At the same time, investors were also looking ahead to the new US corporate earnings season. The market was caught between optimism over company earnings and fresh concerns about inflation. US stock futures fell on Thursday morning as investors worried about inflation and rising oil prices.
Dow Jones futures fell 0.9% in premarket trading. Futures linked to the S&P 500 dropped 0.5%, while Nasdaq-100 futures fell 0.7%, according to Yahoo Finance. Before the war, shipments equal to about 20% of global oil and fuel supplies moved through the waterway, according to Reuters. The US Department of Labor is scheduled to release initial jobless claims at 8:30 am ET. SpaceX went public in June and raised $75 billion in its IPO. Blue Origin recently raised $10 billion from outside investors. The funding round valued the space company at about $140 billion, according to the Wall Street Journal. Bezos personally put $2 billion into that funding round. Jobless claims, Chris Waller’s comments and movements in oil and Treasury yields could all influence the Dow, S&P 500 and Nasdaq during the trading day.
Reuters reported that attacks on tankers passing through the Strait of Hormuz reached their highest level last week for any week since the Iran war began. More crude oil is now moving out of the Gulf, but the shipments are facing greater risks to both cargo and crew, Reuters reported. The large investment highlights the scale of Blue Origin’s current valuation and ambitions, Yahoo Finance reported.
Investors are now watching whether the market can recover or whether higher inflation and borrowing costs will put more pressure on stocks. Oil prices are adding to the inflation worries. The Strait of Hormuz is especially important for global energy markets. Shipping attacks in the region have increased in October. The attacks are creating more risks and higher costs for oil shipments. The inflation concern is also important for the Federal Reserve. The bond market is also going through a major sell-off. Investors are now also turning their attention to the third-quarter US earnings season. Companies are beginning to report their latest financial results, which could decide whether the stock market can continue its recent gains. The jobless claims report could give investors another clue about the health of the US economy. Traders will be watching whether the labor market remains strong or shows signs of weakening. He argued that the data do not support the idea that unemployment would simply have been much higher if labor force participation had not fallen. This trend is linked to the FIRE idea — Financial Independence, Retire Early. The comments come after Elon Musk’s SpaceX entered public markets. Other major private companies are also being watched for possible IPOs. AI companies Anthropic and OpenAI are among the names that have attracted attention from investors. However, market uncertainty has already pushed some companies to delay their IPO plans . For Thursday’s stock market, oil and inflation remain key risks. Higher oil prices could add to inflation pressure, while already-high Treasury yields are keeping financial conditions tight. At the same time, strong corporate earnings are giving investors a reason to stay optimistic. The next major market signals will come from Thursday’s economic data and Fed commentary.
Because of attacks on shipping in the Gulf and the Strait of Hormuz, Reuters reported, crude prices rose on Thursday as investors remained concerned about oil supplies from the Middle East, especially. Because energy is a major cost for businesses and consumers, higher oil prices can increase inflation. Investors are therefore worried that a fresh rise in oil prices could make it harder for inflation to cool. The market is therefore balancing positive earnings expectations against concerns over oil, inflation, interest rates and bond yields.
At its September meeting, Fed officials unanimously voted to raise interest rates, with persistent inflation among the reasons for the decision, according to Yahoo Finance. Bank of America economist Aditya Bhave said the finding challenges a common negative view of the labor market. The post-pandemic rise in stock prices has given some older Americans enough wealth to reduce or end their participation in the workforce, according to Bank of America. The Amazon founder said his space company could eventually become a publicly traded company through an IPO. Bezos said Blue Origin could have an IPO several years from now. He said he believes it would eventually make sense for Blue Origin to become a public company, according to Yahoo Finance. Smart-ring maker Oura is one example of a company that postponed its public debut, according to Yahoo Finance.
The strong stock market has also helped some older Americans leave work earlier. Some people aim to build enough savings and investments to stop working earlier than the traditional retirement age. The fall came after US stocks slipped from record highs on Wednesday. Yahoo Finance reported that the global bond rout continued on Thursday, with Treasury yields staying close to multidecade highs. Investors are also waiting for new US jobs data on Thursday. Jeff Bezos also made news on Thursday with comments about Blue Origin.
PepsiCo’s revenue increased 5.6% from a year earlier to $25.27 billion. That was slightly above Wall Street’s expectation of about $25 billion. PepsiCo also reported adjusted earnings of $2.34 per share. That was higher than the $2.29 per share expected by analysts, according to Bloomberg consensus data. PepsiCo received $178 million in tariff refunds during the third quarter. People aged 55 and above have been the biggest reason for the decline in overall labor force participation, according to Bank of America economists.
The company beat Wall Street’s expectations for the third quarter but cut its profit outlook as it works to improve its business in North America, Yahoo Finance’s Brooke DiPalma reported. Yahoo Finance’s Hamza Shaban reported that the share of Americans working or looking for work has not fully recovered from the pandemic shock. PepsiCo was one of the first major companies to report its results. The refunds added to the company’s financial results for the period. The labor market is already being affected by a decline in workforce participation among older Americans. The finding suggests that more older workers leaving the workforce is affecting the US economy.
PepsiCo cuts profit forecast
The 10-year Treasury yield was around 5.28%, while the 30-year yield was around 5.66%. The company now expects core earnings per share to grow by 2.5% to 3% in fiscal 2026, down from its earlier forecast of 5% to 7%, Yahoo Finance reported. PepsiCo still expects its fiscal 2026 revenue to be at the high end of its previous range. The company expects net revenue to increase by about 6%. FactSet estimates that S&P 500 companies could report 29.5% earnings growth in the third quarter. If that estimate is correct, it would mark the third straight quarter of more than 25% earnings growth for S&P 500 companies.
His comments could give investors more clues about the Fed’s view on inflation and the future path of interest rates, Yahoo Finance reported. He especially pointed to the company’s North American business, Yahoo Finance reported. Inflation is still a major issue for the Fed even though some recent economic data have changed the outlook. Investors are watching closely for clues about what the central bank could do with interest rates next. US Treasury yields also remained very high, adding pressure to financial markets. High Treasury yields can make stocks less attractive to investors. They also mean higher borrowing costs across the economy, which can put pressure on companies and households. Despite beating expectations, PepsiCo lowered its earnings growth forecast. The wider earnings picture is still positive. This strong earnings outlook is one reason investors are still hopeful about US stocks. But strong earnings are now competing with worries about inflation and interest rates. This is creating a tug-of-war in the stock market, with investors weighing better company profits against higher costs and tighter financial conditions.
PepsiCo CEO Ramon Laguarta said the company is working with urgency to improve its financial and market performance . Federal Reserve Governor Chris Waller is scheduled to speak in Turkey on Thursday.
