My top 10 things to see on Friday August 2nd
1. Wall Street was expecting a disappointing open on Friday, as a weak jobs report heightened recession fears that also gripped the market on Thursday. Nasdaq was the worst performer, down 2.3% in the regular session, even before disappointing numbers from Amazon and Intel kept tech stocks on the defensive.
2. The U.S. economy added just 114,000 nonfarm jobs last month. The unemployment rate edged up to 4.3%. Investors are worried about the Fed’s response. Central banks left interest rates unchanged earlier this week. They should have cut them. Markets are now pricing in a 50-basis-point rate cut in September.
3. Amazon The situation wasn’t as bad as you think. Some Wall Street analysts cut their price targets. Others raised them. We kept our rating and PT the same. The stock was down 9% early Thursday morning after a tough quarter and weak guidance. Cloud growth was overshadowed by some e-commerce struggles. It’s encouraging to see retail’s cost-to-serve continue to fall.
4. Apple The forecast was better than you think. Analysts’ estimates were revised upwards. Apple delivered better-than-expected quarterly results ahead of what’s expected to be a robust AI-powered iPhone upgrade cycle in the coming months. Services were strong. The forecast was slightly better than expected. The new AI-enhanced iPhone is coming out next month.
5. Intel It was the worst possible situation, and we don’t know how bad it is. It was a horrible quarter. Guidance was weak. Shares fell more than 20%. Intel announced it was laying off more than 15% of its employees, or about 15,000, as part of a $10 billion cost-cutting plan. The chipmaker also suspended its dividend.
6. Many semiconductor stocks have been sold off due to Intel’s troubles. Club Name Nvidia is the real winner, based on feedback from its mega-cap customers this quarter. Its chips are out of stock. But market vendors don’t care. Nvidia Shares fell 3.5%. Club shares Broadcom was down and Advanced microsystems was actually on the rise.
7. Club Name Coterra Energy Shares of the oil and natural gas production company fell 1.5% Friday morning after the oil and natural gas production company missed its quarterly earnings and revenue targets. However, production volumes and, more importantly, cash flow generation both exceeded expectations.
8. Exxon The oil company reported better-than-expected quarterly earnings and revenue. It posted record production in Guyana and the Permian Basin. Exxon’s acquisition of Pioneer Natural Resources, formerly known as Club, contributed $500 million to the oil giant’s earnings.
9. Chevron Chevron missed its second-quarter profit because of weaker refining margins. Cash flow was sharply negative. Revenue was outpaced. Chevron announced it was moving its headquarters from California to Texas. Chevron is also waiting on the Hess deal, which is being delayed by arbitration with Exxon.
ten. Actions of Next rack Shares of Nextracker fell about 7% as questions about the solar technology company’s order book overshadowed better-than-expected quarterly results. Nextracker Group, whose management is known for being conservative in its forecasts, reiterated its outlook for fiscal 2025.
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