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Stocks bounce as Apple earnings near, oil falls
Reuters • • business
Key Points:
- Asian share markets rose on Monday as investors awaited Apple’s earnings report, hoping it would ease concerns about high AI-related cash burn and corporate default risks.
- Brent crude oil prices dropped 3.3% to $109.70 a barrel amid ongoing mediation talks between Iran and Qatar, despite a prior 13.6% increase in October and continued tanker attacks in the Gulf.
- Analysts expect Apple to report earnings per share of $2 on $113 billion revenue, with insights on iPhone 18 sales potentially influencing market sentiment; this optimism lifted S&P 500 and Nasdaq futures.
- Despite strong earnings growth, Goldman Sachs noted that acceleration is slowing, with AI capital expenditure growth peaking, while political uncertainties from upcoming US midterm elections add to market unease.
- Safe-haven bonds gained after October’s equity selloff, with futures pricing in a 72% chance of a Federal Reserve rate hike in December; key economic data releases this week include US manufacturing and payroll reports.
