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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.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

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.

Markets Now newsletter: Get a global markets snapshot in your inbox every afternoon. Sign up now!

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

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 589527

Reported Deaths: 7333
CountyCasesDeaths
Hennepin1221311726
Ramsey51028871
Dakota45667448
Anoka41421437
Washington26724281
Stearns22139221
St. Louis17682302
Scott17201124
Wright15943139
Olmsted1319098
Sherburne1160286
Carver1044945
Clay812792
Rice8014106
Blue Earth746141
Crow Wing660988
Kandiyohi652083
Chisago592551
Otter Tail572978
Benton565997
Goodhue475772
Douglas464674
Mower464032
Winona452950
Itasca432254
McLeod421658
Isanti417364
Morrison417360
Nobles407248
Beltrami392458
Steele384915
Polk382468
Becker378850
Lyon359850
Carlton344153
Freeborn341129
Pine326722
Nicollet323843
Brown304640
Mille Lacs302452
Le Sueur289222
Todd280632
Cass269628
Meeker254340
Waseca236522
Martin229831
Roseau207919
Wabasha20483
Hubbard187141
Dodge18373
Renville178943
Redwood172936
Houston171515
Cottonwood164321
Fillmore155510
Wadena155122
Pennington153619
Chippewa151838
Faribault151319
Kanabec143424
Sibley142510
Aitkin134236
Watonwan13219
Rock128019
Jackson121711
Pipestone115126
Yellow Medicine113820
Pope10956
Murray10609
Swift104918
Stevens90211
Marshall88017
Clearwater86416
Koochiching81715
Lake80819
Wilkin80712
Lac qui Parle75022
Big Stone5984
Lincoln5773
Grant5678
Mahnomen5459
Norman5399
Unassigned48793
Kittson48522
Red Lake3957
Traverse3685
Lake of the Woods3223
Cook1610

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 366197

Reported Deaths: 5929
CountyCasesDeaths
Polk57488623
Linn20814334
Scott19960240
Black Hawk15785308
Woodbury15121228
Johnson1445783
Dubuque13355209
Dallas1116198
Pottawattamie11091168
Story1059248
Warren575888
Clinton554393
Cerro Gordo538089
Sioux513874
Webster512193
Marshall482175
Muscatine477499
Des Moines454366
Wapello4297122
Buena Vista424540
Jasper418672
Plymouth400680
Lee375055
Marion361775
Jones298157
Henry291137
Carroll285452
Bremer283960
Crawford265840
Boone263934
Benton256055
Washington253950
Dickinson247843
Mahaska229951
Jackson221242
Clay215325
Kossuth215264
Delaware209240
Tama209271
Winneshiek196934
Page192622
Buchanan190731
Cedar189423
Hardin184943
Fayette184841
Wright184336
Hamilton179449
Harrison179373
Clayton169256
Butler164634
Mills161722
Madison161519
Floyd160342
Cherokee158738
Lyon157741
Poweshiek154733
Allamakee151151
Iowa148324
Hancock147634
Winnebago141731
Calhoun138113
Cass137954
Grundy136233
Emmet134040
Jefferson132435
Shelby130737
Sac130119
Union128133
Appanoose128049
Louisa127849
Mitchell126042
Chickasaw123915
Guthrie121030
Franklin119321
Humboldt118826
Palo Alto112523
Howard104522
Montgomery103338
Clarke99924
Unassigned9770
Keokuk95631
Monroe95129
Ida90334
Adair86432
Pocahontas85322
Davis82824
Monona82830
Osceola78516
Greene77610
Lucas77123
Worth7438
Taylor65712
Fremont6229
Decatur6089
Van Buren55618
Ringgold55524
Wayne53723
Audubon50810
Adams3384
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