Here are the most important news items that investors need to start their trading day:
1. Lots to digest
Stock futures were up slightly as investors dissected Big Tech earnings and Friday’s jobs report. Nasdaq-100 futures climbed 0.3%, while S&P 500 futures gained 0.3%. Futures tied to the Dow Jones Industrial Average rose nearly 0.2%. Individual stocks were also seeing big moves, as mega-cap names Apple and Amazon reported earnings after the bell Thursday. Amazon rose 8.7%, but Apple lost more than 2%. Follow live market updates.
2. Jobs report
Job growth in July was less than expected, as nonfarm payrolls rose by 187,000 for the month. Wall Street had been anticipating an increase of 200,000. The unemployment rate, meanwhile, was 3.5%. The data released from the Labor Department on Friday points to slower growth in the U.S. economy. Other recent data reports — including GDP, productivity and consumer spending — have been strong, but the Federal Reserve will be looking to see whether the central bank needs to keep raising interest rates to control inflation.
3. You win some…
Amazon reported second-quarter earnings yesterday that blew past analysts’ expectations and a return to double-digit growth, a sign that the e-commerce giant’s ongoing cost-cutting efforts are working. The company also issued rosy guidance that indicates accelerating revenue growth. Its important cloud unit saw success in the second quarter as well. Apple also beat analyst expectations in its third-quarter earnings report, but it saw some challenges. Overall sales for the tech giant were down 1% year over year, and revenue in the company’s main product lines fell from a year earlier. Although it doesn’t issue official guidance, Apple said it expects revenue to decline in the next quarter.
4. Back in court
Former President Donald Trump appeared in court in Washington, D.C., on Thursday to be arraigned on criminal charges related to his efforts to overturn his loss in the 2020 presidential election. He’s been charged with conspiracy to defraud the United States, conspiracy “to corruptly obstruct and impede” the Jan. 6, 2021, congressional proceeding when the Electoral College results were being certified, and a conspiracy against “the right to vote and to have one’s vote counted.” Trump, a leading candidate for the 2024 Republican presidential nomination, pleaded not guilty.
5. Out of office
Hoping to go abroad soon? You’re not alone. Airlines and hotels are seeing a surge in bookings for international trips — as well as rising prices. International airfare is up roughly 10% from last year and 26% from 2019, according to fare-tracking company Hopper. Meanwhile, domestic airfare is falling. The strong interest in foreign destinations is simultaneously creating a challenge for airlines, theme parks and hotels that are more focused within the U.S.
