Amazon +15% vs Apple -7% — split Big Tech earnings

Today's Market

On the 31st (local time), Amazon's surge offset Apple's slide as the Nasdaq +1.0%, S&P 500 +0.7% and Dow +0.5% closed higher. Mega-cap earnings diverged name by name.

• Amazon (AMZN) +15.3% — an AWS cloud-revenue surge eased worries over AI spending

• Apple (AAPL) -7.3% — a disappointing earnings outlook

• Oil +3.8% (Hormuz tension) and the 10-year Treasury yield +8.2bp both rose; VIX 15.99 (-6.4%) stayed calm

Market Data

S&P 500

7,489.72

▲0.70%

NASDAQ

25,373.85

▲1.00%

DOW

52,485.03

▲0.53%

VIX

15.99

▼6.44%

Sector Heat Map

SPY benchmark + 11 GICS sectors · 1-day

S&P 500 SPY +0.72%	Technology XLK −0.22%	Comm. Svcs XLC +1.56%	Cons. Discr. XLY +3.29%
Cons. Staples XLP −0.49%	Energy XLE +1.00%	Financials XLF −0.11%	Health Care XLV −0.59%
Industrials XLI +0.81%	Materials XLB −2.34%	Real Estate XLRE −0.51%	Utilities XLU −0.69%

In Focus

Apple's slide — the hardware shadow 🍎

iPhone held up, but guidance, services and China dragged

• A revenue outlook below Street targets, with supply-chain snags flagged

• Weak services and China revenue — the growth engine wobbled despite solid iPhone sales

• Cook's last earnings as CEO added a leadership-transition overhang

Yields and oil rise together, inflation on watch 📈

Oil-driven inflation expectations pressured Treasury yields

• Firmer oil stoked inflation expectations, spilling into a bond sell-off

• The 30-year neared a 2007 high — a hawkish Fed lean added to it

• A warning gained traction: "if the 10-year tops 5%, the AI bubble bursts"

Inside the Ticker

Amazon surge — AWS growth acceleration partly eases AI-spending worries

Amazon AMZN | $271.58 | 1D +15.3% 1W +17.0% 1M +12.4% 3M +2.5%

What happened today

A re-rating driven by an AWS revenue surge

• Amazon (AMZN) +15.3% — AWS cloud-revenue growth topped analyst estimates, and Q2 total revenue beat too

• The cloud surge partly eased doubts about "AI mega-investment payback"; Amazon's strength offset Apple's weakness and lifted the Nasdaq

Why it matters — AWS growth, AI capex, watchpoints

What the growth confirmation means, and the risk

• AWS growth reconfirmed eases AI-capex worries — but this is a sentiment shift, not proof cost growth has stopped; watch revenue-growth durability and capex flow

• Watch profitability and leverage — AI sophistication may raise fixed costs (servers, custom chips, data centers), so coming quarters' operating margins are the key gauge

This Week

ALL TIMES EASTERN (ET)

• Next week: earnings + jobs data rush — Palantir, AMD, payrolls

• Mon 8/3 PLTR earnings | EPS est $0.35

• Tue 8/4 AMD earnings | EPS est $1.61

• Tue 8/4 CAT earnings | EPS est $6.20

• Tue 8/4 MRK earnings | EPS est $-0.26

• Tue 8/4 MCD earnings | EPS est $3.32

• Tue 8/4 JOLTs (Job Openings)

• Tue 8/4 Trade Balance

• Wed 8/5 ADP Employment

For informational purposes only. Not investment advice. All investment decisions are your own responsibility.

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