Apple and Amazon report earnings after the close tonight, a day after the Fed surprised markets with a hawkish turn. Wall Street is hunting for direction after a sharp pullback.
The prior session ended in the red. Wall Street tumbled after the Fed held rates but signaled a hawkish stance, with the Dow down 2.19% as the weakest major index.
After the close, two tech giants split. Microsoft jumped about 9% on its results, while Meta slumped about 9%. Tonight it is Apple and Amazon's turn to report.
EPS missed at $6.18 and soft Q3 guidance ($61-64B) weighed on the stock
Tonight's Catalysts 🧨
Apple and Amazon report tonight
Apple (AAPL) reports after the close. The market is watching iPhone demand, Services growth, and China exposure. Amazon (AMZN) follows, with focus on AWS growth, capex for AI and cloud, and retail-business margins. Their results will set the tone for Friday's trading.
The Fed's hawkish surprise
The Fed held rates but three members voted to hike, and Chair Kevin Warsh signaled a possible September increase. Wall Street reacted negatively, with the Dow falling about 1,155 points. The 10-year Treasury yield rose to around 4.64% and became the main pressure on equities.
A megacap split and AI memory
Microsoft (MSFT) surged about 9% after revenue of $90.01B and 43% Azure growth, while Meta (META) fell about 9% on an earnings miss and soft guidance. Separately, Samsung's chip profit soared on AI-memory demand, a positive read-through for Nvidia and Micron.
US futures edged higher this morning, led by Microsoft's post-earnings surge. Nasdaq 100 futures rose about 0.78%, while the S&P 500 and Dow moved more modestly. Markets are trying to recover from the Fed Day selloff, but a fresh direction likely waits on Apple and Amazon.
Macro Note 📝
Beyond earnings and the Fed, geopolitical tension adds to the backdrop. Fresh US strikes on Iran lifted oil, with WTI near $79 a barrel and energy and defense names in focus. Gold was relatively flat near $4,020 an ounce.
Conclusion
Tonight closes the megacap earnings week with two of the biggest names: Apple and Amazon. After the Fed's hawkish surprise and the Microsoft-Meta split, their results could decide whether risk appetite recovers or the pressure carries into Friday.
For investors, it is a good time to study the watchlist before the outcomes land. What stocks are you watching tonight?
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