Coffee With Greta: Labor Market Slows
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DJIA Futures: +27 (+0.1%)
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Good morning friends!
Futures are higher as traders assess the July jobs report and the latest big tech earnings.
Let’s get right to it!
Jobs Report Miss
The U.S. economy added less jobs than expected in July, indicating slowing growth in the labor market.
The Labor Department reported nonfarm payrolls grew by 187,000 last month vs 200,000 expected.
It was a slight gain from the downwardly revised 185,000 in June.
But the unemployment rate fell unexpectedly to 3.5% vs expectations for it to be unchanged at 3.6%.
Average hourly earnings rose 0.4% monthly and 4.4% year over year, higher than 0.3% monthly and 4.2% annually expected.
Apple Beats
Apple (AAPL) shares are down 3% ahead of the open after beating fiscal Q3 expectations on the top and bottom line as hardware sales continued to slow.
Here’s how the iPhone maker’s results compared to analysts’ estimates:
- EPS: $1.26 vs $1.19 expected
- Revenue: $81.80 billion vs $81.69 billion expected
- iPhone revenue: $39.67 billion vs $39.91 billion expected
- Mac revenue: $6.84 billion vs $6.62 billion expected
- iPad revenue: $5.79 billion vs $6.41 billion expected
- Other Products revenue: $8.28 billion vs $8.39 billion expected
- Services revenue: $21.21 billion vs $20.76 billion expected
- Gross margin: 44.5% vs 44.2% expected
Total revenue was down 1% year over year, driven by slowing sales for the iPhone, Mac, and iPad.
Apple’s sales in China jumped 8% year over year with CEO Tim Cook saying he’s seeing “definite acceleration” in the market.
The company reported $166.5 billion in cash on hand, up slightly from Q2.
Apple did not provide guidance.
Amazon Crushes Expectations
Amazon (AMZN) shares are jumping 9% in premarket trade after crushing Q2 expectations and issuing strong guidance.
Here’s how the tech giant’s results compared to analysts’ estimates:
- EPS: $0.65 vs $0.35 expected
- Revenue: $134.4 billion vs $131.5 billion expected
- Amazon Web Services revenue: $22.1 billion vs $21.8 billion expected
- Advertising revenue: $10.7 billion vs $10.4 billion expected
Overall revenue jumped 11% year over year, marking a return to double-digit growth.
Ad revenue soared 22% from a year ago.
Amazon forecast Q3 revenue between $138 billion and $143 billion, implying growth of 9% to 13%.
That topped analysts’ estimates for $138.25 billion in revenue.
Airbnb Bookings Slow
Airbnb (ABNB) shares are falling 2.6% ahead of the open after reporting less bookings than expected in the second quarter.
Here’s how the vacation rental site’s results compared to analysts’ estimates:
- EPS: $0.98 vs $0.78 expected
- Revenue: $2.48 billion vs $2.42 billion expected
Revenue rose 18% year over year while gross bookings rose 12% to $19.1 billion vs $18.99 billion expected.
But Airbnb reported 115.1 million nights and experiences booked during the quarter, less than 117.6 million expected.
That marked 11% growth from a year ago, a slowdown from the 19% growth in Q1.
Airbnb expected Q3 revenue between $3.3 billion and $3.4 billion, implying 14% to 18% growth.
Nikola’s Losses Narrow, CEO Steps Down
Nikola (NKLA) shares are falling 11.6% in premarket trade after missing Q2 sales expectations and announcing its CEO is stepping down.
Here’s how the electric truckmaker’s results compared to analysts’ estimates:
- Loss per share: $0.20 vs $0.22 expected
- Revenue: $15.36 million vs $15.4 million expected
The company said its CEO will step down effective immediately due to a “family health matter”.
The current board chair will take over as CEO.
The earnings report comes after Nikola won approval from shareholders on Thursday to issue new stock to raise more funds.
Nikola delivered 45 battery-electric semitrucks to dealers during Q2 and dealers sold 66 of the trucks to customers, the company’s best quarterly retail result to date.
The company said it began production of its longer-range fuel-cell powered semitruck on July 31 with deliveries expected to begin in September.
The company currently has 202 orders for those longer-range trucks from 18 fleet customers.