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APPLE POWERS WALL STREET; ALL EYES ON FED

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US FINANCIAL MARKET
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APPLE POWERS WALL STREET; ALL EYES ON FED

  • Investors will look for clues on the timing of the next rate hike.
  • Apple soared 7% after the company sold more iPhones than expected in the third-quarter and gave an upbeat current-quarter forecast.
  • Boeing rose 2% after the planemaker’s quarterly revenue beat analysts’ estimates.
  • Twitter plunged 12% after the microblogging service provider reported its slowest quarterly revenue growth since going public in 2013.

US FINANCIAL MARKET

Apple Earnings Fall on IPhone Slump

  • Quarterly profit fell 27% to $7.8 billion.
  • The world’s most valuable publicly traded company said it sold 40.4 million iPhones in the third quarter, down 15 percent from the year-ago quarter but slightly more than the average analyst forecast of 40.02 million.
  • Apple said its gross margin was 38% in the latest quarter, in line with its estimated range of 37.5% to 38%.
  • Revenue declined 14.6% to $42.36 billion from $49.6 billion a year earlier.

Boeing Swings to Loss, but Results Still Top Views

  • The company sees full-year adjusted per-share earnings between $6.10 and $6.30, down from an earlier range of $8.15 and $8.35.
  • The consensus estimate for profit in 2016 was $5.34 a share.
  • The company announced last week that charges related to stumbles in production would wipe out $3.23 from second quarter earnings.
  • Revenue rose 1% to $24.76 billion.
  • Analysts had projected $24.12 billion in sales.

Comcast Revenue Tops Estimates as Video Subscriber Losses Improve

  • Net income fell to $2.03 billion compared with $2.14 billion a year ago.
  • Revenue grew 2.8% to $19.27 billion.
  • Comcast lost 4,000 video customers.
  • Broadband revenue increased 8.6% to $3.37 billion.
  • Video revenue grew 2.8% to $5.58 billion.
  • At NBCUniversal, revenue fell 1.8% to $7.10 billion, as declines in filmed entertainment offset growth at its television networks and theme parks.
  • In April, Comcast agreed to buy DreamWorks Animations for $3.8 billion in a deal that will add the “Shrek,” “Kung Fu Panda,” and “Madagascar” franchises to its film lineup and help it challenge Walt Disney Co. in family entertainment.

Coke’s Revenue Slides as Soda Volume Declines

  • Coke posted a profit of $3.45 billion, up from $3.12 billion a year earlier.
  • Revenue slipped 5.1% to $11.54 billion, below analysts’ prediction for $11.64 billion.
  • Coke said it increased prices 3% globally.

Mondelez Reports Higher Profit, Plans to Expand in China

  • Mondelez reported a profit of $464 million, up from $406 million a year earlier.
  • Revenue decreased 18% to $6.3 billion.

Twitter Revenue Growth Dwindles; Outlook Disappoints

  • Twitter reported its revenue rose 20% to $602 million in the second quarter, its smallest gain and eighth-straight period of declining growth.
  • The company added 3 million net new users in the most recent three-month period, up just 1% from the previous quarter, giving it 313 million users who log in at least once a month.

T-Mobile Tops Views as Customer Base Grows

  • T-Mobile reported 1.9 million net adds.
  • It added more than one million customers to 13 consecutive quarters.
  • T-Mobile reported a profit of $225 million, down from $361 million a year earlier.
  • Revenue grew 13% to $9.2 billion.

Norfolk Southern Earnings Narrowly Top Views amid Cost Cuts

  • Norfolk Southern’s coal revenue in the second quarter dropped 25%.
  • Coal now makes up 14% of total revenue, down from 17% in the same period a year ago.
  • Intermodal revenue fell 15% to $538 million. Volume slipped 5%.
  • The company posted a profit of $405 million, down from $433 million a year earlier.
  • Overall revenue skidded 9.5% to $2.45 billion, on reduced volumes and lower fuel surcharges.

Anthem Raises Outlook, Reiterates Cigna Purchase Plans

  • The health insurer also reiterated its plans to buy Cigna for $48 billion, saying its commitment “remains as strong as ever” despite challenges from the U.S. government.
  • As for 2016, Anthem said it now expects revenue in the range of $82.5 billion to $83.5 billion, up from its previous forecast of $81 billion to $82 billion.
  • The company posted a profit of $780.6 million, up from $859.1 million a year earlier.
  • Revenue increased 7.2% to $21.46 billion.

General Dynamics Raises Guidance as Cost Cuts Lift Earnings

  • General Dynamic delivered fewer Gulfstream jets.
  • It reported a profit of $758 million, up from $752 million a year earlier.
  • Revenue slipped 2.8% to $7.67 billion.
  • The Virginia-based aerospace and defense company sells communication systems, ships and combat vehicles to the government, in addition to Gulfstream business jets.

Analog Devices to Acquire Linear Technology for $14.8 Billion

  • The deal will unite two venerable names in a lucrative subset of the semiconductor industry.
  • The transaction values Linear Technology shares at $60 apiece, a 24% premium to its closing price Monday.
  • Analog, based in Norwood, Mass., was founded in 1965 and counts Apple as one of its biggest customers.
  • By adding Linear, Analog Devices will reduce its reliance on the Silicon Valley giant—whose smartphone sales have slowed lately—while adding product categories such as power-management chips for handsets that are one of the market’s fastest-growing areas.

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US ECONOMY & POLITICS

U.S. Durable Orders Tumble 4.0% on Overseas Turmoil

  • June’s decline was largest since August 2014, but led by soft demand in the volatile civilian aircraft, defense sectors.
  • The June decline voted to leave the European Union was led by weaker demand for civilian aircraft and defense products, but there was a pull back in several other categories including computers and metals.

U.S. Pending Home Sales Edged Higher in June

  • Ongoing job growth and low interest rates continue to support the U.S. housing market.
  • Pending home sales index rose a seasonally adjusted 0.2% in June from the prior month.
  • The index stood at 111.0 in June, from May’s reading of 110.8. Compared with June 2015, the index has risen 1.0%.

EIA Petroleum Report

  • Crude oil inventories were reported at 1.7 million barrels compared to -2.3 million barrels the week prior.
  • Gasoline inventories were reported at 0.5 million barrels compared to 0.9 million barrels the week prior.
  • Distillates inventories were reported at -0.8 million barrels compared to -0.2 million barrels the week prior.

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EUROPE & WORLD

Bayer Reports Higher Second-Quarter Profit, Raises Full-Year Guidance

  • Net profit was €1.38 billion ($1.52 billion), compared with €1.15 billion during the same period last year, in line with analysts’ forecasts.
  • Sales dropped slightly, to €11.83 billion, held back by all divisions expect pharmaceuticals.

Fiat Chrysler’s Profit Jumps on Enhanced European Performance

  • Net Profit rose 25% to €321 million ($353 million).
  • Revenue fell 2% to €27.89 billion. At constant exchange rates sales rose 1%.
  • Fiat Chrysler shipped 1.17 million vehicles in the second quarter, in line with last year’s second quarter, as an increase in Europe offset drops in North America, Asia Pacific and South America.

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TODAY in HISTORY

1000509261001_2033794950001_Richard-Nixon-The-Impeachment-Process

The House Judiciary Committee voted to impeach Richard Nixon for obstructing justice in the Watergate case (1974) 

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