Here are the top news investors need to start their trading day:
1. Another mixed morning for stocks
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 like they were in for a mixed session on Friday morning after a relatively strong finish on Thursday. The U.S. dollar, which had been strengthening and weighing on growth-oriented technology stocks, cooled slightly after the European Central Bank, in an effort to counter inflation, raised interest rates for the first time in more than a decade. That especially helped the tech Nasdaq, which closed Thursday 1.36% higher. But then one-time social media darling Snap announced after the bell, and well… see below.
2. Social media freak
Evan Spiegel, co-founder and CEO of Snap Inc., speaks during the virtual Google Pixel Fall Launch event in New York, Tuesday, Oct. 19, 2021.
Michael Nagle | Bloomberg | Getty Images
It was brutal. Snap posted weaker-than-expected results and a revenue slowdown, but the real blow was the company’s warning that it would not provide guidance for the third quarter because “forward visibility remains incredibly challenging.” Snap, joining other tech companies, has also said it plans to slow its hiring pace. As of Thursday’s close, Snap shares had already fallen by nearly two-thirds so far this year. The company’s dire quarterly report sent a chill among shares of other social media companies, such as Facebook parent Meta and Pinterest, after hours on Thursday. And Twitter on Friday morning posted results, including a bottom-line loss that fell short of Wall Street expectations.
3. Airlines are dialing it back
Passengers with an infant use a Delta Air Lines check-in kiosk at Hartsfield-Jackson Atlanta International Airport before the Fourth of July holiday in Atlanta, Georgia, July 1, 2022.
Ilia Nuvelage | Reuters
Air travel is back in a big way. Covid restrictions are largely relaxed. And airlines profit from profits. The three largest US carriers – United, American and Delta – reported quarterly earnings for the latest period, with each expressing optimism about demand for the rest of the summer. But the big travel recovery has created headaches all around: higher fares, longer delays, more cancellations, staff shortages, you name it. With high costs, fares and demand, airlines that were buoyed by billions of dollars in federal aid of the pandemic, are scaling back their flight growth targets. “The more airlines restrict capacity, the higher airfares they can charge,” Henry Harteveld, founder of the Atmosphere Research Group and a former airline executive, told CNBC’s Leslie Josephs. “They will not get any other help,” he added. “They squandered much of their goodwill.”
4. Energy aid in Germany
Uniper is in talks with the German government about a possible bailout.
Picture Alliance | Picture Alliance | Getty Images
The German government on Friday agreed to a $15.24 billion bailout of energy giant Uniper. The company’s difficulties are related to the Russian invasion of Ukraine and the subsequent energy crisis. Uniper, which is majority owned by a Finnish company, is Germany’s largest importer of Russian gas. Earlier this month, Uniper sought help from the government after warning of rising energy bills. The German government acquires 30% of the company.
5. How far we’ve come
President Joe Biden, who today tested positive for Covid-19 this morning, posted on Twitter: “I’m doing great guys. Thank you for your concern. I just called Senator Casey, Congressman Cartwright, and Mayor Cognetti (and my cousins from Scranton!) to send my apologies for missing our event today.”
Courtesy: 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 at higher risk of a more severe bout of Covid. Still, his symptoms were “very mild” and he continued to work, albeit in isolation. He is vaccinated and boosted and has been taking Pfizer’s antiviral treatment Paxlovid. Before long, the development became another news story. Markets have largely ignored it. 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 US, with many staying at home. And yet every day thousands are hospitalized while hundreds die. But if the otherwise muted response to the president’s infection is any indication, it’s clearer than ever that Americans — and markets — are largely eager to move on, even if the virus isn’t.
— CNBC’s Samantha Subin, Jonathan Vanian, Ashley Capuot, Leslie Josephs, Kevin Breuninger and Katrina Bishop contributed to this report.
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