Earnings Previews: BP, Enterprise Products, Marathon Petroleum, Newmont

The three major U.S. equity indexes closed mixed on Thursday, with the S&P 500 and the Nasdaq hammered by weak reports from tech megacaps. The Dow Jones industrials ended the day up 0.61%, the S&P 500 closed 0.61% lower and the Nasdaq fell by 1.63%. Five of 11 sectors closed higher, led by industrials (1.14%) and financials (0.75%). Communications services and tech trailed (down 4.12% and 1.25%, respectively). The real estate sector closed flat.

The monthly report on personal consumption expenditures (PCE) was released before U.S. markets open Friday morning. Income rose by 0.4%, above expectations and equal to the August reading. Spending rose 0.6%, also above expectations and equal to the August report.

All three major indexes opened higher Friday morning.

After U.S. markets closed Thursday, Amazon reported adjusted earnings per share (EPS) that beat estimates by a penny. The e-commerce behemoth missed the consensus revenue estimate by about $370 million. Amazon also issued downside revenue guidance well below the consensus estimate. Shares traded down about 10% shortly after Friday’s opening bell.

Apple reported beats on both the top and bottom lines. Quarterly services revenue was short of estimates, as were iPhone 14 sales and iPad revenue. CEO Tim Cook said the company would slow its new hiring. The stock traded up about 4.7% early Friday.

Intel beat the consensus EPS estimate but missed on revenue. Demand slowed more, and to more market sectors than expected. But the earnings number outweighed everything else, and shares traded up more than 8% Friday morning.

T-Mobile missed the revenue estimate but beat on earnings. The mobile services provider added 1.6 million net subscribers in the quarter and announced a $14 billion buyback program with $2 billion in repurchases to come by end of this year. Shares traded up about 7.5%.

U.S. Steel beat estimates on both the top and bottom lines. Shares traded down by about 3.6% early Friday.

Before markets opened Friday morning, Chevron hammered estimates on both the top and bottom lines. Higher prices for crude oil and refined products led to higher margins. No surprises there. Chevron is expected to raise its capital spending by around 20% next year to around $18 billion. Shares traded up about 1.5%.

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Exxon Mobil, like Chevron, blasted consensus earnings and revenue estimates. The energy giant posted profits of nearly $20 billion, its best quarterly total ever. Exxon has no plans to boost capital spending significantly next year. Shares traded up about 1.5% Friday morning.

NextEra Energy beat both top-line and bottom-line estimates. It reaffirmed fiscal 2022 EPS guidance and issued EPS guidance for 2023. The stock traded up about 2.7% in early action Friday.

No notable earnings reports are due out Friday afternoon. Before U.S. markets open on Monday, coal miner Alliance Resources and chipmaker ON Semiconductor will report quarterly results. Look for reports from NXP Semiconductors, Sofi Technologies and Uber late Monday or early Tuesday.

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