Amazon Surges and Apple Falls on Latest Earnings

Dow Jones08-01

This is an edition of the Markets P.M. newsletter, a recap of the day's most important markets moves, delivered after the closing bell. If you're not subscribed, sign up here.

What Happened in Markets Today

Amazon shares surged 15% on strong cloud sales. The company reported 37% revenue growth in Amazon Web Services, the fastest growth rate in 18 quarters. Apple stock fell roughly 7% after it gave a disappointing forecast for the September quarter. Supply chain constraints are making it difficult for the company to source components for its iPhones and iPads.

Equities rose but bonds kept falling. The Nasdaq Composite gained 1%. The S&P 500 ended the day up 0.7% and the Dow added 0.5%, or 278 points. All three indexes gained 1% or more for the week. Bonds fell however, with the 10-year U.S. Treasury yield rising 0.081 percentage point to 4.743%, the highest level since January 2025.

Tesla is considering a sale of its China business ahead of a potential merger with SpaceX. The company could also spin out the business. The separation would address potential conflicts that could arise from SpaceX's role as a major U.S. defense contractor.

Anthropic says its software hacked three companies. The breaches occurred during tests. A week earlier, OpenAI said that its AI technology had hacked another AI company after breaking out of its testing sandbox.

ExxonMobil and Chevron reported soaring profits from high crude oil prices and refining bottlenecks resulting from the conflicts in the Middle East and Russia. Chevron's shares rose 2.3% and Exxon's stock fell 1%.

Markets at a Glance

One Big Story

Ford Motor and General Motors are looking beyond cars to pursue grid-scale battery storage and defense. But the two companies have a poor track record of diversifying.

🎥 Heard on the Street's Quick Take

WSJ's Jinjoo Lee explains why oil refiners are the best-performing energy stocks this year.

What's Coming Up

   -- Companies reporting early next week include Palantir, Caterpillar, Merck 
      and SpaceX. 
 
   -- Also next week, investors will get the latest updates on manufacturing 
      purchasing managers' index and job openings. 

Be prepared for the trading day ahead -- sign up for Markets A.M.

About Us

Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by Jinjoo Lee, writer for Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.

 

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