BY THE NUMBERS
U.S. stock futures moved higher Friday after the government's stronger-than-expected October jobs report. The S&P 500 on Thursday closed at a record for the fifth straight session, extending its winning streak to six trading days. The Nasdaq also closed at a record for five straight sessions, riding a nine-trading day winning streak. The Dow Jones Industrial Average dipped slightly Thursday, ending its latest string of record closes at four sessions and its winning streak at five. (CNBC)
All three stock benchmarks were tracking for strong weekly gains as investors took the Federal Reserve's tapering plan for its massive Covid-era bond buying in stride and found solace in the central bank's patient stance on raising interest rates. (CNBC)
The U.S. economy generated 531,000 new nonfarm jobs in October, the Labor Department reported Friday. Economists had called for 450,000. The nation's unemployment rate dropped more-than-expected to 4.6%. Wage inflation will be closely watched to see whether it remains elevated. The Fed said Wednesday it continues to view inflation as transitory. However, stronger wages could make the case for a rate increase sooner than expected. The futures market is pricing in the first Fed rate hike for July. (CNBC)
Wage inflation will be closely watched to see whether it remains elevated. The Fed said Wednesday it continues to view inflation as transitory. However, stronger wages could make the case for a rate increase sooner than expected. The futures market is pricing in the first Fed rate hike for July. (CNBC)
IN THE NEWS TODAY
Pfizer (PFE) said Friday its oral Covid pill, administered in combination with a widely used HIV drug, cut the risk of hospitalization or death by 89% in high-risk adults who've been exposed to the coronavirus. The company's shares jumped 11% in the premarket. The Pfizer candidate is now the second antiviral pill behind one from Merck (MRK) to demonstrate strong effectiveness for treating Covid at the first sign of illness. Merck shares fell 9% in the premarket. (CNBC)
If cleared by U.S. health regulators, these pills would likely be game changers in the ongoing global pandemic fight. Pfizer plans to submit its data to the FDA "as soon as possible." The antiviral pill made by Merck and Ridgeback Biotherapeutics was approved by Britain's medicines regulator on Thursday. Later this month, U.S. regulators are set to evaluate Merck's request for emergency use of its Covid drug. (CNBC)
* Emergent BioSolutions stock plunges after government cuts ties with troubled vaccine manufacturer (NY Times)
American Airlines (AAL) is delaying the implementation of rules that require all staff to be vaccinated against Covid9 until Jan. 4, hours after the Biden administration postponed its deadline for federal contractors to meet the requirements. Southwest Airlines and other carriers are likely to follow suit. (CNBC)
Shares of Peloton (PTON) plunged more than 30% in Friday's premarket, the morning after the maker of connected exercise equipment reported weakening sales growth and a wider-than-expected loss in its fiscal first quarter. Peloton cut its outlook for the full fiscal year due to softening demand, ongoing supply chain challenges, and competition from other at-home fitness options and people going back to gyms like Planet Fitness. (CNBC)
Current and former Boeing (BA) directors have reached an approximately $225 million agreement to settle a shareholder lawsuit that claimed the plane maker's board failed to properly oversee safety matters related to the 737 MAX, according to people familiar with the matter. (WSJ)
AT&T (T) and Verizon (VZ) agreed to delay their planned Dec. 5 rollout by one month of a new 5G frequency band so they can work with the Federal Aviation Administration to address concerns about potential interference with key aircraft cockpit safety systems. (WSJ)
* Hertz will have to wait for its 100,000 Teslas, just like other buyers (WSJ)
Democrats in the House appear on the verge of advancing President Joe Biden's $1.85 trillion-and-growing domestic policy package of social and climate spending, alongside a separate $1 trillion infrastructure bill, which was already passed in a bipartisan vote in the Senate. The House scrapped votes late Thursday but hoped to pass the bills Friday. (AP)
House Speaker Nancy Pelosi, D-Calif., worked into the night at the Capitol, looking to lock down support. The nonpartisan Joint Committee on Taxation said Thursday its initial analysis of the bigger bill showed it would raise $1.48 trillion in revenue over a decade and be unlikely to add to the deficit long term. (CNBC)
STOCKS TO WATCH
Expedia (EXPE) earned an adjusted $3.53 per share for its latest quarter, well above the $1.65 consensus estimate. Revenue was also higher than expected, with the travel services company benefiting from the surge in travel demand. Expedia soared 13.2% in premarket trading.
Live Nation Entertainment (LYV) Rallied 5.4% in premarket action after the event promoter returned to profit amid a sales surge as live events returned. Results exceeded analyst estimates.
Airbnb (ABNB) rallied 6.2% in the premarket as the travel-demand surge lifted sales and earnings beyond Wall Street forecasts. Airbnb earned $1.22 per share for its latest quarter, beating the $0.75 consensus estimate, with sales coming in at a record high. The company also said it expects a strong holiday season.
Uber Technologies (UBER) reported its first profitable quarter on an adjusted basis, thanks to upbeat performances by its ride-sharing and food delivery services. It did post an overall loss due to the drop in value of its stake in China ride-hailing company Didi (DIDI). Uber rose 1.2% in premarket trading.
Lions Gate Entertainment (LGF) is considering a sale or spin-off of its Starz premium cable channel, saying it sees the potential to unlock significant shareholder value. The stock surged 15.1% in the premarket.
Shake Shack (SHAK) reported a quarterly loss of 5 cents per share, 1 cent less than Wall Street had anticipated, but the restaurant chain's sales missed analyst forecasts. Despite the revenue miss, Shake Shack rallied 6.3% in the premarket.
Canada Goose (GOOS) reported an unexpected profit for its latest quarter along with better-than-expected revenue, and also raised its full-year forecast. The outerwear maker also said it's seeing an indication of a strong winter season, and shares jumped 4.6% in the premarket.
DraftKings (DKNG) slid 3.5% in the premarket after it reported a wider-than-expected loss and revenue that fell short of Street forecasts. DraftKings did raise the midpoint of its fiscal 2021 revenue guidance and said it expected a strong 2022.
Canopy Growth (CGC) lost 3 cents per share for its latest quarter, smaller than the 20-cent loss expected by analysts. However, revenue fell short of estimates and The Canadian cannabis producer flagged slower-than-expected revenue growth for the second half of fiscal 2022. The stock fell 3.5% in the premarket.
Pinterest (PINS) came in 5 cents above estimates with an adjusted quarterly profit of 28 cents per share, and the image-sharing site operator's revenue also topped analyst forecasts. It is also predicting an upbeat current quarter as the online retailer spends more on holiday season ads. Pinterest jumped 4.5% in premarket action.
Square (SQ) matched estimates with quarterly earnings of 37 cents per share, while the mobile payments company's revenue missed forecasts. Square did see a nearly 60% rise in profit from a year earlier, thanks in large part to a surge in bitcoin transactions, but the stock dropped 3.7% in premarket trading.