Oil prices surged this week
The devastating Israel-Hamas war provided a worrisome geopolitical backdrop this week, causing oil prices to rise and U.S. Treasury yields to make large, volatile swings. Stocks, for the most part, brushed off two days of hotter-than-expected inflation readings, with the producer price index (PPI) rising 0.5% in September, while the consumer price index (CPI) rose 0.4%. To end the week, earnings season kicked off with reports from a handful of banks, including JPMorgan Chase (JPM).
M&A’s to Watch
Exxon Mobil’s (XOM) merger was a major highlight this week. The oil giant will acquire rival Pioneer Natural Resources $59.5 billion, or $253 per share, in an all-stock deal. XOM moved lower after the news, however, falling further from its mid-September highs. Meanwhile, news came that major pharmaceutical name Bristol-Meyers Squibb (BMY) will buy Mirati Therapeutics (MRTX) up to $5.8 billion.
Analysts Hand Out Bear, Bull Notes
Spotify Technology’s (SPOT) new audiobook feature has one analyst worried about potential competitive moves from Amazon.com (AMZN). Meanwhile, UBS sees plenty of potential upside for Rivian Automotive (RIVN), while JPMorgan Securities added CSX Corporation (CSX) to its “focus list.” Elsewhere, retail giant Target (TGT) was upgraded, while Netflix (NFLX) saw not one but several bear notes this week.
Looking Toward Next Week
Earnings season will be in full focus next week, with reports from even more big banks along with Netflix and Tesla (TSLA). There will be plenty of economic data as well, including housing data and the Philadelphia manufacturing index. In the meantime, it’s worth noting the hefty amount of time between now and the S&P 500’s (SPX) last record high, according to Schaeffer’s Senior Quantitative Analyst Rocky White. Plus, Senior V.P. of Research Todd Salamone points out key SPX levels to watch, as well as surrounding bullish sentiment.
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