A report indicating Chinese exports jumped in April — the first time this year — pushed stock market futures higher as traders get set for the latest round of unemployment data, plus stocks to watch today in the Money & Markets Opening Bell.
The Top Story
Overseas shipments from China unexpectedly rose in the month of April, marking the first increase in exports in 2020.
However, with the S&P 500 now about 16% below its record high set Feb. 19, the mood has turned cautious again with data revealing the extent of the pandemic’s economic damage and U.S.-China tensions resurfacing over the origin of the novel coronavirus.
China and the U.S. are expected to hold discussions on how the countries are progressing with the first phase of a trade deal (more below).
Data is expected to show U.S. jobless claims totaling a seasonally adjusted 3 million for the week ending May 2, down from 3.839 million in the prior week and marking the fifth straight weekly decrease in applications.
Among early movers before the bell, PayPal Holdings Inc. (Nasdaq: PYPL) jumped 9.5% after the payment processor said it expected strong recovery in payments volumes in the second quarter as social distancing drives more people to shop online.
Lyft Inc. (Nasdaq: LYFT) surged 16% as the ride-hailing company posted higher-than-expected revenue and vowed to further cut costs to become profitable.
As of 9:20 a.m., Dow Jones futures were up 1.3%. S&P 500 futures moved 1.5% higher while Nasdaq Composite futures jumped 1.5%.
Stocks to Watch Today
Peloton Interactive Inc. (Nasdaq: PTON) — The exercise equipment manufacturer increased its full-year sales guidance as the coronavirus lockdown pushed new subscribers higher. Shares of Peloton were up more than 17.5%.
Bristol-Myers Squibb Co. (NYSE: BMY) — Shares of the pharmaceutical company jumped 2.5% in premarket trading after it posted a 56% increase in earnings per share. It also confirmed its 2020 guidance of earnings between $6 and $6.20 per share.
Twilio Inc. (NYSE: TWLO) — The cloud communication platform notched a big increase in revenue for the previous quarter and increased its guidance for the next quarter as it expects customer accounts to continue rising. Shares of Twilio were up 27.4%.
US, Chinese Trade Reps to Discuss ‘Phase One’ Trade Deal Implementation
As early as next week, trade representatives from the U.S. and China will meet to discuss the progress in implementing the first phase of a trade deal.
The report from Bloomberg comes just after President Donald Trump threatened to end the deal if the Chinese weren’t holding up their end of the arrangement.
According to the deal, China agreed to buy $200 billion in U.S. goods and services over the next two years. Thus far, purchases have been behind the pace needed to hit the first-year target of $76.7 billion.
Congress Could Discuss Tax-Free Loan Forgiveness
According to The Wall Street Journal, there is some bipartisan momentum building in Congress to let small businesses get tax-free loan forgiveness as well as allowing them to deduct their expenses.
Senior lawmakers have asked the Internal Revenue Service to reverse a decision denying the deductions. If not, it’s possible lawmakers could pass legislation to overturn the ruling.
Nintendo Profits Jump 41% in First Quarter
Thanks to one video game on one platform and a pandemic lockdown, Japanese company Nintendo saw its profits surge in the first quarter.
According to CNN Business, the company, which trades on the Nikkei in Japan, raked in $3.3 billion in operating profit — a 41% jump from a year ago — as its “Animal Crossing: New Horizons” video game for the Nintendo Switch sold more than 13 million units in the first six weeks of its release.
What We’re Reading
The Bull & The Bear: Alternatives to the 60/40 Portfolio (Money & Markets)
Gap to Reopen Stores as Soon as This Weekend (USA Today)
Oil Prices Have Jumped, But Don’t Expect Big Spikes Yet (Money & Markets)
Earnings Report
Here are the companies releasing earnings reports today:
Bristol-Myers Squibb Co. (NYSE: BMY)
Consolidated Edison Inc. (NYSE: ED)
Magna International Inc. (NYSE: MGA)
Moderna Inc. (Nasdaq: MRNA)
Zillow Group Inc. (Nasdaq: Z)
Check back each morning before the opening bell for stocks to watch today with Opening Bell, here on Money & Markets.