Amazon tops expectations, issues cautious outlook
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Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. It's good to have you here on this Friday, May 2nd, the second day of the trading month, but the final day of the trading week. I'm Julie Morgan. Amazon beat forecasts, but the stock is still down pre-market. American is expanding at DFW, and the WHO is set to back obesity drugs.

Amazon 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 analysts' 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 expects revenue of $159 to $164 billion for the second quarter versus a $161.4 billion consensus. Amazon also guided for operating income of $13 to $17.5 billion versus a $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 in 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. The terminal 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 the terminal is well underway and still scheduled to be operational in 2027, with the newly added phases planned to come online in additional phases.

The World Health Organization is preparing to endorse the use of popular GLP-1 weight loss meds, including Zepbam from Eli Lilly and Wegovi from Novo Nordisk. This would be a first time for the agency. 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.

Based on estimates, about 70% of obese individuals live in these countries. Studies have indicated that to maintain weight loss, most individuals need to remain on GLP-1s for life. 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. Here's a look at what's trending on Seeking Alpha. Apple slips as China and services weakness way. The company also unveiled a $100 billion buyback and boosted its dividend. We have the key takeaways from Reddit's Q1 report.

NVIDIA reportedly discusses concerns about Huawei's AI capability with U.S. lawmakers. And President Trump signs an order to end funding for NPR and PBS. Our Catalyst watch today looks very light. It's the last day of trading before the Kentucky Derby, which has been a share price catalyst for Churchill Downs in the past.

It's time to check out the markets today ahead of the opening bell. Dow S&P and Nasdaq futures are in the green. Crude oil is down 0.8% at $58 a barrel. Bitcoin is up 0.1% at $96,000.

Gold is up 0.8% at $3,264. In the world markets, the FTSE 100 is up 0.7% and the DAX is up 1.8%.

Block is on our list of the biggest movers of the day pre-market. XYZ is down 22% after Q1 earnings missed expectations, driven by weaker-than-expected cash-out card spend, prompting more cautious guidance.

On today's economic calendar, at 8.30 a.m., the employment situation. Economists forecast 130,000 jobs to have been added in April and for the unemployment rate to hold steady at 4.2%.

That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.