Here are the most important information investors need to start their trading day:
1. Another mixed morning for equities
Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2022.
Brendan McDermid | Reuters
The three major U.S. stock indexes looked set for confused trading Friday morning after a relatively strong end Thursday. The US dollar, which had strengthened and weighed on growth-oriented tech stocks, cooled somewhat after the European Central Bank, in an attempt to counter inflation, raised rates for the first time. in over a decade. That particularly helped the tech-heavy Nasdaq, which closed Thursday up 1.36%. But then former social media darling Snap reported after the bell, well… see below.
2. Social media madness
Evan Spiegel, co-founder and CEO of Snap Inc., speaks during the virtual Google Pixel Fall Launch event in New York, Tuesday, October 19, 2021.
Michael Nagle | Bloomberg | Getty Images
It was brutal. Snap reported weaker-than-expected results and a slowdown in revenue, but the real boost was the company’s warning that it would not provide guidance for the third quarter as “forward-looking visibility remains incredibly challenging. “. Snap, joining other tech companies, also said it plans to slow its pace of hiring. As of Thursday’s close, Snap shares were already down nearly two-thirds so far this year. The company’s disastrous quarterly report sent a chill to other social media stocks, such as Facebook’s parent company Meta and Pinterest, on Thursday after hours. And Twitter on Friday morning released results, including a net profit loss, that missed Wall Street expectations.
3. Airlines recall
Passengers with an infant use a Delta Air Lines check-in kiosk at Hartsfield-Jackson Atlanta International Airport ahead of the July 4 holiday in Atlanta, Georgia on July 1, 2022.
Elie Nouvelage | Reuters
Air travel is back in full force. Covid restrictions have been largely relaxed. And the airlines are making a profit. The three largest US carriers – United, American and Delta – all reported quarterly profits for the most recent period, each expressing optimism about demand for the rest of the summer. But the big rebound in travel has created headaches everywhere: higher fares, longer delays, more cancellations, staff shortages, and more. With costs, fares and demand high, airlines, which have been buoyed by billions of dollars in federal support during the pandemic, are slashing their flight growth targets. “The more airlines limit their capacity, the higher they can charge airfares,” Henry Harteveldt, founder of Atmosphere Research Group and former airline executive, told CNBC’s Leslie Josephs. “They won’t get another bailout,” he added. “They wasted a lot of their goodwill.”
4. Energy bailout in Germany
Uniper is in talks with the German government on a possible bailout.
Image Alliance | Image Alliance | Getty Images
The German government on Friday accepted a $15.24 billion bailout from energy giant Uniper. The difficulties of the company are linked to the invasion of Ukraine by Russia and the ensuing energy crisis. Uniper, majority-owned by a Finnish company, is Germany’s largest importer of Russian gas. Earlier this month, Uniper asked for government help after warning of rising energy bills. The German government takes a 30% stake in the company.
5. How Far We Are
President Joe Biden, who tested positive today for Covid-19 this morning, tweeted “Friends, I’m doing great. Thank you for your concern. Just called Senator Casey, Congressman Cartwright and Mayor Cognetti (and my Scranton cousins!) to send you my regrets for missing our event today.”
Courtesy of the White House
President Joe Biden has tested positive for the coronavirus, the White House announced Thursday. The news sparked headlines everywhere. Biden is 79 and therefore considered more at risk for a more serious fight with Covid. Still, his symptoms were “very mild” and he continued to work, albeit in isolation. He was vaccinated and boosted, and he was taking Pfizer’s Paxlovid antiviral treatment. It wasn’t long before the development became just another news story. Markets largely ignored it. The Covid, which became a pandemic more than two years ago, is still a threat to health and the economy. Tens of thousands of people are infected every day in the United States, keeping many stuck at home. And still every day, thousands of people are hospitalized while hundreds die. But if the otherwise subdued reaction to the president’s infection is any indication, it’s clearer than ever that Americans — and the markets — are largely eager to move on, even if the virus isn’t.
– CNBC’s Samantha Subin, Jonathan Vanian, Ashley Capoot, Leslie Josephs, Kevin Breuninger and Katrina Bishop contributed to this report.
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