Tuesday, July 30, 2019
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WHAT TO WATCH
There are two key events that investors will be paying close attention to today, the start of the Federal Open Market Committee’s (FOMC) meeting and tech giant Apple’s earnings report.
The FOMC’s two-day policy meeting kicks off today and will arguably be the biggest event of the week with market-moving potential. At the meeting’s conclusion on Wednesday, the FOMC is expected to cut rates for the first time in over a decade, despite recent data pointing to a strong economy.
Meanwhile, iPhone maker Apple will take center stage after the market close when it reports fiscal third-quarter earnings. Slowing iPhone demand and weak sales in China have put pressure on the tech giant, as it tries to move away from dependence on hardware sales. Last quarter, iPhone sales fell 17% from the same period last year, and iPhone sales in China, a key market, fell 22% year over year.
Apple (AAPL) has been caught in the crosshairs of the U.S.-China trade war, and with no resolution to the feud in sight, investors have grown concerned about Apple’s future.
Analysts polled by Bloomberg expect Apple to report earnings of $2.10 per share on $53.36 billion in revenue. iPhone sales are expected to fall 10%; however, sales in other segments such as iPad, Mac, Services and Wearables are expected to jump a combined 14.4%, according to data compiled by Bloomberg.
Other notable earnings reports scheduled include Altria (MO), ConocoPhillips (COP), D.R. Horton (DHI), Eli Lilly (LLY), Grubhub (GRUB), Incyte (INCY), Mastercard (MA), Merck (MRK), Pfizer (PFE), Procter & Gamble (PG), Ralph Lauren (RL), Under Armour (UAA) before market open. Advanced Micro Devices (AMD), Amgen (AMGN), Electronic Arts (EA), Gilead (GILD), Mondelez (MDLZ) will report after the market close.
Capital One says data of over 100 million individuals in U.S., Canada hacked: Capital One Financial Corp said on Monday personal information including names, addresses, phone numbers and credit scores of about 100 million individuals in the United States and 6 million people in Canada were obtained by a hacker who has been arrested. [Reuters]
Beyond Meat sales beat expectations, boosts full-year outlook: Beyond Meat (BYND) reported revenue of $67.3 million vs. $52.71 million expected and adjusted loss per share of 14 cents vs. 8 cents expected. [Yahoo Finance]
Huawei's first-half revenue growth accelerates despite U.S. sanctions: China's Huawei Technologies said on Tuesday revenue in the first half of the year grew 23.2% - faster than a year ago - despite an intense U.S. campaign against it that ultimately became a trade ban from mid-May. [Reuters]
Also: Inside Huawei’s $1.5 billion ‘European town’ campus in China [Yahoo Finance]
Uber to cut about 400 employees, citing worry of slowing growth. Uber Technologies Inc. is cutting a third of its marketing department globally, said a person familiar with the matter, as the chief executive officer seeks to address perceptions that the business is slowing down. [Bloomberg]
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