U.S. stock index futures rose on Friday as Amazon's better-than-expected earnings countered Apple's tepid sales forecast.
Nonfarm payrolls increased 187,000 in July and the unemployment rate was 3.5%, the Labor Department reported Friday. That compared to the Dow Jones consensus estimates for growth of 200,000 and a jobless level of 3.6%.
Market Snapshot
At 8:00 a.m. ET, Dow e-minis were down 4 points, or 0.01%, S&P 500 e-minis were up 5.5 points, or 0.12%, and Nasdaq 100 e-minis were up 26.25 points, or 0.17%.
Pre-Market Movers
Apple — Shares of the tech giant dropped nearly 2.4% in premarket trading. The company reported earnings per share for the fiscal third quarter came at $1.26, above the $1.19 expected by analysts polled by Refinitiv. Apple’s revenue, which came in higher than anticipated, was down about 1% on a year-over-year basis, showing a decline for the third consecutive quarter as the company reported a decline in sales of its hardware products.
Block — Shares of the payments tech company slid more than 5% in premarket trading even after the firm reported second-quarter earnings and revenue above expectations. The company formerly known as Square reported earnings of 39 cents per share, beating expectations by 3 cents, according to Refinitiv. Revenue of $5.53 billion also came in higher than the expectation of $5.10 billion.
Coinbase — Shares of the crypto exchange fell 1.5% in early morning trading Friday after the company posted a narrower-than-expected loss of 42 cents a share late Thursday. Analysts polled by Refinitiv estimated a loss of 77 cents per share. Revenue also surpassed expectations, coming in at $708 million, versus analysts’ forecast for $633 million.
Amazon — The e-commerce giant popped more than 9% following a strong second-quarter results and upbeat revenue guidance for the current period. Amazon reported earnings of 65 cents a share, ahead of the 35 cents expected by analysts, per Refinitiv. Revenue rose 11% during the period and came in at $134.4 billion, ahead of the expected $131.5 billion.
Booking Holdings — The stock soared by more than 12% after Bookings Holdings said it expects gross bookings to grow in the third quarter. The online travel company also reported second-quarter adjusted earnings of $37.62 per share on revenue of $5.46 billion, while analysts polled by Refinitiv called for earnings of $28.90 per share on revenue of $5.17 billion.
Nikola — Shares of the electric truck maker rose 1.9% after the company said late Thursday that it won shareholder approval to issue new stock. The vote will allow Nikola to raise additional funds to support the launch of a fuel-cell-powered electric semi truck and buildout of a hydrogen refueling network in the U.S. and Canada.
Fortinet — Fortinet tumbled 18.8% after posting a mixed second-quarter report and outlook. The cybersecurity company posted 38 cents in adjusted earnings per share on $1.29 billion in revenue, while analysts polled by Refinitiv had expected 34 cents per share on $1.3 billion. Fortinet similarly issued mixed guidance for the current quarter, with forecast earnings in line with expectations and revenue coming in softer than the Street’s expectations.
Tupperware Brands — The stock popped 56% before the bell Friday on news that the container maker finalized a debt restructuring deal, which it expects will help reduce or reallocate about $150 million of cash interest and fees. The deal would also give Tupperware immediate access to a revolving borrowing capacity of about $21 million, the company said Thursday.
Opendoor Technologies — Shares dropped 10.3% after Opendoor Technologies issued weak third-quarter revenue guidance. The online home selling company estimates third-quarter revenue of $950 million to $1.0 billion, lower than the $1.36 billion expected by analysts polled by StreetAccount.
DraftKings — Shares of the digital gambling company gained 12% after DraftKings flew past analysts’ estimates in the second quarter. The company reported a loss of 17 cents per share on revenue of $875 million, surpassing analysts’ calls for a loss of 25 cents a share and $764 million in revenue, per Refinitiv.
Market News
Apple Set to Relinquish Historic $3 Trillion Value as Sales Fall
Apple Inc.’s market value is set to dip below the historic $3 trillion level after the iPhone maker’s outlook for the fourth quarter sparked worries over tepid demand for its handsets and other gadgets.
Shares in the California-based company dropped as much as 2.49% in US premarket trading Friday, giving it a market value of about $2.95 trillion if the move holds. Apple posted its third straight quarter of declining sales late on Thursday, and predicted a similar performance in the current period.
Amazon Shares Jump 8.7% Premarket on Cloud, Consumer Sales Lift
Amazon.com Inc on Thursday reported sales growth and profit ahead of Wall Street's expectations, as the company delivered goods faster and more cheaply to shoppers and as recent cloud-computing headwinds began to subside.
Amazon's shares surged 9% in premarket trading on Friday.
Tupperware Stock Soars 59% After Debt Restructuring Agreement
Tupperware Brands said on Thursday it has finalized an agreement with its lenders to restructure its debt obligations in an effort to turnaround its business, sending its shares soaring 59% in premarket trading on Friday.
The agreement will help the company to reduce or reallocate about $150 million of cash interest and fees, and would give it immediate access to a revolving borrowing capacity of about $21 million.
Known for its plastic airtight storage containers and bowls, Tupperware has seen a sharp drop in demand recently as consumers limit discretionary purchases amid higher prices and fears of recession.
Cloudflare Raises Full-Year Forecasts As Tech Spending Bounces Back
Software firm Cloudflare raised its annual revenue and profit forecasts after delivering better-than-expected results for the second quarter on Thursday, sending its shares up nearly 9% in premarket trading on Friday.
Companies are increasing their expenditure on technology as cooling inflation and the recent strength in consumer activity signal a stabilizing macroeconomic outlook.
Cloudflare now sees 2023 revenue in the range $1.283 billion to $1.287 billion, compared with its earlier forecast of $1.280 billion to $1.284 billion. It also raised its adjusted per-share profit forecast by more than 2 cents.
Coinbase Quarterly Loss Narrows, Revenue Exceeds Estimates
Coinbase Global Inc., the largest US cryptocurrency exchange, said its second-quarter loss narrowed and revenue exceeded estimates.
The net loss for the little more than a decade-old-firm narrowed to $97 million, or 42 cents a share, from a record $1.1 billion, or $4.98, a year earlier. Revenue declined 12% to $707.9 million, higher than the $631.2 million consensus estimate of analysts surveyed by Bloomberg. Quarterly transaction revenue fell to $327.1 million.
