Stock markets risk opening down in the morning. If it closes down, it would increase the chance of bearish sentiment building in intensity. Stock markets did not have a meaningful decline since August. Earlier that month, Japan’s stock market fell by over 10% after the yen traded at nearly three-decade lows.
McDonald’s (MCD) will set the tone for the restaurant sector. An E. coli outbreak connected to its burgers will hurt the stock today.
Starbucks (SBUX) risks falling below $90 this week. The firm did not want to issue sales guidance for the full year of 2025. It cited the CEO transition and the current state of the business for withholding the guidance.
Despite the weakness in SBUX stock, income investors will like the increase in the quarterly cash dividend. It rises from $0.57 to $0.61 a share. Starbucks is a best-of-breed firm since it offers the best app experience and serves quality coffee. However, the rising prices will deter customers from coming back. New customers will opt for cheaper alternatives.
Baker Hughes (BKR) is at risk of falling back to the $32 low last reached in June. In Q3, it posted $0.67 a share in earnings (non-GAAP). Revenue grew by 3.9% Y/Y to $6.9 billion.
After the bell, EV giant Tesla (TSLA) will post quarterly results. The firm already reported deliveries that did not meet expectations.