Key Takeaways
- Amazon (AMZN) shares dropped over 7% due to cautious operating income guidance and concerns over cloud business growth and potential tariffs, despite exceeding Q2 revenue expectations.
- European pharmaceutical companies experienced declines following President Trump's demand for U.S. drug price reductions, with a September 29 deadline for compliance.
- Eurozone CPI for July held steady at 2.0% year-over-year, aligning with the European Central Bank's (ECB) target, while traders are increasingly betting against further ECB rate cuts.
- NIO Inc. (NIO) delivered 21,017 vehicles in July 2025, contributing to a cumulative 806,731 deliveries as of July 31, 2025.
- New U.S. tariffs imposed by President Trump are set to impact French wine sellers with an estimated €1 billion loss and are expected to raise U.S. beef costs due to tariffs on Brazilian imports.
Amazon (AMZN) saw its shares fall by over 7% in extended trading despite surpassing second-quarter revenue forecasts, reaching $167.7 billion against an estimated $162.09 billion. The decline was primarily driven by a cautious operating income guidance for the upcoming period, projected between $15.5 billion and $20.5 billion, which fell short of the $19.48 billion analyst consensus. Investors are also expressing concerns about the growth of its cloud division, Amazon Web Services (AWS), and the potential impact of proposed tariffs by President Trump. AWS revenue grew by 17.5% to $30.9 billion, but its profit margin declined to 32.9%, raising questions about the return on Amazon's substantial $100 billion investment in AI infrastructure.
In other tech news, Apple (AAPL) reported a significant recovery in revenue, largely attributed to strong sales of its iPhone 16 series, particularly in China. The company's third-quarter revenue reached $94.036 billion, a 10% year-over-year increase, exceeding forecasts of $89.53 billion. iPhone revenue alone surged 13% to $44.58 billion. China's Greater China region saw a 4.4% increase in revenue to $15.37 billion, reversing a two-quarter decline, partly due to government subsidies.
The European economic landscape is navigating inflation and trade tensions. The Eurozone's estimated Consumer Price Index (CPI) for July remained at 2.0% year-over-year, consistent with the previous month and aligning with the European Central Bank's (ECB) target. Monthly CPI was 0.0%, while core CPI (excluding food and energy) stood at 2.3%. Despite this, traders are increasingly betting against further ECB rate cuts, with some brokerages, including Deutsche Bank, withdrawing their forecasts for additional cuts this year, suggesting a potential rate hike by late 2026. The ECB reported no funds borrowed through its overnight loan facility, with deposits reaching 2,565.96 billion Euros.
President Trump's tariff policies are creating significant financial implications across various sectors. European medicine companies experienced a downturn after Trump called for U.S. price reductions, giving them until September 29 to comply. French wine sellers are facing an estimated €1 billion loss due to new U.S. tariffs, which could cut a quarter of France's annual wine and spirits exports. Similarly, U.S. beef costs are expected to rise following a proposed 50% tariff on Brazilian beef imports, which would bring the total tariff rate to approximately 76.4% on top of existing duties. This comes as the U.S. cattle herd is at its lowest level in decades.
In the electric vehicle market, NIO Inc. (NIO) announced strong delivery figures for July 2025, with 21,017 vehicles delivered. This brings their cumulative deliveries to 806,731 as of July 31, 2025. The deliveries included 12,675 NIO brand vehicles, 5,976 ONVO vehicles, and 2,366 FIREFLY vehicles. The company also recently launched its ONVO L90 SUV, with user deliveries commencing shortly.
Finally, cryptocurrency exchange Kraken is investigating an onboarding problem that is preventing U.S. futures clients from viewing transfers to their futures wallets. France also plans to sell up to EUR10.5 billion in bonds on August 7th.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.