BY THE NUMBERS
Dow futures rose on Friday morning after the government’s July jobs report was released. Futures action follows record closes for the S&P 500 and Nasdaq on Thursday. Ahead of Friday’s session, the Dow, S&P 500 and Nasdaq are all on track for their second weekly gain in three weeks. The tech-rich Nasdaq has been particularly hot lately, on a four-day winning streak and rising in 11 of the past 13 trading days.
* 10-year Treasury yield exceeds 1.28% ahead of key jobs report (CNBC)
The non-farm payroll rose by 943,000 in July, according to the Labor Ministry, exceeding consensus forecast of 845,000. The country’s unemployment rate fell to 5.4% for the month, below 5.7% predicted by economists.
Earnings reports released this morning include Canopy Growth (CGC), Cinemark (CNK), Gannett (GCI), AMC Networks (AMCX), DraftKings (DKNG), Norwegian Cruise Line (NCLH) and Goodyear Tire (GT). No report is expected after today’s closing bell.
* Norwegian Cruise Line shows mixed results ahead of its first trip to the United States since last year (CNBC)
The seven-day average of daily new coronavirus cases in the United States is 98,518, according to CNBC analysis of data from Johns Hopkins University. That’s up 48% from a week ago, as the highly transmissible delta variant of Covid spreads across the country.
* 3 charts show how the delta variant of Covid has spread around the world (CNBC)
IN THE NEWS
United Airlines (UAL) plans to require that all of its 67,000 U.S. employees either be vaccinated against the coronavirus by Oct. 25 or risk being made redundant, becoming the first major U.S. airline to do so. In May, Delta Air Lines (DAL) began requiring new hires to show proof of the Covid vaccine, and United took that step in June. United becomes the latest company to take a tougher stance on vaccines, as U.S. governments and businesses attempt to improve immunization rates. (CNBC)
* ‘We couldn’t walk past.’ Spirit Airlines CEO Explains What Caused Carrier Collapse (CNBC)
JPMorgan Chase (JPM) began providing its wealth management clients with access to six cryptocurrency investment funds over the past month, a notable development given that the bank’s CEO Jamie Dimon, has long been one of Wall Street’s most prominent crypto skeptics. Morgan Stanley (MS) and Goldman Sachs (GS) took similar steps for their wealth management clients earlier this year.
* Ethereum mining will be obsolete soon as ‘London’ update moves key deadline to December (CNBC)
The White House, in an unexpected move, backs a Senate proposal that would create stricter tax rules on cryptocurrency transactions. The proposal, led by Republican Senator Rob Portman of Ohio, is part of the bipartisan $ 1,000 billion infrastructure bill. Another side in the Senate is pushing for a more restrictive provision. However, the White House has said it supports Portman’s measure, as well as Sense. Mark Warner, D-Va. and Kyrsten Sinema, D-Arizona (CNBC)
* McConnell: Democrats “won’t get our help” to raise debt ceiling (Associated Press)
Novavax (NVAX) said it was delaying plans to seek emergency use authorization in the United States for its Covid vaccine until the fourth quarter, causing the company’s shares to fall by more than 12% in exchanges before marketing. The biotech company has applied for regulatory clearance in India, Indonesia and the Philippines.
Apple (AAPL) has said it will report child exploitation images uploaded to iCloud to U.S. law enforcement. To locate images called Child Sexual Abuse Material (CSAM), Apple will use a process called hashing, which turns the images into matching unique numbers. Other cloud services are already scanning files for violations of their terms of service. (CNBC)
* Amazon postpones its return to power until January 2022 (CNBC)
Huawei’s revenue fell nearly 30% in the first half of the year, and the chairman of the Chinese tech company said his “goal is to survive.” The company was blacklisted for U.S. commerce in 2019 while former President Donald Trump, a famous Chinese hawk, was in office.
STOCKS TO MONITOR
The Zillow Group (ZG) reported adjusted quarterly profit of 44 cents per share, 20 cents above estimate, as the real estate website operator’s earnings were also above estimates. Zillow also gave an optimistic growth forecast, as it expands its home turnaround business, and said it expects this quarter’s sales to exceed $ 2 billion for the first time.
Virgin Galactic (SPCE) lost 39 cents a share for its most recent quarter, 6 cents more than expected, although the spaceflight company reported much better than expected earnings. He also announced that he would sell seats for space tourism flights at $ 450,000 and up.
Beyond Meat (BYND) reported a quarterly loss of 7 cents larger than expected at 31 cents per share. The plant-based meat alternatives maker revenue exceeded Street’s forecast, but it gave a cautious outlook amid “more conservative” orders from its customers amid Covid uncertainty.
Shares of Dropbox (DBX) are higher in pre-market trading, after its adjusted earnings of 40 cents per share topped estimates of 7 cents and the cloud storage company’s revenue also exceeded expectations.
Cornerstone OnDemand (CSOD) has agreed to be acquired by private equity firm Clearlake Capital Group. Clearlake will pay about $ 3.8 billion, or $ 57.50 per share in cash to the cloud computing company.
Zynga (ZNGA) shares slump after the mobile games company gave a disappointing full-year forecast, anticipating a slowdown in games. Zynga also reported adjusted quarterly earnings of 4 cents per share, 5 cents below estimate, with earnings also below estimate.
Shares of Carvana (CVNA) are recovering after the online used car retailer posted unexpected profit, its first ever, for its final quarter, as well as revenue that far exceeded analysts’ forecasts. Auto sales in general have seen a boom in demand since the pandemic began last year.
Yelp (YELP) gained 5 cents per share for its most recent quarter, compared to consensus forecasts of a loss of 9 cents per share. The operator of the online review site also reported better than expected revenue and increased its guidance for the full year, as well as advertising revenue which continues to strengthen.