A screen shows the Fed’s interest rate announcement as a trader reacts on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 27, 2022.
Brendan McDermid | Reuters
Here are the top news investors need to start their trading day:
1. Summer Friday balance sheet
2. Amazon: Actually, consumers are doing well
An Amazon Prime truck driver is seen in Los Angeles, California on Amazon Prime Day, July 12, 2022.
Frederick J. Brown | AFP | Getty Images
Well, Amazon users, anyway. Shares of the e-commerce giant fell earlier this week when Walmart cut its profit forecast as historic levels of inflation weighed on consumers. But Amazon executives said Thursday when the company posted quarterly earnings that inflation is not hitting its customers as hard as other retailers. That’s because Amazon and Walmart appeal to different customers. “The core consumer at Amazon is more affluent than the consumer at Walmart, and that seems to allow it to outperform Walmart,” said Tom Forte, an analyst at DA Davidson. Amazon shares rose sharply in premarket trading. CNBC’s Annie Palmer breaks it down here.
3. The iPhone is coming
A customer holds the new Apple iPhone 13 pro in green color shortly after its launch at the Apple Store on 5th Avenue in New York, March 18, 2022.
Mike Segar | Reuters
Shares of Apple rose in premarket trading after the giant gadget maker beat Wall Street expectations for quarterly profit and revenue. The kids of Cupertino can thank their pride and joy, the good old trusty iPhone. The strong sales came even though the iPhone 13 is in the second half of its product cycle, which means a new model is coming soon. “We had a record level of switches and saw double-digit growth for customers new to iPhone,” said CEO Tim Cook. Although Cook said the company expects revenue growth to be strong in the current quarter, he cited “pockets of softness.” Slowing growth in Apple’s services is one potential area of concern, writes CNBC’s Kiff Lesswing.
4. JetBlue’s next destination
Terminal A at LaGuardia International Airport for JetBlue and Spirit Airlines in New York.
Leslie Josephs | CNBC
It took months, many back-and-forths, multiple bids and several delayed shareholder votes, but JetBlue finally got it right. The airline convinced low-cost carrier Spirit to abandon its merger with fellow low-cost carrier Frontier and agree to be acquired by JetBlue in a $3.8 billion deal. Now comes the hard part for JetBlue and Spirit: getting the merger-skeptic Biden administration to sign off on the acquisition. For example, the Justice Department sued last year to block JetBlue’s Northeast alliance with American Airlines. The case will be heard in September. Still, JetBlue is optimistic and predicts regulators will sign off on the Spirit deal either late next year or early 2024, with the merger finalized in the first half of 2024. CNBC’s Leslie Josephs explains here.
5. Biden and Xi talk in a tense moment
US President Joe Biden and Chinese President Xi Jinping held a telephone conversation on Thursday. Pictured here is their virtual meeting on November 15, 2021.
Mandel Ngan | Afp | Getty Images
US President Joe Biden and Chinese President Xi Jinping spoke for more than two hours on Thursday and began setting up their first face-to-face meeting since Biden’s inauguration. The lengthy conversation between the leaders of the two superpowers came after the House of Representatives sent Biden a bill to boost US competitiveness with China and as the world focused on Taiwan, the self-governing island China claims as its own. House Speaker Nancy Pelosi, D-Calif., has indicated she may visit Taiwan during a tour of Asia starting this week, which could inflame U.S.-China relations. Meanwhile, The New York Times reported earlier this week that US officials are growing concerned that China could take action against Taiwan in the next 18 months. Despite all that, Biden and Xi appear to have had a constructive conversation, experts say. Read here CNBC reporter Evelyn Cheng from Beijing.
— CNBC’s Jesse Pound, Annie Palmer, Keef Lesswing, Leslie Josephs and Evelyn Cheng contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
Add Comment