News

Stock Futures Point to Flat Start as President Biden Prepares to Visit Israel

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Andrew R. Michaud

• October 17, 2023

Stock futures indicate a lackluster start for Wall Street on Tuesday as concerns over the Israel-Hamas conflict loom. President Joe Biden is scheduled to visit Israel on Wednesday, adding to the rising tension in the region. Meanwhile, the third-quarter earnings season gains momentum.

Anticipated Stock Moves

Here are some stocks that are expected to make moves on Tuesday:

• Johnson & Johnson (JNJ): Analysts predict that J&J will announce third-quarter earnings of $2.52 per share on sales of $21 billion. This will be the company's first report since its consumer health division separated from J&J over the summer. In premarket trading, the stock was up by 0.3%.

• Bank of America (BAC): Analysts anticipate the bank's third-quarter earnings to reach 83 cents per share, surpassing the previous year's figure of 81 cents. Net interest income is also expected to increase by 2% to $14.1 billion. Nonetheless, analysts and investors will closely analyze Bank of America's balance sheet.

Stay tuned for more updates on the stock market as the day unfolds.

Goldman Sachs (GS) Third-Quarter Profit Expected to Decline

Third-quarter profit at investment bank Goldman Sachs (GS) is expected to decline by 32% to $2 billion, or $5.42 per share, on revenue of $11.2 billion. The decline in profit can be attributed to the decrease in deal-making and trading activities. As a result, Wall Street is shifting its focus towards strategic issues, particularly Goldman's decision to retreat from its expensive venture into consumer banking. Ahead of the report, the company's shares saw a 0.3% decline.

Lockheed Martin (LMT) Projected to Report Lower Third-Quarter Earnings

Lockheed Martin (LMT), a leading defense contractor, is projected to report third-quarter earnings of $6.67 per share on sales of $16.7 billion. This reflects a decrease compared to the previous year when earnings stood at $6.87 per share on sales of $16.5 billion.

Other Companies Reporting Quarterly Earnings

On Tuesday, several other companies are scheduled to report their quarterly earnings:

• Prologis (PLD)
• Bank of New York Mellon (BK)
• Albertsons (ACI)
• United Airlines (UAL)
• J.B. Hunt Transport Services (JBHT)

Ericsson (ERIC) Shares Fall as Company Withdraws Margin Guidance

U.S.-listed shares of Ericsson (ERIC), a telecommunications equipment manufacturer based in Sweden, experienced a 6.1% decline. The drop comes after the company withdrew its margin guidance for 2024, citing prevailing macroeconomic uncertainty that is expected to extend into the next year.

NetScout Systems (NTCT) Slashes Guidance for Fiscal 2024

In premarket trading, cybersecurity company NetScout Systems (NTCT) witnessed a significant 19% drop after announcing a reduction in guidance for fiscal 2024. The decision was made in response to a recent slowdown in order conversion.