Top 5 Market Insights to Know Before Trading Begins
Stay ahead of the market with key updates on Apple’s revenue trends, the Labor Department’s jobs report, and significant stock movements from Block, Bill Holdings, and DraftKings.
Market Highlights for November 3, 2023
Apple’s shares dropped following its announcement of a fourth consecutive quarter with declining revenue, while the Labor Department’s upcoming jobs report is anticipated to reveal a slowdown in employment growth. Here’s the essential information investors should focus on today.
1. Apple Experiences Revenue Decline for Fourth Consecutive Quarter
Shares of Apple Inc. (AAPL) declined by 3% in pre-market trading after the company reported $89.5 billion in revenue, reflecting a 1% year-over-year decrease. This downturn was partly driven by a 2.5% reduction in sales within China, Apple’s third-largest market. Despite this, iPhone sales rose by 2.8% year-over-year, matching analyst expectations amid softer demand. Additionally, Apple’s net income reached $23 billion, surpassing projections.
2. U.S. Job Growth Expected to Slow According to Labor Department Data
The Bureau of Labor Statistics is set to release October employment figures at 8:30 a.m., with forecasts predicting a slowdown to 170,000 new jobs, down from September’s robust 336,000. The unemployment rate is expected to hold steady at 3.8%, while hourly wages are projected to increase by 0.3% month-over-month, slightly higher than September’s 0.2%. However, annual wage growth may dip to 4% from 4.2%. These employment and wage metrics are crucial for Federal Reserve decisions on potential interest rate adjustments aimed at controlling inflation.
3. Block Inc. Shares Surge on Strong 2024 Earnings Outlook
Payment technology company Block Inc. (SQ) saw its shares jump 16% in pre-market trading after releasing a preliminary 2024 adjusted EBITDA forecast of $2.4 billion, well above analyst expectations of $1.94 billion. The company, which owns Square and Cash App, plans to boost profit margins by focusing on localized products, leveraging artificial intelligence, and expanding its banking services.
4. Bill Holdings Shares Drop Sharply After Disappointing Revenue Forecast
Bill Holdings (BILL), a financial platform for small and mid-sized businesses, experienced a more than 34% decline in pre-market trading following its fourth-quarter revenue guidance of $293 million to $303 million and earnings per share (EPS) between $0.35 and $0.44. These figures fell short of analyst estimates of $319 million in revenue and $0.48 EPS. The company cited a challenging economic environment for the lowered outlook. However, for the latest quarter, Bill Holdings reported EPS of $0.54 and revenue of $305 million, both surpassing expectations.
5. DraftKings Reports 57% Revenue Growth Driven by Expansion and Engagement
Shares of DraftKings (DKNG) rose over 7% in pre-market trading after the online sports betting company reported quarterly revenue of $790 million, exceeding analyst expectations of $706.8 million and marking a 57% increase year-over-year. The company attributed this growth to geographic expansion and heightened user engagement. DraftKings also posted a reduced quarterly loss of $0.61 per share, an improvement from a $1 loss per share in the same quarter last year.
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