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Amazon (AMZN) talks up AI potential on earnings call, points to limited tariff impact so far. (00:27) American Airlines (AAL) commits to $4 billion expansion at Dallas airport. (01:45) WHO set to back use of weight loss drugs such as Zepbound (LLY), Wegovy (NVO) – report. (02:34)
This is an abridged transcript.
Amazon (NASDAQ:AMZN) is at the center of the retail universe after its earnings report showed strong results, with net sales rising 9% year-over-year to $155.7 billion and net income jumping to $17.1 billion, both surpassing analyst expectations.
Amazon Web Services revenue grew 17% to $29.2 billion, while advertising revenue increased 19% to $13.92 billion. However, Amazon’s Q2 operating income guidance fell short of Wall Street forecasts, raising concerns about profitability amid new U.S. tariffs on Chinese goods.
Looking ahead, Amazon (NASDAQ:AMZN) expects revenue of $159.0 billion to $164.0 billion (midpoint $161.5 billion) for the second quarter, vs. $161.4 billion consensus. AMZN also guided for operating income of $13.0 billion to $17.5 billion (midpoint $15.3 billion) vs. $17.8 billion consensus.
On the conference call, CEO Andy Jassy addressed tariffs. Jassy said the company has seen heightened buying in certain categories. He highlighted that most sellers have not reset retail prices higher yet, but could in the future if the tariff battle extends.
American Airlines (NASDAQ:AAL) and Dallas-Fort Worth International Airport on Thursday unveiled revised plans for Terminal F, finalizing a $4 billion expansion project.
The two said in a statement that the plan will increase the number of gates at the new terminal to 31, more than twice as many as initially envisioned. It will be used exclusively by the airline.
DFW and American Airlines reached a new 10-year use and lease agreement in 2023 with pre-approved capital investments, including the construction of Terminal F as a 15-gate facility.
The original first phase of Terminal F is well underway and still scheduled to be operational in 2027, with the newly added phases planned to come online in additional phases, DFW said.
The World Health Organization is preparing to endorse the use of popular GLP-1 weight loss medicines, including Zepbound (tirzepatide) from Eli Lilly (NYSE:LLY) and Wegovy (semaglutide) from Novo Nordisk (NVO).
The agency has never before backed drugs to treat obesity.
A memo obtained by Reuters indicates that the WHO also wants better access to the treatments for those in low- and middle-income countries given their relatively high costs. About 70% of obese individuals live in these countries, based on World Bank estimates.
To maintain weight loss, most individuals need to remain on GLP-1s for life, studies have indicated.
A WHO spokesperson told Reuters that recommendations should be finalized by August or September, adding they will suggest “how and when this class of medications may be integrated as one component of a chronic care model that includes both clinical and lifestyle interventions.”
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Catalyst watch:
It is the last trading day before the Kentucky Derby, which has been a share price catalyst for Churchill Downs (CHDN) in the past.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.8% at $58/barrel. Bitcoin is up 0.1% at $96,000. Gold is up 0.8% at $3,264.
The FTSE 100 is up 0.7% and the DAX is up 1.8%. Markets in Mainland China were closed for a holiday.
The biggest movers for the day premarket: Block (NYSE:XYZ) -22% — Shares plunged after Q1 earnings missed expectations, driven by weaker-than-expected Cash App Card spend, prompting more cautious guidance.
On today’s economic calendar:
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