Qualcomm, Coronavirus, Tariffs, Twitter and Peloton - 5 Things You Must Know Thursday

Stock futures rise as China says it will slash tariffs on $75 billion of U.S.-made imports beginning next week; Bristol-Myers, Twitter and Uber report earnings; Qualcomm warns about coronavirus 'uncertainty.'
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Here are five things you must know for Thursday, Feb. 6:

1. -- Stock Futures Rise on China's Move to Slash Tariffs on U.S. Goods

Stock futures rose Thursday after China said it would slash tariffs on $75 billion of U.S.-made imports beginning next week as part of the phase one trade agreement with the United States.

The moves by China to cut tariffs on some U.S. goods to 5% from 10% and other levies to 2.5% from 5% starting Feb. 14, also were seen as efforts by China to boost investor confidence amid growing risks from the coronavirus outbreak, which has killed 563 people and infected more than 28,000.

The rate of infection, however, appears to be stabilizing, while at the same time health officials said the mortality rate of the virus, at just more than 2%, makes it far less lethal than the SARS outbreak of 2003, which killed 800 people around the world.

Global investors used China's decision to slash tariffs, as well as Wednesday's stronger-than-expected readings for U.S. private sector job creation and service sector growth, to push stock futures higher and extend Wall Street's rally. The U.S. Senate's acquittal of President Donald Trump on impeachment charges also removed a key political uncertainty heading into the elections in November.

Contracts tied to the Dow Jones Industrial Average were up 114 points, S&P 500 futures gained 12 points and Nasdaq futures rose 44.50 points.

The S&P 500 and the Nasdaq closed at record highs Wednesday as investors' fears over the spread of the coronavirus eased.

2. -- Bristol-Myers, Twitter and Uber Report Earnings

Bristol-Myers  (BMY) - Get Report posted stronger-than-expected fourth-quarter earnings and forecast solid 2020 sales and profit as the $74 billion takeover of Celgene continues to boost its bottom line.

Twitter's  (TWTR) - Get Report fourth-quarter revenue topped $1 billion for the first time as users returned to the microblogging platform amid efforts to reduce hate speech and abusive posts. 

Earnings are also expected Thursday from Uber  (UBER) - Get Report, Estee Lauder  (EL) - Get Report, Tyson Foods  (TSN) - Get Report, Take-Two Interactive  (TTWO) - Get Report, Pinterest  (PINS) - Get Report, Dunkin' Brands  (DNKN) - Get Report, Yum! Brands  (YUM) - Get Report, Wynn Resorts  (WYNN) - Get Report, Philip Morris International  (PM) - Get Report, Skechers  (SKX) - Get Report, Activision Blizzard  (ATVI) - Get Report , World Wrestling Entertainment  (WWE) - Get Report and T-Mobile US  (TMUS) - Get Report.

Tyson Foods and Activision Blizzard are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

The economic calendar in the U.S. Thursday includes weekly Jobless Claims at 8:30 a.m. ET and Productivity and Costs for the fourth quarter at 8:30 a.m.

3. -- Qualcomm Issues Warning Over Impact of Coronavirus 

Qualcomm  (QCOM) - Get Report was slipping in premarket trading Thursday after the chipmaker said the coronavirus in China could have a "material" impact on its near-term profit forecasts and disrupt global smartphone demand and supply chains.

The warning offset fiscal first-quarter earnings and revenue from Qualcomm that topped analysts' expectations.

Qualcomm said it expects fiscal second-quarter earnings of between 80 cents to 85 cents a share, with revenue rising to between $4.9 billion and $5.7 billion. Both of the forecasts were higher than Wall Street estimates but the company cautioned that there was "significant uncertainty around the impact from the coronavirus on handset demand and supply chain" that forced it to lower its expected guidance range.

Almost half of Qualcomm's revenue in 2019 came from China.

Qualcomm shares fell 2.16% to $88.95 in premarket trading Thursday.

4. -- Twilio Issues a Disappointing Forecast

Twilio  (TWLO) - Get Report, the San Francisco provider of communications software and services, was tumbling 6.27% to $119.18 in premarket trading after saying it expects losses in the first quarter and fiscal year.

Analysts were expecting positive adjusted earnings for both periods.

Twilio said it expects a first-quarter adjusted loss of 9 cents to 11 cents a share on revenue of $335 million to $338 million. Analysts had been calling for an adjusted profit of 4 cents a share on revenue of $328 million.

For the fiscal year, Twilio estimated an adjusted loss of 14 cents to 20 cents a share. Analysts had predicted adjusted profit of 22 cents.

Twilio's forecasts for the first quarter and fiscal year overshadowed adjusted fourth-quarter earnings that topped analysts' expectations.

"What stands out most from the quarter was the flip from expected profits to expected losses," said Jim Cramer and the Action Alerts PLUS team, which holds Twilio in its portfolio. "Given the market's concerns last year of the "high-flyer" stocks that showed great growth, but no profits, this is something we did not want to see. 

"But don't get us wrong. We'll never fault a company that steps up its investments to support long-term growth and create operating leverage for the future. This is a much better outcome than risking market share or potential competitor disrupting the industry," the AAP team added. 

5. -- Peloton Slides on Weak Revenue Guidance

Peloton Interactive  (PTON) - Get Report reported a second-quarter loss narrower than estimates but  third-quarter revenue guidance from the connected fitness company was short of expectations.

The stock declined 8.87% to $29.80 in premarket trading.

Peloton reported a quarterly loss of 20 cents a share on revenue of $466 million, a 77.4% year-over-year increase. Analysts were expecting the company to post a loss of 36 cents a share on revenue of $422.9 million.

However, the company expects third-quarter revenue to rise 50% from the year earlier to between $470 million and $480 million, below expectations of $494.26 million.

The company reported strong engagement from its subscriber network, with Peloton’s 712,005 users working out 24.3 million times in the quarter with an average 12.6 monthly workouts per subscriber.

Peloton said it expects to end its fiscal year with 920,000 to 930,000 connected fitness subscribers.