Stock futures are receiving a much-needed boost on Friday, thanks to solid earnings reports from tech giants Amazon.com and Intel. After experiencing a decline in the last two trading sessions, with the S&P 500 falling by 2.6% and the Nasdaq Composite slumping by 4.1%, investors are looking for positive news. Additionally, Wall Street will closely monitor the release of the Federal Reserve's preferred inflation gauge, expected before markets open today.
Positive Outlook for Amazon.com (AMZN)
E-commerce giant Amazon.com (AMZN) has exceeded expectations with its third-quarter earnings report. The company reported earnings of 94 cents per share, significantly surpassing analysts' consensus of 58 cents per share. Furthermore, Amazon generated $143.1 billion in sales, representing a 13% increase from the previous year. While Amazon Web Services revenue rose by 12%, which aligned with Wall Street estimates, the company expects its fourth-quarter revenue to range between $160 billion and $167 billion, just shy of analysts' projections of $167.1 billion. Nonetheless, these impressive results have caused the stock to rise by 5.1% in premarket trading.
Intel's Stellar Performance (INTC)
Semiconductor giant Intel (INTC) has also reported better-than-expected results for the third quarter and issued an upbeat profit guidance. Intel predicts fourth-quarter adjusted profit of 44 cents per share and revenue ranging from $14.6 billion to $15.6 billion. The midpoint revenue forecast is higher than the Wall Street consensus of $14.4 billion. Moreover, Intel's announcement of signing up more customers for its chip manufacturing services has further boosted investor confidence, resulting in a significant stock jump of 7.8%.
Investors are eagerly watching these two companies as their positive earnings reports contribute to optimism in the market, potentially reversing the recent downward trend.
Ford Motor Reports Weaker-Than-Expected Q3 Earnings
Ford Motor (F) announced disappointing third-quarter earnings and withdrew its full-year guidance due to the tentative labor agreement reached with the United Auto Workers. The company's electric-vehicle business, called Model e, suffered a loss of $1.3 billion on sales of 36,000 vehicles, resulting in a per-vehicle loss of approximately $36,000. As a result, the auto maker's shares declined by 2.7%.
Solar Sales Slowdown Expected to Continue for Enphase Energy
Enphase Energy (ENPH) projected that the current slowdown in solar-product sales would persist until the first quarter of 2024, causing the company's stock to drop by 19% in premarket trading. While their third-quarter earnings slightly surpassed estimates, Enphase's fourth-quarter revenue outlook fell well below Wall Street's expectations. The company expects fourth-quarter revenue to range from $300 million to $350 million, significantly lower than the estimated $579 million.
Dexcom Exceeds Expectations and Raises Revenue Forecast
Dexcom (DXCM), known for its glucose monitoring systems, reported third-quarter earnings that comfortably beat expectations and raised its revenue forecast for 2023. The company's shares saw a significant surge of 16%.
Deckers Outdoor Outperforms with Strong Earnings and Raised Sales Forecast
Deckers Outdoor (DECK), the manufacturer of Ugg boots and Hoka sneakers, announced better-than-expected fiscal second-quarter earnings and revenue. Additionally, the company raised its fiscal-year sales forecast to around $4.025 billion. Deckers attributed this success to the strong demand for its Hoka and Ugg brands. As a result, Deckers' shares rose by 7.6% in premarket trading.
Upcoming Earnings Reports
On Friday, earnings reports are expected from Exxon Mobil (XOM), Chevron (CVX), AbbVie (ABBV), Charter Communications (CHTR), Colgate-Palmolive (CL), Phillips 66 (PSX), and LyondellBasell Industries (LYB).
