CNBC
The Dow on Friday looked like it was going to turn higher after Thursday's 807 point, or 2.8%, rout, and following the government reporting a lower-than-expected August unemployment rate. The tech-led reversal weighed even heavier on the S&P 500, which lost 3.5%, and the Nasdaq, which lost a whopping 5%. Nasdaq futures were under continued pressure Friday. As bad as Thursday's sell-off was, it did come after a powerful summer rally that had sent the S&P 500 and Nasdaq to multiple record highs and the Dow to about 3% away from its record high on Feb. 12. (CNBC)
Shares of Apple (AAPL), under pressure again Friday, plunged 8% on Thursday and 2% on Wednesday, sinking into 10% correction territory from recent highs. Apple lost nearly $180 billion in stock market value Thursday, the largest one-day loss for a U.S. listed company on record, according to Dow Jones market data. (CNBC)
Tesla (TSLA), which like Apple saw its stock split also take effect Monday, was lower in Friday's premarket after a three-session 18% nosedive almost put the stock into a bear market, defined by losses from recent highs at least 20%. Tesla's Elon Musk also lost $9 billion Thursday alone and, shockingly, $19 billion since Tuesday. (CNBC)
The government said Friday morning that the economy added 1.37 million nonfarm jobs in August, slightly better than estimates, after a revised 1.7 million additions in July. While the pace of rehiring during the coronavirus slowed month-over-month, the nation's August unemployment rate dropped to 8.4%, lower than economists had expected. The jobless rate was by far the lowest since the coronavirus shutdown in March. August's job gains mean that more than half of those displaced during the pandemic are back at work.
IN THE NEWS TODAY
New daily U.S. cases of Covid-19 on Thursday jumped to over 44,100, the highest number in four days, as Thursday's daily death toll topped 1,000 for the third day in a row. South Dakota, an emerging hot spot after last month's more than weeklong annual Sturgis Motorcycle Rally, allowed another large-scale event to go ahead. The South Dakota State Fair began on Thursday and runs through Monday.
* Labor Day weekend will set the course for the coronavirus this fall (CNBC)
* Russia s potential coronavirus vaccine shows no serious adverse effects and creates antibody response: The Lancet
* WHO says widespread coronavirus vaccinations are not expected until mid-2021 (Reuters)
E-cigarette maker Juul Labs is planning to lay off more than half its employees, according to The Wall Street Journal. It's also considering halting its sales across Europe and Asia, which could mean pulling out of as many as 11 countries and shrinking the startup's footprint to its core markets, the U.S., Canada and the U.K.
STOCKS TO WATCH
DocuSign (DOCU), the provider of electronic signature technology, reported quarterly earnings of 17 cents per share, more than doubling the 8 cents a share consensus estimate. Revenue also beat forecasts and DocuSign issued upbeat full-year guidance.
Broadcom (AVGO) came in 16 cents a share above estimates, with quarterly profit of $5.40 per share. The chip maker's revenue also came in slightly above analysts' forecasts. It also issued a better-than-expected current-quarter outlook amid expected 5G phone launches and strong demand for Broadcom's data center chips.
Yum China (YUMC) is set to raise more than $2.2 billion in a secondary listing in Hong Kong, according to sources who spoke to CNBC.
Navistar (NAV), Volkswagen's truck unit, plans to resume its push to buy Navistar, according to people familiar with the matter who spoke to Bloomberg. VW's heavy truck business Traton had offered $2.9 billion for Navistar in January, but the talks were put on hold due to the pandemic.
Goldman Sachs (GS) Malaysia dropped criminal charges against three of the investment bank's units after Goldman agreed last month to a $3.9 billion settlement in the case involving Malaysia's state investment fund 1MDB.
Netherlands-based food delivery firm Just Eat Takeaway said it had received all necessary regulatory approvals for its $7.3 billion deal to buy Grubhub (GRUB). It expects the deal to be completed in the first half of 2021, pending shareholder approval.
Smith & Wesson Brands (SWBI), the firearms maker, earned 97 cents per share for its fiscal first quarter, more than double the 48 cents a share consensus estimate. Revenue was well above analysts' projections. The company said it saw record revenue and unit sales during the quarter.
CONTRIBUTORS
Matthew J. Belvedere
@Matt_Belvedere
Peter Schacknow
@peterschack
