European Shares Seen Opening Up Ahead Of US Payrolls Report
European stocks may open higher on Friday as the focus shifts to the monthly U.S. jobs report due later in the day.
The report might provide clues as to how aggressively the Federal Reserve will raise interest rates next month.
U.S. employment is expected to increase by 250,000 jobs in July after an addition of 372,000 jobs in June. The unemployment rate is expected to hold at 3.6 percent.
Asian markets were mostly higher while gold was little changed after having jumped over 1 percent overnight on the back of a pullback in U.S. Treasury yields and the dollar.
Oil prices were slightly higher in Asian trading after hitting their lowest since before Russia’s February invasion of Ukraine in the previous session.
U.S. stocks ended mixed overnight as U.S.-China tensions simmered, weekly jobless claims ticked up and Cleveland Federal Reserve Bank President Loretta Mester said that the risks of recession have risen.
The tech-heavy Nasdaq Composite rose 0.4 percent to reach a new three-month closing high while the Dow slipped 0.3 percent and the S&P 500 eased marginally.
European stocks ended mostly higher on Thursday even as the Bank of England raised interest rates by the most in 27 years and warned Britain would enter a recession at the end of 2022.
The pan-European Stoxx 600 edged up 0.2 percent. The German DAX and France’s CAC 40 index both gained around 0.6 percent while the U.K.’s FTSE 100 finished on a flat note.
U.S. Wholesale Inventories Jump Slightly Less Than Expected In June
A report released by the Commerce Department on Wednesday showed a continued surge in U.S. wholesale inventories in the month of June.
The Commerce Department said wholesale inventories shot up by 1.8 percent in June after leaping by an upwardly revised 1.9 percent in May.
Economists had expected wholesale inventories to spike by 1.9 percent compared to the 1.8 percent jump originally reported for the previous month.
The continued surge in wholesale inventories came as inventories of durable goods soared by 2.0 percent, while inventories of non-durable goods shot up by 1.4 percent.
The report showed wholesale sales also jumped by 1.8 percent in June after climbing by 0.7 percent in May. Sales of non-durable goods spiked by 2.1 percent, while sales of durable goods rose by 0.7 percent.
With inventories and sales increasing at the same rate, the inventories/sales ratio for merchant wholesalers was unchanged from the previous month at 1.26.
Disney Outshines Netflix On Streaming Subscribers
Walt Disney’s (DIS) streaming services, which includes Disney+, Hulu, and ESPN+, have surpassed video streaming giant Netflix (NFXL) in the number of subscribers.
Disney now boasts of 221 million streaming customers across all of its platforms, which is above Netflix’s 220.7 million subscribers announced in July. Disney+ added 14.4 million customers in the past quarter.
During the second quarter, Disney+ subscribers surged 31% to 152.1 million from 116.0 million last year. Meanwhile, Hulu recorded 8% subscriber growth to 46.2 million subscribers and ESPN+ subscriber growth surged 53% to 22.8 million.
In the second quarter, Netflix lost nearly 1 million subscribers globally, the second quarter in row the company has reported subscriber decline. The company lost 1.30 million customers in the U.S. and Canada region during the quarter, while EMEA region lost 0.77 million subscriber, LATAM were up slightly by 0.01 million and APAC rose 1.08 million.
Meanwhile, both Netflix and Disney+ are raising their prices for customers who want to watch their services without ads.
Disney is raising its monthly cost without advertising by 38% to $10.99 a month in December while offering an alternative cheaper option with ads for its current subscription price of $7.99 per month. Meanwhile, Netflix has recently announced plans to introduce an ad-supported tier by the end of 2022. In January, it raised the price in the U.S. for its basic plan to $9.99 a month, its standard plan to $15.49 a month, and its premium plan to $19.99 a month.
Illumina Cuts FY Forecast; Shares Tank 22%
Shares of Illumina, Inc. (ILMN) tanked over 22% in extended trading session on Thursday after the company lowered its outlook for the full year.
The company now expects full-year revenue to grow 4% to 5%, loss of $2.93 to $2.78 per share and adjusted earnings of $2.75 to $2.90 per share.
Previously, the company expected revenue guidance growth of 14% to 16%, earnings of $2.33 to $2.53 per share and adjusted earnings of $4.00 to $4.20 per share.
“Our second quarter results did not meet our expectations as challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms,” said CEO Francis deSouza.
ILMN closed Thursday’s trading at $227.44, up $0.14 or 0.06%, on the Nasdaq. The stock, however, slipped $50.99 or 22.42%, in the after-hours trading.
SmartRent, Inc. Q2 Loss misses estimates
SmartRent, Inc. (SMRT) announced Loss for second quarter that missed the Street estimates.
The company’s earnings came in at -$25.6 million, or -$0.13 per share. This compares with -$10.1 million, or -$4.87 per share, in last year’s second quarter.
Analysts on average had expected the company to earn -$0.11 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
The company’s revenue for the quarter rose 95.4% to $42.4 million from $21.7 million last year.
SmartRent, Inc. earnings at a glance (GAAP) :
-Earnings (Q2): -$25.6 Mln. vs. -$10.1 Mln. last year.
-EPS (Q2): -$0.13 vs. -$4.87 last year.
-Analyst Estimates: -$0.11
-Revenue (Q2): $42.4 Mln vs. $21.7 Mln last year.
Next quarter revenue guidance: $43-$47 mln
Full year revenue guidance: $155-$180 mln