Stock index futures move higher early on during Friday's premarket session after Wall Street received a mixed payrolls report.
Job growth was stronger than expected in October despite Federal Reserve interest rate increases aimed at slowing what is still a strong labor market.
Nonfarm payrolls grew by 261,000 for the month while the unemployment rate moved higher to 3.7%, the Labor Department reported Friday. Those payroll numbers were better than the Dow Jones estimate for 205,000 more jobs, but worse than the 3.5% estimate for the unemployment rate.
Market Snapshot
At 8:45 a.m. ET, Dow e-minis were up 0.78%, S&P 500 e-minis were up 1%, and Nasdaq 100 e-minis were up 1.04%.
Pre-Market Movers
DraftKings – DraftKings fell 12.5% in premarket trading despite reporting a smaller-than-expected quarterly loss and revenue that topped Wall Street forecasts. The sports betting company also raised its revenue guidance and warned a prolonged economic downturn could impact spending by its customers.
Cinemark – The movie theater operator’s stock rallied 6.5% after reporting better-than-expected quarterly revenue, even though its loss was larger than analysts had anticipated.
Hershey – Hershey rose 1% in the premarket after quarterly results beat estimates and the candy and chocolate maker raised its sales and profit outlook. Hershey’s improved outlook signals strong Halloween candy sales.
China stocks – Shares of China-based companies that trade in the U.S. rallied in off-hours trading on reports that China would ease its strict Covid-19 protocols. Alibaba jumped 9.7%, JD.com gained 9.3%, Pinduoduo added 8.8% and Bilibili surged 14.4%.
Starbucks – Starbucks shares rose 4.6% in the premarket after the coffee chain reported better-than-expected profit and revenue for its latest quarter, with sales hitting a record high. Starbucks said its investments in new equipment and higher wages for workers are paying off.
DoorDash – DoorDash stock rallied 11.9% in premarket trading on the strength of record orders and better-than-expected revenue, although its quarterly loss was wider than expected. Customers continue to spend on food delivery even in the face of higher prices.
Twilio – The maker of customer engagement software saw its stock slump 25.1% in premarket action after a weaker-than-expected sales forecast. The outlook overshadowed a smaller-than-expected quarterly loss and revenue that exceeded estimates.
Expedia – Expedia reported a quarterly profit that came in slightly below Wall Street forecasts, but revenue exceeded estimates and topped $1 billion for the first time on strong travel demand. Expedia gained 3.5% in the premarket.
PayPal – PayPal shares slid 6.9% in the premarket despite better-than-expected quarterly profit and revenue for the payment service operator. Investors are focusing on PayPal’s lowered annual revenue growth forecast, with the company expressing caution about the impact of an economic downturn.
Coinbase – Coinbase jumped 6.5% in premarket trading, even as it reported a wider-than-expected loss and revenue that fell short of analyst forecasts. The cryptocurrency exchange operator also saw a surge in interest income and made progress in diversifying its revenue streams.
Block – Block shares surged 14% in premarket action after it reported quarterly revenue and profit that beat Wall Street forecasts. The payment service operator’s subscription-based revenue jumped 71% from a year ago.
Warner Bros. Discovery – Warner Bros. Discovery reported a wider-than-expected loss for its latest quarter and revenue that fell short of analyst estimates. Separately, Bloomberg reported that the media company plans to cut jobs in its Warner Bros. film unit. The stock fell 3.3% in premarket action.
Carvana – Carvana slid 7.4% in premarket trading after the used-car retailer reported worse-than-expected quarterly results. Increased car prices and higher interest rates were key factors in denting demand.
Market News
Block Stock Surges After Cash App, Square Drive Big Q3 Earnings Beat
Block stock gained after the payment tech company's Q3 earnings and revenue exceeded Wall Street expectations as gross profit at both its Cash App and Square ecosystem units climbed from the prior quarter and a year ago.
Q3 gross payment volume of $54.4B from $52.5B in Q2 and from $45.4B in Q3 2021.
Q3 adjusted EPS of $0.42 vs. $0.23 consensus, $0.18 in Q2 and $0.25 in the year-ago quarter.
Q3 total net revenue of $4.52B, vs. $4.47B consensus, $4.40B in the prior quarter and $B in the year-ago period.
Coinbase Shares Rally As Q3 Earnings Miss but Users Grow
Coinbase Global reported third-quarter earnings Thursday showing the company missed estimates on revenue and earnings. However, it retained users and lowered expenses better than analysts predicted.
Revenue: $590.3 million versus expectations of $649.15 million
Adjusted EBITDA: -$116 million versus expectations of -$212.95 million
Adjusted earnings per share: -$2.43 versus expectations of -$2.12
Monthly Transacting Users (MTUs): 8.5 million versus expectations of 7.84 million
“Q3 was a mixed quarter for Coinbase. Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as trading volume moving offshore,” Coinbase said in its third-quarter letter.
Starbucks Beats Quarterly Sales Estimate on Pricey Drinks, Robust Demand
Starbucks Corp topped Wall Street estimates for quarterly comparable sales on Thursday, as pricier drinks and strong demand from consumers in North America helped the coffee chain.
Global comparable sales at the Seattle-based company rose 7% in the fourth quarter ended Oct. 2, while analysts on average had expected a 4.2% rise, according to Refinitiv IBES.
DoorDash Soars on Revenue Beats Estimates As Appetite for Food Delivery Holds up
Food delivery company DoorDash Inc said orders surged to a record high in the third quarter as people stuck to their pandemic-era habits despite rising inflation and steeper prices, helping it beat Wall Street targets for revenue.
DoorDash recorded 439 million orders in the quarter and a 30% rise in gross order value - the total value of all app orders and subscription fees - to $13.5 billion.
It forecast fourth-quarter gross order value of between $13.9 billion and $14.2 billion, and reiterated full-year expectations for the key industry metric.
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