Wall Street Awaits April Jobs Report
Today's stock market fortunes undoubtedly rest on the government's April jobs report, due out at 8:30 a.m. ET. Ahead of that, however, the Street's bulls are no doubt happy with Thursday's performance, which essentially wiped out the sizable losses registered on Wednesday and saw the S&P 500 hit another record high in the process.
Some economists have scaled down their expectations for the jobs numbers following Wednesday's weaker than expected ADP report on private sector employment. The current consensus stands at 148,000 new non-farm jobs for April, with the unemployment rate holding steady at 7.6 percent.
Investors will have two other economic reports to consider, both out at 10 a.m. ET. The Institute For Supply Management's non-manufacturing index, a measure of the U.S. services economy, is expected to register 54.1 for April following a March reading of 54.4, while March factory orders are seen dropping 3.0 percent, after a February rise of 3.0 percent.
Rating agency Moody's (MCO) is among the companies out with quarterly earnings this morning, along with Automatic Data Processing (ADP), Duke Energy (DUK), Newell Rubbermaid (NWL), Regeneron Pharmaceuticals (REGN), and Washington Post Co. (WPO).
Warren Buffett's Berkshire Hathaway (BRKA, BRKB) holds its annual meeting this weekend in Omaha, an event often referred to as the "Woodstock of Capitalism". CNBC will be covering the meeting, and will have Buffett live for three hours on Squawk Box on Monday morning.
AIG (AIG) is among our stocks to watch this morning, as it reports first quarter profit of $1.34 per share, well above estimates of $0.87. Revenues did fall short of estimates despite improvements at both of its primary insurance units.
LinkedIn (LNKD) registered first quarter earnings of $0.45 per share, excluding certain items, 12 cents above estimates, while revenues exceeded estimates as well. However, the business social media company projected current quarter revenue below consensus, disappointing analysts who were expecting LinkedIn's growth to continue at its recent pace.
Kraft Foods (KRFT) beat estimates by 12 cents with first quarter profit of $0.76 per share, while revenues were also above analyst forecasts. Kraft benefited from both cost-cutting moves and sales growth.
Gilead Sciences (GILD) earned $0.48 per share, excluding certain items, for the first quarter, two cents below estimates, with revenues falling short as well. Gilead did see higher sales of its newer products, but that was partially offset by a drop in revenue from its older HIV drugs.
Tempur-Pedic (TPX) reported first quarter profit of $0.62 per share, excluding certain items, one cent above estimates, while the mattress maker's revenues also beat forecasts. However, its full year revenue forecast is short of analyst consensus. The company completed its purchase of competitor Sealy on March 18.
OpenTable (OPEN) earned $0.45 per share for the first quarter, excluding certain items, two cents above estimates, but its current quarter revenue outlook falls slightly short of consensus. The online restaurant reservations provider saw growth in both its North American and international business, and CEO Matt Roberts is emphasizing a focus on growing mobile revenues.
Barnes & Noble (BKS) is adding Google's app store, Google Play, to its Nook HD products as of today, expanding the number of available apps from about 10,000 to more than 700,000.
Verizon (VZ) CEO Lowell McAdam does not plan to pay a premium for Vodafone's (VOD) 45 percent stake in Verizon Wireless, according to JPMorgan Chase analysts who met with McAdam.