T3 Live

Coffee With Greta: Soft Jobs Report Boosts Stocks


Register now for next week's free trading Q&A on LinkedIn with options specialist Dan Darrow!

DJIA Futures: +149 (+0.4%)

SPX Futures: +21 (+0.5%)

NASDAQ Futures: +59 (+0.4%)

Good morning friends!

Futures are rising with yields tumbling after a weaker-than-expected October jobs report. 

Let’s get right to it!

Soft Jobs Report

The U.S. economy added fewer jobs than expected in October, which is good news for the Fed’s fight against inflation. 

The Labor Department reported nonfarm payrolls increased by 150,000 last month vs 170,000 expected. 

The unemployment rate rose unexpectedly to 3.9% vs expectations for it to hold steady at 3.8%. 

Average hourly earnings rose 0.2% monthly and 4.1% annually vs 0.3% monthly and 4% annually expected.

The previous two months were also revised lower. 

September’s job gains were revised down by 39,000 to +297,000 with August revised down by 62,000 to +165,000.

Apple Falls On Weak Outlook

Apple (AAPL) shares are down 1.6% ahead of the open as a weak outlook overshadows the company’s fiscal Q4 earnings beat.

Here’s how the iPhone maker’s results compared to analysts’ estimates: 

  • EPS: $1.46 vs $1.39 expected
  • Revenue: $89.5 billion vs $89.28 billion expected
  • iPhone revenue: $43.81 billion, as expected
  • Mac revenue: $7.61 billion vs $8.63 billion expected
  • iPad revenue: $6.44 billion vs $6.07 billion expected
  • Wearables revenue: $9.32 billion vs $9.43 billion expected
  • Services revenue: $22.31 billion vs $21.35 billion expected
  • Gross margin: 45.2% vs 44.5% expected

For the full year, Apple reported $383.29 billion in sales, down 3% year over year. 

But services revenue helped boost underperformance in other segments, jumping more than 15% from a year ago.

While Apple did not give formal guidance, the CFO said the company expects current quarter revenue to “be similar to” last year. 

Analysts were expecting $122.98 billion in fiscal Q1 revenue, which would be growth of about 5%. 

Block Surges On Strong Guidance

Block (SQ) shares are rallying 17.3% in premarket trade after beating Q3 expectations and issuing strong guidance.

Here’s how the fintech company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.55 vs $0.47 expected
  • Revenue: $5.6 billion vs $5.4 billion expected

Revenue jumped 24.4% year over year with gross profit up 21%.

Block forecast Q4 gross profit of $1.96 billion to $1.98 billion vs $1.98 billion expected. 

The company expects adjusted ebitda of $430 million to $450 million, better than estimates.

For the 2024 fiscal year, Block expects adjusted ebitda of $2.4 billion, well above $1.94 billion expected. 

In a letter to shareholders, the company said it believes it can achieve gross profit growth in the midteens and a mid-20% adjusted operating income margin in 2026. 

Block also announced a $1 billion share buyback plan.

Coinbase Drops On Lower Trading Volume

Coinbase (COIN) shares are down 2.5% ahead of the open after reporting a slump Q3 trading volume. 

Here’s how the crypto exchange’s results compared to analysts’ estimates: 

  • Loss per share: $0.01 vs $0.55 expected
  • Revenue: $674 million vs $651 million expected

Although smaller than expected it marked Coinbase’s seventh straight quarterly loss. 

The company said it had $76 billion in total trading volume last quarter, down from $92 billion in Q2, and $159 billion a year ago.

But as the price of Bitcoin has risen since the end of Q3, Coinbase has seen a rise in volume. 

Leave a Comment: