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Inventory futures are flat after Dow closes at file Friday

Stock futures are flat after Dow closes at record Friday

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, August 5, 2021.

Andrew Kelly | Reuters

Stock futures were flat in overnight trading Sunday after the Dow Jones Industrial Average notched a record close Friday following a stronger-than-expected jobs report.

Futures on the Dow added 2 points, or 0.01%. S&P 500 futures edged 0.06% lower and Nasdaq 100 futures dipped 0.13%.

U.S. senators reconvened Sunday to work toward the passage of a $1 trillion infrastructure bill, a top political priority of President Joe Biden. The Senate is slated to hold another key procedural vote late Sunday and vote on final passage Tuesday. The bipartisan package is expected to have sufficient Republican support to pass in the Senate and move to the House for consideration in September.

The moves in futures trading came after the Dow rose 144.26 points, or 0.4%, to close at an all-time high of 35,208.51. The S&P 500 rose 0.17% to reach its own record close of 4,436.52. The Nasdaq Composite bucked the trend, dipping 0.4% to 14,835.76. All three major indexes ended the week higher and saw their second positive week in three.

The Labor Department jobs report Friday showed the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate dropped to 5.4%, below the expectation of 5.7%.

“You saw a lot more jobs being created in those areas that are reopening — restaurants, hotels, logistics, transportation,” Raymond James Chief Investment Officer Larry Adam said. “That’s a good sign. I think that puts more spending power behind the consumer going forward and I think that that’s ultimately a good thing for the economy.”

The signs of a strong economic recovery could prompt the Federal Reserve to pull back its monetary support measures and prepare to begin tapering its bond-buying program.

“If it does continue to this magnitude, that probably does bring the Fed a little sooner into the game when it comes to tapering,” Adam said.

The yield on the benchmark 10-year Treasury note jumped as high as 1.3% after the better-than-expected jobs report. The 10-year yield this summer has pulled back significantly from its highs in March, when it neared 1.8%.

The financial sector led gains Friday as rates edged up, increasing banks’ profitability prospects. Industrials, retailers and energy stocks also moved higher as the strong jobs report eased concerns about the economic recovery.

Meanwhile, technology stocks retreated after the jump in rates. Rising rates discount the value of future earnings and therefore can hit growth stocks like technology names particularly hard.

Investors are awaiting key inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

Several Fed officials are scheduled for speaking appearances in the week ahead, with investors listening with a close ear for insights into the central bank’s tapering decision making. Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Chicago Fed President Charles Evans and Kansas City Fed President Esther George are all set to speak this week.

Companies including Tyson Foods, AMC Entertainment, Coinbase, Lordstown Motors, Bumble, Palantir, Disney, Airbnb and DoorDash are set to report quarterly earnings this week.

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5 issues to know earlier than the inventory market opens Friday, Aug. 6

5 things to know before the stock market opens Friday, Aug. 6

Here are the top news, trends, and analysis investors need to start their trading day:

1. Dow futures, bond yields rise after strong job data

A trader works on the floor of the New York Stock Exchange (NYSE) in New York on August 5, 2021.

Andrew Kelly | Reuters

2. The number of people employed outside agriculture was higher than expected in July

Economists polled by Dow Jones were looking for 845,000 new jobs and a headline unemployment rate of 5.7%. The decline in the unemployment rate looked even stronger when you consider that the labor force participation rate rose to 61.7%, the highest level since the pandemic broke out in March 2020. Wages were also stronger, with the average hourly wage rising 0.4% in July.

3. United Airlines requires vaccines for its 67,000 US employees

United Airlines pilot Steve Lindland receives COVID-19 vaccine from RN Sandra Manella at the United on-site clinic at O’Hare International Airport in Chicago, Illinois on March 9, 2021.

Scott Olson | Getty Images

United Airlines will require its 67,000 US employees to be vaccinated against Covid by October 25th or risk being fired, a first for major US airlines that is likely to put pressure on rivals. Airlines, including United, have opposed vaccine mandates for all workers and instead offered incentives such as extra pay or time off for vaccination. Delta Air Lines started asking newly hired employees to provide proof of vaccination in May. United followed suit in June.

4. The White House supports senators pushing for stricter crypto reporting rules

The White House got into a controversial battle for rival $ 1 trillion crypto changes to the infrastructure bill, a little out of the blue. The dispute revolves around a provision in the bipartisan bill that raises money through stricter tax rules for cryptocurrency transactions. The White House wrote in a statement late Thursday that “the amendment proposed by Senators Warner, Portman and Sinema strikes the right balance and takes an important step forward to promote tax compliance”.

5. JPMorgan quietly reveals access to half a dozen crypto funds

A woman walks past JPMorgan Chase & Co’s international headquarters on Park Avenue in New York.

Andrew Burton | Reuters

JPMorgan Chase, led by Bitcoin skeptic Jamie Dimon, began giving its wealth management clients access to six crypto funds last month. On Thursday, financial advisors allowed private banking clients to invest in a new Bitcoin fund created with crypto firm NYDIG, according to people who know about the move. The fund is almost identical to one that NYDIG offers to clients of rival bank Morgan Stanley, people said. Late last month, JPMorgan launched access to four funds from Grayscale Investments and one from Osprey Funds.

– Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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Inventory futures rebound as buyers await extra jobs knowledge

Stock futures rebound as investors await more jobs data

Futures contracts tied to the major U.S. equity indexes were mildly higher Thursday morning as Wall Street looked to improve upon a mixed week.

Dow futures rose 49 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures also added about 0.2%.

The moves in the futures markets came after a mostly lower regular session on Wednesday.

The Dow Jones Industrial Average shed 323.73 points, or 0.9%, and closed near its session low at 34,792.67. The S&P 500 slipped about 0.5% to finish at 4,402.66, while the Nasdaq Composite ticked up 0.1% to 14,780.53.

On Thursday investors will receive yet another update on the U.S. employment situation with the Labor Department’s latest weekly update to initial jobless claims. Recent earnings and economic data have been strong overall, but some economists worry economic growth and employment gains will taper from here.

“Many factors are likely driving worker shortages; concerns about catching the virus, childcare responsibilities, skills mismatches, and generous unemployment insurance benefits,” PNC Senior Economist Abbey Omodunbi said in an email. In the second half of the year, “more competition for workers, particularly in the leisure and hospitality sector, will support acceleration in wage growth, boosting household incomes and consumer spending.”

The results of an ADP private payroll survey released Wednesday showed a gain of 330,000 jobs for July, well short of the consensus estimate of 653,000. The Labor Department’s official jobs report, which typically has more impact on investors, will be released on Friday. Economists expect the report will show the U.S. added 845,000 in non-farm payrolls in July, about even with the previous month, according to Dow Jones estimates.

The 10-year Treasury yield was trading flat near 1.18% on Thursday after briefly dipping below 1.13% on Wednesday.

Shares of Roku and Uber dropped after each issued quarterly earnings results. Etsy fell 12% in premarket trading after the company gave guidance for the current quarter that indicated the pandemic-fueled commerce boom may be coming to an end. Uber was off by 3% in premarket trading.

During regular trading Wednesday, shares of Robinhood surged 50%, continuing a volatile jump after last week’s soft initial public offering. Semiconductor stocks were another bright spot, with Nvidia and Advanced Micro Devices rising.

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5 issues to know earlier than the inventory market opens Monday, Aug. 2

5 things to know before the stock market opens Monday, Aug. 2

Here are the most important news, trends and analysis that investors need to start their trading day:

1. S&P 500 set to start August higher after six straight monthly gains

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, July 15, 2021.

Brendan McDermid | Reuters

2. July employment report, quarterly earnings dominate week ahead

A worker wields hinges to the company’s largest commercial asphalt paver at the Calder Brothers’ facility in Taylors, South Carolina, U.S., July 19, 2021.

Brandon Granger | Calder Brothers Corporation | Reuters

In the week ahead, jobs data and earnings are the major events that could move markets. Three reports looking at the health of the labor market kicks off Wednesday with the ADP’s July private-sector jobs report. The government’s weekly look at initial jobless claims and July employment report are out Thursday and Friday, respectively. More than a quarter of S&P 500 companies are set to issue quarterly earnings in the coming week. Investors will be watching for signs of wage inflation in the jobs numbers and signs of higher prices in those profit reports. The Federal Reserve has said it believes the sharp jump in inflation will be temporary.

3. Senate finishes text of bipartisan infrastructure legislation

An aerial view shows construction continuing on the Sixth Street Viaduct replacement project, connecting Boyle Heights with downtown, on July 28, 2021 in Los Angeles, California.

Mario Tama | Getty Images

In a rare weekend session, senators finalized the text of their $1 trillion bipartisan infrastructure bill, which will next be introduced to the Senate. The measure, a top legislative priority for President Joe Biden, includes $550 billion in new spending over five years to build roads and electric vehicle charging stations, as well as replace lead water pipes. Many Democrats including Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi want to pass the infrastructure bill alongside a much larger go-it-alone $3.5 trillion budget reconciliation package.

4. Covid cases spike again; federal evictions moratorium expires

A healthcare worker at a drive-thru site setup by Miami-Dade and Nomi Health in Tropical Park prepares to administer a COVID-19 vaccine on July 26, 2021 in Miami, Florida.

Joe Raedle | Getty Images

The delta-driven increase of Covid infections around the country is being felt particularly hard in Florida. A day after recording the most new daily cases since the start of the pandemic, Florida on Sunday broke a record for current hospitalizations set more than a year ago, before vaccines were available. The latest seven-day average of new daily infections in the U.S. increased 54% from a week ago.

Tenants and housing rights activists protest for a halting of rent payments and mortgage debt, during the coronavirus disease (COVID-19) outbreak, in Los Angeles, California, U.S., October 1, 2020.

Lucy Nicholson | Reuters

Evictions, which have mostly been on pause during the pandemic, are expected to ramp up Monday after a federal moratorium expired over the weekend. House lawmakers on Friday attempted but failed to pass a bill to extend eviction relief even for a few months. More than 15 million people live in households that owe as much as $20 billion to their landlords, according to the Aspen Institute think tank.

5. Jack Dorsey’s Square to buy Australia’s Afterpay in $29 billion deal

Jack Dorsey, CEO of Twitter and co-founder & CEO of Square, speaks during the crypto-currency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami, Florida, on June 4, 2021.

Marco Bello | AFP | Getty Images

Square plans to buy Australian fintech Afterpay as it looks to expand into the booming installment loan market. Jack Dorsey’s payments company announced the $29 billion, all-stock deal on Sunday evening. The price tag marks a roughly 30% premium to Afterpay’s closing price Friday. Shares of Afterpay in Australia closed nearly 19% higher Monday. Square shares fell 1% in Monday’s premarket trading in the U.S. Afterpay lets customers pay in four interest-free installments and pay a fee if they miss an automated payment. Square also announced its second-quarter results Sunday, ahead of its previously planned release on Wednesday.

— The Associated Press contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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Inventory futures rise to kick off August buying and selling after S&P notches sixth-straight profitable month

Stock futures rise to kick off August trading after S&P notches sixth-straight winning month

U.S. stock futures rose on Monday as investors geared up for the first trading day of August.

Dow Jones Industrial average futures rose 93 points, or 0.3%. S&P 500 futures gained 0.4% and Nasdaq 100 futures added 0.5%. The S&P 500 and the Dow sit less than 1% from new all-time highs.

Stocks continued to shake off concerns about the delta variant of Covid, and stocks that would benefit the most from a continued economic recovery led the gains in premarket trading Monday.

Shares of Carnival Corp. were up 3% in premarket trading. Major banks including Morgan Stanley and Bank of America were higher. Airline shares were mostly higher.

“We believe the reopening and recovery trend is on track and continue to see upside for equities,” wrote Mark Haefele, chief investment officer of global wealth management at UBS. “We expect the S&P 500 to climb to around 4,650 by June next year, versus 4,395 at present. But we see the greatest upside for cyclical parts of the market, including energy, financials, and Japanese stocks.”

The Senate was finalizing the text of a bipartisan infrastructure bill, also bolstering optimism on Monday. The bill includes $550 billion in new spending over five years. That’s on top of previously approved funds of around $450 billion.

Caterpillar shares added 1% in premarket trading.

The S&P 500 managed to notch its sixth month of gains in July, although volatility increased amid concerns about the economic recovery in the face of the spreading delta Covid variant. It’s the best monthly winning streak for the benchmark since 2018. The Nasdaq Composite and Dow Jones Industrial Average added about 1.2% and 1.3%, respectively, in July, while the broad S&P 500 gained close to 2.3% last month.

The U.S. is averaging more than 72,000 new Covid cases a day the last 7 days, according to the latest CDC shows, levels not seen since February this year. However, stocks still traded near all-time highs last week even as concerns about the delta variant grew.

“At the end of the day, the stock market is driven by two things: 1) Earnings and 2) Multiples and until COVID (or China) begins to negatively impact one or both of those metrics, stocks can stay resilient,’ Tom Essaye, founder of Sevens Report, said in a note.

Concerns about inflation also plagued the market, however a key inflation indicator showed lesser-than-feared price pressures on Friday. The core personal consumption expenditures price index rose 3.5% in June year-over-year. It marked a sharp acceleration in inflation, but came in slightly below a Dow Jones forecast of a 3.6% jump.

Also on Friday, U.S. second-quarter gross domestic product accelerated 6.5% on an annualized basis, considerably less than the 8.4% rate of growth expected by economists polled by Dow Jones.

Stock picks and investing trends from CNBC Pro:

On the earnings front, Amazon sank nearly 7.6% Friday after the tech giant reported its first quarterly revenue miss in three years and gave weaker guidance. 

But an overall strong earnings season continues to be a tailwind for the market. So far, 88% of S&P 500 companies that have reported have topped EPS estimates, according to FactSet. For the second quarter, the S&P 500 is on track to post earnings growth of 85.1%, which would be the best growth rate since 2009, according to FactSet.

The first trading day of August comes with more big earnings on the way. Lyft, Amgen, Uber, CVS Health, General Motors, Roku and Square all report quarterly results this week.

Square shares sank in premarket trading after Jack Dorsey’s payment company announced a $29 billion all-stock deal to buy Australian installment loan provider Afterpay. Square was off by 4%.

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5 issues to know earlier than the inventory market opens Friday, July 30

5 things to know before the stock market opens Friday, July 30

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Stocks to open lower, but July still tracking for gains

Traders at the New York Stock Exchange, July 20, 2021.

Source: NYSE

Wall Street is set to open lower on the final trading day of July as investors got three Dow stock earnings reports and another reading on inflation to digest. Nasdaq futures were leading the way down Friday, with a decline of more than 1% as Amazon shares fell nearly 7% in the premarket after its first revenue miss in three years. The Dow Jones Industrial Average and S&P 500 hit all-time highs during Thursday’s trading and broke two-day losing streaks. But they failed to top Monday’s record closes. The Nasdaq advanced modestly, but still finished about 0.4% away from its latest record close on Monday. All three stock benchmarks were tracking for solid monthly gains.

2. Fed’s favorite inflation gauge slightly below estimates

A child passes by the Marriner S. Eccles Federal Reserve Board Building on Constitution Avenue, NW, on Monday, April 26, 2021.

Tom Williams | CQ-Roll Call, Inc. | Getty Images

The Federal Reserve’s favorite inflation gauge came in slightly below expectations for June. The Commerce Department’s latest core personal consumption expenditures price index rose 3.5% on a year-over-year basis, up slightly from May’s advance, which was the fastest pace since the early 1990s. At the conclusion of its July meeting on Wednesday, the Fed noted “progress” on inflation and employment goals, which was seen as a signal that changes to easy-money policies, particularly monthly bond buying, could be on the way. Central bankers made no adjustments to asset purchases and near-zero interest rates.

3. Mixed stock reactions from Dow companies’ earnings

Gas prices nearing $5.00 a gallon are displayed at Chevron and Shell stations on July 12, 2021 in San Francisco, California.

Justin Sullivan | Getty Images

Dow stock Chevron just reported a second straight profitable quarter as improving demand for petroleum products and a jump in oil prices boosted operations. The company also reinstated its share repurchase program. The oil giant earned an adjusted $1.71 per share on $37.6 billion in revenue, both topping estimates. Shares rose about 1.5% in the premarket. Exxon, no longer a Dow stock, also beat estimates with earnings and revenue. Shares rose in the premarket.

Caterpillar Inc. excavators are displayed for sale at the Whayne Supply Co. dealership in Louisville, Kentucky, U.S., on Monday, Jan. 27, 2020.

Luke Sharrett | Bloomberg | Getty Images

Caterpillar, another Dow component, dropped nearly 2.5% in Friday’s premarket, despite the heavy equipment maker saying it earned an adjusted $2.60 per share on nearly $12.9 billion in revenue. The industrial bellwether has been benefiting from higher infrastructure spending around the globe.

Bottles of Tide detergent, a Procter & Gamble product, are displayed for sale in a pharmacy on July 30, 2020 in Los Angeles, California.

Mario Tama | Getty Images

Procter & Gamble on Friday topped estimates with quarterly earnings and revenue as consumers bought more premium health and personal care products. The Dow stock rose 1% in the premarket. P&G reported a per-share profit of $1.13 on almost $19 billion in revenue. However, the company warned that increasing commodity costs could hit its earnings in the upcoming year.

4. Amazon posts another $100 billion quarter but still misses

Boxes move along a conveyor belt at an Amazon fulfillment center on Prime Day in Raleigh, North Carolina, U.S., on Monday, June 21, 2021.

Rachel Jessen | Bloomberg | Getty Images

Amazon said second-quarter revenue grew by 27% year over year to more than $113 billion, the third $100 billion quarter in a row but actually a slower pace of growth from the blistering 41% advance in the year-ago period. The e-commerce and cloud giant reported Q2 earnings per-share of $15.12, which exceeded expectations. Looking ahead, Amazon warned about lower sales numbers and a lower growth rate for the third quarter. The guidance echoed similar warnings from Facebook and Apple, which said this week that revenue growth rates would decelerate from pandemic highs.

5. CDC expected to publish data behind new mask recommendations

U.S. President Joe Biden and Vice President Kamala Harris receive an update on the fight against the coronavirus disease (COVID-19) pandemic as they visit the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia, March 19, 2021.

Carlos Barria | Reuters

Unpublished CDC data that was the basis for the decision to recommend that fully vaccinated people begin wearing masks indoors again in places with high Covid transmission rates is expected to be released Friday, according to The Washington Post. The internal CDC document, obtained by the Post, reveals that the delta variant is as contagious as chickenpox. It also shows vaccinated people who get infected by 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 the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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5 issues to know earlier than the inventory market opens Thursday, July 29

5 things to know before the stock market opens Thursday, July 29

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Dow futures rise after Fed keeps rates near zero

A trader works behind plexiglass on the floor of the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 28, 2021.

Andrew Kelly | Reuters

Dow futures rose more than 100 points Thursday, one day after the 30-stock average and the S&P 500 dipped slightly and the Nasdaq rose modestly. All three benchmarks finished less than 1% away from Monday’s record closes after Federal Reserve Chairman Jerome Powell said at his post-meeting news conference that substantial economic improvement would be needed for the central bank to start dialing back its easy-money policies. On the fiscal side, the Senate voted to advance a bipartisan infrastructure plan Wednesday evening, a critical step toward Democrats passing their sweeping economic agenda.

  • In stocks to watch: Dow stock Merck fell in the premarket after the drugmarker Thursday matched estimates with quarterly earnings and topped expectations on revenue. Amazon reports earnings after the bell Thursday.
  • Trevor Milton, founder of Nikola, has been charged with three counts of fraud by the U.S. Attorney’s Office in Manhattan in connection with their investigation into the embattled electric vehicle start-up. Shares of Nikola, which lost more than half their value in the past 12 months, were down 6% in Thursday’s premarket trading.

2. Latest GDP, initial jobless claims weaker than expected

In the latest snapshot of the economic recovery from the Covid pandemic, the Commerce Department said Thursday morning that its first look at second-quarter gross domestic product grew at an annual rate of 6.5%, a big miss compared to estimates for 8.4% growth.

The Labor Department also reported before the opening bell on Wall Street that initial jobless claims came in at 400,000 last week, slightly worse than expectations. The previous week’s level was revised up to 424,000. Initial claims for the week ended July 10 of 368,000 matched last month’s Covid-era low.

3. Robinhood to make its public debut after pricing IPO

Vlad Tenev, CEO and Co-Founder, Robinhood in his office on July 15, 2021 in Menlo Park, California.

Kimberly White | Getty Images Entertainment | Getty Images

Robinhood, whose stock trading app surged in popularity among retail investors, is expected to make its debut on the Nasdaq on Thursday. The initial public offering was priced Wednesday night at the low of the range at $38 each, raising about $2 billion and valuing the firm at about $32 billion. However, the company is not without controversy.

  • Earlier this year during the initial meme stock frenzy, Robinhood angered some investors and lawmakers when it restricted trading in some popular stocks following a 10-fold rise in deposit requirements at its clearinghouse.
  • The company this week disclosed that it’s received inquiries from U.S. regulators about whether its employees traded shares of GameStop and AMC Entertainment before trading curbs were placed at the end of January.
  • In June, Robinhood agreed to pay nearly $70 million to settle an investigation by Wall Street’s own regulator.

4. Facebook warns about growth, sets vaccine mandate

A giant digital sign is seen at Facebook’s corporate headquarters campus in Menlo Park, California, on October 23, 2019.

Josh Edelson | AFP | Getty Images

Facebook shares fell roughly 3.5% in Thursday’s premarket, the morning after the social network said revenue growth will slow during the second half of the year. Facebook cited a change in Apple’s privacy policies, which it said will hurt the social network’s ability to target ads. In its second quarter, Facebook reported earnings of $3.61 per share on revenue of $29.08 billion. Both topped estimates. Daily active users and monthly active users each matched expectations.

Facebook will require workers returning to its U.S. offices to be vaccinated, the company also announced Wednesday. “How we implement this policy will depend on local conditions and regulations,” Vice president of people Lori Goler said in a statement. Facebook will create processes for those who can’t be vaccinated for medical or other reasons, Goler said, adding the company will continue to evaluate its approach outside the U.S.

5. Disney, Apple bring Covid mask requirements back

Guests wear masks. as required. to attend the official re-opening day of the Magic Kingdom at Walt Disney World in Lake Buena Vista, Florida, on Saturday, July 11, 2020.

Joe Burbank | Orlando Sentinel | Getty Images

Disney has amended the mask policy at its U.S.-based theme parks in the wake of new guidance from health and government officials. Starting Friday, the company will require all guests, regardless of vaccination status, to masks in indoor locations at Walt Disney World Resort in Florida and the Disneyland Resort in California. Children under the age of two are exempt from this mandate.

People walk past an Apple retail store on July 13, 2021 in New York City.

Angela Weiss | AFP | Getty Images

Apple will require both vaccinated and unvaccinated customers as well as staff members to wear masks in many of its U.S. retail stores starting Thursday, a person familiar with the matter told CNBC’s Josh Lipton. Earlier this week, Apple CEO Tim Cook told CNBC the company had pushed back its return to office plans for corporate workers from September to October and that it could be pushed back again.

— Reuters and CNBC Peter Schacknow contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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5 issues to know earlier than the inventory market opens Wednesday, July 28

5 things to know before the stock market opens Wednesday, July 28

Here are the key news, trends, and analysis investors need to start their trading day:

1. Wall Street wants to open flat, focus on earnings and the Fed

Trader on the New York Stock Exchange.

Source: NYSE

2. Pfizer sells $ 7.8 billion in Covid vaccines in the second quarter and increases guidance for 2021

Eon Walk (left) gives Daryl Black a dose at a COVID-19 mobile vaccine clinic hosted by Mothers In Action in partnership with the LA County Department of Public Health at Mothers in Action on Friday, July 16, 2021 in Los Angeles Pfizer BioNTech Vaccine Angeles, California.

Irfan Khan | Los Angeles Times | Getty Images

Pfizer increases its 2021 sales forecast for its Covid vaccine by nearly 29% to $ 33.5 billion as the Delta variant spreads and scientists debate whether people need booster vaccinations. While posting better-than-expected quarterly earnings and earnings, Pfizer also said Wednesday that it sold $ 7.8 billion in Covid footage in the second quarter. Pfizer stock fell about 1% in pre-trading hours. Earlier this month, Pfizer said it was seeing signs of waning immunity caused by its Covid vaccine at German drug maker BioNTech and planned to ask the FDA to approve a booster dose.

3. Biden is considering the Covid vaccination mandate for federal employees

The White House is heavily considering requiring federal employees to provide evidence of a Covid vaccination or to undergo regular tests and wear a mask. President Joe Biden suggested Tuesday that extending the mandate to the entire federal workforce “be considered”. The Department of Veterans Affairs became the first federal agency to request vaccinations for its health workers on Monday.

4. Big Tech reports failed profits, stocks mixed in the pre-trading session

Tim Cook, CEO of Apple (L), Satya Nadella, CEO of Microsoft (C) and Sundar Pichai, CEO of Google.

Getty Images

Apple was down 1% in pre-trading after warning that the negative impact of global chip shortages would worsen this quarter. That caution came after Apple reported better-than-expected quarterly earnings of $ 1.30 per share. Revenue was also up versus estimates, driven by a 50% increase in iPhone sales.

Microsoft beat estimates by 25 cents with quarterly earnings of $ 2.17 per share, while revenue beat estimates of continued strong growth in the company’s cloud computing business. Microsoft continued to benefit from the pandemic shift towards working and learning from home. The Microsoft share rose slightly in the premarket.

Alphabet earned $ 27.26 per share last quarter, well above estimates. The Google parent company revenue also exceeded forecasts as it benefited from the increase in online advertising spending. Alphabet was up nearly 4% in the premarket on Wednesday.

5. McDonald’s Hit Powered by BTS Ad, New Chicken Sandwich

People wear protective face masks in front of McDonald’s in Union Square as the city resumes Phase 4 reopening following restrictions imposed in New York City on July 30, 2020 to slow the spread of the coronavirus.

Noam Galai | Getty Images

McDonald’s reported double-digit sales growth in the US in the same store on Wednesday compared to pre-Covid 2019 levels in the most recent quarter. The strong demand for the BTS meal promotion and the new chicken sandwich added to these numbers. Earnings per share of $ 2.37 and revenue of $ 5.89 billion exceeded expectations. The McDonald’s share fell slightly in the premarket.

Boeing reported its first quarterly profit in nearly two years on Wednesday, helped by a surge in commercial aircraft deliveries as airlines recovered from the pandemic. The profit of 40 cents per share exceeded estimates for a loss of 83 cents. Sales of $ 17 billion also exceeded expectations. The share rose by 5% before the IPO.

– CNBC’s Peter Schacknow and The Associated Press 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.

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5 issues to know earlier than the inventory market opens Tuesday, July 27

5 things to know before the stock market opens Tuesday, July 27

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street dips after another day of record high closes

Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2021.

Brendan McDermid | Reuters

U.S. futures were under some pressure Tuesday, one day after the Dow Jones Industrial Average, S&P 500 and Nasdaq logged a fifth straight session of gains and another day of record high closes. The Federal Reserve holds its two-day July meeting on Tuesday and Wednesday, with the future for rates, bond-buying, and inflation on the agenda. Big Tech earnings are set to start arriving after the bell Tuesday. The second-quarter earnings season has been stronger than expected. So far, 88% of S&P 500 companies reported a positive EPS surprise, according to FactSet. If that’s the final tally, it would be the highest since FactSet began tracking the metric in 2008.

2. Big Tech earnings start after the closing bell

Tim Cook, CEO of Apple (L), Satya Nadella, CEO of Microsoft (C) and Sundar Pichai, CEO of Google.

Getty Images

3. Tesla tops $1 billion in quarterly net income for first time ever

SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla’s gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021.

Michele Tantussi | Reuters

Shares of Tesla rose about 1.5% in Tuesday’s premarket, the morning after the electric automaker reported earnings of $1.45 per share on $11.96 billion in revenue. Both beat expectations. Tesla passed $1 billion in quarterly net income for the first time, 10 times higher than the year-ago period. The company also reported a $23 million impairment related the bitcoin it holds on its balance sheet. The world’s largest cryptocurrency plunged more than 40% in Q2, so Tesla’s holdings would be worth much less than the nearly $2.5 billion at the end of the first quarter. During Tesla’s post-earnings conference call, CEO Elon Musk said he won’t likely appear on future calls unless he has “something really important” to communicate.

4. GE, UPS best estimates on earnings, revenue

Larry Culp, CEO, General Electric

Scott Mlyn | CNBC

Shares of General Electric jumped more than 3.5% in premarket trading, after the struggling conglomerate exceeded estimates with second-quarter earnings and revenue. GE on Tuesday also said it expects 2021 free cash flow to be $3.5 billion to $5 billion, up from its prior forecast of $2.5 billion to $4.5 billion. Free-cash flow is closely watched by investors as a sign of the health of GE’s operations and ability to repay debt.

UPS CEO Carol Tome meets with workers

Source: UPS

Shares of United Parcel Service dropped about 2% in the premarket, after the delivery giant on Tuesday reported second-quarter earnings and revenue that beat estimates. Under CEO Carol Tome, UPS has been reining in costs and focusing on high margin packages under her “better not bigger” strategy.

5. House select panel on Capitol attack to hold first hearing

U.S. Representative Liz Cheney (R-WY), with Chairman Bennie Thompson (D-MS) and members of the Select Committee to Investigate the January 6th Attack on the U.S. Capitol speak to reporters after meeting with House Speaker Nancy Pelosi (D-CA) at the Capitol in Washington, U.S. July 1, 2021.

Jonathan Ernst | Reuters

The House select committee investigating the deadly pro-Trump invasion of the U.S. Capitol will hold its first hearing Tuesday. The panel will hear directly from four law enforcement officers about their struggles to defend the Capitol from the mob. Wyoming Rep. Liz Cheney, who was ousted from GOP leadership after refusing to stop criticizing Donald Trump for falsely claiming the 2020 election was rigged, is one of two Republicans appointed to the committee so far. The other Republican is Rep. Adam Kinzinger of Illinois. House Speaker Nancy Pelosi previously rejected two of GOP Leader Kevin McCarthy’s picks for the committee.

— Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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5 issues to know earlier than the inventory market opens Monday, July 26

5 things to know before the stock market opens Monday, July 26

Here are the key news, trends, and analysis investors need to start their trading day:

1. Dow futures reduced heavy overnight losses after Friday’s records

Trader on the New York Stock Exchange, July 20, 2021.

Source: NYSE

Dow futures fell about 150 points on Monday, halving overnight losses as stocks plunged in Hong Kong and China on concerns over government crackdown on education and real estate.

A big week ago for tech stocks on Wall Street, the Dow Jones Industrial Average closed above 35,000 for the first time on Friday. Four days in a row with profits more than offset the slump of more than 2% last Monday when heightened concerns about an increase in Covid cases due to the Delta variant briefly hit the market. The S&P 500 and the Nasdaq also closed at record highs on Friday.

The Fed’s two-day July meeting is slated to begin on Tuesday. Investors will be looking for signals about when central bankers may start tightening monetary policy and how they view rising inflation. The yield on 10-year government bonds fell to around 1.25% on Monday. The yield, which is contrary to the price, hit a 5½-month low of almost 1.13% last week.

2. Asian stocks fueling Chinese regulatory concerns, US talks

A person wearing a protective mask walks past the sign for Hong Kong Exchanges & Clearing Ltd. (HKEX) on display at the Exchange Square complex in Hong Kong, China on Wednesday August 19, 2020.

Roy Liu | Bloomberg via Getty Images

Hong Kong’s Hang Seng stock index fell more than 4% overnight. Mainland China stocks also plummeted, with the Shanghai Composite and Shenzhen Component each dropping over 2%.

Many Chinese education stocks listed in Hong Kong and the US lost about half their value after Beijing announced new rules on Friday that exclude for-profit tuition in core school subjects to ease financial pressures on families. Chinese regulators also took steps on Friday to clean up irregularities in the real estate market.

In addition to the uncertainty, there was a bumpy start at a meeting of high-ranking Chinese and US representatives. During talks with US Secretary of State Wendy Sherman on Monday, Chinese Vice Secretary of State Xie Feng said relations between the two nations were in a “state” and urged America to “change its highly misguided mindset.”

3. Bitcoin is trading to a six-week high of nearly $ 40,000

An illustration showing physical imitation banknotes and coins of the cryptocurrency Bitcoin.

Ozan Kose | AFP via Getty Images

Bitcoin rose to its highest level since mid-June on Monday, flirting at $ 40,000 before falling back below $ 39,000. Traders hoped last week’s positive comments from cryptocurrency enthusiasts, including Tesla CEO Elon Musk and Twitter CEO Jack Dorsey, would get Bitcoin back on track. Bitcoin hit an all-time high of nearly $ 65,000 in mid-April. On June 22nd, Bitcoin briefly went negative for the year, dropping below $ 29,000. The inventors will see how Bitcoin’s wild ride can affect Tesla’s quarterly results. Musk’s Tesla, which owns the crypto on its corporate balance sheet, will be reporting profits after the closing bell on Monday.

4. The Delta variant leads to an increase in Covid cases in all 50 states and DC

The intensive care nurse Emily Boucher, who works in the intensive care unit at Johnston Memorial Hospital, takes care of Covid patient Hannah Church (25), who was first diagnosed with the coronavirus on May 30, June 16, 2021 in Abingdon, VA.

Kathernine Frey | The Washington Post | Getty Images

Covid cases are increasing in all 50 states and the District of Columbia as the Delta variant spreads rapidly in the US. Cases hit a 15-month low in late June before infections began to rise. Vaccination rates peaked in April and have declined significantly in recent months. White House senior medical advisor Dr. Anthony Fauci said Sunday that Americans with compromised immune systems may need booster shots for Covid vaccines. Fauci told CNN that health officials are considering revising mask guidelines for vaccinated people in the US

5. Senators say they are entering into a bipartisan infrastructure deal

U.S. President Joe Biden speaks to the press after meeting with the Senate Democrats to support his infrastructure and business investment goals during a Democratic lunch at the U.S. Capitol on July 13, 2021 in Washington, DC, July 14, 2021 to win.

Andrew Caballero-Reynolds | AFP | Getty Images

Senators are rushing to finalize a bipartisan infrastructure deal as early as Monday as pressure increased on all sides to show progress on President Joe Biden’s top priority. Leading Republican negotiator, Ohio Senator Rob Portman, said the two sides would have “about 90% of the way to get there” in an agreement. A senior Democrat, Senator Mark Warner of Virginia, said he was confident a final bill would be in by Monday afternoon. The White House wants a bipartisan agreement for this first phase of infrastructure. But as the talks drag on, concerned Democrats, who have little control over the House and Senate, could leave Republicans behind and try to go it alone.

– Reuters and The Associated Press 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.