Friday's big stock stories: What’s likely to move the market in the next trading session

Apple reported stronger-than-expected earnings, with CEO Tim Cook expressing optimism for future guidance driven by robust iPhone 17 sales, leading to a nearly 3% after-hours stock increase and a 12% YTD gain. Defense contractor Huntington Ingalls Industries achieved record Q3 revenue of $3.2 billion, with shares surging 7% and an additional 2% after-hours to a new 52-week high, up 69% YTD, amidst heightened geopolitical tensions. Elsewhere, Hershey reduced its anticipated tariff expenses by $10 million, and pharmaceutical firm AbbVie, reporting tomorrow, is viewed favorably and insulated from tariffs by U.S. manufacturing, while energy giants ExxonMobil and Chevron prepare earnings amid declining oil prices.

Analysis

Apple reported stronger-than-expected earnings, with CEO Tim Cook expressing optimism for future guidance largely due to robust iPhone 17 sales, leading to a nearly 3% after-hours stock increase and a 12% year-to-date gain. Defense contractor Huntington Ingalls Industries also delivered a strong performance, achieving record third-quarter revenue of $3.2 billion, driven by favorable segment results at its shipbuilding divisions, which propelled its stock up 7% on Thursday and an additional 2% in extended trading to a new 52-week high, marking a 69% year-to-date increase.

Hershey revised its expected tariff expenses down by $10 million to a range of $160 million to $170 million, attributing the reduction to lower Canadian retaliatory tariffs, despite the stock being down 10% over the last three months and losing over 8% in October. Conversely, pharmaceutical giant AbbVie, reporting tomorrow, appears well-positioned against potential tariffs, having stated it is "fairly insulated" due to extensive U.S. manufacturing and planned $10 billion domestic investments, with analysts largely favorable on the stock, which is up nearly 30% year-to-date.

Energy majors ExxonMobil and Chevron are set to report earnings, with ExxonMobil up 2% over the last three months and Chevron flat, both facing a challenging commodity backdrop. This comes as Brent crude and WTI crude have declined significantly, falling 11% and nearly 14% respectively over the past three months, potentially impacting their upcoming financial results.

Key Decisions for Investors

• Investors should consider maintaining exposure to strong performers like Apple and Huntington Ingalls, given their positive earnings beats, robust guidance, and significant year-to-date gains, while monitoring for any shifts in their growth drivers.
• Evaluate AbbVie's earnings report for confirmation of its tariff insulation and domestic investment plans, as its favorable analyst sentiment and strong year-to-date performance suggest potential resilience in a volatile trade environment.
• Exercise caution with energy sector holdings like ExxonMobil and Chevron ahead of their earnings, as declining Brent and WTI crude prices over the last three months could pressure profitability, necessitating close scrutiny of their guidance and cost management strategies.
• Monitor Hershey for signs of fundamental improvement following its tariff expense reduction, but acknowledge its recent stock underperformance and the broader consumer staples sector's challenges.