The daily business briefing: July 27, 2016

1. Apple gets a boost from better-than-expected iPhone sales

Apple shares gained seven percent in after-hours trading after the company announced on Tuesday that it had sold more iPhones than expected in the most recent quarter, easing fears over cooling demand for the company's popular smartphone. Apple, the world's most valuable publicly traded company, sold 40.4 million iPhones in the third quarter of its fiscal year, a 15 percent drop from a year before but a bit better than the 40.02 million analysts predicted. Apple also said its revenue in the current quarter should beat many analysts' targets.

Reuters

2. Japan's Shinzo Abe announces $265 billion stimulus plan

Japanese Prime Minister Shinzo Abe unveiled a $265 billion economic stimulus package on Wednesday. The announcement, which came earlier than expected, lifted stocks in Japan and other Asian countries. The fiscal package was 40 percent larger than initial estimates. "The amount is so large that the stimulus package is bound to have a big economic impact," said economist Hiroshi Miyazaki of Mitsubishi UFJ Morgan Stanley Securities. Abe said boosting domestic demand was necessary to "increase our escape velocity from deflation."

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3. McDonald's comeback slows as all-day breakfast boost fades

McDonald's reported Tuesday that its sales growth decelerated in the most recent quarter, a sign its comeback is stumbling as enthusiasm for its all-day breakfasts cools. The giant fast-food chain introduced its all-day breakfast menu in October. "Is the McDonald's turnaround plan running out of steam or is this simply a blip in growth?" Neil Saunders, CEO of research firm Conlumino, wrote in a note. "The truth is that the more sluggish performance is a mix of both."

CNN The Washington Post

4. China's LeEco to buy Vizio for $2 billion

Chinese tech company LeEco is buying U.S. television maker Vizio for $2 billion, the companies announced in Los Angeles on Tuesday. The deal will give LeEco access to the American market — the California-based Vizio has just a 3.4 percent market share globally, but it has 20 percent of TV sales in the U.S. LeEco also makes cars and phones. Many major Chinese brands, such as Huawei and Xiaomi, have made little headway selling smartphones in the U.S., but LeEco is hoping the Vizio deal will give it an edge.

PC Magazine

5. Twitter shares plunge as sales fall short of expectations

Twitter shares dropped by 10 percent in after-hours trading on Tuesday after the social media company reported quarterly revenue that fell short of analysts' expectations. Twitter posted ad sales of $602 million for the quarter that ended in June, just under Wall Street estimates of $608 million. The company also projected sales for the upcoming quarter of just $590 million to $610 million, far below the $678 million analysts were expecting. Twitter reported 313 million monthly active users in the last quarter, a gain of just three million over the previous quarter.

CNN CNBC