Joe Biden, Jobs Report, Peloton, Uber, Roku - 5 Things You Must Know Friday

Stock futures decline as the vote count for the White House continues and Wall Street awaits the jobs report for October; Peloton tumbles after warning of supply constraints; Uber posts a loss of $1.09 billion.
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Here are five things you must know for Friday, Nov. 6:

1. -- Stock Futures Lower as Election Rally Eases

Stock futures declined Friday, giving back some gains from this week's post-election rally, as the vote count for the White House continued and Wall Street awaited the jobs report for October.

Contracts linked to the Dow Jones Industrial Average fell 222 points, S&P 500 futures were down 33 points and Nasdaq futures declined 142 points.

Stocks finished higher Thursday with tech shares leading the gains as the results in Tuesday's U.S. elections suggested the potential for corporate tax hikes and tighter regulations had diminished.

Following Thursday's gains, the S&P 500 was headed for its best week since April. The tech-heavy Nasdaq 100 has jumped more than 9% this week.

The Federal Reserve on Thursday held interest rates near zero and repeated its pledge to use its "full range of tools to support the U.S. economy in this challenging time."

Fed Chairman Jerome Powell stressed the U.S. would "have a stronger recovery if we can get more fiscal support” from Congress.

Powell also said the path to recovery for the world's biggest economy largely would depend on the course of the coronavirus pandemic. Earlier this week, the U.S. became the first country to top 100,000 virus infections in a single day.

Joe Biden leads in vote counting for Tuesday’s U.S. presidential election, potentially needing just one more state to secure the 270 Electoral College votes necessary to claim victory. Reports early Friday said he has taken the lead in Georgia. President Donald Trump has questioned the legitimacy of the vote totals.

Asian stocks ended Friday's session mostly mixed, while European stocks declined.

For more on Asian markets read:

China’s Semiconductors: Latest U.S. Export Controls May Hinder Ambitions to Catch Up

2. -- U.S. Expected to Have Added 580,000 Jobs in October

The economic calendar in the U.S. Friday includes the official U.S. jobs report for October at 8:30 a.m. Economists surveyed by FactSet expect 580,000 jobs were added to payrolls in the U.S. last month, down from 661,000 in September.

The unemployment rate is expected to decline to 7.7% from 7.9%.

CVS Health  (CVS) - Get Report reported stronger-than-expected third-quarter earnings and lifted its full-year profit outlook as pharmacy sales and improving store traffic boosted its top and bottom lines.

The company also said the longtime CEO Larry Merlo will retire in February and will be replaced by Karen Lynch, who currently runs the Aetna Healthcare unit.

Reports are also expected Friday from ViacomCBS  (VIACA) - Get Report, Elanco Animal Health  (ELAN) - Get Report, Coty  (COTY) - Get Report, DISH Network  (DISH) - Get Report, E.W. Scripps  (SSP) - Get Report and Hershey  (HSY) - Get Report.

CVS Health is holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.

3. -- Peloton Tumbles on Warning of Supply Constraints

Peloton Interactive  (PTON) - Get Report swung to a profit in its fiscal first quarter but the stock was falling after the connected-fitness company pointed to possible supply issues as demand for its products has surged during the coronavirus pandemic.

The stock fell 6.36% to $118.58 in premarket trading Friday.

For the quarter ended Sept. 30, Peloton reported net income of 20 cents a share compared with a year-earlier loss of $1.29 a share. Revenue jumped to $757.9 million from $228 million.

Analysts had been expecting earnings of 11 cents a share on revenue of $735.2 million.

However, Peloton said it will be “operating under supply constraints for the foreseeable future" given the unprecedented pandemic-driven demand for its products and that this would continue "for the foreseeable future."

"As we rapidly scale our organization to meet the extraordinary demand for our products, we realize that some of our members have faced extended delays associated with receiving our products or having support requests fulfilled," the company said in a note to shareholders.

4. -- Uber's Ride-Share Business Still Hurting but Eats Sees Growth

Uber  (UBER) - Get Report fell in premarket trading after reporting a massive loss as its ride-sharing business continues to suffer from the effects of the coronavirus pandemic and economic shutdowns.

The company posted a third-quarter loss of $1.09 billion, narrower than losses of $1.16 billion a year earlier. Revenue in the quarter dropped 18% to $3.13 billion.

Uber said gross mobility bookings, its core ride-share business, fell 53% to $5.9 billion from a year earlier, but an improvement from the previous quarter's drop of 75%.

Delivery bookings, tied to Uber's Eats services, were a bright spot, jumping 134% to $8.55 billion.

Uber's chief financial officer, Nelson Chai, said the company remains confident it can reach adjusted Ebitda profitability by the end of 2021.

The stock was down 3.36% to $40.55 in premarket trading.

5. -- Roku Posts a Surprise Third-Quarter Profit

Roku  (ROKU) - Get Report shares rose after the streaming platform company reported a surprise third-quarter profit.

Roku reported earnings of 9 cents a share on revenue of $452 million, a 73% year-over-year increase. Analysts were expecting Roku to post a loss of 40 cents a share on revenue of $367.8 million.

Roku added 2.9 million active accounts in the quarter, bringing its total to 46 million, up 43% from a year earlier.

"As the ongoing Covi-19 pandemic continued to accelerate the shift of viewing away from traditional linear and pay TV, we continued to invest in competitive differentiation and execute well against our strategic plan," Roku said in a statement.

Shares of Roku were rising 3.97% in premarket trading to $234.

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