Here are the most important news investors need to start their trading day:
1. Stock futures fall after the 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 fell on Friday morning after a much stronger-than-expected July non-farm payrolls report signaled to investors that the Federal Reserve is likely to remain in rate-hike mode . Futures movement was relatively quiet ahead of the release of labor market data. On Thursday, Wall Street posted a mixed session. The Dow Jones Industrial Average fell 0.26%, its third negative day in four, while the S&P 500 lost just 0.08% and remains positive so far. Meanwhile, the tech-heavy Nasdaq Composite rose 0.41% to close at its highest level since May 4.
2. The United States added 528,000 jobs in July
A man walks past a ‘We’re Hiring’ sign in New York City on July 8, 2022.
Angela Weiss | AFP | Getty Images
The United States added 528,000 jobs in July, the Bureau of Labor Statistics said on Friday, far beating the Dow Jones estimate of 258,000 and countering other recent data suggesting the economic recovery is slowing. The unemployment rate fell to 3.5%, when economists had expected it to hold steady at 3.6%. Wages rose 0.5% month-on-month, beating estimates for a 0.3% increase. The sector with the most employment in July was leisure and hospitality, with payrolls growing by 96,000.
3. China stops cooperation with the US on military and climate matters
China said on Friday it was ending cooperation with the US on issues such as climate change and military relations after the House Speaker. Earlier this week, Nancy Pelosi visited Taiwan, the democratic island that Beijing claims as its own territory. China also personally imposed sanctions on Pelosi over the visit, further raising tensions between the world’s two largest economies. US Secretary of State Antony Blinken criticized China for launching missiles during military exercises near Taiwan this week, saying the actions represented an “extreme, disproportionate and escalated” response. according to Reuters.
4. DoorDash pops and more earnings
An AFP reporter checks the DoorDash food delivery app on her smartphone on February 27, 2020 in Washington, DC.
Eric Baradat AFP | Getty Images
Shares of DoorDash rose more than 9% in premarket trading Friday, after the food delivery company’s second-quarter revenue beat expectations and orders delivered during the period hit an all-time high of 426 million. However, DoorDash reported a wider-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 shares up more than 4%, with chief executive Peter Kern saying “demand for travel has remained strong ” despite flight disruptions and economic uncertainty. Ride-hailing company Lyft reported better-than-expected adjusted earnings, based on estimates compiled by FactSet, which helped send shares 7.5% higher in premarket trading. Beyond Meat cut its full-year sales forecast and announced plans to lay off about 4% of its workforce, while reporting a disappointing second quarter. results CNBC’s Amelia Lucas has a full recap here.
5. Democrats add buyback tax to ‘Inflation Reduction Act’
Senator Kyrsten Sinema, D-Arizona, listens during a news conference in the Dirksen Senate Office Building in Washington, DC, US, on Wednesday, July 28, 2021.
Stephanie Reynolds | Bloomberg | Getty Images
Senate Democrats appear to have enough support to advance the so-called Inflation Reduction Act, and a 1 percent tax on stock buybacks is now reportedly part of the broader legislative proposal, the morning Ylan Mui of CNBC. However, as a condition of getting the support of Sen. Kyrsten Sinema, D-Ariz., the bill no longer includes a change to the interest tax, which allows hedge fund and private equity investors to pay a lower rate Read a full story about Sinema’s support for the legislation here.
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