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Oil giants posted massive profits

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Last Week’s Highlights

Oil giants mass up big profits

Oil companies, such as Exxon Mobil Corp and Chevron Corp, have posted huge quarterly profits due to inflation caused by rising natural gas and fuel prices. Tension in world markets generated by conflicts between Russia and Ukraine has brought the overall economy to a worrisome place. Nevertheless, four of the world’s five largest oil companies already reported their quarterly results, totaling nearly $50 billion in net income. The magnitude of the profits caught the attention of friends and strangers alike, which is why several political groups have called for more taxes to be imposed on these companies to raise funds to offset the blow from the rising cost of energy globally.

Apple surges despite tech fall

The rising dollar has been a factor that has affected many companies that generate revenue overseas because they get less cash when converting it, and Apple is one of the companies that generate the most revenue overseas. Despite so many problems that are hitting the technology sector, the Apple company’s earnings beat Wall Street’s expected targets. Against all odds, the tech giant was saved by its oldest technology, its laptops, because they received a boost with the introduction this summer of the redesigned MacBook Air and MacBook Pro laptops. Analysts were forecasting Mac sales of close to $9.36 billion, however, this figure was exceeded and reached $11.5 billion. Apple’s quarterly revenue rose 8% to $90.1 billion, above estimates of $88.9 billion, and net income was $1.29 per share, beating analysts’ forecasts of $1.27 per share.

Coming Up This Week

Walmart and Netflix team up

Netflix faces very strong competition in the streaming market, which is why the company has focused on improving its content portfolio and sales strategies. This is how it reached an agreement with Walmart to sell merchandise related to Netflix’s streaming programs in more than 2,400 of its physical stores. Stranger Things, Squid Game, and The Witcher are some of the most popular series that are expected to feature clothing, games, toys, collectibles, and other items available for purchase. This deal will be beneficial for both companies because it will boost the visibility of Netflix shows and increase foot traffic to Walmart.

Adidas to lose millions to partnership break up

Adidas severed its relationship with Kanye West, following anti-Semitic comments by the American rapper. The German company will lose about 650 million dollars for abandoning Kanye’s Yeezy line. This news shocked the world and that is why Adidas shares fell 5.6% to $97.96. Despite the huge amount of losses the company may take, analyst Aneesha Sherman believes that Adidas’ decision to cut ties with West is “absolutely the right one.” While it is true that the apparel and footwear company’s stock will suffer in the short term, Sherman assures that it was “the right thing to do” in the long term because public opinion turned against the rapper, and being part of those conflicts would have been worse for Adidas.

MARKET NEWS

Wall Street closed this week sharply higher. Investors decided to use their money because of encouraging economic data and because US consumer spending increased more than expected during the month of September.

The vast majority of companies in the S&P 500 reported their results for the quarter, with 73% of them beating consensus estimates. With two days to go before the Federal Reserve meeting, all major US indices closed Friday’s session higher. The S&P 500 rose 2.46%, the Dow Jones gained 2.59%, and the Nasdaq Composite rose 2.87%.
Insurance provider Arch Capital is replacing Twitterin the S&P 500.

More Things to Sip On…

Amazon joins tech fall.
Intel shares rise despite weak outlook.
Twitter’s chief Twit fired top executives.

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