1. Elon Musk vs. the SEC: Tesla CEO Elon Musk is in trouble again because of something he said on Twitter.
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.
Investors are looking for Powell to deliver a solidly dovish message, following his remarks two weeks ago that the Fed would act as appropriate to sustain the economic expansion in the United States.
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).
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.
6. Coming this week:
Tuesday — Home Depot (HD), Macy’s (M), Papa John’s (PZZA) and JM Smucker (SJM) earnings, Powell appears before the Senate Banking Committee
Wednesday — Lowe’s (LOW), Best Buy (BBY) and Campbell Soup earnings, Powell appears before House Financial Services Committee
Thursday — GDP report, JCPenney (JCP), PG&E (PCG), Gap (GPS), Nordstrom (JWN) and Anheuser-Busch (BUD) earnings
Friday — Marriott (MAR) earnings