Amazon shares fall, oil earnings, home sales and more: Friday's 5 things to know
Traders will also have an eye on a slew of economic reports including income & spending, pending home sales and consumer sentiment
AWS could spinoff Amazon, operate as its own company: Jeff Sica
Circle Squared Alternative Investments CEO Jeff Sica discusses Amazon and Apple earnings projections on 'The Claman Countdown.'
Here are the key events taking place on Friday that could impact trading.
AMAZON FORECAST: Shares of the ecommerce giant traded 13% lower in the premarket after the company reported weaker-than-expected revenue and disappointing projections for the current quarter.
The company did return to profitability over the summer after two consecutive quarters of losses.
Amazon reported revenue for the three months of $127.1 billion, helped by Amazon's annual Prime Day sales event.
AMAZON SHOPPERS CAN USE VENMO FOR FIRST TIME AHEAD OF HOLIDAY SHOPPING
The logo of Amazon is seen at the company logistics center. (REUTERS/Pascal Rossignol / Reuters)
Still, the number was shorter than what analysts surveyed by FactSet predicted, who were expecting a third-quarter revenue of $127.4 billion.
Amazon said it expects revenue for the fourth quarter to be between $140 billion and $148 billion.
Analysts were expecting $155.1 billion in revenue.
FRIDAY EARNINGS: Big energy will be the focus with integrated oil and gas giants ExxonMobil and Chevron reporting quarterly results. Also watch for numbers from biopharmaceutical firm AbbVie, cable giant Charter Communications and consumer goods maker Colgate-Palmolive.
ExxonMobil and Chevron report quarterly earnings on Friday morning. (iStock / iStock)
INCOME & SPENDING: The Commerce Department releases the September numbers. Economists surveyed by Refinitiv anticipate spending to rise 0.4% month-over-month, matching August’s growth. Personal income, in the meantime, is expected to rise 0.3% for the third month in a row.
PRESIDENT BIDEN SAYS AMERICA ISN'T EXPERIENCING 'RECORD INFLATION ANYMORE'
That brings us to the PCE Price Index, an inflation gauge that’s been growing in popularity. There is no estimate for the headline number, which rose 0.3% month-over-month in August and was up 6.2% annually (the Fed bases its 2% inflation target on the annual change in the PCE Price Index).
The Core PCE Price Index, which factors out volatile food and energy costs, is expected to rise 0.5% in September, slightly less than August’s 0.6% increase. The year-over-year change in the Core PCE Price Index, which is the Fed’s preferred measure of inflation, is anticipated to spike to 5.2%.
PENDING HOME SALES: Economists surveyed by Refinitiv are looking for a drop of 5.0% in September, the tenth decline in the last 11 months as buyers struggle with surging borrowing costs and high prices. That would leave the index at its lowest level in more than two years.
A sale pending sign is displayed outside a residential home for sale in East Derry, N.H. (AP Photo/Charles Krupa, File / AP Newsroom)
MORTGAGE RATES TOP 7%, HIGHEST SINCE 2002
CONSUMER SENTIMENT: The University of Michigan’s final index for October is expected to hold steady at the preliminary reading of 59.8 from two weeks ago, which marked the fourth straight monthly increase from an all-time low of 50.0 in June when record-high gasoline prices had inflation fears at a fever pitch.
