Dow Jones futures up 149pts, Peloton share price to be watched on Friday

Futures markets suggests the Dow Jones Industrial Average will open higher on Friday, while Peloton is likely to be closely watched by investors after surging in after-hours trade following the release of its FY20 results.

Dow Jones futures in focus

US markets continued to sell-off overnight – with the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 all finishing out the session lower.

As has been the case over the last week or so, the tech-heavy Nasdaq proved to be the worst performing benchmark overnight, falling 1.99% or 221 points, to finish out the session below the key 11,000 point level.

The Dow Jones also posted losses, dipping 1.45% during Thursday’s session. Tellingly, fast food stalwart McDonald's was the only Dow constituent to trade positively on Thursday, while Apple, Microsoft, and UnitedHealth witnessed the most pronounced share price declines.

Commenting on these market moves, IG Market Analyst Kyle Rodda said:

‘Although there remains a predominant risk-aversion in the market at the moment, the correction still appears a function of price-discovery and rebalancing, rather than anything that warns of a nascent trend reversal.’

Positively at least – for those with bullish inclinations – Mr Rodda added that there:

‘Were tentative signs last night that US indices were searching for a bottom. The jury remains out, but the major US indices sold-off on much thinner volumes, and avoided recording a new “lower-low”, at least for now.’

At the time of writing Dow Jones futures traded up some 149 points or 0.54% (11:49 New York time), suggesting that the key US benchmark would open higher on Friday, 11 September.

Nasdaq and S&P 500 futures were also trading in the green at the time of writing.

Peloton share price to be closely watched following FY20 release

On a more granular level, connected fitness company Peloton (PTON) is likely to be closely watched by investors on Friday, after releasing a strong set of fourth quarter and full-year (FY20) results to the market.

Overall, Peloton posted an impressive set of operational figures for fiscal 2020, reporting:

  • Total FY20 revenue growth of 100%, at $1.8 billion;
  • Connected Fitness subscriptions more than doubled, hitting ~1.09 million; while paid Digital subscriptions more than tripled, rising to ~316,800;
  • Q4 net income came in at $89.1 million; and
  • Peloton recorded 76,817 workouts in Q4, a record for the company.

Commenting on these results, Peloton’s Founder and Chief Executive John Foley said:

‘2020 was a transformative year for Peloton. We made great progress in scaling our business, from manufacturing and logistics, to member support and field operations. We launched operations in Germany, our first foreign language market, and continued to grow our footprint in the United States, Canada, and the United Kingdom.’

Investors appeared to agree with such a characterisation – with the stock being bid 9.69% higher in after-hours trade, to a 52-week high of $96.25 per share.

YTD Peloton is up 195%.

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