours.
Closing on a positive note, DoorDash DASH shares are up +4% on its Q2 report out after today’s bell, missing on the bottom line to -44 cents per share by -2 cents, while revenues outpaced estimates: $2.13 billion from $2.05 billion. Guidance was also raised for the delivery service firm, on Gross Orders of $16.47 billion versus $16.1 billion anticipated and Total Orders +25% year over year.
Tomorrow, the Q2 earnings season parade continues, highlighted by Apple AAPL and Amazon AMZN earnings after the close. It also brings us the next series of data on the state of the domestic labor market — namely, Initial and Continuing Jobless Claims. We’ll also see preliminary U.S. Productivity for Q2, S&P PMI and ISM Services data, both for July, and Factory Orders for June. But we don’t expect any of these data points to reverse market trajectories on their own; likely it will take Friday’s Employment Situation report to bring us this possibility.
Questions or comments about this article and/or author? Click here>>
4 Oil Stocks with Massive Upsides
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tomorrow, the Q2 earnings season parade continues, highlighted by Apple AAPL and Amazon AMZN earnings after the close. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Etsy, Inc. (ETSY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Its MGM China business in Macau has surprised to the upside, notching +5% growth over 2019 (pre-Covid) levels, +21% on the key EBITDAR metric.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Etsy, Inc. (ETSY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Tomorrow, the Q2 earnings season parade continues, highlighted by Apple AAPL and Amazon AMZN earnings after the close. MGM Resorts MGM, however, outperformed estimates on both top and bottom lines, with earnings of 59 cents per share beating the 53 cents expected, and sales of $3.94 billion in the quarter easily surpassing the $3.76 billion consensus.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Etsy, Inc. (ETSY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Tomorrow, the Q2 earnings season parade continues, highlighted by Apple AAPL and Amazon AMZN earnings after the close. PayPal PYPL reported in-line earnings at $1.16 per share on $7.29 billion in quarterly revenues, up nearly +7% year over year.
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Tomorrow, the Q2 earnings season parade continues, highlighted by Apple AAPL and Amazon AMZN earnings after the close. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report MGM Resorts International (MGM) : Free Stock Analysis Report Etsy, Inc. (ETSY) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. PayPal PYPL reported in-line earnings at $1.16 per share on $7.29 billion in quarterly revenues, up nearly +7% year over year.
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14551.0
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2023-08-02 00:00:00 UTC
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US STOCKS-Wall Street ends down, investors step back after Fitch US rating cut
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-down-investors-step-back-after-fitch-us-rating-cut-0
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nan
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By David French
Aug 2 (Reuters) - Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating.
Fitch downgraded the United States to AA+ from AAA late on Tuesday, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country's rating. In 2011 Standard & Poor's stripped the country of its triple-A grade.
Reaction to the news pushed major indexes lower, with the S&P 500 .SPX recording its biggest daily percentage drop since April 25. It was also the first session since May 23 in which the benchmark declined by more than 1%.
Still, several major brokerages said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting the economy was now stronger than it was when S&P cut its rating in 2011.
July was the fifth straight month of gains for the S&P 500 and the tech-heavy Nasdaq Composite .IXIC, driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy.
However, with markets entering a seasonally slow August, the Fitch downgrade offered an opportunity for investors to take a breather.
"Sometimes it's healthy to have this digestion in the market, as it brings down valuations a bit and it allows for dip-buying," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina.
Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. US/
Tech stocks get premium valuations because investors expect profit growth, and many fear high interest rates could slow the economy and dent that growth. Higher rates can make interest-bearing bonds an attractive alternative to stocks for some risk-averse investors, and projected company cash flows are worth less in current dollars when interest rates rise.
The technology index .SPLRCT, dropping 2.6%, was also the worst performer of the 11 major S&P sectors, with nine in total ending the day lower.
Yields being above 4% is "not what the market wants to see", according to LPL's Krosby, who also predicted investors will soon look beyond Fitch's downgrade and turn their focus to big tech company earnings due after the close on Thursday.
"The market is now going to focus on Amazon.com Inc AMZN.O and Apple tomorrow afternoon, and then on the payroll report on Friday, and we'll say goodbye to Fitch," Krosby said.
The Dow Jones Industrial Average .DJI fell 348.16 points, or 0.98%, to 35,282.52, the S&P 500 .SPX lost 63.34 points, or 1.38%, to 4,513.39 and the Nasdaq Composite .IXIC dropped 310.47 points, or 2.17%, to 13,973.45.
Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
Despite lingering fears of a recession, corporate America has continued to perform well. With around two-thirds of the S&P 500 having already reported, 79.9% have posted earnings above analysts' expectations, per Refinitiv I/B/E/S.
This puts the quarter on track for the highest earnings beat rate since the third quarter of 2021, per the data provider.
On the earnings front, CVS Health CorpCVS.N gained 3.3% after beating Wall Street estimates for quarterly profit, and EmersonEMR.N climbed 3.8% after the industrial software firm raised its annual profit outlook.
Meanwhile, Advanced Micro DevicesAMD.O slipped 7% over concerns its targets for an artificial intelligence (AI) ramp-up may be too ambitious. The worries overshadowed the chip designer forecasting an upbeat finish to the year.
Volume on U.S. exchanges was 11.88 billion shares, compared with the 10.79 billion average for the full session over the last 20 trading days.
The S&P 500 posted 12 new 52-week highs and five new lows; the Nasdaq Composite recorded 49 new highs and 111 new lows.
US loses top AAA credit rating from Fitch https://tmsnrt.rs/3OgSgb2
Stocks lead recovery in 2023 https://tmsnrt.rs/3Kmeg2Y
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru and David French in New York; additional reporting by Lewis Krauskopf; Editing by Saumyadeb Chakrabarty, Vinay Dwivedi and David Gregorio)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. "Sometimes it's healthy to have this digestion in the market, as it brings down valuations a bit and it allows for dip-buying," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. US/ Tech stocks get premium valuations because investors expect profit growth, and many fear high interest rates could slow the economy and dent that growth.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. US/ Tech stocks get premium valuations because investors expect profit growth, and many fear high interest rates could slow the economy and dent that growth.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. Fitch was the second major agency to cut the country's rating.
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14552.0
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2023-08-02 00:00:00 UTC
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Floods test China's disaster-response systems as emergency level raised
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AAPL
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https://www.nasdaq.com/articles/floods-test-chinas-disaster-response-systems-as-emergency-level-raised
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nan
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nan
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Recasts with flood management details
BEIJING, Aug 3 (Reuters) - China's disaster-response systems are being put to the test as floodwaters from record rainfall could take weeks to recede with thousands of people still unable to return to their homes, state media reported on Thursday.
Authorities in northern Hebei province raised the natural disaster emergency response level to II from III, while Beijing kept a warning in place for landslides on its outskirts, the state broadcaster and city government said.
The Hai river basin, where five rivers converge in northern China, is going through a "flood evolution process" and flood-control engineering systems are experiencing the "most severe test" since inundations in 1996, state media reported.
Floodwaters could take up to a month to recede in Hebei province, where Zhuozhou is the hardest hit city, a water resources department official told state media. About 100,000 people in the city southwest of Beijing were forced to leave their homes by the rising waters.
The floods have spread since Typhoon Doksuri swept into southern China on Friday. The remnants of the typhoon have started drifting into northeast China after breaking a 140-year rainfall record in Beijing and dumping more than a year's rain in Hebei province earlier this week.
While the rain has eased, scores of reservoirs have been enabled to divert and trap floodwater as it flows downstream, state broadcaster CCTV reported.
China is facing more stormy weather with Typhoon Khanun currently swirling over the East China Sea towards Japan, and forecast to approach China's Zhejiang and Fujian provinces by Friday.
American phonemaker Apple Inc AAPL.O Chief Executive Tim Cook said in a post on popular microblog Weibo that the company will donate to the flood-relief efforts in Beijing and Hebei.
(Reporting by Liz Lee, Ryan Woo, Ethan Wang and Shanghai Newsroom; Editing by Muralikumar Anantharaman and Stephen Coates)
((Ethan.Wang@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American phonemaker Apple Inc AAPL.O Chief Executive Tim Cook said in a post on popular microblog Weibo that the company will donate to the flood-relief efforts in Beijing and Hebei. Recasts with flood management details BEIJING, Aug 3 (Reuters) - China's disaster-response systems are being put to the test as floodwaters from record rainfall could take weeks to recede with thousands of people still unable to return to their homes, state media reported on Thursday. Authorities in northern Hebei province raised the natural disaster emergency response level to II from III, while Beijing kept a warning in place for landslides on its outskirts, the state broadcaster and city government said.
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American phonemaker Apple Inc AAPL.O Chief Executive Tim Cook said in a post on popular microblog Weibo that the company will donate to the flood-relief efforts in Beijing and Hebei. Recasts with flood management details BEIJING, Aug 3 (Reuters) - China's disaster-response systems are being put to the test as floodwaters from record rainfall could take weeks to recede with thousands of people still unable to return to their homes, state media reported on Thursday. Authorities in northern Hebei province raised the natural disaster emergency response level to II from III, while Beijing kept a warning in place for landslides on its outskirts, the state broadcaster and city government said.
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American phonemaker Apple Inc AAPL.O Chief Executive Tim Cook said in a post on popular microblog Weibo that the company will donate to the flood-relief efforts in Beijing and Hebei. Recasts with flood management details BEIJING, Aug 3 (Reuters) - China's disaster-response systems are being put to the test as floodwaters from record rainfall could take weeks to recede with thousands of people still unable to return to their homes, state media reported on Thursday. The Hai river basin, where five rivers converge in northern China, is going through a "flood evolution process" and flood-control engineering systems are experiencing the "most severe test" since inundations in 1996, state media reported.
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American phonemaker Apple Inc AAPL.O Chief Executive Tim Cook said in a post on popular microblog Weibo that the company will donate to the flood-relief efforts in Beijing and Hebei. Recasts with flood management details BEIJING, Aug 3 (Reuters) - China's disaster-response systems are being put to the test as floodwaters from record rainfall could take weeks to recede with thousands of people still unable to return to their homes, state media reported on Thursday. Authorities in northern Hebei province raised the natural disaster emergency response level to II from III, while Beijing kept a warning in place for landslides on its outskirts, the state broadcaster and city government said.
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14553.0
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2023-08-02 00:00:00 UTC
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GLOBAL MARKETS-Asian shares hesitant after Wall Street sell-off, dollar buoyant
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AAPL
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https://www.nasdaq.com/articles/global-markets-asian-shares-hesitant-after-wall-street-sell-off-dollar-buoyant
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nan
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nan
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By Stella Qiu
SYDNEY, Aug 3 (Reuters) - Asian shares were subdued on Thursday after Fitch downgraded U.S. sovereign debt sparking profit-taking, with investors now shifting focus to Bank of England's rate decision and earnings from Apple and Amazon.
Both S&P 500 futures ESc1 and Nasdaq futures NQc1 added 0.2%, following a heavy wave of selling on Wall Street overnight.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2%, having also suffered a colossal drop of 2.3% just a day earlier. That compared with a 5.4% monthly gain in July.
Japan's Nikkei .N225 fell 1.1%, bringing the losses so far in August to 2.5%, giving back some of the 7.5% surge seen a month earlier.
The yield on 10-year Japanese government bonds (JGB) JP10YTN=JBTC rose to 0.65% on Thursday, the highest since April 2014, after the Bank of Japan loosened its grip on yield curve control last week.
Chinese blue chips .CSI300 were 0.2% higher while Hong Kong's Hang Seng index .HSI was mostly flat. A private survey showed China's services activity expanded at a faster place in July.
"I reckon at best you probably could look at some choppy trade around these highs or at worst we can have a bit of a deeper pullback."
Overnight, Nasdaq and S&P 500 posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy..N
Later in the day, Apple AAPL.O is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow.
Amazon.com Inc AMZN.O, a bellwether for consumer spending, is expected to report a more than 8% rise in second-quarter revenue, aided by a recovery in the advertising and e-commerce businesses.
U.S. 10-year yields US10YT=RR hovered at 4.0856% in Asia, just a touch below a nine-month top of 4.1260% hit overnight. 30-year yields US30YT=RR were up 2 basis points at 4.1847%, nearing the highest level since November.
The U.S. dollar =USD was buoyant in Asia at a one-month high of 102.63 against its major peers, after the strong private payrolls data added to signs of labour market resilience in the U.S. The closely-watched U.S. nonfarm payrolls report is due on Friday. FRX/
The risk-sensitive Australia dollar AUD=D3 snapped a key support level to hover at $0.6532, just a touch above its 2023 low of $0.6459.
Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked.
Elsewhere, oil prices were marginally higher as markets weighed bullish U.S. inventory data and a likely extension of OPEC+ output cuts. Brent crude futures LCOc1 were up 0.2% at $83.33 per barrel and U.S. West Texas Intermediate crude futures CLc1 rose 0.1% to $79.6.
Gold prices XAU= edged up 0.1% to $1,936.19 per ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
(Reporting by Stella Qiu; Editing by Jacqueline Wong)
((yifan.qiu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overnight, Nasdaq and S&P 500 posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy..N Later in the day, Apple AAPL.O is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow. By Stella Qiu SYDNEY, Aug 3 (Reuters) - Asian shares were subdued on Thursday after Fitch downgraded U.S. sovereign debt sparking profit-taking, with investors now shifting focus to Bank of England's rate decision and earnings from Apple and Amazon. The U.S. dollar =USD was buoyant in Asia at a one-month high of 102.63 against its major peers, after the strong private payrolls data added to signs of labour market resilience in the U.S.
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Overnight, Nasdaq and S&P 500 posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy..N Later in the day, Apple AAPL.O is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow. Both S&P 500 futures ESc1 and Nasdaq futures NQc1 added 0.2%, following a heavy wave of selling on Wall Street overnight. The U.S. dollar =USD was buoyant in Asia at a one-month high of 102.63 against its major peers, after the strong private payrolls data added to signs of labour market resilience in the U.S.
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Overnight, Nasdaq and S&P 500 posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy..N Later in the day, Apple AAPL.O is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow. Overnight, Brazil's central bank cut its benchmark interest rates for the first time in three years and by a larger-than-expected 50 basis points, marking the start of an easing cycle in emerging markets now that U.S. rates have likely peaked. Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA (Reporting by Stella Qiu; Editing by Jacqueline Wong) ((yifan.qiu@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Overnight, Nasdaq and S&P 500 posted their biggest declines since February and April, respectively, after a blistering July driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy..N Later in the day, Apple AAPL.O is expected to report the largest third-quarter drop in revenues since 2016 as sales of iPhones slow. By Stella Qiu SYDNEY, Aug 3 (Reuters) - Asian shares were subdued on Thursday after Fitch downgraded U.S. sovereign debt sparking profit-taking, with investors now shifting focus to Bank of England's rate decision and earnings from Apple and Amazon. Japan's Nikkei .N225 fell 1.1%, bringing the losses so far in August to 2.5%, giving back some of the 7.5% surge seen a month earlier.
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14554.0
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2023-08-02 00:00:00 UTC
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Wall Street drops, investors step back after Fitch downgrades US
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AAPL
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https://www.nasdaq.com/articles/wall-street-drops-investors-step-back-after-fitch-downgrades-us
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nan
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nan
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By David French and Bansari Mayur Kamdar
Aug 2 (Reuters) - Wall Street dropped on Wednesday, as investors embarked on a round of profit-taking in response to the move by rating agency Fitch to downgrade the U.S. government's credit rating.
Fitch downgraded the United States to AA+ from AAA, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country's rating. In 2011 Standard & Poor's stripped the country of its triple-A grade.
Several major brokerages, however, said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was now stronger than it was in 2011.
July was the fifth straight month of gains for the benchmark S&P 500 .SPX and the tech-heavy Nasdaq Composite .IXIC, with recent advances driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy.
However, with markets entering a seasonally slow August, the Fitch downgrade offered an opportunity for investors to take a breather.
"I think the market has been looking for a reason to correct, and this (downgrade) just happened to be a very good reason for it to do so," said Gregg Abella, CEO of Investment Partners Asset Management.
Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. US/
Abella of Investment Partners Asset Management said the rising yield could encourage profit-taking in these high-growth tech stocks, especially given how their recent growth spurt has further stretched earnings multiples.
"Those multiples are extended, so it's healthy to have a market which doesn't go in one direction every single day," he said.
At 2.05pm E.T., the Dow Jones Industrial Average .DJI fell 275.97 points, or 0.77%, to 35,354.71, the S&P 500 .SPX lost 56 points, or 1.22%, to 4,520.73 and the Nasdaq Composite .IXIC dropped 290.65 points, or 2.03%, to 13,993.27.
Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
Despite lingering fears of a recession, corporate America has continued to perform well. With around two-thirds of the S&P 500 having already reported, 79.9% have posted earnings above analysts' expectations, per Refinitiv I/B/E/S.
This puts the quarter on track for the highest earnings beat rate since the third quarter of 2021, per the data provider.
On the earnings front, CVS Health CorpCVS.N added 3.7% on beating Wall Street estimates for quarterly profit, boosted by strength in its pharmacy benefit management unit and lower-than-expected medical costs in its health insurance business.
EmersonEMR.N climbed 4.1% after the industrial software firm raised its annual profit outlook as companies increase spending on automation in response to a tight labor market.
Elsewhere, Wells FargoWFC.N said it expects to pay as much as $1.8 billion to help replenish a government deposit insurance fund that was drained of $16 billion this year after three banks collapsed, sending its shares 1.8% lower.
Advanced Micro DevicesAMD.O shed 6.9%, after opening higher on forecasting an upbeat finish to the year and on plans to launch AI chips that could compete with market leader Nvidia.
US loses top AAA credit rating from Fitch https://tmsnrt.rs/3OgSgb2
Stocks lead recovery in 2023 https://tmsnrt.rs/3Kmeg2Y
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru and David French in New York; Editing by Saumyadeb Chakrabarty and Vinay Dwivedi)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. US/ Abella of Investment Partners Asset Management said the rising yield could encourage profit-taking in these high-growth tech stocks, especially given how their recent growth spurt has further stretched earnings multiples. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By David French and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street dropped on Wednesday, as investors embarked on a round of profit-taking in response to the move by rating agency Fitch to downgrade the U.S. government's credit rating. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By David French and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street dropped on Wednesday, as investors embarked on a round of profit-taking in response to the move by rating agency Fitch to downgrade the U.S. government's credit rating. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By David French and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street dropped on Wednesday, as investors embarked on a round of profit-taking in response to the move by rating agency Fitch to downgrade the U.S. government's credit rating. Fitch was the second major agency to cut the country's rating.
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14555.0
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2023-08-02 00:00:00 UTC
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AI chip firm Tenstorrent raises $100 mln from Hyundai, Samsung
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AAPL
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https://www.nasdaq.com/articles/ai-chip-firm-tenstorrent-raises-%24100-mln-from-hyundai-samsung
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nan
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nan
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By Stephen Nellis
Aug 2 (Reuters) - Tenstorrent, a Canadian startup headed by chip industry veteran Jim Keller that is developing artificial intelligence chips, said on Wednesday it has raised $100 million from Hyundai Motor Group 005380.KS and a Samsung 005930.KS investment fund, among others.
Tenstorrent, which before this funding had already raised $234.5 million was valued at $1 billion, is one of several upstarts looking to challenge Nvidia NVDA.O, the market leader in supplying chips to develop artificial intelligence products like ChatGPT.
Keller, who has previously developed chips for Apple AAPL.O, Tesla TSLA.O and Intel INTC.O, took over as the startup's CEO earlier this year.
Tenstorrent said it has raised $30 million from Hyundai and $20 million from Kia 000270.KS, with the remaining $50 million coming from Samsung's Catalyst Fund and other investors including Fidelity Ventures, Eclipse Ventures, Epiq Capital and Maverick Capital, among others.
The move marks a return to car technology for Tesla veteran Keller. While Tenstorrent is developing chips to challenge Nvidia in data centers, it is also developing AI chips for a range of other uses, including a deal announced in May with LG 066570.KS for chips that could be used in smart televisions.
The funding round was structured as a debt that will later convert to stock, meaning that Tenstorrent will not formally have a new valuation until it holds another round of equity fundraising, which it says it expects to do next year. Tenstorrent declined to comment on details of the convertible debt.
Tenstorrent makes its own AI chips, but also sells its intellectual property and other technology to customers looking to make their own AI chips. Hyundai established a semiconductor development group last year and said that it plans to use Tenstorrent technology in "future Hyundai, Kia and Genesis" vehicles.
“With this investment, the Group expects to develop optimized but differentiated semiconductor technology that will aid future mobilities and strengthen internal capabilities in AI technology development," Heung-soo Kim, executive vice president and head of the global strategy office at Hyundai Motor Group, said in a statement.
(Reporting by Stephen Nellis in San Franicsco Editing by Marguerita Choy)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Keller, who has previously developed chips for Apple AAPL.O, Tesla TSLA.O and Intel INTC.O, took over as the startup's CEO earlier this year. Tenstorrent, which before this funding had already raised $234.5 million was valued at $1 billion, is one of several upstarts looking to challenge Nvidia NVDA.O, the market leader in supplying chips to develop artificial intelligence products like ChatGPT. “With this investment, the Group expects to develop optimized but differentiated semiconductor technology that will aid future mobilities and strengthen internal capabilities in AI technology development," Heung-soo Kim, executive vice president and head of the global strategy office at Hyundai Motor Group, said in a statement.
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Keller, who has previously developed chips for Apple AAPL.O, Tesla TSLA.O and Intel INTC.O, took over as the startup's CEO earlier this year. By Stephen Nellis Aug 2 (Reuters) - Tenstorrent, a Canadian startup headed by chip industry veteran Jim Keller that is developing artificial intelligence chips, said on Wednesday it has raised $100 million from Hyundai Motor Group 005380.KS and a Samsung 005930.KS investment fund, among others. Tenstorrent said it has raised $30 million from Hyundai and $20 million from Kia 000270.KS, with the remaining $50 million coming from Samsung's Catalyst Fund and other investors including Fidelity Ventures, Eclipse Ventures, Epiq Capital and Maverick Capital, among others.
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Keller, who has previously developed chips for Apple AAPL.O, Tesla TSLA.O and Intel INTC.O, took over as the startup's CEO earlier this year. By Stephen Nellis Aug 2 (Reuters) - Tenstorrent, a Canadian startup headed by chip industry veteran Jim Keller that is developing artificial intelligence chips, said on Wednesday it has raised $100 million from Hyundai Motor Group 005380.KS and a Samsung 005930.KS investment fund, among others. While Tenstorrent is developing chips to challenge Nvidia in data centers, it is also developing AI chips for a range of other uses, including a deal announced in May with LG 066570.KS for chips that could be used in smart televisions.
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Keller, who has previously developed chips for Apple AAPL.O, Tesla TSLA.O and Intel INTC.O, took over as the startup's CEO earlier this year. By Stephen Nellis Aug 2 (Reuters) - Tenstorrent, a Canadian startup headed by chip industry veteran Jim Keller that is developing artificial intelligence chips, said on Wednesday it has raised $100 million from Hyundai Motor Group 005380.KS and a Samsung 005930.KS investment fund, among others. Tenstorrent, which before this funding had already raised $234.5 million was valued at $1 billion, is one of several upstarts looking to challenge Nvidia NVDA.O, the market leader in supplying chips to develop artificial intelligence products like ChatGPT.
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14556.0
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2023-08-02 00:00:00 UTC
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Qualcomm forecasts dull fourth-quarter revenue on weak smartphone demand
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AAPL
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https://www.nasdaq.com/articles/qualcomm-forecasts-dull-fourth-quarter-revenue-on-weak-smartphone-demand
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nan
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nan
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Adds share movement in paragraph 5
Aug 2 (Reuters) - Qualcomm QCOM.O forecast fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth.
Demand for consumer electronics has also been hampered by a slower-than-expected economic recovery in China. Smartphone shipments in the world's second largest economy were down 5% in the June quarter, according to Canalys data.
Qualcomm said its forecast also takes into account the impact of the macroeconomic headwinds, weaker global handset units and channel inventory drawdown.
The company expects fourth-quarter revenue of $8.1 billion to $8.9 billion. Analysts polled by Refinitiv expected revenue of $8.70 billion.
Its shares were down nearly 2% in choppy trading after the bell
At a conference in May, Qualcomm CEO Cristiano Amon had said he has not seen signs of healthy consumption in China yet and the smartphone industry recovery was "a number of quarters out."
Qualcomm rival MediaTek last week warned that customers are "cautious" with their purchases due to tepid end-user demand.
Revenue at Qualcomm's mainstay handset chip business fell 25% to $5.26 billion in the third quarter and adjusted revenue of $8.44 billion missed estimates of $8.50 billion.
It forecast adjusted fourth-quarter earnings per share in the range of $1.80 and $2, compared to estimates of $1.91.
Automotive sector was a bright spot for the company that has been looking to diversify beyond smartphone chips. Revenue from the sector rose 13% on rising electrification of vehicles.
(Reporting by Chavi Mehta in Bengaluru and Stephen Nellis in San Francisco; Editing by Arun Koyyur)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 5 Aug 2 (Reuters) - Qualcomm QCOM.O forecast fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth. Qualcomm said its forecast also takes into account the impact of the macroeconomic headwinds, weaker global handset units and channel inventory drawdown. Its shares were down nearly 2% in choppy trading after the bell At a conference in May, Qualcomm CEO Cristiano Amon had said he has not seen signs of healthy consumption in China yet and the smartphone industry recovery was "a number of quarters out."
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Adds share movement in paragraph 5 Aug 2 (Reuters) - Qualcomm QCOM.O forecast fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth. The company expects fourth-quarter revenue of $8.1 billion to $8.9 billion. Revenue at Qualcomm's mainstay handset chip business fell 25% to $5.26 billion in the third quarter and adjusted revenue of $8.44 billion missed estimates of $8.50 billion.
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Adds share movement in paragraph 5 Aug 2 (Reuters) - Qualcomm QCOM.O forecast fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth. The company expects fourth-quarter revenue of $8.1 billion to $8.9 billion. Revenue at Qualcomm's mainstay handset chip business fell 25% to $5.26 billion in the third quarter and adjusted revenue of $8.44 billion missed estimates of $8.50 billion.
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Adds share movement in paragraph 5 Aug 2 (Reuters) - Qualcomm QCOM.O forecast fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth. The company expects fourth-quarter revenue of $8.1 billion to $8.9 billion. Revenue at Qualcomm's mainstay handset chip business fell 25% to $5.26 billion in the third quarter and adjusted revenue of $8.44 billion missed estimates of $8.50 billion.
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14557.0
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2023-08-02 00:00:00 UTC
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JP Morgan Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/jp-morgan-maintains-apple-aapl-overweight-recommendation-0
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nan
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nan
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Fintel reports that on August 2, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 1.14% Upside
As of August 1, 2023, the average one-year price target for Apple is 198.70. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents an increase of 1.14% from its latest reported closing price of 196.45.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6386 funds or institutions reporting positions in Apple. This is a decrease of 24 owner(s) or 0.37% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 34.97%. Total shares owned by institutions decreased in the last three months by 2.11% to 9,898,898K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.94% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.80% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.48% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
Form of CEO Restricted Stock Unit Award Agreement under 20
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 2, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 34.97%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 2, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 34.97%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 2, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 34.97%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 2, 2023, JP Morgan maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 34.97%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14558.0
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2023-08-02 00:00:00 UTC
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PayPal's underwhelming margin eclipses gains from upbeat consumer spending
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AAPL
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https://www.nasdaq.com/articles/paypals-underwhelming-margin-eclipses-gains-from-upbeat-consumer-spending
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nan
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nan
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Rewrites throughout with details from results, adds shares
Aug 2 (Reuters) - PayPal Holdings PYPL.O missed its estimate for second-quarter operating margin on Wednesday, casting a pall over resilient consumer spending trends, sending the payments firm's shares down nearly 8% in extended trading.
Underwhelming margins at PayPal have been worrying analysts in recent quarters. The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple AAPL.O.
PayPal's adjusted operating margin for the quarter came in at 21.4%, missing its forecast of 22%.
Even as signs of inflation cooling emerge, macroeconomic pressures have squeezed household budgets this year, particularly among the lower-income bracket, weighing on shoppers' purchasing power.
U.S. card giants - MastercardMA.N and American Express AXP.N - who are similarly dependent on consumer strength have also given muted outlooks for the rest of the year amid persistent worries of a looming economic slowdown.
PayPal also expects its adjusted profit per share in the current quarter to be in a range of $1.22 and $1.24 compared with analysts' estimates of $1.22.
In a bright spot, PayPal's total payment volume surged 11% in the second quarter to $376.5 billion, benefiting from resilient consumer spending trends.
Banking on the continued steady use of its platform, PayPal said it expects third-quarter revenue at about $7.4 billion, above analysts' average estimate of $7.32 billion, according to Refinitiv data.
The company's revenue jumped to $7.3 billion in the second quarter ended June 30, compared with $6.8 billion a year earlier.
The firm earned $1.16 per share on an adjusted basis, in line with Wall Street expectations.
In May, PayPal cut its forecast for annual adjusted operating margin, a move that eclipsed its profit forecast raise.
(Reporting by Sri Hari N S and Manya Saini in Bengaluru; Editing by Maju Samuel)
((SriHari.NS@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple AAPL.O. Even as signs of inflation cooling emerge, macroeconomic pressures have squeezed household budgets this year, particularly among the lower-income bracket, weighing on shoppers' purchasing power. U.S. card giants - MastercardMA.N and American Express AXP.N - who are similarly dependent on consumer strength have also given muted outlooks for the rest of the year amid persistent worries of a looming economic slowdown.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple AAPL.O. Rewrites throughout with details from results, adds shares Aug 2 (Reuters) - PayPal Holdings PYPL.O missed its estimate for second-quarter operating margin on Wednesday, casting a pall over resilient consumer spending trends, sending the payments firm's shares down nearly 8% in extended trading. PayPal's adjusted operating margin for the quarter came in at 21.4%, missing its forecast of 22%.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple AAPL.O. Rewrites throughout with details from results, adds shares Aug 2 (Reuters) - PayPal Holdings PYPL.O missed its estimate for second-quarter operating margin on Wednesday, casting a pall over resilient consumer spending trends, sending the payments firm's shares down nearly 8% in extended trading. PayPal also expects its adjusted profit per share in the current quarter to be in a range of $1.22 and $1.24 compared with analysts' estimates of $1.22.
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The company's low-margin business products have grown strongly, while growth in its branded products has slowed due to increased pressure from competitors like Apple AAPL.O. Rewrites throughout with details from results, adds shares Aug 2 (Reuters) - PayPal Holdings PYPL.O missed its estimate for second-quarter operating margin on Wednesday, casting a pall over resilient consumer spending trends, sending the payments firm's shares down nearly 8% in extended trading. PayPal's adjusted operating margin for the quarter came in at 21.4%, missing its forecast of 22%.
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14559.0
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2023-08-02 00:00:00 UTC
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After Hours Most Active for Aug 2, 2023 : IGSB, QQQ, AAPL, PYPL, BAC, SHOP, ELAN, BMY, TLT, JBLU, BTU, SU
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-2-2023-%3A-igsb-qqq-aapl-pypl-bac-shop-elan-bmy-tlt-jblu-btu
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -14.83 to 15,355.91. The total After hours volume is currently 77,753,866 shares traded.
The following are the most active stocks for the after hours session:
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is unchanged at $50.06, with 4,592,365 shares traded. This represents a 2.96% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +0.05 at $374.44, with 2,822,094 shares traded. This represents a 47.27% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.37 at $192.21, with 2,720,859 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.19. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 1.19 per share, which represents a 120 percent increase over the EPS one Year Ago
PayPal Holdings, Inc. (PYPL) is -6.38 at $66.82, with 2,686,061 shares traded. Smarter Analyst Reports: Post 65% Decline, What’s Ahead for PayPal Stock?
Bank of America Corporation (BAC) is -0.08 at $31.11, with 2,519,324 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.82. BAC's current last sale is 88.89% of the target price of $35.
Shopify Inc. (SHOP) is -1.38 at $61.05, with 2,499,921 shares traded. SHOP's current last sale is 93.92% of the target price of $65.
Elanco Animal Health Incorporated (ELAN) is +0.015 at $11.73, with 2,451,868 shares traded.ELAN is scheduled to provide an earnings report on 8/7/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 0.05 per share, which represents a 36 percent increase over the EPS one Year Ago
Bristol-Myers Squibb Company (BMY) is unchanged at $61.75, with 2,388,703 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.07. BMY's current last sale is 81.79% of the target price of $75.5.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.07 at $97.02, with 2,276,823 shares traded. This represents a 5.63% increase from its 52 Week Low.
JetBlue Airways Corporation (JBLU) is unchanged at $6.90, with 1,940,760 shares traded. JBLU's current last sale is 86.25% of the target price of $8.
Peabody Energy Corporation (BTU) is unchanged at $21.72, with 1,903,059 shares traded. As reported by Zacks, the current mean recommendation for BTU is in the "buy range".
Suncor Energy Inc. (SU) is +0.255 at $30.42, with 1,726,565 shares traded. As reported by Zacks, the current mean recommendation for SU is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.37 at $192.21, with 2,720,859 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is unchanged at $50.06, with 4,592,365 shares traded.
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Apple Inc. (AAPL) is -0.37 at $192.21, with 2,720,859 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is unchanged at $50.06, with 4,592,365 shares traded.
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Apple Inc. (AAPL) is -0.37 at $192.21, with 2,720,859 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 1.19 per share, which represents a 120 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.37 at $192.21, with 2,720,859 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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14560.0
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2023-08-02 00:00:00 UTC
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US STOCKS-Wall Street ends lower as investors step back after Fitch downgrades US
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-as-investors-step-back-after-fitch-downgrades-us
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nan
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nan
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By David French
Aug 2 (Reuters) - Wall Street closed down on Wednesday, with the S&P 500 and Nasdaq Composite lower for a second straight day, with investors taking profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating.
Fitch downgraded the United States to AA+ from AAA late on Tuesday, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country's rating. In 2011 Standard & Poor's stripped the country of its triple-A grade.
Several major brokerages said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was now stronger than it was in 2011.
July was the fifth straight month of gains for the benchmark S&P 500 .SPX and the tech-heavy Nasdaq Composite .IXIC, driven by better-than-expected earnings and hopes of a soft landing for the U.S. economy.
However, with markets entering a seasonally slow August, the Fitch downgrade offered an opportunity for investors to take a breather.
"Sometimes it's healthy to have this digestion in the market, as it brings down valuations a bit and it allows for dip-buying," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina.
Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. US/
The technology index .SPLRCT was also the worst performer of the 11 major S&P sectors.
Yields being above 4% is "not what the market wants to see", according to LPL's Krosby, who also predicted investors will soon look beyond Fitch's downgrade and turn their focus to big tech company earnings due after the close on Thursday.
"The market is now going to focus on Amazon.com Inc AMZN.O and Apple tomorrow afternoon, and then on the payroll report on Friday, and we'll say goodbye to Fitch," Krosby said.
ROBOT
Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
Despite lingering fears of a recession, corporate America has continued to perform well. With around two-thirds of the S&P 500 having already reported, 79.9% have posted earnings above analysts' expectations, per Refinitiv I/B/E/S.
This puts the quarter on track for the highest earnings beat rate since the third quarter of 2021, per the data provider.
On the earnings front, CVS Health CorpCVS.Ngained after beating Wall Street estimates for quarterly profit, boosted by strength in its pharmacy benefit management unit and lower-than-expected medical costs in its health insurance business.
EmersonEMR.N climbed after the industrial software firm raised its annual profit outlook as companies increase spending on automation in response to a tight labor market.
Elsewhere, Wells FargoWFC.N said it expects to pay as much as $1.8 billion to help replenish a government deposit insurance fund that was drained of $16 billion this year after three banks collapsed, sending its shares lower.
Advanced Micro DevicesAMD.O slipped over concerns that the chip designer's targets for an artificial intelligence (AI) ramp-up may be too ambitious. The worries overshadows the company forecasting an upbeat finish to the year.
US loses top AAA credit rating from Fitch https://tmsnrt.rs/3OgSgb2
Stocks lead recovery in 2023 https://tmsnrt.rs/3Kmeg2Y
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru and David French in New York; Editing by Saumyadeb Chakrabarty, Vinay Dwivedi and David Gregorio)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. "Sometimes it's healthy to have this digestion in the market, as it brings down valuations a bit and it allows for dip-buying," said Quincy Krosby, chief global strategist for LPL Financial in Charlotte, North Carolina. Yields being above 4% is "not what the market wants to see", according to LPL's Krosby, who also predicted investors will soon look beyond Fitch's downgrade and turn their focus to big tech company earnings due after the close on Thursday.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street closed down on Wednesday, with the S&P 500 and Nasdaq Composite lower for a second straight day, with investors taking profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street closed down on Wednesday, with the S&P 500 and Nasdaq Composite lower for a second straight day, with investors taking profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. Yields being above 4% is "not what the market wants to see", according to LPL's Krosby, who also predicted investors will soon look beyond Fitch's downgrade and turn their focus to big tech company earnings due after the close on Thursday.
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Rate-sensitive megacap stocks, including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as the yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months. By David French Aug 2 (Reuters) - Wall Street closed down on Wednesday, with the S&P 500 and Nasdaq Composite lower for a second straight day, with investors taking profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating. Fitch was the second major agency to cut the country's rating.
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14561.0
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2023-08-02 00:00:00 UTC
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Notable Wednesday Option Activity: PINS, GKOS, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-pins-gkos-aapl
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Pinterest Inc (Symbol: PINS), where a total of 132,922 contracts have traded so far, representing approximately 13.3 million underlying shares. That amounts to about 128.5% of PINS's average daily trading volume over the past month of 10.3 million shares. Particularly high volume was seen for the $30 strike call option expiring August 04, 2023, with 9,302 contracts trading so far today, representing approximately 930,200 underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $30 strike highlighted in orange:
Glaukos Corp (Symbol: GKOS) options are showing a volume of 6,711 contracts thus far today. That number of contracts represents approximately 671,100 underlying shares, working out to a sizeable 127.4% of GKOS's average daily trading volume over the past month, of 526,950 shares. Particularly high volume was seen for the $75 strike put option expiring August 18, 2023, with 1,700 contracts trading so far today, representing approximately 170,000 underlying shares of GKOS. Below is a chart showing GKOS's trailing twelve month trading history, with the $75 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 624,966 contracts thus far today. That number of contracts represents approximately 62.5 million underlying shares, working out to a sizeable 125% of AAPL's average daily trading volume over the past month, of 50.0 million shares. Especially high volume was seen for the $200 strike call option expiring August 04, 2023, with 37,648 contracts trading so far today, representing approximately 3.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for PINS options, GKOS options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Cheap Dividend Stocks
SJM Price Target
COP YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $200 strike call option expiring August 04, 2023, with 37,648 contracts trading so far today, representing approximately 3.8 million underlying shares of AAPL. Below is a chart showing GKOS's trailing twelve month trading history, with the $75 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 624,966 contracts thus far today. That number of contracts represents approximately 62.5 million underlying shares, working out to a sizeable 125% of AAPL's average daily trading volume over the past month, of 50.0 million shares.
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Below is a chart showing GKOS's trailing twelve month trading history, with the $75 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 624,966 contracts thus far today. That number of contracts represents approximately 62.5 million underlying shares, working out to a sizeable 125% of AAPL's average daily trading volume over the past month, of 50.0 million shares. Especially high volume was seen for the $200 strike call option expiring August 04, 2023, with 37,648 contracts trading so far today, representing approximately 3.8 million underlying shares of AAPL.
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That number of contracts represents approximately 62.5 million underlying shares, working out to a sizeable 125% of AAPL's average daily trading volume over the past month, of 50.0 million shares. Especially high volume was seen for the $200 strike call option expiring August 04, 2023, with 37,648 contracts trading so far today, representing approximately 3.8 million underlying shares of AAPL. Below is a chart showing GKOS's trailing twelve month trading history, with the $75 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 624,966 contracts thus far today.
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That number of contracts represents approximately 62.5 million underlying shares, working out to a sizeable 125% of AAPL's average daily trading volume over the past month, of 50.0 million shares. Especially high volume was seen for the $200 strike call option expiring August 04, 2023, with 37,648 contracts trading so far today, representing approximately 3.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $200 strike highlighted in orange: For the various different available expirations for PINS options, GKOS options, or AAPL options, visit StockOptionsChannel.com.
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14562.0
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2023-08-02 00:00:00 UTC
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Apple's high-yield savings account hits over $10 bln in customer deposits
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AAPL
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https://www.nasdaq.com/articles/apples-high-yield-savings-account-hits-over-%2410-bln-in-customer-deposits
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nan
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nan
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Aug 2 (Reuters) - Apple’s AAPL.O high-yield savings account offered by its partner Goldman Sachs GS.N has reached over $10 billion in customer deposits, the technology giant said on Wednesday.
The deposit account, which was launched in April, lets Apple Card users earn an annual percentage yield of 4.15% on savings accounts.
U.S. lenders have had to offer higher rates on customer deposits to prevent clients from moving their funds to other high-yield alternatives, especially after an industry crisis earlier this year shook customers' faith in the financial health of banks.
In March, Apple also launched its "buy now, pay later" (BNPL) service in the United States, expanding its footprint in the financial technology space.
(Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai)
((Manya.Saini@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 2 (Reuters) - Apple’s AAPL.O high-yield savings account offered by its partner Goldman Sachs GS.N has reached over $10 billion in customer deposits, the technology giant said on Wednesday. U.S. lenders have had to offer higher rates on customer deposits to prevent clients from moving their funds to other high-yield alternatives, especially after an industry crisis earlier this year shook customers' faith in the financial health of banks. In March, Apple also launched its "buy now, pay later" (BNPL) service in the United States, expanding its footprint in the financial technology space.
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Aug 2 (Reuters) - Apple’s AAPL.O high-yield savings account offered by its partner Goldman Sachs GS.N has reached over $10 billion in customer deposits, the technology giant said on Wednesday. The deposit account, which was launched in April, lets Apple Card users earn an annual percentage yield of 4.15% on savings accounts. In March, Apple also launched its "buy now, pay later" (BNPL) service in the United States, expanding its footprint in the financial technology space.
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Aug 2 (Reuters) - Apple’s AAPL.O high-yield savings account offered by its partner Goldman Sachs GS.N has reached over $10 billion in customer deposits, the technology giant said on Wednesday. U.S. lenders have had to offer higher rates on customer deposits to prevent clients from moving their funds to other high-yield alternatives, especially after an industry crisis earlier this year shook customers' faith in the financial health of banks. (Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai) ((Manya.Saini@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 2 (Reuters) - Apple’s AAPL.O high-yield savings account offered by its partner Goldman Sachs GS.N has reached over $10 billion in customer deposits, the technology giant said on Wednesday. The deposit account, which was launched in April, lets Apple Card users earn an annual percentage yield of 4.15% on savings accounts. U.S. lenders have had to offer higher rates on customer deposits to prevent clients from moving their funds to other high-yield alternatives, especially after an industry crisis earlier this year shook customers' faith in the financial health of banks.
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14563.0
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2023-08-02 00:00:00 UTC
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Apple Stock: Buy or Sell Ahead of This Week's Earnings Report?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-or-sell-ahead-of-this-weeks-earnings-report
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nan
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nan
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Apple (AAPL) is scheduled to report its fiscal Q3 earnings after the close this Thursday, Aug. 3. The stock has soared 48% this year, which has lifted its market cap above $3 trillion - and investors should keep a close eye on the upcoming earnings to gauge whether the Cupertino-based company can back up its bullish price action with an equally impressive financial performance.
Apple’s earnings arrive toward the end of the reporting season, and along with Amazon (AMZN), the company's results will wrap up this round of quarterly earnings for FAANG companies. The results have been a mixed bag so far, as Netflix (NFLX) disappointed markets with its Q2 earnings, while Meta Platforms (META) and Alphabet (GOOG) posted better-than-expected earnings.
Analysts Expect Apple’s Revenues to Fall in Q3
Ahead of the report, analysts expect Apple’s revenues to fall 1.6% in the quarter, which would mark the third consecutive quarter of revenue declines, and the steepest drop in its fiscal third-quarter revenues since 2016.
Consensus estimates call for EPS of $1.19 in the quarter, down slightly from last year's $1.20 per share.
www.barchart.com
During Apple’searnings call expect investors to look closely at the trajectory of iPhone sales – particularly the demand environment in China, where the economic rebound has largely disappointed. Management might also offer insights into demand for its products in India, which CEO Tim Cook described as a “hugely exciting market” and a “major focus” during the fiscal first-quarterearnings callearlier this year.
Notably, India became a top-five market for Apple iPhones during the June quarter, according to data from Counterpoint Research. Strong demand in India – which overtook China to become the world’s most populous country, and boasts of a growing and aspirational middle class – could help Apple beat the slowdown blues in some of its other major markets.
That said, China is simultaneously looking to support its sagging economic growth and has taken steps to revive consumption, so these demand-related concerns for Apple may well be suitably priced in at current levels.
Wall Street Stays Bullish on Apple Ahead of Earnings
Overwhelmingly, Wall Street analysts are bullish on Apple heading into its fiscal third-quarter earnings report.
Earlier this week, Piper Sandler analyst Harsh Kumar maintained his overweight rating on Apple, while raising the target price from $180 to $220. Like others, Kumar believes that concerns over iPhone demand in China are overblown, and expects strong sales in India to offset any slowdown in China.
Other firms are similarly optimistic. Baird analyst William Power, for instance, just raised the stock's target price from $180 to $204, and said he expects the iPhone maker to post solid earnings in the fiscal third quarter. Baird also underlined the fact that AAPL stock historically outperforms between August and mid-September – which is when the company usually releases its new iPhone every year.
Overall, Wall Street analysts rate Apple’s stock as a Strong Buy ahead of its earnings report, with not a single Sell rating out there:
www.barchart.com
Of the 29 analysts that cover AAPL, 19 rate it a Strong Buy, 3 a Moderate Buy, and 7 a Hold - even as its mean target price of $197.22 is only about 2% above current stock prices.
That said, given the monstrous tech rally in 2023, analyst action has mostly lagged behind these stocks' price movement, and tech companies including Meta and Alphabet have scored price-target increases after their recent earnings reports.
Finally, as for Apple's valuation, the stock trades at a forward price/earnings multiple of 32.6x - ahead of its historical averages, which stand at 27.2x over the last three years and 23.7x over the last five years.
Warren Buffett Loves Apple's Business
Outside the analyst space, there's one other high-profile endorsement worth noting: Warren Buffett loves Apple stock.
Currently, the iPhone maker is the single biggest holding for Berkshire Hathaway (BRK.B). Buffett did sell some Apple shares in 2020, but the “Oracle of Omaha” said during the 2021 shareholder meeting that the decision was “probably a mistake.”
The billionaire investor reiterated his optimism on the stock at this year’s annual meeting, describing Apple as “a better business than any we own."
AAPL Stock Forecast: Should You Buy or Sell?
Looking at the already stretched valuation multiples, I don’t believe there is scope for AAPL stock to run much higher from these levels – at least, not in the short term.
However, the stock still looks like a good buy for long-term investors. Apple is an iconic brand with appeal across the world, and 2 billion active installed devices. This vast user base is a captive market for Apple as it diversifies into multiple other industries - including financials, where it recently launched a savings account with 4.15% APY. The tech giant is also eyeing the healthcare industry, and as far back as 2019 Cook said that improving people’s health would be "Apple’s greatest contribution to mankind.”
These ventures - along with Apple's foray into augmented reality (AR) headsets, and further expansion into emerging markets - could prove to be net positives, though they'll likely take some time to yield results.
To sum it up, Apple's stock could experience some heightened volatility in the short term after its upcoming earnings release, as valuations appear somewhat stretched at current levels. However, beyond that imminent event risk, I believe AAPL offers reasonably good returns across market cycles in the long term, and remains a buy over longer time horizons.
On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , GOOG , META , BABA , BRK.B . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is scheduled to report its fiscal Q3 earnings after the close this Thursday, Aug. 3. Baird also underlined the fact that AAPL stock historically outperforms between August and mid-September – which is when the company usually releases its new iPhone every year. Overall, Wall Street analysts rate Apple’s stock as a Strong Buy ahead of its earnings report, with not a single Sell rating out there: www.barchart.com Of the 29 analysts that cover AAPL, 19 rate it a Strong Buy, 3 a Moderate Buy, and 7 a Hold - even as its mean target price of $197.22 is only about 2% above current stock prices.
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Overall, Wall Street analysts rate Apple’s stock as a Strong Buy ahead of its earnings report, with not a single Sell rating out there: www.barchart.com Of the 29 analysts that cover AAPL, 19 rate it a Strong Buy, 3 a Moderate Buy, and 7 a Hold - even as its mean target price of $197.22 is only about 2% above current stock prices. Apple (AAPL) is scheduled to report its fiscal Q3 earnings after the close this Thursday, Aug. 3. Baird also underlined the fact that AAPL stock historically outperforms between August and mid-September – which is when the company usually releases its new iPhone every year.
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Overall, Wall Street analysts rate Apple’s stock as a Strong Buy ahead of its earnings report, with not a single Sell rating out there: www.barchart.com Of the 29 analysts that cover AAPL, 19 rate it a Strong Buy, 3 a Moderate Buy, and 7 a Hold - even as its mean target price of $197.22 is only about 2% above current stock prices. Apple (AAPL) is scheduled to report its fiscal Q3 earnings after the close this Thursday, Aug. 3. Baird also underlined the fact that AAPL stock historically outperforms between August and mid-September – which is when the company usually releases its new iPhone every year.
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Overall, Wall Street analysts rate Apple’s stock as a Strong Buy ahead of its earnings report, with not a single Sell rating out there: www.barchart.com Of the 29 analysts that cover AAPL, 19 rate it a Strong Buy, 3 a Moderate Buy, and 7 a Hold - even as its mean target price of $197.22 is only about 2% above current stock prices. Apple (AAPL) is scheduled to report its fiscal Q3 earnings after the close this Thursday, Aug. 3. Baird also underlined the fact that AAPL stock historically outperforms between August and mid-September – which is when the company usually releases its new iPhone every year.
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2023-08-02 00:00:00 UTC
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3 Top Tech Stocks to Buy in August
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-in-august
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nan
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nan
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The tech market has been in recovery mode this year after an economic downturn caused a sell-off in 2022. Easing inflation and advances in technology, such as artificial intelligence (AI), have Wall Street particularly bullish. As a result, now is an excellent time to consider expanding your tech holdings before it's too late.
Thanks to its ever-developing nature, the tech market can be a lucrative place to invest. The sector is known for its wealth of growth stocks that can almost guarantee long-term gains.
So if you're looking for a reliable way to expand your portfolio, here are three top tech stocks to buy in August.
1. Apple
Shares of Apple (NASDAQ: AAPL) gained 310% since 2018, more than many of the biggest names in tech. The company attracted millions of customers with its priority on quality and its interconnected ecosystem of products. Consumers have proven their preference for Apple's devices time and time again, most recently amid macroeconomic headwinds.
According to Counterpoint Research, U.S. smartphone shipments declined 24% year over year in the second quarter of 2023. Consequently, companies like Samsung and Motorola experienced stagnating or declining market share. But the same period saw Apple outperform its competitors by growing its market share from 52% to 55%.
The iPhone's growing dominance strengthens Apple's long-term outlook since the smartphone has become its best tool for attracting consumers to its other products and services. With recent expansions into virtual/augmented reality (VR/AR) and AI, the company likely has a lucrative future, making its stock a compelling buy this month.
2. Amazon
Few companies were hit as hard as Amazon (NASDAQ: AMZN) last year. Reductions in consumer spending brought steep declines in its e-commerce earnings, with its stock plunging 50% in 2022. However, improving inflation and an expansion into AI have regained investor support.
Since Jan. 1, shares have climbed about 58%. The monster rally has come as the company strengthened its position in the $137 billion AI market, projected to have a compound annual growth rate of 37% through 2030.
This year, Amazon added several new AI services to its cloud platform, Amazon Web Services (AWS), attracting thousands of customers.
Companies like Sony and Ryanair signed on to AWS, drawn in by AI tools such as Bedrock, which uses a language model similar to OpenAI's ChatGPT to help clients create custom chatbots and image generators. Its other AI tools cater to software developers and the healthcare industry.
Moreover, Amazon is diversifying its position in AI by developing its own chips. The company is quickly expanding in the industry and has the resources to potentially outperform the competition over the long term, making its stock too good to ignore.
3. Advanced Micro Devices
Recent technological advances have made it crucial to add a chipmaker to your list of holdings. High-growth industries such as cloud computing, AI, VR/AR, and others will increasingly require powerful chips, with demand likely to soar.
As a result, semiconductor companies like Advanced Micro Devices (NASDAQ: AMD) are well positioned to significantly benefit from the growth of multiple markets.
AMD's stock skyrocketed some 500% in the last five years as its hardware has become integral to many devices and online platforms. The company produces custom chips that exclusively power Sony's PlayStation 5 and Microsoft's Xbox Series X|S game consoles. AMD's graphics processing units (GPUs) are used to run data centers worldwide, hosting cloud services like Microsoft's Azure and Alphabet's Google Cloud.
The current boom in AI has bolstered AMD's outlook, with the company heavily investing in the sector. In June, AMD unveiled its most powerful GPU to date, meant to compete directly with Nvidia's offerings. If the new chip can match the competition's performance and launch at an attractive price, it could be a massive win for AMD.
With solid positions across tech and a focus on AI, August is a good month to consider AMD shares.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Shares of Apple (NASDAQ: AAPL) gained 310% since 2018, more than many of the biggest names in tech. Companies like Sony and Ryanair signed on to AWS, drawn in by AI tools such as Bedrock, which uses a language model similar to OpenAI's ChatGPT to help clients create custom chatbots and image generators. The company is quickly expanding in the industry and has the resources to potentially outperform the competition over the long term, making its stock too good to ignore.
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Apple Shares of Apple (NASDAQ: AAPL) gained 310% since 2018, more than many of the biggest names in tech. This year, Amazon added several new AI services to its cloud platform, Amazon Web Services (AWS), attracting thousands of customers. Advanced Micro Devices Recent technological advances have made it crucial to add a chipmaker to your list of holdings.
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Apple Shares of Apple (NASDAQ: AAPL) gained 310% since 2018, more than many of the biggest names in tech. With recent expansions into virtual/augmented reality (VR/AR) and AI, the company likely has a lucrative future, making its stock a compelling buy this month. This year, Amazon added several new AI services to its cloud platform, Amazon Web Services (AWS), attracting thousands of customers.
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Apple Shares of Apple (NASDAQ: AAPL) gained 310% since 2018, more than many of the biggest names in tech. This year, Amazon added several new AI services to its cloud platform, Amazon Web Services (AWS), attracting thousands of customers. Moreover, Amazon is diversifying its position in AI by developing its own chips.
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14565.0
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2023-08-02 00:00:00 UTC
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Stocks Hit ‘Escape Velocity,’ Blasting Into a New Bull Market
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AAPL
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https://www.nasdaq.com/articles/stocks-hit-escape-velocity-blasting-into-a-new-bull-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Back in October 2022, when this stock market rally got started, very few investors believed in it. Ten months later, though, that’s no longer the case. And we think the bull market bandwagon is about to get even bigger as stocks hit “escape velocity.”
Originally a physics term, escape velocity describes the speed needed for an object to escape the influence of gravity and fly into space. After successfully breaking away from that downward pull, the object is free to move further into space.
And we think stocks have hit “escape velocity.”
That is, we think stocks have rallied long and hard enough that there is no longer a chance they revisit their lows. Instead, the market will just keep floating upward.
We think the market officially hit escape velocity two days ago, on the final trading day of July. The S&P 500 rallied yet again, closing out July on a positive note.
And the market has now officially posted a positive return for five straight months.
Historically speaking, five-month winning streaks are rare and very bullish for stocks.
Escape Velocity Marks a New Bull Market
Since 1949, the S&P 500 has recorded about 30 different five-month winning streaks. More than 90% of the time, the market was higher nine, 12, 18, and 24 months later. Average returns over the following year are about 10%. Average returns over the following two years are about 14%.
More importantly, the first five-month winning streak after a bear market has historically always marked the end of the bear market – or the moment that stocks entered “escape velocity” in a powerful new bull market.
After the 2008 financial crisis, stocks notched their first five-month winning streak in July 2009. Stocks went on to soar over the next 10 years.
After the dot-com crash, stocks reached their first five-month winning streak in July 2003. Stocks went on to soar for the next four years.
And after the early 1990s recession, stocks achieved their first five-month winning streak in March 1991. Stocks went on to soar for the next 10 years.
Time and time again, stocks’ first five-month winning streak after a bear market always marks the start of a new multi-year bull market.
We’re confident this time will not be different.
Stocks have entered escape velocity – and it is up, up, and away from here.
The Final Word
That’s why I want to tell you about one of my favorite investments for this new bull market.
One great prospective investment is the very company that started this whole stock boom – OpenAI, the creator of ChatGPT.
Since ChatGPT’s launch in November 2022, the company’s valuation has already doubled!
But that’s just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
OpenAI represents the potential investment opportunity of a lifetime.
Too bad it is a startup that you can’t buy on a public exchange like a big stock…
Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO.
This is your chance to invest in the next big thing. Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about this loophole.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Stocks Hit ‘Escape Velocity,’ Blasting Into a New Bull Market appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. Too bad it is a startup that you can’t buy on a public exchange like a big stock… Though I did manage to unearth an investment ‘loophole’ that allows you to take a stake in OpenAI now – before its highly anticipated IPO. More From InvestorPlace The #1 AI Name for 2023 Could Be About to Ignite This $20.6 Trillion Wealth Shift Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. We think the market officially hit escape velocity two days ago, on the final trading day of July. Time and time again, stocks’ first five-month winning streak after a bear market always marks the start of a new multi-year bull market.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in October 2022, when this stock market rally got started, very few investors believed in it. More importantly, the first five-month winning streak after a bear market has historically always marked the end of the bear market – or the moment that stocks entered “escape velocity” in a powerful new bull market.
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Like investing in Apple (AAPL) in the 1980s or Amazon (AMZN) in the 1990s, this is an opportunity you can’t afford to miss. More importantly, the first five-month winning streak after a bear market has historically always marked the end of the bear market – or the moment that stocks entered “escape velocity” in a powerful new bull market. Time and time again, stocks’ first five-month winning streak after a bear market always marks the start of a new multi-year bull market.
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14566.0
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2023-08-02 00:00:00 UTC
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Why Apple (AAPL) Might Surprise This Earnings Season
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AAPL
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https://www.nasdaq.com/articles/why-apple-aapl-might-surprise-this-earnings-season
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Apple is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently higher than the broader Zacks Consensus Estimate of $1.19 per share. This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.66% heading into earnings season.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Apple, and that a beat might be in the cards for the upcoming report.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.66% heading into earnings season.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report.
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This suggests that analysts have very recently bumped up their estimates for AAPL, giving the stock a Zacks Earnings ESP of +0.66% heading into earnings season. Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company.
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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAPL in this report. Given that AAPL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Apple Inc. AAPL may be one such company.
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14567.0
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2023-08-02 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-8
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nan
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nan
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As the world's most valuable company with a market cap of over $3 trillion, it might feel like the best time to buy Apple's (NASDAQ: AAPL) stock has long passed. However, the company's shares have risen 56% year-to-date and 310% in the last five years, proving it continues to offer investors consistent gains.
Meanwhile, Apple has a solid outlook thanks to its increasing smartphone market share and growing prospects in the future of artificial intelligence (AI). As a result, now is an excellent time to learn more about this tech giant before its shares rise any higher.
Here are three things about Apple that smart investors know.
1. Outperforming Android amid market headwinds
An economic downturn in 2022 caused steep declines across tech as reductions in consumer spending burdened the market. However, demand for Apple's products persevered.
According to Counterpoint Research, in the second quarter of 2023, smartphone shipments fell 24% year over year. Phones running on Alphabet's Android took the hardest hit, with sales for Samsung and Motorola declining 37% and 17%.
Apple couldn't avoid the market challenges, with iPhone shipments slipping 6% in the quarter. However, the company managed to use the poor conditions to its advantage, with its smartphone market share rising from 52% to 55%. Meanwhile, several Android-powered smartphone brands experienced declining market share.
The jump is promising for Apple's future product sales as a whole, as the iPhone also remains its best tool in attracting consumers to its other devices and services.
2. Massive potential in artificial intelligence
Tech companies like Microsoft and Nvidia have taken center stage in this year's AI boom. Meanwhile, Apple has largely stayed out of the hype. However, the MacBook company has quietly invested in the industry, which could massively pay off over the long term.
At Apple's Worldwide Developer Conference in June, it unveiled several AI-driven software features which suggest the company could be pivotal in getting the technology into the hands of consumers. For instance, the iPhone's autocorrect will receive an update that uses a language model similar to OpenAI's ChatGPT to learn how users type. Additionally, AirPod Pros will now automatically turn off noise-canceling when the wearer starts a conversation.
Moreover, a Bloomberg report from July 19 revealed Apple had created a framework for building AI language models and has developed a chatbot that engineers call Apple GPT. The company's massive dominance across consumer tech bodes well for its future in AI, with countless ways to successfully attract users to its offerings.
3. A recession-resistant stock
While last year's tech stock sell-off proved challenging for countless companies, it also highlighted the resilience of some businesses. The chart below shows Apple's stock experienced the lowest decline last year among the five biggest names in tech despite the economic hurdles.
Data by YCharts.
Apple has garnered immense brand loyalty from consumers over the years with its walled garden of products and sleek designs, which allow it to charge a premium and keep earnings up.
In addition to stealing smartphone market share from Android, the company has performed similarly against its competitors in personal computing. In Q2 2023, global PC shipments fell 13% year over year. Companies like Lenovo and Dell experienced declines of 18% and 22%. However, the same quarter saw Apple's MacBook segment enjoy a 10% shipment rise.
The company's growing dominance across tech has made it one of the most reliable investment options available. In fact, not only did Apple's stock outperform tech giants like Microsoft, Alphabet, Amazon, and Meta in 2022, but it has also enjoyed the most growth out of any of these companies over the last five and ten years.
With expanding market share for the iPhone and a developing AI division, Apple's stock looks like a promising investment right now.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As the world's most valuable company with a market cap of over $3 trillion, it might feel like the best time to buy Apple's (NASDAQ: AAPL) stock has long passed. At Apple's Worldwide Developer Conference in June, it unveiled several AI-driven software features which suggest the company could be pivotal in getting the technology into the hands of consumers. In fact, not only did Apple's stock outperform tech giants like Microsoft, Alphabet, Amazon, and Meta in 2022, but it has also enjoyed the most growth out of any of these companies over the last five and ten years.
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As the world's most valuable company with a market cap of over $3 trillion, it might feel like the best time to buy Apple's (NASDAQ: AAPL) stock has long passed. Meanwhile, several Android-powered smartphone brands experienced declining market share. In fact, not only did Apple's stock outperform tech giants like Microsoft, Alphabet, Amazon, and Meta in 2022, but it has also enjoyed the most growth out of any of these companies over the last five and ten years.
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As the world's most valuable company with a market cap of over $3 trillion, it might feel like the best time to buy Apple's (NASDAQ: AAPL) stock has long passed. In fact, not only did Apple's stock outperform tech giants like Microsoft, Alphabet, Amazon, and Meta in 2022, but it has also enjoyed the most growth out of any of these companies over the last five and ten years. With expanding market share for the iPhone and a developing AI division, Apple's stock looks like a promising investment right now.
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As the world's most valuable company with a market cap of over $3 trillion, it might feel like the best time to buy Apple's (NASDAQ: AAPL) stock has long passed. Meanwhile, several Android-powered smartphone brands experienced declining market share. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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14568.0
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2023-08-02 00:00:00 UTC
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Apple, Amazon and 3 Other Key Earnings Charts
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-and-3-other-key-earnings-charts
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nan
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nan
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It’s another extremely busy earnings week with over 1,000 companies expected to report second quarter results. But there are several “big” earnings reports that everyone will be tuning into, including two of the Magnificent 7, Amazon and Apple.
Apple, Amazon and these 3 other companies are among the most popularly held by investors. All 5 have seen big rallies in 2023. None are “cheap” by a forward P/E basis but do investors care? It seems like valuation is irrelevant in 2023.
In addition, several of these stocks have great earnings surprise track records. Will another beat provide a catalyst to push these stocks even higher?
Apple, Amazon and 3 Other Key Earnings Charts
1. Apple Inc. (AAPL) has an outstanding earnings surprise track record with just 1 miss in the last 5 years. It happened in early 2023 but that didn’t stop shares of Apple from rallying throughout 2023. Apple has hit new all-time highs this year and is up 50.6%. Apple is expensive, from what it has traded at historically. It has a forward P/E of 32.6. Does its valuation keep you out of Apple?
2. Amazon.com, Inc. (AMZN) has put together 2 big beats in a row but has always had a hit-or-miss earnings surprise track record. Shares of Amazon have rallied big, gaining 57% year-to-date. Amazon is not cheap. It trades at 85.4x. But it has never been cheap, even after big sell-offs like last year. Is Amazon still undervalued?
3. Booking Holdings, Inc. (BKNG) has beat 10 quarters in a row. That’s an impressive record for a travel company during the pandemic. Shares of Booking are up 44.6% year-to-date. It’s the cheapest of these 5 companies with a forward P/E of 22. Booking is trading near its all-time highs. Will Booking break out on this report?
4. Airbnb, Inc. (ABNB) has beat 8 quarters in a row. If you recall, Airbnb was a pandemic IPO. It went public in late 2020. Shares of Airbnb have rallied this year, gaining 74%. Airbnb isn’t cheap either, with a forward P/E of 44.3. With travel so hot, should Airbnb be on your shortlist?
5. DraftKings Inc. (DKNG) is coming off a miss last quarter, but prior to that miss, it had beat 5 quarters in a row. Shares of DraftKings have soared 179% year-to-date. DraftKings doesn’t have a P/E because it’s expected to lose $1.81 per share this year but that is an improvement from its loss of $3.16 last year. Will this earnings report be a further catalyst for DraftKings’ shares?
[In full disclosure, Tracey owns shares of AMZN and BKNG in her personal portfolio.]
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) has an outstanding earnings surprise track record with just 1 miss in the last 5 years. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s another extremely busy earnings week with over 1,000 companies expected to report second quarter results.
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Apple Inc. (AAPL) has an outstanding earnings surprise track record with just 1 miss in the last 5 years. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Amazon have rallied big, gaining 57% year-to-date.
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Apple Inc. (AAPL) has an outstanding earnings surprise track record with just 1 miss in the last 5 years. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. But there are several “big” earnings reports that everyone will be tuning into, including two of the Magnificent 7, Amazon and Apple.
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Apple Inc. (AAPL) has an outstanding earnings surprise track record with just 1 miss in the last 5 years. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report Airbnb, Inc. (ABNB) : Free Stock Analysis Report To read this article on Zacks.com click here. Booking Holdings, Inc. (BKNG) has beat 10 quarters in a row.
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14569.0
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2023-08-02 00:00:00 UTC
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US STOCKS-Wall St falls after Fitch downgrades top-tier US rating
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-after-fitch-downgrades-top-tier-us-rating-0
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nan
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nan
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By Johann M Cherian and Bansari Mayur Kamdar
Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world.
Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as growing government debt, the second major agency to cut the country's rating after Standard & Poor's in 2011 stripped it of its triple-A grade.
Several major brokerages, however, said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was stronger than in 2011.
Fitch downgrade has provided investors a reason to book profits, said Sam Stovall, chief investment strategist at CFRA Research.
"We have seen the markets advanced quite nicely in July and now the downgrade dampens near-term investor sentiment."
The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC took a breather in the previous session as investors entered a seasonally slow August after ending July strong on the back of better-than-expected earnings and hopes of a soft landing for the U.S. economy.
Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
Rate-sensitive megacap, megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. US/
At 11:30 a.m. ET, the Dow Jones Industrial Average .DJI was down 233.56 points, or 0.66%, at 35,397.12, the S&P 500 .SPX was down 53.75 points, or 1.17%, at 4,522.98, and the Nasdaq Composite .IXIC was down 285.06 points, or 2.00%, at 13,998.86.
On the earnings front, CVS Health CorpCVS.N added 3.1% on beating Wall Street estimates for quarterly profit, boosted by strength in its pharmacy benefit management unit and lower-than-expected medical costs in its health insurance business.
EmersonEMR.N climbed 4.2% after the industrial software firm raised its annual profit outlook as companies increase spending on automation in response to a tight labor market.
Second-quarter earnings are now expected to fall 5.4% from a year earlier, as per Refinitiv data on Wednesday, compared with a 7.9% decline estimated a week earlier.
Wells FargoWFC.N said it expects to pay as much as $1.8 billion to help replenish a government deposit insurance fund that was drained of $16 billion this year after three banks collapsed, sending its shares 2.0% lower.
Advanced Micro DevicesAMD.O shed 6.5%, after opening higher on forecasting an upbeat finish to the year and on plans to launch AI chips that could compete with market leader Nvidia NVDA.O.
Declining issues outnumbered advancers by a 5.34-to-1 ratio on the NYSE and a 3.31-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and four new lows, while the Nasdaq recorded 34 new highs and 88 new lows.
US loses top AAA credit rating from Fitch https://tmsnrt.rs/3OgSgb2
Stocks lead recovery in 2023 https://tmsnrt.rs/3Kmeg2Y
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb Chakrabarty and Vinay Dwivedi)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rate-sensitive megacap, megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as growing government debt, the second major agency to cut the country's rating after Standard & Poor's in 2011 stripped it of its triple-A grade. The benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC took a breather in the previous session as investors entered a seasonally slow August after ending July strong on the back of better-than-expected earnings and hopes of a soft landing for the U.S. economy.
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Rate-sensitive megacap, megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Rate-sensitive megacap, megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as growing government debt, the second major agency to cut the country's rating after Standard & Poor's in 2011 stripped it of its triple-A grade.
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Rate-sensitive megacap, megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O, tumbled, as yield on U.S. 10-year Treasury notes US10YT=RR rose to its highest in nearly nine months at 4.1%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. Several major brokerages, however, said the downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was stronger than in 2011.
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14570.0
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2023-08-02 00:00:00 UTC
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Apple, Amazon to Report Earnings: ETFs in Spotlight
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-to-report-earnings%3A-etfs-in-spotlight
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nan
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nan
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The two of the world's largest corporations — Apple AAPL and Amazon AMZN — are in the spotlight as both are set to release earnings on Aug 3.
Apple stock has soared nearly 50% this year, recently breaching $3 trillion in market cap and is trading near an all-time high. Meanwhile, Amazon has climbed about 57% this year. The movement of the stocks over the next few days will depend on their earnings. Let’s delve into them (read: Take a Bite of These ETFs on Historic Apple's $3T Valuation).
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Apple
Apple has an Earnings ESP of +0.66% and a Zacks Rank #3. Apple saw positive earnings estimate revision of a penny over the past 30 days for the fiscal third quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The iPhone maker has a strong track record of positive earnings surprise. It delivered an average earnings surprise of 2.65% in the trailing four quarters.
However, the Zacks Consensus Estimate indicates a modest year-over-year decrease of 0.8% for earnings and 2% for revenues (see: all the Technology ETFs here).
The stock belongs to a top-ranked Zacks Industry (top 43%) and has a solid Growth Score of B. The Zacks Consensus Estimate for the average target price is $197.22, with nearly 76% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
Amazon
Amazon has an Earnings ESP of +2.99% and a Zacks Rank #3. The stock saw no earnings estimate revision over the past 30 days for the second quarter. The Zacks Consensus Estimate indicates whopping year-over-year earnings growth of 240% and substantial revenue growth of 8.5% for the to-be-reported quarter.
Additionally, Amazon’s earnings surprise history is unimpressive, with a negative surprise of 11.30%, on average, in the last four quarters. The stock has a solid Growth Score of A but falls under a bottom-ranked Zacks industry (bottom 27%).
The Zacks Consensus Estimate for the average target price is $147.14, with nearly 97% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted five ETFs having the largest exposure to these giants.
Vanguard Mega Cap Growth ETF (MGK)
Vanguard Mega Cap Growth ETF tracks the CRSP US Mega Cap Growth Index. It holds 96 securities in its basket, with the in-focus two firms collectively accounting for 22.5% of the total assets. It has key holdings in technology and consumer discretionary that account for double-digit exposure each (read: 5 Growth ETFs at New Highs to Start 2H).
Vanguard Mega Cap Growth ETF charges 7 basis points in annual fees and trades in a good volume of around 281,000 shares a day on average. The fund has AUM of $14.4 billion and a Zacks ETF Rank #2 (Buy).
Roundhill BIG Tech ETF (BIGT)
Roundhill BIG Tech ETF is the first-ever FAAMG ETF offering investors concentrated exposure to five mega-cap technology companies known as the “FAAMG” stocks. The three in-focus firms account for a combined 24% share in the basket.
Roundhill BIG Tech ETF has amassed $3.8 million in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 5,000 shares.
MicroSectors FANG+ ETN (FNGS)
This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the two stocks (read: Best & Worst ETF Areas of First Half 2023).
MicroSectors FANG+ ETN has accumulated $138.9 million in its asset base and charges 58 bps in annual fees. It trades in a moderate volume of 178,000 shares a day on average and has a Zacks ETF Rank #3 (Hold).
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Apple and Amazon take the combined 16.8% share in the basket.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $213.3 billion and an average daily volume of 49 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Single-Stock ETFs
Single-stock ETFs have also been gaining immense popularity this year. Unlike traditional ETFs, which typically track a broad index or sector, single-stock ETFs provide exposure to the performance of one specific company by using derivatives. This allows investors to gain exposure to a particular stock without having to buy the stock directly (read: Guide to Single-Stock ETF Investing).
Direxion Daily AAPL Bull 1.5X Shares (AAPU)
Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. AAPU has AUM of $39.7 million.
GraniteShares 1.75x Long AAPL Daily ETF (AAPB)
GraniteShares 1.75x Long AAPL Daily ETF tracks the 1.5 times the performance of the stock of Apple. It charges 1.15% in annual fees and trades in an average daily volume of 14,000 shares. AAPB has gathered $4.1 million in its asset base.
Direxion Daily AMZN Bull 1.5X Shares ETF (AMZU)
Direxion Daily AMZN Bull 1.5X Shares ETF tracks the 1.5 times the performance of the shares of Amazon charging 95 bps in annual fees. It trades in volume of 157,000 shares a day on average and has accumulated assets worth $37.9 million.
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Invesco QQQ (QQQ): ETF Research Reports
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
MicroSectors FANG+ ETN (FNGS): ETF Research Reports
GraniteShares 1.75x Long AAPL Daily ETF (AAPB): ETF Research Reports
Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports
Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports
Roundhill BIG Tech ETF (BIGT): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The two of the world's largest corporations — Apple AAPL and Amazon AMZN — are in the spotlight as both are set to release earnings on Aug 3. Direxion Daily AAPL Bull 1.5X Shares (AAPU) Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares.
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Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports GraniteShares 1.75x Long AAPL Daily ETF (AAPB): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. The two of the world's largest corporations — Apple AAPL and Amazon AMZN — are in the spotlight as both are set to release earnings on Aug 3.
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Direxion Daily AAPL Bull 1.5X Shares tracks the 1.5 times the performance of the stock of Apple It charges 95 bps in annual fees and trades in an average daily volume of 134,000 shares. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports GraniteShares 1.75x Long AAPL Daily ETF (AAPB): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. The two of the world's largest corporations — Apple AAPL and Amazon AMZN — are in the spotlight as both are set to release earnings on Aug 3.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports GraniteShares 1.75x Long AAPL Daily ETF (AAPB): ETF Research Reports Direxion Daily AAPL Bull 1.5X Shares (AAPU): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. The two of the world's largest corporations — Apple AAPL and Amazon AMZN — are in the spotlight as both are set to release earnings on Aug 3. Direxion Daily AAPL Bull 1.5X Shares (AAPU)
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2023-08-02 00:00:00 UTC
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3 Things to Love About Roku's Earnings
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AAPL
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https://www.nasdaq.com/articles/3-things-to-love-about-rokus-earnings
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After watching their shares lose 90% of their value through the start of this year, investors would have been forgiven for writing off Roku Inc (NASDAQ: ROKU) once and for all. The well-known digital media and streaming company had seen its stock soar during the pandemic, but it proved unable to maintain the lofty valuation in the face of rising interest rates. In this regard, Roku was far from alone.
But an interesting story has been unfolding since shares bottomed out in the first week of January. Bit by bit, an impressive uptrend has been forming, and as we head into Wednesday's session, the stock is up 160% for 2023.
For those of us who were too risk-averse to jump in when shares were trading below $40 and who might be too skeptical about getting in now at $100, the good news is we think this rally is just getting started. Roku reported their Q2 numbers last week, which have only added fuel to the rally. Here are the top three things we loved about the report.
Headline Numbers
For starters, Roku absolutely smashed analyst expectations on the headline numbers. While EPS still came in as a loss, at -$0.76, it was far better than the -$1.27 analysts had been expecting. The company's revenue also caught analysts napping when it came in almost 10% higher than the consensus and up more than 10% year on year.
Beating the street's estimates for your earnings is one of the most important things a company can do. It tells investors that things have gone and are going better than expected and that the pre-earnings share price is likely well below fair value.
Some companies like Apple Inc (NASDAQ: AAPL) have a strong track record of beating estimates every quarter, but coming into last week, Roku was on shaky ground in that department. Considering how much value their shares had lost in the previous two years, it makes sense that they were coming off a track record of missing expectations. And so, as a result of the strong beat that was registered this time, Roku shares jumped and jumped hard. As of last night's close, they were up 45% from where they were going into the release last Thursday evening.
Bullish Comments
The second thing we loved about the report was management's bullish tone. In their letter to shareholders, Roku's management spoke highly of Q2's numbers, pointing out how they're starting once again to see growth in scale, engagement, and monetization.
While they acknowledged familiar industry-wide challenges from muted TV advertising, they're still seeing improvements in Roku's ad verticals, and they remain confident in their ability to re-accelerate growth once the ad market sees a broader recovery.
On this point, the company's ability to re-capture market share once the tide turns for TV advertising will be key, and given how the stock has reacted, it's clear Wall Street is betting on them to do so.
All told, Roku's management effectively framed this report as a new chapter in the company's journey, one that has seen them come through with increased resilience and sharpened go-to-market execution.
Boosted Forecast
Finally, we were big fans of the boosted forecast. Just like with the headline numbers, analysts try and calculate what a company's revenue and profit will be in the coming quarters, with almost all companies then offering their own fresh guidance in each report.
This is then compared against the street's forecast, with a beat being bullish for the stock and a miss being bearish. For Roku's Q3, analysts had been expecting $808 million in revenue, but Roku's forecast came in at $815 million.
Again, this has reinforced the idea that a recovery rally is really only getting started and that the company's shares are still undervalued. It will be a while yet before they're back trading near $500, but it does feel like they're on the verge of crossing back above $100 for the last time.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some companies like Apple Inc (NASDAQ: AAPL) have a strong track record of beating estimates every quarter, but coming into last week, Roku was on shaky ground in that department. The well-known digital media and streaming company had seen its stock soar during the pandemic, but it proved unable to maintain the lofty valuation in the face of rising interest rates. On this point, the company's ability to re-capture market share once the tide turns for TV advertising will be key, and given how the stock has reacted, it's clear Wall Street is betting on them to do so.
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Some companies like Apple Inc (NASDAQ: AAPL) have a strong track record of beating estimates every quarter, but coming into last week, Roku was on shaky ground in that department. And so, as a result of the strong beat that was registered this time, Roku shares jumped and jumped hard. For Roku's Q3, analysts had been expecting $808 million in revenue, but Roku's forecast came in at $815 million.
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Some companies like Apple Inc (NASDAQ: AAPL) have a strong track record of beating estimates every quarter, but coming into last week, Roku was on shaky ground in that department. After watching their shares lose 90% of their value through the start of this year, investors would have been forgiven for writing off Roku Inc (NASDAQ: ROKU) once and for all. Just like with the headline numbers, analysts try and calculate what a company's revenue and profit will be in the coming quarters, with almost all companies then offering their own fresh guidance in each report.
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Some companies like Apple Inc (NASDAQ: AAPL) have a strong track record of beating estimates every quarter, but coming into last week, Roku was on shaky ground in that department. Roku reported their Q2 numbers last week, which have only added fuel to the rally. Headline Numbers For starters, Roku absolutely smashed analyst expectations on the headline numbers.
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14572.0
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2023-08-02 00:00:00 UTC
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US STOCKS-Wall St falls after Fitch downgrades top-tier US rating
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-after-fitch-downgrades-top-tier-us-rating
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By Johann M Cherian and Bansari Mayur Kamdar
Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world.
Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as a growing general government debt burden, making it the second major rating agency after Standard & Poor's move in 2011 to strip the country of its triple-A rating.
The yield on U.S. 10-year Treasury notes US10YT=RR rose to 4.07%, after briefly slipping earlier in the day.
Safe havens gold XAU= and the Japanese yen JPY=EBS rose, while the dollar index =USD climbed 0.5%. US/
Several major brokerages said Fitch's downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was stronger than in 2011.
"Certainly markets haven't reacted anything like they did back in 2011, but as investors come in and look at what's going on, it makes them a little uncomfortable and the natural reaction is to simply hit sell," said Randy Frederick, managing director of trading and derivatives for Charles Schwab.
"Markets are also a bit stretched to the upside and are also probably due for some pullback."
At 9:39 a.m. ET, the Dow Jones Industrial Average .DJI was down 124.43 points, or 0.35%, at 35,506.25, the S&P 500 .SPX was down 35.45 points, or 0.77%, at 4,541.28, and the Nasdaq Composite .IXIC was down 185.63 points, or 1.30%, at 14,098.28.
Megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.3% and 1.8%.
Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
U.S. second-quarter earnings are now expected to fall 5.9% from a year earlier, as per Refinitiv data, compared with a 7.9% decline estimated a week earlier.
The benchmark S&P 500 .SPX and tech-heavy Nasdaq .IXIC took a breather in the previous session as investors entered a seasonally slow August.
CVS Health CorpCVS.N added 1.8% on beating Wall Street estimates for quarterly profit, boosted by strength in its pharmacy benefit management unit and lower-than-expected medical costs in its health insurance business.
DuPont de NemoursDD.N fell 1.7% on reporting a 7% fall in quarterly revenue due to weakness in the electronics and industrial unit.
EmersonEMR.N climbed 4.9% after the industrial software firm raised its annual profit outlook as companies increase spending on automation in response to a tight labor market.
Wells FargoWFC.N said it expects to pay as much as $1.8 billion to help replenish a government deposit insurance fund that was drained of $16 billion this year after three banks collapsed, sending its shares 1.4% lower.
Advanced Micro DevicesAMD.O shed 1.0%, after opening higher on forecasting an upbeat finish to the year and on plans to launch AI chips that could compete with market leader Nvidia NVDA.O.
Declining issues outnumbered advancers by a 6.59-to-1 ratio on the NYSE and a 3.61-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and four new lows, while the Nasdaq recorded 24 new highs and 40 new lows.
US loses top AAA credit rating from Fitch https://tmsnrt.rs/3OgSgb2
Stocks lead recovery in 2023 https://tmsnrt.rs/3Kmeg2Y
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb Chakrabarty and Vinay Dwivedi)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.3% and 1.8%. "Certainly markets haven't reacted anything like they did back in 2011, but as investors come in and look at what's going on, it makes them a little uncomfortable and the natural reaction is to simply hit sell," said Randy Frederick, managing director of trading and derivatives for Charles Schwab. Meanwhile, the ADP National Employment report showed private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
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Megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.3% and 1.8%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. CVS Health CorpCVS.N added 1.8% on beating Wall Street estimates for quarterly profit, boosted by strength in its pharmacy benefit management unit and lower-than-expected medical costs in its health insurance business.
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Megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.3% and 1.8%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as a growing general government debt burden, making it the second major rating agency after Standard & Poor's move in 2011 to strip the country of its triple-A rating.
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Megacap stocks including Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.3% and 1.8%. By Johann M Cherian and Bansari Mayur Kamdar Aug 2 (Reuters) - Wall Street fell on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating hit appetite for risky assets around the world. Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as a growing general government debt burden, making it the second major rating agency after Standard & Poor's move in 2011 to strip the country of its triple-A rating.
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14573.0
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2023-08-02 00:00:00 UTC
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INSIGHT-World battles to loosen China's grip on vital rare earths for clean energy transition
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https://www.nasdaq.com/articles/insight-world-battles-to-loosen-chinas-grip-on-vital-rare-earths-for-clean-energy
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By Ernest Scheyder and Eric Onstad
Aug 2 (Reuters) - Refining rare earths for the green energy transition is hard. Just ask MP Materials and Lynas.
The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet.
The West's push to develop independent supplies of critical minerals took on greater urgency after Beijing imposed export controls last month on the strategic metals gallium and germanium, raising global fears that China could block exports of rare earths or processing technology next.
Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed.
Technical complexities, partnership strains and pollution concerns are hampering companies' ability to wrest market share away from China, which according to the International Energy Agency controls 87% of global rare earths refining capacity.
If projects continue to struggle, several economies could fail to meet their goal of cutting carbon emissions to net zero 2050 to minimize climate change's impact, without Beijing's involvement.
Plans for Australia's Lynas to build a U.S. rare earths refinery with a Texas-based partner have collapsed, according to two sources familiar with the matter. Lynas has said it is trying to finish a rare earths refinery in Western Australia that has faced hurdles and is building its own plant elsewhere in Texas.
MP's goal of refining its own rare earth metals in 2020 was snagged by COVID-19 pandemic and technical challenges, shifting its target to the end of 2023. Updates could come on Thursday when the company is expected to report its quarterly results.
Late last year, U.S.-based MP said it was commissioning refining equipment near its California mine as part of an intricate calibration process that has so far not succeeded, leaving the company reliant on China for refining and thus nearly all of its revenue. MP is also building a Texas magnet facility to supply General MotorsGM.N that will require the California refining equipment to be operational.
"The (rare earths) commissioning process is painstaking, with stops and starts," Jim Litinsky, MP's CEO and largest shareholder, told investors in May.
MP, whose second-largest shareholder is China's Shenghe Resources 600392.SS, declined to comment ahead of its results.
"The rare earths refining process can be very finicky," said Kray Luxbacker, who heads the University of Arizona's mining and geological engineering department and is unaffiliated with MP or its peers. "There are just so many complex steps."
Rare earths magnets turn power into motion and are the essential components in an electric vehicle's motor. They are lighter and can handle far higher temperatures than traditional magnets, in part due to their unique chemical properties.
Rare earths refineries must contend with 17 metals, depending on a deposit's geology, each of which are nearly the same size and atomic weight, making separation complex. Those rare earths must be teased out in a specific order, preventing MP and its peers from cherry-picking specific elements they may want.
To extract neodymium and praseodymium to build EV magnets, for example, MP must first remove the less-desirable lanthanum and cerium that compose about 83% of its California deposit in a process that relies on an intricate cocktail of acids, bases and other chemicals that are tailored to the mine's geology.
While MP relied on Chinese expertise to restart its mine— bought in 2017—that know-how is less helpful when it comes to tailoring refining equipment. Similar issues could plague about half a dozen other companies aiming to refine independently elsewhere in the world, analysts said.
"What's happened in China over many years is that they've invested heavily and cleverly in the processing capacity to convert the (rare earths) material all the way from the mine through to the magnet," said Allan Walton, a metallurgy professor at the University of Birmingham.
ECONOMIC CONTROL
China's refining expertise has allowed the country to engineer rare earths prices at different stages in the processing chains to its advantage, including low prices for finished products, to inhibit foreign competition, analysts said.
Rare earths refining "is not really being addressed even by those who are developing magnet capacity," said Ryan Castilloux, a minerals consultant at Adamas Intelligence.
By strategically focusing on industries that use the magnets—built with rare earths refined in China at profit margins purposefully kept low—Beijing can boost its booming EV industry, Castilloux added.
China's model came into sharp relief last month when rare earths prices sank to their lowest level in nearly three years, due in part to rising Chinese supply. China also offers a 13% export rebate to magnet manufacturers using its material, furthering its dominance.
Beijing for years has allowed imports of lightly processed rock known as rare earths concentrate for refining. The strategy helps ensure prices that incentivize other countries to dig new mines but not build processing plants that can also produce radioactive waste, analysts said.
MP shipped about 43,000 metric tons of concentrate to China last year for refining. Regulatory filings show it has also been selling China fluoride waste—at a loss—left by a previous owner at its site in California, which has stringent storage regulations for the material.
Myanmar, Vietnam and others also ship concentrate to China for refining.
Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes. It aims to open a replacement processing plant in Australia later this year.
The company has long sold rare earth metals in the United States to privately held Blue Line to process into specialized materials.
In 2019, the pair agreed to build refining facilities near San Antonio, Texas and discussed with Trump administration officials their plans to be "the only large scale producer of separated (rare earth elements) in the world outside of China," according to emails obtained by Reuters.
But that effort, funded in part by the Pentagon, has since collapsed, two sources told Reuters. Reasons for the collapse, which has not been previously reported, could not be immediately determined.
Blue Line deferred comment to Lynas. The Pentagon said it would not be able to immediately comment. Lynas referred to past press releases but declined further comment. Meanwhile, Lynas this week updated plans for other refining facilities it is building along the Texas coast with $258 million in Pentagon funding.
Elsewhere, projects across Sweden, South Africa, Australia and other countries aim to extract rare earths from mine waste and byproducts that could supply 8% of global demand successful, according to Adamas Intelligence.
Benchmark Mineral Intelligence, a market data provider, estimates that China refines 89% of the world's neodymium and praseodymium, the key metals for EV magnets, a dominance that by 2028 is expected to dip to 75%.
China's global control of dysprosium refining is forecast by Benchmark to slip from 99% in 2023 to 94% by 2028. Dysprosium helps retain magnetization at high temperatures.
CLEANER TECH
Crucial innovation is also needed to break China's stranglehold on the sector without sacrificing environmental quality, industry analysts said, with concerns over current processes' toxic waste impeding projects.
Efforts by Leading Edge Materials LEM.V to develop Sweden's Norra Karr rare earths deposit were halted in 2016 over concerns that chemicals could leach into drinking water. The company reworked the mine plans to make them more sustainable and submitted a new environmental application this year.
Tesla in May announced plans to make EV magnets without rare earths, citing "environmental and health risks" in the existing process.
"China made a strategic decision decades ago to develop its rare earth processing capability, despite the environmental consequences of the available technology," said Melissa Sanderson, president of American Rare Earths ARR.AX, which is developing several U.S. rare earths projects.
American Rare Earths is working with U.S. government scientists at the Lawrence Livermore Laboratory to develop bacteria that could process rare earths. Privately held Locus Mining and Aether Bio are also studying ways to use biosurfactants and nanotechnology, respectively.
UCore Rare Metals UCU.V, Mosaic MOS.N and privately held USA Rare Earth are also studying various processing technologies.
Still, cleaner solutions are years from production.
"If you can innovate and bring solutions to market that produce rare earths efficiently, you have a tremendous market opportunity," said Nathan Picarsic, co-founder of the geopolitical consulting firm Horizon Advisory.
FACTBOX: The complexity of transforming rare earths from mine to magnet
Lynas Rare Earths signs updated contract with US govt for Texas facility, shares rise https://www.reuters.com/markets/commodities/lynas-rare-earths-signs-updated-contract-with-us-govt-texas-facility-2023-07-31/
(Reporting by Ernest Scheyder and Eric Onstad; additional reporting by Nick Carey and Melanie Burton; Editing by Veronica Brown and Susan Heavey)
((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed. In 2019, the pair agreed to build refining facilities near San Antonio, Texas and discussed with Trump administration officials their plans to be "the only large scale producer of separated (rare earth elements) in the world outside of China," according to emails obtained by Reuters.
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The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes. FACTBOX: The complexity of transforming rare earths from mine to magnet Lynas Rare Earths signs updated contract with US govt for Texas facility, shares rise https://www.reuters.com/markets/commodities/lynas-rare-earths-signs-updated-contract-with-us-govt-texas-facility-2023-07-31/ (Reporting by Ernest Scheyder and Eric Onstad; additional reporting by Nick Carey and Melanie Burton; Editing by Veronica Brown and Susan Heavey) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed. "China made a strategic decision decades ago to develop its rare earth processing capability, despite the environmental consequences of the available technology," said Melissa Sanderson, president of American Rare Earths ARR.AX, which is developing several U.S. rare earths projects.
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The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Just ask MP Materials and Lynas. Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes.
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14574.0
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2023-08-02 00:00:00 UTC
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Zacks Investment Ideas feature highlights: AT&T, Apple, Verizon and Occidental Petroleum
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-att-apple-verizon-and-occidental-petroleum
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For Immediate Release
Chicago, IL – August 2, 2023 – Today, Zacks Investment Ideas feature highlights AT&T T, Apple AAPL, Verizon VZ and Occidental Petroleum OXY.
3 Tips on How to Steer Clear of "Value Traps"
What is a "Value Trap"?
In Wall Street circles, a "value trap" refers to a situation where investors are drawn to a particular stock because its price appears to be very low, often with seemingly attractive metrics such as a low price-to-earnings (P/E) ratio or price-to-book (P/B) ratio. However, more times than not, many amateur investors fail to understand that there is often a good reason for the low price, such as poor fundamentals or slowing earnings growth.
In a value trap, though the price seems low already, the fundamental issues continue to erode value over time, though they once appeared to be a bargain. Avoiding value traps requires an investor to look beyond a low valuation ratio and consider other factors.
Here are signs you may be in a value trap:
The Company Has "Caretaker Management"
When a company has a long and successful past, management may fall into the "caretaker" trap. In other words, the company has so much cash on hand, and executives get paid such large salaries that there is little motivation to grow the business. For example, in 2022, AT&T CEO John Stankey hauled in more than $20 million in total compensation. Meanwhile, AT&T's EPS fell from 2.63 to 2.57 per share during the same time. In fact, AT&T's earnings have stagnated for years.
Stick to companies that are constantly innovating, such as Apple. Though Apple is a massive company, management is always searching for opportunities. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. In the long run, the price of a stock is directly correlated to earnings growth.
Dividends May Lure You In
Stocks like Verizon pay healthy dividends (7.7%). While a 7.7% dividend may be attractive to income-focused investors, investors need to remember that dividends are not paid out in a vacuum. In other words, if a stock is plummeting, even a high dividend will not lead you to profitability. For example, though Verizon's dividend has increased over the past five years, the stock is down 42%.
Not only would you be lagging if you were in a stock like VZ over that period, you would also have the added insult of injury of opportunity cost. For instance, the Nasdaq 100 is up 44.3% over the same time.
GARP Is the Solution
A GARP (Growth at a Reasonable Price) Strategy can help investors avoid value traps by balancing growth potential and valuation. Warren Buffett holding Occidental Petroleum is a great example – the company has a history of strong earnings growth and a reasonable valuation.
Conclusion
Sometimes, when you pay for a "cheap stock," you get what you pay for. Caretaker management, slow growth, and the wrong environment could mean you're in a classic "value trap." Use a GARP strategy to balance growth and value and get the best of both worlds.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – August 2, 2023 – Today, Zacks Investment Ideas feature highlights AT&T T, Apple AAPL, Verizon VZ and Occidental Petroleum OXY. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – August 2, 2023 – Today, Zacks Investment Ideas feature highlights AT&T T, Apple AAPL, Verizon VZ and Occidental Petroleum OXY. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods.
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Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – August 2, 2023 – Today, Zacks Investment Ideas feature highlights AT&T T, Apple AAPL, Verizon VZ and Occidental Petroleum OXY. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods.
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For Immediate Release Chicago, IL – August 2, 2023 – Today, Zacks Investment Ideas feature highlights AT&T T, Apple AAPL, Verizon VZ and Occidental Petroleum OXY. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14575.0
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2023-08-02 00:00:00 UTC
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Major global firms warn of slow China sales as post-pandemic surge fades
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AAPL
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https://www.nasdaq.com/articles/major-global-firms-warn-of-slow-china-sales-as-post-pandemic-surge-fades-0
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nan
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nan
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Adds Kerry and DHL detail and analyst comment in paragraphs 6-10, 13-15
Aug 2 (Reuters) - Global firms from consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce.
A continued rebound has been limited to a handful of sectors such as dining and luxury goods, driving double-digit China sales growth for the likes of Starbucks SBUX.O, LVMH LVMH.PA and Hugo BossBOSSn.DE.
But even those bellwethers have stopped short of raising their China outlook, wary of lacklustre economic data, while consumer goods firms such as Procter & Gamble PG.N, L'Oreal OREP.PA and Coca-Cola KO.N have taken a cautious stance.
"What we're seeing is a very cautious consumer in China, a declining property market and reduced export demand," Unilever finance chief Graeme Pitkethly told an April-Juneearnings call/span> last week.
"And there is high unemployment in China, particularly youth unemployment ... As much as we can tell, we're at the historical low point in terms of Chinese consumer confidence."
Ireland-based Kerry Group KYGa.I, which supplies ingredients to companies like McDonald's MCD.N, said its volumes have increased in China since COVID restrictions ended.
But chief executive Edmond Scanlon cautioned on Wednesday that business would not get back to normal there until 2024.
Beijing has rolled out a series of policy measures in recent weeks to shore up the flagging economy, but weak manufacturing data for July on Tuesday underscored concerns it is still far from turning a corner.
That is a particular blow for European companies that are major exporters to China, which are already struggling with persistent global price pressures and rising borrowing costs.
"China is stimulating right now and we'll have to see what the success of those efforts are," said Tony Roth, chief investment officer at Wilmington Trust Investment Advisors.
Global automakers are also having to contend with increased competition from rivals in China, which for the first time took a more than 50% share of the Chinese market in the first half of 2023. Volkswagen VOWG_p.DEcut its full-year sales target last week after sales dipped in China, its top market.
"Unfortunately, our (China) sales outlook is now falling far below our production capacity," Nissan CEO Makoto Uchida said last week. Earnings recovery in the world's biggest auto market is likely to take time, he said.
Expectations for second-quarter earnings are already low due in part to China's weakness. Refinitiv I/B/E/S data show U.S. and European companies are expected to report their worst quarterly results in years.
The short-lived bounce in economic activity after China lifted its long COVID lockdowns also highlights poor global demand, DHL Group DHLn.DE, one of the world's biggest shippers, said on Tuesday.
The company saw drops of 15.95% and 7.1% respectively in air and ocean freight volumes in the first half, particularly on routes between China and its two biggest trading partners, the United States and Europe.
FALLING SHORT
In technology, chipmakers such as Samsung 005930.KS and SK Hynix 000660.KS said China's reopening after lengthy virus-busting lockdown measures had failed to spark a revival in the smartphone market, and that they were extending production cuts of NAND memory chips used in handsets to store data.
Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June.
Top miners and heavy machinery makers have also taken a hit from a prolonged property sector slump.
"We mentioned during our lastearnings callthat we expected sales in China to be below the typical 5% to 10% of our enterprise sales. We now expect further weakness as the 10-ton-and-above excavator industry has declined even more than we anticipated," Caterpillar CEO Jim Umpleby told anearnings callon Tuesday.
Rio Tinto RIO.L, RIO.AX, the world's biggest iron ore producer, is nevertheless cautiously optimistic on China as the government has pledged more policies to boost growth.
"Our experience with China is that if things are going less well, then the Chinese have a quite impressive ability to also manage the economy," Rio Tinto CEO Jacob Stausholm said after reporting earnings last week.
BRIGHT SPOTS
Eateries and luxury goods makers have been among few economic bright spots as Chinese consumers splurge following the lifting of COVID-19 restrictions on movement.
Starbucks reported a 46% surge in comparable China sales last quarter - a rebound in line with its expectations and which is likely to last, company officials told investors in a call on Tuesday.
Yum China 9987.HK, owner of the KFC and Pizza Hut chains in mainland China, reported a 25% rise in second-quarter revenue as traffic returned, but said spending per person had decreased as consumers become more "rational" in their outlay.
LVMH, whose 75 brands include Louis Vuitton and U.S. jeweller Tiffany, reported a better-than-expected 17% rise in global second-quarter sales due to rebound in China, but refrained from giving an outlook for the rest of the year.
"The global mood is not one of 'revenge buying' like we saw in 2021 and 2022," LVMH finance chief Jean-Jacques Guiony said last week. "We have no visibility, (but) we are not pessimistic and don't have a reason to be (pessimistic) in China."
China's sagging economy looms over quarterly results around the world
FACTBOX-China's measures to support the economy amid faltering recovery
ANALYSIS-European earnings face a low bar, but investor patience wears thin
(Reporting by Reuters bureaus; Writing by Miyoung Kim and Josephine Mason; Editing by Christopher Cushing and Catherine Evans)
((miyoung.kim@thomsonreuters.com; 65 6870 3026; Reuters Messaging: miyoung.kim.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Adds Kerry and DHL detail and analyst comment in paragraphs 6-10, 13-15 Aug 2 (Reuters) - Global firms from consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. In technology, chipmakers such as Samsung 005930.KS and SK Hynix 000660.KS said China's reopening after lengthy virus-busting lockdown measures had failed to spark a revival in the smartphone market, and that they were extending production cuts of NAND memory chips used in handsets to store data.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Adds Kerry and DHL detail and analyst comment in paragraphs 6-10, 13-15 Aug 2 (Reuters) - Global firms from consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. "What we're seeing is a very cautious consumer in China, a declining property market and reduced export demand," Unilever finance chief Graeme Pitkethly told an April-Juneearnings call/span> last week.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Adds Kerry and DHL detail and analyst comment in paragraphs 6-10, 13-15 Aug 2 (Reuters) - Global firms from consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. Yum China 9987.HK, owner of the KFC and Pizza Hut chains in mainland China, reported a 25% rise in second-quarter revenue as traffic returned, but said spending per person had decreased as consumers become more "rational" in their outlay.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Earnings recovery in the world's biggest auto market is likely to take time, he said. The short-lived bounce in economic activity after China lifted its long COVID lockdowns also highlights poor global demand, DHL Group DHLn.DE, one of the world's biggest shippers, said on Tuesday.
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14576.0
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2023-08-02 00:00:00 UTC
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PREVIEW-Apple heads for largest Q3 revenue drop since 2016 as iPhone sales slow
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AAPL
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https://www.nasdaq.com/articles/preview-apple-heads-for-largest-q3-revenue-drop-since-2016-as-iphone-sales-slow-0
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nan
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nan
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By Yuvraj Malik
Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said.
The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016.
IPhone sales likely fell more than 2% in the period, according to 24 analysts polled by Visible Alpha, compared with a near 3% increase a year earlier and a 1.5% rise in the quarter ended March.
The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
"Apple is not immune to general macroeconomic trends and will continue to set the pace (for the smartphone industry) for quite some time," said Bob O'Donnell, founder of TECHnalysis Research.
With details about the new iPhone 15 expected next month - which could sport the more universally accepted USB-C port on some models - iPhone sales could get a small nudge in the July-September quarter, said analysts, who predicted a mixed bag of results for the period.
Apple traditionally does not provide quarterly outlook, but analysts expect the company may elaborate how it is using AI to improve its upcoming products.
The company has so far avoided buzzwords like AI at its events, in a contrast with tech giants including Alphabet and Microsoft. Last month, Bloomberg News reported Apple has quietly built its own framework to create large language models known as "Ajax".
"We expect Apple's updated comments on its AI aspirations to be a focus," analysts at Well Fargo wrote in a research note, adding that any commentary around the technology could boost the stock.
IPHONE SLOWDOWN
Much of the weakness in iPhone sales is expected to come from the Americas, where revenue is set to fall 6%, analysts said. Sales from China - Apple's third-largest market - are expected to be flat due to an uneven economic recovery, though the company has fared better than Android rivals in the country.
"Most investors feel a soft China could pose a risk to the numbers and further commentary, but Apple's position in China is on a solid footing and the company is likely to see only a small, if any, decline in iPhone sales," Piper Sandler analysts said.
"If there is any sales weakness from China, it is likely to be easily offset by strong sales momentum in India," they added.
Mac and iPad sales are expected to fall by 10.6% and 11.2%, respectively, according to Refinitiv data.
But the services business - home to Apple's App Store and audio and video streaming services - could be a bright spot thanks to an uptick in the ad market, some analysts said.
The business, which accounts for roughly a quarter of Apple's total revenue, is expected to grow 5.7% as it also benefits from price increases for iCloud subscriptions, though the pace is broadly similar to that in the preceding three quarters.
Apple's iPhone sales slump from pandemic highs https://tmsnrt.rs/3qauvtl
(Reporting by Yuvraj Malik in Bengaluru; Editing by Sayantani Ghosh and Maju Samuel)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. IPhone sales likely fell more than 2% in the period, according to 24 analysts polled by Visible Alpha, compared with a near 3% increase a year earlier and a 1.5% rise in the quarter ended March. The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016. Sales from China - Apple's third-largest market - are expected to be flat due to an uneven economic recovery, though the company has fared better than Android rivals in the country.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. With details about the new iPhone 15 expected next month - which could sport the more universally accepted USB-C port on some models - iPhone sales could get a small nudge in the July-September quarter, said analysts, who predicted a mixed bag of results for the period. "Most investors feel a soft China could pose a risk to the numbers and further commentary, but Apple's position in China is on a solid footing and the company is likely to see only a small, if any, decline in iPhone sales," Piper Sandler analysts said.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016. The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
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14577.0
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2023-08-02 00:00:00 UTC
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Major global firms warn of slow China sales as post-pandemic surge fades
|
AAPL
|
https://www.nasdaq.com/articles/major-global-firms-warn-of-slow-china-sales-as-post-pandemic-surge-fades
|
nan
|
nan
|
Aug 2 (Reuters) - From consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N, global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce.
A continued rebound has been limited to a handful of sectors such as dining and luxury goods, driving double-digit China sales growth for the likes of Starbucks SBUX.O and LVMH LVMH.PA.
But even those bellwethers have stopped short of raising their China outlook, wary of lacklustre economic data, while consumer goods firms such as Procter & Gamble PG.N, L'Oreal OREP.PA and Coca-Cola KO.N have taken a cautious stance.
"What we're seeing is a very cautious consumer in China, a declining property market and reduced export demand," Unilever finance chief Graeme Pitkethly told an April-Juneearnings call/span> last week.
"And there is high unemployment in China, particularly youth unemployment... As much as we can tell we're at the historical low point in terms of Chinese consumer confidence."
Global automakers are also having to contend with increased competition from domestic rivals, which for the first time took a more than 50% share of the market in the first half of 2023. Volkswagen VOWG_p.DEcut its full-year sales target last week due to a sales dip in China, its top market.
"Unfortunately, our (China) sales outlook is now falling far below our production capacity," Nissan CEO Makoto Uchida said last week. Earnings recovery in the world's biggest auto market will likely take time, he said.
FALLING SHORT
In technology, chipmakers such as Samsung 005930.KS and SK Hynix 000660.KS said China's reopening after lengthy virus-busting lockdown measures had failed to spark a revival in the smartphone market, and that they were extending production cuts of NAND memory chips used in handsets to store data.
Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June.
Top miners and heavy machinery makers have also taken a hit from a prolonged property sector slump.
"We mentioned during our lastearnings callthat we expected sales in China to be below the typical 5% to 10% of our enterprise sales. We now expect further weakness as the 10-ton-and-above excavator industry has declined even more than we anticipated," Caterpillar CEO Jim Umpleby told anearnings callon Tuesday.
Still, Rio Tinto RIO.L, RIO.AX, the world's biggest iron ore producer, is cautiously optimistic on China's economy as the government has pledged more policies to boost growth.
"Our experience with China is that if things are going less well, then the Chinese have a quite impressive ability to also manage the economy," Rio Tinto CEO Jacob Stausholm said after reporting earnings last week.
BRIGHT SPOTS
Eateries and luxury goods makers have been among few economic bright spots for consumers splurging following the lifting of COVID-19 restrictions on movement.
Starbucks reported a 46% surge in comparable China sales last quarter - a rebound in line with its expectations and which is likely to last, company officials told investors in a call on Tuesday.
Yum China 9987.HK, owner of the KFC and Pizza Hut chains in mainland China, reported a 25% rise in second-quarter revenue as traffic returned, though said spending per person decreased with consumers becoming more "rational" in their outlay.
LVMH, whose 75 brands include Louis Vuitton and U.S. jeweller Tiffany, reported a better-than-expected 17% rise in global second-quarter sales due to rebound in China, but refrained from giving an outlook for the rest of the year.
"The global mood is not one of revenge buying like we saw in 2021 and 2022," LVMH finance chief Jean-Jacques Guiony said last week.
"We have no visibility, (but) we are not pessimistic and don't have a reason to be (pessimistic) in China."
(Reporting by Kailyn Rhone in New York, Mimosa Spencer in Paris, Sophie Yu in Beijing, Brenda Goh in Shanghai, Richa Naidu in London, Melanie Burton in Melbourne, Daniel Leussink in Tokyo, Victoria Waldersee and Miranda Murray in Berlin, and Rishav Chatterjee, Deborah Sophia, Ananya Mariam Rajesh and Yuvraj Malik in Bengaluru; Writing by Miyoung Kim; Editing by Christopher Cushing)
((miyoung.kim@thomsonreuters.com; 65 6870 3026; Reuters Messaging: miyoung.kim.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Aug 2 (Reuters) - From consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N, global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. In technology, chipmakers such as Samsung 005930.KS and SK Hynix 000660.KS said China's reopening after lengthy virus-busting lockdown measures had failed to spark a revival in the smartphone market, and that they were extending production cuts of NAND memory chips used in handsets to store data.
|
Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Aug 2 (Reuters) - From consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N, global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. "What we're seeing is a very cautious consumer in China, a declining property market and reduced export demand," Unilever finance chief Graeme Pitkethly told an April-Juneearnings call/span> last week.
|
Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Aug 2 (Reuters) - From consumer goods giant Unilever ULVR.L to automaker Nissan 7201.T and machinery maker Caterpillar CAT.N, global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. Volkswagen VOWG_p.DEcut its full-year sales target last week due to a sales dip in China, its top market.
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Even Apple AAPL.O, which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Volkswagen VOWG_p.DEcut its full-year sales target last week due to a sales dip in China, its top market. Earnings recovery in the world's biggest auto market will likely take time, he said.
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14578.0
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2023-08-01 00:00:00 UTC
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Apple Stock: Headed to $220?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-headed-to-%24220-0
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nan
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nan
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Despite already rising more than 50% this year, one analyst thinks shares of Apple (NASDAQ: AAPL) have plenty of upside remaining over the next 12 months. More specifically, Piper Sandler analyst Harsh Kumar thinks the stock can get to $220 during this period. This price target would translate to about 12% upside for the stock, on top of an already impressive gain since Jan. 1.
Is Apple stock really a good buy today, despite its staggering first seven months of 2023? Let's look closer at why Kumar is so upbeat about Apple shares to see if he's onto something.
The path to $220
In a note to investors this week, Kumar said that he is raising his 12-month price target on Apple stock from $180 to $220. Supporting his view, he believes iPhone sales in China could be notable for the tech company's fiscal third quarter, which Apple will report results for on Thursday.
In Apple's fiscal second-quarterearnings call CEO Tim Cook noted that even though the company reported a 3% year-over-year decline in Greater China revenue during the period, sales in the market were up year-over-year on a constant-currency basis. In addition, year-over-year sales trends for the quarter improved compared to the three months ending in December 2022. With China's economy continuing its reopening following strict COVID-19 policies that disrupted Apple's sales, further improvement is possible in fiscal Q2. Regarding iPhone sales trends specifically, Cook cited third-party data that estimated iPhone models to account for four of the top-selling smartphones in urban China. So Apple is certainly well-positioned in the market.
Though given recent headlines in the media about China's recovery being slower than anticipated, some investors are worried about Apple's how Greater China sales may have fared during fiscal Q3. But Kumar seems convinced that Apple's sales in the market may prove to be more resilient than anticipated.
Going further, Kumar said that even if China sales do prove to be subpar, Apple's fast-growing sales in India could offset this weakness. To this end, Apple sales in India grew at a strong double-digit growth rate during fiscal Q2, Cook noted. "There are a lot of people coming into the middle class, and I really feel that India is at a tipping point," the CEO added.
Why Apple stock may still be a buy
While the analyst has some good points about China sales potentially being more resilient than anticipated and India serving as a timely catalyst for the iPhone maker, the bigger question is whether or not Apple stock is truly a good buy at 33 times earnings -- the premium valuation the stock is trading at today.
While it would be difficult to call Apple stock a bargain today, it's fair to say that an investor who buys the stock today has a decent chance of making out reasonably well over the long haul. The tech giant has spent decades building a powerful hardware, software, and services ecosystem and a loyal customer base. Further, with an exceptional balance sheet boasting more cash than debt, and a cash flow statement showing off annual free cash flow of around $100 billion, Apple can continue investing heavily in maintaining its attractive positioning with consumers through product innovation, new services, and constant improvement of its existing software and services. Ultimately, the company's massive scale and loyal customer base combine to give it a competitive advantage that should help the company continue growing earnings for years to come.
Even as Apple stock approaches $200, shares arguably still appear attractive. Of course, this doesn't mean shareholders won't have to endure bumpy ride with occasional large drawdowns in the stock price. Of course, despite these reasons to be bullish, investors should do their own due diligence to decide for themselves whether or not they think the stock is a buy.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite already rising more than 50% this year, one analyst thinks shares of Apple (NASDAQ: AAPL) have plenty of upside remaining over the next 12 months. Supporting his view, he believes iPhone sales in China could be notable for the tech company's fiscal third quarter, which Apple will report results for on Thursday. The tech giant has spent decades building a powerful hardware, software, and services ecosystem and a loyal customer base.
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Despite already rising more than 50% this year, one analyst thinks shares of Apple (NASDAQ: AAPL) have plenty of upside remaining over the next 12 months. In Apple's fiscal second-quarterearnings call CEO Tim Cook noted that even though the company reported a 3% year-over-year decline in Greater China revenue during the period, sales in the market were up year-over-year on a constant-currency basis. Regarding iPhone sales trends specifically, Cook cited third-party data that estimated iPhone models to account for four of the top-selling smartphones in urban China.
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Despite already rising more than 50% this year, one analyst thinks shares of Apple (NASDAQ: AAPL) have plenty of upside remaining over the next 12 months. Why Apple stock may still be a buy While the analyst has some good points about China sales potentially being more resilient than anticipated and India serving as a timely catalyst for the iPhone maker, the bigger question is whether or not Apple stock is truly a good buy at 33 times earnings -- the premium valuation the stock is trading at today. While it would be difficult to call Apple stock a bargain today, it's fair to say that an investor who buys the stock today has a decent chance of making out reasonably well over the long haul.
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Despite already rising more than 50% this year, one analyst thinks shares of Apple (NASDAQ: AAPL) have plenty of upside remaining over the next 12 months. Supporting his view, he believes iPhone sales in China could be notable for the tech company's fiscal third quarter, which Apple will report results for on Thursday. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them!
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2023-08-01 00:00:00 UTC
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3 Stocks That Need to Follow Elon Musk’s Rebranding Moves
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https://www.nasdaq.com/articles/3-stocks-that-need-to-follow-elon-musks-rebranding-moves
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I don’t know if you’ve been following the Elon Musk rebranding of Twitter. He’s now calling it “X” and plans to turn the social media platform into a super app where you can do just about everything.
“In the months to come, we will add comprehensive communications and the ability to conduct your entire financial world. The Twitter name does not make sense in that context, so we must bid adieu to the bird,” Musk stated in a July 24 post.
Time will tell if the eccentric billionaire made the right call.
In the meantime, it’s important to note that corporate rebranding is risky because you potentially alienate your core customer. Twitter/X is already losing hundreds of millions of dollars. Alienating customers further would be a death sentence for the social media platform.
However, the impact of rebranding on stocks can be positive for shareholders. Investopedia pointed out that in 2007 Steve Jobs changed the name of the iPhone maker from Apple Computers to Apple (NASDAQ:AAPL) to reflect that the company was more than just computers. Oh, how right he was.
Here are three companies that ought to be following Musk’s lead.
Gap (GPS)
Source: Alex Millauer / Shutterstock.com
I can name at least three companies that have changed their corporate name to reflect the diversity of their holdings: Capri Holdings (NYSE:CPRI), Tapestry (NYSE:TPR), and Driven Brand Holdings (NASDAQ:DRVN). They haven’t suffered by changing their name to reflect their multi-brand status.
Yet, Gap (NYSE:GPS) continues to go by its legacy brand, even though other brands in the company are better growth vehicles. Rather than continue to remind investors how much of a disaster the Gap brand has become, it should create a name that implies a future with authentic growth brands.
That’s it: Retail Growth Brands Inc., or RGB, just like the late, great Supreme Court Justice Ruth Bader Ginsburg.
How bad has it gotten at the Gap group of companies?
They replaced former Chief Executive Officer (CEO) Sonya Syngal with Richard Dickson, the former president and CEO of Mattel (NYSE:MAT) and the man behind Barbie’s revival. At Athleta, its once-promising athleisure brand, it hired Chris Blakeslee, the former president of Alo Yoga.
Given how many women work at the four major Gap brands, it’s beyond crazy the board couldn’t find a qualified woman to lead the entire company.
That tells you all you need to know about the dysfunction at Gap. No wonder it’s traded under $20 for the past 20 months.
Rollins (ROL)
Source: Shutterstock
Rollins (NYSE:ROL) is a company I’ve recommended to readers over the past few years. In 2016, I included the pest control company in a group of 10 stocks I thought every retirement portfolio should have.
“Over the long haul, it hasn’t disappointed delivering 18 consecutive years of earnings growth and 14 consecutive years of dividend increases averaging 12%,” I wrote in May of that year.
The stock is up around 235% in the years since. However, its stock’s become much more volatile since the pandemic started in early 2020. Year-to-date, it’s up 11.7%, trailing the S&P 500 by over 800 basis points. One thing to remember about that lack of performance: Most of the index’s gains are from the “Magnificent 7,” the tech stocks all benefiting from artificial intelligence.
Take out the Mag 7, and Rollins’ returns look just fine.
On July 26, the company reported healthy top and bottom line growth. Its revenues were $821 million, 14.9% higher than a year earlier. Excluding acquisitions, its revenues were up 7.7% year-over-year. In terms of net income, it earned $114 million on an adjusted basis, 12.2% higher than Q2 2022.
With industry-leading brand names such as Orkin and Critter Control, the Rollins name says little about those businesses.
GameStop (GME)
Source: shutterstock.com/EchoVisuals
GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) are two meme stocks that I will not recommend to any investors. They are ridiculously overvalued and represent everything bad about the current investment environment.
However, I don’t have a problem recommending that the video game retailer rebrand to something other than GameStop. This legacy name is like a chain around its neck, constantly dragging it down. Serious investors will continue to keep it off their watchlists.
It doesn’t help that the Chewy (NYSE:CHWY) co-founder and GameStop savior, Ryan Cohen, keeps mowing through senior management. CEO Matt Furlong was shown the door in June after two years in the top job. On July 27, former chief financial officer (CFO) Diana Saadeh-Jajeh resigned after just a year.
GamesIndustry.biz managing editor Brendan Sinclair wrote a scathing piece about GameStop in June. If you’ve got any thoughts on buying GME stock, do yourself a favor and read his article. It’s spot on.
Sinclair’s strongest point is that the company has known for years that its days selling video games through brick-and-mortar stores were done. Digital was the only way. Yet, it continues to sputter on that front.
“But the idea that Cohen has a brilliant plan to fix everything in one fell swoop is simply not credible. He’s essentially been in charge for years now, the fundamental business is still the same, and the user experience online or in-store is not meaningfully better. Bafflingly, it may actually be worse.” Sinclair wrote on June 9.
With $1.3 billion in cash on its balance sheet, it’s got plenty to do a full-scale rebrand. Unfortunately, as Sinclair pointed out, it’s likely far too late.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post 3 Stocks That Need to Follow Elon Musk’s Rebranding Moves appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investopedia pointed out that in 2007 Steve Jobs changed the name of the iPhone maker from Apple Computers to Apple (NASDAQ:AAPL) to reflect that the company was more than just computers. The Twitter name does not make sense in that context, so we must bid adieu to the bird,” Musk stated in a July 24 post. That’s it: Retail Growth Brands Inc., or RGB, just like the late, great Supreme Court Justice Ruth Bader Ginsburg.
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Investopedia pointed out that in 2007 Steve Jobs changed the name of the iPhone maker from Apple Computers to Apple (NASDAQ:AAPL) to reflect that the company was more than just computers. Rollins (ROL) Source: Shutterstock Rollins (NYSE:ROL) is a company I’ve recommended to readers over the past few years. “Over the long haul, it hasn’t disappointed delivering 18 consecutive years of earnings growth and 14 consecutive years of dividend increases averaging 12%,” I wrote in May of that year.
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Investopedia pointed out that in 2007 Steve Jobs changed the name of the iPhone maker from Apple Computers to Apple (NASDAQ:AAPL) to reflect that the company was more than just computers. Gap (GPS) Source: Alex Millauer / Shutterstock.com I can name at least three companies that have changed their corporate name to reflect the diversity of their holdings: Capri Holdings (NYSE:CPRI), Tapestry (NYSE:TPR), and Driven Brand Holdings (NASDAQ:DRVN). Yet, Gap (NYSE:GPS) continues to go by its legacy brand, even though other brands in the company are better growth vehicles.
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Investopedia pointed out that in 2007 Steve Jobs changed the name of the iPhone maker from Apple Computers to Apple (NASDAQ:AAPL) to reflect that the company was more than just computers. Yet, Gap (NYSE:GPS) continues to go by its legacy brand, even though other brands in the company are better growth vehicles. The stock is up around 235% in the years since.
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2023-08-01 00:00:00 UTC
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Here's How Apple Could Win Big From AI
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https://www.nasdaq.com/articles/heres-how-apple-could-win-big-from-ai
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Apple (NASDAQ: AAPL) is the most valuable company in the world with a market capitalization of just over $3 trillion. It reached this position thanks to the terrific demand for its iPhones, iPads, and MacBooks over the years. But the company now needs something new to power its next phase of growth.
Apple's growth plateaued thanks to a weak smartphone market. The company's revenue in the first six months of the current fiscal year dropped to $212 billion (compared to $221 billion in the same period a year ago). The iPhone, which generated 55% of its revenue in the first half of fiscal 2023, saw a dip in sales.
There is a good chance that Apple can strike gold with its next generation of iPhones as a massive installed base of users will need upgrades and the company has strong pricing power. But the tech giant is also taking steps to diversify into new areas to accelerate its growth. One way it hopes to do that is by jumping into the small but fast-growing market for mixed-reality headsets. There are also rumors that Apple is developing self-driving vehicles.
Now it looks like artificial intelligence (AI) is another segment Apple wants to tap to accelerate its growth.
Apple is reportedly developing a ChatGPT competitor
ChatGPT, OpenAI's chatbot, became a raging success after it was launched late last year (with significant funding assistance from Microsoft (NASDAQ: MSFT)). The generative AI-powered chatbot quickly built a big user base, reaching 100 million users within just two months of launch.
Microsoft was quick to capitalize on ChatGPT's popularity and introduced paid subscriptions for the service. Microsoft also deployed OpenAI's generative AI platform into services such as the Bing search engine and Microsoft Office applications. These moves could unlock a solid long-term opportunity for Microsoft in multiple areas.
The chatbot market is one of those opportunities considering the impressive pace at which it is expected to grow. According to a third-party estimate, the global chatbot market could generate $42 billion in annual revenue by 2032, clocking a compound annual growth rate of almost 24% over the next decade. For comparison, the chatbot market was worth just under $5 billion last year.
Not surprisingly, several companies -- both big and small -- are in a race to deploy AI-powered chatbots. Bloomberg's Mark Gurman recently reported that Apple is also in this race. According to Gurman, Apple is reportedly building an AI-powered chatbot to compete with the likes of ChatGPT. Gurman adds that the tech giant has already developed a large language model (LLM) to power its generative AI offerings, including the chatbot.
Apple won't say if it is indeed looking to jump into the generative AI market. But the rumor mill has gotten better in recent years at predicting the company's upcoming products. That suggests that Apple may indeed be on track to jump into this space.
Why AI could open a new growth frontier for Apple
It won't be surprising to see Apple actually move into the generative AI space. The chatbot market is expected to be huge in the long run. And chatbots are just one of the many applications that use generative AI technology. The overall generative AI market is forecast to grow 42% annually over the next decade and generate $1.3 trillion in annual revenue in 2032, according to Bloomberg Intelligence. So, it makes sense for Apple to accelerate its efforts to incorporate generative AI into its offerings, especially considering that other tech giants, such as Microsoft and Alphabet, have already made progress in this space.
Generative AI offerings like chatbots could nicely complement Apple's huge installed base of devices and unlock growth.
Apple CEO Tim Cook said in February that the company's installed base of devices, including iPhones, iPads, MacBooks, and other hardware offerings, now exceeds 2 billion units. So the company already has access to a huge user base that could adopt its generative AI offerings. If Apple charges a fee for the service, that would create a significant new revenue stream.
Microsoft and OpenAI, for instance, charge $20 a month for ChatGPT Plus. The paid ChatGPT subscription allows users to access the chatbot even during peak hours and provides faster responses to their queries. Paying users also get access to new features before others.
Apple could consider doing something similar with Siri, its AI-powered voice assistant, which is present on multiple devices ranging from iPhones to iPads to AirPods to the Apple Watch. Apple could use generative AI to make Siri smarter, using its large language models, and deploy the functionality in its productivity apps, such as Pages, Numbers, and Keynote, as well. If Siri can compose emails, create text such as essays, and write poems based on user prompts -- just like ChatGPT -- Apple could consider monetizing it.
There is no official word from Apple if it is indeed looking to move into this market. But don't be surprised to see the company integrate generative AI into its products going forward, as other big tech giants could steal market share from Apple if it doesn't step up its efforts in this area. Also, there is a huge incentive for Apple to accelerate its generative AI efforts as it already has a solid opportunity to monetize this technology and give its flagging growth a big shot in the arm.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is the most valuable company in the world with a market capitalization of just over $3 trillion. There is a good chance that Apple can strike gold with its next generation of iPhones as a massive installed base of users will need upgrades and the company has strong pricing power. Apple CEO Tim Cook said in February that the company's installed base of devices, including iPhones, iPads, MacBooks, and other hardware offerings, now exceeds 2 billion units.
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Apple (NASDAQ: AAPL) is the most valuable company in the world with a market capitalization of just over $3 trillion. The generative AI-powered chatbot quickly built a big user base, reaching 100 million users within just two months of launch. Gurman adds that the tech giant has already developed a large language model (LLM) to power its generative AI offerings, including the chatbot.
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Apple (NASDAQ: AAPL) is the most valuable company in the world with a market capitalization of just over $3 trillion. Why AI could open a new growth frontier for Apple It won't be surprising to see Apple actually move into the generative AI space. Generative AI offerings like chatbots could nicely complement Apple's huge installed base of devices and unlock growth.
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Apple (NASDAQ: AAPL) is the most valuable company in the world with a market capitalization of just over $3 trillion. Gurman adds that the tech giant has already developed a large language model (LLM) to power its generative AI offerings, including the chatbot. Why AI could open a new growth frontier for Apple It won't be surprising to see Apple actually move into the generative AI space.
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2023-08-01 00:00:00 UTC
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Apple (AAPL) to Report Q3 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/apple-aapl-to-report-q3-earnings%3A-whats-in-the-offing-0
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Apple AAPL is set to report its third-quarter fiscal 2023 results on Aug 3.
The company expects the to-be-reported quarter’s year-over-year revenue growth to be similar to that of the March quarter due to unfavorable forex.
The Zacks Consensus Estimate for revenues is currently pegged at $81.26 billion, indicating a decline of 2.05% from the year-ago quarter’s reported figure.
The consensus mark for earnings is currently pegged at $1.19 per share, up by a penny over the past 30 days and indicating a 0.83% decrease from the figure reported in the year-ago quarter.
Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the earnings surprise being 2.65% on average.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
iPhone Revenues to Suffer From Low Demand
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 54.1% of net sales in the last reported quarter, wherein sales increased 1.5% year over year to $51.33 billion.
Our model estimates for fiscal third-quarter iPhone net sales are pegged at $39.97 billion, down 1.7% year over year.
Apple is expected to have shipped roughly 44 million iPhones in the third quarter of fiscal 2023, per our model.
Per the latest Canalys report on worldwide smartphone shipments, Apple’s market share was unchanged year-over-year at 17% in second-quarter 2023, lagging Samsung’s 21%.
Services Growth to Slow Down in Q3
For the fiscal third quarter, Services revenues are expected to grow year over year (similar March quarter) despite challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
In the fiscal second quarter, Services revenues grew 5.5% from the year-ago quarter to $20.91 billion and accounted for 22% of sales.
Nevertheless, an expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store and an expanding installed base of devices.
Apple has more than 975 million paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows like Ted Lasso. Apple TV+ landed a record-breaking 54 Emmy Award nominations across its original titles this year.
The company’s animated movie, The Boy, the Mole, the Fox and the Horse, won an Oscar for Best Animated Short Film.
Apple’s impressive run at the award shows (Emmy, as well as Oscars) has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN prime video, Netflix NFLX and Disney’s DIS Disney+.
However, that has not essentially turned into a market share gain for Apple TV+. According to 9TO5Mac, which cited a JustWatch report, Amazon prime video was #1 in terms of market share (21%) in the United States, trailed by Netflix (20%). Max, Disney+ and Hulu had 15%,13% and 11% market share, respectively. Apple TV+ maintained its market share of 6%.
Nevertheless, Apple has been keeping no stone unturned to make the TV+ service a success. At a much more affordable price of $4.99, Apple TV+ has been benefiting from quality content with its strong portfolio of original shows and movies.
Our estimate for fiscal third-quarter Services net sales is pegged at $20.98 billion, up 7% year over year.
Currently, Apple has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report its third-quarter fiscal 2023 results on Aug 3. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The consensus mark for earnings is currently pegged at $1.19 per share, up by a penny over the past 30 days and indicating a 0.83% decrease from the figure reported in the year-ago quarter.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its third-quarter fiscal 2023 results on Aug 3. Our model estimates for fiscal third-quarter iPhone net sales are pegged at $39.97 billion, down 1.7% year over year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its third-quarter fiscal 2023 results on Aug 3. Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. Quote Let’s see how things have shaped up for the upcoming announcement.
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Apple AAPL is set to report its third-quarter fiscal 2023 results on Aug 3. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Our model estimates for fiscal third-quarter iPhone net sales are pegged at $39.97 billion, down 1.7% year over year.
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2023-08-01 00:00:00 UTC
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After Hours Most Active for Aug 1, 2023 : AMD, QQQ, PINS, C, F, RIG, XOM, EQT, AAPL, BND, YELL, CSCO
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-1-2023-%3A-amd-qqq-pins-c-f-rig-xom-eqt-aapl-bnd-yell-csco
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The NASDAQ 100 After Hours Indicator is up 14.38 to 15,732.39. The total After hours volume is currently 73,355,778 shares traded.
The following are the most active stocks for the after hours session:
Advanced Micro Devices, Inc. (AMD) is +6.41 at $124.01, with 8,233,476 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.17 at $382.96, with 3,667,150 shares traded. This represents a 50.62% increase from its 52 Week Low.
Pinterest, Inc. (PINS) is -1.2 at $27.76, with 3,016,881 shares traded. PINS's current last sale is 99.14% of the target price of $28.
Citigroup Inc. (C) is -0.02 at $47.05, with 3,014,948 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.3. C's current last sale is 93.63% of the target price of $50.25.
Ford Motor Company (F) is -0.04 at $13.38, with 2,124,207 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.39. F's current last sale is 95.57% of the target price of $14.
Transocean Ltd. (RIG) is +0.0187 at $8.39, with 1,879,433 shares traded. RIG's current last sale is 119.84% of the target price of $7.
Exxon Mobil Corporation (XOM) is unchanged at $106.62, with 1,812,946 shares traded. XOM's current last sale is 84.62% of the target price of $126.
EQT Corporation (EQT) is unchanged at $41.67, with 1,547,094 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.06. As reported by Zacks, the current mean recommendation for EQT is in the "buy range".
Apple Inc. (AAPL) is +0.195 at $195.80, with 1,486,639 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.19. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 1.19 per share, which represents a 120 percent increase over the EPS one Year Ago
Vanguard Total Bond Market ETF (BND) is unchanged at $71.78, with 1,257,755 shares traded. This represents a 3.89% increase from its 52 Week Low.
Yellow Corporation (YELL) is -0.41 at $3.49, with 1,244,175 shares traded.YELL is scheduled to provide an earnings report on 8/2/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is -0.45 per share, which represents a 115 percent increase over the EPS one Year Ago
Cisco Systems, Inc. (CSCO) is +0.14 at $52.80, with 1,220,738 shares traded. CSCO's current last sale is 96.88% of the target price of $54.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. Apple Inc. (AAPL) is +0.195 at $195.80, with 1,486,639 shares traded. Vanguard Total Bond Market ETF (BND) is unchanged at $71.78, with 1,257,755 shares traded.
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AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. Apple Inc. (AAPL) is +0.195 at $195.80, with 1,486,639 shares traded. The consensus earnings per share forecast is 1.19 per share, which represents a 120 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.195 at $195.80, with 1,486,639 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023. The consensus earnings per share forecast is 1.19 per share, which represents a 120 percent increase over the EPS one Year Ago
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. Apple Inc. (AAPL) is +0.195 at $195.80, with 1,486,639 shares traded. AAPL is scheduled to provide an earnings report on 8/3/2023, for the fiscal quarter ending Jun2023.
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14583.0
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2023-08-01 00:00:00 UTC
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TD Cowen Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/td-cowen-maintains-apple-aapl-outperform-recommendation
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nan
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nan
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Fintel reports that on August 1, 2023, TD Cowen maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 2.14% Downside
As of July 6, 2023, the average one-year price target for Apple is 192.24. The forecasts range from a low of 141.40 to a high of $252.00. The average price target represents a decrease of 2.14% from its latest reported closing price of 196.45.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.41%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6389 funds or institutions reporting positions in Apple. This is an increase of 12 owner(s) or 0.19% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 23.11%. Total shares owned by institutions decreased in the last three months by 2.10% to 9,901,054K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.79% ownership of the company. In it's prior filing, the firm reported owning 895,136K shares, representing an increase of 2.23%. The firm increased its portfolio allocation in AAPL by 19.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,280K shares representing 2.94% ownership of the company. In it's prior filing, the firm reported owning 459,387K shares, representing an increase of 1.27%. The firm increased its portfolio allocation in AAPL by 18.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 347,041K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 345,686K shares, representing an increase of 0.39%. The firm increased its portfolio allocation in AAPL by 18.16% over the last quarter.
Geode Capital Management holds 285,171K shares representing 1.80% ownership of the company. In it's prior filing, the firm reported owning 282,750K shares, representing an increase of 0.85%. The firm increased its portfolio allocation in AAPL by 18.38% over the last quarter.
Price T Rowe Associates holds 234,017K shares representing 1.48% ownership of the company. In it's prior filing, the firm reported owning 226,281K shares, representing an increase of 3.31%. The firm increased its portfolio allocation in AAPL by 22.14% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
SCHEDULE 13G RELEVANT SUBSIDIARIES AND MEMBERS OF FILING GROUP
SCHEDULE 13G JOINT FILING AGREEMENT PURSUANT TO RULE 13d-1(k)(1)
Form of CEO Restricted Stock Unit Award Agreement under 20
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 1, 2023, TD Cowen maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 23.11%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 1, 2023, TD Cowen maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 23.11%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 1, 2023, TD Cowen maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 23.11%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on August 1, 2023, TD Cowen maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 3.95%, an increase of 23.11%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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14584.0
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2023-08-01 00:00:00 UTC
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PREVIEW-Apple heads for largest Q3 revenue drop since 2016 as iPhone sales slow
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AAPL
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https://www.nasdaq.com/articles/preview-apple-heads-for-largest-q3-revenue-drop-since-2016-as-iphone-sales-slow
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nan
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nan
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By Yuvraj Malik
Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said.
The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016.
IPhone sales likely fell more than 2% in the period, according to 24 analysts polled by Visible Alpha, compared with a near 3% increase a year earlier and a 1.5% rise in the quarter ended March.
The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
"Apple is not immune to general macroeconomic trends and will continue to set the pace (for the smartphone industry) for quite some time," said Bob O'Donnell, founder of TECHnalysis Research.
With details about the new iPhone 15 expected next month - which could sport the more universally accepted USB-C port on some models - iPhone sales could get a small nudge in the July-September quarter, said analysts, who predicted a mixed bag of results for the period.
Apple traditionally does not provide quarterly outlook, but analysts expect the company may elaborate how it is using AI to improve its upcoming products.
The company has so far avoided buzzwords like AI at its events, in a contrast with tech giants including Alphabet and Microsoft. Last month, Bloomberg News reported Apple has quietly built its own framework to create large language models known as "Ajax".
"We expect Apple's updated comments on its AI aspirations to be a focus," analysts at Well Fargo wrote in a research note, adding that any commentary around the technology could boost the stock.
IPHONE SLOWDOWN
Much of the weakness in iPhone sales is expected to come from the Americas, where revenue is set to fall 6%, analysts said. Sales from China - Apple's third-largest market - are expected to be flat due to an uneven economic recovery, though the company has fared better than Android rivals in the country.
"Most investors feel a soft China could pose a risk to the numbers and further commentary, but Apple's position in China is on a solid footing and the company is likely to see only a small, if any, decline in iPhone sales," Piper Sandler analysts said.
"If there is any sales weakness from China, it is likely to be easily offset by strong sales momentum in India," they added.
Mac and iPad sales are expected to fall by 10.6% and 11.2%, respectively, according to Refinitiv data.
But the services business - home to Apple's App Store and audio and video streaming services - could be a bright spot thanks to an uptick in the ad market, some analysts said.
The business, which accounts for roughly a quarter of Apple's total revenue, is expected to grow 5.7% as it also benefits from price increases for iCloud subscriptions, though the pace is broadly similar to that in the preceding three quarters.
Apple's iPhone sales slump from pandemic highs https://tmsnrt.rs/3qauvtl
(Reporting by Yuvraj Malik in Bengaluru; Editing by Sayantani Ghosh and Maju Samuel)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. IPhone sales likely fell more than 2% in the period, according to 24 analysts polled by Visible Alpha, compared with a near 3% increase a year earlier and a 1.5% rise in the quarter ended March. The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016. Sales from China - Apple's third-largest market - are expected to be flat due to an uneven economic recovery, though the company has fared better than Android rivals in the country.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. With details about the new iPhone 15 expected next month - which could sport the more universally accepted USB-C port on some models - iPhone sales could get a small nudge in the July-September quarter, said analysts, who predicted a mixed bag of results for the period. "Most investors feel a soft China could pose a risk to the numbers and further commentary, but Apple's position in China is on a solid footing and the company is likely to see only a small, if any, decline in iPhone sales," Piper Sandler analysts said.
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By Yuvraj Malik Aug 1 (Reuters) - Apple AAPL.O is likely to report a dip in iPhone sales in the April-June quarter as shoppers held out for a new model in a slow economy, making it important for the company to detail how it is using artificial intelligence to augment growth, analysts said. The world's most valuable firm will wrap up Big Tech earnings on Thursday, with a likely 1.6% drop in total quarterly revenue, according to Refinitiv - its steepest drop in third-quarter revenue since 2016. The quarterly report could mark a break from an upbeat earnings season for the likes of Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O that have shown resilience in their cloud businesses and an uptick in digital ad sales.
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14585.0
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2023-08-01 00:00:00 UTC
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SPOT, TTWO, HEAR: 3 Strong-Buy-Rated Entertainment Stocks Analysts Love
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AAPL
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https://www.nasdaq.com/articles/spot-ttwo-hear%3A-3-strong-buy-rated-entertainment-stocks-analysts-love
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nan
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nan
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Consumer spending may be in a bit of a funk, but the tides could turn higher as expectations and estimates become easier to beat. Even in the face of macro uncertainty, the following at-home entertainment stocks boast Strong Buys for the analyst community right now. As broader markets flirt with all-time highs again, it may be worth entertaining your portfolio with the following names while they're still relatively out of favor among investors.
Undoubtedly, the lockdown tailwind is long over for the broader basket of at-home entertainment plays. Still, analysts are bullish on the following names while they look to break out of their post-lockdown hangovers. Therefore, let’s check in with the incredibly useful TipRanks Comparison Tool to get a better grasp of the following Strong-Buy-rated stocks in the at-home entertainment space.
Spotify Technology (NASDAQ:SPOT)
Up first, we have Sweden-based streaming music company Spotify, which has seen its shares more than double from the depths of late last year. The company has faced stiff competition from the likes of Apple (NASDAQ:AAPL) Music and other rivals in big tech.
Moving ahead, the music streaming market is about to become much more crowded, with social media sensation TikTok looking to get in on the music streaming action. Undoubtedly, TikTok has gobbled up the lunch of many firms in the social media space. As the video-based social media platform gets into music streaming, I fear Spotify may lose some of its competitive edge. As a result, I'm staying neutral on SPOT stock for now in light of industry uncertainties.
Like video streaming, music streaming is quickly becoming commoditized, with many firms looking to get a slice of the market. Apple is just one big-tech company that can include music streaming as part of an entertainment services bundle. Spotify may have Joe Rogan, but it doesn't have a diversified basket of entertainment services that can enable it to create a bundle that's competitive against a company like Apple.
Now, Spotify has a pretty loyal fanbase, but their loyalty will be tested following Spotify Premium subscription price hikes while TikTok enters the market. My guess is that it'll be an uphill battle for the firm as it also grapples with looming macro headwinds.
What is the Price Target for SPOT Stock?
Spotify's a Strong Buy on Wall Street, with 20 Buys and five Holds assigned in the past three months. The average SPOT stock price target of $178.48 implies 18.3% upside potential from here.
Take-Two Interactive Software (NASDAQ:TTWO)
Take-Two is a video game stock that really looks like a compelling takeover target amid ongoing industry consolidation. Still, investors shouldn't buy any stock just because they expect it'll eventually be acquired. Fortunately, Take-Two has catalysts that could extend its rally going into the second half. Its much-awaited Grand Theft Auto VI (GTA VI) title could be released at some point in 2024. If the latest iteration in the series can match its predecessors, the stock could be in for a potential breakout in two years.
At writing, TTWO stock is up more than 60% from its August 2022 low but off around 29% from its 2021 all-time high of nearly $215 per share. Despite the hot run, I'm staying bullish on TTWO stock, as I view it as having one of the widest moats in the entertainment space today. GTA VI is a big deal, and anticipation for the title may have already helped the stock ricochet off multi-year lows.
The stock trades at 48.1 times forward price-to-earnings, which may seem elevated. However, factor in the earnings jolt that a blockbuster like GTA VI can provide, and the multiple becomes more than palatable.
In the meantime, I expect takeover rumors and GTA excitement to keep the good times going.
What is the Price Target for TTWO Stock?
Take-Two's a Strong Buy, with 14 Buys and three Holds assigned by analysts in the past three months. Nonetheless, the average TTWO stock price target of $155.53 entails a modest 2.5% gain from here.
Turtle Beach (NASDAQ:HEAR)
If you're looking for a high-risk/high-reward way to play both gaming and audio, Turtle Beach may be an intriguing option as it looks to recover from its 84% plunge off its 2021 high. Turtle Beach is a gaming tech company that makes high-quality peripherals, most notably headsets.
Demand really boomed during the lockdown days, only to go bust in the years that followed. With a new line in the sand drawn at below $12 per share, I do view HEAR stock as an intriguing small-cap ($190 million market cap) stock that could experience sizeable upside once consumer trends gradually shift.
Indeed, Turtle Beach is more of a discretionary play than the likes of other entertainment tech companies like Spotify. That may be a good thing, given where we stand in the current business cycle. A recession hasn't begun yet (if it even ends up happening), but Turtle Beach stock has already gone bust in a big way. However, with Cris Keirn stepping in as interim CEO just weeks ago, I do think Turtle Beach has the tools to break out of its shell.
At 0.8 times price-to-sales and 2.1 times price-to-book, HEAR stock trades at a significant discount to the computer hardware industry averages of 1.6 and 5.8, respectively. It's a deep-value play that's almost guaranteed to be a choppy ride. If you're young and brave, though, I think the stock's intriguing.
What is the Price Target for HEAR Stock?
Turtle Beach is a Strong Buy, with four unanimous Buy ratings. The average HEAR stock price target of $14.00 implies 30.9% upside.
Conclusion
Entertainment tech plays look intriguing, according to Wall Street analysts. Of the three names mentioned, though, the analyst community expects the most upside from Turtle Beach.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company has faced stiff competition from the likes of Apple (NASDAQ:AAPL) Music and other rivals in big tech. Spotify may have Joe Rogan, but it doesn't have a diversified basket of entertainment services that can enable it to create a bundle that's competitive against a company like Apple. However, with Cris Keirn stepping in as interim CEO just weeks ago, I do think Turtle Beach has the tools to break out of its shell.
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The company has faced stiff competition from the likes of Apple (NASDAQ:AAPL) Music and other rivals in big tech. Even in the face of macro uncertainty, the following at-home entertainment stocks boast Strong Buys for the analyst community right now. The average SPOT stock price target of $178.48 implies 18.3% upside potential from here.
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The company has faced stiff competition from the likes of Apple (NASDAQ:AAPL) Music and other rivals in big tech. Even in the face of macro uncertainty, the following at-home entertainment stocks boast Strong Buys for the analyst community right now. Turtle Beach (NASDAQ:HEAR) If you're looking for a high-risk/high-reward way to play both gaming and audio, Turtle Beach may be an intriguing option as it looks to recover from its 84% plunge off its 2021 high.
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The company has faced stiff competition from the likes of Apple (NASDAQ:AAPL) Music and other rivals in big tech. Even in the face of macro uncertainty, the following at-home entertainment stocks boast Strong Buys for the analyst community right now. Undoubtedly, the lockdown tailwind is long over for the broader basket of at-home entertainment plays.
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14586.0
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2023-08-01 00:00:00 UTC
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What to Watch When Amazon Reports Q2 Earnings This Week
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AAPL
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https://www.nasdaq.com/articles/what-to-watch-when-amazon-reports-q2-earnings-this-week
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nan
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nan
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This week, both Apple (AAPL) and Amazon (AMZN) are scheduled to release their quarterly earnings and wrap up the reporting season for FAANG stocks. With a year-to-date gain of 57%, Amazon is outperforming the tech-heavy Nasdaq Composite ($NASX) in 2023, and is the second-best performing FAANG stock of the year – trailing only Meta Platforms (META) which has soared a whopping 167% this year amid its focus on “efficiency.”www.barchart.com
While Amazon stock is outperforming this year, it shed almost half of its value in 2022. The stock underperformed its tech peers in 2021, as well, and barely finished that year in the green - lagging the broader market by a wide margin.
Amazon to Report Q2 Earnings on Thursday
Amazon is scheduled to report its Q2 earnings after the close this Thursday, Aug. 3. Analysts expect the Seattle-based company to post revenues of $131.4 billion for the period, up 8.3% year-over-year and within the $127 billion-$133 billion guidance range provided with Amazon's Q1 earnings release.
Ahead of the report, analysts expect Amazon’s earnings per share (EPS) to rise 240% to $0.34 in the quarter. The company does not provide EPS guidance - but during the Q1earnings call Amazon forecast Q2 operating income between $2 billion and $5.5 billion, compared to $3.3 billion in the second quarter of 2022.
www.barchart.com
Beyond these headline numbers, investors should watch for several other key metrics in Amazon’s upcoming earnings release.
AWS, Ad Results in Focus
Investors should watch the revenue growth and margins of Amazon's North America segment for signs of continued improvement. In Q1 2023, the segment’s revenues rose 11% while operating income came in at $0.9 billion, compared to an operating loss of $1.6 billion in the first quarter of 2022.
The enterprise-focused Amazon Web Services (AWS) business in particular is one to watch, as revenue growth for the segment fell to an all-time low of 16% in the first quarter. The cloud segment was previously a key driver of Amazon’s profitability and cash flows; last year, only AWS posted an operating profit, while both the North America and International segments posted an operating loss.
In fact, Amazon stock fell after its Q1 2023 earnings release, as management's commentary on the lucrative AWS cloud business overshadowed the company's earnings beat.
As a point of comparison, competitor Alphabet (GOOG) reported a 28% rise in its cloud revenues for the second quarter, while Microsoft (MSFT) said that Azure cloud revenues rose 26% YoY over the period.
Elsewhere, Amazon said its 2023 Prime Day, held earlier in July, was its biggest ever. During theearnings call the online retailer might comment on whether it is looking to host a second Prime Day in 2023 to bolster results, as in 2022.
Investors should also watch the performance of Amazon's advertising business, which generated revenues of $9.5 billion in Q1 2023 – 21% higher than the corresponding period last year. The segment has performed well, despite the overall slowdown in the digital ad market.
What to Watch on the Conference Call
Investors should also tune in for updates to Amazon’s guidance, especially on that crucial AWS segment.
During the Q1 2023earnings call Amazon’s CFO Brian Olsavsky said, “customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter.” When the company reports Q2 results later this week, investors should look for any change in tone or additional insights into how AWS customers are budgeting for the cloud amid a challenging environment for corporate spending.
During theearnings call AMZN might also talk about its artificial intelligence (AI) initiatives. The company is looking to increase delivery speeds and cut logistics costs by implementing AI, and is reportedly looking to add generative AI features to the shopping platform. Plus, a leaked email suggests Amazon has also formed a new internal team focused on AI, reporting directly to CEO Andy Jassy.
Finally, in response to slower revenue growth, many large-cap U.S. tech companies have resorted to aggressive cost cuts to boost their earnings, and Amazon is no exception. The company has already taken several steps to lower expenses - like pausing the construction of its HQ2 in Virginia, and cutting 27,000 corporate jobs. If Amazon provides more insights into its cost-cutting efforts on theearnings call it could be a positive catalyst.
Wall Street Analysts are Bullish on Amazon
Ahead of its quarterly results, Wall Street analysts are bullish on Amazon stock, and most rate it a Strong Buy.
www.barchart.com
Of the 36 analysts that cover AMZN, 31 rate it a Strong Buy, 4 a Moderate Buy, and 1 a Hold. None of the analysts has a Sell rating on Amazon, and its mean target price of $147.14 is 10% above current stock prices.
Ahead of this week's earnings release, Evercore ISI maintained its overweight rating on the stock, and referred to AWS revenue growth as the “A-word” that could unleash value in AMZN. The brokerage has listed AMZN as one of its top Large Cap picks.
Bank of America (BAC) is also bullish on AMZN heading into earnings, and believes that improvement in retail margins and AWS growth would support an expansion of the stock’s multiples.
The ball is in Amazon's court as it prepares to release Q2 earnings later this week and wrap up what has been a mixed earnings season for FAANG shares so far. After a tough first quarter for the segment, don't be surprised if it's those AWS results, specifically, that drive the stock's direction immediately after earnings.
On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , MSFT , GOOG . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week, both Apple (AAPL) and Amazon (AMZN) are scheduled to release their quarterly earnings and wrap up the reporting season for FAANG stocks. On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , MSFT , GOOG . Finally, in response to slower revenue growth, many large-cap U.S. tech companies have resorted to aggressive cost cuts to boost their earnings, and Amazon is no exception.
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This week, both Apple (AAPL) and Amazon (AMZN) are scheduled to release their quarterly earnings and wrap up the reporting season for FAANG stocks. On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , MSFT , GOOG . AWS, Ad Results in Focus Investors should watch the revenue growth and margins of Amazon's North America segment for signs of continued improvement.
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This week, both Apple (AAPL) and Amazon (AMZN) are scheduled to release their quarterly earnings and wrap up the reporting season for FAANG stocks. On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , MSFT , GOOG . With a year-to-date gain of 57%, Amazon is outperforming the tech-heavy Nasdaq Composite ($NASX) in 2023, and is the second-best performing FAANG stock of the year – trailing only Meta Platforms (META) which has soared a whopping 167% this year amid its focus on “efficiency.”www.barchart.com While Amazon stock is outperforming this year, it shed almost half of its value in 2022.
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This week, both Apple (AAPL) and Amazon (AMZN) are scheduled to release their quarterly earnings and wrap up the reporting season for FAANG stocks. On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , MSFT , GOOG . Ahead of the report, analysts expect Amazon’s earnings per share (EPS) to rise 240% to $0.34 in the quarter.
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14587.0
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2023-08-01 00:00:00 UTC
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IVV, SEMI: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/ivv-semi%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 9,600,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.1%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the SEMI ETF, which added 400,000 units, for a 40.0% increase in outstanding units.
VIDEO: IVV, SEMI: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the SEMI ETF, which added 400,000 units, for a 40.0% increase in outstanding units. VIDEO: IVV, SEMI: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 9,600,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the SEMI ETF, which added 400,000 units, for a 40.0% increase in outstanding units. VIDEO: IVV, SEMI: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 9,600,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the SEMI ETF, which added 400,000 units, for a 40.0% increase in outstanding units. VIDEO: IVV, SEMI: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P 500 ETF, which added 9,600,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is off about 0.5%, and Microsoft is lower by about 0.1%. And on a percentage change basis, the ETF with the biggest increase in inflows was the SEMI ETF, which added 400,000 units, for a 40.0% increase in outstanding units.
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14588.0
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2023-08-01 00:00:00 UTC
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Amazon & Apple Earnings: What to Expect
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AAPL
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https://www.nasdaq.com/articles/amazon-apple-earnings%3A-what-to-expect
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nan
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nan
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Earnings season continues to chug along, with the period kicking into a much higher gear this week. So far, the Q2 cycle has been positive, helping reassure investors and boosting overall sentiment within the market.
And this week, we have many notable companies slated to report, including Amazon AMZN and Apple AAPL. Both companies will report after the market’s close on Thursday, August 3rd. Both stocks have staged big rebounds year-to-date, outperforming the general market handily.
But how do expectations stack up heading into their respective releases? Let’s take a closer look.
Amazon
Analysts have kept their earnings expectations muted for the quarter to be reported over the last several months, with the $0.34 per share estimate unchanged. The market heavyweight is expected to see a solid recovery, with the value reflecting a 240% improvement in earnings from the year-ago quarter.
Image Source: Zacks Investment Research
Amazon’s top line is also forecasted to see growth; the Zacks Consensus Sales Estimate for the release presently stands at $131.5 billion, 8.5% higher year-over-year. It’s worth noting that the quarterly estimate is up a fractional 0.3% since the end of May.
Investors will wisely monitor Amazon Web Services (AWS) results. The Zacks Consensus Estimate for AWS net sales stands at $21.5 billion, indicating a 9% improvement from year-ago sales of $19.7 billion and reflecting a slight slowdown relative to prior year-over-year growth rates.
The company exceeded the consensus expectation for AWS net sales in its latest release, snapping a streak of back-to-back misses.
Image Source: Zacks Investment Research
It’s worth noting that Amazon has posted sizable EPS beats in back-to-back releases, exceeding expectations by 47% and 40%. Below is a chart illustrating the share reaction to each of the company’s previous three prints.
Image Source: Zacks Investment Research
Apple
Apple’s $1.19 per share estimate for the upcoming release is up a small 0.8% over the last 60 days, reflecting slight bullishness. The company’s earnings are forecasted to retract a modest 1% from the year-ago quarter.
Image Source: Zacks Investment Research
The tech titan is expected to post $81.3 billion in quarterly revenue, which reflects a modest 2% decline from year-ago sales of $83.0 billion. The quarterly estimate is down a fractional 0.1% since the end of May, reflecting neutrality among analysts.
While iPhone revenue remains important, Apple’s Services results (cloud services, App Store, Apple Music, Apple Pay, and others) will also be closely monitored, as it’s quickly become a new source of growth for the company.
The Zacks Consensus Estimate for Services revenue resides at $20.8 billion, 6% higher than the year-ago quarter. In its latest release, Services revenue of $20.9 billion reflected a quarterly record.
And to top it off, our expectation for quarterly iPhone revenue stands at $40.1 billion, 1.4% lower than the year-ago quarter. The technology titan exceeded iPhone revenue expectations by 4% in its last quarter.
Apple posted results above estimates in its latest release, with shares reacting favorably post-earnings. Below is a chart illustrating the share reaction to each of the company’s previous three prints.
Image Source: Zacks Investment Research
Bottom Line
With an extensive list of companies scheduled to unveil quarterly results this week, investors will have more than plenty to remain busy with. So far, earnings have been better than expected, helping us avoid the ‘earnings apocalypse’ many had feared.
On Thursday, after the market’s close, we’ll hear from heavyweights Apple AAPL and Amazon AMZN.
Analysts have primarily left their top and bottom line expectations unchanged for both companies over the last several months, with investors likely to focus on Amazon’s AWS and Apple’s Services results.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And this week, we have many notable companies slated to report, including Amazon AMZN and Apple AAPL. On Thursday, after the market’s close, we’ll hear from heavyweights Apple AAPL and Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And this week, we have many notable companies slated to report, including Amazon AMZN and Apple AAPL. On Thursday, after the market’s close, we’ll hear from heavyweights Apple AAPL and Amazon AMZN.
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And this week, we have many notable companies slated to report, including Amazon AMZN and Apple AAPL. On Thursday, after the market’s close, we’ll hear from heavyweights Apple AAPL and Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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And this week, we have many notable companies slated to report, including Amazon AMZN and Apple AAPL. On Thursday, after the market’s close, we’ll hear from heavyweights Apple AAPL and Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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14589.0
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2023-08-01 00:00:00 UTC
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3 Tips on How to Steer Clear of "Value Traps"
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AAPL
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https://www.nasdaq.com/articles/3-tips-on-how-to-steer-clear-of-value-traps
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nan
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nan
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What is a “Value Trap”?
In Wall Street circles, a “value trap” refers to a situation where investors are drawn to a particular stock because its price appears to be very low, often with seemingly attractive metrics such as a low price-to-earnings (P/E) ratio or price-to-book (P/B) ratio. However, more times than not, many amateur investors fail to understand that there is often a good reason for the low price, such as poor fundamentals or slowing earnings growth. In a value trap, though the price seems low already, the fundamental issues continue to erode value over time, though they once appeared to be a bargain. Avoiding value traps requires an investor to look beyond a low valuation ratio and consider other factors. Below are 3 signs you may be in a value trap:
The Company has “Caretaker Management”
When a company has a long and successful past, management may fall into the “caretaker” trap. In other words, the company has so much cash on hand, and executives get paid such large salaries that there is little motivation to grow the business. For example, in 2022, AT&T (T) CEO John Stankey hauled in more than $20 million in total compensation. Meanwhile, AT&T’s EPS fell from 2.63 to 2.57 per share during the same time. In fact, AT&T’s earnings have stagnated for years.
Image Source: Zacks Investment Research
Stick to companies that are constantly innovating, such as Apple (AAPL). Though Apple is a massive company, management is always searching for opportunities. Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. In the long run, the price of a stock is directly correlated to earnings growth.
Dividends May Lure You In
Stocks like Verizon (VZ) pay healthy dividends (7.7%). While a 7.7% dividend may be attractive to income-focused investors, investors need to remember that dividends are not paid out in a vacuum. In other words, if a stock is plummeting, even a high dividend will not lead you to profitability. For example, though Verizon’s dividend has increased over the past five years, the stock is down 42%.
Image Source: Zacks Investment Research
Not only would you be lagging if you were in a stock like VZ over that period, you would also have the added insult of injury of opportunity cost. For instance, the Nasdaq 100 is up 44.3% over the same time.
You’re in the Wrong Market Environment
From a total-return perspective, non-value stocks tend to outperform value stocks. Below is the SPDR S&P 500 Value ETF (SPYV) versus the S&P 500 Index:
Image Source: Zacks Investment Research
Nevertheless, there are times (such as 2022) when value stocks are in play. Now is not one of those times.
Image Source: Zacks Investment Research
Remember, value stocks are beholden to the market environment like any other stocks.
GARP is The Solution
A GARP (Growth at a Reasonable Price) Strategy can help investors avoid value traps by balancing growth potential and valuation. Warren Buffett holding Occidental Petroleum (OXY) is a great example – the company has a history of strong earnings growth and a reasonable valuation.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Conclusion
Sometimes, when you pay for a “cheap stock,” you get what you pay for. Caretaker management, slow growth, and the wrong environment could mean you’re in a classic “value trap.” Use a GARP strategy to balance growth and value and get the best of both worlds.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Stick to companies that are constantly innovating, such as Apple (AAPL). Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports To read this article on Zacks.com click here.
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Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Stick to companies that are constantly innovating, such as Apple (AAPL). Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods.
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Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Stick to companies that are constantly innovating, such as Apple (AAPL). Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods.
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Image Source: Zacks Investment Research Stick to companies that are constantly innovating, such as Apple (AAPL). Since 2016, AAPL has nearly tripled its annual EPS by innovating and unveiling new products such as the Apple Watch and the wildly popular AirPods. Click to get this free report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports To read this article on Zacks.com click here.
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14590.0
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2023-08-01 00:00:00 UTC
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India asks Tesla to copy Apple in pairing Chinese, Indian suppliers -sources
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AAPL
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https://www.nasdaq.com/articles/india-asks-tesla-to-copy-apple-in-pairing-chinese-indian-suppliers-sources
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nan
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nan
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By Nikunj Ohri, Shivangi Acharya and Aftab Ahmed
NEW DELHI, Aug 1 (Reuters) - As Tesla TSLA.O examines building a plant in India, officials have asked the company to emulate Apple in finding local firms to partner with any Chinese suppliers involved, according to three government sources with direct knowledge of the matter.
Tesla has been in talks with India for weeks about setting up a factory which will potentially build a $24,000 car for local sales and exports, however strained India-China ties threaten to complicate Tesla's plans for bringing in Chinese suppliers.
Tesla founder Elon Musk is seeking to expand beyond the company's biggest foreign base of China where regulatory approvals for expansion are slow to come.
But Chinese suppliers could be critical if Tesla were to establish a plant in India and keep costs in check for a cheap EV. India does not have local suppliers for components such as battery cells, with even India's largest EV maker, Tata Motors, importing them from China.
In meetings with officials in New Delhi, Tesla executives informed the Indian government that it would like to have some of its vendors from China set up base locally to boost its supply chain, three Indian officials with direct knowledge of talks said.
In response, officials told Tesla that granting approvals for wholly-owned Chinese companies in India could be difficult due to intense scrutiny of Chinese firms since a 2020 border clash between the two countries.
Instead, the Indian officials said they had suggested a workaround in which Tesla would emulate the approach of Apple AAPL.O. The U.S. smartphone giant in recent months has obtained approvals to bring Chinese suppliers to India after they found local joint-venture partners.
Tesla, the spokesperson of the Indian government and the trade ministry did not respond to requests for comment.
Apple has a fast-growing supply chain in India which includes Taiwan's Foxconn assembling its iPhones.
New Delhi in recent months has been approving some Chinese suppliers' JV partnerships with Indian companies on a case-to-case basis, one of the government sources said.
India remains hesitant about allowing Chinese companies, especially automakers, to expand in the country, however.
Last month, China's BYD 002594.SZtold its Indian partner it would shelve a new $1 billion investment plan to build EVs there after its investment proposal faced scrutiny from New Delhi.
Without specifying Chinese vendors, a fourth source with direct knowledge of Tesla's discussions in India said the U.S. company is looking at supply chain partners for its India factory.
One of the Indian officials said pairing local and Chinese players could work for Tesla.
"Tesla has been demanding a separate ecosystem for their (Chinese) vendor base ... those approvals can be granted on a case-to-case basis if there an Indian joint venture partner," the official said.
(Reporting by Nikunj Ohri and Shivangi Acharya and Nikunj Ohri; additional reporting by Aditi Shah; editing by Aditya Kalra and Jason Neely)
((Shivangi.Acharya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Instead, the Indian officials said they had suggested a workaround in which Tesla would emulate the approach of Apple AAPL.O. By Nikunj Ohri, Shivangi Acharya and Aftab Ahmed NEW DELHI, Aug 1 (Reuters) - As Tesla TSLA.O examines building a plant in India, officials have asked the company to emulate Apple in finding local firms to partner with any Chinese suppliers involved, according to three government sources with direct knowledge of the matter. Tesla founder Elon Musk is seeking to expand beyond the company's biggest foreign base of China where regulatory approvals for expansion are slow to come.
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Instead, the Indian officials said they had suggested a workaround in which Tesla would emulate the approach of Apple AAPL.O. By Nikunj Ohri, Shivangi Acharya and Aftab Ahmed NEW DELHI, Aug 1 (Reuters) - As Tesla TSLA.O examines building a plant in India, officials have asked the company to emulate Apple in finding local firms to partner with any Chinese suppliers involved, according to three government sources with direct knowledge of the matter. In meetings with officials in New Delhi, Tesla executives informed the Indian government that it would like to have some of its vendors from China set up base locally to boost its supply chain, three Indian officials with direct knowledge of talks said.
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Instead, the Indian officials said they had suggested a workaround in which Tesla would emulate the approach of Apple AAPL.O. By Nikunj Ohri, Shivangi Acharya and Aftab Ahmed NEW DELHI, Aug 1 (Reuters) - As Tesla TSLA.O examines building a plant in India, officials have asked the company to emulate Apple in finding local firms to partner with any Chinese suppliers involved, according to three government sources with direct knowledge of the matter. In meetings with officials in New Delhi, Tesla executives informed the Indian government that it would like to have some of its vendors from China set up base locally to boost its supply chain, three Indian officials with direct knowledge of talks said.
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Instead, the Indian officials said they had suggested a workaround in which Tesla would emulate the approach of Apple AAPL.O. By Nikunj Ohri, Shivangi Acharya and Aftab Ahmed NEW DELHI, Aug 1 (Reuters) - As Tesla TSLA.O examines building a plant in India, officials have asked the company to emulate Apple in finding local firms to partner with any Chinese suppliers involved, according to three government sources with direct knowledge of the matter. In meetings with officials in New Delhi, Tesla executives informed the Indian government that it would like to have some of its vendors from China set up base locally to boost its supply chain, three Indian officials with direct knowledge of talks said.
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14591.0
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2023-08-01 00:00:00 UTC
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3 Growth Stocks to Buy Before the Big Bull Rally
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-before-the-big-bull-rally
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nan
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nan
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It's a tricky time for investors. The economy seems like it's finding a footing that will allow it to sidestep a recession. But thanks to the S&P 500's 20% rally just since March's low, further gains could be a bit tougher to muster. A bunch of stocks already look and feel overvalued at their current price.
As the old adage goes, though, expect it when you least expect it. There's no particular reason the market can't follow its current path with even more bullishness, with or without suffering a pullback first. That's why you may not want to wait on the sidelines too long hoping for a big pullback before stepping into growth stocks.
Let's look at three such tickers to consider stepping into sooner rather than later. Spoiler alert: Two of these three names can be found on several lists of stocks to buy. While popular picks, that doesn't necessarily mean they're overcrowded trades right now.
1. Apple
Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Don't let that deter you from stepping into a position, though. This company is the real deal and will remain so for the foreseeable future.
You mostly know it by its biggest profit center, the iPhone. The popular smartphone not only accounts for roughly half of the company's total revenue, but it is also the single-best-selling smartphone brand in the world. Apple didn't reach that point and stay there with mere luck.
The reason the company is such a powerhouse (and the reason Apple is a perennial must-have stock) isn't just the high quality of its flagship device. It's the company's loyal customer base who are now fueling the growth of its digital ecosystem.
Consumer Intelligence Research Partners quantifies this with two telling data nuggets. First, of all consumers using Android-powered mobile devices, only 4% of them are former owners of Apple devices. Second, of all current iPhone owners, 14% of them are former Android users. The vast majority of Android-to-iPhone users switched because they had problems with their Android phones and were seeking a higher-quality device.
And once someone joins the iPhone fray, they tend to dive all the way into the use of their device. Numbers from Sensor Tower indicate iPhone and other iOS users collectively spend nearly twice as much on apps as Android users spend at the Google Play store.
The point is, Apple is building a much more compelling, seamless, revenue-extracting experience, and consumers are willing to pay a premium for it over and over again. That's why Apple has been one of the market's most rewarding stocks in recent years.
2. Etsy
If you think Etsy (NASDAQ: ETSY) is just a place for grandma to sell her hand-knitted hats, you may want to take a look at what the website's actually become since its launch back in 2005. It's now a place to purchase a variety of vintage (used), custom-made, one-of-a-kind clothing, decor, accessories, gifts, toys, and more.
More to the point, it's become quite "cool," providing a sales platform for handcrafters like no other platform out there.
That hasn't helped the stock of late. While shares soared during the COVID-19 pandemic simply because a massive amount of commerce moved online during that time, the bulk of that gain was given back last year. The stock's continued to drift lower this year, with most investors looking for more aggressive growth -- particularly from the tech sector. The lethargic economy hasn't helped.
Don't be fooled by this subpar performance, though. Etsy's doing what it's supposed to be doing. Sales are expected to improve 7% this year before accelerating to a growth rate of 10% in 2024. That should pump up 2022's projected bottom line of $2.38 per share to $3.05 per share next year. Then things should really take off. The analyst community is calling for per-share profits of nearly $8 by 2027 on a near-doubling of its current top line.
The key to this growth is a seismic shift in consumer preferences. Perhaps prompted by the pandemic, a bunch of former fans of mass-made merchandise sold through chain stores are now favoring more personalized, one-of-a-kind goods. Research from IMARC Group suggests the global handicraft market will grow at an annualized pace of more than 9% through 2028, playing right into the hand Etsy is holding.
3. Amazon
OK, Amazon (NASDAQ: AMZN) is at the extreme other end of the same spectrum Etsy's on, by virtue of being one of the mass market institutions some consumers are increasingly shunning. But keep things in perspective. Amazon is still the most convenient and cheapest place to purchase plenty of goods. Not everything you want is better if it's handmade.
And there are two huge other reasons Amazon stock is a compelling prospect right now. The first of these reasons is cooling inflation.
Investors keeping close tabs on the company's recent quarterly reports will likely know Amazon's e-commerce operations slipped into the red last year in the wake of soaring costs. These losses were more than offset by strong profit growth from its cloud computing arm Amazon Web Services.
We're finally starting to see some inflation relief, however. Amazon's North American arm quietly eased back to profitability in the first quarter of this year thanks to lower expenses, and price growth has further abated in the meantime. The Bureau of Economic Analysis' personal consumption expenditures index -- the inflation gauge the Federal Reserve watches most closely -- fell to a two-year-low growth rate (excluding food and energy) of only 4.1% in June. As such, look for Amazon's e-commerce operation to continue improving its profit margins.
And the second reason Amazon is a buy? That's the aforementioned Amazon Web Services. It's still an incredible growth engine and will be for a long while. During the first quarter of this year, Amazon Web Services' revenue grew another 16% year over year, and while its year-over-year operating profits actually fell in the quarter, that drop's purely a function of inflation as well. Once those costs start to cool off, Amazon Web Services' profit margins could explode back to pre-2022's impressive levels.
In this vein, know that Mordor Intelligence expects the cloud computing market to grow by more than 16% per year through 2028. As the cloud computing market leader, Amazon is positioned to win at least its fair share of that growth.
10 stocks we like better than Amazon.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 27, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Etsy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Investors keeping close tabs on the company's recent quarterly reports will likely know Amazon's e-commerce operations slipped into the red last year in the wake of soaring costs. Amazon's North American arm quietly eased back to profitability in the first quarter of this year thanks to lower expenses, and price growth has further abated in the meantime.
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Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. These losses were more than offset by strong profit growth from its cloud computing arm Amazon Web Services. As such, look for Amazon's e-commerce operation to continue improving its profit margins.
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Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. The reason the company is such a powerhouse (and the reason Apple is a perennial must-have stock) isn't just the high quality of its flagship device. During the first quarter of this year, Amazon Web Services' revenue grew another 16% year over year, and while its year-over-year operating profits actually fell in the quarter, that drop's purely a function of inflation as well.
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Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Second, of all current iPhone owners, 14% of them are former Android users. Sales are expected to improve 7% this year before accelerating to a growth rate of 10% in 2024.
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14592.0
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2023-08-01 00:00:00 UTC
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GRAPHIC-Apple, Microsoft remain world's top 2 companies by market cap
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AAPL
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https://www.nasdaq.com/articles/graphic-apple-microsoft-remain-worlds-top-2-companies-by-market-cap
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nan
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nan
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Aug 1 (Reuters) - Tech giants Apple AAPL.O and Microsoft MSFT.O remained the top two global companies by market capitalisation at the end of July after riding this year's rally in technology shares.
Apple last month became the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets and expectations for more moderate U.S. interest rate hikes.
Strong quarterly earnings from companies such as Alphabet GOOGL.O, Meta Platforms META.O, chipmaker Intel INTC.O and chip equipment maker Lam Research LRCX.O lifted overall market sentiment last month.
Facebook-owner Meta's market cap jumped more than 10% in July, thanks to the company's rosy revenue forecast and robust ad revenue growth in the second quarter.
Microsoft also beat Wall Street estimates for its fiscal fourth-quarter revenue, driven by growth in its cloud computing and office software businesses, although its share price slipped back 1.4% in July after it also laid out an aggressive spending plan to meet demand for artificial intelligence services.
Its market cap stood at $2.49 trillion at the end of July.
Apple is due to announce its earnings for the April-June quarter on Thursday.
"We continue to strongly believe a new tech bull market has started this year, and we believe the AI Gold Rush is a "1995 Moment" akin to the start of the Internet and NOT a 1999/2000 Bubble Moment," said Wedbush analyst Dan Ives in a note last week.
In the financial sector, JP Morgan Chase's JPM.N market cap grew about 8.6% last month, as the largest U.S. lender earned more from borrowers' interest payments and benefited from the purchase of First Republic Bank.
Refinitiv data shows 69% of large- and mid-cap U.S. companies have surpassed analysts' Q2 earnings estimates so far, with the tech sector accounting for 82% of these positive surprises.
Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8
Change in market cap in July https://tmsnrt.rs/47cjbgK
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Susan Fenton)
((patturaja.muruga@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 1 (Reuters) - Tech giants Apple AAPL.O and Microsoft MSFT.O remained the top two global companies by market capitalisation at the end of July after riding this year's rally in technology shares. Microsoft also beat Wall Street estimates for its fiscal fourth-quarter revenue, driven by growth in its cloud computing and office software businesses, although its share price slipped back 1.4% in July after it also laid out an aggressive spending plan to meet demand for artificial intelligence services. In the financial sector, JP Morgan Chase's JPM.N market cap grew about 8.6% last month, as the largest U.S. lender earned more from borrowers' interest payments and benefited from the purchase of First Republic Bank.
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Aug 1 (Reuters) - Tech giants Apple AAPL.O and Microsoft MSFT.O remained the top two global companies by market capitalisation at the end of July after riding this year's rally in technology shares. Facebook-owner Meta's market cap jumped more than 10% in July, thanks to the company's rosy revenue forecast and robust ad revenue growth in the second quarter. Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8 Change in market cap in July https://tmsnrt.rs/47cjbgK (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Susan Fenton) ((patturaja.muruga@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Aug 1 (Reuters) - Tech giants Apple AAPL.O and Microsoft MSFT.O remained the top two global companies by market capitalisation at the end of July after riding this year's rally in technology shares. Apple last month became the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets and expectations for more moderate U.S. interest rate hikes. Facebook-owner Meta's market cap jumped more than 10% in July, thanks to the company's rosy revenue forecast and robust ad revenue growth in the second quarter.
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Aug 1 (Reuters) - Tech giants Apple AAPL.O and Microsoft MSFT.O remained the top two global companies by market capitalisation at the end of July after riding this year's rally in technology shares. Strong quarterly earnings from companies such as Alphabet GOOGL.O, Meta Platforms META.O, chipmaker Intel INTC.O and chip equipment maker Lam Research LRCX.O lifted overall market sentiment last month. Facebook-owner Meta's market cap jumped more than 10% in July, thanks to the company's rosy revenue forecast and robust ad revenue growth in the second quarter.
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2023-08-01 00:00:00 UTC
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2 Green Flags and 1 Red Flag for Honeywell After Its Post-Earnings Sell-Off
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AAPL
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https://www.nasdaq.com/articles/2-green-flags-and-1-red-flag-for-honeywell-after-its-post-earnings-sell-off
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Honeywell International (NASDAQ: HON) stock sold off after reporting earnings last week. But despite being down on the year, the stock is still within striking distance of an all-time high after a rip-roaring performance in 2022.
Let's dive into the state of Honeywell's business to determine if the diversified industrial stock is worth buying now.
Image source: Getty Images.
Honeywell Aerospace is back
Honeywell's Aerospace segment is its largest by sales and profit. But it was the hardest hit during the COVID-19 pandemic. And for good reason.
The business is heavily dependent on the commercial airline industry. But it also provides navigation systems, actuation systems, and a variety of other small and large solutions for naval and commercial ground transportation, helicopters, the defense industry, the oil and gas industry, and more. Simply put, if there's a vessel that demands mechanical and electric work, Honeywell is probably involved in some capacity.
Honeywell's market position makes it heavily dependent on the strength of the broader economy, but more specifically, global commerce and the transportation of goods as well as people traveling for work or leisure. Honeywell's second-quarter 2023 results indicate that the aerospace segment is officially back.
AEROSPACE
Q2 2023
Q2 2022
Q2 2021
Q2 2020
Q2 2019
Sales
$3.341 billion
$2.898 billion
$2.766 billion
$2.543 billion
$3.508 billion
Segment Profit
$924 million
$767 million
$710 million
$528 million
$907 million
Segment Margin
27.7%
26.5%
25.7%
20.8%
25.9%
Data source: Honeywell.
In the above table, you can see the gravity of the hit Honeywell Aerospace took in Q2 2020. Fast forward to today, and the segment is generating about 95% as much revenue as it was in Q2 2019, but the profit and profit margins are actually higher -- a sign that Honeywell is on track to return to growth.
On track to hit its long-term goals
Honeywell's long-term strategy is centered around margin growth and operating a more efficient, leaner business.
GOAL
ORGANIC GROWTH
GROSS MARGIN
SEGMENT MARGIN
FCF MARGIN
Long-Term Target
4% to 7%
40%+
25%+
Mid Teens+
2023 Guidance
4% to 6%
37.8%
22.4% to 22.6%
14% to 15%
2022 Performance
6%
37%
21.7%
14%
2017-2021 Average
5%
36.3%
20.2%
15%
2014-2016 Average
1%
34.7%
17.9%
11%
Data source: Honeywell.
The above table gives an idea of Honeywell's slow growth over the last decade. Like many diversified industrials, Honeywell became clunky in years past and struggled to achieve meaningful organic growth, often having to resort to acquisitions. However, the company's 2023 guidance puts it close to its long-term targets. And some segments, like Aerospace and Honeywell Building Technologies, have already achieved segment margins above 25%.
High margins, but at what cost?
The following chart puts into perspective where Honeywell's business is headed and where it is coming from.
HON Revenue (TTM) data by YCharts.
Honeywell's revenue is about the same today as it was 15 years ago -- which isn't exactly a good look. However, its operating margin sits at just under 20%. A 20% operating margin is excellent, especially for a company with so many moving parts like Honeywell. It means that the company is taking home 20 cents in operating income for every dollar in revenue. So, although revenue hasn't changed much in 15 years, the company's operating margin is up more than threefold.
Operating income and growing earnings are far more important than revenue. It isn't too hard for Honeywell to simply crank out more products and discount them to boost sales. The real trick comes from getting more profit out of each dollar in sales and then gradually increasing sales in lockstep with a stable operating margin. This is something that companies like Illinois Tool Works, an industrial conglomerate, have mastered to perfection.
If a growing operating margin is a good thing, then why is this a red flag? It's not the results and margins themselves that are bad. Rather, it's how those results impact Honeywell's valuation.
Despite its lackluster top-line growth, Honeywell stock has had an incredible run. In the last 10 years, it is up 140% compared to diluted EPS, growing at 109% and operating income, growing by just 57%.
Honeywell's price-to-earnings (P/E) ratio sits at 24.2 compared to a 10-year medium of 20.5. It's not terribly expensive, but it's also not cheap, especially for a company that is content with an organic growth rate of just 4% to 7%.
Companies that feature impressive top and bottom-line growth can benefit from a rising P/E ratio, meaning the stock price grows at a faster rate than earnings -- which is exactly what has happened to companies like Apple. But Since Honeywell's growth rate is so low, it's unlikely to benefit from a valuation multiple expansion. For Honeywell's P/E ratio to stay the same, it has to grow earnings at the same rate as its stock price. So if Honeywell grows earnings by 5% a year, expect a 5% increase in the stock price just to keep the same P/E ratio. However, there's also room for that P/E ratio to compress.
Honeywell stock is a decent, but not great buy
Honeywell stock doesn't deserve to be at an all-time high and is unlikely to be a market-beating stock in the near-term future. The rebound in its business and margins are impressive. But with a low growth rate and just a 2% dividend yield, the stock isn't necessarily a screaming buy now.
Honeywell is an established, conservative business with an excellent balance sheet. It's still a great option for risk-averse investors focused more on capital preservation rather than capital appreciation. But for investors with a higher risk tolerance that are still in the capital appreciation phase of their lives, Honeywell needs to improve its growth rate, or the stock needs to reach a more attractive valuation for it to be a compelling buy.
10 stocks we like better than Honeywell International
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Honeywell's market position makes it heavily dependent on the strength of the broader economy, but more specifically, global commerce and the transportation of goods as well as people traveling for work or leisure. Like many diversified industrials, Honeywell became clunky in years past and struggled to achieve meaningful organic growth, often having to resort to acquisitions. But for investors with a higher risk tolerance that are still in the capital appreciation phase of their lives, Honeywell needs to improve its growth rate, or the stock needs to reach a more attractive valuation for it to be a compelling buy.
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Honeywell Aerospace is back Honeywell's Aerospace segment is its largest by sales and profit. Sales $3.341 billion $2.898 billion $2.766 billion $2.543 billion $3.508 billion Segment Profit $924 million $767 million $710 million $528 million $907 million Segment Margin 27.7% 26.5% 25.7% 20.8% 25.9% Data source: Honeywell. Long-Term Target 4% to 7% 40%+ 25%+ Mid Teens+ 2023 Guidance 4% to 6% 37.8% 22.4% to 22.6% 14% to 15% 2022 Performance 6% 37% 21.7% 14% 2017-2021 Average 5% 36.3% 20.2% 15% 2014-2016 Average 1% 34.7% 17.9% 11% Data source: Honeywell.
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Honeywell Aerospace is back Honeywell's Aerospace segment is its largest by sales and profit. Sales $3.341 billion $2.898 billion $2.766 billion $2.543 billion $3.508 billion Segment Profit $924 million $767 million $710 million $528 million $907 million Segment Margin 27.7% 26.5% 25.7% 20.8% 25.9% Data source: Honeywell. Honeywell stock is a decent, but not great buy Honeywell stock doesn't deserve to be at an all-time high and is unlikely to be a market-beating stock in the near-term future.
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However, its operating margin sits at just under 20%. For Honeywell's P/E ratio to stay the same, it has to grow earnings at the same rate as its stock price. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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2023-08-01 00:00:00 UTC
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7 Growth Stocks That Are Still Great Buys Even as Interest Rates Peak
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AAPL
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https://www.nasdaq.com/articles/7-growth-stocks-that-are-still-great-buys-even-as-interest-rates-peak
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Federal Reserve recently lifted interest rates to their highest level in 22 years. The fed funds target rate now sits at 5.25% to 5.5%. This was the fourth rate hike this year and 11th since the central bank began raising rates in March 2020 in an effort to tamp down inflation. And while a rising rate environment is typically bad news for growth stocks, 2023 has been a banner year thus far for high-return growth stocks.
In addition to the rally in technology stocks this year, largely fueled by excitement over the promise of artificial intelligence (AI), growth stocks are benefitting from a brighter-than-expected economic picture and the belief that the Fed is either done or very close to finished hiking rates.
If this is true, the rally in high-potential growth investments is likely just getting started. Here are seven stable growth stock picks in anticipation of a rate peak.
Entegris (ENTG)
Source: Shutterstock
Massachusetts-based Entegris (NASDAQ:ENTG) supplies advanced materials and systems used in the semiconductor device fabrication process, as well as other high-tech industries like life sciences. Shares are up 67% so far in 2023 as money flowed back into the tech sector.
ENTG’s advance has accelerated in the past three months, following the release of the company’s first-quarter results. Revenue surged 42% year over year to $922.4 million. That was better than expected, as were adjusted earnings of 65 cents per share.
In May, Entegris announced the opening of a state-of-the-art manufacturing facility in Taiwan that is designed to boost the company’s production capabilities of critical semiconductor materials while reducing waste.
Roughly half of the world’s semiconductor chips are made in Taiwan, and Entegris has a longstanding relationship with Taiwan Semiconductor Manufacturing (NYSE:TSM), one of the world’s top chipmakers. Further, Taiwan is only increasing in importance as a chip hub as tensions between the U.S. and China rise.
“Our investment is just a sign of the conviction we have in the future of the semiconductor industry in Taiwan,” Entegris Chief Executive Officer (CEO) Bertrand Loy told Nikkei Asia.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Adobe (NASDAQ:ADBE), one of the best-known software makers, is up 62% year to date. That performance puts it on par with some of the “Magnificent Seven.”
The company is clearly riding the AI wave higher, having invested heavily in the technology. Its AI-powered tools include Adobe Firefly, which allows users to create images and transform text, and Adobe Sensei, which has been integrated with programs such as Photoshop and Lightroom to improve functionality and efficiency.
Adobe posted better-than-expected quarterly results in mid-June. Revenue was up 10% year over year to $4.82 billion, exceeding the $4.77 billion analysts expected. And adjusted earnings per share of $3.91 easily topped the consensus estimate of $3.79 a share.
Chief Financial Officer (CFO) Dan Durn told Barron’s that generative AI should drive revenue and profit growth for decades to come. And Morgan Stanley analyst Keith Weiss cited the company’s AI push as the reason for raising his price target on the stock to $660, which is more than 20% above the current price.
The combination of AI and the potential end to the latest interest-rate-hike cycle could prove very powerful for ADBE.
Apple (AAPL)
Source: View Apart / Shutterstock.com
Apple (NASDAQ:AAPL) stock has powered higher this year, rising 53%. This is despite the tech giant reporting fiscal Q2 results in May that showed the company’s second consecutive quarter of declining year-over-year sales. Still, earnings beat estimates in the most recent quarter on stronger-than-expected iPhones sales, and investors continued to pile into shares.
Apple is set to report fiscal third-quarter results this week. Investors will be watching the report closely. According to Barron’s, analysts at Piper Sandler and Wedbush are telling investors to buy shares even if management’s forecast comes with a warning of a tough smartphone market. Both firms now have a $220 price target on the stock, implying upside of 12%.
Apple has plenty going for it. While Mac sales are slumping, services revenue is growing at an impressive clip. The company is looking to India as an opportunity for expanding its consumer and manufacturing base. Additionally, Apple is expected to release its AR/VR headset in 2024, which could create a new product revenue stream for the company. Finally, Apple recently announced it has entered the AI chatbot race.
All told, AAPL stock is probably one of the most stable growth stock picks you could have in your portfolio
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
Cloud-based data warehouse company Snowflake (NASDAQ:SNOW) is up 24% year to date, beating the S&P 500’s 19% return but not by as much as most of the other high-potential growth investments on today’s list.
The company reported better-than-expected revenue and earnings for its fiscal first quarter on May 24. Revenue jumped an impressive 48% year over year, albeit much slower than the 85% growth of the comparable year-ago quarter. Adjusted earnings of 15 cents per share beat the 5-cent estimate, and adjusted free cash flow rose 58% year over year to $287 million. But investors got spooked when management’s forecast for the current quarter and full year came in light.
Yet, the company maintains its long-term forecast of hitting $10 billion in product revenue by fiscal 2029, as a Scotiabank analyst notes. Moreover, the analyst “is confident Snowflake will benefit from a new product cycle in 2024 and 2025, including new offerings targeting artificial intelligence and data science applications,” Barron’s reports.
This prompted Scotiabank to upgrade SNOW stock to “outperform” and raise its target price to $212 from $137. The new target is 19% above where shares currently trade.
ACM Research (ACMR)
Source: Pavel Kapysh / Shutterstock.com
ACM Research (NASDAQ:ACMR) predominantly provides cleaning equipment for semiconductor wafers, but it is expanding into other areas of high-end semiconductor equipment. Shares of the small-cap growth stock are up 70% on a year-to-date basis.
ACM Research reported first-quarter results on May 5. Shipments of $89 million were up 33% from a year ago, while revenue increased 76% to $74.3 million. Net income of $7.15 million compared very favorably to a loss of $5.79 million a year ago.
According to Gurufocus, the company’s three-year revenue growth rate stands at 47%, better than 94% of its peers. And analysts are forecasting revenue will increase more than 40% this year.
Analysts are bullish on the stock, with seven rating it a “buy” and just one “hold.” Their average price target of $21.59 is 65% above the current price.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
Semiconductor stocks have performed very well in 2023, and Advanced Micro Devices (NASDAQ:AMD) is no exception, rising 77%. That’s more than double the return of competitor Intel (NASDAQ:INTC) but far less than Nvidia’s (NASDAQ:NVDA) 200%-plus surge. This puts AMD in a sort of sweet spot that could mean big returns for growth investors.
While Nvidia makes the most-powerful chips that are used to power AI-related technologies, AMD isn’t too far behind. In fact, according to MosaicML, AMD’s AI chips are about 80% as fast as the ones Nvidia makes.
“Hanlin Tang, chief technology officer of MosaicML, said that the company believes that further software updates from AMD that are in the works should help its MI250 chip match the performance of Nvidia’s A100,” Reuters reports.
For those who feel they’ve missed the run-up in NVDA stock, AMD shares could offer a second chance.
Yum China (YUMC)
Source: JHVEPhoto / Shutterstock.com
Yum China (NYSE:YUMC) operates many of the Yum Brands (NYSE:YUM) chains that U.S. diners are familiar with but in China, including KFC, Pizza Hut and Taco Bell. It also includes local restaurants like Huang Ji Huang and Littel Sheep that specialize in Chinese cuisine. Collectively, Yum China is the largest restaurant firm in China with more than 13,000 locations.
While shares are only up 12% year to date, underperforming the broader market, the growth stock remains attractive due to its size and massive customer base.
Yum China just reported second-quarter results that beat estimates on the top and bottom lines. Revenue increased 24% to $2.65 billion, while adjusted earnings per share of 47 cents beat by 8 cents. The company opened 422 net new stores during the quarter, and operating profit more than tripled on a year-over-year basis to $257 million.
Wall Street analysts currently have an average price target of $73.23 on shares, implying upside of around 20%. Yet, upgrades could start rolling in after the latest earnings report, as the company’s growth metrics and market penetration are difficult to ignore.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post 7 Growth Stocks That Are Still Great Buys Even as Interest Rates Peak appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: View Apart / Shutterstock.com Apple (NASDAQ:AAPL) stock has powered higher this year, rising 53%. All told, AAPL stock is probably one of the most stable growth stock picks you could have in your portfolio Snowflake (SNOW) Source: Sundry Photography / Shutterstock Cloud-based data warehouse company Snowflake (NASDAQ:SNOW) is up 24% year to date, beating the S&P 500’s 19% return but not by as much as most of the other high-potential growth investments on today’s list. In May, Entegris announced the opening of a state-of-the-art manufacturing facility in Taiwan that is designed to boost the company’s production capabilities of critical semiconductor materials while reducing waste.
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Apple (AAPL) Source: View Apart / Shutterstock.com Apple (NASDAQ:AAPL) stock has powered higher this year, rising 53%. All told, AAPL stock is probably one of the most stable growth stock picks you could have in your portfolio Snowflake (SNOW) Source: Sundry Photography / Shutterstock Cloud-based data warehouse company Snowflake (NASDAQ:SNOW) is up 24% year to date, beating the S&P 500’s 19% return but not by as much as most of the other high-potential growth investments on today’s list. Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com Semiconductor stocks have performed very well in 2023, and Advanced Micro Devices (NASDAQ:AMD) is no exception, rising 77%.
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All told, AAPL stock is probably one of the most stable growth stock picks you could have in your portfolio Snowflake (SNOW) Source: Sundry Photography / Shutterstock Cloud-based data warehouse company Snowflake (NASDAQ:SNOW) is up 24% year to date, beating the S&P 500’s 19% return but not by as much as most of the other high-potential growth investments on today’s list. Apple (AAPL) Source: View Apart / Shutterstock.com Apple (NASDAQ:AAPL) stock has powered higher this year, rising 53%. And while a rising rate environment is typically bad news for growth stocks, 2023 has been a banner year thus far for high-return growth stocks.
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Apple (AAPL) Source: View Apart / Shutterstock.com Apple (NASDAQ:AAPL) stock has powered higher this year, rising 53%. All told, AAPL stock is probably one of the most stable growth stock picks you could have in your portfolio Snowflake (SNOW) Source: Sundry Photography / Shutterstock Cloud-based data warehouse company Snowflake (NASDAQ:SNOW) is up 24% year to date, beating the S&P 500’s 19% return but not by as much as most of the other high-potential growth investments on today’s list. The company reported better-than-expected revenue and earnings for its fiscal first quarter on May 24.
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2023-08-01 00:00:00 UTC
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Gen Digital (GEN) to Report Q1 Earnings: What's in Store?
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https://www.nasdaq.com/articles/gen-digital-gen-to-report-q1-earnings%3A-whats-in-store
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Gen Digital GEN is slated to report first-quarter fiscal 2024 results on Aug 3. Gen Digital was formerly known as NortonLifeLock Inc. and was trading under the NLOK ticker symbol.
NortonLifeLock changed its name and ticker symbol, effective from Nov 8, 2022, following the completed merger of NortonLifeLock and Avast Plc. The newly named company unites trusted consumer safety brands, including Norton, Avast, LifeLock, AVG, Avira, CCleaner and ReputationDefender.
The company projects quarterly revenues between $940 million and $950 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $947.2 million, indicating a 33.8% improvement from the year-ago quarter’s figure of $708 million.
For the first quarter of fiscal 2024, Gen Digital expects non-GAAP earnings in the range of 45 cents-47 cents per share. The Zacks Consensus Estimate is pegged at 46 cents per share, a penny higher than the year-ago reported figure of 45 cents.
The company’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 5.3%.
Let’s see how things have shaped up before this announcement.
Gen Digital Inc. Price and EPS Surprise
Gen Digital Inc. price-eps-surprise | Gen Digital Inc. Quote
Factors to Note
Gen Digital’s first-quarter top line is likely to have been primarily driven by the inclusion of the Avast business, which has significantly increased the combined company’s Average Direct Customer count. Our first-quarter estimate for this key metric is pegged at 37.8 million, which is close to 38.2 million at the end of the last reported quarter.
Moreover, the expansion of product offerings following the merger of NortonLifeLock and Avast is likely to have facilitated the newly formed company to cross-sell products to each other’s customers, thereby aiding Average Revenue Per User (“ARPU”) growth. Gen Digital’s ARPU increases 15 cents sequentially to $7.24 in the fourth quarter of fiscal 2023.
We anticipate the trend is likely to have continued in the to-be-reported quarter. Our first-quarter fiscal 2024 estimate for ARPU is pegged at $7.31, which is 7 cents higher than the fourth-quarter fiscal 2023 level.
GEN’s first-quarter performance is also likely to have benefited from the increased demand for cybersecurity and ID analytics solutions amid the hybrid work environment. Over the past couple of years, as more people are shifting online, the need for online privacy has been rising. Global workforces working remotely are logging into employers' networks, escalating the need for digital security. This trend is likely to have spurred the demand for Gen Digital’s security products in the fiscal first quarter.
Our first-quarter estimate for Gen Digital’s Consumer Security segment’s revenues is pegged at $572.7 million, indicating a year-over-year increase of 42.5%. Our estimate of $357.1 million for the Identity and Information Protection division implies growth of 21.5% from the year-ago quarter.
An expansion in the EMEA, Asia Pacific and Latin American regions is also likely to have been an upside for GEN this season. Further, the growing number of client bookings, supported by their retention and renewal rates, is anticipated to have contributed to the company’s fiscal first-quarter top line. At the end of the fourth quarter of fiscal 2023, Gen Digital’s client retention rate was 76%, while bookings grew 29% on a year-over-year basis.
The Norton and Avast antivirus maker’s sustained focus on growing partner channels and employee benefit programs is likely to have driven its performance in the quarter to be reported. Our estimate for the company’s Partner revenues is pegged at $96.8 million, which calls for a 34.4% increase from the year-ago quarter. Additionally, Direct Customer revenues are expected to increase 33.5% year over year to $833 million, per our estimate.
However, GEN’s overall first-quarter performance is likely to have been negatively impacted by unfavorable foreign exchange rates. In the last reported financial results for the fourth quarter of fiscal 2023, foreign currency headwinds lowered revenues by $21 million.
Additionally, increased interest expenses due to enhanced debt related to Avast acquisition financing are likely to have weighed on the bottom line. Moreover, the company’s earnings per share are expected to have been negatively impacted by the equity dilution impact of the Avast acquisition. To finance the acquisition of Avast, Gen Digital issued 94 million new shares.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Gen Digital this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though GEN currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA is slated to report second-quarter fiscal 2024 results on Aug 23. The company sports a Zacks Rank #1 and has an Earnings ESP of +5.56% at present. NVDA’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 0.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.06 per share, suggesting a whopping increase of 303.9% from the year-ago quarter’s earnings of 51 cents. NVIDIA’s quarterly revenues are estimated to increase 64.4% year over year to $11.02 billion.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +0.66%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.19 per share, a penny lower than the year-ago quarter. It is estimated to report revenues of $81.26 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Alibaba carries a Zacks Rank #2 and has an Earnings ESP of +6.19%. The company is scheduled to report first-quarter fiscal 2024 results on Aug 10. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.01 billion, suggesting a year-over-year rise of 1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Gen Digital Inc. (GEN) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Gen Digital Inc. (GEN) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. The newly named company unites trusted consumer safety brands, including Norton, Avast, LifeLock, AVG, Avira, CCleaner and ReputationDefender.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Gen Digital Inc. (GEN) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate is pegged at 46 cents per share, a penny higher than the year-ago reported figure of 45 cents.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Gen Digital Inc. (GEN) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Gen Digital Inc. Price and EPS Surprise Gen Digital Inc. price-eps-surprise | Gen Digital Inc. Quote Factors to Note Gen Digital’s first-quarter top line is likely to have been primarily driven by the inclusion of the Avast business, which has significantly increased the combined company’s Average Direct Customer count.
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Stocks With the Favorable Combination Per our model, NVIDIA NVDA, Apple AAPL and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Gen Digital Inc. (GEN) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report To read this article on Zacks.com click here. Gen Digital GEN is slated to report first-quarter fiscal 2024 results on Aug 3.
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14596.0
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2023-08-01 00:00:00 UTC
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AAPL Quantitative Stock Analysis - Warren Buffett
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-3
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
Additional Research Links
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Financial Planning Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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14597.0
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2023-08-01 00:00:00 UTC
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India's Redington's quarterly profit falls as expenses mount
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AAPL
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https://www.nasdaq.com/articles/indias-redingtons-quarterly-profit-falls-as-expenses-mount
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nan
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nan
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CHENNAI, Aug 1 (Reuters) - India's Redington REDI.NS reported a 21% fall in quarterly profit on Tuesday, as the technology devices distributor wrestled with higher expenses at a time when demand for work-from-home equipment also slowed.
The Chennai-based company, which distributes IT products of global giants like Apple AAPL.O and Dell Technologies DELL.N, said net profit dropped to 2.49 billion rupees ($30.3 million) for the quarter ended June 30, compared with 3.16 billion rupees a year earlier.
Corporations globally are reeling from the impact of higher expenses, partly due to higher interest rates, while several firms including Redington are also investing heavily to digitize their businesses more.
The company reported expenses climbing 27%, which ate into its bottomline.
A pandemic-led demand for consumer electronics, including smartphones and personal computers, is fading as people are spending more time in physical schools and offices, denting demand for work- and learn-from-home equipment.
Revenue from operations rose 26% to 211.87 billion rupees but dropped 3% sequentially.
Revenue from its rest of the world unit, which makes up more than half of its topline and includes the Middle East, Turkey and Africa, dropped around 5% from the previous quarter even as it jumped 29% from a year earlier.
Shares of Redington closed 1.6% higher ahead of its results, with the stock up just over 1% this year.
($1 = 82.2250 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Sonia Cheema)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Chennai-based company, which distributes IT products of global giants like Apple AAPL.O and Dell Technologies DELL.N, said net profit dropped to 2.49 billion rupees ($30.3 million) for the quarter ended June 30, compared with 3.16 billion rupees a year earlier. CHENNAI, Aug 1 (Reuters) - India's Redington REDI.NS reported a 21% fall in quarterly profit on Tuesday, as the technology devices distributor wrestled with higher expenses at a time when demand for work-from-home equipment also slowed. Revenue from its rest of the world unit, which makes up more than half of its topline and includes the Middle East, Turkey and Africa, dropped around 5% from the previous quarter even as it jumped 29% from a year earlier.
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The Chennai-based company, which distributes IT products of global giants like Apple AAPL.O and Dell Technologies DELL.N, said net profit dropped to 2.49 billion rupees ($30.3 million) for the quarter ended June 30, compared with 3.16 billion rupees a year earlier. CHENNAI, Aug 1 (Reuters) - India's Redington REDI.NS reported a 21% fall in quarterly profit on Tuesday, as the technology devices distributor wrestled with higher expenses at a time when demand for work-from-home equipment also slowed. The company reported expenses climbing 27%, which ate into its bottomline.
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The Chennai-based company, which distributes IT products of global giants like Apple AAPL.O and Dell Technologies DELL.N, said net profit dropped to 2.49 billion rupees ($30.3 million) for the quarter ended June 30, compared with 3.16 billion rupees a year earlier. CHENNAI, Aug 1 (Reuters) - India's Redington REDI.NS reported a 21% fall in quarterly profit on Tuesday, as the technology devices distributor wrestled with higher expenses at a time when demand for work-from-home equipment also slowed. Corporations globally are reeling from the impact of higher expenses, partly due to higher interest rates, while several firms including Redington are also investing heavily to digitize their businesses more.
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The Chennai-based company, which distributes IT products of global giants like Apple AAPL.O and Dell Technologies DELL.N, said net profit dropped to 2.49 billion rupees ($30.3 million) for the quarter ended June 30, compared with 3.16 billion rupees a year earlier. CHENNAI, Aug 1 (Reuters) - India's Redington REDI.NS reported a 21% fall in quarterly profit on Tuesday, as the technology devices distributor wrestled with higher expenses at a time when demand for work-from-home equipment also slowed. Corporations globally are reeling from the impact of higher expenses, partly due to higher interest rates, while several firms including Redington are also investing heavily to digitize their businesses more.
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14598.0
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2023-08-01 00:00:00 UTC
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New Leaders Emerge: S&P 500 Shows Shift in Top Performers
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AAPL
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https://www.nasdaq.com/articles/new-leaders-emerge%3A-sp-500-shows-shift-in-top-performers
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nan
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nan
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It wasn’t that long ago that the “Magnificent 7” stocks, Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) were pretty much the only game in town.
Since late May, other stocks have been rotating into leadership.
As of July 31, the top S&P 500 performers and their year-to-date returns were:
Nvidia: 219.90%
Meta Platforms: 170.47%
Carnival Corp. (NYSE: CCL): 129.40%
Royal Caribbean Cruises Ltd. (NYSE: RCL): 119.64%
Tesla: 116.30%
PulteGroup Inc. (NYSE: PHM): 86.29%
Align Technology Inc. (NASDAQ: ALGN): 81.08%
Palo Alto Networks Inc. (NASDAQ: PANW): 78.04%
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH): 75.98%
General Electric Co. (NYSE: GE): 74.95%
That’s quite a different list from the one you would have seen a couple of months ago. In particular, as cruise lines sail to higher prices, the makeup of S&P top performers is changing.
Equal-Weighted S&P As Gauge Of Breadth
One informative way to slice and dice the performance of S&P internals is by comparing the performance of the equal-weighted index with the traditional market-cap weighted.
As its name implies, the S&P 500 equal-weighted index assigns an equal weighting to each constituent, providing a balanced representation of all included stocks. That means no component, regardless of its market capitalization, has outsized influence over index performance.
This approach tends to tilt the index toward the smaller holdings, which are frequently more volatile than the mega-caps that dominate the market-cap-weighted index. That volatility isn’t necessarily a bad thing, as it can, at times, lead to outperformance.
You can track the S&P equal-weighted index with the Invesco S&P 500 Equal Weight ETF (NYSEARCA: RSP).
While the equal-weighted index can provide a more diversified representation of components, giving smaller companies an equal sway as larger ones and potentially reducing concentration risk, the traditional market-cap weighted index is still outperforming by a wide margin.
Not Unusual To See Performance Divergence
So far this year, the market-cap-weighted S&P 500 is outpacing the equal-weighted index by 97%. It’s not necessarily unusual to see that disparity at this juncture; there’s generally a cyclical nature to the indexes’ returns, as the market-cap weighted tends to outperform as the market is rebounding, as is happening this year.
Still, the performance of the equal-weight index offers one more data point to support the case that breadth is returning to markets.
A look at the Invesco S&P 500 Equal Weight ETF’s chart shows the fund is within a whisker of clearing a base that began in early February.
So what does the performance of equal-weighted S&P leaders mean for market breadth?
How Smaller Companies Contribute To Index Return
The equal-weighted index shows how smaller companies are contributing to the overall market; as their performance improves, as we’re clearly seeing with the cruise lines, they frequently bring other industry peers along with them. To use a cliche that’s appropriate in this case: A rising tide can lift all - or at least other - boats.
Stock market breadth is considered bullish when many stocks across various sectors and market capitalizations participate in an uptrend.
A broad-based rally indicates a healthy market as more companies see positive price movements, reflecting overall investor optimism.
Greater Breadth Suggests Greater Confidence
A high degree of market breadth suggests broad confidence and positive sentiment, often indicating a robust and more sustainable rally. It also signifies that multiple industries and companies are contributing to the market's strength, making it less reliant on the performance of a few heavily-weighted stocks or sectors.
It’s that latter point that has made investors nervous all year, even as AI, cloud computing and electric vehicles sent some stocks on rocket rides.
While it’s certainly possible the market will see a pullback before year’s end, it’s statistically unlikely that 2023 will be a down year in the market. Historically, down years are most often followed by a year with S&P 500 price gains.
Increased breadth only makes that likelihood stronger, as it’s not up to just big techs to carry the entire market on their backs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It wasn’t that long ago that the “Magnificent 7” stocks, Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) were pretty much the only game in town. It’s not necessarily unusual to see that disparity at this juncture; there’s generally a cyclical nature to the indexes’ returns, as the market-cap weighted tends to outperform as the market is rebounding, as is happening this year. It also signifies that multiple industries and companies are contributing to the market's strength, making it less reliant on the performance of a few heavily-weighted stocks or sectors.
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It wasn’t that long ago that the “Magnificent 7” stocks, Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) were pretty much the only game in town. As of July 31, the top S&P 500 performers and their year-to-date returns were: Nvidia: 219.90% Meta Platforms: 170.47% Carnival Corp. (NYSE: CCL): 129.40% Royal Caribbean Cruises Ltd. (NYSE: RCL): 119.64% Tesla: 116.30% PulteGroup Inc. (NYSE: PHM): 86.29% Align Technology Inc. (NASDAQ: ALGN): 81.08% Palo Alto Networks Inc. (NASDAQ: PANW): 78.04% Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH): 75.98% General Electric Co. (NYSE: GE): 74.95% That’s quite a different list from the one you would have seen a couple of months ago. How Smaller Companies Contribute To Index Return The equal-weighted index shows how smaller companies are contributing to the overall market; as their performance improves, as we’re clearly seeing with the cruise lines, they frequently bring other industry peers along with them.
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It wasn’t that long ago that the “Magnificent 7” stocks, Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) were pretty much the only game in town. Equal-Weighted S&P As Gauge Of Breadth One informative way to slice and dice the performance of S&P internals is by comparing the performance of the equal-weighted index with the traditional market-cap weighted. How Smaller Companies Contribute To Index Return The equal-weighted index shows how smaller companies are contributing to the overall market; as their performance improves, as we’re clearly seeing with the cruise lines, they frequently bring other industry peers along with them.
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It wasn’t that long ago that the “Magnificent 7” stocks, Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA), Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Meta Platforms Inc. (NASDAQ: META) were pretty much the only game in town. While the equal-weighted index can provide a more diversified representation of components, giving smaller companies an equal sway as larger ones and potentially reducing concentration risk, the traditional market-cap weighted index is still outperforming by a wide margin. Stock market breadth is considered bullish when many stocks across various sectors and market capitalizations participate in an uptrend.
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14599.0
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2023-07-31 00:00:00 UTC
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Three Major Tech Firms Announcing Earnings This Week: What You Need To Know
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AAPL
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https://www.nasdaq.com/articles/three-major-tech-firms-announcing-earnings-this-week-what-you-need-to-know
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nan
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nan
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T
hree major U.S. firms will announce their quarterly earnings this week, making it a pivotal time for the U.S. economy. As a barometer of the health and performance of the U.S. economy, investors will scrutinize these results, hoping to make more informed decisions based on the findings, which will provide light on consumer spending, company investments, and market movements. The trajectory of the stock market and investor mood may hinge on the findings of these results.
AMD Q2 Earnings
On Tuesday, financial results will be released by Advance Micro Devices (AMD). Even though NVIDIA has been stealing the spotlight in the AI space, traders are betting that the industry as a whole is so vast that no one company can hope to corner the market. As a result, investors will probably mostly focus on AI-related remarks.
Experts predict that sales will total $5.33 billion, down 18.8 percent from the prior-year period. The markets are betting that the weak demand for gaming and other gadgets will improve by the end of the year and into 2024. Perhaps more worrisome is the fact that sales of datacenter chips (used in data centers) are expected to fall by 5.8 percent this quarter. Adjusted earnings per share are predicted to fall for the fourth consecutive quarter, this time by 45 percent to $0.57. However, when additional data from the same time period is made public, rising earnings are expected to continue in the second half.
Amazon's Q2 Earnings
A company whose revenue is highly correlated with economic activity is Amazon (AMZN). A turnaround in consumer confidence has coincided with rising hopes that the U.S. economy might avert a recession. However, the company's quarterly profits are based on statistics from a time when economic mood was very low, so the present rise in sentiment is unlikely to have an effect on the results we'll get this week.
Amazon's Web Services metrics are the most important to investors since they account for the vast majority of the company's income. It is anticipated that revenues will rise by 10% over the prior year, coming in at around $21.7 billion. It will be the sixth straight quarter of reduced growth, and again, this will be attributed to the fact that economic activity is slowing, if the actual result matches or even comes a little softer than this.
Traders, however, are optimistic that Amazon's presence in the AI field will help it mitigate the effects of a slower growth rate on its stock price. Keep in mind that investors shouldn't count on much of an uptick, and look to Microsoft's profits for guidance; the company has deep ties to the AI industry thanks to its holdings in ChatGPT, but the stock hardly budged on the back of all the AI hoopla. The stock price dropped unjustly as a result of the hysteria around the company's association with the AI.
The pressure on Amazon's margins from increasing inflation will be another area of attention among traders when it releases its results, and this is despite the fact that inflation-related difficulties have begun to lighten somewhat. The second quarter is forecast to see a 41.5% increase in operational profit, reaching $4.7 billion. The stock is selling at a significant discount to its all-time high from 2021, and there is a lot of possibility for growth given the company's participation in AI and the improvement in economic optimism.
Q2 Results for Apple
So far this year, Apple's (AAPL) profits have failed to excite Wall Street, but the stock price has generated significant interest from buyers. The new record high value brought the total assets of the corporation to $3 trillion. Overall, investors have low expectations for its quarterly results, and they anticipate a further slowdown in sales projection for the following quarter with relatively flat earnings.
Revenues are expected to decrease by 1.8% from previous year, totaling $81.5 billion. Due to the economic recession, the decline in hardware demand is expected to be the most prominent story. The company's income is heavily dependent on iPhone sales, and analysts predict that those figures will continue to drop, potentially by 2.2%, to $38.8 billion. Consistent growth in Apple's service offerings like AppleCare, Apple Music, Apple Pay, and the App Store should contribute to a 5.8% increase in revenue, bringing total Apple revenue to $20.7 billion.
The projected increase in adjusted earnings per share from the prior year to $1.20 would be the slowest of any of the major technology companies. Despite widespread pessimism, investors who wait until the price drops on the basis of bad earnings data may be rewarded if Apple announces a new iPhone in September. Apple also has a vested interest in maintaining its stock price; in the past, when earnings have been disappointing, the firm has responded by announcing share buybacks.
Traders will pay great attention to the conference call and will search for the term "AI" throughout it. Apple hasn't used this word to increase profits yet, but there have been several rumors that the business will utilize its considerable influence to establish a presence in that industry. We'll look to see if we get any confirmation of that during their earnings report.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Q2 Results for Apple So far this year, Apple's (AAPL) profits have failed to excite Wall Street, but the stock price has generated significant interest from buyers. As a barometer of the health and performance of the U.S. economy, investors will scrutinize these results, hoping to make more informed decisions based on the findings, which will provide light on consumer spending, company investments, and market movements. However, the company's quarterly profits are based on statistics from a time when economic mood was very low, so the present rise in sentiment is unlikely to have an effect on the results we'll get this week.
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Q2 Results for Apple So far this year, Apple's (AAPL) profits have failed to excite Wall Street, but the stock price has generated significant interest from buyers. hree major U.S. firms will announce their quarterly earnings this week, making it a pivotal time for the U.S. economy. Amazon's Q2 Earnings A company whose revenue is highly correlated with economic activity is Amazon (AMZN).
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Q2 Results for Apple So far this year, Apple's (AAPL) profits have failed to excite Wall Street, but the stock price has generated significant interest from buyers. However, the company's quarterly profits are based on statistics from a time when economic mood was very low, so the present rise in sentiment is unlikely to have an effect on the results we'll get this week. Overall, investors have low expectations for its quarterly results, and they anticipate a further slowdown in sales projection for the following quarter with relatively flat earnings.
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Q2 Results for Apple So far this year, Apple's (AAPL) profits have failed to excite Wall Street, but the stock price has generated significant interest from buyers. Amazon's Q2 Earnings A company whose revenue is highly correlated with economic activity is Amazon (AMZN). The stock price dropped unjustly as a result of the hysteria around the company's association with the AI.
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