Apple reported earning after the bell beating estimates:
EPS: $1.52 per share vs. $1.43 expected
Revenue: $94.84 billion vs. $92.96 billion expected
Gross margin: 44.3% vs. 44.1% expected
According to CNBC, these are the individual product line breakdowns:
iPhone revenue: $51.33 billion vs. $48.84 billion expected
Mac revenue: $7.17 billion vs. $7.80 billion expected
iPad revenue: $6.67 billion vs. $6.69 billion expected
Other Products revenue: $8.76 billion vs. $8.43 billion expected
Services revenue: $20.91 billion vs. $20.97 billion expected
When I look at it from a YoY perspective, i’m seeing something a bit different:
Revenue on a Quarterly YoY is down (2.51%). Gross profits down (1.27%).
Net Income Quarterly YoY down (3.40%).
Maybe I’m not looking at this the right way? I look at the year over year vs what they share on the big news channels. From my perspective, Apple is like every other company, revenue and earnings are slowing.
Yield Curve
Treasury’s have seen a sizeable amount of inflows YTD. iShares 20+year Treasury Bond ETF (TLT) has seen inflows of $7.18 billion. TLT closed 2022 out at $98.56 and closed yesterday at $105.24.
Yield Curve has moved up due to the rush into long duration bonds. Close yesterday at -0.38%. Better then when Silcon Valley Bank collapse at -1.07%. But we may see another bank bite the dust this weekend.
PacWest Bancorp is looking for a buyer.
Conclusion
Even though it looks like Apple saved the day, banks on a market to market basis are insolvent as a hole. That’s not a problem that Chairman Powell solves over night by lowering interest rates. The Fed has done the damage and I wonder if that is intention.
Paid Subscribers
Keep reading with a 7-day free trial
Subscribe to QQQTrades.Club to keep reading this post and get 7 days of free access to the full post archives.