Jobs Report, Peloton, Square, DraftKings, Tesla: 5 Things You Must Know

Stock futures rise modestly as Wall Street awaits the jobs report for April; DraftKings reports earnings; revenue at Peloton and Square handily top expectations.
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Here are five things you must know for Friday, May 7:

1. -- Stock Futures Rise Ahead of Jobs Report

Stock futures rose modestly Friday as Wall Street awaited a jobs report that is expected to be another indicator of a U.S. economic recovery.

Contracts linked to the Dow Jones Industrial Average rose 97 points, S&P 500 futures were up 11 points and Nasdaq futures gained 45 points.

The Dow closed at an all-time high Thursday after weekly jobless claims fell to a pandemic low, suggesting solid labor-market strength heading into Friday's official U.S. jobs report that could show a million jobs added in April. The S&P 500 rose 0.82% and the Nasdaq advanced 0.37%.

Stocks have traded higher in recent weeks amid optimism that the pandemic in the U.S. was receding as vaccination programs have helped people get back to work and allowed restrictions to be lifted. 

But with the reopening of the economy has come concern about rising inflation and worries the Federal Reserve could begin tapering its $120 billion of monthly asset purchases.

The Federal Reserve has remained united in its message on inflation risks and its commitment to keeping interest rates at record lows for at least the next two years. However, economists have begun suggesting its increasingly likely the Fed could begin pulling back on its monthly bond purchases in the second half of the year.

Copper prices soared to an all-time high on expectations demand will increase as economies reopen.

2.-- Friday's Calendar: Jobs Report and DraftKings Earnings

The U.S. economic calendar Friday includes the official U.S. jobs report for April at 8:30 a.m. ET.

Economists surveyed by FactSet expect the U.S. economy to have added 975,000 jobs last month, up from the higher-than-expected 916,000 in March.

The unemployment rate is forecast to fall to 5.8% in April from 6% in March. 

Nonfarm payrolls are the most closely watched of all the economic indicators. April's report will be no different with investors eager to learn how strongly the economy is accelerating out of the pandemic.

DraftKings  (DKNG) - Get Report reported first-quarter revenue of $312 million, well above analysts' forecasts, and the sports-betting company raised revenue guidance for 2021 to between $1.05 billion and $1.15 billion.

Earnings reports are also expected Friday from Cigna  (CI) - Get Report, Elanco Animal Health  (ELAN) - Get Report, AMC Networks  (AMCX) - Get Report, Enbridge  (ENB) - Get Report and Nikola  (NKLA) - Get Report.

3. -- Peloton's Revenue More Than Doubles 

Peloton Interactive  (PTON) - Get Report was rising sharply in premarket trading Friday after the fitness technology company said revenue in its fiscal third quarter than doubled and that the hit it will take from a recall of its treadmills would be less than feared.

Revenue at Peloton jumped 141% in the quarter to $1.26 billion, topping expectations of $1.12 billion. Revenue in the company's connected-fitness segment was $1.02 billion, up 140% year over year. It accounted for 81% of total revenue.

Connected-fitness-subscription workouts tripled (up 239%) to more than 149.5 million. 

Peloton said it expects revenue in the current fiscal fourth quarter of $915 million and $4 billion for the fiscal year. Its previous guidance called for fiscal-year revenue of $4.08 billion.

The recall of its treadmills would reduce sales by about $165 million, Peloton said. 

The stock rose 6.46% to $89.19 in premarket trading.

4. -- Square's Quarterly Revenue of $5.06 Billion Gets Boost From Bitcoin

Square  (SQ) - Get Report traded higher early Friday after first-quarter earnings and sales topped analysts' forecasts amid explosive growth in digital transactions.

Adjusted earnings of 41 cents a share in the quarter topped analysts' forecasts for 17 cents. Revenue soared almost four times in the quarter to $5.06 billion.

Bitcoin revenue amounted to $3.51 billion, up from $306 million a year earlier and estimates of $2.06 billion.

Gross payments volume rose 29% to $33.14 billion.

Analysts at Truist, which rates the stock a buy, said Square remains the best-positioned fintech that it covers.

Shares of Square rose 3.36% in premarket trading to $231.49.

5. -- Tesla: Full Self-Driving Cars May Not Be Ready by Year-End

Tesla  (TSLA) - Get Report told a California regulator it may not achieve full self-driving technology by the end of this year, Reuters reported, citing a memo written by the California Department of Motor Vehicles (DMV) showed. 

Tesla CEO Elon Musk had said in January that he was "highly confident the car will be able to drive itself with reliability in excess of human this year."

Tesla has also rolled out what it describes as a "beta" version of its "full self-driving" program to a limited number of employees and customers since October, Reuters noted. Musk also has touted the capability on Twitter.

"Elon's tweet does not match engineering reality per CJ. Tesla is at Level 2 currently," the California DMV said in a memo about its conference call in March with Tesla representatives, including autopilot engineer CJ Moore. Level 2 technology means the car can steer itself and accelerate but the driver still must be ready to take the wheel.

The memo was released by legal transparency group PlainSite, which obtained it under the Freedom of Information Act.

Musk, meanwhile, will be hosting "Saturday Night Live" this weekend.