Apple's healthier core
AAPL•Apple reports earnings later Monday after a steep October selloff in US technology stocks. Analysts expect fiscal fourth-quarter revenue of $113 billion, up nearly 11%, and net profit of $29 billion, up about 6%.
1. Tech stocks rebound
A sharp selloff on Friday, compounded by Intel's earnings miss and concerns about Amazon's cash burn, capped a brutal October for US technology and AI-linked stocks. The Nasdaq had its worst day since June, while the Nasdaq 100 recorded its worst month in more than a year. Nasdaq futures rose just under 1% early Monday.
2. Apple earnings in focus
Apple reports earnings later Monday, with attention on its core offerings, margins and the effects of rising chip input prices. Analysts expect fiscal fourth-quarter revenue to rise nearly 11% to $113 billion and net profit to increase about 6% to $29 billion. iPhone sales are projected to climb about 15% to $56.5 billion, slowing from roughly 22% growth in the prior three months. The quarter includes just nine days of sales of the iPhone 18 Pro models; Apple's first foldable, the iPhone Duo, launched on October 23, making holiday-quarter projections a focus.
3. Other market factors
Concerns about the cost of capital, high-risk credit markets, data-center pushback and political uncertainty contributed to the recent technology retreat. Oil slipped to about $109 a barrel early Monday as mediation efforts continued. The week's events also include the US employment report and a likely Bank of England rate increase.
