Good morning! Here’s what you need to know.
It’s jobs day in the US. It’s the official report on how many jobs the US economy added in January. Economists are forecasting that 230,000 jobs were added. The unemployment rate is expected to be unchanged at 5.6%. Average hourly earnings are estimated to have climbed by 0.3% month-over-month.
Some economists are banking on a stronger number. Pantheon Macroeconomics notes the “key leading indicator,” the NFIB hiring intentions index from five months ago, suggests we could see closer to 275,000 jobs added. Societe Generale’s Brian Jones notes the signal sent by initial jobless claims supports a stronger number — he’s looking for 275,000.
Maybe we should ignore Friday’s jobs report altogether. “Be wary of January payrolls data!” High Frequency Economics’ Jim O’Sullivan warned. “While the data are noisy in general, limiting the information value of a single reading, the seasonal adjustment process is especially challenging in January.” Also, don’t forget that these numbers get revised frequently. In an unrelated note, TD Securities’ Millan Mulraine reminds us that nine of the past 10 jobs reports missed economists’ expectations. For what it’s worth.
Markets are a bit higher. US futures are modestly in the green, with Dow futures up 12 points and Nasdaq futures up 2.2 points. European markets are down, with Britain’s FTSE down 0.4%, France’s CAC 40 down 0.5%, and Germany’s DAX down 0.8%. The Nikkei closed up 0.82%.
Twitter’s revenue surged, but user growth missed expectations. In the fourth quarter, Twitter’s revenue was $US479 million, up 97% on a year-over-year basis, blowing away analyst expectations of $US453.6 million. Twitter’s use remains challenged. Twitter had 288 million average monthly active users, short of the 292 million expected by analysts. The stock is up 9.5% in premarket trading.
LinkedIn profits surged, and share prices followed. LinkedIn reported its fourth-quarter earnings Thursday afternoon, delivering a beat that sent the stock surging. The company reported revenues of $US643 million versus Wall Street expectations of $US617 million, with revenue up 45%. The stock is up 9.8% in premarket trading.
GoPro crushes, but … GoPro reported fourth-quarter revenue and earnings that smashed expectations. But an initial 13% stock surge quickly turned around. The stock is now down by 13% in premarket trading. The news investors seem not to like was disclosed in a regulatory filing, as the company said that on Monday its COO Nina Richardson tendered her resignation effective as of Feb. 27.
RadioShack is bankrupt. In a release Thursday evening, the electronics retailer disclosed that it had reached an agreement with the hedge fund Standard General for the firm to purchase up to 2,400 of RadioShack’s stores. To facilitate this sale, the company has filed for Chapter 11 bankruptcy protection in Delaware.
Frontier is buying more than $US10 billion in Verizon assets. Frontier Communications Corp. will buy Verizon Communications Inc.’s wireline operations in three US states for $US10.54 billion in cash, the regional telephone operator said Thursday.
The treasurer of Brazilian President Dilma Rousseff’s political party is embroiled in Petrobras’ crisis. The growing scandal engulfing the Brazilian oil giant Petrobras hit the ruling Workers’ Party close to home Thursday as treasurer Joao Vaccari Neto was detained over allegations of involvement in a multibillion-dollar kickback scheme.