AMD passes Intel in market cap. AMD stock rose over 3% Friday, giving the chipmaker a market capitalization of $153 billion. Intel fell nearly 9%, a day after disastrous earnings that missed expectations for profit and showed declining revenue. Intel’s market cap was $148 billion at the end of trading on Friday. The shift is mostly symbolic but it signifies a much more competitive market for PC and server chips.
Apple’s iPhones held up surprisingly well in China amid Covid lockdowns. Apple shipped 9.9 million iPhones in China in the second quarter, up 25% year-on-year, market research firm Canalys said in a report published on Friday. The Cupertino giant held up relatively well in the quarter in China, despite a 10% slump in the country’s overall smartphone market as a result of a resurgence in Covid.
Amazon shares rally after strong second quarter and guidance. The company posted better-than-expected second-quarter revenue and gave solid guidance for the current quarter. Amazon’s third-quarter forecast suggested growth could reaccelerate, to between 13% and 17%. The company said it projects revenue this quarter of $125 billion to $130 billion, while analysts were expecting sales of $126.4 billion. Read more here.
Exxon, Chevron, and Shell report record profits on high energy prices. The companies posted their highest-ever profits, reaping the rewards from surging commodity prices amid supply disruptions and rising demand. Exxon, which surpassed its previous quarterly profit record by more than $3 billion, warned Friday that global energy supplies will remain tight and expensive for the foreseeable future.
Inflation figure that the Fed follows closely hits the highest level since January 1982. The personal consumption expenditures price index rose 6.8%, the biggest 12-month move since the 6.9% increase in January 1982. The index rose 1% from May, tying its biggest monthly gain since February 1981. Excluding food and energy, the so-called core PCE increased 4.8% from a year ago. The rest of the economy might be slowing down, but wages are speeding up.
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House passes the $280 billion CHIPS act without China provision. The new legislation, which now heads to President Joe Biden’s desk for signing, will allocate $280 billion in subsidies, tax breaks, and research grants to prop up the domestic semiconductor industry. However, Democrats removed a provision of the legislation at the last minute that would have prevented U.S. companies from outsourcing subsequent technologies to China. Read more here.
Procter & Gamble warns significant headwinds to persist for its fiscal 2023. The company reported mixed quarterly results as the consumer products giant faced rising commodity costs. For its fiscal 2023, the company said it expects organic sales to be up 3% to 5% and earnings per share to be flat to up 4%. P&G expects headwinds of $3.3 billion due to foreign exchange rates, higher commodity costs, and higher freight costs.
Tom Lee says the 2022 bear market is over. He believes stocks could hit new highs before year-end. According to Lee, the reaction to this week’s news is promising. Markets got a wave of troubling economic data from a negative GDP print and another aggressive 75 basis point rate hike, yet stocks continued to rally. At the same, global companies continue to post solid earnings per share growth despite a surging U.S. dollar and negative GDP print, he added. Read more here.
Market to ease despite high home prices, NAR Chief predicts. Even though national GDP contracted for the second quarter in a row and home sales have fallen for five straight months, property prices are likely to continue growing because of low inventory. But there were more job openings than unemployed people in May. Unfilled jobs point to a potential slowdown in the housing market, Yun said.
Remote work and eCommerce will be less correlated over time. David Friedberg says that remote workers will want to spend more time outside shopping and eating and doing activities because they usually work all day at home. They have more incentive to see the outside world. In contrast, office workers will want to do more eCommerce because they are outside all the time. Source(28:10)