Apple Inc. shares fell more than 9% on Friday following the company's third-quarter earnings report, which, despite beating analyst estimates, disappointed investors with a weaker-than-expected sales outlook. The Cupertino-based tech giant reported revenue of $109.42 billion, surpassing expectations of $108.65 billion, and earnings of $2.02 per share against estimates of $1.89. However, Apple projected fourth-quarter sales between $111.688 billion and $113.737 billion, below the consensus estimate of $114.840 billion, according to Benzinga.
Key Details
In contrast, the broader U.S. stock market showed gains, with the Dow Jones Industrial Average rising approximately 200 points, or 0.38%, to 52,406.69. The S&P 500 and Nasdaq also advanced, gaining 0.22% and 0.25%, respectively. Strong earnings from other tech companies, particularly Amazon, which surged over 12% after reporting robust cloud-computing sales, contributed to this positive market sentiment, as noted by Livemint.
Background
Meanwhile, oil prices rose by 1% to $84.39 per barrel, benefiting from ongoing geopolitical tensions in the Middle East. Major oil companies like ExxonMobil and Chevron reported substantial increases in profits, with ExxonMobil's net profit jumping 105% year-on-year to $14.53 billion, and Chevron's soaring 385% to $12.07 billion, highlighting the favorable environment for oil producers amid elevated crude prices.
The decline in Apple shares may negatively affect the technology sector, particularly impacting indices like the Nasdaq, which has already seen a significant drop in July. Conversely, rising oil prices could bolster the performance of energy stocks, benefiting companies like ExxonMobil and Chevron.
Investors will watch for upcoming earnings reports from major tech firms next week, which could further influence market sentiment.