US Stocks Analysis 

U.S. stock futures fell slightly Thursday night after the major averages dropped for a fourth day, and investors looked ahead to the October jobs report for clues into the pace of future rate hikes from the Federal Reserve. Dow Jones Industrial Average futures fell by 44 points, or 0.14%. S&P 500 and Nasdaq 100 futures dipped 0.15% and 0.12%, respectively. During the regular session Thursday, the Dow Jones Industrial Average slid 146.51 points, or about 0.5%. The S&P 500 lost nearly 1.1%, while the Nasdaq Composite shed 1.7%. Investors weighed the latest 0.75 percentage point rate hike from the Fed, as well as commentary from chair Jerome Powell that suggested a pivot could be further away than traders anticipated. The October nonfarm payrolls report on Friday will give investors further clues into where the economy stands, and how much work the central bank has ahead of it to bring down inflation. Economists polled by Dow Jones expect 205,000 jobs were added last month and predict that the unemployment rate held steady at 3.5%. All the major averages are on track to close out the week with losses. Through Thursday, the Dow is down 2.62%, and set to end four weeks of gains. The S&P and Nasdaq are down 4.64% and 6.84%, respectively, on pace to break two-week winning streaks. The tech-heavy Nasdaq is on pace for its worst weekly performance since January 2022.

Coinbase Global posted a loss of $2.43 per diluted share in the third quarter, compared with earnings of $1.62 a share a year ago, as its main revenue driver—crypto trading—continues to remain depressed in the wake of the market’s crash. The largest U.S. crypto exchange lost $545 million on total sales of $590 million in the quarter, down from a profit of $406 million on $1.3 billion of total sales the same quarter last year. The numbers were slightly worse than expected. Analyst consensus was for a loss of $2.38 a share on sales of $641 million. A key measure of customer engagement, monthly transacting users, or MTU, rose to 8.5 million in the third quarter from 7.3 million a year ago, but fell from 9 million in the second quarter. Shares were up about 5% in late trading.

PayPal shares fell more than 5% in after-hours trading, despite beating earnings and revenue expectations for the third quarter, as the company’s Q4 revenue estimate came in behind analysts’ expectations – EPS of $1.08 per share, ex-items, vs. 96 cents expected, while revenue came in at $6.85 billion, vs. $6.82 billion expected. The company estimated Q4 revenues to come in at $7.38 billion, which is less than the $7.74 billion consensus expectations, according to analysts. PayPal raised EPS guidance for the full fiscal year, saying it’s benefited from “ongoing productivity initiatives.” It expects to add 8 to 10 million net new active users in the fiscal year. The company said it’s working with Apple to enhance its offerings for PayPal and Venmo, including by letting U.S. merchant customers accept contactless payments through their mobile wallets and adding PayPal and Venmo network-branded credit and debit cards to the Apple Wallet.

Starbucks on Thursday reported quarterly earnings and revenue that topped analysts’ estimates, fueled by U.S. customers spending more on iced coffee drinks and Pumpkin Spice Lattes. The Seattle-based coffee company also said U.S. traffic improved in the quarter, and has nearly bounced back to 2019 levels. “Despite elevated pricing actions taken throughout the year, daily store traffic in the U.S. reached approximately 95% pre-pandemic levels in September fueled by the wildly successful fall promotion,” Chief Financial Officer Rachel Ruggeri said on the company’s quarterly conference call. Shares rose 2.7% in after-hours trading. The company reported EPS of 81 cents adjusted vs. 72 cents expected and revenue of $8.41 billion vs. $8.31 billion expected. Net sales for the period rose 3.3% to $8.41 billion. Global same-store sales increased 7%, fueled by increased spending in its home market. In the United States, Starbucks reported same-store sales growth of 11%, which was the result of people spending more on average and a slight uptick in traffic. Prices were also up 6% from a year ago, but executives said they don’t plan to raise prices anymore for the time being. Cold beverages accounted for more than three-quarters of beverage sales at U.S. company-owned cafes. Starbucks said customers are more likely to add pricy syrups, cold foam and dairy substitutes to cold drinks, driving up their price. The company’s loyalty program saw its active membership climb 16% to 28.7 million people in the quarter. Outside the U.S., Covid-19 restrictions in China continued to weigh on Starbucks’ international performance. The company’s international same-store sales fell 5%, which wasn’t as steep as the 7.1% expected decline. Same-store sales in China, Starbucks’ second-largest market, fell 16% in the quarter. For fiscal 2023, Starbucks is projecting revenue growth of 10% to 12%, despite a 3% hit from foreign currency translation. The company also expects its global same-store sales growth on the high end of its prior range of 7% to 9%. However, the fiscal first quarter will likely be on the low end of that range due to lockdowns in China. Starbucks also said that its adjusted earnings per share growth in fiscal 2023 will be on the low end of its prior range of 15% to 20%, citing the costs of its reinvention plan. Ruggeri also said that the company is predicting that commodity headwinds will continue into fiscal 2023, although at a lower level than in fiscal 2022. For its fourth-quarter net income attributable to Starbucks of $878.3 million, or 76 cents per share, down from $1.76 billion, or $1.49 per share, a year earlier. Excluding restructuring and impairment costs, the sale of its Russian joint venture and other items, Starbucks earned 81 cents per share.