The three major U.S. equity indexes closed solidly higher on Friday. The Dow Jones industrials ended the day up 2.59%, the S&P 500 closed 2.46% higher and the Nasdaq jumped by 2.87%. Ten of 11 sectors closed higher, led by tech (4.52%) and communication services (2.98%). Consumer cyclicals (−0.3%) posted the only loss.
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 lower about 90 minutes into Monday’s regular trading session.
Before markets opened Monday morning, coal miner Alliance Resources missed the consensus revenue estimate and the consensus GAAP earnings per share (EPS) estimate. The stock traded down about 2.7% early Monday.
ON Semiconductor beat consensus estimates on both the top and bottom lines and issued inline guidance for the fourth quarter. Shares traded down 6.0%.
After U.S. markets close Monday or before they open Tuesday, NXP Semiconductors, Sofi Technologies and Uber are on deck to report quarterly earnings. First thing on Tuesday, BP, Enterprise Products, Marathon Petroleum and Newmont are on deck to report quarterly results. Then, later in the day, Airbnb, AMD, Devon Energy and Energy Transfer will share their results.
Here is a preview of four companies on deck to report quarterly results before markets open on Wednesday.
Cenovus Energy Inc. (NYSE: CVE) is sometimes referred to as a mini-major integrated oil company. Based in Calgary, the company owns 50% of a refinery near Salt Lake City and 50% of another near Amarillo, Texas, in addition to production assets in the oil sands region. Cenovus’s share price has risen by more than 69% over the past 12 months. Thanks primarily to its refining and marketing operations, the company’s gross margins are nearly 50%, better than Exxon, Chevron, BP and Petrobras. Only Norway’s Equinor, with a gross margin of more than 62%, tops Cenovus.
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