5 things to know before the stock market opens on Friday

Here are the most important news that investors need to start their trading day:

1. Stock futures drop 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 fell on Friday morning After the July Nonfarm Payrolls report came in much stronger than expected, which indicates to investors the Federal Reserve is likely to remain in the position to raise interest rates. The movement in futures contracts was relatively muted prior to the release of labor market data. On Thursday, Wall Street recorded a mixed session. The Dow Jones Industrial Average It decreased by 0.26%, which is the third negative day in four days, while Standard & Poor’s 500 It lost only 0.08% and this week has been positive so far. heavy technology Nasdaq CompositeMeanwhile, it 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 an “We’re Hiring” sign in New York City on July 8, 2022.

Angela Weiss | AFP | Getty Images

The US added 528,000 jobs in July, the Bureau of Labor Statistics said Friday, well above the Dow Jones’ estimate of 258,000 and contrasting with other recent data indicating that the economic recovery is slowing. The unemployment rate fell to 3.5%, when economists had expected it to remain steady at 3.6%. Wages rose 0.5% month over month, topping estimates for a 0.3% rise. The sector with the biggest job gains in July was the leisure and hospitality sector, where salaries grew by 96K.

3. China stops cooperation with the United States in the military and climate fields

China said on Friday it had suspended cooperation with the United States on issues including climate change and military ties after the speaker of the House of Representatives Nancy Pelosi Earlier this week, she visited Taiwan, the democratic island that Beijing claims as its territory. China also sanctioned Pelosi personally for the visit, heightening 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 those actions represented an “extreme, disproportionate and escalatory response”. According to Reuters.

4. Pops DoorDash and More Profits

An AFP journalist checks the food delivery app DoorDash on her smartphone on February 27, 2020 in Washington, DC.

Eric Bardat | AFP | Getty Images

DoorDash Involved Jumped more than 9% in pre-market trading on Friday, after the food delivery company’s second-quarter revenue beat expectations and orders delivered in the period reached an all-time high of 426 million. However, DoorDash reported a more-than-expected loss of 72 cents a share and warned that it expects a “softer consumer spending environment” in the third and fourth quarters.

In more earnings news:

  • Expedia Group It posted strong earnings and revenue for the June 30 quarter, sending shares up more than 4%, and CEO Peter Kern said “travel demand remained strong” despite flight disruptions and economic uncertainty.
  • Car rental company Lift It reported better-than-expected adjusted earnings, based on estimates compiled by FactSet, which helped the shares rise 7.5% in pre-market trading.
  • Beyond the meat It lowered its full-year sales forecast and announced plans to lay off about 4% of its workforce, while also reporting disappointing results for the second quarter. CNBC’s Amelia Lucas has the full summary here.

5. The Democrats are said to have added a buyback tax to the Inflation Reduction Act.

Senator Kirsten Senema, an Arizona Democrat, listens during a news conference at the Dirksen Senate Building in Washington, D.C., U.S., on Wednesday, July 28, 2021.

Stephanie Reynolds | Bloomberg | Getty Images