Here are the most important news investors need as they start the trading day:
1. Limping Home
As we head into Friday, stocks are starting the week lower. All three major US markets had an outstanding day on Thursday, Nasdaq and S&P 500 lost less than 1%, and the Dow lost 250 points.
While the market is digesting earnings reports from Amazon, Ford and Intel, it is also preparing for new quarterly results to be announced next week. On the data front, the final version of the September personal consumption expenditures (PCE) measure, the Fed’s favorite measure of inflation, is due out Friday.
2. Prime Margins
Amazon’s profit performance is a bit busy these days. The e-commerce and cloud giant said it achieved a margin of 7.8% in the third quarter, its best performance since the 8.2% margin in the first quarter of 2021.
The role was a big part of that plan, it hasn’t been finalized yet, and Amazon has been a little slow to increase headcount. The market also seems to like Jassy’s performance. Amazon shares rose in after-hours trading.
3. Troubled Ford
It was an eventful week for Ford. The company became the first of Detroit’s Big Three automakers to reach an agreement with the United Auto Workers union, ending a nearly six-week strike that cost the company $1.3 billion. (Talks between the UAW, GM and Stellantis are ongoing.) There are also benefits for Ford.
Although the company was profitable in the third quarter, cost and quality problems still persist. There is also the electric car industry, which lost 1.33 billion dollars this quarter. Ford, on the other hand, postponed its $12 billion investment in electric cars, citing decreased customer expectations.
4. Airstrikes in Syria
The US military has launched an attack targeting areas in Syria that officials say are used by Iran’s Revolutionary Guard. US Defense Secretary Lloyd Austin said the “limited attack” was in self-defense and retaliation for attacks on US forces in the region.
The move comes at a time when the situation in the Middle East has reached an exciting level. The Israeli government is debating whether to launch a ground attack on Gaza in response to Hamas’ actions. 7 terrorist attacks. Similarly, Iran faces increasing scrutiny over its support for militant groups such as Hamas in Gaza and Hezbollah in Lebanon.
5. Oil Tycoon Earnings
Exxon Mobil and Chevron reported their quarterly earnings before the market opened on Friday. Despite high oil prices, the profits of oil giants decreased compared to the same period last year. Exxon’s results took a hit from higher costs in its chemicals business, and Chevron said profits from its growing business fell nearly 40% in the third quarter.
The results came shortly after the two companies announced their blockbuster deal. ExxonMobil has agreed to buy Pioneer Natural Resources and pipeline owner Denbury Inc. Meanwhile, Chevron recently agreed to buy Hess for $53 billion.
The stock market started the day with losses as major U.S. indices dipped, with Nasdaq and S&P 500 down less than 1%, and the Dow dropping 250 points. Amazon reported a strong performance with a 7.8% margin in Q3, while Ford faced ongoing challenges despite ending a costly strike.
The U.S. conducted a limited airstrike in Syria, citing self-defense. Exxon Mobil and Chevron reported lower profits despite high oil prices and announced significant acquisitions.