Top 5 Market Insights to Know Before Trading Begins
Stay informed with the latest market updates including Exxon’s earnings forecast, jobless claims data, and key Federal Reserve speeches shaping today’s trading landscape.
Market highlights for October 5, 2023
As stock futures dip ahead of critical economic data on initial jobless claims, Exxon Mobil anticipates a significant earnings boost driven by rising oil prices. Here’s a concise briefing for investors preparing for today’s market movements.
1. Exxon Mobil Projects Earnings Growth Fueled by Rising Oil Prices
Exxon Mobil (XOM) forecasts a $2.1 billion increase in third-quarter earnings, attributed to stronger oil prices and improved refining margins. Analysts estimate earnings per share around $2.33, aligning with expectations. However, a downturn in Exxon’s chemicals segment could temper overall gains, reflected by a roughly 1% decline in pre-market share prices.
2. Stock Futures Decline Ahead of Initial Jobless Claims Report
Pre-market stock futures are trending downward as investors await the initial jobless claims data for the week ending September 30. Forecasts suggest claims will rise to 210,000 from 204,000 the previous week. This data follows a softer-than-expected private sector job growth of 89,000 in September and precedes tomorrow’s comprehensive U.S. employment report.
3. Clorox Shares Drop After Lowering Earnings Forecast Due to Cyberattack
Clorox Co. (CLX) experienced a nearly 3% decline in pre-market trading after revising its earnings outlook downward. The company cited a cyberattack disclosed in August as the cause of operational disruptions. Projected earnings now range from break-even to a loss of $0.40 per share, with revenues expected between $1.25 billion and $1.34 billion, falling short of analyst expectations of $1.29 earnings per share on $1.77 billion revenue.
4. Rivian Shares Tumble Following Announcement of $1.5 Billion Convertible Bond Offering
Shares of Rivian Automotive (RIVN) dropped nearly 9% in pre-market trading after revealing plans to issue $1.5 billion in convertible bonds. Investors often view such offerings cautiously due to potential dilution of share value. The bonds will mature in October 2030, allowing holders to convert their bonds into cash or company stock.
5. Federal Reserve Officials Scheduled to Speak Today
Key Federal Reserve figures will address the market today: Cleveland Fed President Loretta Mester at 9 a.m. ET during a payments symposium, San Francisco Fed President Mary Daly at noon ET, and Fed Vice Chair Michael Barr at 12:15 p.m. ET discussing cyber risks in banking. Additionally, the U.S. trade deficit for August is expected to narrow to $59.5 billion from $65.0 billion in July, with data releasing at 8:30 a.m. ET.
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