5 things to know before the stock market opens on Friday, July 22
Here are the most important news that investors need to start their trading day:
1. Another mixed stock morning
Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2022.
Brendan McDermid | Reuters
The three major US stock indices looked like they were in some mixed trading on Friday morning after a relatively strong close on Thursday. The US dollar, which has been getting stronger and weighing on growth-oriented technology stocks, slowed slightly after the European Central Bank, in an effort to tackle inflation, raised interest rates for the first time in more than a decade. This was particularly helped by the high-tech Nasdaq, which closed 1.36% higher Thursday. But then, beloved social media reported Snap after the bell, as well…see below.
2. Social media freak
Evan Spiegel, co-founder and CEO of Snap Inc. , during the virtual Google Pixel Fall Launch event in New York, Tuesday, October 19, 2021.
Michael Nagel | Bloomberg | Getty Images
It was brutal. Snap posted weaker-than-expected results and slowed revenue, but the real driver was the company’s warning that it will not provide guidance for the third quarter because “the outlook remains very challenging.” Snap, which has joined other tech companies, said it plans to slow the pace of hiring. As of Thursday’s close, Snap shares were already down nearly two-thirds so far this year. The company’s terrible quarterly report sent a chill across other social media stocks, such as Meta and Facebook’s parent Pinterest, after hours on Thursday. And Twitter Friday morning published the results, including a bottom line loss, that missed Wall Street expectations.
3. Airlines call it back
Passengers with an infant use the Delta Air Lines check-in kiosk at Hartsfield-Jackson Atlanta International Airport before the Fourth of July holiday in Atlanta, Georgia, July 1, 2022.
Elijah Newag | Reuters
Air travel is back in a big way. Covid restrictions have been greatly eased. The airlines are making profits. The three largest US airlines – United, America and Delta – reported quarterly earnings for the most recent period, with each expressing optimism about demand for the rest of the summer. But the big travel boom has caused headaches everywhere: higher prices, longer delays, more cancellations, staff shortages, you name it. With costs, prices and demand soaring, airlines, buoyed by billions of dollars in federal support during the pandemic, are scaling back their flight growth targets. “The more airlines limit capacity, the more airfare they can charge,” Henry Hartfeldt, founder of the Atmosphere research group and former airline CEO, told CNBC reporter Leslie Josephs. “They will not get another bailout,” he added. “They squandered a lot of their goodwill.”
4. Energy saving in Germany
Uniper is in talks with the German government about a possible rescue plan.
Photo Alliance | Photo Alliance | Getty Images
The German government on Friday approved $15.24 billion to bail out energy giant Uniper. The company’s difficulties are related to the Russian invasion of Ukraine and the subsequent energy crisis. Uniper, majority owned by a Finnish company, is Germany’s largest importer of Russian gas. Earlier this month Uniper requested government help after it warned of rising energy bills. The German government owns 30% of the company.
5. How far have we come
President Joe Biden, who tested positive for Covid-19 this morning, posted on Twitter, “People, I’m fine. Thank you for your concern. I just called Senator Casey, Congressman Cartwright, and Mayor Cognetti (and my cousins in Scranton!) to send my regret at missing our event today. “.
Courtesy: The White House
On Thursday, the White House announced that President Joe Biden had tested positive for the coronavirus. The news made the headlines everywhere. Biden is 79 and therefore considered to be at greater risk of a more serious bout with Covid. However his symptoms were “very mild” and he continued to work albeit in isolation. He was vaccinated and boosted, and was taking Pfizer’s antiviral treatment Paxlovid. It wasn’t long before the development became just another news story. The markets have largely ignored it. Covid, which became a pandemic more than two years ago, remains a threat to health and the economy. Tens of thousands of people are infected every day in the United States, leaving many stuck at home. Thousands are still hospitalized every day while hundreds are dying. But if the otherwise muted reaction to the president’s infection is any indication, it’s clearer than ever that Americans – and markets – are largely eager to move forward, even if the virus isn’t.
– CNBC’s Samantha Sobin, Jonathan Fanian, Ashley Capote, Leslie Joseph, Kevin Brueninger and Katrina Bishop contributed to this report.
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