Good Evening! On Thursday, stock prices saw a significant increase as investors speculated that the Federal Reserve was nearing the end of its campaign to raise interest rates while also evaluating a new set of corporate earnings.
There were solid gains for all three indexes, with the S&P 500 leading the way by 1.89%, the Nasdaq Composite following closely by 1.78%, and the Dow Jones increasing by 1.70%.
Apple (AAPL) released its earnings report, surpassing forecasts and achieving a new record for sales in its expanding services sector. However, the data indicated a fall in overall revenues for the fourth consecutive quarter.
- Revenue: $89.5 Billion vs. $89.34 billion expected
- iPhone Revenue: $43.8 Billion vs. $43.73 billion expected
- Services Revenue: $22.3 Billion vs. $21.36 billion expected
- Mac Revenue: $7.6 Billion vs. $8.76 billion expected
- Earnings Per Share: $1.46 vs. $1.39 Expected
What helped? CEO Tim Cook continues to find success in the services sector. The section saw a growth rate in the range of double digits, making it the only division within the corporation to achieve substantial expansion. Apple’s cutting-edge technology has propelled the business to a trillion-dollar valuation. However, its growth as a supplier of services and its foray into music, gaming, and entertainment are seen as the main reasons for optimism about its future.
What didn’t help… was that there was a decrease of 2.5% in sales from China. On top of that, Tim Cook said that the company’s most premium smartphone models, the iPhone 15 Pro and Pro Max, are experiencing limitations in availability due to supply constraints.
WINDS OF CHANGE
Orsted, the leading developer of offshore wind farms globally, has announced the cancellation of two significant projects in New Jersey. This decision would significantly hinder the sustainable energy goals of the Biden administration. The Danish business said that it had to write down $4 billion owing to the operation’s funding being unsustainable as a result of increased interest rates and supply chain delays.
Why is this only happening in the U.S., though? According to Orsted CEO Mads Nipper, the renewable energy sector has had challenges in Europe, but its difficulties are more severe in the U.S. Additionally, there is a lot of public opposition and insufficient subsidies in the sector, which exacerbates the current financial difficulties.
For example… Orsted issued a warning in August that the NJ tax credit was insufficient to support the projects due to rising costs. Also, Republican legislators and residents of the Jersey Shore contested the projects in a legal setting, resulting in expensive setbacks.
However, there is wind at the end of the tunnel! Yesterday, the federal government approved the Coastal Virginia Offshore Wind Project, which is set to become the biggest offshore wind farm in the U.S. So, there is still a possibility that offshore wind output might see a significant resurgence.