Here are five things you must know for Friday, Nov. 13:
1. — Stock Futures Higher Amid Virus Surge
Stock futures were higher Friday indicating Wall Street could rebound from the previous session’s declines that came amid soaring coronavirus cases.
Contracts linked to the Dow Jones Industrial Average gained 240 points, S&P 500 futures rose 27 points and Nasdaq futures were up 76 points.
Stocks finished lower Thursday as a resurgence of the coronavirus had Wall Street worried that new restrictions aimed at curbing the pandemic will lead to a halt in any economic recovery.
In California, coronavirus cases surpassed 1 million, according to Johns Hopkins University. New York City Mayor Bill de Blasio could shut down the city’s school system, the nation’s largest, by Thanksgiving or earlier. Chicago Mayor Lori Lightfoot issued a 30-day stay-at-home advisory, asking the city’s residents to cancel Thanksgiving plans and stay at home.
Federal Reserve Chairman Jerome Powell warned at a European Central Bank forum that even if a vaccine is developed by the end of the year there will be serious economic challenges ahead.
Powell said the “the main risk we see” to an economic recovery “is clearly the further spread of the disease here in the United States.”
“We’ve got new cases at a record level. We’ve seen a number of states begin to reimpose limited activity restrictions, and people may lose confidence that it’s safe to go out,” Powell said. “We’ve said from the beginning that the economy will not fully recover until people are confident that it’s safe to resume activities involving crowds and people.”
He also called for further economic support from Congress but progress there has stalled and reports said Thursday that the Trump administration has walked away from talks on a relief package and will leave it up to Congress to revive negotiations with House Speaker Nancy Pelosi.
Asian shares finished Friday’s session mostly to the downside and European stocks traded mixed.
For more on Asian markets read:
2. — Tesla’s Elon Musk Says He Tested Both Positive and Negative for Covid-19
“Something extremely bogus is going on,” Musk wrote in a tweet late Thursday. “Was tested for covid four times today. Two tests came back negative, two came back positive.”
He said he was experiencing cold-like symptoms. “Nothing unusual so far,” he said.
The Tesla CEO said he took rapid antigen tests, which produce results within 15 minutes and are cheaper but less reliable than more advanced tests.
Musk has been a long-time skeptic of the coronavirus pandemic. He predicted in March there likely would be close to zero new coronavirus cases in the U.S. by the end of April. More than 160,000 cases of the virus were reported in the U.S. on Thursday.
3. — Walt Disney’s Streaming Service Surges
Disney+, the company’s streaming service, saw paid subscribers grow to 73.7 million during the quarter, easily topping forecasts of 65.5 million.
“Even with the disruption caused by Covid-19, we’ve been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,” said CEO Bob Chapek in a statement. “The real bright spot has been our direct-to-consumer business, which is key to the future of our company.”
Disney+ has “quickly exceeded our highest expectations,” he added in a conference call.
“While the near-term remains highly uncertain as a result of surging coronavirus cases around the world, the sustained momentum at Disney+ coupled with this week’s positive news on a vaccine, keeps us bullish on the medium- to long-term outlook,” said Jim Cramer and the Action Alerts PLUS team, which hold Disney in its portfolio.
The stock rose 4.16% to $141.16 in premarket trading.
4. — Cisco Posts Earnings Beat, Issues Strong Forecast
Cisco Systems (CSCO) – Get Report posted stronger-than-expected fiscal first-quarter earnings as services and security revenue offset a slump in sales for network equipment amid the global coronavirus pandemic.
The stock was rising 7.47% to $41.56 in premarket trading.
The company also issued an outlook for its second quarter ahead of Wall Street expectations.
Cisco expects fiscal second-quarter earnings of 74 cents to 76 cents a share on revenue of $11.36 billion to $12.01. Analysts expect earnings of 73 cents a share on revenue of $11.6 billion.
5. — Friday’s Calendar: PPI, DraftKings Earnings
The economic calendar in the U.S. Friday includes the Producer Price Index for October at 8:30 a.m. ET and Consumer Sentiment for November at 10 a.m.
DraftKings (DKNG) – Get Report posted third-quarter revenue of $133 million, higher than analysts’ calls for revenue of nearly $132 million. The betting company also raised its revenue guidance for fiscal 2020.