Bristol-Myers, Peloton, Lyft, Unemployment, PayPal - 5 Things You Must Know Thursday

Stock futures rise Thursday; investors prepare for the weekly report on jobless claims; Peloton revenue surges as more people work out at home during the pandemic.
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Here are five things you must know for Thursday, May 7:

1. -- Stock Futures Rise Ahead of Jobless Claims

Stock futures pointed to a higher start for Wall Street Thursday as investors prepared for the weekly report on jobless claims that likely will provide further evidence of the damage the coronavirus pandemic has had on the U.S. jobs market.

Contracts linked to the Dow Jones Industrial Average jumped 290 points, futures for the S&P 500 rose 40 points and Nasdaq futures gained 120 points.

Stocks ended mixed Wednesday after a report showed the U.S. private sector shed more than 20 million jobs in April.

The jobless claims data, to be released at 8:30 a.m. ET, are the highlight of the economic calendar Thursday. Estimates call for 3 million claims to be filed for the week ended May 2, down from 3.8 million in the previous week. More than 30 million Americans have filed for unemployment benefits over the past six weeks.

The data will come a day before the official U.S. payrolls report, which is forecast on Friday to show a 21 million drop in payrolls.

Asian shares finished Thursday's session mixed after President Trump threatened to terminate a phase one trade agreement between the U.S. and China if Beijing didn't adhere to its terms.

China, meanwhile, reported an unexpected 3.5% increase in exports in April.

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

Bristol-Myers Squibb  (BMY) - Get Report posted stronger-than-expected first-quarter earnings, confirmed its 2020 profit guidance and predicted a near-term peak in coronavirus disruption.

Earnings are also expected Thursday from Raytheon Technologies  (RTX) - Get Report, Roku  (ROKU) - Get Report, JetBlue  (JBLU) - Get Report, Booking Holdings  (BKNG) - Get Report, ViacomCBS  (VIACA) - Get Report, Uber  (UBER) - Get Report, Baidu  (BIDU) - Get Report, Dropbox  (DBX) - Get Report, First Solar  (FSLR) - Get Report, GoPro  (GPRO) - Get Report, Qorvo  (QRVO) - Get Report, Yelp  (YELP) - Get Report, Zillow  (Z) - Get Report, Danaher  (DHR) - Get Report and Modera  (MRNA) - Get Report.

Bristol-Myers and Viacom 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.

3. -- Peloton Sees Revenue Surge as More Bikes Are Bought 

Peloton Interactive's  (PTON) - Get Report fiscal third-quarter revenue soared 66% as customers turned to working out at home while gyms were forced to shut their doors during the coronavirus pandemic.

The exercise-bike maker said revenue in the period rose to $524.6 million from $316.7 million a year earlier. Equipment sales in the quarter jumped 61% to $420.2 million.

The number of subscribers to Peloton's workout classes nearly doubled to 886,100 in the quarter ended March 31.

Peloton lifted its sales outlook for the year following its strong third quarter despite surging demand that has led to a shortage of bikes.

The company expects revenue of between $1.72 billion and $1.74 billion, an increase from a year earlier of 89% at the midpoint.

The stock was up 19% to $45.26 in premarket trading Thursday.

4. -- Lyft Jumps as Riders Increase

Lyft  (LYFT) - Get Report was jumping 16.39% to $30.40 in premarket trading Thursday after the ride-hailing company posted first-quarter revenue growth and a boost in riders despite the coronavirus pandemic.

For the quarter, Lyft reported revenue of $955.7 million, an increase of 23% year over year and higher than analysts' estimates of $882 million. 

The company reported a loss of $1.32 a share in the period vs. Wall Street estimates that called for a loss of $1.31.

“While the Covid-19 pandemic poses a formidable challenge to our business, we are prepared to weather this crisis,” said Lyft CEO Logan Green. “We are responding to the pandemic with an aggressive cost reduction plan that will give us an even leaner expense structure and allow us to emerge stronger." 

Lyft ended the quarter with 21.2 million active riders, a year-over-year increase of 3%.

Rival Uber  (UBER) - Get Report reports earnings after the closing bell Thursday. Uber announced Wednesday it would cut 3,700 jobs while waiving CEO Dara Khosrowshahi's annual salary as it grapples with a plunge in ride traffic amid the coronavirus pandemic.

5. -- PayPal Comes Roaring Back in April and May

PayPal's  (PYPL) - Get Report sales took a hit in March as Covid-19 lockdowns arrived but things started looking up in April and on May 1 the online payments giant enjoyed the highest volume transaction day in its history.

“As our platform sees record increases in both new customer accounts and transactions, it is clear that PayPal’s products are more important and relevant than ever before,” CEO Dan Schulman said in a statement.

“The strength of our customer value proposition combined with the acceleration of digital payments adoption significantly accelerated in April, with increased demand and engagement,” he added.

Revenue in PayPal's first quarter ended March 31, rose 12% to $4.62 billion, below analysts' estimates of $4.74 billion.

For the second quarter, PayPal said it expects 15% revenue growth on a currency-neutral basis.

PayPal Jumps After Sharing Strong April Numbers: 7 Key Takeaways

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