Earnings Previews: Barrick Gold, ConocoPhillips, Exelon, Peloton
The three major U.S. equity indexes closed lower on Monday. The Dow Jones industrials ended the day down 0.39%, the S&P 500 closed 0.75% lower and the Nasdaq retreated 1.03%. Ten of 11 sectors closed lower, led by communication services (−1.67%) and tech (−1.34%). Energy (0.6%) posted the only gain.
This week’s economic highlight is the Federal Open Market Committee (FOMC) meeting, which begins Tuesday and concludes with a press announcement on Wednesday. The FOMC is expected to tack on another 0.75% interest rate hike, raising the federal funds rate from a range of 3.00% to 3.25% to a new range of 3.75% to 4.00%. On Friday, the monthly report on nonfarm payrolls is expected to show a gain of 220,000 jobs, down from the September total of 263,000 new jobs. The headline unemployment rate is forecast to tick higher, from 3.5% to 3.6%.
All three major indexes traded close to flat about an hour after Tuesday’s opening bell.
After U.S. markets closed Monday, NXP Semiconductors reported lower-than-expected earnings per share (EPS) but beat the consensus revenue estimate. The Dutch chipmaker also issued downside revenue guidance for the current quarter. Shares traded up 3% early in Tuesday’s regular trading session.
Before markets opened Tuesday morning, BP hammered EPS estimates but missed the revenue estimate by about $6 billion (10%). Lower refining margins and lower prices for liquids got the blame. Shares traded up about 0.2% early Tuesday.
Enterprise Products beat estimates on both the top and bottom lines. Shares traded down about 0.8% Tuesday morning.
Marathon Petroleum also beat top-line and bottom-line estimates. The company has completed a $15 billion buyback program and raised its dividend by 30% to $3.00 annually. Shares traded up 2.5%.
Newmont missed consensus estimates on both the top and bottom lines. The gold miner reaffirmed its fiscal year production estimate of 5.9 million ounces of gold. Shares traded down about 1%.
Sofi Technologies missed the consensus EPS estimate but beat on revenue. The decentralized finance company also issued upside revenue guidance for the fiscal year. Shares traded up 14.8% Tuesday morning.
Uber also missed on profit but beat on revenue. The ride-sharing giant issued strong guidance on gross bookings and adjusted EBITDA. Shares traded up nearly 16%.
After markets close Tuesday, Airbnb, AMD, Devon Energy and Energy Transfer will report quarterly results. Wednesday morning, Cenovus Energy, CVS Health, Norwegian Cruise Lines and Paramount Global are on deck to report quarterly results. Look for Albemarle, Marathon Oil, Qualcomm and Robinhood to post their quarterly results later on Wednesday.
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Here is a preview of four companies set to report quarterly results first thing Thursday morning.
Over the past 12 months, the price of gold has dipped by about 7.5%. Barrick Gold Corp. (NYSE: GOLD) has seen its share price slide by more than 18% over the same period. The company reported preliminary results last month, and the stock price threatened to set a new 52-week low. The price of gold fell by about $150 an ounce during the quarter, and Barrick’s production was lower sequentially. Barrick’s realized price for copper was 7% to 9% below the industry average, and production costs were higher.
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