Resilient Corporate Earnings
NFL+ Is Here
Apple Discounts Products in China
Strategists at Citigroup and UBS say U.S. corporate earnings are more robust than anticipated.
The Point: It's quarterly earnings season. Given the economic and geopolitical events of the last three months, investors have been downright pessimistic about the health of corporate America. But the strategists at Citi and UBS say things aren't as bad as they seem. Sure, earnings growth has slowed. However, the worst-case scenario of plummeting profits appears to no longer be in play. In fact, 60% of companies that have reported so far have topped their sales estimates, according to UBS. In addition, 75% have surpassed profit expectations. If the trend holds, investors will have a good reason to look forward to the year's second half.
For $4.99 per month, subscribers can stream local and primetime games and access a library of NFL Network content.
The Point: A few weeks back, we discussed the rumor that the NFL planned to get into streaming. Now it's official. And it's pretty much what we expected. Of course, the new offering, called NFL+, won't replace the NFL's existing media deals. At least not right now. But it's worth considering that possibility. Perhaps the way to view this service is as a low-risk experiment. Suppose the NFL can garner a large subscriber base for this barebones product. In that case, it could feel emboldened to eventually distribute all its games on its own. Even if it chooses not to go that route, the idea that it could do so will give the league even more leverage in future media rights negotiations. And that would inevitably impact the fortunes of a handful of public companies such as Disney, Comcast, and Paramount.
The company announced a four-day promotion in which it's discounting iPhones and accessories for Chinese customers.
The Point: Apple is notoriously stingy when it comes to offering discounts. So it's not hard to decipher what this might mean. Lockdowns and a slowing Chinese economy have put a damper on Apple's Chinese sales. So now, as it prepares for its newest generation of phones, the company is willing to cut prices on the iPhone 13 Pro to clear out excess inventory. If just about any other company did this, it wouldn't garner a mention. But because this is Apple, the decision stands out as a clear sign of what's going on in the world's biggest market.
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