The recent Israel-Hamas war has had a significant impact on the global market, causing oil prices to surge while stocks remain largely unaffected. This development marks the beginning of earnings season, which commenced with reports from several banks, notably JPMorgan Chase.
Amidst these events, Exxon Mobil made headlines with its announcement of a major merger. The oil giant revealed its plans to acquire Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. However, this news led to a decline in Exxon Mobil’s stock price, distancing it further from its mid-September highs. In another noteworthy move, pharmaceutical giant Bristol-Meyers Squibb disclosed its intention to purchase Mirati Therapeutics for up to $5.8 billion.
On a separate note, concerns have arisen following Spotify Technology’s launch of a new audiobook feature, with analysts expressing worries about potential competition from Amazon.com. Conversely, UBS has expressed optimism about Rivian Automotive, highlighting its potential for significant growth. JPMorgan Securities has also included CSX Corporation in its focus list. In the retail sector, Target received an upgrade, while Netflix faced several bearish evaluations throughout the week.
Looking ahead, the focus will shift towards earnings season, with reports expected from major banks, Netflix, and Tesla. Additionally, economic data, including housing statistics and the Philadelphia manufacturing index, will be closely monitored. It is worth noting the significant amount of time that has passed since the S&P 500’s last record high, as highlighted by Schaeffer’s Senior Quantitative Analyst Rocky White. Furthermore, Senior V.P. of Research Todd Salamone has identified key levels to observe within the S&P 500 and discussed surrounding bullish sentiment.
As the market continues to navigate volatile geopolitical landscapes, it remains to be seen how various industries and sectors will fare. The coming days will undoubtedly shed light on the impact of these ongoing developments, providing valuable insights for investors and market participants alike.
