Tech Jolts US Futures, Dollar Stronger on Fed Hold: Markets Wrap
Microsoft Corp reported better-than-expected growth in its cloud business, while Meta Platforms Inc topped sales forecasts, sending shares in the two tech giants and US equity futures higher.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
China's independent oil companies boost investments in Iraq
Chinese independent oil companies are intensifying their activities in Iraq, aiming to double their production to 500,000 barrels per day (bpd) by 2030, according to a Reuters report. This strategic move comes as some global majors have scaled back from these markets, which are traditionally dominated by China's state-run entities. The smaller Chinese producers, led by industry veterans, are drawn to Iraq by more attractive contract arrangements and the potential to leverage lower costs and faster project development. Geo-Jade Petroleum, United Energy Group, Zhongman Petroleum and Natural Gas Group, and Anton Oilfield Services Group have secured half of Iraq's exploration licences in recent rounds. Currently, China's CNPC is a major player, responsible for more than half of Iraq's production at large oilfields such as Haifaya, Rumaila and West Qurna 1. These companies are recognised for their rapid project execution, which appeals to the Iraqi Government. Their increasing presence signifies a shift for Iraq, which is under pressure to expedite energy projects and has previously resisted increasing Chinese influence over its oilfields. Furthermore, the agility and risk tolerance of these smaller companies allow them to develop oilfields in two to three years, significantly faster than Western counterparts. Iraq's improved political stability and investment climate are cited by executives as key factors in attracting both Chinese and Western companies. The country is seeking to significantly boost its oil output, targeting more than six million barrels per day by 2029. Iraq's shift from fixed-fee agreements to profit-sharing contracts has been instrumental in attracting Chinese independents. Geo-Jade Petroleum CEO Dai Xiaoping was quoted as saying: 'Chinese independents have much lower management costs compared to Western firms and are also more competitive versus Chinese state-run players.' Despite concerns over transparency and technical standards, the cost-effective approach of Chinese companies remains attractive to Iraq. While some Western companies are making a comeback, with TotalEnergies and bp planning significant investments, the trend of Chinese operators' expansion in Iraq's oil sector is clear. In May, a consortium spearheaded by Geo-Jade decided to fund the South Basra endeavour, encompassing the enhancement of the Tuba field in Iraq's southern region to a capacity of 100,000bpd. This included the construction of a refinery capable of processing 200,000bpd. With an investment pledge of $848m (6.09bn yuan), Geo-Jade is set to rejuvenate production at the predominantly idle field, aiming to achieve production of 40,000bpd by mid-2027. "China's independent oil companies boost investments in Iraq" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Pfizer (NYSE:PFE) Reports Upbeat Q2
Global pharmaceutical company Pfizer (NYSE:PFE) announced better-than-expected revenue in Q2 CY2025, with sales up 10.3% year on year to $14.65 billion. The company expects the full year's revenue to be around $62.5 billion, close to analysts' estimates. Its non-GAAP profit of $0.78 per share was 35.9% above analysts' consensus estimates. Is now the time to buy Pfizer? Find out in our full research report. Pfizer (PFE) Q2 CY2025 Highlights: Revenue: $14.65 billion vs analyst estimates of $13.58 billion (10.3% year-on-year growth, 7.9% beat) Adjusted EPS: $0.78 vs analyst estimates of $0.57 (35.9% beat) The company reconfirmed its revenue guidance for the full year of $62.5 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $3 at the midpoint, a 3.4% increase Operating Margin: 20.8%, down from 22.4% in the same quarter last year Organic Revenue rose 10% year on year (3% in the same quarter last year) Market Capitalization: $133.8 billion Company Overview With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Pfizer's sales grew at a decent 8.2% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Pfizer's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 9.8% over the last two years. Pfizer also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Pfizer's organic revenue averaged 5.2% year-on-year declines. Because this number is better than its two-year revenue growth, we can see that some mixture of divestitures and foreign exchange rates dampened its headline results. This quarter, Pfizer reported year-on-year revenue growth of 10.3%, and its $14.65 billion of revenue exceeded Wall Street's estimates by 7.9%. Looking ahead, sell-side analysts expect revenue to decline by 3.3% over the next 12 months. Although this projection is better than its two-year trend, it's hard to get excited about a company that is struggling with demand. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Pfizer's operating margin has risen over the last 12 months and averaged 29.9% over the last five years. On top of that, its profitability was top-notch for a healthcare business, showing it's an well-run company with an efficient cost structure. Analyzing the trend in its profitability, Pfizer's operating margin of 25.9% for the trailing 12 months may be around the same as five years ago, but it has decreased by 7.3 percentage points over the last two years. This dynamic unfolded because it failed to adjust its fixed costs while demand fell. This quarter, Pfizer generated an operating margin profit margin of 20.8%, down 1.6 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Pfizer's EPS grew at an unimpressive 3.3% compounded annual growth rate over the last five years, lower than its 8.2% annualized revenue growth. However, its operating margin didn't change during this time, telling us that non-fundamental factors such as interest and taxes affected its ultimate earnings. Diving into the nuances of Pfizer's earnings can give us a better understanding of its performance. A five-year view shows Pfizer has diluted its shareholders, growing its share count by 1.5%. This has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Pfizer reported adjusted EPS at $0.78, up from $0.60 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Pfizer's full-year EPS of $3.39 to shrink by 15%. Key Takeaways from Pfizer's Q2 Results We were impressed by how significantly Pfizer blew past analysts' organic revenue expectations this quarter. We were also excited its EPS outperformed Wall Street's estimates by a wide margin. On the other hand, its full-year EPS guidance was in line. Zooming out, we think this was a solid print. The stock traded up 1.9% to $23.99 immediately after reporting. Indeed, Pfizer had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Trump's Fed Pick Could Face Resistance From Colleagues on Rates
(Bloomberg) — President Donald Trump's relentless calls for dramatic reductions in interest rates, along with his ability to make changes to the Federal Reserve's leadership, is drawing more attention to the way monetary policy decisions are made — and the people who make them. PATH Train Service Resumes After Fire at Jersey City Station Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Chicago Curbs Hiring, Travel to Tackle $1 Billion Budget Hole Seeking Relief From Heat and Smog, Cities Follow the Wind A close look at that group — barring additional surprise departures from the Fed — suggests the president probably won't get the outsize rate cuts he wants in 2026. Fed Governor Adriana Kugler announced last week she'll resign on Aug. 8, five months before her term was set to run out. Trump said he expects to name a replacement in the coming days. Whomever he chooses will likely be in the running to lead the US central bank when Jerome Powell's term as chair expires in May, and could set the tone for what the Trump administration wants from monetary policy. But even if the new chair agrees with Trump that borrowing costs should be much lower, changing them will require a majority on the central bank's Federal Open Market Committee. Former Fed officials and staffers say that means arguments must be based on the economy, not politics. 'Whoever is in that role as chair, their job is to build consensus among the other voters,' said Loretta Mester, former president of the Cleveland Fed. 'And it'll have to be a sound, economical rationale.' The importance of building support for a decision was on display last month, when Fed officials voted 9-2 to leave their benchmark rate unchanged. Fed Governors Christopher Waller and Michelle Bowman — both Trump appointees — dissented in favor of a quarter-point cut. Waller and Bowman said the Fed should provide more support to a slowing labor market, but most officials, including Powell, remained wary of tariff-driven inflation. Fed chiefs are traditionally given significant deference by other policymakers in pursuing consensus, so long as they have the committee's respect. 'If the new chair is perceived as political or aligned with the administration, they may not be granted that trust immediately,' said Marc Giannoni, chief US economist at Barclays (BCS) Capital and former research director at the Dallas Fed. Fed Board All 19 policymakers participate in discussions about the economy and monetary policy, but only 12 officials vote. The seven Fed governors in Washington always vote, along with the president of the New York Fed. The remaining four votes are rotated each year among the presidents of the 11 other regional Fed banks. If Powell resigns from the board when his chairmanship ends in May 2026, as is customary, that will give Trump another opening to fill, in addition to Kugler's seat. Powell's term on the board doesn't officially expire until 2028. Replacing both Kugler and Powell would make four of seven governors Trump appointees. It's not guaranteed that all would automatically take direction from the president, though it could give the new chair a head start, Fed watchers say. 'If you have four governors all lined up on one side, that gives the chair quite a bit of momentum to get his or her way,' William Dudley, a former president of the New York Fed, said Monday on Bloomberg TV. 'But I think the Federal Reserve presidents are going to vote their conscience in terms of what's right for the macroeconomy.' Dudley is a Bloomberg Opinion contributor. While Trump has been calling for lower rates for months, Bowman and Waller backed holding rates steady — and voted in favor of such moves — through June. Waller, whose name has been floated as a potential successor for Powell, has also been a staunch defender of central bank independence. The other members of the board — Governors Michael Barr, Lisa Cook and Vice Chair Philip Jefferson, are generally viewed as neutral voices on rates. All three were appointed by former president Joe Biden. 'They will be very focused on the fundamentals, and they could be a bit of resistance if the new members of the FOMC seem to be more influenced by political desire,' said Kathy Bostjancic, chief economist for Nationwide. Regional Banks Aside from New York Fed President John Williams, the regional presidents voting next year will be Cleveland's Beth Hammack, Dallas Fed chief Lorie Logan, the Minneapolis Fed's Neel Kashkari and Philadelphia's Anna Paulson. Williams, who is also vice chair of the FOMC, has often backed Powell and is viewed as a centrist. He said last week he would go into the September policy meeting with 'very much an open mind' about lowering rates, and described the labor market as 'still solid' after gradually cooling over the past year. Hammack, who voted against a rate cut in December, only her third meeting as a policymaker, has shown cautiousness over inflation and a willingness to publicly disagree with her colleagues. She said Friday that while the jobs report was 'disappointing,' she still had confidence in the Fed's decision to keep rates steady last week and believes officials are further from their inflation goal than their employment target. Logan took the helm at the Dallas Fed in 2022 after more than two decades on the markets desk at the New York Fed, where she oversaw management of the Fed's balance sheet. She said in July that officials should hold rates steady for a while longer to bring inflation closer to the 2% target. Kashkari, who previously worked for the Treasury Department under George W. Bush and Barack Obama, oversaw the Troubled Asset Relief Program (TARP) during the financial crisis. He said last week that the Fed is committed to making decisions based on the best data. Paulson, who started in the role in July and will be voting as a policymaker for the first time next year, was previously the director of research at the Chicago Fed, where she worked since 2001. Her career as an economist will make her more prone to taking an analytical approach to policy decisions, said Mester. 'All four of the voters coming in are particularly attuned to financial markets and would be particularly sensitive to any indication that the Fed's credibility is at risk,' said Julia Coronado, founder of the research firm MacroPolicy Perspectives and a former Fed economist. Potential Divisions Projections released in June showed 10 officials predicted at least two cuts in 2025. Those in favor of lowering rates this fall could grow after the July jobs report revealed a weaker labor market than previously thought. Additional deterioration could swing the committee in favor of more cuts. But if the new chair is unable to achieve consensus, it could lead to votes even more deeply split – a dynamic that hasn't been seen in decades. That could raise doubts in financial markets about the central bank's direction and its ability to manage inflation, potentially leading to higher long-term interest rates, said Mester. Waller has also nodded to those financial risks. If the next chair lacks credibility with markets, 'you're going to see inflation expectations spike,' Waller said in a July interview with Bloomberg TV. 'You will not get lower interest rates. You will get higher interest rates.' AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Russia's Secret War and the Plot to Kill a German CEO Government Steps Up Campaign Against Business School Diversity What Happens to AI Startups When Their Founders Jump Ship for Big Tech How Podcast-Obsessed Tech Investors Made a New Media Industry ©2025 Bloomberg L.P. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
