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News of the day for July 29, 2024
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It’s another busy weekimmediately Federal Reserve decision on interest rates and a lot of big tech revenues testing the recent rotation from the sector. Apple (AAPL) is reportedly not initially including its AI system in the September software update; McDonald’s (MCD) misses second quarter estimates of declining pedestrian traffic; Bitcoin (BTCUSD) rises to $70,000 after former President Donald Trump expressed support for cryptocurrencies during a weekend conference; Disney(DIS) has another hit movie as “Deadpool & Wolverine” records biggest domestic opening this year; and Philips (PHG) is rising in premarket trading after a second-quarter earnings decline. US stock futures gain after stocks closed sharply higher Friday on tech sector recovery, strong earnings results and encouraging inflation data. Here’s what investors need to know today.
1. Apple’s software overhaul reportedly won’t include an AI system at first
Apple (AAPL), which is expected to report in the third quarter win Thursdayis reportedly being released artificial intelligence (AI) features on its devices just a few weeks after the iPhone and iPad software revisions scheduled for September. According to Bloomberg, Apple Intelligence, the company’s AI system, will roll out in October after the initial releases of iOS 18 and iPadOS 18. The later timeframe will allow Apple to fix bugs, the report said, although software developers will have access as early as this week to Apple Intelligence via the beta versions of iOS 18.1 and iPadOS 18.1. Apple shares are little changed in premarket trading.
2. McDonald’s misses in the second quarter due to declining sales in the US
McDonald’s (MCD) reported lower than predicted second-quarter results, with value-conscious consumers making fewer visits to the fast-food chain, while US consumers increasingly feel “knocked outRevenue during the quarter was broadly flat at $6.49 billion, below the $6.63 billion estimate of analysts polled by Visible Alpha, while earnings per share (EPS) of $2.80 fell short of the $3.10 projection. U.S. sales fell 0.7% year over year, “driven by negative comparable guest counts,” McDonald’s said, offsetting gains from some price increases. The war in the Middle East and the decline in sales in China also weighed on total turnover during that period. However, McDonald’s shares are up less than 1% in premarket trading.
3. Bitcoin Jumps Toward $70,000 While Trump Supports Crypto
Bitcoin (BTCUSD) rises 2% towards the $70,000 level after Donald Trump pledged his support for the token and crypto at the Bitcoin 2024 conference in Nashville last weekend. The vote of confidence from Trump, the conference’s keynote speaker, marks a turnaround for the former president, who once labeled the asset class as unregulated assets that facilitate illegal activities. The token is still below its all-time high of $73,000 in March following Bitcoin’s regulatory approval. exchange traded funds (ETFs).). MicroStrategy (MSTR), one of the world’s largest holders of bitcoin, and cryptocurrency exchange Coinbase (MINT) are both up about 4% in premarket trading.
4. Disney’s ‘Deadpool & Wolverine’ has the biggest opening weekend of 2024
“Deadpool & Wolverine” earned $205 million in the US this weekend – the biggest domestic opening this year – according to reports citing Comscore data, and the latest bonus for Disney (DIS) following the recent success of “Inside Out 2.” Marvel Studios’ “Deadpool & Wolverine” grossed about $438.3 million worldwide, the highest-grossing global opening for an R-rated film, Disney said, beating 2016’s “Deadpool” for that record. Recently, Inside Out 2 from Disney-owned Pixar Animation Studios was released earned more than $1 billion at the global box office, becoming the first film to reach that mark since “Barbie” in 2023. Disney shares are up nearly 1% in premarket trading.
5. Philips benefits from an increase in profit due to rising order intakes
Royal Philips (PHG) American certificates (ADRs) rose 9% in premarket trading after the Dutch conglomerate posted higher-than-expected second-quarter earnings thanks to higher order intakes and insurance payouts for its sleep apnea devices. Philips said net profit in the period was 451 million euros ($488.7 million), better than Wall Street estimates. The group’s comparable sales rose 2% to 4.5 billion euros ($4.88 billion), boosted by growth in North America and Western Europe, while sales in China fell. In April, Philips agreed to one $1.1 billion settlement to pay personal injury cases in the US related to the recall of some of its Respironics devices, which treat sleep apnea.
Read the original article Investopedia.