The tech world is holding its collective breath as Apple gets set to unveil its latest earnings report card on Thursday evening. But the iconic iPhone maker could find itself playing defense on one particularly sore spot – China sales.
All eyes will be glued to how Apple’s greater China region performed amid rolling Covid lockdowns and simmering geopolitical tensions. It’s a critical market that accounts for nearly 20% of Apple’s total revenue.
The earnings release comes just a day after the Federal Reserve took a breather from its relentless rate hiking campaign to battle stubborn inflation. The US central bank stood pat on rates but stopped short of signaling it was done tightening monetary policy.
Fed Chair Jerome Powell struck a hawkish tone, stating the resilient economy may still need “additional policy firming” down the road. Those comments threw a bucketful of cold water on the market rally that erupted after the rate pause announcement.
Traders will also be closely monitoring other high-profile names reporting results, including crypto exchange Coinbase, buy-now-pay-later fintech Block, sports betting leader DraftKings, and connected fitness firm Peloton. Healthcare giants Novo Nordisk and Moderna are also on deck.
Meanwhile, the chatter on Wall Street sees Carvana, NIO, and Qualcomm generating heavy trading buzz amid a crushed earnings slate. Carvana has been a focus after getting a $600 million capital lifeline, while NIO’s EV deliveries disappointed and Qualcomm issued an upbeat outlook.
It’s sure to be a frenzied session as investors attempt to decipher the flood of corporate performance data for clues on the economic trajectory. Buckle up!
