Oct 28, 2018

Facebook and Apple wrap up big tech earnings this week

A stock market graph with an iPhone.Photo: Jaap Arriens/NurPhoto via Getty Images

More than 100 S&P 500 companies will report quarterly results this week, but Apple and Facebook are the headliners.

Why it matters: Tech companies' good results have not been good enough for investors, as we saw with Alphabet and Amazon this week. Apple and Facebook could further drag tech sentiment down, or turn the tide.

What to watch

Apple, the world's most valuable public company, is expected to report strong results thanks to a boost in the "average selling price" metric from pricier phones, not necessarily more iPhones sold.

  • Sales of the $750 iPhone XR won't be included in these results, and only 10 days of the more expensive iPhone XS and XS Max sales will be included, per MarketWatch.
  • Expect CEO Tim Cook to field questions about Apple's upcoming holiday quarter, its growing services business, and U.S.-China relations, though Apple's products were spared from the latest round of tariffs.

Facebook gave dismal guidance for the rest of 2018 back in July, so expectations for this quarter are low.

  • Since the Cambridge Analytica scandal, each quarterly report is make-or-break for Facebook. The critical question: how much profitability is being squeezed by the company’s attempts to recover from its many controversies?

What else to watch: Alibaba will also report, along with General Motors, General Electric and Starbucks. Plus the big oil companies will release quarterly results.

Go deeper

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,498,849 — Total deaths: 346,306 — Total recoveries — 2,233,180Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,662,768 — Total deaths: 98,223 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 36 mins ago - Politics & Policy

LATAM Airlines files for U.S. chapter 11 bankruptcy

A LATAM air attendant aboard one of the company's planes in March. Photo: Kike Calvo/Universal Images Group via Getty Images

LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the United States, Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.

Why it matters: Latam is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.