Exxon Mobil Corporation (XOM)

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Stocks to Watch Next Week: Exxon Mobil Corp.’s (NYSE:XOM)
By: Investing.com | July 3, 2022

• Warnings from Meta and Micron cast a shadow on the 4th of July trading week.
• Tesla's deliveries report was a miss while Exxon Mobil's earnings preview was a hit.
• Coinbase may be under pressure again after continued crypto space challenges.

After capping the worst first half since 1970, equity markets in the US will resume trading next week amid fears that the rising borrowing costs and inflation, running at the highest level in four decades, could hurt corporate earnings and further pressure share prices.

Companies in the US will start reporting their second-quarter earnings within the next two weeks. Consumer demand has so far held up despite the looming recession, but there have been signs recently that consumers are holding back on their spending plans.

Micron Technology Inc. (NASDAQ:MU), the largest US maker of memory semiconductors, gave a weak sales forecast last week after demand for phones and computers weakened. Meta Platforms Inc (NASDAQ:META) is slashing its hiring goals for engineers by at least 30% this year and warned all staff to brace for a severe economic downturn.

Chief Executive Officer Mark Zuckerberg told employees last week that he’s anticipating “one of the worst downturns that we’ve seen in recent history,” according to an audio recording of the weekly Q&A session, obtained by Reuters.

Beyond those macro trends, below we’ve picked three stocks that could see some action in the upcoming week, due to company and sector-specific developments:

Exxon Mobil

Exxon Mobil Corp.’s (NYSE:XOM) earnings from its refining division rose by as much as $5.5 billion in the second-quarter, signaling that the energy giant is on course to post another set of strong numbers when it reports its earnings later this month.

In a regulatory filing released late Friday, the Irving, Texas-based Exxon said it expects refining margins to increase by as much as $4.6 billion in Q2, while the value of unsettled derivatives provided up to $900 million boost during the period which ended on June 30.

Exxon shares have gained more than 40% this year, fueled by rising oil and gas prices. It closed on Friday at $87.55. The stock, however, has lost about 17% since hitting the 52-week high on June 8 amid concerns that a looming recession could hurt demand for energy products going forward.


XOM Weekly Chart TTM

Exxon is paying down its debt and returning more cash to investors during the current commodity boom. The company announced in April that it will increase the size of its share buyback plan to $30 billion after posting the biggest profit since 2014...

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