Investors await October jobs report after Thursday stock slide
U.S. stock index futures are pointing to a rebound at the open, following sizable Thursday losses on Wall Street. The Dow had its biggest one-day drop in a month, while the S&P 500 suffered its biggest slide since late August.
That rebound, of course, could be waylaid – or helped – by the October employment report, due out at 8:30 a.m. ET. Economists are looking for 120,000 new non-farm jobs for last month, with the unemployment rate rising to 7.4 percent. The report is a week later than normal because of last month's government shutdown.
In another delayed report, we'll be getting September numbers for personal income and spending at 8:30 a.m. ET. Economists think income rose 0.3 percent and spending increased by 0.2 percent. In August, personal income was higher by 0.4 percent, while spending was up 0.3 percent.
At 9:55 a.m. ET, the University of Michigan will be out with its preliminary November consumer sentiment index, with consensus forecasts calling for a reading of 74.4, compared to October's final 73.2.
The earnings calendar is extremely light today, with Cablevision (CVC) and Covidien (COV) among the few companies releasing numbers this morning. There are no reports of note due for release after today's closing bell.
Groupon (GRPN) is among our stocks to watch today, reporting third quarter profit of two cents per share, excluding certain items, one cent above estimates. The daily deals site did post revenue below consensus, but investors are encouraged by strong North American growth and a 10 percent jump in gross billings.
Priceline.com (PCLN) earned $17.30 per share for the third quarter, beating estimates of $16.15. Its current quarter guidance, however, is largely below Street consensus. Separately, the online travel site has split the chairman and CEO roles, with Darren Huston becoming the new CEO on January 1, while current chairman/CEO Jeffery Boyd remaining in the chairman's role.
Walt Disney (DIS) reported fiscal fourth quarter profit of 77 cents per share, one cent above estimates, with revenue also beating consensus. Disney was helped by more spending at theme parks as well as higher toy sales.
Gap (GPS) issued a better than expected earnings outlook and also reported a consensus-beating October same-store sales gain of 4 percent. For the quarter, the Old Navy and Banana Republic parent saw a comparable store sales rise of one percent, its seventh consecutive quarter of improving sales.
Monster Beverage (MNST) missed estimates by four cents with third quarter profit of 53 cents per share, with revenue also missing consensus. The natural beverage maker's results were hurt by increased costs, including legal expenses related to concerns about the safety of its offerings.
Nvidia (NVDA) earned 26 cents per share, excluding certain items, for the third quarter, beating estimates by six cents. But the chipmaker also gave a below-consensus current quarter revenue forecast, due to a declining PC market and intense competition in the mobile device market.
Santarus (SNTS) is being bought by Salix Pharmaceuticals (SLXP) for $2.6 billion or $32 per share, 37 percent above the Thursday closing price for Santarus.
DuPont (DD) and Deere (DE) have formed an alliance centered on "precision agriculture" technology, which helps farmers maximize production of crops.
IBM (IBM) chief financial officer Mark Loughridge will retire at the end of the year, after serving in that role since 2004. He'll be replaced by IBM Global Financing general manager Martin Schroeter.