Here is what you need to know.
Friday is jobs day. The US economy is expected to have added 200,000 nonfarm payroll jobs in April as the unemployment rate ticked down to 4.9%. “Another 200k increase in nonfarm payrolls is not a game-changer” for the Fed, Marc Chandler of Brown Brothers Harriman wrote in a note to clients. “The issue is not jobs or income; it is consumption and investment.” Additionally, average hourly earnings are expected to have climbed by 2.4% compared to a year ago. The data will cross the wires at 8:30 a.m. ET.
Saudi Arabia’s stock exchange is going public. Bloomberg reports, Saudi Arabia’s Tadawul Stock Exchange has hired HSBC Saudi Arabia to advise on its initial public offering. According to the report, the IPO will take place by 2018, pending regulatory approval. The IPO comes as Saudi Arabia looks to privatize assets as it reels from the crash in oil prices.
Fitch downgraded Brazil. The credit rating agency cut its sovereign debt rating for Brazil to ‘BB’ from ‘BB+.’ The downgrade drops Brazil’s credit rating further into junk territory. According to Fitch’s release, “The downgrade of Brazil’s ratings reflects the deeper-than-anticipated economic contraction, failure of the government to stabilise the outlook for public finances and the sustained legislative gridlock and elevated political uncertainty that are sapping domestic confidence and undermining governability as well as policy effectiveness.” Fitch maintained its negative outlook.
Goldman Sachs is firing traders. People familiar with the matter said the investment bank announced layoffs in its fixed-income, currencies and commodities (FICC) business, bringing its headcount reduction to around 10%. The news was first reported by the Wall Street Journal. Thursday’s cuts follow a difficult first quarter for Goldman, which saw a 37% drop in trading revenue versus a year ago.
Deutsche Bank is being investigated for possible market manipulation. Reuters reports, the German bank is being investigated in Italy for potentially manipulating the sale $7 billion worth of Italian bonds in 2011. Authorities are investigating five former Deutsche Bank managers, and the investment bank itself, the report says.
GoPro’s quarter was mixed. The digital-camera maker lost an adjusted $0.63 per share, missing the $0.59 loss that was anticipated by the Bloomberg consensus. Revenue tumbled 49.5% to $183.5 million, but that was good enough to beat the $169.1 million Wall Street estimate. GoPro expects 2016 revenue of between $1.35 billion and $1.5 billion. The stock is lower by 3.4% in pre-market action.
Square is getting destroyed. The mobile payment company lost $0.14 per share, which was worse than the $0.09 loss that was expected by the Bloomberg consensus. Square’s 72% spike in operating costs was the reason for the larger than expected loss. Meanwhile, revenue climbed 51% versus a year ago to $379.2 million, beating the $343.6 million that was forecast. Shares were down as much as 15% in after hours trade.
Stock markets pretty much everywhere are lower. China’s Shanghai Composite (-2.8%) led the decline in Asia as Australia’s ASX (+0.3%) eked out a gain. In Europe, France’s CAC (-1.1%) leads the way lower. S&P 500 futures are down 5.50 points at 2038.50.
Earnings reporting slows down. ArecelorMittal, Exelon, Madison Square Garden, and Weyerhauser are among the names releasing their quarterly results ahead of the opening bell. Berkshire Hathaway will report after markets close.
US economic data is light aside from the jobs report. Consumer credit will cross the wires at 3 p.m. ET. The US 10-year yield is down 1 basis point at 1.74%.