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Earnings season: Oil, Apple, and GDP Look Up

Earnings season: Oil, Apple, and GDP Look Up

Oil Stocks Pull Hefty Profits In Monster Q3 2022 Earnings

They say data is the new oil, but you wouldn’t think it the way that oil companies have bested analyst estimates in recent quarters.

Exxon and Chevron, two of America’s oil giants, brought in billions in profit. How much profit are we talking?

  • Exxon brought in a quarterly adjusted profit of $18.7 billion, a step above what analysts expected.
  • The company made a total of $112 billion in revenue, handily beating the Street’s $105 billion estimate.
  • Exxon’s company profit nearly eclipsed the profit of Apple — that’s saying something, considering Apple is America’s most valuable company.
  • Chevron, though smaller than Exxon, shared in the boom times with its own $10.8 billion payday on $66.6 billion in revenue.

Naturally, money like this turns heads, especially during the highest inflation in decades. However, oil prices were lower than they historically were throughout the 2010s — and though that was great for consumers, lower prices took a bite out of the proceeds that oil conglomerates needed to reinvest in infrastructure.

After all, you can’t just go outside and decide, ‘today I’m going to drill for oil.’ It is an involved and expensive process, and investors on The Street have made it clear to American oil companies that they should bask in these boom times — no matter how much political pressure or backlash they receive.

Exxon danced to a 2.7% gain on the day, while Chevron advanced 1.5% today.

Let’s go back to the source: A War of Many Fronts in Europe.

Apple Rounds Out Big Tech Earnings

After disappointing forecasts from AlphabetMeta, and AmazonApple had to step in. The company’s earnings rounded out the Big Tech earnings, leaving investors feeling optimistic.

  • The Nasdaq-100 rallied more than 3% on the day, erasing yesterday’s losses, after Apple handily beat analyst estimates. The Nasdaq’s big gain came courtesy of Apple stock, which had its best day since 2020, rallying 7%.
  • The company posted a record revenue of $90.1 billion in the quarter — and its profit came to $20.7 billion. Apple’s sales grew 8% YoY, aided by a 25% jump in Mac computer sales.

Analysts suggested Apple was ‘safer’ than its peers given it resilience during the global tech downturn. However, in spite of that ‘safeness’, the company declined to give an outlook for the coming Holiday season quarter — its first quarter of the year.

Q2 Earnings Results: This Big Tech Triple Threat Offers Optimism Amid Recession Fears.

What Recession? America’s GDP Bounces In Q3 2022

Politicos and economists spent most of 2022 fretting about a recession that no longer exists.

That’s right. The United States economy has said, “Recession begone,” in its latest GDP readout for Q3 2022. In it, the U.S. economy struts its stuff — the GDP rose 2.6%, faster than analysts expected.

That erased America’s short lived recession, during which GDP fell 2.2% in Q1 and Q2 2022, which marks the definition of a technical recession.

However, it has not rid itself of those recession fears — they will be high and mighty in the months ahead, especially after the Holiday season. Expectations are high that the U.S. will face a recession early next year as interest rates continue to rise, potentially turning growth on its head.

In spite of that, America will learn to reconcile that its economy is doing well, while the U.S. markets are down nearly 20% on the year. The S&P 500 rose nearly 4% this week.

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