Here are the top news investors need to start their trading day:
1. Stock futures fall after jobs report
People walk past the New York Stock Exchange (NYSE) on Wall Street on July 12, 2022 in New York City.
Angela Weiss | AFP | Getty Images
Stock futures were lower on Friday morning after a much stronger-than-expected July nonfarm payrolls report signaled to investors that the Federal Reserve is likely to remain in rate-hike mode. Movement in futures was relatively muted ahead of the release of the labor market data. Wall Street reported a mixed session on Thursday. The Dow Jones Industrial Average fell 0.26% for its third negative day in four, while the S&P 500 lost just 0.08% and remained positive for the week to date. The tech Nasdaq Composite, meanwhile, rose 0.41% to close at its highest level since May 4.
2. The US added 528,000 jobs in July
A man walks past a “We’re Hiring” sign in New York on July 8, 2022.
Angela Weiss | AFP | Getty Images
The U.S. added 528,000 jobs in July, the Bureau of Labor Statistics said on Friday, far beating the Dow Jones estimate of 258,000 and defying other recent data that showed the economic recovery was slowing. The unemployment rate fell to 3.5%, when economists had expected it to hold steady at 3.6%. Wages rose 0.5% on a monthly basis, beating forecasts for a 0.3% gain. The sector with the largest job gain in July was leisure and hospitality, with wages increasing by 96,000.
3. China suspends cooperation with the US on military and climate issues
China said on Friday it was suspending cooperation with the US on issues including climate change and military relations after House Speaker Nancy Pelosi earlier this week visited Taiwan, the democratic island that Beijing claims as its territory. China also imposed sanctions on Pelosi personally for the visit, further inflaming tensions between the world’s two largest economies. US Secretary of State Anthony Blinken criticized China for firing missiles during military exercises near Taiwan this week, saying the actions constituted an “extreme, disproportionate and escalating” response, according to Reuters.
4. DoorDash pops and more profits
An AFP journalist checks the DoorDash food delivery app on his smartphone on February 27, 2020 in Washington, DC.
Eric Baradat | AFP | Getty Images
Shares of DoorDash jumped more than 9% in premarket trading on Friday after the food delivery company’s second-quarter revenue beat expectations and orders delivered in the period hit an all-time high of 426 million. However, DoorDash reported a larger-than-expected loss of 72 cents per share and warned that it expects a “softer consumer spending environment” in the third and fourth quarters.
In more earnings news:
- Expedia Group reported strong earnings and revenue for the quarter ended June 30, sending its shares up more than 4 percent, and Chief Executive Peter Kern said “travel demand remains strong” despite flight disruptions and economic uncertainty.
- Ride-hailing company Lyft reported better-than-expected adjusted earnings based on estimates compiled by FactSet, helping the stock rise 7.5% in premarket trading.
- Beyond Meat cut its full-year sales forecast and announced plans to cut about 4% of its workforce, while reporting disappointing second-quarter results. CNBC’s Amelia Lucas has a full recap here.
5. Democrats reportedly add buyback tax to ‘Cut Inflation Act’
Sen. Kirsten Sinema, Democrat of Arizona, listens during a press conference in the Dirksen Senate Office Building in Washington, DC, U.S., Wednesday, July 28, 2021.
Stephanie Reynolds | Bloomberg | Getty Images
Senate Democrats appear to have enough support to advance the so-called Deflation Act, and a 1 percent tax on stock buybacks is already part of the sweeping legislative proposal, CNBC’s Ylan Mui reported Friday morning. However, as a condition of winning the support of Sen. Kirsten Sinema, D-Ariz., the bill no longer includes a change to the tax on carried interest, which allows hedge funds and private equity investors to pay a lower rate. Read the full story about Sinema’s support for the legislation here.
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