FINWIRES · TerminalLIVE
FINWIRES

US Equity Markets End Higher on Amazon's Profit Surge, Communications Services Rally

By

US equity indexes ended higher Friday after Amazon.com's (AMZN) Q2 profit soared and the communication-services sector rallied.

* Amazon's shares rose 15%, the top gainer on the S&P 500, a day after the e-commerce giant's Q2 results topped Wall Street's estimates on cloud-computing business strength.

* A University of Michigan survey showed respondents expect a 4.2% inflation rate over the next year, down from 4.6% in June, and 3.3% annual inflation over the next five years.

* The University of Michigan consumer sentiment index was revised upward to 55.2 for July from 54.4 in the preliminary estimate, compared with expectations for a downward revision to 54.0 in a survey compiled by Bloomberg.

* The quarterly US employment cost index rose by 0.9% in Q2, in line with the previous quarter, the US Bureau of Labor Statistics reported. That topped the consensus estimate of a 0.8% gain in a Bloomberg survey.

* September West Texas Intermediate crude oil rose $1.20 to settle at $84.79 per barrel, while September Brent crude, the global benchmark, was last seen up $1.06 at $90.09.

* Apple (AAPL) shares fell 7.4%, the biggest drop on the Nasdaq, a day after the company missed market estimates for iPad and services revenue in fiscal Q3.

Related Articles

Japan

US Equity Markets End Higher on Microsoft's Cloud Gains, Semiconductor Rebound

US equity indexes ended higher Thursday after Microsoft (MSFT) posted AI-backed gains and semiconductor stocks rebounded.* Microsoft's intelligent-cloud segment's revenue increased 32% to $39.31 billion, buoyed by 43% growth in Azure and other cloud services.* The personal consumption expenditures price index fell 0.1% in June, as expected, cutting the year-over-year rate to 3.7% from 4.1%.* US initial jobless claims last week rose sequentially to 197,000 from an upwardly revised 188,000, versus expectations for an increase to 200,000 in a Bloomberg poll.* September West Texas Intermediate crude oil fell $0.74 to settle at $83.70 per barrel, while September Brent crude, the global benchmark, was last seen down $1.56 at $89.18.* Chip-related stocks jumped with Sandisk (SNDK) up 26%, the top performer on the S&P 500. Micron Technology (MU), Advanced Micro Devices (AMD) and Intel (INTC) also advanced.* Alnylam Pharmaceuticals (ALNY) shares fell 28%, the biggest drop on the Nasdaq, after the company lowered its full-year 2026 net product revenue guidance.

Dow JonesNasdaq CompositeS&P 500$ALNY$AMD$INTC$MSFT$MU
Japan

Update: US Equity Indexes Surge as Microsoft's Quarterly Results Spark Rebound in Chipmakers Ahead of Amazon's Earnings

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes soared following a bounce in semiconductors, as investors anchored to Microsoft's (MSFT) quarterly results showing AI monetization while awaiting results from Amazon.com (AMZN) and Apple (AAPL) after the bell.The Nasdaq Composite jumped 2.7% to 25,097.2, the S&P 500 was up 1.6% to 7,435.5, and the Dow Jones Industrial Average climbed 1.2% to 52,231.8 ahead of Thursday's close. Technology was the standout gainer, up 5%.The Microsoft intelligent cloud segment's revenue increased 32% to $39.31 billion, buoyed by 43% growth in Azure and other cloud services, according to the company. Analysts expected a 40% year-over-year advance in Azure sales."This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their (artificial intelligence) transformation," Chief Executive Satya Nadella said in a statement. Shares of Microsoft soared 17%, one of the top gainers on the S&P 500, Nasdaq, and the Dow.VanEck Semiconductor ETF (SMH), with net assets of $77.2 billion, soared 6.7%, as chipmakers are major beneficiaries of AI-related spend. Investors will watch Amazon's AI-related growth in both revenue and spend when it announces quarterly results after the bell.Among companies with a market capitalization of more than $200 billion, six of the top 10 gainers in the final leg of trading were from the semiconductors and semiconductor equipment and materials industries, according to data compiled by Finviz.In economic news, the personal consumption expenditures, or PCE, price index fell 0.1% in June, as expected, cutting the year-over-year rate to 3.7% from 4.1%. The price index rose by 0.5% in May. The core PCE price index climbed 0.1% in June, below the 0.2% gain expected and following a 0.3% growth in May. The year-over-year rate dropped to 3.3% from 3.4%, according to the Bureau of Economic Analysis.US Treasury yields traded mixed, with the 10-year up 4.5 basis points to 4.67%. The two-year was steady at 4.24%.Late Wednesday, the US Central Command forces completed a "heavy wave" of strikes against Iran in response to Tuesday's attempted missile attacks on US forces, according to CENTCOM. Meanwhile, the Islamic Revolutionary Guard Corps targeted US bases in Kuwait and Jordan following Washington's strikes on Iran, Al Jazeera, a Middle East broadcaster, reported, citing the IRGC.The front-month US West Texas Intermediate was down 1.1% at $83.55 a barrel, while global benchmark North Sea Brent declined 1.9% to $89.03 a barrel.

Dow JonesNasdaq CompositeS&P 500$AAPL$AMZN$MSFT$SMH
Japan

US Equity Futures Rise Pre-Bell Amid Latest Big Tech Earnings, Fed Rate Decision

US equity futures were higher pre-bell Thursday as traders took note of the Federal Reserve's decision to leave interest rates unchanged, as well as the latest round of earnings from major tech players Microsoft (MSFT) and Meta Platforms (META).Dow Jones Industrial Average futures were 0.4% higher, S&P 500 futures were up 0.6%, and Nasdaq futures were 1.4% higher.The Fed held its policy rate steady in a divided decision, as three officials called for policy tightening. The Federal Open Market Committee maintained the target range for the federal funds rate at 3.50% to 3.75%, marking its fifth consecutive pause. The committee reiterated its pledge to "deliver price stability" as inflation remained above the 2% target amid supply shocks.Late Wednesday, Microsoft reported higher fiscal Q4 adjusted earnings and revenue, while Meta posted a decline in earnings and higher revenue for Q2.Apple (AAPL) is expected to report its fiscal Q3 earnings after the market closes. Analysts polled by FactSet expect earnings of $1.89 per share on revenue of $109.04 billion.Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.2% at $87.06 per barrel and US West Texas Intermediate crude 1.2% lower at $83.41 per barrel.The June core personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, scheduled for release at 8:30 am ET, is expected to increase 0.2%, compared with the prior month's gain of 0.3%, according to estimates compiled by Bloomberg.Initial jobless claims are projected to have increased to 200,000 in the week ended July 25 from 187,000 in the previous week. The advance estimate for Q2 GDP is seen coming in at 2.0%, down from 2.1% in the previous quarter.

Dow JonesNasdaq CompositeS&P 500$AAPL$META$MSFT