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What’s happening: Shares of Apple gained in after-hours trading on Thursday, following the company’s release of second-quarter results.
What happened: Apple raised its dividend and announced a big buyback program, after reporting better-than-expected quarterly results.
While the company reported record revenues for one segment, it posted a decline in sales for some of its main product categories.
How were the results: The Cupertino, California-based company reported a sequential decline in both sales and earnings for the fiscal second quarter.
Why it matters: The company managed to top market expectations for the fiscal second quarter due to upbeat iPhone sales.
iPhone revenues grew 1.5% to $51.33 billion, higher than analyst projections of a 3.3% decline. Apple’s Services revenues grew 5.5% to a record of $20.91 billion. However, Mac revenues tumbled more than 31% to $7.17 billion and iPad revenues contracted by 12.8%.
CEO Tim Cook said during the earnings call that Apple’s installed base of active devices had reached an all-time high.
Apple announced an incremental buyback authorisation of $90 billion and hiked its dividend by 4% to 24 cents per share.
“Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter,” said CFO Luca Maestri.
How shares responded: Apple’s shares gained 2.5% to $169.92 in the after-hours trading session on Thursday, following the release of quarterly results. The stock had declined by 1% during the regular trading session ahead of the release.
What to watch: Markets will keep an eye on Apple’s growth in India, where the company is seeing double-digit year-over-year growth.
Traders will also monitor the macroeconomic environment as well as the strength in the US dollar, with forex being a significant headwind in the latest quarter.
Context: The CAD/USD forex pair gained on Thursday following the release of the Ivey PMI.
Details: Canada’s Ivey PMI, which is a major indicator of business activity, remained in the expansion zone for the fourth month in a row. Although the index eased slightly to 56.8 in April, from the previous month’s reading of 58.2, it still came in ahead of market expectations of 54.8.
Forex traders also responded to the Federal Reserve’s rate hike announcement of 25 basis points on Wednesday, although there is lack of clarity around whether the central bank will now pause its monetary tightening. Both Canada and the US are scheduled to report their jobs data for April today.
Some weakness in the US dollar lent support to the CAD/USD forex pair on Thursday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, settled at 101.40.
The Canadian currency moved higher despite weakness in the price of crude oil, one of Canada’s major exports. WTI crude oil for June delivery slipped 4 cents to settle at $68.56 per barrel.
The CAD/USD forex pair settled higher at 1.3539 on Thursday.
What are expectations: Traders await the release of data on unemployment rate and jobs from Canada today. The unemployment rate, which was at 5% for a fourth straight month in March, is expected to increase to 5.2% in April. The country’s economy is projected to have added 25,000 jobs in April, following 34,700 adds in March.
Other Markets: European indices closed lower on Thursday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 1.10%, 0.51%, 0.85% and 0.47%, respectively.
The US denied claims made by Russia of masterminding a drone attack to assassinate President Vladimir Putin. The safe-haven US dollar index fell this morning.
China’s Caixin general composite PMI fell to a three-month low of 53.6 in April, versus March’s nine-month high of 54.5, which exerted pressure on the CNY/USD forex pair.
Australia’s value of new home loans for owner-occupied homes grew 5.5% to A$16 billion in March, sending the AUD/USD pair higher in forex trading this morning.
Colombia’s producer prices rose 3.86% year-over-year in April, slowing from 7.36% in the prior month. The news lent support to the COP/USD forex pair.
Indonesia’s economy shrank by 0.92% in the first quarter of the year. This being the first contraction since the first quarter of 2022 sent the IDR/USD pair lower in forex trading this morning.
Germany’s factory orders and construction PMI, France’s Industrial production, payroll employment, new passenger car sales and construction PMI, Spain’s industrial production and consumer confidence indicator, Eurozone’s construction PMI and retail trade, Italy’s construction PMI and retail sales, UK’s construction PMI, India’s foreign exchange reserves, value of loans and value of deposits, as well as US non-farm payrolls, unemployment rate, Baker Hughes crude oil rigs and consumer credit.
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