My top 10 things to watch Friday, Oct. 6
1. U.S. stock futures are under pressure Friday morning, with the S&P 500 falling nearly 1% on the back of a stronger-than-expected jobs report for September. The U.S. economy adds 336,000 jobs last month, well ahead of a Dow Jones consensus estimate for a 170,000 increase, the Labor Department says in its monthly nonfarm payrolls report. At the same time, bond yields remain elevated, with that of the 10-year Treasury hovering above 4.7%.
2. Exxon Mobil (XOM) is nearing a roughly $60 billion deal to buy Club holding Pioneer Natural Resources (PXD), The Wall Street Journal reports Friday, citing people familiar with the matter. But the Journal ran a similar story in April, which CEO Scott Sheffield denied on “Mad Money.” “A deal could be sealed as soon as in the coming days, though it is still possible there won’t be one,” the Journal writes.
3. HSBC raises its price target on Club name Constellation Brands (STZ) to $290 a share, up from $280, while reiterating a buy rating on the stock. The firm cites Constellation’s quarterly operating performance, which was bolstered by strong demand for premium beer. Despite delivering an earnings beat and raising its full-year guidance on Thursday, Constellation stock is down hideously, by more than 3%.
4. Shares of Dutch health-technology firm Philips (PHG) are down 7% after the U.S. Food and Drug Administration says the company’s testing and analysis of its recalled sleep apnea devices were inadequate to “fully evaluate the risks.”
5. Tesla (TSLA) cuts the prices of some Model 3 and Model Y electric-vehicle models after the company’s third-quarter deliveries miss on expectations.
6. Stifel lowers its price target on packaged food maker Conagra Brands (CAG) to $29 a share, down from $36, while maintaining a hold rating on the stock. The firm cites Conagra’s “strong profit performance” in its fiscal first quarter, while noting an organic sales decline. Meanwhile, the company’s snacks business continues to grow despite the prevelance of Novo Nordisk’s (NVO) Ozempic weight-loss drug, while gross margins were very strong because the supply chain is clicking on all cylinders.
7. Barclay’s raises its price target on Domino’s Pizza (DPZ) to $335 a share, up from $320, while reiterating an underweight, or sell, rating on the stock. The firm says near-term headwinds persist for the pizza maker going into its third quarter results on Oct. 12.
8. Citigroup reiterates a sell rating on American Express (AXP), even as it raises its price target on the stock to $148 a share, up from $143. The firm expects consumer-finance companies to see additional net interest margin compression in the near term due to higher interest rates. American Express is set to report third-quarter results on Oct. 20.
9. Levi Strauss (LEVI) misses on quarterly revenue estimates due to weaker shopping trends at department stores and big-box retailers, while lowering its full-year sales outlook. Shares are down around 1.5% in premarket trading.
10. Club holding Walt Disney (DIS) is set to break out its financials on ESPN, according to Wolfe Research. The firm’s findings suggest ESPN can produce $3 billion in direct-to-consumer profits over time, with earnings before interest and taxes (EBIT) “stabilization in the interim via ESPN+ growth.”
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