LB Morning Call | Amazon, Apple earnings beat expectations in gloomy earnings season

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Asia Pacific

This morning, the U.S. stock futures index was higher at the beginning of the session, the Nasdaq futures rose more than 1%, the S & P 500 futures rose 0.5%, and the Dow futures rose 0.09%.

Overnight, the three major U.S. stock indexes closed higher across the board, with the Dow up 1.03% to 32,529.63 points, the S & P 500 up 1.21% to 4,072.43 points, and the Nasdaq up 1.08% to 12,162.59 points.

Nike rose 4.05% and Honeywell International rose 3.69%, leading the Dow. Most big tech stocks rose, with Apple up 0.36%, Amazon up 1.08%, Netflix down 0.32%, Google up 1.03%, Facebook down 5.22% and Microsoft up 2.85%. Tesla rose 2.21%.

Airline stocks were mixed, with Boeing up 1.91%, American Airlines down 1.5%, Delta up 0.63%, Southwest Airlines down 6.38% and United Airlines up 0.88%. Photovoltaic stocks generally rose, with Maxeon Photovoltaic Technology (MAXN) closing up more than 27%, Array Technology (ARRY) up more than 23%, and SunPower (SPWR) and Shoals Technology (SHLS) up more than 18%.

US Stock News

1. The US FTC is seeking to block Meta's acquisition of Within Unlimited and its virtual reality-specific fitness app Supernatural, arguing that the deal would reduce market competition and violate the Antimonopoly Act.

2. Activist investor Elliott is negotiating an agreement with PayPal, sources said. Under the agreement, Elliott may get a seat on PayPal's board of directors and participate in determining the future direction of PayPal.

3. Pfizer's second-quarter revenue was $27.7 billion, up 53% year over year, and adjusted EPS was $2.04, up 100% year over year, both exceeding market expectations. The company still expects full-year revenue of $98 billion - $102 billion and adjusted EPS of $6.3-6.45.

4. Apple's third-quarter earnings per share are $1.2 and expected to be $1.17. Revenue is $83 billion and expected to be $82.808 billion. Net profit is $19.442 billion and expected to be $18.976 billion. Greater China revenue was $14.6 billion, down 1.1% year over year. Generated approximately $23 billion in operating cash flow. The board announced a cash dividend of $0.23 per share. Apple's U.S. shares rose more than 3% after hours.

5. Amazon's second-quarter earnings per share - $0.2, expected to be $0.13. Revenue is $121.2 billion, expected to be $119.093 billion. Net profit is $2 billion, expected to be $1.381 billion. Third-quarter net sales are expected to be $125 billion to $130 billion, expected to be $126.97 billion. Amazon U.S. stocks rose more than 11% after hours.

6. Intel's second-quarter adjusted earnings per share are $0.29 and expected to be $0.69. Adjusted revenue is $15.3 billion and expected to be $17.96 billion. Third-quarter adjusted earnings per share are expected to be $0.35, expected to be $0.82; adjusted revenue is expected to be $150- $16 billion, expected to be $18.7 billion; full-year adjusted earnings per share are expected to be $2.3, expected to be $3.39; full-year adjusted revenue is expected to be $650-68 billion, expected to be $74.76 billion. Intel U.S. stocks fell more than 9% after hours.

7. Gary Gensler, chairperson of the Securities Exchange Commission (SEC), said that to avoid delisting of U.S.-listed Chinese concept stocks, U.S. and Chinese officials must reach an agreement "soon" to obtain audit papers of Chinese companies. If U.S. lawmakers vote to pass the bill currently under consideration, the 2024 delisting schedule could be brought forward to 2023.

Singapore News

1. Hongkong Land's underlying net profit for the first half of the year to the end of June increased by 8% year over year to US $400 million 25 million (500 million 87.2 million), as the profit contribution from the real estate development business rose. Net profit for the first half of the year was reported at US $200 million 92 million (400 million 3 million), turning a loss into a profit, a net loss of US $800 million 65 million compared to the same period last year. The board recommended an interim dividend of 6 cents per share on Oct. 12, the same as a year earlier.

2. Sheng Siong Group's net profit for the first half of the year ended June increased slightly by 2.1% year over year to 67.5 million yuan, and revenue decreased slightly by 0.7% year over year to 600 million 76.8 million yuan. The group announced an interim dividend of 3.15 cents per share on August 30, an increase from 3.1 cents per share in the first half of fiscal 2021.

3. Jardine C & C's group net profit doubled 115% year over year to US $400 million 87 million (600 million 67 million) in the first half of the year ended June, and revenue increased 29% to US $10.6 billion 81 million. The board recommended an interim dividend of 28 cents per share on September 29, 56% higher than 18 cents a year earlier.

4. Jardine Matheson's underlying group net profit for the first half of the year ended June increased by 22% year over year to US $700 million 47 million (S $ 1 billion 32.1 million). Turning a profit in the first half of the year, the group's net profit 400 million US $23 million, compared with a net loss of US $100 million 17 million in the same period last year. The board recommended an interim dividend of 55 cents per share, an increase of 25% from 44 cents per share in the same period last year.

5. CapitaLand Integrated Commercial Trust's distributable income in the first half of this year increased by 3.4% year over year to $300 million 47.3 million, and the dividend per unit (DPU) increased by 0.8% year over year to 5.22 cents.

6. Keppel Corp's overall net profit in the first half of fiscal year 2022 rose 66% year-on-year to 400 million 98 million yuan. All businesses of the group made profits and announced an interim dividend of 15 cents per share.

7. Singapore Airlines (SIA) posted an operating profit of 500 million 56 million yuan in the first quarter of fiscal year 2023 ended the end of June this year. This was its highest ever first-quarter operating profit and the second-highest quarterly operating profit, reversing an operating loss of 200 million 74 million yuan in the same quarter of the previous fiscal year. Revenue per kilometer of passenger seats (RASK) was 10.2 points, a record for a full-service airline.

Macroeconomy

1. In a phone call with US President Joe Biden, Chinese leader Xi Jinping emphasized that the current global economic situation is full of challenges. China and the United States should maintain communication on major issues such as macroeconomic policy coordination, maintaining the stability of global industrial chains and supply chains, and ensuring global energy and food security. Decoupling and breaking chains in violation of the law will not help boost the US economy, and will also make the world economy more fragile.

2. The U.S. economy fell into a technical recession. Dragged down by declines in business and government spending and residential investment, U.S. GDP shrank by an annualized 0.9% month-on-month in the second quarter, the second consecutive quarter of contraction, but the contraction was less than the 1.6% in Quarter 1, after the market expected it to grow by 0.5% in the second quarter. In the second quarter, the month-on-month increase in the core PCE price index slowed to 4.4%, and personal consumption pointed to a slowdown to 1%.

Reminders

The United States and Japan held economic 2 + 2 talks to discuss issues such as consolidating the supply chain of important materials such as semiconductors.