Here are the key news, trends, and analysis investors need to start their trading day:
1. Stocks will open lower, but still on price gains in July
Trader on the New York Stock Exchange, July 20, 2021.
Wall Street should open lower on the last day of trading in July as investors receive three Dow stock gains and one more inflation indicator to digest. Nasdaq futures were at the top, down more than 1% on Friday, as Amazon shares nearly 7% in the premarket after its first loss of sales in three years. The Dow Jones Industrial Average and S&P 500 hit all-time highs during Thursday’s trading session, breaking two-day losing streaks. But they couldn’t beat Monday’s record deals. The Nasdaq rose modestly but closed about 0.4% off its last record high on Monday. All three stock benchmarks tracked solid monthly returns.
2. The Fed’s favorite pre-bell release inflation gauge
A child passes the Marriner S. Eccles Federal Reserve Board building on Constitution Avenue, NW, Monday, April 26, 2021.
Tom Williams | CQ Roll Call, Inc. | Getty Images
The Federal Reserve’s most popular inflation meter releases at 8:30 a.m. ET. Economists expect the government’s consumer spending index to rise 3.6% yoy for June. This would follow a 3.4% increase in May, the fastest increase since the early 1990s. At the end of its July meeting on Wednesday, the Fed noted “progress” on inflation and employment targets, which was seen as a signal that changes in monetary policy, particularly monthly bond purchases, could be imminent. Central bankers made no adjustments to asset purchases and interest rates close to zero.
3. Mixed stock reactions to the profits of Dow companies
On July 12, 2021 in San Francisco, California, Chevron and Shell gas stations display gasoline prices close to $ 5.00 per gallon.
Justin Sullivan | Getty Images
Dow stock Chevron reported a second profitable quarter in a row on Friday as increased demand for petroleum products and a surge in oil prices fueled operations. The company has also resumed its share buyback program. The oil giant made an adjusted $ 1.71 per share on sales of $ 37.6 billion. Both exceeded estimates. Before the IPO, the shares rose by around 1.5%. Exxon, no longer a Dow stock, also beat estimates for earnings and sales. The shares rose in the premarket.
Caterpillar Inc. excavators will be available for sale on Monday, January 27, 2020 at the Whayne Supply Co. dealer in Louisville, Kentucky, United States.
Luke Sharrett | Bloomberg | Getty Images
Caterpillar, another Dow constituent, fell nearly 2.5% in its premarket on Friday, despite the heavy equipment maker saying it adjusted $ 2.60 per share on sales of nearly $ 12.9 billion earned. The industrial leader and representative for global economic activity benefits from higher infrastructure spending around the globe.
Bottles of Tide laundry detergent, a Procter & Gamble product, will go on sale at a pharmacy in Los Angeles, California on July 30, 2020.
Mario Tama | Getty Images
Procter & Gamble beat estimates on Friday with quarterly earnings and revenues as consumers bought more high-quality health and personal care products. Dow shares rose 1% before the IPO. P&G reported earnings per share of $ 1.13 on sales of nearly $ 19 billion. However, the company warned that rising raw material costs could hurt earnings in the coming year.
4. Amazon posts another $ 100 billion quarter but still misses
The boxes move on a conveyor belt at an Amazon fulfillment center on Prime Day in Raleigh, North Carolina, the United States, on Monday, June 21, 2021.
Rachel Jessen | Bloomberg | Getty Images
Amazon said Thursday afternoon that second-quarter revenue rose 27% year over year to more than $ 113 billion, the third straight quarter of $ 100 billion, but actually slower growth compared to the blistering surge of 41 percent in the same period of the previous year. The e-commerce and cloud giant reported earnings per share of $ 15.12 for the second quarter, beating expectations. Looking ahead, Amazon warned of lower sales and a lower growth rate for the third quarter. The forecast reflected similar warnings from Facebook and Apple this week that sales growth rates would slow from pandemic highs.
5. CDC is expected to publish data on new mask recommendations
United States President Joe Biden and Vice President Kamala Harris will receive an update on the fight against the coronavirus disease (COVID-19) pandemic during their visit to the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia on March 19, 2021.
Carlos Barria | Reuters
Unpublished CDC data is expected to be released on Friday, according to The Washington Post, recommending Tuesday’s decision to recommend fully vaccinated people to wear indoors again in locations with high Covid transmission rates. The internal CDC document that the Post received shows that the Delta variant is as contagious as chickenpox. It also shows that vaccinated people who become infected with Delta can spread it just as easily as unvaccinated people. Members of Congress were briefed on the CDC data by director Rochelle Walensky on Thursday, the Post reported.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.