Musk buys Twitter, Amazon shocks, PCE price

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By Geoffrey Smith — Elon Musk finally completes his acquisition of Twitter, a day before a legal deadline. Amazon plunges after missing guidance for the third quarter and giving disappointing guidance for the current one. Stocks are under pressure as a result, but Apple’s resilient numbers are helping to steady the ship. Eurozone inflation is racing again, just a day after the European Central Bank raised market hopes for a quick end to policy tightening, and Exxon Mobil and Chevron post a monstrous third quarter thanks to high prices crude oil. Here’s what you need to know in the financial markets this Friday, October 28.

1. Musk closes Twitter deal and fires senior executives

Elon Musk completed his $44 billion takeover of Twitter (NYSE:) and – according to multiple reports – immediately fired CEO Parag Agrawal and CFO Ned Segal.

Musk’s other immediate first move was to reverse the lifetime ban policies of the previous leadership, paving the way for ex-President Donald Trump’s return to the social media platform he had dominated until recently. at the beginning of last year.

It remains unclear how Musk raised the money for the deal, which was completed just a day before a court-imposed deadline. Cryptocurrency exchange Binance has confirmed that it has joined a consortium of stock buyers led by the CEO of Tesla.

2. Amazon shocks with disappointing results and weak forecasts

Amazon (NASDAQ:) ended a miserable week for Big Tech, falling as much as 20% in after-hours trading on Thursday, after it fell short of expectations for earnings and gave much lower guidance in consensus for the current quarter.

CEO Andy Jassy said on a conference call that the group expected revenue of between $140 billion and $148 billion for the fourth quarter, some $11 billion below consensus. Analysts were also spooked by slowing growth in AWS’ cloud hosting business, which corroborated weakness detailed by rival Microsoft (NASDAQ:) earlier in the week.

Amazon opened slightly to pre-market lows, but is still expected to open at its lowest level in two and a half years.

The news was slightly more upbeat from Apple (NASDAQ:), which is expected to open slightly higher after posting strong iPhone sales in the third quarter. Reports of new problems at Chinese iPhone assembly plants used by Apple haven’t changed that.

3. Stocks are expected to open lower on Amazon’s weight and weaker consumer data.

Amazon’s weak update weighs on US stock markets, which are expected to open lower later.

By 1:30 p.m., the were down 1.1%, on track for a 2.3% fall on the week after the megacaps’ serial disappointments during the week. The fell 0.5%, while the , supported by stocks from the old economy, outperformed with a more moderate decline of 0.1%, or 16 points.

The morning should be dominated by the monstrous quarters of the oil and gas giants Exxon Mobil (NYSE:) and Chevron (NYSE:), while Colgate-Palmolive (NYSE:), Charter Communications (NASDAQ:), Aon (NYSE:) and AbbVie (NYSE:) are also due to release their results.

The highlight of the data calendar will be the release of September data, as well as the Personal Consumption Expenditures Price Index, which remains the most reliable guide to real inflation trends in the economy. . There is also the index at 4:00 p.m. and data for September.

4. Inflation in the euro zone is forcing the ECB to quickly review its position; national GDP reports are mixed

Shocks in the euro zone brought an abrupt end to the rally in bonds and equities that had begun when the EC slightly softened its language regarding further interest rate hikes.

In October, prices rose by 4% in October in Italy and by 1% or more in France and Germany, as the impact of rising energy prices in all their forms was once again under-estimated. estimated by analysts.

Various Eurozone countries also released third-quarter GDP data, with {{ecl-113||France} and {{ecl-402||Spain} coming in below expectations but showing better growth than expected by 0.3% compared to the previous quarter.

5. Exxon and Chevron Post Massive Quarter on Soaring Oil Prices

Crude Oil prices fell slightly overnight but are expected to end the week near their highs.

Earlier, Exxon Mobil reported earnings 15% better than consensus forecast, while Chevron posted a profit of $11.2 billion, also beating expectations.

As of 1:45 p.m., US currency futures were down 0.9% at $88.31, while US currency futures were down 0.6% at $94.50.

Baker Hughes and CFTC data will complete the week later.

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