Apple profit soars; Tariff threats; Tesla earnings

1. Apple profits: Apple sold essentially the same number of iPhones last quarter as it did a year pr...

Posted: Aug 1, 2018 12:41 PM
Updated: Aug 1, 2018 12:41 PM

1. Apple profits: Apple sold essentially the same number of iPhones last quarter as it did a year prior, but sales and profits soared as it made more money from higher-priced devices.

The tech company posted a $11.5 billion profit for the three months ending in June, up 32% from the same period a year ago. Apple's revenue increased 17% to $53.3 billion, a new record for its fiscal third quarter.

The results highlight Apple's successful shift away from depending on selling more and more iPhones in order to grow its business.

Apple stock rose more than 3% premarket following the earnings report. It's now within striking distance of becoming the first company to top a $1 trillion market value.

Related: Watch CNNMoney's 'Markets Now' today at 12:45 p.m. ET

Another development to consider: China's Huawei has passed Apple to become the world's second largest smartphone seller, according to research firms IDC, Canalys and IHS Markit.

2. Steeper tariffs? The Trump administration plans to raise pending tariffs on $200 billion in Chinese goods to 25% from 10%, a source familiar with discussions confirmed to CNN.

The move is not finalized and could change, according to the source. Talks between US and Chinese officials have done little to ease trade tensions.

The United States has already imposed 25% tariffs on Chinese goods worth $34 billion. China immediately responded with its own tariffs on US goods worth $34 billion.

A second round of US tariffs on products worth $16 billion could take effect as soon as this week.

3. Tesla earnings: Tesla is set to report earnings after the closing bell. It may be the most closely watched earnings report in the company's history.

The electric carmaker just hit an important target for production of the Model 3, its cheapest car. But the company is trying to stop mounting losses and convince investors it can avoid further production line problems.

On top of that, CEO Elon Musk keeps making headlines with bizarre tweets and outbursts against critics.

4. Volkswagen's warning: Volkswagen reported record earnings for the first six months of the year, but warned about challenges ahead. The carmaker said growing protectionism and new European emissions tests pose risks.

The company is also still feeling the impact of its diesel scandal. It said it took -1.6 billion ($1.9 billion) charge in connection to the issue in the second quarter.

5. Global market overview: US stock futures were flat.

European markets were mixed, following a negative session in Asia.

The Dow Jones industrial average closed 0.4% higher on Tuesday, while the S&P 500 added 0.5% and the Nasdaq gained 0.6%.

Oil prices slipped 0.8% after a rough trading session on Tuesday. Unofficial estimates from the American Petroleum Institute showed an unexpected rise in US stockpiles.

An official report on US crude inventories from the Energy Information Administration will be released at 10:30 a.m. ET.

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6. Companies and economics: AMC Entertainment, Caesars Entertainment, Ferrari, Garmin, Humana, Molson Coors Brewing and Sprint will release earnings before the open.

Allstate, Boingo Wireless, Churchill Downs, Fitbit, T-Mobile US, TripAdvisor, US Steel, Valvoline and Wynn Resorts will follow after the close.

Shares in Chipotle dropped 7% on Tuesday, after customers reported getting sick in Ohio.

The Federal Reserve will wrap its two day meeting on Wednesday.

The central bank is not expected to raise interest rates, but investors will be watching the statement closely for the central bank's read on the economy and clues about interest rates. It previously signaled that it plans two more rate hikes this year and three in 2019.

The Institute for Supply Management will release its ISM Index for July at 10 a.m. ET.

The Reserve Bank of India hiked a key interest rate to 6.5% from 6.25% as it works to combat inflation and prevent money from flowing out of the country.

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7. Coming this week:
Wednesday - Fed statement; Humana, Sprint, Tesla earnings
Thursday - Bank of England meets; Berkshire Hathaway, Yum Brands, Aetna earnings
Friday - US jobs report; Kraft Heinz, Toyota earnings

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319948

Reported Deaths: 7371
CountyCasesDeaths
DeSoto22285267
Hinds20719421
Harrison18431317
Rankin13901282
Jackson13718248
Madison10263224
Lee10059176
Jones8467167
Forrest7832153
Lauderdale7261242
Lowndes6517150
Lamar635188
Lafayette6313121
Washington5425137
Bolivar4841133
Panola4670110
Oktibbeha466198
Pearl River4605147
Marshall4574105
Warren4440121
Pontotoc425873
Monroe4157135
Union415777
Neshoba4063179
Lincoln4008112
Hancock386987
Leflore3515125
Tate342486
Sunflower339491
Pike3371111
Alcorn327272
Scott320374
Yazoo314171
Adams308086
Itawamba305178
Copiah299966
Coahoma298784
Simpson298589
Tippah291968
Prentiss284161
Leake272074
Marion271280
Covington267283
Wayne264642
Grenada264087
George252251
Newton248663
Tishomingo231868
Winston230181
Jasper222148
Attala215073
Chickasaw210559
Holmes190474
Stone188433
Clay187954
Tallahatchie180041
Clarke178980
Calhoun174132
Yalobusha167840
Smith164134
Walthall135347
Greene131834
Lawrence131124
Montgomery128643
Noxubee128034
Perry127238
Amite126242
Carroll122330
Webster115032
Jefferson Davis108234
Tunica108127
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman82216
Choctaw79118
Wilkinson69632
Jefferson66228
Sharkey50917
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 548657

Reported Deaths: 11306
CountyCasesDeaths
Jefferson810031566
Mobile42105831
Madison35690525
Tuscaloosa26173458
Shelby25607254
Montgomery25081614
Baldwin21868314
Lee16278176
Calhoun14719327
Morgan14629285
Etowah14175364
Marshall12453230
Houston10781287
Elmore10293214
Limestone10179157
St. Clair10162251
Cullman9952201
Lauderdale9603250
DeKalb8972190
Talladega8460184
Walker7338280
Autauga7241113
Blount6945139
Jackson6932113
Colbert6413140
Coffee5635127
Dale4928116
Russell454841
Chilton4476116
Franklin431382
Covington4275122
Tallapoosa4138155
Escambia401680
Chambers3728124
Dallas3607158
Clarke353061
Marion3240107
Pike314378
Lawrence3133100
Winston283472
Bibb268564
Geneva257981
Marengo250565
Pickens236962
Barbour234559
Hale227278
Butler224271
Fayette218862
Henry194543
Randolph187544
Cherokee187345
Monroe180041
Washington170539
Macon163051
Clay160059
Crenshaw155957
Cleburne153444
Lamar146837
Lowndes142254
Wilcox126930
Bullock124342
Conecuh113630
Coosa111729
Perry108626
Sumter105732
Greene93634
Choctaw62125
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Columbus
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We will see the rainfall move out of our area overnight as a cold front moves through our area. We will see high pressure move into our area for a few days as we to through our Tuesday and Wednesday. However, more rainfalll in the forecast later in the week.
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