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.

Confirmed Cases: 36680

Reported Deaths: 1250
CountyConfirmedDeaths
Hinds299254
DeSoto195920
Madison148439
Jones122449
Harrison117716
Rankin112619
Neshoba104677
Forrest103843
Lauderdale96681
Scott82415
Jackson79819
Washington73713
Copiah67016
Leake63420
Lee62822
Oktibbeha61928
Grenada6049
Warren60021
Holmes59541
Lamar5837
Wayne56519
Yazoo5607
Lowndes54817
Leflore53456
Lincoln53335
Lafayette5064
Pike50520
Sunflower5048
Monroe46135
Panola4546
Covington4465
Simpson4433
Bolivar41218
Tate39213
Attala38624
Newton37610
Adams35820
Pontotoc3556
Marion34512
Claiborne30811
Pearl River30332
Winston30111
Chickasaw30019
Marshall2923
Jasper2816
Noxubee2799
Walthall2708
Clay26111
Union25412
Smith25212
Coahoma2306
Clarke22325
Lawrence2132
Yalobusha2089
Tallahatchie1954
Kemper18414
Carroll18211
Montgomery1793
Calhoun1705
Humphreys16910
Hancock14813
Itawamba1478
Tippah14611
Webster13411
Jefferson1283
Prentiss1274
Jefferson Davis1254
Tunica1253
George1233
Greene11610
Amite1123
Alcorn1072
Tishomingo1061
Quitman1011
Wilkinson989
Perry914
Stone772
Choctaw764
Franklin542
Sharkey480
Benton470
Issaquena101
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 54768

Reported Deaths: 1096
CountyConfirmedDeaths
Jefferson6746170
Mobile4904140
Montgomery4547112
Tuscaloosa269053
Madison22689
Marshall198011
Shelby169125
Lee159637
Morgan13385
Baldwin127711
Walker107532
Elmore106721
Etowah101114
Dallas10029
DeKalb9677
Franklin93816
Autauga69815
Russell6860
Unassigned67928
Chambers67730
Butler65229
Limestone6393
Tallapoosa63069
Cullman6156
Houston6077
Lauderdale5776
St. Clair5443
Calhoun5155
Colbert5096
Escambia4888
Lowndes48422
Pike4795
Jackson4352
Coffee4284
Covington41612
Talladega4017
Barbour3992
Dale3951
Bullock37810
Hale35423
Marengo35411
Chilton3312
Blount3201
Clarke3176
Wilcox3038
Winston2995
Sumter29213
Marion29014
Pickens2746
Randolph2639
Monroe2603
Perry2502
Conecuh2318
Bibb2241
Macon2199
Choctaw21712
Greene1989
Henry1553
Washington1488
Lawrence1360
Crenshaw1323
Cherokee1247
Geneva980
Lamar891
Clay852
Fayette851
Coosa661
Cleburne451
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