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 higher in Tuesday’s premarket session.
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 essentially flat in Tuesday’s premarket.
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 0.3% in the premarket.
Enterprise Products beat estimates on both the top and bottom lines. Shares traded up about 0.4% early Tuesday.
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 more than 1%.
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 up about 1.5%.
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 more than 16% in Tuesday’s premarket.
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 about 10%.
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.
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