Apple Inc. (AAPL)
With its shares 5% higher Wednesday, Apple reclaimed its spot as the most valuable company by market cap. The company late Tuesday posted earnings and forward guidance that exceeded Wall Street’s expectations. Its services business, which includes products such as iCloud, Apple Music and AppleCare warranties, made $11.45 billion, up 16% from the same time last year.
Fed policymakers said the economy was in good shape as it stands, with ongoing job and economic growth, and an eventual rise in inflation, still “the most likely outcomes” as the U.S. expansion nears its 10-year mark.
Shares in Chinese health-care firms, beer and fiery liquor makers are likely to get a boost when the MSCI quadruples the weighting of the country’s stocks in its global benchmarks, according to fund managers at HSBC’s investment arm.
HSBC Global Asset Management estimates the higher weighting of A shares in MSCI gauges will lead to more than US$73 billion of foreign capital flowing into China, with Beijing’s fiscal and monetary measures also contributing to the rally.
By the end of April, the number of loss-making companies had doubled from 2017, while the proportion of such companies also hit an all-time high of 12.5 per cent, according to data provider Wind. The combined net profit of companies listed on the Shanghai and Shenzhen stock exchanges reached 3.383 trillion yuan (US$502 billion) for 2018, down 1.7 per cent from the previous year.
Companies that overpaid for acquired assets faced significant writedowns, as an economic slowdown and the government’s deleveraging campaign bit into their profitability, and the government tightened accounting regulations, said Chen Letian, an analyst with BOC International.