Breakfast News: Japan Trade Deal Agreed

Breakfast News: Japan Trade Deal Agreed

Source: Image Created by Jester AI.

1. Trump Announces Asia Agreements

S&P 500 and Nasdaq futures are edging up this morning after President Trump announced a trade deal with Japan late Tuesday, with a 15% duty on Japanese imports and $550 billion inward investments in the United States. Japanese stocks rose, with the Nikkei closing 3.5% ahead, responding to lowered uncertainty.

• 19% tariff on Indonesian imports: A deal with Indonesia will remove almost all levies on U.S. goods, with reciprocal tariffs below the president's initial 32%. Imports from the Philippines will attract a similar 19%.
• "If they want war, they will get war": The Wall Street Journal quoted an unnamed German official, as European Union and India deals before the August 1 deadline look increasingly remote. EU officials meet this week to plan reprisals.

2. Intuitive's Robo-Doc Boosts Profits

Intuitive Surgical (ISRG -1.73%) saw second-quarter revenue climb 20% with adjusted EPS up 23%, both ahead of Wall Street estimates.

• Top-end da Vinci 5 installs more than doubled to 180: The robotic surgery developer saw 395 of its da Vinci systems placed in the quarter, up 16% year over year, boosting the total to 10,488 from 9,203.
• "Adverse impact from tariffs": Management expects operating expenses to reach 14% this year, up from 10%, based on tariffs currently in effect.

3. ENQ, ENPH, KARO Beat Wall St Hopes

Natural gas producer and Hidden Gems recommendation EQT (EQT -3.83%) reported Q2 adjusted earnings ahead of expectations yesterday, and lifted its full-year production outlook based on the acquisition of Olympus Energy.

• Earnings per share up 60%: Stock Advisor rec Enphase Energy (ENPH -14.54%) faces a more uncertain future with U.S. subsidies for solar power set to end, though it posted Q2 revenue and earnings beats. Today's 7% pre-market fall wipes out a 7% rise at close yesterday -- you win some, you lose some...
• Moneyball Superscore of 74: Vehicle mobility technologist Karooooo (KARO -4.41%) beat expectations with a 19% jump in adjusted earnings year over year, as Cartrack subscription revenue rose 18.5%.

4. Next Up: Today's Big Tech Earnings

Magnificent 7 earnings start after market close, with Alphabet (GOOG -0.23%) following from Q1 revenue and earnings gains amid fears that next month's expected antitrust ruling could force the sale of the Chrome browser. Analysts predict a 26% Google Cloud revenue rise year over year.

• "Working 7 days a week and sleeping in the office": Tesla (TSLA 0.15%) Q2 earnings arrive this afternoon, with CEO Elon Musk back to focus on his companies. Bloomberg notes the latest SpaceX tender document says he may "devote significant time" to future political roles.
• Stock up 28% year to date: IBM (IBM 0.14%) will post after the bell, with eyes on possible impacts from tariffs and government spending cuts. Forecasts suggest a 9% Q2 earnings rise after a 5% dip in Q1.

5. Global AI Shift

Amazon (AMZN 0.29%) is closing its Shanghai AI lab, the Financial Times reports, under pressure from government scrutiny of U.S. companies operating in China.

• "Strategic adjustments amid U.S.-China tensions": The report quotes scientist Wang Minjie explaining the reason for the closure of the lab, set up in 2018.
• "Smart technology island": Taiwan premier Cho Jung-tai, meanwhile, is planning a "Ten Major AI Infrastructure Projects" launch aimed at adding more than $510 billion to the economy by 2024, according to Reuters.

5. Your Take

All seven of our Rule Breakers recommendations for Intuitive Surgical over the years are outperforming the S&P 500 – ranging from 55% to 9,729%!

But will Intuitive Surgical be a market-beater over the next 5 years? Debate with friends and family, or become a member to hear what your fellow Fools are saying.