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Exxon just warned Wall Street of billion-dollar profit hits. Here’s what may cause it. - MarketWatch

1. Exxon warns of $1 billion profit drop from lower crude prices. 2. Natural gas prices could reduce profits by up to $700 million. 3. Exxon's shares fell 0.5% after the warning on profits. 4. U.S. crude oil prices fell 9% in the second quarter. 5. Second-quarter earnings report is due on August 1.

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FAQ

Why Bearish?

The substantial expected profit drop signals reduced earnings, impacting investor sentiment and stock performance, similar to past instances where lowered outlooks resulted in decreased valuation.

How important is it?

A major profit warning from Exxon indicates significant earnings pressure, likely evoking a strong market reaction.

Why Short Term?

The impacts on Exxon's stock price are immediate as they are tied to upcoming quarterly earnings, reminiscent of past earnings forecast downgrades resulting in swift sell-offs.

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