US index futures are up on Friday, with Wall Street looking for
a rebound after recent declines. Investors are keeping an eye on
quarterly results from major oil companies such as Exxon Mobil
(NYSE:XOM) and Chevron (NYSE:CVX). In addition, Amazon
(NASDAQ:AMZN) and Intel (NASDAQ:INTC) boosted technology stocks
with their strong results.
At 06:49 AM, Dow Jones futures (DOWI:DJI) were up 43 points, or
0.13%. S&P 500 futures were up 0,51%, and Nasdaq-100 futures
increased by 0.96%. The 10-year Treasury bond yield stood at
4.868%.
In the commodities market, West Texas Intermediate crude oil for
December rose 2.14%, trading at $84.99 per barrel. Brent crude for
December went up 2.13%, nearing $89.80 per barrel. The 62%
concentrated iron ore, traded on the Dalian exchange, rose by
2.12%, priced at $121.51, continuing its strong uptrend that marked
the week.
On the economic agenda for Friday, investors await the September
Personal Consumption Expenditures (PCE) price index at 08:30 AM. At
09:00 AM, the Vice Chairman for Supervision of the Fed, Michael
Barr, will speak at an event. At 10:00 AM, the University of
Michigan will release the final October consumer sentiment index.
At 13:00 PM, Baker Hughes data for operational oil wells is
expected.
European stocks opened with mixed results, with investors
focused on corporate earnings and the state of the global economy,
maintaining a balanced sentiment. The benchmark Stoxx 600 index saw
a slight drop of 0.1%. Though the week has been relatively stable
overall, the index is on track to record its worst monthly
performance since September 2022, according to LSEG data.
Asian markets showed a mix of performances, with gains in the
Hong Kong and Japanese stock exchanges standing out. Chinese stocks
rose following industrial profit data, albeit with slightly weaker
growth. The yen remained stable after an unexpected rise in Tokyo
inflation.
Investors are closely monitoring geopolitical events in the
Middle East. The Israeli military forces claimed to have eliminated
the deputy chief of Hamas’s intelligence services, accused of
planning attacks in October. Additionally, Israel carried out a
limited ground attack north of Gaza. At the same time, Iran has
ramped up its rhetoric against the United States, which is closely
watched by financial markets.
U.S. stock markets closed sharply lower in Thursday’s session,
primarily due to disappointments with recent corporate financial
reports. The Dow Jones dropped 251.63 points or 0.76% to 32,784.30
points. The S&P 500 declined by 49.54 points or 1.18% to
4,137.23 points. The Nasdaq Composite fell 225.62 points or 1.76%
to 12,595.61 points.
However, economic indicators acted as a counterbalance,
minimizing the declines, highlighted by the U.S. GDP figures for Q3
2023. The U.S. GDP grew by 4.9% compared to the previous quarter,
surpassing the 4.5% forecast. Nevertheless, the core GDP deflator
showed a significant decrease, leading to an adjustment in the
Treasury yield curve. Thus, economic performance in the third
quarter revealed higher than expected growth with a decline in
prices, representing an ideal situation for the Federal
Reserve.
On Thursday’s corporate earnings front, investors will be
watching reports from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX),
Abbvie (NYSE:ABBV), Charter Communications (NASDAQ:CHTR), Phillips
66 (NYSE:PSX), AutoNation (NYSE:AN), Colgate-Palmolive (NYSE:CL),
among others.
Wall Street Corporate Highlights for Today
Apple (NASDAQ:AAPL) – The U.S. International
Trade Commission (ITC) has issued an order that might ban the
import of Apple’s Apple Watches for infringing on
Masimo’s (NASDAQ:MASI) blood oxygen technology
patents. The decision awaits presidential review and possible
appeals, leaving an uncertain impact on future sales. Masimo shares
have risen by 10.2% in Friday’s pre-market trading.
Alphabet (NASDAQ:GOOGL) – Sundar Pichai, CEO of
Alphabet and Google, will testify on Monday in a major antitrust
case challenging Google’s dominance in search and advertising. He
will answer questions regarding investments to maintain
competitiveness and payment agreements to establish Google as the
default on smartphones.
Western Digital (NASDAQ:WDC) – Western Digital
and Kioxia Holdings have discontinued merger discussions due to
disagreements over terms. Kioxia investor SK Hynix also opposed the
deal. Both companies remain interested in continuing negotiations
but have encountered obstacles, including SK Hynix’s opposition and
issues with Kioxia’s main shareholder, Bain
Capital (NYSE:BCSF). The potential merger has raised
antitrust and regulatory concerns, including scrutiny from Chinese
regulators.
Netflix (NASDAQ:NFLX), Disney
(NYSE:DIS) – Striking Hollywood actors have approved a
comprehensive counterproposal to AMPTP, representing media
companies like Disney and Netflix. Negotiations are set to continue
on Friday.
RTX Corporation (NYSE:RTX) – U.S. RTX and
Israel’s Rafael Advanced Defense Systems plan to construct a
missile manufacturing facility in East Camden, Arkansas, to produce
Tamir missiles, utilized in the Iron Dome system and its SkyHunter
variant. Production is slated to commence in 2025.
Embraer (NYSE:ERJ) – Embraer has announced that
its firm order backlog has reached US$17.8 billion at the end of
the third quarter, bolstered by a recent order from SkyWest for 19
E175 jets. The portfolio has expanded by US$500 million compared to
the previous quarter. Embraer has delivered 43 aircraft in the
third quarter, totaling 105 for the year to date. SkyWest has
placed an order for 19 E175 jets at $1.1 billion, with deliveries
scheduled to start in the final quarter of 2024, operating under a
capacity purchase agreement (CPA) for United
Airlines (NASDAQ:UAL).
Boeing (NYSE:BA) – Boeing’s defense division is
grappling with significant challenges, including supplier errors
and high manufacturing costs, resulting in a $1.7 billion loss in
2023. This includes projects such as Air Force One and NASA’s
Starliner capsule. The company is actively seeking improvements but
remains under fixed-price contracts, forcing it to absorb excessive
costs. Analysts are questioning Boeing’s management, and shares
have declined by 6% this year, in contrast to the S&P 500. The
company is now concentrating on future contracts for
next-generation fighter jets and advanced drones.
General Motors (NYSE:GM) – General Motors’
Cruise has suspended operations nationwide after California
regulators highlighted public safety risks. This move aims to
rebuild public trust following previous incidents, unrelated to new
problems. U.S. authorities are investigating reports of sudden
braking in Cruise self-driving cars.
Tesla (NASDAQ:TSLA) – BP’s
(NYSE:BP) electric vehicle charger unit has ordered $100 million
worth of Tesla’s ultra-fast chargers for deployment in the United
States. This is part of BP Pulse’s plans to invest up to $1 billion
in charging infrastructure in the U.S. by 2030, thereby expanding
Tesla’s revenue streams. The chargers will be installed at BP
locations and third-party sites, including car rental companies
such as Hertz (NASDAQ:HTZ). Additionally, Tesla
has increased the price of the Model Y high-performance SUV in
China by US$1,913.88, according to a company statement on social
media.
BHP (NYSE:BHP) – Approximately 350 BHP rail
workers in Australia have voted in favor of industrial action,
which could include strikes of up to 24 hours, due to disputes over
pay and conditions. These disruptions could impact BHP’s iron ore
operations in Port Hedland, the world’s largest iron ore export
hub.
ConocoPhillips (NYSE:COP) – ConocoPhillips is
considering making an offer for CrownRock LP, a Texas energy
company in the Permian region, estimated to be worth between $10
billion and $15 billion. Other companies, such as
Diamondback Energy (NASDAQ:FANG), Devon
Energy (NYSE:DVN), and Marathon Oil
(NYSE:MRO), are also exploring bids for CrownRock.
Walmart (NYSE:WMT) – Chinese grocery chains are
struggling due to changing consumer preferences and the rise of
e-commerce. Supermarket sales fell 0.4% this year, while online
sales increased 11.6%. Companies face losses and challenges, with
Walmart and Sam’s Club seeking to
adapt to new consumer trends to stay relevant.
Chipotle Mexican Grill (NYSE:CMG),
McDonald’s (NYSE:MCD), Yum Brands
(NYSE:YUM) – Investors are paying attention to a possible shift in
fast-food consumption patterns in the U.S. due to the popularity of
weight-loss medications. Companies like Chipotle, McDonald’s, and
Yum Brands already face challenges due to inflation and could
suffer more due to this factor. While it’s too early to quantify
the impact, traffic at fast-food restaurants saw a significant drop
in the third quarter.
JPMorgan Chase (NYSE:JPM) – JPMorgan has
reached out to Venezuelan bondholders to discuss normalizing the
weighting of these bonds in its EMBI indexes following the lifting
of U.S. sanctions in response to a political settlement. The bank
reduced its weighting to zero in 2019 due to sweeping
sanctions.
Goldman Sachs (NYSE:GS) – Goldman Sachs
launched the Goldman Sachs Global Institute, led by Jared Cohen and
George Lee, to provide geopolitics and technology insights to
clients. Lazard also advises on geopolitical risks, highlighting
the importance of geopolitics for global companies.
Citigroup (NYSE:C) – The Federal Reserve has
closed its 2015 enforcement action against Citigroup resulting from
violations of U.S. antitrust laws related to exchange rate
manipulation.
Live Nation Entertainment (NYSE:LYV) – Live
Nation is forecast to benefit from growing demand for live shows
and entertainment despite regulatory and economic concerns.
Evercore ISI analyst Ashton Welles upgraded shares to Outperform
from In Line with a $100 price target on Thursday due to continued
consumer interest in live experiences. The company plans to release
its third-quarter results soon, with expectations of revenue growth
despite economic challenges. Although they face regulatory risks,
analysts consider these concerns to be less likely to
materialize.
Earnings
Amazon (NASDAQ:AMZN) – Shares of the leading
online commerce company rose more than 5% in pre-market trading on
Friday after it presented sales estimates for the final quarter
that ranged between $160 billion and $167 billion, while analysts
interviewed by LSEG predicted revenues of approximately US$166.6
billion. Amazon beat analysts’ expectations for earnings and
performance in the third quarter.
Intel (NASDAQ:INTC) – Shares posted a rise of
more than 7% in pre-market trading after the semiconductor chip
manufacturing company beat third-quarter earnings expectations.
Intel posted an adjusted profit of 41 cents per share on revenue of
$14.16 billion, while analysts surveyed by LSEG predicted a profit
of 22 cents per share on revenue of $13.53 billion.
Ford Motor (NYSE:F) – The automaker’s shares
suffered a 2.7% drop in pre-market trading after Ford missed
third-quarter profit expectations. Ford announced adjusted earnings
of 39 cents per share on revenue of $41.18 billion, falling short
of the 45 cents per share and $41.22 billion in revenue expected by
analysts surveyed by LSEG.
Mobileye Global (NASDAQ:MBLY) – Mobileye Global
beat quarterly profit estimates, driven by continued demand for its
autonomous driving technology. The company adjusted its annual
operating loss forecast, now expecting a loss of between $62
million and $79 million, instead of the previous $98 million to
$129 million.
Enphase Energy (NASDAQ:ENPH) – The value of
shares of solar energy companies fell more than 20% in pre-market
trading after Enphase Energy presented a pessimistic outlook. The
company projected fourth-quarter revenue in the range of $300
million to $350 million, while analysts surveyed by LSEG were
expecting $584 million.
Honeywell (NASDAQ:HON) – Honeywell
International beat estimates in the third quarter, with earnings of
$2.27 per share on sales of $9.3 billion. The company lowered its
2023 earnings per share forecast to $9.10 to $9.20 while
maintaining estimated sales of about $37 billion.
Ameriprise Financial (NYSE:AMP) – Ameriprise
Financial, despite a challenging environment, reported strong
growth in its wealth management unit in the third quarter, with
adjusted net revenues of $2.41 billion, an increase of 13%
year-on-year, driven by higher investment gains and client asset
growth. GAAP net income fell 18% to $872 million, reflecting a
decline in wealth management cash balances. Analysts highlight the
company’s “robust wealth management results.”
Capital One (NYSE:COF) – The financial services
company reported third-quarter results that exceeded expectations.
Earnings per share reached US$4.45, in contrast to the US$3.24 per
share predicted by analysts surveyed by FactSet. Furthermore, net
interest income reached US$9.37 billion, also exceeding the
consensus of US$7.28 billion.
Nomura Holdings (NYSE:NMR) – Nomura Holdings,
Japan’s largest brokerage, reported a doubled net profit in the
second quarter due to the domestic stock market and share
offerings. Profit was US$235 million, driven by the investment
banking sector.
Dexcom (NASDAQ:DXCM) – The company that makes
medical devices for diabetic patients beat profit forecasts in the
third quarter. Dexcom reported adjusted earnings per share of 50
cents on revenue of $975 million. That beat the expectations of
analysts surveyed by FactSet, who had expected earnings of 34 cents
per share on revenue of $939.6 million.
Sanofi (NASDAQ:SNY) – Shares of French
pharmaceutical company Sanofi fell 16.1% in pre-market trading
Friday after the company increased research and development
spending and anticipated higher taxes. Its “Earnings per Corporate
Share” is expected to fall to single digits next year due to rising
R&D costs and tax changes. The company also plans to spin off
its consumer healthcare business. Third-quarter results were
slightly below analyst estimates.
Kenvue (NYSE:KVUE) – Kenvue is facing declining
sales due to the delayed flu season, resulting in a downward
revision of its annual profit projections. The company’s value in
the third quarter exceeded analysts’ expectations. The company
lowered its upper full-year profit estimate to $1.28 per share,
keeping the lower bound at $1.26 per share, due to weak sales in
China and the strong dollar.
Chipotle Mexican Grill (NYSE:CMG) – The burrito
restaurant chain reported earnings results that exceeded Wall
Street expectations, according to an analyst survey conducted by
LSEG. Adjusted earnings per share were US$11.36, exceeding the
US$10.55 per share forecast, while revenue was in line with
expectations, totaling US$2.47 billion.
Deckers Outdoor (NYSE:DECK) – The company
behind the Ugg boot and Hoka sneaker brands projected full-year
earnings per share in the range of $22.90 to $23.25 on revenue of
$4.025 billion. This exceeded the forecasts of analysts surveyed by
LSEG, who expected a profit of US$22.64 per share and revenue of
US$4.015 billion. Furthermore, the company also surpassed Wall
Street’s expectations in terms of profit and performance in the
fiscal second quarter. Shares are flat in pre-market trading.
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