- The stocks are facing a week of losses.
- Amazon’s profit margin is impressive.
- The US says it has hit Iranian targets in Syria.
Here are the key news investors need to start the trading day:
Heading into Friday, stocks are on track for a losing week. The three major US indices also had a particularly difficult day on Thursday: both the Nasdaq and the S&P 500 lost more than 1% and the Dow fell by 250 points. The market is chewing on key earnings from Amazon, Ford and Intel while preparing for another set of quarterly results next week. In terms of data, Friday brings the latest version of the Federal Reserve’s most popular inflation indicator, personal consumption expenditure (PCE), for September. Follow live market updates.
Andy Jassy, CEO, Amazon
CNBC
Amazon’s operating margin is slightly higher these days. The e-commerce and cloud giant said it posted a third-quarter margin of 7.8%, its best result since reporting an 8.2% margin in the first quarter of 2021. CEO Andy Jassy’s cost-cutting mission is a big part of it. And he’s not done yet, as Amazon is slowing down a bit on staffing levels. The market also seems to like what it sees from Jassy. Amazon shares soared in over-the-counter trading.
Ford Motor Co. fuel-powered F-150 trucks are produced at its truck plant in Dearborn, Michigan, on September 20, 2022.
Jeff Kowalsky | AFP | Getty Images
It’s been an eventful week for Ford. The company became the first of the Detroit Three automakers to negotiate a deal with the United Auto Workers union, ending a nearly six-week work stoppage that cost the company $1.3 billion. (Negotiations between the UAW and GM and Stellantis continue.) Then came Ford’s profits. Although the company turned a profit in the third quarter, cost and quality problems remained evident. Then there’s the electric vehicle business, which posted a loss of $1.33 billion in the third quarter. Ford, in turn, postponed $12 billion in investments in electric vehicles, citing weaker customer demand than hoped.
U.S. Secretary of Defense Lloyd Austin gives a press conference during the NATO Council Defense Ministers meeting at NATO headquarters in Brussels on October 12, 2023.
Simon Wohlfahrt | AFP | Getty Images
US forces launched airstrikes in Syria, targeting areas that officials said were used by Iran’s Revolutionary Guard. US Defense Secretary Lloyd Austin said the “narrowly targeted” attacks were carried out in self-defense in retaliation for attacks on American forces in the region. The move comes at a time when the Middle East is nearing a boiling point. The Israeli government is considering launching a ground invasion of the Gaza Strip in response to the October 7 Hamas terrorist attacks. Iran also faces even harsher scrutiny over its support of militant groups such as Hamas in Gaza and Hezbollah in Lebanon. Follow live war updates.
A Chevron gas station is seen on October 23, 2023 in Austin, Texas.
Brandon Bell | Getty Images News | Getty Images
Exxon Mobil and Chevron both reported quarterly results before the market closed on Friday. Each of the oil giants posted a sharp decline in profits compared to the same quarter last year, even though oil prices were higher. Exxon’s results were hurt by higher costs in its chemicals business, and Chevron said profits at its upstream business fell nearly 40% during the quarter. The results come shortly after both companies announced blockbuster deals. Exxon has agreed to buy shale company Pioneer Natural Resources and pipeline operator Denbury. Meanwhile, Chevron recently agreed to acquire Hess for $53 billion.
—CNBC’s Lisa Kailai Han, Annie Palmer, Michael Wayland, John Rosevear, Katrina Bishop, Ruxandra Iordache and Portal contributed to this report.
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