5 things to know before the stock market opens on Friday

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

1. Stock futures change little

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 were flat Friday morning as Wall Street awaited the July non-payroll report due at 8:30 a.m. ET. The futures move comes after Thursday’s mixed session. The Dow Jones Industrial Average fell 0.26%, its third negative day in four, while the S&P 500 lost just 0.08% and remains positive this week. The tech-heavy Nasdaq Composite, meanwhile, rose 0.41% to close at its highest level since May 4.

2. Job growth likely remained strong in July

A man walks past a “We’re Hiring” sign in New York on July 8, 2022.

Angela Weiss | AFP | Getty Images

Economists expect the U.S. to add 258,000 jobs in July, according to Dow Jones, a strong hiring pace that would still cool compared to the first six months of the year. The worry is that job growth could slow further from here, adding to fears of a recession as the Federal Reserve raises interest rates to quell the hottest US inflation in four decades. In Friday’s jobs report, the unemployment rate is expected to remain at 3.6%, according to Dow Jones. Salaries are expected to rise by 0.3% month-on-month.

3. China has suspended military and climate cooperation with the US

China said on Friday it was suspending cooperation with the US on climate change and military ties, including after House Speaker Nancy Pelosi visited Taiwan this week, a democratic island that Beijing claims as its territory. China also imposed sanctions on Pelosi for her in-person visit, further fueling tensions between the world’s two largest economies. US Secretary of State Antony Blinken criticized China for firing missiles during military exercises near Taiwan this week, which he said represented an “extreme, disproportionate and large-scale” response, according to Reuters.

4. DoorDash appearances and more earnings

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

Eric Baradat AFP | Getty Images

Shares of DoorDash jumped more than 9% in premarket trading on Friday, after the grocery delivery company’s second-quarter revenue beat expectations and orders delivered in the period hit a record high of $426 million. However, DoorDash reported a bigger-than-expected loss of 72 cents per share and warned that it expects a “softer consumer spending environment” in the third and fourth quarters.

In more earnings news:

  • Expedia Group posted strong earnings and revenue in the quarter ended June 30, sending shares up more than 4%, with CEO Peter Kern saying “travel demand has remained strong” despite flight disruptions and economic uncertainty.
  • Ride-hailing company Lyft reported better-than-expected adjusted earnings, based on FactSet estimates, sending shares up 7.5% in premarket trading.
  • Beyond Meat cut its full-year sales forecast and announced plans to lay off about 4% of its workforce, while also reporting disappointing Q2 results. CNBC’s Amelia Lucas has a full recap here.

5. Democrats Add Purchase Tax to “Cut Inflation Act”

Sen. Kyrsten Sinema, Democrat of Arizona, speaks during a press conference at the U.S. Senate Office Building in Dirksen, Wednesday, July 28, 2021, in Washington, DC.

Stephanie Reynolds | Bloomberg | Getty Images

Senate Democrats appear to have enough support to advance the so-called Anti-Inflation Act, and a 1% tax on stock purchases is part of the broader legislative proposal, CNBC’s Ylan Mui reported Friday morning. However, as a condition of getting the support of Sen. Kyrsten Sinema, Arizona, the bill no longer includes changes to the tax on carried interest, which allows hedge funds and private equity investors to pay a lower rate. Read the full story about Sinema’s support for the legislation here.

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5 things to know before the stock market opens on Friday

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