1. Paris Air Show: All eyes are on Boeing as the Paris Air Show kicks off Monday.
Amazon (AMZN) on Thursday reported a profit of $2.6 billion for the three months ending in June — up slightly from the year prior, but well below its record of $3.6 billion set in the first three months of this year. That ends Amazon (AMZN)’s streak of four consecutive quarters of record profits.
The weaker profit comes as Amazon (AMZN) is investing heavily in expediting deliveries. The company previously announced that it would spend $800 million during the second quarter to make free one-day shipping standard for its Prime customers, effectively halving the usual shipping window. Amazon (AMZN) stock was down 1.4% premarket.
The show is typically an opportunity for Boeing (BA) and Airbus (EADSF) to announce orders for hundreds of aircraft. That will be harder this year for the US jetmaker, which has halted deliveries of its 737 Max following two deadly crashes.
Alphabet reported $38.9 billion in revenue for the three months ending in June, above analysts’ $38.2 billion projection. That number was up 19% from the same quarter a year earlier. The company also authorized a new $25 billion share buyback. Advertising revenue for Google, which includes YouTube, grew 14% from the same period last year to $32.6 billion.
Shares in Google were up over 8% premarket.
Alphabet’s previous quarter disappointed. The company has developed a number of new business divisions, including cloud computing and hardware. But as its core advertising business matures, investors have begun to wonder whether those new areas of business can become as big as advertising.
The Japanese tech company said it intends to invest $38 billion of its own money into the fund.
Vision Fund 2 will plow money into tech startups driven by artificial intelligence. SoftBank (SFBTF) founder Masayoshi Son has repeatedly said that he wants to have a stake in companies leading the AI revolution.
Son launched his first huge tech fund in May 2017, with nearly half the money coming from the Saudi government. That fund has made big investments in dozens of startups such as WeWork and Slack (WORK), and is the largest shareholder in Uber (UBER).
3. Markets rise: Global stocks are starting off the week on a positive note.
GDP data for the second quarter will be released at 8:30 a.m. ET. The consensus estimate is for growth of 1.8%. Boeing’s (BA) 737 Max production slowdown could be a factor in the sluggish performance.
4. Coming this week:
Monday: Paris Air Show, US Treasury foreign ownership report
Tuesday: Adobe earnings, US housing starts, US Senate hearing on tariffs
Wednesday: Fed decision and press conference, earnings from Oracle (ORCL) and Barnes & Noble (BKS)
Thursday: US leading indicators, Bank of England rate decision, earnings from Kroger (KR) and Red Hat (RHT)
Friday: US existing home sales, Markit flash US manufacturing PMI