Here are five things you must know for Friday, Nov. 1:
1. -- Stock Futures Rise Ahead of U.S. Jobs Report
U.S. stock futures rose Friday ahead of a U.S. jobs report that is expected to show a notable slowdown in U.S. job creation in October.
U.S. employers are forecast to have added 89,500 new jobs last month, down from a 136,000 increase in September, with wages ticking modestly higher and the headline unemployment rate rising to 3.6% from 3.5% in September, a 50-year low.
A weaker payrolls reading, however, could alter market assumptions on Federal Reserve rate cuts following signals of a pause in monetary easing from Chairman Jerome Powell earlier this week, while stronger job gains would cement the case for the current U.S. growth story that has, in part, underpinned record highs on Wall Street.
Stocks in Asia and Europe traded mostly to the upside following a stronger-than-expected reading for China's manufacturing sector.
Contracts tied to the Dow Jones Industrial Average rose 50 points, futures for the S&P 500 gained 5.95 points, and Nasdaq futures were up 20 points.
The economic calendar in the U.S. Friday includes the U.S. nonfarm payrolls report for October at 8:30 a.m. ET, the ISM Manufacturing Index for October at 10 a.m. and Construction Spending for September at 10 a.m.
Federal Reserve Vice Chairman Richard Clarida is scheduled to speak at a luncheon hosted by the Japan Society in New York at 1 p.m.
2. -- Exxon, Chevron, Alibaba, AbbVie Report Earnings
Earnings reports are expected Friday from Exxon Mobil (XOM) - Get Report , Chevron (CVX) - Get Report , Alibaba (BABA) - Get Report , AbbVie (ABBV) - Get Report , Newell Brands (NWL) - Get Report , Seagate Technology (STX) - Get Report and Colgate-Palmolive (CL) - Get Report .
3. -- Pinterest Sinks on Third-Quarter Revenue Miss
Adjusted earnings in the period were 1 cent a share, better than Wall Street's expected loss of 4 cents and narrower than the year-earlier adjusted loss of 12 cents.
However, revenue of $280 million rose 47% from a year earlier but missed analysts' estimates of $281 million. U.S. revenue was $251 million, below estimates of $252 million. International revenue rose 212% to $28 million vs. estimates of $24 million.
"This growth is compared to our most challenging year-ago comparison, particularly in the U.S.," Pinterest said in a letter to shareholders.
"If you rewind the clock back to the third quarter of last year, that was the highest growth quarter we had in the last two years at 64% growth year over year, and that's just the math," said Chief Financial Officer Todd Morgenfeld on a conference call. "The product reasons why that happened were we were scaling our conversion optimization product in Q3, a trend that continued into Q4 last year, and we were scaling our video awareness product in Q3, again a trend that continued into Q4."
Monthly active users in the quarter rose 28% to 322 million, above forecasts of 311.83 million. Average revenue per user was 90 cents, missing estimates of 91 cents.
The company raised full-year 2019 revenue guidance to between $1.1 billion and $1.115 billion. Initially, the lower end of that forecast was $1.095 billion. Analysts had been calling for revenue of $1.119 billion.
Pinterest made its public debut in April at $19 a share.
4. -- Amgen to Take 20.5% Stake in China's BeiGene for $2.7 Billion
Amgen (AMGN) - Get Report will take a 20.5% stake in Chinese biotechnology company BeiGene (BGNE) - Get Report for about $2.7 billion in cash to expand access to the Chinese pharmaceuticals market for its pipeline of cancer treatments.
Amgen will pay $174.85 per American depositary share of BeiGene.
Amgen shares fell slightly in premarket trading to $213, while ADRS of BeiGene jumped 25% to $173.
"This strategic collaboration with BeiGene will enable Amgen to serve significantly more patients by expanding our reach in the world's most populous country," said Robert A. Bradway, Amgen's chairman and CEO. "Cancer is a leading cause of death in China and will only become a more pressing public health issue as the Chinese population ages."
Under the agreement, Amgen and BeiGene will commercialize several existing cancer drugs in China as well as pursue clinical development of drugs in Amgen's pipeline.
5. -- U.S. Steel Rises After Posting Narrower-Than-Expected Loss
The company posted an adjusted loss of 21 cents a share. Analysts surveyed by FactSet had been expecting the company to lose 25 cents a share. Sales in the quarter were $3.1 billion, vs. estimates of $3 billion.
U.S. Steel said domestic flat-rolled steel earnings were $167 million, offsetting a European loss of $23 million.
"The team delivered better-than-expected results from solid cost performance and higher than forecasted shipments in flat-rolled. While market headwinds persist, we continue to focus on what we can control, including re-scoping our asset revitalization investments and reducing fixed costs," said CEO David Burritt. "We also completed three financing activities since the quarter ended, which delivered approximately $1.1 billion of incremental capital to further support our strategy."
For 2020, U.S. Steel said it expects capital spending to be around $950 million, a $500 million reduction from prior estimates.
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