Trackers and Earnings Update

US Curves, Apple and Amazon

Alright subscribers here is what transpired after the close, Apple and Amazon both reported:

Per Zerohedge:

• EPS $1.26, up from $1.20 a year ago, and beating the estimate of $1.20

• Revenue $81.80 billion, down 1.4% y/y, but also beating estimates of $81.55 billion.

• Gross margin $36.41 billion, +1.5% y/y, beating estimates of $36.03 billion

• Cash and cash equivalents $28.41 billion, +3.3% y/y, beating estimates of $24 billion

However we noticed inventories up a massive 49% in 3 quarters and we all know inventory is a profit killer:

Apple is down in after hours trading per MarketWatch:

As far as Amazon, they are faring much better:

From Zerohedge:

• Q2 EPS 65c, up sharply from a 20c loss YoY, and smashing estimates of $0.35

• Q2 Net sales $134.38 billion, +11% y/y, beating estimates of $131.63 billion

  • Amazon Web Services net sales excluding F/X +12% vs. +33% y/y, beating estimates +9.48

• Operating income $7.68 billion vs. $3.32 billion y/y, smashing estimates of $4.72 billion

• Fulfillment expense $21.31 billion, +4.7% y/y, missing estimates of $19.01 billion

• Seller unit mix 60% vs. 57% y/y, beating estimates of 58.3%

• Sees operating income between $5.5 billion and $8.5 billion, compared with $2.5 billion in third quarter 2022. and also beating consensus estimates of $5.41 billion.

This was the 2nd consecutive quarter of increased profit margins rising to 5.7%, up from 3.7%, most likely on the heels of a lower employee base helping this out.

Ok with that let’s take a look at the overall settlement sheet from today:

The ultra long end of the US bond market was hammered today and the weakest of the our bunch, while Crude was a standout. The Nasdaq posting its 3rd consecutive daily decline. The bigger story continues to be the US yield curves and here is how that complex settled out for the day: