Anticipated data on non-farm payrolls and business activity are pushing futures lower as Wall Street starts to get a more complete picture of the economic hit caused by COVID-19, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
U.S. stock futures pointed to a lower opening Friday, signaling the potential for Wall Street to close out the week with modest losses.
The three major stock indexes gained around 2% Thursday as oil prices soared on the potential for an end to the oil price war between Saudi Arabia and Russia. However, there are doubts about whether an oil rebound would last as demand tapers due to the coronavirus.
“We view the consolidation today as a combination of some jitters ahead of the weekend, concerns about the extent of the global demand shock and questions regarding the quality of the health response in the United States,” Sebastien Galy, macro strategist at Nordea Asset Management in Luxembourg, said.
What’s happening today: It’s another big data day in the U.S. as the Department of Labor will release its March jobs report a day after weekly jobless claims soared by 6.6 million in the week of March 27. The timing of the data may not show the full impact of March’s job losses, though.
IHS Markit will also release its services activity index, which analysts project will indicate a contraction in the sector. Estimates are for the index to drop to 44 in March from 57.3 in February. Any reading below 50 is considered a recession in the industry, which accounts for more than two-thirds of U.S. economic activity.
How the indexes stand now: As of 8 a.m. EDT, Dow Jones futures were down 0.08%. S&P 500 futures were down 0.02% while Nasdaq Composite futures fell 0.1%.
Stocks to Watch Today
Tesla Inc. (Nasdaq: TSLA) — The electric automaker reported delivering 88,400 vehicles during the first quarter of 2020, beating projections despite slowdowns in production due to the coronavirus. Shares of Tesla jumped more than 15% in premarket trading.
Royal Bank of Scotland Group PLC (NYSE: RBS) — Shares of the bank fell more than 3% a day after it let go of a team of traders and salespeople for asset-backed securities and collateralized loan obligations. The cuts are part of a restructuring to focus more on financial and risk management.
Constellation Brands Inc. (NYSE: STZ) — The beer, wine and spirits manufacturer reported beating quarterly earnings and revenue but did not provide any full-year guidance. Shares of Constellation Brands were up 4.4%.
JPMorgan Eyeing Full Ownership of Chinese Fund Manager
JPMorgan Chase & Co. (NYSE: JPM) is looking to own 100% of a Chinese fund-management joint venture.
If completed, the bank will be the first foreign company to own a Chinese fund manager, according to The Wall Street Journal.
JPMorgan said it has reached a deal to take a complete stake in China International Fund Management Co. — formed in 2004.
New Google Website Shows Where There is Social Distancing — and Where There Isn’t
A new website launched by Google shows the level of social distancing in different locations.
The new COVID-19 Community Mobility Reports website uses aggregate anonymous data — rather than specific user information — to show population trends in 131 countries and several counties within certain states.
It’s the latest effort by Google parent Alphabet Inc. (Nasdaq: GOOG) to partner with government officials amid the COVID-19 pandemic. Its life sciences company Verily is working with the government to screen and test patients for the virus.
Disney to Start Furloughing Employees April 19
As parks remain closed and operations come to a standstill, Walt Disney Co. (NYSE: DIS) said it will start furloughing employees “whose jobs aren’t necessary at this time” starting April 19.
The COVID-19 pandemic has severely hampered Disney, forcing the entertainment company to close all 12 of its theme parks. Shares of the company have fallen 30% since the start of 2020, according to CNN Business.
What We’re Reading
‘Zoombombing’: Zoom Calls Hacked by Cybercriminals (Money & Markets)
Cathay Pacific Slashes CEO Pay After Flying Just 582 People in One Day (CNN Business)
On Social Security and Want Your Stimulus Check? It Just Got Easier (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Constellation Brands Inc. (NYSE: STZ)
Xinyuan Real Estate Co. Ltd. (NYSE: XIN)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.