Earnings Previews: Chevron, Exxon Mobil, NextEra Energy

The three major U.S. equity indexes closed higher on Tuesday, following a more-or-less steady path higher after the bell. The Dow Jones industrials ended the day up 1.07%, the S&P 500 closed 1.63% higher and the Nasdaq rose 2.25%. Ten of 11 sectors closed higher, led by real estate (3.94%) and materials (2.53%). Energy (−0.05%) was the only laggard, but not by much.

Wednesday brings the monthly report on new home sales. The consensus estimate calls for 575,000 sales in September, down from August’s total of 685,000. The government report on crude oil inventories is due Wednesday morning. Late Tuesday, the American Petroleum Institute reported an inventory build of more than 4.5 million barrels for the week. Of that total, 3.4 million came from the Strategic Petroleum Reserve. The U.S. Energy Information Administration reported a build of 2.59 million barrels in the country’s crude oil stocks, not including a drawdown of 1.5 million barrels from the SPR.

The three major indexes traded mixed just ahead of the noon hour Wednesday. The Dow was up about 0.9%, the S&P was up about 0.4%, and the Nasdaq was down about 0.4%.

After U.S. markets closed Tuesday, Google parent Alphabet missed on both the top and bottom lines, and the search engine giant said it is realigning resources to focus on high-growth priorities. Shares traded about 6.8% lower Wednesday morning.

Microsoft beat adjusted earnings per share (EPS) and revenue estimates. Like Alphabet, Microsoft is sharpening its focus and “managing our cost structure.” The company’s Azure cloud business is forecast to post lower revenue growth in the current quarter, and that has pushed the stock down about 5.8% Wednesday.

Enphase beat on both the top and bottom lines and raised fourth-quarter revenue guidance. Shares traded up about 12.8% Wednesday morning.

Visa also beat top-line and bottom-line estimates. The financial services giant also authorized a new $12 billion buyback program and raised its dividend by 20%. Shares traded up by 5.5% early Wednesday.

ALSO READ: Goldman Sachs Says Oil Could Roar Higher: 7 Dividend Stocks to Buy Now

Before markets opened Wednesday morning, Boeing missed on both the top and bottom lines. The aircraft maker posted a loss of $3.3 billion in the quarter. Free cash flow is on track to turn positive by the end of the year. Shares traded down less than 1%.

Bristol-Myers Squibb posted better-than-expected EPS and revenue and reaffirmed fiscal year guidance. Shares traded up about 2.3% Wednesday morning.

Kraft Heinz beat estimates on both the top and bottom lines and reaffirmed full-year organic sales growth in the high single digits. Shares traded up by less than 1% Wednesday.

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