US equity futures were positioned lower on Friday, following a mixed bag of earnings from some of America's largest technology companies.
Nasdaq 100 contracts fell over -2% this morning, after Apple’s (AAPL) iPhone sales and Twitter’s (TWTR) user growth both missed estimates.
These corporate developments added to volatility that’s likely to remain elevated until next week’s presidential election. Until then, the market will also assess the spread of Covid-19, amid record high US infections.
Ahead, in today's economic calendar, Friday includes; Personal Income and Outlays for September at 8:30am, the Chicago PMI for October at 9:45am and Consumer Sentiment for October at 10:00am EST.
In earnings; Chevron (CVX), Honeywell International (HON) and Exxon Mobil (XOM) all reported their Q3 financial results earlier this morning.
TODAY'S TOP HEADLINES
Coronavirus: US Cases Reach New Record. (The WSJ)
The US recorded its highest number of coronavirus cases in a day so far (88,500), as the pandemic intensified across nearly all US states.
Today's Economical Announcements.
08:30AM - ★☆☆ - Personal Income (Sep) (Previous: -2.7%)
08:30AM - ★★☆ - Personal Spending (Sep) (Previous: 1.0%)
09:45AM - ★★☆ - Chicago PMI (Oct) (Previous: 62.4)
10:00AM - ★★☆ - Michigan Consumer Expect. (Oct) (Previous: 78.8)
10:00AM - ★★☆ - Michigan Consumer Senti. (Oct) (Previous: 81.2)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Apple (AAPL): [EARNINGS] Reported quarterly earnings of 73 cents per share, 3 cents a share above estimates. Revenue also topped forecasts, however iPhone sales tumbled 21% as Apple delayed launching the new iPhone 12 until October.
Twitter (TWTR): [EARNINGS] More than tripled the consensus estimate of 6 cents a share, with quarterly earnings of 19 cents per share. Revenue was well above consensus, however Twitter posted its slowest user growth since late 2017.
Amazon.com (AMZN): [EARNINGS] Earned $12.37 per share for its latest quarter, well above the consensus estimate of $7.41. Revenue beat estimates as well. Amazon’s costs jumped during the quarter, however, as it added staff and took other measures to handle the pandemic-induced surge in online shopping.
Facebook (FB): [EARNINGS] Reported profit of $2.72 per share for the third quarter, beating the consensus estimate of $1.91 a share. Revenue also came in above Street forecasts, but Facebook warned of a “significant amount of uncertainty” for the coming year.
Alphabet (GOOGL): [EARNINGS] Earned $16.40 per share for its latest quarter, compared to the $11.29 a share consensus estimate. Revenue exceeded analysts’ forecasts as well. The Google parent saw a return to growth in digital advertising, while YouTube exceeded the $5 billion mark in ad revenue for the first time.
Exxon Mobil (XOM): [EARNINGS] Lost 18 cents per share for the third quarter, smaller than the 25 cents a share loss that analysts were expecting. Revenue came in above analysts’ forecasts. Exxon is also planning smaller capital expenditures for 2021, to $16 billion to $19 billion, from $23 billion this year.
Chevron (CVX): [EARNINGS] Posted a third-quarter profit of 11 cents per share, compared to analysts’ forecasts of a 27 cents per share loss. Chevron’s revenue came in below estimates, but managed a profit by controlling costs.
Honeywell (HON): [EARNINGS] Earned $1.56 per share for the third quarter, 7 cents a share above estimates. Revenue also topped forecasts, helped by cost-cutting and strong demand for warehouse automation equipment.
Colgate-Palmolive (CL): [EARNINGS] Beat estimates by 9 cents a share, with quarterly earnings of 79 cents per share. Revenue was also above estimates and Colgate said it expected net sales and organic sales to be up in the mid-single digit range for the full year.
Under Armour (UAA): [EARNINGS] Earned 26 cents per share for its latest quarter, well above the consensus estimate of 3 cents a share. Revenue was above analysts’ forecasts as well. It also forecast full-year revenue above consensus estimates, on growing demand for home and outdoor workout apparel.
Newell Brands (NWL): [EARNINGS] Beat consensus estimates by 40 cents a share, with quarterly profit of 84 cents per share. The company behind such brands as Yankee Candle and Elmer’s Glue also said it expected flat-to-single-digit core sales growth for the current quarter.
Starbucks (SBUX): [EARNINGS] Beat estimates by 20 cents a share, with quarterly earnings of 51 cents per share. The coffee chain’s revenue also came in above estimates and Starbucks forecast a return to sales growth in 2021 amid a faster than expected return by customers to its stores.
Activision Blizzard (ATVI): [EARNINGS] Reported quarterly earnings of 71 cents per share, 6 cents a share above estimates. The videogame maker’s revenue also topped Wall Street projections. Activision gave an upbeat holiday season forecast, with a new “Call of Duty” game set for release in mid-November.
Shake Shack (SHAK): [EARNINGS] Lost 11 cents per share for its latest quarter, smaller than the 21 cents a share loss that analysts were expecting. The restaurant chain’s revenue was also better than expected, and although same-restaurant sales tumbled nearly 32%, that drop was smaller than anticipated. Shake Shack did not give any forward guidance but said it is confident in a full long-term recovery.
Skechers (SKX): [EARNINGS] Earned 53 cents per share for its latest quarter, 17 cents a share above estimates. The footwear maker’s revenue above estimates as well. Skechers did not provide a financial outlook due to pandemic-related uncertainty.
GAINERS: IPHI, RLGY, CBRE, NIO, EGHT, TUP
DECLINERS: HOME, CNST, FLWS
Atea Pharmaceuticals (AVIR) (Price: 24) (Est. Vol: $300.0M)
Inhibikase Therapeutics (IKT) (Low: 10, Hugh: 12) (Est. Vol: $25.0M)
Lufax (LU) (Low: 11.50, 13.50) (Est. Vol: $2.1875B)
SQZ Biotechnologies (SQZ) (Price: 16) (Est. Vol: $70.6M)
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