Here are five things you must know for Friday, February 4:
1. -- Stock Futures Mixed Ahead of Jobs Report; Tech Bounces Higher
U.S. equity futures moved higher Friday as investors looked to claw back losses from the worst day for the S&P 500 in more than a year on the back of a string of tech-sector earnings beats ahead of a key January jobs report prior to the start of trading.
A hawkish European Central Bank, as well as accelerating bets on a series of near-term rate hikes from the Federal Reserve, hit sentiment hard Thursday, with tech and other bellwether stocks pulled lower by the $237 billion wipe in Meta Platforms (FB) shares, the biggest single-day decline, in market value terms, on record.
Friday's session looks to get support, however, from better-than-expected earnings from Amazon (AMZN), which topped Street forecasts and unveiled the first hike in prices for its Prime membership services in four years. Beaten-down social media stocks Pinterest (PINS) and SNAP (SNAP) were also on the move, helping set up a triple-digit opening bell gain for the Nasdaq.
The Bureau of Labor Statistics will also release its January employment report, with economists look for the addition of around 150,000 new jobs last month, coupled by a big rise in average hourly earnings.
Futures tied to the Dow Jones Industrial Average are indicating a modest 60 point opening bell decline while those linked to the S&P 500 are priced for an 11 point advance.
Nasdaq Composite futures are indicating a 130 point jump for the tech-focused benchmark as 10-year Treasury note yields hold at 1.817% in overnight trading.
2. -- Amazon Shares Rocket After Q4 Earnings Beat, Prime Price Hike
Amazon shares surged higher in pre-market trading after posting stronger-than-expected second quarter earnings Thursday while unveiling a price increase for its Prime members.
Amazon's net income nearly doubled from last year to $14.3 billion, thanks in large part to an $11.8 billion boost from Amazon's stake in EV maker Rivian Automotive (RIVN). Still, sales were up 9% to a record $137.5 billion, while revenues at Amazon Web Services soared 48.5% to $17.8 billion.
Prime costs, Amazon said, will rise from $12.99 to $14.99, with the annual membership rising 16.8% to $139, with changes for new members coming into effect on February 18. For existing members, the increases will begin from March 25.
Amazon shares were marked 12.7% higher in pre-market trading to indicate a Friday opening bell price of $3,130.00 each.
3. -- Ford Shares Slide As Supply Chain Woes Clip Q4 Earnings
Ford (F) shares slumped lower in pre-market trading after the carmaker missed Street forecasts for its fourth quarter earnings amid supply chain disruptions and surging input costs.
Ford, which is deepening its investment in electric vehicle production and plans to double its current output by 2023, sees earnings growth this year of between 15% and 20%, but that failed to lift investors' spirts after a weaker-than-expected fourth quarter tally of 26 cents per share that was well shy of analysts' estimates.
"Supply chains that limited what we could produce and what we could provide," CFO John Lawler told investors on a conference call late Thursday. "And we see that easing into ’22, and you’ll see that flowing through our profits.”
Ford shares were marked 4.88% lower in pre-market trading to indicate an opening bell price of $18.92 each.
4. -- Snap Shares Soar As App Maker Transitions From Apple Hit
Snap shares soared the most on record in pre-market trading, and could add nearly $20 billion to the message-app maker's market value, following better-than-expected fourth quarter earnings and a robust near-term outlook.
Snap, which had been hit hard by privacy changes put in place by Apple (AAPL) that limits its ability to sell targeted ads, said it's been able to transition to new techniques "quicker than we expected", and added 319 million new users over the three months ending in December, helping revenues rise 42% from last year to a Street-beating $1.3 billion while notching its first positive net income as a public company.
Looking into the coming year, Snap said it sees user growth in the region of 328 million to 330 million, with revenues easing to just of $1 billion, with both tallies again topping Street estimates.
Snap shares, which are down 68.2% over the past six month, were marked 48.4% higher in pre-market trading to indicate a Friday opening bell price of $36.60 each.
5. -- Pinterest Shares Surge On Q4 Earnings Beat
Pinterest shares surged higher in pre-market trading after the image-sharing social media group posted better-than-expected fourth quarter earnings and its first-ever annual profit.
Pinterest said daily active users were down 6% from last year's pandemic-driven peak, but a focus on advertising through video helped revenues rise 20% to a Street-beating $846.7 million. Adjusted earnings also topped forecasts at 49 cents per share.
"We believe that when we connect Pinners, not just with great ideas but also with the great creators behind them, in rich new formats like short-form video, the overall experience is more inspirational," CEO Ben Silbermann told investors on a conference call late Thursday. "And when people are more inspired, they do more planning and shopping."
"Advertisers are able to reach consumers with more intent and that in turn drives more value for Pinterest," he added.
Pinterest shares were marked 18.1% higher in pre-market trading to indicate a Friday opening bell price of $28.94 each.
