Here are five things you must know for Thursday, Dec. 3:
1. -- Stock Futures Mixed as U.S. Records Deadliest Day From Covid-19
Stock futures were mixed Thursday as a rally fueled by vaccine breakthroughs was tempered by the deadliest day in the U.S. from Covid-19, the disease caused by the coronavirus.
Contracts linked to the Dow Jones Industrial Average fell 10 points, S&P 500 futures were up 1 point and Nasdaq futures rose 32 points.
Wednesday was the deadliest day for Covid-19 fatalities, with more than 2,700 Americans dying from the disease, according to Johns Hopkins University. The number of Covid-19 patients in U.S. hospitals topped 100,000 for the first time.
The enthusiasm that followed Great Britain becoming the first western country to approve a Covid-19 vaccine - the shot from Pfizer (PFE) - Get Report and BioNTech (BNTX) - Get Report - was dented by the realization the U.S. could be in for a very difficult winter until a vaccine is widely distributed.
The director of the Centers for Disease Control and Prevention warned that total deaths from Covid-19 could reach “close to 450,000” by February unless Americans take greater precautions.
“The reality is, December and January and February are going to be rough times,” said Dr. Robert Redfield, the head of the CDC. “I actually believe they’re going to be the most difficult time in the public health history of this nation.”
On Wednesday, the S&P 500 posted its second straight record close after House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer called for stimulus talks to begin. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin urged Congress on Wednesday to approve a Covid-19 relief bill.
Asian shares finished mostly to the upside Thursday while stocks in Europe traded mixed.
For more on Asian markets read:
2. -- Thursday's Calendar: Jobless Claims, Marvell Technology Earnings
The economic calendar Thursday includes weekly Jobless Claims at 8:30 a.m. ET, the PMI Composite Final for November at 9:45 a.m. and the ISM Services Index for November at 10 a.m.
Earnings reports are expected Thursday from Marvell Technology (MRVL) - Get Report, DocuSign (DOCU) - Get Report, Kroger (KR) - Get Report, Cloudera (CLDR) - Get Report, Ulta Beauty (ULTA) - Get Report, Michaels Cos. (MIK) - Get Report, Signet Jewelers (SIG) - Get Report, Zuora (ZUO) - Get Report and Lands' End (LE) - Get Report.
3. -- Snowflake Falls on Soft Forecast
Snowflake (SNOW) - Get Report was falling in premarket trading Thursday after the cloud company posted a wider-than-expected loss in its first report as a public company and issued a soft product sales forecast.
Snowflake estimated product revenue in the January quarter of $162 million to $167 million, up between 97% and 103% from a year earlier. Analysts predicted $166 million, according to data compiled by Bloomberg. Product revenue makes up more than 90% of Snowflake's sales.
Snowflake went public in mid-September at $120 a share in the biggest U.S. initial public offering this year. The stock was down 2.75% in premarket trading Thursday to $284.63.
The company reported a third-quarter loss of $168.9 million, or $1.01 a share, on revenue of $159.6 million. A year earlier, Snowflake lost $88.1 million, or $1.92 a share, on revenue of $73 million.
Analysts surveyed by FactSet were expecting a loss of 26 cents a share on revenue of $147.7 million.
“We are pleased with our performance this first quarter as a public company,” said Snowflake CEO Frank Slootman. “The period was marked by continued strong revenue growth coupled with improving unit economics, cash flow, and operating efficiencies."
4. -- Splunk Sinks on Wider-Than-Expected Loss
For the quarter ended Oct. 31, Splunk’s loss widened to $1.26 a share from 38 cents a share a year earlier. quarter. On an adjusted basis, Splunk posted a loss of 7 cents a share.
Revenue in the third quarter dropped to $558.6 million from $626.3 million
Analysts were expecting adjusted earnings of 9 cents a share on revenue of $613 million.
Splunk also estimated fiscal fourth-quarter revenue of $650 million to $700 million, below Wall Street forecasts of $777.9 million.
The stock dropped 20.81% in premarket trading Thursday to $163.05.
5. -- Waddell & Reed to Be Bought for $1.7 Billion
Waddell & Reed will be acquired for $25 a share in cash. Once the deal closes, Macquarie will sell off Waddell & Reed’s wealth management platform to LPL Financial for $300 million.
Shares of Waddell & Reed jumped 46.33% to $24.89 in premarket trading.