Wall Street Breakfast Podcast: Amazon, Apple Earnings On Tap

Businessman holding iPhone 6 with application Stocks of Apple


Listen below or on the go on Apple Podcasts and Spotify

Apple (AAPL) Q3 preview: iPhone, India and AI all in focus. (00:34) Amazon (AMZN) analysts upbeat on upcoming results: Earnings preview. (01:28) JPMorgan CEO Jamie Dimon says Fitch U.S. ratings downgrade is `ridiculous’. (02:25)

This is an abridged transcript of the podcast.

Apple is slated to report (NASDAQ:AAPL) fiscal third-quarter results after the close of trading today and investors will be looking for the U.S. tech giant to give updates on the iPhone, its status in India and any news related to artificial intelligence.

Wedbush Securities analyst Dan Ives, who has an outperform rating on Apple (AAPL), said that recent supply chain checks from Asia should show “at least” in-line results with potential for revenue from the iPhone to top estimates, citing a “clear uptick” in demand in China, along with higher average selling prices.

A consensus of analysts are forecasting Apple to earn $1.19 per share on $81.82B in revenue.

The company has opened its first two official stores in India – one in Mumbai and the other in New Delhi – and Apple’s manufacturing partners have been building out capabilities in the country.

Amazon.com (NASDAQ:AMZN) is also set to report second-quarter earnings today, with most analysts optimistic that results will beat estimates.

The ecommerce retailer is expected to report EPS of $0.35 and revenue of $131.6B for the second quarter. Operating income is expected at $4.7B, and a gross margin rate of 46.5%.

During the earnings call, Amazon (AMZN) is expected to issue its outlook for the full year. Investors will also likely be eyeing discussion of AI innovation, healthcare-related opportunities and costs.

This is also on the heels of Prime Day in July, which will be included in the company’s third quarter report. AMZN noted that July 11 was the single largest sales day in its history and Prime members purchased more than 375M items worldwide and saved more than $2.5B, also a record.

Wednesday here on Wall Street Breakfast we told you about the Fitch downgrade of the U.S. long term rating from AAA to AA+.

Well JPMorgan Chase CEO Jamie Dimon said it’s “ridiculous.

In a CNBC interview, he said “It doesn’t really matter that much. The markets decide. It’s not the rating agencies that make these big decisions.”

Dimon highlighted that there are several countries that are higher rated than the U.S., though the countries live under the American enterprise military system.

“To have them be AAA and not America is kind of ridiculous,” Dimon said.

He went on to say that the U.S. “has the best economy the world has ever seen, the most innovation. The credit is sound. It should be the highest rated credit in the world.”

In addition, Dimon said that the debt ceiling should be eliminated.

Other headlines to look out for on Seeking Alpha:

American Well down 6% on earnings, 2023 revenue outlook cut

PayPal stock slides after in-line Q2 earnings, active accounts number slips

Shopify’s sales beat; shares fluctuate postmarket

Airbnb earnings preview: Reporting amid a busy season, and after a tough warning

Costco July net sales jump nearly 5%, comparable sales rise 2.5%

Salesforce said to lay off more employees after January’s purge

On our catalyst watch for the day- Fisker (FSR) will provide a first look at its future product portfolio at the electric vehicle maker’s inaugural Product Vision Day event. The U.S. automaker said it will unveil its strategic product roadmap. (Fisker analysis)

Wall Street’s major averages lost ground on Wednesday, amid a flurry of major headlines including the one about the downgrade as well as private payrolls.

The Nasdaq (COMP.IND) slumped 2.17%. The S&P 500 (SP500) slipped 1.38%. The Dow (DJI) retreated 0.98%.

Of the 11 S&P sectors, nine ended trading in the red. Communication Services, Consumer Discretionary and Tech, were the three biggest losers. Consumer Staples and Health Care were the two gainers.

The 10-year yield (US10Y) was up 2 basis points to 4.07%, while the 2-year yield (US2Y) was down 3 basis points to 4.88%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.1%, the S&P 500 is down 0.1% and the Nasdaq is down 0.2%. Crude oil is up 0.1% at less than $80 a barrel. Bitcoin is up 1.3%.

In the world markets, the FTSE 100 is down 1% and the DAX is down 0.7%.

Our biggest stock movers for the day premarket: EVgo (NASDAQ:EVGO) shares rose 13% as the company outperformed expectations in Q2 with top-line growth of 457% Y/Y. Shares of Qualcomm (NASDAQ:QCOM) slipped more than 8% after the semiconductor company reported mixed Q3 results with weak Q4 guidance.

On today’s economic calendar, at 830am initial jobless claims and at 10am factory orders.

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