US stock futures turned lower on Thursday, with the benchmark S&P 500 index within a whisker of recouping this year’s declines, before jobs data and the latest updates from stimulus talks in Washington.
Democrat and Republican lawmakers are set to continue their week-long negotiations in the nation's capital today, but remain trillions of dollars apart on their respective coronavirus financial recuse plans.
The White House increased pressure on Democrats yesterday, saying they were prepared suspend negotiations and use executive actions by President Trump if an agreement isn’t reach by the end of this week.
Separately, Secretary of State, Mike Pompeo, urged US companies to remove Chinese technology from their networks; those comments suggesting that US attempts to counter China may go beyond TikTok.
Ahead, today's economic calendar includes; Weekly Jobless Claims at 8:30am EST - 1.42M claims are expected week ended ended Aug. 1.
TODAY'S TOP HEADLINES
Coronavirus: Surge in Virus Cases Dampens Europe’s Hopes for Rapid Recovery. (Bloomberg)
An increase in coronavirus cases across Europe threatens to snuff out hopes of a quick recovery as locations from Aberdeen to Catalonia reinstate measures to control the disease.
Today's Economical Announcements.
08:30AM - ★★★ - Weekly Jobless Claims (Previous: 1.434M)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Sonos (SONO): [EARNINGS] Saw quarterly sales beat Wall Street expectations, as the high-end speaker maker shifted its focus to digital sales amid pandemic-related store closures. Sonos did, however, report an overall loss for the quarter.
Roku (ROKU): [EARNINGS] Lost 35 cents per share for its latest quarter, smaller than the 50 cents a share loss that analysts had anticipated. Revenue also beat forecasts, but the shares have come under pressure after the streaming video device maker said advertising industry uncertainty will persist through the third and fourth quarters.
Bausch Health (BHC): [NEWS] Plans to spin off its Bausch & Lomb eye care unit into a separate publicly traded company. Bausch said it was taking the action to unlock unrecognized value in the eye care business.
Zynga (ZNGA): [GUIDANCE] Raised its full-year bookings forecast, after better-than-expected quarterly results. The digital game maker got a pandemic-related boost from increased engagement by players stuck at home during the pandemic.
Kontoor Brands (KTB): [EARNINGS] Reported a quarterly loss of 22 cents per share, compared to a consensus estimate of a 40 cents per share loss. Revenue was above estimates, with the company saying it was in good financial position despite the short-term negative impact of the pandemic.
ViacomCBS (VIAC): [EARNINGS] Reported quarterly profit of $1.25 per share, beating the 95 cents a share consensus estimate. Revenue came in above forecasts as well. ViacomCBS pointed to rapid growth in its streaming business and said it is successfully managing through the effects of the pandemic.
Live Nation (LYV): [EARNINGS] Reported a quarterly loss of $2.67 per share, wider than the loss of $2.08 predicted by Wall Street analysts. The live event promoter also saw revenue come in well below estimates, with the pandemic virtually eliminating large gatherings and events.
Costco (COST): [NEWS] Reported a July comparable sales increase of 13.2%, more than twice what Wall Street had anticipated. The warehouse retailer also saw a more than 75% jump in digital sales.
Bristol-Myers (BMY), Pfizer (PFE): [EARNINGS & NEWS] Bristol-Myers and Pfizer won a key patent case involving the blood thinner Eliquis, with a judge ruling that drug companies Sigmapharm, Sunshine Lake Pharma, and Unichem had infringed the product’s patents. Bristol and Pfizer have a profit-sharing agreement involving Eliquis. Separately, Bristol-Myers beat estimates for both earnings and revenue for its latest quarter, and raised its full-year forecast based on expectations of greater use of its drugs in hospitals as delayed medical procedures are carried out.
Hilton Worldwide (HLT): [EARNINGS] Lost 61 cents per share for the second quarter, wider than the 31 cents a share loss that Wall Street analysts had been anticipating. Revenue was also below estimates, with Hilton suffering from the pandemic-induced drop in travel demand.
Restaurant Brands (QSR): [EARNINGS] Earned 33 cents per share for its latest quarter, 4 cents a share above estimates. Revenue also beat Wall Street forecasts. The company said it was back to about 90% of the prior year’s systemwide sales by the end of the quarter.
Etsy (ETSY): [EARNINGS] Reported quarterly profit of 75 cents per share, well above the 39 cents a share consensus estimate. The online marketplace’s revenue also beat Wall Street forecasts, as it saw nearly 19 million new and reactivated buyers.
GAINERS: SGRY, MIDD, AIZ, ENPH, RUN, VSLR
DECLINERS: VAPO, TDOC, DK, EVRG
Acutus Medical (AFIB) (Price: 18) (Est. Vol: $158.8M)
Gores (GRSVU) (Price: 10) (Est. Vol: $475.0M)
Kismet Acquisition One (KSMTU) (Price: 10) (Est. Vol: $250.0M)
Oak Street Health (OSH) (Price: 21) (Est. Vol: $328.1M)
Rocket Companies (RKT) (Price: 18) (Est. Vol: $1.8B)
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