Stocks Edge Higher on Jobless Claims Data – Wall Street Journal, 2/11/2021

• U.S. stocks edged higher Thursday, pushing major stock indexes toward new records, after data showed that the labor market is continuing its slow and halting recovery.
• Continued progress toward passing a $1.9 trillion stimulus package in the U.S. is bolstering sentiment as investors expect it to further cushion the economic impact of Covid-19 lockdowns. While some data has shown signs of improvement in the labor market, investors expect the elevated jobless claims figures to support the need for more stimulus.
• Fresh data showed that 793,000 Americans applied for first-time unemployment benefits in the week ended Feb. 6. New applications for the prior week were revised higher to 812,000.
• Federal Reserve Chairman Jerome Powell said Wednesday that the central bank will continue to bolster the economy with low interest rates and hefty asset purchases as it focuses on the strength of the labor market.
• The U.S. unemployment rate fell to 6.3% in January from 6.7% a month earlier. That compares with a 3.5% unemployment rate in February 2020, before the pandemic struck.
• The corporate earnings season will continue after the closing bell, with Walt Disney among those reporting results.
• In Asia, Hong Kong’s Hang Seng rose almost 0.5%, and Australia’s benchmark S&P/ASX 200 ticked 0.1% lower. The Japanese, Chinese and South Korean markets were closed for a holiday.

Covid-19 Live Updates: U.S. Hospitalizations at Lowest in Nearly Three Months – Wall Street Journal, 2/11/2021

• The number of people hospitalized due to Covid-19 in the U.S. fell to the lowest level since Nov. 16 as newly reported cases remained under 100,000 for the fourth day in a row.
• For the second consecutive day, hospitalizations due to the disease were under 80,000, totaling 76,979 as of Wednesday, according to the Covid Tracking Project. Pressure was also easing on intensive care units, with 15,788 Covid-19 patients requiring treatment in ICUs across the country, the lowest total since Nov. 19.
• The U.S. reported more than 93,000 new coronavirus cases for Wednesday, according to data compiled by Johns Hopkins University that was published early Thursday.
• The country reported 3,219 fatalities from Covid-19 for Wednesday and the nation’s total death toll now exceeds 471,000.
• The spread of new variants of the virus is a growing concern. According to the Centers for Disease Control and Prevention, 34 states had reported 932 cases of the variant first identified in the U.K., while nine cases of a South African variant and three cases of the variant from Brazil had been found, as of Feb. 9. Florida remained the state with the most detected cases of the U.K. variant, at 343 identified cases.
• On Wednesday, California Gov. Gavin Newsom said the state had identified two cases of the South African variant. Mr. Newsom said there are now 159 identified cases of the U.K. variant in the state.
• Germany will prolong its lockdown until March 7 after Chancellor Angela Merkel warned that new variants of coronavirus could trigger a third wave of infections.
• Ms. Merkel and state leaders decided on Wednesday to extend most of the country’s existing restrictions, including the closure of non-essential businesses. Minor easing of some measures were also announced: Schools and kindergartens will gradually reopen, depending on the individual decisions of state governments, and hairdressers will be allowed to work from March 1.
• Ms. Merkel warned in a parliamentary speech on Thursday that authorities must remain vigilant because the new viral variants that have been identified in Britain, South Africa and Brazil could fuel a renewed surge of infections.

Uber expands food delivery further, sees ride demand pick up – Reuters, 2/10/2021

• Uber Technologies on Wednesday said revenue at its ride-hail and delivery businesses increased on a quarterly basis and said it was well on track to reach its goal of achieving an adjusted profit by year-end.
• Uber reported $3.17 billion in total revenue in the months from October through December.
• Fourth-quarter mobility revenue, largely comprised of rides, declined by 52% from last year, but at $1.47 billion was up 8% on a quarterly basis despite new lockdown measures in the United States, Europe and the Middle East.
• Delivery revenue more than tripled from last year and at around $1.36 billion, grew 19% compared with the third quarter.
• Uber reported a loss on an adjusted basis before interest, taxes, depreciation and amortization of $454 million, significantly narrower than analysts’ average expectations for a $514 million loss, according to Refinitiv data.
• The narrower-than-expected adjusted EBITDA loss was helped by significant cost cuts the company instituted throughout 2020, including reducing staff by nearly 30% from the beginning of the year.

Zynga forecasts strong bookings for 2021 on ‘Harry Potter’ game boost – Reuters, 2/10/2021

• Zynga on Wednesday forecast annual net bookings above Wall Street estimates, betting on the launch of its upcoming “FarmVille” game and strong in-game spending in its existing titles such as “Harry Potter: Puzzles & Spells.”
• Net bookings were $699 million for the fourth quarter, beating estimates of $677.2 million.
• Zynga mainly generates revenue from the sale of virtual goods, such as currency and lives, within its free-to-play games.
• The “Words With Friends” publisher’s average monthly active users more than doubled from a year earlier to 134 million as people spent more time online due to pandemic-induced restrictions.
• Zynga said it expects full-year net bookings – an indicator of future revenue – to be $2.8 billion, more than the $2.75 billion analysts were anticipating, according to Refinitiv IBES data.
• The company said it expects international expansion of its franchises to drive growth in 2021, with Europe and Asia likely to be the primary growth markets.

MGM Resorts posts quarterly loss on pandemic pain – Reuters, 2/10/2021

• MGM Resorts International posted a quarterly loss compared with a year-ago profit on Wednesday, as COVID-19 travel restrictions dented business for the casino operator.
• Revenue from the company’s main casino business fell 40.9% to $963.8 million. Total revenue fell 53.1% to $1.49 billion.
• Net loss attributable to the company was $447.6 million, or 92 cents per share, in the quarter ended Dec. 31, compared with a profit of $2.01 billion, or $3.91 per share, a year earlier.
• On an adjusted basis, the company lost 90 cents per share, while total liquidity was $8.8 billion as of Dec. 31, 2020 at MGM.
• MGM said it expects its sports betting unit, BetMGM, to be in 20 markets by the year-end, as companies move to capitalise on an expected boom in online sports betting in the U.S.

Kellogg forecasts 2021 demand decline after lockdown snack-fest – Reuters, 2/11/2021

• Kellogg posted a rare profit miss and forecast a decline in organic revenue growth for 2021 on Thursday as demand for its breakfast cereals and snacks falls from the strong levels seen during last year’s lockdowns.
• Net sales rose to $3.46 billion from $3.22 billion a year earlier.
• Analysts were expecting sales of $3.50 billion, according to IBES Refinitiv.
• Net sales in North America, which accounts for about 60% of Kellogg’s revenue, rose by less than 1% on an organic basis, as a resurgence in coronavirus cases hurt its business that sells its cereals, snacks and frozen foods to convenience stores, universities and schools.
• Kellogg, which also makes Pringles, Cheez-Its and Pop-Tarts, forecast organic net sales to fall by about 1% in 2021, compared with a growth of 6% in 2020.

Lockdown living helps PepsiCo through pandemic, vaccine paves path to growth – Reuters, 2/11/2021

• PepsiCo has joined rival Coca-Cola in predicting revenue growth in 2021, saying on Thursday it expects pre-pandemic lifestyles to resume as economies reopen and COVID-19 vaccines are rolled out.
• Pepsi said its fourth-quarter revenue rose 8.8% to $22.46 billion, topping Wall Street expectations, as people munched Tostitos and Cheetos and gulped down Gatorade while stuck at home during a second wave of coronavirus lockdowns.
• Organic revenue for Frito-Lay North America rose 5%, while those at the North American beverage unit rose 5.5%.
• Excluding items, it earned $1.47 per share, a cent above expectations, according Refinitiv IBES data.
• The company expects a mid-single digit rise in annual organic revenue and a high-single digit increase in adjusted earnings.

Kraft Heinz to sell Planters, Corn Nuts brands to Hormel for $3.35 billion – Reuters, 2/11/2021

• Kraft Heinz said on Thursday that it plans to sell its nuts business – including most Planters and Corn Nuts products – to Hormel Foods Corp for $3.35 billion.
• Sales grew 6.2% to $6.94 billion in the three months ended Dec. 26, beating the average estimate of $6.82 billion, according to Refinitiv data.
• Adjusted net earnings rose to 80 cents per share from 72 cents per share a year earlier, beating estimates of 74 cents per share.

Production shutdown, weak restaurant orders hit meat producer Tyson’s sales – Reuters, 2/11/2021

• Tyson Foods missed Wall Street estimates for first-quarter sales on Thursday, squeezed by production disruptions and weak demand for its hotdogs and sausages from restaurants and hotels during the COVID-19 pandemic.
• Overall sales fell about 3% to $10.46 billion in the quarter, missing a Refinitiv IBES estimate of $10.84 billion.
• Pork unit sales were hit as the largest U.S. meat processor idled an Iowa plant for three weeks due to a mechanical malfunction, while volumes at its chicken and beef unit took a knock from the pandemic.
• Net income attributable to Tyson fell nearly 8% to $467 million, or $1.28 per share, in the three months ended Jan. 2.
• The maker of Ball Park hotdogs and Jimmy Dean sausages also said it would incur about $440 million of pandemic-related costs in fiscal 2021, warning that certain expenses could become permanent.

Ford, Volkswagen EV Battery Supplier Dealt Setback by Trade Commission – Wall Street Journal, 2/11/2021

• A federal trade commission ruled against battery maker SK Innovation in a case that could disrupt Ford Motor and Volkswagen’s plans to build electric vehicles in the U.S.
• The U.S. International Trade Commission, an independent government agency, affirmed Wednesday a judge’s earlier ruling in favor of rival LG Chem, which in 2019 accused SKI of stealing trade secrets related to lithium-ion battery production. SK Innovation has denied the allegations.
• The commission’s ruling threatens two new battery plants SKI is building in Georgia to supply Ford and VW with batteries for models set to go into production in the next two years. The Korean company has said it is investing $2.6 billion on the project.
• In the ruling, the commission prohibited SKI from importing its batteries for 10 years. However, the ruling allowed the company to import equipment necessary to make batteries for Ford and VW for four and two years, respectively, to allow the auto makers time to find another domestic battery supplier.

Oil Demand Recovery Expected to Pick Up Speed Later This Year – Wall Street Journal, 2/11/2021

• The recovery in global oil demand will accelerate in the second half of this year as the market continues to rebalance after the turmoil brought by the pandemic, according to OPEC and the International Energy Agency.
• Despite increasing its estimates for oil output in 2021, the IEA said in its monthly market report that a recovery in demand would outstrip production in the second half of the year, prompting “a rapid stock draw” of the glut of crude that has built up since the pandemic began.
• The agency significantly increased its forecast for producing nations outside of the pact between the Organization of the Petroleum Exporting Countries and allies such as Russia, raising its projections for non-OPEC supply growth by 290,000 barrels a day to an increase of 830,000 barrels a day this year.
• In its own monthly report, also released Thursday, OPEC reduced its non-OPEC production growth forecast by 200,000 barrels to 700,000 barrels a day.
• At the same time, the IEA trimmed its forecast for global oil demand by 200,000 barrels a day to 96.4 million barrels, around 3% less than in 2019, but said part of that was because of a change to historic data. OPEC also reduced its own 2021 demand forecast, cutting it to 96.1 million barrels a day.

Mastercard to open up network to select cryptocurrencies – Reuters, 2/11/2021

• Mastercard said on Wednesday it was planning to offer support for some cryptocurrencies on its network this year, joining a string of big-ticket firms that have pledged similar support.
• The credit-card giant’s announcement comes days after Elon Musk’s Tesla Inc revealed it had purchased $1.5 billion of bitcoin and would soon accept it as a form of payment.
• Mastercard already offers customers cards that allow people to transact using their cryptocurrencies, although without going through its network.
• Mastercard specified that not all cryptocurrencies will be supported on its network, adding that many of the hundreds of digital assets in circulation still need to tighten their compliance measures.