Stock futures are falling ahead of data on initial jobless claims and Exxon reported its likely to see an earnings boost from higher oil prices. Here’s what investors need to know today.
1. Exxon Expects Earnings Boost From Higher Oil Prices
Exxon Mobil (XOM) expects its third-quarter earnings to increase by $2.1 billion on higher oil prices and refining margins, with analysts suggesting that the oil giant’s earnings could be about $2.33 a share, in line with estimates. The profits could be partially offset by a decline in its chemicals business and shares of Exxon shares declined about 1% in pre-market trading.
2. Stock Futures Fall Ahead of Initial Jobless Claims
Stock futures fell in pre-market trading ahead of today’s initial jobless claims for the week of Sept. 30, which are projected to increase to 210,000 from 204,000 in the prior week when that data is released at 8:30 a.m. ET. The results come after private sector payroll additions of 89,000 jobs in September were below expectations and ahead of tomorrow’s U.S. employment report.
3. Clorox Shares Fall After Slashing Forecast on Cyberattack Setback
Clorox Co. (CLX) shares fell nearly 3% in pre-market trading after the bleach maker cut its outlook following a cyberattack that it first disclosed in August. The wide-scale disruption means that Clorox is expected to report earnings that range from break even to a loss of $0.40 a share on revenue of $1.25 billion to $1.34 billion, down from analyst projections of $1.29 a share earnings on revenue of $1.77 billion.
4. Rivian Shares Plunge After Announcing $1.5 Billion Convertible Bond Plan
Shares of electric-vehicle maker Rivian Automotive (RIVN) plummeted almost 9% in pre-market trading after the company said it plans to sell $1.5 billion in convertible bonds, which are generally seen negatively by investors due to their potential to dilute share value. Rivian said the bond will mature in October 2030, giving investors the option to convert into cash or company shares.
5. Fed Officials Mester, Daly, Barr to Speak
Cleveland Fed President Loretta Mester is scheduled to speak at 9 a.m. ET at a payments symposium, while San Francisco Fed President Mary Daly will talk at 12 p.m. ET and Fed Vice Chair Michael Barr will speak on cyber bank risks at 12:15 p.m. ET. Also today at 8:30 a.m. ET, the U.S. trade deficit is expected to have narrowed to $59.5 billion in August, down from $65.0 billion in the prior month.