Apple tops expectations with upbeat holiday outlook and strong AI-driven momentum

South Africa

The JSE Top 40 index fell 0.68% to 102,366.7 points, while the All Share index declined 0.64% to 109,669.8 points, as investors awaited key fiscal and inflation data. The government announced a R2.5 billion Youth Fund to support SMEs and address youth unemployment near 50%. SARB Governor Lesetja Kganyago reaffirmed a 3% inflation target despite wage and tariff pressures. September producer inflation rose slightly to 2.3% y/y, while the budget deficit reached R15.36 billion. Dis-Chem Pharmacies (DCPJ.J) gained after posting 9% higher earnings and 11% wholesale revenue growth, underscoring retail resilience amid a cautious domestic outlook.

European Union

European equities extended losses as monetary-policy uncertainty and mixed earnings dampened sentiment. The STOXX 600 slipped 0.1%, with industrials dragging performance, while the ECB kept rates unchanged. Schneider Electric dropped 3.3% despite solid growth, and Kongsberg Gruppen tumbled 18.3% on plans to spin off its maritime unit. ING rose 5.8% after unveiling €1.6 billion in buybacks and dividends. Eurostat reported eurozone GDP growth of 0.2% in Q3, exceeding expectations, driven by France and Spain. The ECB reiterated that a digital-euro pilot could begin in 2027 to reinforce Europe’s financial sovereignty amid geopolitical and payment-system competition with the United States.

United States

U.S. equities retreated as Meta and Microsoft dragged the Nasdaq and S&P 500 lower on renewed concern over escalating AI-related spending. The Federal Reserve’s quarter-point rate cut was accompanied by a hawkish tone from Chair Powell, who said another cut in December was “not a foregone conclusion.” Markets now price a 70% chance of a further reduction, down from 90%. Earnings remain robust, with 84.2% of S&P 500 firms exceeding forecasts. Nvidia lost 2% after briefly topping a $5 trillion valuation, while Alphabet gained 2.5% on strong advertising and cloud revenue, underscoring diverging performance among major tech constituents.

Asia

Asian equities advanced on improved U.S.–China trade sentiment and support from the Federal Reserve’s rate cut. Japan’s Nikkei rose as the BOJ held rates at 0.5%, weakening the yen, while South Korea’s market gained after finalising a $350 billion U.S. investment-for-tariff deal. Hyundai and Kia jumped 12% and 9% respectively, reflecting optimism over export competitiveness. Regional momentum strengthened on easing trade tensions, but cautious commentary from the Fed limited upside. Investors looked ahead to upcoming factory-output data and Chinese PMI prints to gauge the sustainability of Asia’s economic rebound amid persistent currency volatility and uneven global demand conditions.

Commodities

Gold prices edged lower as a firm U.S. dollar weighed on sentiment, though bullion remains poised for a third monthly gain. Oil extended its decline, marking three straight months of losses, pressured by higher global output from OPEC+ and U.S. producers. Saudi exports climbed to 6.4 million bpd, while U.S. production hit a record 13.6 million bpd. OPEC+ may modestly raise output in December to offset Russian supply disruptions. Western sanctions had limited market impact, and analysts remained cautious about the potential uplift from U.S.–China energy purchase commitments, given tepid Chinese demand and ample global crude availability.

Currencies

The South African rand weakened alongside emerging-market peers, trading softer as the dollar strengthened on the Fed’s hawkish signals and a tentative U.S.–China trade accord. The dollar index hovered near 99.48, a three-month high. Futures now imply a ~75% chance of another U.S. rate cut in December versus 91% last week. Japan’s new finance minister distanced herself from earlier comments that the yen’s fair value lies between 120–130 per dollar. Broader forex markets remained range-bound, with capital flows favouring defensive dollar assets amid persistent geopolitical uncertainty and uneven global macroeconomic data.

Datatec Limited (DTC) +0.09%

Datatec delivered a strong interim performance for the six months ended 31 August 2025, underpinned by margin expansion and profit growth across key divisions. Gross invoiced income rose 9.4% to US$4.1 billion and revenue increased 2.9% to US$1.84 billion, while adjusted EBITDA advanced 21.9% to US$129.2 million. Headline earnings per share more than doubled to 22.0 US cents and basic EPS surged 92% to 21.7 US cents. The Group declared a 175 ZAR cent dividend (up 133%), supported by reduced net debt of US$54.4 million. Performance was driven by Westcon’s expanding software and services mix and Logicalis International’s operating leverage.

Dis-Chem Pharmacies Limited (DCP) -1.96%

Dis-Chem reported an 8.7% rise in Group revenue to R21.3 billion for the six months to 31 August 2025, supported by steady retail and wholesale growth. Headline earnings per share increased 9.0% to 73.8 cents, and a 9% higher interim dividend of 29.42 cents per share was declared. Core retail profit before tax rose 25.8%, excluding R130 million invested in expanding its integrated healthcare ecosystem through X, bigly labs and Dis-Chem Life. The newly launched Better Rewards loyalty programme reinforces the Group’s strategic evolution from a pharmacy retailer to a technology-enabled healthcare provider, enhancing customer engagement, operating leverage and long-term resilience.

Adcorp Holdings (ADR) -0.14%

Adcorp delivered a sharp turnaround for the six months ended 31 August 2025, achieving strong earnings growth despite lower revenue. Group revenue declined 5.5% to R6.39 billion and gross profit fell 3.7% to R624 million; however, margins improved to 9.8%. Operating profit rose 70.7% to R72.2 million, while profit before tax surged 150.3% to R60.8 million. Headline earnings per share climbed 88% to 53.0 cents, supported by disciplined cost control and efficiency gains. The Group maintained a solid net cash position of R201.5 million and declared an interim dividend of 24.78 cents per share, up 85%, signalling confidence in its operational momentum.

Finbond Group Limited (FGL) +0.89%

Finbond delivered a substantial recovery for the six months ended 31 August 2025, reflecting robust loan growth and improved credit performance across South Africa and North America. Total revenue rose 13.4% to R909.4 million, while profit after tax surged 598.9% to R52.8 million, reversing a prior-year loss. Earnings per share improved to 11.0 cents, and headline earnings per share reached 1.1 cents. Net asset value per share advanced 7.2% to 148.9 cents. The Group strengthened liquidity with cash and equivalents up 22.4% to R1.07 billion, supported by lower impairment ratios and disciplined collections, positioning Finbond for sustained profitability and balance-sheet resilience.

Apple Inc. (AAPL) +0.63%

Apple exceeded market expectations with its outlook for the holiday quarter, forecasting double-digit iPhone sales growth and a 10–12% rise in total revenue, outpacing consensus estimates. Fiscal Q4 results showed revenue of $102.47 billion and EPS of $1.85, both slightly ahead of forecasts, despite iPhone sales of $49.03 billion missing estimates due to China shipping delays and supply constraints on new iPhone 17 models. Services, Mac and accessories all outperformed, with AirPods boosted by new AI translation features. Tariff-related costs totalled $1.1 billion, rising to $1.4 billion in Q1, but gross margins are expected at 47–48%. Shares gained 3.7% post-results as investors welcomed stronger guidance and progress on AI-driven innovation.

Amazon.com Inc. (AMZN) -3.23%

Amazon reported its strongest cloud growth in nearly three years, propelling shares 14% higher in after-hours trading as investors welcomed upbeat guidance. Amazon Web Services revenue rose 20% year-on-year in Q3, outperforming estimates and reinforcing momentum in AI-driven demand. Total Q4 sales are projected at $206–213 billion, above market expectations. Advertising revenue climbed 24% to $17.7 billion, further diversifying earnings. CEO Andy Jassy highlighted accelerating capacity investment, with capital expenditure expected to reach $125 billion this year and rise further in 2026. Despite workforce restructuring and a $25 billion FTC settlement charge, Amazon’s profitability and AI-led cloud strategy reaffirm its leadership in the digital infrastructure economy.

Eli Lilly And Company (LLY) +3.81%

Eli Lilly raised full-year guidance after reporting another stellar quarter driven by surging demand for its GLP-1 weight-loss and diabetes treatments, Zepbound and Mounjaro. Q3 EPS reached $7.02, far exceeding forecasts of $5.69, with Zepbound sales of $3.6 billion and Mounjaro at $6.5 billion — both well ahead of estimates. The company now expects FY2025 EPS of $23.00–$23.70 and revenue of $63–$63.5 billion. Meanwhile, Lilly’s experimental oral GLP-1 drug orforglipron met most FDA national-priority criteria, potentially qualifying for accelerated approval. The strong results reinforce Lilly’s dominance in the booming obesity-treatment market, projected to exceed $150 billion by 2030, and highlight the company’s expanding innovation pipeline.

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