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Wall Street Today | Fossil Fuel Profits Roar Back, Producing 10% of S&P 500 Earnings

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Moomoo Recap US wrote a column · Jan 25, 2023 18:38
Wall Street Today | Fossil Fuel Profits Roar Back, Producing 10% of S&P 500 Earnings
MACRO
Is a US Recession Near? Making the Call Is Trickier Than Ever
Most economists predict a downturn in the US this year, precipitated by the Federal Reserve’s barrage of interest-rate hikes aimed at combating inflation. Among those surveyed by Bloomberg, the consensus is that the effects of tighter credit on corporate investment and hiring, as well as consumer spending, won’t translate into a contraction in gross domestic product until the second quarter. Yet many anticipate the damage—at least from a jobs perspective—will be slight compared with earlier episodes.
Debt-Limit Showdown Splits Credit Raters on US Downgrade Trigger
Moody’s Investors Service, S&P Global Ratings and Fitch Ratings are all game-planning ahead of the time later this year when the Treasury Department will run out of cash if lawmakers don’t boost the ceiling. Economists and Wall Street analysts see that happening sometime in the third quarter, after the Treasury last week started accounting maneuvers to avoid breaching the ceiling.
"If for whatever reason they get beyond the X-date and stop paying obligations – whatever they are – that would not be consistent with a AAA rating," Richard Francis, senior director at Fitch Ratings, said in an interview. “And if they miss a principal or interest payment, that would be a default.”
SECTORS
Fossil Fuel Profits Roar Back, Producing 10% of S&P 500 Earnings
Oil and gas companies’ contribution to the S&P 500 Index’s earnings has nearly doubled from a year ago as high commodity prices and spending discipline spur record profits while sectors like technology face recessionary headwinds.
Analysts expect energy companies’ earnings to stay strong. Even though oil and gas prices have pulled back since the early phases of Russia’s invasion of Ukraine, they’re still higher than they’ve been for much of the past decade.
COMPANY
Tesla Seeks Rapid Output Boost as Profit Beats Estimates
$Tesla(TSLA.US)$ reported adjusted earnings of $1.19 a share, besting the $1.12 a share average of analysts’ compiled by Bloomberg. The EV market leader said it would increase output “as quickly as possible” — in line with previous guidance for average annual growth of 50% over multiple years.
“In the near term, we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap,” it said in a statement to shareholders.
Chevron to Buy Back $75 Billion in Stock After Record Profit
$Chevron(CVX.US)$ plans to buy back $75 billion of shares and increase dividend payouts after a year of record profits that evoked angry denunciations from politicians around the world as soaring energy prices squeezed consumers.
The stock repurchase program will kick in April 1 and will be triple the size of the previous authorization unveiled in early 2019, the company said in a statement Wednesday. The program is equivalent to almost one-fourth of the company’s market value and five times the current level of annual buybacks.
Boeing Reports Quarterly Earnings Fall, Plans to Increase Jet Production
$Boeing(BA.US)$ reported another quarterly loss but maintained plans to increase jet production and deliveries this year despite lingering supply-chain challenges. The company reported its fourth annual loss in a row as it wrestles with commercial-jet production costs that are higher than planned.
>>Read more
IBM Posts Biggest Annual Sales Increase in More Than a Decade, Announces Layoffs
After posting lowest sales total since 1987 last year, $IBM Corp(IBM.US)$ manages to increase sales by more than 6%, and expects more growth in 2023. The company also is reportedly laying off about 1.5% of its workforce, or about 3,900 employees.
>>Read more
Levi Strauss Beats Estimates, Offers Upbeat Guidance For Fiscal Year
$Levi Strauss & Co.(LEVI.US)$ posted earnings and revenue that topped Wall Street’s expectations. Shares of the company rose in after-hours trading as the company also offered upbeat sales guidance for its new fiscal year. The company plans to open around 100 stores across Europe after shuttering nearly every shop in Russia amid its war with Ukraine.
New Twitter Whistleblower Says Privacy Lapses Continued Into Musk Era
A new whistleblower has told Congress that Twitter Inc. continued to violate privacy and data security protections into the Elon Musk era, potentially risking legal action including hefty penalties.
As many as 4,000 company employees could access an internal function nicknamed “GodMode” that allows them to take over private accounts and tweet – or delete tweets from them, according to a whistleblower complaint filed in mid-October, two weeks before Musk took over the company. It’s not clear if the problem has been resolved since the complaint was filed.
Source: Bloomberg, Dow Jones, CNBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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  • RDK79 : Glad they’re helping inflation and continue to make huge profits.  I guess it’s good work if you can get it