Stock Market News: Investors Look Past Fed to Apple, Amazon Earnings

Mac sales were $7.8 billion, about flat with a year ago, and a tad below consensus of $7.9 billion. IPad sales were $7 billion, down 25%, and below the Street’s $7.4 billion forecast. Wearables, home and accessories revenue was $12 billion, above consensus at $11.3 billion, but down 11% from a year ago. Seaport Research analyst Aaron Kessler raised his target price to $510 from $435.

  1. Advertising revenue in the quarter was up 27% to $14.7 billion, well above the Street consensus at $14 billion.
  2. Apple shares were 1.7% lower in after-hours trading following the report.
  3. Seaport Research analyst Aaron Kessler raised his target price to $510 from $435.
  4. Apple shares are down in late trading Thursday after the company reported December-quarter results that topped Wall Street estimates, with strength in iPhones, but lower than expected growth in services.
  5. Chevron, Exxon Mobil, Bristol-Myers Squibb, Cigna and AbbVie are all due to report earnings before Friday’s bell.

It also maintained its buy rating and called the stock its top megacap pick for 2024. South Korea’s consumer price index rose 2.8% year on year, marking a third straight month of declines. Aozora plunged by as much as 18.5% to 2,080 yen in early Tokyo trading, sending its shares to their lowest levels since February 2021. Furthermore, high crude oil and energy prices in recent quarters are have impacted prices in other industries, the bureau added. Chevron, Exxon Mobil, Bristol-Myers Squibb, Cigna and AbbVie are all due to report earnings before Friday’s bell. The Dow Jones Industrial Average added 0.97%, while the S&P 500 and Nasdaq Composite respectively gained 1.25% and 1.3%.

The action follows a Wednesday sell-off that started after Federal Reserve chair Jerome Powell indicated that a rate cut at the March meeting was unlikely. “We model 13% growth in AWS in 4Q and believe the Street expectation is in the 12.5% to 13.0% range, based on our conversations,” JPMorgan said. CFO Olsavsky said revenues from generative AI are accelerating rapidly at the company, and that they’re seeing “significant interest” from customers wanting to run AI applications. The company doesn’t split out the amount of revenue it gets from AI products in its AWS division. Inc AMZN

“We’re looking for ways to increase our advertising,” he said — and not just across streaming services like Prime Video, but also on platforms like Freevee and Twitch. We’d like to share fp markets broker more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams.

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Ultimately, Hogan thinks that this year’s market rally is likely to continue, with Wednesday’s pullback to remain a blip on the radar. The move upward on Thursday indicates that investors are not only correcting Wednesday’s overreaction but are ultimately optimistic on the rate cut outlook, said Art Hogan, chief market strategist at B. Analysts at Bloomberg Intelligence said building sales momentum should help the e-commerce giant to Wall Street estimates when it reports earnings results. The boost is thanks to the October producer price index (PPI) coming in at 8%. The annual core PPI also came in at 6.7% year-over-year (YOY), much better than the prediction of 7.2%. According to Wallet Investor, AMZN one year forecast is $150, meaning the stock will trade for that amount in 2023. (AMZN) Stock Price, News & Analysis

Services revenue was $23.1 billion, up 11%, but slightly shy of the consensus view at $23.3 billion. Tech companies that don’t pay dividends have historically said it’s due to prioritizing spending elsewhere – around areas of growth. CFO Luca Maestri said that in the year ago March quarter, the company had an extra $5 billion in revenue related to unusual dynamics in the iPhone business. After backing out that factor, he said, Apple’s current quarter revenue–both overall and for the iPhone segment–should be about flat from a year ago.

The S&P 500 is up 0.31% through Thursday and on pace for its fourth straight positive week. This was compared to the 3.2% recorded the previous month, and slightly lower than the 2.9% expected by a Reuters poll. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.

Sales in the rest of the Asia Pacific region were $10.2 billion, up 7%. Apple and Microsoft have long paid dividends (both yield under 1% now). Meta Platforms surprised Wall Street Thursday by initiating a cash dividend. Apple said it expects gross margin in the quarter in the 46% to 47% range, up a little from 45.9% in the December quarter.

Apple, Meta, Amazon, Microsoft, Boeing, and More Stocks to Watch This Week

On a quarter-on-quarter basis, the country’s PPI grew 0.9%, lower than the third quarter’s growth rate of 1.8%. Investors — and the Fed — will have another data point to mull over on Friday with the release of January’s jobs report. Economists polled by Dow Jones are calling for payrolls to have grown by 185,000 positions, and for the unemployment rate to inch higher to 3.8%. That compares to December’s blowout of 216,000 positions added and an unemployment rate of 3.7%. Meanwhile, better-than-expected earnings across the board have also warranted the market’s constructive reaction.

He says Apple is spending “a tremendous amount of time and effort” on AI. “We’re excited to share the details of our ongoing work in that space later this year.” The key news item driving the stock higher was a bullish note on the stock from Roth MKM, which raised its price target from $165 to $180.

Online store sales were $70.5 billion, up 9%, above the Street consensus at $68.7 billion. Revenue from third-party seller services was $43.6 billion, up 20%, and likewise ahead of consensus, at $42.1 billion. “While we are not providing guidance for years beyond 2024, we expect our ambitious long-term AI research and product development efforts will require growing infrastructure investments beyond this year,” the company said. Late Thursday, the company said it expects its full-year 2024 capex will be in the range of $30 billion to $37 billion. That’s up from prior guidance of $30 billion to $35 billion given three months ago. IPhone revenue was $69.7 billion, up 6%, and ahead of the Wall Street consensus forecast of $65.8 billion.

That is a fair prediction, considering that Longforecast has already predicted that the stock will reach a maximum price of $175 in December 2023. Let’s move on to AMZN price predictions year by year to determine whether now is still a good time to buy or sell the stock. Meta expects its first-quarter revenue to come within a range $34.5 billion to $37 billion. Advertising revenue in the quarter was up 27% to $14.7 billion, well above the Street consensus at $14 billion. Last month, the executive posted on Instagram that his company plans to have 350,000 Nvidia H100 graphics processing units—and almost 600,000 H100 equivalent GPUs based on total computing power—by the end of this year.

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