Overview of ASX Activities and Key Market Developments – August 1
Welcome to our coverage of the Australian Stock Exchange (ASX) for today, August 1. We are trialing this exciting new format, which will include numerous pre-market posts followed by periodic updates throughout the trading day, concluding around 3:00 PM AEST. Please refresh the page manually for the latest updates and provide feedback on enhancing our service.
Trump Tariffs Impact Multiple Nations
At 9:05 AM, significant volatility in tariff headlines was noted as the August 1 deadline approached. Here are the highlights:
- The Trump administration is dispatching letters to countries that have not secured trade agreements.
- Mexico received a 90-day extension to facilitate further discussions on US border issues.
- India faces potential surprise tariffs of 25%, though it remains focused on maintaining dialogue and increasing its purchases from the US.
- A trade deal has been established with South Korea, featuring a 15% tariff on imports and plans for substantial Korean investments in the US.
Amazon Shares Decline Post Q2 Results
At 8:56 AM, Amazon’s Q2 earnings report revealed strong results but disappointing guidance for Q3, leading to a 6.6% drop in its stock during extended trading hours. Here are the critical Q2 figures:
- Revenue increased by 13% YoY to $167.7 billion, surpassing the $162.15 billion estimate.
- Earnings per share (EPS) rose to $1.68, exceeding the anticipated $1.33.
- Operating income reached $19.2 billion, above the expected $16.77 billion.
However, AWS (Amazon Web Services) net sales grew by 17.5% YoY to $30.87 billion, with its margin declining from 39.5% to 32.9%. For Q3, Amazon forecasted sales of $174-179.5 billion and operating income between $15.5-20.5 billion, with some comments from management underlining ongoing demand for services and the impact of stock-based compensation on margin results.
Apple Exceeds Earnings Expectations
At 8:53 AM, Apple announced its Q3 earnings, which surpassed analyst predictions, resulting in a 2.0% increase in its stock price. Key metrics include:
- Revenue climbed 10% YoY to $94.04 billion, beating the estimate of $89.53 billion.
- EPS increased by 12% to $1.57, ahead of the $1.43 forecast.
- Revenue from Greater China rose to $15.37 billion, marginally exceeding expectations.
Segment-specific results showed:
- iPhone sales grew by 13% to $44.58 billion.
- Mac revenue was up 15% to $8.05 billion.
- iPad sales fell by 8% to $6.58 billion.
- Services saw a notable 13% rise to $27.42 billion.
Management identified AI as a transformative technology and highlighted double-digit growth across key product lines and geographic areas.
S&P 500 Experiences Reversal After Strong Start
At 8:45 AM, the S&P 500 index faced a downturn despite an earlier 1.01% gain, ultimately closing down 0.37%. Significant declines were reported in sectors such as Healthcare (-2.7%), Real Estate (-1.7%), and Materials (-0.9%). Notably, Microsoft, which had surged by 8.1%, concluded the session with a 3.9% gain.
ASX Performance Overview
At 8:30 AM, ASX 200 futures were down by 64 points (-0.74%) following a weak performance from Wall Street, where the S&P 500 reversed a 1.0% rally. For newcomers to our blog, we encourage you to catch up quickly via today’s Morning Wrap.
Stay tuned for more updates as the trading day progresses!
