Amazon Earnings Propel Nasdaq Higher; S&P 500 Slips Into Correction

S&P 500 Gains and Losses Today

1 hr 27 min ago

Here are the stocks in the S&P 500 that gained and lost the most today, and the stories behind the market movers.

Dow Falls More than 350 Points on Declining Consumer Sentiment

2 hr 31 min ago

The Dow Jones Industrial Average fell 366 points, or 1.1%, after the latest consumer sentiment survey showed inflation expectations remain elevated, adding pressure on the Federal Reserve to keep interest rates high. 

The index declined for the second straight week, with Friday’s losses pushing it down about 2.1% for the week. The Dow has declined around 9% since hitting its recent high on Aug. 1, putting it very close to a correction. 

Intel (INTC) was the index’s bright spot, with its shares gaining 9% after it beat earnings expectations and raised its fourth-quarter outlook, forecasting revenue will increase 8% and earnings will triple from last year.

Shares of Apple (AAPL) increased by 0.8% ahead of an event scheduled for Monday in which the tech giant is expected to unveil new MacBook Pros and iMacs featuring an updated M3 processor. 

Honeywell (HON) shares gained 0.5% after it beat profit estimates on an 18% boost in its aerospace business in the third quarter.

Chevron (CVX) shares plummeted 6.7% as higher costs and lower oil prices led the oil giant to report profits that came in below forecasts despite revenue topping estimates.

JPMorgan Chase (JPM) shares dove 3.6% after the bank disclosed CEO Jamie Dimon’s intention to sell one million shares, the first time the long-time leader will offload company stock.

-Terry Lane

Colgate-Palmolive Earnings Point to Resilient Consumers

3 hr 12 min ago

Colgate-Palmolive (CL) topped earnings estimates and raised its full-year outlook as shoppers continued to spend despite higher prices. 

The consumer goods company reported third-quarter earnings of $708 million, or 86 cents a share, above the 80 cents a share analysts were expecting. Net sales grew 10.5% to $4.9 billion despite organic sales volume declining. Higher prices made the difference, accounting for nearly all of the company’s revenue growth. 

Colgate-Palmolive is the latest company to benefit from resilient consumers, who are continuing to spend freely despite higher prices and higher interest rates. Earlier in the week, Coca-Cola (KO) said higher prices boosted its top and bottom lines. And earlier this month, PepsiCo (PEP) said declining unit volume in the third quarter was more than offset by price hikes.

Shares of Colgate-Palmolive jumped Friday morning before falling with the broader market to trade down about 1.7% shortly before the close. 

Ford Shares Tumble Amid Concerns About EV Slowdown and Higher Costs Following UAW Strike

4 hr 8 min ago

Ford (F) shares tumbled over 11% in intraday trading Friday after the automaker’s third-quarter earnings fell short of analysts’ expectations, as the company slows electric vehicle (EV) investments and the tentative United Auto Workers (UAW) deal threatens to increase future labor costs.

Ford earnings by the numbers

• Net income: $1.2 billion vs. $1.7 billion expected, according to analyst estimates compiled by Visible Alpha
• Adjusted earnings per share: $0.39 vs. $0.44 expected
• Revenue: $43.8 billion vs. $42.7 billion expected

Ford reached a tentative deal with the UAW on Wednesday. Analysts expect the new contract to be ratified by the union, though they warned that it could increase future labor costs, with JPMorgan analysts estimating a $1.5 billion annual increase in costs.

In its earnings call, Ford noted that the company is “slowing down several investments” in its electric vehicle (EV) transition, taking a market-based approach similar to GM.

The company also withdrew its full-year guidance, citing uncertainty caused by the strike. Earlier in the week, General Motors (GM) also pulled its full-year guidance.

-Naomi Buchanan

ExxonMobil’s Profit Plunges From 2022 Record on Lower Oil, Gas Price Realizations

5 hr 15 min ago

ExxonMobil Corp.’s (XOM) third-quarter profit fell by more than half of its record high last year on a decline in oil and gas price realizations.

The energy giant earned $9.07 billion in the period, a 54% drop from the same quarter in 2022. Earnings per share (EPS) came in at $2.27, below analysts’ forecasts. Revenue slid 19% to $90.76 billion.

ExxonMobil said that the profit slump was driven by a nearly 60% cut in natural gas price realizations and a 14% decrease in oil price realizations.

However, refinery throughput rose to 4.2 million barrels a day, the most since Exxon merged with Mobil 24 years ago.

ExxonMobil shares declined more than 1.6% Friday afternoon, putting them down 4% year-to-date.

-Bill McColl

Solar Stocks Sink on Enphase Energy’s Lackluster Outlook

6 hr 1 min ago

Enphase Energy (ENPH) was the worst-performing stock in the S&P 500 midday Friday after the solar company issued current-quarter guidance that fell far short of analysts’ estimates. 

The company projected fourth-quarter sales in a range of $300 million to $350 million, well below the more than $500 million analysts expected. Third-quarter revenue of $551 million also came up short of expectations.

Enphase shares fell more than 15% to a three-year low on the tepid outlook. Shares of peers SolarEdge Technologies (SEDG) and First Solar (FSLR) fell 6% and 3%, respectively. 

Intel Shares Soar on Earnings Beat, Cost Cuts

6 hr 47 min ago

Shares of Intel (INTC) jumped 10% Friday after the chipmaker reported better-than-expected third-quarter sales and earnings. 

Intel earnings by the numbers

• Net income: $1.7 billion vs. $1 billion expected, according to analyst estimates compiled by Visible Alpha
• Adjusted earnings per share: $0.41 vs. $0.22 expected
• Revenue: $14.2 billion vs. $13.5 billion expected

It’s Intel’s seventh consecutive quarter of declining revenue, but cost cuts helped offset slumping sales. The company’s operating expenses fell nearly $700 million year-over-year, as did its cost of sales, putting it on track to meet its goal of $3 billion in savings this year. 

Chevron Shares Sink on Earnings Miss

7 hr 45 min ago

Shares of Chevron Corp. (CVX) sank 5% Friday after its third-quarter earnings missed analyst estimates. reporting third-quarter adjusted net income of $5.7 billion, or $3.05 a share, falling short of analyst estimates. 

Chevron earnings by the numbers

• Net income: $5.7 billion vs. $6.9 billion expected, according to analyst estimates compiled by Visible Alpha.
• Adjusted earnings per share: $3.05 vs. $3.67 expected
• Revenue: $51.9 billion vs. $48.7 billion expected

Narrower margins weighed on profitability, especially in Chevron’s overseas refining business, where profit plummeted to $307 million from $1.2 billion in the same quarter last year.

The disappointing earnings come just days after the company announced it would buy Hess Corp. (HES) for $53 billion, the second largest acquisition announced this year after competitor ExxonMobil’s (XOM) nearly $60 billion acquisition of Pioneer Natural Resources (PXD). Hess shares followed Chevron’s lower Friday.

AWS Strength, Growing Ad Revenue Bolster Amazon’s Q3 Results

8 hr 36 min ago

Amazon (AMZN) outpaced analysts’ forecasts for profit and revenue growth in the third quarter as Amazon Web Services (AWS) revenue climbed following a period of deceleration in recent quarters.

The company said overall revenue for the latest quarter was $143.1 billion, a 13% increase from the year-ago period. Net income for the quarter came in at $9.9 billion, or 94 cents per share, more than tripling on a year-over-year basis.

AWS, Amazon’s highly lucrative cloud computing platform, is a prime driver of revenue for the company but has experienced slowing sales in recent quarters. Third-quarter AWS sales rose 12% to $23.1 billion, on par with analysts’ expectations.

Notably, revenue at Amazon’s nascent ads business totaled $12.1 billion, a 26% increase over the year-ago period, making it the company’s fastest-growing business line.

Amazon shares, which had gained more than 42% year-to-date as of Thursday’s close, jumped 8% Friday morning.

-Nathan Reiff

Stocks Making the Biggest Moves Premarket

9 hr 43 min ago

DexCom Inc. (DXCM): Shares of the glucose monitoring system maker popped about 17% after its quarterly earnings beat Wall Street estimates by a wide margin and the company boosted its full-year revenue outlook. Shares of Insulet (PODD), which makes insulin infusion systems for people with diabetes, jumped 9%. The two stocks have been battered this year by fears that GLP-1 agonists like Ozempic and Wegovy will have long-term impacts on the prevalence of diabetes. 

Intel Corp. (INTC): Shares rose 7% after it reported a smaller-than-expected earnings decline in the third quarter, an outcome it attributed to “operating leverage and expense discipline.”

Amazon.com Inc. (AMZN): Shares rose nearly 6% after it reported a 13% increase in revenue last quarter, helping it beat Wall Street’s earnings estimates. 

Sanofi SA (SNY): Shares of the French pharmaceutical giant sank 16% after it said it expected earnings to fall next year as it invests in research and development and seeks to spin off its consumer care unit.

Ford Motor Co. (F): Shares slipped almost 3% after the carmaker’s third-quarter earnings fell short of analyst estimates and it withdrew its full-year guidance, citing a tentative deal recently reached with the striking United Auto Workers union. 

Chevron Corp. (CVX): Shares of the oil company fell more than 2% after its third-quarter earnings missed estimates as narrower margins and lower commodity prices weighed on revenue and profit.

September PCE Inflation In Line With Expectations

10 hr 9 min ago

There were few surprises in September’s personal consumption expenditures data, a welcome sign to markets.

The PCE price index rose 0.4% last month, in line with expectations. The core price index, which excludes volatile food and energy prices, ticked up 0.3%, an expected acceleration from August’s 0.1% increase.

Personal spending grew 0.7%, outpacing inflation and topping economists’ estimates. The sharp increase in spending reinforces earlier data suggesting consumers are continuing to spend at dizzying rates, defying economists’ and the Fed’s expectations that higher rates would slow consumption.

Futures Mixed Ahead of Inflation Data

10 hr 42 min ago

Futures contracts connected to the Dow Jones Industrial Average were almost 0.2% lower in premarket trading.

S&P 500 futures were up 0.2%.

Nasdaq 100 futures gained 0.6% as tech rebounded slightly from its two-day rout.