1. The US economy has reported its sharpest economic downturn since the 1940s. The US GDP shrank 9.5% between the first and second quarter, which equals an annualised pace of 32.9 per cent.
2. Facebooks earnings exceeded estimates, still reporting its slowest growth ever as a public company at 11% growth, but beating analysts’ expectations of just 3%. Google’s parent company, Alphabet, was the only tech company of the ‘Big 4’ to report a fall in sales (the first time in its 16 years as a public company). Shares of Alphabet fell 1.2 per cent to $US1518.85 after it released the second-quarter results.
3. Apple’s quarterly results were all positive, reporting revenue gains across every category in every geography. Revenue from iPhone sales was $US26.42 billion, which was $4 billion over analysts’ expectations. Amazon also reported greater than expected quarterly earnings, with revenue growing 40%. Share prices in Facebook, Apple and Amazon rose after the announcements.
4. The S&P Global Ratings says Australian house prices will drop 10% nationally until the market stabilises, which is expected to be in mid-2021. The ratings agency predicts Melbourne house prices to be hit hardest due to the second lockdown and lack of migrants threatening demand.
5. The ASX is tipped to fall, as the Dow closed 0.85% lower at 26,313.65, yesterday. The S&P 500 fell 0.38% to 3,246.22 and Nasdaq rose (undoubtedly due to higher than expected tech earnings), up 0.43% to 10,587.81.
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